StockCall Research on BB&T and Synovus: Regional Bank Stocks Offer Good Returns

Jan 31, 2013, 08:00 ET from

LONDON, January 31, 2013 /PRNewswire/ --

Banking sector performed well and reported healthy financial numbers this quarter. It was not only the big banks, but also the regional banks performed well. BB&T Corporation (NYSE: BBT) reported 29 percent higher earnings for the quarter and its revenue also beat consensus estimates. These results show that regional banks are benefiting from a turnaround in the economy and from the uptick in the housing sector. At the very same time, the stocks also look undervalued, offering a good entry point. Synovus Financial Corporation (NYSE: SNV) offered over 40 percent return in 2012 and is looking to perform well in the current year as well. StockCall research team has completed technical analysis on BB&T and Synovus Financial. Register today to download the free reports at

Synovus Plans to Repay TARP Funds

Synovus Financial Corporation [Free Report on SNV] (1) reported lukewarm quarterly results. It reported lower revenue at $320.1 million. Its quarterly net loss stood at 10 cents per share. Despite this disappointing figure, the bank is one of the most efficiently managed regional banks. It recently undertook bulk selling of its distressed assets, in order to improve its asset quality. The bank sold $545 million worth of junk assets. This sale will have positive impact on the company's future performance.

Another area of concern for the bank is its TARP repayment.  Synovus Financial management expects to make the repayments between second and fourth quarter of 2013. Interest rate for TARP will be increased to 9 percent in January 2014. This may increase the costs for the bank as it had received $968 million in TARP. Repayment will offer the bank more flexibility to operate. Housing crash of 2008 had deep impact on the bank's financials and the impact is still there to see. Lately, Synovus Financial has put itself back on track by managing its loan losses. Recent up spike in the housing sector also bids well for Synovus Financial. The stock is currently trading at P/E ratio of a mere 2.96 and it is also below its book value, making Synovus Financial an attractive portfolio candidate. Its 1.6 percent dividend yield is an added bonus.

BB&T Corporation Benefits from Housing Recovery

BB&T Corporation offers over 2.5 percent dividend yield and thus is an attractive income stock. Its management recently announced quarterly dividend of 23 cents per share, up from 22 cents per share it had paid in the previous quarter. The regional banking company announced positive results for its fourth quarter. However, the results were largely in-line with expectations. BB&T Corporation is taking steps to curtail its costs, and it has performed well in Q4 to cut its deposit costs. While major banks are cutting down their mortgage businesses, BB&T Corporation reported higher revenue from its housing mortgage division. It reported 71 percent increase in its mortgage banking revenue. Sign up now and view our free report on BB&T at

In the coming quarters, BB&T Corporation needs to watch out for growing competition. The banking company is planning to expand in markets like Texas. Such expansions can provide BB&T Corporation with newer avenues to increase its revenue and income. The regional bank also plans to focus more on commercial lending in order to boost its margins.


  1. Synovus Financial Corporation Technical Analysis [ ]

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