JPMorgan Chase shares pop 5% after topping estimates on better-than-expected interest income

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CEO of Chase Jamie Dimon looks on as he attends the seventh “Choose France Summit”, aiming to attract foreign investors to the country, at the Chateau de Versailles, outside Paris, on May 13, 2024.

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JPMorgan Chase is scheduled to report third-quarter earnings before the opening bell Friday.

Here’s what Wall Street expects:

Earnings: $4.01 a share, according to LSEG
Revenue: $41.63 billion, according to LSEG
Net interest income: $22.73 billion, according to StreetAccount
Trading Revenue: Fixed income of $4.38 billion, Equities of $2.41 billion, according to StreetAccount

JPMorgan will be watched closely for clues on how banks are faring at the start of the Federal Reserve’s easing cycle.

The biggest American bank has thrived in a rising rate environment, posting record net income figures since the Fed started hiking rates in 2022.

Now, with the Fed cutting rates, there are questions as to how JPMorgan will navigate the change. Like other big banks, it’s margins may be squeezed as yields on interest-generating assets like loans fall faster than its funding costs.

Last month, JPMorgan dialed back expectations for 2025 net interest income and expenses, and analysts will want more details on those projections.

Analysts will also want to hear JPMorgan CEO Jamie Dimon’s thoughts about the upcoming U.S. election and the industry’s efforts to push back against an array of regulatory moves to rein in fees and force banks to hold more capital.

Shares of JPMorgan have jumped 25% this year, exceeding the 20% gain of the KBW Bank Index.

Wells Fargo is scheduled to release results later Friday, while Bank of America, Goldman Sachs, Citigroup and Morgan Stanley report next week.