JP Morgan Chase (NYSE:JPM)
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2 Years : From Oct 2017 to Oct 2019
By Emily Glazer
JPMorgan Chase & Co., the largest U.S. bank by assets, is expected to report its second-quarter results before the market opens Friday. Here's what you need to know.
1. Earnings Expected to Jump
Earnings of $2.22 a share are the consensus of analysts surveyed by Thomson Reuters. That would represent a 30% increase from the $1.71 a share the company earned in the same period a year earlier. JPMorgan and other large banks continue to benefit greatly from the new U.S. tax law.
2. Higher Revenue as Well
Revenue of $27.37 billion is forecast, higher than the $25.76 billion reported in the year-earlier quarter.
3. Flat Trading
Daniel Pinto, the bank's co-president and head of its corporate and investment bank, said in May that trading is expected to be flat in the second quarter compared to the year-earlier period. He said "core activity" would be up in the mid-single digit percentage range, but look out for a series of one-offs that could drive results lower. Performance in interest-rate trading and commodities could be better than emerging markets.
4. Can the Bank Keep Growing?
JPMorgan Chief James Dimon recently said the banking sector is in "a golden age." That's due in part to a softening regulatory environment, the impact of the new U.S. tax law on banks' financial outlooks and the firms' continued focus on efficiency. Now we'll find out if the latest quarter lives up to the rhetoric.
5. U.S. Policy Commentary
Investors will be poised to hear any fresh perspective from Mr. Dimon about U.S. policy and its impact on the economy or banking industry. Of particular interest would be updates on the impact of Chinese tariffs, Brexit or immigration policy, all of which Mr. Dimon has taken stances on previously.
Write to Emily Glazer at email@example.com
(END) Dow Jones Newswires
July 12, 2018 12:32 ET (16:32 GMT)
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