Wednesday, 9 Jul 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • House
  • VIDEO
  • ScienceAlert
  • White
  • Watch
  • Trumps
  • man
  • Health
  • Day
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > JPMorgan Chase shares drop 5% after bank tempers guidance on interest income and expenses
Economy

JPMorgan Chase shares drop 5% after bank tempers guidance on interest income and expenses

Last updated: September 10, 2024 12:39 pm
Share
JPMorgan Chase shares drop 5% after bank tempers guidance on interest income and expenses
SHARE

JPMorgan Chase shares took a hit on Tuesday following a statement from the bank’s president, Daniel Pinto, indicating that expectations for net interest income (NII) and expenses in 2025 were overly optimistic. Pinto expressed doubts about the feasibility of reaching the projected NII target of $90 billion for next year, citing potential interest rate cuts by the Federal Reserve as a key factor.

Pinto, speaking at a financial conference, mentioned that the current estimate for NII in 2024 of approximately $91.5 billion is more realistic, but the outlook for 2025 may need to be adjusted downward due to anticipated interest rate reductions. While declining to provide a specific figure, Pinto’s comments triggered a 5% drop in JPMorgan’s stock price, marking the largest decline since June 2020.

As the largest bank in the U.S., JPMorgan has enjoyed strong performance in recent years, driven by robust growth in NII fueled by increased deposits and lending activities. However, concerns about the bank’s future prospects have emerged amid worries about slowing economic growth in the U.S. and uncertainties surrounding interest rate movements.

NII is a critical revenue source for banks, representing the difference between the interest earned on loans and investments and the interest paid on deposits. Lower interest rates typically lead to reduced yields on new loans and investments, posing challenges for banks like JPMorgan. While declining rates may mitigate deposit repricing pressures, they also dampen the returns on new assets, complicating the profit outlook.

In addition to NII concerns, Pinto highlighted the potential for higher expenses in 2025 compared to analyst estimates of around $94 billion. Factors such as persistent inflation and increased investments by the bank could drive expenses higher than currently anticipated. Despite these challenges, JPMorgan remains optimistic about its trading and investment banking activities, with expectations of steady revenue growth in the third quarter.

See also  Stu Grimson shares opinion on Jeremy Swayman's standoff with Bruins over extension

The bank’s cautious outlook on trading revenue echoes similar sentiments from Goldman Sachs, which recently forecasted a decline in trading revenue due to tough year-over-year comparisons and challenging market conditions. Overall, JPMorgan’s performance in the coming quarters will be closely monitored by investors and analysts as they assess the impact of evolving economic conditions on the bank’s financial prospects.

TAGGED:BankChaseDropexpensesGuidanceIncomeinterestJPMorganSharestempers
Share This Article
Twitter Email Copy Link Print
Previous Article 5 Ways The Pixel 9 Beats The iPhone 16 5 Ways The Pixel 9 Beats The iPhone 16
Next Article Basic Data on Federal Finances Basic Data on Federal Finances
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Unforgettable Gala Honorees 2024: Anna Sawai, Izaac Wang

The 22nd annual Unforgettable Gala (UNFO) is set to honor the talented cast of Netflix's…

November 21, 2024

Creative Arts Emmys Winners Night 1

Rizzo winning for his work on the Disney+ series “Earthkeepers,” and the documentary “Summer of…

September 7, 2024

MLS preseason storylines: Gregg Berhalter’s return, Lionel Messi and Inter Miami aim to bounce back and more

There were some key departures with Robert Beric going to FC Cincinnati and Djordje Mihailovic…

February 13, 2025

‘Section 31’ Release Date, ‘Strange New Worlds’ Guest Star Announced

The “Star Trek Universe” panel at New York Comic Con recently revealed exciting updates for…

October 19, 2024

Novo Nordisk chief Jørgensen to step down

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite…

May 16, 2025

You Might Also Like

STAT+: HHS backtracks on pledge to disclose new vaccine advisers’ conflicts of interest
Health and Wellness

STAT+: HHS backtracks on pledge to disclose new vaccine advisers’ conflicts of interest

July 9, 2025
What it means for you
Economy

What it means for you

July 9, 2025
Donald Trump threatens to impose 50% tariff on Brazil
Economy

Donald Trump threatens to impose 50% tariff on Brazil

July 9, 2025
Microsoft shares 0M in AI savings internally days after cutting 9,000 jobs
Tech and Science

Microsoft shares $500M in AI savings internally days after cutting 9,000 jobs

July 9, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?