|
|
 |
 |
|
 |
|
|
National City |
National City
The following is a summary of the UBS full-length report on this topic, dated August 29, 2005.
Sharp Rebound In 2Q05, But Mainly Due To Hedging Gains: During 2Q05, NCC's earnings rebounded sharply, with net income of $625 million, up from $484 million (+29%) in the previous quarter and $519 million (20%) from 2Q04. While solid sequential gains were generated from consumer and wholesale banking, the primary driver of the quarter was from mortgages, in particular gains on mortgage servicing rights (MSRs).
Stable Credit, But Still Ongoing Dependence On Mortgages: NCC's credit profile reflects above-average profitability, coupled with a solid franchise in its home market. Somewhat offsetting these strengths are a continued dependence on the mortgage sector, which can and has introduced earnings variability.
Lowering Opinion To Underperform: While we continue to view NCC as a reasonably stable 'A' credit, we believe that expected above-average earnings volatility will have a slight dampening effect on the company's spreads going forward. As a result, we are revising our opinion on NCC to 'Underperform' from 'Market Perform', while reiterating our rating and trend.
|
|
|
|
|
 |
| Partner Market Place |
 |
Sign In and Search LIVE Offerings with easy-to-use maps - Go To BondSearch123.com
Choose Your Own CD Yields: How would you like to choose the yields you want on FDIC-insured CDs – instead of the yields someone else has chosen? ZIONS
|
 |
| Stuff to look at |
Yield and Income Newsletter: A must have for income investors. subscribe NOW
2007 Investment advice:
The stealth move that could topple world equities. [ more] |
 |
| BondsOnline Advisor |
|
|
 |
|
|
|