...We expect NII to decline moderately in 2024. We expect rate cuts in the second half could lead to asset yields resetting faster than deposit pricing in the near term. Likewise, we think mortgage servicing and asset management fees could pick up as rates fall, and we expect capital markets revenue will rise somewhat in 2024. Capital ratios may rise somewhat further given increasing economic concerns and likely new regulatory rules. We also expect continued increases in tangible capital ratios amid declines in unrealized losses in securities portfolios. We expect credit to deteriorate gradually, but to remain manageable for most rated regional banks. We expect provisions and allowances to rise--especially for CRE loans, including office. We don't expect meaningful improvements given likely continued deposit migration to higher yielding products. However, slow loan growth and likely lower interest rates could ease deposit pricing pressures....
