Banks Power: JPMorgan Chase’s Earnings Are a Leading Indicator for the Banking Industry.

July 14, 2023

JPMorgan Chase's Earnings Are a Leading Indicator for the Banking Industry.

After reporting second-quarter results on Friday, JPMorgan Chase will likely profit from increased interest rates again.

According to FactSet analysts polled, profits at JPMorgan (JPM) and banks power are forecast to increase 40% year on year to $12.1 billion. This equates to $3.98 in profits per share.

With JPMorgan being the first of the big banks to report results and the largest bank by assets in the United States, Wall Street pays special attention to its profits since the firm is generally regarded as a forerunner. Over the previous year, banks have had to negotiate a challenging macroeconomic environment.

Higher interest rates, which allowed banks to charge higher interest rates on loans last year, have become a burden for the industry, increasing financing costs and diminishing the value of their bond holdings.

Despite these challenges, Wall Street believes the banks power and JPMorgan will gain from increasing interest rates. Most of JPMorgan’s forecast earnings are attributable to an increase in net interest income to $21.2 billion from $15.2 billion last year. This increase is predicted to result in a 27% rise in revenue to $39 billion.

JPMorgan has survived despite the turbulence that engulfed the financial industry last year. This year, shares are up 11%, while the SPDR S&P Bank ETF (KBE) is down 15%. JPMorgan stepped in May to take over struggling First Republic Bank, allowing the bank to acquire $173 billion in loans and $62 billion in deposits after repaying $30 billion in deposits made by JPMorgan and other big banks to prop up the firm in March. The bank will report profits for the first time after the takeover on Friday.

Other banks have had a more difficult time throughout this spring’s problems. Deposits fled to the perceived safety of the larger banks, benefiting JPMorgan, Bank of America (BAC), and other large banks. On the other hand, smaller banks have to worry about deposit flights and be willing to pay higher interest rates on deposits to avoid the kind of departure that destroyed Silicon Valley Bank and the First Republic.

As a result, investors will pay particular attention to the net interest margin at JPMorgan and other banks, which is the difference between the income banks earn on loans and the interest they pay depositors. NIMs had been broadening as banks could charge higher interest rates on loans, but they are now under growing pressure to pay higher interest rates, leading NIMs to level or tick down.

Despite these sector challenges, JPMorgan is projected to post revenue and profit improvements, and investors will be watching the bank’s economic assessment closely. Fears of a recession have hung over markets this year as investors analyzed the impact of the Federal Reserve’s rate rises to combat inflation.

JPMorgan is anticipated to report that net charge-offs have more than doubled year over year with banks power and increased reserves for troubled loans by $1.2 billion, up from $428 million last year. In an interview with The Economist published this week, JPMorgan CEO Jamie Dimon stated that it is “possible” that the United States could enter a recession within the next six months. However, he was uncertain whether it would be moderate or severe.

Citigroup (C) and Wells Fargo (WFC) will also report results on Friday. Next week, Bank of America (BAC), Goldman Sachs (GS), and Morgan Stanley (MS) will report second-quarter earnings.

Subscribe Our Newsletter

Twitter Wants to Force Musk to Buy It. But There’s a Hitch
Twitter Wants to Force Musk to Buy It. But There’s a Hitch

When Elon Musk chose to back out of his $44 billion offer to buy Twitter, the social media giant filed a lawsuit in the Delaware Court of Chancery. Twitter has filed a lawsuit seeking "particular performance," an unusual remedy that would oblige Musk to finish the deal.

Companies
S&P 500 Forecast is Reaching New Highs

Milena

The stock Market’s Momentum Might Assist The S&P 500 Forecast in Reaching New Highs

As it has rebounded from its recent low, the S&P 500 forecast has broken through every significant level.

Stock Market Forecast
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Nato

Stock Chart Patterns Cheat Sheet for Successful Trading
Discover the secrets of trading with a stock chart patterns cheat sheet to make informed decisions effortlessly.

discover
How Liquidity Provider Tokens Work

Liquidity Provider

How Liquidity Provider Tokens Work

Numerous DeFi protocols make use of LP tokens, which are used to swap money for ownership of a pool that represents the proportion of a crypto liquidity provider in the pool.

Liquidity
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi

    Hazem

    Max Funded IUL Explained: Is It a Legitimate Financial Strategy?

    Understanding Max Funded IUL

    Alexander

    Tax Refund Timeline: When Will You Get Your Tax Return?

    how long does it take for tax refund

    Constantine

    Crypto Liquidity — What is it, and How to Measure It?

    What is Crypto Liquidity and How to Measure It?

    Constantine

    AI in Finance: A Game-Changing Trend Shaping the Industry

    AI in Finance

    Hazem

    5 Ways to Make Money with ChatGPT and Build Your Wealth

    Make Money with ChatGPT

    Constantine

    Top AI Companies to Invest in April 2025

    Top AI Companies to Invest in March 2025

    DeepSeek vs ChatGPT: Which AI Technology is Better For You?

    DeepSeek vs ChatGPT: Feature-by-Feature AI Tool Comparison

    Constantine

    Top Solana Meme Coins in 2025: Best Presales and Where to Buy

    Solana Meme Coins 2025

    Alexander

    How Renewable Energy Stocks Can Supercharge Your Portfolio

    How Renewable Energy Stocks Supercharge Your Portfolio

    SEC Crypto Regulations: What Financial Advisors Need to Know

    SEC Crypto Regulations: Insights for Financial Advisors

    Hazem

    The Cup and Handle Pattern – How Trade Using This Bullish Indicator?

    Cup and Handle Pattern – How to Predict Price Breakouts?

    Hazem

    Year-Over-Year (YoY): What It Means? How It’s Used in Finance?

    Year-Over-Year (YoY): How to Calculate Business Performance?

    Constantine

    What is WAGMI and NGMI? Understanding Crypto Slangs

    WAGMI vs. NGMI

    Alexander

    Litecoin Mining Guide: How to Get Started in 2025?

    Litecoin Mining Guide: How to Get Started in 2025?

    Constantine

    What is Thruster (THRUST): An Advanced AMM for the Blast Ecosystem

    Thruster (THRUST): How Does it Revolutionise DeFi?

    Constantine

    How Does Polymarket Work? Detailed Guide

    How Does Polymarket Work? Comprehensive Guide

    Constantine

    Coinbase vs. Сoinbase Pro: Which Platform is Right for You?

    Coinbase vs. Coinbase Pro
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.