JPMorgan Lifts Financials After Positive 2022 Outlook Despite Inflation
2022.05.23 22:25
By Liz Moyer
Investing.com — JPMorgan Chase & Co (NYSE:JPM) shares jumped more than 7% and helped lead financials higher on Monday after a positive outlook despite inflation and economic uncertainty.
The bank reaffirmed its forecast for 17% return on tangible common equity this year at its investor day presentation on Monday. It also raised its forecast for net interest income for this year, which benefits when interest rates rise. For 2022, it is now estimated to rise above $56 billion, which is more than the $50 billion forecast the bank gave earlier this year.
Executives said the economy remains strong despite the macroeconomic challenges. CEO Jamie Dimon described it as a “strong economy, big storm clouds,” adding that those clouds “may dissipate.”
Citigroup Inc (NYSE:C) shares also jumped 7%, while Bank of America Corp (NYSE:BAC) shares rose 6%.
Earlier this year, JPMorgan had suggested it may be hard to reach that 17% return target, but Dimon said Monday a benign credit environment could mean it has a “very good chance” of achieving it.
By the last three months of the year, net interest income generation could outpace the same period in 2021 by $20 billion because of higher rates and growth in lending.
The bank also said expenses for the year would be around $77 billion, unchanged from earlier guidance.
