From Financial Modeling Prep: 2024-10-11 18:30:00

JPMorgan Chase & Co. (NYSE:JPM) exceeded expectations with third-quarter net interest income (NII) of $23.53 billion, surpassing analysts’ $22.8 billion estimate. Shares rose over 4% on Friday as the largest U.S. bank by assets benefited from the interest rate spread on loans and deposits.

Looking forward, JPMorgan projects a slight NII moderation to $22.9 billion in Q4, with an annual forecast of around $92.5 billion for 2023, up from $89.7 billion. This reflects potential changes as the Federal Reserve considers lowering interest rates.

JPMorgan President Daniel Pinto addressed projections of a $1.5 billion NII decrease by 2025, calling it “not very reasonable” if the Fed cuts rates by 250 basis points. While hinting at a lower reduction, Pinto did not provide specific targets during the industry event.

The bank has warned about potential “overearning” on lending income, indicating that recent high profits may adjust as the interest rate environment changes. Investors are advised to monitor how JPMorgan navigates evolving market conditions.



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