This week will be the start of earnings season as we get to start reviewing some key earnings for first quarter of 2012. The banking sector is going to be of particular interest since we have had such a strong rally in financials since the end of December. Many banks have gotten permission to raise their dividends and buy back shares, and many of the key banks are still trading at substantial discounts to book value and/or tangible book value.
We will be paying extra attention to the money center banks of Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C), J.P. Morgan Chase & Co. (NYSE: JPM), and Wells Fargo & Co. (NYSE: WFC). We will also be watching the bank holdings companies without any bank operations from Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS). On the trust bank side and fiduciary side, there is Bank of New York Mellon Corporation (NYSE: BK), State Street Corporation (NYSE: STT), and also Northern Trust Corporation (NASDAQ: NTRS).
We have shown the most recent closing prices, added in the Thomson Reuters consensus price target objective, and added in a 52-week trading range. We have then shown the tangible book value and/or the stated book value, depending upon what was available from each bank. The book values were taken from January press releases as of the end of 2011, but a couple had to be taken from ycharts.com as they did not report their stated book values. You will see some of the banks still trade at healthy discounts to their book value and to their tangible book values, while others now trade at premiums again.
Bank of America Corporation (NYSE: BAC) recently closed at $8.93, its Thomson Reuters consensus target is currently $9.79, and the 52-week trading range is $4.92 to $13.64. The company most recently noted that its tangible book value per share was $12.95 at December 31, 2011, compared to $12.98 at December 31, 2010. The stated book value per share was $20.09 at December 31, 2011, compared to $20.99 at December 31, 2010.
Bank of New York Mellon Corporation (NYSE: BK) recently closed at $23.34, its Thomson Reuters consensus target is currently $25.67, and its 52-week range is $17.10 to $30.29. The bank most recently noted that its book value was $27.62 at the end of 2011, down slightly from the $27.79 at the end of the third quarter but up from $26.06 at the end of 2010. On a tangible book value per share, that figure was $10.57 at the end of 2011 versus $10.55 at the end of the third quarter and up from $8.91 at the end of 2010.