5 Best Bank Stocks To Buy For 2014

Jacquelyn Martin/AP JPMorgan Chase Chairman and CEO Jamie Dimon has given up the title of chairman of the company's main bank subsidiary to conform with a new internal policy on multiple roles. Dimon has been under regulator scrutiny since the company last year disclosed it was losing billions of dollars on derivatives in what has become known as the "London Whale" trades. At this year's annual meeting, he won a vote of confidence called, in part, because of a breakdown in risk controls. Dimon turned over the title of chairman of the deposit-taking unit, JPMorgan Chase Bank to a fellow director of the holding company, William Weldon, on July 1, a JPMorgan Chase spokesman said. Dimon is now chairman emeritus of the subsidiary, according to a document released Thursday, which is the public portion of the company's so-called "living will" filed with the Federal Deposit Insurance Corp. and Federal Reserve. Living wills of bank holding companies describe how the companies could be taken apart if they became financially distressed. Dimon gave up the title to conform with a new internal policy whereby the holding company's chairman isn't also the chairman of a subsidiary, according to the spokesman. The change in Dimon's title at the subsidiary was reported earlier on Thursday by the Wall Street Journal. JPMorgan (JPM) recently agreed to pay nearly $1 billion in penalties to regulators for its handling of the derivatives debacle. It is also in negotiations with federal and state officials to settle, for as much as $11 billion, allegations of wrongdoing in its sales of mortgage securities.

Top 10 Diversified Bank Stocks To Watch For 2015: Banco Santander Brasil SA (BSBR)

Banco Santander (Brasil) S.A. (Santander Brasil), incorporated on August 9, 1985, is a full-service bank in Brazil. The Bank operates its business along three segments: Commercial Banking, Global Wholesale Banking and Asset Management and Insurance. Through its Commercial Banking segment, the Bank offers traditional banking services, including checking and savings accounts, home and automobile financing, unsecured consumer financing, checking account overdraft loans, credit cards and payroll loans to mid- and high-income individuals and corporations (other than to its Global Banking and Markets clients). Its Global Wholesale Banking segment provides financial services and solutions to a group of approximately 700 local and multinational conglomerates, offering such products as global transaction banking, syndicated lending, corporate finance, equity and treasury. Through its Asset Management and Insurance segment, the Company manages fixed income, money market, equity and multi-market funds and offers insurance products complementary to its core banking business to its retail and small- and medium-sized corporate customers.

Lending Activities

As of December 31, 2010, the Bank�� total loans and advances to customers equaled R$160.6 billion (42.9% of its total assets). Net of allowances for credit losses, loans and advances to customers equaled R$151.4 billion as of December 31, 2010 (40.4% of its total assets). In addition to loans, it had outstanding R$93.5 billion as of December 31, 2010.

Substantially all of its loans are to borrowers domiciled in Brazil and are denominated in reais. Its commercial, financial and industrial loans include primarily loans to small and medium-sized enterprises (SMEs) in its Commercial Banking segment, and to Global Banking and Markets corporate and business enterprise customers in its Wholesale Global Banking segment. The principal products offered to SMEs in this category include revolving loans, overdraft facilities, installme! nt loans, working capital and equipment finance loans. Credit approval for SMEs is based on customer income, business activity, collateral coverage and internal and external credit scoring tools. Collateral on commercial, financial and industrial lending to SMEs generally includes receivables, liens, pledges, guarantees and mortgages, with coverage generally ranging from 100% to 150% of the loan value depending on the risk profile of the loan. Its Wholesale Global Banking customers are offered a range of loan products ranging from typical corporate banking products (installment loans, working capital and equipment finance loans) to more sophisticated products (derivative and capital markets transactions).

The Bank�� Real estate-construction loans include construction loans made principally to real estate developers that are SMEs and corporate customers in its Wholesale Global Banking Segment. Loans in this category are generally secured by mortgages and receivables, though guarantees may also be provided as additional security. Real estate-mortgage loans include loans on residential real estate to individuals. All loans granted under this category are secured by the financed real estate. Installment loans to individuals consist primarily of unsecured personal installment loans (including loans whose payments are automatically deducted from a customer�� payroll), revolving loans, overdraft facilities, consumer finance facilities and credit cards. Lease financing includes primarily automobile leases and loans to individuals. The vehicle financed acts as collateral for the particular loan granted.

Investment Activities

The Bank�� investments include Government securities-Brazil, Government securities-other countries and other debt securities. As of December 31, 2010, the book value of the investment securities was R$84.7 billion (representing 22.6% of its total assets). Brazilian government securities totaled R$55.8 billion, or 65.9% of the Bank�� investment! securiti! es as of December 31, 2010. As of December 31, 2010, the Bank held no securities of single issuers or related group of companies whose aggregate book or market value exceed 10% of stockholders��equity, other than Brazilian government securities, which represented 76.9% of its stockholders��equity.

Sources of Funds

The Bank offers its customers a variety of deposit products, such as current accounts (also referred to as demand deposits), which do not bear interest; traditional savings accounts, which earn the Brazilian reference rate for savings accounts (taxa referencial) plus 0.5% per month, as set by the federal government, and time deposits, which are represented by certificates of bank deposits (CDBs), which normally have a maturity of less than 36 months and earn interest at a fixed or floating rate. In addition, it accepts deposits from financial institutions as part of its treasury operations, which are represented by certificates of interbank deposit CDIs, and which earn the interbank deposit rate.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Banco Santander (Brasil) SA (NYSE: BSBR) shares were also up, gaining 12.46 percent to $6.50 on Q1 results. The company reported Q1 recurring net income of 1.427 billion reais ($637 million).

5 Best Bank Stocks To Buy For 2014: Astoria Financial Corp (AF)

Astoria Financial Corporation, incorporated on June, 14, 1993, is the unitary savings and loan association holding company of Astoria Federal Savings and Loan Association (Astoria Federal). The Company�� principal business is the operation of its wholly owned subsidiary, Astoria Federal. Astoria Federal�� primary business is attracting retail deposits from the general public and investing those deposits, together with funds generated from operations, principal repayments on loans and securities and borrowings, primarily in one- to four-family mortgage loans, multi-family mortgage loans, commercial real estate loans and mortgage-backed securities. Astoria Federal also invests in consumer and other loans, the United States Government, government agency and government-sponsored enterprise (GSE), securities and other investments.

Lending Activities

The Company�� loan portfolio consists primarily of mortgage loans. As of December 31, 2012, 74% of its total loan portfolio was secured by residential properties and 24% was secured by multi-family properties and commercial real estate. The remainder of the loan portfolio consists of a variety of consumer and other loans, including commercial and industrial loans originated in 2012 through its business banking initiatives. As of December 31, 2012, its net loan portfolio totaled $13.08 billion, or 79% of total assets. The Company originates mortgage loans either directly through its banking and loan production offices in New York or indirectly through brokers and its third party loan origination program. It also originates mortgage loans for sale. The Company�� primary lending focus is on the origination and purchase of first mortgage loans secured by one- to four-family properties that serve as the primary residence of the owner.

The Company also originates multi-family and commercial real estate loans. As of December 31, 2012, multi-family mortgage loans totaled $2.41 billion, or 18% of its total loan portfolio,! and commercial real estate loans totaled $773.9 million, or 6% of its total loan portfolio. At December 31, 2012, $264.1 million, or 2%, of the Company�� total loan portfolio consisted of consumer and other loans which were primarily home equity lines of credit. The Company also offers overdraft protection, lines of credit, commercial loans and passbook loans. Consumer and other loans, with the exception of home equity and commercial lines of credit, are offered primarily on a fixed rate, short-term basis.

Investment Activities

At December 31, 2012, the Company�� securities portfolio totaled $2.04 billion, or 12%, of total assets. The Company does not use derivatives for trading purposes. Its securities portfolio consists primarily of mortgage-backed securities. At December 31, 2012, its mortgage-backed securities totaled $1.94 billion, or 95%, of total securities, of which $1.92 billion, or 94%, of total securities, were real estate mortgage investment conduits (REMIC) and collateralized mortgage obligation (CMO) securities, substantially all of which had fixed rates. Of the REMIC and CMO securities portfolio, $2.35 billion, or 98.7%, are guaranteed by Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) or Government National Mortgage Association (Ginnie Mae) as issuer. At December 31, 2012, its securities available-for-sale totaled $336.3 million and its securities held-to-maturity totaled $1.7 billion. At December 31, 2012, it had no investments in repurchase agreements and federal funds sold.

Sources of Funds

The Company�� primary source of funds is the cash flow provided by its investing activities, including principal and interest payments on loans and securities. Its other sources of funds are provided by operating activities and financing activities, including deposits and borrowings. The Company offers a variety of deposit accounts with a range of interest rates and terms. It offers ! passbook ! and statement savings accounts, money market accounts, negotiable order of withdrawal (NOW) and demand deposit accounts, liquid certificates of deposit (Liquid CDs), and certificates of deposit, which include all time deposits other than Liquid CDs. Liquid CDs have maturities of three months, require the maintenance of a minimum balance and allow depositors the ability to make periodic deposits to and withdrawals from their account. At December 31, 2012, its deposits totaled $10.44 billion. Of the total deposit balance, $1.28 billion, or 12%, represented individual retirement accounts during the year ended December 31, 2012. It held no brokered deposits at December 31, 2012. Core deposits represented 53.3% of total deposits at December 31, 2011. Reverse repurchase agreements are accounted for as borrowings and are secured by the securities sold under the agreements. At December 31, 2012, borrowings totaled $4.37 billion. It also obtains advances from the Federal Home Loan Bank of New York (FHLB-NY).

Subsidiary Activities

In addition to Astoria Federal, the Company has two other subsidiaries, AF Insurance Agency, Inc. and Astoria Capital Trust I. AF Insurance Agency, Inc. is a life insurance agency. Through contractual agreements with various third parties, AF Insurance Agency, Inc. makes insurance products available primarily to the customers of Astoria Federal. Astoria Federal�� wholly owned subsidiaries include AF Agency, Inc., Astoria Federal Savings and Loan Association Revocable Grantor Trust, Astoria Federal Mortgage Corp. (AF Mortgage), Fidata Service Corp. (Fidata), Marcus I Inc. and Suffco Service Corporation (Suffco). AF Agency, Inc. makes various annuity products available to the customers of Astoria Federal through an unaffiliated third party vendor. AF Mortgage is an operating subsidiary through which Astoria Federal engages in lending activities outside the State of New York through its third party loan origination program. Fidata mortgage loans totaled $5.09 bi! llion at ! December 31, 2012. Suffco serves as document custodian for the loans of Astoria Federal and Fidata and certain loans being serviced for Fannie Mae and other investors.

Advisors' Opinion:

• [By Jonathan Morgan]

  Air France-KLM Group (AF), Europe�� second-biggest airline by sales, retreated 2.8 percent. Mediaset SpA climbed 2.8 percent after Credit Suisse Group AG raised its price target on the Italian broadcaster. Serco Group Plc added 2.7 percent after predicting that its revenue growth in the first half will exceed its previous estimates.

• [By Namitha Jagadeesh]

  International Consolidated Airlines Group SA (IAG) and Air France-KLM (AF) Group rose with as a gauge of travel stocks as oil prices fell after Iran�� accord. PSA Peugeot Citroen gained 3.7 percent after people familiar with the matter said its chief executive officer plans to step down next year. Fresenius Medical Care AG surged the most in five years after U.S. regulators scrapped a plan to cut Medicare payments next year.

5 Best Bank Stocks To Buy For 2014: J P Morgan Chase & Co(JPM)

JPMorgan Chase & Co., a financial holding company, provides various financial services worldwide. Its Investment Bank segment provides various investment banking products and services, including advising on corporate strategy and structure, capital-raising in equity and debt markets, risk management, market-making in cash securities and derivative instruments, prime brokerage, and research services serving corporations, financial institutions, governments, and institutional investors. The company?s Commercial Banking segment provides lending, treasury, investment banking, and asset management services to corporations, municipalities, financial institutions, and not-for-profit entities. Its Treasury & Securities Services segment offers cash management, trade, wholesale card, and liquidity products and services to small and mid-sized companies, multinational corporations, financial institutions, and government entities. It also holds, values, clears, and services securities, cash, and alternative investments for investors and broker-dealers, and manages depositary receipt programs worldwide. JPMorgan?s Asset Management segment provides investment and wealth management to institutions, retail investors, and high-net-worth individuals. This segment offers investment management in equities, fixed income, real estate, hedge funds, private equity, and liquidity products, as well as trust and estate, banking and brokerage services, and retirement services. Its Retail Financial Services segment offers retail banking and consumer lending services that include checking and savings accounts, mortgages, home equity and business loans, and investments through ATMs, online banking, and telephone banking, as well as auto dealerships and school financial-aid offices. The company?s Card Services segment issues credit cards and processes various credit card payments. JPMorgan Chase & Co. was founded in 1823 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Jessica Alling]

  Top executives at most of the Big Four banks were outspoken about the effect of rising rates prior to the earnings season open. Wells Fargo CEO John Stumpf and JPMorgan Chase� (NYSE: JPM  ) CEO Jamie Dimon were both quoted saying that new mortgage activity would likely decline because of the higher rates, but that eventually a normalized rate environment would be good for the banks overall. In the meantime, both have steered their respective insitutions though the volatile environment and presented record earnings.

• [By Jay Jenkins]

  How do the banks stack up?
  Wells Fargo (NYSE: WFC  ) and JPMorgan Chase (NYSE: JPM  ) are good representations of the industry at large. Both banks reported a 32% increase in active mobile customers year over year. Both banks mention mobile in their investor presentations and reporting, but the reports leave me feeling that mobile is not a major focus for them. The growth trends in mobile customers more likely result from the broader trend, and do not reflect innovative products at either bank.

5 Best Bank Stocks To Buy For 2014: Danske Bank A/S (DANSKE)

Danske Bank A/S (the Bank) is a Denmark-based bank. Its operations are divided into five business segments: Banking Activities caters to personal and business customers, comprising finance centers, mortgage finance operations and real estate agency operations, as well as property finance operations; Danske Markets and Treasury is responsible for the Bank�� activities in the financial markets, such as trading in fixed income, foreign exchange, equities and interest-bearing securities, as well as equity portfolios, among others; Danske Capital is engaged in the development and marketing of wealth management products and services; Danica Pension encompasses the Bank�� activities in the life insurance and pensions market; Other Activities encompasses the Bank�� real estate activities and support functions, as well as the elimination of returns on own shares and bonds. Is operational in 15 countries, with emphasis on the Nordic region. Advisors' Opinion:

• [By Namitha Jagadeesh]

  Kabel Deutschland Holding AG rose to a record after getting an offer from Liberty Global Plc. Aveva Group Plc (AVV) jumped 5.4 percent as Citigroup Inc. upgraded the shares. Danske Bank A/S (DANSKE) dropped 6.1 percent after Denmark�� financial regulator ordered it to increase its risk-weighted assets. Royal Imtech NV fell to the lowest price since 2004 after posting a first-quarter loss on costs relating to a fraud investigation.