Oct. 14, 2014, 5:30 PM
Oct. 14, 2014, 3:31 PM
- Global growth, foreign-exchange, oil, and small caps are the subject of every client inquiry, says David Kostin. His team's recommendation: Buy "American exceptionalism."
- In Kostin's view, U.S. economy and corporate fundamentals are still strong, with economic growth expected by Goldman economists to be 3.2% next year, the fastest expansion since 2005. Europe is expected to grow just 1%.
- What his team likes are those stocks of companies which have a high proportion of domestic sales, plus sectors like Consumer Staples (XLP -0.1%) and Discretionary (XLY +0.7%) which stand to benefit from lower oil prices (plunging again today).
- As for small caps (IWM +0.9%), Kostin is wary, noting downward earnings revisions have boosted small cap P/E ratios even as prices have declined.
- The list of S&P 500 names capturing two or more of Kostin's themes: GT, GM, PCLN, AMZN, CMCSA, LOW, DG, TSN, ADM, CVS, AVP, WAG, PXD, HAL, JPM, BAC, SCHW, PNC, MS, C, GNW, LNC, MET, THC, AET, UNH, ESRX, HUM, WLP, BIIB, GILD, DAL, CMI, FLR, CRM, JBL, MA, FB, MU, FSLR, VMC, MON, T.
Oct. 2, 2014, 10:35 AM
- An outlier to the downside among Canadian lenders is Scotiabank (BNS -1.6%) as TD Securities pulls its Buy rating, the stock in the last two months giving up all and more of its gains this year.
- Another sizable bank downgraded today is PNC Financial (PNC -0.8%), with Jefferies citing valuation as it cuts to a Hold.
Sep. 18, 2014, 12:53 PM
- Banks, insurers, brokerages and anything else starved for yield continue to gain following yesterday's FOMC news. Among the gainers are Bank of America (BAC +1.9%) - which breaks above $17 for the first time since April - Citigroup (C +2.7%), Wells Fargo (WFC +1.1%), PNC (PNC +1.1%), Fifth Third (FITB +1.7%), SunTrust (STI +1.2%), Schwab (SCHW +2.3%), Prudential (PRU +2.5%), and Lincoln National (LNC +2.4%).
- The XLF +1.2%, KBE +1.5%, and KRE +2%.
- Financial sector ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, KBWR, RWW, RYF, KRS, FINZ
- Lit up bright red is the utility sector (XLU -1%), led by Southern Company (SO -1.1%), Dominion Resources (D -1.2%), Duke Energy (DUK -1.4%), and Pinnacle West (PNW -1.9%).
- Utility ETFs: XLU, IDU, VPU, UPW, RYU, FUTY, PUI, FXU, SDP, PSCU
Sep. 9, 2014, 11:18 AM
- A full 33% of PNC's deposits in Q2 were by ATM or from mobile devices, says CEO William Demchak, presenting at the Barclays Financial Services Conference. That's up from 23% in 2013's Q2.
- Presentation slides
- So-called "digital consumer customers" - those consumer checking clients who do the majority of their transactions without a teller - rose to 45% in Q2 from 37% a year ago.
- The result: Retail Banking Headcount fell 5% for the year, with tellers down 16%. Added were call center reps (up 6%) and investment professionals (up 4%).
Jul. 16, 2014, 9:46 AM
- Net interest income of $2.129B falls 6% Y/Y, with NIM slipping a whopping 46 basis points from a year ago and 14 bps from Q1.
- Noninterest income of $1.681B falls 7% Y/Y, with increases in about all categories offset by a lower gain on sale from Visa shares.
- Noninterest expense of $2.328B falls 3% Y/Y
- 2.6M shares repurchased during quarter.
- Common equity Tier 1 capital ratio of 11%, up from 10.8% at end of Q1.
- PNC -4%
- Previously: PNC Financial beats by $0.07, revenues in line
Jul. 16, 2014, 6:42 AM
Jul. 15, 2014, 5:30 PM
Jul. 11, 2014, 3:58 PM
- Wells Fargo’s (WFC -0.7%) disappointing Q2 results could be good news for PNC Financial Services (PNC +0.4%), Fifth Third (FITB +1%), KeyCorp (KEY +0.1%) and Comerica (CMA +0.5%), according to Nomura analysts.
- The strength in WFC’s commercial loan portfolio - total core loan growth came in at 6.9% Y/Y, up from 5.6% last quarter - bodes well for other regional banks, given high C&I growth correlations (~80% or higher); total loan growth correlations also exceed 90% for PNC, FITB, KEY and CMA.
- The firm notes that the R-squared between earning asset growth and net interest income growth is 98% for regional banks, suggesting that stronger loan growth will lead to positive EPS revisions.
Jul. 3, 2014, 10:43 AM
May 30, 2014, 8:56 AM
May 28, 2014, 12:25 PM
- "It's going to be a real tough year in origination," PNC Financial chief Bill Demchak tells the crowd at the Deutsche conference. "There is quite clearly much more capacity in the market right now than there is people who want mortgages.”
- Mortgages aren't as large a part of PNC's business as for some competitors, but it's an important product, says Demchak, if only for the fact that it brings people into branches. Income from residential mortgage production fell 31% Y/Y in Q1 for PNC, and makes up about 10% of the bank's overall noninterest income.
May 21, 2014, 2:33 PM
- The latest issue for the crusader from the NY Dept. of Financial Services is a Reuters report on Ocwen Financial (OCN -2.5%) - along with banks like PNC Financial, and Bank of America (BAC) - routinely demand homeowners promise to say bad things about them publicly in exchange for mortgage modifications.
- "Deeply troubling and offensive," Lawsky tells Reuters, promising an investigation.
- A PNC spokesperson: "These clauses are part of the consideration we receive for agreeing to settle the case. This helps to ensure that the discussion is not re-opened in public after the case has been settled."
- "When [we] take a closer look at some of these non-bank servicers, we find corners being cut, to the disadvantage of homeowners," said Lawsky in a speech yesterday, in which he makes clear his serious issues with the business models of companies like Ocwen (and affiliates like ASPS), Nationstar Mortgage (NSM -0.7%), and Walter Investment (WAC -2.4%).
May 14, 2014, 10:24 AM
May 14, 2014, 9:34 AM
- Bank of New York's (BK) corporate trust unit is also drawing the interest of PNC Financial and Sumitomo Mitsui Financial Group (SMFG), according to Bloomberg.
- Mitsubishi UJF has previously been reported as maybe prepping a bid as well.
- For PNC, a purchase of the BNY business would return it to a line it exited from 16 years ago when it sold its corporate trust unit. For Sumitomo, it's another Japanese bank looking for growth abroad to offset slow business at home.
- BNY's corporate trust division could be worth as much as $2.5B, according to sources.
May 6, 2014, 10:52 AM
- Pressed by investors for greater capital returns, but muzzled by the Fed on regular quarterly payouts, a number of large banks are considering asking their D.C. bosses to approve special one-time dividends.
- PNC CEO Bill Demchak - in the bank's recent earnings call (transcript) - said he's discussed the idea informally with regulators, and BB&T (BBT -0.9%) chief Kelly King raised the possibility of a special payout during his call (transcript). U.S. Bancorp (USB -0.6%) hinted at it as well.
- “At some point the regulators will have to say to the banks, ‘You’ve done good, you’ve fixed your internal system, you’ve raised enough capital, now we don’t have any restrictions on your excess capital,’” says RBC's Gerard Cassidy.
- Farr, Miller's Keith Davis isn't too excited by the prospect. “The lack of certainty would not play well ... You want stability, you want visibility, you want to know what your returns are going to be.”
- Previously: UBS higher after beat and special dividend
PNC vs. ETF Alternatives
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.
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