JPMorgan says integration of First Republic Bank is going as per plan

First Republic Bank

05/12/2023 22:10

By Nupur Anand
       NEW YORK, Dec 5 (Reuters) - JPMorgan Chase's  JPM.N 
integration of failed First Republic Bank is going according to
the plan as it looks to retain customers and build on services
it acquired, said Marianne Lake, the Co-CEO of JPMorgan's
consumer and community bank.
    JPMorgan, the largest U.S. lender, has retained 90% of First
Republic customers since the purchase in May.
    "We have done the home lending integration, mortgage
origination and servicing already," Lake told investors at the
Goldman Sachs  GS.N  U.S. Financial Services Conference on
Tuesday. "We're going to do the deposit migration and
integration by the middle of next year." 
    First Republic Bank was the largest U.S. lender to fail
since 2008. The deal fueled JPMorgan's profits in the third
quarter beyond Wall Street expectations, and the integration is
going better than expected, executives said.
    Consumer spending continues to be robust and is now in line
with pre-pandemic levels, Lake said. Credit card loan growth is
expected to reach double-digit percentages next year, but stay
lower than 2023 levels, she said. 
    Mortgage lending is expected to remain flat, Lake added.
    U.S. consumer confidence rose in November after declining
for three consecutive months.
    Americans are also planning to buy big-ticket items such as 
motor vehicles and houses over the next six months even as
interest rates remain high.
    But consumers with low credit scores are beginning to show
signs of stress, with cash buffers shrinking for the
lowest-income customers. 
    Separately, Lake said that the bank's net interest income is
expected to exceed executives' earlier guidance. She previously
served as the bank's finance chief.
    Revenue from trading is expected to be flat in the fourth
quarter while investment banking revenue will probably grow by a
single-digit percentage, Lake added.

 (Reporting by Nupur Anand in New York; Editing by Lananh Nguyen
and Stephen Coates)
 ((Nupur.Anand@thomsonreuters.com; +1 646 240 2975;))