JPMorgan Chase lifts full-year net interest income outlook to about $106.2 billion
The bank's new net interest income guidance tops consensus, even as third-quarter revenue and profit fell short.
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JPMorgan Chase now expects full-year net interest income of about $106.2 billion, above the $105.28 billion that analysts had forecast. The outlook is also higher than the roughly $105.5 billion guidance the bank gave in July, which itself had been raised from an earlier estimate of about $103 billion, according to Admiral Markets.
The new figure came alongside a third-quarter report that missed on both revenue and profit. Revenue was $50.91 billion, short of the $51.65 billion forecast. Earnings per share came to $5.57, which included a $658 million net securities loss. Excluding that loss, earnings per share would have been $5.75, still below the $5.90 estimate from LSEG, according to CNBC. JPMorgan had beaten earnings estimates in 16 of its past 20 quarters, according to StreetAccount data cited by CNBC.
The stronger net interest income guidance suggests JPMorgan's lending business is holding up even as trading and fee revenue disappointed this quarter. That cuts against an earlier reading, tied to the bank's pullback in share buybacks, that management saw broader reasons for caution. If the bank delivers on the higher net interest income figure, it would partly offset the support that the revenue shortfall and the slower pace of buybacks had taken away.