International Business: JPMorgan raises 2022 interest income outlook ahead of investor conference – Gulf Digital News

International Business: JPMorgan raises 2022 interest income outlook ahead of investor conference – Gulf Digital News

JPMorgan Chase & Co presented a more optimistic profit forecast on Monday as it opened an investor conference to relieve worries that the biggest US bank by assets might be starting to lose its edge.

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.

JPMorgan said it now expected net interest income (NII), excluding markets, of $56 billion in 2022.

The bank earlier forecast NII outside of its market business to reach a "couple billion" more than $53 billion in 2022, up from its $50 billion outlook in January.

The company's shares were up 1.8% at $119.50 in premarket trading.

JPMorgan said its 2022 outlook for NII was based on an assumption that the U.S. Federal Reserve raises short-term rates up to 3% by year-end. It also assumed high single-digit loans growth and a "modest" step up in securities investments.

The company also affirmed target for a 17% return on tangible capital equity (ROTCE) and said it may be achieved in 2022. ROTCE is a key metric which measures how well a bank uses shareholder money to