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JPMorgan Earnings: 2 Key Items

JPMorgan Chase (NYSE:JPM) is set to report quarterly earnings after-hours on Tuesday. Analysts are expecting revenue of $23.69 billion and EPS of $1.38. The revenue estimate is flat compared to the $23.81 reported in Q2. The following are two key items investors should focus on:

Provision For Credit Losses

Despite the flat revenue estimate, it is no guarantee that JPMorgan's profits will not decline. The bank avoided the folly of betting its own capital that hurt competitors like Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) leading up to the financial crisis of 2008/2009. However, the new headwinds facing JPMorgan is its exposure to energy loans.

The U.S. energy boom has been one of the biggest creators of U.S. jobs since the crisis. Now that oil prices are 60% off their Q2 2014 peak, the boom may have come to an end. In Q2 2015 JPMorgan's net income was up 5% Y/Y. Partly due to...