Article Abstract:
The thrift industry, which comprised of savings banks and savings and loan associations, is being hurt early in the year 2000 as higher interest rates are reducing loan volume. Higher funding costs, less consolidation benefits, and fewer loans, along with the Internet, will also hurt profit margins in the year 2000, also. There are several good stocks in this industry, although most are not timely in the 1st qtr of the year 2000, and a number have growth potential for the next three to five years.
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Article Abstract:
Higher interest rates in mid-1999 have lessened loan demand at many of the US thrift institutions and mortgage applications have dropped 10% from the same period in 1998. Many thrifts are seeking earnings growth in order to increase profit margins and mergers and acquisitions may be the best method to achieve this. These stocks are not timely in the 3rd qtr of 1999, in spite of earnings, but several have potential for appreciation for the next three to five years.
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Article Abstract:
Higher interest rates have had damaging effects on both mortgage volume and thrift industry stock prices in 1999 and mortgage originations will likely fall 25% to 30% in the second half of 1999. Industry consolidation has also increased due to competition, and the Internet is having an effect on the thrift industry with new forms of loan originations. These stocks are not timely in 1999, but investors should find several opportunities for the next three to five years.
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