...While second-quarter operating results for the major banks were clearly mixed and clouded by a number of noncore items, escalating credit problems and associated credit costs continue to weigh heavily on earnings. Despite some signs of stabilization in the U.S. and global economies, banking companies will continue to operate in a tough market environment, requiring still meaningful loan loss reserve replenishment and building. This can be seen in the pace of increase in nonperforming assets (NPAs) and net charge-offs (NCOs). Fitch Ratings does not expect these trends to reverse themselves in the near to intermediate term, particularly due to our concerns regarding commercial real estate (CRE). Furthermore, companies' earnings capacity and their ability to absorb higher credit costs is being eroded by narrow margins brought on by the prevailing interest rate environment, the maintenance of high levels of liquidity, the rising level of NPAs, and balance sheet deleveraging. For major U.S....
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| Report Type: | Special Report
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| Company(ies): | Regions Financial Corporation, Bank of America Corporation, Morgan Stanley, Capital One Financial Corporation, PNC Financial Services Group Inc., Fifth Third Bancorp, State Street Corporation, Northern Trust Corporation, Wells Fargo & Company, The Goldman Sachs Group, Inc., Zions Bancorporation, The Bank of New York Mellon Corporation, Marshall & Ilsley Corporation, U.S. Bancorp, BB&T Corporation, KeyCorp, Citigroup Inc., Comerica Inc., JP Morgan & Company Incorporated, Huntington Bancshares Inc.
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| Ticker(s): | NTRS , RF , MS , BK , STI , STT , FITB , MI , BBT , ZION , C , GS , COF , MTB , HBAN , PNC , WFC , USB , BAC , CMA
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| Format: | | PDF |  |
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