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The
bank projected that returns on tangible common equity (ROTCE), a
key profit measure for how well banks use shareholder money,
will be 17 percent, the same as last year.
Several analysts expected the bank to raise its target as bank
executives have shown confidence so far this year about the
bank's competitive position and the macro economic conditions.
The slide presentation, posted before the conference started,
showed that JPMorgan's outlook dimmed for profits from its
Corporate & Investment Bank. It now expects return on equity of
16 percent, down from the 17 percent target a year ago. The
investment bank provided one-third of JPMorgan's revenues in
2018.
The outlook for the Asset & Wealth Management business took a
worse turn. The bank expects a 25 percent-plus return on equity
in the medium term, down from a target of 35 percent set a year
ago. The prior target had been increased from 25 percent two
years ago.
Asset managers have been faced with pressure on fees from
competitors and index-based automated investing. For JPMorgan,
the business accounted for about 13 percent of revenues last
year.
Targeted return on equity remained unchanged at 25 percent for
the Consumer & Community Banking segment, and 18 percent for the
Commercial Banking segment.
(Reporting By Elizabeth Dilts, Aparajita Saxena and David Henry;
Editing by Anil D'Silva and Jeffrey Benkoe)
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