JPMorgan CEO: Bank Could Spend Up to $20B on Acquisitions in Next Two Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
JPMorgan CEO Jamie Dimon said the bank could spend up to $20B on an acquisition in the next couple of years, telling analysts at a New York conference that M&A is nearly a last resort and warning that executives who lean on dealmaking are often compensating for weak organic growth, CNBC's Hugh Son reports. Any target would need to integrate cleanly into JPMorgan's operations, fit its culture and enhance core businesses, Dimon said.
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Analyst Views on JPM
Wall Street analysts forecast JPM stock price to rise
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 296.730
Low
260.00
Averages
341.38
High
400.00
Current: 296.730
Low
260.00
Averages
341.38
High
400.00
About JPM
JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. The Company operates through three segments: Consumer & Community Banking (CCB), Commercial & Investment Bank (CIB), and Asset & Wealth Management (AWM). Its CCB segment offers products and services to consumers and small businesses through bank branches, ATMs, digital and telephone banking. Its CIB segment consists of banking and payments and markets and securities services, and offers a suite of investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. AWM segment offers investment and wealth management solutions. It offers multi-asset investment management solutions, retirement products and services, brokerage, custody, estate planning, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Relationship with Epstein: Staley was a friend of Epstein, who died by suicide in 2019 amid sex trafficking charges, and Barclays stated that no evidence was found to suggest Staley was aware of Epstein's criminal activities, a statement that may affect public trust in Barclays and its management.
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See More
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- Price Decline: Brent crude oil prices have recently fallen to around $90 per barrel from over $110 in mid-May, reflecting market optimism about a potential U.S.-Iran peace deal, although this respite may not last long.
- Inventory Depletion: The closure of the Strait of Hormuz has led to a more than 50% drop in oil production in the Persian Gulf, forcing the global economy to draw down oil reserves at a record rate of 8.7 million barrels per day, with the U.S. Strategic Petroleum Reserve now at 365.1 million barrels, significantly below its 714 million barrel capacity.
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- Rising Market Risks: If the Strait of Hormuz does not reopen soon, skyrocketing oil prices could lead to demand destruction, potentially slowing down the global economy, prompting investors to closely monitor oil market developments to mitigate risks of recession and stock market downturns.
See More
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- Consumer Spending Share: Consumer spending accounts for 70% of U.S. GDP, prompting investors to focus on companies like American Express and Visa that benefit from this metric, both of which have outperformed the S&P 500 over the past decade, indicating strong market performance.
- Business Model Differences: American Express operates a closed-loop payment system limited to its cards, capturing fees from merchants and cardholders while earning interest, whereas Visa functions as an open-loop system, acting as a toll booth that collects transaction fees, showcasing distinct profit models and risk management strategies.
- Financial Performance Comparison: Visa's quarterly operating margin averaged 67.3% over the past five years, significantly higher than American Express's 20.6%, enabling Visa to return $1.3 billion in dividends and repurchase $7.9 billion in stock in Q2 2023, demonstrating its robust capital return capability.
- Growth Trend Analysis: Over the past five years, American Express's diluted EPS grew at a compound annual rate of 9.3%, while Visa's soared at 17.9%, indicating Visa's stronger advantage in profit growth and market valuation, attracting more investor interest.
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