NEW YORK - Wells Fargo the 4th largest bank in the U.S. reported $3.4 billion of profit, $3.2 billion applicable to common shareholders or 61 cents a share. U.S. Bancorp the 5th largest bank in the U.S. reported net income of $974 million or 49 cents a share. Nonperforming assets decreased to $5 billion from $5.4.
Both banks achieved excellent results yet their stocks would say that they are Citigroup. USB beat analyst expectations and showed loan growth something Wall Street usually focuses on. While, WFC showed nonperfomring loans decline for the first time since the merger with Wachovia.
PNC Financial and BAC have also moved lower on this positive news. While, the one bank with negative news Citigroup has only moved marginally lower.
Wells and U.S. Bancorp are very richly priced compared to some of the other banks such as PNC Financial or Bank of America which may be contributing to their decline today. However all financials remain attractive at these levels. The banking system still has barely budged when it comes to their worth. This will likely change going forward.
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