UPDATE 1-European banks to write down 9.5 bln eur more-JP Morgan

miércoles 4 de junio de 2008 12:37 CEST

(Recasts, adds details)

June 4 (Reuters) - European banks will likely take further mark-to-market writedowns of 9.5 billion euros for the rest of the year, according to J.P. Morgan Securities, which now expects total writedowns for 2007 and 2008 to be higher at about 30.6 billion euros.

The brokerage, which previously saw writedowns for 2007 and 2008 totaling 24.9 billion euros, said the estimate change was mainly due to writedowns on monoline counterparty exposures that have risen by 4.8 billion euros.

JP Morgan estimates that Germany's Deutsche Bank (DBKGn.DE: Cotización) will need to take additional write-downs of 3.6 billion euros while Swiss bank Credit Suisse CSGN.VX will have to take write downs of 2.1 billion Swiss francs.

The brokerage said Societe Generale (SOGN.PA: Cotización) will need to further write-downs of 1.8 billion euros while Natixis SA (CNAT.PA: Cotización) will need to record writedowns of 1.4 billion euros more.

JP Morgan, however, said the worst of the markdowns appear to have been taken, adding that capital remained scarce in the banking industry and that it saw ongoing pressure to de-leverage driven by credit investors, rating agencies, and local regulators.

JP Morgan maintained its "neutral" view on the European wholesale and investment banks sector. (Reporting by Ramya Dilip in Bangalore; Editing by Jarshad Kakkrakandy)