Jamie Dimon, at the helm of over 20 years JPMorgan, transforming it into the largest and most profitable bank in the United States through at least counterintuitive operations, has once again attracted the attention of investors by saying it was ready for new M&A operations and making available between 10 and 20 billion.
“I think there could be an opportunity to invest $10 billion to $20 billion in acquisitions over the next two years,” Dimon said at the Bernstein Strategic Decisions Conference, adding that JPMorgan is “on alert”He did not specify any areas of interest, but analysts believe it is likely the bank will look at opportunities in fintech or artificial intelligence.
In his long career he has several trophies to show off: among his successes, the acquisition at rock-bottom prices of Bear stearns e Washington Mutual during the financial crisis, as well as First Republic Bank in 2023.
Dimon added that he sees growth opportunities organic in each of the JPMorgan divisions and not to rush to conclude a deal, given the currently high asset prices, including those of the bank's own shares.
JP Morgan will spend an additional $1 billion. Increased revenue from investment banking and trading.
At the same time, Dimon said that JPMorgan Chase will likely spend about $1 billion more this year than executives predicted just last month. The company's costs will be "closer" to $106 billion than the $105 billion executives predicted during their April earnings call. The increase is "primarily due to better performance, so it's a good billion more," Dimon said, citing investment banking commissions higher than expected and greater Trading revenues.
On Wall Street, executives preach an “eat what you kill” mentality, offering traders and financial operators bonuses proportional to the revenue they generate, as reported by Bloomberg. This means that a boom in investment banking and financial markets often translates into a increase in compensation costs, as well as other transaction costs. The bank's traders, coming off a record-breaking quarter, are on track to post their second-best quarter ever. Dimon said that revenues for the three months ending June 30th could increase by 11% compared to the previous year, or even more.
Meanwhile, it is expected that the investment banking commissions They will increase by 10% and "could do slightly better, depending on how the rest of the quarter unfolds," he added. "There's an electric atmosphere, folks," he said. "Sponsors are busy, companies are busy, there's a lot of excitement going around." Meanwhile, he expects investment banking fees to increase by 10% and "could do slightly better, depending on how the rest of the quarter unfolds," he said.
