JPMorgan Chase Just Lowered Guidance, and Shares Are Tumbling Today

Shares of JPMorgan Chase (NYSE: JPM), the largest bank by assets in the U.S., had slid roughly 7% as of 12:12 p.m. ET on Tuesday after management essentially lowered its guidance for net interest income (NII), a key source of revenue. NII looks at the difference between what a bank earns on its interest-earning assets such as loans and what it pays out on interest-bearing liabilities such as deposits.

The analyst consensus had been modeling roughly $90 billion of net interest income in 2025, according to Visible Alpha, which is now owned by S&P Global Market Intelligence. At an industry conference earlier this morning, chief operating officer Daniel Pinto called the estimate "not very reasonable," although he did not provide specific guidance.

Pinto also told analysts to expect investment banking fees to climb 15% year over year in the third quarter, while markets revenue could grow 2%. But Wall Street had been modeling for 22% year-over-year growth in investment banking fees and 4% growth in markets revenue, according to Visible Alpha. All of these comments will surely bring analyst estimates down in the coming days.

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Source Fool.com