KBRA Releases U.S. Bank Ratings Compendium for Third-Quarter 2019

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases its latest U.S. Bank Ratings Compendium, which analyzes the 3Q results of U.S. banks with KBRA long-term ratings.

Themes discussed in the Compendium include:

  • Margin pressures continued to extend through the third quarter as nearly 80% of our rated universe reported a lower net interest margin (NIM) on a linked-quarter basis (versus ~65% in the prior quarter).
  • Uplift from non-spread income sources, notably mortgage banking revenues and swap income, as well as disciplined expense management helped soften the impacts of ongoing NIM contraction.
  • Stock buyback authorizations were again fairly prevalent, although deployment of capital for acquisitions could be on the horizon.
  • There were fewer instances of idiosyncratic credit events in 3Q compared to the prior quarter, although fraud-related charge-offs were present on more than one occasion. However, overall credit costs continue to remain modest.

The Compendium includes third-quarter 2019 updates on all publicly traded U.S. banks in KBRA’s rated universe, focusing on key performance and credit metrics, along with medians of key ratios. This issue features rankings tables, including the top 10 lowest cost deposit franchises and largest sequential negative changes in return on assets, NIM, net charge-offs, and nonperforming asset ratios.

To access the report, click here.

Related Publications: (available at www.kbra.com)

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical:
Ashley Phillips, Director
(301) 969-3185
aphillips@kbra.com

Ian Jaffe, Managing Director
(646) 731-3302
ijaffe@kbra.com

Joe Scott, Managing Director
(646) 731-2438
jscott@kbra.com

Van Hesser, Senior Managing Director
(646) 731-2305
vhesser@kbra.com

Business Development:
Dave DeMilt
(646) 731-3335
ddemilt@kbra.com

Contacts

Analytical:
Ashley Phillips, Director
(301) 969-3185
aphillips@kbra.com

Ian Jaffe, Managing Director
(646) 731-3302
ijaffe@kbra.com

Joe Scott, Managing Director
(646) 731-2438
jscott@kbra.com

Van Hesser, Senior Managing Director
(646) 731-2305
vhesser@kbra.com

Business Development:
Dave DeMilt
(646) 731-3335
ddemilt@kbra.com