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%.
Sverige Senaste nytt, Sverige Rubriker
Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.
Källa: nbcbayarea - 🏆 596. / 51 Läs mer »