Oct. 31, 2013, 1:15 PM| Comment!
Oct. 17, 2013, 4:17 PM
- Net revenue of $5.7B up less than 1% from Q2. Non-interest expense of $3.1B up 3%. Marketing expense of $299M falls from $330M. Pre-provision earnings of $2.5B falls 3%. Provision for credit losses of $849M up 11%.
- Net interest margin of 6.89% gained 6 basis points from last quarter.
- Domestic card loans of $69.9B fell less than 1%. Commercial banking loans of $42.4B gained 4%. Auto loans of $30.8B gained 5%. Home loans of $36.8B fell 6% due to runoff.
- Tier 1 common ratio gains 60 basis points to 12.7%.
- Conference call at 5 ET.
- Q3 results, press release.
- COF +0.8% AH.
Oct. 17, 2013, 4:11 PM
Oct. 17, 2013, 12:10 AM
Oct. 16, 2013, 5:35 PM
Oct. 12, 2013, 9:21 PM
- "For Q3, 91 companies in the S&P 500 cut their earnings guidance while just 19 raised them—both records since FactSet began keeping count in 2006," Jack Hough notes.
- Investors needn't fear though, as Barron's is out with a list of six companies who have not only raised their EPS estimates, but whose shares also boast "either recently raised price targets or recommendation upgrades."
- The list: Allstate (ALL), Occidental Petroleum (OXY), J.M. Smucker (SJM), Snap-on (SNA), Celgene (CELG), and Capital One (COF).
Oct. 10, 2013, 7:53 AM| Comment!
Oct. 7, 2013, 3:52 PM
- Among banks and credit card names, FBR favors those picking up new teams/market share - namely Signature Bank (SBNY -1.4%) and Discover (DFS) - as well as those trading near book value, like HomeStreet (HMST -0.6%). PNC Financial remains a favorite for its strong growth prospects, as well as servicers like Nationstar (NSM +0.2%), Walter Investment (WAC -2.3%), and New Residential (NRZ -0.3%).
- Those most exposed to a protracted government shutdown are smaller community banks in the D.C. area like Eagle Bancorp (EGBN -1.4%), and Cardinal FInancial (CFNL -0.2%). Capital One (COF -1.9%) - by dint of its Chevy Chase acquisition - would also feel a pinch.
- On mREITs (REM -0.1%), the team expects Q3 book values to increase slightly, but warns its estimates are based on relatively static portfolios - "but for most names, portfolios are anything but that." With all the volatility, most mREITs may have hedged away the recent MBS rally. Starwood Property Trust (STWD) remains FBR's best idea thanks to its commercial real estate exposure.
- Financials ETFs: XLF, IYF, PFI, VFH, RYF, RWW, FAS, UYG, FAZ, SKF, SEF, IAI, FXO, PSCF, KBWD, KBWB, IYG, FINU, FINZ.
Oct. 4, 2013, 1:04 PM
- Despite expenses moving in the wrong direction and what he expects will be a declining trend in earnings, Capital One (COF +1.7%) is KBW's Sanjay Sakhrani top pick among the credit card lenders. Even with Q3 EPS expected at $1.78 vs. $2.01 a year ago, CapOne still trades at 10.1x 2014 consensus P/E - low for a stock with return on tangible common equity of nearly 18%, he says.
- The far-better performing (stock-price wise) Discover (DFS +0.3%) - trading at 10x 2014 earnings - is also rated a Buy as Sakhrani sees plenty of room for boosted buybacks. He predicts $350M of repurchases in Q3 vs. $340M in Q2, and a total of $1.3B for all of 2013.
- Though relatively pricey at 13.8x 2014 consensus P/E, American Express (AXP +0.1%) is also rated a Buy thanks to its long history of double-digit ROE (it was 23.6% in H1, down from 26.6% a year ago).
Sep. 16, 2013, 2:18 PM
- Bank of America's (BAC +0.7%) Tier 1 common capital ratio would remain above the regulatory minimum, falling to 9.2% by mid-2015 in the "severely adverse scenario" of its self-administered stress test, which - like Citigroup and Goldman - models for a number of Armageddon-like scenarios with the exception of one: sharply higher interest rates. Is the Fed really that omnipotent?
- The Fed's own stress test results - the CCARs - are due in March of next year.
- BofA's Mid-Cycle Stress Test Results.
- Earlier: Citigroup and Goldman.
- More: Keycorp (KEY) says it will come in at 10%, Capital One (COF) at 12.5%.
- ETFs of interest: KBE, KBWB, KRE, KCE, KBWC, XLF, IYF, PFI, VFH, RYF, RWW, FAS, UYG, FAZ, SKF, SEF, IAI, FXO, PSCF, KBWD, KBWB, IYG, FINU, FINZ.
Sep. 10, 2013, 4:15 PM
- Discover (DFS +1.9%) and Capital One (COF +2.5%) are similarly valued at 10x 2014 estimated EPS, but Sandler O'Neill prefers Discover, saying the stock deserves a premium due to superior credit quality and loan growth. Discover grew credit card loans 4.9% Y/Y in Q2, while CapOne was negative. Discover's 30-plus day delinquency rate of 1.58% was below that of all U.S. banks at 2.52%. Finally, Discover's net charge-offs of 2.34% compares to 3.51% for the industry.
- Discover also trades at an undeserved discount to regional banks (KRE). Acknowledging the differences in Discover's and the regional banks' business models, Sandler still believes the discount is excessive again given superior loan growth and improved credit quality. Finally, Discover's net interest margin has consistently exceeded 9%.
Sep. 9, 2013, 7:13 AM| Comment!
Aug. 22, 2013, 3:32 AM
- The U.K.'s Financial Conduct Authority has reached a settlement of up to £1.3B ($2.04B) with banks, credit-card issuers and insurer CPP to compensate customers for mis-sold credit-card insurance.
- The firms involved include Lloyds (LYG), Barclays (BCS), HSBC (HBC), Morgan Stanley (MS), Santander (SAN), Capital One (COF) and RBS (RBS).
- The deal is dependent on customer and court approval.
- The agreement adds to the billions of pounds in fines that banks have paid for mis-selling other financial products. (PR)
Aug. 16, 2013, 1:16 PM
- Capital One (COF) agrees to buy privately-held Beech Street Capital for an undisclosed amount. Founded in 2009, Beech Street is an originator and servicer of Fannie, Freddie, and FHA multi-family commercial real estate loans, and originated $4B worth in 2012. The company also services about $10B in loans.
- Based on 2012 activity, Beech Street is the nation's 6th largest originator - together, the two companies will move up to the #5 slot.
- Press release.
Jul. 25, 2013, 2:33 PM
Jul. 25, 2013, 2:01 PM
COF vs. ETF Alternatives
Other News & PR