Q4 Outlook for U.S. Commercial Banks As Institutions Fight For Deposits

Liquidity pressures persisted at U.S. banks in the second quarter as bond portfolios remained deeply underwater, while deposit costs increased notably in the period as banks sought to protect their core funding. Those efforts were largely successful, with deposit outflows slowing from earlier this year, but the defensive posture came with a cost in the form of lower net interest margins. Banks have also built their reserves for loan losses as they prepare for credit quality to slip from pristine levels. The defensive moves should continue over the next few quarters, serving as headwind to earnings. 

 

During this webinar, Nathan Stovall, Director of FIG Research, will present his outlook for the banking industry over the next few years, share highlights from banks’ third-quarter earnings season and discuss how earnings pressures could change the competitive landscape. Sr. Analyst Zain Tariq will review highlights from the latest summary of deposits release and discuss how mergers and liquidity pressures have changed market share across the industry.