JPM (JPMorgan Chase) results in Q3 2022

JPMorgan Chase is expected to release Q3 results before Friday’s opening bell.

Here’s what Wall Street expects:

  • Earnings: $ 2.88 per share, down 23% from a year earlier, according to Refinitiv.
  • Revenues: $ 32.1 billion, up 5.4% from the previous year.
  • Credit Loss Provision: $ 1.37 billion, according to StreetAccount
  • Commercial revenue: Fixed income $ 4.18 billion, shares $ 2.65 billion, according to StreetAccount
  • Investment Banking Revenue: $ 1.74 billion, per StreetAccount

JPMorgan, the largest US bank by assets, will be closely watched for clues as to how banks are navigating a confusing environment.

On the one hand, unemployment levels remain low, which means that consumers and businesses have little difficulty in repaying their loans. Rising interest rates mean banks’ core lending business is becoming more profitable. And the volatility of the financial markets has been a boon for bond traders.

But investors recently dumped banking stocks, pushing JPMorgan and others to new 52-week lows this week on fears the Federal Reserve may inadvertently trigger a recession. Revenues from investment banking and mortgage lending have fallen sharply and companies may disclose write-downs due to declining financial assets.

In addition, banks are expected to start increasing their loan loss reserves due to fears of a deepening recession; According to analysts, the six largest US banks by assets are expected to set aside a total of $ 4.5 billion in reserves.

This matches the cautious tone of CEO Jamie Dimon, who said this week sees a recession hitting the United States over the next six to nine months.

Last month, JPMorgan president Daniel Pinto warned that the investment bank’s third-quarter revenue was heading for a decline of up to 50%, thanks to slump in IPO business and debt issues and actions. To compensate for this, commercial revenue was heading for a 5% jump from the previous year thanks to strong fixed income activity, he said.

As a result, investors should expect a mix of contradictory trends in the quarter and a wider than usual range of results across the six largest US institutions.

Shares of JPMorgan were down 31% this year through Thursday, worse than the 25% drop in KBW bank index.

Morgan Stanley, Well Fargo and Citigroup they should also report the results on Friday, followed by Bank of America Monday and Goldman Sachs Tuesday.

This story is developing. Please check for updates.

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