U.S. Banks: Navigating the Economic Fallout From the Pandemic

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Presented by

John Mackerey, Mike McTamney & Tom Torgerson

About this talk

U.S. banks remain pressured reflecting the ongoing impact of the Coronavirus Disease (COVID-19) on the economy, loan portfolios, revenues and the bottom line. Shrinking margins and elevated provisions for credit losses have all contributed to weaker earnings for the sector. Additionally, the near-term outlook continues to present substantial challenges and uncertainties. Given the unprecedented relief measures that have been implemented, current asset quality metrics provide little visibility into the expected downturn in asset quality. While initial support measures were quickly implemented by governments and regulators around the globe, payment deferrals along with some income-support programs may be coming to a close with additional fiscal stimulus still unclear at this point in the U.S. DBRS Morningstar continues to update its macroeconomic scenarios, which allows analysts to evaluate a range of potential economic outcomes. Globally, bank credit ratings remain pressured, and given the difficult operating environment, more negative ratings actions are likely, including both Negative trends and downgrades, especially if the macroeconomic scenarios deteriorate further. In this webinar, our analysts will discuss potential economic scenarios and explore how U.S. banks are navigating the economic disruption caused by the coronavirus pandemic. We will review trends for 3Q earnings and discuss our outlook for these banks over the near-term. The discussion will last approximately 20 to 25 minutes and will be followed by an interactive question-and-answer session. DBRS Morningstar welcomes all who wish to participate.

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