JPMorgan Chase reports third-quarter earnings Friday before the opening bell.
Wall Street consensus estimates are as follows:
-EPS: $4.01 per share, LSEG
-Revenue: $41.63 billion, LSEG
-Net interest income: $22.73 billion, StreetAccount
-Trading Revenue: Fixed income: $4.38 billion, Equities: $2.41 billion, StreetAccount.
JPMorgan will be the first to disclose how the banking sector is faring after the Federal Reserve embarked on its easing cycle, and market participants are expected to pay close attention to the bank.
As the largest bank in the United States, JPMorgan has benefited from higher interest rates, generating record net income since the Fed started jacking up rates in 2022.
With the Fed now cutting rates, there are questions about how well JPMorgan will tolerate the new environment. The bank’s margins, in line with those of other major lenders, could be squeezed as yields on interest earning assets such as loans drop faster than funding costs.
JPMorgan also updated its guidance on net interest income and expenses for 2025 last month in a move analysts said sparked requests for further explanations.
Analysts also will be eager to hear CEO Jamie Dimon’s comments on the U.S. election later this year, and on efforts by the banking industry to fight a spate of regulations designed to curtail fees and boost capital levels.
The year so far has seen JPMorgan’s shares rise 25%, outperforming the 20% rise in the KBW Bank Index.
Wells Fargo will report later in the day on Friday. Peers such as Bank of America, Goldman Sachs, Citigroup, and Morgan Stanley report next week.
