Jamie Dimon, Chief Executive Officer of JPMorgan Chase & Co., speaks during the Bloomberg Global Business Forum in New York, the United States, on Wednesday, September 25, 2019.
Tiffany Hagler-Geard | Bloomberg | Getty Images
JPMorgan Chase is expected to announce its third quarter results before the opening bell on Wednesday
What Wall Street Expects:
- Earnings: $ 3 per share, 2.6% more than last year, according to Refinitiv
- Revenue: $ 29.8 billion, down 0.6% from last year
- Net Interest Income: $ 12.98 billion on a reported basis according to StreetAccount.
- Trading Revenue: Fixed Income $ 3.73 Billion, Stocks $ 2.16 Billion
- Investment banking fees: $ 2.75 billion
JPMorgan Chase, the first major bank to announce third quarter results, is being watched closely for signs of a turning point in the industry’s weak credit growth.
Consumers and businesses have been cluttered with cash this year thanks to government incentives, paying credit card balances and taking out less commercial loans. This prompted CEO Jamie Dimon to label credit demand as “challenged” in April.
Another area of interest will be the company’s trading and advisory department on Wall Street. For most of the pandemic, booming trading, IPOs, and mergers have resulted in robust fees for JPMorgan’s investment bank.
This should weaken in the third quarter. Last month, JPMorgan executive Marianne Lake said trading revenue will be 10% lower than a year ago, which was an unusually strong quarter.
Dimon will likely be asked about the bank’s acquisition strategy after a number of new deals. Last month, the bank acquired Frank restaurant rating service, the infatuation and college planning platform. This was followed by three fintech start-up acquisitions last year.
JPMorgan’s stock is up 31% this year, after 38% in the KBW Bank index.
This story evolves. Please check again for updates.
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