F.N.B. Corporation's (FNB) earnings are set to decline next year mostly due to the recent interest rate cuts and a high sensitivity of the company's net interest margin to interest rates. Subdued increase in non-interest expense is also expected to contribute towards earnings decline. On the other hand, some support for the bottom-line is anticipated from low loan growth. Due to the comfortable level of the payout ratio, the dividend payout is unlikely to be affected by earnings decline.
Repricing Gap To Pressurize Margin
As mentioned in the third quarter 10-Q filing,