RF - Comerica SVB Financial expected to see fast core NII growth: Jefferies

Comerica (NYSE:CMA -1.6%) is the large-cap bank and SVB Financial (NASDAQ:SIVB +1.2%) is the mid-cap bank expected to have fastest core net interest income growth (vs. Q4 2021 annualized levels) as the Federal Reserve starts raising rates, according to a group of Jefferies analysts led by Ken Usdin. The analysts also updated their "stoplight" rankings, which show asset/liability-side traits. "On the way up, it favors banks with 1) more variable-rate loans; 2) shorter average life securities books; 3) low loan/deposit ratios; 4) high excess liquidity position relative to history; 5) high percentage of noninterest-bearing deposits; 6) low historical deposit betas," the analysts wrote in a note to clients. The simple rank add-up: Comerica (CMA), JPMorgan Chase (JPM +0.9%), Fifth Third Bancorp (FITB -1.8%), M&T Bank (MTB -1.5%), and Regions Financial (RF -1.4%) for large-caps; Cullen Frost (CFR -1.6%), SVB Financial (SIVB), First Horizon (FHN +0.3%), Texas Capital Bancshares (TCBI -3.2%), and Commerce

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Comerica, SVB Financial expected to see fast core NII growth: Jefferies