NEW YORK (Reuters) – JPMorgan Chase on Monday raised its forecast for net interest income (NII), or the difference between what it earns on loans and payments on deposits, to $91 billion, excluding the markets division.
The bank’s shares rose about 1% in premarket trading ahead of Investor Day, which is set to begin in New York later in the morning.
JPMorgan’s previous forecasts for NII disappointed analysts as they expected the bank to benefit more from persistently higher interest rates.
The lender raised its April NPV forecast to $89 billion from a previous $88 billion, excluding the markets division. At the time, including trading, the company kept its NII forecast unchanged at $90 billion.
JPMorgan bought billions of loans after buying the collapsed First Republican Bank (OTC:) last May. The purchase boosted interest income and helped lift profits to record levels.
Chief Financial Officer Jeremy Barnum has been softening NII’s expectations for months, saying earnings are not sustainable.
As JPMorgan caps off a year of record profits, investors are eager to learn about the firm’s succession plans, investments in artificial intelligence and opportunities beyond traditional banking.
Dimon, 68, led JPMorgan for more than 18 years, outperforming many other banking industry executives. In addition, several executives who worked under Dimon went on to run other major financial institutions, making his succession plans a long-standing subject of speculation.
Last year, Dimon said he could retire in 3.5 years.
JPMorgan’s board of directors recently named Jennifer Piepsak and Troy Rohrbaugh, co-chief executives of the commercial and investment bank, as candidates for the top job. Marianne Lake, CEO of consumer and community banking, and Mary Erdos, CEO of asset and wealth management, are also in the running.
The stock is up 20.4% in 2024, outperforming the S&P bank stock index as well as broader stock markets. It closed at a record high on Friday.