Citigroup Slashes Q3 Bank Earnings Estimates by 45% (GS) (MS) (JPM)

Analysts at Citigroup (NYSE: C) have reduced its third quarter profit estimates for banks on average by 45 percent.

The reduction in the estimates is largely due to the volatility in the credit markets and concerns over the global equities rout. The bank now forecasts earnings per share of $0.25 for Morgan Stanley (NYSE: MS), $0.10 for Goldman Sachs (NYSE: GS) and $1.17 for JP Morgan (NYSE: JPM), all considerably down from their previous estimates.

Citigroup has also lowered its two year outlook due to macroeconomic concerns and uncertainties in the new regulation and capital requirements for banks. The only bank in which Citigroup raised its estimates on is Bank of America (NYSE: BAC). The increase reflects the sale of its stake in the China Construction Bank. Citi now estimates that BAC will report earnings of $0.61 for the quarter, up from its previous estimate of $0.18.

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