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4 Top Bank Stocks From 2010's First Half
Gains have not been easy to come by in the first six months of 2010. The big banks and regional banks however have managed to put up some relatively solid returns for shareholders year-to-date. The SPDR KBW Bank ETF (NYSE:KBE) and the SPDR KBW Regional Banking ETF (NYSE:KRE) have seen respective advances of 5.4% and 1.5% so far. Here are four particular bank stocks that have been a cut above the rest in the first half of 2010.
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Regional Rally
The stock price of Huntington Bancshares (Nasdaq:HBAN) has been on fire over the last six months. HBAN has surged 45.1% during this time period. The Midwest-based regional bank has seen its share price pull back from its April high, but the stock still trades 33.0% above its level from a year ago.
Investors have grown more confident in the company since it returned to profitability with its Q1 results that were reported in April. Huntington has seen a healthy improvement in its net interest margin versus its Q1 in 2009 and its net charge-offs declined significantly. Management projects a profit for its full year results and believes credit quality trends will continue to recover.
Regions Financial (NYSE:RF) is another regional bank that has seen its stock rally in the first half of the year. The stock is up 18% from the beginning of the year. The company checked in with a loss in Q1, but its net interest margin improved and net charge-offs stabilized. Regions expects its net interest margin to continue to improve as the bank heads into the second half of the year. The bank will release their second quarter results on July 27.
Credit Where Credit Is Due
Switching over to the large bank scene, Royal Bank of Scotland (NYSE:RBS) has been at the front of the class heading into half-time. RBS shares have risen 29.3% year-to-date. The company recently announced a Q1 operating profit, although non-core items dragged RBS down to a net loss. The company appears to be on the right track though and its retail and commercial division has likely already weathered the worst of the credit storm.
Another large cap bank that is off to a stellar start in terms of its stock price performance is M&T Bank (NYSE:MTB). The price of MTB common stock has jumped 27.0% in the first six months of 2010. MTB now trades 62% above where it was trading at this time last year.
The company reported a strong Q1 profit and also saw its net interest margin and core deposits rise. Net charge-offs ticked down slightly and provisions for credit losses experienced a sizable drop. This stock presently carries a dividend yield of 3.3%.
The Bottom Line
There is no question it has been a tough market across the board during these first six months of 2010. Nevertheless, banking stocks have turned out to be a fairly safe area of the market to be invested in. The four stocks mentioned above have demonstrated notable resiliency in the first half of the year. Now we will have to see if they can carry that momentum into the second half of the year to the final buzzer at year end. (From coins to credit, find out how the earliest system of money management started. Refer to The Evolution Of Banking.)
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IN PICTURES: 9 Ways To Trim The Fat From Your Spending
Regional Rally
The stock price of Huntington Bancshares (Nasdaq:HBAN) has been on fire over the last six months. HBAN has surged 45.1% during this time period. The Midwest-based regional bank has seen its share price pull back from its April high, but the stock still trades 33.0% above its level from a year ago.
Investors have grown more confident in the company since it returned to profitability with its Q1 results that were reported in April. Huntington has seen a healthy improvement in its net interest margin versus its Q1 in 2009 and its net charge-offs declined significantly. Management projects a profit for its full year results and believes credit quality trends will continue to recover.
Regions Financial (NYSE:RF) is another regional bank that has seen its stock rally in the first half of the year. The stock is up 18% from the beginning of the year. The company checked in with a loss in Q1, but its net interest margin improved and net charge-offs stabilized. Regions expects its net interest margin to continue to improve as the bank heads into the second half of the year. The bank will release their second quarter results on July 27.
Switching over to the large bank scene, Royal Bank of Scotland (NYSE:RBS) has been at the front of the class heading into half-time. RBS shares have risen 29.3% year-to-date. The company recently announced a Q1 operating profit, although non-core items dragged RBS down to a net loss. The company appears to be on the right track though and its retail and commercial division has likely already weathered the worst of the credit storm.
Another large cap bank that is off to a stellar start in terms of its stock price performance is M&T Bank (NYSE:MTB). The price of MTB common stock has jumped 27.0% in the first six months of 2010. MTB now trades 62% above where it was trading at this time last year.
The company reported a strong Q1 profit and also saw its net interest margin and core deposits rise. Net charge-offs ticked down slightly and provisions for credit losses experienced a sizable drop. This stock presently carries a dividend yield of 3.3%.
The Bottom Line
There is no question it has been a tough market across the board during these first six months of 2010. Nevertheless, banking stocks have turned out to be a fairly safe area of the market to be invested in. The four stocks mentioned above have demonstrated notable resiliency in the first half of the year. Now we will have to see if they can carry that momentum into the second half of the year to the final buzzer at year end. (From coins to credit, find out how the earliest system of money management started. Refer to The Evolution Of Banking.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
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