Thursday, May 19 2022

Jamie Dimon, President and CEO of JPMorgan Chase & Co, at a luncheon hosted by the Economic Club of Chicago on November 22, 2017 in Chicago, Illinois.

Scott Olson | Getty Images News | Getty Images

JPMorgan Chase is expected to release its second quarter results before the opening bell Tuesday.

Here’s what Wall Street is waiting for:

Profit: $ 3.21 per share, up 132% from a year earlier, according to Refinitiv.

Revenue: $ 29.9 billion, 11% less than a year earlier.

Trading income: Fixed income $ 4.16 billion, stocks $ 2.31 billion, according to FactSet.

Investment banking income: $ 3.1 billion.

JPMorgan Chase, the first major lender to release second quarter results, will be closely watched for clues as to how banks are navigating the US economic reopening.

A key factor is that after the industry set aside tens of billions of dollars for loan losses last year, banks released reserves because borrowers resisted better than expected.

There was a wide range of expectations for second quarter credit loss provisions at JPMorgan; Analysts polled by FactSet were expecting a release of up to $ 967 million for a provision of up to $ 2.6 billion. The bank released $ 5.2 billion in reserves in the first quarter.

Trading income is expected to decline from the period a year earlier, which saw frantic activity following Federal Reserve actions to support markets at the start of the coronavirus pandemic.

JPMorgan CEO Jamie Dimon said last month that while trading revenues would decline from the previous year, the investment bank’s revenue was heading for a 20% increase due to the force of merger fees, he said.

Analysts could ask Dimon about the bank’s succession planning after appointing two senior executives, Marianne Lake and Jennifer Piepszak, to lead the company’s sprawling consumer bank. The changes led to the promotion of Head of Global Research Jeremy Barnum to CFO succeeding Piepszak; this is Barnum’s first quarter for the company’s earnings release.

Dimon could also be asked about his acquisition strategy after making the third purchase of a fintech start-up since December. Last month the bank agreed to buy the ESG investment platform OpenInvest, CNBC first reported.

JPMorgan shares have climbed 24% so far this year, beating the 17% rise in the S&P 500 index.

This story is developing. Please check for updates.

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