Citi, Goldman Sachs, JPMorgan: Key Players in Wednesday's Market

As we approach Wednesday, investors are keeping a close eye on the earnings reports of three major financial institutions: Citigroup (C), Goldman Sachs (GS), and JPMorgan Chase (JPM). These banks are expected to provide valuable insights into the overall health of the banking sector and the broader economy. Let's dive into the key aspects of their earnings reports and what they mean for the market.



Citigroup (C)

Citigroup reported third-quarter earnings on October 15, 2024, with net income of $3.2 billion, or $1.51 per diluted share, on revenues of $20.3 billion. The bank's revenue increased 1% from the prior-year period, driven by growth across all businesses, partially offset by a decline in All Other. Net income decreased from $3.5 billion in the prior-year period, primarily due to higher cost of credit, partially offset by higher revenues and lower expenses.

Citigroup's CEO, Jane Fraser, highlighted the bank's positive operating leverage for each of its businesses, share gains, and fee growth. The bank also announced a $2.1 billion return to shareholders in the form of common dividends and share repurchases, with a payout ratio of 71%.

Goldman Sachs (GS)

Goldman Sachs reported net revenues of $12.70 billion and net earnings of $2.99 billion for the third quarter ended September 30, 2024. Diluted earnings per common share (EPS) were $8.40, and annualized return on average common shareholders' equity (ROE) was 10.4%. The bank's performance demonstrates the strength of its world-class franchise in an improving operating environment.

Goldman Sachs' revenue growth was fueled by investment banking and trading fees, with investment banking revenue surging 29% in the fourth quarter, driven by rising advisory and equity capital markets activity. The bank's asset and wealth management division is also expected to contribute to its growth, as CEO David Solomon has called it the growth engine of the firm.



JPMorgan Chase (JPM)

JPMorgan Chase is scheduled to report fourth-quarter earnings before the opening bell on Wednesday, January 15, 2025. Analysts surveyed by LSEG expect earnings per share of $8.22 and revenue of $12.39 billion. The bank's net interest income is expected to decline to $22.93 billion from $24.05 billion a year ago, as the bank feels the impact of high deposit costs for another quarter before lower interest rates help bring deposit costs down.

JPMorgan's results will be closely watched for signs that industry optimism is warranted, as the bank stands to benefit from a more favorable regulatory environment under the Trump administration. The bank's investment banking and trading fees are expected to rise by double-digit percentages, with fixed income trading revenue projected to reach $2.45 billion and equities trading revenue expected to reach $3 billion.



In conclusion, the earnings reports of Citi, Goldman Sachs, and JPMorgan provide valuable insights into the overall health of the banking sector and the broader economy. As investors await their earnings releases, they can expect to gain a better understanding of the market's trajectory and the potential impact on their portfolios. By staying informed and keeping a close eye on these key players, investors can make more informed decisions and capitalize on the market's opportunities.