Schwab leads list of banks expected to profit -2-

   Comerica Inc.                      CMA                                                 5.3%                            9.8%                                11.1                10.3                 12.0 
   PNC Financial Services Group Inc.  PNC                                                 6.7%                           13.0%                                12.1                12.4                 12.6 
   Valley National Bancorp            VLY                                                 7.2%                           36.5%                                 9.3                 9.3                 11.6 
   American Express Co.               AXP                                                 8.7%                            9.4%                                17.6                16.2                 14.8 
   Cadence Bank                       CADE                                                5.6%                            6.4%                                11.0                11.2                 13.0 
   Citizens Financial Group Inc.      CFG                                                 5.0%                           27.1%                                10.2                 9.7                 11.1 
                                                                                                                                                                                            Source: FactSet 

You might need to scroll the table to see the right-most columns.

For Schwab, earnings per share are expected to increase 28% next year, while net interest income is expected to increase 18.6%.

Among the larger U.S. regional banks, KeyCorp (KEY) stands out, with expected increases of 42.4% for EPS and 20.4% for net interest income.

EPS for Banc of California (BANC) are expected to more than triple next year, as it moves on from extraordinary expenses as it reorganized following its acquisition of Western Pacific Bancorp in November 2023. The bank's 2024 earnings have also been lowered by markdowns ahead of the sale of loans secured by rental properties in its CIVIC unit in the second quarter. That loan sale was completed during the second quarter for net proceeds of $1.9 billion, which boosted the bank's liquidity and capital ratios.

Here is a summary of opinion about the group among analysts polled by FactSet:

   Bank                               Ticker    Share "buy" ratings  Share neutral ratings  Share "sell" ratings  Oct. 3 price  Consensus price target  Implied 12-month upside potential 
   Charles Schwab Corp.               SCHW                      55%                    36%                    9%        $63.40                  $71.68                                13% 
   Ally Financial Inc.                ALLY                      48%                    43%                    9%        $34.46                  $40.65                                18% 
   UMB Financial Corp.                UMBF                      83%                    17%                    0%       $101.98                 $117.67                                15% 
   KeyCorp                            KEY                       58%                    42%                    0%        $16.37                  $18.37                                12% 
   Banc of California Inc.            BANC                      60%                    40%                    0%        $13.87                  $16.25                                17% 
   Prosperity Bancshares Inc.         PB                        75%                    19%                    6%        $70.06                  $80.47                                15% 
   Pinnacle Financial Partners Inc.   PNFP                      58%                    42%                    0%        $92.95                 $107.09                                15% 
   United Bankshares Inc.             UBSI                      20%                    80%                    0%        $35.53                  $41.00                                15% 
   BankUnited Inc.                    BKU                       17%                    75%                    8%        $34.88                  $38.88                                11% 
   Comerica Inc.                      CMA                       40%                    48%                   12%        $58.68                  $60.35                                 3% 
   PNC Financial Services Group Inc.  PNC                       61%                    30%                    9%       $178.39                 $191.94                                 8% 
   Valley National Bancorp            VLY                       27%                    64%                    9%         $8.75                   $9.20                                 5% 
   American Express Co.               AXP                       43%                    53%                    4%       $268.59                 $262.75                                -2% 
   Cadence Bank                       CADE                      50%                    50%                    0%        $30.63                  $36.13                                18% 
   Citizens Financial Group Inc.      CFG                       50%                    50%                    0%        $40.03                  $45.35                                13% 
                                                                                                                                                                          Source: FactSet 

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10-05-24 0608ET

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