Michael Hewson's weekly Preview for iFOREX traders 13th - 16th of April, 2026: From Netflix to higher provisions for non-performing loans

With consumers around the world having to deal with higher energy costs, which in turn look set to weigh on incomes investors will be looking to the onset of earnings season in the US for any signs of pressure on personal finances.

This could take the form of higher provisions for non-performing loans; however, the market volatility should also benefit those banks with sizeable investment management divisions, specifically FICC revenue.

On the retail side we also look at Netflix.

JPMorgan Chase Q1 26 – 14/04

Having pushed to record highs in the leadup to their Q4 and full year results at the start of January, JPMorgan shares have undergone a bit of a pullback since then, towards $280 a share. This weakness came in spite of another strong set of numbers, which saw the bank report a 7% increase in revenue of $46.8bn, and net income of $13bn. It appears that underperformance in its investment banking division may have been part of the reason for that with a 5% decline in revenue to $2.35bn, and which had been expected to post a positive % number. Guidance was also disappointing with the bank projecting a sizeable increase in expenses of $9bn to $105bn as it looks to integrate new AI technology, as well as the Apple car portfolio into its banking model. There was also concern over the effect that a cap on credit card fees might have on all Wall Street banks after the US government announced a one-year cap on credit card interest rates of 10%, from 20th January. While this hasn’t taken effect yet due to being stalled in Congress it remains an overhang, along with concerns over the economic outlook given the outbreak of hostilities in the Middle East.

Wells Fargo Q1 26 – 14/04

It hasn’t been a great quarter for Wells Fargo share price wise, although the declines also need to be put in the context of the performance of the shares since the 2025 Liberation Day lows. The weakness was exacerbated by a disappointing set of numbers, despite Q4 revenues coming in slightly ahead of expectations. Total revenue rose to $21.29bn, slightly below forecasts, while net income improved to $5.36bn. The removal of the asset cap by the Federal Reserve earlier in the fiscal year had raised expectations of a bigger improvement, perhaps a case of expectations getting ahead of expectations. By any stretch a 10% improvement in Wealth Management is a decent performance to $4.36bn, however the corporate and investment bank disappointed with revenue of $4.62bn, unchanged from last year. Forecasts for NII were also slightly light, coming in at $50bn.

Citigroup Q1 26 – 14/04

Citigroup shares have held up better than their peers over the last quarter, only marginally off their highs for the year, despite some disappointment in their Q4 numbers back in January. While revenue rose by 2% to $19.9bn, profits fell by 13% to $2.5bn, largely due to higher expenses and the impact of a $1.1bn hit on the sale of its Russia business. Expenses rose to $13.8bn during the quarter, a rise of 6%, with most of that driven by the bank’s corporate and investment bank. On the plus side the bank posted a lower-than-expected provision for credit losses of $2.2bn, a trend it shared with Bank of America who also posted lower than expected provision for credit losses of $1.3bn during Q4. BOA also beat expectations for Q4, posting a 12% increase in Q4 profit of $7.5bn. Citi also said that it expected to follow through on the 20k reduction of its work force over the next 3 years, as the implementation of AI reduces the need for headcount.     

Netflix Q1 26 – 16/04

Despite beating forecasts on their Q4 numbers back in January, Netflix shares found a bit of a base in February at $75, having slipped from record highs of $135.70 back in June last year. It would appear that Warner Bros Discovery’s decision to accept the higher offer from Paramount Skydance, this removing the overhang of the $5.8bn break clause, in the event of the deal falling through appears to have been the main catalyst for the rebound in the share price. That, and the fact Warner Bros also had to pay Netflix a $2.8bn as a result of its decision to go with the Paramount offer also helped in this regard. On the Q4 numbers themselves the revenues came in at over $12bn, helping to push full year revenues up to $45.2bn. Operating margins were also slightly better than forecast, coming in at 29.5% on an annual basis, and 24.5% for the quarter. Net income came in lower than last year, slowing to $2.4bn, or 56c a share. On the outlook Netflix was a little on the cautious side, with Q1 revenue expected to come in at $12.15bn, with the ad service seeing a decent increase in revenue to over $1.5bn, with the streaming giant stating it now had 325m subscribers. Operating margins for Q1 are expected to increase to 32.1% while profits are expected to increase to 76c a share or $3.26bn. The company also suspended its buyback, however with the WBD deal falling through there is the prospect that management might revisit that decision given the changed circumstances.