10 Questions To Ask This Bank Earnings Season

In a new report, BMO Capital Markets analyst James Fotheringham compiled a list of ten questions the firm wants to see answered this bank earnings season. Here’s the full list.

1. Will Wells Fargo & Co WFC acquire more assets from General Electric Company GE?
BMO believes Wells Fargo could easily end up with some of GE Capital’s remaining $52 billion in assets.

2. Will there be an increasing dispersion in capital strength among money center banks?
BMO will be particularly watching the capital levels of Bank of America Corp BAC and Citigroup Inc C.

3. Will Visa Inc V buy Visa Europe?
If Visa Europe sells to Visa Inc, BMO estimates potential 6.0 percent earnings accretion for Visa Inc.

4. What premium will Citigroup pay for American Express Company AXP’s U.S. Costco Wholesale Corp COST card portfolio?
BMO is calling for a high premium that will allow American Express to subsequently make large buyback commitments or fund marketing efforts.

5. After Synchrony Financial SYF splits from GE, how much and how soon will capital return to shareholders?
BMO predicts that the split will happen before the year and will result in $0.14 per quarter dividends and 2016 buybacks.

6. Will the Department of Justice approve Springleaf Holdings Inc LEAF’s OneMain acquisition from Citigroup?
BMO is predicting the deal will gain approval in Q4 and Springleaf’s share price will climb to $58 shortly thereafter.

7. What impact will Q3 market volatility have on capital market revenues?
BMO is calling for strong Year-over-year trading revenues in Q3 but weak trends in FICC revenues and ECM/DCM fees.

8. Can cost discipline continue to drive money center bank EPS growth?
BMO predicts that cost-cutting initiatives at Bank of America and JPMorgan Chase & Co. JPM will result in Q3 earnings growth for the two banks.

9. Will CIT Group Inc CIT finally disclose purchase accounting adjustments from OneWest?
BMO expects pro forma financials to be filed by October 19.

10. What enforcement action will the Consumer Financial Protection Bureau take against World Acceptance Corp WRLD?
BMO expects for fines or other enforcement actions to be announced before the end of the year.

Disclosure: the author owns shares of Bank of America.