Podcast

Major Issues Impacting Bank Stocks and Valuations

By: Sharon J. Lorman
Robert E. Kafafian

Guests: Gerard Cassidy, Managing Director – Equity Research, RBC Capital Markets


Podcast Show Notes:

Our This Month In Banking (TMIB) podcast features discussion with colleagues and other industry thought leaders on interesting banking topics. TMIB is available on the last Wednesday of every month here, or wherever you get your podcasts, for your listening enjoyment. Join us on your commute, at your desk, or at home.

Topic: Major Issues Impacting Bank Stocks and Valuations
Insights from Gerard Cassidy, Managing Director – Equity Research, RBC Capital Markets

How is COVID impacting Fed policy, and is inflation the top economic challenge of 2022? Bank stocks rallied strongly at the end of 2021 and at the start of the new year. Investors continue to reassess their outlook for 2022 in light of the Federal Reserve policy changing from monetary easing to monetary tightening. Higher interest rates with strong loan growth and record cash balances will boost banks’ net interest margins. Investors’ price targets and earnings revisions throughout 2022 could be increased depending upon the number of fed fund interest rate increases. Join us as our guest, renowned bank analyst Gerard Cassidy, opines on bank financial performance and related stock valuations. Listen and enjoy!

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 their 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.

Relevant Link:
A rise in short-term interest rates will be very positive for banks, says RBC’s Gerard Cassidy (2022, January 7).

This podcast relates to The Kafafian Group’s Strategic Management service. Click here for more information. 

Watch for episode 75 of This Month in Banking to be released on Wednesday, March 30th, 2022, and a new episode on the last Wednesday of every month.  

Thank you for listening!