Shares of JPMorgan Chase, the biggest US bank by revenue and market capitalisation fell 6.5% on Friday after issuing a disappointing Net Interest Income guidance for 2024.
This was the biggest single-day drop for the stock since June 11, 2020.The 6.5% drop resulted in the lender shedding over $36 billion in its overall market capitalisation.
As of Friday's close, JPMorgan Chase had a market cap of $525 billion, down from the $561 billion it had on Thursday.This $36 billion fall equals to nearly ₹3 lakh crore.
This is almost equal to the entire market capitalisation of private lender Kotak Mahindra Bank Ltd. As of Friday's close, the market capitalisation of Kotak Mahindra Bank stood at ₹3.6 lakh crore.
However, both fixed income and equities segment topped analyst expectations by $100 million each.JPMorgan’s guidance on net interest income “strikes us as ultra-conservative,” Piper Sandler analyst R Scott Siefers wrote in a note to clients.
Shares of JPMorgan Chase, the biggest US bank by revenue and market capitalisation fell 6.5% on Friday after issuing a disappointing Net Interest Income guidance for 2024. This was the biggest single-day drop for the stock since June 11, 2020.The 6.5% drop resulted in the lender shedding over $36 billion in its overall market capitalisation. As of Friday's close, JPMorgan Chase had a market cap of $525 billion, down from the $561 billion it had on Thursday.This $36 billion fall equals to nearly ₹3 lakh crore. This is almost equal to the entire market capitalisation of private lender Kotak Mahindra Bank Ltd. As of Friday's close, the market capitalisation of Kotak Mahindra Bank stood at ₹3.6 lakh crore. It is also equivalent to stocks like Tata Motors, whose market capitalisation as of Friday, stood at ₹3.38 lakh crore.Shares of JPMorgan Chase fell after it did not revise its Net Interest Income forecast higher for 2024, leaving it unchanged at $90 billion. Analysts and consensus estimates expected the lender to raise that forecast by $2 billion to $3 billion.Trading revenue for the biggest US bank, even by assets fell 5% from the year ago period. However, both fixed income and equities segment topped analyst expectations by $100 million each.JPMorgan’s guidance on net interest income “strikes us as ultra-conservative,” Piper Sandler analyst R Scott Siefers wrote in a note to clients. “The unchanged outlook will disappoint investors a bit and could weigh on the stock.” Still, it “now leaves room to be revised upward later.”Besides JPMorgan, Wells Fargo also missed estimates on the Net Interest Income front, a sign that muted loan growth and the pressure to pay more for deposits are offsetting the benefits of higher rates.
