Brace yourself, Wall Street: These major banks have quarterly earnings out this week
Wall Street investors are unlikely to have that Friday feeling this week, as several big banks are set to release results and the outlook is less upbeat than it could be.
Wells Fargo, JP Morgan and Citigroup are all due to reveal earnings for their third quarter on Friday.
Tim Ghriskey, chief investment officer at Solaris Asset Management, New York, told Morning Wire the big US banks were currently still battling squeezed net interest margins, but added that loan growth, strength in the mortgage market and generally good capital markets may help to offset some of this.
Wells Fargo has found itself in hot water recently, after it came to light that 2m products had been opened by the lender without customers' knowledge.
Read more: Goldman Sachs to move 2,000 jobs out of London if UK pursues "hard Brexit"
Meanwhile, analyst predictions, as compiled by Yahoo Finance, for JP Morgan are for earnings per share of $1.39, down from $1.68 a year ago. The analysts' poll also forecast revenues of $23.9bn (£19.5bn) for the period, up 1.7 per cent compared with $23.5bn last year.
Ghriskey added the bank has "had a nice string of earnings reports and we probably expect that to continue". In particular, he noted the Chase Sapphire card had helped to drum up business.
Rounding out the trio, earnings per share for Citigroup are forecast at $1.16, down from $1.35 a year ago, while revenues are predicted to drop six per cent to $17.4bn, down from $18.5bn.
This round of earnings will be the second set since the UK voted to leave the EU.
Read more: Getting a bad financial services Brexit deal will hit more than just London
"In the results, we're probably not going to see a lot of impact [of Brexit]," said Ghriskey. "In the commentary, we would expect the banks with big UK exposure, and big EU exposure in general, to certainly comment on it and I think the problem with Brexit is it's just such an unknown."