Latest news with #Client
Yahoo
6 days ago
- Business
- Yahoo
JPM Expanding Footprint to Serve Affluent Clients: Buy, Sell or Hold?
JPMorgan JPM is expanding its affluent banking services by opening 14 new J.P. Morgan Financial Centers across California, Florida, Massachusetts and New York. These new branches, many of which were formerly First Republic Bank locations, bring the total number of such centers to 16. JPM has plans to nearly double the figure by to offer a personalized, high-touch experience for affluent clients, these centers feature private meeting spaces and a refined environment. They cater to clients eligible for J.P. Morgan Private Client, offering dedicated support from Senior Private Client Bankers and access to JPMorgan's full suite of wealth management and banking expansion reflects JPM's strategy to deliver a premium, relationship-based banking experience that spans personal banking, lending and investment services. In addition to the new centers, the company operates 14 remote offices nationwide, enabling flexible support through Relationship Managers for clients preferring virtual initiative aligns with JPMorgan's broader effort to tailor its branch network to client needs, combining digital tools, expert guidance and an expansive physical footprint. With these new financial centers, the bank is setting a new standard in serving affluent boasts the largest branch network in the United States and is the only bank with a physical presence in all 48 contiguous states. Last year, it opened more than 150 new branches and is on track to reach its goal of launching 500 additional locations by 2027. This continued expansion underscores the company's commitment to nationwide accessibility and its confidence in the enduring value of in-person banking relationships. Given the tariff-related uncertainty, market participants are predicting two to three interest rate cuts in the back half of the year. As such, JPMorgan's NII is likely to face some 'headwind on an exit rate going into next year' as its balance sheet is highly company's NII witnessed a five-year (2019-2024) CAGR of 10.1%, mainly driven by the high-interest rate regime since 2022 and the acquisition of First Republic Bank in 2023. The momentum continued in the first quarter of 2025, driven by solid loan and deposit growth and higher revolving balances in Card Services. During the Investors Day conference on May 19, JPM's chief financial officer, Jeremy Barnum, said, 'The evolving tariff environment, combined with the preexisting geopolitical tensions, adds significant uncertainty into the economic outlook.' Despite this, he believes the company's NII could increase by $1 billion this year, but stopped short of making the change in the NII outlook of $94.5 billion (up almost 2% year over year) as it's too early to comprehend the actual impact of various macroeconomic headwinds. Of the total NII, almost $4.5 billion is projected to be generated from Markets JPM, its close peers – Bank of America BAC and Wells Fargo WFC – expect NII to grow this year. Bank of America anticipates NII to jump 6-7% year over year, while Wells Fargo expects the metric to grow 1-3%. JPMorgan's capital markets business (that includes investment banking or IB and markets) witnessed a robust comeback last year, with IB fees (in the Commercial & Investment Bank segment) jumping 37% year over year. In 2023, IB fees declined 5% and plunged 59% in 2022. Likewise, as trading volume and market volatility remained high in 2024, markets revenues benefited and grew 7%. Despite tariff-related ambiguity and extreme market volatility, the performance of the company's capital markets business was decent in the first quarter of 2025. However, near-term IB prospects are cloudy because of economic uncertainty, which will likely hurt JPM's IB business in the second quarter as deal-making activities have largely stalled. IB fees in the Commercial & Investment Bank (CIB) segment are expected to be down in the mid-teens range from $2.46 billion in the prior-year the other hand, JPMorgan's markets revenues are projected to grow in the mid-to-high single-digits range for the second quarter of 2025. This is likely to be driven by a significant rise in market volatility and higher client once there is a reduction in the level of uncertainty, JPMorgan is expected to capitalize on it, driven by a solid pipeline and origination of new activity. Also, the company will leverage its leadership position in the IB business (rank #1 for global IB fees in the first quarter of 2025) once the macro situation changes. Hence, JPMorgan's long-term outlook for the IB business remains strong. JPMorgan has been growing through bolt-on acquisitions, both domestic and global. In 2023, the company increased its stake in Brazil's C6 Bank to 46% from 40%, allied with (a financial technology firm focused on trade finance) and acquired Aumni. Also, the company acquired the failed First Republic Bank in 2023. The deal continues to benefit JPM's financials and even helped it reach record profits. Additionally, in 2022, it acquired Renovite and a 49% stake in Greece-based Viva Wallet and Global Shares. These deals, along with several others, are expected to support the bank's plan to diversify revenues and expand the fee income product suite and consumer bank actively seeks to expand its digital retail bank – Chase – across the European Union countries after launching it in the U.K. in 2021. The company is focused on bolstering its IB and asset management businesses in China. As of March 31, 2025, JPM had a total debt of $471.9 billion (the majority of this is long-term in nature). The company's cash and due from banks and deposits with banks were $425.9 billion on the same date. The company maintains long-term issuer ratings A-/AA-/A1 ratings from Standard and Poor's, Fitch Ratings and Moody's Investors Service, JPM continues to reward shareholders handsomely. In March, the company announced a 12% hike in its quarterly dividend to $1.40 per share. This followed an 8.7% increase in dividends in September 2024. In the last five years, it hiked dividends five times, with an annualized growth rate of 6.77%. Currently, the company's payout ratio is 27% of earnings. Similar to JPM, its peers – Bank of America and Wells Fargo – have been increasing their dividend payouts regularly. Bank of America raised its dividend four times in the last five years, while Wells Fargo has hiked it six also authorized a new share repurchase program of $30 billion, effective July 1, 2024. As of March 31, 2025, almost $11.7 billion in authorization remained available. JPMorgan's asset quality has been deteriorating. While the company recorded negative provisions in 2021, a substantial jump in provisions was recorded in the years after that because of the worsening macroeconomic outlook. The metric surged 169% in 2022, 45.9% in 2023 and 14.9% in 2024. Similarly, net charge-offs (NCOs) grew 117.6% in 2023 and 39.1% in 2024. The uptrend for both continued in the first quarter of interest rates are less likely to come down substantially in the near term, it is expected to hurt the borrowers' credit profile. The company remains vigilant about the effects of continuous high rates and quantitative tightening on its loan portfolio. Also, the impact of tariffs on inflation is to be seen. Hence, the company's asset quality is likely to remain company expects card NCO rates to be approximately 3.6% this year. For 2026, the metric is expected to rise year over year and be in the range of 3.6-3.9%. This year, shares of JPMorgan have rallied 10.7% against a 1.8% decline for the S&P 500 Index. Also, the stock has fared better than its peers – Bank of America and Wells Fargo. YTD JPM Price Performance Image Source: Zacks Investment Research From a valuation perspective, the stock appears slightly expensive relative to the industry. The stock is currently trading at the forward 12-month price/earnings (P/E) of 14.17X. This is above the industry's 13.35X, reflecting a stretched valuation. Price-to-Earnings F12M Image Source: Zacks Investment Research Also, JPM stock is trading at a premium compared with its peers – Bank of America and Wells Fargo. At present, Bank of America has a forward 12-month P/E of 11.32X, and Wells Fargo is trading at a forward 12-month P/E of 12.02X. Earnings estimates for JPMorgan for 2025 and 2026 have been revised upward over the past seven days. The positive estimate revision depicts bullish analyst sentiments for the stock. JPM's Earnings Estimates Trend Image Source: Zacks Investment Research Nonetheless, the Zacks Consensus Estimate for JPM's 2025 earnings implies a 7.1% fall year over year because of macro headwinds and higher non-interest expenses. Management anticipates non-interest expenses to be almost $95 billion this year, up from $91.1 billion in 2024. On the other hand, the consensus estimate for 2026 earnings suggests 5% growth. Earnings Estimates Image Source: Zacks Investment Research JPMorgan's strategic expansion, resilient capital markets business, strong dividend growth and fortress balance sheet position it well for long-term gains. However, macroeconomic headwinds, including potential rate cuts, deteriorating asset quality and rising non-interest expenses, pose near-term risks. While the stock trades at a premium valuation, upward earnings revisions and JPM's industry leadership justify a cautious buy for long-term investors. Those seeking stability, income and exposure to a diversified banking giant may find JPMorgan attractive, but should be prepared for short-term volatility due to economic uncertainty and elevated credit currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Wells Fargo & Company (WFC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
NBC News
27-05-2025
- Business
- NBC News
JPMorgan Chase is heading upmarket to woo America's millionaires
JPMorgan Chase thinks it has cracked the code on managing more money for America's millionaires. It's not a new financial product, a novel software program or an enticing sign-up bonus. Instead, it's a refurbished take on an old concept — the brick-and-mortar bank branch — along with new standards for service that are at the heart of its aspirations. The bank is unveiling 14 of these new format branches — each acquired when JPMorgan took over First Republic in 2023 — in tony ZIP codes in New York, California, Florida and Massachusetts, including Napa, Palm Beach and Wellesley Hills. It's part of JPMorgan's push to convince affluent Americans, many who already use Chase checking accounts or credit cards, that the bank is ready to manage their millions. JPMorgan is the country's biggest bank by deposits and assets and has a top share in areas as disparate as Wall Street trading and retail credit cards. But one of the only major categories where it isn't a clear leader is in wealth management; peers like Morgan Stanley and Bank of America exceed it there. While half of the 19 million affluent households in the U.S. bank with JPMorgan, it has just a 10% share of their investing dollars, according to Jennifer Roberts, CEO of Chase Consumer Banking. 'We have this giant opportunity to convince customers to have their wealth management business with us in addition to their deposit relationship,' Roberts said in a recent interview. Helped by its acquisition of First Republic, which was known for catering to rich families living on either coast, JPMorgan decided to launch a new tier of service. Called J.P. Morgan Private Client, it is anchored by the new physical locations, of which there will be 31 by the end of next year. The service comes with its own mobile banking app, but its main appeal is the in-person experience: Instead of being handed off to multiple employees like at a Chase branch, J.P. Morgan Private Client members are assigned to a single banker. 'What First Republic did really well was deliver a concierge-level of service where if you have an issue, a person owned it for you and you didn't have to worry about it,' Roberts said. 'So with this experience we are going to deliver a more elevated concierge type of service, like you would expect at a high-end hotel.' The price of entry: at least $750,000 in deposits and investments, though Roberts said the bank is aiming for those with around $2 million to $3 million in balances. Quiet opulence The new locations, dubbed J.P. Morgan Financial Centers, have a warm feel and an earth-tone color palette that intentionally sets them apart from the nearly 5,000 Chase branches operated by the bank. During a recent visit to a Manhattan location, the vibe is family office-meets hotel, with soaring ceilings, living room-style seating areas and art-filled meeting rooms scattered over two floors. Gone is the traditional row of bank tellers; there is instead a concierge desk and a solitary ATM machine. Instead of lollipops, visitors are offered squares of Dylan's chocolate. The space is quiet, except for the crack of a Perrier being opened or the whir of an espresso machine. The design elements and hushed environment are 'really meant to illustrate that we're there to have a more serious, less-transactional conversation about your wealth planning over the course of time,' said Stevie Baron, JPMorgan's head of affluent banking. Those conversations involve planning for long-term goals and examining clients' portfolios to see whether they are on track to reach them, he said. Elements of the new high-end branch format could find their way to regular Chase branches, especially the 1,000 or so that are in high-income areas, Baron said. JPMorgan executives have said the bank's branch network has already succeeded as a feeder into the firm's wealth management offerings. The new service tier — which sits above the bank's Chase Private Client offering, which is for those with at least $150,000 in balances and is delivered in the regular branches — is expected to help JPMorgan's retail bank double client assets from the $1.08 trillion it reached in March. 'Obviously it's a big challenge, because clients already have their established wealth managers, but it's something that we've been making really strong progress in,' Roberts said. Come one, come all But attempting to create a new, more luxurious brand from a mainstream one — think the difference between Toyota and its luxury brand Lexus — is not without its risks. Or at least, momentary confusion. So far, the two flagship financial centers in New York and San Francisco opened late last year haven't seen heavy foot traffic, Roberts admitted. 'Our biggest challenge is that we don't have people walking in because they don't really understand what they are,' Roberts said. 'So we just need to get the awareness out there.' While JPMorgan is leaning on the first part of its name, rather than Chase, to signal exclusivity for the new branches, that may deter people from walking through the doors and starting conversations. 'I just want this to be acknowledged: We're never going to turn someone away. Any customer can come and leverage any of our branches at any time,' Roberts said. 'We want people walking in, having the experience, meeting with our experts and understanding how we can help support their financial goals over time,' she said. JP Morgan's Palm Beach JP Morgan
Business Wire
27-05-2025
- Business
- Business Wire
JPMorganChase Accelerates Affluent Offering by Opening 14 New Financial Centers in Four States
NEW YORK--(BUSINESS WIRE)--JPMorganChase today announced it is expanding its affluent banking offering by opening 14 new J.P. Morgan Financial Centers across four states, bringing a uniquely tailored and high-touch experience to millions of potential clients. JPMorganChase leaders will officially open the new centers this week in California, Florida, Massachusetts and New York in local ribbon-cutting ceremonies. Combined with the two J.P. Morgan Financial Centers that opened in late 2024, the firm has a total of 16 locations, with plans to nearly double that by the end of next year. 'Through these Financial Centers, we are redefining how affluent clients are served, offering a highly personalized level of service that is backed by the global capabilities of JPMorganChase,' said Jennifer Roberts, CEO of Chase Consumer Banking. J.P. Morgan Financial Centers are the newest branch format from the nation's largest bank, thoughtfully designed to cater to the needs of affluent clients. Each location features private meeting spaces and distinctive finishes, creating an environment of privacy, sophistication and comfort. Clients who qualify for the J.P. Morgan Private Client offering will benefit from personalized support from a dedicated Senior Private Client Banker who brings the full breadth of JPMorganChase's expertise and extensive banking and wealth management offerings to each and every relationship. 'When we meet with clients, they consistently say they want a relationship that spans across banking, lending and investments, and provides a seamless experience as they navigate the complexities of managing and growing wealth,' Roberts said. 'These new Financial Centers offer a highly personalized service model, providing greater flexibility to meet clients' needs with exceptional attention and care.' A New Standard in Affluent Banking JPMorganChase has been steadily expanding its affluent offering to help clients build better futures for themselves and their families by continuing to offer best-in-class services, products and benefits, based on relationship value. Chase Private Client is a relationship product designed for clients with $150,000 or more in qualifying deposit and investment balances. It is available in all 5,000 Chase branches nationwide. J.P. Morgan Private Client introduces the next level of affluent relationship offerings for clients with more than $750,000 in qualifying deposit and investment balances. Clients receive highly personalized attention from a dedicated banker and a seasoned team of experts across personal banking, business banking, lending and planning. This dedicated partnership includes J.P. Morgan Wealth Management advisors, who deliver industry-leading investment advice and solutions. J.P. Morgan Private Client services are available at the new Financial Centers, and in 14 remote offices nationwide. The office-based model, inspired by First Republic, caters to clients who may find it difficult to meet in person. Each office is led by a Relationship Manager, providing a single point of contact with dedicated support. 'The power of our coverage model means we can serve affluent clients according to their personal preferences,' said Stevie Baron, Head of Affluent Banking. 'Clients can visit a Financial Center, or work with a Relationship Manager in one of our office locations, if that is more convenient. We're excited to expand this new service model across our Financial Centers and remote offices to deliver highly personalized care and full access to the capabilities that JPMorganChase can offer in service of our clients' ambitions for their wealth and legacies.' New Financial Centers Located in Prominent Locations The new Financial Centers are primarily former First Republic locations that were acquired in May 2023. They include some of the most prominent locations in America, including Palm Beach, Florida; Napa, California; Madison Avenue, New York; and Cambridge, Massachusetts. Clients without a nearby Financial Center can still access all the benefits of a J.P. Morgan Private Client relationship through Relationship Managers in offices designed to support clients remotely. To learn more and access a list of J.P. Morgan Financial Center locations, please visit JPMorganChase Tailors its Branch Network to Meet Client Needs Chase branches operate in several different formats, depending on the specific needs of clients and the community. Some locations include meeting rooms and private spaces for personal conversations, while high-volume, full-service branches feature multiple transaction windows. Chase also operates 19 Community Centers across the country as part of an overall effort to expand access to banking, tools and advice to people who might not otherwise have access to them. These Community Centers are part of Chase's community-inspired branch network, which includes 300 locations in underserved areas. 'We firmly believe that our strategy of an extensive branch network, combined with great digital capabilities, and a team of experts who can advise customers on a variety of topics, leaves us uniquely positioned to be the primary financial partner for our customers today, tomorrow and for many years to come,' Roberts said. Chase has the largest branch network in the United States and is the only bank to have branches in all lower 48 states. Last year Chase opened more than 150 branches and is well on its way to meeting its goal of opening 500 new branches by the end of 2027. About Chase Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading financial services firm based in the United States of America with assets of $4.4 trillion and operations worldwide. Chase serves more than 84 million consumers and 7 million small businesses, with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. Customers can choose how and where they want to bank: Nearly 5,000 branches in 48 states and the District of Columbia, more than 15,000 ATMs, mobile, online and by phone. For more information, go to
CNBC
27-05-2025
- Business
- CNBC
JPMorgan Chase is heading upmarket to woo America's millionaires
JPMorgan Chase thinks it has cracked the code on managing more money for America's millionaires. It's not a new financial product, a novel software program or an enticing sign-up bonus. Instead, it's a refurbished take on an old concept — the brick-and-mortar bank branch — along with new standards for service that are at the heart of its aspirations. The bank is unveiling 14 of these new format branches — each acquired when JPMorgan took over First Republic in 2023 — in tony zip codes in New York, California, Florida and Massachusetts, including Napa, Palm Beach and Wellesley Hills. It's part of JPMorgan's push to convince affluent Americans, many who already use Chase checking accounts or credit cards, that the bank is ready to manage their millions. JPMorgan is the country's biggest bank by deposits and assets and has a top share in areas as disparate as Wall Street trading and retail credit cards. But one of the only major categories where it isn't a clear leader is in wealth management; peers like Morgan Stanley and Bank of America exceed it there. While half of the 19 million affluent households in the U.S. bank with JPMorgan, it has just a 10% share of their investing dollars, according to Jennifer Roberts, CEO of Chase Consumer Banking. "We have this giant opportunity to convince customers to have their wealth management business with us in addition to their deposit relationship," Roberts said in a recent interview. Helped by its acquisition of First Republic, which was known for catering to rich families living on either coast, JPMorgan decided to launch a new tier of service. Called J.P. Morgan Private Client, it is anchored by the new physical locations, of which there will be 31 by the end of next year. The service comes with its own mobile banking app, but its main appeal is the in-person experience: Instead of being handed off to multiple employees like at a Chase branch, J.P. Morgan Private Client members are assigned to a single banker. "What First Republic did really well was deliver a concierge-level of service where if you have an issue, a person owned it for you and you didn't have to worry about it," Roberts said. "So with this experience we are going to deliver a more elevated concierge type of service, like you would expect at a high-end hotel." The price of entry: at least $750,000 in deposits and investments, though Roberts said the bank is aiming for those with around $2 million to $3 million in balances. The new locations, dubbed J.P. Morgan Financial Centers, have a warm feel and an earth-tone color palette that intentionally sets them apart from the nearly 5,000 Chase branches operated by the bank. During a recent visit to a Manhattan location, the vibe is family-office-meets hotel, with soaring ceilings, living room-style seating areas and art-filled meeting rooms scattered over two floors. Gone is the traditional row of bank tellers; there is just a solitary ATM machine. Instead of lollipops, visitors are offered squares of Dylan's chocolate. The space is quiet, except for the crack of a Perrier being opened or the whir of an espresso machine. The design elements and hushed environment are "really meant to illustrate that we're there to have a more serious, less-transactional conversation about your wealth planning over the course of time," said Stevie Baron, JPMorgan's head of affluent banking. Those conversations involve planning for long-term goals and examining clients' portfolios to see whether they are on track to reach them, he said. Elements of the new high-end branch format could find their way to regular Chase branches, especially the 1,000 or so that are in high-income areas, Baron said. JPMorgan executives have said the bank's branch network has already succeeded as a feeder into the firm's wealth management offerings. The new service tier — which sits above the bank's Chase Private Client offering, which is for those with at least $150,000 in balances and is delivered in the regular branches — is expected to help JPMorgan's retail bank double client assets from the $1.08 trillion it reached in March. "Obviously it's a big challenge, because clients already have their established wealth managers, but it's something that we've been making really strong progress in," Roberts said. But attempting to create a new, more luxurious brand from a mainstream one — think the difference between Toyota and its luxury brand Lexus — is not without its risks. Or at least, momentary confusion. So far, the two flagship financial centers in New York and San Francisco opened late last year haven't seen heavy foot traffic, Roberts admitted. "Our biggest challenge is that we don't have people walking in because they don't really understand what they are," Roberts said. "So we just need to get the awareness out there." While JPMorgan is leaning on the first part of its name, rather than Chase, to signal exclusivity for the new branches, that may deter people from walking through the doors and starting conversations. "I just want this to be acknowledged: We're never going to turn someone away. Any customer can come and leverage any of our branches at any time," Roberts said. "We want people walking in, having the experience, meeting with our experts and understanding how we can help support their financial goals over time," she said.
Fashion Network
21-05-2025
- Business
- Fashion Network
Miraggio raises $6.5 million in funding round from RPSG Capital Ventures, others
Miraggio, a direct-to-consumer fashion handbag and accessories brand has raised Rs 55 crore ($6.5 million) in a funding round led by RPSG Capital Ventures and Client Associates Alternate Fund, with participation from Prath Ventures. The company will utilise the funds to fuel its next phase of growth which includes diversification of product portfolio, retail expansion, and boosting supply chain. It plans to launch around 500 new products over the next 18 months and build a stronger supply chain operation across Asia with sourcing from multiple countries. Commenting on the funding, Mohit Jain, founder CEO of Miraggio in a statement said, 'This funding marks a pivotal moment for us as we accelerate our journey toward becoming an omnichannel fashion handbag and accessories brand. With a sharper focus on delivering elevated retail experiences, expanding our product portfolio, and building deeper connections with customers across India, we're excited to shape the next chapter of Miraggio's growth story.' Abhishek Goenka, managing partner at RPSG Capital Ventures added, 'Miraggio is rapidly emerging as a defining force in India's fashion accessories space. In a highly fragmented and dynamic market, Miraggio stands apart in its ability to offer exceptional value for money, seamlessly combining aspirational design, quality, and experience with premium affordable pricing, making it especially relevant to India's new-age consumers.' Founded in 2020, Miraggio retails from its direct-to-customer e-commerce store and multi-brand online marketplaces including Myntra, Nykaa Fashion, Flipkart, among others.
