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By Nupur Anand, Tatiana Bautzer and Manya Saini
NEW YORK (Reuters) -JPMorgan Chase investment banking fees are expected to rise by 45% in the fourth quarter over a year ago, Marianne Lake, the bank's CEO of consumer and community banking, said on Tuesday.
Trading fees are likely to jump by 15% in the fourth quarter, she told investors at the Goldman Sachs Financial Services conference in New York.
In the third quarter, investment banking fees surged 31%, more than double the previous 15% guidance. Lake also expects net interest income - the difference between what the bank earns on loans and pays on deposits - to be higher by $2 billion compared with estimates.
"The rate outlook has firmed up on average, about 40 basis points higher in 2025 than it was earlier," Lake said, while noting that there are "plenty of caveats about the fact that these things can change pretty quickly."
"Our 2025 NII, we're expecting it to be about $2 billion higher," she added.
JPMorgan shares spiked following the upbeat comments, rising as much as 1.7% before paring gains. The shares were last flat in afternoon trading, in line with choppy trading in the broader equity market
In September, JPMorgan had warned that the expectations around NII were overly optimistic, which had tempered growth expectations.
The expenses outlook for next year is also expected to be slightly better than estimates.
Gains in investment banking and rising interest payments helped JPMorgan post a third-quarter profit that beat expectations.
U.S. consumer finances have been fairly resilient in recent quarters, and there are signs that holiday spending by consumers has strengthened, Lake said.
Deposit growth is expected to be modest in 2025 while a strong recovery in the mortgage market is unlikely, she added.
Lake is a potential candidate to succeed CEO Jamie Dimon, who has run JPMorgan since 2006. Other contenders include Jennifer Piepszak and Troy Rohrbaugh, co-CEOs of JPMorgan's commercial and investment bank, and Mary Erdoes, who heads the asset and wealth management businesses.
(Reporting by Nupur Anand and Tatiana Bautzer in New York and Manya Saini in Bengaluru; Editing by Leslie Adler)
