Jan. 17, 2014, 9:00 AM
- We'll keep an eye on the credit card firms following last night's earnings reports from AMEX (AXP) and Capital One (COF).
- Susquehanna is liking American Express - upgrading from Neutral to Positive and raising the price target to $107 from $90 - but cashes in its chips on its long CapOne call, downgrading to Neutral.
- Jefferies boosts its PT on both - AMEX to $88 from $78, and CapOne to $88 from $80.
- AXP +2.1%, COF -2.7% premarket
- AMEX earnings coverage and CC transcript
- CapOne earnings coverage and CC transcript
Jan. 16, 2014, 4:26 PM
- Net revenue of $5.5B off 1.4% Y/Y, with net interest income of $4.4B off 2.3%, noninterest income of $1.1B up 2.3%.
- Noninterest expense of $3.3B is up less than 1% from a year ago. What's in your wallet? Marketing expense of $427M is up 8.6%.
- Tier 1 common ratio of 12.2% is off 50 bps from Q3. NIM of 6.73% is off 16 bps.
- Domestic card loans of $73.3B up 5% from Q3, commercial bank loans of $45B up 6%, auto loans of $31.9B up 3%. Home loans of $35.3B fell 4% on expected run-off of acquired portfolios.
- Q4 results, press release
- COF -2% AH
Jan. 16, 2014, 4:10 PM| Comment!
Jan. 16, 2014, 12:10 AM
Jan. 15, 2014, 5:35 PM
Jan. 14, 2014, 9:30 AM| Comment!
Dec. 17, 2013, 4:19 AM
- The Fed intends to use its own estimates about the effect of a recession on bank balance sheets in its stress tests. Previously, the Fed has relied on data from the firms themselves.
- The central bank could project that bank assets would grow during a slump, as has happened in the past three recessions, rather than fall, as the banks have predicted.
- With such a finding, the Fed could require banks to hold more loss-absorbing capital or limit shareholder payouts. (Fed letter)
- Tickers: GS, JPM, BAC, BK, AXP, COF, C, FITB, MS, PNC, RF, STT, STI, USB, WFC.
- 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.
Dec. 10, 2013, 3:33 AM
- A panoply of regulators are due to disclose the details of the Volcker rule this morning and then formally adopt the measures later in the day.
- The new regulations will ban banks from proprietary trading, and prevent them from owning over 3% of hedge funds and private-equity funds.
- Banks fear that the rules could cost them billions of dollars by making it more difficult to engage in activities that are permitted under the regulation, such as market-making, underwriting and hedging against risks. Expect the lawyers to go through the proposals to see what could be struck down in court.
- Tickers: C, JPM, MS, WFC, BAC, COF, GS, BK, USB
- ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, SEF, IAT, IYG, PFI, FXO, KBWB, RKH, QABA, RWW, KRU, FINU, KBWR, RYF, PSCF, FNCL, KRS, FINZ
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.
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