3 Bank Stocks Still Seeing Profits on Wall Street

[Investing Insights Daily]( September 1st, 2023 SPONSORED AD [5 Stocks to Buy Immediately]( Luke Lango is one of America's leading tech investors. He's found 14 stocks that have gone up more than 1,000% - including NIO for 3,353%, AMD for 6,149%, and Chegg for 2,554%. Now he's revealing his top 5 stocks for the AI Revolution, starting under $2 a share. [Click here to download this list for free.]( [3 Bank Stocks Still Seeing Profits on Wall Street]( The U.S. banking industry finds itself in a spot of bother after major credit rating agencies downgraded multiple banks. This has put banking stocks under pressure lately. Amid the uncertainty lingering around the stability of the U.S. banking sector, it could be wise to look beyond borders and invest in fundamentally strong foreign banking names KB Financial Group Inc. ([KB]( – [Get Rating]( Commerzbank AG ([CRZBY]( – [Get Rating]( and Erste Group Bank AG ([EBKDY]( – [Get Rating]( as they are insulated from the troubles in the U.S. banking sector. Before diving deeper into the fundamentals of these stocks, let’s discuss what’s happening in the U.S. banking industry and why it could be prudent to buy foreign bank stocks. Higher borrowing costs, large deposit outflows, and elevated interest rates have tested the U.S. banking sector’s strength. Credit rating agencies have been cutting credit ratings of some banks due to concerns over their financial health. Many of these banks have exposure to commercial real estate (CRE), which faces the [risk of default](. In June, Fitch downgraded the entire U.S. banking sector and has recently warned of [potential rating downgrades]( of America’s biggest banks. Earlier this month, Moody’s [downgraded ten banks]( and put six others on notice. The S&P Global followed Moody’s to downgrade [five U.S. banks]( while putting two others on notice. Zacks Investment Management client portfolio manager Brian Mulberry said, “These downgrades are mainly focused on the [liquidity concerns]( now raised by multiple agencies where banks have a lot of loan portfolios that are only drawing 2.5-4.5% in interest income while now needing to pay depositors 4.5-5.5% in savings and money market accounts.” The bank downgrades are primarily due to the benchmark interest rates, which are at their highest level in [22 years](. The high-interest rates have increased the deposit costs for banks. Higher interest rates and stricter lending standards make it difficult for borrowers to… Continue reading at [STOCKNEWS.com]( NOTE: If URLs do not appear as live links in your e-mail program, please cut and paste the full URL into the location or address field of your browser. [Privacy Policy]( | [Terms & Conditions]( This email contains a paid advertisement.This is not a solicitation for the purchase or sale of securities. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice, prior to making any investment decision. Advertisements and sponsorships are provided as a service to Stock News users. Stock News is not responsible for their content, services or products. The statements and opinions contained in this advertisement are not those of Stock News, and Stock News disclaims any liability for or arising from such statements and opinions. You are hereby advised that Stock News is receiving a fee as compensation for the distribution of this advertisement. [Click here to unsubscribe]( Copyright © 2023 Investing Insights Daily News, part of StockNews.com - POWR Stock Rating, Market Outlook & Investment Insights Magnifi Communities, 1 Penn Plaza, Suite 3910, New York, NY 10019