Schwab leads list of banks expected to profit -2-
Comerica Inc. CMA 5.3% 9.8% 11.1 10.3 12.0 PNC Financial Services Group Inc. PNC 6.7% 13.0% 12.1 12.4 12.6 Valley National Bancorp VLY 7.2% 36.5% 9.3 9.3 11.6 American Express Co. AXP 8.7% 9.4% 17.6 16.2 14.8 Cadence Bank CADE 5.6% 6.4% 11.0 11.2 13.0 Citizens Financial Group Inc. CFG 5.0% 27.1% 10.2 9.7 11.1 Source: FactSet
You might need to scroll the table to see the right-most columns.
For Schwab, earnings per share are expected to increase 28% next year, while net interest income is expected to increase 18.6%.
Among the larger U.S. regional banks, KeyCorp (KEY) stands out, with expected increases of 42.4% for EPS and 20.4% for net interest income.
EPS for Banc of California (BANC) are expected to more than triple next year, as it moves on from extraordinary expenses as it reorganized following its acquisition of Western Pacific Bancorp in November 2023. The bank's 2024 earnings have also been lowered by markdowns ahead of the sale of loans secured by rental properties in its CIVIC unit in the second quarter. That loan sale was completed during the second quarter for net proceeds of $1.9 billion, which boosted the bank's liquidity and capital ratios.
Here is a summary of opinion about the group among analysts polled by FactSet:
Bank Ticker Share "buy" ratings Share neutral ratings Share "sell" ratings Oct. 3 price Consensus price target Implied 12-month upside potential Charles Schwab Corp. SCHW 55% 36% 9% $63.40 $71.68 13% Ally Financial Inc. ALLY 48% 43% 9% $34.46 $40.65 18% UMB Financial Corp. UMBF 83% 17% 0% $101.98 $117.67 15% KeyCorp KEY 58% 42% 0% $16.37 $18.37 12% Banc of California Inc. BANC 60% 40% 0% $13.87 $16.25 17% Prosperity Bancshares Inc. PB 75% 19% 6% $70.06 $80.47 15% Pinnacle Financial Partners Inc. PNFP 58% 42% 0% $92.95 $107.09 15% United Bankshares Inc. UBSI 20% 80% 0% $35.53 $41.00 15% BankUnited Inc. BKU 17% 75% 8% $34.88 $38.88 11% Comerica Inc. CMA 40% 48% 12% $58.68 $60.35 3% PNC Financial Services Group Inc. PNC 61% 30% 9% $178.39 $191.94 8% Valley National Bancorp VLY 27% 64% 9% $8.75 $9.20 5% American Express Co. AXP 43% 53% 4% $268.59 $262.75 -2% Cadence Bank CADE 50% 50% 0% $30.63 $36.13 18% Citizens Financial Group Inc. CFG 50% 50% 0% $40.03 $45.35 13% Source: FactSet
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