Lake 'encouraged' by loan demand breadth despite lowered core growth target
On JPMorgan's Q2 earnings call, CFO Marianne Lake addressed the fact that the bank now expects 2017 net interest income to be "closer to $4B up rather than the previous $4.5B, but with a potential to be higher if we continue to benefit from tailwinds of lower deposit reprice." She added that "none of [this] changes our conviction that we will ultimately deliver $11B plus of incremental NII as rates normalize, and we are well on our way." Turning to the fact that the bank revised down its full year core loan growth view to 8% year-over-year, Lake said while "we are seeing slightly lower growth than we expected coming into the year, it is only modestly lower." She added that "more importantly, we remain encouraged by the consistency and breadth of client demand across products." In mortgage specifically, a smaller market and more competitive environment means fewer loans met the bank's hurdle rates, said Lake. The bank remains "appropriately focused on quality and not quantity of growth. And as such, loan growth is an outcome, not a target," added Lake.