JPMorgan’s Lending Outlook Suffers From Fed’s Rate Reversal
- Bank lowers net interest income forecast by $500 million
- Fixed-income desk posts fourth straight quarterly drop
This article is for subscribers only.
JPMorgan Chase & Co. was hit by the Federal Reserve’s about-face on interest rates in the second quarter, warning that lending income will fall in the second half.
The largest U.S. bank on Tuesday cut its full-year outlook for net interest income -- revenue from customers’ loan payments minus what the bank pays depositors -- by $500 million. NII accounted for about half the New York-based company’s revenue last year and has countered a slump in trading, which fell for a fourth straight period in the second quarter.