JPMorgan shares jump after outlook raised
The megabank lifted its forecast for interest income
JPMorgan Chase CEO Jamie Dimon discusses his outlook for the markets in 2022, the pandemic, rate hikes, and loan growth.
JPMorgan Chase & Co. shares climbed more than 5% on Monday after the mega bank lifted its forecast for interest income for the year in a presentation to investors.
The logo for JPMorgan Chase & Co. appears above a trading post on the floor of the New York Stock Exchange in New York. JPMorgan Chase admitted Tuesday, Sept. 29, 2020 (AP Photo/Richard Drew, File / AP Newsroom)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 219.79 | -3.14 | -1.41% |
The nation's largest lender now expects $56 billion in net interest income excluding markets in 2022, after saying in January that it expected the figure to be $50 billion.
The new outlook assumes the Federal Reserve raises short-term interest rates up to 3% by the end of the year, and the bank anticipates "high single-digit loan growth" with credit card revolving balances approaching pre-pandemic levels.
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A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/Files (REUTERS/Mike Segar/Files / Reuters Photos)
"The U.S. economy remains fundamentally strong, despite recent mixed data," the firm said in its analysis, adding that "recent developments have increased the risk of a future adverse outcome."
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JPMorgan said that net charge-offs for bad loans are at historic lows, but that it expects "charge-offs to return to pre-pandemic levels over time."
People pass the JP Morgan Chase & Co. Corporate headquarters in the Manhattan borough of New York City, May 20, 2015. (REUTERS/Mike Segar/File Photo / Reuters Photos)
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The bank left its expense outlook unchanged at $77 billion, and reaffirmed its target for a 17% return on tangible capital equity (ROTCE), which it said could be achieved in 2022.
Reuters contributed to this article.