I’ve lost count of how many times I’ve read Goldman Sachs and the iMSM declare the banking crisis “easing”. We’re only in the first innings. Next comes the credit crunch then the recession then the asset crunch for banks. Morgan Stanley has a much better take on it all.
1Q23 Earnings Preview: Resetting Expectations Lower
Uncertainty is high given lack of real-time data on individual bank deposit trends. But one thing is clear: Street estimates need to move down meaningfully. We cut 2023/2024 EPS 17%/27%. No one is immune, but favor banks with funding flexibility: MTB, WBS, CFG, CFR, HBAN.