JPMorgan stock drops after President Pinto's cautious comments

Shares of JPMorgan Chase & Co (NYSE:JPM ) fell Tuesday following comments made by the bank's President and COO, Daniel Pinto, regarding the outlook for net interest income (NII).

According to Reuters, Pinto stated that market expectations around NII have been "very high." In response, JPMorgan shares fell more than 4%.

Speaking at a Barclays conference, Pinto noted that the U.S. economy and the consumer sector are still performing well, with the number of consumers revolving credit remaining lower than pre-pandemic levels. 

Pinto also highlighted opportunities for growth within the consumer business, particularly in the premium segment and auto loans. He emphasized that wealth management is a key focus area for the bank's overall consumer business strategy.

Moreover, he mentioned that the international retail business has been growing better than expected and that there are plans to expand this segment into the rest of Europe eventually.

Investments in human resources were also on the agenda, with Pinto revealing that the bank is hiring more bankers in corporate and investment banking. He predicted a solid quarter in investment banking and expected investment banking fees to increase by approximately 15% in Q3.

Furthermore, he described the performance in capital markets during Q3 as very solid, although he projected that M&A volume would be flat in volume.

Lastly, Pinto addressed the financial outlook, stating that Q3 markets revenue is anticipated to be flat to up about 2% year-over-year. However, he also cautioned that expenses "could inch up higher."

Source: Investing.com