The unofficial start to the second-quarter earnings season kicks off on Friday, with reports from banking giants including JPMorgan Chase & Co. Analysts polled by London Stock Exchange Group (LSEG) expected the financial giant to report earnings of $4.18 per share on revenue of $42.16 billion. In addition to top-line and bottom-line numbers, Wall Street is also keeping a close eye on net interest income and guidance. “We are attracted to JPMorgan’s competitive position and believe it has resolved many of its litigation issues,” Barclays analyst Jason Goldberg said. “We believe the largest source of potential earnings growth is driven by higher loan Growth and Capital Markets Driven. ” JPMorgan Chase’s Year-to-Date Stock Performance Shares of JPMorgan Chase have performed well in 2024, rising 22%. The bank’s chief executive, Jamie Dimon, has also made headlines in recent months, warning in April that sticky inflation, war and Fed policy posed potentially significant threats going forward. Goldman Sachs analyst Richard Lumsden noted that analysts will be watching JPMorgan’s 2024 outlook, particularly the trajectory of net interest income given expectations of a longer-term higher interest rate environment. Bank of America’s Ebrahim Poonawala said the company’s net interest income target was $91 billion earlier this year, but another upward revision was not out of the question. The firm set a price target on the stock of $226, which would represent an increase of nearly 9% from Wednesday’s closing price. Barclays analyst Goldberg expects net interest income to fall slightly in the second quarter due to net interest margin compression. Last year, the company reported net interest income of $21.9 billion for the same period. While a seasonal decline in deal volumes is expected, he also expects strong investment banking activity and net interest income to drive continued positive momentum. “Going forward, we expect JPMorgan to stabilize NII through increased ongoing investment charges in 2024,” he said. “However, loan loss provisions are likely to increase further as credit normalizes.” Wells Fargo analyst Mike May O expects the earnings realized by Visa to provide upside to second-quarter earnings per share estimates, resulting in $8 billion in pre-tax gains that will be partially offset by $1 billion in foundation contributions and the establishment of loan loss reserves. pin. He added that this could create “excess capital for repurchases, balance sheet growth, portfolio liquidation or other actions,” with about $5 billion expected to be repurchased in the coming quarters. “JPMorgan is a highly diversified bank and a market leader in consumer banking, commercial lending, IB and wealth management,” said Redburn Atlantic’s John Heagerty. “JPMorgan is simply regarded as the highest quality bank in the United States.” He Views the uncertain macroeconomic backdrop as a potential opportunity for the company to leverage its strong balance sheet to acquire smaller banks.
