The Effect of Covid-19 on Bank Earnings, Credit Quality and Valuations
By:
Sharon J. Lorman
Robert E. Kafafian
Jeffrey P. Marsico
Guest: Gerard Cassidy, Managing Director – Equity Research, RBC Capital Markets
(Taped May 13, 2020)
Podcast Show Notes:
Our This Month In Banking (TMIB) podcast features discussion with colleagues and other industry thought leaders on interesting banking news that happened this month. TMIB will be available on the last Wednesday of every month here, and on Apple and Droid podcast apps for your listening enjoyment. Join us on your commute, at your desk or at home.
Topic: The Effect of Covid-19 on Bank Earnings, Credit Quality and Valuations
Insights from Gerard Cassidy, Managing Director – Equity Research, RBC Capital Markets
As the government-imposed shutdowns taken to contain the COVID-19 virus have negatively affected the U.S. economy and financial markets, there is still great uncertainty about the ultimate length and severity of the economic downturn. For financial institutions the question is how will the pandemic affect bank earnings, credit quality, capital, and valuations? Join us as our guest, renowned bank analyst Gerard Cassidy, opines on how long it will take to see the full effect of the pandemic on bank financial performance and valuations, and the longer-term prospects for the banking industry.
Gerard S. Cassidy Biography
Managing Director – Equity Research
RBC Capital Markets
Portland, Maine
Gerard S. Cassidy is a Managing Director of Equity Research with RBC Capital Markets. Gerard S. Cassidy was a Managing Director of Equity Research with Tucker Anthony Sutro Capital Markets, which was acquired by the Royal Bank of Canada in 2001. Mr. Cassidy joined Tucker Anthony Sutro in March 1988 as a bank equity analyst. He is responsible for providing bank and regional economic research to the firm’s clients. Prior to joining Tucker Anthony Sutro, he was employed by UNUM Corporation as a senior bank analyst. Mr. Cassidy began his professional career with Gulf+Western, Industries as a merger and acquisitions analyst.
Mr. Cassidy is the creator of the Texas Ratio, a ratio used by investors to determine whether a bank could be insolvent. He is often quoted in the Wall Street Journal, New York Times, Forbes, Business Week, The American Banker and other leading newspapers and periodicals regarding the banking industry. Additionally, he has appeared on CNBC, CNN, NBC, BNN, National Public Radio and other leading broadcasts discussing banking and economic issues and its impact on bank stocks.
Mr. Cassidy earned a Bachelor of Science degree from the University of Maine in accounting and finance in 1980. He received his Masters of Business Administration degree from St. John’s University in 1984. Mr. Cassidy is a former Board of Director and Secretary of the New York Bank and Financial Analysts Association. He is currently the President of the BancAnalysts Association of Boston, Inc. Mr. Cassidy was also on the Board of Directors of Tucker Anthony Sutro Capital Markets.
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Watch for episode 54 of This Month in Banking to be released on Wednesday, June 24, 2020 and a new episode on the last Wednesday of every month.
Thank you for listening!
Relevant links:
RBC Capital Markets Insights Beyond 2020 (2020, March 26) Can Banks Pass the “Ultimate” Stress Test?
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