JPMorgan Chase is set to report fourth-quarter earnings – here’s what the Street expects

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JPMorgan Chase is due to report fourth-quarter earnings before the opening bell on Friday.

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What Wall Street Expects:

  • Earnings: $3.01 per share, down 21% from a year ago, according to Refinitiv.
  • Revenue: $29.9 billion, down 0.9% from a year ago.
  • Net interest income according to FactSet: $13.45 billion
  • Trading revenue: Fixed income $3.40 billion, equity $2 billion
  • Investment banking fees: $3.22 billion
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JPMorgan Chase, the first major bank to report fourth-quarter earnings, will be watching closely for signs of an expected rebound in lending.

Government stimulus programs during the pandemic left consumers and businesses stunned, resulting in stagnant loan growth and prompting CEO Jamie Dimon to say last year that credit growth was “challenging.”

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But analysts point to a rebound in the fourth quarter, driven by demand from corporations and credit card borrowers. They want to see that show in JPMorgan’s results, as the Federal Reserve’s expected rate hikes, along with the two primary drivers of industry profitability.

Analysts can also ask the bank about the impact of its recent decision to rein in overdraft fees. JPMorgan said last month that it would give customers a grace period to avoid punitive fees, a move that would be “insignificant” to revenue, among other changes.

JPMorgan’s chief operating officer Daniel Pinto said during a conference call last month that fourth-quarter trading revenue was led by 10% drop, driven by a decline in fixed income activity from record levels. He said investment banking fees are expected to increase by 35%.

The bank was forced to pay a $200 million fine last month to settle allegations that a Wall Street division allowed workers to use messaging apps to circumvent record-keeping laws.

Shares of JPMorgan have climbed 6.2% this year, trailing the KBW Bank Index’s 11.6% gain.

This story is developing. Please check back for updates.

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