Magazine article American Banker

Bread-and-Butter Banking, Economy Picking Up Steam, JPM CEO Says

Magazine article American Banker

Bread-and-Butter Banking, Economy Picking Up Steam, JPM CEO Says

Article excerpt

Byline: Matthew Monks

A yearend uptick in business borrowing should translate into more U.S. hiring -- eventually, JPMorgan Chase & Co. Chairman and Chief Executive Jamie Dimon said Friday.

Robust lending and deposit gathering in two of the New York key divisions -- commercial banking and credit cards -- suggest an economy on the mend, he said in a call with reporters discussing fourth-quarter profits that disappointed Wall Street.

The two profit-killers in the quarter came from areas that have afflicted other banks a investment banking and mortgages, Dimon said. But JPMorgan Chase fared much better in bread-and-butter banking businesses that serve ordinary consumers and companies. Credit card sales were up quarter to quarter and year over year. So were merchant bank card transactions and loans to hospitals, municipalities, corporations and other customers of its commercial bank.

That indicates that JPMorgan Chase, the biggest commercial bank in the country by assets, is taking a bigger share of a banking market -- and an economy -- that is looking up, Dimon said. aWe have a mild recovery which might actually be strengthening,a he said. aIt is kind of a broad-based thing that is taking place. It could be self-sustaining."

Total loans were $723 million, up 4% from the third quarter and a year earlier. That marks JPMorgan Chaseas third consecutive quarter of loan growth. Deposits of $1.3 billion were up 2% from the prior quarter and 21% from a year earlier. …

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