** Going into 2026 - J.P. Morgan expects focus to be on commercial and industrial (C&I) loan growth, benefits from AI and potential regulatory changes for large cap bank stocks
** J.P. Morgan expects Q4 earnings of large cap banks to be marked by 'moderate' net interest income and loan growth along with mixed y-o-y investment banking and trading revenues
** U.S. big banks, including Citigroup C.N, Wells Fargo WFC.N and Bank of America BAC.N, are set to report Q4 earnings next week
** "With strong stock performance in 2025, bank stocks could be choppy into 4Q earnings if outlooks are moderate, even if these are out of caution given high expectations" - JPM
** In 2026, markets-related revenues are expected to stay strong near term, with credit quality holding up despite inflation pressures and some private credit softness, says JPM
** Citi's Q4 earnings are likely to be 'very messy', while Wells Fargo continues to expand investment banking and trading - both being key revenue drivers, adds JPM
Following are JPM's PT revisions on large cap bank stocks:
Company | Previous PT | Current PT |
Bank of America | $58 | $61 |
Citigroup | $124 | $130 |
Citizens Financial | $58.50 | $62.50 |
PNC Financial | $213.50 | $228.50 |
Regions Financial | $27.50 | $29 |
Truist Financial | $47.50 | $51.50 |
$50 | $55.50 | |
Wells Fargo | $92 | $99 |
$18.50 | $20 | |
M&T Bank | $207.50 | $217 |
$19.50 | $22 |
(Reporting by Kanishka Ajmera in Bengaluru)
((mail to: Kanishka.Ajmera@thomsonreuters.com))