JPMorgan Chase (JPM) Q2 2023 Results
JPMorgan Chase Chairman and CEO Jamie Dimon attends a luncheon with the New Democratic Coalition in Washington, D.C., June 6, 2023 at the US Capitol.
Nathan Howard | Bloomberg | Getty Images
JP Morgan Chase It plans to announce second-quarter results before the opening bell on Friday, when the banking industry’s earnings season kicks off.
JPMorgan has been the target of a storm for bank investors this year. The largest US bank’s asset-by-asset earnings report has been watched closely by other financial institutions’ readings.
Here’s what Wall Street expects, according to analyst estimates:
- Earnings: $4 per share, according to Refinitiv
- Revenue: $38.96 billion, according to Refinitiv
- Trading revenue: $4.12 billion in bonds, $2.41 billion in equities, according to StreetAccount
- Investment banking income: $1.42 billion
- Net interest income: $21.21 billion
JP Morgan has stood out in several ways lately.Deposits, funding costs, net interest income, everything Regional bank crisis The bank, which launched in March, outperformed its smaller peers.
That has pushed the bank’s share price up 11% year-to-date, compared with a 16% decline in the KBW Bank Index. When JP Morgan last reported earnings in April, the company’s stock price was maximum profit day Increased in 20 years.
This time around, JP Morgan will benefit from owning First Republic following its acquisition by a US broker in early May.
Acquisition, loosely added $203 billion Loans and securities, as well as $92 billion in deposits, could help JPMorgan soften some of the headwinds facing the industry. Banks are losing low-cost deposits as customers look for higher-yielding cash storage, causing higher funding costs for the industry.
That puts pressure on the industry’s profit margins. Several regional banks reported lower-than-expected interest income last month, and analysts expect more to follow suit in the coming weeks. In addition, banks are expected to reveal slowing loan growth and rising costs related to commercial real estate debt, all of which are weighing on bank earnings.
Lenders are starting to build up more loan loss reserves as the economy is expected to slow this year. JPMorgan expects to book $2.72 billion in reserves for credit losses, according to Street Account estimates.
The bank won’t be able to avoid the economic downturn it faces elsewhere, a slowdown in trading and investment banking. JPMorgan said in May that revenues from such activity on Wall Street were headed for a significant uptick. 15% less from a year ago.
Finally, analysts will want to hear JP Morgan’s opinion Jamie Dimon He has to talk about the health of the economy and expectations for banking regulation and consolidation.
wells fargo and city group Results are expected to be announced late Friday. bank of america and Morgan Stanley Tuesday report. goldman sachs We will announce the results on Wednesday.
This story is in development. Please check back for the latest information.
Summarize this content to 100 words JPMorgan Chase Chairman and CEO Jamie Dimon attends a luncheon with the New Democratic Coalition in Washington, D.C., June 6, 2023 at the US Capitol.Nathan Howard | Bloomberg | Getty ImagesJP Morgan Chase It plans to announce second-quarter results before the opening bell on Friday, when the banking industry’s earnings season kicks off.JPMorgan has been the target of a storm for bank investors this year. The largest US bank’s asset-by-asset earnings report has been watched closely by other financial institutions’ readings.Related investment newsHere’s what Wall Street expects, according to analyst estimates:Earnings: $4 per share, according to RefinitivRevenue: $38.96 billion, according to RefinitivTrading revenue: $4.12 billion in bonds, $2.41 billion in equities, according to StreetAccountInvestment banking income: $1.42 billionNet interest income: $21.21 billionJP Morgan has stood out in several ways lately.Deposits, funding costs, net interest income, everything Regional bank crisis The bank, which launched in March, outperformed its smaller peers.That has pushed the bank’s share price up 11% year-to-date, compared with a 16% decline in the KBW Bank Index. When JP Morgan last reported earnings in April, the company’s stock price was maximum profit day Increased in 20 years.This time around, JP Morgan will benefit from owning First Republic following its acquisition by a US broker in early May.Acquisition, loosely added $203 billion Loans and securities, as well as $92 billion in deposits, could help JPMorgan soften some of the headwinds facing the industry. Banks are losing low-cost deposits as customers look for higher-yielding cash storage, causing higher funding costs for the industry.That puts pressure on the industry’s profit margins. Several regional banks reported lower-than-expected interest income last month, and analysts expect more to follow suit in the coming weeks. In addition, banks are expected to reveal slowing loan growth and rising costs related to commercial real estate debt, all of which are weighing on bank earnings.Lenders are starting to build up more loan loss reserves as the economy is expected to slow this year. JPMorgan expects to book $2.72 billion in reserves for credit losses, according to Street Account estimates.The bank won’t be able to avoid the economic downturn it faces elsewhere, a slowdown in trading and investment banking. JPMorgan said in May that revenues from such activity on Wall Street were headed for a significant uptick. 15% less from a year ago.Finally, analysts will want to hear JP Morgan’s opinion Jamie Dimon He has to talk about the health of the economy and expectations for banking regulation and consolidation.wells fargo and city group Results are expected to be announced late Friday. bank of america and Morgan Stanley Tuesday report. goldman sachs We will announce the results on Wednesday.This story is in development. Please check back for the latest information.
https://www.cnbc.com/2023/07/14/jpmorgan-chase-jpm-earnings-2q-2023.html JPMorgan Chase (JPM) Q2 2023 Results