JPMorgan shares jump after outlook raised

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. 124.60 +7.26 +6.19%

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 US 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.”

GAS PRICES WILL SURPASS $6 NATIONWIDE BY AUGUST, JPMORGAN SAYS

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.”

JPMorgan

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.

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