Western Alliance, Zions Update March Panic Impact| Investor’s Business Daily

Regional banks roll out earnings this week, offering investors insight into the extent of the damage from the March banking panic. Western Alliance Bancorp reports quarterly results late Tuesday, followed by Zions Bancorp Wednesday. Truist Financial (TFC), Key Corp (KEY), Comerica (CMA) and Regions Financial (RF) announce earnings later in the week.

X

Analysts expect most regional bank will report lower deposit levels as customers rushed to larger institutions. Still, Wall Street expects to see some moderate earnings growth, driven by increases in net interest income. Superregional peer PNC Financial Services (PNC) posted mixed results Friday and provided a soft revenue guidance. However, firms may not feel the full impacts from March until 2024, according to Morgan Stanley, which cut its 2023 and 2024 outlook for regional banks in early April.

Western Alliance

Expectations: Analysts polled by FactSet see Western Alliance earnings sliding 11.3% to $1.97 per share while revenue jumps nearly 20% to $670 million.

Phoenix-based Western Alliance is one of the few regional banks expected to report an increase in deposits. Average deposits were projected at $55.48 billion, slightly up from $55.39 billion at year-end and well above its $50.37 billion level last year.

The bank’s insured deposits represent 68% of all deposits, which is “significantly higher” than at year-end, the firm announced in its early April update ahead of its earnings report.

Outlook: For fiscal 2023, FactSet analysts project earnings will fall 15.4% to $8.21 per share while revenue increases 6% to $2.744 billion.

WAL stock traded sideways premarket Tuesday. Shares crumbled 65% at the beginning of March as investors fled regional banks.

Zions

Expectations: Wall Street sees Zions Bank (ZION) earnings jumping 20% to $1.53 per share as revenue leaps 23% to $845 million.

Analysts predict deposits fall to $70.82 billion, down 13% from last year and 4.6% from year-end, respectively.

Outlook: Experts forecast Zions full year adjusted earnings ticking up 1% to $5.85 per share on 6% revenue growth to $3.34 billion.

ZION stock price halved during its March plummet and is trading near two-year lows.

Upcoming Regional Bank Earnings

Truist Financial, Key Corp and Comerica all report earnings Thursday, followed by Regions Financial Friday.

Analysts see earnings and revenue rising for all the banks while deposits decline, except for Key whose earnings are expected to edge down 1 cent from last year.

Heavily-battered First Republic (FRC) reports earnings on Monday, April 24 after delaying their results in earlier this month.

You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison

YOU MAY ALSO LIKE:

Bank Stocks And Financial News And Analysis

Join IBD Live Each Morning For Stock Tips Before The Open

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today