Bankers Optimistic, Rate Cuts Yet to Boost Regionals' Earnings

Bankers have become more optimistic about deposit growth, loan growth, and credit quality, according to S&P Global Market Intelligence's fourth-quarter survey on banking outlook. Seventy-seven percent of respondents expect deposits to grow over the next 12 months (compared to 71% in the third quarter), while 83% expect loans to grow over the same period (compared to 66% in the third quarter). Concerns about credit quality have also declined, particularly among auto loans and mortgages.  

Another S&P article discussed why the Fed's rate cuts won't have a major impact on regional banks' fourth-quarter earnings. 

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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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