Outlook stable for US banks as rates rise, says Fitch
Source - SMW
Fitch Ratings' sector outlook for US banks in 2018 is stable, reflecting the agency's expectation of marginally improving profitability offset by modest asset quality weakening, driven by rising interest rates.
Fitch expects the operating environment for US banks to remain stable in 2018, with economic growth offering support for further rises in short-term interest rates.
Fitch said: 'Most of the US banks we rate are benefiting from rising interest rates.
'They have been able to increase net interest margins and could benefit from further rate rises.
'However, if a flatter yield curve persists net interest margins will come under pressure, and it could hinder earnings growth.'