First Horizon slides after lowering annual interest income outlook

First Horizon

17/07/2024 14:23

** Shares of regional lender First Horizon  FHN.N  fall 7.3%
to $16.18 premarket
    ** Co now expects annual net interest income (NII) to be
"flat to down 2%" compared with 2023 level of $2.56 bln
    ** FHN had earlier forecast annual NII - the difference
between what a bank earns on loans and pays out on deposits - to
be up between 1% and 4% compared with 2023 level
    ** Higher interest rates have led to fierce competition for
deposits among banks, which are continuing to maintain
competitive offers to retain existing clients
    ** Revised forecast assumes relatively flat balance sheet in
the second half of 2024 and higher level of interest-bearing
deposit costs - FHN
    ** Meanwhile, Q2 net income falls to 34 cents/shr from 56
cents/shr a year earlier
    ** As of last close, FHN shares up 23.2% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))