SOURCE: Paragon Financial Limited

Paragon Financial Limited

October 17, 2012 08:20 ET

Major Banks Benefitting From Improved Mortgage Profit Margins

The Paragon Report Provides Stock Research on Bank of America and Citigroup

NEW YORK, NY--(Marketwire - Oct 17, 2012) - The U.S. Banking Industry has continued to outperform the broader markets despite concerns of a global economic slowdown. The SPDR S&P Bank ETF has gained nearly 20 percent year-to-date, outpacing the S&P 500 Index's gain of 14 percent. Citigroup, JP Morgan, and Wells Fargo have all recently reported strong third quarter earnings. The Paragon Report examines investing opportunities in the Banking Industry and provides equity research on Bank of America Corp. (NYSE: BAC) and Citigroup Inc. (NYSE: C).

Access to the full company reports can be found at:

"[T]here are clear positives for the banks... banks should be a high-beta play on stabilizing economic indicators, investors are still underweight, relative earnings momentum is troughing, banks' share of market cap is close to a 20-year low and some measures of bank risk are back to recent lows." Credit Suisse analysts wrote in a note.

Major banks have benefitted from recent stimulus measures from the Federal Reserve focused on reducing mortgage rates. The costs banks pay to those who finance the mortgages have dropped significantly, while the rates the banks charge homeowners have not, resulting in large profit margins.

Paragon Report releases regular market updates on the Banking Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Bank of America is one of the world's largest financial institutions. The company is scheduled to release their third quarter 2012 results at 7:00 AM. The average of analysts' estimates expects the company to post earnings of 0 cents a share after reporting a profit of 28 cents per share in the year-ago quarter. Bank of America has beat analyst estimates for the past two quarters.

Shares of Citigroup surged over 5 percent Monday after reporting strong third quarter earnings. The company reported net income for the third quarter 2012 of $468 million, or $0.15 per diluted share, on revenues of $14.0 billion. Citi recently became the first global bank to issue commercial cards in China.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: