Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Access the Market Tools Trusted by Thousands of Investors Get Started
JPMorgan president says loan demand declining, US economic slowdown weighs
Published Jun 02, 2023 12:30PM ET
Updated Jun 02, 2023 12:35PM ET
© Reuters. FILE PHOTO: Daniel Pinto, President and chief operating officer of JPMorgan Chase & Co, attends the Global Financial Leaders' Investment Summit in Hong Kong, China November 2, 2022. REUTERS/Tyrone Siu
By Nupur Anand and Lananh Nguyen
NEW YORK (Reuters) - JPMorgan Chase & Co (NYSE:JPM)'s President and Chief Operating Officer Daniel Pinto said loan demand is declining at a time when regional and small banks are also tightening credit.
"There is no doubt that regional banks and smaller banks are building up liquidity, building capital, so they are lending a bit less," Pinto told investors on Friday. "I don't think that the big banks have really changed their lending standards... there is not a huge amount of loan demand in the first place."
Consumption remains positive, but there are some indications the economy is slowing, Pinto said. He expected the Federal Reserve to raise rates further.
"Likely the Fed will get to run towards 5.5% and then they will pause" to assess whether efforts to curb inflation have succeeded, Pinto said. If inflation accelerates further, the Fed could raise rates 50 basis points with a series of smaller rate hikes, he said.
There will be a "recession at some point," Pinto said. "But I don't see for the moment, a crisis. It's just a slowdown in the economy," he said.
Pinto joined rivals in warning the slowing economy and uncertain outlook will make this year tough for investment banking, but he stressed JPMorgan will keep investing in mergers and acquisitions.
JPMorgan's revenue for investment banking and trading are expected to decline 15% in the second quarter, Pinto said last month at the bank's annual investor day.
Uncertainty and increased market volatility as central banks approach the end of their monetary tightening cycles have dented investment banking demand.
Rival Goldman Sachs (NYSE:GS) has said its dealmaking and trading revenue may slide by 25% in the second quarter, leading to job cuts.
Andy Saperstein, co-president of Morgan Stanley (NYSE:MS), warned on Wednesday that trading results will be "notably down" in the second quarter versus a year earlier, while "investment banking is also very challenged."
Bank of America Corp (NYSE:BAC) expects investment banking fees and trading revenue to be broadly flat this quarter.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.