Given that you clicked on this article it seems safe to assume you either own shares of BBT Bank (NYSE BBT ) or are considering buying them in the near future. If so you've come to the right place as the table below reveals the nine most critical numbers that investors need to know about BBT before deciding whether to buy sell or hold its stock.
But before getting to that a brief introduction is in order. Tracing its roots back to 1872 BBT has since transformed into one of the nation's largest regional banks. Based in Winston Salem North Carolina it operates approximately 1 800 branches across 12 states and the District of Columbia. In addition as of the end of 2012 it had $184 billion in assets on its balance sheet. As the bank notes on its website A Fortune 500 company BBT is consistently recognized for outstanding client satisfaction by J.D. Power and Associates the U.S. Small Business Administration Greenwich Associates and others.
As you can see in the table above from a shareholder's perspective BBT exhibits a number of strengths. It's better at managing interest rate risk as evidenced by its above average net interest margin. Its comparatively low non performing loans ratio suggests it's similarly superior in terms of minimizing credit risk. And the bank's healthy fee based income goes a long way toward hedging against low interest rate environments like the present. It's largely for these reasons in turn that BBT's return on equity is roughly 230 basis points better than the average. And it's also for these reasons that the bank's shares trade for a dear 1.9 times tangible book value.
Alternatively if one had to be picky BBT's biggest weakness is its relatively low payout ratio. As a general rule I prefer banks that pay out no less than a third of their net income to shareholders via dividends. While BBT comes in just below this benchmark what's not captured here is the fact that the bank increased its quarterly distribution by 15% at the beginning of this year. Once that's factored in it seems safe to say that the bank will more than satisfy this requirement too.
Interested in learning more about BBT With big finance firms still trading at deep discounts to their historic norms investors everywhere are wondering if this is the new normal or whether finance stocks are a screaming buy today. The answer depends on the company so to help you figure out whether BBT should be on you radar I invite you to read our premium research report on the company today. We'll fill you in on both reasons to buy and reasons to sell BBT and what areas that BBT investors need to watch going forward. Click here now for instant access
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