JPMorgan reiterates interest income outlook despite uncertainty
The US's biggest lender says it could be $1bn higher, but it’s too early to change its net interest income outlook
19 May 2025 - 16:41
byNupur Anand and Niket Nishant
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
JPMorgan Chase CEO Jamie Dimon in Paris, France, May 15 2025. Picture: MICHEL EULER/REUTERS
New York — JPMorgan Chase said on Monday it could earn more from interest payments this year despite significant economic uncertainty.
CFO Jeremy Barnum told investors net interest income — the difference between what the bank pays customers on deposits and earns from interest payments — could rise by $1bn this year.
Still, the biggest US lender said it was too early to change its net interest income outlook of $94.5bn for the full year. It also maintained its expense forecast for 2025, and said it was asking managers to keep a lid on headcount.
The bank’s shares were down about 1% in premarket trading.
“The evolving tariff environment, combined with the pre-existing geopolitical tensions, adds significant uncertainty into the economic outlook,” Barnum told shareholders and analysts gathered at the bank’s New York headquarters for an annual presentation.
“The combination of inflation and large fiscal deficits may constrain the available policy responses in ways that further increase the risk.”
Separately, he said the cash-flush bank was open to acquisitions, or “inorganic growth”. The largest US lender would be “appropriately cautious” with any acquisitions, because of the challenges of integrating businesses, Barnum said.
Credit card repayments still remained high, but were likely to “normalise” in 2026 as consumers fall behind on payments, Barnum said.
The bank estimated its net charge-off rate, or the percentage of credit card debt that will not be repaid, to be between 3.6% and 3.9% for 2026. That is higher than the 3.6% net charge-off rate the bank is expecting this year.
Though trade negotiations have helped ease some jitters, corporate executives remain wary about the economic outlook, with JPMorgan CEO Jamie Dimon warning last week that a recession could not be ruled out.
Dimon could also be asked to share his views on the widening fiscal deficits in the US, especially after Moody’s downgraded the country’s sovereign credit rating on Friday due to concerns about its $36-trillion debt pile.
He has consistently expressed worries that the deficits were not sustainable and could pose serious risks to the health of the US economy.
Several top executives were expected to join Dimon to outline the bank’s strategy during the investor presentation. Dimon has run JPMorgan for more than 19 years, outlasting many other CEOs. He said at last year’s investor day that the succession timeline was “not five years any more”.
Troy Rohrbaugh and Doug Petno, the co-CEOs of JPMorgan’s commercial and investment bank, are candidates for the top job. Marianne Lake, CEO of consumer and community banking, and Mary Erdoes, CEO of asset and wealth management, are also in the running.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
JPMorgan reiterates interest income outlook despite uncertainty
The US's biggest lender says it could be $1bn higher, but it’s too early to change its net interest income outlook
New York — JPMorgan Chase said on Monday it could earn more from interest payments this year despite significant economic uncertainty.
CFO Jeremy Barnum told investors net interest income — the difference between what the bank pays customers on deposits and earns from interest payments — could rise by $1bn this year.
Still, the biggest US lender said it was too early to change its net interest income outlook of $94.5bn for the full year. It also maintained its expense forecast for 2025, and said it was asking managers to keep a lid on headcount.
The bank’s shares were down about 1% in premarket trading.
“The evolving tariff environment, combined with the pre-existing geopolitical tensions, adds significant uncertainty into the economic outlook,” Barnum told shareholders and analysts gathered at the bank’s New York headquarters for an annual presentation.
“The combination of inflation and large fiscal deficits may constrain the available policy responses in ways that further increase the risk.”
Separately, he said the cash-flush bank was open to acquisitions, or “inorganic growth”. The largest US lender would be “appropriately cautious” with any acquisitions, because of the challenges of integrating businesses, Barnum said.
Credit card repayments still remained high, but were likely to “normalise” in 2026 as consumers fall behind on payments, Barnum said.
The bank estimated its net charge-off rate, or the percentage of credit card debt that will not be repaid, to be between 3.6% and 3.9% for 2026. That is higher than the 3.6% net charge-off rate the bank is expecting this year.
Though trade negotiations have helped ease some jitters, corporate executives remain wary about the economic outlook, with JPMorgan CEO Jamie Dimon warning last week that a recession could not be ruled out.
Dimon could also be asked to share his views on the widening fiscal deficits in the US, especially after Moody’s downgraded the country’s sovereign credit rating on Friday due to concerns about its $36-trillion debt pile.
He has consistently expressed worries that the deficits were not sustainable and could pose serious risks to the health of the US economy.
Several top executives were expected to join Dimon to outline the bank’s strategy during the investor presentation. Dimon has run JPMorgan for more than 19 years, outlasting many other CEOs. He said at last year’s investor day that the succession timeline was “not five years any more”.
Troy Rohrbaugh and Doug Petno, the co-CEOs of JPMorgan’s commercial and investment bank, are candidates for the top job. Marianne Lake, CEO of consumer and community banking, and Mary Erdoes, CEO of asset and wealth management, are also in the running.
Reuters
International business briefs: Siemens sees no need to shift production due to tariffs
IMF cuts Angola’s growth outlook on emerging risks
Iceland selling part of Islandsbanki to tackle 2008 financial crisis
Spending big bucks on stumbling Aspen
World news in brief: $200m margin call reveals Africa’s new debt pains
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
EY’s negligence missed huge fraud at UAE hospital firm, court hears
Sanlam frets about effects of Trumponomics
US firm Fortress Investment sets up Abu Dhabi office in push for Gulf growth
UniCredit lifts profit outlook, BPM deal up in the air
Much to like about SA economy’s sophistication, says Citi
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.