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
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