State Street Is Worth Keeping An Eye On
Mar. 31, 2015, 12:44 PM
- Ron O'Hanley was chief of Fidelity's asset management business until retiring in February 2014, about 18 months after Abigail Johnson was tapped as the successor to her father to lead all of Fidelity.
- He'll succeed Scott Powers, who is retiring later in 2015 as head of State Street Global Advisors (NYSE:STT) after seven years in charge.
Mar. 11, 2015, 5:12 PM
- State Street (NYSE:STT) declares $0.34/share quarterly dividend, 13.3% increase from prior dividend of $0.30.
- Forward yield 1.88%
- Additionally, the board declares to repurchase up to $1.8B of common stock.
Mar. 7, 2015, 8:29 AM
- "In many ways, we're going back to our roots," says Gerald Hassell, CEO since 2011, "looking at every single dollar that's spent, making sure it's spent wisely." It appears to be working. BNY Mellon (NYSE:BK) achieved that rarest of banking feats in Q4, with noninterest expenses down 5% year-over-year even as revenue edged higher, and expenses at 74% of revenue are now inline with peers State Street (NYSE:STT) and Northern Trust (NASDAQ:NTRS).
- Naturally, this hasn't gone unnoticed by investors, which have bid up the shares 60% since Barron's took a bullish peek two years ago vs. a 50% gain for the broad market. There's more room to run, writes Jack Willoughby, noting BNY Mellon sells for just 1.2x book value vs. 1.6x for State Street and 2x for Northern Trust.
- Catalysts include the benefit of rising rates, which - after years of threats to do so - finally appears to be certain to happen in 2015. ZIRP has forced the bank to cut fees for institutional clients, and has also slimmed lending and investment margins, which account for 20% of revenue. There's also the chance of a higher dividend thanks to the bank's cruise through this year's stress test.
- And if management somehow loses focus, there's Nelson Peltz's Trian Fund - an owner of a 2.5% stake in the bank - looking over its shoulder.
Mar. 6, 2015, 7:46 AM
- State Street (NYSE:STT) easily passed the stress test, but its Tier 1 common capital ratio under the Fed's severely adverse scenario fell to 11.8% vs. 13.3% last year, maybe hitting hopes for a more sizable increase in the buyback and dividend this year. CCAR results are due on Wednesday.
- KBW downgrades to Market Perform from Outperform with price target cut to $79 from $84, and JPMorgan cuts to Underweight from Neutral.
- Shares -1.4% premarket
Mar. 5, 2015, 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
Feb. 26, 2015, 8:37 AM
- Adjusting based on the flatter yield curve, Credit Suisse analyst A. Serrao cuts 2015-2018 EPS estimates to $5.13, $5.65, $6.19 and $6.84 from $5.14, $5.89, $6.35, and $6.91, and downgrades State Street (NYSE:STT) to Neutral from Outperform.
- Ctiigroup downgrades to Neutral from Buy.
- Shares -1.7% premarket
Feb. 24, 2015, 12:50 PM
- The SPDR DoubleLine Total Return Tactical ETF (NYSEARCA:TOTL) rolled out today by State Street (NYSE:STT) will invest in a broad portfolio of debt securities.
- As an active ETF the fund will be managed by veteran fixed income investor, Jeff Gundlach, his team at DoubleLine Capital and State Street Global Advisors.
- "DoubleLine obviously brings a history and proven track record of delivering superior risk-adjusted returns,” says James Ross, executive vice president and global head of SPDR ETFs at State Street Global Advisors.
- Other total market fixed income ETFs: AGG, BND, BOND, SCHZ, LAG, SAGG, GBF, RIGS, DI, FBND, LDUR, FWDB, IUSB, VBND
Feb. 19, 2015, 4:39 PM
- State Street (NYSE:STT) declares $0.30/share quarterly dividend, in line with previous.
- Forward yield 1.57%
- Payable April 16; for shareholders of record April 1; ex-div March 30.
Feb. 6, 2015, 9:50 AM
- Financials have been mercilessly pounded in 2015 as hopes for higher interest rates looked like they might be dashed yet again, but today's blowout jobs number - firmly putting a June rate hike on the table - has brought in the dip-buyers.
- The major averages are flat, but the XLF is up 1.4%. The Regional Bank ETF (KRE +2%) and the Bank ETF (KBE +2.1%) are doing even better.
- Among the yield-starved banking names: Bank of America (BAC +3.1%), JPMorgan (JPM +2.6%), Citigroup (C +2%), Regions Financial (RF +4%), KeyCorp (KEY +3%), PNC Financial (PNC +2.9%), SunTrust (STI +2.3%), Zions (ZION +3.6%), Synovus (SNV +2.3%).
- Insurers: MetLife (MET +2%), Prudential (PRU +3.2%), Lincoln National (LNC +4.6%). AIG (AIG +1.5%).
- Trust banks: BNY Mellon (BK +2.7%) State Street (STT +1.9%), Northern Trust (NTRS +2.3%).
- Online brokers (currently getting killed on money-market fee rebates): Schwab (SCHW +4.5%), TD Ameritrade (AMTD +3.5%), E*Trade (ETFC +2.1%).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, FINZ, KRS
Feb. 3, 2015, 12:35 PM
- Among those cut is the SPDR Barclays Capital Aggregate Bond (NYSEARCA:LAG), which now charges 0.1% per year, down from 0.21%, and making it more competitive with AGG and BND.
- SSgA's (NYSE:STT) ten international ETFs - a group including IPD, IPW, and IPK - now have annual fees of 0.4% vs. 0.5% previously. The emerging markets ETFs' - including EDIV and GML - new expense ratios are 0.49%, down from 0.50-0.59% previously.
- Some of the fee reductions are more dramatic: The SPDR 1500 Value Tilt ETF (NYSEARCA:VLU) and the SPDR S&P 1500 Momentum Tilt ETF (NYSEARCA:MMTM) are cut to 0.12% from 0.35%, and the SPDR Russell 2000 Low Volatility ETF (NYSEARCA:SMLV) is cut to 0.12% from 0.25%.
- Others with cuts: ITE, SST, TLO, ITR, LGLV, LWC, SCPB, IPE, MOYG, MOYV, SLY, SLYG, SLYV, SPYG, SPVV, JPP, JSC, MTK, GWX, IPF, IPN, PS, IPU, IRV, IRY, IST, BIK, EEMB, GAF, GMF, GML, GUR, IBND.
Jan. 23, 2015, 11:56 AM
- Already the number one mutual fund company in the world, Vanguard has moved into the number two spot in ETFs, displacing State Street (NYSE:STT), but still well behind #1 BlackRock (NYSE:BLK).
- BlackRock's ETFs (iShares) have $756B in AUM, Vanguard $433B, and State Street $431.8B. It's the Big 3's world, as AUM at firm #4 - Invesco PowerShares - fall all the way to $94.7B.
- State Street's SSgA unit isn't going away, writes ETF.com's Olivier Ludwig, and may yet retake the #2 spot, with interest still high in giant funds like SPY and GLD, and the company's leading-edge focus on active and factor-focused ETFs.
Jan. 23, 2015, 5:57 AM
- State Street (NYSE:STT): Q4 EPS of $1.37 beats by $0.11.
- Revenue of $2.73B (+7.9% Y/Y) beats by $60M.
Jan. 22, 2015, 5:30 PM
Dec. 30, 2014, 9:53 AM
- Among State Street's (STT -1.1%) plusses, says KBW's Brian Kleinhanzi, is an attractive valuation vs. peers, and that the company stands - thanks to its ETF business - to benefit from the secular shift to passive investing.
- Add to the mix the growth in alternative assets globally, and State Street's leading market-share position in that segment, says Kleinhanzi, reiterating an Outperform rating and $88 price target.
Dec. 18, 2014, 1:11 PM
- Through November ETFs have taken in $192B vs. $188B for all of 2013, according to ETF.com. BlackRock's (NYSE:BLK) iShares and Vanguard account for $7 out of every $10 of inflows this year, says InvestmentNews, and BlackRock says it brought in $89.7B globally, $71.4B in the U.S.
- Vanguard places flows at $75B globally, $63.5B in the U.S., putting it in position to overtake State Street (NYSE:STT) in the #2 spot in ETF business.
- ETF.com's Dave Nadig calls it a "victory of Vanilla" story, noting that for all of the low-vol, currency hedging, and smart beta strategies, core product offerings with broad exposure to stock and bond markets continue to dominate inflows.
Dec. 17, 2014, 8:21 AM
- Age 57, Rogers joined State Street (NYSE:STT) in 2007 following its acquisition of Investors Financial, where he'd been president for six years. He's held a number of leadership positions at State Street since.
State Street Corp. operates as a financial holding company. The company conducts its business primarily through State Street Bank. The company operates in two lines of business: Investment Servicing and Investment Management. The Investment Servicing line of business performs core custody and... More
Industry: Money Center Banks
Country: United States
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