State Street's fourth-quarter net interest margin was 1.36%, contracting from 1.44% the previous quarter and 1.4% a year earlier. The company reported tax-adjusted fourth-quarter net interest revenue -- excluding "conduit-related discount accretion" -- of $600 million, declining from $611 million in the third quarter, but increasing from $577 million year earlier. Mosby estimates that if the yield curve were to steepen by 1 percentage point, State Street's net interest margin would expand by 36 basis points to 1.66%.
Mosby rates Wells Fargo a "buy," with a price target of $46.50, and estimates the company will earn $3.90 a share this year, with EPS increasing to $4.30 in 2014.
The analyst has a "neutral" rating on State Street, with a $57 price target, and estimates the company will earn $4.50 a share this year and $5 a share in 2014.
-- Written by Philip van Doorn in Jupiter, Fla.>Contact by Email. Follow @PhilipvanDoorn
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