Bank earnings preview: What to look for when major banks report Q4 2023 results

A number of leading banks are set to report their earnings results for the fourth quarter of 2023 by the end of this week and over the next. The outlook for banking companies continues to be dampened by factors such as weak economic growth and geopolitical tensions. On the other hand, high interest rates will continue to be beneficial for these firms.

JPMorgan Chase & Co. (NYSE: JPM), Citigroup Inc. (NYSE: C), Wells Fargo & Company (NYSE: WFC), and Bank of America (NYSE: BAC) are all scheduled to report their Q4 2023 earnings results on Friday, January 12, before markets open. Meanwhile Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS) are set to report their Q4 results on Tuesday, January 16. Here’s a look at the estimates for these banks for the fourth quarter:

JPMorgan

Analysts are projecting earnings of $3.40 per share on revenue of $39.8 billion for JPMorgan in the fourth quarter of 2023. This compares to earnings of $3.57 per share on revenue of $34.5 billion reported in the year-ago period. For the third quarter of 2023, JPM reported earnings of $4.33 per share on revenue of $39.8 billion.

Citigroup

Citigroup is estimated to report earnings of $0.88 per share on revenue of $18.8 billion in Q4 2023 which compares to earnings of $1.16 per share on revenue of $18 billion in the prior-year quarter. In Q3 2023, Citigroup reported revenues of $20.1 billion and EPS of $1.63.

Wells Fargo

Analysts are predicting earnings of $1.20 per share on revenues of $20.3 billion for Wells Fargo in the fourth quarter of 2023. This compares to earnings of $0.67 per share on revenue of $19.6 billion reported in the same period a year ago. In the third quarter of 2023, Wells Fargo’s revenues totaled $20.8 billion while EPS amounted to $1.48.

Bank of America

The consensus estimate for EPS in Q4 2023 is $0.64, which compares to EPS of $0.85 in the year-ago quarter. Revenues are projected to be $24 billion, which compares to $24.5 billion reported last year. In Q3 2023, revenue was $25.2 billion and EPS was $0.90.

Goldman Sachs

Analysts are projecting earnings of $3.33 per share on revenue of $10.8 billion for Goldman Sachs in Q4 2023. This compares to earnings of $3.32 per share on revenue of $10.59 billion reported in Q4 2022. In Q3 2023, the company reported earnings of $5.47 per share on revenue of $11.82 billion.

Morgan Stanley

Morgan Stanley is estimated to report earnings of $1.04 per share on revenue of $12.8 billion in the fourth quarter of 2023. This compares to EPS of $1.26 on revenue of $12.75 billion in the year-ago quarter. In Q3 2023, revenues were $13.3 billion and EPS was $1.38.