{"id":8046,"date":"2024-04-13T17:00:20","date_gmt":"2024-04-13T14:00:20","guid":{"rendered":"https:\/\/ch.jfdi.cc\/?p=8046"},"modified":"2024-04-13T17:00:20","modified_gmt":"2024-04-13T14:00:20","slug":"jpmorgan-profit-rises-6-even-as-interest-income-forecast-falls-short-of-predictions","status":"publish","type":"post","link":"https:\/\/ch.jfdi.cc\/?p=8046","title":{"rendered":"JPMorgan profit rises 6% even as interest income forecast falls short of predictions"},"content":{"rendered":"
<\/div>\n
JPMorgan Chase\u2019s profit rose 6 per cent in the first quarter, although its shares dropped after the bank\u2019s forecast for its income from interest payments came in below analysts\u2019 expectations.<\/div>\n
High borrowing costs have helped lenders boost net interest income (NII), or the difference between what banks earn on loans and pay out for deposits.<\/div>\n
JPMorgan, the biggest U.S. bank by assets, also added billions of dollars of loans to its balance sheet after acquiring failed First Republic Bank in May last year, fueling its interest income further.<\/div>\n
CEO Jamie Dimon, however, stuck to his cautious tone, despite growing optimism in the last several months about a soft landing for the economy.<\/div>\n
\u201cMany economic indicators continue to be favorable. However, looking ahead, we remain alert to a number of significant uncertain forces,\u201d he said in a statement.<\/div>\n
Those include \u201cunsettling\u201d global conflicts, persistent inflationary pressure and quantitative tightening, Dimon said.<\/div>\n
The bank expects full-year NII, excluding trading, of $89 billion, depending on market fluctuations. That is up from a previous estimate of $88 billion but lower than the $90.68 billion analysts had expected, according to LSEG.<\/div>\n
Shares of the bank fell 2 per cent in trading before the bell. The bank\u2019s executives have warned for months that its surging NII was not sustainable.<\/div>\n
Despite the fall in shares, analysts believe that this was yet another \u201csolid\u201d quarter from JPMorgan.<\/div>\n
\u201cThe bank\u2019s financials looked very encouraging,\u201d said Octavio Marenzi, CEO of management consultancy firm Opimas, adding that the only negative was the increase in non-interest expenses.<\/div>\n
The lender also earmarked $725 million to replenish a government deposit insurance fund, less than the $3 billion it set aside at the end of last year.<\/div>\n
JPMorgan was among the banking giants that made up the bulk of contributions to the Federal Deposit Insurance Corp fund, which was drained when three regional lenders failed last year.<\/div>\n
That drove the bank\u2019s expense forecast to $91 billion, compared with the $90 billion it had estimated earlier.<\/div>\n
In contrast to peers that are trimming staff, JPMorgan added about 2,000 employees to its workforce of 311,921. That is 5 per cent higher than a year earlier.<\/div>\n
Profit was $13.42 billion, or $4.44 per share, for the three months ended March 31, compared with $12.62 billion, or $4.10 per share, a year earlier.<\/div>\n
NII rose 11 per cent to $23.2 billion. Excluding the impact of First Republic, it was still 5 per cent higher than last year. It set aside $1.88 billion as provisions for credit losses, compared with $2.28 billion last year.<\/div>\n
Trading revenue at JPMorgan fell 5 per cent to $8 billion, with revenue from fixed income, currency and commodities (FICC) dropping 7 per cent and equities flat.<\/div>\n
Investment banking revenue gained 27 per cent to $2 billion, driven by higher fees earned on debt and stock underwriting.<\/div>\n
Overall revenue rose 9 per cent to $41.93 billion.<\/div>\n
JPMorgan\u2019s succession plans have been in focus for months, especially after Morgan Stanley\u00a0and Lazard\u00a0named new CEOs.<\/div>\n
The bank\u2019s board\u00a0identified potential successors\u00a0to CEO Jamie Dimon on Monday, paving the way for a leadership transition at the largest U.S. bank.<\/div>\n
Contenders for the top job\u00a0include Jennifer Piepszak and Troy Rohrbaugh, recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, and Marianne Lake, CEO of consumer and community banking.<\/div>\n
\u201cWe do not have any reason to believe that Dimon will depart in the immediate future,\u201d said Brian Mulberry, client portfolio manager at Zacks Investment Management.<\/div>\n
\u201cThere is a lot of speculation around him being offered some kind of Cabinet position in a new administration but neither candidate nor Dimon have given any indication that the rumor is even remotely plausible right now.\u201d<\/div>\n","protected":false},"excerpt":{"rendered":"

JPMorgan Chase’s profit rose 6% in the first quarter, but its shares dropped due to the bank’s forecast for its income from interest payments coming in below analysts’ expectations.<\/p>\n","protected":false},"author":3,"featured_media":8047,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1521,1902,611,1056,3345,2460,2511,3832,3,898,612,6264,26,4818,3644,2544,4081,250,3330,415,2294,1823,1190,899,6263,2753,4074,3331,3775,2247,5612,3798,1959,1827,605,618],"class_list":["post-8046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-1521","tag-bank","tag-banks","tag-borrowing-costs","tag-cabinet","tag-community","tag-costs","tag-currency","tag-cyprus","tag-debt","tag-deposits","tag-economic-indicators","tag-economy","tag-expectations","tag-expenses","tag-fees","tag-future","tag-google","tag-google-news","tag-government","tag-income","tag-increase","tag-inflationary-pressure","tag-interest","tag-interest-income","tag-investment","tag-loans","tag-news","tag-pressure","tag-profit","tag-revenue","tag-shares","tag-speculation","tag-statement","tag-succession","tag-top"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\nJPMorgan 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