- Shares of JPMorgan Chase (JPM - Get Report) closed at closed at $41.19 Monday, trading for 1.3 times tangible book value, and for seven times the consensus 2013 EPS estimate of $5.20. Over the past five quarters, the company's ROA has ranged from 0.68% to 0.99%, while its ROE has ranged from 8.25% to 11.94%. JPMorgan reported a second-quarter deposit margin of 2.62%, narrowing from 2.68% the previous quarter, and 2.83% a year earlier. Mosby in August included JPMorgan among a list of banks "most exposed to continuing continued NIM pressure," including Wells Fargo, M&T Bank (MTB) and Zions Bancorporation (ZION), but also said that "we expect all four to grow earning assets fast enough to produce positive net interest income growth." The analyst estimates that JPMorgan's net interest margin will compress by 17 more basis points, from the second quarter of 2012 through the fourth quarter of 2013.
- Shares of Citigroup (C - Get Report) closed at $34.06 Monday, trading for 0.7 times tangible book value, and for 7.5 times the consensus 2013 EPS estimate of $4.53. Citigroup's ROA has ranged from 0.20% to 0.77% over the past five quarters, while the company's ROE has ranged from 2.18% to 8.41%. The company's second-quarter net interest margin was 2.81%, narrowing from 2.90% the previous quarter, and 2.82% a year earlier. CEO Vikram Pandit said during Citi's second-quarter earnings call that "despite the persistent low-rate environment, we've been able to offset spread compression with new client mandates and higher transactions volumes which have enabled us to grow earnings." Citi's net interest revenue declined to $11.6 billion during the second quarter, from $11.9 billion in the second quarter, and $12.1 billion during the second quarter of 2011, "largely due to continued declining loan balances in Local Consumer Lending" within the Citi Holdings run-off subsidiary, according to the company.
- Shares of Bank of America (BAC - Get Report) closed at $9.30 Monday, trading for 0.7 times tangible book, and for 10 times the consensus 2013 EPS estimate of 91 cents. Over the past five quarters, Bank of America's ROA has ranged from a negative 1.51% - during the second quarter of 2011, when the company lost $8.8 billion, or 90 cents a share, mainly from a mortgage putback settlement with private investors -- to 1.08%. The company's ROE has ranged from a negative 15.02% to 11.21%, over the same period. Bank of America reported a second-quarter net interest yield of 2.21%, narrowing from 2.51% in the first quarter, and 2.50% in the second quarter of 2011. During the company's earnings conference call in July, CFO Bruce Thompson said "we clearly would not expect to see the decline in interest rates that we saw from the end of the first quarter to the end of the second quarter going forward." Mosby estimates that Bank of America's net interest margin will only contract by a further six basis points, through the end of 2013.
5 Bank Stocks Bernanke Can't Hurt Anymore
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