The American financial giant JPMorgan Chase revised its forecast for profit for the current year, lowering the bar by $ 500 million. The bank expects that it will eventually earn about $ 57 billion.
“Our net interest income will be slightly lower than what we told you last time,” the bank’s Head Jamie Dimon as commenting at the Barclays Financial Services Conference in New York. “We previously expected about $ 57.5 billion, but now we're leaning toward $ 57 billion.”
The review took place in a rather short period of time: the previous forecast was announced in July. According to Reuters, this indicates that banks with large pools of client deposits are trying to earn as much money as possible against the background of lower interest rates and an inverted yield curve.
In addition, Dimon noted that the bank expects a decrease in income from securities trading by 10% in the third quarter compared to the second quarter. It is assumed that proceeds from mergers and acquisitions will not change.
Earlier this week, JPMorgan Chase's largest competitors, Wells Fargo and Citigroup, announced a downward revision of forecasts.
Citi previously expected growth of 4%, but now the forecast for net interest income ranges from 3 to 4%.
Wells Fargo lowered its forecasts for the second time this year. The chief financial officer of the bank said that he expects a fall in net interest income by 6% in 2019 compared to 5% announced earlier.
source: reuters.com
“Our net interest income will be slightly lower than what we told you last time,” the bank’s Head Jamie Dimon as commenting at the Barclays Financial Services Conference in New York. “We previously expected about $ 57.5 billion, but now we're leaning toward $ 57 billion.”
The review took place in a rather short period of time: the previous forecast was announced in July. According to Reuters, this indicates that banks with large pools of client deposits are trying to earn as much money as possible against the background of lower interest rates and an inverted yield curve.
In addition, Dimon noted that the bank expects a decrease in income from securities trading by 10% in the third quarter compared to the second quarter. It is assumed that proceeds from mergers and acquisitions will not change.
Earlier this week, JPMorgan Chase's largest competitors, Wells Fargo and Citigroup, announced a downward revision of forecasts.
Citi previously expected growth of 4%, but now the forecast for net interest income ranges from 3 to 4%.
Wells Fargo lowered its forecasts for the second time this year. The chief financial officer of the bank said that he expects a fall in net interest income by 6% in 2019 compared to 5% announced earlier.
source: reuters.com
