Seeking Alpha

Wells Fargo disappointment good news for select regionals, Nomura says

  • Wells Fargo’s (WFC -0.7%) disappointing Q2 results could be good news for PNC Financial Services (PNC +0.4%), Fifth Third (FITB +1%), KeyCorp (KEY +0.1%) and Comerica (CMA +0.5%), according to Nomura analysts.
  • The strength in WFC’s commercial loan portfolio - total core loan growth came in at 6.9% Y/Y, up from 5.6% last quarter - bodes well for other regional banks, given high C&I growth correlations (~80% or higher); total loan growth correlations also exceed 90% for PNC, FITB, KEY and CMA.
  • The firm notes that the R-squared between earning asset growth and net interest income growth is 98% for regional banks, suggesting that stronger loan growth will lead to positive EPS revisions.
Comments (4)
  • AZWhiteMt
    , contributor
    Comments (44) | Send Message
     
    11 July 014

     

    I am having a real problem why WFC coming is at expectation and they are shot down, for not doing a better job-Why?

     

    Also in another email you talked about various financial ratios for companies and site one that Warren Buffy prefers RoungA or RoungT how do you get this information on a stock and why is it any better then EPS, PE....Thanks
    11 Jul 2014, 05:42 PM Reply Like
  • vikramnjnjjdjnd
    , contributor
    Comments (1039) | Send Message
     
    Long wfc ....
    12 Jul 2014, 12:39 AM Reply Like
  • alas
    , contributor
    Comments (4) | Send Message
     
    Long FITB. Actually pretty pleased with them. Small position with CITI as long term value bet. Agree financials are going to be hampered by low interest rate.
    12 Jul 2014, 09:44 AM Reply Like
  • vikramnjnjjdjnd
    , contributor
    Comments (1039) | Send Message
     
    Wfc will not be hampered. This bank keeps surprising. Great management continues to impress. This is the stock you want in your portfolio. Third most bought stock by fidelity customers Friday. Don't ask me ask the legendary warren buffett.
    13 Jul 2014, 12:43 PM Reply Like
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