JPMorgan stock gaps down as Pinto says analyst estimates are too optimistic

JPMorgan Chase (NYSE:JPM) stock slid 6.2% in Tuesday morning trading as Daniel Pinto, the bank’s president and chief operating officer, said next year’s net interest income “will be lower” than what analysts are expecting.

The Visible Alpha consensus for 2025 NII stands at $90.0B, which Pinto called “not very reasonable,” as markets call for lower interest rates, he said at an industry conference.

“We are not going to guide on that now, but the $90 billion is a bit too high,” he said. “Clearly, as rates go lower, you have less pressure on repricing of deposits, but as you know, we are quite asset sensitive.”

He also said that Q3 2024 investment-banking fees could advance 15%, while revenue from JPMorgan’s (JPM) markets segment could increase 2%. Both growth rates also trail analyst expectations.

Note that JPMorgan (JPM) CEO Jamie Dimon has consistently affirmed that Pinto is fully prepared to assume leadership in the event of an emergency or an expedited transition.

Shares of most of the big U.S. banks retreated at the time of writing, though not to the same magnitude as JPM, even after Federal Reserve Vice Chair for Supervision Michael Barr proposed slashing megabanks’ capital hike in half in a revised plan.