Chase CEO Jamie Dimon attends the seventh “Choose France” summit, aimed at attracting foreign investors to the country, at the Palace of Versailles, near Paris, on May 13, 2024.
Lucovic Marin | Getty Images
JPMorgan Chase is expected to report its fourth-quarter results before the opening bell on Wednesday.
Here’s what Wall Street expects:
- Profit: $4.11 per share, according to LSEG
- Income: $41.7 billion, according to LSEG
- Net interest income: $23.1 billion, according to StreetAccount
- Trading revenue: $4.42 billion in fixed income, $2.37 billion in equities, according to StreetAccount
JPMorgan’s results will be closely watched for any signs that the sector’s optimism is justified.
Banks ended the year with several reasons to be optimistic: Wall Street activity has picked up as Main Street consumers remain resilient, while Donald Trump’s election victory has raised hopes of a relaxation of regulations.
JPMorgan, the largest U.S. bank by assets, stands to benefit on several fronts.
Last month, executives said investment banking revenue would rise 45% in the fourth quarter and trading revenue would rise about 15%.
Additionally, the bank said its latest projection for 2025 net interest income was $2 billion higher than previous forecasts, leading analysts to speculate that fourth-quarter NII would also be higher than expected. .
While the company is thriving, analysts will likely question CEO Jamie Dimon about his succession planning after its second-ranking executive, Daniel Pinto, announced he was stepping down as chief operating officer in June. Dimon signaled last year that he would likely step down as CEO within five years.
Another question is how much impact the Federal Reserve’s new rate cut prospects will have on all of its large-scale operations. While Fed officials expect two more cuts this year, economic indicators may prompt them to pause.
Finally, analysts could pressure JPMorgan on what it plans to do with a potential capital windfall if Trump’s regulators present a softer version of the final phase of Basel 3, as potential nominees have argued. Dimon said last May that share buybacks would be subdued due to high stock prices, but they have only climbed since then.
In addition to JPMorgan, Goldman SachsWells Fargo and Citi Group also publish their quarterly and annual results on Wednesday, while Bank of America and Morgan Stanley are due to report on Thursday.
This story is developing. Please check again for updates.
