JPMorgan said the bank can increase profit 50% in the next four to five years as higher rates boost interest margins and the firm cuts 5,500 more jobs from retail units than it had forecast.
Bloomberg reports that profit can reach $27bn if legal costs subside and income from loans and investments improves, the company said today in a slide presentation for its annual investor day. The bank now plans to eliminate about 8,000 jobs in consumer and mortgage banking this year as demand wanes for refinancings. Hiring in areas such as compliance and risk management will offset some of the cuts, the company said.
Managers led by Chief Executive Officer Jamie Dimon are laying out strategy at the bank after a year marred by clashes with regulators and $23bn in legal costs. Dimon, 57, is seeking to accelerate growth and trim unwanted units while fending off allegations that the firm misled buyers of mortgage bonds, rigged markets and ignored suspicious activity by clients.
'We now have clarity on most of the regulatory rules, and we believe that we, more than others, will successfully adapt to the new financial architecture and will emerge where we started -- with best-in-class margins and returns', Chief Financial Officer Marianne Lake said at the investor conference.
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