JPMorgan Chase lifts annual interest income forecast

The mega bank lifted its forecast for interest income for the year in a presentation to investors, and the shares of JPMorgan Chase Co. went up more than 5% on Monday.

The nation's largest lender now expects to have $56 billion in net interest income excluding markets in 2022, after saying in January that it expected the figure to be $50 billion.

The bank anticipates high single-digit loan growth with credit card revolving balances approaching pre-pandemic levels, as the Federal Reserve raises short-term interest rates up to 3% by the end of the year.

The firm said recently developments have increased the risk of a future adverse outcome, and that the U.S. economy remains strong despite recent mixed data. JPMorgan said net charge-offs for bad loans are at historic lows but it expects charge-offs to return to pre-pandemic levels over time. The bank said that it could achieve a 17% return on tangible capital equity ROTCE in 2022, and left its expense outlook unchanged at $77 billion.