U.S. banks are likely to face more credit losses, and the commercial real estate industry may falter through 2010, according to SunTrust Banks Inc. chief executive officer James Wells 3rd.
"The industry is a long way from declaring any sort of victory, especially regarding credit issues," Wells said in a speech to the Rotary Club of Atlanta on Monday.
"This credit cycle has yet to play itself out," he said. "We do not expect things to improve for the banking industry in the very near future."
SunTrust said last week that credit losses will rise in the third quarter, given continued weakness in residential real estate-related and cyclically sensitive commercial exposures. The company in a regulatory filing described delinquency trends for consumer loans as "encouraging."