The banking industry's third-quarter earnings season begins this week. Among the highlights:
* JPMorgan Chase & Co. and Citigroup Inc. are set to report results Thursday, Oct. 12, and analysts expect both to report higher earnings year over year.
JPMorgan reported earnings per share of $1.58 in the third quarter of 2016, and the S&P Capital IQ consensus estimate for normalized EPS in the third quarter of 2017 is $1.65.
JPMorgan — which saw a 4.5% increase in market capitalization between June 30 and Sept. 30, to $336.10 billion — is expected to report a 20% drop in third-quarter trading revenue on a year-over-year basis.
Citi, meanwhile, reported EPS in the 2016 third quarter of $1.24, and the consensus EPS estimate for the 2017 third quarter is $1.31. The company estimates that its third-quarter trading revenue would drop 15% year over year.
* Bank of America Corp. and Wells Fargo & Co. are also slated to report their earnings results before markets open Friday, Oct. 13.
Analysts expect BofA to report a year-over-year increase in earnings. The Charlotte, N.C.-based company reported third-quarter 2016 EPS of 41 cents, and the consensus EPS estimate for the third quarter of 2017 is 46 cents.
Like Citi, BofA projects a 15% year-over-year decline in its third-quarter trading revenue year over year. The company saw its market cap increase by 11.6% between June 30 and Sept. 30, to $267.35 billion.
Meanwhile, analysts expect Wells Fargo's bottomline to be flat, year over year, at $1.03 per share.