Fri, Feb. 6, 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
Mon, Jan. 26, 4:26 PM
- Q4 net interest income of $430M vs. $417M in Q3, with net interest margin of 3.25% up five basis points.
- Noninterest income of $129M vs. $116M in Q3. Noninterest expense of $412M vs. $439M.
- Commenting extensively on its energy-related exposure, the bank says it has about $3.2B in primarily oil and gas energy-related loan balances, representing 7.9% of the total loan portfolio. As of year-end, $17M, or 0.5% of the loans were nonperforming.
- Noting the especially fast decline in oil prices, the bank says it's difficult to see any measurable changes to the financial conditions of its borrowers, but did make some changes which resulted in an increase of credit loss reserves of $25M. The bank also expects to be down-sizing the credit lines of some of its oil & gas-related borrowers.
- Conference call at 5:30 ET
- ZION -2.5% after hours
Dec. 5, 2014, 10:06 AM
- Among those counting on higher interest rates to boost profits are banks, insurers, and online brokers, and all are outliers to the upside in today's session after a strong November jobs report has rate hike expectations on the rise. The XLF is up 1%.
- TBTFs: Bank of America (BAC +2.1%), Citigroup (C +1.8%), JPMorgan (JPM +2.2%), Wells Fargo (WFC +1.2%)
- Regionals (KRE +1.9%): Regions Financial (RF +2.6%), KeyCorp (KEY +2.3%), Huntington (HBAN +1.5%), BB&T (BBT +1.6%), Zions (ZION +4%)
- Custodials: BNY Mellon (BNY), State Street (STT +1.6%), Northern Trust (NTRS +1.8%)
- Life insurers: MetLife (MET +2.1%), Prudential (PRU +2.5%), Lincoln National (LNC +2.3%)
- Online brokers: Schwab (SCHW +3.8%), E*Trade (ETFC +3%), Ameritrade (AMTD +2.7%)
- Previously: Short end of yield curve on the move after jobs number (Dec. 5, 2014)
- Previously: Bonds and dollar higher, gold slumps after strong jobs report (Dec. 5, 2014)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, FINZ, KRS
Oct. 9, 2014, 5:36 PM
Sep. 19, 2014, 9:11 AM
- The team doubles down on Outperform ratings on Zions Bancorp (NASDAQ:ZION) and Synovus Financial (NYSE:SNV), upgrading both to Strong Buy. ZION is up 1.3% premarket.
- Texas Capital Bancshares (NASDAQ:TCBI) gets a two-notch upgrade - from Market Perform to Strong Buy - and First Horizon National (NYSE:FHN) is boosted to Outperform from Market Perform.
- The team partially cashes in its chips on United Community Bank, downgrading to Outperform from Strong Buy. Iberiabank (NASDAQ:IBKC) is cut to Market Perform from Outperform.
- Cut to Underperform from Market Perform is First Financial Bankshares (NASDAQ:FFIN).
Jul. 28, 2014, 12:41 PM
- With Zions Bancorp (ZION -2.4%) forced into a capital raise by the Fed, disappointed shareholders can still be thankful the offering priced for above tangible book, with the bank selling $525M worth of stock at $29.80 each.
- Tangible book value as of June 30 was reported at $25.13 (book value was $30.17).
- Source: Press Release
- Previously: Zions to raise capital; Fed approves
Mar. 26, 2014, 4:04 PM
- The Fed approves 25 out of 30 capital return plans from the nation's largest lenders, but rejects those from Citigroup (C), RBS Citizens, HSBC North America, Santander Holdings (SAN), and, of course, Zions Bancorp (ZION).
- Press release
- Citi -3.3%, RBS -0.2%, HSBC -1.4%, Santander -1.5%, Zions -1.3% in after-hours trade.
Mar. 20, 2014, 4:06 PM| 6 Comments
Nov. 8, 2013, 10:41 AM
- Up sharply as interest rates fly higher (the 10-year is up 15 basis points to 2.75%) are the life insurers - all of whom have had their investment returns more than a little constrained by puny yields. IAK +2.4%
- MetLife (MET +5.9%), Prudential (PRU +4.5%), Lincoln National (LNC +6.8%), Hartford (HIG +3.1%).
- Also set to benefit from a steeper yield curve (if we're to believe their models) are the banks, and they're leading the S&P 500 higher. The TBTFs: Bank of America (BAC +3.3%), JPMorgan (JPM +3.1%), CItigroup (C +3.3%), Wells Fargo (WFC +2.6%). The regionals (KRE +3.4%): Huntington (HBAN +2.6%), Regions (RF +4.2%), PNC (PNC +2.8%), FIfth Third (FITB +3.4%), First Niagara (FNFG +2%), Keycorp (KEY +3.5%), Zions (ZION +4.1%), Comerica (CMA +3.1%).
- The XLF +1.9%.
- FInancial sector ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, KIE, SEF, IAT, IAI, IYG, IAK, FXO, PFI, KBWB, RKH, QABA, RWW, FINU, RYF, KRU, KBWR, PSCF, KBWP, KBWI, KRS, FINZ, FNCL
Oct. 22, 2013, 10:21 AM
- Net interest income of $416M fell 3.5% from last quarter with net interest margin falling a whopping 22 basis points. The company, however, quickly points out much of the NIM decline was due to a (previously-discussed) one-time boost in Q2.
- Noninterest income of $122M fell 2.4% from Q2 thanks to lower mortgage refinancing volumes.
- Another contributor to sliding NIM is deposits growing (up 1% Q/Q to $45.6B), but management finding it difficult to put the money to work. Asked on the earnings call (transcript) by FBR's Paul Miller whether it might be prudent to drive some deposits out, CEO Harris Simmons responds it would be akin to driving customers out - not something the bank wants to do. "So here it sits. And we, in turn, park it, give it back to the Fed, I guess, so they can buy more bonds. And wash, rinse, repeat. But I don't have a good answer for you. It's something we just continue to struggle with, and we haven't found the magic key."
- Citi's Josh Levin (not a participant on the call) removes his Buy rating on the stock.
- ZION -6.9%.
- Previous: Q3 results.
Jul. 5, 2013, 12:51 PMRegional banks (KRE +2%) are the day's strongest performers - sailing through today's big rise in interest rates the way they cruised through June's increase. Interest rate margins are on the rise, economic growth should help sluggish loan volume, and the idea new bank capital rules will go easier on them than the TBTFs all factor in. Huntington (HBAN +2.9%), Regions (RF +1.8%), BB&T (BBT +1.9%), PNC (PNC +2.2%), Hudson City (HCBK +1.5%), Fifth Third (FITB +1.6%), SunTrust (STI +3.5%), KeyCorp (KEY +3%), Zions (ZION +3.5%), Comerica (CMA +2.7%), Popular (BPOP +1.2%). | Comment!
Jun. 20, 2013, 12:36 PMMostly in the green along with the life insurers today is much of the regional banking sector (KRE +0.5%) as a steeper yield curve is sure to boost their barely visible net interest margins. U.S. Bancorp (USB +0.1%), Huntington (HBAN +2.2%), New York Community (NYCB -0.1%), Regions (RF +0.7%), BB&T (BBT +1.2%), PNC (PNC +0.7%), SunTrust (STI +0.7%), KeyCorp (KEY +1.5%), People's Untied (PBCT +1.3%), Zions (ZION +1.9%), Comerica (CMA +1%). | Comment!
Nov. 27, 2012, 10:18 AMZions Bancorp (ZION -2.6%) slides after the release of presentation materials for an investor conference later today. Sandler O'Neill - though noting guidance was as expected - plugs the numbers into its model and comes out with a lower Q4 earnings estimate. Of note: Zions expects Q4 net interest income 2-3% lower than Q3 as old loans reset to newer rates. | Comment!
Jun. 4, 2012, 3:49 PMFBR downgrades seven regional banking lenders, pointing to the dismal outlook for interest rates and a "lack of material positive catalysts." Huntington Bancshares (HBAN -4.3%) and Boston Private Financial (BPFH -9.3%) are reduced to Underperform; ZION -3.5%, WAFD -1.4%, NYB -2%, NPBC -3.9% and FULT -2.9% are cut to Market Perform. | Comment!
Apr. 24, 2012, 9:41 AMRegions Financial (RF +2.1%) shares are on the move after the bank reported a solid jump in its Q1 earnings due to decreased provisions for loan losses. SunTrust (STI +1%) rises for a second day after also reporting lower Q1 loan charge-offs and delinquencies. But Zions Bancorp (ZION -3.4%) slides after reporting a lower-than-expected Q1 profit. | Comment!
Mar. 14, 2012, 7:08 AM
ZION vs. ETF Alternatives
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