This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Bank of America's Deposits Shrink, Bucking Big Bank Growth Trend

As the nation's largest mortgage lender, Wells Fargo has a particular focus on holding down costs, as the refinancing boom subsides.

The company will announce its third-quarter results next Friday, with analysts, on average, expecting the company to post EPS of 97 cents a share, declining from 98 cents the previous quarter, but increasing from 88 cents a year earlier.

Wells Fargo's shares closed at $41 Thursday and traded for 10.3 times the consensus 2014 EPS estimate of $4.00.

JPMorgan Chase

JPMorgan Chase is the nation's largest bank by total assets, but it was in third-place for deposits, with a U.S. market share of 10.09% as of June 30, increasing from 9.67% in June 2012 and 9.70% in June 2008 (including Washington Mutual). The company's total deposits were 952.249 billion as of June 30, growing 10% from a year earlier, and 39% over the previous five years (including Washington Mutual).

Meanwhile, JPMorgan has been the only one of the big four to continue adding branches. Total branches grew to 5,697 as of June 30 from 5,608 in June 2012, and a combined total of 5,434 in June 2008.

JPMorgan Chase also will announce its third-quarter results on Friday, with analysts expecting EPS of $1.28, down from $1.60 in the second quarter and $1.40 in the third quarter of 2012.

There has been a flood of media reports predicting a global settlement between JPMorgan Chase, the Justice Department, regulators and state attorneys general covering a number of criminal and civil investigations of mortgage activities, but it would appear that a broad settlement will not be included in the third-quarter numbers.

The company on Sep. 19 entered into a $920 million settlement with four regulators over the 2012 "London Whale" hedge trading debacle, and also settled for $369 million a joint investigation by the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency of "illegal credit card practices."

JPMorgan Chief Financial Officer Marianne Lake on Sept. 10 said the company's mortgage origination business was likely to post net losses for the second half of 2013.

The regulator overhang, as well as the mortgage decline, have made for a low market valuation for JPMorgan's shares, which traded for just 8.6 times the consensus 2014 EPS estimate of $6.02, when they closed Thursday at $51.94.

Citigroup

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs