EarningsCall’s Post

Thank you to @CNBCFastMoney for having me on to discuss our thoughts on the US Banking sector. Banks are resilient with strong operating cash flow (PPNR) as credit quality has a slow-walk on higher criticized loans in ’24. We see modest deterioration with no drama for Banks, and lower interest rates benefits AOCI recovery and boosts tangible common equity (TCE) – both changes are meaningful this quarter. Bank stocks continue to have a low relative P/E vs S&P 500 – 56% vs longer-term average of 75%+. Janney’s Chris Marinac expects banks to report a good quarter to kick off earnings season https://lnkd.in/eB362v4x

Hey everyone! Check out this insightful article from the Financial Times about the expected uptick in dealmaking and the potential impact on Wall Street banks' performance. It's a great read for anyone interested in finance and the global economy. #Finance #WallStreet #MergersAndAcquisitions https://ift.tt/JxB7DFk

Don't miss your chance to join us tomorrow for a discussion on the 2024 outlook for large and medium-sized Canadian banks, presented by Morningstar DBRS analysts Carl De Souza and Shokhrukh Temurov, CFA. They'll cover profitability pressures, net interest income growth potential, and more, as Canadian banks look to return to positive operating leverage. Get more information and confirm your spot here: https://lnkd.in/eiTTN8hy #FinancialInstitutions #Banking

Against the backdrop of a continued higher interest rate environment and arguably weakening economy, the following will be carefully watched during the Bank Earnings Season: unrealized losses on banks' balance sheets, commercial real-estate losses, profits from lending (e.g., Net Interest Margin), liquidity, credit-card delinquencies, and investment-banking fees. Laissez les bons temps rouler!

Despite the Big Six banks performing well since bottoming in October last year, Nigel R. D'Souza, CFA, our Senior Financial Services Analyst, thinks the economy will deteriorate and experience a hard landing as the year progresses, dragging the banks down with it. "If you look at credit cycles for the last 20 years and valuations of the banking sector, what we typically see is that bank valuations bottom right before credit losses peak," he said on BNN Bloomberg, explaining that he thinks credit losses will peak in 2025 and that bank valuations will bottom towards the end of 2024. Nigel expects earnings to decline for the bank sector by high single digits this year, and has a more negative view than consensus earnings. Consensus is driven by expectations for a soft landing for the economy or no landing, which means the economy accelerates from here.  "The main difference between our outlook and consensus is really the outlook for credit losses," he said. "We expect credit losses to be a little bit higher than what is baked into consensus. Consensus is moving towards our expectation but it's not there yet." #banks #banking #investmentresearch #equityresearch #financialservices https://lnkd.in/gC2zpaJp

What's New to TheStreet... 💼 Bank of America sees a 7% dip in Q2 net income due to rising interest rates. 📉 How do you think rising interest rates will affect the banking industry in the coming months? Share your thoughts below!💬👇🏻 👉🏻Follow New To The Street for more! #bankofamerica #finance #trends #investment #banking #businessnews #business #news #newtothestreet

What's New to TheStreet... 💼 Bank of America sees a 7% dip in Q2 net income due to rising interest rates. 📉 How do you think rising interest rates will affect the banking industry in the coming months? Share your thoughts below!💬👇🏻 👉🏻Follow New To The Street for more! #bankofamerica #finance #trends #investment #banking #businessnews #business #news #newtothestreet

Moody’s lifts outlook on four big regional banks to stable from negative The debt outlook for Fifth Third Bancorp, First Citizens Bancshares Inc., Regions Financial Corp. and Huntington Bancshares Inc. has been raised to stable from negative by Moody’s on healthier balance sheets from the four big regional banks.

Two U.S. banks are slated to post their quarterly earnings. Bank of America is expected to report a drop in 2Q profit as a drop in net interest income offsets investment banking gains. Morgan Stanley is expected to surge, in line with a broader recovery in underwriting activity.

US banks extend slide as investors weigh sobering outlook from executives https://lnkd.in/eWDrWFRw #BankingAndFinanceNews #MergersAcqusitions #Business #Services #Finance #Markets Please Repost