JPMorgan sees medium-term ROTCE of about 17%
In slides ahead of its 2018 Investor Day presentation, JPMorgan said it expects medium-term ROTCE of about 17%, CET1 ratio of 11%-12%, 55% overhead ratio and 100% net payout ratio. The bank sees U.S. credit, debit card spending over 5% per year for the next five years. Current economic and fiscal indicators suggest low risk of a near-term recession, the bank said. U.S. consumer balance sheet remains relatively healthy, consumer debt service burdens near record lows given low interest rates, Corporate debt ratios near a 20-year high -- however, interest coverage ratios remain within normal range due to continued low rate environment. Says global GDP growth continues to be "above trend," consumer and business confidence, as well as sentiment, remain very strong, developed markets close to full employment, which should drive higher wages and inflation.