While JPMorgan (NYSE:JPM) shrinks its balance sheet and expands its lending, BB&T (NYSE:BBT) works to integrate its M&A binge, PNC Financial (NYSE:PNC) works on improving its branch network, and Citi (NYSE:C) continues to run off past bad debts, Wells Fargo (NYSE:WFC)
is keeping busy too. Not only has the company adjusting its rate
sensitivity down a bit, the company has struck three deals with General Electric (NYSE:GE)
to acquire commercial real estate loans, a railcar leasing business,
and a sizable commercial lending and leasing operation that includes
distribution and vendor financing and asset-based middle market lending.
Wells Fargo looks pretty attractive to me right now. Not
only is the business simple enough to avoid the steeper G-SIB
surcharges that will apply to JPMorgan and Citi, but there's a very
attractive mix of commercial and consumer lending, a leading mortgage
and auto lending business, growing card loans, and fee-generating
businesses like the expanded leasing operation. I suppose I could ask
for better reserves and faster NPA resolution, but those aren't huge
negatives to me. This next year may not be the best in terms of reported
results, but I believe Wells Fargo is well-placed for growth over the
next three to five years and attractively priced below $60.
Click here for more:
Wells Fargo Well-Positioned And Willing To Deploy Capital
No comments:
Post a Comment