Banking

Jamie Dimon Says It’s The ‘Golden Age’ Of US Banking

JPMorgan

Pointing to “disappearing” regulatory issues and satisfaction scores up across the banking industry, JPMorgan Chase chairman and CEO Jamie Dimon said at a conference that the U.S. is in a “golden age of banking,” American Banker reported.

“You guys thought I was kidding when a few years ago I said, you can have a golden age of banking,” Dimon said on Friday (June 1). “I mean, you’re going to have a golden age of banking. You have a golden age of banking.”

In his analysis, Dimon also cited the banking industry’s favorable financial returns. And, while JPMorgan’s return on tangible common equity was approximately 7 percent during the financial crisis, that metric rose to around 14 percent in 2017. “Look at [JPMorgan’s] financial results alone — they’re extraordinary and consistent, year after year,” Dimon said.

The news comes after JPMorgan reported its Q1 results in April, and Dimon said in a statement that “2018 is off to a good start, with our businesses performing well across the board.” Supplemental materials released by the company at the time showed that active digital customers stood at 47.9 million, up from 46.7 million in the same period last year.

During the conference call with analysts, and in response to questions, CFO Marianne Lake stated that the growth is “structural” as consumers continue to embrace the digital and mobile channels. That shift, she noted, comes as the banking giant continues to add features that make it compelling for customers to move money through technological means.

Notably, the number of branches stood at just over 5,100 in the latest quarter, compared to 5,217 last year — perhaps adding some torque to those digital efforts. Mobile proved to be a strong point, as active customers stood at 30.9 million compared to 30 million at the end of the year and 27.3 million in the first quarter of last year. Excluding commercial cards, credit card sales volume was $157 billion, with 12 percent growth over last year. Auto loans were up 5 percent year on year.

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