JPMorgan Set To Impress

JPMorgan Chase (JPM Quote) is poised to follow Goldman Sachs (GS Quote) with its own better-than-expected second-quarter results early Thursday morning.

Investors are already aware of two significant hits JPMorgan will take in the second quarter. The company warned it will take a $1.1 billion, or 27-cents-a-share, charge for the repayment of $25 billion in government bailout funds, and analysts have estimated it will pay an assessment of $725 million, or roughly 12 cents a share, to the Federal Deposit Insurance Corp. Still, investors should be confident JPMorgan can reap benefits from the depths of the financial crisis.

Goldman was also able to profit significantly from the turbulent markets, posting a $3.44 billion, or $4.93 a share, profit on Tuesday. That is more than 6% higher than the highest analyst estimate polled by Thomson Reuters. The consensus analyst estimate was a profit of $3.54 a share.

JPMorgan Chase was the only one of the big four commercial banks that was able to pay back the $25 billion in TARP funds this quarter. Chairman and CEO Jamie Dimon has been adamant that the company never needed the funds and JPMorgan reportedly has been quarreling with the government regarding the repurchase price of warrants associated with the government's preferred stake.

As a result of the charges, consensus estimates for JPMorgan Chase fall at just 4 cents a share. Prior to the announcement of the charge for the TARP repayment, analysts expected the firm to make 37 cents a share.