BUZZ-Comerica falls as NII forecast under pressure, US bank stocks decline

Reuters06-11

** Shares of regional lender Comerica fall 3.3% to $45.69 in a broadly weak market

** S&P 500 Banks Index off ~2%, while peer index tracking regional lenders last down ~1%

** CMA, in an investor presentation, says it expects pressure on its net interest income (NII) - the difference between what a bank earns on loans and pays on deposits - forecast for Q2 and FY24

** Higher interest rates have prompted customers to move cash from lenders to alternatives with better yields like money market funds, while loan growth has also stagnated, piling pressure on NII

** CMA had previously forecast a decline in interest income between 1% and 2% in Q2 vs Q1

** Co also expects a roughly 11% drop in NII for full-year 2024 versus 2023 levels; Analysts, on average, expect a 11.7% decline, per LSEG data

** Among individual movers, big banks JPMorgan Chase

, Goldman Sachs , Bank of America , Morgan Stanley , Citigroup and Wells Fargo off between 1% and 2.9%

** Smaller peers Zions Bancorp , KeyCorp , Valley National and Citizens Financial down between ~1.8% and ~2.1%

** Meanwhile, Wall Street's main indexes also declined on Tuesday

(Reporting by Manya Saini in Bengaluru)

((Manya.Saini@thomsonreuters.com))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment