New York- Bank of America Corporation stock trended lower today dropping 16 cents or 1.21 % and finishing at 13.11. Allan Edwards CEO of The Markets Are Open noted that the stock is currently having trouble breaking its range outside of $13. " He said that "Bank of America has done an excellent job building up provisions and should recognize gains in future quarters."
Edwards added that these gains are important for banks. He also noted that the banking sector appears to be priced in for the worst, despite improving fundamentals. Most of the banks, trade near their equity despite having impressive capital ratios, and improving profits.
Edwards noted that BAC will have a one time loss in Q3 due to a write off of goodwill, but that the stock is still very attractive.
To see his full report Click Here
Bank of America Corporation is a bank holding company, and a financial holding company. The Company is a financial institution, serving individual consumers, small and middle market businesses, large corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various nonbanking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and nonbanking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Commercial Banking, Global Banking & Markets, Global Wealth & Investment Management, with the remaining operations recorded in All Other.
Showing posts with label U.S. Banks. Show all posts
Showing posts with label U.S. Banks. Show all posts
Wednesday, September 29, 2010
Bright Future Seen For PNC Despite Rocky Summer
PNC Financial (PNC) headquartered in Pittsburgh, Pennsylvania, U.S. is the 6th largest bank in the United States by total assets. PNC has outperformed the average banking index over the last two years. On September 14, PNC provided an investor presentation which highlights the company past successes and what it expects for the future.
In the presentation PNC stated that out of the major banks it has the highest net interest margin at 4.29%. Net interest margin represents the difference between banking revenues and banking expenses. It also has the second highest risk adjusted net interest margin. Andy Kibbens CEO of The Markets Are Open noted that the higher a companies net interest margin the higher chance the company will be more profitable in the long term. "See when a companies loan earn 4% interest as opposed to 3% the differences to top line growth can be so much larger." PNC has also seen its non performing drop by 700 million in Q2 as compared to Q1 which is a positive sign for the bank. However, the company is still recognizing large provisions for future losses. Kibbens noted that PNC and other major banks seem to have over provided for future losses and he expects them to release some of these provisions back into future earnings.
Kibbens estimates that PNC will have over a 10% tier 1 ratio after Q3 due to profitability from its core businesses and a gain associated with PNC Global Investment Servicing. So despite a 20% decline in its stock in the summer the company still has a bright future.
To see his full report Click Here
The PNC Financial Services Group, Inc. (PNC) is a diversified financial service company. The Company is engaged in retail banking, corporate and institutional banking, asset management, residential mortgage banking and global investment servicing, providing many of its products and services nationally and others in its primary geographic markets located in Pennsylvania, Ohio, New Jersey, Michigan, Maryland, Illinois, Indiana, Kentucky, Florida, Missouri, Virginia, Delaware, Washington, and Wisconsin. It also provides certain investment servicing internationally. Retail Banking provides deposit, lending, brokerage, trust, investment management, and cash management services to consumer and small business customers within its primary geographic markets. Asset Management Group includes personal wealth management for high net-worth and ultra high net worth clients and institutional asset management. BlackRock is an investment management firm.
In the presentation PNC stated that out of the major banks it has the highest net interest margin at 4.29%. Net interest margin represents the difference between banking revenues and banking expenses. It also has the second highest risk adjusted net interest margin. Andy Kibbens CEO of The Markets Are Open noted that the higher a companies net interest margin the higher chance the company will be more profitable in the long term. "See when a companies loan earn 4% interest as opposed to 3% the differences to top line growth can be so much larger." PNC has also seen its non performing drop by 700 million in Q2 as compared to Q1 which is a positive sign for the bank. However, the company is still recognizing large provisions for future losses. Kibbens noted that PNC and other major banks seem to have over provided for future losses and he expects them to release some of these provisions back into future earnings.
Kibbens estimates that PNC will have over a 10% tier 1 ratio after Q3 due to profitability from its core businesses and a gain associated with PNC Global Investment Servicing. So despite a 20% decline in its stock in the summer the company still has a bright future.
To see his full report Click Here
The PNC Financial Services Group, Inc. (PNC) is a diversified financial service company. The Company is engaged in retail banking, corporate and institutional banking, asset management, residential mortgage banking and global investment servicing, providing many of its products and services nationally and others in its primary geographic markets located in Pennsylvania, Ohio, New Jersey, Michigan, Maryland, Illinois, Indiana, Kentucky, Florida, Missouri, Virginia, Delaware, Washington, and Wisconsin. It also provides certain investment servicing internationally. Retail Banking provides deposit, lending, brokerage, trust, investment management, and cash management services to consumer and small business customers within its primary geographic markets. Asset Management Group includes personal wealth management for high net-worth and ultra high net worth clients and institutional asset management. BlackRock is an investment management firm.
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