Bove Predicts a 'Sloppy Quarter' for Bank Earnings
"This should be a sloppy quarter," Bove said in a "Squawk Box" interview. "The reason is pretty simple: Banks do pretty much what the economy does."
The final revision for first quarter economic growth was a more tepid 1.8 percent annual rate than previously estimated. And when the government releases its first look at second quarter growth later this month, the number won't be good, Bove said.
"We did not have a great second quarter from an economic standpoint," he said. "So we're not going to have a great second quarter in terms of bank earnings."
He ticked off the reasons: "Loan volume in the two big areas, commercial industrial and residential mortgage, have slowed down dramatically. Price competition has picked up to push margins lower."
"You got this issue with long-term rates going up creating issues about capital," he added. "You've got the fact that trading did pick up pretty good for a couple months in the quarter, but wasn't great the whole quarter."