Despite recovering from last year’s challenges, the U.S. banking industry still faces the risks of a potential default on commercial real estate (CRE) loans, a delay in interest rate cuts, higher borrowing costs, slowing loan growth, higher deposit costs, etc.
Amid this backdrop, it could be prudent to look beyond borders and invest in fundamentally strong financial stocks, such as Woori Financial Group Inc. (WF), Erste Group Bank AG (EBKDY), and Banco Santander, S.A. (SAN). These stocks are B (Buy-rated) in our proprietary POWR Ratings system.
