![]() At the same time, the company has "selectively" grown its more profitable segments while facing "heavy pressure" from lower asset yields through 20.īarker stated that SunTrust should continue generating increased operating leverage as it invests in its higher-margin business lines and loan yields bounce off from the low levels. (NYSE: STI) as a "top idea." Shares were initiated with an Overweight rating and $50 price target.Īccording to Barker, SunTrust has successfully increased its operating efficiency over the past few years given its cost cutting initiatives. Related Link: Is Bank M&A Action On The Way?īarker also named SunTrust Banks, Inc. ![]() In addition, the company could benefit from being included in the S&P 500 – an event that could "happen at any time." MATTHEW BANKS PIPER JAFFRAY UPGRADEstores through the iPhone upgrade program.īarker added that if Citizens Financial is successful and hits its long-term targets, the company can grow its earnings per share at a rate of 20 percent-plus per year over the next few years. (NASDAQ: AAPL) to finance all iPhones sold in U.S. MATTHEW BANKS PIPER JAFFRAY SERIESIn fact, the company has a series of initiatives already in place to increase its operating leverage it stands to return more capital to investors than any other regional bank in the next few years.īarker noted the company's "outsized" loan growth portfolio stems from its relationship with Apple Inc. In addition, on a FY16E EPS basis, the stocks as a group are trading in-line with long-term average and "cheap" when compared to corporate debt yields.īarker named Citizens Financial as the top pick in the space, giving it an Overweight rating and $31 price target.Ĭitizens Financial operates more than 1,200 branches and 3,200 ATMs across 11 states and was a wholly owned subsidiary of The Royal Bank of Scotland (RBS) until the Scottish bank sold its final 20.9 percent stake in the company back in October 2015.Īccording to Barker, now that RBS is "out of the picture," Citizens Financial can "go back on the offensive" to increase its profit margins. Many companies have recognized that slow growth is "likely to continue." In order to generate "stable" earnings per share growth, management teams have become "more aggressive" with cost cutting and revenue initiatives.īarker added that he also expects many banks to increase their stock buybacks and dividend payments following the Federal Reserve's 2016 CCAR (comprehensive capital analysis and review) analysis.įinally, Barker pointed out that the current earnings yield of the group implies an equity risk premium of 3.4 percent to Moody's BBB corporate debt index. If the Marshall Islands go the route of a pure commodity currency, the value will be left up to the speculators.Related Link: Investors Are Pouring Into Bank ETFs Ahead Of Fed Meetingīarker continued that the current low rate environment along with "heavy" competition for loans has put "downward pressure" on these banks' top-lines. The biggest question remains likely what will they be worth when launched. The mid-Pacific nation intends a phased release of 24 million coins of which the independent and not-for-profit SOV Development Fund will receive 30 percent of the coins for the support of the SOV’s infrastructure. The scope of the experiment is relatively small since the country’s $212 million GDP in 2018 ranked 193rd out of 196 nations and which is roughly one-one-thousandth of bitcoin’s current market cap. ![]() Unlike other nations that already issued digital currencies, such as Venezuela and its moribund petro, the environment in the Marshall Islands reflect an almost perfect laboratory experiment. The Republic of the Marshall Islands plans to release its sovereign (SOV) digital currency, which will be legal tender for the mid-Pacific nation along with the US dollar that the country has used as its currency since its independence. ![]() ![]() There is a wonderful experiment regarding digital currencies backed by central banks that will provide other central bankers with tremendous data. Other nations can learn from The Marshall Islands’ cryptocurrency experience. ![]()
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