SYF is growing across multiple consumer sectors with tried and tested value proposition, which is innovation through digital products for entering fully into the online banking space.
STI is making strides on executing strategic objectives. Profitability is up, but still below better performing regional banking peers. Loan and deposit mix changes are helping interest margins and asset quality. Cost cutting is still major part of profitability drive.
Citi showed its cleanest quarter in several years, and some metric progression. Still mostly a cost cutting story with some revenues lift.
BBT had strong profitability after cutting through the noisy 1x items. Expect short-term rise in expenses with merger integrations to continue through rest of year.
Key led this quarter with strong investment banking and C&I loan growth. We question its sustainability as it deals with the low rates environment.
BAC had one of its cleanest quarters in a while with operating expenses the lowest since 2008. There seems to be some positive metric moves in credit card and mortgage originations, but we need more linked quarters before it appears sustainable.
USB is well capitalized with all capital ratios exceeding the well-capitalized Basel III ratios. Results were fairly clean with no one-offs or above-trend items.
PNC is battling the margin pressure blues similar to other regional banks. Some growth in specialized finance, but continues to invest for growth.
Recently, we listened to Bank of America speak at Deutsche Bank’s Global Financial Service Investor Conference where the big bank focused on its consumer banking strategy. The consumer bank has received renewed strategic focus as BAC gets past its mortgage putbacks & settlement woes. BAC sees more growth on the mass affluent side as the mass consumer sector continues to pull in its spending horns and save, while the former group continues to spend. BAC
JP Morgan’s strong mix of products and businesses provide the company with many levers to move earnings. Still, operating expense savings more than offset lower interest income from margin compression and lower fee income.