JPMorgan Chase & Co. (NYSE: JPM) is slated to report its fourth-quarter 2019 earnings results on Tuesday, January 14, before the market opens. The bottom line will be benefited by lower costs and expenses while the net interest income and non-interest income growth could be driving the top line.
The net interest margins are expected to remain under the pressure from the lower interest rates. Investors are likely to keep an eye on credit conditions, general economic trends and their impact on debt repayments, as well as loan growth prospects.
The company’s results continued to be impacted by the global and US economies, financial markets activity, the geopolitical environment, the competitive environment, client and customer activity levels, and regulatory and legislative developments in the US and other countries where the Firm does business.
Analysts expect the company’s earnings to jump by 17.70% to $2.33 per share and revenue will rise by 3.80% to $27.82 billion for the fourth quarter. The company has surprised investors by beating analysts’ expectations thrice in the past fourth quarter. The majority of the analysts recommended a “hold” rating with an average price target of $133.77.
For the third quarter, JPMorgan posted an 8% increase in earnings helped by higher revenue. Net interest income rose by 2% driven by continued balance sheet growth and mix. The results were driven by strong client activity across products. The results were offset by weakening business sentiment and capital expenditures are mostly driven by increasingly complex geopolitical risks, including tensions in global trade.
For fiscal 2019, the company expects net interest income, on a managed basis, to be less than $57.5 billion, market dependent. Adjusted expenses are anticipated to be about $65.5 billion and net charge-offs are predicted to be about $5.5 billion.