JPMorgan Chase is set to unveil its second-quarter earnings prior to the market opening on Tuesday, prompting anticipation on Wall Street.
Analysts predict the following outcomes:
- Earnings per share: $4.48, according to LSEG.
- Revenue: $44.16 billion, according to LSEG.
- Net interest income: $23.6 billion, as reported by StreetAccount.
- Trading revenue: Fixed income estimated at $5.2 billion, and equities at $3.2 billion, according to StreetAccount.
The results will offer investors insights into the performance of U.S. consumers and corporations during the second quarter.
Following a strong first quarter, it is likely that the nation’s largest financial institutions have benefitted from significant trading revenue, largely driven by fluctuations stemming from former President Donald Trump’s trade policies.
Although the markets faced a downturn in April following the announcement of expansive tariffs by Trump, the subsequent recovery suggests investment banking revenue could also rebound later in the quarter, as noted by Matt Stucky, chief portfolio manager of equities at Northwestern Mutual’s wealth management division.
Moreover, the high levels of assets are expected to positively impact the wealth management divisions of banks such as JPMorgan, Goldman Sachs and Morgan Stanley.
Despite strong performance on Wall Street from these firms, the lending divisions have thus far not encountered significant credit loss concerns, buoyed by better-than-expected employment figures in the U.S.
This collective optimism, alongside forecasts of industry deregulation, contributed to a notable rise in bank shares during the past quarter. The S&P 500 Banks Index experienced a remarkable increase of 14.4%, outpacing other financial sectors and the broader large-cap index.
Citigroup and Wells Fargo will also be releasing their quarterly earnings on Tuesday, with Goldman Sachs, Bank of America and Morgan Stanley set to report their results on Wednesday.
This story is developing. Please check back for updates.
