NEW YORK (Reuters) - The U.S. government took further steps to prop up the U.S. banking system on Friday, starting to inject capital into a new group of banks, and helping to finance a $5.2 billion takeover of National City Corp by PNC Financial Services Group Inc.
Walking among the celebrities at the Toronto International Film Festival in September, Royal Bank of Canada chief executive Dave McKay says he felt good about the US$5-billion purchase of City National Corp., a Los Angeles lender known as the “bank to the stars.”
SNL Financial, a financial information firm based in Charlottesville, Va. has weighed in on Royal Bank of Canada’s US$5.4 billion stock and cash acquisition of City National Corp.
In a report issued Monday, SNL termed it “the most expensive large U.S. bank deal announced since the financial crisis of 2007 and 2008, based on price-to-tangible book ratio.” Other U.S. based analysts working for brokerage houses have expressed a similar view.
Royal Bank of Canada’s $5 billion purchase of City National Corp., its largest-ever takeover, is forecast to put the lender on the sidelines for further acquisitions and share buybacks until it can rebuild capital to levels that satisfy regulators.
I strongly believe that for the next few quarters, financial institutions should build their balance sheets to the strongest possible positions in capital and liquidity and reserves. This is the logical tactic given the regulatory uncertainties paired with enormous demand potential as the credit and business cycles turn. Releasing reserves make no sense to me. First a snapshot of some recent selected data.
National Bank of Greece might not have fully recovered from its problems, but its recent moves show that progress is in the making.
Greece’s largest bank and lender recently announced the takeover of Peloponnese Cooperative Bank’s deposits. Peloponnese Bank is set to be liquidated after failing to raise enough capital as required by the capital adequacy requirements. The bank is the only cooperative lender that failed to meet the requirement and its healthy side of the business will now be transferred to National Bank of Greece.
By Stan Stafford:
In this series of articles, I will be identifying which stocks for various S&P industries are best suitable for income investors, based on dividend growth and yield. For Part 3, I will be taking a look at Bank stocks. These stocks include:
ByRichard Tarjeft:The PNC Financial Services Group, Inc. (PNC) is a financial service company with a market capitalization of $37.65 Billion. It is engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking, providing these products and services nationally.
Pnc Financial Services Group,The (PNC)
March 05, 2013 2:00 pm ET
William S. Demchak - President, Director and President of PNC Bank National Association
Keith Horowitz - Citigroup Inc, Research Division
William S. Demchak
By Rash Menaria: PNC Financial Services Group, Inc. (PNC) is a diversified financial services company based in the United States. PNC manages over $250 billion in assets, of which approximately $38 billion is deployed in equities.
By Lalit Sharma:PNC Financial Services Group (PNC) manages $43 billion in equity assets primarily through its investment advisory subsidiary PNC Wealth Management, which controls the PNC Series of mutual funds. PNC employs both growth and value approach to investing and holds stocks for the long term.