Key Takeaways SouthState shares gained 11.6% in three months, beating industry and peers' performance. Fed rate cuts, NII growth, and acquisitions like Independent Bank boosted scale and margins.Strong liquidity supports dividend hikes and buybacks, though expenses and CRE risks weigh.SouthState Corporation’s (SSB)   shares have rallied 11.6% in the past three months, outperforming the industry’s growth of 6.8%. Further, the company has performed better than its peers, Origin Bancorp, Inc. (OBK) and Stock Y ...

Core Insights - Corporate loan growth remains subdued, but public sector banks (PSBs) are expected to see robust loan growth driven by retail, agriculture, and MSME segments [1][2] Loan Growth - Most PSBs are projected to report strong loan growth, particularly in the RAM (retail, agriculture, and MSME) sectors, while corporate loan demand has shifted towards mutual funds and capital markets [2] - Bank of Baroda (BoB) anticipates a quarterly loan growth of approximately 4%, while Punjab National Bank (PNB), Canara Bank, and Indian Bank expect around 2.5% growth [2][3] - State Bank of India (SBI) is likely to achieve close to 3% growth, whereas Union Bank of India is expected to lag behind sector averages [3] Margins and Asset Quality - The outlook for net interest margins (NIM) indicates a moderate decline, with PNB expecting flat NIM, BoB anticipating stable reported NIM but a potential slip in core NIM by seven basis points, and Indian Bank's margins possibly declining by under 10 basis points [3] - Canara Bank may face higher pressure due to lower current and savings account (CASA) ratios, while SBI projects a five basis point drop in margins [4] - Asset quality across state-owned banks is expected to remain stable, with no major slippages anticipated; SBI, BoB, and Indian Bank are expected to see improved slippage ratios [4][5] Return on Assets (RoA) - Sustainability of return on assets (RoA) above 1% remains a concern for investors, but key banks like SBI and BoB are positioned to maintain this benchmark due to stronger core income [6] - PNB may experience an expansion in RoA due to lower tax outgo [6] Performance Comparison - The PSU Bank Index has outperformed the private bank index by nearly 15% over the past six months, driven by stronger loan growth and asset quality performance [7] Revenue Trends - Net interest income (NII) growth has been under pressure for both state-owned and private banks, with PSBs experiencing flat to negative NII growth year-on-year in the first quarter of FY26 [8]

Core Viewpoint - The Charles Schwab Corporation (SCHW) has significantly reduced its high-cost supplemental funding balances, leading to improved net interest revenues (NIR) and net interest margin (NIM) in 2025 [1][2][3]. Group 1: Financial Performance - By the end of June 2025, SCHW's supplemental funding balance decreased by 70% to $27.7 billion from a peak of $97.1 billion in May 2023 [1]. - In the first half of 2025, SCHW's NIR increased by 25.9% year over year to $5.53 billion, aided by lower interest expenses and growth in bank lending [2]. - The NIM for SCHW rose to 2.59% in the first half of 2025, up from 2.03% in the same period the previous year [2]. Group 2: Future Projections - SCHW's NIR is projected to increase by 24.7% year over year in 2025, driven by the continued reduction in supplemental funding balances and higher interest rates [3]. - Management anticipates NIM to be between 2.65% and 2.75% by the end of 2025, with expectations for fourth-quarter NIM to approach 2.80% [3]. Group 3: Peer Comparison - Robinhood Markets, Inc. (HOOD) reported a 19.4% increase in NIR year over year in 2024 and a 119% increase in 2023, with a 20% rise in the first half of 2025 to $647 million [4]. - Interactive Brokers (IBKR) saw a 12.7% increase in net interest income year over year in 2024 and a 67.5% increase in 2023, with a 5.9% rise to $1.63 billion in the first half of 2025 [5]. Group 4: Stock Performance and Valuation - SCHW's shares have increased by 31.2% this year, outperforming the industry growth of 20.7% [6]. - SCHW trades at a forward price-to-earnings (P/E) ratio of 19.10, which is significantly higher than the industry average of 14.43 [8]. - The Zacks Consensus Estimate indicates earnings growth of 41.2% for 2025 and 17.7% for 2026, with upward revisions in earnings estimates over the past 30 days [9].