Dividend talk gains steam: Stifel says it found a good income play in PNC Financial (PNC +0.8%). "PNC has the best combination of attractive dividend yield, low payout ratio and high profitability for those investors that are willing to wade back into the banks amid all the macro uncertainty."
Bank of America's (BAC) difficulties could mean gains for smaller players like PNC, U.S. Bancorp (USB), and Toronto-Dominion (TD). These lenders can pick up market share as well as assets on the cheap that BofA is unloading. "Whoever is most aggressive ... will benefit," says Chris Thornberg.
PNC Financial (PNC +3.9%) CEO James Rohr outlines cuts of ~$550M, or 6% of expenses, and takes a bit of a jab at "Project New BAC": “We called [our plan] continuous improvement." He sees an improved banking sector: "This is not 2008. U.S. banks have more than doubled their capital reserves, liquidity has improved and profitability has returned across the industry."
With many bank stocks trading near historic lows and expecting a round of rough Q2 earnings reports, FBR Capital sees an upcoming opportunity to buy banks for the long term. FBR likes PNC Financial (PNC), JPMorgan Chase (JPM) and U.S. Bancorp (USB), but is less enthused about regional banks aside from Sterling Financial (STSA) and Zions (ZION).
Bloomberg reports PNC Bank (PNC -1.9%) is close to beating out BB&T (BBT -1.1%) for a deal to buy Royal Bank of Canada's (RY +1.7%) U.S. retail operations. No terms announced, but it's been estimated the unit could fetch $3.7B.
BB&T (BBT) and PNC Financial Services (PNC) are reportedly key contenders for the U.S. consumer banking unit that Royal Bank of Canada (RY) put up for sale this year. RBC would like a stock deal for the division, which has lost billions since 2007; it would be a good fit for two suitors that each want to grow in the U.S. Southeast. (previously)
PNC Financial Services Group Inc is a financial services company. It operates in six segments: Retail Banking; Corporate & Institutional Banking; Asset Management Group; Residential Mortgage Banking; BlackRock; and Non-Strategic Assets Portfolio.