- JPMorgan surged 8% on Monday after the company raised its 2022 net interest income guidance.
- JPMorgan CEO Jamie Dimon spoke about consumer strength and said the economy could avoid a hard landing on annual Investor’s Day.
- Dimon’s bullish remarks helped boost other bank stocks significantly in Monday’s trading.
JPMorgan’s share price surged 8% on Monday after the bank’s annual Investors’ Day when CEO Jamie Dimon made positive comments about consumers.
The nation’s largest bank told investors on Monday it expects net interest income in 2022 to reach at least $56 billion, up $3 billion from previous guidance. Nevertheless, earnings guidance has increased thanks to being considered a very strong consumer. Constant rise in interest rates and high inflation.
“The storm clouds on the horizon may disappear, but they may not,” Dimon said in JPMorgan’s first-quarter earnings report last month. Today, Dimon reiterated that view, but highlighted the fact that these “storm clouds” may actually dissipate and not cause as much trouble as in 2008.
Jamie Dimon says the US economy remains strong and potential obstacles to growth remain unsettled.
“Strong economy, big storm clouds. We call them storm clouds because they are storm clouds. They can disappear. If it was a hurricane, I would say so,” Dimon said. and if
It will ultimately be realized in the economy, according to the company, but will differ from others thanks to a very powerful consumer.
JP Morgan’s credit outlook is strong enough for 2021 net amortization to hit an all-time low of 0.30%. The bank expects net amortization to rise back to pre-pandemic levels in the future, but said “strong consumer and wholesale balance sheets will delay normalization.” After 2022,” the bank said.
“Despite recent mixed data, the US economy remains fundamentally strong. [While] Recent developments have increased the risk of adverse outcomes in the future, [our] The Fortress Principle is designed to withstand any operating environment,” the company said.
JP Morgan’s positive comments helped boost stocks in the broad financial sector and other large banks during Monday’s trading. The financial sector rose 3.5%, while Morgan Stanley, Bank of America and Citigroup rose 4%, 6% and 7%, respectively.