00:00 Speaker A
Let’s get to some picks, Brian, in the sector where you say, “Listen, there’s still opportunity here. This is a buy.” JPMorgan, walk me through it.
00:07 Brian
Just the the scale of operations. This is the biggest bank on the planet. They have a great revenue generating machine that has multiple product lines with different customers. They had a surprise to the upside last quarter on the investment banking and trading fees side with a a lower rate projected by the end of the year, maybe not as soon as next month, but in next quarter, for sure. We could see the net interest income picture improve for this bank, and they already have a pretty strong growth and expansion plan in place. We like JPMorgan a lot.
00:49 Speaker A
How about Citi?
00:52 Brian
Citi has done a great job reorganizing. They are in a completely different picture than where they were just a couple of years ago. They are one of the the biggest, I I think, beneficiaries of passing this stress test, but also reorganizing such that they’re more productive with the capital that they have. Another winner in the net interest income category. They are in a great spot to raise their dividend and return capital to shareholders.
01:20 Speaker A
Final another one, third one on your list here, I want to get your thoughts on PNC. Which has had, I’m just looking, it’s had a pretty good run over the past 12 months. I want to just get this right, Brian. Uh, it’s about 20%. What moves it higher?
01:41 Brian
Yeah, absolutely. I think there’s an opportunity here for some of these bigger regional banks to step in and be a little bit more competitive and serve some of the segments of growth in this economy that are looking for capital but haven’t been able to break into some of the big banks and get approvals on some of these loans. So there’s an opportunity here for PNC in particular, especially with investments that are going to be made in their backyard in Pittsburgh with the US Steel merger with Nippon. There’s an opportunity here to capture some capital as in motion and an opportunity to compete with some of the bigger banks. Yes, they’ve been rewarded in terms of the share price, but I think it’s well-earned growth at this point. They’ve been a really good steward of their capital in the balance sheet, reducing risk for driving out returns for shareholders. This is a good name for us.
02:37 Speaker A
Brian, appreciate your time, those picks. Thank you, sir.
