(Reuters) -JPMorgan Chase & Co on Monday presented a more optimistic profit outlook for itself as it opened an investor conference to relieve worries that it might be starting to lose its edge.
JPMorgan, the biggest U.S. bank by assets, posted presentation slides shortly after dawn in which it affirmed target for a 17% return on tangible capital equity (ROTCE) and said it may be achieved in 2022.
ROTCE is a key metric which measures how well a bank uses shareholder money to produce profit.
The bank also said it expected net interest income (NII), excluding markets, of $56 billion in 2022 and kept its expense forecast for the year unchanged at $77 billion.
JPMorgan scheduled the meeting, which starts at 8 a.m. in New York, after a 6% one-day drop in its stock in January when it said it would allow expenses to increase 8%, or $6 billion, this year as it funded business investments that it did not persuasively justify to investors.
Since then JPMorgan boosted its outlook for net interest income that could cover more of the new spending, last saying that NII outside of its market business could reach a “couple billion” more than $53 billion in 2022, up from its $50 billion January outlook.
(Reporting by David Henry in New York and Niket Nishant in Bengaluru; Editing by Shounak Dasgupta)
