Despite the industry-wide challenges, JPM stock's performance in the first quarter of 2024 was remarkable. This time, analysts anticipate that JP Morgan will continue demonstrating strong performance.
JPM Forecast On Interest Income
JPMorgan might show a modest profit due to elevated interest rates. The company is unlikely to have observed a substantial increase in NII despite the Federal Reserve's decision to maintain interest rates at a 22-year high of 5.25 to 5.5% rates.
The yield curve (inverted) in the quarter ending June and the higher funding costs are anticipated to impact NII's growth. Nevertheless, the lending scenario may have been bolstered by the expectation of the interest rate ease and a stabilizing macroeconomic backdrop. The current estimate for NII is $22.83 billion, which indicates a 4.8% increase.
JPM Revenues from Markets Forecast
In Q2, client activity was satisfactory due to the potential for controlled inflation, a softer economy, and clarity on the interest rate cut path. The consensus estimate for equity market revenues is $2.56 billion, representing a 4.2% increase.
Analysts estimate that fixed-income market revenues are $4.77 billion, suggesting a 3.5% increase.
