The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Matthew Keating - Barclays - Analyst
: That's right. Thanks, Jim. So, we are going to put up some audience response questions in just a moment, and so the first question we have
for you is, if you don't own shares of Webster or are underweight the stock at the moment, what might cause you to change your mind?
One, loan growth accelerating, two, stronger economic growth in its footprint, three, [NIM] expansion, four, progress on its initiatives as
designed to augment its fee income mix, or five, increased dividends and share repurchases. So, if you could take 10 seconds to vote, that
would be helpful.
Question: Matthew Keating - Barclays - Analyst
: Okay, the results are in, and it looks like 44% of the audience is waiting for loan growth to accelerate before getting more aggressive in
terms of their positioning around Webster's stock.
Question: Matthew Keating - Barclays - Analyst
: Great. The next question, please? So, second question is which of the following do you view as Webster's strongest investment attribute?
One is strong market position in its Connecticut market, two, its recent track record of delivering on stated goals, three, its ability to participate
in future industry consolidation, four, its modest PE valuation discount versus peers, or five, its economic profit focus. So take, again, 10
seconds to vote, please.
So, the results here show that 45% of the audience considered your recent track record of delivering on stated initiatives as sort of your
most favorable investment attribute. So, I think that's fairly self-explanatory, so maybe we'll move on to the next question.
Question: Matthew Keating - Barclays - Analyst
: So, where would you like to see Webster focus its resources over the next year? One, driving faster loan growth, two, enhancing its market
position in Boston and Westchester, three, streamlining expenses, four, repurchasing shares or increasing its dividend, or five, engaging in
financially disciplined M&A?
Okay, so the results here were a tie actually between driving faster loan growth and enhancing your market position in Boston and Westchester.
So, I think we've heard about the initiatives to accelerate loan growth that's underway, but maybe you could talk about your presence in
both Boston and Westchester and what the plans are.
Question: Matthew Keating - Barclays - Analyst
: Great. We'll move on to our final audience response question. And this is, over the next two years, do you expect Webster to, one, acquire
a smaller bank, two, enter into a mergers of equals transaction, three, sell to a larger bank, or four, refrain from M&A activity entirely? And
we'll take 10 seconds to address this question.
LSEG STREETEVENTS | www.lseg.com | Contact Us
consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies.
SEPTEMBER 10, 2013 / 4:00PM, WBS.N - Webster Financial Corp. at Barclays Global Financial Services
Conference
Interesting. So, 44% of the audience expects Webster to refrain from M&A activity entirely, followed by 33% that think it might sell to a larger
bank over the next two years. So, maybe you could focus on the M&A environment in general, or--?
Question: Matthew Keating - Barclays - Analyst
: Great. Well, it looks like we're out of time, but there will be a breakout session actually in this room. To the extent you have additional
follow-ups, please feel free to come up and ask. Thank you very much, Jim.
|
