JPMorgan sees Q1 net interest income flat

JPMorgan Chase said in its annual report that it expects its Q1 net interest income to be flat compared with the prior quarter. Firmwide adjusted expense for the first-quarter 2019 is expected to be up mid-single digits compared with the first quarter of 2018. Markets revenue for the first-quarter 2019 is expected to be lower when compared with the prior-year quarter by high teens percentage points on a reported basis, and by low double-digit percentage points excluding the impact of the recognition and measurement accounting standard in the first quarter of 2018, depending on market conditions. Management expects full-year 2019 net interest income, on a managed basis, to be in excess of $58B, reflecting the annualized impact of 2018 interest rate increases, as well as expected loan and deposit growth. The Firm takes a disciplined approach to managing its expenses, while investing for growth and innovation. As a result, management expects Firmwide adjusted expense for the full-year 2019 to be less than $66B. The Firm continues to experience charge-off rates at very low levels, reflecting favorable credit trends across the consumer and wholesale portfolios. Management expects full-year 2019 net charge-offs to be less than $5.5B, higher than 2018, driven by growth.

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