trending Market Intelligence /marketintelligence/en/news-insights/trending/SHC88wyfBrcFebo0Q_fE-A2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

People's United predicts lower NIM in 2020

Street Talk - Ep. 64: Coronavirus jumpstarts digital adoption

Street Talk Podcast

Street Talk - Ep. 63: Deal talks continue amid bank M&A freeze, setting up for strong Q4

Street Talk Podcast

Street Talk - Ep. 62: 'Brutal' outlook for oil demand offers banks in oil patch no relief

Amid Q1 APAC Fintech Funding Slump, Payment Companies Drove Investments

People's United predicts lower NIM in 2020

Bridgeport, Conn.-based People's United Financial Inc. is anticipating a net interest margin of 3.0% to 3.1% in 2020, management said on the bank's 2019 fourth-quarter earnings call.

This is down from its 2019 net interest margin of 3.14%. The bank assumed no change to the federal funds rate in its estimate.

The bank's margin is pressured from repricing of the loan portfolio and an inability to lower deposit rates much further, management said on the call. Management said if the Federal Reserve does not change rates, it will be more difficult for the bank to lower its deposit pricing. "In a steadier environment, the ability to make moves will be a little bit muted," one member of the management team said.

According to an investor presentation, the bank plans to grow loans between 2% and 4%. This excludes runoff from select portfolios of United Financial Bancorp Inc., which People's United acquired in 2019, as well as the transactional portion of its New York multifamily portfolio, which is also in "runoff mode."

The bank expects net interest income to grow 9% to 11%, with non-interest income growing between 2% and 4%. Operating non-interest expenses are expected to be in the range of $1.19 billion to $1.22 billion. The bank's effective tax rate is expected to be between 20% and 22%, according to the presentation.

Bank management also discussed People's United's branch strategy, saying it is interested in expanding through de novo branches in addition to its acquisition strategy. Boston is one area in which the bank is considering expanding, but it is closing branches in other locations in order to "optimize" its branch strategy, management said.