JPMorgan Chase & Co (NYSE:JPM) is looking to outdo competitors this year through over US$15bn of investments into new schemes, the US banking giant updated on Monday.
“Our competitors have not and cannot invest at the levels that we do,” JP Morgan consumer and community co-head Marianne Lake told investors.
“Our capacity for investment is unmatched,” she added, “these investments represent significant future operating leverage for years to come.”
JP Morgan earmarked US$15.7bn for fresh investment in 2023, a rise of over US$2bn on last year, with this set to be spent on the likes of hiring, marketing and technology.
The bank explained plans to add US$1bn in “business value” by using artificial intelligence were ahead of schedule, with programmes such as Chat-GPT particularly helpful for retail customers.
Despite fears over an impending recession in the US, JP Morgan reassured the economy was “doing fine” for now, while chief executive Jamie Dimon did not rule out the possibility of further interest rate hikes which have benefitted larger lenders.
Jefferies tipped the bank a ‘hold’ following the investor day updates, noting an anticipated rise in net interest income to US$84bn from US$81bn following its takeover of First Republic.
Brokers also gave JP Morgan a share price target of US$149, up 7% on Monday’s closing value of US$139.2.