Seeking Alpha: PNC Financial Doing Enough In A 'Good Enough Is Good Enough' Environment

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

Seeking Alpha: Going It Alone Could Be A Tough Road For Synovus Investors

If I'm brutally honest, following bank stocks on a week to week basis is a challenging (and not particularly exciting) pursuit. While we all got a vivid lesson in just how badly wrong these business models can go, even on a quarter to quarter basis we're pretty much talking about submarine races - there's a lot going on below the surface, but you'll never see it.

That is relevant to Synovus (SNV) as these shares have enjoyed quite a run - up 35% over the past year, about 66% from the summer 2012 lows, and near a 52-week high on optimism about the prospects for improved performance, a TARP repayment, and a possible acquisition. That long-held expectation of a deal could actually be the biggest risk factor for these shares today. While the company could indeed hold value for an acquirer, it's much harder to find an attractive target price on its own operating credentials and a failure to see a bid materialize after the TARP repayment could set shareholders up for some depressing performance.

Continue reading here:
Going It Alone Could Be A Tough Road For Synovus Investors

Investopedia: Can Wells Fargo Stay Ahead Of The Curve?

It is not news that Wells Fargo (NYSE:WFC) is among the best-run large banks in the country, nor that the company has a huge franchise in residential mortgages. While the company delivered relatively good results for the fourth quarter, near-term trends will be challenging for this bank. Wells Fargo still offers pretty appealing long-term potential, but investors should be prepared for some challenges in 2013.

Read more here:
http://www.investopedia.com/stock-analysis/2013/Can-Wells-Fargo-Stay-Ahead-Of-The-Curve-WFC-USB-FITB-C0115.aspx

Investopedia: First Republic Looks To Be A Very Different Kind Of Bank

Costs have become something of a grand obsession with commercial banks recently, as regulatory changes have cut off formerly lucrative revenue sources. First Republic (NYSE:FRC) is a different sort of bank, though. This bank focuses on growing its share of the lucrative high net worth (HNW) market, and it's using a "high-touch" model that has thus far generated solid high-quality growth.

Hunting the Elephants and Whales
Whereas other California banks like Wells Fargo (NYSE:WFC) and City National (NYSE:CYN) generally try to get as many depositors as they can with a minimum of expense, First Republic has targeted HNW individuals as its clientele. This has enabled the company to become the No.10 bank in California (by deposit share) and the No.26 bank in New York with only 56 deposit-taking branches in eight cities.

Please continue reading here:
http://www.investopedia.com/stock-analysis/2013/First-Republic-Looks-To-Be-A-Very-Different-Kind-Of-Bank-FRC-WFC-CYN-USB0111.aspx

Investopedia: Global Payments Looks Too Cheap Today

Merchant processing firms such as Global Payments (NYSE:GPN) run relatively simple businesses - a customer swipes a card at a store, Global Payments sees that the money goes where it needs to between the banks, and it takes its cut. While there's ample competition to sign up (and retain) merchants and data breaches are an ever-present threat, these can be very profitable businesses with good returns on capital. In the case of Global Payments in particular, this not only looks like a profitable, growing business, but it's also one with an undemanding valuation and good global growth prospects.

Click below to continue:
http://www.investopedia.com/stock-analysis/2013/Global-Payments-Looks-Too-Cheap-Today-GPN-HPY-WFC-TSS0110.aspx

Investopedia: A Look Back At The Year In Banking

There were at least a couple reasons why this should not have been an especially good year for banks in the United States. Low interest rates have made it very difficult for banks to thrive on their core spread businesses, and new banking regulations have certainly crimped their ability to generate the same fee-based income as before. And yet, lending has gradually improved and many banks have seen investors increasingly become willing to assign more reasonable valuations to their shares.

All in all, the regional banking industry has seen better than an approximate 30% appreciation this year, well ahead of the 13% gain in the S&P 500.

Continue reading here:
http://www.investopedia.com/stock-analysis/2012/A-Look-Back-At-The-Year-In-Banking-BAC-SNV-USB-WFC1227.aspx

Investopedia: Where Does A Bruised JPMorgan Go From Here?

Reputation is a delicate thing, and in less than one quarter JP Morgan (NYSE:JPM) has lost much of the luster it built during the credit crisis. While management has apparently acted quickly to mitigate the damage of a large bad trade, the slow pace of recovery in its core banking business makes it harder to take up the slack. Although investors can certainly find value in JP Morgan at current prices, risks remain from scandals like the LIBOR rigging and a potential worsening of credit conditions if the economy slows significantly

Please read the full article:
http://stocks.investopedia.com/stock-analysis/2012/Where-Does-A-Bruised-JP-Morgan-Go-From-Here-JPM-C-USB-COF0716.aspx

Seeking Alpha: U.S. Bancorp Leading The Pack On The Way Back

It was a testament to U.S. Bancorp's (USB) operating philosophy and disciplined underwriting strategy that the bank didn't make a lot garbage loans that came back to haunt it, nor did the bank hamstring itself like Wachovia or Bank of America (BAC) by paying premiums to acquire ticking time bombs. While some analysts and investors feared that new regulations governing fees would decimate what had been a real honeypot for U.S. Bancorp in years past, U.S. Bancorp earnings continue to show that while that operating environment changes, U.S. Bancorp remains a reliably well-run bank.

Please read the full article here:
U.S. Bancorp Leading The Pack On The Way Back

Seeking Alpha: JPMorgan - Big And Complicated, But Still Undervalued

Being the first major bank to report earnings has had its ups and downs for JPMorgan (JPM), and it's pretty clear that the market was not overly fond of this bank's over-complicated first quarter results. All of that said, underlying reported results were pretty solid and the bank remains undervalued on the basis of not especially challenging ROE performance in the coming years.

First Quarter Results - Complicated, But Not Bad
Sifting through all of the charges, gains, and items in a major bank's earnings report is a yeoman's task, and JPMorgan's first quarter was no exception. While the bank's results were pretty good relative to sell-side expectations, they weren't so strong on an absolute basis.

Read more here:
JPMorgan - Big And Complicated, But Still Undervalued

Investopedia: DBS Group - A Balanced Play On Asian Banking

It's too bad that more investors don't look to American Depositary Receipts as viable options to invest overseas, as many good companies are available with little sacrifice in volume or shareholder friendliness. One of the names well worth considering is Singapore's DBS Group (OTCBB:DBSDY.PK). While this bank does have some risks in its funding and its growing emerging market businesses, it has built a reputation over the years as a conservatively-run bank.

Looking To Go 40/30/30
Right now, Singapore is still a major component of DBS Group's earnings base (nearly 60%), with Greater China chipping in about 24% and countries in the Association of Southeast Asian Nations (ASEAN) another 10%. Although Singapore will likely always remain an important operating area, DBS management is hoping to move its earnings base to something closer to a 40/30/30 model - 40% from Singapore, 30% from Greater China and 30% from ASEAN.

Read more here:
http://stocks.investopedia.com/stock-analysis/2012/DBS-Group--A-Balanced-Play-On-Asian-Banking-DBSDY-HBC-C-USB0411.aspx

Seeking Alpha: Steady As She Goes At Portfolio Recovery Associates

When it comes to buying charged-off debts and then trying to collect them, surprises are seldom ever a good thing. So it's probably just as well that Portfolio Recovery Associates (PRAA) offered few surprises this quarter. This company is always going to be controversial - the accounting is confusing for those unaccustomed to it, the IRS is investigating the company's tax calculation policies, there's more regulation and oversight coming, and it's an inherently difficult thing to collect on debt.

All of that said, PRAA is one of the best at what it does and there's more than enough room for the company to continue growing.

To read the full piece, click here:
Steady As She Goes At Portfolio Recovery Associates

Investopedia: Bank Of America's Story Not About Lousy Earnings

Wall Street has never been an especially fair place, and that's certainly the case with banks these days. Said differently, analysts and institutional investors expect different things from different players - for gasping money center banks like Citigroup (NYSE:C) and Bank of America (NYSE:BAC) it's about survival and recovery; for super-regionals like U.S. Bancorp (NYSE:USB) and Wells Fargo (NYSE:WFC) it's more about growth and profitability in the new post-crash market.
(For related reading, see How To Decode A Company's Earnings Reports.)

Poor Operating Performance in the Fourth Quarter
Bank of America seemed to beat expectations on the basis of reported earnings, reporting 15 cents per diluted share versus a loss of 16 cents reported a year ago. Stripping out charges and gains, it looks like Bank of America more or less broke even this quarter (including a 7 cents reserve release). Admittedly, no two analysts or investors may agree completely on what's "core" and what's exceptional, but the reality is that operating performance was weak.


To read more, please click below:
http://stocks.investopedia.com/stock-analysis/2012/Bank-Of-Americas-Story-Not-About-Lousy-Earnings-BAC-C-USB-WFC-PNC0123.aspx

Seeking Alpha: A Strong Fourth Quarter May Change Perceptions On BB&T

Going into the credit crisis, BB&T (BBT) had the record and reputation of one of the best banks in the country. Through the credit crisis BB&T proved that its underwriting was sound and that it didn't need assistance to stay in business (and in fact was able to do a sizable FDIC-assisted deal). Post-crisis, though, it seems like a lot of banking analysts have collective amnesia and seem to think that BB&T isn't the bank that it used to be. Perhaps a solid end to 2011 and healthy guidance will start to move attitudes back.

Good Numbers To End The Year
There have been varying degrees of "clean" earnings from large banks like Wells Fargo (WFC), PNC (PNC), and U.S. Bancorp (USB) this reporting season, and BB&T comes in somewhere near the middle. Reported earnings of $0.55 were better than the average guess from analysts, and the adjusted earnings of $0.61 were even better. Those adjustments consist primarily of reversing out a $0.09 gain on securities and a $0.19 valuation adjustment on foreclosed real estate. BB&T's earnings included a reserve release of $0.11 - definitely large relative to the reported earnings.

Please follow this link for more:
A Strong Fourth Quarter May Change Perceptions On BB&T

Seeking Alpha: JPMorgan Earnings Disappointing, But Not Disastrous

If JPMorgan Chase's (JPM) fourth quarter earnings are a sign of things to come for other large banks, bulls on the largest financial stocks are going to have sit tight a while longer for real signs of progress. While the core lending and credit card businesses seem to be doing alright, the lucrative investing banking business was even weaker than expected, and JPMorgan is not yet posting especially high returns on its capital.

Readers should note that this article was written before the company's conference cal,l and is based upon the company's press release and earnings supplements.

A Miss On The Top
JPMorgan reported top-line results of $22.2 billion - missing the analysts' average guess by close to $1 billion. Although investment banking performance was expected to be bad, it was even worse in this quarter as fees and trading revenue both fell significantly. Although declines were broadly expected, investors will need to see earnings reports from rivals like Goldman Sachs (GS), Citigroup (C), Bank of America (BAC), and Morgan Stanley (MS) to get a real sense of how weak the market was, and how much (if any) share JPMorgan lost.

Please click here for more:
JPMorgan Earnings Disappointing, But Not Disastrous

Seeking Alpha: JPMorgan Chase Has Value But Little Momentum

There may be plenty of apparent values in the banking sector these days, but investors aren't biting. Take the case of JPMorgan Chase (NYSE: JPM) – most analysts seem happy enough to crown them as the best-run major bank in America, but that didn't keep the stock from losing about 20% of its value in 2011. At least part of the problem here is timing and the absence of any real near-term momentum. Although there are plenty of long-term factors in the bank's favor, the list of what could go wrong in the short term is a fair bit longer than the list of things that could go right.

Good Capital … Or Is It?

Unlike major rivals like Citigroup (NYSE: C) and Bank Of America (NYSE: BAC), JPMorgan has been lauded for how it managed its credit exposures through the crisis and recovery. In terms of metrics like Tier 1 capital, JPMorgan does look to be reasonably well off and credit losses have been improving apace.

Follow this link for more:
JPMorgan Chase Has Value But Little Momentum

Seeking Alpha: BB&T Gets Little Credit Where Credit Is Due

Although it never swirled the drain like many larger and better-known banks, and was aggressive in dealing with its sour loans, large regional bank BB&T (BBT) has to fight to get much respect from the analyst and institutional investor community. Given that the market seemingly believes that the prior decades of top-tier performance were a mirage, investors can still buy into a solid and growing banking franchise with relatively modest expectations built into the price.

Still Hungry For More
BB&T has seldom been shy about doing deals and little has changed in recent times. The company was able to acquire Colonial as a byproduct of the credit crisis and recently reached a deal with BankAtlantic to essentially buy that company's good assets without taking on the bad. This deal, coming at the cost of a 9% deposit premium) will vault BB&T from #14 in Miami to #6 and significantly enhance its Florida footprint – one of its few remaining market share weak points. Based on other recent deals (including PNC's (PNC) deal for Royal Bank of Canada's (RY) U.S. assets and the Comerica (CMA)-Sterling deal), BBT paid a fair price, particularly given the much-reduced credit risks.

Please follow this link for more:
BB&T Gets Little Credit Where Credit Is Due

Investopedia: Bank Of America Is A Mess Unlike Any Other

Maybe the best thing that can be said about the U.S. banking industry is that it's in better shape than its European cousin. That's faint praise indeed, and Bank Of America (NYSE:BAC) continues to stand out as an especially challenged major U.S. bank. While there is undeniable value in this large banking franchise, it seems like every quarter pushes out the timeline for realizing that value. 

Q3 Earnings are Whatever You Want Them to Be  
Bank earnings are never the easiest to analyze or interpret in good times, and bad times only make it worse. Investors have to countermand all manner of special charges and benefits, and B of A had more than a dozen of them this time around. Making matters worse, no two analysts or investors are going to see exactly eye-to-eye on what constitutes the "real" earnings power.

Read more here:
http://stocks.investopedia.com/stock-analysis/2011/Bank-Of-America-Is-A-Mess-Unlike-Any-Other-BAC-WFC-USB-C-GS-BRK.A-FCNCA1022.aspx

Investopedia: Citigroup On The Mend ... Slowly

It's just a fact of life that it's easier and faster to destroy than it is to rebuild. To that end, Citigroup (NYSE:C) has certainly been a frustrating stock to hold this year as the stock had been nearly cut in half before a recent rally. While this huge bank's third quarter earnings continue to point to progress, the reality is that Citigroup is still a long way from normal, and shareholders have to be content with more short-term disappointment if they want to see the long-term value play out.

Decent Third Quarter Results  
Although analysts had been marking down their expectations, going into this quarter, Citi didn't do too badly. Adjusted core revenue fell 2% on a sequential basis, as modest growth in regional consumer banking (2%) and decent growth in transaction services (7%) was offset by declines in securities and banking 12%. For whatever reason, it helps shareholders, this performance is likely to be the rule for other large banks like Bank of America (NYSE:BAC) (BofA) as well. 

To read more, click below: 
http://stocks.investopedia.com/stock-analysis/2011/Citigroup-On-The-Mend--Slowly-C-BAC-USB-WFC-SHG-BSBR-BAP1020.aspx

Investopedia: Is The U.S. Going To Goose BMO's Growth?

Sometimes one person's disaster is another's opportunity. Bank of Montreal (NYSE:BMO), one of Canada's "Big Six", had best hope that proves true in regards to its U.S. expansion efforts. While the CEOs of major U.S. banks like U.S. Bancorp (NYSE:USB), Wells Fargo (NYSE:WFC) and Bank of America (NYSE:BAC) hunker down and talk about a sluggish multi-year recovery, several Canadian banks are looking at expansion into the U.S. as a cornerstone of their growth strategies.

A Solid Third Quarter  
Whenever there are worries about macro-level growth, bank investors get nervous. Bank of Montreal's fiscal third quarter results may add a little calm to the sector, though, as they were a bit better than analysts expected.

 

Read more via the link below: 

http://stocks.investopedia.com/stock-analysis/2011/Is-The-U.S.-Going-To-Goose-BMOs-Growth-BMO-RBC-PNC-HBC-USB0824.aspx

Investopedia: Citi Still Healing

The best thing that might be said about Citigroup's (NYSE:C) second quarter is that expectations for large banks had turned so sour going into July that it did not take much for this still-struggling bank to produce a little relief with its results. The problem with Citi is the same as it has been for a while - the bank is going to need time to heal. That means near-term momentum will be lacking, but the long-term prospects suggest there is some value here. 

A Morass of Numbers for Q2  
It would be easy to write at great length about the various parts of Citi and how they performed this quarter. In lieu of that, here is a quick summary of some of the most salient takeaways. First, while total company revenue was up 5% sequentially (and down 7% from last year), the parts of the business that management intends to keep saw revenue fall 1% on both a sequential and annual comparison. 


To read the full article, please click below:
http://stocks.investopedia.com/stock-analysis/2011/Citi-Still-Healing-C-BAC-WFC-USB-ITAU-BAP-ZION0718.aspx