Dimon stressed that the bank’s plans regarding his tenure were unchanged, although he did not give specifics. — Reuters
NEW YORK: JPMorgan Chase and Co’s chief executive officer (CEO) Jamie Dimon says he leads the largest US bank with the same intensity as when he was younger and adds with a laugh that he plans to remain another three-and-a-half years.
Dimon stressed that the bank’s plans regarding his tenure were unchanged, although he did not give specifics.
“I’m not going to change. I’m not going to play golf. I love my country, my company, and my family,” said Dimon during the bank’s investor day.
“I can’t do this forever. I know that, but my intensity is the same. When I don’t have this kind of intensity, I should leave.”
When asked at various points during his 17-year tenure about succession plans, Dimon, 67, had previously given five years as a timeline for stepping down.
On Monday, he expressed confidence in the next generation of management and the board’s succession planning.
“One of the most important governance things is that once a year the board meets without the CEO,” Dimon said.
“If you want to give a board discretion and the ability to talk to each other, it’s not to have me in the room.”
The succession plans of Wall Street giants have come into focus after Morgan Stanley chief James Gorman signalled last week he would hand over the reins within a year.
President and chief operating officer Daniel Pinto is one leader who could eventually succeed Dimon.
He was identified “as a key executive who is immediately ready to step into the role of sole CEO, should the need arise in the near term,” a company filing said.
At the investor day, the lender said its net interest income will rise by US$3bil (RM13.7bil) as interest payments increase from its purchase of failed First Republic Bank this month.
Net interest income will rise to US$84bil (RM382.6bil) from higher interest payments in 2023, JPMorgan estimated, increasing an earlier forecast of US$81bil (RM369bil) due to the First Republic, which was shuttered by authorities.
Integration costs from the deal will add US$3.5bil (RM15.9bil) to its 2023 expenses, adding to an earlier forecast of US$81bil (RM369.5bil).
The Wall Street giant is integrating the regional lender, a process that will likely take about 12 months.
“We continue to be very optimistic that this acquisition will help us accelerate our affluent strategy, but integrations are hard,” said Marianne Lake, JPMorgan’s co-CEO of consumer and community banking.
JPMorgan has emerged as one of the biggest beneficiaries of the recent banking crisis due to an influx of deposits from customers seeking safety in larger institutions.
First Republic was the third US regional lender to fail since March in a sector-wide upheaval that roiled financial stocks, deepened worries of a crisis, and pressured mid-sized banks at a time when investors already feared a looming recession.
“We cannot ignore that there are plenty of challenges at this time and sources of uncertainty,” said Pinto.
While the global and US economies are doing fine, there are signs of deterioration as consumers erode their savings buffers, interest rates rise and inflation remains persistent, Pinto added. — Reuters
