The bank earnings season for the Q3 of FY2012 is getting closer. Earnings forecasts from analysts at Wall Street are reaching their boiling point. Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) has released a summary of its favorites among banks. The key factors that drive the profile of these banks is strong mortgage standing, progressive improvement in credit, and focus on cost reduction strategies. The challenges faced by banks is the net interest margin pressure, absence of near term positive catalysts, and sluggish capital markets.

Deutsche’s cheat sheet on banks covers a number of large cap and mid cap banks. Among the international large caps, the report categorizes Bank of America Corp (NYSE:BAC) as market-sensitive, which faces challenges from expense reductions and net interest income. The EPS estimate for 2012 is $0.76, which is above the street’s consensus of $0.56. The P/E ratio is estimated at 11.8 for 2012. Citigroup Inc. (NYSE:C) EPS for 2012 is $4.04, which is close to the street’s estimate of $4.02, P/E estimate is at 8.1. Goldman Sachs Group, Inc.(NYSE:GS), EPS estimate by DB is $12.06, which beats the consensus estimate of $11.04, the P/E is estimated at 9.7. For JPMorgan Chase (NYSE: JPM), DB estimates EPS of $4.88, which is higher than consensus of $4.70, P/E 2012 is predicted at 8.4. For Morgan Stanley (NYSE: MS), the report forecasts an EPS of $1.46 as opposed to the consensus of $1.03, P/E ratio is predicted at 11.5.

Among the international large caps, only Citigroup Inc. (NYSE:C) and Goldman Sachs Group, Inc. (NYSE:GS) are rated at Buy. The analysis expects GS to produce solid results due to higher revenues and better spending. Citigroup is also expected to benefit from macro drivers and capital market gains.

JPMorgan Chase & Co.(NYSE:JPM) is seen as a risk, as there are still some structural matters that need resolution. JPMorgan Chase & Co. (NYSE:JPM) beat earning expectations in the last quarter and managed to report decent profits despite their London Whale losses.

The best performing bank of last quarter, i.e. Wells Fargo & Company (NYSE:WFC), is also not liked by Deutsche’s report. The report sees no solid value other than strong mortgage backing. Pressures come from net interest income, minimal balance sheet growth and higher expenses. The EPS estimate for 2012 is at $3.85, while the street’s consensus is $3.29. The P/E estimate is at 9.6.

Earnings estimate for large cap banks 2012

Other large cap regional banks that are covered by DB’s report are: BB&T Corporation (NYSE:BBT), Comerica Incorporated (NYSE:CMA), Capital One Financial Corp. (NYSE:COF), Fifth Third Bancorp (NASDAQ:FITB), Huntington Bancshares Incorporated (NASDAQ:HBAN), KeyCorp (NYSE:KEY), M&T Bank (NYSE:MTB), PNC Bank Corp (NYSE:PNC), US Bancorp (NYSE:USB), and SunTrust (NYSE:STI).