Saturday, July 18, 2015

Seeking Alpha: BB&T Not Content To Just Wait For Better Rates

On the whole, most of the larger banks in the U.S. are playing a waiting game - they're competing for growth where they can, particularly in commercial lending, but largely sitting tight in the hope of a more profitable yield curve in the quarters ahead. That hasn't been BB&T's (NYSE:BBT) approach, as this super-regional has not only been looking to the M&A market to find good returns on capital, but is also actively reconfiguring its loan book.

I do still expect BB&T's efforts to lead to ROEs in the low double-digits in a few years, and I believe BB&T is one of the few larger banks with meaningful capacity to be active on the M&A front (or at least in the banking space). Like most other quality banks, including U.S. Bancorp (NYSE:USB) and Wells Fargo (NYSE:WFC), this potential is not lost on the Street and the shares aren't a striking bargain. I believe that BB&T is still a solid holding, but investors need to calibrate their expectations back to more normalized levels for bank stocks and not expect significant market outperformance.

Continue here:
BB&T Not Content To Just Wait For Better Rates

No comments: