- After Bank of America, the bank that Stifel Nicolaus expects will have the strongest earnings growth from 2013 to 2014 is SunTrust (STI - Get Report) of Atlanta. Mutascio estimates EPS to increase by 11% from $2.70 in 2013 to $3.00 in 2014. The analyst estimates that SunTrust will lower its expenses only slightly from $6.2 billion in 2012 to $6.1 billion in 2014, but also estimates that the annual provision for loan losses -- the among added to reserves, which lowers earnings -- will decline by 26%, from $1.2 billion in 2012 to $861 million in 2014.
- Stifel estimates that Wells Fargo (WFC - Get Report) will see its EPS grow from $3.53 in 2013 and $3.76 in 2014, for earnings growth of 7%. Mutascio estimates the company will see a 2% reduction in expenses, from $49.7 billion in 2012, to $48.6 billion in 2014. Meanwhile, the analyst sees Wells Fargo lowering its provision for loan losses by 17%, from $7.0 billion in 2012 to $5.8 billion in 2014.
- For JPMorgan Chase (JPM - Get Report), Stifel Nicolaus estimates earnings to increase from $5.35 a share in 2013 to $5.60 in 2014. That's 5% EPS growth. Mutascio estimates the company will cut its expenses from $61.7 billion in 2012 to $61.1 billion in 2014, which is a reduction of just 1%. He also expects JPMorgan Chase's provision for loan losses to increase by 28%, from $3.8 billion in 2012 to $4.8 billion in 2014.
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