JPMorgan CFO Reportedly Expects Higher Interest Income This Year, But Sees Significant Uncertainty In Economic Outlook

JPMorgan Chase & Co. (JPM) reportedly expects to earn a higher interest income this year but has stopped short of changing its outlook on NII.

According to a Reuters report, the bank’s chief financial officer, Jeremy Barnum, told investors at the lender’s annual presentation that NII, or the difference between interest earned and expended, could rise by $1 billion this year.

However, he said it was too early to revise the full-year NII outlook of $94.5 billion.

"The evolving tariff environment, combined with the preexisting geopolitical tensions, adds significant uncertainty into the economic outlook,” Barnum said, according to the report.

During the first quarter, NII rose 1% to $23.4 billion. NII excluding Markets was $22.6 billion, down 2%, driven by the impact of lower rates, deposit margin compression, and lower deposit balances in Consumer and Community Banking (CCB).

Barnum’s skepticism about the economic outlook matches the Federal Reserve’s warning during the central bank’s May policy meeting.

“Uncertainty about the economic outlook has increased further. The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen,” the Federal Open Market Committee had said in its statement.

Barnum also said that the combination of inflation and large fiscal deficits may constrain the available policy responses in ways that further increase the risk.

The CFO also hinted that the bank is open to acquisitions as it remains flush with cash, but will be cautious.

According to the Reuters report, JPMorgan expects its net charge-off rate, or the percentage of credit card debt that will not be repaid, to be between 3.6% and 3.9% for 2026.

JPM shares gained over 10% in 2025 and over 35% in the past 12 months.

Also See: Fed’s Bostic Leans Toward One Rate Cut In 2025 On Inflation Worries, Says Trump Tariffs Will Take A ‘Bit Longer To Sort Out’

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