Finance

JPMorgan Chase (JPM) earnings Q1 2025

Published

2 months ago

April 11, 2025

Jamie Dimon, chief executive officer of JPMorgan Chase & Co., speaks during the 2025 National Retirement Summit in Washington, DC, US, on Wednesday, March 12, 2025.

Al Drago | Bloomberg | Getty Images

JPMorgan Chase is scheduled to report first-quarter earnings before the opening bell Friday.

Here’s what Wall Street expects, according to LSEG:

Earnings: $4.61 a share
Revenue: $44.11 billion

JPMorgan Chase will be the first major U.S. bank to report earnings for the most recent quarter in a time of rising economic uncertainty.

Investors will want to know how consumers, businesses and corporations are faring after President Donald Trump escalated global trade tensions starting April 2.

Jamie Dimon, the longtime JPMorgan leader, said Wednesday that he thought aggressive tariff policies would likely trigger a recession. Trump on Wednesday lowered his proposed tariff rates on most countries, except China, for an initial period of 90 days.

While bank executives are sure to focus on the quarter, which ended before Trump’s so-called “Liberation Day” announcement last week, bank stocks have swung wildly on recession fears, making backward-looking discussions less relevant.

The lack of certainty in the business environment for many companies was expected to cast a pall over some investment banking activities, including IPO listings and merger advice.

But it was also expected to provide a good environment for Wall Street trading desks to print money.

Wells Fargo and Morgan Stanley are also expected to report Friday, with Goldman Sachs, Bank of America and Citigroup coming next week.

This story is developing. Please check back for updates.

Finance

Stocks making the biggest moves midday: WOOF, TSLA, CRCL, LULU

Published

1 day ago

June 6, 2025

Business Finance News

Finance

Swiss government proposes tough new capital rules in major blow to UBS

Published

1 day ago

June 6, 2025

Business Finance News

A sign in German that reads “part of the UBS group” in Basel on May 5, 2025.

Fabrice Coffrini | AFP | Getty Images

The Swiss government on Friday proposed strict new capital rules that would require banking giant UBS to hold an additional $26 billion in core capital, following its 2023 takeover of stricken rival Credit Suisse.

The measures would also mean that UBS will need to fully capitalize its foreign units and carry out fewer share buybacks.

“The rise in the going-concern requirement needs to be met with up to USD 26 billion of CET1 capital, to allow the AT1 bond holdings to be reduced by around USD 8 billion,” the government said in a Friday statement, referring to UBS’ holding of Additional Tier 1 (AT1) bonds.

The Swiss National Bank said it supported the measures from the government as they will “significantly strengthen” UBS’ resilience.

“As well as reducing the likelihood of a large systemically important bank such as UBS getting into financial distress, this measure also increases a bank’s room for manoeuvre to stabilise itself in a crisis through its own efforts. This makes it less likely that UBS has to be bailed out by the government in the event of a crisis,” SNB said in a Friday statement.

‘Too big to fail’

UBS has been battling the specter of tighter capital rules since acquiring the country’s second-largest bank at a cut-price following years of strategic errors, mismanagement and scandals at Credit Suisse.

The shock demise of the banking giant also brought Swiss financial regulator FINMA under fire for its perceived scarce supervision of the bank and the ultimate timing of its intervention.

Swiss regulators argue that UBS must have stronger capital requirements to safeguard the national economy and financial system, given the bank’s balance topped $1.7 trillion in 2023, roughly double the projected Swiss economic output of last year. UBS insists it is not “too big to fail” and that the additional capital requirements — set to drain its cash liquidity — will impact the bank’s competitiveness.

At the heart of the standoff are pressing concerns over UBS’ ability to buffer any prospective losses at its foreign units, where it has, until now, had the duty to back 60% of capital with capital at the parent bank.

Higher capital requirements can whittle down a bank’s balance sheet and credit supply by bolstering a lender’s funding costs and choking off their willingness to lend — as well as waning their appetite for risk. For shareholders, of note will be the potential impact on discretionary funds available for distribution, including dividends, share buybacks and bonus payments.

“While winding down Credit Suisse’s legacy businesses should free up capital and reduce costs for UBS, much of these gains could be absorbed by stricter regulatory demands,” Johann Scholtz, senior equity analyst at Morningstar, said in a note preceding the FINMA announcement.

“Such measures may place UBS’s capital requirements well above those faced by rivals in the United States, putting pressure on returns and reducing prospects for narrowing its long-term valuation gap. Even its long-standing premium rating relative to the European banking sector has recently evaporated.”