JPMorgan believes 17% ROTCE for 2025 ‘more challenging,’ says Barclays

After Daniel Pinto, President and COO of JPMorgan, presented at the firm’s conference, Barclays noted that the executive said JPMorgan expects Q3 trading revenues to be flat to up about 2%, driven by strength in equities, offset by weaker FICC, particularly in rates. Pinto also reiterated that the bank’s 2024 net interest income, or NII, is still on track to be about $91B, but for 2025, the executive noted that consensus NII of $90B is too high and it would expect it to be lower due to the lower rate outlook and its asset sensitivity. JPMorgan is confident it can deliver a 17% ROTCE through the cycle with some years higher and some years lower, noting that for 2025 it believes a 17% ROTCE could be “more challenging,” added the analyst. The firm keeps an Overweight rating and $217 price target on JPMorgan shares, which are down about 7% to $202.22 in Tuesday afternoon trading.