Jamie Dimon, CEO of JPMorgan Chase, test during the Senate Banking, Housing and Urban Affairs Committee’s Annual Oversight of Wall Street Firms hearing on Dec. 6, 2023, in the Hart Building.
Tom Williams | Cq-roll Call, Inc. | Getty Images
JPMorgan Chase is scheduled to report fourth-quarter earnings before Friday’s opening bell.
Here’s what Wall Street expects:
- Earnings per share: $3.32, according to LSEG, formerly Refinitiv.
- Revenue: $39.78 billion, according to LSEG.
- Net interest income: $22.98 billion, on an FTE basis, according to StreetAccount.
- Trading revenue: Fixed income $3.78 billion, equities $1.91 billion, according to StreetAccount.
JPMorgan will be closely watched to see how banks have fared in an environment of volatile interest rates and rising loan losses.
While the largest U.S. bank by assets has been able to navigate the rate environment since the Federal Reserve began raising rates in early 2022, profits have been squeezed at smaller peers.
The industry has been forced to pay for deposits as customers move cash into higher-yielding instruments, squeezing margins. At the same time, rising yields mean that the value of bonds owned by banks is falling, creating unrealized losses that put pressure on capital levels.
Concerns are also growing about rising losses on commercial loans, particularly office building debt, and higher credit card defaults.
In addition to net interest income and loan loss guidance for the year, analysts will want to hear what CEO Jamie Dimon has to say about the economy and banks’ efforts to ease upcoming increases in capital requirements.
Wall Street may provide some help this quarter with investment banking revenue higher than a year earlier, while trading may be “flat,” JPMorgan said at a conference last month.
Defeated bank stocks rallied in November on expectations that the Fed had successfully managed inflation and could cut rates this year.
JPMorgan shares jumped 27% last year, the best performance among big banks, and beat the 5% drop in the KBW Bank index.
American bank, Wells Fargo and Citigroup are scheduled to release results later on Friday, while Goldman Sachs and Morgan Stanley reports Tuesday.
This story is evolving. Please check for updates.