The end of the 2nd Qtr for '05 is fast approaching. When considering bank-wide revenues (interest and noninterest income) and a continued disciplined expense management strategy, I fully expect for BB&T to post a very strong earnings report.
BB&T has refrained from continuing any bank mergers and acquisition since 2003 and has stated no further bank mergers/acquisitions until 2006. This is providing an opportunity to obtain a very clear picture of the health (or lack thereof) of BB&T's core operations.
Loan growth for the 1st Qtr 2005 was 8.5% while noninterest income increased by 8.7%. My expectations will be for 2nd Qtr 2005 loan growth to exceed 14% with noninterest income growing by 11.0%. Hopefully, these two factors will propel 2nd Qtr net income to exceed 28% or more.
One of BB&T's challenges will be maintain a respectable net interest margin as we enter a period of increasing interest rates. A signficant decrease in the net interest margin will have a direct negative impact on Earnings Per Share. Hopefully, BB&T's loan portilio has a good mix of variable rate and fixed rate loans.
BB&T prides itself on keeping a very clean loan portfolio which all banks should focus upon. However, BB&T could benefit greatly by occasionally stepping out of the box to take on a little more risk in order to benefit in having a loan (i.e. an earning asset) which produces a higher interest rate spread.
The bottom line is BB&T needs to continue to produce a stronger quarterly performance. In my opinion, the fundamental ingredients are there. BB&T just needs to continue to execute their overall business plan with a few minor tweaks.
BBT's earnings estimates for the current quarter seems to be 75 cents and for the quarter ending Sept 05 appears to be 77 cents with estimates for the year of $3.02 a share.
What is your thinking or feeling on each of the above figures? I would like to know yours or anyone's else feeling on these estimates will they make them or are they high or low?
They have now missed two quarters estimates in a row. December 04 estimate was 76 cents and they came in at 75 cents a share. The March quarter estimate was 75 cents and they made 71 a share. With this being stated the question is if they have a really blow out quarter will that push the stock price up much or will it take at least two great quarters or more to push the price up above the current range?
<<BB&T has refrained from continuing any bank mergers and acquisition since 2003 and has stated no further bank mergers/acquisitions until 2006.>>
April 15, 2004
BB&T completes acquisition of Republic Bancshares Inc.
BB&T to Acquire Florida's Republic Bancshares Inc
WINSTON-SALEM, NC -- BB&T Corporation (NYSE: BBT) today said it plans to buy Republic Bancshares Inc. (Nasdaq: REPB) of St. Petersburg, Fla., in a $436 million transaction that represents entry into some of the strongest economic markets in the Southeast.
I agree. Good breath of fresh air.
I do however have a question?
What makes this post different from all other previous posts where people give their opinion on BBT? My point being, a1000fleas is simply guessing at these numbers, much like people guess when BBT will sell, guess how BBT is doing in certain regions, etc.
Don't mean to stir it up, but I really don't see a big difference. The only difference is a1000fleas has drafted a well written piece which sounds real good, but unless he knows something we don't know, this is no different than any other posts (minus the verbal barb, name calling posts).
Just a thought,
First, he is correct on all points, and he writes extremely well, he isn't guessing, he knows, and he knows much many in here would like to know, and he doesn't write opinion, and obviously his opinion isn't humble. Thats why I like the guy already.