Financial stocks Underperforming, But Regional Banking Stocks Lead (C, BAC, GS, STI, RF, ZION)

Financial stocks Underperforming, But Regional Banking Stocks Lead (C, BAC, GS, STI, RF, ZION)

Financial stocks were among the worst performing on Monday with the broader markets on political disruption in Europe. Late Sunday the Socialist challenger for the French presidency, François Hollande, would face off incumbent Nicolas Sarkozy in the second round.

Moreover, global markets fell sharply after the HSBC Chinese manufacturing Purchasing Managers’ Index rose to a two-month high of 49.1, but readings below 50 indicate a contraction rather than an expansion.

Various large cap banking stocks were under pressure with Citigroup Inc.(NYSE:C) slid 2.21% to $33.14, Bank of America Corp(NYSE:BAC) fell over 2% to $8.19 and Goldman Sachs Group, Inc.(NYSE:GS) lost about 1% to $111.33.

However, few regional banking stocks were bucking the market trend with SunTrust Banks, Inc.(NYSE:STI)shares climbed about 4% to $23.47 after the bank reported a 38.80% in its first-quarter on lower loan charge-offs and delinquencies and moderately improved new lending.

The bank earned $250 million, or 46 cents a share, compared with $180 million, or 38 cents a share in the first quarter of 2011, well above analysts’ estimates by 13 cents.

Revenue during the latest quarter grew 3% to $2.2 billion. Revenue at SunTrust, as at several other large regional banks that reported last week, was boosted by higher mortgage income that totaled $63 million in the first quarter compared with losses of $62 million in the last quarter of 2011 and of $1 million in last year’s first quarter.

Noninterest expenses fell from the fourth quarter, when the bank set aside $120 million for a tentative mortgage servicing settlement, but rose 5 percent from a year ago on higher compensation and benefit costs and operating losses related to legal and mortgage servicing costs.

Regions Financial Corporation(NYSE:RF) rose 0.10% to $6.07. The bank is scheduled to report its earnings tomorrow. Analysts are estimating the bank to report EPS of 8 cents on revenue of $1.34 billion, compared to a year ago profit of $0.01 on revenue of $1.71 billion.

Zions Bancorporation(NASDAQ:ZION) is trading higher by 1.41% ahead of its earnings after the bell today.  Analysts are estimating the bank to report a profit of 27 cents on revenue of $565.61 million, compared to a year ago profit of $0.08 a share on revenue of $558 million.