Here are the key takeaways from JPMorgan Chase & Co.’s investor day Monday:
(Bloomberg) — Here are the key takeaways from JPMorgan Chase & Co.’s investor day Monday:
- The key number: The biggest US bank plans to make $84 billion from net interest income, raising its forecast from $81 billion, as JPMorgan expects First Republic to give it an even bigger boost from rising interest rates.
- The bank expects to see investment bank and market revenue drop 15% year-over-year in the second quarter. But it expects market volatility to increase later into the year, which is set to help markets revenue.
- CEO Jamie Dimon spoke in a far-ranging Q&A. He went into a lot of different subjects, but notably, he managed to talk about succession planning without offering any details about when he’d leave. He also talked about how he expects rates to go higher from where they are currently.
- Executives played up their plans to go deeper on private capital — especially private credit. And despite being the No. 1 investment or corporate bank in a number of categories, executives say there are still areas they can drill down into to become even more dominant.
- Doug Petno, who heads the commercial bank, spoke at length about their commercial real estate exposure and their moves into private credit. He emphasized that the bank is holding firm on its credit standards and it’s prepared for a number of rainy day scenarios across the business.
- Mary Erdoes spoke at length about the asset and wealth management business, mentioning that the unit opened some 40,000 accounts in the two months since March 10 — years’ worth of business crammed into just a few weeks.
- JPMorgan says the US economy is “doing fine” for now, but the bank sees “signs of deterioration.” Its economic models generally expect a “mild recession.”
- Bank executives touted gains from artificial intelligence, including $1 billion “in business value” through AI investments this year. It also sees “a number of use cases” with ChatGPT.
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