Superb credit quality and declining expenses led to a solid quarter for the narrow-moat bank.
PNC disappointed, but we saw positives in JPMorgan, Citi, and undervalued Wells' releases.
As legal issues fade, operating losses are down, and we are maintaining our fair value estimate for the wide-moat firm.
We’re raising our fair value estimate for the narrow-moat bank after the third-quarter earnings shows the firm firing on all cylinders.
Although the most rate-sensitive banks look fairly valued today, we see more opportunities in the broader sector today than at the start of the year.
The move to raise interest rates was expected, and we see no change to our long-term rate projections.
Nothing in the results materially changes our valuations.
We think these banks will see strong dividend growth and improving returns on equity.
We are maintaining our fair value estimate for the narrow-moat firm.
The bank is still looking to regain its footing, but the pessimism surrounding the stock is an opportunity for investors.
We are maintaining our fair value estimate for the firm after solid second-quarter results.
Though a few banks ran into issues, the overall restrictions imposed by the Fed will not be that significant.
Although all 35 major banks passed, results were on average worse than last year.
Iron Mountain's dividend yield is over 7% and we think the firm has a credible path to sustain, or even grow, its payout.
The regulatory relief fits our previous outlook and won’t materially change our bank valuations.
The near-term outlook for bank fundamentals is positive, but we see most of the firms we cover as fairly or overvalued.
We think this trust bank can expand margins over time, but shares look overvalued today.
While we expect fee growth to moderate over the longer term, the wide-moat firm should hit a return on equity just over 16% longer term, post tax reform.
The narrow-moat REIT has been funding its payout with debt and will need to execute on its acquisition ambitions to support its dividend.
Wells Fargo is still the standout in the sector.
Key themes from the Barclays Global Financial Services Conference include continued efforts to improve operating efficiency and increasing capital returns to shareholders.
CIBC is the most exposed bank to the lofty Canadian housing market, but we think there is enough margin of safety in its shares today to compensate for the risks.
Net interest margins should expand across the board as the U.S. regional banks recover from the historically low interest rates that have pressured profits for the past several years.
U.S. Bancorp is well positioned should a tax cut be implemented, but the rally in bank shares means it doesn't look like a bargain today.
Plus, Yacktman, Lynch, and Harriman share the importance of position sizing and insight on current holdings.