JPMorgan ‘may not fare as well’ with lower rates, says Wells Fargo

Wells Fargo analyst Mike Mayo says JPMorgan “benefited among the best” with higher rates and “may not fare as well” with lower rates, as reflected by the bank’s lower than consensus FY25 net interest income, or NII, guidance. The firm, which sees a 17% ROTCE as “at risk” next year, even while JPMorgan “remains best-in-class,” lowers its Q3 and FY24 EPS estimates by 5c to $3.87 and $18.00, respectively, due to lower trading revenue and NII. The firm lowers its FY25 and FY26 EPS forecasts by 60c each to $16.40 and $17.80, respectively, the analyst added.