Group 1 - Goldman Sachs raised the price target on Synchrony (SYF) to $98 from $85 while maintaining a Buy rating on the shares [1] - Regional banks underperformed the market by 200-300 basis points in 2025 due to macro concerns and credit worries, although stocks rallied 13% late in the year [1] - Looking ahead to 2026, factors such as solid loan growth, net interest income momentum, positive operating leverage, and improving returns indicate continued multi-year fundamental improvement, with credit risk being the main wildcard [1]

Group 1 - Goldman Sachs lowered the price target on UWM Holdings (UWMC) to $5 from $6 while maintaining a Neutral rating on the shares [1] - Regional banks underperformed the market by 200-300 basis points in 2025 due to macro concerns and credit worries, despite a 13% rally in stocks late in the year [1] - For 2026, factors such as solid loan growth, net interest income momentum, positive operating leverage, and improving returns indicate continued multi-year fundamental improvement, with credit risk being the main wildcard [1]

Goldman Sachs raised the firm’s price target on American Express (AXP) to $420 from $400 and keeps a Buy rating on the shares. Regional banks underperformed the market by 200-300 basis points in 2025, weighed by macro concerns and credit worries, though stocks rallied 13% late in the year, the analyst tells investors in a research note. Looking to 2026, solid loan growth, net interest income momentum, positive operating leverage, and improving returns support continued multi-year fundamental improvement, w ...

Loan growth had slowed sharply in mid-2025 due, in part, to stricter regulations, but recovered strongly since then, with analysts citing festive period spending and ‌the government's consumption tax ‌cuts among factors pushing up growth. Growth in bank credit decelerated to 9.9% on-year in the quarter ended June, data ‌from central bank reports showed, from 11.1% in the quarter ended March. It grew 11.5% year-on-year in November, the latest monthly data available. "Overall systemic credit growth is showin ...

Community banks are navigating a mixed operating backdrop marked by still-elevated funding costs, competitive deposit pricing and the need to balance loan growth with disciplined credit risk management. In this environment, United Bancorp, Inc. (UBCP) and Ohio Valley Banc Corp. (OVBC) stand out as two regional institutions with similar core banking foundations but distinct operating footprints and business levers. UBCP operates through Unified Bank with 18 banking centers across multiple Ohio counties and p ...

Financials been a standout this year. The group pushing to record highs. The macro backdrop of course uh has been favorable.Continues to evolve though. Joining us now RBC Capital Markets co-head financials research Gerard Cassidy. Gerard, you've been bullish all year.It's been the right call. What are you thinking heading into next year. >> David, thank you and thank you for having me on the program.The outlook remains real positive. uh the trends that we saw develop in 2025 are expected to continue into 20 ...

Core Insights - The banking sector has experienced a strong decade driven by profitability uplift post-COVID, sustainable profitability at a 14% return on tangible equity, and ongoing earnings revisions [1][2][3] - Loan growth has shown consistent improvement over the past 18 months, with expectations of continued growth aiding valuations into 2026 [4] - The sector is currently valued slightly above the long-term average, with expectations for progress towards double-digit valuations due to ongoing earnings growth [6] Profitability and Rerating - Profitability in the banking sector has increased significantly, leading to a rerating that began in 2024 and has intensified in the current year [2][3] - The expectation of ongoing earnings revisions supports a bullish outlook for the sector [3] Growth Trends - Loan growth is highlighted as a key comeback story, with a current growth rate of 3% expected to positively impact valuations [4] - The sector is perceived as having previously low growth, but recent trends indicate a shift towards more robust growth opportunities [3] Valuation and Market Position - Current valuations are at 9.5 times, slightly above the long-term average, with historical peaks around 12.5 times [6] - Continued earnings growth and upgrades are anticipated to drive valuations higher [6] M&A Activity - European banks are well-capitalized, presenting opportunities for management teams to consider various growth strategies, including M&A [7][8] - There is a growing confidence among management teams regarding M&A, with investor support increasing for deals that are typically earnings accretive [8]

Financial Data and Key Metrics Changes - In Q3 2025, Banco Macro reported a net income loss of ARS 33.1 billion, a decrease of ARS 191.5 billion from the previous quarter, primarily due to higher loan loss provisions and administrative expenses [3] - Total comprehensive income for the quarter was an ARS 28.4 billion loss, with net income for the first nine months of 2025 totaling ARS 176.7 billion, down 35% year-on-year [3] - The annualized ROE and ROA as of Q3 2025 were 4.5% and 1.5%, respectively [3] Business Line Data and Key Metrics Changes - Net operating income before general and administrative expenses was ARS 779.6 billion, down 23% from Q2 2025 and down 29% year-on-year [4] - Provision for loan losses increased to ARS 156.8 billion, up 45% from Q2 2025 and up 424% year-on-year [4] - Net interest income totaled ARS 686.2 billion, a decrease of 7% from Q2 2025 and 8% year-on-year [4] - Net fee income was ARS 177.3 billion, down 7% from Q2 2025 but up 14% year-on-year [10] Market Data and Key Metrics Changes - Total financials reached ARS 10.1 trillion, increasing 3% quarter-on-quarter and 69% year-on-year [13] - Private sector loans increased 3% quarter-on-quarter and 67% year-on-year, with commercial loans showing significant growth [14] - Total deposits increased 5% quarter-on-quarter and 11% year-on-year, with demand deposits leading the growth [16] Company Strategy and Development Direction - The bank aims to utilize its excess capital of ARS 3.3 trillion for potential M&A opportunities, with a capital adequacy ratio of 29.9% [17] - The strategy includes a focus on both commercial and consumer loan growth, with expectations of a 35% real growth in loans for 2026 [25] - The bank's market share in private sector loans reached 9% as of September 2025, with a focus on maintaining a well-optimized deposit base [16] Management's Comments on Operating Environment and Future Outlook - Management indicated that the delinquency rate was higher than expected, leading to increased provisions [20] - For 2026, the bank forecasts loan growth of 35% in real terms and deposits to grow around 25% in real terms, with an expected ROE in the low 10s [21] - The peak in non-performing loans (NPLs) is anticipated to occur between October and November 2025, with a cost of risk expected to decrease to around 5% in 2026 [23] Other Important Information - The bank's non-performing total finance ratio reached 3.02%, with a coverage ratio of 120.87% [17] - Employee benefits increased by 20% due to provisions for early retirement plans, impacting administrative expenses [12] - The bank's liquidity ratios remain strong, with a liquid assets to total deposit ratio of 67% [17] Q&A Session Summary Question: Was the result worse than anticipated? - Management acknowledged that the results were impacted by higher provisions and unexpected expenses, along with bond price performance [20] Question: What are the expectations for loan growth and returns next year? - The bank forecasts a 35% real growth in loans and a low 10s ROE for 2026 [21] Question: What additional expenses were incurred? - The unexpected expenses were primarily related to early retirement plans [22] Question: When is the peak of NPLs expected? - The peak is anticipated to occur between October and November, with a cost of risk of 6.5% in Q3 [23] Question: What is the plan for the $400 million bond maturing in 2026? - Management stated that various options are being considered, including potential bond issuance or cancellation [39]

Financial Data and Key Metrics Changes - Banco de Chile reported a net income of CLP 927 million for September 2025, reflecting a year-on-year growth of 1.9% and an ROAC of 22.3% [2][19] - The bank's net income for the third quarter of 2025 was CLP 293 billion, representing a 1.7% increase compared to the same period last year [18] - The return on average assets stood at 2.3%, maintaining a significant gap over peers [19] Business Line Data and Key Metrics Changes - Operating revenues totaled CLP 736 billion in Q3 2025, a 2.1% year-on-year increase, supported by solid customer income of CLP 630 billion, which grew 5.4% year-on-year [20][21] - Non-customer income decreased by 14.1% year-on-year to CLP 105 billion, primarily due to lower inflation-related revenues [21][22] - Total loans reached CLP 39.6 trillion as of September 2025, marking a 3.7% year-on-year increase [24] Market Data and Key Metrics Changes - The Chilean economy showed signs of recovery, with GDP growth of 3.1% year-on-year in Q2 2025, supported by a rebound in domestic demand [3][4] - Inflation increased to 4.4% in September 2025, prompting the central bank to maintain the interest rate at 4.75% [5][6] - The loan-to-GDP ratio stood at 76% as of September 2025, reflecting subdued credit expansion relative to economic activity [11] Company Strategy and Development Direction - Banco de Chile's strategy focuses on efficiency, collaboration, and a customer-first mindset, aiming for industry-leading profitability and market leadership in lending [12][13] - The bank is committed to digital transformation and operational productivity to enhance customer experience and drive growth [47][50] - The integration of the former collection services subsidiary, Socofin, has generated operational synergies and improved efficiency [15] Management Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the Chilean economy, anticipating improved domestic demand and investment, which will drive loan growth [44][55] - The upcoming presidential elections are expected to influence macroeconomic conditions, with a consensus among candidates on the need for economic growth [54][55] - The bank expects a gradual recovery in loan growth as uncertainty eases, particularly in the SME and consumer segments [12][49] Other Important Information - Banco de Chile maintains a strong capital position with a CET1 ratio of 14.2% and a total Basel III capital ratio of 18% [34] - The bank's asset quality remains robust, with a delinquency ratio of 1.6%, significantly below peers [38] - Operating expenses increased by 1.2% year-on-year, reflecting disciplined cost management [39] Q&A Session Summary Question: Concerns about market share in commercial and consumer loans - Management acknowledged stable market shares and emphasized a focus on digital transformation and high-potential segments to improve market position [43][46] Question: Impact of upcoming presidential elections on macro outlook - Management highlighted the importance of the election results and the consensus on economic growth among candidates, which could enhance loan demand [51][54] Question: Outlook for loan growth in 2026 - Management indicated that loan growth is expected to accelerate, driven by improved economic conditions and a focus on commercial and consumer lending segments [57][59]

First Horizon Corporation Conference Call Summary Company Overview - **Company**: First Horizon Corporation (NYSE:FHN) - **Assets**: $83 billion - **Branches**: Over 400 across the Southeast - **Headquarters**: Memphis, Tennessee - **Segments**: Regional banking, specialty banking, and corporate [1][3] Core Insights and Arguments Customer Sentiment and Loan Growth - Customers in the Southeast are optimistic and resilient despite past challenges like COVID and rising rates [4][5] - Loan growth is slower than previously anticipated, with expectations of high single-digit growth not materializing [5][6] - The mortgage warehouse business has been a bright spot for loan growth [5][8] Loan and Deposit Strategy - Focus on building long-term customer relationships rather than just selling products [7][8] - Emphasis on decentralized decision-making in local markets for deposit pricing [8][9] M&A Activity - Increased M&A activity in the Southeast with several competitors involved in mergers [10][11] - First Horizon has recently completed significant mergers and is now focused on organic growth [12][14] - The company is positioned to capitalize on opportunities arising from competitors' M&A disruptions [12][14] Interest Rate Environment and Asset Sensitivity - The company is optimistic about its countercyclical businesses, particularly FHN Financial, in a falling interest rate environment [17][18] - Mortgage warehouse business is expected to benefit from potential refinancing waves as rates decrease [20][26] Expense Management and Technology Investments - Commitment to keeping expenses flat while investing in technology and efficiency improvements [27][29] - Significant technology investments have been made to clear tech debt and enhance operational efficiency [31][32] - AI is being utilized to reduce costs and improve speed in developing new digital platforms [33][36] Credit Quality and Risk Management - Strong credit culture with a focus on client relationships and decentralized credit analysis [39][40] - Best-in-class charge-off rates, with a proactive approach to monitoring credit quality [41][45] - Increased vigilance regarding fraud and operational controls in response to industry challenges [49][50] ROTCE Target and Capital Management - Achieved a 15% ROTCE in Q4, with a goal to sustain and exceed this level [52][53] - Plans to return capital to shareholders primarily through loan growth, with share buybacks as a secondary option [59][60] - Maintaining a capital ratio of 11% with a long-term target of 10% [57][58] M&A Strategy - M&A is not a near-term priority; focus remains on organic growth and achieving top-tier returns [61][62] - The company is open to opportunities but prioritizes shareholder value and operational efficiency [64] Additional Important Points - The competitive deposit environment has quieted down, with clients aware of rate changes [66][68] - Technology expenses are being managed effectively, with a focus on client-facing projects [70][74] This summary encapsulates the key points discussed during the First Horizon Corporation conference call, highlighting the company's strategic focus, market conditions, and operational insights.