New York Mellon (NYSE:BK) will continue to have their margins under pressure, according to Barclays (NYSE:BCS), even though operating leverage has slightly improved in the fourth quarter of 2010.
Barclays says, "Bottom line, while we are encouraged by BK's return to posting modest operating leverage in 4Q10, we look for its recent margin pressure to continue amid the current low rate environment and dampen a portion of the earnings leverage that naturally arises from its recent new business wins. A difficult comparison with the seasonally strong 4Q is something to consider near term. Still, we are hopeful positive operating leverage can persist as expense savings offset what is typically a seasonally weak fee income performance.
"Following BK's 4Q10 results, we are reducing our 2011 EPS estimate to $2.45 from $2.60 to largely reflect a lower net interest margin assumption near-term as short-term rates remain low. Our inaugural 2012 EPS estimate is $2.80."
Barclays reiterates an "Overweight" rating on Bank of New York Mellon (BK), which closed Thursday at $31.63, up $0.15, or 0.48 percent. Barclays has a price target of $38 on the bank.
Showing posts with label New York Mellon. Show all posts
Showing posts with label New York Mellon. Show all posts
Friday, January 21, 2011
Friday, November 19, 2010
Wells Fargo (NYSE:WFC), US Bancorp (NYSE:USB), PNC (NYSE:PNC) and JPMorgan (NYSE:JPM) Could Raise Dividends in First Quarter
Commenting on the growing interest in banks starting to return capital to shareholders via dividends again, Goldman Sachs (NYSE:GS) said the banks in the strongest position and allowed to do that the soonest are Wells Fargo (NYSE:WFC), US Bancorp (NYSE:USB), PNC (NYSE:PNC) and JPMorgan (NYSE:JPM).
All of these banks could announce a quarterly dividend in the first quarter if they choose to go that route. If one of them do it, for competitive reasons, all of them would probably take the leap.
On Wednesday the Federal Reserve laid out the parameters for banks who are looking to offer or increase dividends.
Even though some banks fall within the guidelines, Goldman said dividends, even if offered or increased, will fall far below their former levels in the short term from the banks.
Goldman estimates a payout ratio of about 40 percent in relationship to former dividend payouts.
Bank of New York Mellon (NSYE:BK) and State Street (NYSE:STT) are also banks which also are allowede increase their dividends if they choose to.
All of these banks could announce a quarterly dividend in the first quarter if they choose to go that route. If one of them do it, for competitive reasons, all of them would probably take the leap.
On Wednesday the Federal Reserve laid out the parameters for banks who are looking to offer or increase dividends.
Even though some banks fall within the guidelines, Goldman said dividends, even if offered or increased, will fall far below their former levels in the short term from the banks.
Goldman estimates a payout ratio of about 40 percent in relationship to former dividend payouts.
Bank of New York Mellon (NSYE:BK) and State Street (NYSE:STT) are also banks which also are allowede increase their dividends if they choose to.
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