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Bank Earnings Preview: Week ending July 15

As thebanking industry's second-quarter earnings season begins, SNL presents a snapshotof the earnings scheduled to be reported this week.

Several large and midsize U.S. banks and thrifts are scheduledto report quarterly earnings in the week of July 11. Among the highlights:

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* JPMorganChase & Co. is the biggest company scheduled to report quarterlyresults before markets open Thursday, July 14. JPMorgan earned per share in the 2015 second quarter,and the S&P Capital IQ consensus estimate for normalized EPS for the 2016 secondquarter is $1.43.

It expectscompanywide adjusted expense, excluding legal costs, to be around $56 billion. Thecompany also expects renegotiated co-brand agreements and lower mortgage bankingrevenue to drag noninterest revenue down to $50 billion for 2016.

* Citigroup Inc.and Wells Fargo & Co.are on deck to report earnings before markets open on Friday, July 15.

Citi reported EPS of $1.51in the second quarter of 2015, higher than analysts' 2016 second-quarter consensusEPS estimate of $1.11. CEO Michael Corbat said June 2 that the company's second-quarternet income would be "roughlyflat" compared to the first quarter.

Wells Fargo earned $1.03per share in the second quarter of 2015, and analysts gave the company a consensusEPS estimate of $1.01 for the second quarter of 2016. During Wells Fargo's May 24investor day, CFO John Shrewsberry disclosed that the company for return on assetsand return on equity to reflect "continued low rates, higher levels of liquidity,tighter lending spreads and higher provision expense."

* Second-quarter earnings of U.S. Bancorp and PNCFinancial Services Group Inc. are also slated to be released beforemarkets open July 15.

The mean EPS estimate for the Minneapolis-based company in thesecond quarter of 2016 is 80 cents,the same as its reported second-quarter 2015 EPS. U.S. Bancorp noninterest expense to increase approximately4% in the second quarter from the linked quarter, primarily due to seasonality andhigher branding and compliance costs. The company expects compliance costs to peakin the second quarter.

Pittsburgh-based PNC posted an EPS of $1.88 in the year-earlier quarter, higher than the consensusEPS estimate of $1.76 for the second quarter of 2016.