JP Morgan Chase, Citigroup and Wells Fargo are expected to report lacklustre second quarter earnings figures today, followed early next week by three more US banks.
Mike van Dulken, head of research at Accendo Markets, noted that JP Morgan, Citi and Wells Fargo shares have been “rallying in recent weeks on expectations of big dividends/ buybacks following Fed approval”.
Last month, the major US banks performed well in their annual stress tests, with the Federal Reserve approving plans for them to distribute cash to shareholders.
But van Dulken said that Wall Street is expecting a “mixed showing”. The results come amid pressure on trading from low market volatility, limited M&A and IPO activity, and slower lending volumes.
He added: “Are Fed hikes helping net interest margins and profitability? Outlook will likely be key.”
Elsewhere, giving a flavour of what to expect at the end of May, JP Morgan finance chief Marianne Lake told investors: “As a sweeping generalisation, low rates, a more cautious outlook on rates, and low volatility have led to low client flows and a generally quiet, subdued and challenging trading environment.”
Here, from Yahoo Finance consensus figures, is what analysts are expecting from different banks.
Analysts are expecting JP Morgan to report earnings per share of $1.58, up marginally from $1.55 in the same period last year, before the bell today.
Meanwhile, revenues for the quarter are expected to be reported at $24.96bn, down one per cent from $25.21bn the year before.
Latest news from JP Morgan: Jamie Dimon: EU could force us to move thousands more UK jobs
The consensus from analysts on Citigroup is for earnings per share of $1.21, down from $1.24 in the second quarter of last year.
Citigroup’s turnover is also expected to be down one per cent, from $17.55bn to $17.37bn, when it reports pre-market today.
Latest news from Citigroup: London Stock Exchange buys Citi bond divisions for $685m
Completing the trio of banks reporting before the open today, Wells Fargo’s earnings are expected to be flat at $1.01 per share.
Revenues, meanwhile, are forecast to be up 1.4 per cent, from $22.16bn last year to $22.47bn.
Latest news from Wells Fargo: Equiniti Group buys up Wells Fargo's share registration business for $227m
Wall Street giant Goldman Sachs will reveal its second quarter figures before the open next Tuesday, 18 July.
Analysts are expecting earnings per share of $3.40, down from $3.72 when it reported this time last year.
Revenues, meanwhile, are forecast to be down five per cent, from $7.93bn to $7.52bn.
The latest news from Goldman: Act casual: This investment bank's changed its dress code to be more tech
Also reporting pre-market next Tuesday, Bank of America is expected to report earnings of $0.43 per share, up slightly from $0.41, according to Yahoo’s analysts consensus.
Revenue is forecast at $21.8bn, up 4.9 per cent from $20.79bn.
Latest news from Bank of America: UK-US M&A relationship is "unbreakable", says top American bank dealmaker
Completing the big six US bank reporting before the open next Wednesday, analysts are anticipating Morgan Stanley’s earnings of $0.76 per cent, up a cent from $0.75 at the same point last year.
Revenues, meanwhile, are forecast to be up 2.1 per cent, from $8.91bn to $9.09bn.
Latest news from Morgan Stanley: Oh, Darling! Email prankster snares Morgan Stanley boss