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JPMorgan (JPM), Citigroup (C), and Wells Fargo (WFC) are scheduled to announce quarterly results on July 12. What to watch for:

BOFA SEES POTENTIAL FOR BOUNCE: In a preview for the big bank group, analysts at BofA noted that investors will be watching for signs that "the much-awaited bottoming" in net interest income, or NII, is in hand. A bottoming in net interest

income and credit quality remaining "well behaved" are both key to the firm's constructive thesis on the group that stable-to-rising EPS outlooks should drive a re-rating in stocks and could create potential for a bounce, the analyst told investors.

Management updates on target CET1 capital ratios and share buybacks will be a focus following higher capital requirements post the recent Fed stress test results, added the firm, which forecasts Citigroup buybacks of $1B per quarter for the second half of 2024, versus $0.5B per quarter in the first half. The firm sees a moderation in share buybacks at Wells Fargo to $6B in the second half of this year versus $12B in the first half, BofA added.

TARGETS RAISED: In the last week, Jefferies raised the firm's price target on JPMorgan to $239 from $230, while keeping a Buy rating on the shares. The firm has moved to forecasting five Fed cuts of 25 basis points through 2025. Jefferies believes bank net interest margins will benefit from fixed-rate asset repricing and roll-off of swaps/hedges for many, adding that softer loan growth and higher deposit costs are "the main results of higher-for-longer" in a preview note ahead of results from the bank group.

The firm also raised its price target on Wells Fargo to $64 from $62, while keeping a Hold rating on the shares.

Meanwhile, Evercore ISI raised the firm's price target on Citi to $62 from $60, keeping an In Line rating on the shares. The firm is adjusting estimates and targets for several brokers, banks and asset managers heading into earnings season after a "fine" Q2 in capital markets, contending that the "slow recovery" is "still in motion."

NOTABLE: Late last month, JPMorgan announced that its Board of Directors intends to increase the quarterly common stock dividend to $1.25 per share -- up from the current $1.15 per share -- for the third quarter of 2024. The firm's quarterly common stock dividends are subject to approval by the Board of Directors at the customary times that those dividends are declared. JPMorgan's Board of Directors has authorized a new common share repurchase program of $3B, effective July 1, 2024. The authorization to repurchase common shares will be used at management's discretion, and the timing of repurchases and the exact amount of common shares that may be repurchased under the new authorization will be subject to various considerations.

Citi also said that its planned capital actions include an increase of the quarterly common stock dividend from 53c to 56c per share, subject to quarterly approval by its Board of Directors, starting in the third quarter of 2024. Citi will continue to assess share repurchases on a quarter-to-quarter basis.

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