On Aug 15, Zacks Investment Research upgraded
Sumitomo Mitsui Financial Group Inc.
) to a Zacks Rank #1 (Strong Buy).
BARCLAY PLC-ADR (BCS): Free Stock Analysis
BANCO FRANC-ADR (BFR): Free Stock Analysis
MITSUBISHI-UFJ (MTU): Free Stock Analysis
SUMITOMO-MITSUI (SMFG): Free Stock Analysis
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Why the Upgrade?
Sumitomo Mitsui Financial has been witnessing rising earnings
estimates on the back of strong fiscal first-quarter 2013 results
(ended Jun 30). Moreover, this well-known foreign bank has
recorded a year-to-date return of 21.6%.
Sumitomo Mitsui Financial reported its fiscal first-quarter
results on Jul 29 with net income at ¥288.3 billion ($2.9
billion), more than double as compared with the year-ago
earnings. Robust results for the reported quarter were primarily
aided by elevated net interest income, higher fees and
commissions and gains on stocks.
Net interest income increased 20.8% from the year-ago period to
¥399.7 billion ($4.0 billion). Moreover, fees and commissions
rose 31.3% year over year to ¥250.3 billion ($2.5 billion).
However, on the downside, general and administrative expenses
surged 6.4% year over year to ¥391.4 billion ($3.95 billion).
This reflects undisciplined expense management.
Following fiscal first-quarter 2013 results, over the last 30
days, the Zacks Consensus Estimate for fiscal 2013 increased
17.9% to 99 cents per share. For fiscal 2014, the Zacks Consensus
Estimate advanced 7.9% to 96 cents per share over the same time
Other Stocks to Consider
Besides Sumitomo Mitsui Financial, other foreign banks that are
worth considering include
BBVA Banco Franc
) with a Zacks Rank #1, while
Mitsubishi UFJ Financial Group, Inc.
) carry a Zacks Rank #2 (Buy).