Chase CEO Jamie Dimon looks on as he attends the seventh 'Choose France Summit', aimed at attracting foreign investors to the country, at the Chateau de Versailles, outside Paris, on May 13, 2024.
Lucovic Marin | Getty Images
JPMorgan Chase is expected to report fourth-quarter results before the opening bell Wednesday.
Here's what Wall Street expects:
- Earnings: $4.11 per share, according to LSEG
- Revenue: $41.7 billion, according to LSEG
- Net interest income: $23.1 billion, according to StreetAccount
- Trading revenues: fixed income of $4.42 billion, equities of $2.37 billion, according to StreetAccount
JPMorgan's results will be closely watched to see if there are signs that optimism in the sector is warranted.
Banks ended the year with several reasons to be optimistic: Wall Street activity has increased while Main Street consumers remain resilient, while Donald Trump's election victory has raised hopes for regulatory relief.
JPMorgan, the largest US bank by assets, will benefit on several fronts.
Last month, executives said investment banking revenues would rise 45% in the fourth quarter, and trading revenues would rise about 15%.
Furthermore, the bank said its latest projection for 2025 net interest income was $2 billion higher than previous expectations, leading analysts to speculate that the fourth quarter NII would also beat expectations.
As the company thrives, analysts are likely to ask CEO Jamie Dimon about his succession planning after his No. 2 executive, Daniel Pinto, said he resigned as chief operating officer in June. Dimon announced last year that he would likely step down as CEO within five years.
Another question is how the changing outlook for Federal Reserve rate cuts will affect the bank in all its far-reaching activities. While Fed officials expect two more cuts this year, economic indicators could cause interest rates to hit pause.
Finally, analysts may press JPMorgan on what it plans to do with a potential capital windfall if Trump's regulators present a softer version of the Basel 3 endgame, as potential nominees have supported. Dimon said last May that share buybacks would be toned down because the shares were expensive, but they have only gone up since then.
In addition to JPMorgan, Goldman SachsWells Fargo and Citi Group also report quarterly and annual results on Wednesday Bank of America and Morgan Stanley will report on Thursday.
This story is developing. Check back later for updates.