HOUSE_OVERSIGHT_014341.jpg
Extraction Summary
2
People
5
Organizations
3
Locations
2
Events
2
Relationships
2
Quotes
Document Information
Type:
Financial research report
File Size:
Summary
This document is a page from a Bank of America Merrill Lynch financial research report dated November 17, 2016. It analyzes market sentiment on multifamily lending, discusses a bank's (likely SBNY) confidence in managing its taxi medallion loan portfolio, and provides an outlook on Synovus Financial (SNV) following the 2016 US election. The content is purely financial analysis and contains no information related to Jeffrey Epstein.
People (2)
| Name | Role | Context |
|---|---|---|
| Kessel Stelling | Chairman and CEO |
Chairman and CEO of Synovus Financial (SNV), noted that it was too soon to determine the real impact of the US electi...
|
| Kevin Blair | CFO |
CFO of Synovus Financial (SNV), who believes the company's net interest margin could expand by 6bp from a 25bp Fed ra...
|
Organizations (5)
| Name | Type | Context |
|---|---|---|
| Bank of America Merrill Lynch |
Author of the research report and host of the '2016 Future of Financials Conference'.
|
|
| BofA Merrill Lynch Global Research |
Cited as the source for the two charts in the document.
|
|
| Synovus Financial (SNV) |
A financial company analyzed in the report, with commentary from its CEO and CFO.
|
|
| SBNY |
A company whose taxi medallion exposure is the subject of Chart 40. This likely refers to Signature Bank.
|
|
| Fed |
The Federal Reserve, which was expected to raise rates in December 2016.
|
Timeline (2 events)
2016-11-17
Bank of America Merrill Lynch's '2016 Future of Financials Conference'.
Unknown
Bank of America Merrill Lynch
Synovus Financial
Relationships (2)
Kessel Stelling is identified as the Chairman and CEO of Synovus Financial.
Kevin Blair is identified as the CFO of Synovus Financial.
Key Quotes (2)
"Management expressed confidence that it has taken care of most of the issues on its Chicago taxi medallion loan book and is seeing stabilization of its New York book with New York fleets near 100% utilization."Source
HOUSE_OVERSIGHT_014341.jpg
Quote #1
"...it was too soon to say the real impact on growth outlook."Source
HOUSE_OVERSIGHT_014341.jpg
Quote #2
Full Extracted Text
Complete text extracted from the document (2,442 characters)
Chart 39: How do you view fundamentals for multifamily lending in 2017?
35%
30%
25%
20%
15%
10%
5%
0%
13%
7%
27%
27%
27%
Softening fundamentals should lead to slower financing activity next year
Softening fundamentals should lead to worsening credit metrics
Softening fundamentals should lead to slower financing activing and worsening credit metrics
Some concern, but only in certain regions and at certain rental price points
No concern
Source: BofA Merrill Lynch Global Research
35%
30%
25%
20%
15%
10%
5%
0%
13%
7%
27%
27%
27%
Softening fundamentals should lead to slower financing activity next year
Softening fundamentals should lead to worsening credit metrics
Softening fundamentals should lead to slower financing activing and worsening credit metrics
Some concern, but only in certain regions and at certain rental price points
No concern
Source: BofA Merrill Lynch Global Research
Confident past most of taxi medallion issues: Management expressed confidence that it has taken care of most of the issues on its Chicago taxi medallion loan book and is seeing stabilization of its New York book with New York fleets near 100% utilization. Management also expects the $20mn +/- in quarterly provisioning outlook to absorb the impact from any incremental provisioning associated with the medallion portfolio.
Chart 40: How much does SBNY's taxi medallion exposure impact your decision to invest in the stock?
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
33%
40%
27%
Not at all, the portfolio only accounts for 2% of total loans
A little bit, I think this portfolio could continue to cause some EPS volatility
I am staying away from the name due to this exposure
Source: BofA Merrill Lynch Global Research
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
33%
40%
27%
Not at all, the portfolio only accounts for 2% of total loans
A little bit, I think this portfolio could continue to cause some EPS volatility
I am staying away from the name due to this exposure
Source: BofA Merrill Lynch Global Research
Synovus Financial (SNV), C-2-7, Neutral
SNV hesitant to react too quickly to post-election excitement. Chairman and CEO Kessel Stelling noted that despite the very positive reaction seen in bank stocks from the results of the US elections, it was too soon to say the real impact on growth outlook. That said, he believes that a more encouraging business climate (i.e. increased infrastructure spending) as well as some regulatory relief (i.e. raising the $50bn asset threshold) could be a benefit for SNV and the overall industry.
SNV hesitant to react too quickly to post-election excitement. Chairman and CEO Kessel Stelling noted that despite the very positive reaction seen in bank stocks from the results of the US elections, it was too soon to say the real impact on growth outlook. That said, he believes that a more encouraging business climate (i.e. increased infrastructure spending) as well as some regulatory relief (i.e. raising the $50bn asset threshold) could be a benefit for SNV and the overall industry.
SNV could see a benefit at both ends of a steepening yield curve. As of 3Q16, 50% of SNV's total loan portfolio was fixed rate (includes variable rate loans with floors), implying a benefit to spread income from a rise in both the short- and long-end of the yield curve. With the futures market now pricing in a 94% probability the Fed raises rates in Dec., CFO Kevin Blair believes the net interest margin could expand by 6bp in from a 25bp rate hike (vs. +9bp last year). That said, the benefit is
Bank of America
Merrill Lynch
2016 Future of Financials Conference | 17 November 2016 27
HOUSE_OVERSIGHT_014341
Merrill Lynch
2016 Future of Financials Conference | 17 November 2016 27
HOUSE_OVERSIGHT_014341
Discussion 0
No comments yet
Be the first to share your thoughts on this epstein document