Big Bank Earnings: What to Expect in Q2 Reports
Q2 bank earnings set to reveal how top U.S. lenders navigated market turbulence as results roll out Tuesday morning.
JPMorgan Chase, Wells Fargo, Citigroup, Bank of New York Mellon (BNY Mellon), and State Street are some of the companies that are reporting. Stronger sales and profitability over the same period last year are expected, and the results are eagerly awaited.
JPMorgan Chase: Highlighting Dimon
It is anticipated that JPMorgan Chase would report strong results. FactSet-tracked analysts anticipate:
- $4.48 in earnings per share
- $43.8 billion in revenue
- Income from net interest: $23.6 billion
During the results call, CEO Jamie Dimon plans to discuss consumer mood, interest rates, and the state of the economy.
Wells Fargo: Expansion Beyond Asset Value
Wells Fargo enters earnings season with new growth opportunities after regulators finally raised its asset cap following seven years. Among the expectations are:
- $1.41 in earnings per share
- $20.75 billion in revenue
- Income from net interest: $11.9 billion
The bank’s plans to grow its lending and operations will be of particular interest to investors.
Citigroup: Concentrate on Dealmaking and Trading
Citigroup’s success may serve as a highlight for corporate banking and trading. The forecasts include:
- $1.61 in profits per share
- Revenue of $20.96 billion
- Net interest revenue: $14.1 billion
Analysts will provide commentary on consumer behavior and global market factors.
State Street & BNY Mellon: Asset and Custody Management
Due to rumors of possible M&A activity, both custodial banks are being closely examined. The projections are:
Mellon, BNY:
- $1.75 in earnings per share
- $4.78 billion in revenue
State Street:
- $2.31 in earnings per share
- $3.35 billion in revenue
Their calls are likely to include inquiries about strategic expansion and consolidation.
Analyst Take: Valuations Look Stretched
Bank stocks have rebounded to early 2025 highs, prompting some analysts to caution about valuation risks. The Q2 results and forward guidance will help investors determine whether the current optimism is justified.
Source: Barrons
