Why Neutral?
Sallie Mae�� first-quarter earnings of 61 cents per share marginally beat the Zacks Consensus Estimate and surpassed the prior-quarter figure by 11%. Over the last 60 days, the Zacks Consensus Estimate for 2013 increased 1% to $2.49, whereas for 2014, it dropped 0.4%. As a result, Sallie Mae currently carries a Zacks Rank #3 (Hold).
To boost the company�� long-term growth in the present economic environment, Sallie Mae announced the decision to split the company�� present business into 2 parts, namely an education loan management business and a consumer banking business.
We expect the company to benefit from this, as with the division, management�� focus will be on Sallie Mae�� growing consumer banking business and on tackling its education loan portfolios. Together, these are expected to aid bottom-line growth in the near term.
Top 5 Medical Companies To Own In Right Now: HSBC USA Inc (LSC)
HSBC USA Inc.( HSBC USA), incorporated on September 26, 1973, is a is an indirect wholly owned subsidiary of HSBC North America Holdings Inc. (HSBC North America), which is an indirect wholly owned subsidiary of HSBC Holdings plc (HSBC). HSBC USA�� principal business is to act as a holding company for its subsidiaries. The Company operates in four reportable segments: Retail Banking and Wealth Management (RBWM) (formerly Personal Financial Services), Commercial Banking (CMB), Global Banking and Markets and Private Banking (PB). In January 2011, the Company acquired Halbis Capital Management (USA) Inc (Halbis), an asset management business, from an affiliate, Halbis Capital Management (UK) Ltd. In April 2011, the Company completed the sale of its European Banknotes Business.
Through its subsidiaries, the Company offers a comprehensive range of personal and commercial banking products and related financial services. HSBC Bank USA, National Association (HSBC Bank USA), its principal United States (U.S) banking subsidiary, is a national banking association with banking branch offices and/or representative offices in 14 states and the District of Columbia. In addition to its domestic offices, the Company maintains foreign branch offices, subsidiaries and/or representative offices in the Caribbean, Europe, Asia, Latin America and Canada. Its customers include individuals, including net worth individuals, small businesses, corporations, institutions and governments. The Company also engages in mortgage banking and serve as an international dealer in derivative instruments denominated in U.S. dollars and other currencies, focusing on structuring of transactions to meet client�� needs.
Retail Banking and Wealth Management Segment
The Company Through its 461 branches (115 of which are in New York City), RBWM provides banking and wealth products and services, including personal loans, MasterCard and Visa credit card loans, deposits, branch services and financi! al planning products and services such as mutual funds, investments and insurance.
Commercial Banking Segment
The Company's Commercial banking Segment serves the growing number of united States companies that are increasingly in need of international banking and financial products and services as well as foreign companies in need of United States products and services. Commercial Banking offers comprehensive domestic and international services and banking, insurance and investment products to companies, government entities and non-profit organizations, with a particular emphasis on geographical collaboration to meet the banking needs of its international business customers. Commercial banking provides loan and deposit products, payments and cash management services, merchant services, trade and supply chain, corporate finance, global markets and risk advisory products and services to small businesses and middle-market corporations, including specialized products such as real estate financing. Commercial banking also offers various credit and trade related products such as standby facilities, performance guarantees and acceptances
Global Banking and Markets Segment
The Company�� Global Banking and Markets business segment supports HSBC�� emerging markets-led and financing-focused global strategy by leveraging HSBC Group advantages and scale, strength in developed and emerging markets and Global Markets products in order to focus on delivering international products to the United States clients and local products to international clients, with New York as the hub for the Americas business, including Canada and Latin America. Global Banking and Markets provides tailored financial solutions to government, corporate and institutional clients as well as private investors worldwide.Managed as a global business, Global Banking and Markets clients are served by sector-focused teams that bring together relationship managers and product specialists to dev! elop fina! ncial solutions that meet individual client needs.
Private Banking Segment
The Company�� private banking provides private banking and trustee services to high net worth individuals and families with local and international needs. Accessing the suitable products from the marketplace, private bank works with its clients to offer both traditional and new ways to manage and preserve wealth while optimizing returns. Private bank offers a range of wealth management and specialist advisory services, including banking, liquidity management, investment services, custody services, tailored lending, wealth planning, trust and fiduciary services, insurance, family wealth and philanthropy advisory services.
Advisors' Opinion:- [By DCResearch]
The opportunity exists because the once-thriving secondary/tertiary life settlement market has been all but abandoned by institutional investors, scared off by litigious insurers like Phoenix and a lack of manufactured policies. My research indicates that this undue pessimism towards life settlement contracts (LSC) has begun to reverse itself, or has at least stabilized. Investors who are far smarter than me are snapping up contracts and policies, seeking to capitalize on the uncorrelated, and excessive, IRRs. These investors seem to agree with our thesis that life settlements should outperform most other asset classes over a long enough time period.
Best Bank Companies To Own For 2014: Westpac Banking Corp (WEBNF)
Westpac Banking Corporation is a banking company. It operates through three divisions: Australian Financial Services (AFS), Westpac Institutional Bank (WIB) and Westpac New Zealand. AFS consists of Westpac�� retail and business banking operations in Australia, and includes Westpac Retail & Business Banking (Westpac RBB), St.George Banking Group and BT Financial Group Australia (BFTG). Westpac RBB is responsible for sales and service for consumer, small-to-medium enterprise customers and commercial customers under the Westpac brands. St.George is responsible for sales, and service for its consumer, business and corporate customers in Australia under brands, such as St.George and BankSA. BTFG is Westpac�� Australian wealth management division. In January 2014, the Company completed the acquisition of Lloyds Banking Group Plc�� Australian asset finance business, Capital Finance Australia Limited, and its Australian corporate loan portfolio, BOS International (Australia) Ltd. Advisors' Opinion:- [By MARKETWATCH]
LOS ANGELES (MarketWatch) -- Australian stocks advanced Tuesday, as gains in market heavyweight BHP Billiton Ltd. helped push the equity benchmark toward its sixth consecutive win. The S&P/ASX 200 index (AU:XJO) rose 0.2% to 5,364.90 on strength in the mining group after BHP Billiton (AU:BHP) (BHP) raised its fiscal-year forecast for iron-ore production to 212 million metric tons following record output from its mining site in Australia's Pilbara region. BHP shares climbed 1.7%, iron-ore producer Fortescue Metals Group Ltd. (AU:FMG) (FSUMF) rose 0.9% and Rio Tinto Ltd. (AU:RIO) (RIO) picked up 0.4%. Finance issues mostly higher as well, with Westpac Banking Corp. (AU:WBC) (WEBNF) up 0.6%. But underperforming the benchmark were shares of David Jones Ltd. (AU:DJS) (DVDJF) , down 2.8% after the upscale retailer unexpectedly said late Monday its Chief Executive Paul Zahra plans to step down after three years in the position.
- [By MARKETWATCH]
LOS ANGELES (MarketWatch) -- Australia stocks rose early Thursday, with miners leading the way higher after a positive production report from Rio Tinto Ltd. (AU:RIO) (RIO) , while overall sentiment got a lift from U.S. gains overnight. The S&P/ASX 200 (AU:XJO) improved by 0.6% to 5,274.30, with shares of Rio Tinto rising 2.2% after reporting record high iron-ore shipments for 2013 and a sold gain for copper output. Rio's peers also advanced, with BHP Billiton Ltd. (AU:BHP) (BHP) up 1.7%, Fortescue Metals Group Ltd. (AU:FMG) (FSUMF) ahead by 3.2%, and Oz Minerals Ltd. (AU:OZL) (OZMLF) adding 2.4%. Among the gold producers, Newcrest Mining Ltd. (AU:NCM) (NCMGF) surged 7.2% as J.P. Morgan raised its rating on the shares to overweight from neutral. Banks weren't as lucky, however, with Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) down 0.3%, while Westpac Banking Corp. (AU:WBC) (WEBNF) and Commonwealth Bank of Australia (AU:CBA) (CBAUF) lost 0.7% each as Citibank downgraded the trio t
- [By MARKETWATCH]
LOS ANGELES (MarketWatch) -- Australian stocks started Monday trade higher, with the S&P/ASX 200 (AU:XJO) up 0.8% at 5,206.40 after a strong finish for Wall Street at the end of last week. Resource shares got a lift from gains for commodities prices since the previous trading session, with strong advances for gold and copper and a more than 2% rise for New York-traded crude-oil futures. Among the leading gainers, Rio Tinto Ltd. (AU:RIO) (RIO) added 1.2%, Oil Search Ltd. (AU:OSH) (OISHF) climbed 1.3%, and gold miners Newcrest Mining Ltd. (AU:NCM) (NCMGF) and Evolution Mining Ltd. (AU:EVN) (CAHPF) improved by 3.9% and 6.4%, respectively. The heavily weighted banking sector also enjoyed solid gains, with Commonwealth Bank of Australia (AU:CBA) (CBAUF) up 1%, Westpac Banking Corp. (AU:WBC) (WEBNF) trading 1.3% higher, and National Australia Bank Ltd. (AU:NAB) (NAUBF) rising 1.1% as the U.K.'s Sunday Times reported the lender is considering a 拢2 billion ($3.3 billion) float of its British operations, which the report said had dragged on NAB's results in recent years.
Best Bank Companies To Own For 2014: Deutsche Bank AG (LBND)
Deutsche Bank AG is a global investment bank. The Company offers a variety of investment, financial and related products and services to private individuals, corporate entities and institutional clients around the world. The Company operates through such divisions as: Private and Business Clients, Asset and Wealth Management, Corporate Banking and Securities, Global Transaction Banking and Non-Core Operations Unit. Deutsche Bank AG is active domestically and in various countries, through the network of numerous branches. In February 2014, the Company and its related bodies corporate ceases to a share holder in the capital of the Company. Advisors' Opinion:- [By Donald van Deventer]
Long-duration Treasury Exchange-Traded Funds: (TLH), , (IEF), (DTYL), (DLBL), (ILTB), (TENZ), (ITE), (TLO), (EDV), (VGIT), (VGLT), (TMF), (TYD), (LBND), (UBT), (UST), (TMV), (TYO), (DSTJ), (DSXJ), (SBND), (PST), (DTYS), (DLBS), (TBF), (TTT), (TYNS), (TYBS), (TBX).
Best Bank Companies To Own For 2014: Bank Rakyat Indonesia Persero Tbk PT (BKRKY)
PT Bank Rakyat Indonesia (Persero) Tbk (the Bank) is an Indonesia-based financial institution. It is engaged in banking activities and its products and services include savings, loans, credits, treasury products and investment banking. It provides service to micro, small and middle enterprise (SME). Besides that, the Bank also engages in providing consumer finance as well as e-banking services which can be accessed by Internet, telephone, Short Message Service (SMS) and other e-channel service such as Cash Deposit Machine (CDM), Electronic Data Capture (EDC), and KiosK. The Bank's subsidiaries are PT Bank BRISyariah, PT Bank Agroniaga Tbk and BRIngin Remittance Co. Ltd. The Bank has an international branch in Cayman Islands and two representative offices in New York and Hong Kong. Advisors' Opinion:- [By Holly LaFon]
Bank Rakyat Indonesia (BKRKY) (Persero) Tbk PT, a leading commercial bank and microfinance lender in Indonesia, declined in the third quarter. Recent stock performance was largely attributable to a significant drop in the Indonesian Rupiah. While we believe the company's fundamentals and competitive position remain sound, the country suffered a larger than expected deterioration in its current account deficit, leading to a weaker currency and higher interest rates, which negatively impacted its local equity market. (Michael Kass)
Best Bank Companies To Own For 2014: Credit Lyonnais SA (CLP)
Cr茅dit Lyonnais Group is engaged in retail financial services, asset management and investment and corporate banking. The Company's banking activities include personal banking, professional and small business banking, e-banking and middle market banking. The Company offers cash management and associated services, international business, advisory services and corporate finance. Its asset management services are involved in mutual funds, institutional clients and defining the investment strategy for the domestic private banking unit. The Company also offers structured finance, export finance and international trade finance. Cr茅dit Lyonnais has a network of 1,834 branches in France and operations in 55 countries worldwide. Advisors' Opinion:- [By Sean Williams]
Another growth driver looks to be its pending $8.6 billion merger with Colonial Properties Trust (NYSE: CLP ) . The combined entity would become the second-largest U.S. based residential REIT, with 85,000 apartment units. Opposition to the deal from some of Colonial's shareholders does exist, but comparatively speaking, MAA is in great shape either way. It already has a high occupancy rate, and the addition of Colonial's properties would only further serve to enhance its rental pricing power.
- [By Rich Duprey]
Apartment-only real estate investment trust�Mid-America Apartment Communities� (NYSE: MAA ) once again is snapping up properties, this time announcing Monday that it is adding�multifamily housing operator Colonial Properties Trust (NYSE: CLP ) to its portfolio in an $8.6 billion transaction.�
- [By Rich Duprey]
Multifamily real estate investment trust�Colonial Properties Trust (NYSE: CLP ) announced yesterday its third-quarter dividend of $0.21 per share, the same rate it's paid for the past two quarters after raising the payout 17% from $0.18 per share.
Best Bank Companies To Own For 2014: Washington Federal Inc (WAFD)
Washington Federal, Inc., incorporated on November 15, 1994, is a bank holding company, which conducts its operations through a federally-insured savings association subsidiary, Washington Federal (Bank). The Bank is a federal savings association. The business of the Bank consists of attracting deposits from the general public and investing these funds in loans of various types, including first lien mortgages on single-family dwellings, construction loans, land acquisition and development loans, loans on multi-family and other income producing properties, home equity loans and business loans. It also invests in United States government and agency obligations and other investments permitted by applicable laws and regulations. As of September 30, 2013, Washington Federal had 182 full service branches located in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico and Texas. Through its subsidiaries, the Company is also engaged in real estate investment and insurance brokerage activities. The principal sources of funds for the Company's activities are retained earnings, loan repayments (including prepayments), net deposit inflows, repayments and sales of investments and borrowings. Washington Federal's principal sources of revenue are interest on loans and interest and dividends on investments. Its principal expenses are interest paid on deposits, credit costs, general and administrative expenses, interest on borrowings and income taxes. On October 31, 2012, South Valley Bancorp, Inc. merged with and into the Company, followed by the merger of South Valley's wholly owned subsidiary, South Valley Bank & Trust, into the Bank.
Lending Activities
As of September 30, 2013, the Company's net portfolio of loans totaled $7.5 billion representing approximately 58% of its total assets. The Company concentrates its lending activities on the origination of 30-year, fixed-rate mortgage loans, which are neither insured nor guaranteed by agencies of the United States government. Washin! gton Federal's lending activity is concentrated on the origination of loans secured by real estate, including long-term fixed-rate mortgage loans, adjustable-rate construction loans, adjustable-rate land development loans, fixed-rate multi-family loans and business loans.
The Company's lending activity is the origination of real estate mortgage loans to purchase or refinance single-family residences. The Company also originates a range of construction and land development loans, along with multi-family residential and commercial loans. As of September 30, 2013, single-family residential loans totaled $5.4 billion, or 67.2% of the Company's gross loan portfolio; construction- speculative loans totaled$131 million, or 1.6% of the Company's gross loan portfolio; construction - custom loans totaled $303 million, or 3.8% of the Company's gross loan portfolio; land acquisition and development loans totaled $82 million, or 1.0% of the Company's gross loan portfolio; land - consumer lot loans totaled $125 million, or 1.6% of the Company's gross loan portfolio; multi-family loans totaled $836 million, or 10.5% of the Company's gross loan portfolio; commercial real estate loans totaled $625 million, or 7.8% of the Company's gross loan portfolio; commercial and industrial loans totaled $326 million, or 4.1% of the Company's gross loan portfolio; home equity line of credit (HELOC) loans totaled $134 million, or 1.7% of the Company's gross loan portfolio and consumer loans totaled $55 million, or 0.7% of the Company's gross loan portfolio.
The Company originates 30 year fixed-rate loans secured by single-family residences. The Company originates construction loans to finance construction of single-family and multi-family residences, as well as commercial properties. Loans made to individuals for construction of their home generally are 30 year fixed rate loans. Multi-family residential (five or more dwelling units) loans are secured by multi-family rental properties, such as apartment build! ings.
!The Company makes various types of business loans to customers in its market area for working capital, acquiring real estate, equipment or other business purposes, such as acquisitions. The terms of these loans range from less than one year to a maximum of 10 years. Consumer loans are home improvement loans made through third party originators that bear interest at rates of 10% and higher.
Investment Activities
As a federal association, the Bank is obligated to maintain adequate liquidity and does so by holding cash and cash equivalents and by investing in securities. These investments include, among other things, certain certificates of deposit, repurchase agreements, bankers��acceptances, loans to financial institutions whose deposits are federally-insured, federal funds, United States government and agency obligations and mortgage-backed securities.
Sources of Funds
Deposits are the source of the Company�� funds for use in lending and other general business purposes. In addition to deposits, Washington Federal derives funds from loan repayments, advances from the Federal Home Loan Bank (FHLB) and other borrowings and from investment repayments and sales. The Company�� deposits are obtained from residents of Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico and Texas. The Company obtains advances from the FHLB upon the security of the FHLB capital stock it owns and certain of its loans, provided certain standards related to credit worthiness have been met. The Company also uses reverse repurchase agreements as a form of borrowing. Under reverse repurchase agreements, the Company sells an investment security to a dealer for a period of time and agrees to buy back that security at the end of the period and pay the dealer a stated interest rate for the use of the dealer's funds. The Company also offers two forms of repurchase agreements to its customers. One form has an interest rate, which floats like that of a money market d! eposit ac! count. The other form has a fixed rate and is offered in a minimum denomination of $100,000. Both forms are fully collateralized by securities. As of September 30, 2013, the Company had $46.1 million of such agreements outstanding.
Advisors' Opinion:- [By Brian Pacampara]
What: Shares of financial holding company Washington Federal (NASDAQ: WAFD ) climbed as high as 10% today after its quarterly results topped Wall Street expectations.�
- [By Eric Volkman]
Washington Federal (NASDAQ: WAFD ) is keeping its dividend level even as it effects a corporate transformation by the end of next month. The company has declared a quarterly distribution of $0.09 per share, to be paid on July 19 to shareholders of record as of July 5. That amount matches the firm's previous distribution, which was paid in April. Prior to that, it handed out a penny less at $0.08 per share.
Best Bank Companies To Own For 2014: Community Bank System Inc (CBU)
Community Bank System, Inc., incorporated on April 15, 1983, which wholly owns five subsidiaries: Community Bank, N.A. (the Bank), Benefit Plans Administrative Services, Inc. (BPAS), CFSI Closeout Corp. (CFSICC), First of Jermyn Realty Company, Inc. (FJRC) and Town & Country Agency LLC (T&C). The Bank operates as a community bank providing a range of banking and financial services to retail, commercial, and municipal customers. As of December 31, 2012, the Bank operates 179 full-service branches throughout 35 counties of Upstate New York, where it operates as Community Bank, N.A. and five counties of Northeastern Pennsylvania, where it is known as First Liberty Bank & Trust, offering a range of commercial and retail banking services. BPAS provides administration, consulting and actuarial services to sponsors of employee benefit plans. In December 2013, the Company announced that it has acquired eight branch-banking locations across its Northeast Pennsylvania markets from Bank of America, N.A.Five of the branches are located in Luzerne County, one is located in Lackawanna County and two are located in Carbon County.
On July 20, 2012, the Bank completed its acquisition of 16 retail branches in Central, Northern and Western New York from HSBC Bank USA, N.A. (HSBC), acquiring approximately $106 million in loans and $697 million of deposits. On September 7, 2012, it completed its acquisition of three branches in Western New York from First Niagara Bank, N.A. (First Niagara), acquiring approximately $54 million of loans and $101 million of deposits.
Lending Activities
As of December 31, 2012, the Bank�� loan portfolio included consumer mortgage loans, business lending, Consumer indirect, Consumer direct and Home equity. Consumer indirect and direct loans consist of personal loans originated both in the branch network and in automobile, marine and recreational vehicle dealerships. Approximately 68% of loans outstanding as of December 31, 2012, were made to consumers ! borrowing on an installment, line of credit or residential mortgage loan basis. The consumer mortgage portion of the Company�� loan portfolio is comprised of fixed (98%) and adjustable rate (2%) residential lending and includes no exposure to subprime, Alt-A or other higher-risk mortgage products. The combined total of general-purpose business lending, including agricultural-related and dealer floor plans, as well as mortgages on commercial property, is characterized as the Company�� business lending activity.
Investment Activities
As of December 31, 2012, the Bank�� investment securities included held-to-maturity, available-for-sale and Other securities. As of December 31, 2012, its held-to-maturity portfolio included U.S. Treasury and agency securities, Obligations of state and political subdivisions, Government agency mortgage-backed securities, Corporate debt securities and Other securities. Its Other Securities included Federal Home Loan Bank common stock, Federal Reserve Bank common stock and Other equity securities.
Sources of Funds
The Bank utilizes a variety of funding sources to support the earning asset base. Overall funding is comprised of three primary sources that possess a variety of maturity, stability, and price characteristics: deposits of individuals, partnerships and corporations (IPC deposits), municipal deposits that are collateralized for amounts not covered by FDIC insurance (public funds) and external borrowings. The various types of deposits offered by the Bank include Noninterest checking deposits, Interest checking deposits, Regular savings deposits, Money market deposits and Time deposits. Borrowing sources for the Company include the Federal Home Loan Bank of New York (FHLBNY) and Federal Reserve Bank of New York, as well as access to the brokered certificate of deposit (CD) and repurchase markets through relationships with primary market security dealers.
Subsidiary Activities
The Compan! y�� sub! sidiary, BPAS owns three subsidiaries, Benefit Plans Administrative Services LLC (BPA), a provider of defined contribution plan administration services; Harbridge Consulting Group LLC (Harbridge), a provider of actuarial and benefit consulting services, and Hand Benefits & Trust Company (HB&T), a provider of Collective Investment Fund administration and institutional trust services. HB&T owns two subsidiaries, Flex Corp. (Flex), a provider of administration, servicing and marketing of various flexible employee benefit programs and Hand Securities, Inc. (HSI), an introducing broker dealer. The Company also wholly owns two unconsolidated subsidiary business trusts formed for the purpose of issuing mandatorily redeemable preferred securities.
The Bank owns subsidiaries, such as CBNA Insurance Agency, Inc. (CBNA Insurance), CBNA Preferred Funding Corporation (PFC), CBNA Treasury Management Corporation (TMC), Community Investment Services, Inc. (CISI), First Liberty Service Corp. (FLSC), Nottingham Advisors, Inc. (Nottingham), Brilie Corporation (Brilie), and Western Catskill Realty, LLC (WCR). CBNA Insurance is a full-service insurance agency offering primarily property and casualty products. PFC primarily acts as an investor in residential real estate loans. TMC provides cash management, investment, and treasury services to the Bank. CISI provides broker-dealer and investment advisory services. FLSC provides banking-related services to the Pennsylvania branches of the Bank. Nottingham provides asset management services to individuals, corporate pension and profit sharing plans, and foundations. Brilie and WCR are inactive companies.
Advisors' Opinion:- [By GURUFOCUS]
Community Bank System Inc. (CBU) operates as the bank holding company for Community Bank, N.A. that provides banking and financial services to retail, commercial, and municipal customers. August 21st the company increased its quarterly dividend 3.7% to $0.28 per share. The dividend is payable October 10, 2013 to shareholders of record as of September 16, 2013. The yield based on the new payout is 3.3%.
No comments:
Post a Comment