JPMorgan Chase & Co published a presentation ahead of its investor day on Monday in which it claimed that its net interest income would rise by $3 billion this year following the acquisition of the failed First Republic Bank.
Shut down last month, First Republic Bank is in the process of being integrated into JPMorgan; a process that is expected to take 12 months. The purchase saw JPMorgan receive $173 billion of the failed bank’s loans, $30 billion of securities, and $92 billion of deposits.
Currently the largest lender in the U.S., JPMorgan expressed optimism regarding the purchase, particularly given the large influx of incoming deposits by investors who sought the safety of large, established banking institutions.
First Republic Bank was the third major U.S. bank to collapse since March in what has been a sector-wide crisis. In addition to applying additional pressure to mid-sized banks and sending financial stocks tumbling, this instability had added to concerns of an impending recession.