Daniel Pinto, President and Chief Operating Officer, noted that net interest income (NII) forecasts—the difference between what the bank earns on loans and what it pays out on deposits—were overly optimistic. "The forecasts for net interest income are a little too high," he explained, though he did not provide a revised estimate and emphasized that "next year will be a little more difficult." The full interview with the financial community is available here.
JPMorgan had already projected net income of $91 billion this year, excluding its markets division. Additionally, investment banking fees could rise by 15% in the third quarter, according to Pinto.
Record Profits in the Previous Quarter
JPMorgan posted record profits in the second quarter, driven by a 46% surge in investment banking revenues. Its competitors, including Citigroup and Wells Fargo, also saw significant gains in investment banking. Sales from JPMorgan's commercial and investment banking unit reached a record $35.5 billion in the first half of the year.
Trading revenues are expected to remain stable or grow by 2% in the third quarter, while M&A volumes are predicted to stay steady, Pinto told investors at a recent conference. In the second quarter, equity revenues rose by 21%, while fixed income grew by 5%.
