US Bancorp
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Are These Banks Well Suited For Rising Interest Rates?
By Adnan Khan - June 18, 2013 | Tickers: PNC, STI, USB
Some of the regional banks in the US emerged stronger after the 2008 financial meltdown. However, as the unwinding of QE unfolds, these banks might be faced with increased volatility in the interest rates coupled with higher interest rates. While higher interest rates mean higher returns on loans, they also tend to hinder loan growth. The first quarter was marked with higher interest rates. Let’s see how US Bancorp more »
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Higher Rates Mean Higher Returns for These Banks
By Adnan Khan - June 14, 2013 | Tickers: JPM, USB, WFC
Increased volatility and higher interest rates have caused headaches for many banking companies. However, that is not the case for JPMorgan Chase (NYSE: JPM), despite its woes. I believe these banks will benefit from the prevailing interest rate environment. Let’s see how.
Higher yields mean additional returns
The banking industry is highly reliant on interest rates as a source of income. However, banks have little control over the interest more »
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A Weak Revenue Environment Is Not a Problem for These Banks
By Adnan Khan - June 12, 2013 | Tickers: C, JPM, USB
Large cap banks might continue to face headwinds as far as their revenues are concerned due to sluggish growth in loans. However, I'll focus on any signs of improvement and try to differentiate between the banks. I believe, given the revenue challenged environment, banks which are able to contain their expenses and grow their top lines with the help of loans growth are best positioned.
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The Dilemma for Regional Banks
By Varun Chandan - June 11, 2013 | Tickers: HBAN, PNC, USB |
Regional banks have emerged stronger after the financial crisis. However, most regional banks have been facing significant margin pressure as the Federal Reserve has kept interest rates at record low levels. While the low interest rate has helped in boosting lending activity, it has hurt banks’ margins. Although regional banks are hoping for a rise in interest rates, they face a dilemma. A sudden rise in interest rates could hurt more »
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Leading American Banks, a Complete Review
By Vanina Egea - June 10, 2013 | Tickers: C, USB, WFC
The financial sector has been consistently resilient through the last few years. The whole industry has been facing headwinds caused by lower reinvestment rates, the European sovereign crisis and an enhanced regulatory and tax system with a double dip recession. However, with an ongoing recovery in the housing market and companies’ earnings showing momentum, the economy as a whole is helping the banking system recover. In this article I am more »
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Billionaire Ken Griffin’s Cheap Stock Picks
By Meena Krishnamsetty - June 5, 2013 | Tickers: AAPL, PNC, ALL, UTX, USB
We have been going through the most recent round of quarterly 13F filings from hedge funds such as billionaire Ken Griffin’s Citadel Investment Group, which discloses many of these funds’ long equity holdings as of the end of March. Even though this information is a bit old, there are still a couple ways in which we believe investors can use it. For one, we have found that the most more »
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5 Reasons This Bank Should Sell For More Than Book Value
By Chad Henage - May 29, 2013 | Tickers: BAC, FITB, PNC, USB
I don't always have the time to check out a stock that sounds interesting right away. I keep a watch list of stocks on hand, so I can go back later, and see if the company deserves my attention. In an article by Sean Williams of The Motley Fool, he mentioned Fifth Third (NASDAQ: FITB) as a bank that was doing well. I knew that I wasn't following more »
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Goldman's Dividend Picks: Cars, Banks, and Oil
By Timothy Green - May 28, 2013 | Tickers: BP, CVX, F, USB
Goldman Sachs recently became the most bullish broker on Wall Street when it increased its year-end price target on the S&P 500 to 1,750. Trying to predict future stock prices is often a fruitless endeavor, so I don't take these price targets seriously. But Goldman also recommended dividend stocks as among the few attractive income-generating opportunities available today. In a previous article I went through three of more »
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Warren Buffett’s Cheap Stock Picks
By Meena Krishnamsetty - May 28, 2013 | Tickers: COP, GM, PSX, USB, WFC
Several weeks after the end of each quarter, hedge funds and other major investors such as Warren Buffett’s Berkshire Hathaway file 13Fs with the SEC, disclosing many of their long equity positions as of the end of that quarter; check out Berkshire's most recent 13F on the SEC's website. Our database tracks hundreds of 13F filings, with us using the included information to develop investing strategies (for more »
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Can This Bank's Strengths Offset These Two Concerns?
By Chad Henage - May 22, 2013 | Tickers: BBT, STI, USB, WFC
When I came across U.S. Bancorp (NYSE: USB) last year, I couldn't believe that I had been ignoring one of the best big banks in the country. The company's loan and deposit growth matched up well to any of their peers, and their credit quality was good. I've kept up with the company through their earnings reports, and there are two concerns that have me worried more »
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This Bank Needs to Turn Over More Rocks
By Chad Henage - May 22, 2013 | Tickers: BBT, PNC, STI, USB
I'm a big fan of Peter Lynch, and one statement that he made always sticks with me. He said that his stock picking method was all about turning over more rocks to find great companies -- in essence, if you don't try, you can't succeed. I'm wondering whether the bankers at SunTrust (NYSE: STI) need to be hit over the head with a rock to make this more »
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This Great Bank Needs To Focus on Its Strengths
By Chad Henage - May 20, 2013 | Tickers: BBT, JPM, USB, WFC
Sometimes banking is made more complicated than it needs to be. A successful bank can attract deposits, make loans, manage its credit quality, and be an excellent investment. While it's true that this business plan isn't very exciting, if there is one thing that is not needed in banking it's excitement. Usually when people get excited about a bank it means something bad happened. Unfortunately, one more »
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Should We Follow the CEO Sale of This Banking Stock?
By Anh HOANG - May 16, 2013 | Tickers: ASBC, TCB, USB
Several days ago, William Allen Copper, Chairman and CEO of TCF Financial Corporation (NYSE: TCB), sold around 500,000 shares of the company at an average price of $15 per share, with the total transaction worth $7.5 million. $15 a share price is just 2% lower than the company's 52-week high. Should investors follow his move to sell the stock? Let’s find out.
Most of TCF’s more »
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Can These 4 Large Western Banks Make You Money?
By Bill Edson - May 15, 2013 | Tickers: CMA, FRC, USB, WFC
I had thought that U.S. Bancorp's (NYSE: USB) impressive run over the past few years would finally come to an end with the close of 2012. Well, I was wrong, and in some ways its first quarter income, while lacking (barely) the double digit growth to which we had become accustomed, was as impressive as any.
For the first quarter, U.S. Bank reported profits of $1.43 more »
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Tax Reform and the Mortgage Interest Deduction: Hurting Home Sales
By Nate Wooley - April 29, 2013 | Tickers: BAC, JPM, USB, WFC
If Congress rescinds the mortgage interest deduction it will harm a growing housing recovery.
Whether that's good or not is another question. But there's no doubt in my mind that even something as small as limiting the amount that can be deducted will shrink the speed at which the housing – and economic – recovery occurs. It's the tricky part of trying to fix the federal spending problem: how more »
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US Banks Report Mixed Results With Consistent Expense Control Strategies
By Adnan Khan - April 28, 2013 | Tickers: C, JPM, USB, WFC
As the second quarter of the current year kicks off, most of the US money-center banks have already reported their performances for the first quarter of the current year. In this article, you will find the most consistent themes which were observed.
Challenging environment
The environment remained challenging for US banks to expand their top lines (revenue) and it appeared that banks with reliance on capital markets performed better in more »
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What Can You Bank On?
By Tyler Wofford - April 22, 2013 | Tickers: BAC, C, USB, WFC
In today's society, everyone uses banks. As profitable as they are, I often wonder how they aren't more profitable. Every person I know has a bank account, and the banks invest that money to in turn make more money. In this post, we will analyze a few banks with various market caps (some small and some large). Is there a bank that provides better value than the rest more »
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7 Charts Show Why This Bank Is Best of Breed
By Jay Jenkins - April 21, 2013 | Tickers: BAC, C, JPM, USB, WFC |
Wells Fargo (NYSE: WFC) is by and large considered the best in breed of all the major US banks. Warren Buffett is certainly an outspoken fan of the company. But outside of a few investment managers who periodically sing the bank's praises, Wells tends to stay out of the spotlight (which over the past five years is a definite positive, see here, here, and here for just a few more »
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Growth Driver for This Banking Giant
By Adnan Khan - April 19, 2013 | Tickers: C, JPM, USB, WFC
On April 16, US Bancorp (NYSE: USB) disclosed its first quarter performance. The bank enjoyed a strong quarter, reporting earnings that were in line with the expectations despite a revenue miss. The bank earned $0.73 per share, while it generated $4.87 billion in revenues during the first quarter of the current year. The remainder of this investment thesis aims to review the earnings and discover trends in the more »
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Bank of America Did Well Despite The Slight Miss On Earnings
By Alexander Cho - April 18, 2013 | Tickers: BAC, C, JPM, USB, WFC
Bank of America’s earnings missed analyst estimates. Bank of America reported earnings of $0.21 per share. Analysts on a consensus basis were expecting earnings of $0.22. Bank of America was the only bank among the systematically important banks to miss earnings. The decline in earnings came from the decline in revenues from its Consumer & Business Banking Segment. The company saw an increase in the amount of its more »
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