Miller said in a report on Friday that in addition to JPMorgan, the companies that "disappointed" in the Fed's stress test results included
. Lower minimum Tier 1 common ratios for the big brokers imply "a decreased likelihood for higher capital deployment scenarios in the form of both buybacks and dividends relative to 2012," Miller wrote.
Miller wrote that the following four banks were "best positioned as winners," from the stress tests:
- Fifth Third Bancorp(FITB - Get Report) of Cincinnati. The bank would lose roughly $300 million under the Federal Reserve's "severely adverse scenario," operating through 2014 with a minimum Tier 1 common equity ratio of 8.6%.
- KeyCorp(KEY - Get Report) of Cleveland. The bank's losses through 2014 would total $2.4 billion, with a minimum Tier 1 common equity ratio of 8.0%.
- SunTrust(STI - Get Report) of Atlanta. The bank would lose $4.1 billion through 2014, with a minimum Tier 1 common ratio of 7.3%.
- PNC Financial Services Group(PNC - Get Report). PNC would lose $1.4 million through 2014 under the Fed's scenario of a severe recession, with a minimum Tier 1 common equity ratio of 8.7%.
"Companies with robust stressed capital levels trading at or below tangible book stand to benefit the most from increased share buybacks and higher dividends," Miller wrote. "The most likely beneficiaries, in our view, are Bank of America and KeyCorp."
Bank of America's shares closed at $12.26 on Thursday. The shares traded for 0.9 times their reported Dec. 31 tangible book value of $13.36.
KeyCorp closed at $9.96 Thursday. The stock traded just above tangible book value, according to Thomson Reuters Bank Insight.
-- Written by Philip van Doorn in Jupiter, Fla.