JPMorgan Chase Braces for 'Noisy' Quarter

"Worsening economic trends should put additional pressure on JPMorgan Chase's loan portfolios," particularly the bank's credit card portfolio, home equity and residential and commercial mortgages, and the banking industry in general, Mayo writes.

CNBC reported on Monday that JPMorgan Chase may post a loss in the fourth quarter. CEO Jamie Dimon is also expected to say that he will not take a bonus for 2008, the news outlet said.

Dimon foreshadowed the expected difficult quarter in mid-December interview on CNBC, in which he said the company is prepared for another difficult year.

"We took a lot of risk with Bear Stearns and WaMu," he said. "If home prices go down 25% it could cost us another $10 billion to $20 billion in WaMu. So we're not sitting here declaring a victory."

Dimon said home price depreciation is "causing a lot of problems" for homeowners and lenders. "So you know, stopping prices going down will be a very big fix to this whole problem and low mortgage rates [are] very beneficial for that," he said.

Still, given the Treasury's $25 billion capital injection into JPMorgan Chase, Dimon said the bank is lending in most areas, such as large corporate loans and other commercial loans to municipalities and hospitals. On the consumer side, credit card loans and student loans are also up, but other areas, such as auto loans, were tightened up, he said.

Nancy Bush, an independent analyst at NAB Research in Annandale, N.J., has a more optimistic view of the firm. She estimates 22 cents a share for JPMorgan Chase's operating earnings, which excludes one-time items.