KBWR - These Regional Banks Could Shake Up Q1 2024 Earnings Season

2024-03-30 02:28:42 ET

Summary

• Q1 earnings season is crucial for the regional banking sector, especially in light of the potential commercial real estate crisis.
• Shares of New York Community Bancorp are down roughly 70% year-to-date, illustrating that the problems in the regional banking sector aren’t yet resolved.
• If loan performance linked to the embattled commercial real estate sector continues to deteriorate, then shares of regional banks like Citizens Financial Group could be in for a reckoning.

By Andrew Prochnow

This year is a going to be a monumental year for the commercial real estate sector, but more broadly, for the regional banking sector.

Both of these sectors have been on watch since Silicon Valley Bank ( SIVBQ ) went bust last spring. And based on the recent slide in the shares of New York Community Bancorp ( NYCB ) , a potential regional banking crisis is still brewing. Year-to-date, shares of NYCB are down nearly 70%, as illustrated below....

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