In a television interview on Tuesday, JPMorgan Chase & Co-Chief Executive Officer Jamie Dimon said consumer loan growth could take six to nine months to return to normal.
As individuals remained at home and used stimulus money to pay down debts when the pandemic began, consumer lending, particularly on credit cards, dropped sharply.
However, the economy is strong and can cope with interest rates rising 1% in the coming year, Dimon said, speaking in a pre-recorded interview with Fox Business. He mentioned:
“Loan growth on the business side will probably return to normal. On the consumer side, it will return to normal, it just may take another six to nine months.”
On January 14, Citigroup Inc (C.N), Wells Fargo & Co, and JPMorgan, the biggest U.S. bank by assets, will report quarterly results.
Dimon said the bank’s new consumer digital banking business in the United Kingdom, will be expanded to similar ventures in European countries. He added that deposits in those countries would be used, possibly for local consumer lending, as local laws allow.
While in the past the bank ruled out the ventures because they would have required opening branch offices, digital technology for consumer banking has made international expansion possible.
Dimon insists that JPMorgan continues to look for technology to acquire more markets. He said:
“Our team is out looking all the time at how we can enhance our services through acquisition, partnerships, vendoring, and partial ownership.”
In the past, the bank missed some opportunities but it already has stakes in more than 100 financial technology ventures around the world, according to Dimon.
