Live Markets: JPMorgan's commercial bank poised for further growth -Citi

First Republic Bank

04/12/2023 15:08

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    JPMORGAN's COMMERCIAL BANK POISED FOR FURTHER GROWTH -CITI
    JPMorgan Chase's  JPM.N  commercial bank could outperform
its peers even as the industry braces for a slowdown in loan
growth, Citigroup analysts wrote in a note on Monday.
    The bank has made huge strides in client acquisition in
recent months, luring customers looking for the safety of big
banks after the industry crisis earlier this year wiped out
three smaller lenders. 
    But even with its "tremendous" scale, it still has room to
grow, Citi said. 
    One avenue for growth is First Republic Bank, the failed
lender that JPMorgan bought in May, the brokerage said, adding
that the big bank can seek to win back chunks of deposits from
clients that had fled the embattled lender.
    It is already executing that strategy "with success," the
Citi added.
    The commentary highlights the windfalls major lenders have
been reaping from the banking turmoil.
    "The market disruption from SIVB (Silicon Valley Bank) has
permanently changed how people view their banking relationship,"
the brokerage said. 
    Thanks to years of investment, the banking giant has a
"wide-reaching product set" that has positioned it to also
expand its foothold in international markets, Citi added.
    The commercial banking unit provides financial services and
investment banking to middle market and corporate clients. It
also houses the lender's commercial real estate (CRE) banking
business.
    
    (Niket Nishant)
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