JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon reassured investors that the bank is planning to use AI technology to its advantage. “In my view, we’ll be a winner,” he said during the annual Investor Day event on Monday, highlighting the bank’s strategy to utilize technology to enhance customer service.
Despite acknowledging the emergence of fintech competitors like Chrome, Revolut, PayPal (NASDAQ:PYPL), and Stripe, Dimon expressed confidence in JPMorgan’s competitive edge. Marianne Lake, the head of JPMorgan’s consumer unit, pointed out that many competitors are now emulating JPMorgan’s strategies.
The CEO also warned about the rising popularity of stablecoins, which could potentially disrupt traditional banking roles.
Dimon, who has been leading the bank for twenty years, stated his intention to continue as CEO for a few more years, without providing further details. The CEO also stated that the bank is well-positioned to weather the changes in the economy or at the Federal Reserve. “Whatever it is, we will deal with…we have created safer systems…”
Tech Spend Lifted, Retail Deposit Growth Eyed
The CFO of the largest U.S. bank, Jeremy Barnum, announced the bank’s plan to boost its tech spending by $2 billion, taking it to $19.8 billion this year in response to the increased competition. Previous reports indicated that Dimon was set to defend JPMorgan’s $2 billion weekly spending at the event, arguing that the bank’s heavy investment is essential to sustaining long-term growth.
The bank reiterated its guidance for annual adjusted expenses of $105 billion, but Troy Rohrbaugh, co-head of the firm’s commercial and investment bank, said markets revenue in the first quarter could increase by a mid-teens percentage compared with a year earlier. The company also expects retail deposit growth to resume in 2026 amid lower customer growth and a reduction in yield-seeking behavior.
JPM Shares Slide Amid AI Woes
On Monday, JPMorgan’s shares fell 4.22% to close at $297.67, as investors offloaded financials amid a broad sell-off tied to growing concerns over private credit and AI-related credit risks. The State Street Financial SPDR ETF (NYSE:XLF) also dropped 3.35%, with big banks and asset managers leading the declines, after Citrini Research released a widely circulated report Sunday outlining how AI could reshape the economy, including everyday payments.
Benzinga’s Edge Rankings place JPMorgan in the 21st percentile for quality and the 48th percentile for momentum, reflecting its average performance in both areas. Benzinga’s screener allows you to compare JPM’s performance with its peers.
JPM Price Action: On a year-to-date basis, JPMorgan Chase shares declined 8.54%, according to Benzinga Pro.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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