May 23 (Reuters) – JPMorgan Chase & Co (JPM.N) lifted its forecast for interest income and affirmed its profitability target as it opened an investor conference on Monday, where executives are expected to face questions on the bank’s expenses and management of its capital.
The country’s largest lender said it now expects net interest income (NII), excluding markets, of $56 billion in 2022. It had earlier forecast NII outside its market business to reach a “couple billion” more than $53 billion in 2022, up from its $50 billion outlook in January.
Investors are keeping an eye on the prospects for banks to increase their net interest income, or the difference between income from loans and interest paid on deposits and other funds, as they benefit from higher interest rates.
However, as the U.S. Federal Reserve rushes to contain decades-high inflation, investors are also worried that overly aggressive monetary policy tightening will tip the economy over into a recession. These fears have driven the S&P 500 banks index (.SPXBK) down 21.5% so far this year.