JPMorgan Chase & Co and Citigroup, which report earnings this week, are under pressure to show that banks can increase revenue as the US economic recovery sputters.
JPMorgan, which kicks off earnings season tomorrow, may say second-quarter revenue declined 0.8 per cent to $24.9 billion, according to an average estimates of analysts. Revenue at Citigroup, which reports results a day later, may fall 10 per cent to $19.9 billion, with more than half of the decline tied to assets the company has tagged for sale.
“The street is going to be looking at revenue growth” that will be difficult for banks to produce in the current economic environment, Paul Miller, an analyst with FBR Capital Markets said.
