JPMorgan Chase is set to report fourth-quarter earnings – here’s what the Street expects

1 week ago

JP Morgan CEO Jamie Dimon listens arsenic helium is introduced astatine the Boston College Chief Executives Club luncheon successful Boston, Massachusetts, U.S., November 23, 2021.

Brian Snyder | Reuters

JPMorgan Chase is scheduled to study fourth-quarter net earlier the opening doorbell Friday.

Here's what Wall Street expects:

  • Earnings: $3.01 per share, 21% little than a twelvemonth earlier, according to Refinitiv.
  • Revenue: $29.9 billion, 0.9% little than a twelvemonth earlier.
  • Net Interest Income: $13.45 billion, according to FactSet
  • Trading Revenue: Fixed income $3.40 billion, Equities $2 billion
  • Investment Banking fees: $3.22 billion

JPMorgan Chase, the archetypal large slope to study fourth-quarter earnings, volition beryllium intimately watched for signs of an expected rebound successful lending.

Government stimulus programs during the pandemic near consumers and businesses flush, resulting successful stagnant indebtedness maturation and prompting CEO Jamie Dimon to accidental past twelvemonth that indebtedness maturation was "challenged."

But analysts person pointed to a rebound successful the 4th quarter, driven by request from corporations and recognition paper borrowers. They'll privation to spot that amusement up successful JPMorgan's results, arsenic that, on with the Federal Reserve's expected complaint hikes, are 2 superior drivers of the industry's profitability.

Analysts whitethorn besides inquire the slope astir the interaction of its caller determination to rein successful overdraft fees. JPMorgan said past period that it would springiness customers a grace play to debar the punitive fees, a determination that on with different changes volition person a "not insignificant" deed to revenue.

JPMorgan main operating serviceman Daniel Pinto said past period during a league that fourth-quarter trading gross was headed for a 10% drop, driven by a diminution successful fixed income enactment from grounds levels. Offsetting that is an expected 35% leap successful concern banking fees, helium said.

The slope was forced to wage $200 million successful fines past period to settee charges that its Wall Street part allowed workers to usage messaging apps to circumvent grounds keeping laws.  

Shares of JPMorgan person climbed 6.2% this year, lagging the 11.6% emergence of the KBW Bank Index.  

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