With a continous string of record earnings and consistant asset growth, why is this trending down in price. The earnings multiple relative to the performance appears ridiculous. Is the entire sector trending down. Why?
hence a squeeze on net interest margins. You must have been sick the day they taught banking in finance class. Just kidding, but yes the entire regional bank sector has been hammered down since the Fed's 1st rate increase in June '99.
There is actually little squeeze on a bank's margin's as rates rise or fall given that revenue and cost of funds are mostly free floating and hedging products give them even more means of protecting spreads. Margins only tend to squeeze when business opportunities contract and banks are fighting for a smaller piece of the pie. The fed is raising rates to slow the economy, not stop it. I suspect the problem in this whole secter is reduced expectations of further conolidation. The appetite for consuming regional banks by the majors appears to have subsided. BOK would be a low takeover candidate given its concentrated ownership and the major owner's stated goal of remaining independent.