JPMorgan aims to accumulate 15% of US consumer deposits and increase credit card share

Item 1 of 2 Marianne Lake, CEO of Consumer and Community Banking, poses for a portrait at JPMorgan Headquarters in New York City, USA on July 2, 2024. Reuters/Kent J. Edwards

(1/2) Marianne Lake, CEO of Consumer and Community Banking, poses for a portrait at JPMorgan headquarters in New York City, USA on July 2, 2024. Reuters/Kent J. Edwards purchases license rights, opens in new tab

NEW YORK, July 11 (Reuters) – America’s biggest banks want to get even bigger.

JPMorgan Chase & Co. (JPM.N) opens in a new tab has set an ambitious goal of attracting 15% of domestic consumer deposits, said Marian Lake, head of consumer and community banking. The company’s CEO told Reuters in an interview at its New York headquarters.

At the end of June 2023, the most recent data available, the bank had an 11.3% share of U.S. retail deposits.

The lender also aims to make credit cards account for 20% of national spending, up from the current 17%.

“Market share is a matter of inches, and it’s a very strong game,” Lake said. “We don’t have a specific timeline, but our strategy is to get there,” she said.

The company’s U.S. retail deposits were worth $1.1 trillion at the end of the first quarter.

Including wholesale deposits, the bank had $1.96 trillion in deposits in the first quarter, up from $1.95 trillion in the year-ago period, but compared to its closest rival Bank of America (BAC.N ) had $1.82 trillion in deposits at the end of the first quarter.

“We continue to build our capabilities to compete and win, leveraging AI, payments and other business strategies and investing in modernizing our infrastructure and data,” Lake said. This investment “ensures that we remain a leader five and 10 years from now.”

Last year, JPMorgan acquired the bankrupt financial firm First Republic, adding $92 billion in deposits. The acquisition comes after a series of bank failures that caused turmoil in the industry, but has since subsided.

Banks that already hold more than 10% of U.S. deposits are not allowed by federal law to grow through acquisitions, except for failed banks. At the time of First Republic’s acquisition, critics worried that JPMorgan was allowed to expand even though the purchase price met government standards for extracting the lowest cost from the deposit insurance fund. expressed.

“If it’s important to the ecosystem, we’ll intervene again,” Lake said, adding that he didn’t want another bank failure.

CEO successor

JPMorgan is scheduled to release its financial results on Friday. Investors and analysts will be watching closely for any comments regarding the company’s CEO succession plans. Lake has been nominated by the bank’s board of directors to succeed Jamie Dimon, who has served as CEO since 2006.

While Wall Street banks have made some progress on diversity, Citigroup (CN) opens a new tab. CEO Jane Fraser is the only woman to lead one of the nation’s six largest banks. be.

JPMorgan’s other potential CEO candidates include Jennifer Piepsak and Troy Rohrbaugh, co-CEOs of commercial and investment banking, and Mary Erdoes, who heads asset and wealth management. It is said that

Asked if it was possible that a woman would succeed Dimon, Lake said, “It depends on the facts and the circumstances at the time, but it’s certainly possible that the next CEO of JPMorgan will be a woman.” .

Mr. Dimon has been vocal about proposed regulations that would increase capital requirements for banks. Mr. Lake also challenged rule changes by the Consumer Financial Protection Bureau, including an $8 cap on credit card late fees and a cap on overdraft fees.

“Providing access to valuable and secure banking services comes at a significant cost,” Lake said. “These proposed changes could impact the ability of banks of all sizes to continue offering these services at current interest rates.”

JPMorgan’s consumer business reported revenue of $17.6 billion in the first quarter, accounting for the largest portion of the company’s total revenue of $41.9 billion.

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Reporting by Nupur Anand and Ranan Nguyen in New York. Editing: Jamie Freed

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Nupur Anand is Reuters’ U.S. banking correspondent in New York. She focuses on JPMorgan Chase, Wells Fargo, and regional banks. Mr. Anand has covered Indian banking and finance for more than a decade, documenting the collapse of major financial institutions and the turmoil of digital banks and cryptocurrencies. She holds a degree in English Literature from the University of Delhi and a postgraduate degree in Journalism from the Indian Institute of Journalism and New Media, Bangalore. Anand is also an award-winning fiction writer.

Lanan Nguyen is the U.S. finance editor for Reuters in New York, where he leads coverage of U.S. banks. She joined Reuters in 2022 after reporting on Wall Street for the New York Times. Lannan spent more than a decade at Bloomberg News in New York and London, where he wrote extensively about banking and financial markets, and previously worked at the Dow Jones Newswires/Wall Street Journal. Lannan holds a bachelor’s degree in political science from Tufts University and a master’s degree from the same university. in Finance and Economic Policy from the University of London.

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