Analysts at Jefferies upped their estimates on per-share earnings at two big banks, noting that choppy markets are helping boost trading volumes. The Jefferies analysts estimate that big bank trading revenues will rise 7% in the first quarter compared to a year ago, on average, although Citigroup could see as much as a 10% increase. They now forecast 2018 EPS for Bank of America at $2.45, up from $2.42 previously, and Citigroup at $6.30, up from $6.20. Following the investor day held by JPMorgan Chase, , they increased its EPS targets to $8.80. The steeper yield curve – the difference between short- and long- term interest rates, which banks need to make money, is also helping in Q1, the analysts note. Bank stocks have been on a tear as investors expect less regulation and better macro conditions. Citi shares have gained 23% over the past 12 months, JPMorgan shares are up 24%, and Bank of America is up 25%. All top the 13% rise in the S&P 500 .
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