 | About Realstockvalue |
|
| The RSVX is our stock portfolio. We started the portfolio on January 2010 and we will measure the performance against the S & P 500. Click here to read more about the RSVX and the underlying stocks. |
| We try to continuously improve our valuation calculation. If you have suggestions to improve the valuations or you think our valuations are erroneaous, please discuss the valuations on the messageboard |
On a weekly basis we create a newsletter, which includes an overview of the most undervalued stocks and an overview of new stock analyses. This newsletter is completely free and you can subscribe by entering your e-mail address below.
|
| | Suntrust Banks
Description of the Business
Suntrust Banks, Inc (STI) is a financial services holding company in the US. The company provideds deposit, credit, trust and investment services through its banking subsidiary, Suntrust Bank. It also provides mortgage banking, credit-related insurance, asset management, securities brokerage and capital market services through its subsidiaries.
The bank operates in the business segments Retail, Commercial, Corporate and Investment Banking, Wealth and Investment Management, and Mortgage.
Its main markets are Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia and the District of Columbia.
The company operates 1,692 retail branches and 2,582 ATMs.In addition, SunTrust provides customers with a full range of technology-based banking channels, including Internet, PC, and Automated Telephone Banking.
Analysis of Competitors
Its competitors are:
- Bank Of Amerika
- Wells Fargo
- JP Morgan
- Citigroup
- Huntington Bancshares
- Fifth THird Bancorp
Competitive Advantages
As a financial organization it is difficult to differentiate from competitors. Banks are competing on price and services.
A very important critical success factor is risk management.
A bank can achieve lower prices (lower interest rates on loans) compared to competitors by having lower funding costs for
example because of deposits or high credit ratings. Another important differentiator is the perceived trust customers have in a bank.
The big banks have a competitive advantage compared to smaller local players, as they have the resources to provide big loans to big corporations.
About 55% of STI debt is funded by deposits. They have a high interest margin of more than 50% due to low funding costs.
Their tier 1 ratio is above 10 after receiving $4.85 billion TARP money.
Super investor Warren Buffet own Suntrust shares, although his STI shares are only a small percentage of his Berkshire Hathaway holdings.
Financial Analysis
About 70% of STI debt is funded by deposits. They have a high interest margin of more than 50% due to low funding costs. In Q4 |
