JP Morgan CFO: NII expectations for 2025 may seem "unrealistic" but can still be achieved
Jeremy Barnum, Chief Financial Officer of JPMorgan Chase, stated that the net interest income (NII) for the 2025 fiscal year is expected to be around $87 billion, which may seem unrealistic but is still achievable. Chairman Jamie Dimon expressed disappointment and believed that the actual figure may be lower than $87 billion. The company expects NII for the fourth quarter to be $22.9 billion, down from $23.4 billion in the third quarter, mainly due to the impact of the yield curve. Dimon emphasized that JPMorgan Chase will focus on growth and invest in private banking and artificial intelligence technology
According to the information from Zhitong Finance APP, JPMorgan Chase (JPM.US) announced its third-quarter financial report before the market opened on Friday, stating that the net interest income (NII) for the fiscal year 2025 is expected to be around $87 billion. Chief Financial Officer Jeremy Barnum said during the earnings conference call, "This still seems a bit unrealistic, but it's roughly correct," and he mentioned that this is achievable.
However, Chairman and CEO Jamie Dimon expressed disappointment in focusing on NII, saying, "It's a number... it will be less than $87 billion, maybe not by much." However, the bank does not know what the yield curve or environment will look like, and Dimon prefers to focus on growth rather than NII.
The company's performance guidance indicates that NII for the fourth quarter is expected to be $22.9 billion, while the reported data for the third quarter is $23.4 billion. Barnum stated that the biggest single factor behind the Q4 NII decline on a quarter-over-quarter basis is the yield curve.
The CFO mentioned that considering the yield curve, there is indeed a clear picture of continuous decline in net interest income next year, with the trough possibly in mid-2025.
Jamie Dimon stated during the third-quarter earnings conference call that in terms of growth, JPMorgan Chase is taking multiple measures, including increasing private bankers and investing in artificial intelligence technology for investors.
He said, "The expenses you talk about, I call them investments," in other words, the expenses are expected to pay off in the long term. He added, "Our goal is to gain market share."
Furthermore, Dimon mentioned that in a turbulent world, "cash is a very valuable asset."