Major U.S. Banks to Report Modest Growth in Earnings

by MarketNewsData

A wave of major U.S. banks will report earnings next week (starting July 15), offering a window into the health of the financial sector amid sticky inflation, higher-for-longer rates, and market volatility. Here’s what to expect.

🗓️ Key Reporting Dates

  • Tuesday, July 15: JPMorgan (JPM), Citigroup (C), Wells Fargo (WFC)
  • Wednesday, July 16: Bank of America (BAC), Goldman Sachs (GS), Morgan Stanley (MS)

📊 EPS Expectations YoY

Morgan Stanley (MS): ~10.4% EPS growth

JPMorgan (JPM): ~1.6% EPS growth vs. Q2 2024

Bank of America (BAC): ~4.8% EPS growth

Citigroup (C): ~7.2% EPS growth

Wells Fargo (WFC): ~5.3% EPS growth

Goldman Sachs (GS): ~12.3% EPS growth

Themes to Watch

  • Net Interest Income (NII): Slight gains expected, especially from consumer-facing banks like BAC and JPM, though margins may be pressured if rate hikes pause.
  • Trading & Investment Banking: Goldman and Morgan Stanley are forecast to deliver the strongest YoY growth, fueled by improved capital markets activity and deal-making.
  • Credit Quality: Investors will look for signs of rising delinquencies or charge-offs amid softening consumer trends.
  • Capital Returns: Following Fed stress test clearance, look for updates on buybacks and dividend plans.
  • Expense Discipline: Cost control will remain a theme, particularly for Wells Fargo and Citigroup, which are undergoing operational streamlining.

⚠️ Market Context

Bank stocks have rallied in recent months, and expectations are elevated. That means even in-line results may not be enough to fuel a rally unless banks show margin expansion or stronger-than-expected loan growth.

This is an AI-assisted analysis for informational purposes only. Not a recommendation to buy or sell securities.

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