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Banks (Finance)

US Banks to Report Earnings Amid Interest Rate Environment

Strategic Insights

— 1 min read

Leading US banks, including JPMorgan Chase, Wells Fargo, and Bank of America, are set to report fourth-quarter earnings this week, providing insight into their growth prospects and ability to navigate the near-zero interest-rate environment. Analysts expect modest earnings-per-share gains and revenue increases, driven by growth in credit card units, automobile loans, and other commercial loans. However, the banks' ability to maintain profit margins will be scrutinized as they face increased competition and regulatory pressures.

Key Takeaways:

  • JPMorgan Chase is expected to post Q4 earnings-per-share gains of 1 cent to $1.31, with revenue falling 1.9% to $23.6 billion.
  • Wells Fargo is expected to earn $1.02 per share, gaining 2 cents from the previous year, with revenue increasing 2.7% to $21.2 billion.
  • Bank of America is expected to earn 31 cents per share, up 2 cents from Q4 '13, with revenue falling 2.3% to $20.994 billion.
  • Citigroup is expected to post Q4 earnings of 9 cents per share, down 89.4% from litigation and other expenses, with revenue increasing 4.1% to $18.5 billion.
  • Goldman Sachs is expected to post a 6.1% decline in Q4 EPS of $4.32, with revenue falling 13.1% to $7.7 billion.
  • Morgan Stanley is expected to see a 2-cent year-to-year EPS decline to 48 cents for Q4, with revenue dropping 1.5% to $8.08 billion.

Statistics:

  • JPMorgan Chase's Q4 revenue is expected to fall 1.9% to $23.6 billion.
  • Wells Fargo's Q4 revenue is anticipated to increase 2.7% to $21.2 billion.
  • Bank of America's Q4 revenue is expected to fall 2.3% to $20.994 billion.
  • Citigroup's Q4 revenue is expected to increase 4.1% to $18.5 billion.
  • Goldman Sachs' Q4 revenue is expected to fall 13.1% to $7.7 billion.
  • Morgan Stanley's Q4 revenue is expected to drop 1.5% to $8.08 billion.

Sources:

  • "JPMorgan Chase & Co" - [STOCK[JPM]]
  • "Wells Fargo & Co" - [STOCK[WFC]]
  • "Bank of America Corp" - [STOCK[BAC]]
  • "Citigroup Inc" - [STOCK[C]]
  • "Goldman Sachs Group Inc" - [STOCK[GS]]
  • "Morgan Stanley" - [STOCK[MS]]
  • "Thomson Reuters" - [Thomson Reuters analysts polled]
  • "Buckingham Research" - [Buckingham Research analysts]
  • "Keefe, Bruyette & Woods" - [Keefe, Bruyette & Woods analysts]
  • "Barclays" - [Barclays analysts]

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