Updated with market close information and revised year-to-date returns.
NEW YORK ( TheStreet) -- Jefferies analyst Ken Usdin on Thursday highlighted four regional bank holding companies "better positioned to show growth" in core earnings, with industry consolidation playing a role.
Usdin expects "large/mid-cap regionals to post decent pre-provision income (PPNR) growth, aided by declining credit-related costs."
Pre-provision revenue is a very useful tool to help analysts and investors understand what's really going on with a bank since at this point in the economic recovery, most of the large industry players are appropriately releasing loan loss reserves which has the effect of distorting bottom-line results.With banks continuing to face pressure on their net interest margins in the prolonged low-rate environment, Usdin expects, on average, "low single-digit net interest income growth" this year, and says that major regional players "capable of growing
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