- Following JPMorgan's (JPM) warning on the continued slowdown in trading activity this quarter, KBW cuts its Q2 EPS estimate for the Bank of Dimon to $1.38 from $1.45 and its full year operating EPS estimate to $5.51 from $5.65.
- At Bank of America (BAC), it's the trading slowdown, the suspension of the buyback, and worry over litigation costs. The Q2 EPS estimate is cut to $0.30 from $0.33, and full year is lowered by a dime to $0.90. The team at KBW sees this year's buyback being halved to $2B after the Fed is finished with its review, but is more worried about how future legal costs will affect profitability.
- Previously: Cyclical or secular? JPMorgan warns again on trading business