NEW YORK (Reuters) - JPMorgan Chase & Co (JPM.N) lowered its outlook for 2019 net interest income by about $500 million on Tuesday, following similar moves by rival big banks Wells Fargo & Co (WFC.N) and Citigroup Inc (C.N).
“Our (net interest income) will be a little bit lower than we told you last time,” Chief Executive Officer Jamie Dimon said at Barclays’ Financial Services Conference in New York. “I think we told you $57.5 (billion) and I’m closer to $57 (billion) for this year.”
That is a lower forecast for full-year net interest income than the bank gave in mid-July and it shows that banks with large pools of customer deposits are struggling to make as much money amid lower interest rates and an inverted yield curve.
On Monday, top brass from Citi and Wells Fargo tempered their outlooks for net interest income.
Citi now expects net interest income to be up 3% to 4% for the year, compared with prior guidance of 4% growth.
Wells Fargo lowered its projections for the second time this year. The bank’s chief financial officer said it expects net interest income to fall 6% in 2019, compared with 5% stated previously.
Dimon also said JPMorgan Chase expects third-quarter trading revenues to be 10% lower than in the second quarter, while fees from mergers and acquisitions will likely be flat in comparison with the prior quarter.
Reporting By Elizabeth Dilts; Editing by Chris Reese and Dan Grebler