On Wall Street, it is all about expectations. Suntrust Banks’ (STI) earnings were dismal, but at least beat Street estimates by one penny per share and the stock rose 5% . Fifth Third Bancorp’s (FITB) earnings were solid, but its stock was pummeled because it missed estimates, by a penny a share. Unlike the other two regional banks who reported earnings growth, Comerica Bank’s (CMA) earnings were essentially flat, but met Street expectations and its stock price rose 3%. I had hoped many of these banks would be seeing some growth in earning assets, but it will take further growth from the economy for that to occur. In the meantime, I will analyze three more big regionals that have reported earnings.
Suntrust Banks, Inc.
Suntrust is a leading regional bank, and the country’s 12th largest overall, with $177 billion in assets, and a footprint across much of the South and Mid Atlantic states. The bank arose in the 1980s upon the merger of one of Georgia’s largest banks with one of Florida’s. These two states still held the bulk of Suntrust’s assets when the mortgage crisis hit, and Suntrust has yet really to recover.
Suntrust released earnings on January 20th. I found the earnings generally disappointing. Wall Street was far more impressed, and has bid the stock up about 5% to just over $21 per share. Its 52-week range is from $33.14 to $15.79, and it has a market capitalization of $11.3 billion. To continue reading, click here.