JPMorgan (JPM), Citi (C) Still Profitable as Key Segment Ebbs
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JPMorgan (NYSE: JPM) and Citigroup (NYSE: C) are in quite a pickle.
Following reports that Bank of America's (NYSE: BAC) trading revenues are expected to be lower, both JPMorgan and Citi are now facing pressure to prove that U.S. banks can continue to thrive post-financial meltdown, as the economy continues to clunk along without too much good news pushing it higher.
Reporting tomorrow, JPMorgan should see a 0.8 percent drop in revs for its second-quarter, to $24.9 billion, according to Bloomberg data. Further, Citi, which reports on Friday, should see a massive 10 percent decline in revs, to $19.9 billion (though more than half of the loss will be attributed to assets marked for sale).
Amid the decline in revs, JPMorgan is expected to report a 6.2 percent increase in profits, while Citi's profit should jump 14 percent. JPMorgan's earnings should be about $1.21 per share, up 11 percent from last year, while Citi should produce 97 cents per share, up significantly from the 9 cents per share of earnings reported last year.
Overall, trading revs should drop 4.4 percent to $21.7 billion for the five largest Wall Street banks, which include Citi, JPMorgan, Bank of America, Goldman Sachs (NYSE: GS), and Morgan Stanley (NYSE: MS). Last year, trading revs accounted for an aggregate 25 percent of the five firms' revs for the second-quarter last year.
Citi is up 0.8 percent early Wednesday, while JPMorgan is 0.9 percent stronger.
Following reports that Bank of America's (NYSE: BAC) trading revenues are expected to be lower, both JPMorgan and Citi are now facing pressure to prove that U.S. banks can continue to thrive post-financial meltdown, as the economy continues to clunk along without too much good news pushing it higher.
Reporting tomorrow, JPMorgan should see a 0.8 percent drop in revs for its second-quarter, to $24.9 billion, according to Bloomberg data. Further, Citi, which reports on Friday, should see a massive 10 percent decline in revs, to $19.9 billion (though more than half of the loss will be attributed to assets marked for sale).
Amid the decline in revs, JPMorgan is expected to report a 6.2 percent increase in profits, while Citi's profit should jump 14 percent. JPMorgan's earnings should be about $1.21 per share, up 11 percent from last year, while Citi should produce 97 cents per share, up significantly from the 9 cents per share of earnings reported last year.
Overall, trading revs should drop 4.4 percent to $21.7 billion for the five largest Wall Street banks, which include Citi, JPMorgan, Bank of America, Goldman Sachs (NYSE: GS), and Morgan Stanley (NYSE: MS). Last year, trading revs accounted for an aggregate 25 percent of the five firms' revs for the second-quarter last year.
Citi is up 0.8 percent early Wednesday, while JPMorgan is 0.9 percent stronger.
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