Nomura Securities on US Bancorp (USB) and PNC Financial (PNC): Servicing Settlement Coming?

Nomura Securities on USB and PNC: Servicing Settlement Coming?

Analyst, Brian Foran, said, "U.S. Bancorp (NYSE: USB) and PNC Financial (NYSE: PNC) both reported better-than-expected headline revenue. Backing out one-time items, USB’s revenue stayed better than expected, while PNC’s was more in line."

"Both companies had elevated expenses, including legal accruals for mortgage servicing. The banks state AG settlement has been in the works for over a year, but one of the remaining sticking points was how much the second tier of banks would have to pay. Legal accruals from USB and PNC may signal a settlement is finally getting closer."

"On mortgage servicing litigation, USB accrued $130mn and PNC accrued $240mn. USB’s servicing book is $191bn and PNC’s is $118bn, so it is not clear how potential settlement amounts are divided up at first glance. That said, the next biggest servicing book is SunTrust (NYSE: STI) ($129bn), then there is a drop off to BB&T (NYSE: BBT) ($66bn) and Fifth Third (Nasdaq; FITB) ($56bn)."

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
• Deere (DE) PT Raised to $585 at JPMorgan
• Benchmark Reiterates Buy Rating on NVIDIA (NVDA), Updates Estimates