Deutsche Bank Sees Just One Rate Hike Next Year: Top Banks to Buy for 2016

Banking, finance, and taxes

Published: December 23, 2015 11:10 am

Last Updated: January 13, 2020 3:46 pm

While many people fret over the pace of the Federal Reserve interest rate hikes, the reality is the process may end up being much slower and much more measured than many are anticipating. While many of the Wall Street firms we cover here at 24/7 Wall St. anticipate as many as three rate hikes, one major firm sees just one.

In a new research report, Deutsche Bank thinks gross domestic product (GDP) growth is way too slow for the Fed to be very aggressive. In fact, it may be so slow they predict just one more rate hike in 2016, and most likely it would be 25 basis points, or one-quarter of 1%.

The Deutsche Bank report highlights three top bank picks for 2016, all of which make good sense for more conservative growth portfolios.

PNC Financial

This top regional bank is down over 10% in the past month. PNC Financial Services Group Inc. (NYSE: PNC) is one of the United States’ largest diversified financial services organizations, providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; and wealth and asset management. With consistent earnings growth and a very positive and growing loan portfolio, the company is a premiere super-regional bank stock to own.