integration costs of 35 billion expected from first republic deal jpmorgan chase  co raised its netinterestincome guidance on monday by 3 billion to reflect the bump it will get from its takeover of first republic bank the bank is now expecting its 2023 net interest income nii to come to 84 billion up from 81 billion forecast in april thats well above the current factset nii consensus of 8083 billion the stock jpm fell 02 in monday morning trading to reverse an earlier intraday gain of as much as 18 the banking giant also said it still expects total integration costs associated with the purchase of first republics assets and the assumption of its deposits and certain liabilities to be about 35 billion were currently assuming that about half of the integration expense will be incurred this year as we continue integrating the first republic franchise said jeremy barnum chief financial officer at jpmorgan speaking at the annual investor day according to a factset transcript we expect to have choices about the service model which may result in higher expense all else equal barnum added that if expenses are higher they will also come with additional revenue he explained that the companys conservative approach to the deployment of the increase in liquidity resources during the pandemic era such as a big jump in deposits led to an increase in excess capital as jpmorgan chief executive officer jamie dimon always says barnum noted excess capital is just future earnings it is that excess capital the cfo said that allowed the bank to do the first republic deal at extremely attractive returns regarding concerns about deposit outflows into moneymarket funds following the recent collapse of several regional banks barnum said he expects systemwide deposits to continue to decline in light of these pressures its therefore important to reiterate our deposit strategy barnum said we will fight to keep primary banking relationships but we are not going to chase every dollar of deposit balances the stock has gained 36 in the year to date while the financial select sector spdr exchangetraded fund xlf has dropped 45 and the sp 500 has gained 94 this content was created by marketwatch which is operated by dow jones  co marketwatch is published independently from dow jones newswires and the wall street journal