KBRA released its Q1/24 U.S. Bank Compendium, providing the latest view of the U.S. banking industry and analysis of Q1/24 results for U.S. banks with KBRA long-term ratings.

This edition features discussions about how the higher interest rate environment continues to pressure banks’ earnings, though narrowing funding betas paired with slower loan growth, and proactive repositioning of the investment portfolio for some, suggest net interest income stability could be on the horizon for many KBRA-rated banks in 2H24.

Furthermore, the report says a gradual uptick in nonperforming assets has not caused any imminent concerns through Q1/24. Loss absorption capacity is reinforced by a higher level of core capital, which remains an important mitigant in the event of negative credit migration.

This KBRA report also examines other key topics and trends relevant to the banking sector. The compendium includes Q1/24 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. Further, KBRA provides a supplement with 147 debt issues—along with rating, amount issued, coupon and maturity—among KBRA-rated banks.

Click here to view the report.