Nobody expected this to be a banner quarter for large banks, and with the likes of Wells Fargo (NYSE:WFC), BB&T (NYSE:BBT), U.S. Bancorp (NYSE:USB), and PNC Financial (NYSE:PNC)
now having reported, it seems safe to say that it hasn't been. Sluggish
economic performance in the U.S., not to mention ample competition, is
keeping a lid on loan demand and rates, and most banks just don't have
enough dry powder in their fee businesses or expense reduction plans to
build strong growth.
I like PNC well enough back in January, and the shares are up about 17% since then - more or less matching Fifth Third (NASDAQ:FITB)
and outperforming BB&T, U.S. Bancorp, and Wells Fargo. I don't see
many obvious bargains in larger U.S. banks, but with the recent run of
performance of PNC, these shares look a little less of a bargain on a
relative basis. From here on, this looks like a long-term value
accretion story - if you're comfortable with that, hold what you have.
If you're looking for more dramatic outperformance, I'm not sure this is
the name for you.
Read the full article here:
PNC Financial Doing Enough In A 'Good Enough Is Good Enough' Environment
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