Earnings for Most Major Banks Forecast Up in 2008

The table above shows 2007 EPS (actual) and 2008 EPS estimates for 17 of the largest U.S. commercial and investment banks. (Taken from Finance.yahoo.com)

Conclusions:

1. Every Major Commercial bank was profitable previous year.

2. Merrill Lynch is the only major investment bank to report negative earnings in 2007, and all other banks above were profitable last year. For 2008, $5.22 EPS is forecast for Merrill Lynch.

3. For 2008, all 17 banks are expected to be profitable, and EPS for 12 out of 17 banks are expected to increase from 2007.

I think future of banking lies with the firms that successfully combine commercial banking and investment banking; these are the banks that will walk away with the prize...