Banks Should See $5.4 Billion from Visa IPO

U.S. banks involved in the IPO of Visa Inc. (V) should see a pre-tax benefit of $5.4-billion in the first quarter, thanks in part a cost basis of virtually nothing from the estimated 50% sale of their stakes in the credit card giant, Citigroup analyst Keith Horowitz said in a report.

National City Corp.(NCC), First Horizon National Corp. (FNH), Fifth Third Bancorp (FITB) and Synovus Financial Corp. (SNV) are expected to see the biggest benefit in their Tier 1 capital, which measures a bank’s capital adequacy, of approximately 15 to 30 basis points.

Comments

[Robert DiAl...:]

This is good for the stock market. Good for the banks. Good for investors who got Visa at the right price.

2008 Mar 21 07:14 AM