Hovde Group cuts bank earnings view across the board amid a 'competitive battle of historic proportions' over deposit funding costs

España Noticias Noticias

Hovde Group cuts bank earnings view across the board amid a 'competitive battle of historic proportions' over deposit funding costs
España Últimas Noticias,España Titulares

Mid-quarter updates from regional banks have revealed that second-quarter profit projections are 'dramatically too high,' Hovde analysts said.

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 33 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 97%

Hovde Group analysts on Wednesday cut their earnings projections for its coverage area of 27 regional banks to about 7% to 9% below the current Wall Street consensus figures amid competition for deposits, as Fifth Third Bancorp added its name to the list of super-regional banks to issue lower net interest income guidance.

“The banking industry is currently waging a competitive battle of historic proportions with regard to deposit funding costs,” Hovde Group analysts said in a research note on Wednesday. “The recent string of mid-quarter updates from the super-regional banks has well telegraphed the idea that consensus estimates are dramatically too high.”

The bank’s earlier forecast as of April 20 for second-quarter net interest income was a drop of only 1%. The newer projection assumed no rate hike by the U.S. Federal Reserve through the end of the quarter. For fiscal 2023, Fifth Third is projecting net interest income growth of 3% to 5%.

Hemos resumido esta noticia para que puedas leerla rápidamente. Si estás interesado en la noticia, puedes leer el texto completo aquí. Leer más:

MarketWatch /  🏆 3. in ES
 

España Últimas Noticias, España Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

EU Charges Google With Anti-Competitive Practices in Ad Tech BusinessEU Charges Google With Anti-Competitive Practices in Ad Tech BusinessNEW: The European Union charges Google with breaching antitrust rules in advertising technology and may seek the break-up of parts of the tech giant's business to allay the bloc's concerns.
Leer más »



Render Time: 2025-01-18 21:24:55