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JPMorgan, BofA Cut Interest-Income Outlook Amid Jump in Trading

  • Executives put blame on low interest rates, weak loan demand
  • Banks follow Citi, Wells Fargo in lowering NII expectations
Photographer: Christopher Dilts/Bloomberg
Updated on

The two biggest U.S. banks trimmed expectations for net interest income as low rates and tepid loan growth weigh on revenue.

JPMorgan Chase & Co.’s NII for 2020 will probably be $55 billion, down from an previous forecast of $56 billion, Chief Financial Officer Jennifer Piepszak said at a virtual investor conference Tuesday. Bank of America Corp.’s third-quarter figure will drop by about $600 million to $700 million, Chief Executive Officer Brian Moynihan said at the same event.