Barclays Capital said it expects Citigroup Inc's (C.N) near-term results to remain limited by low interest rates, challenging capital markets and increasing global economic uncertainty, and cut its fourth-quarter earnings estimate on the company.
Separately, the brokerage said it expects Bank of America's (BAC.N) results to remain "very noisy" with core results still under pressure from capital markets, mortgage-related costs and net interest income pressures.
Barclays now expects Citigroup to earn 71 cents per share in the fourth quarter, after one-time charges of $400 million related to job cuts and a $300 million non-cash valuation adjustment related to a drop in Japan's corporate tax rate. It had earlier expected earnings of 89 cents a share.
The brokerage cut its price target on Citigroup stock by 8 percent to $46, but maintained its "overweight" rating.
Barclays now expects Bank of America to report earnings of 14 cents per share, compared with its earlier estimate of 19 cents per share.
It cut its price target on Bank of America stock by 15 percent to $11, but maintained its "equal weight" rating on the bank.
(Reporting by Satyanarayan Iyer in Bangalore; Editing by Supriya Kurane)