JPMorgan Chase is scheduled to release its fourth-quarter earnings before the market opens on Wednesday, with analysts and investors eagerly awaiting the results, CNBC reports.
According to a survey conducted by LSEG, Wall Street is anticipating earnings per share (EPS) of $4.11 and revenue of $41.7 billion for the quarter.
In addition to the overall earnings report, key figures that analysts will be focusing on include net interest income (NII), which is expected to reach $23.1 billion, as well as trading revenues. For fixed-income trading, analysts predict a figure of $4.42 billion, while equities trading is expected to generate $2.37 billion, as per StreetAccount data.
JPMorgan’s fourth-quarter results will be closely scrutinized for indications of whether the optimism surrounding the banking sector is justified. The broader banking industry ended 2024 on a positive note, with Wall Street activity picking up and Main Street consumers showing resilience. Additionally, the potential for regulatory relief following Donald Trump’s election victory has bolstered industry confidence.
As the largest American bank by assets, JPMorgan stands to benefit from several factors. Last month, the bank’s executives projected a 45% surge in investment banking revenue for the fourth quarter, along with a 15% rise in trading revenue. The bank also indicated that its 2025 net interest income projection was $2 billion higher than previous estimates, prompting analysts to expect strong NII performance for the fourth quarter.
Amid these positive indicators, analysts are likely to inquire about JPMorgan CEO Jamie Dimon’s succession plans, particularly after the announcement that Daniel Pinto, the bank’s number two executive, will step down as chief operating officer in June. Dimon himself has previously suggested that he is likely to step down as CEO within the next five years, raising questions about the future leadership of the bank.
Another topic of interest will be the impact of the Federal Reserve’s changing stance on interest rate cuts. While Fed officials have indicated that they may implement two more rate cuts in 2025, analysts will be keen to assess how these potential changes could affect JPMorgan’s diverse operations. Economic indicators could influence the timing and extent of these rate cuts.
Furthermore, analysts may seek clarity on how JPMorgan plans to deploy any potential capital windfall if regulatory changes under the Trump administration result in a more lenient approach to the Basel 3 Endgame framework. Dimon has previously indicated that share buybacks would be limited, citing high stock prices, though JPMorgan’s stock has risen since then.
In addition to JPMorgan, other major financial institutions including Goldman Sachs, Wells Fargo, and Citigroup are set to report their quarterly and full-year results on Wednesday. Bank of America and Morgan Stanley are expected to release their earnings reports on Thursday.
