JPMorgan aims to amass 15% of US consumer deposits, boost credit card share

By Nupur Anand and Lananh Nguyen

NEW YORK (Reuters) - The biggest U.S. bank wants to get even bigger.

JPMorgan Chase has set an ambitious goal of attracting 15% of the country's consumer deposits, Marianne Lake, its CEO of consumer and community banking, told Reuters in an interview at the company's New York headquarters.

The bank had an 11.3% share of U.S. retail deposits at the end of June 2023, the latest available data.

The lender also wants to provide credit cards that account for 20% of the nation's spending, expanding from a current 17%.

"Market share is a game of inches, and it is a very powerful game," Lake said. "While we are not putting any timeline on it, our strategies are geared towards achieving it," she said.

Its U.S retail deposits were worth $1.1 trillion at the end of the first quarter.

Including wholesale deposits, the bank had $1.96 trillion of deposits in the first quarter, up from $1.95 trillion a year earlier, while its closest rival Bank of America had $1.82 trillion at the end of first quarter.

"We're continuing to build our capabilities to compete and win and investing in modernizing our infrastructure and data, leveraging AI, payments and other business strategies," Lake said. The investments "will ensure that we continue to be the leader even five to 10 years from now."

JPMorgan acquired failed lender First Republic last year, adding $92 billion in deposits. The purchase was made after a series of bank failures that triggered tumult in the industry and has since subsided.

Banks that already hold at least 10% of U.S. deposits are not allowed under federal law to grow through acquisitions, with the exception of failed banks. At the time of the First Republic purchase, critics raised concerns that JPMorgan was allowed to get bigger, even though its purchase price met the government's standard of drawing the lowest cost from a deposit insurance fund.

"If it's important to the ecosystem, we would step in again," said Lake, adding she did not hope for more bank failures.

CEO SUCCESSION

JPMorgan is set to report its earnings on Friday. Investors and analysts will be watching out for any commentary on its CEO succession plans. Lake has been named by the bank's board as a potential successor to CEO Jamie Dimon, who has served in the role since 2006.

While Wall Street banks have made some strides on diversity, Citigroup CEO Jane Fraser is the only woman to lead one of the nation's six biggest banks.

JPMorgan's other potential CEO candidates are Jennifer Piepszak and Troy Rohrbaugh, co-CEOs of its commercial and investment bank, and Mary Erdoes who heads the asset and wealth management businesses, according to the bank's board.

"It will depend on facts and circumstances at the time, but sure, the next JPMorgan CEO could be a woman," Lake said when asked if a woman is likely to succeed Dimon.

Dimon has been vocal about regulatory proposals that would raise capital requirements for banks. Lake also took issue with rule changes, including the Consumer Financial Protection Bureau's $8 limit on late payment fees for credit cards, and a cap on overdraft fees.

"There are significant costs to providing access to valuable and secure banking services," Lake said. "These proposed changes could impact the ability for banks of all sizes to continue to offer these services at the current rates."

JPMorgan's consumer business reported $17.6 billion in revenue during the first quarter, comprising the biggest chunk of the company's total revenue of $41.9 billion.

(Reporting by Nupur Anand and Lananh Nguyen in New York; Editing by Jamie Freed)