FCNCA - First Citizens BancShares: Short-Term Upside Coupled With Solid Long-Term Potential
2024-05-29 12:33:22 ET
Summary
- FCNCA may have low dividend, but is looking to distribute around 190bps of CET1 ratio in share repurchase.
- Strong deposit, loan growth puts bank in good position to grow.
- FCNCA remains relatively undervalued to peers in terms of P/E and P/TB metrics.
- One year after purchase of Silicon Valley Bank, FCNCA has achieved stabilization of SVB's portfolio.
First Citizens BancShares ( FCNCA ) impresses with its high CET1 ratio compared to peers, strong profitability and excellent deposit growth as seen in its latest Q1 earnings report . The bank has gained 40.11% over the past 1 year compared to 20.64% for the SPDR S&P Regional Banking ETF ( KRE ) as it has continued to outperform most other regional banks. Importantly, the bank’s stock has surged by 205% since it announced the purchase of the failed Silicon Valley Bank (SVB) in Mar 2023....
First Citizens BancShares: Short-Term Upside Coupled With Solid Long-Term Potential