{"id":12311,"date":"2023-05-22T19:54:39","date_gmt":"2023-05-22T23:54:39","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/jpmorgan-raises-net-interest-income-guidance-to-reflect-3-billion-bump-from-first-republic-bank-takeover\/"},"modified":"2023-05-22T19:54:40","modified_gmt":"2023-05-22T23:54:40","slug":"jpmorgan-raises-net-interest-income-guidance-to-reflect-3-billion-bump-from-first-republic-bank-takeover","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=12311","title":{"rendered":"JPMorgan raises net-interest-income guidance to reflect $3 billion bump from First Republic Bank takeover"},"content":{"rendered":"
\n

JPMorgan Chase & Co. raised its net-interest-income guidance on Monday by $3 billion to reflect the bump it will get from its takeover of First Republic Bank.<\/p>\n

The bank is now expecting its 2023 net interest income (NII) to come to $84 billion, up from $81 billion forecast in April. That\u2019s well above the current FactSet NII consensus of $80.83 billion.<\/p>\n

\n

The stock
\n JPM,
\n -0.83%<\/bg-quote>
\n fell 0.8% in Monday afternoon trading, to reverse an earlier intraday gain of as much as 1.8%.<\/p>\n

The banking giant also said it still expects total integration costs associated with the purchase of First Republic\u2019s assets and the assumption of its deposits and certain liabilities to be about $3.5 billion.<\/p>\n

\u201cWe\u2019re currently assuming that about half of the integration expense will be incurred this year as we continue integrating the First Republic franchise,\u201d said Jeremy Barnum, chief financial officer at JPMorgan, speaking at the annual Investor Day, according to a FactSet transcript. \u201cWe expect to have choices about the service model, which may result in higher expense, all else equal.\u201d<\/p>\n

Barnum added that if expenses are higher, they will also come with additional revenue.<\/p>\n

He explained that the company\u2019s conservative approach to the deployment of the increase in liquidity resources during the pandemic era, such as a big jump in deposits, led to an increase in excess capital.<\/p>\n

As JPMorgan Chief Executive Officer Jamie Dimon \u201calways says,\u201d Barnum noted, \u201cexcess capital is just future earnings.\u201d It is that excess capital, the CFO said, that allowed the bank to do the First Republic deal at \u201cextremely attractive returns.\u201d<\/p>\n

Regarding concerns about deposit outflows into money-market funds following the recent collapse of several regional banks, Barnum said he expects systemwide deposits to continue to decline.<\/p>\n

\u201cIn light of these pressures, it\u2019s therefore important to reiterate our deposit strategy,\u201d Barnum said. \u201cWe will fight to keep primary banking relationships, but we are not going to chase every dollar of deposit balances.\u201d<\/p>\n

The stock has gained 3.0% in the year to date, while the Financial Select Sector SPDR exchange-traded fund
\n XLF,
\n +0.18%<\/bg-quote>
\n has dropped 4.4% and the S&P 500
\n SPX,
\n +0.02%<\/bg-quote>
\n has gained 9.4%. <\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

JPMorgan Chase & Co. raised its net-interest-income guidance on Monday by $3 billion to reflect the bump it will get from its takeover of First Republic Bank. The bank is now expecting its 2023 net interest income (NII) to come to $84 billion, up from $81 billion forecast in April. That\u2019s well above the current […]<\/p>\n","protected":false},"author":1,"featured_media":12312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-12311","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nJPMorgan raises net-interest-income guidance to reflect $3 billion bump from First Republic Bank takeover | iFintechWorld<\/title>\n<meta name=\"description\" content=\"JPMorgan Chase & Co. raised its net-interest-income guidance on Monday by $3 billion to reflect the bump it will get from its takeover of First\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=12311\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"JPMorgan raises net-interest-income guidance to reflect $3 billion bump from First Republic Bank takeover | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"JPMorgan Chase & Co. raised its net-interest-income guidance on Monday by $3 billion to reflect the bump it will get from its takeover of First\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=12311\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-22T23:54:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-22T23:54:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/1684799680_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=12311#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=12311\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"JPMorgan raises net-interest-income guidance to reflect $3 billion bump from First Republic Bank takeover\",\"datePublished\":\"2023-05-22T23:54:39+00:00\",\"dateModified\":\"2023-05-22T23:54:40+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=12311\"},\"wordCount\":366,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=12311#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=12311\",\"url\":\"https:\/\/ifintechworld.com\/?p=12311\",\"name\":\"JPMorgan raises net-interest-income guidance to reflect $3 billion bump from First Republic Bank takeover | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-05-22T23:54:39+00:00\",\"dateModified\":\"2023-05-22T23:54:40+00:00\",\"description\":\"JPMorgan Chase & Co. raised its net-interest-income guidance on Monday by $3 billion to reflect the bump it will get from its takeover of First\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=12311#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=12311\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=12311#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"JPMorgan raises net-interest-income guidance to reflect $3 billion bump from First Republic Bank takeover\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"JPMorgan raises net-interest-income guidance to reflect $3 billion bump from First Republic Bank takeover | iFintechWorld","description":"JPMorgan Chase & Co. raised its net-interest-income guidance on Monday by $3 billion to reflect the bump it will get from its takeover of First","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=12311","og_locale":"en_US","og_type":"article","og_title":"JPMorgan raises net-interest-income guidance to reflect $3 billion bump from First Republic Bank takeover | iFintechWorld","og_description":"JPMorgan Chase & Co. raised its net-interest-income guidance on Monday by $3 billion to reflect the bump it will get from its takeover of First","og_url":"https:\/\/ifintechworld.com\/?p=12311","og_site_name":"iFintechWorld","article_published_time":"2023-05-22T23:54:39+00:00","article_modified_time":"2023-05-22T23:54:40+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/1684799680_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=12311#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=12311"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"JPMorgan raises net-interest-income guidance to reflect $3 billion bump from First Republic Bank takeover","datePublished":"2023-05-22T23:54:39+00:00","dateModified":"2023-05-22T23:54:40+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=12311"},"wordCount":366,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Investing"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=12311#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=12311","url":"https:\/\/ifintechworld.com\/?p=12311","name":"JPMorgan raises net-interest-income guidance to reflect $3 billion bump from First Republic Bank takeover | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-05-22T23:54:39+00:00","dateModified":"2023-05-22T23:54:40+00:00","description":"JPMorgan Chase & Co. raised its net-interest-income guidance on Monday by $3 billion to reflect the bump it will get from its takeover of First","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=12311#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=12311"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=12311#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"JPMorgan raises net-interest-income guidance to reflect $3 billion bump from First Republic Bank takeover"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/12311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12311"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/12311\/revisions"}],"predecessor-version":[{"id":12313,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/12311\/revisions\/12313"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/12312"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}