JPMorgan Chase Adjusts 2025 NII Forecast Amid Strong Q2 Performance

JPMorgan Chase has raised its net interest income (NII) forecast for 2025, riding on a successful second quarter driven by its investment banking and trading sectors. The bank's revised expectation is now set at $95.5 billion, up from an earlier projection of $94.5 billion. This reflects the resilience of the U.S. economy during the quarter.

In a statement, CEO Jamie Dimon highlighted positive prospects for the economic outlook thanks to tax reform and potential deregulation. However, he warned of significant risks posed by geopolitical tensions, fiscal deficits, and high asset prices. Investors are particularly focused on banks' performance and guidance to gauge the impacts of recent U.S. tariff policies and tax laws.

The period saw heightened market activity as investors reacted to changing tariff policies, enhancing JPMorgan's trading revenue by 15%, reaching $8.9 billion, with a notable rise in fixed income and equities. Investment banking fees also increased by 7%, driven by a rise in IPOs and mergers. Despite a profit of $14.99 billion, comparisons with the previous year were influenced by a substantial one-off gain in a share exchange with Visa.

(With inputs from agencies.)