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Bank Stock Roundup: Q3 Earnings at Tail End - COF Tops, FITB, STI, RF In-Line

All the major banks that reported third-quarter 2017 results over the last five trading days reported bottom-line growth. This was mainly driven by a rise in revenues attributable to higher net interest income and loan growth.

Moreover, margin pressure seems to be easing. Further, the rise in deposit balances helped drive organic growth at the banks. Banks were even able to control expense rise. All these led to positive price movement for the stocks over the last five trading sessions.

However, mortgage banking continued to disappoint along with muted investment banking performance. These were the primary reasons for lower non-interest income for the banks. Also, higher credit costs remained a headwind.



(Read: Bank Stock Roundup for the week ending Oct 20, 2017)

Important Earnings of the Week

1. SunTrust Banks, Inc.'s STI third-quarter 2017 earnings of $1.06 per share were in line the Zacks Consensus Estimate. Results were primarily driven by an increase in net interest income and a slight fall in operating expenses. However, a rise in provision for credit losses and lower non-interest income (mainly owing to mortgage banking woes) were the headwinds. (Read more: SunTrust Q3 Earnings In Line, Net Interest Income Up)

2. Regions Financial Corporation’s RF third-quarter 2017 earnings from continuing operations of 25 cents per share came in line with the Zacks Consensus Estimate. Easing margin pressure and lower expenses were the positives. Decline in non-interest income and a rise in provisions were the undermining factors. (Read more: Regions Financial's Q3 Earnings in Line, Costs Down)

3. Fifth Third Bancorp FITB reported third-quarter 2017 adjusted earnings per share of 48 cents in line with the Zacks Consensus Estimate. The adjusted figure excludes the impact of gain on the sale of Vantiv shares and charge related to the valuation of the Visa total return swap. Results were driven by an increase in net interest income, stable expenses and lower provisions. However, lower non-interest income was an undermining factor. (Read more: Fifth Third's Q3 Earnings & Revenues Meet Estimates)

4. Capital One Financial Corporation’s COF third-quarter 2017 adjusted earnings of $2.42 per share handily outpaced the Zacks Consensus Estimate of $2.15. Results benefited from higher revenues and easing margin pressure. However, increase in provisions and expenses acted as headwinds. (Read more: Capital One Stock Up on Q3 Earnings Beat, Costs Rise)

Price Performance

Here is how the seven major stocks performed:
 

Company

Last Week

6 months

JPM

2.2%

16.4%

BAC

2.1%

17.1%

WFC

1.3%

3.4%

C

0.4%

23.7%

COF

3.2%

12.5%

USB

0.4%

5.3%

PNC

0.7%

14.3%


In the last five trading sessions, Capital One and JPMorgan Chase & Co. JPM were the major gainers, with their shares rallying 3.2% and 2.2%, respectively. Bank of America Corp. BAC moved up 2.1%.

Citigroup Inc. C and BofA were the best performers over the last six months, with the banks’ shares jumping 23.7% and 17.1%, respectively. Also, shares of JPMorgan gained16.4%.

What’s Next?

In the coming five days, price performance of bank stocks is likely to follow a similar trend, unless there is any unexpected event.

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J P Morgan Chase & Co (JPM): Free Stock Analysis Report
 
SunTrust Banks, Inc. (STI): Free Stock Analysis Report
 
Fifth Third Bancorp (FITB): Free Stock Analysis Report
 
Citigroup Inc. (C): Free Stock Analysis Report
 
Bank of America Corporation (BAC): Free Stock Analysis Report
 
Regions Financial Corporation (RF): Free Stock Analysis Report
 
Capital One Financial Corporation (COF): Free Stock Analysis Report
 
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