Earlier this week it did the same for Comerica and M&T Bank.
BMO analysts Peter Winter and Lana Chan said presentations at a recent investor conference had confirmed concerns that loan growth remains sluggish. Add to that the impact that rising rates have had on mortgage application activity.
Previously, BMO had been forecasting a 31% annualized decline in mortgage revenue for this group of banks in 3Q13 based on 2Q13 results.
“Most management teams were guiding to a 20%-30% un-annualized decline in mortgage origination volumes. We took down mortgage banking estimates across the board,” Winter and Chan wrote.
BMO is now forecasting a 60% annualized declined in mortgage banking revenue.
Wells Fargo finished 2Q13 as the nation’s leading lender with volume of $114 million, more than double No. 2 Chase, but down 13% from 2Q12.
As for the others, SunTrust, in the 10th slot, had a 10% year-over-year increase in volume. Fifth Third, ranked 12th, was down 2%, while PNC, ranked 18th, had a 30% year-over-year volume increase. M&T, at No 28, was also up 33%. BOK, 49th, was up 42%. Comerica, No. 205, was down 21%.
Of the banks it did either raise or maintain its current estimate, BMO noted that KeyCorp and Zions Bancorp do not have exposure to mortgage banking. Of the other two, BB&T and Regions Financial, they have other factors that offset BMO’s projected drop in mortgage banking income.
BB&T finished 2Q as the ninth largest lender, with its volume up 15% over 2Q12. Regions, No. 34, was down 7%.