Regional Banks Looking Strong as U.S. Bancorp and Comerica Inc. Post Strong Earnings
April 19, 2012 08:20 ET
Regional Banks Looking Strong as U.S. Bancorp and Comerica Inc. Post Strong Earnings
Five Star Equities Provides Stock Research on U.S. Bancorp and Comerica Incorporated
NEW YORK, NY--(Marketwire - Apr 19, 2012) - The Regional Banking Industry have been a hotbed for investors, as increased lending and better loan performance have led to renewed confidence in the Industry. The SPDR S&P Regional Banking ETF (KRE) has surged over fourteen percent year-to-date. Five Star Equities examines the outlook for companies in the Regional Banking Industry and provides equity research on U.S. Bancorp (
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U.S. Bancorp and Comerica Inc. have posted earnings gains of more than 25 percent in the first-quarter. This has reinforced the opinion that regional banks have been recovering at a better rate than their larger peers. Keefe Bruyette & Woods noted recently that regional banks have been trading around or above book value, while the big banks trade at a discount to book.
"So many banks went belly up during the crisis that the regional and community banks that are left are in much stronger condition to pick up market share now that lending is picking up," said Scott Siefers, head of equity research at Sandler O'Neill.
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U.S. Bancorp recently reported net income of $1,338 million for the first quarter of 2012, 27.9 percent higher than the $1,046 million for the first quarter of 2011. Earnings for the first quarter of 2012 were driven by year-over-year growth in total net revenue and a lower provision for credit losses.
Comerica Incorporated recently reported first quarter 2012 net income of $130 million, an increase of $34 million compared to $96 million for the fourth quarter 2011. "We were pleased by the continued growth in average total loans in the first quarter, driven by a $1.2 billion, or 5 percent, increase in average commercial loans," said Ralph W. Babb Jr., chairman and chief executive officer.
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