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☆ NYCB shares tumble after regional lender swaps out CEO, says it identified ‘material weakness’ in internal controls
▼ + stars: | 2024-02-29 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +3 min

New York CNN —Shares of New York Community Bank (NYCB) fell by as much as 20% in after-hours trading on Thursday after the beleaguered regional lender said in a filing it had identified “material weakness” in the company’s controls. The issues caused a $2.4 billion loss to shareholders last quarter, NYCB said. The bank also announced that Alessandro DiNello, its recently appointed executive chairman, will be the new president and CEO, effective immediately. In the same filing, NYCB disclosed Hanif (Wally) Dahya resigned from serving as director of the board. In his February 25 resignation letter, he said he “did not support the proposed appointment” of DiNello to president and CEO.

Persons: NYCB, Alessandro DiNello, Thomas Cangemi, Hanif, Wally, Dahya, “, DiNello, Marshall Lux, Chase Organizations: New, New York CNN, New York Community Bank, Silicon Valley Bank, Signature Bank, First Republic Bank, Securities and Exchange Commission Locations: New York, Silicon

☆ Here are Wednesday's biggest analyst calls: Apple, Nvidia, Salesforce, Dell, Microsoft, Snap, McDonald's & more
▼ + stars: | 2024-02-28 | by ( Michael Bloom | ) www.cnbc.com time to read: +7 min

Morgan Stanley reiterates Apple as overweight Morgan Stanley said it's standing by Apple amid reports the company canceled its car project. Barclays reiterates Microsoft as overweight Barclays says investments made in advertising is a "$50 billion opportunity" for Microsoft. Goldman Sachs reiterates Salesforce as buy Goldman said it sees "upside" heading into Salesforce earnings Wednesday afternoon. Barclays initiates Weatherford as overweight Barclays says the oil services company is a "reborn industry player." Barclays upgrades Ecolab as overweight from equal weight Barclays says it has "strong visibility" for the food safety company.

Persons: Smucker, Stifel, DELL, Morgan Stanley, Apple, it's, NVDA, Goldman Sachs, Goldman, FSLR, Salesforce, Raymond James, Bernstein, Stellantis, Cantor Fitzgerald, Cantor, KBW, it's bullish, Guggenheim, McDonald's, Craig, Hallum Organizations: Apple, Barclays, Microsoft, U.S, " Bank of America, Nvidia, Bank of America, Constellation Energy, JPMorgan, Apollo, JMP, Weatherford, Bright, Holdings Locations: J.M, CY2026, Europe, UK, China, India, CEG

☆ Here are Monday's biggest analyst calls: Nvidia, Alphabet, Salesforce, Arm, CVS, BJ's, Super Micro & more
▼ + stars: | 2024-02-26 | by ( Michael Bloom | ) www.cnbc.com time to read: +8 min

Morgan Stanley reiterates Target at overweight Morgan Stanley stood by its overweight rating on the department store owner. Morgan Stanley reiterates Salesforce as overweight Morgan Stanley said it likes the setup heading into earnings later this week. Morgan Stanley upgrades HashiCorp to overweight from equal weight Morgan Stanley said the software company has a compelling valuation. Morgan Stanley upgrades AvalonBay to overweight from equal weight Morgan Stanley said apartment REIT stocks like AvalonBay are '"cheap for a reason." Morgan Stanley upgrades Sun Country to overweight from equal weight Morgan Stanley said it likes the airline's business model.

Persons: Goldman Sachs, Goldman, Morgan Stanley, Salesforce, Rosenblatt, Jefferies, Amer, Wells, Jane Fraser, Roth MKM, Roth, TD Cowen, TD, DA Davidson, OW, Fannie Mae, KBW, Freddie, Truist, it's, Piper Sandler, Piper, Bentley Organizations: Nvidia, BMO, Apollo, Amer Sports, Citi, Citigroup, Bank of America, KKR, APO, BJ's Wholesale, D.A, Susquehanna, Energy, HSBC downgrades Moderna, HSBC, Moderna, Google, YouTube, " Bank of America, Omega Healthcare, Sun, DuPont's Mobility, JPMorgan, Navy, Bentley Systems Locations: USD75, Asana, ASAN

☆ Here's why Capital One is buying Discover in the biggest proposed merger of 2024
▼ + stars: | 2024-02-21 | by ( Hugh Son | ) www.cnbc.com time to read: +5 min

It's a chess move by one of the savviest long-term thinkers in American finance, Capital One CEO Richard Fairbank. Fairbank, who became a billionaire by building Capital One into a credit card giant since its 1994 IPO, is betting that buying rival card company Discover will better position the company for global payments' murky future. The deal, if approved, enables Capital One to leapfrog JPMorgan as the biggest credit card company by loans, and solidifies its position as the third largest by purchase volume. By 2027, the bank expects to add at least $175 billion in payments and 25 million of its cardholders onto the Discover network. The Discover network alone would be worth up to $6 billion if sold to Alphabet, Apple or Fiserv , Sakhrani wrote Tuesday in a research note.

Persons: Richard Fairbank, Marvin Joseph, It's, Fairbank, Sanjay Sakhrani, Sakhrani Organizations: Washington Post, Getty, Capital, Discover Financial, U.S, JPMorgan Chase, Independence, Discover, JPMorgan, Visa, Mastercard, American Express, One's, PayPal Locations: Wall, U.S

☆ KBW CEO on banking warning signs: Commercial real estate losses not a systemic risk
▼ + stars: | 2024-02-20 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailKBW CEO on banking warning signs: Commercial real estate losses not a systemic riskThomas Michaud, KBW president and CEO, joins 'Squawk on the Street' to discuss what the chief executive makes of the commercial real estate sector's impact on the banks, the gap between the bulge bracket banks and the others, and much more.

Persons: Thomas Michaud

☆ Here are Friday's biggest analyst calls: Nvidia, Nike, Tesla, Coinbase, Arm, Meta, Eli Lilly, UPS, Carvana & more
▼ + stars: | 2024-02-16 | by ( Michael Bloom | ) www.cnbc.com time to read: +9 min

Here are Friday's biggest calls on Wall Street: Bank of America reiterates Meta as buy Bank of America said it's bullish on Meta adding the Broadcom CEO to its board of directors. Bank of America reiterates Nvidia as buy Bank of America said it's standing by the stock heading into earnings next week but that a pullback is possible. Baird upgrades UPS to outperform from neutral Baird said in its upgrade of UPS that the risk/reward is too attractive to ignore. Bank of America downgrades Dropbox to underperform from buy Bank of America said the "bull thesis has played out" for the data storage company. Bank of America upgrades Cellebrite to buy from neutral Bank of America said it sees business trends stabilizing for the digital intelligence company.

Persons: it's, Hock Tan, NVDA, Goldman Sachs, Goldman, TD Cowen, Grosvenor, KBW, TTD, Baird, Wells, Tommy Hilfiger, Tommy, Raymond James downgrades Carvana, Raymond James, Wayfair, Oppenheimer, Morgan Stanley, Tesla, Guggenheim, SunPower, Jefferies, Eli Lilly, Roku Organizations: Bank of America, Meta, Broadcom, " Bank of America, Nvidia, Informatica, BMO, Trade, Google, U.S, UPS, JPMorgan, Daiwa, CY2025, UBS, Newell Brands, RBC, Nike, of America, Barclays, Netflix, JPMorgan downgrades Bloom Energy, BE, Pharma Locations: CY24, CY2024, Wayfair, U.S

☆ Wall Street cheers Coinbase after its first quarterly profit in 2 years, but skepticism lingers
▼ + stars: | 2024-02-16 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +8 min

Wall Street is celebrating Coinbase after the crypto exchange operator posted its first quarterly profit in two years. Late Thursday, Coinbase posted earnings of $1.04 per share on $954 million of revenue for the fourth quarter. "Happy days are here again" for Coinbase, as Raymond James put it, but it's not clear for how long. "That said, we maintain our U/P rating given crypto market unpredictability, lack of revenue diversification, valuation, and continued legal overhang." JPMorgan, neutral, PT $95 "Management calls spot bitcoin ETFs [a] net positive but, we're still unconvinced," said JPMorgan's Kenneth Worthington.

Persons: Coinbase, haven't, bitcoin, Raymond James, Goldman Sachs, Goldman, Will Nance, revs, Jason Kupferberg, Benjamin Budish, EBITDA, underperform, Patrick O'Shaughnessy, we're, Kenneth Worthington, Keefe, KBW's Kyle Voigt, Oppenheimer, Owen Lau, Devin Ryan, Needham, John Todaro, Canaccord, Joseph Vafi, Michael Bloom Organizations: LSEG, U.S . Securities, Exchange Commission, " Bank of America, Bank of America, Barclays, JPMorgan, Management, SEC, Coinbase's, BTC Locations: U.S, Coinbase, Needham

☆ Here are Thursday's biggest analyst calls: Apple, Nvidia, Snowflake, Coinbase, Skechers, Tesla, Berkshire Hathaway & more
▼ + stars: | 2024-02-15 | by ( Michael Bloom | ) www.cnbc.com time to read: +9 min

Here are Thursday's biggest calls on Wall Street: Macquarie downgrades Sony to neutral from buy Macquarie said it sees a more balanced risk/reward for the entertainment company. "With Sony near our target price and market expectations at risk given lacklustre FY3/25 guidance, we are downgrading to Neutral." Deutsche Bank reiterates Rocket Lab as a top pick Deutsche said it's standing by its bullish status on the space company. " Bank of America initiates Super Micro as buy Bank of America said the server and storage solutions company is an AI beneficiary. Bank of America reiterates Uber as buy Bank of America said it's feeling more bullish after the company's investor day.

Persons: Macquarie, Davidson, DA, Piper Sandler, Piper, KeyBanc, Evercore, Skechers, Price, Bernstein, underperform Bernstein, Redburn, Eastman, Morgan Stanley, Wells, Morgan Stanley downgrades, Guggenheim, Generac, Uber, Tesla, KBW, Berkshire Hathaway Organizations: Macquarie, Sony, JPMorgan, Deutsche Bank, Deutsche, Nvidia, Citi, FedEx, Apple, HSBC, GE Healthcare, GE, Crypto, UBS, Downside, Eastman Chemical, Comcast, Cisco, Cliffs, Steel, " Bank of America, Air Products, of America, Linde, Bank of America, Micro, Inc, Guggenheim, Mizuho, Energy, BMO, CNBC, & $ Locations: Nashville, China, Morgan Stanley downgrades Cleveland

☆ 'This stock could double': Fund manager loads up on shares of two banks amid the volatility
▼ + stars: | 2024-02-06 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

There are opportunities in the banking sector despite a rise in volatility and concern over steep losses at some lenders, according to fund manager Cole Smead. The stock makes up 1.36% of the Smead Value Fund . He believes UniCredit's share buybacks while the shares trade below book value will drive book value growth higher than the current 8% return on equity. "When you buy back shares below book, there is a multiplier effect on book value growth," Smead explained. The fund manager expects UniCredit will trade above book value over the next 12-18 months and use its stock to pursue further acquisitions.

Persons: Cole Smead, Switzerland's, Julius Baer, Smead, CNBC's, RoE, UniCredit Organizations: Smead Capital, Western Alliance Bank, KBW, New York Community Bancorp, Investors, Western Alliance Bank's, CNBC Pro Locations: Europe, U.S

☆ What’s really going on with bank stocks
▼ + stars: | 2024-02-02 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +4 min

Word quickly spread on Wall Street that the regional bank was under pressure, igniting a bout of selling of other bank stocks over fears of contagion. The KBW Regional Banking Index closed down 6% on Wednesday. Unlike many fellow regional banks, it held on to the vast majority of its deposits. He also highlighted that the banks’ losses were tied to faulty office building loans. The selloff that hit other regional bank stocks is “likely overdone given idiosyncratic factors tied to NYCB,” Bank of America analysts said in a note on Thursday.

Persons: Zions, NYCB, Thomas Cangemi, Chris Marinac, Janney Montgomery Scott, CNN he’s, ”, ” NYCB, That’s, It’s, isn’t, ” Marinac, “ Organizations: New, New York CNN, Federal Reserve, New York Community Bancorp, Western Alliance Bancorp, York Community Bancorp, Bank, CNN, ” Bank of America, Aozora Bank, First Republic, Valley Bank Locations: New York, ZION, York

TOKYO (AP) — Asian shares mostly rose Friday, helped by optimism about technology shares following a Wall Street rally led by big tech stocks. On Wall Street, U.S. stocks bounced back in a widespread rally following their worst day since September. Such data could give the Federal Reserve more of the evidence it wants of a slowdown in inflation before it will deliver the cuts to interest rates that investors crave. Traders are increasingly betting the Federal Reserve will begin cutting interest rates in May, after pushing back expectations from March. High interest rates intentionally slow the economy, and they undercut prices for investments.

Persons: Australia's, Korea's Kospi, Merck, Etsy Organizations: TOKYO, Nikkei, Dow Jones, Nasdaq, Microsoft, Big Tech, Apple, Meta, Facebook, Federal, crave, Elliott Investment Management, , New York Community Bancorp, Valley Bank, Signature Bank, New York Community Bancorp, Institute for Supply Management, Traders, Federal Reserve, Fed, New York Mercantile Exchange, Brent, U.S . Locations: Shanghai, U.S, ,

☆ A commercial real estate crash is unfolding, and regional banks are feeling the pain
▼ + stars: | 2024-02-01 | by ( Aruni Soni | ) www.businessinsider.com time to read: +1 min

Regional bank stocks are feeling the bite of the unfurling commercial property crisis in a rout that's giving SVB-collapse flashbacks. Commercial real estate loans are going sour with huge defaults on the horizon, pummeling banks from New York to Tokyo. Regional banks are a lot more exposed and vulnerable to commercial real estate loans. AdvertisementPlummeting regional bank stocks are giving investors déjà vu, but the underlying problem this time around is the commercial property crisis. The decline was led by New York Bancorp, which tumbled nearly 40% on Wednesday after posting a fourth-quarter loss of $260 million due to of sour commercial real estate loans.

Persons: —, déjà Organizations: Service, Nasdaq, Silicon Valley Bank, New York Bancorp, Business Locations: New York, Tokyo, Silicon

☆ Banks are being rocked again as real estate losses mount
▼ + stars: | 2024-02-01 | by ( Anna Cooban | ) edition.cnn.com time to read: +5 min

The regional lender set aside $552 million in the fourth quarter to absorb loan losses, up from $62 million in the previous quarter. The increase was driven partly by expected losses on a loan used to finance an office building, it said. ET as shares in NYCB, as well as other regional banks, suffered sharp losses. Much bigger players are girding themselves for losses linked to commercial real estate. Europe’s benchmark Stoxx Europe 600 Banks index, which tracks 42 big EU and UK banks, is up 23% since a low in late March.

Persons: Thomas Cangemi, Brendan McDermid, Julius Baer, Philipp Rickenbacher, Arnd Wiegmann, Reuters Philip Lawlor, ”, “, ” Lawlor, CNN’s Matt Egan Organizations: London CNN, Credit Suisse, New York Community Bancorp, New York Stock Exchange, Japan’s Aozora Bank, Federal Reserve, ”, CNN, Signa Group, Chrysler, Reuters, Deutsche Bank, Bank, Suisse —, UBS, Wilshire Indexes, KBW Locations: Europe, New York, Tokyo, Zurich, California, Republic, NYCB, Banc, Swiss, Austrian, Switzerland

☆ U.S. regional banking shares tumble for second straight day
▼ + stars: | 2024-02-01 | by ( ) www.cnbc.com time to read: +2 min

The KBW Regional Banking Index slipped 4.8% after seeing its biggest single-day decline since the collapse of Signature Bank in March last year. NYCB shares lost another 13.4% of their value and were last trading at $5.60. The frenzied selling in banking shares has rekindled fears about regional lenders, even as many analysts and investors said the problems at NYCB were mostly unique. Western Alliance Bancorp's shares fell nearly 11%, while those of Valley National Bancorp dropped 8.8%. Comerica's shares fell 5.8%.

Persons: NYCB, Martin Rauchenwald, Arthur D, Steven Alexopoulos, Alexopoulos, Moody's, Western Alliance Bancorp's Organizations: New York Community Bank, U.S, New York Community Bancorp, Signature Bank, Flagstar Bank, Jefferies, Western Alliance, National Bancorp Locations: Yonkers , New York, U.S, NYCB

☆ Regional banks are back in focus after NY Community Bancorp stock drops 38% in one day
▼ + stars: | 2024-01-31 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +2 min

New York CNN —Regional bank stocks are back in the hotseat thanks to a truly horrific financial report from New York Community Bancorp. That caused shares of New York Community Bancorp to drop 38% in one day, and the stock hit a 25-year low. The bank’s stress brought down other regional bank stocks, with KBW Regional Banking Index closing down by 6% on Wednesday. That’s nothing compared to the devastating tailspin regional bank stocks encountered last spring. But New York Community Bancorp’s troubles may open up fresh wounds.

Persons: Thomas Cangemi, Cangemi, “ rightsize, “, ” Organizations: New, New York CNN, New York Community Bancorp, New York Community, Bank, KBW, York Community, Signature Bank Locations: New York, New, York

☆ Oppenheimer says bank stocks are ‘significantly undervalued’ and gives its top picks
▼ + stars: | 2024-01-30 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

It's time for investors to shake off the fear of bank stocks created by last year's deposit outflows and regional bank failures, according to Oppenheimer. Analyst Chris Kotowski said in a report to clients on Tuesday that bank stocks are "significantly undervalued," highlighting that the KBW Bank Index finished 2023 down 4.8% for the year, or 29 percentage points behind the S & P 500. That gap is too large to justify even with the collapse of a few regional banks such as Silicon Valley Bank, Kotowski said. The firm's top two bank stocks are Goldman Sachs and Jefferies , both of which can serve as a bet on a rebound in the capital markets business. Kotowski also recommended several other large bank stocks, including Bank of America , JPMorgan Chase and U.S. Bancorp .

Persons: Oppenheimer, Chris Kotowski, Kotowski, Goldman Sachs, David Solomon, Jefferies, Goldman, JPMorgan Chase, —, CNBC's Michael Bloom Organizations: KBW, Silicon Valley Bank, Jefferies, Goldman, LSEG, Bank of America, JPMorgan Chase, U.S . Bancorp, JPMorgan Locations: Silicon, LSEG

☆ Premarket stocks: Regional banks could be on the rocks again
▼ + stars: | 2024-01-26 | by ( Krystal Hur | ) edition.cnn.com time to read: +5 min

New York CNN —Stocks of small US lenders are still in the doldrums nearly a year after the regional banking crisis. The KBW Nasdaq Regional Banking index, which tracks the performance of regional lenders and thrifts, has fallen more than 2.4% this year compared to the benchmark S&P 500’s 2.6% gain. “This development is likely to … challenge the health of regional banks,” wrote José Torres, senior economist at Interactive Brokers, in a note on Thursday. Regional bank stocks struggled for much of 2023 after the collapses of Silicon Valley Bank and Signature Bank sparked a flight on deposits and sent shockwaves through the stock and bond markets. High interest rates threatened to put pressure on regional banks’ bond portfolios and squeeze their bottom lines, creating a good old-fashioned bank run.

Persons: Huntington, PNC Financial Service’s, ”, José Torres, Alex McGrath, “, McGrath, Samantha Murphy Kelly, David McQueen, ” Read, Bryan Mena Organizations: CNN Business, Bell, New York CNN, Nasdaq, PNC Financial Services, PNC, Comerica Inc, US Bancorp, Citizens, PNC Financial, Federal Reserve, Interactive Brokers, Valley Bank, Signature Bank, First, Bank, Microsoft, Apple, ABI Research, Gross, Commerce Department Locations: New York, China

☆ Here are Thursday's biggest analyst calls: Apple, Netflix, Nvidia, Meta, Rivian, Costco, Hertz, Microsoft & more
▼ + stars: | 2024-01-18 | by ( Michael Bloom | ) www.cnbc.com time to read: +9 min

Bank of America upgrades Apple to buy from neutral Bank of America said AI and Vision Pro should drive upside for Apple. Bank of America reiterates Microsoft as buy Bank of America raised its price target on Microsoft to $450 per share from $430. Guggenheim reiterates Target as buy Guggenheim said Target is well positioned in 2024. Bank of America names Harley Davidson a top pick Bank of America said the motorcycle company is well positioned for 2024. " Bank of America reiterates ServiceNow as a top pick Bank of America said the stock remains a top idea for 2024.

Persons: KBW downgrades Charles Schwab, KBW, Mizuho, Robinhood, ., DA Davidson, Baird, Rivian, Wolfe, it's, Wells, it's bullish, Bernstein, Guggenheim, Piper Sandler, Tempur Sealy, TPX, CFRA, Harley Davidson, Oppenheimer, Morgan Stanley, Hertz, ServiceNow, Argus, Salesforce, Mike Blake Organizations: UBS, Netflix, Bank of America, Apple, of America, Nvidia, Semiconductors, Barclays, Red Rock Resorts, Vegas Locals, Microsoft, Guggenheim, Citi, JetBlue, Spirit, Costco, Piper, Palo Alto Networks, Paramount, Nasdaq, Hertz, Blackrock, Amazon, Deutsche Bank, Deutsche, JPMorgan Locations: repurchases, Palo, Palo Alto, Southeast China, 1H24, Los Angeles

☆ JPMorgan Chase profit falls after $2.9 billion fee from regional bank rescues
▼ + stars: | 2024-01-12 | by ( Hugh Son | ) www.cnbc.com time to read: +3 min

JPMorgan Chase said Friday that fourth-quarter profit declined after paying a $2.9 billion fee tied to the government seizures of failed regional banks last year. The bank said quarterly earnings slipped 15% to $9.31 billion, or $3.04 per share, from a year earlier. Excluding the fee tied to the regional banking crisis and $743 million in investment losses, earnings would have been $3.97 per share, according to JPMorgan. The bank said it generated nearly $50 billion of profit in 2023, $4.1 billion of which came from First Republic. The Federal Deposit Insurance Corporation hit large U.S. banks with a special assessment to replenish losses from a fund that helped uninsured depositors of seized regional banks.

Persons: JPMorgan Chase, Jamie Dimon, Dimon Organizations: JPMorgan, LSEG, Revenue, First, First Republic, Federal Deposit Insurance Corporation, Federal Reserve, Fed, KBW, CNBC PRO Locations: U.S, First Republic, Ukraine

☆ Big bank executives will assure lawmakers the industry's crisis is over, KBW CEO Thomas Michaud predicts
▼ + stars: | 2023-12-05 | by ( Stephanie Landsman | ) www.cnbc.com time to read: +1 min

Big bank CEOs will likely convey deposits and earnings are stable to lawmakers on Wednesday, according to a major financial services executive. Thomas Michaud, CEO of Stifel company Keefe, Bruyette & Woods, thinks the hearing before the Senate Banking Committee will successfully provide assurance to Washington and Wall Street. "The targeted approach to change deposit insurance to reduce the 'too big to fail' thinking, so depositors don't run like that. He thinks action is needed to keep mid-sized banks competitive with the big banks — starting with lifting Federal Deposit Insurance Corp coverage limits for small businesses. "If deposit insurance reform in my opinion doesn't happen, there's going to be tremendous pressure on those [mid-size] banks to consolidate," Michaud said.

Persons: Thomas Michaud, Keefe, Jamie Dimon, Goldman Sachs, David Solomon, " Michaud, He's, Michaud Organizations: Wall, . Banking, Silicon Valley Bank, Signature Bank, First, Federal Deposit Insurance Corp Locations: Washington, Silicon, First Republic

☆ Banks re-positioning for monster move, suggests KBW CEO Tom Michaud
▼ + stars: | 2023-12-05 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBanks re-positioning for monster move, suggests KBW CEO Tom MichaudTom Michaud, KBW CEO, joins 'Fast Money' to talk tomorrow's bank CEO hearing, the fintech space, the possibility of a breakout in the space and much more.

Persons: Banks, Tom Michaud Tom Michaud

☆ Watch CNBC's full interview with KBW CEO Tom Michaud
▼ + stars: | 2023-12-05 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with KBW CEO Tom MichaudTom Michaud, KBW CEO, joins 'Fast Money' to talk tomorrow's bank CEO hearing, the fintech space, the possibility of a breakout in the space and much more.

Persons: Tom Michaud Tom Michaud

A sign for The Bank of Nova Scotia, operating as Scotiabank, in Toronto, Ontario, Canada December 13, 2021. The lender said earnings in the 2024 fiscal year to Oct. 31 would be impacted by "slowing economic growth across its markets and increasing regulatory capital requirements" but it would also benefit from interest-earning assets. "We expect a challenging environment will persist for consumers and businesses," Chief Risk Officer Phil Thomas told analysts, citing muted Canadian economic growth, continued inflationary pressures and uncertain prospects for rate cuts. Finance chief Raj Viswanathan said deposit and loan growth were also expected to moderate from 2023 levels, noting savings levels have started coming down in Canada with inflation at multi-year highs, leaving consumers with less cash in hand. Its efforts to streamline operations resulted in a restructuring charge of C$258 million, Scotiabank said.

Persons: Carlos Osorio, Phil Thomas, Raj Viswanathan, Mike Rizvanovic, Scott Thomson, Niket, Balu, Krishna Chandra Eluri, Tomasz Janowski Organizations: The Bank of, Scotiabank, REUTERS, Bank of Nova, Finance, Bank of Canada, Thomson Locations: The Bank of Nova Scotia, Toronto , Ontario, Canada, Bank of Nova Scotia, Bengaluru, Toronto

☆ These regional banks are at greatest risk of being taken over by rivals, according to KBW
▼ + stars: | 2023-11-27 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

A trio of regional banks face increasing pressure on returns and profitability that makes them potential targets for acquisition by a larger rival, according to KBW analysts. Banks with between $80 billion and $120 billion in assets are in a tough spot, says Christopher McGratty of KBW. The remaining lenders, including East West Bank, Popular Bank and New York Community Bank each have higher returns and could end up as acquirers rather than targets. "Not every bank is as profitable as others and there are scale demands you have to keep in mind." The moves broadly take measures that applied to the biggest global banks down to the level of institutions with at least $100 billion in assets, increasing their compliance and funding costs.

Persons: Banks, Christopher McGratty, McGratty, Zions Organizations: Comerica, Zions, Western Alliance, Webster, East West Bank, Popular Bank, New York Community Bank, Banking

While high interest rates have boosted the banks' lending margins, residential mortgages, auto loans and commercial real estate loans have slowed as consumers and businesses pulled back. With interest rates forecast to remain high, renewal of the mortgages will squeeze household budgets. Banks are also rethinking lending to industries sensitive to high interest rates, from condo development to office space. "We want to make sure we have some kind of confidence when a project is going to go ahead," said Victoria Girardo, Canadian Western Bank's (CWB.TO) VP in real estate lending. "That is creating liquidity issues across the real estate developer space.

Persons: Carlos Osorio, Ebrahim Poonawala, Mike Rizvanovic, Rizvanovic, Banks, Victoria Girardo, Nigel D'Souza, Nivedita Balu, Mark Porter Organizations: Bank of Montreal, REUTERS, Rights TORONTO, U.S, National Bank, Bank, Veritas Investment Research, Thomson Locations: Toronto , Ontario, Canada, Toronto

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