Comerica Incorporated : Technical Research on Zions and Comerica: Regional Banks Focus on Efficiency more than Size
02/13/2013| 08:05am US/Eastern
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LONDON, February 13, 2013 /PRNewswire/ --
Regional banks, such as Zions Bancorp (NASDAQ: ZION) which is a Pacific-based regional
bank and Comerica Inc. (NYSE: CMA) a more Midwest focused one, offers many competitive
advantages to national banks. Since they are more tied in to the economics of the local
markets, they offer shareholders a more focused diversification. This means, their
coverage is much more specific, so when one buys into a regional bank, one knows where he
is buying into. However, for national banks, one does not know what country or sector the
bank is exposed to, so the diversification is uncertain. StockCall has posted free
technical research reports on Zions Bancorp. and Comerica, and these can be accessed by
signing up at
http://www.stockcall.com/analysis
Regional v/s National Banks
In the last five years, regional banks as a whole have performed much better than
national banks as can be seen by the relative performances of ETFs focusing solely on
regional banks as opposed to those comprising national banks. Throughout these years,
their lower exposure to Europe, their loyal customer-base and their focus on core
efficiencies have helped these regional banks perform extremely well despite the downturn.
However, in the ensuing low-interest rate scenario, they may perform less robustly due to
a lack of economies of scale compared to national banks.
Zions Earnings Review
Last month, ZION released earnings for the last quarter. For common shareholders, net
income applicable was $35.6 million, or $0.19 per diluted common share, for the quarter,
according to the earnings call. The company stated that their net quarterly charge-off
ratio was 0.2%, which is comparable to what they had for the whole of 2007. The company's
non-performing asset ratio dropped below 2% which shows that the bank is focusing on
increasing its core competencies and performing segments. Download the free report on
Zions Bancorp. upon registration at
http://www.StockCall.com/ZION021313.pdf
ZION's net income showed a slight decline of 2% compared to the last quarter, or about
$8 million. This is in-line with the guidance provided by Zions in November. The company
last week declared a $0.01 per share dividend for the quarter, which is the same as the
dividend announced in the last quarter.
Comerica, a Strong Regional Bank
Comerica reported decent earnings last month. Its Q4 EPS was at $0.68, beating
street's estimates by 2 cents, and last quarter EPS by 7 cents. Net income stood at $130
million, $13 million more than the previous quarter. The company reported that the
increase in net income to the tune of 11% was a product of various factors, such as
expense control and various positive cost-cutting measures in-line with the economic
scenario. More importantly, this was a result of loan and fee income growth in the
preceding quarter. Comerica Inc. technical report can be accessed for free by signing up
at
http://www.StockCall.com/CMA021313.pdf
Comerica also acquired Sterling Bancshares in July of last year in a stock-for-stock
transaction. The acquisition helped Comerica extend its network across Sterling's
customer-base, although ATMs will continue to operate under the latter's banner. Comerica,
with a market cap of about $6.58 billion, is currently trading at $35.06, and has a 52
week range of $27.46 - $35.40.
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