Investors on alert as JP Morgan kicks off earnings season
◆ British banks will be keeping a close eye on US rival JP Morgan today as it kicks off Wall Street’s earnings season,
Revenues in banks’ markets businesses are expected to rocket as a result of increased trading during the coronavirus crisis, while the boom in debt deals is forecast to offset the global plunge in M&A.
JP Morgan chief Jamie Dimon, the longest-serving banking boss on Wall Street, said when the firm reported its first-quarter results in April that it was bracing for a “fairly severe recession” as it put aside an extra $6.8bn (£5.4bn) for potential credit losses.
He said the company, which made a record $36.4bn last year, may have to axe its dividend if America was gripped by a deep recession. Cutting the dividend would be unprecedented given it did not even scrap payouts during the 2008 financial crisis.
UK banks, which begin reporting later this month, will be closely watching their US rivals.