Our Part 2 on Goldman Sachs explores the certainty of achieving its return goals. Looks like the old existing businesses along investment banking and global markets are more compelling than the new initiatives in transaction/consumer banking.
Deutsche Bank hit its cost/capital goals, but revenue growth in strategic areas still rather elusive. Bumping along the bottom with some stabilization. Still Sell Stock, Bonds. Very High counterparty/regulatory risk.
GS Investor Day had much to say on its growth initiatives and investment spending to get there. Still, strong competition should be challenging from other bank/asset manager/FinTech brands across cards/consumer banking, transaction banking, mass market high net worth asset management .
WFC CEO Scharf asking for more time to straighten out the banking situation. Even after three years of restructuring and repositioning. We remain cautious with an eye on Investor Loans. Sell on Stock and benchmark Bonds. Counterparty risk is Medium level.
MS CEO Gorman made a strong case for future revenues growth with a conservative balance sheet. Still there is tough competition, but MS should hit its 5 year goals. Buy on Stock and benchmark bonds. Counterparty risk is Medium.
BAC scrambles to preserve NII as rates pressures take hold. Loan & deposit growth, client activity and ALM derivatives should help to boost NII towards 2H2020. Buy Bonds, Sell Stock, Low Counterparty Risk.
GS presents revised reporting, but all eyes are focused on upcoming investor day strategic plan unveiling. As 1MDB still lingers and casts a shadow on good news day. Maintain Buys on Stock and Bonds. Counterparty risk is Medium.
JPM knocked the cover off the performance ball in 2019 and expects strong results into 2020. Cards, Capital Markets top-notched. Rates pressures leak in, but loan volumes buffering. Buy Stock, Sell rich Bonds, Counterparty Risk Low.
Citi has trudged a long way towards respectability as a normal bank. Google JV can transform it into a powerhouse consumer lender and retail banker in US and importantly in its International presence. Buy Stock, Sell rich Bonds, Counterparty Risk improves to Medium.
PNC reviewed its consumer and middle market banking initiatives. Trying to build out its digital and physical platforms. We explore the M&A buy case given the industry merger dynamics and competitive threats from Big Bank, FinTech and Big Tech.