Jpmorgan investors weigh CEO'S strategy
With Jpmorgan Chase coming off a year of record
areneadger profits, investors to learn about the firm's succession plans, investments in artificial intelligence and opportunities beyond traditional banking.
Chief Executive Jamie Dimon and his team will be presenting their growth strategies and financial targets on Monday at JPMORgan's investor day in New York.
More than 18 years into Dimon's tenure as CEO of the bank, JPMORgan's shares are trading near record levels.
Still, Dimon said the bank needs to grow and stay ahead of a varied group of competitors including rival banks, fintech companies and private creditors.
He delivered the message at a gathering of hundreds of the bank's top leaders in Miami in February, reminding them not to get complacent, according to two sources who were present at the event but declined to be identified discussing an internal meeting. A Jpmorgan spokesperson confirmed the content of the meeting.
Shareholders agree with Dimon's priorities.
"We would want to see what the bank is investing in, the growth pockets, the product diversification they are making and the opportunities that they see beyond traditional banking," said David Ellison, a portfolio manager at Hennessy Funds, which manages $4 billion and owns Jpmorgan stock.
The largest US lender has flourished on surging interest payments and an influx of deposits, including from its purchase of collapsed lender First Republic Bank last year. Its stock has risen about 20 per cent in 2024, outpacing an S&P index of bank shares.
Investors will scrutinise the bank's forecast for net interest income (NII), or the difference between what it makes on loans and pays out on deposits. Jpmorgan previously estimated its NII would reach $89 billion this year. While the forecast was higher than an earlier $88 billion estimate, it disappointed analysts who expected an even bigger jump.
Shareholders are also eager to hear more about Jpmorgan's use of artificial intelligence and other advancements from its $15 billion technology budget."the constant investment made by the bank in people, products and technology, including artificial intelligence... is how the bank has managed to stay ahead of the curve," said Jason Goldberg, a banking analyst at Barclays.
The CEO'S own plans will also be in the spotlight as he takes the stage. As one of the world's most prominent business leaders, he has been floated as a contender for a senior role in US economic policy. At last year's investor day, Dimon said he could step down in 3.5 years.
"It is important to provide investors with confidence on the strength of the bench, and so there will be focus on the emerging leaders," said Mac Sykes, portfolio manager at Gabelli Funds, who did not expect a significant announcement on succession on Monday.