NEW YORK, NY -- (Marketwire) -- 01/12/12 -- Expectations are less than spectacular for U.S. banks this earnings season. Analysts at Barclays Capital are forecasting earnings per share for median banks to fall as much as 3 percent sequentially in the fourth quarter. A recent article from The Wall Street Journal argues that the "culprits for the earnings-estimate whacks are familiar: a phenomenally weak stretch of client trading on everything from bonds to derivatives." The Paragon Report examines investing opportunities in the Money Center Banking Industry and provides equity research on Citigroup, Inc. (NYSE: C) and Wells Fargo & Co. (NYSE: WFC). Access to the full company reports can be found at:
According to a recent report from The Wall Street Journal, total bonus compensation at America's largest financial institutions is likely to be the lowest since 2008, "when the financial crisis destroyed some firms and left many survivors on government life support."
"Industry observers expect that when all is said and done for the year, many firms will adjust their benefit costs sharply downward, partly to appease shareholders frustrated by soft profits," the Journal explains.
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Earlier this week Barclays Capital said it expects Citigroup's near-term results to be hit by low interest rates, challenging capital markets and increasing global economic uncertainty. Barclays said it expects Citigroup to earn 71 cents per share in the fourth quarter, after one-time charges of $400 million related to job cuts and a $300 million non-cash valuation adjustment related to a drop in Japan's corporate tax rate.
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