Wed, Mar. 18, 2:41 PM
- The Dow and S&P 500 have each turned more than 1% higher following after the Fed cuts its projections for GDP growth, inflation, and the pace of rate hikes, but the country's yield-starved lenders don't join the party.
- The KBE is down 0.5% and the KRE by 0.9%.
- Bank of America (BAC -0.2%), Citigroup (C +0.1%), Regions Financial (RF -1.1%), KeyCorp (KEY -0.9%), First Niagara (FNFG -1.6%), U.S. Bancorp (USB +0.1%), PNC Financial (PNC +0.3%).
- Others gasping for a yield above zero: Schwab (SCHW -1.5%), E*Trade (ETFC +0.1%), Ameritrade (AMTD -0.5%).
- Previously: FOMC drops "patient," but sends dovish signal (March 18)
- Previously: Stocks stage sharp turnaround, yields dive following dovish Fed news (March 18)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, FINZ, KRS
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
Mon, Jan. 12, 11:33 AM
- General Motors (GM +0.4%) plans to use its GM Financial lending unit as the exclusive provider of subsidized leases as of Feb. 3 - which could maybe boost GM earnings, but comes at the expense of Ally Financial (ALLY -3.9%) and U.S. Bancorp (USB -0.7%) unit U.S. Bank, which will be largely pushed out of the lucrative business.
- Ally Financial bull Mark Palmer of BTIG says the move shouldn't be wholly unexpected as Ally CEO Michael Carpenter last month warned this could occur. While it's a negative for Ally, says Palmer, a boost in non-GM used car loans should compensate.
Sep. 17, 2014, 3:16 PM
- Leading markets higher as the reality of higher interest rates gets nearer is the financial sector (XLF +0.9%). Whether its banks, brokerages, or insurers, a higher benchmark rate for some time has been considered a key bullish catalyst. An especially large move is being seen in the online brokerage names who have been forced to forego money market fees for years thanks to ZIRP: E*Trade (ETFC +3%), Schwab(SCHW +3.2%), Ameritrade (AMTD +2%).
- Morgan Stanley (MS +1.8%), Bank of America (BAC +1.2%), JPMorgan (JPM +0.9%)
- U.S. Bancorp (USB +1.1%), Regions Financial (RF +2%), New York Community Bank (NYCB +0.8%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1.3%)
- MetLife (MET +0.6%), Voya Financial (VOYA +0.7%).
- Chubb(CB +0.4%), AIG (AIG +1.1%), Hartford (HIG +0.8%)
- Financial sector ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, KBWR, RWW, KBWP, RYF, KBWI, KRS, FINZ
Jul. 16, 2014, 8:10 AM
- Net income of $1.495B or $0.78 per share vs. $1.484B and $0.76 one year ago. The quarter included the $200M FHA mortgage settlement along with $214M pretax gain from sale of Visa shares - combined, the two had no impact to the headline number.
- Net interest income of $2.744B up 2.7% Y/Y, with NIM of 3.27% down 16 basis points.
- Noninterest income of $2.444B up 7.4% Y/Y, boosted by the previously-mentioned sale of Visa shares. Mortgage banking revenue of $278M fell 30%, but modest gains were seen across nearly all the rest of the bank's other fee categories.
- Noninterest expense of $2.753B up 7.7% Y/Y thanks to the previously-mentioned FHA settlement, along with a 2.5% rise in compensation expense.
- ROA of 1.6%, ROE of 15.1%, and efficiency ratio of 51.3% (after excluding notable items) all continue to lead the industry.
- CC at 8:30 ET
- Previously: U.S. Bancorp beats by $0.01, beats on revenue
- USB +1.6% premarket
Apr. 23, 2014, 2:45 PM
- BNY Mellon (BK +2.1%) has hired Goldman Sachs to find a buyer for the unit, reports Bloomberg, and is expected to begin receiving offers in about a month. The corporate trust arm assists companies with making payments on debt they issue as well as helping customers recover funds in event of default.
- The business services about $12T in outstanding debt, with 3.5K employees at 61 global offices, but has become less lucrative since the financial crisis made the packaging and selling of loans a more difficult business. Possible buyers could be large commercial banks looking to build out their own trust business such as Bank of America (BAC), U.S. Bancorp (USB), Wells Fargo (WFC), or PNC Financial, says Guggenheim's Marty Mosby.
- On a recent earnings call, BNY management said run-off in the unit would cut annual revenue by $50M-$75M annually, roughly 0.5% of total bank revenue.
Apr. 3, 2014, 7:59 AM
- April 3 is officially bank downgrade day, with the latest being U.S. Bancorp (USB) being removed from Goldman's Conviction Buy list. It's the 2nd downgrade in 2 days for USB which had its Buy rating pulled at Sandler O'Neill yesterday.
- Shares -1.3% premarket
- Q1 earnings seasons starts soon and the outlook is for sluggish results, so it shouldn't be too surprising the sell-side is cashing in a few chips.
- Earlier: Citi downgraded at Sterne Agee and Deutsche cut at JPMorgan.
Mar. 24, 2014, 2:54 PM
- Noting Bank of America's (BAC -0.9%) capital ratio in the Fed stress test was the lowest of any bank which passed, Atlantic Equities pulls its Overweight rating on the stock, and cuts the price target to $18.50 from $20. The stress test, says analyst Richard Staite, shows BofA with a $13B buffer over the minimum requirement, meaning maybe just $5B in buybacks and $2.5B dividends this year, "although we are somewhat nervous that it or another bank could be failed on a qualitative basis."
- Still, Staite expects a boost in the quarterly payout to $0.06 per share from a penny.
- Staite and team upgrade U.S. Bancorp (USB +0.7%) and Wells Fargo (WFC -0.4%) to Neutral from Underweight, citing the large margins by which they passed the stress test.
- In other financial sector moves, Sterne Agee boosts First Interstate BancSystem (FIBK +6%) to a Buy, citing the benefits of its impending merger with Mountain West Financial. The team also lifts EverBank Financial (EVER +2.4%) to a Buy from Neutral.
Mar. 20, 2014, 10:54 AM
- Much of the financial sector is lit up bright green, continuing to outperform following yesterday's suggestion by the FOMC and Janet Yellen that rate hikes could come sooner than expected. XLF +1.1%, KBE +1.6%, KRE +1.6%.
- At new 52-week or even multi-year highs are JPMorgan (JPM +2.3%), Wells Fargo (WFC +1.7%), Morgan Stanley (MS +1.4%), and Bank of America (BAC +1.6%).
- Regional lenders: U.S. Bancorp (USB +1%), Huntington (HBAN +1.5%), PNC (PNC +1.3%), BB&T (BBT +1.5%), Fifth Third (FITB +1.8%), First Niagara (FNFG +2.1%).
- Leading among the life insurers are Lincoln National (LNC +1.9%), Protective Life (PL +1.6%), Manulife (MFC +1.2%), and Sun Life (SLF +1.1%).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, PFI, KBWB, RKH, QABA, FNCL, FINU, KRU, RWW, KBWR, RYF, PSCF, KBWI, KBWP, KRS, FINZ
Jan. 22, 2014, 7:49 AM
- Q4 ROA of 1.63% and ROE of 15.4% continue to be the best in the industry. Seventy-one percent of $5.8B earned in 2013 returned through dividends of buybacks.
- Net interest income of $2.733B in Q4 fell 1.8% Y/Y as NIM dipped to 3.4% from 3.43% in Q3 and 3.55% a year ago.
- Noninterest income of $2.156B fell 7.4% Y/Y, as mortgage banking revenue fell $245M. Increases were seen in credit and debit-card fees, merchant processing services, trust and investment management fees, among other segments.
- Noninterest expense of $2.682B is roughly flat from a year ago. Efficiency ratio of 54.9%.
- Credit loss allowance of $4.537B is less than 1% lower than a year ago. Net charge-offs of $312M fell from $468M.
- Tier 1 capital ratio of 11.2%
- Press release, Q4 results.
- CC at 8 ET
- USB -0.4% premarket
Jun. 20, 2013, 12:36 PMMostly in the green along with the life insurers today is much of the regional banking sector (KRE +0.5%) as a steeper yield curve is sure to boost their barely visible net interest margins. U.S. Bancorp (USB +0.1%), Huntington (HBAN +2.2%), New York Community (NYCB -0.1%), Regions (RF +0.7%), BB&T (BBT +1.2%), PNC (PNC +0.7%), SunTrust (STI +0.7%), KeyCorp (KEY +1.5%), People's Untied (PBCT +1.3%), Zions (ZION +1.9%), Comerica (CMA +1%). | Comment!
Mar. 14, 2013, 5:22 PM
Apr. 17, 2012, 9:39 AMU.S. Bancorp (USB +1%) and Comerica (CMA +5.2%) each posted Q1 earnings gains of more than 25% (I, II), thanks to increased lending and lower credit costs and loan-loss provisions, offering a bullish take on the economy and reinforcing the notion that smaller, regional banks are recovering more strongly from the financial crisis than the giants. | 5 Comments
Mar. 6, 2012, 10:49 AMBank bonds are crushed in early trading, as the risk premium on intermediate term notes from Morgan Stanley, UBS and Goldman widen 0.14, 0.22, and 0.35 percentage points, respectively, and short-term paper from BofA and US Bancorp weaken 0.16 and 0.24 points. Their stocks are sinking too: MS -4.8%, UBS -3.9%, GS -3.8%, BAC -3%, USB -1.2%. | Comment!
Feb. 1, 2012, 12:57 PM
Jan. 18, 2012, 7:22 AMMore on U.S. Bancorp (USB): Total loans +5.9% Y/Y, deposits +17.3% Y/Y, excluding acquisitions, +11.7%. Net interest income +7% Y/Y with interest margins falling to 3.6% from 3.83% in Q4 2010. Net charge-offs -7% from Q3. USB vs. the banks of Dimon, Moynihan, and Pandit. Shares +0.4% premarket. | Comment!
USB vs. ETF Alternatives
U.S. Bancorp is a multi-state financial holding company. It provides financial services through its subsidiaries, including lending and depository services, cash management, foreign exchange and trust and investment management services.
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