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  • Jan 12th, 2004
  • Comments Off on US banks likely boosted profit in fourth quarter
US banks likely enjoyed a solid fourth quarter, analysts said, as robust stocks and consumer borrowing offset a dramatic decline in mortgage refinancing and weak commercial lending.

Lehman Brothers analyst Jason Goldberg in a report said per-share profit at the 64 banks he covers probably rose 5.2 percent from a year earlier, and 4.5 percent from the third quarter.

Profit per share probably rose from a year earlier at 49 banks, was unchanged at three and fell at just 12, he said.

"It should be another reasonably good quarter," said David Ellison, who oversees $650 million in two Friedman, Billings & Ramsey financial services mutual funds. "Credit trends should be favourable. The ability to grow loans should be OK, and there should be better numbers in 2004."

Bank earnings season kicks off in earnest with SunTrust Banks Inc., on Monday.

Bank of America Corp., FleetBoston Financial Corp. - which Bank of America is buying - and Wachovia Corp. should report results next week.

Copyright Reuters, 2004


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