Tough Comps for the Big BanksAtlantic Equities analyst Richard Staite projects a 55% year-over-year decline in third-quarter mortgage production revenue for the eight large-cap U.S. banks he covers, which in addition to JPM and Wells Fargo include Bank of America ( BAC), Citigroup ( C), Goldman Sachs ( GS), Morgan Stanley ( MS), PNC Financial Services Group ( PNC) and U.S. Bancorp ( USB). That's a huge figure, reflecting in part the spike in refinancing activity in the third quarter of 2012, however, Staite expects mortgage revenue for the group to decline 45% quarter-over-quarter.
- Staite cut his third-quarter EPS estimate for Morgan Stanley by 25% to 38 cents from 50 cents.
- Atlantic Equities' estimate for Goldman Sachs was cut by 18% to $2.47 from $3.00.
- Staite's third-quarter EPS estimate for Citigroup was lowered by 14% to $1.05 from $1.22.
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