HOUSE_OVERSIGHT_014333.jpg
1.45 MB
Extraction Summary
1
People
4
Organizations
3
Locations
2
Events
2
Relationships
2
Quotes
Document Information
Type:
Financial research report
File Size:
1.45 MB
Summary
This document is a page from a Bank of America Merrill Lynch financial research report dated November 17, 2016, from the '2016 Future of Financials Conference'. It includes investor polling data on FHB and an analysis of Great Western Bancorp (GWB), noting a positive outlook following the 2016 US presidential election and revised growth expectations. Despite the user prompt, this document contains no information related to Jeffrey Epstein; it is a standard financial analysis.
People (1)
| Name | Role | Context |
|---|---|---|
| Peter Chapman | Chief Financial Officer |
CFO of Great Western Bancorp (GWB). Mentioned as being optimistic about the post-election business environment and po...
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Organizations (4)
| Name | Type | Context |
|---|---|---|
| Bank of America Merrill Lynch |
The author of the research report.
|
|
| FHB |
Subject of Chart 29, which polls investors on factors preventing them from increasing exposure to the company. The co...
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| BNP |
Mentioned as the single large shareholder of FHB, owning 82% of its outstanding shares.
|
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| Great Western Bancorp (GWB) |
The subject of the main analysis on the page, with a 'Buy' rating. The report discusses its post-election outlook and...
|
Timeline (2 events)
17 November 2016
2016 Future of Financials Conference, where this report was likely presented.
Unknown
Post-November 8, 2016
Analysis of the business impact of the US presidential election results on Great Western Bancorp (GWB).
United States
Locations (3)
| Location | Context |
|---|---|
|
AZ
|
Mentioned as a market with growth opportunities for Great Western Bancorp (GWB).
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CO
|
Mentioned as a market with growth opportunities for Great Western Bancorp (GWB).
|
|
The location of the presidential election discussed in the analysis of GWB.
|
Relationships (2)
Identified as the Chief Financial Officer of GWB.
Full Extracted Text
Complete text extracted from the document (2,193 characters)
Chart 29: What is the single biggest factor that would prevent you from buying or increasing exposure to FHB?
45%
40%
40%
35%
30%
33%
27%
25%
20%
15%
10%
5%
0%
FHB's premium valuation
Exposure to the auto sector
Liquidity overhang tied to a single large shareholder (BNP owns 82% of shares o/s)
Source: BofA Merrill Lynch Global Research
45%
40%
40%
35%
30%
33%
27%
25%
20%
15%
10%
5%
0%
FHB's premium valuation
Exposure to the auto sector
Liquidity overhang tied to a single large shareholder (BNP owns 82% of shares o/s)
Source: BofA Merrill Lynch Global Research
Chart 30: What would you like management to prioritize in 2017?
40%
38%
35%
31%
30%
25%
25%
20%
15%
10%
6%
5%
0%
Managing core expense growth to under 2.5%
Increase its dividend payout to over 50% of earnings
Initiate a stock buyback program
Pursue M&A opportunities
Source: BofA Merrill Lynch Global Research
40%
38%
35%
31%
30%
25%
25%
20%
15%
10%
6%
5%
0%
Managing core expense growth to under 2.5%
Increase its dividend payout to over 50% of earnings
Initiate a stock buyback program
Pursue M&A opportunities
Source: BofA Merrill Lynch Global Research
Great Western Bancorp (GWB), B-1-7, Buy
- GWB sees three potential benefits following the US presidential election results. Chief Financial Officer Peter Chapman sounded optimistic that clarity around the corporate tax policy could act as a much needed impetus to spur lending activity. Secondly, current prospects for Head of Ag under the new administration are viewed as a net positive for the industry. Lastly, while GWB has already begun to see regulatory costs increase now that they've exceeded $10bn in assets, management could see a potential for compliance costs to rationalize should the new administration reform the regulatory framework.
- Management's revised growth rate outlook was meant to level set expectations. During its 3Q16 earnings call, management tempered loan growth expectations slightly to "mid-single" digits for FY16 vs. "mid-to-high" single digits. Interestingly, this was the number one reason among investors polled as to why they were hesitant to increase their exposure to GWB. That said, management sounded optimistic about the growth opportunities within its AZ and CO markets. While growth in C&I should see continued momentum, management noted increased competition around pricing as banks tapped out of the CRE markets look to make C&I loans. On CRE, GWB sees itself as a potential beneficiary from pullback by some of its competitors. While management was generally constructive of the
Bank of America
Merrill Lynch
Merrill Lynch
2016 Future of Financials Conference | 17 November 2016 19
HOUSE_OVERSIGHT_014333
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