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JPM earnings 1Q 2022

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Jamie Dimon, CEO of JPMorgan Chase speaks to the North America’s Building Trades Unions 2019 legislative conference in Washington on April 9, 2019.

Jeenah Moon | Reuters

JPMorgan ChaseThe first quarter earnings are expected to be reported before Wednesday’s opening bell.

Here are the expectations of Wall Street:

  • Earnings were $2.69 a share which was 40% less than the previous year, Refinitiv reports.
  • Revenues were $30.86Billion. This is 6.8% more than the previous year.
  • StreetAccount: Net interest income of $13.7 billion
  • Trade Revenue: Fixed Income 4.92 Billions Stocks $2.61 Billion
  • 2.37 trillion in Investment Banking Fees

JPMorgan will be monitored closely to see how Wall Street did during the turbulent first quarter.

One, the drop in investment bank fees is expected because of slowdownTo date, there have been many mergers, IPOs or debt issuances. Some fixed income desks may have been able to benefit from volatility spikes and dislocations on the markets caused by the Ukraine conflict.

Wall Street could see more winners and losers this quarter than normal. Wall Street analysts have lowered estimates recently, meaning that firms who can navigate the volatile markets smoothly could outperform expectations. However, others may reveal trading collapses.

JPMorgan stated last month that trading revenues fell 10% between March 1 and 3, but the turmoil associated with Ukraine war, sanctions on Russia and other factors made it difficult to predict further. impossible.

Troy Rohrbaugh was JPMorgan’s chief global markets officer, and stated, “The markets have been extremely volatile at the moment. There’s a lot more uncertainty.” “The full implications of these conditions remain uncertain.”

A second area that investors should be focusing on is the rise in interest rates. These tend to increase bank lending margins. According to Federal Reserve data, banks’ loans increased by 8% during the first quarter. This was driven by commercial borrowers. Analysts expect this trend to continue.

However, longer term rates increased during the quarter. Short-term rates rose even more. This flat or sometimes inverted yield curve raised concerns that there could be a recession. Investors fear a recession and banks sell their assets to protect themselves. This could lead to a rise in loan loss as borrowers fall behind.

Analysts are also interested in the views of executives about their exposure and indirect exposure to Ukraine’s conflict. JPMorgan declared last month it was unwindingRussia operations. Jamie Dimon, the CEO of Dimon’s annual shareholder letter stated in his annual shareholder correspondence that management was not concerned about Russia exposure but it may “still lose about”. $1 billion over time.”

JPMorgan has finally disclosed its outlook for surging revenues expensesAnalysts will be interested in hearing more this January about the trend of rising prices.

JPMorgan shares have fallen 16.9% since Wednesday. This is worse than the 10.6% drop in the KBW Bank Index.

Rival banks Goldman Sachs, Citigroup, Morgan StanleyAnd Wells FargoThey are due to announce results on Thursday.

This is a developing story. Keep checking back for more updates.

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