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The Birmingham, Ala., bank made more money and spent less on bad loans than expected, but CEO Grayson Hall had to answer questions about why other Southeastern regional banks grew loans and revenue when it did not.
April 24 -
According to American folklore, the famously long-legged Abraham Lincoln was once asked: "Abe, how long should a man's legs be?" Lincoln is reported to have answered: "Long enough to reach the ground."
April 17
As far as Kelly King is concerned, only six of the big banking companies are locks to make it through the next decade.
King, the chairman and chief executive of BB&T, on Tuesday resurrected the theory of a banking oligopoly. The view,
During BB&T's annual meeting in Winston-Salem, N.C., King told attendees that he expects three $1 trillion-asset banks to exist in five to 10 years: Bank of America, JPMorgan Chase and Wells Fargo. Below them, he believes there will be five to seven large regionals that survive. "Banks like BB&T, U.S. Bancorp and PNC," King said.
"That can be a really good place" for BB&T, he said.
His timing was interesting, given all the chatter among bankers, politicians and regulators about
What made his comments particularly noteworthy were the banks that he left off the list. The glaring omission was Citigroup, which had $1.9 trillion in assets at March 31. Also missing: Fifth Third, KeyCorp, SunTrust Banks and Regions Financial.
Allison
During Allison's time leading BB&T, analysts speculated about the company's interest in mergers of equals, tossing out Fifth Third in Cincinnati and Regions in Birmingham, Ala., as possible partners. Allison said in 2006 that he had reached out to Regions
King would not discuss any companies other than BB&T during an interview after the meeting, though he said survival will largely depend on each bank's ability to serve their markets. "What is your strategic proposition going forward?" he added. "Is the company creating — or is it able to create — a value proposition in the marketplace that is substantially competitive enough to grow organically or through acquisition partnerships?"
Efficiency will also play a role. He said during his remarks to shareholders that banks must get their efficiency ratios down into the low 50s to be considered high performers. "It starts with the asset size and the economies that go with that," he added in the interview.
BB&T clearly has an idea of what its role will look like. "You won't see banks like us becoming truly national, but you could see us in the Midwest all the way right down to Texas," he said. BB&T entered Texas in 2009 after