JPMorgan under pressure more from earnings than credit card fee cap, says UBS' Erika Najarian

Summary

UBS analyst Erika Najarian discusses bank earnings on CNBC's Power Lunch, arguing JPMorgan's pressure is more about a high earnings bar and temporary investment-banking timing than the credit card fee cap. She names Capital One as a top pick because its Discover acquisition gives it a credit-card network that is more defensive against policy risk. She also expects investment-banking revenue delays to be temporary and still sees a 2026 capital-markets boom supporting banks.

• JPMorgan's weakness is attributed more to high expectations and delayed investment-banking revenue than the credit card fee cap.
• The delayed investment-banking fees are expected to shift into the first quarter rather than disappear.
• Capital One is highlighted as a top pick with a key advantage from owning a credit-card network after Discover.
• The Credit Card Competition Act remains a policy risk for card networks and payment companies.
• The consumer is described as okay near term, with potential stimulus supporting credit-card growth.
• Citigroup, Wells Fargo, and Bank of America face a lower bar after JPMorgan's results, but no clear directional call is made.
• Najarian still expects a capital-markets boom in 2026 that supports the bank sector.