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Lending Briefing: Big banks’ Q2 results and rising commercial loan volumes

  • Rising interest rates are a challenge for most financial market participants, but banks benefitted from this as lenders, helping to boost their Q2 bottom line.
  • Commercial loans grew by double-digits compared to last year, the strongest loan growth since the onset of the pandemic.
Iulia Ciutina | July 20, 2022
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Lending Briefing: Big banks’ Q2 results and rising commercial loan volumes

Net interest income boosts revenues in a tough quarter for US banks

It’s the second quarter earnings season, and the numbers are in at most of the top banks in the US. While most banks missed consensus estimates as they grappled with a challenging macro environment, their bottom line was rescued by a boost in net interest income. 

While rising interest rates are a challenge for most financial market participants, banks benefit from this as lenders, allowing for a wider spread between the rate they pay for deposits and the rate they charge for their loans. 

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Robinhood is an online stock brokerage that offers its customers commission free trading and investing. Robinhood users can invest and trade in stocks, exchange traded funds, options, and cryptocurrency. Customers can invest in over 5,000 stocks with Robinhood, including most U.S. equities and ETFs listed on U.S. exchanges.

Robinhood Financial, LLC and Robinhood Crypto, LLC are wholly-owned subsidiaries of Robinhood Markets, Inc. All cryptocurrency holdings are held in Robinhood Crypto as opposed to Robinhood Financial.

The company was founded in 2013 by Stanford roommates Baiju Bhatt and Vladimir Tenev. It has its headquarters in Menlo Park California and offices in the U.S and the UK.

Account Types

Robinhood’s products are accessible through its three different accounts: Robinhood Instant, Robinhood Gold and Robinhood Cash.

Robinhood Instant

Robinhood Instant is the default Robinhood account which is a margin account that has access to extended hours trading and instant deposits. Robinhood Instant account users do not have to wait for funds to process while selling stocks or depositing up to $1000.

Robinhood Gold

Robinhood Gold comprises a range of investing tools and premium products such as greater instant deposits starting at $5000 to a max of $50k, research from Morningstar on 1700 stocks, Level II Market Data from Nasdaq and more access to trading on margin. It has greater buying power and larger instant deposits as compared to the Robinhood Instant account.

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