- After Bank of America, the bank that Stifel Nicolaus expects will have the strongest earnings growth from 2013 to 2014 is SunTrust (STI) 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) 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), 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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