Deutsche Bank Cuts Estimates On Citigroup (C) On Loan Losses
January 5, 2009 by Douglas A. McIntyreDeutsche Bank said the biggest issue U.S. banks will face in 2009 is loan losses. The firm expects commercial bank loan losses for the industry to increase from 1.5% (3Q08) to 3% by the end of 2010. They said Citigroup (NYSE: C) could be one of the worst hit and lowered estimates on the stock today to reflect this view.
The firm lowered 2009 estimates on Citi by 30 cents to a loss of $1.00 and 2010 estimates by 40 cents to EPS of $0.75, which mostly reflect higher loss rates and lower revenues than previously modeled.
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