Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

US Earnings Season: JP Morgan, Citigroup, Wells Fargo Set to Report Today

Published 04/12/2024, 05:13 AM
Updated 04/15/2024, 01:05 PM


The price information and economic data in this article are sourced from Bloomberg and nasdaq.com

The first major US banks report quarterly earnings on Friday, April 12th, 2024. We preview what to expect from JP Morgan, Citigroup, and Wells Fargo's quarterly numbers.

JP Morgan (JPM)

According to Bloomberg data, JP Morgan’s EPS is expected to rise 2% year over year in Q1 to $4.18 per share. The increase in earnings is forecast to be underpinned by a 6% lift in revenues, driven primarily by card growth.

(Source: nasdaq.com)

However, net interest margins are expected to fall, driven by higher costs as operating expenses rise and the diminished impact of strong economic activity and interest rate increases.

Provisions are also tipped to rise due to cyclical and seasonal factors, while exposure to commercial interest rates, both from a cash flow and balance sheet perspective, could be key risks for market participants.

Comments from the bank, especially CEO Jamie Dimon, about the outlook for its financial performance and the US economy might drive expectations for future growth for JP Morgan.

(Past performance is not a reliable indicator of future results)

Citigroup (C)

According to Bloomberg data, Citigroup’s Q1 results will be driven by credit card revenue and investment banking fee growth and offset softening in trading revenue. EPS is tipped to fall 32% from the corresponding period a year ago to $1.27 per share.


(Source: nasdaq.com)

Higher operating costs related to a restructuring during the quarter are likely to impact profits. However, net interest margins are forecast to show resilience, with NIM only projected to dip by two points to 2.44%.

The quantity of provisions set aside by Citigroup will be closely watched by market participants, with forecasters estimating the sum to reach $2.6 billion.

(Past performance is not a reliable indicator of future results)

Wells Fargo (WFC)

Wells Fargo is highly sensitive to retail banking and commercial real estate, with the bank’s 1Q earnings expected to be hit by softness in both segments. According to Bloomberg data, analysts expect EPS to decline to $1.08 per share on a 3% drop in revenues.

(Source: nasdaq.com)

Loan growth is expected to stall from a quarter ago a dip of 1%, while deposits are projected to remain nominally unchanged. Mortgage income is also expected to decline. Meanwhile, net interest margins are forecast to drop eight basis points to 2.84%.

Market participants will focus on commercial real estate exposure in Wells Fargo’s quarterly results, as heavy exposure to the market risks the health of the bank’s balance sheet.
Provisions will also be in focus amid expectations of deteriorating credit conditions.


(Past performance is not a reliable indicator of future results)



The price information and economic data in this article are sourced from Bloomberg

***

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page, then you do so entirely at your own risk.


RISK DISCLAIMER

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past performance is no guarantee of future results. Professional clients can lose more than they deposit. All trading involves risk. 

The present marketing communication is not intended for UK audiences.

RESEARCH DISCLAIMER 

THE PRESENT MATERIAL MUST BE REGARDED AS MARKETING COMMUNICATION AND SHOULD NOT BE INTERPRETED AS  INVESTMENT RESEARCH OR INVESTMENT ADVICE.

The content of this communication has been prepared solely for information purposes and should be considered as such. This communication does not constitute research in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. 

The information provided as at the date of this communication is subject to change without prior notice. It does not take into consideration the investors’ individual circumstances or objectives and should not be construed as specific advice on the suitability of any investment decision. Investors should consider this report as merely one factor in making any investment decisions. To the extent permitted by law, neither Capital.com nor any of its employees or affiliates accept any liability whatsoever for any direct or consequential loss arising, directly or indirectly, from any use of this communication or its contents.  Any person acting on the information does so entirely at their own risk. Any information that may be provided in this communication relating to past performance is not a reliable indicator of future results or performance. 

Capital Com SV Investments Limited (“CCSV”) is registered in Cyprus with company registration number HE354252. CCSV is regulated by Cyprus Securities and Exchange Commission (CySEC) under licence number 319/17. . Capital Com Online Investments Ltd is a limited liability company (company number 209236B) registered in the Commonwealth of The Bahamas and authorised to carry on Securities Business by the Securities by the Securities Commission of The Bahamas (“SCB”) with licence number SIA-F245.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.