JP Morgan cuts earnings view for 4 banks

(Reuters) - JP Morgan Securities cut its fourth-quarter estimates for four U.S. banks and said it sees an increase in writedowns, further credit quality deterioration and the need for additional loan-loss reserve building.

For Citigroup Inc (C.N), analyst Vivek Juneja forecast a $14 billion write-down in the fourth quarter, adding that the largest U.S. bank's mix of collateralized debt obligation should result in lower writedowns than peers.

He expects about $5 billion in CDO-related writedowns in the quarter for Bank of America (BAC.N) and said the bank could increase writedowns on pending leveraged loans.

Juneja said he expects SunTrust Banks Inc's (STI.N) net charge-offs for the fourth quarter to rise sharply and faster than expected, with credit losses rising mainly in home equity and residential mortgages, as well as other consumer loans.

Juneja said National City Corp's NCC.N plans to cut dividend and exit from wholesale mortgage lending would help strengthen its weak capital position to the high end of target ranges.

" ...but we expect earnings to remain pressured by struggling mortgage banking earnings, rising credit losses, and near term sharp pressure on net interest margin," he added.

(Reporting by Nachiket Kelkar in Bangalore; Editing by Bernard Orr)