JPM stock was trading at $105.87 as of 12:00 PM EDT

According to a recent press release, the Federal Reserve Board’s pilot program on climate change will begin in early 2023, and participants include Bank of America (NYSE:BAC), Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), JPMorgan Chase (NYSE:JPM), Morgan Stanley (NYSE:MS), and Wells Fargo (NYSE:WFC).

As part of the Fed’s attempts to gauge the extent of financial risks associated with climate change, the megabanks will evaluate the effects of climate-related scenarios on specific portfolios and business strategies throughout the pilot, which is anticipated to expire around the end of 2023. Following that, the Fed “will engage with those firms to enhance capacity to handle climate-related financial risks,” it stated after reviewing the findings.

JPM Stock Up; Looks To Increase The Number Of Employees At A U.K. Retail Bank

According to the Fed, the pilot program would be “exploratory in nature and has no capital ramifications.” The central bank will release its findings at the start of the exercise after establishing a Supervision Climate Committee in May to investigate climate risks to the financial system.

The Fed emphasized that the activity is distinct from its bank stress tests, which aim to ascertain whether large banks have sufficient capital to continue lending in the case of a severe downturn. The most recent test, conducted in June, revealed that JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), and Citigroup (NYSE:C) might need to increase their internal target ratios and postpone stock buybacks in order to raise their Common Equity Tier 1 ratios.

The action was taken in response to the European Central Bank’s July discovery that the majority of eurobanks had failed to account for climate risk in their credit models. Three years have passed since JPMorgan Chase began opening retail branches in North Carolina’s capital cities of Raleigh, Durham, and Chapel Hill. Although small, its market share is increasing. CEO Jamie Dimon seems to think that’s adequate.

JPM stock Analysis

When JPMorgan Chase & Co. releases its next earnings report, which is anticipated to be on October 14, 2022, it will be aiming to project strength. EPS of $2.97 are anticipated, a decline of 20.59% from the same period last year. According to our most recent average estimate, quarterly revenue will total $32.14 billion, an 8.4% increase over the same period last year.

The Zacks Consensus Estimates for JPM’s full-year project is $11.34 in profits per share and $126.82 billion in revenue. These outcomes would signify -26.17% and +4.25% changes from the previous year, respectively.

Featured Image – Unsplash © Taylor Simpson

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