JPMorgan Expects New Profit Record With Help From Trump, the Fed

Tax overhaul seen increasing ROTCE up to 3 percentage points
Bank says higher rates may fuel $7 billion pretax profit boost

JPMorgan says profits could rise by $7 billion in coming years. Bloomberg Intelligence’s Alison Williams reports. (Source: Bloomberg)

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By Hugh Son

February 27, 2018 at 12:29 PM UTC

Updated on

February 27, 2018 at 6:03 PM UTC

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JPMorgan Chase & Co. is the most profitable bank in U.S. history. It expects to keep that title with help from the Fed and Donald Trump.

Higher U.S. interest rates engineered by the Federal Reserve and lower corporate taxes spearheaded by the Trump administration translate into about $7 billion more in pretax profit in coming years, JPMorgan said Tuesday in a presentation. Annual earnings may jump by a third from last year’s high point, based on the lender’s forecasts.