JPMorgan earnings are coming — here's what Wall Street expects

By on Oct 12, 2017

Jamie Dimon, chief executive officer of JPMorgan Chase & Co

Marlene Awaad | Bloomberg | Getty Images

Jamie Dimon, chief executive officer of JPMorgan Chase & Co

JPMorgan Chase was scheduled to report third-quarter earnings before the opening bell Thursday.

Analysts polled by Reuters estimated that JPMorgan would report:

  • Earnings per share of $1.65.
  • Revenue of $25.23 billion.

Investors will also be watching how the bank’s trading business performed in the low-volatility market. JPMorgan Chairman and CEO Jamie Dimonwarned in mid-September of a 20 percent drop in trading revenue in the third quarter from the same period last year.

“For the third quarter, we expect the sluggish economic backdrop coupled with geopolitical uncertainty to weigh on bank results,” Brian Kleinhanzl and a team of analysts at Keefe, Bruyette & Woods said in a Monday note.

The KBW analysts estimate a 19 percent decline in JPMorgan’s overall quarterly trading revenues and a 25 percent drop in revenue from fixed income, currencies and commodities trading.

Another figure traders are watching for in JPMorgan’s results is net interest income, a key measure of profitability. Shares fell after the bank’s second-quarter earnings report in July after JPMorgan lowered its net interest income forecast for the year by about half a billion dollars to a $4 billion increase from the prior year.

Shares of JPMorgan are up 12 percent this year and have surged more than 38 percent since the election to record highs.

Bank stocks overall have leaped since the November election. Promises of stimulus from the Trump administration and the Federal Reserve’s move towards tighter monetary policy have helped Treasury yields rise, which tends to increase profit margins for banks.

Later Thursday morning, Citigroup is expected to report third-quarter earnings before the market open.

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