Things to Watch for When Reporting JPMorgan Chase Earnings.

  Things to Watch for When Reporting JPMorgan Chase Earnings.  Although the Stock is performing well, investors will have to watch a number of factors in the third quarter to shape their future prospects. JPMorgan Chase (NYSE:JPM) kicks off its earnings season this week. The Bank, which came out of the pandemic process with great success, performed well afterward. JPMorgan stock hit highs this year, trading at a premium today. There are still some uncertainties in the earnings report, which will be announced tomorrow. The points to be considered in this report are as follows.

Net interest income guidance

(NII) Net interest income is the money banks earn from their loan and securities portfolios and is the primary income contribution for Banks. NII is known to customers as a byproduct of credit growth, interest rates, securities purchases and prepayment rates. During the pandemic period, loan growth is very difficult (interest rates are very low and prepayment rates of loans are high) thus putting pressure on NII. For these reasons, CEO Jamie Dimon is not interested in buying securities to increase NII in the near term. It will be interesting to hear if the bank has any NII guidelines for 2022.

Investment banking and sales and trading

Co-CEO Lake announced that the bank's revenue is expected to decline roughly 10% year-over-year and in the second quarter. But despite this decline, Lake added that markets are actually trending better than management thought a few months ago.

Things to Watch for When Reporting JPMorgan Chase Earnings.

  On the investment banking front, the news is more positive as M&A activity remains strong. Investors and analysts will continue to explore what a normalized operating rate might look like in the corporate and investment banking division in the future.

Acquisitions, fintech and growth

JPMorgan has made a number of acquisitions in a variety of different segments. In the first half of the year, it increased its asset and wealth management capabilities by acquiring several fintech companies such as 55ip and OpenInvest. Also Popular UK-based robo-advisory firm Nutmeg Savings and Investment Limited and Acquired 40% stake in C6, a digital bank in Brazil that has become a very attractive global banking market.  Announcing the acquisition of college financial planning firm Frank and food advice firm The Infatuation, It also acquired a majority stake in Volkswagen's payments business. The bank also increased its leadership in the US deposit market share. JPMorgan Chase continues to grow in many different ways, whether geographically, organically, or by growing different divisions in the bank, such as wealth and wealth management.  

Source: The Motley Fool

 

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