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JPMorgan cuts outlook for net interest income on lower rates

[NEW YORK] JPMorgan expects about US$55 billion in net interest income for full-year 2020, down from an earlier estimate of US$56 billion, chief financial officer Jennifer Piepszak said on Tuesday.

Ms Piepszak, at a virtual conference hosted by Barclays, also said the current trend points to 2021 net interest income of about US$13 billion per quarter.

JPMorgan's third-quarter trading revenue will be up about 20 per cent from a year earlier, Ms Piepszak said.

Citigroup Inc expects third-quarter markets revenue will be up by a "low double-digit" percentage from a year earlier, chief financial officer Mark Mason said on Monday at the same conference.

JPMorgan does not expect to add a meaningful amount to its loan loss reserves after making large provisions at the end of the first and second quarters, she said.

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Banks are earning less interest on loans while the Federal Reserve holds interest rates down to support the economy.

Trading revenue at the biggest banks has been one of the few bright spots in their results since the coronavirus outbreak.

REUTERS

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