Just looking and thinking. There is approx 700 million shares outstanding. If all upper mgt, CEO, CFO, etc, just received a reasonable wage and benefits, not their present outrageous benefits, and this saving applied to dividends: How much would the dividends on BBT stock go up?
Would the dividend go up 2 cents; 5 cents or more per share just from upper mgt being compensated at a reasonable rate? After all profits should be divided among share holder first, not last.
Just looking and thinking.
I also own quite a few shares, and have owned them for quite a few years and will probably continue to own them till I go up to the big bank lobby up in the sky.
PPS down about 50%, dividend down about 70%. I am not happy. Upper mgt makes an un-Godly salary and benefits and most stock owners just sit back and smile like they deserve it. I don't think so.
You need to go back to basic finance. This proves you are a blithering idiot and simply vomit numbers without knowing what they mean. Do you know how much would be needed to increase TBV by $5.00/share. How about $3B. Prove to me that in FY 2005 the TBV increased 28%. Prove to me that TBV increased this much in any year. And who cares if it did? Do you know how to increase TBV? You overpay and buy crap and put it on your balance sheet, you raise a bunch of new euqity and dilute your shareholders, or you acutally drop a ton to retained earnings to the equity account. Show me where BB&T has dropped enough net income to move TBV by 28%. Will BB&T drop $3B to retained earnings this year? No. Sorry.
You are trying to cross pollinate ROE, whic is a measure of invested cpaital, with Book Value, which is simplay a measure of GAAP assets minus par debt...there is no marketcomponenet to that number. Anybody (incouding my dog) can move book value, it has nothing to do with how an investor's roe looks.
Quit trying to back into your assumptions by manipulating supposed facts over which you know nothing about.
Norm wrote the following:
"John Allison made a presentation in 2006 showing that bbt's roe in 2006 on their tangible book value was around 28%. At the end of this year bbt's tbv should be close to $17/share. 28% times $17 share = $4.76/share"
I see where you did indeed specify tangible book value not book value which most people more commonly use. I was wrong. Are you fairly sure of the $17 figure as Forbes only shows a $13.81 tangible value as of 6/2011? Hope your figure is accurate.
"Are you fairly sure of the $17 figure as Forbes only shows a $13.81 tangible value as of 6/2011? Hope your figure is accurate."
Reference page 18 of bbt 2nd qtr. 2011 financial tables found on their website. Shows tangible book value at $15.95 at 6/30/11. Bbt earnings in the 2nd half 2011 will substantially exceed their dividend which should increase tangible book value to about $17/ share at 12/31/11. Also, it is worth noting that the $15.95 includes a reduction of $.82 (per share) for temporary losses on investment securities. With treasury yields nose diving since 2nd qtr. 2011 this temporary loss should swing to a gain or even better bbt will sell their $22.5 billion of investment securities yielding 1.69% at 6/30/11 at a huge gain and reinvest the proceeds into fnm/fre mtg backed securities/municipals/AAA rated corporate paper.
You can also go to their 10q statement and calculate their tangible book value. I did and got about the same number.