JPMorgan's ROE target will be challenging for next year or two, COO says
Dec. 08, 2021 5:09 PM ETJPMorgan Chase & Co. (JPM)PYPL, STRIP, ADYEYBy: Liz Kiesche, SA News Editor3 Comments
- JPMorgan Chase's (NYSE:JPM) ROE target of 17% that it set before the pandemic will be "challenging" for the next year or two as the bank continues to invest in its business, said Co-President and Chief Operating Officer Daniel Pinto during the Goldman Sachs 2021 U.S. Financial Services Conference.
- He sees the target as "achievable" in the medium term.
- Pinto also said he expects consumer credit-card balances to return to 2019 levels in 2023, after they bottomed out in May of this year.
- "Consumers have a great balance sheet. The consumer is in a great place," he said earlier in the conversation, when discussing the overall economy.
- Looking at the payment tech space, companies such as PayPal (NASDAQ:PYPL), Stripe (STRIP), and Adyen (OTCPK:ADYEY), "have created great client experiences. I think, at the same time, a lot of the banks are asleep at the the wheel," Pinto said.
- Still, there's opportunity for JPMorgan (JPM), he said. The bank has done well at bigger business. "We haven't done such a good job going into the small and medium-sized business," he said.
- While the fintech firms have done well in the small- and medium-end of the market, "when they go upmarket, it's not so easy. We have to compete with them and I have no doubt we can win."
- Early in the year, JPMorgan (JPM) CEO Jamie Dimon said he's up for the fight against fintechs. "We’ve just got to get quicker, better, faster," he said at the time.