Financials Are Issuing Terrible Earnings Reports

From IBD:

The bank swung to a Q4 loss of $1.08 a share, missing views by $1.15. Revenue rose 9% to $1.93 bil. SunTrust Banks (STI) also cut its quarterly dividend to 10 cents a share from 54 cents. SunTrust's provision for loan losses more than doubled to $962.5 mil. The bank said increased unemployment and continued declines in home values drove delinquencies higher. It fell to 13.55.

• KeyCorp (KEY), a Cleveland-based regional bank, said it swung to Q4 loss of 28 cents, excluding 85 cents tied to a goodwill charge. That's down from a 6-cent gain last year and 26 cents worse than expected. Net interest income fell 10% to $639 mil. Net charge-offs nearly tripled to $342 mil. It rose 5.2% to 7.04.

• Comerica (CMA), a Texas-based bank holding company, said Q4 EPS fell 75% to 19 cents ex items, a nickel below views. Comerica set aside $192 mil for credit losses. Net charge-offs grew to $133 mil. It will cut 5% of its work force, or 509 jobs, and freeze some salaries. Shares surged 9.3% to 15.15.

The regional bank tumbled 29% to 2.85 after it swung to a Q4 loss of $2.06 a share ex items, much worse than forecasts for a 1-cent profit. Fifth Third Bancorp (FITB) said its loss was $3.82 a share including items, or $2.2 bil. The bank was hurt by rising defaults on loans, goodwill charges and credit costs. It took an impairment charge of $965 mil due to its declining stock price. It also nearly tripled its reserve for loan and lease losses to $2.8 bil.