Thu, Mar. 12, 12:47 PM
- Citigroup's (C +2.7%) $7.8B in buybacks was 10% higher than estimated by MKM analyst David Trone. Combined with the nickel dividend, that's total shareholder returns of $8.4B vs. his $7B expectation.
- Bank of America (BAC -1%) - though given just conditional approval - is set for $4B in buybacks and a nickel dividend. That's a total return of $6.1B vs. Trone's $3.1B estimate. Trone notes the bank can proceed with its buyback prior to resubmitting plans.
- JPMorgan's (JPM +1%) $6.4B buyback was shy of Trone's $7B estimate, but the 10% dividend increase was better than forecast. The total capital return of $12.9B vs. his $13.2B forecast is a "marginal negative."
- The dividend hike to $0.65 at Goldman (GS +2.1%) beat Trone's expectation of $0.62. As for the buyback, Goldman's policy of not disclosing the amount remains in place.
- Morgan Stanley's (MS +4.5%) capital return of $4.3B is more than double Trone's $1.9B estimate.
- Source: Benzinga
Thu, Mar. 12, 8:07 AM
- Citi's (NYSE:C) quarterly dividend of $0.05 and $7.8B in buybacks were somewhat better than expected, and Regions Financial's (NYSE:RF) buybacks of $875M was higher than the $625M estimate (Regions also boosted its dividend by 20%).
- KeyCorp (NYSE:KEY), Morgan Stanley (NYSE:MS), and SunTrust (NYSE:STI) were also winners after announcing larger-than-forecast buybacks.
- Bank of America (NYSE:BAC) is a "slight disappointment," but some investors had feared an outright rejection of the capital plan, so maybe the resubmission request isn't the worst outcome.
- Previously: Corbat likely keeping his job as Citi cruises through CCAR (March 11)
- Previously: Regions Financial boosts payout by 20% after CCAR approval (March 11)
- Previously: KeyCorp declares $0.075 dividend (March 11)
- Previously: Morgan Stanley intends to declare $0.15 dividend (March 11)
- Previously: SunTrust Banks declares $0.24 dividend (March 11)
- C +3.4%, RF +3.8%, KEY +1.7%, MS +2.7%, STI +2.1%, BAC +0.6% premarket
Wed, Mar. 11, 5:36 PM
Wed, Mar. 11, 4:44 PM
Wed, Mar. 11, 4:44 PM
- Goldman's Sachs' (NYSE:GS) first score of 5.8% was only marginally ahead of the 5% threshold, but the resubmitted capital plan came in at 6.4%
- Morgan Stanley (NYSE:MS) was 5.9% on both tests, so one wonders what changed. The company has announced a $3.1B buyback through the end of 2016 Q2 as well as a boost in the quarterly dividend to $0.15 per share from $0.10.
- JPMorgan (NYSE:JPM) lifted its score from a barely scraping by 5% to 5.5%.
- There's no word yet on the details of Goldman's or JPMorgan's plans.
- GS +0.9%, MS +1.8%, JPM +0.1% after hours.
- Previously: BofA must resubmit capital plan; Deutsche and Santander rejected (March 11)
- CCAR results
Tue, Mar. 10, 8:04 PM
- Spanish-language megabroadcaster Univision has tapped Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS) and Deutsche Bank (NYSE:DB) to lead its initial public offering, Reuters reports.
- Univision is currently owned by Univision Communications (owned by private-equity partners), and an IPO that could come in the second half could bring $1B and value the company at as much as $20B.
- The broadcaster was previously rumored to be a takeover target for the likes of CBS and Time Warner.
Fri, Mar. 6, 11:45 AM
- As rumored at the start of the year, Morgan Stanley's (MS +0.8%) infrastructure unit has agreed to the sale of the Montreal Gateway Terminals to a group led by Fiera Axium. Terms were not disclosed, but a figure in the area of $600M had been previously reported as a possibility.
- Morgan Stanley initially acquired an 80% interest in the facility in 2007, and secured 100% at the end of 2013.
- Source: Press Release
- Previously: Report: Morgan Stanley agrees to sale of Montreal port terminals (Jan. 5)
Thu, Mar. 5, 8:28 PM
- The minimum Tier 1 common capital ratio for banks is 5%, according to the Fed, and here's how the 31 lenders stacked up under the central bank's severely adverse scenario vs. a year ago (h/t: WSJ):
- Deutshce Bank (NYSE:DB): 34.7%, not tested a year ago
- DIscover (NYSE:DFS): 13.9% vs. 13.2% a year ago
- Bank of New York Mellon (NYSE:BK): 12.6% vs. 13.1%
- American Express (NYSE:AXP): 12.5% vs. 12.1%
- Northern Trust (NASDAQ:NTRS): 12.3% vs. 11.7%
- State Street (NYSE:STT): 11.8% vs. 13.3%
- Citizens Financial (NYSE:CFG): 10.7% vs. 10.7%
- KeyCorp (NYSE:KEY): 9.9% vs. 9.2%
- Capital One (NYSE:COF): 9.5% vs. 7.8%
- PNC Financial (NYSE:PNC): 9.5% vs. 9%
- Santander Holdings USA (SAN's U.S. unit): 9.4% vs. 7.3%; shares +0.8% after hours
- BMO Financial (BMO's U.S. unit): 9% vs. 7.6%
- Comerica (NYSE:CMA): 9% vs. 8.6%
- Huntington Bancshares (NASDAQ:HBAN): 9% vs. 7.4%
- HSBC North America (NYSE:HSBC): 8.9% vs. 6.6%
- U.S. Bancorp (NYSE:USB): 8.5% vs. 8.2%
- Regions Financial (NYSE:RF): 8.3% vs. 8.9%
- Citigroup (NYSE:C): 8.2% vs. 7.2%
- SunTrust (NYSE:STI): 8.2% vs. 8.8%
- BB&T (NYSE:BBT): 8.1% vs. 8.4%
- MUFG Americas Holdings (NYSE:MTU): 8% vs. 8.1%
- Ally Financial (NYSE:ALLY): 7.9% vs. 6.3%
- Fifth Third Bancorp (NASDAQ:FITB): 7.9% vs. 8.4%
- Wells Fargo (NYSE:WFC): 7.5% vs. 8.2%
- M&T Bank (NYSE:MTB): 7.3% vs. 6.2%
- Bank of America (NYSE:BAC): 7.1% vs. 5.9%; shares +2.1% after hours
- JPMorgan (NYSE:JPM): 6.5% vs. 6.3%
- BBVA Compass (NYSE:BBVA): 6.3% vs. 8.5%
- Goldman Sachs (NYSE:GS): 6.3% vs. 6.9%
- Morgan Stanley (NYSE:MS): 6.2% vs. 6.1%
- Zions Bancorp (NASDAQ:ZION): 5.1% vs. 3.6%; shares -1.7% after hours
- The lenders were also informed today whether their capital return plans would put them below the Fed's 5% threshold, giving them a 6-day window with which to change those requests, if need be. Last year, both BofA and Goldman scaled back their dividend/buyback requests, allowing them to pass the CCAR. This year's CCAR results will be announced on Wednesday.
- 2015 Stress Test Methodology and Results
Thu, Mar. 5, 5:24 PM
- 2015 stands as the first year since the stress tests started in 2009 that all banks maintained necessary capital levels under the severe adverse scenario, though Zions Bancorp (NASDAQ:ZION) just squeaked by with a Tier 1 capital ratio of 5.1% vs. the 5% minimum. Citigroup's (NYSE:C) ratio of 8.2% easily passed.
- Another measure more relevant to those banks active in capital markets is total risk-based capital, and Goldman Sachs(NYSE:GS) at 8.1% and Morgan Stanley (NYSE:MS) at 8.6% were just north of the minimum 8% required.
- In aggregate, the 31 banks subject to the test showed capital ratios falling to 8.2% under the severe adverse scenario vs. 5.5% in 2009, and against the 5% minimum allowed.
- Previously: All 31 lenders pass the stress test (March 5)
- Stress Test 2015 Methodology and Results
- ZION -0.6%, GS -0.7%, MS -0.9%, C -0.55% after hours.
Mon, Mar. 2, 11:17 AM
- Last week, Morgan Stanely (MS +1.1%) cut a deal for $2.6B to settle a federal probe into pre-crisis mortgage activities, but the bank - in its 10-K - disclosed the New York Attorney General has informed it of a potential lawsuit relating to roughly 30 subprime MBS deals.
- Morgan has set aside $2.8B for legal costs from still-unresolved cases, Other potential suits could come from California, Virginia, and Illinois.
- Previously: Morgan Stanley removes overhang with mortgage settlement (Feb. 26)
Thu, Feb. 26, 1:33 PM
- "Most of the major legacy legal issues are now in the rearview mirror for Morgan Stanley (MS -1.2%)," says UBS analyst Brennan Hawken, following the bank's $2.6B mortgage settlement with the DOJ last night.
- He notes the bank isn't a rate-setter for Libor and its forex business is minor, so fines related to those probes should be small relative to what some peers are facing.
- The only major U.S. firm left to settle over mortgages is Goldman Sachs (GS -0.1%), and while the timing is unknown, it's probable Goldman's fine will be similar in magnitude to Morgan Stanley rather than the far larger penalties dealt to the money center banks.
- Previously: Morgan Stanley to settle DoJ civil probe for $2.6B (Feb. 25)
Wed, Feb. 25, 5:55 PM
- Morgan Stanley (NYSE:MS) discloses it reached a $2.6B settlement with the U.S. Justice Department and the U.S. Attorney's Office for the Northern District of California stemming from the sale of mortgage bonds.
- MS says it raised its legal reserves by ~$2.8B and accounted for the costs in the 2014 results of its securities business, which in turn cut its 2014 income from continuing operations by $2.7B, or $1.35/share.
Tue, Feb. 24, 3:43 PM
- Morgan Stanley’s (NYSE:MS) infrastructure arm has begun seeking bids for natural gas pipeline operator Southern Star Central, Bloomberg reports.
- MS reportedly has sent offering documents to potential bidders including Tallgrass Energy Partners (NYSE:TEP) and TransCanada (NYSE:TRP), and is said to be soliciting bids from operators of gas pipelines including Williams Cos. (WMB, WPZ), Spectra Energy (NYSE:SE) and Boardwalk Pipeline Partners (NYSE:BWP), as well as other infrastructure investors such as Macquarie (NYSE:MIC).
- Southern Star operates 6K miles of natural gas pipelines in the midwestern U.S., and is valued at as much as $1.5B.
Fri, Feb. 20, 4:48 AM
- Squeezed by new capital and risk rules and tough markets, Wall Street is taking the ax to its workforce, a report by London research firm Coalition shows.
- The number of investment bankers, traders, salespeople and research analysts at the world’s largest banks has fallen 20% globally since its recent peak in 2010.
- While job cuts on the front end have become standard, firms have been increasing their back-office hiring to beef up controls in areas ranging from compliance to risk.
- Related tickers: BAC, BCS, OTCQX:BNPQY, C, CS, DB, GS, JPM, MS, UBS
Wed, Feb. 18, 7:44 AM
- Morgan Stanley (NYSE:MS) Real Estate Investing has appointed advisors to assist in the exit its holding in Investa Property Group, Australia's third-largest owner of downtown offices.
- Funds managed by the unit purchased the company in 2007 in a deal valued at A$6.6B - at the time, the deal was the largest overseas acquisition of Australian real estate. The properties today are valued at A$8.9B.
Tue, Feb. 10, 11:51 AM
- Among the upside catalysts for Citigroup (C +0.4%) - says Deutshce in its upgrade of the stock to Buy from Hold - will be the approval of $4B in share repurchases in this spring's CCAR.
- Citi's plans to buy back stock and boost the dividend have been rejected by the Fed twice in the last three years, and CEO Michael Corbat has staked his job on approval this year.
- Another catalyst, says Deutsche, will be the sale or IPO of OneMain Financial.
- Turning back to the CCAR, Detusche expects the largest increases in capital returns to be at Citi, Bank of America (BAC +0.6%), Regions Financial (RF +0.3%), Morgan Stanley (MS +1.1%), SunTrust (STI +0.1%), and Citizens Financial (CFG +1.9%). Total payout ratios at the larger regional lenders should be 79% this year, up 1000 basis points from 2014.
- Previously: Bank pair trade from Deutsche (Feb. 10)
- Presenting at the Credit Suisse conference, CEO of U.S. Consumer & Commerical Banking and Citi Mortgage Jane Fraser touts the banks laser focus for retail on this country's largest 7 markets.
- Presentation slides
- Previously: Citi looks to boost mortgage business with Zillow tie-up (Feb. 10)
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