Jpmorgan raises goals for clean energy funding

NEW YORK Jpmorgan Chase & Co largely maintained its key profit goals for the medium term on Tuesday, signalling steady but slower growth, and raised its financial commitment for clean-energy initiatives after years of pressure from environmental activists.

The largest U.S. bank will target US$200 billion in lending and other financial services for green and sustainable companies and projects, up from an earlier target of US$175 billion set in 2017, according to a presentation ahead of its annual investor day.

The new target, however, failed to satisfy some climate-change activists who flocked outside Jpmorgan’s New York headquarters, partially blocking some entrances and demanding that the bank get rid of fossil-fuel clients.

At the investor meet, chief financial officer Jennifer Piepszak said she was confident that the bank’s near to medium-term growth would be backed by a robust U.S. economy, despite some near-term headwinds.

“We can outperform on a relative basis regardless of the environment,” Piepszak said.

“Although risks are more skewed to the down side given ... risks like coronavirus, we are confident that the strength of our operating model will continue to demonstrate strength.”

The bank projected that return on tangible common equity (ROTCE), a key measure used to determine how well a bank is using its shareholders’ money, will be the same as last year’s target of 17 per cent.

However, Jpmorgan cut its outlook for net interest income (NII) to US$57 billion for 2020 from US$57.8 billion in 2019, blaming lower interest rates.