JPMorgan (JPM) outcomes Q1 2021

Jamie Dimon, CEO of JPMorgan Chase, speaks at the 2019 Building Trades Unions (NABTU) Legislative Conference in Washington on April 9, 2019 in Washington.

Jeenah Moon | Reuters

JPMorgan Chase is expected to release its first quarter results before the opening bell on Wednesday.

Here’s what Wall Street expects:

Merits: $ 3.10 per share, almost 300% more than a year earlier, according to Refinitiv.
Revenue: $ 30.52 billion, up 5% from a year earlier.
Net interest margin: 1.79% according to the FactSet
Trading Income: Fixed income $ 4.97 billion, stocks $ 2.31 billion

JPMorgan Chase, the first major bank to report earnings for the first quarter, is being watched closely for clues as to how the industry will evolve out of the coronavirus pandemic.

An important question is whether banks will continue to release – and how much – reserves for credit losses that will no longer be needed as the US economy picks up pace. In the fourth quarter, JPMorgan exceeded expectations in part by releasing reserves of $ 2.9 billion.

JPMorgan, with the world’s highest-grossing division on Wall Street, is also expected to benefit from solid investment banking fees, driven by record spending from SPACs, the blank check companies that saw more activity in the first quarter than in all of 2020 itself a record year. Retail sales should also be a tailwind in the quarter.

Analysts will also be excited to see how quickly stocks are expected from the bank. Last month, the Federal Reserve announced that banks that pass the industry’s 2021 stress test will be allowed to resume higher dividend payouts and buybacks from June 30th.

JPMorgan’s shares are up 21% so far this year, compared to the KBW Bank Index’s 25% increase.

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