Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Weak Core Results At BB&T Driven By Expenses

For a bank often lauded for its conservative, margin/profit-focused management, a meaningful expense miss was not how most investors expected BB&T (NYSE:BBT) might miss the quarter. But miss BB&T did, and although loan growth was okay and credit quality remains good, BB&T may have to work a little harder to rebuild the positive sentiment that had built around the stock. The shares remain undervalued on the basis of 12%-plus ROEs in 2018 and look like one of the better bargains in the larger bank group, but that bargain valuation comes at the cost of added uncertainty.

Weak Core Results With Higher Expenses

BB&T reported a core revenue decline of 5% yoy and growth of 2% qoq for the...

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