Wall Street braces itself as US banking giants JP Morgan, Citigroup and Wells Fargo get ready to report first quarter results

Hayley Kirton
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JP Morgan is one of a trio of big US banks due to reveal results tomorrow (Source: Getty)

Wall Street will be eagerly watching the first batch of US banking results tomorrow to see if the Trump bump from the end of last year has continued into 2017.

Banking giants JP Morgan, Citigroup and Wells Fargo are all due to report earnings for their first quarter of the year tomorrow. Goldman Sachs and Morgan Stanley will both report in the following week.

According to an analysts' consensus compiled by Yahoo Finance, JP Morgan is forecast revenues of $24.9bn (£19.9bn) for the quarter, up 3.3 per cent compared with $24.1bn for the same quarter the year before, and earnings per share of $1.52, up compared with $1.35 the year before.

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Meanwhile, Citigroup is predicted revenues of $17.8bn, up 1.6 per cent compared with the prior year's $17.6bn, and earnings per share of $1.24, up compared with last year's $1.10.

Finally, Wells Fargo, which found itself embroiled in a wrongfully opened accounts scandal recently, is forecast revenues of $22.3bn, up 0.5 per cent from $22.2bn, and earnings per share of $0.97, down compared with $0.99 the year before.

For their fourth quarter of 2016, many banks pulled in bumper profits, after volatile markets following Donald Trump's surprise US Presidential election win helped to bolster trading in their fixed income divisions. Many on Wall Street will likely be scrutinising tomorrow's results with care to see if the trend has continued.

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A report released today by S&P forecast global investment banks will boost their revenues by 10 per cent year-on-year in the first quarter of 2017 and up five per cent for the full year.

The ratings agency also predicts the regulatory environment could soften in the near future, particularly given Trump's suggestions his administration will trim back Dodd-Frank, which will further support profit growth for lenders and payouts for their shareholders.

And, earlier this month, a report by Thomson Reuters predicted global investment banking fees would shoot up to $24bn in the first quarter of the year, the best start of the year since 2007.

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