New York, May 23, (dpa/GNA) – Banking major JPMorgan Chase raised its net interest income projection by $3 billion, up to $84 billion, following its majority purchase of First Republic Bank.
Despite the turmoil in the banking industry and the potential for a recession, the bank aims to grow in size and increase its revenue further this year, as stated by top executives during the bank’s annual investor day on Monday.
The bank announced that the acquisition of First Republic is anticipated to have a slightly positive effect on its overall net income, contributing an annual amount of $500 million. This projection is made prior to factoring in any restructuring expenses within the next two years.
On Monday, JPMorgan’s stock initially increased by 1.2% before stabilizing at around the same level. Since the start of the year, the stock has shown a 3% increase, distinguishing it as one of the few US bank stocks to demonstrate year-to-date growth.
According to Jennifer Roberts, the chief executive of consumer banking at JPMorgan, the bank has plans to expand its physical presence by adding more brick-and-mortar bank buildings throughout the United States. The goal is to increase the bank’s coverage to reach 70% of the US population within a 10-minute drive of its branches, up from the current 60%. JPMorgan currently operates over 4,800 retail locations.
The acquisition of First Republic has contributed to JPMorgan’s expansion and increased its size. The deal resulted in the addition of 200 advisers and $200 billion in client assets to JPMorgan’s wealth management operations. The number of financial advisers also rose by 5.3% to reach 4,950.
The bank announced plans to close certain First Republic branches that have overlapping locations with existing brick-and-mortar banks. However, it intends to maintain branches in prime locations such as San Francisco and New York, which will aid in advancing its strategy with affluent clients.
GNA