Sunday, March 21, 2010

STT Q4 estimate

STT Q4 estimate

Base Case

1.servicing $882*1.02 = 961
2.investment management fees = 231*(1.01) = 233
3.trading revenue, 270*0.9 = 240
4.security finance: 83 * 1 = 83
5.other: 60
6.net interest revenue: 729*0.9 = 660
 (NIM 2%, 1.6% ex discount accretion)


total revenue 2.236 bil

expense $1.56*1.03 = 1.62

(2.236 - 1.62)*0.7 = 0.42 bil

EPS $0.84 > mean estimate $0.78

suggestions: overweight

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