Street View: First Citizens' interest income to get a lift from higher rates

First Citizens BancShares

27/01/2025 17:05

** First Citizens Bancshares  FCNCA.O  forecast 2025
interest income above Wall Street expectations on Friday, as the
lender bets on delayed rate cuts by the Federal Reserve 
    ** FCNCA, which had rescued Silicon Valley Bank, forecast
2025 interest income to be between $6.6 bln and $7 bln versus
estimates of $6.64 bln, according to data compiled by LSEG
    ** At least five brokerages raise PTs on the stock 
    
    INTEREST INCOME OUTLOOK SHINES 
    ** J.P. Morgan ("overweight", PT: $2,650) says FCNCA's net
interest income and net interest margin will benefit from a
higher-for-longer rate outlook 
    ** "First Citizens has levers to grow its NII in 2025 even
without a material uptick in SVB activity" - J.P. Morgan
    ** FCNCA acquired Silicon Valley Bank in March 2023, after
the California bank failed and entered FDIC receivership
    ** Piper Sandler ("neutral", PT: $2,250) expects NII to
remain stable or decline slightly in Q1 before improving later
in the year
    ** Raymond James ("outperform", PT: $2,500) says SVB-related
loan growth should accelerate throughout the year
    ** KBW ("outperform", PT: $2,600) says an acceleration in
growth from SVB will help the stock in the medium term
    

 (Reporting by Ateev Bhandari in Bengaluru)
 ((Ateev.Bhandari@thomsonreuters.com;))