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SunTrust Banks, Inc. (STI)

- NYSE
  • Mon, Mar. 23, 12:29 PM
    • The Regional Bank Coalition is urging D.C. to remove the $50B threshold at which, under current Dodd-Frank rules, lenders are subject to boosted regulatory standards.
    • The fight thus far has centered on whether to raise that bar (something even the Fed appears to support) or scrap it altogether.
    • "Regional banks do not create systemic exposure through market making or complex networks of interconnected transactions with other financial firms," says the group.
    • Regional Bank Coalition website
    • The group: SunTrust (NYSE:STI), Regions Financial (NYSE:RF), Huntington Bancshares (NASDAQ:HBAN), Fifth Third (NASDAQ:FITB), Capital One (NYSE:COF), BMO Financial (NYSE:BMO), Compass (NYSE:BBVA), BB&T (NYSE:BBT), Bank of the West, and AmEx (NYSE:AXP).
    • ETFs: KRE, KBE, IAT, KBWB, QABA, KRU, KBWR, KRS
    | 4 Comments
  • Thu, Mar. 12, 8:07 AM
    | 8 Comments
  • Wed, Mar. 11, 7:59 PM
    | Comment!
  • Wed, Mar. 11, 5:14 PM
    • SunTrust Banks (NYSE:STI) declares $0.24/share quarterly dividend, 20% increase from prior dividend of $0.20.
    • Forward yield 2.32%
    • The board declares to repurchase up to $875M of common stock beginning 2Q15.
    | Comment!
  • Thu, Mar. 5, 8:28 PM
    • The minimum Tier 1 common capital ratio for banks is 5%, according to the Fed, and here's how the 31 lenders stacked up under the central bank's severely adverse scenario vs. a year ago (h/t: WSJ):
    • Deutshce Bank (NYSE:DB): 34.7%, not tested a year ago
    • DIscover (NYSE:DFS): 13.9% vs. 13.2% a year ago
    • Bank of New York Mellon (NYSE:BK): 12.6% vs. 13.1%
    • American Express (NYSE:AXP): 12.5% vs. 12.1%
    • Northern Trust (NASDAQ:NTRS): 12.3% vs. 11.7%
    • State Street (NYSE:STT): 11.8% vs. 13.3%
    • Citizens Financial (NYSE:CFG): 10.7% vs. 10.7%
    • KeyCorp (NYSE:KEY): 9.9% vs. 9.2%
    • Capital One (NYSE:COF): 9.5% vs. 7.8%
    • PNC Financial (NYSE:PNC): 9.5% vs. 9%
    • Santander Holdings USA (SAN's U.S. unit): 9.4% vs. 7.3%; shares +0.8% after hours
    • BMO Financial (BMO's U.S. unit): 9% vs. 7.6%
    • Comerica (NYSE:CMA): 9% vs. 8.6%
    • Huntington Bancshares (NASDAQ:HBAN): 9% vs. 7.4%
    • HSBC North America (NYSE:HSBC): 8.9% vs. 6.6%
    • U.S. Bancorp (NYSE:USB): 8.5% vs. 8.2%
    • Regions Financial (NYSE:RF): 8.3% vs. 8.9%
    • Citigroup (NYSE:C): 8.2% vs. 7.2%
    • SunTrust (NYSE:STI): 8.2% vs. 8.8%
    • BB&T (NYSE:BBT): 8.1% vs. 8.4%
    • MUFG Americas Holdings (NYSE:MTU): 8% vs. 8.1%
    • Ally Financial (NYSE:ALLY): 7.9% vs. 6.3%
    • Fifth Third Bancorp (NASDAQ:FITB): 7.9% vs. 8.4%
    • Wells Fargo (NYSE:WFC): 7.5% vs. 8.2%
    • M&T Bank (NYSE:MTB): 7.3% vs. 6.2%
    • Bank of America (NYSE:BAC): 7.1% vs. 5.9%; shares +2.1% after hours
    • JPMorgan (NYSE:JPM): 6.5% vs. 6.3%
    • BBVA Compass (NYSE:BBVA): 6.3% vs. 8.5%
    • Goldman Sachs (NYSE:GS): 6.3% vs. 6.9%
    • Morgan Stanley (NYSE:MS): 6.2% vs. 6.1%
    • Zions Bancorp (NASDAQ:ZION): 5.1% vs. 3.6%; shares -1.7% after hours
    • The lenders were also informed today whether their capital return plans would put them below the Fed's 5% threshold, giving them a 6-day window with which to change those requests, if need be. Last year, both BofA and Goldman scaled back their dividend/buyback requests, allowing them to pass the CCAR. This year's CCAR results will be announced on Wednesday.
    • 2015 Stress Test Methodology and Results
    | 28 Comments
  • Thu, Feb. 26, 8:37 PM
    | 1 Comment
  • Wed, Feb. 18, 2:49 PM
    • The financial sector had begun to turn around a dismal start to the year as February brought forth a string of hawkish Fed heads suggesting a June rate hike, but the XLF is lower by 0.8% after just-released FOMC minutes suggest markets and the hawks are getting ahead of themselves. KBE -1.7%, KRE -2%
    • The TBTFs: BofA (BAC -2.2%), JPMorgan (JPM -1.4%), Wells Fargo (WFC -1.6%), Ciitgroup (C -0.8%)
    • The regionals: Regions Financial (RF -1.6%), KeyCorp (KEY -1.6%), PNC Financial (PNC -1.3%), BB&T (BBT -1.5%), Fifth Third (FITB -1.6%), SunTrust (STI -1.7%), First Niagara (FNFG -2.1%), M&T (MTB -1.9%), U.S. Bancorp (USB -1.3%), First Horizon (FHN -2.7%).
    • Online brokerage: Schwab (SCHW -2.3%), E*Trade (ETFC -1.7%), Ameritrade (AMTD -1.1%), Interactive Brokers (IBKR -0.9%).
    • Previously: FOMC minutes: June rate hike not a slam dunk yet (Feb. 18)
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KCE, KRU, RWW, KBWR, RYF, KBWC, FINZ, KRS
    | 41 Comments
  • Tue, Feb. 10, 2:46 PM
    • SunTrust Banks (NYSE:STI) declares $0.20/share quarterly dividend, in line with previous.
    • Forward yield 1.96%
    • Payable March 16; for shareholders of record Feb. 27; ex-div Feb. 25.
    | Comment!
  • Tue, Feb. 10, 11:51 AM
    • Among the upside catalysts for Citigroup (C +0.4%) - says Deutshce in its upgrade of the stock to Buy from Hold - will be the approval of $4B in share repurchases in this spring's CCAR.
    • Citi's plans to buy back stock and boost the dividend have been rejected by the Fed twice in the last three years, and CEO Michael Corbat has staked his job on approval this year.
    • Another catalyst, says Deutsche, will be the sale or IPO of OneMain Financial.
    • Turning back to the CCAR, Detusche expects the largest increases in capital returns to be at Citi, Bank of America (BAC +0.6%), Regions Financial (RF +0.3%), Morgan Stanley (MS +1.1%), SunTrust (STI +0.1%), and Citizens Financial (CFG +1.9%). Total payout ratios at the larger regional lenders should be 79% this year, up 1000 basis points from 2014.
    • Previously: Bank pair trade from Deutsche (Feb. 10)
    • Presenting at the Credit Suisse conference, CEO of U.S. Consumer & Commerical Banking and Citi Mortgage Jane Fraser touts the banks laser focus for retail on this country's largest 7 markets.
    • Presentation slides
    • Previously: Citi looks to boost mortgage business with Zillow tie-up (Feb. 10)
    | 4 Comments
  • 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
    | 49 Comments
  • Fri, Jan. 16, 8:05 AM
    • Q4 net income of $378M includes a $145M legal provision. Excluding that, EPS of $0.88 vs. $0.77 one year ago.
    • Net interest income of $1.248B unchanged form a year ago, with NIM of 2.96% down 24 basis points.
    • Noninterest income of $795M down from $814M a year ago. Mortgage production of $61M vs. $31M, production volume up 20%. Mortgage servicing income of $53M vs. $38M a year ago. Investment banking income of $109M vs. $96M, with trading income of $40M down from $57M
    • Noninterest expense of $1.410B up from $1.361B, after $145M legal charge.
    • Book value per share of $41.52 up 2% from last quarter. TBVS up $29.82 up 2%.
    • Conference call is just getting underway.
    • Previously: SunTrust Banks beats by $0.10, revenue in-line (Jan. 16)
    • STI -0.3% premarket
    | Comment!
  • Fri, Jan. 16, 6:03 AM
    • SunTrust Banks (NYSE:STI): Q4 EPS of $0.88 beats by $0.10.
    • Revenue of $2.04B (-1.0% Y/Y) in-line.
    • Press Release
    | Comment!
  • Thu, Jan. 15, 5:30 PM
  • Mon, Jan. 5, 3:36 PM
    • The $145M or $0.17 per share legal provision is for previously disclosed mortgage issues, to increase legal reserves, and to complete the final resolution of one matter.
    • SunTrust (STI -3.7%) intends to release Q4 results on Jan. 16.
    • Source: SEC Form 8-K
    | Comment!
  • Mon, Jan. 5, 1:25 PM
    • "We view Wells Fargo (WFC -2.7%) as a core bank holding, but shares have reached our price target and we believe sentiment is now overwhelmingly positive after leading returns in 2014 (+21%, #1 among the top 50 banks)," says Baird's David George, who earlier downgraded the stock from Outperform to Neutral.
    • Put the money in another bank? Not so quick, says George, suggesting the Fed could tighten later and be less aggressive than most expect, disappointing those hoping for higher rates to boost profits. Other than Wells Fargo, George sees sentiment highest in PNC Financial (PNC -2.7%), SunTrust (STI -3.9%), and U.S. Bancorp (USB -2.2%).
    • Asset-sensitive names like Comerica (CMA -3.7%) and Zions (ZION -3.4%) lagged in 2014, but estimates still look to high.
    • Top ideas would be Fifth Third (FITB -2.7%), Capital One (COF -2.4%), and JPMorgan (JPM -3%), but George is having a tough time finding value in the sector.
    • Previously: Longtime Wells Fargo bull rings the register (Jan. 5)
    | 3 Comments
  • Nov. 29, 2014, 8:00 AM
    • New guidelines - set to take full effect on December 1 - are the result of an agreement reached last month between banks and the GSEs meant to clarify exactly when lenders could be called to task for mortgages sold to Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) which ultimately default. Since the financial crisis, Fannie and Freddie have forced banks to repurchase billions of dollars worth of mortgages, leaving them naturally gun-shy about making new loans to all but the most pristine of credits.
    • “It’s providing greater certainty for all the parties so that you can lend more confidently and make the whole judgment process much easier and more clear cut,” says Mike Heid, president of Wells Fargo (NYSE:WFC) Home Mortgage. Along with SunTrust (NYSE:STI), Wells says borrowers should begin to see initial changes - such as faster processing times, reduced credit score requirements, and greater leeway to those whose credit history suffered due to one-time events - in a few weeks.
    • "We will be able to be looser and open up the net wider," says Mason-McDuffie Mortgage CEO Bill Godfrey, now expecting to make loans down to a 620 credit score from 660 previously.
    • Not everyone agrees: “Unless we are convinced that the rules are going to be permanent and there is not going to be a look back or a reach back in future times…we are simply going to stay on the sidelines," U.S. Bancorp (NYSE:USB) boss Richard Davis has said, and Bank of America (NYSE:BAC) CEO Brian Moynihan made similar comments at a recent conference.
    | 35 Comments
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Company Description
SunTrust Banks Inc is a bank holding company and a financial holding company with commercial banking organizations whose businesses provide financial services to consumer, business and corporate clients.
Sector: Financial
Country: United States