What to watch for in JPMorgan Chase's Q2 results
The US bank had record revenue in Q1, but its Q2 earnings could be impacted by passing a Federal Reserve stress test and depending more on digital banking.
![Chase building before JPMorgan Chase Q2 earnings](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/BG_JP_morgan_chase_bank_32423423.jpg/jcr:content/renditions/original-size.webp)
JPMorgan Chase's share price may be affected by these three circumstances when it releases its Q2 earnings report July 16.
Analysts expect JPMorgan Chase’s Q2 revenue to increase
Analysts expect JPMorgan Chase’s Q2 revenue to top $29 billion, with 2.1% year-over-year growth. JPMorgan Chase already had a record Q1 results report with $29.9 billion in revenue. Financial experts also expect JPMorgan Chase’s Q2 earnings per share to grow 9.6% to $2.51.
Appealing to millennials could help JPMorgan Chase's Q2 earnings
JPMorgan Chase’s chief executive officer (CEO), Jamie Dimon, noted that many millennial customers are using the corporation’s Sapphire Card. Credit card sales volume rose by 10%.
‘We're gaining share in millennials every day,’ said Dimon.
Dimon noted that digital banking helps attracts customers in their 20’s that use the bank’s mobile app.
‘I mean we have a million people a day visit branches so millennials are doing it [visiting bank locations] less. We've got 50 million people on digital’, said Dimon.
JPMorgan Chase is also likely trying to attract young bank customers with its own bitcoin launch at the end of the year. The attempts to reach millennial clients could improve JPMorgan Chase’s Q2 revenue.
Practise trading JPMorgan Chase stock with an IG demo account
Low interest rates may impact JPMorgan Chase's Q2 profits
Because the US Federal Reserve kept interest rates unchanged, large US banks like JPMorgan Chase could be under pressure around earnings season because low interest rates often mean less profit for banks, according to Short Hills Capital Partners’ Steve Weiss.
‘I just think it’s very tough given where [interest] rates are and where the [yield] curve is for them to make money,’ said Weiss.
Despite interest rates stagnating, JPMorgan Chase’s stock increased as the corporation passed Fed stress tests to determine if the bank has enough capital to withstand a financial crisis.
Investors will see if appealing to younger customers and passing Fed stress tests will help JPMorgan Chase’s Q2 earnings.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/Shares-global-component-banner.jpg/jcr:content/renditions/original-size.webp)
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.