Jamie Dimon, president and CEO of JPMorgan Chase, speaks on CNBC’s “Squawk Box” at the annual meeting of the World Economic Forum in Davos, Switzerland, January 17, 2024.
Adam Galich | CNBC
JPMorgan Houre plans to release first-quarter earnings before the opening bell on Friday.
Here’s what Wall Street expects:
- Earnings: According to LSEG, $4.11 per share
- Income: According to LSEG, $41.85 billion.
- Net interest income: According to StreetAccount, $23.18 billion.
- Trading Income: Fixed earnings were $5.19 billion and shares were $2.57 billion, according to StreetAccount.
JPMorgan will be closely watched to see how the banks fare at the start of the year.
While the largest U.S. bank by assets has navigated the interest rate environment well since the Federal Reserve began raising rates two years ago, smaller banks have seen their profits shrink.
The industry was forced to pay deposits as customers moved cash into higher-yielding instruments, cutting into profits. There are also growing concerns about rising losses on commercial loans, especially on office buildings and apartment buildings, as well as rising credit card defaults.
However, large banks are expected to outperform smaller banks this quarter, and expectations for JPMorgan are high. Analysts believe the bank could raise its net interest income forecast for 2024 as the Federal Reserve is forced to maintain interest rates amid robust inflation data.
Analysts will also want to hear what CEO Jamie Dimon says about the economy and industry efforts to counter efforts to cap credit card and overdraft fees.
Wall Street may provide some help this quarter, with investment banking fees for the industry up 11% from a year earlier, according to Dealogic.
JPMorgan shares have jumped 15% this year, outpacing the KBW Bank Index’s 3.9% gain.
Wells Fargo Co. And Citigroup plan to publish the results later on Friday, and Goldman Sachs, Bank of America And Morgan Stanley report next week.
This story is evolving. Please stay tuned for updates.