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JPM Seeks Africa Expansion, CEO Dimon to Visit Continent Next Month
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JPMorgan (JPM - Free Report) , which has long considered overseas markets as a key contributor to its growth, now seeks to expand in the African continent. Per a Reuters report, citing four sources familiar with the matter, the bank’s CEO, Jamie Dimon, will travel to Africa in mid-October.
JPMorgan has already been offering asset and wealth management, and commercial and investment banking services in South Africa and Nigeria.
During his trip next month to Africa, which will be the first in seven years, Dimon is expected to visit Kenya and Ivory Coast, along with South Africa and Nigeria.
Delving Deeper Into JPM’s Africa Expansion
On the continent, Dimon is expected to meet clients, government officials and bank executives. JPM, which manages more than $4 trillion in assets, is not likely to pursue an M&A strategy for expansion. Instead, the bank is expected to continue its approach of building a client base organically.
JPMorgan currently has sub-Saharan Africa offices in Johannesburg, Cape Town and Lagos. Last year, JPM had plans to open up an office in Kenya. However, that has not worked out yet. Moreover, in 2018, Dimon was looking to enter Ghana and Kenya, but that plan could not be fulfilled as JPM faced regulatory hurdles in those markets.
The last time Dimon visited the African continent was in 2017. Since then, the disruption caused by the pandemic has restricted him from visiting Africa. However, JPMorgan believes that the African markets have huge potential for growth by offering services in asset management, payments, and commercial and investment banking services.
Like JPMorgan, Other Global Banks Seek Africa Expansion
Various international lenders seek a larger share of sovereign debt and corporate transactions in Africa, while aiming to serve more international companies that have operations on the continent.
Global banks want to grow their revenues by offering wealth management services that provide access to investments like offshore equity, debt and mutual funds. The banking giants are also offering private banking services, seeking to differentiate themselves from local and regional lenders that are prevalent in retail markets.
Most consumers on the African continent have access to financial services through local and regional commercial banks. However, private banking is now being considered as an area wherein the next evolution would be.
Similar to JPM, banks like Barclays (BCS - Free Report) and Citigroup Inc. (C - Free Report) seek expansion in Africa. Both BCS and Citigroup have increased their operations in the continent to tap into its economic growth and emerging opportunities.
JPMorgan’s Other Growth Plans
JPM wants to increase its corporate banking presence in the Swiss markets by utilizing its blockchain technology. Lutz Karl, who oversees JPM’s corporate banking operations in Germany, Switzerland and Austria, said that the Wall Street giant is in discussions with potential clients in Switzerland as the bank projects significant growth in its Swiss corporate banking division over the next three to five years.
Moreover, as a large number of wealthy individuals move to the Gulf, JPMorgan has set up a private banking team in Dubai, the Gulf’s financial hub, to provide wealth management services.
Karim Rekik, the head of JPMorgan’s Emerging Markets and Middle East, International Private Bank, said, “The Middle East has for some time now, been a fast-growing global hub for innovation, attracting global interest and investment. Our dedicated local team strengthen our ability to better serve our clients.”
This July, Marianne Lake, the CEO of JPM’s Consumer and Community Banking segment, said in an interview with Reuters that the bank aims to capture 15% of the nation’s consumer deposits.
Likewise, in June, JPM disclosed its plans of expanding in South Florida, which is one of the bank’s key strategic regions in the country. The company announced that it would open a 13,000-square-foot office in West Palm Beach.
Despite the proliferation of mobile and online banking options, JPMorgan has also been expanding its footprint in new regions. In February 2024, the company announced plans to open more than 500 new branches by 2027. This initiative will solidify its position as the bank with the largest branch network and a presence in all 48 states in the United States. In 2018, it announced plans to enter 25 new markets by opening new branches.
JPMorgan’s Price Performance & Zacks Rank
So far this year, JPM shares have gained 22% compared with the industry’s 18.1% growth.
Image: Bigstock
JPM Seeks Africa Expansion, CEO Dimon to Visit Continent Next Month
JPMorgan (JPM - Free Report) , which has long considered overseas markets as a key contributor to its growth, now seeks to expand in the African continent. Per a Reuters report, citing four sources familiar with the matter, the bank’s CEO, Jamie Dimon, will travel to Africa in mid-October.
JPMorgan has already been offering asset and wealth management, and commercial and investment banking services in South Africa and Nigeria.
During his trip next month to Africa, which will be the first in seven years, Dimon is expected to visit Kenya and Ivory Coast, along with South Africa and Nigeria.
Delving Deeper Into JPM’s Africa Expansion
On the continent, Dimon is expected to meet clients, government officials and bank executives. JPM, which manages more than $4 trillion in assets, is not likely to pursue an M&A strategy for expansion. Instead, the bank is expected to continue its approach of building a client base organically.
JPMorgan currently has sub-Saharan Africa offices in Johannesburg, Cape Town and Lagos. Last year, JPM had plans to open up an office in Kenya. However, that has not worked out yet. Moreover, in 2018, Dimon was looking to enter Ghana and Kenya, but that plan could not be fulfilled as JPM faced regulatory hurdles in those markets.
The last time Dimon visited the African continent was in 2017. Since then, the disruption caused by the pandemic has restricted him from visiting Africa. However, JPMorgan believes that the African markets have huge potential for growth by offering services in asset management, payments, and commercial and investment banking services.
Like JPMorgan, Other Global Banks Seek Africa Expansion
Various international lenders seek a larger share of sovereign debt and corporate transactions in Africa, while aiming to serve more international companies that have operations on the continent.
Global banks want to grow their revenues by offering wealth management services that provide access to investments like offshore equity, debt and mutual funds. The banking giants are also offering private banking services, seeking to differentiate themselves from local and regional lenders that are prevalent in retail markets.
Most consumers on the African continent have access to financial services through local and regional commercial banks. However, private banking is now being considered as an area wherein the next evolution would be.
Similar to JPM, banks like Barclays (BCS - Free Report) and Citigroup Inc. (C - Free Report) seek expansion in Africa. Both BCS and Citigroup have increased their operations in the continent to tap into its economic growth and emerging opportunities.
JPMorgan’s Other Growth Plans
JPM wants to increase its corporate banking presence in the Swiss markets by utilizing its blockchain technology. Lutz Karl, who oversees JPM’s corporate banking operations in Germany, Switzerland and Austria, said that the Wall Street giant is in discussions with potential clients in Switzerland as the bank projects significant growth in its Swiss corporate banking division over the next three to five years.
Moreover, as a large number of wealthy individuals move to the Gulf, JPMorgan has set up a private banking team in Dubai, the Gulf’s financial hub, to provide wealth management services.
Karim Rekik, the head of JPMorgan’s Emerging Markets and Middle East, International Private Bank, said, “The Middle East has for some time now, been a fast-growing global hub for innovation, attracting global interest and investment. Our dedicated local team strengthen our ability to better serve our clients.”
This July, Marianne Lake, the CEO of JPM’s Consumer and Community Banking segment, said in an interview with Reuters that the bank aims to capture 15% of the nation’s consumer deposits.
Likewise, in June, JPM disclosed its plans of expanding in South Florida, which is one of the bank’s key strategic regions in the country. The company announced that it would open a 13,000-square-foot office in West Palm Beach.
Despite the proliferation of mobile and online banking options, JPMorgan has also been expanding its footprint in new regions. In February 2024, the company announced plans to open more than 500 new branches by 2027. This initiative will solidify its position as the bank with the largest branch network and a presence in all 48 states in the United States. In 2018, it announced plans to enter 25 new markets by opening new branches.
JPMorgan’s Price Performance & Zacks Rank
So far this year, JPM shares have gained 22% compared with the industry’s 18.1% growth.
Image Source: Zacks Investment Research
Currently, JPMorgan carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.