Banks Should See $5.4 Billion from Visa IPO

Includes: FITB, NCC, SNV, V
by: FP Trading Desk

U.S. banks involved in the IPO of Visa Inc. (NYSE:V) should see a pre-tax benefit of $5.4-billion in the first quarter, thanks in part a cost basis of virtually nothing from the estimated 50% sale of their stakes in the credit card giant, Citigroup analyst Keith Horowitz said in a report.

National City Corp.(NCC), First Horizon National Corp. (FNH), Fifth Third Bancorp (NASDAQ:FITB) and Synovus Financial Corp. (NYSE:SNV) are expected to see the biggest benefit in their Tier 1 capital, which measures a bank’s capital adequacy, of approximately 15 to 30 basis points.