Deposited (JPM Earnings)
JPMorgan Chase will report Q1 results tomorrow before the market opens, with a conference call at 8:30 a.m. ET.
The estimated Q1 EPS is $3.37, a 28% year-over-year growth, and revenue is expected to grow 16% to $35.77 billion.
JPM reported strong Q3 and Q4 results but weaker Q1 and Q2. The bank's outlook on the economy and consumer credit quality are important factors for investors.
According to JPM, 2022 was a remarkably favorable year for the company's credit environment in Wholesale, Card, and Consumer segments. Regarding the outlook for Card net charge-off rates in 2023, JPM restated its position, highlighting that the entry to delinquency rate, which was at 80% of pre-pandemic levels in Q4, is the primary indicator of future charge-offs. JPM anticipates the normalization of the entry to delinquency rate around mid-2023, followed by associated charge-offs six months later. Consequently, the loss rates in 2023 will continue to normalize. Although JPM anticipates ending 2023 around normalized levels, it estimates a Card net charge-off rate of roughly 2.6%, which is higher than the historically low 147 basis points in 2022 but still significantly below fully normalized levels.
TLDR
Q1 EPS expected to grow 28% to $3.37, revenue to grow 16% to $35.77 billion
Strong Q3 and Q4 results, weaker Q1 and Q2
Bank outlook on economy and consumer credit quality important for investors
Stock pulled back since early March, signaling cautious expectations
TECHS:
The stock has pulled back since early March, suggesting cautious expectations for the call.
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