Citigroup's US Banks Summary

Citigroup has published a research report on U.S. Banks following 3Q results. In the report, Citigroup writes "While we continue to see downside to 2011 EPS estimates for the large cap banks, we expect bank stocks can outperform in near term as we see our banks either meeting or exceeding 3Q estimates, and bank stock valuations appear attractive to us. Near term fundamentals are challenging, but they are well known by investors…and we see a greater chance of banks surprising on the upside in terms of fundamentals either through better 3Q NIM trends, slight optimism on loan outlook, lower than expected impact from Reg E due to higher opt-ins, strong mortgage revenue due to high gain on sale spreads (up 30% QTD, see Figure 6), relatively optimistic outlook on 4Q capital markets, and continued improved credit quality." Banks related to this report include: Bank of America BAC 1H From $22.00 to $20.00 Comerica CMA 2H $43.00 First Horizon National FHN 2H $12.50 Fifth Third FITB 2H From $14.00 to $15.00 JPMorgan Chase JPM 1M $50.00 KeyCorp KEY 2H $8.00 M&T Bank MTB 2M $80.00 PNC Financial PNC 2H From $75.00 to $62.00 U.S. Bancorp USB 1M $30.00 Wells Fargo WFC 2H $33.00