jackovesk
14th September 2011, 16:57
US bank profits to fall 45pc in third quarter with Goldman Sachs hardest hit, says Citigroup
Wall Street banks will see profits tumble in the third quarter as the weak global economy dents their once buoyant trading operations, Citigroup has warned.
http://i.telegraph.co.uk/multimedia/archive/01995/goldman_1995603c.jpgLloyd Blankfein, chief executive of Goldman Sachs, which Citigroup predicts will be the biggest banking loser in the third quarter
Goldman Sachs will be the biggest loser, according to Citi, as analysts at the bank slashed estimates for how much banks will earn this quarter by an average of 45pc. Next year is unlikely to be much better, Citi said in a report short on bright spots for Wall Street.
The prediction came amid speculation that banks will accelerate job cuts should the US economy deteriorate further and Europe's debt crisis fail to ease.
"Forecasting trading revenues one quarter out is challenging, let alone trying to estimate 2013," said Keith Horowitz, an analyst at Citi. "That said, it's hard to assume as a base case that global trading pool revenues increase meaningfully versus 2011 levels with a weak economic outlook plus continued uncertainties regarding impact of regulation and higher capital requirements."
Trading in bonds, equities, currencies and commodities has become a major profit engine for Wall Street banks over the past decade, but revenues have weakened since a strong first quarter. Trading profits, as well as those generated by advising companies on acquisitions and flotations, will be 35pc lower across Wall Street this quarter compared with a year ago, Citi said.
The bank slashed its earnings estimate for Goldman to 10 cents a share compared with an earlier prediction of $2.70. It also reduced estimates for JPMorgan Chase, Morgan Stanley, Bank of America and Lazard.
Given the more than 20pc decline in the share prices of Goldman and JPMorgan so far this quarter, Citi analysts said the two banks are now its top picks. However, the report cautioned that "it's hard to say we've seen the bottom on bank stocks if we enter double-dip territory".
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8758227/US-bank-profits-to-fall-45pc-in-third-quarter-with-Goldman-Sachs-hardest-hit-says-Citigroup.html
PS - Rhetoric, Spin or DoubleSpeak FearMongering (TAKE YOUR PICK)..!
The Usual Supects together with MSM Propaganda 'Build-Up' is expanding on a daily basis..!
Ya really 'Gotta Laugh' when Goldman Sach's (Partner in Crime) Citibank is offering the Sheeple a Forecast/Analysis on the 'Rigged Game'..!
It must be true if "Citi said"..? :pound:
http://i.telegraph.co.uk/multimedia/archive/01790/bankers-eat-web_1790770g.jpg
The 'BIG ONE' whatever form it takes is just around the corner..!
Wall Street banks will see profits tumble in the third quarter as the weak global economy dents their once buoyant trading operations, Citigroup has warned.
http://i.telegraph.co.uk/multimedia/archive/01995/goldman_1995603c.jpgLloyd Blankfein, chief executive of Goldman Sachs, which Citigroup predicts will be the biggest banking loser in the third quarter
Goldman Sachs will be the biggest loser, according to Citi, as analysts at the bank slashed estimates for how much banks will earn this quarter by an average of 45pc. Next year is unlikely to be much better, Citi said in a report short on bright spots for Wall Street.
The prediction came amid speculation that banks will accelerate job cuts should the US economy deteriorate further and Europe's debt crisis fail to ease.
"Forecasting trading revenues one quarter out is challenging, let alone trying to estimate 2013," said Keith Horowitz, an analyst at Citi. "That said, it's hard to assume as a base case that global trading pool revenues increase meaningfully versus 2011 levels with a weak economic outlook plus continued uncertainties regarding impact of regulation and higher capital requirements."
Trading in bonds, equities, currencies and commodities has become a major profit engine for Wall Street banks over the past decade, but revenues have weakened since a strong first quarter. Trading profits, as well as those generated by advising companies on acquisitions and flotations, will be 35pc lower across Wall Street this quarter compared with a year ago, Citi said.
The bank slashed its earnings estimate for Goldman to 10 cents a share compared with an earlier prediction of $2.70. It also reduced estimates for JPMorgan Chase, Morgan Stanley, Bank of America and Lazard.
Given the more than 20pc decline in the share prices of Goldman and JPMorgan so far this quarter, Citi analysts said the two banks are now its top picks. However, the report cautioned that "it's hard to say we've seen the bottom on bank stocks if we enter double-dip territory".
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8758227/US-bank-profits-to-fall-45pc-in-third-quarter-with-Goldman-Sachs-hardest-hit-says-Citigroup.html
PS - Rhetoric, Spin or DoubleSpeak FearMongering (TAKE YOUR PICK)..!
The Usual Supects together with MSM Propaganda 'Build-Up' is expanding on a daily basis..!
Ya really 'Gotta Laugh' when Goldman Sach's (Partner in Crime) Citibank is offering the Sheeple a Forecast/Analysis on the 'Rigged Game'..!
It must be true if "Citi said"..? :pound:
http://i.telegraph.co.uk/multimedia/archive/01790/bankers-eat-web_1790770g.jpg
The 'BIG ONE' whatever form it takes is just around the corner..!