JPMorgan expects $3 billion income boost
from First Republic deal
Send a link to a friend
[May 22, 2023]
NEW YORK (Reuters) -JPMorgan Chase & Co's net interest income
would rise by $3 billion this year due to its purchase of failed First
Republic Bank, according to a presentation published ahead of its
investor day on Monday. |
![](../images/052223PIX/busine44.jpg)
JPMorgan Chase Bank is seen in New York
City, U.S., March 21, 2023. REUTERS/Caitlin Ochs |
The
largest U.S. lender agreed to take into its books $173 billion
of the failed bank's loans, $30 billion of securities and $92
billion of deposits after First Republic was shuttered by
authorities earlier this month.
The Wall Street giant is in the process of integrating First
Republic, which will likely take about 12 months.
JPMorgan said it remains optimistic about the purchase as it
emerged as one of the biggest beneficiaries of the recent
banking crisis due to an influx of deposits from customers who
sought safety in larger institutions.
First Republic was the third U.S. regional lender to fail since
March in a sector-wide upheaval that roiled financial stocks,
deepened worries of a crisis and heaped pressure on mid-sized
banks.
JPMorgan said it expects expense growth at low-to-mid single
digits in the medium term and restated its 17% target for return
on tangible common equity - a key metric that measures how well
a bank uses shareholder money to produce profit.
(Reporting by Nupur Anand and Lananh Nguyen in New York and
Mehnaz Yasmin in Bengaluru; Editing by Saumyadeb Chakrabarty and
Arun Koyyur)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
![](../../22/NEWS/column_spacer.png)
|
|
|