The Viola Risk Advisor "systemic risk" indicator shows Deutsche Bank's desperate situation. Based on this metric, it would take DB roughly 14 years to rebuild its capital shortfall with core operating earnings compared to U.S. big banks (~2 years) & Canadian banks (~ 1 year).
MS turning around its Shareholder Value-Added trend to the positive which should boost its Stakeholder Stack values across equity & debt. Regulatory risk highest of majors.
Bank of America is hitting the profits wall yet again and resorting to its Swaps schemes to jumpstart sagging earning asset yields. Still, it was not willing to reveal the extent of that strategy. Negative EVA continues to rot its shareholder values. BAC BAC
Goldman Sachs posted mediocre results as the financial markets crapped out on them. Looking for revs stability in consumer finance. What?
PNC has done a good job as a big regional bank building its EVA and reducing systemic risk. Find value in bonds given low yield environment. Stock has legs too. PNC PNC
Wells Fargo has the strongest EVA & Systemic buffers of any bank in the U.S. & the world. We believe this supports a stock Buy and a Buy on its credit spectrum across debt/counterparty/regulatory. WFC WFC Wells Fargo Wells Fargo
Citi keeps honking its horn that it has turned the corner, but still it has glitches in Costco integration. EVA improving, but still digging out of a deep shareholder value ditch. Buy Stock for LT breakup value, select bonds.
CEO Dimon/CFO Lake reviewed adverse BREXIT impacts esp. knock-ons to the UK & EU economies. Viola Risk wants to know what the mounting probability of a failing European banking system will do to JPM’s counterparty risk exposures & the company’s actions to defend against negative effects. Importantly, what are the impacts to JPM’s stock price, funding spreads and regulatory systemic risk. We briefly review these factors.
Solid quarter with all businesses contributing to earnings growth. TD completed its operational review and posted a $349 million charge to pay for process redesign and business restructuring that should result in $600 million in annual cost savings starting 2017.
CIBC has reconfigured its corporate structure to be more responsive to retail and business banking clients. It hopes to boost its performance measures and respond to on-line lending opportunities presented by emerging “FinTech” players.