JPMorgan raises annual forecast for net interest income to $53b

NEW YORK, Feb 18 (Reuters): JPMorgan Chase & Co expects its net interest income to grow to $53 billion in 2022, up $3 billion from its prior forecast, Chief Financial Officer Jeremy Barnum said on Friday at a conference hosted by Credit Suisse.

He also said that markets revenue in the first quarter is on course to be down "a little bit more than 10 per cent" from its exceptional level a year earlier.

The markets outlook is "better than we would have expected," he said, partly because of increased volatility in fixed-income trading as markets adjust to expectations for changes in policies of central bank that impact short- and long-term rates.

"That type of dynamic global rate environment tends to be quite supportive of the fixed-income business," Barnum said.

JPMorgan's new outlook for net interest income is based on an expectation of six rate hikes by the Federal Reserve this year. The prior outlook in January assumed three to four hikes.

The bank will not spend more than planned on business investments in light of the additional net interest income expected, he said in response to a question.

JPMorgan, which has been getting questions from analysts and investors about its increased spending, has decided to hold an "investor day" conference within the next few months, Barnum said.