Analysts are encouraging US investors to purchase stocks from Asian-American banks in the region. Two of banks in LA right now are at the top of the experts’ list. Indeed, BBCN Bancorp was rated at 87 percent and SNL Financial indicated that it would perform better than other banks throughout America. That put it in first place, only beaten by the parent of South Carolina Bank & Trust that got 100 percent “buys.”
In general, according to Peyton Green, a Sterne Agee analyst, investors are seeking out “a strong organic growth profile, the ability to serve as an opportunistic consolidator or … exposure to faster growing niche business.”
This is great news for east west economy and even more positive for banks throughout the world. It’s a nice move away from the Great Recession and real estate collapse. However, some clients are still disturbed by these factors and are staying away from banks, especially SME Korean American owners. Indeed, according to CEO of the Korean Churches for Community Development, Hyepin Im, “some individuals and businesses are coming out of it, but plenty are still struggling. Still, foreign investment is helping the economy to recover. If you’re hitting the bottom, the only way to go is up.”
Whether east or west in origin, investors don’t care. They are looking for banks that “stand out from the crowd,” in the current environment of escalating stock prices. They want banks that can act fast, growing their operations speedily or have the capacity to acquire other banks when the industry consolidates. Currently in LA, it seems that it’s the Korean ones that are succeeding in this.