Truist beats consensus but is challenged to complete its merger integration given Covid constraints. Investment banking and insurance were the drivers. Sell on Stock & benchmark Bonds. Systemic risk Very Low. Counterparty risk Low.
USB takes a more conservative reserve stance as only regional not to reslease. Looking for gradual economic pickup for earnings growth and to lift its payments business. On the stock buyback trail as well. Buy Stock, Sell benchmark bonds. Systemic risk is Very Low and counterparty risk Low.
Key had a record revenues year driven by investment banking and consumer mortgage and fintech generated consumer loans. With attractive financial metrics we move to a Buy on the Stock. Still a Sell on rich benchmark bonds. Sytemic risk Low. Counterparty risk Low-to-Medium.
Fifth Third seems to have run out of gas as it lacks growth drivers and is reliant on macro forces for potetential revenues lift. Remain a Sell on the stock and Sell on benchmark bonds. Sytemic and counterparty risks are Low.
CFG seems to be in another optimistic world of economic rebound, buybacks and being a buyer in the M&A world. We are more pessimistic and are a Sell on Stock and benchmark bonds. Systemic risk is low and counterparty risk is Low-to-Medium.
Goldman Sachs had an explosive 4Q20 as its equities machine pumped out windfall gains in underwriting and trading. Still, it made good progress on its strategic targets. We move to Buy on Stock, maintain Sell on benchmark bonds. Systemic and counterparty risk is Medium.
BAC has lots of deposit powder to put to work as it waits for higher rates, a steeper yield curve, and economic recovery. Leans on stock buybacks to keep stock going. Buy Stock, Sell on benchmark bonds, Low systemic risk. Counterparty risk Medium.
PNC in deal closing flight pattern as it waits for the BBVA USA deal to close in the summer. Still experiencing rate pressures as most banks are, but without a stock buyback route. We are Neutral on Stock, Sell on benchmark bonds. Systemic risk Very Low. Counterparty risk Low.
JPMorgan gave its 2021 outlook in its 4Q20 release and is looking for greater technological prowess with commensurate investment spending. Needs to compete against Big Tech, growing FinTech players and foreign bank competition mostly from China banks. Move to Buy on Stock, Sell on benchmark bonds. Regulatory and counterparty risks decline to Very Low and Low, respectively with vaccine rollouts.
Citi is playing three-card monte on it operating/risk management overhaul as it trys to get the focus on the new CEO, instead of the breakdown in its risk mgt and infrastructure needs. Sell on Stock and benchmark Bonds. Regulatory & counterparty risk back to High.