Citi is looking more like the "Comeback Kid" of banking as its loan growth and credit quality have normalized. We still want to monitor credit performance a bit longer, but it was an impressive quarter. Buy Stock and intermediate-term Bonds. Citi Citi Citi Citi Citi Citi Citi Citi
WFC is far from the bank pack leader that it used to be for most of the post-crisis years since the sales practice scandal unfolded. Top mgt. still in denial as economic earnings stats erode. We explain the swaps strategy to hide the weakness. Still, Buy Stock & Bonds on lower valuations. WFC WFC WFC WFC WFC WFC WFC WFC
JPMorgan posted another good quarter of growth across the franchise. ALM seems superior to the other big banks and credit costs subdued, but we track some lagged softness. Buy Stock and most benchmark Bonds.JPM JPM JPM JPM JPM JPM JPM JPM
JPM mentioned Jeff Bezos & Amazon numerous times aligning with the e-supermarket behemoth. Digital and Millennials are Everything & Everywhere and JPM seeks its out-sized share of the profits. We review. JPM JPM JPM JPM JPM JPM JPM
AmEx has a new CEO, but faces old risks as the high end credit card spender is the most sought after by big bank & technology mobile wallet competitors. Sell across capital structure with stock overvalued & bond spreads tight. Counterparty & regulatory risks are low. AXP AXP AXP AXP AXP AXP AXP
Comerica illustrates the power of Fed rate hikes to its Net Interest Income growth as loan volumes were still tepid. Move to Buy on Stock & Buy on Bonds. Risk-reg is low. CMA CMA CMA CMA CMA CMA CMA
BNP showed more revenues progress in 2017, but hampered by low rates in Europe. Recent equity volatility has backed up some spreads leading to a Buy on 3Y debt. Stock still a Sell. BNP BNP BNP BNP BNP BNP BNP
DB continues to underwhelm and more pressures on CEO to get it done or move on. In-country consolidation merger with Commerzbank best course to create growth drivers. Sell on most of capital structure. DB DB DB DB DB DB DB
Big northern regional banks also enjoyed NIM expansion like their southern regional peers. More loan growth in commercial lease and commercial real estate. We review KEY, FITB, CMA.
Big southern regional banks benefited from net interest margin expansion while loan growth was largely disappointing. More Fed rate hikes should continue that earnings/EPS progress. We review BB&T, Regions & SunTrust.