JPMorgan Chase profit falls after $2.9 billion fee from regional bank rescues

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Jamie Dimon, CEO of JPMorgan Chase, testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled Annual Oversight of Wall Street Firms, in the Hart Building on Dec. 6, 2023.
Tom Williams | Cq-roll Call, Inc. | Getty Images

JPMorgan Chase is scheduled to report fourth-quarter earnings before the opening bell Friday.

Here’s what Wall Street expects:

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  • Earnings per share: $3.32, according to LSEG, formerly known as Refinitiv.
  • Revenue: $39.78 billion, according to LSEG.
  • Net interest income: $22.98 billion, on an FTE basis, according to StreetAccount.
  • Trading revenue: Fixed income of $3.78 billion, equities of $1.91 billion, according to StreetAccount.

JPMorgan will be watched closely for clues on how banks fared amid volatile interest rates and rising loan losses.

While the biggest U.S. bank by assets has navigated the rate environment capably since the Federal Reserve began raising rates in early 2022, smaller peers have seen their profits squeezed.

The industry has been forced to pay up for deposits as customers shift cash into higher-yielding instruments, squeezing margins. At the same time, rising yields mean the bonds owned by banks fell in value, creating unrealized losses that pressure capital levels.

Concern is also mounting over rising losses from commercial loans, especially office building debt, and higher defaults on credit cards.

Beyond guidance on net interest income and loan losses for this year, analysts will want to hear what CEO Jamie Dimon has to say about the economy and banks’ efforts to tone down coming increases in capital requirements.

Wall Street may provide some help this quarter, with investment banking revenue higher than a year earlier, while trading may be “flattish,” JPMorgan said last month at a conference.  

Beaten-down shares of banks recovered in November on expectations that the Fed had successfully managed inflation and could cut rates this year.

Shares of JPMorgan jumped 27% last year, the best showing among big bank peers and outperforming the 5% decline of the KBW Bank Index.

Bank of America, Wells Fargo and Citigroup are scheduled to release results later Friday, while Goldman Sachs and Morgan Stanley report Tuesday.

This story is developing. Please check back for updates.

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