A number of big banks reported Friday morning including JPMorgan Chase (JPM), Citigroup (C), Bank of America (BAC), and Wells Fargo (WFC). So what could their results reveal about earnings from Goldman Sachs and Morgan Stanley, both of which report on Tuesday January 16.

CFRA Research Director of Equity Research Ken Leon joins Yahoo Finance Live to weigh in on the reports—and what to expect from other banks that are expected to report in the coming days. Leon states notes there is an “enormous backlog” for investment banking and expects Goldman Sachs (GS) and Morgan Stanley (MS) to benefit from that, while he expects the asset and wealth management businesses "to shine."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Eyek Ntekim

Video Transcript

- OK, and then taking into account the numbers that were getting out this morning, looking ahead to the results that we'll get next week with Morgan Stanley, with Goldman Sachs, what do you think today's results, how does that set us up for the results that we will get on Tuesday and Wednesday of next week?

KEN LEON: They're actually going to be moving more positively but not V shape in the first quarter, if you will, or first half. Investment banking, there is enormous backlog particularly from private equity firms that want to monetize their investments in their funds, either for M&A or underwriting. So Goldman and Morgan Stanley are going to benefit from that.

The durable business of asset and wealth management are really going to shine next week. And I think the investment banking story will be, again, that we hit the trough of the cycle last year. We will see improvement this year. And so long as there's no other unexpected event or dark swan, that will be a pretty good picture. Where there's a worry, of course, is more regulation, tighter regulation on capital requirements, which is top of mind for investors.

- Ken Leon, CFRA Research Director of Equity Research. Ken, thanks so much for taking the time, breaking down bank earnings with us this morning.

KEN LEON: Thank you.