J.P. Morgan Chase & Co., one of the largest bank by assets, is expected to report a 1percent increase in quarterly profit on Friday thanks to strength in investment banking that is seen making up for pressure on net interest margins, slower loan growth and a sluggish economic environment.
The bank is expected to post quarterly profit of $5.41 billion or $1.40 per share, compared with $5.4 billion in profit or $1.31 per share in the year-earlier period. The company is expected to report revenue of $25.7 billion, compared with $27.42 billion in the first quarter of 2012.
“Consistency and execution has been their strength this quarter,” said Moshe Orenbuch, analyst at Credit Suisse. Net interest income is expected to come in at $11.17 billion, according to analysts surveyed by FactSet. The firm has exceeded analyst expectations 11 quarters out of the last 12 quarters.
J.P. Morgan , like other large commercial and Wall Street banks, has been buffeted by the aftermath of the 2008 — 2009 financial crisis and the resulting housing slump and stock market declines. But analysts said J.P. Morgan’s earnings would be positive.
“We see the greatest source of potential earnings upside driven by higher loan growth and capital markets,” said Jason Goldberg, analyst at Barclays. J.P. Morgan’s report kicks-off a busy two weeks of bank earnings.