Boston, MA 01/22/2014 (wallstreetpr) – Bank of America Corp (NYSE:BAC)’s Chief Executive Officer, Brian T. Moynihan pointed towards Richard Davis, the CEO of U.S. Bancorp (NYSE:USB) when, in the November panel discussion, he was asked who he sees as a potential threat. Moynihan fears Davis would sweep away all his customers. He was seconded by the head of the PNC Financial Services Group Inc. (NYSE:PNC), William Demchak the very next moment.
Since 2007, Davis has leaded U.S. Bancorp to higher altitudes in a number of businesses, with its tremendously increased market share. The largest regional lender of the nation has left behind United States’ four biggest banks all through 2013. The banks have failed to reach the level of management expertise that U.S. Bancorp has achieved in areas including return on assets, return on equity and cost controls.
U.S. Bancorp will release its full year results on Jan 23, which analysts anticipate will further prove the company’s leadership over banks. According to stock market valuation, Davis has already surpassed his rivals as the company’s shares trade at 3.3 times the tangible book value. None of his peers are even close. However, this has also led analyst to raise questions on whether the shares have reached their peak already. Only about 20% of the analysts following the share recommend it as a good buy as they fear the sell value would be lower than the current buying rate.
Bank of America: more competitive
Bank of America might be seen shifting focus from a legal cleanup of four years to making its operations more aggressive, as Moynihan has hinted. The Charlotte, North California based firm and JPMorgan Chase & Co. (NYSE:JPM), both have four times the staff at U.S. Bancorp and six fold the assets. JPMorgan has also lowered its estimates for probable excess legal bills, the U.S. biggest lender’s Chief Financial Officer Marianne Lake informed analysts. This ease of disputes could impact U.S. Bancorp adversely whose advantage may be seen wearing away.