9 de junio de 2008 / 12:11 / en 9 años

UPDATE 1-Lehman sees US large-cap banks' 2008 loss at $79 bln

 (For more on analysts' outlook for U.S. financial institutions, double click on [ID:nBNG327142])  (Recasts; Adds analyst comments)
 June 9 (Reuters) - U.S. large-cap banks will likely post losses of about $79 billion in 2008, with net charge-offs for the second quarter expected to total $17 billion, said Lehman Brothers analyst Jason Goldberg, who also cut his 2008 outlook and price target for large banks.
 Goldberg, who upped his loss estimate for large-cap banks by about 30 percent, said increased severity on real-estate related credits was the main driver of higher losses.
 "The deteriorating credit environment and more exotic assets coming on balance sheets could continue to weigh on results," Goldberg wrote in a note to clients.
 The analyst widened his 2008 loss estimate for National City Corp NCC.N and cut his full-year profit estimates for several large-cap banks, including Citigroup Inc (C.N), Bank of America Corp (BAC.N) and JPMorgan Chase & Co (JPM.N).
 Credit card losses were rising mainly in housing troubled states such as California, Florida, Arizona and Ohio, Goldberg said. He expects reserve additions to slow in the second quarter, but said they will likely remain elevated.
 Goldberg estimates "total credit costs to be in the neighborhood of last quarter's $27 billion hit and with leverage lease hits at some."
 "For the overall coverage universe we have posited that the industry's dividend could be largely secure, barring something more than a mild recession," Goldberg said.
 "That said when looking at the three metrics cited, we would highlight SunTrust Banks Inc (STI.N), Wachovia Corp WB.N, Bank of America, Comerica Inc (CMA.N), Fifth Third Bancorp (FITB.O), and KeyCorp (KEY.N) as relatively poorly positioned," he added.  The following table lists the estimate and price target changes on large-cap banks:  COMPANY                        RATING        PRICE TARGET CURRENT PRICE  2008 EPS VIEW
                                           New   Old    June 6 Close   New    Old  Bank of America Corp (BAC.N)   Equal weight  $45   $47    $30.50         $2.40  $2.80  Citigroup Inc (C.N)            Overweight    $31   $34    $20.06         $0.33  $0.40  JPMorgan Chase & Co (JPM.N)    Overweight    $50   $53    $40.09         $2.70  $3.25  Wachovia Corp WB.N           Overweight   $31   $34    $20.13         $1.40  $1.70  BB&T Corp (BBT.N)           Underweight   $36   $37     $28.06
     $2.95  $3.05  Fifth Third Bancorp (FITB.O)   Equal weight  $25   $27    $16.74         $1.80  $2.02  First Horizon National (FHN.N) Equal weight  $13   $14    $9.36          $0.10  $0.25  KeyCorp (KEY.N)                Underweight   $23   $25    $17.30         $1.30  $2.10  Marshall & Ilsley MI.N       Equal weight  $26   $27    $21.28         $1.78  $2.05  PNC Financial Services (PNC.N) Equal weight  $70   $71    $60.98         $4.80  $4.85  Regions Financial (RF.N)       Underweight   $23   $25    $15.45         $2.05  $2.15  State Street (STT.N)           Overweight    $88   $94    $68.02         $5.15  $5.18  SunTrust Banks (STI.N)         Underweight   $58   $64    $46.32         $2.95  $3.05  TCF Financial TCB.N          Overweight    $22   $23    $15.25         $1.52  $1.65  Bank of New York Mellon (BK.N) Overweight    $53   $57    $41.15         $2.95  $3.00  Wells Fargo (WFC.N)            Overweight    $33   $34    $25.42         $2.10  $2.20  Zions Bancorp (ZION.O)         Equal weight  $54   $55    $39.77         $4.30  $4.40  National City NCC.N          Overweight    $8.50  --    $4.95         -$0.32 -$0.08  Comerica (CMA.N)               Underweight   $40    --    $35.31         $2.60  $2.70  M&T Bank (MTB.N)               Equal weight  $93    --    $81.18         $6.40  $6.60  Synovus Financial (SNV.N)      Underweight   $12    --    $10.58         $0.72  $0.83  US Bancorp (USB.N)             Overweight    $37    --    $32.07         $2.45  $2.53 (Reporting by Tenzin Pema in Bangalore; Editing by Jarshad Kakkrakandy)   

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