Bank Stocks Fall Amid Dour Results From Regionals

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Shares of U.S. banks dropped Friday, dragged down by underwhelming results from several regional lenders reporting rising costs of retaining depositors amid rising interest rates.

The S&P 500 Banks index was down 2%, with regional banks including, Regions Financial, Comerica Inc, and Fifth Third Bancorp, among the biggest losers.

RF posted Q3 earnings of 49 cents/shr, missing analysts' estimate of 58 cents a share, according toLSEG data. RF predicted net income interest in the fourth quarter to decline roughly 5% sequentially, as it paid more to retain deposits.CMA shares were down about 6% after it reported third-quarter earnings of $1.84 per share, compared to analysts' estimates of a $1.69 per share.

CMA said it expects NII to decline in the current quarter owing to soaring deposit retention costs. FITB also anticipates lower NII due to rising deposit costs.

 

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