"This was a surprise, since BBT passed the quantitative part of CCAR with a 7.8% post-stress loss capital ratio and had sailed through previous reviews," Mosby said, adding that "BBT is not approved to execute any incremental capital distributions, including merger & acquisition requests," until its revised capital plan is approved. BB&T will submit the revised plan by the end of the third quarter.
BB&T has been one of the stronger regional banks through the credit crisis and its aftermath, with returns on average tangible common equity ranging from 8.22% to 20.45% over the past five years, according to Thomson Reuters Bank Insight.
The company will release first-quarter results April 18, with analysts expecting earnings of 62 cents a share, declining from 71 cents in the fourth quarter, but increasing from 59 cents in the first quarter of 2012.
JPMorgan Chase analyst Vivek Juneja has a "neutral" rating on BB&T, with a price target of $33.50, and said in a report on Tuesday that the bank is "growing revenues solidly, led by faster loan and deposit growth and increases in some fee-based businesses such as insurance brokerage."
"BBT is doing a good job at growing higher-yielding specialized loans and has also benefited recently from sharp reduction in credit costs," Juneja wrote.
Juneja has stuck with his "neutral" rating for BB&T, with the shares "trading at a premium to peers, which reflects its appropriate valuation."
Interested in more on BB&T? See TheStreet Ratings' report card for this stock.
-- Written by Philip van Doorn in Jupiter, Fla.