Higher interest rates should lift these lenders

Article Excerpt

The U.S. Fed has now increased its target interest rate three times in the last seven months, from a range of 0.5% to 0.75% to the current range of 1.00% to 1.25%. That’s good news for these three lenders: they will earn higher income on their loans. As well, due to stricter lending standards and an improving economy, more of their borrowers are repaying their loans on time. J.P. MORGAN CHASE & CO. $87 (New York symbol JPM; Income Portfolio, Finance sector; Shares outstanding: 3.6 billion; Market cap: $313.2 billion; Dividend yield: 2.3%; TSINetwork Rating: Average; www.jpmorganchase. com) is the largest banking firm in the U.S., with total assets of $2.5 trillion as of March 31, 2017. In the first quarter of 2017, Morgan’s earnings improved 16.8%, to $6.45 billion from $5.5 billion a year earlier. The company spent $2.8 billion on share buybacks in the quarter. As a result, earnings per share gained 22.2%, to $1.65 from $1.35. Revenue in the quarter rose…