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Full-year 2025 net interest income guidance of $90B, excluding markets, 2025 “might end up a little better, maybe by about $1B,” JPMorgan Chase (NYSE:JPM) Chief Financial Officer Jeremy Barnum said Monday during the company’s Investor Day Event. However, the company would like to see the yield curve settle down, he added.
On the expense side, the effect of the weaker dollar on net expenses overall is insignificant, he noted. The company will update its guidance when it releases Q2 earnings on July 15.
He emphasized that the company isn’t focusing on expenses at the cost of growth. Expenses have increased by $26B in the last five years, while revenue has increased by $54B during the same period. “We must invest prudently and constantly to improve efficiency,” Barnum said.
The company continues to make progress on moving to the cloud and modern infrastructure, he said. About 65% of applications run their processing largely in the public or private cloud, and ~80% of applications run their processing largely on modern infrastructure, he added.
In discussing, the company’s credit experience, “Our current results do not reflect actual deterioration in credit to any meaningful degree,” Barnum said.
JPMorgan Chase (NYSE:JPM) does “have reason to hope for improved regulatory environment,” he said. However, uncertainty from a number of factors may constrain regulators. Since the April 2 tariffs, the company has changed its central case outlook for peak unemployment rate to 5.8% from its previous scenario of 4.5%.
Its analysis of the impact of tariffs to JPMorgan Chase’s (JPM) to its wholesale Commercial & Industrial portfolio reserves is estimated at $5B, Barnum said. “The impact from tariffs to our wholesale C&I portfolio will depend on industry and company-specific dynamics, as well as how much of the cost can be passed through to the consumer,” he added.
In addressing the use of the company’s $57B of excess capital, he said, “Inorganic growth opportunities are always on the table.” A slide showed priorities for its capital, headed by the macro and regulatory environment, followed by growing its business. The next use is dividends, followed by stock buybacks.
Inorganic opportunities, meaning acquisitions, are always on the table, he repeated. Lately, it has made fewer acquisitions, knowing that acquisitions can be difficult to integrate. “We’re going to be appropriately cautious,” he said.
“We want banks to be part of a new wave of growth,” but regulatory capital requirements make that difficult. If regulators adopt the kinds of capital requirements that JPMorgan (JPM) has been espousing, then that would help the company increase its growth, Barnum said. “There would be opportunities to deploy.”
JPMorgan Chase (JPM) stock slipped 0.8% in premarket trading.
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