StockCall Research on BB&T and Synovus: Regional Bank Stocks Offer Good
LONDON, January 31, 2013
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
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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