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JPMorgan's (JPM) Chase UK Likely to Break Even in 12-18 Months
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JPMorgan Chase’s (JPM - Free Report) president and COO, Daniel Pinto, has said at a conference that he expects the digital retail bank, Chase, in the U.K. to break even in the next 12-18 months. The new timeline is at least two years ahead of the previously mentioned one.
At an investor day in May 2022, Sanoke Viswanathan, the chief executive of JPM’s international growth initiatives, had said that Chase UK would lose $450 million or a similar amount for the next few years and then break even by 2027 or 2028, thereafter generating significant income.
Notably, JPM entered the U.K. market with the launch of its digital-only consumer bank under the Chase brand in September 2021. Since then, it has attracted more than 1.6 million customers, and has processed more than 90 million card and payment transactions.
Referring to Chase UK, Pinto said at the conference, “We have acquired around two million customers. A big percentage of those are fairly actively engaged, and we have nearly $20 billion in terms of deposits.”
Pinto added that Chase UK has been doing better than expected and JPM plans to grow in other global consumer markets over time.
In July 2023, JPMorgan’s CEO, Jamie Dimon, announced plans to expand the digital retail bank to Germany and other European Union (“EU”) countries as well.
JPMorgan, whose EU hub is in Frankfurt, has become one of the largest advisory banks in Germany in recent years.
Dimon has said earlier, “In Germany, Chase is not yet so well known, but worldwide it is a strong brand. We are also a trustworthy bank with a strong balance sheet - and private customers know that.”
JPM’s decision to expand its retail business globally arises from the fact that while investment banking has been a profitable business, returns from the same can be highly volatile at times because of its dependence on the capital markets.
Thus, despite the fact that U.S. firms face a competitive consumer market dominated by local officials, they are looking for steadier sources of revenues in order to offset the volatility arising from investment banking.
Over the past six months, shares of JPM have gained 13.7% compared with the industry’s growth of 10%.
Image Source: Zacks Investment Research
Currently, JPMorgan sports a Zacks Rank #1 (Strong Buy).
A couple of other top-ranked stocks from the finance space are Prospect Capital Corporation (PSEC - Free Report) and Horizon Technology Finance Corporation (HRZN - Free Report) .
Earnings estimates for PSEC have been revised 8.1% upward for the current fiscal year over the past 60 days. The company’s share price has decreased 8% over the past three months. PSEC currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Horizon Technology also sports a Zacks Rank of 1 at present. Its earnings estimates have been revised upward by 7.6% for the current year over the past 60 days. In the past three months, HRZN’s share price has increased 4.1%.
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JPMorgan's (JPM) Chase UK Likely to Break Even in 12-18 Months
JPMorgan Chase’s (JPM - Free Report) president and COO, Daniel Pinto, has said at a conference that he expects the digital retail bank, Chase, in the U.K. to break even in the next 12-18 months. The new timeline is at least two years ahead of the previously mentioned one.
At an investor day in May 2022, Sanoke Viswanathan, the chief executive of JPM’s international growth initiatives, had said that Chase UK would lose $450 million or a similar amount for the next few years and then break even by 2027 or 2028, thereafter generating significant income.
Notably, JPM entered the U.K. market with the launch of its digital-only consumer bank under the Chase brand in September 2021. Since then, it has attracted more than 1.6 million customers, and has processed more than 90 million card and payment transactions.
Referring to Chase UK, Pinto said at the conference, “We have acquired around two million customers. A big percentage of those are fairly actively engaged, and we have nearly $20 billion in terms of deposits.”
Pinto added that Chase UK has been doing better than expected and JPM plans to grow in other global consumer markets over time.
In July 2023, JPMorgan’s CEO, Jamie Dimon, announced plans to expand the digital retail bank to Germany and other European Union (“EU”) countries as well.
JPMorgan, whose EU hub is in Frankfurt, has become one of the largest advisory banks in Germany in recent years.
Dimon has said earlier, “In Germany, Chase is not yet so well known, but worldwide it is a strong brand. We are also a trustworthy bank with a strong balance sheet - and private customers know that.”
JPM’s decision to expand its retail business globally arises from the fact that while investment banking has been a profitable business, returns from the same can be highly volatile at times because of its dependence on the capital markets.
Thus, despite the fact that U.S. firms face a competitive consumer market dominated by local officials, they are looking for steadier sources of revenues in order to offset the volatility arising from investment banking.
Over the past six months, shares of JPM have gained 13.7% compared with the industry’s growth of 10%.
Image Source: Zacks Investment Research
Currently, JPMorgan sports a Zacks Rank #1 (Strong Buy).
A couple of other top-ranked stocks from the finance space are Prospect Capital Corporation (PSEC - Free Report) and Horizon Technology Finance Corporation (HRZN - Free Report) .
Earnings estimates for PSEC have been revised 8.1% upward for the current fiscal year over the past 60 days. The company’s share price has decreased 8% over the past three months. PSEC currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Horizon Technology also sports a Zacks Rank of 1 at present. Its earnings estimates have been revised upward by 7.6% for the current year over the past 60 days. In the past three months, HRZN’s share price has increased 4.1%.