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BRIEF-Moody's Says European Banks' Profits Will Continue To Lag Peers In U.S., Canada As Rates Edge Higher

Published 2018-12-05, 04:49 a/m
Updated 2018-12-05, 04:50 a/m
© Reuters.  BRIEF-Moody's Says European Banks' Profits Will Continue To Lag Peers In U.S., Canada As Rates Edge Higher

Dec 5 (Reuters) - Moody's:

* MOODY'S SAYS EUROPEAN BANKS' PROFITS WILL CONTINUE TO LAG PEERS IN THE US AND CANADA AS RATES EDGE HIGHER

* MOODY'S SAYS IN THE US, BANKS' PROFITABILITY WILL CONTINUE TO OUTPERFORM GLOBAL PEERS, BUT THE POSITIVE EFFECT OF RISING INTEREST RATES WILL DIMINISH

* MOODY'S SAYS SLOWER PACE OF RATE RISES AND GREATER USE OF MARKET FUNDING WILL HOLD BACK PROFITABILITY GAINS FOR BANKS IN CONTINENTAL EUROPE

* MOODY'S SAYS LENDING RATES AT BANKS IN CANADA AND THE UK WILL REPRICE FASTER AT HIGHER RATES THAN FOR PEERS IN OTHER ADVANCED ECONOMIES

* MOODY'S EXPECTS HIGHER PERCENTAGE OF FUTURE RATE HIKES BY FED TO BE PASSED ON TO DEPOSITORS AS BANKS COMPETE MORE AGGRESSIVELY TO KEEP DEPOSITS

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