The Zacks Analyst Blog Highlights: SunTrust Banks, Regions Financial, BB&T, Bank of America and JPMorgan Chase
CHICAGO, July 29, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the SunTrust Banks, Inc. (NYSE:STI-Free Report), Regions Financial Corporation (NYSE:RF-Free Report), BB&T Corp. (NYSE:BBT-Free Report), Bank of America Corporation (NYSE:BAC-Free Report) and JPMorgan Chase & Co. (NYSE:JPM-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
Banking Stocks, Post-Q2 Earnings
Second-quarter results took the spotlight for banking stocks last week. Though the banks were able to counter the tough industry backdrop to some extent, overall muted growth forecasts for the forthcoming quarters was reflected in the modest share price movement.
Further, efforts to remove litigation overhang as well as restructuring initiatives undertaken by the banks remained in focus as well. These developments will support the bank financials in the long run.
(Read developments in the week prior to the last one: Big Banks Impress in Q2 Earnings despite Legal Costs)
Recap of the Week's Major Happenings:
1.SunTrust Banks, Inc.'s (NYSE:STI-Free Report) second-quarter 2014 earnings of 81 cents per share surpassed the Zacks Consensus Estimate by 11.0%, backed by revenue growth. Better-than-expected results were driven by growth in top line and fall in provision for credit losses, partially offset by higher operating expenses. (Read More: SunTrust (STI) Beat Q2 Earnings on Healthy Revenue Growth).
2. Regions Financial Corporation's (NYSE:RF-Free Report) second-quarter 2014 earnings from continuing operations of 21 cents per share came in line with the Zacks Consensus Estimate. A strong capital position, reduced non-interest expenses and increase in loans and deposits were the positives for the quarter. However, lower top-line growth due to lack of credible improvement in the mortgage market as well as higher provision for loan losses remained the major concerns. (Read More: Regions Q2 Earnings in Line with Estimates, Rises Y/Y)
3. BB&T Corp.'s (NYSE:BBT-Free Report) second-quarter 2014 adjusted earnings per share of 71 cents lagged the Zacks Consensus Estimate of 75 cents. Notably, earnings for the reported quarter excluded mortgage and tax-related reserve adjustments of 12 cents per share, and merger-related and restructuring charges of 1 cent per share.
Lower-than-expected results were mainly due to a decline in revenues as well as a rise in non-interest expenses. Nevertheless, improvement in credit quality and capital ratios acted as the tailwinds while profitability ratios deteriorated. (Read More: BB&T Misses Q2 Earnings on Lower Revs and Higher Expenses).
4. Endless legal issues and penalties associated with improper business conducts continued to haunt Bank of America Corporation (NYSE:BAC-Free Report). BofA, in order to resolve the allegations of violating U.S. sanctions against drug-trafficking, will be paying $16.6 million as fine. (Read More: BofA Fined $16.6M for Violating Drug-Trafficking Sanctions).
5. In a drive to further prune its non-core businesses, JPMorgan Chase & Co. (NYSE:JPM-Free Report) has decided to vend nearly $1.3 billion loans and securities portfolio to Sankaty Advisors, the credit affiliate of Boston-based Bain Capital LLC, per a Financial Times report. The portfolio comprises of mezzanine loans in North America and Europe, and securities in Australia and Asia. The divestiture is in line with the bank's strategy to focus on primary operations as well as meet other regulatory requirements.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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