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S&P Capital IQ U.S. bank equity analyst Erik Oja gives his outlook for bank earnings.
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CO fourteen minutes from now well JPMorgan's.
Jamie Dimon is trying to lead this company forward after that multi billion dollar black guy a trading laws.
-- of the bank chief on Capitol Hill the first step comes tomorrow for the bank reports second quarter earnings bank analyst -- O Jeff mezzanine capital.
Joins me now what is the main saying that he asked to address once he gives us then number as it's being called on Wall Street.
What we'd like to have some on the idea of when the trading loss will be fully covered.
We expect.
That the earliest ticket could be done would be baby this month.
I would think that it would be up positive for the stock.
If the trading losses already been covered.
Okay to have look at that we're looking at a range here Aaron -- -- part of -- no one knows I -- -- -- -- -- your four million.
A for 910 million know where -- estimate this morning.
My estimate is five billion and it's been that for the last month armed.
I don't think it's going to be nine billion.
And Europe has slightly improved in the last four weeks I would expect that other trading lot should be.
What while less than nine billion.
Yeah a body on shares of JPMorgan and then but we're also -- -- Wells Fargo you -- hold.
-- Wells Fargo.
Did they give -- any -- at this point considering the headlines that we're getting worse think again.
-- while we also look at valuation and JPMorgan is currently trading at eight times forward earnings.
And Wells Fargo is trading at twelve times we think Wells Fargo is fully valued at current prices.
We think JPMorgan offers.
Some more upside simply because there's a lot -- to JPMorgan then the trading loss JPMorgan.
Could do very well.
Because not we think that the housing market has bottomed out and will continue to improve so against an improving -- consumer backdrop.
We think JPMorgan looks attractive.
What I also -- concern and a sitting for both of these banks and we get these these reports because of potential mortgage write downs.
The help of the mortgage market which frankly the data doesn't seem to give us a clearer picture.
How concerned are you on a scale of one to ten about about the mortgage issues at both company.
While we think the mortgage issues are stable so I would say that on -- let's say five out of ten because.
A lot of that mortgage issues seem -- as far as like the repurchases of mortgages.
That's seemed to grow a lot last year and we think it has stabilized.
For this year.
And in addition both of these banks.
Have fully reserved for the current amount.
Before let me go Eric you do cover US bank core -- web what do you think we're gonna hear from US Bancorp as a visiting communicator for it thank.
-- lot US Bancorp we put in the same.
Situation as Wells -- -- a fast growing bank we expect positive loan growth and a very very good.
A quarter for mortgage banking revenue and we have a buy recommendation on that.
-- OJ it'd be a very busy man tomorrow morning with Elvis reports coming -- thank you for being here from S and -- air.
