The earnings rush continues through the week of July 25to July 29, with several large and midsize U.S. banks and thrifts expected to releasequarterly results.
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* KeyCorp,Popular Inc. and are the biggest banksexpected to report second-quarter results before markets open on Tuesday, July 26.
KeyCorp earned 27cents per share in the 2015 second quarter, and the S&P CapitalIQ consensus estimate for normalized EPS for the 2016 second quarter is 28 cents.The Cleveland-based company expects averageloans to grow in the mid-single digits and net interest income to growin the low- to mid-single digits without the benefit of another rate increase in2016.
With a large reversal of its deferred tax asset valuationallowance, Popular earned $5.79in the 2015 second quarter, much higher than the 82 cents consensus EPS estimatefor the 2016 second quarter. Amid the uncertainty of Puerto Rico's fiscal situation,executives of the Hato Rey, Puerto Rico-based company said during the company'sfirst-quarter earnings call that they "remaincautious" in their short-term outlook. Popular expects loan balancesto remain stable overall in 2016, and in terms of quarterly operating expenses,Popular expects an average of $305 million to $310 million through the end of 2016.
* Zions Bancorp.,which posted a net lossof 1 cent per share in the 2015 second quarter due to a loss from its sale of CDOs,is expected to announce second-quarter 2016 results after markets close Tuesday.The consensus EPS estimate for the Salt Lake City-based company's 2016 second quarter is 41cents. In a May investor presentation, Zions disclosed that losses related to theoil and gas industry for 2016 are projected to be in the $100 million range.
* State StreetCorp. and New York CommunityBancorp Inc. are on deck to report earnings before markets open Wednesday,July 27. Also on Wednesday, second-quarter earnings of BOK Financial Corp., Cullen/FrostBankers Inc. and EverBankFinancial Corp are slated to be announced before markets open.
The mean EPS estimate for BOK Financial in the 2016 second quarteris 99 cents, lower than the $1.15it earned in the year-ago second quarter. President and CEO Steven Bradshaw saidduring the Tulsa, Okla.-based company's first-quarter earnings call that while growthof the loan portfolio was fairly muted in the first quarter, BOK Financial expectspercentage loan growth in 2016 in the mid-single digits.
* On Thursday, July 28, Fifth Third Bancorp is set to report quarterly results beforemarkets open. The Cincinnati-based company earned 36 cents per share in the 2015 second quarter, and the consensusEPS estimate for the 2016 second quarter is 38 cents.
In Fifth Third's first-quarter earnings call, CFO TayfunTuzun said that the drivers of the company's broader outlook "remain unchanged,"and that it expects adecline in the consumer loan portfolio and year-over-year commercial loan growthabove 3%. Fifth Third's outlook on deposits includes incremental spread compressiondue to the bank's continued emphasis on originating higher-end quality loans.