2023-05-10 18:21:03
Dhe largest US bank has grown enormously in Europe. In 2022, the total assets of JP Morgan SE, based in Frankfurt, grew from 281 to almost 436 billion euros, according to the bank’s annual report. This means that JP Morgan has moved up from seventh to fifth place among banks in Germany in terms of assets held. Its total assets are now larger than those of Landesbank Baden-Württemberg (EUR 324 billion) and Unicredit/Hypo-Vereinsbank (EUR 312 billion) and are almost level with Commerzbank (EUR 477 billion) in fourth place. JP Morgan does not operate a private customer business in this country – not yet.
A major reason for the strong balance sheet growth lies in the merger of the three banks of JP Morgan in Germany, Ireland and Luxembourg under the umbrella of a European Company (SE), which was formally completed on January 22, 2022. A good 4000 employees work in the 14 branches – the most important are Dublin, Frankfurt, London, Luxembourg and Paris – around 700 of them in Frankfurt.
Three pillars
Many employees specialize in investment banking and corporate customer business: They help companies and states raise capital (e.g. the sale of new bonds and shares), process payment transactions in particular with other banks in 35 currencies and grant loans totaling 16 billion euros since two years no longer only to large companies, but also to medium-sized companies.
In addition, JP Morgan SE is particularly active in securities trading at its Paris location, especially in the trading business with fixed-income securities, which will be booming in 2022, and in asset management for wealthy private individuals. With this business model, JP Morgan is probably the strongest competitor in Germany for Deutsche Bank and the Landesbanken, and less so for Commerzbank. But that could change.
Private customer business planned
Because JP Morgan plans to open its online bank called “Chase”, which was launched in Great Britain in the fourth quarter of 2021, in Germany by 2025 at the latest. Germany is to become the second market for this private customer bank, as the FAZ reported at the beginning of February. A team has been being built up for this at the Berlin location for months. The target group for this bank with an app but no branches is not young people such as the customers of N26, but rather people in their 30s to 50s who are supposed to have their salary accounts at JP Morgan. However, the product range in Great Britain is not yet complete, for example there is no possibility of taking out real estate loans. Nevertheless, Chase would target a similar customer base in Germany as is currently served by Commerzbank via the Comdirect brand or in the Bayerische Landesbank via the direct bank DKB.
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