© Reuters. FILE PHOTO: JPMorgan Chase Bank is seen in New York City, US, March 21, 2023. REUTERS/Caitlin Ochess
NEW YORK (Reuters) – JPMorgan Chase & Co.’s net interest income will rise by $3 billion this year because of its failed purchase. First Republic Bank (OTC:), according to a presentation posted ahead of Investor Day on Monday.
The largest bank in the United States agreed to register $173 billion in failed bank loans, $30 billion in securities and $92 billion in deposits after the First Republic was shut down by authorities earlier this month.
The Wall Street giant is in the process of merging First Republic, which will likely take about 12 months.
JPMorgan (NYSE: ) said it remains bullish about buying as it emerged as one of the biggest beneficiaries of the recent banking crisis due to an influx of deposits from customers who sought safety in larger institutions.
The First Republic was the third US regional lender to fail since March in sector-wide turmoil that roiled financial stocks, deepening fears of a crisis and putting pressure on mid-sized banks.
JPMorgan said it expects expense growth to be in low-to-mid single digits over the medium term and has re-set its target of 17% for return on tangible common stock — a key metric that measures how well the bank uses shareholder money to generate profit.
