- Nomura Instinet analyst Bill Carcache downgrades Regions Financial (NYSE:RF) and KeyCorp (NYSE:KEY) as he sees recent growth in commercial and industrial lending as "low quality," which is likely to increase losses.
- Regions -0.5%, KeyCorp -1.7% in premarket trading.
- Cuts both banks to reduce from neutral.
- Carcache notes bank loan portfolios would be shrinking if C&I weren't increasing.
- Banks are taking share in C&I lending as underwriting standards ease and demand weakens.
- Also sees Fifth Third Bancorp (NASDAQ:FITB) and Huntington Bancshares (NASDAQ:HBAN) facing challenges from slowing C&I loan growth and higher net charge-offs.
- HBAN -1.3% in premarket trading.
- Source: Bloomberg First Word.
- Previously: Regions Financial +1.5% after JPMorgan upgrades on loan growth, NIM (Nov. 26)
KeyCorp, Regions cut by Nomura on credit, loan growth uncertainty
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Symbol | Last Price | % Chg |
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RF | - | - |
Regions Financial Corporation |