“`html
JPMorgan Chase & Co. (JPM) is set to experience pressure on its net interest income (NII) due to expected Federal Reserve interest rate cuts, managing an anticipated NII of nearly $95.5 billion for 2025, up from a previous guidance of $94.5 billion. The bank aims to open over 500 branches by 2027 and has increased its quarterly dividend by 7% to $1.50 per share following its successful stress test.
PNC Financial Services (PNC) expects to see a 7% year-over-year increase in NII in 2025, supported by its growth strategy and enhancements to its branch network, which includes plans to invest $1.5 billion for more than 200 new branches. PNC also raised its quarterly dividend by 6% to $1.70 per share after passing the stress test, despite facing challenges with its expense base and loan diversification.
Year-to-date, shares of JPMorgan and PNC have gained 22.9% and 6%, respectively. In terms of valuation, JPM is trading at a forward P/E of 14.68X, whereas PNC is at 12.19X, indicating PNC trades at a discount relative to both JPM and the industry average of 14.44X.
“`
