当天，小摩总裁兼首席运营官平托（Daniel Pinto）在一场行业会议上表示，外部分析师对该行明年支出和净利息收入的预测过于乐观。① President and Chief Operating Officer Pinto of Xiaomo said at an industry conference that external analysts are too optimistic about the bank's expenditure and net interest income next year; ② Last year, due to high central bank interest rates, the net interest income of the four major US banks all set records. However, as the Federal Reserve is likely to cut interest rates several times in the next few months, Pinto said that this favorable factor is weakening.
Financial Services Association, September 11 (Editor Zhao Hao) On Tuesday (September 10), the stock price of J.P. Morgan Chase, the bank with the highest market capitalization in the world, once fell more than 7%, hitting the worst single-day performance since 2020, dragging down the overall decline of Bank of America stocks. Goldman Sachs fell nearly 5%, and Citi fell more than 4%.
J.P. Morgan Chase stock price daily chart
On the same day, Xiaomo President and Chief Operating Officer Daniel Pinto (Daniel Pinto) said at an industry conference that external analysts are too optimistic about the bank's spending and net interest income next year.
Pinto mentioned that the outside world's net interest income (NII) figure for Xiaomo is 89.5 billion US dollars. Considering interest rate expectations, this figure is “unreasonable”, and the actual data will be lower than this.
This statement reinforces analysts' pessimistic expectations for big banks in the US. Goldman Sachs CEO David Solomon said yesterday that Goldman Sachs's transaction revenue for the third quarter is expected to drop 10%.
Small banks' expectations were similarly bleak. Ally Financial said auto loan defaults and net write-off rates exceeded expectations. As of press release, Ally Financial, which is currently trading, has fallen by more than 19%, which is expected to refresh its biggest decline since the COVID-19 outbreak began.
The net interest income mentioned by Pinto refers to the net amount of interest income obtained from bank loans minus interest expenses. Last year, due to high central bank interest rates, the net interest income of the four major US banks all set records.
However, as the Federal Reserve is likely to cut interest rates several times in the next few months, Pinto said that this favorable factor is weakening. According to the Komo Q2 performance report, the bank's net interest income for the quarter was 22.9 billion US dollars, which fell short of analysts' expectations.
Pinto also pointed out that spending expectations for 2025 are also too optimistic. Investment banking expenses are likely to rise 15% in the third quarter, and market revenue will only increase by 2% — all below analysts' expectations, putting more pressure on stock prices.
For mergers and acquisitions, Pinto expects revenue to be “generally flat.” Pinto has been president of J.P. Morgan Chase for almost three years. CEO Jamie Dimon has said that Pinto is ready to take over as CEO in case of an emergency or accelerated handover.
Earlier in the year, Pinto handed over day-to-day control of the company's Wall Street business to Jenn Piepszak and Troy Rohrbaugh to add to the experience of potential candidates for CEO.
