Splitting up JP Morgan could lead to $59bn value increase

A Billion Dollars

Jamie won't be best pleased.

Forbes reports that splitting up JP Morgan could lead to a $59bn jump in value. 

The $59bn represents the difference between the company’s current market capitalisation and what its business units would be worth. It’s not the first time calls have been made to split up the nation’s biggest bank and it likely won’t be the last.

As low interest rates continue to pressure margins and legal troubles pile up at JP Morgan it may be worth more to shareholders after it’s broken up. In fact, JP Morgan’s individual business units are worth 30% more than the big bank as a whole, according to KBW analyst Christopher Mutascio.

Mutascio notes in his report today that a break up is unlikely but if done would create more value for JPMorgan shareholders.

'JPM has lagged that of several other largecap banks within our coverage universe in recent weeks as headline risk to government investigations and litigations has weighed on the stock,' he notes.

To access the complete Forbes article hit the link below

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