Volatility in Regional Banking Stocks Fails to Reflect Improved Company Fundamentals
The Paragon Report Provides Equity Research on Regions Financial & SunTrust Banks
(firmenpresse) - NEW YORK, NY -- (Marketwire) -- 09/14/11 -- The Paragon Report examines investing opportunities in the Regional Banking Sector and provides equity research on Regions Financial Corporation (NYSE: RF) and SunTrust Banks, Inc. (NYSE: STI). Access to the full company reports can be found at:
While regional banking stocks have been exceptionally volatile of late, companies in the sector have posted strong earnings over the past several quarters thanks to improving credit which allows them to release loan loss provisions to earnings. The Federal Deposit Insurance Corporation (FDIC) explains that banks are posting stronger profits despite weak revenues due to stronger balance sheets and better capital positions. The FDIC said the banking institutions it insures recorded $28.8 billion in net income over the April-June period, up 38 percent year-on-year. The increase marked the eighth straight quarter in which earnings moved in a positive direction, although revenue fell for the second quarter in a row.
Theoretically, the low interest rate environment -- which the Federal Reserve has insisted will remain intact until at least 2013 -- is intended to encourage the debt appetites of businesses and consumers. However, loan growth continues to lag in the regional banking space.
The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the regional banking sector register with us free at and get exclusive access to our numerous stock reports and industry newsletters.
For the second quarter Regions Financial said loan-loss provisions were reduced to $398 million from $651 million a year earlier. Net charge-offs were 2.71 percent of average loans, compared with 3 percent a year ago.
Reflecting the company's improved financial position, last month SunTrust Banks hiked its annual dividend a whopping 400 percent. The company now pays an annual dividend of 20 cents for a yield of around 1.10 percent.
The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at
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Datum: 14.09.2011 - 17:00 Uhr
Sprache: Deutsch
News-ID 66029
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Commercial & Investment Banking
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