Credit Suisse (NYSE:CS) issued a research note yesterday morning indicating that its analysts view the following banks favorably. Credit Suisse argues that these banks’ loan portfolios are due to increase. Recall that, for banks, loans they make to customers are assets that the banks carry on their balance sheets, and those assets are expected to generate cash flows, in the form of interest payments. for the bank. Obviously, one concern with banks’ loan portfolios is the percentage of bad loans on the balance sheet that need to be written off as bad debt.
- Fifth Third Bancorp (NASDAQ:FITB): Its stock has traded in a 52-week range of $10.64 to $15.75 and most recently traded at $12.40. Its market capitalization is $11.4 billion. About the company: Fifth Third Bancorp is a diversified financial services company that operates banking centers in the Midwestern and Southeastern regions of the United States. The Company’s principal businesses include retail banking, commercial banking, investment advisory, and data processing.
- Huntington Bancshares (NASDAQ:HBAN): The shares have traded in a 52-week range of $5.04 to $7.70 and most recently traded at $6.30. Its market capitalization is $5.44 billion. About the company: Huntington Bancshares Incorporated is a multi-state bank holding company. The Company’s subsidiaries provide full-service commercial and consumer banking services, mortgage banking services, automobile financing, equipment leasing, investment management, trust services, brokerage services, customized insurance service programs, and other financial products and services.
- Zions Bancorp (NASDAQ:ZION): The shares have traded in a 52-week range of $17/91 to $25.60 and most recently traded at $23. Its market capitalization is $4.23 billion. About the company: Zions Bancorporation is a bank holding company that operates full-service banking offices in western United States. The Company also offers an array of investment, mortgage, insurance, and electronic commerce services. In addition, Zions provides financing solutions for small businesses across the United States.
Other banks, which are less favorably mentioned, include:
- SunTrust Banks (NYSE:STI): The shares have traded in a 52-week range of $21.79 to $33.14 and most recently traded at $25.39. Its market capitalization is $12.7 billion. About the company: SunTrust Banks, Inc. is a super-regional bank holding company. The Company’s subsidiary banks operate in Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and the District of Columbia. SunTrust provides a wide range of financial services such as credit cards, mortgage banking, insurance, brokerage and capital markets services.
- Regions Financial (NYSE:RF): The shares have traded in a 52-week range of $5.12 to $8.09 and most recently traded at $6.21. Its market capitalization is $7.8 billion. About the company: Regions Financial Corporation is a regional multi-bank holding company. The Company provides mortgage banking, credit life insurance, leasing, commercial accounts receivable factoring, specialty mortgage financing, and securities brokerage services. Regions provides banking services throughout the South, Midwest, and Eastern United States.
Big Banks to Watch: Bank of America (NYSE:BAC), Citigroup (NYSE:C),Deutsche Bank (NYSE:DB), JPMorgan Chase (NYSE:JPM), HSBC (NYSE:HBC), Metlife (NYSE:MET), PNC (NYSE:PNC), U.S. Bancorp (NYSE:USB), Financials (NYSE:XLF), Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS) and Wells Fargo & Company (NYSE:WFC)
(Note: Selected data are sourced from Yahoo! Finance. All data are assumed to be accurate.)
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