Comerica falls as NII forecast under pressure, US bank stocks decline

Valley National Bancorp

11/06/2024 16:21

** Shares of regional lender Comerica  CMA.N  fall 3.3% to
$45.69 in a broadly weak market 
    ** S&P 500 Banks Index  .SPXBK  off ~2%, while peer index
tracking regional lenders  .KRX  last down ~1% 
    ** CMA, in an investor presentation, says it expects
pressure on its net interest income (NII) - the difference
between what a bank earns on loans and pays on deposits -
forecast for Q2 and FY24 
    ** Higher interest rates have prompted customers to move
cash from lenders to alternatives with better yields like money
market funds, while loan growth has also stagnated, piling
pressure on NII
    ** CMA had previously forecast a decline in interest income
between 1% and 2% in Q2 vs Q1 
    ** Co also expects a roughly 11% drop in NII for full-year
2024 versus 2023 levels; Analysts, on average, expect a 11.7%
decline, per LSEG data
    ** Among individual movers, big banks JPMorgan Chase
 JPM.N , Goldman Sachs  GS.N , Bank of America  BAC.N , Morgan
Stanley  MS.N , Citigroup  C.N  and Wells Fargo  WFC.N  off
between 1% and 2.9%
    ** Smaller peers Zions Bancorp  ZION.O , KeyCorp  KEY.N ,
Valley National  VLY.O  and Citizens Financial  CFG.N  down
between ~1.8% and ~2.1% 
    ** Meanwhile, Wall Street's main indexes also declined on
Tuesday  .N 

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com))