02:06 PM EDT, 04/09/2024 (MT Newswires) -- US regional banks are likely to show consistent trends in Q1 as margins near trough levels, RBC Capital Markets said Tuesday in a report.

"For Q1, the key focus area will likely remain on the trajectory of margins, which we believe are very close to trough levels with room for potential expansion in H2 regardless of the timing of [the Federal Reserve] rate cuts," RBC said.

Credit quality is expected to remain consistent with recent quarters and perform within management expectations despite concerns over commercial real estate, RBC said.

Huntington Bancshares ( HBAN ) , Webster Financial ( WBS ) and Wintrust Financial ( WTFC ) are well positioned with "diversified funding and revenue opportunities, favorable paths to expand or defend their margins and manageable credit quality trajectories," RBC said.

Western Alliance (WAL) remains "attractively valued," with "potential mortgage tailwinds" and "likely growth momentum" later in 2024, RBC said.

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