JPMorgan Chase prepares to unveil first-quarter earnings: Here’s what analysts anticipate

JPMorgan Chase is poised to unveil its first-quarter earnings prior to Friday’s opening bell.

Investors and analysts will scrutinize the report for insights into the performance of banks in the early months of the year.

As the largest U.S. bank by assets, JPMorgan has adeptly navigated the shifting rate environment since the Federal Reserve commenced rate hikes two years ago. However, its smaller counterparts have faced profit pressures.

The banking sector has grappled with the need to offer higher interest rates on deposits as customers move funds into higher-yielding options, which has compressed margins. Moreover, concerns have mounted over increasing losses from commercial loans, particularly on properties like office buildings and multifamily dwellings, as well as higher defaults on credit cards.

Nevertheless, expectations are bullish for large banks this quarter, with JPMorgan expected to lead the pack. Analysts anticipate that the bank may revise its guidance for 2024 net interest income upward, given the Federal Reserve’s likely commitment to maintaining interest rates amidst persistent inflationary pressures.

CEO Jamie Dimon’s commentary on the economic outlook and the industry’s response to proposals aimed at capping credit card and overdraft fees will be of particular interest to analysts.

The investment banking segment could provide a boost this quarter, with industry-wide investment banking fees up 11% compared to the previous year, according to Dealogic.

JPMorgan’s stock has surged 15% year-to-date, outpacing the 3.9% gain of the KBW Bank Index.