UPDATE 1-Barclays lowers Q2 view for Citigroup, JPMorgan

lunes 13 de julio de 2009 14:44 CEST

July 13 (Reuters) - JPMorgan Chase & Co's (JPM.N: Cotización) and Citigroup Inc's (C.N: Cotización) second-quarter results will likely be hurt by the Federal Deposit Insurance Corp's (FDIC) special assessment fee and other one-time charges, said Barclays Capital, which lowered its estimates for the banks.

Analyst Jason Goldberg, however, raised his quarterly profit view for Bank of America (BAC.N: Cotización) to 10 cents a share from breakeven, on better-than-expected capital markets results and continued strength in mortgage banking.

The analyst, who widened his second-quarter loss view for Citigroup to 25 cents a share from 15 cents a share, expects Citicorp to be profitable and Citi Holdings to continue to post an operating loss in the period.

Citigroup will likely be helped by strong investment banking, mortgage, and private bank revenue, while retail bank and card earnings will remain pressured, he said.

The FDIC's special assessment fee will likely hurt Citigroup's results by 10 cents a share, while JPMorgan may take charge of 12 cents a share, he said.

Analyst Goldberg, who cut his profit view for JPMorgan to 10 cents a share from 40 cents a share, said his forecast included a 27 cents a share charge related to the early repayment of Troubled Asset Relief Program funds.

JPMorgan's "core" results should remain solidly profitable -- due to continued strength in capital markets results, mortgage banking and a rebound in asset management -- but partially offset by elevated credit costs, Goldberg said. (Reporting by Archana Shankar in Bangalore; Editing by Anne Pallivathuckal)