By Sarah Jones
Oct. 10 (Bloomberg) -- UBS AG slashed its 2009 earnings estimates for U.S. banks by an average 26 percent, as analysts cited the outlook for higher credit losses in commercial loans.
``Our more cautious outlook for commercial credit reflects our view that credit availability will remain a key macro issue for the banks,'' New York-based analyst Matthew D. O'Connor wrote in a note to investors. It is ``likely to lead to higher commercial loan losses.''
UBS reduced its 2008 earnings estimate for U.S. banks by 13 percent and made the largest reductions in 2009 earnings forecasts at Sovereign Bancorp Inc., the second-largest U.S. savings and loan, First Horizon National Corp. and Zions Bancorporation.
To contact the reporter on this story: Sarah Jones in Copenhagen at sjones35@bloomberg.net.
Friday, October 10, 2008
UBS Slashes 2009 Profit Estimates for U.S. Banks on Loan Losses
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