JPMorgan Forecasts $104.5B NII, Boosts Dividend 7% and Hires Mid-Cap M&A Head
JPMorgan forecasts 2026 net interest income of $104.5B, a 9% increase from 2025, while shares have fallen 5.2% over six months. The bank cleared the Fed stress test, boosted its quarterly dividend 7% to $1.50, retains $33.8B in its $50B buyback program, and hired Firdaus Pohowalla to lead mid-cap M&A.
1. 2026 Net Interest Income Outlook
JPMorgan projects net interest income of $104.5 billion in 2026, up 9% from $95.9 billion in 2025, driven by expected loan growth, repricing of assets and gradual funding cost reductions.
2. Capital Returns and Liquidity Position
After clearing last year’s Federal Reserve stress test, the bank raised its quarterly dividend by 7% to $1.50 per share and maintains $33.8 billion in remaining share repurchase authorization under its $50 billion program, supported by robust liquidity.
3. Stock Performance and Valuation
JPMorgan shares have declined 5.2% over the past six months and currently trade at a 12-month trailing price-to-tangible book multiple of 2.86x, while consensus earnings estimates have been raised to $21.73 for 2026 and $23.40 for 2027.
4. Mid-Cap M&A Banking Expansion
The firm hired Firdaus Pohowalla as a managing director to strengthen its North America mid-cap mergers and acquisitions team, aiming to expand advisory capabilities and capture higher deal flow in the segment.