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BRIEF-Moody's says U.S. banks' profitability prospects improving against a steady economic backdrop
May 24, 2017 / 4:17 PM / 4 months ago

BRIEF-Moody's says U.S. banks' profitability prospects improving against a steady economic backdrop

May 24 (Reuters) - Moody’s :

* Says U.S. banks’ profitability prospects improving against a steady economic backdrop

* Moody’s says outlook for the U.S. banking system remains stable, as favorable economic trends support core profitability over the next 12-18 months

* Moodys says “U.S. Banks’ core profitability has the potential to gain from improving net interest margins”

* Moody’s on U.S. Banks says key asset risk metrics remain steady, continuing a 6-year positive trend, and economic growth should drive further improvement

* U.S. banks’ exposure to the auto lending sector is modest and ranges from about 5% to 36% of gross loans for the most exposed banks

* Says retail currently weakest industry as measured by forecasted 1-year default rate; u.s. Banks have exposure to retail in c&i, cre, reit portfolios

* U.S. banks’ capital ratios are satisfactory, while their funding profiles remain a key credit strength

* Says U.S. banks’ funding profiles remain key credit strength, as core deposits, long-term debt more than fully fund us banks’ illiquid assets Source text for Eikon:

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