It’s all good now
The U.S. regional bank industry will be discussed in detail over the course of four days this week (July 18–21).
During that time, the eleven regional banks included in the S&P 500 Stock Index will provide a wealth of significant information, including commentary and reports on deposit flows, loan demand, net interest margin, and adjustments to allowances for loans and leases, in addition to revenue and earnings.
Furthermore, adjustments to management, operations, and strategies. Then there are the crucial projections, which include both the direction that management expects their banks to take and the hazards they anticipate over the coming year or two.
S&P 500 regional banks
From their most recent lows, the shares of all eleven banks have dramatically increased.
Investors and analysts anticipate a moderating of the crisis-fears that were sparked during the selloffs.
Those lower-risk hopes are now put to the test because managements are required to keep quiet for four weeks before disclosing their earnings and other information.
Analyst recommendations are favorable, reflecting the perspectives of reduced risk. The average recommendations fall between 2 and 2.5 on a five-point system (1 = Strong buy, 2 = Buy, 3 = Hold, 4 = Sell, and 5 = Strong sell).
Dividend yields were high due to the falling stock prices. The current range is 4% to 8%. The viability of sustaining those rewards must therefore be discussed by management.
Conclusion: Rather than being a transient issue, the failure of the regional bank revealed a fundamental transformation.
Today (July 17), The Wall Street Journal published an article titled “Heard on the Street” on a crucial problem that affects all banks.
Bad News for Smaller Banks in Big Banks’ Earnings, according to WSJ
Regional lenders that must report results this week will probably be more negatively impacted by rising deposit charges.
Determining the health of the banking industry as a whole as well as the individual banks’ performance depends on this week’s regional bank reports.