JPMorgan, Citi Prepare for Fed’s Higher-For-Longer Approach: US Earnings Week Ahead
This article is for subscribers only.
JPMorgan Chase & Co. is expected to have outperformed Citigroup Inc. and Wells Fargo & Co. in profitability when the three banks report quarterly earnings this week, though all lenders face challenges from a slow economy and high interest rates.
JPMorgan and its peers are seen bolstering loan-loss provisions further amid the lingering possibility that the US could slip into recession as early as this year. A “blowout” jobs report last week raised the likelihood the Federal Reserve will hike interest rates again, further constraining net interest income growth and highlighting the need to lower business costs.