On Friday, JPMorgan is scheduled to release its profits.
America’s biggest bank, JPMorgan Chase is aspiring to grow bigger. In an interview with Reuters at the company’s New York headquarters, Marianne Lake, CEO of JPMorgan Chase’s consumer and community banking division, revealed the bank’s lofty target of obtaining 15% of the nation’s consumer deposits.
According to the most recent data available, as of June 2023, the bank has an 11.3% share of retail deposits in the United States.
Additionally, the lender hopes to offer credit cards that make up 20% of all purchases made in the country, up from the existing 17%.
“Market share is a game of inches, and it is a very powerful game,” Lake stated. “While we are not putting any timeline on it, our strategies are geared towards achieving it,” she stated.
After the first quarter, its retail deposits in the United States were valued at $1.1 trillion. The bank’s total deposits, including wholesale deposits, increased to $1.96 trillion in the first quarter from $1.95 trillion the previous year. At the same time, its nearest competitor, Bank of America, had $1.82 trillion at the end of the same period.
“We are continuing to build our capabilities to compete and win and investing in modernizing our infrastructure and data, leveraging AI, payments and other business strategies,” Lake stated. The expenditures “will ensure that we continue to be the leader even five to 10 years from now.”
By acquiring the bankrupt institution First Republic last year, JPMorgan increased its deposit base to $92 billion. Following a string of bank failures that caused turmoil in the sector, which has subsequently abated, the purchase was made.
Federal law prohibits banks, with the exception of failing banks, from expanding through acquisitions if they already hold at least 10% of U.S. deposits. Critics expressed alarm at the time of the First Republic acquisition that JPMorgan was permitted to grow, despite the fact that the acquisition price satisfied the government’s requirement to take the least expensive option from a deposit insurance fund.
Lake stated, “If it’s important to the ecosystem, we would step in again,” but she did not think there would be any more bank failures.
On Friday, JPMorgan is scheduled to release its profits. Analysts and investors will be keeping an eye out for any remarks regarding its plans for the CEO succession. The bank’s board has identified Lake as a possible replacement for Jamie Dimon, the CEO, who has held the position since 2006.
Even while Wall Street firms have made progress in promoting diversity, Jane Fraser, the CEO of Citigroup, is the only female leader among the top six banks in the country.
The firm’s board has identified Mary Erdoes, who oversees the asset and wealth management divisions, and Jennifer Peipszak, who co-leads the commercial and investment bank, as possible candidates for CEO of JPMorgan.
When asked if a woman is likely to succeed Dimon, Lake said, “It will depend on facts and circumstances at the time, but sure, the next JPMorgan CEO could be a woman.”
Dimon has been vocal about regulatory proposals that would raise capital requirements for banks. Lake also took issue with rule changes, including the Consumer Financial Protection Bureau’s $8 limit on late payment fees for credit cards, and a cap on overdraft fees.
“There are significant costs to providing access to valuable and secure banking services,” Lake said. “These proposed changes could impact the ability for banks of all sizes to continue to offer these services at the current rates.” The consumer division of JPMorgan generated $17.6 billion in sales in the first quarter, accounting for the largest portion of the company’s $41.9 billion in overall revenue.
