SYF - Banks' Q1 earnings start this week; expect strong capital markets reserve releases

Q1 kicks off this week with JPMorgan Chase (JPM), Goldman Sachs (GS) and Wells Fargo (WFC) reporting on Wednesday, April 14 followed by Citigroup (C), Bank of America (BAC), and U.S. Bancorp (USB) on Thursday, April 15. Morgan Stanley (MS) reports on Friday.Here's what some analysts are expecting:The brighter economic outlook combined with strong capital-markets revenue should lead to bigger credit reserve releases and faster growth in card-related fees in banks' Q1 earnings, says JPMorgan analyst Vivek Juneja.Part of the capital markets activity is driven by "extremely high SPAC volumes," which will boost investment banking fees, Juneja said. Specifically, he expects that Citigroup's fees will be up sharply.Also on the plus side, expect some share buybacks, Juneja added.On the negative side, declines in net interest income and net interest margins and shrinkage in loans should continue, he said; furthermore, banks will face seasonal increase in non-interest expenses.Deposits growth is expected to continue.BofA Securities analyst Erika Najarian

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Banks' Q1 earnings start this week; expect strong capital markets, reserve releases