JPMorgan Chase & Co posted another quarter of record net interest income and boosted its forecast for the year as the company benefits from higher interest rates and its purchase of First Republic Bank.
The third-quarter reports offer the latest look at how US consumers and businesses are faring as the Federal Reserve leaves borrowing costs higher for longer than most economists had predicted.JPMorgan’s NII was $US22.9 billion in the three months through September 30, above analysts’ expectations. The bank said it now expects to generate $US88.5 billion from the revenue source this year.
Friday also kicks off the first round of bank earnings since US regulators proposed a new set of capital rules that would force the eight largest lenders to boost the amount they set aside by about 19 per cent.The proposed rules would increase JPMorgan’s risk-weighted assets by 30 per cent, or $US500 billion, and triple the required capital for operational risk, it said in an earnings presentation that devoted two slides to the matter.
Under the proposals, banks with at least $US100 billion in assets would have to boost the amount of capital set aside by an estimated 16 per cent. The eight largest banks face about a 19 per cent increase, with lenders between $US100 billion and $US250 billion in assets seeing as little as 5 per cent more.earned $US13.1 billion in NII — revenue collected from loan payments minus what depositors are paid — in the three months through September, up 8.