FRANKFURT (Reuters) -JPMorgan will expand its online bank Chase to Germany and other European Union countries, CEO Jamie Dimon told German newspaper Handelsblatt, a move that increases competition for European rivals in a crowded market.
Reuters has reported preparations for the move, but the CEO’s comments to Handelsblatt published on Friday mark the first official confirmation.
In its first such foray outside the United States, JPMorgan entered the British market with a digital-only retail offering in 2021 and executives have signalled their aim was to expand this to other countries.
“It has always been clear to us that we want to introduce Chase not only in the UK, but also in Germany and other European countries,” Dimon was quoted as saying. “We have ambitious plans.”
He said the timing was undecided. A spokesperson for JPMorgan confirmed the report and wouldn’t comment on timing.
U.S. banks have been looking to offset lucrative but at times volatile returns in investment banking with steadier revenues, although they face a competitive consumer market dominated by local incumbents, where margins are thin.
JPMorgan, whose European Union hub is in the German financial centre of Frankfurt, has become one of the largest advisory banks in Germany in recent years, and is expanding to target more of the medium-sized firms that form the backbone of Europe’s largest economy.
Last year, Deutsche Bank analysts wrote in a note that while JPMorgan seemed likely to expand its retail business into the EU, “why does it make sense to expand retail banking globally when other banks haven’t been able to do so and the global regulatory burden is high?”
Dimon told Handelsblatt he was confident of success.
“In Germany, ‘Chase’ is not yet so well known, but worldwide it is a strong brand. We are also a trustworthy bank with a strong balance sheet – and private customers know that,” he was quoted as saying.
(Reporting by Tom Sims and Rachel More; Editing by Christian Schmollinger)