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KBRA Releases Third-Quarter 2022 U.S. Bank Compendium and 2023 Sector Outlook

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KBRA has published its third-quarter 2022 U.S. Bank Compendium and 2023 Sector Outlook, analyzing results for U.S. banks. The report acknowledges the resilience of rated banks amid tightening economic conditions, citing improved capital profiles and higher loss buffers. Despite economic uncertainties, the report maintains a Stable Outlook for the U.S. banking industry. Key metrics, trends, and the top performing banks based on deposit costs and reserves are discussed. The Compendium also includes a quarterly ESG Bulletin featuring Berkshire Hills Bancorp, Inc. (BHLB).

Positive
  • Banks are better positioned to withstand economic stress compared to previous cycles.
  • Stronger capital profiles and higher loss buffers are noted.
  • Stable Outlook for the U.S. banking industry is maintained.
Negative
  • None.

NEW YORK--(BUSINESS WIRE)-- KBRA releases its third-quarter 2022 U.S. Bank Compendium and 2023 Sector Outlook, providing the latest view of the U.S. banking industry, including KBRA’s sector outlook, and analysis of 3Q22 results for U.S. banks with KBRA long-term ratings. In this edition, we discuss the resilience of our rated universe amid the intensified tightening cycle and competing tailwinds and headwinds. Despite an uncertain macro environment, we recognize banks as better positioned to withstand stressed conditions versus previous cycles, with stronger capital profiles, generally reduced asset and liability concentration risk, and higher loss buffers in place—all factors that underpin our Stable Outlook for the U.S. banking industry. The report also examines other key topics and trends relevant to the banking sector. In addition, the Compendium includes our quarterly environmental, social, and governance (ESG) Bulletin, which features Berkshire Hills Bancorp, Inc. (NYSE: BHLB; KBRA Senior BHC Rating: BBB/Stable Outlook).

The Compendium includes 3Q22 summaries on all publicly traded U.S. banks in KBRA’s rated universe, focusing on key performance and credit metrics, along with medians of key ratios. The Compendium also includes the top 10 lowest cost deposit franchises, highest reserves to loans, and largest sequential changes in return on assets, net interest margin, net charge-offs, and nonperforming asset ratios. In addition, we provide a supplement with 170 debt issues—along with rating, amount issued, coupon, and maturity—among KBRA-rated banks.

Click here to view the report.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Leah Hallfors, Senior Director

+1 (301) 969-3242

leah.hallfors@kbra.com

Brian Ropp, Managing Director

+1 (301) 969-3244

brian.ropp@kbra.com

Bryan So, Director

+1 (301) 969-3246

bryan.so@kbra.com

Shannon Servaes, CFA, CPA Managing Director

+1 (301) 969-3247

shannon.servaes@kbra.com

Ian Jaffe, Managing Director

+1 (646) 731-3302

ian.jaffe@kbra.com

Joe Scott, Senior Managing Director

+1 (646) 731-2438

joe.scott@kbra.com

Business Development Contact

Justin Fuller, Senior Director

+1 (646) 731-1250

justin.fuller@kbra.com

Source: KBRA

FAQ

What is KBRA's outlook for the U.S. banking sector in 2023?

KBRA maintains a Stable Outlook for the U.S. banking sector in 2023, citing stronger capital profiles and resilience amid economic challenges.

How did U.S. banks perform in the third quarter of 2022 according to KBRA?

KBRA's third-quarter 2022 report highlights improved capital positions and indicates that rated banks are better equipped to face economic stress.

What key metrics did KBRA include in its third-quarter report on U.S. banks?

The report includes summaries of key performance metrics, asset and liability ratios, and rankings for deposit franchises among U.S. banks.

Does KBRA provide updates on Berkshire Hills Bancorp, Inc. in its report?

Yes, KBRA's Compendium features an ESG Bulletin with updates on Berkshire Hills Bancorp, Inc. (BHLB) within its analysis.

Berkshire Hills Bancorp, Inc.

NYSE:BHLB

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Banks - Regional
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United States of America
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