Chase CEO Jamie Dimon looks on as he attends the seventh Choose France Summit, aimed at attracting foreign investors to the country, at the Chateau de Versailles outside Paris on May 13, 2024.
Lucovic Marin | Getty Images
JPMorgan Chase is expected to report fourth-quarter results before the opening bell on Wednesday.
Here's what Wall Street expects:
- Earnings: $4.11 per share, according to LSEG
- Revenue: $41.7 billion, according to LSEG
- Net interest income: $23.1 billion, according to StreetAccount
- Trading income: Fixed income $4.42 billion, equities $2.37 billion, according to StreetAccount
JPMorgan's results will be closely watched for signs that the industry's optimism is justified.
Banks ended the year with several reasons to be optimistic: Wall Street activity increased while Main Street consumers remained resilient, while Donald Trump's election victory raised hopes for regulatory relief.
JPMorgan, the largest American bank by assets, will benefit on several fronts.
Last month, executives said fourth-quarter investment banking revenue would rise 45% and trading revenue would rise about 15%.
Additionally, the bank said its latest forecast for net interest income in 2025 was $2 billion higher than its previous forecast, leading analysts to speculate that fourth-quarter NII would also beat expectations.
As the business thrives, analysts are likely to question CEO Jamie Dimon about his succession planning after his No. 2 executive, Daniel Pinto, said he would step down as chief operating officer in June. Dimon indicated last year that he would likely step down as CEO within five years.
Another question is how the changing outlook for interest rate cuts from the Federal Reserve will affect the bank's broader operations. While Fed officials expect two more rate cuts this year, economic indicators could cause them to pause.
Finally, analysts could press JPMorgan on what it plans to do with a possible influx of capital if Trump regulators come up with a softer version of the Basel 3 endgame, as potential candidates have supported. Dimon said last May that share buybacks would be muted because the stock was expensive, but they have only increased since then.
In addition to JPMorgan, Goldman SachsWells Fargo and Citigroup will also announce quarterly and full-year results on Wednesday Bank of America and Morgan Stanley are expected to report on Thursday.
This story is developing. Please check back for updates.
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