Jump to content

Big banks kick-off Q3 earnings on Friday


MongiIG

Recommended Posts

US earnings preview: big banks kick-off Q3 reporting on Friday

While there are some reports during the week, traders will focus in on Friday when JP Morgan, Wells Fargo, Citigroup, and Morgan Stanley report. Watch out for bad debt provision as consumers and corporates find the going tough.

 

 Jeremy Naylor | Writer, London | Publication date: Monday 10 October 2022 

Banks kick off Q3 earnings season

This coming Friday, four of the largest US banks report earnings and that kicks off the earnings season for this latest quarterly report. JPMorgan JPMorgan, Citigroup, Wells Fargo and Morgan Stanley all come out with numbers on Friday.

Markets have been somewhat turbulent, to say the least, in the last three months. While banks may have been able to charge more for customers to borrow because of interest rate hikes, demand for those very products are beginning to bottom out and indeed dry up to some degree. And we're talking here about personal debts, corporate debts, some of the mortgages as well, which are now more than 6%. That jump in borrowing costs has hit a lot of the demand within the sector, triggered by that higher inflation, the war in Ukraine and other supply chain issues.

Now, as a result, analysts expect that banks, when they start reporting the back end of this week, to increase by 5.4% year-on-year (YoY). So far as JPMorgan Chase is concerned, that's where we are looking for an increase in revenue to just over $32 billion. But analysts see a 22% drop in earnings per share to $2.91.

Three weeks ago, JP Morgan's chief financial officer warned the markets that investment banking revenue would be down by 45 to 50% in the third quarter (Q3).

Last year strong demand for IPOs and other deals pushed investment banking revenue up to $3.3 billion. But the amount of money being set aside to cover bad loans is likely to be one of the really big elements to watch out for so far as these banks are concerned.

Share price charts

I want to take a look at the JPMorgan share price chart. It trades all-sessions on the IG platform but you won't be able to trade it today because the US markets are out. But it will be back in trade on Tuesday. And you can trade this when it reports earnings before the bell on Friday.

We're very close to seeing new lows for the year, as at last trade we saw 10591 for JPMorgan.

As for the other three on Friday, the biggest US mortgage lender, Wells Fargo, expected to post earnings of $1.10 per share. That's a 17% decline according to refinitive. Revenue is expected to fall by around about 1% to $18.75 billion.

Citigroup you can see that earnings per share $1.49 on revenues of $18.38 billion and as for Morgan Stanley, the one major US bank that does not trade all-sessions on the IG platform, analysts anticipate earnings of $1.52 and revenues to reach $13.23 billion.

All these companies are reporting on Friday before the bell.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      23,631
    • Total Posts
      97,033
    • Total Members
      44,191
    • Most Online
      7,522
      10/06/21 12:53

    Newest Member
    Ruskin01
    Joined 06/12/23 07:56
  • Posts

    • Elliott Wave Analysis TradingLounge Daily Chart, 6 December 23, NEO/ U.S. dollar(NEOUSD) NEOUSD Elliott Wave Technical Analysis Function: Counter Trend Mode: Corrective Structure: Zigzag Position: Wave (B) Direction Next higher Degrees: Wave ((2)) of Impulse Wave Cancel invalid Level: 6.49 Details: Retracement of wave ((2)) usually .50 or .618 x Length wave ((1)) NEO/ U.S. dollar(NEOUSD)Trading Strategy : The rally in wave (1) appears to have ended at the 15.46 level and the price is entering a correction period in wave (2), where the reversal of wave (2) is usually .50 or .618 x length. Wave (1) Therefore, Neo's trend is still up. The reversal is only short term to continue the wave (3). NEO/ U.S. dollar(NEOUSD)Technical Indicators: The price is above the MA200 indicating an uptrend, Wave Oscillators a Bullish Momentum. TradingLounge Analyst: Kittiampon Somboonsod, CEWA Source : TradingLounge.com get trial here!         Elliott Wave Analysis TradingLounge 4H Chart, 6 December 23, NEO/ U.S. dollar(NEOUSD) NEOUSD Elliott Wave Technical Analysis Function: Counter Trend Mode: Corrective Structure: Zigzag Position: Wave (B) Direction Next higher Degrees: Wave ((2)) of Impulse Wave Cancel invalid Level: 6.49 Details: Retracement of wave ((2)) usually .50 or .618 x Length wave ((1)) NEO/ U.S. dollar(NEOUSD)Trading Strategy : The rally in wave (1) appears to have ended at the 15.46 level and the price is entering a correction period in wave (2), where the reversal of wave (2) is usually .50 or .618 x length. Wave (1) Therefore, Neo's trend is still up. The reversal is only short term to continue the wave (3). NEO/ U.S. dollar(NEOUSD)Technical Indicators: The price is above the MA200 indicating an uptrend, Wave Oscillators a Bullish Momentum.    
    • Commodities Market Trading Report - Technical Analysis Elliott Wave, Trading Levels and Trading Strategies Content: Bitcoin, US Bond Yields, USD, DXY, US Gold XAU, GDX, Silver XAG, Gold Stocks, Iron Ore, Copper, Uranium, Crude Oil, Natural Gas. Commodities Market Summary: Gold and Silver Wave (b) of ii). TLT Bonds Wave 1. 10 yr. Yields Wave 1. USD DXY Support on 104 with a Classic TradingLevels pattern would see further upside, if not then down for Wave v) of 1 - it’s a bit of wait and see. Energy markets continue to trend lower but expect support sooner rather than later. And base metals, we have Iron Ore and Uranium holding trends to the upside and Copper has three waves up, let’s see if it can create five waves as an impulse wave or just fail from here based on the three waves up. Video Chapters 00:00 Bitcoin (BTC) Ether ETHUSD 01.30 US Dollar Index, DXY 04:07 TLT Bonds. US Gov Bonds 10 Yr Yields 05:36 Precious Metals: Spot Gold  / US Spot Silver / XGD and Gold Stocks US / ASX 09:06 Base Metals: XME ETF, Iron Ore, Copper. Uranium URA. 12:54 Energy: XLE ETF / Crude Oil / Natural Gas  20:50 End Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge.com  Access Trial here    
    • I think you have said it all about LSK and considering it's market cap and the circulating supply, one could be convinced of an interesting price in the bull run
×
×
  • Create New...
us