JPMorgan Chase & Co. Chairman and Chief Executive Officer Jamie Dimon speaks during a luncheon with the New Democratic Coalition at the U.S. Capitol in Washington, DC, on June 6, 2023.

Nathan Howard | Bloomberg | Getty Images

JPMorgan Second-quarter results are scheduled to be released before the market opens on Friday, kicking off the banking earnings season.

JPMorgan has been a safe haven from the storm for bank investors this year. Earnings reports from the largest U.S. bank by assets are closely watched for reading by other banks.

Here’s what Wall Street is expecting, based on analyst estimates:

  • Earnings: $4 per share, according to Refinitiv data
  • Revenue: $38.96 billion, according to Refinitiv
  • Trading revenue: $4.12 billion in fixed income, $2.41 billion in equities, according to StreetAccount
  • Investment banking revenue: $1.42 billion
  • Net interest income: $21.21 billion

JPMorgan has been doing really well on a number of fronts lately. Whether it’s deposits, funding costs or net interest income — all hot topics since the regional banking crisis erupted in March — the bank has outperformed its smaller peers.

That has helped the bank’s shares rise 11% so far this year, compared with a 16% decline in the KBW Bank Index. The last time JPMorgan reported results in April, its stock had its biggest earnings day gain in two decades.

This time around, JPMorgan will benefit from owning First Republic following its US-brokered takeover of the company in early May.

The acquisition increased approximately $203 billion Loans and securities, along with $92 billion in deposits, may help cushion JPMorgan from some of the headwinds facing the sector. Banks are losing out on low-cost deposits as customers look for higher-yielding places to park their cash, leading to higher funding costs for the industry.

This has put pressure on the industry’s profit margins. Several regional banks reported lower-than-expected interest income last month, and analysts expect more to do so in the coming weeks. On top of that, banks are expected to report slower loan growth and higher costs related to commercial real estate debt, all of which will squeeze profits.

Lenders have started taking more provisions for loan losses amid expectations of an economic slowdown this year. JPMorgan is expected to take a $2.72 billion provision for credit losses, according to StreetAccount estimates.

The bank will not be able to escape the downturn it faces elsewhere, namely a slowdown in trading and investment banking activity. In May, JPMorgan said revenue from these Wall Street events would be down 15% from a year earlier.

Finally, analysts will want to hear what JPMorgan CEO Jamie Dimon has to say about the health of the economy and his expectations for banking regulation and consolidation.

FuGuo bank and Citigroup The results are due to be released later on Friday, while Bank of America and Morgan Stanley Report Tuesday. Goldman Sachs The results were announced on Wednesday.

The story is developing. Please check for updates.

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