Don Kimble assured investors Wednesday that the bank is being "very diligent" in lending to an industry some experts say is already in a recession. Echoing other banking executives, he also predicted that consumer lending would drive overall loan growth in the near term.
Banco Santander Chairman Ana Botin said that more than a decade after the financial crisis, bankers and other elites remain distrusted around the world, and "as a result, political populism is ascendant."
First Horizon and Iberiabank solidified their resolve after BB&T and SunTrust announced their merger. Bryan Jordan, First Horizon's CEO, says he's convinced the earlier deal is having a similar influence at other regional banks.
Bank and other lenders are said to have poured hundreds of billions of dollars into financing private-equity firms and their investment deals in recent years. Defaults have been low, but an economic slowdown could put these relationships to the test.
Shares in the lender fell after it reported lower third-quarter profits, said nonperforming assets rose and cautioned that it had lost multifamily loan deals to competitors offering easier terms.
Concerns over banks’ level of preparation have led to worries about disruptions in the lending market, and some financial institutions warn that a new interest rate benchmark could cause lenders to pull back on credit.
