Two related sightings on Bloomberg, First, Deutsche Bank says it will fall short of its profit targets:
Deutsche Bank AG, Germany’s biggest bank, said the U.S. subprime collapse and slowing economic growth will make it harder to reach a full-year profit goal.
Deutsche Bank fell as much as 2.9 percent in Frankfurt trading after it said further possible asset writedowns and worsening economic conditions would “adversely affect our ability to achieve our pretax profitability objective.”
A top bank analyst sharply lowered her earnings forecast for Citigroup and said she will announce reduced estimates for other firms:
Citigroup Inc.’s first-quarter earnings-per-share estimate was cut to a loss of $1.15 by Oppenheimer & Co. analyst Meredith Whitney, who said she was also cutting estimates for other U.S. banks.
Whitney lowered the earnings-per-share estimate on Citigroup, the largest U.S. bank by assets, from a loss of 28 cents, citing estimates for first-quarter mortgage and collateralized debt obligations-related writedowns, according to a note to investors dated yesterday.
Whitney, 38, correctly predicted two months in advance that Citigroup Inc. would slash its dividend to preserve capital. Her downgrade of Citigroup helped spur selling that erased almost $500 billion in value from the nation’s stock market on Nov 1.