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Published April 21, 2009 at 1:58 PM
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A lot of regional banks are releasing first-quarter earnings Tuesday and throughout the week. Here's a roundup of some recent announcements and what to expect for those that haven't reported earnings yet. - U.S. Bancorp (NYSE:USB) reported profit fell 51% to a net income of $529 million for the first quarter of 2009 and total net revenue of $3.9 billion. The drop was attributed primarily to credit losses. Still, U.S. Bancorp CEO Richard Davis said Tuesday he is ready to
quickly repay the $6.6 billion of bailout money the bank received last
fall, according to The Wall Street Journal.
Regions Financial Corp.'s (NYSE:RF) first-quarter net income slid 77% to $77 million, or 4 cents a share,
down from $337 million, or 48 cents, a year ago. Revenue fell 2.6% to
$1.88 billion. Losses were due to credit costs. Still, it beat analyst expectations of revenue of $1.6 billion. The bank also wants to repay its $3.5
billion infusion from the U.S. Treasury's capital purchase program. Regions had slashed its quarterly dividend
90% to save about $250 million a year, according to The Wall Street Journal. - BB&T Corp. (NYSE:BBT) reported net income for the first quarter of
2009, totaling $318 million and net income available to common
shareholders totaling $271 million, or 48 cents per diluted common share,
compared with $428 million, or 78 cents per diluted common share, earned
during the first quarter of 2008.
- KeyCorp (NYSE:KEY) reported a net loss of $488 million, or $1.09 per share, for the first quarter, and it announced plans to cut its quarterly dividend on common shares to 1 cent per share from 6.25 cents, commencing in the second quarter of 2009, an action that will retain approximately $100 million of capital on an annual basis, according to the press release. Analysts had predicted a loss of 21 cents a share.
- Zions Bancorpn (NYSE:ZION) reported a
first-quarter loss of $832.2 million, or $7.29 per diluted share, tied
to real estate. The regional bank had its credit ratings sharply cut
into junk and default status
by Moody's Investors Service, and FBR analyst James Abbott said Zions
will be forced to raise capital, according to The Wall Street Journal.
- Bank of New York Mellon Corp.'s (NYSE:BK) first-quarter net income fell 51%
to $322 million, or 28 cents per share, from $749 million, or 65 cents per
common share, in the first quarter of 2008. Earnings fell on weak fee
revenue and investment losses. The company also slashed
its dividend by 63% to raise capital.
- State Street Corp. (NYSE:STT) announced first-quarter earnings per
common share of $1.02, a decline from earnings per share of $1.35 in
last year's first quarter. Revenue of $2.002 billion in the first
quarter of 2009 is down 22.3% from $2.577 billion in the year-ago first
quarter. Analysts, polled by Thomson Reuters, on average, forecast earnings of $1.02 per share, according to Forbes.
Upcoming earnings announcements: Capital One Financial Corp (NYSE:COF) first-quarter earnings are April 21 at 5:00 p.m. Analysts are predicting Capital One will make revenue of $4.18 billion. The
consensus range is 32 cents to 39 cents estimated per share and $3.98 billion to $4.36 billion for revenue,
according to Seeking Alpha. The mean estimate of analysts polled by Thomson Reuters is for Capital One
to report a loss of 4 cents a share and revenue of $4.14 billion in the
quarter, according to Institutional Investor. Capital One's losses will most likely be due to exposure to consumer credit and rising unemployment.PNC Financial Services Group Inc. (NYSE:PNC) will report earnings on Thursday. The bank is expected to report net income of 43 cents,
versus $1.09 the year earlier. But given its merger with National City
Corp., the results are harder to project, according to The Tribune-Review. Troubled Ohio-based Fifth Third Bancorp (NYSE:FTB) reports earnings Thursday. Analysts polled by Thomson Reuters are expecting, on average, a loss of 27 cents per share for the quarter, according to Forbes. Atlanta-based SunTrust Banks, Inc. (NYSE:STI) will report earnings Thursday. The consensus estimate among analysts is that the
company will post a loss of about 6.5 cents a share, down from $1.08 a
share in the fourth quarter, according to Atlanta Journal Constitution. - Maria Woehr
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