uploads///JPM Sales

JPMorgan Chase’s Top-Line Growth Could Outperform Its Peers

By

Jan. 10 2019, Updated 11:35 a.m. ET

Analysts’ estimate

Analysts expect JPMorgan Chase (JPM) to maintain its growth momentum in the fourth quarter and post revenues of ~$27 billion, which implies ~6% growth YoY (year-over-year). Loan growth, a higher deposit margin, and increased non-interest income are expected to support the top-line growth.

In comparison, Citigroup’s (C) fourth-quarter revenues are expected to increase ~3% due to loan book expansion and higher deposit margins. An expected sequential slowdown in equity and fixed income market revenues could remain a drag. Bank of America’s (BAC) revenues are expected to increase 4.4% in the fourth quarter due to the higher net interest income from increased interest rates and deposit and loan growth. However, Wells Fargo’s (WFC) top line is projected to remain weak.

Article continues below advertisement

Growth drivers

JPMorgan Chase’s top line will likely benefit from the continued strength in its Consumer and Community Banking segment. The higher net interest income, higher deposits and card margins, and loan book expansion are expected to drive the bank’s revenues. During the last quarter, JPMorgan Chase reported 2% growth in average loans and 6% growth in core loans. The deposits grew 4%.

Weak market conditions are pressuring JPMorgan Chase’s Corporate and Investment Bank segment. However, the bank continues to outperform its peers in this segment. Higher equity underwriting fees and growth in Treasury and Securities Services revenues, led by higher rates and operating deposit growth, are driving the segment’s top line.

Advertisement

More From Market Realist

  • Honeywell sign
    Earnings Report
    CNBC Pro Stocks to Buy Before Q1 Earnings
  • Men walking by Morgan Stanley headquarters
    Financials
    Morgan Stanley’s (MS) Stock Forecast Before Q1 Earnings
  • Carnival cruise ship sailing
    Consumer
    Carnival's (CCL) Stock Forecast Before Q1 Business Update
  • GameStop store
    Consumer
    GME's Earnings Are Coming: Will It Be Mayday for Shorts or WallStreetBets?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.