Below are some of the most topical Financial Stocks on the BWI Shareholder Confidence Index based on our daily chats with global investors. If you would like more detailed shareholder conviction intelligence on Global Financial companies, please contact Matthew Lapointe or Gordon Peck.
Commitment to Own the Name in the Year Ahead Changes in Investor Confidence Scores – FIG Sector
(YE 4Q 2024 as of December 15th vs. YE 3Q 2024)
Legend:
Increase: Higher Quality Metric Score Compared to Result from 3Q 2024
Static: Unchanged Quality Metric Score Compared to Result from 3Q 2024
Decrease: Lower Quality Metric Score Compared to Result from 3Q 2024
Commitment to Own the Name in the Year AheadChanges in Investor Confidence Scores – FIG Sector
(YE 4Q 2024 as of December 15th vs. YE 3Q 2024)
Legend:
Increase: Higher Quality Metric Score Compared to Result from 3Q 2024
Static: Unchanged Quality Metric Score Compared to Result from 3Q 2024
Decrease: Lower Quality Metric Score Compared to Result from 3Q 2024
Truist Financial Corporation
Increase: Transparency/Disclosure, Senior Management
Static: Strategy, Long Term Growth, Momentum of Investor Confidence
Decrease: Commitment to Own the Name in the Year Ahead, Board of Directors, CEO, CFO, Balance Sheet, Short Term Growth, Price Appreciation Potential
“I was optimistic on Truist after the acquisition. However, I haven’t been very impressed with how things have been managed.”
“I am not a fan of Truist’s business model. They sold the crown jewel insurance business, which was well-capitalized and had high returns and growth. They did this effectively to plug a capital hole, making the transaction earnings neutral by buying back shares. However, if you look at the franchise’s growth over five years, it took a big hit when they sold that business.”
KeyCorp
Increase: Transparency/ Disclosure, Balance Sheet, Short Term Growth, Price Appreciation Potential
Static: Short Term Growth, Senior Management, CEO, Long Term Growth
Decrease: Commitment to Own the Name in the Year Ahead, Strategy, Board of Directors, CFO, Momentum of Investor Confidence
“KeyCorp’s earnings growth is affected by how it structured its balance sheet over the past two years for the current interest rate environment. As certain caps and swaps expire, their growth is being impacted. It’s unclear if management has a solid plan for structural growth. KeyCorp and other banks with balance sheets
ranging from 100 to 300 billion in assets are struggling to grow deposits as fast as larger banks like JP Morgan and Bank of America.”
“I’m not going to own KeyCorp because their story will be over in 1Q 2026 and it is already priced into the numbers. I’m more negative on them in comparison to the other regional banks.”
The Toronto-Dominion Bank
Increase: CEO
Static: Senior Management, Price Appreciation Potential, CFO, Strategy
Decrease: Commitment to Own the Name in the Year Ahead, Transparency/ Disclosure, Board of Directors, Long Term Growth, Balance Sheet, Momentum of Investor Confidence
“TD Bank’s new CEO, Ray Chun, was seen as a safe choice, as they promoted someone from within the bank instead of bringing in an outsider.”
“There has been so much management turnover at TD. Many of the people who we thought would have been the successors for the CEO position have left as well. Ultimately, Bharat Masrani and his group are paying the price on the money laundering issue. I don’t know Raymond Chun well but it’s better for the business to display a complete disconnect from Bharat.”
“I have no confidence in TD Bank’s future capital allocation process strategy. TD Bank’s capital allocation track record has been relatively poor over the last five-plus years. This includes the failed attempt at First Horizon, the swap to the Ameritrade relationship, and the impact on flows. ”
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About Brendan Wood International:
Brendan Wood International (BWI), formed in 1970, is a private advisory group which originates performance investigation programs in the capital markets. Relying on its real time intelligence, BWI advises public companies, institutional and activist investors, investment banks and broker dealers on strategy, performance and recruitment of TopGun talent. Big cap companies looking for comprehensive investor confidence data on their organizations are likely to discover that Brendan Wood partners consult with their investors non stop year round. There are 2000+ live consultations with investment professionals overseeing +/- $60 trillion invested in the +/- 1400 big cap companies on the BWI Index. Investors depend on BWI to quantify the demand side of the investment industry, including the name by name research sales and trading professionals who influence investor demand. The firm’s partners have formally presented at 1000+ C level strategy meetings and corporate off-sites in fifty cities. Brendan Wood founded the exclusive TopGun Club, a performance based institution.
Disclaimer:
We wish to emphasize that all reports, evaluations and assessments contained herein, represent Brendan Wood International’s subjective judgment and opinions, based on our years of experience and on information obtained by us in the course of our research. Much of the factual information contained in the reports has been obtained by us from third parties on whose responses we have relied in good faith, independent verification by Brendan Wood International being, under the circumstances, impossible. While we believe that you will find our reports to be an invaluable tool in formulating your own strategies and judgments, the foregoing should be borne in mind. This report is not meant as investment advice and should not be interpreted as advising on the value of a company’s securities, the advisability of investing in, purchasing or selling any company’s securities or any other conclusion relating to investment/divestiture of a company’s securities. Finally, this report is not intended as an offer or solicitation for the purchase or sale of any company’s securities.
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Brendan Wood International
+1 416 924 8110
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