JP Morgan, Citi Report Third-Quarter Earnings – Wall Street Journal

Citigroup is scheduled to report third-quarter results in a little bit. Here’s what you should keep an eye on.

Expected Earnings Gains: Analysts expect a solid third quarter from the big global bank, with revenue forecast to inch forward 0.8% to $17.896 billion from a year ago, while earnings-per-share are forecast to jump 6%, from $1.24 to $1.32.

Living Up to the Hype? This will be the bank’s first quarterly report after its much-anticipated July “Investor Day,” when CEO Michael Corbat and his top lieutenants laid out the bank’s strategy. The stock has been on a roll since, up 14%, thanks to the announcement of a $60 billion capital return plan.

Bill Comes Due: A major theme at the investor meeting was better returns for Citigroup’s card unit. The bank has long suggested that a series of investments, such as taking on Costco Wholesale Corp.’s cards, will finally start to pay off in the second half of this year. Consumer credit delinquency rates will be in the spotlight as well.

Rates Trade: Citigroup has enjoyed a string of better-than-peer performance in its fixed-income trading unit, in part thanks to its big rates desk, where big companies go to hedge. Though the bank predicted a 15% drop in trading revenue, the Fed’s September moves may have delivered a late-quarter boost.

Merger Momentum: Investment-banking revenue was at its highest in seven years in the second quarter, boosted by big deal advisory roles. Citigroup is now fourth in Dealogic’s global M&A league table for 2017–a drop-off from earlier this year, but still better than its sixth-place ranking by this point in 2016.

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