Jamie Dimon, President and Chief Executive Officer of JPMorgan Chase, speaks on CNBC’s “Squawk Box” at the World Economic Forum Annual Meeting on January 17, 2024 in Davos, Switzerland.
Adam Galich | CNBC
JPMorgane is scheduled to release first-quarter earnings before the market opens on Friday.
Here’s what Wall Street expected:
- income: $4.11 per share, according to LSEG
- income: $41.85 billion, according to LSEG
- Net interest income: $23.18 billion, according to StreetAccount
- Trading income: Fixed income was $5.19 billion and equities were $2.57 billion, according to StreetAccount.
JPMorgan will be closely watched for clues about how the banking sector performs at the start of the year.
While the U.S. bank, the largest by assets, has held up well in the rate environment since the Federal Reserve began raising rates two years ago, smaller peers have seen profits squeezed.
The industry is forced to pay deposits as customers move cash into higher-yielding instruments, squeezing profit margins. There are also growing concerns about rising losses on commercial loans, particularly at office buildings and multifamily properties, and rising credit card defaults.
Still, large banks are expected to outperform smaller banks this quarter, and expectations for JPMorgan are high. Analysts believe that due to severe inflation data, the Federal Reserve is forced to maintain interest rates and the bank can increase its net interest income guidance for 2024.
Analysts also want to hear what Chief Executive Jamie Dimon has to say about the economy and the industry’s efforts to resist caps on credit card and overdraft fees.
Wall Street may provide some help this quarter, with investment banking fees for the industry rising 11% from a year earlier, Dealogic said.
JPMorgan shares are up 15% this year, outperforming the KBW Bank Index’s 3.9% gain.
FuGuo bank and Citigroup Results are due to be released later Friday, while Goldman Sachs, Bank of America and Morgan Stanley Report next week.
This story is developing. Please check back for updates.
