Nomura Securities on U.S. Banks

Nomura Securities on U.S. Banks by Brian Foran

Foran said, "The single biggest development for banks’ balance sheets this quarter is interest rates as the NIM outlook continues to get hit by the triple threat of low rates, for an extended period, with a flatter yield curve. Still, we have to ask what is going on with banks’ balance sheets apart from rates. The answer based on data through August 3rd: loan growth remains positive although growth is bifurcated by the real estate divide, while liquidity is big and building. Unrealized securities gains now stand at $23bn for the large domestic banks, as securities books are mostly rate-sensitive MBS, agencies and treasuries. In absolute terms this is the largest unrealized gain on record in 15 years of data."

Some U.S. Banks include JPMorgan (NYSE: JPM), PNC Financial (NYSE: PNC), Citi (NYSE: C), BofA (NYSE: BAC), and Wells Fargo (NYSE: WFC)

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