Comerica falls as NII forecast under pressure, US bank stocks decline
** Shares of regional lender Comerica CMA.N fall 3.3% to $45.69 in a broadly weak market
** S&P 500 Banks Index .SPXBK off ~2%, while peer index tracking regional lenders .KRX 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 JPM.N, Goldman Sachs GS.N, Bank of America BAC.N, Morgan Stanley MS.N, Citigroup C.N and Wells Fargo WFC.N off between 1% and 2.9%
** Smaller peers Zions Bancorp ZION.O, KeyCorp KEY.N, Valley National VLY.O and Citizens Financial CFG.N down between ~1.8% and ~2.1%
** Meanwhile, Wall Street's main indexes also declined on Tuesday .N
Reporting by Manya Saini in Bengaluru
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
