JPMorgan raises its forecasts and relieves the banking sector on Wall Street | Photo credits: TK Kurikawa / Shutterstock.com
NEW YORK (Agefi-Dow Jones)–JPMorgan posted the biggest rise in the Dow Jones index Monday during Wall Street trading, after raising its forecast during a day of meetings with investors.
The bank revised its net interest income target for 2022 to $56 billion from more than $53 billion previously. The group’s cost target remains unchanged.
JPMorgan also maintained its return on capital employed (ROTCE) target at 17%, stating that it could be achieved this year. This announcement is considered good news by analysts, who had reduced their forecasts around 15%-16% in recent months.
The indications provided on this profitability ratio “are the big surprise of the day”, comments the Wells Fargo analyst, Mike Mayo, in a note to his clients.
The JPMorgan action gained 7.6% in response to these announcements, dragging in its wake Citigroup (+7.3%) and Bank of America (+6.5%). Goldman Sachs also wins 4.4%.
Wall Street confirms its tentative rebound approaching mid-session after its sharp decline last week. The Dow Jones gained 2.2% in session, the S&P 500 index rose by 1.9% and the Nasdaq Composite by 1.5%.
-Andrew Bary, Barron’s (French version Thomas Varela) ed: ECH
Agefi-Dow Jones The financial newswire