A number of big United States banks are about to begin their Q4 2024 earnings season, including JPMorgan Chase, Citigroup, Wells Fargo, Goldman Sachs, Bank of America, and Morgan Stanley.
The sentiment around big banks is positive, and expectations are high. With U.S. President-elect Donald Trump's recent poll win, confidence in strong earnings growth has been further boosted.
Any deviation, however, could have significant market repercussions, so investors will be keen to see whether the banks can meet or exceed these high expectations.
Financials are expected to lead profit growth with 39.5% EPS growth. A 5.7% year-over-year increase in revenue is also anticipated.
This report will provide investors with insight into net interest income, loan growth, and credit performance. The broader economic outlook will be shaped by these factors.
The growth of loans has been tepid, but there are early signs that it might pick up, especially for commercial and industrial loans. As long as macroeconomic expectations remain strong, deposit costs should stabilise, and credit costs should remain manageable.
There may be some downward pressure on net interest income (NII), but this could be offset by loan growth in the long run. The asset management and wealth management fees, along with those from investment banking, are expected to continue to be strong.
Wells Fargo & Co.
Wells Fargo & Co. (NYSE: WFC) is set to report its Q4 2024 earnings on Wednesday, 15 January, at approximately 11 pm (AEDT). The results will be available online on the company's Investor Relations website.
Earnings Per Share (EPS): Analysts expect Wells Fargo to report EPS of $1.34, up from $0.86 in the year-ago period.
Revenue: Forecast revenue is $20.6 billion, compared to $20.48 billion a year earlier.
Wells Fargo & Co.'s stock price was US$72.86, with a market cap of approximately US$219 billion.
JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) will report its Q4 2024 earnings on Wednesday, 15 January, at 11 pm (AEDT).
Earnings Per Share (EPS): Zacks Equity Research analysts expect JPMorgan Chase to report EPS of $3.99, reflecting a year-over-year change of +0.5%.
Revenue: Forecasted revenue is $40.92 billion, up 6.1% from the year-ago quarter.
JPMorgan Chase's stock price was US$239.87, with a market cap of approximately US$346 billion.
Citigroup Inc.
Citigroup Inc. (NYSE: C) is set to report its Q4 2024 earnings on Wednesday, 15 January, at approximately 11 pm (AEDT).
Earnings Per Share (EPS): Analysts at Seaport Res Ptn have increased their FY2024 EPS estimate to $5.87.
Revenue Growth: The financials sector is anticipated to see revenue growth of 5.7% in Q4.
Sector Performance: The financials sector is expected to lead profit growth with 39.5% EPS growth for the quarter.
Citigroup Inc.'s stock price was US$71.40 (as of 10 January), with a market cap of approximately US$135.04 billion.
Goldman Sachs
Goldman Sachs (NYSE: GS) will report Q4 2024 earnings on Wednesday, 15 January. The earnings report will be released at 11:30 pm (AEDT). A conference call to discuss the results will follow on Thursday, 16 January at 1:30 am (AEDT).
Adjusted Earnings Per Share (EPS): $8.21
Quarterly revenue: $12.37 billion
Net income: $2.71 billion
Return on Equity: 9.98%, according to IG analysts.
Goldman Sachs' stock price was US$560, with a market cap of approximately US$113.45 billion.
Bank of America
Bank of America (NYSE: BAC) will report its Q4 2024 earnings on Thursday, 16 January. The results will be released at 11:45 pm (AEDT). Following the release, there will be an investor conference call at 2 pm (AEDT).
Revenue: Analysts expect Bank of America to report $24.95 billion revenue.
Net Income: The projected net income is $6.28 billion.
Net Interest Income: Expected to be $14.18 billion.
Bank Of America's stock price was US$45.06, with a market cap of approximately US$340 billion.
Morgan Stanley
Morgan Stanley (NYSE: MS) will report Q4 2024 earnings on Thursday, 16 January, at 11:30 pm (AEDT).
Consensus EPS Estimate: $1.70
Seaport Res Ptn Estimate: $1.70 EPS
HSBC Estimate: $1.70 EPS
JPMorgan Chase Estimate: $1.70 EPS
Barclays Estimate: $1.70 EPS
Wells Fargo Estimate: $1.70 EPS, according to analysts.
Morgan Stanley's stock price was US$123.41 (as of 10 January, 2025), with a market cap of approximately US$198.82 billion.
Capital One Bank
Capital One Bank (NYSE: COF) is set to report its Q4 2024 earnings on Tuesday, 21 January, at approximately 4:05 pm (AEDT). Following the release, the company will host a conference call to discuss financial and operating performance for the quarter ended December 31, 2024.
Earnings per share (EPS): Analysts expect Capital One to report EPS of $2.67 per share, up 19.2% from $2.24 per share in the year-ago quarter.
Full-Year Earnings: For the entire year, analysts expect Capital One’s EPS to reach $13.59, an 8.6% rise from $12.52 in fiscal 2023.
Credit Card Business: The acquisition of Discover Financial Services (DFS) is expected to significantly enhance Capital One's credit card operations.
Interest Rates: The falling interest rate environment has helped Capital One.
Consumer Credit Performance: Consistently stable consumer credit performance is a positive indicator.
Analysts have a "Moderate Buy" rating on COF stock, with an average price target of $187.47, indicating potential upside of 3.9% from its current levels.
Capital One Bank's stock price was US$187.47, with a market cap of approximately US$68.8 billion.
All stock prices and market caps accurate at time of writing.