This is one of my earlier posts and I think it shows that some banks are indeed giving their shareholders a better return in the last five years.
A week or two ago someone had mentioned the returns on stock share prices in roughly the last five years and what was a fair comparison to BBT. It was never decided what a fair comparison would be. In the WSJ on Friday October 28th there was a list of some of the top 15 banks and they used net income and total asset value. From the list I chose the two above and the two below BBT for the comparison. This comparison is based on the closing price 12/31/1998 and the closing price 10/31/2003. #11 FITB +23.5 % #12 STI -12.3% #13 BBT -4.1% #14 GDW +232% #15 PNC -.008% From the above it appears out bank has only out performed one of the other four in this peer group.It will be real interesting to see who they use in their annual proxy statement as their peer group. Wonder if they will include GDW in the proxy statement as one of their peer group. Yes, that is a 232% increase from $30.25 to $100.43. The above figures are from AOL charts.
Jim, BBT peer group includes:Amsouth,Comerica,Fifth third,Huntington,Keycorp,National City,PNC,Regions, Southtrust,Suntrust, Union Planters,& Unionbancal.
FOR THE PERIOD '98 - '02 BB&T OUTPERFORMED THE PEER GROUP AND THE S&P 500: $100 INVESTED WITH BB&T= TOTAL RETURN OF 131.8; PEER GROUP 105.01; S&P 97.1
This is the SEC sanctioned peer group. You can always put a group of apples and oranges together but they aren't peers. And you can always find some stock in hindsight that performed better than another. The challenge for investors is to pick 'em in advance, not looking in the rear view mirror.
Jim, GDW is not a peer. It's a thrift and in a completely different market. Suntrust, Southtrust, Amsouth, Regions, National City, Fifth Third and PNC are their real peers and compete with them in major markets. Is BBT underperforming these peers? I doubt it. Just my opinion.