Citi: JPMorgan's 2027 net interest income outlook beats expectations, rating "Neutral"

Citi issued a research report stating that JPMorgan's third-quarter core pre-provision net revenue came in about 7 cents below market expectations; net interest income was slightly better than expected, while core fee income fell short of expectations, mainly dragged down by a $658 million securities loss reflected in the corporate segment, with the expense base well managed. Corporate and investment banking was in line with expectations, with strong equity trading beating expectations, but offset by a similar magnitude of underperformance in fixed income trading. Management's 2027 net interest income outlook is $107 billion, above market expectations of about $102.5 billion. The CET1 ratio fell 20 basis points to 13.9%, with about $1.1 billion in buybacks during the period. Citi rates JPMorgan "Neutral" with a target price of $360.