Tue Sep 10 15:07:59 UTC 2024: ## JPMorgan Stock Plunges as COO Warns of Lower Interest Income
**New York, NY -** Shares of JPMorgan Chase (JPM) plummeted by 6.2% in Tuesday morning trading after the bank’s president and chief operating officer, Daniel Pinto, cautioned that next year’s net interest income (NII) will fall short of analyst expectations. Pinto described the Visible Alpha consensus forecast of $90 billion for 2025 NII as “not very reasonable,” citing anticipated lower interest rates.
“We are not going to guide on that now, but the $90 billion is a bit too high,” Pinto stated at an industry conference. “Clearly, as rates go lower, you have less pressure on repricing of deposits, but as you know, we are quite asset sensitive.”
Pinto also tempered expectations for the bank’s investment banking and markets segments, forecasting a 15% increase in Q3 2024 investment-banking fees and a 2% rise in revenue from the markets segment. These figures fall below analyst predictions.
The decline in JPM stock comes amidst a broader retreat in shares of major US banks, although not to the same extent. This trend follows Federal Reserve Vice Chair for Supervision Michael Barr’s proposal to halve the capital hike for megabanks in a revised plan.
JPMorgan CEO Jamie Dimon has consistently affirmed that Pinto is fully prepared to take the reins in case of an emergency or a sudden leadership transition.
First Piper 