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Bank Earnings Preview: Week beginning April 11


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Bank Earnings Preview: Week beginning April 11

Severallarge and midsize U.S. banks and thrifts are scheduled to report in the week beginningApril 11. Among the highlights:

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* will reportfirst-quarter results before markets open Wednesday, April 13. The bank earned per share in the first quarterof 2015, and the S&P Capital IQ consensus estimate for normalized EPS for the2016 first quarter is $1.26.

In February,JPMorgan said it expected to increasereserves on its oil-and-gas exposure by roughly $500 million in thefirst quarter. Reserves for the sector were $815 million as of Dec. 31, 2015, andwere expected to be around $1.30 billion at March 31. The bank also expects to increaseits reserves related to the metals and mining industry to near $350 million by March31, compared to reserves of $240 million at the end of 2015.

For 2016,JPMorgan expects renegotiated co-brand agreements and lower mortgage banking revenueto drag noninterest revenue down to $50billion. Meanwhile, even without further rate hikes, the company expectsnet interest income could be $2 billion higher year over year, with projected coreloan growth of 10% to 15%.

* and are the biggestnames scheduled to announce quarterly results before markets open Thursday, April14.

The consensusEPS estimate for BofA in the first quarter of 2016 is 23 cents, lower than the 25cents per share the company earned in the first quarter of 2015.

For WellsFargo, the consensus EPS estimate for the first quarter is 98 cents, compared to$1.04 per share a yearearlier.

* PNC FinancialServices Group Inc. and FirstRepublic Bank are also on deck to report quarterly results before marketsopen Thursday.

For PNC, the consensus EPS estimate for the first quarter is$1.71. The company earned $1.75per share in the 2015 first quarter. The company said in February that its energyportfolio could increase the provision for first-quarter credit losses to the highend of its $75 million to $125 millionrange. PNC also expects net interest income to remain stable in thefirst quarter, and for fee income to go down to mid-single digits while total loanswill remain stable compared to the fourth quarter of 2015.

* Citigroup Inc.'squarterly results are due to be released before markets open Friday, April 15. Theconsensus EPS estimate for Citi's 2016 first quarter is $1.06, compared to the reportedEPS of $1.51 in the 2015first quarter.

CFO John Gerspach said at a recent conference that the companyexpects Citi Holdings to be "marginallyprofitable" for the first quarter, but that Citicorp's investmentbanking revenues will be down 25% from a year earlier.

* is likewisescheduled to announce earnings before markets open Friday. The company earned per share in the 2015 firstquarter, and the consensus EPS estimate for the 2016 first quarter is 19 cents.

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