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JPMorgan JPM aims to capture 15% of the nation’s consumer deposits, Marianne Lake, CEO of the Consumer and Community Banking segment, said in an interview with Reuters. This aligns with the company’s aim to expand its market share and scalability.

As of the end of June 2023, JPM accounted for an 11.3% share of U.S. retail deposits.

Lake stated, “Market share is a game of inches, and it is a very powerful game. While we are not putting any timeline on it, our strategies are geared towards achieving it.”

As of Mar 31, 2024, JPMorgan had $1.97 trillion worth of U.S. deposits, which grew marginally on a year-over-year basis. As of the same date, the company's total deposits (including non-U.S. deposits) were $2.43 trillion. Meanwhile, its prominent peer and America’s second-biggest bank — Bank of America BAC — had $1.95 trillion of total deposits as of the same date.

JPM’s deposit growth can partially be attributed to the May 2023 acquisition of First Republic, which added $92 billion.

Lake emphasized that JPMorgan remains focused on enhancing its capabilities to gain a competitive edge to succeed. The company continues to invest in infrastructure and data to modernize it, leveraging AI, payments and other business strategies. She also added that these investments aim to sustain the company’s leadership position over five to 10 years from now.

The recent move aligns with JPM’s growth strategy to boost its deposit franchise. This February, the company announced plans to expand its branch network. The company is expected to open more than 500 new branches by 2027 and renovate roughly 1,700 existing locations. This will solidify its position as the bank with the largest branch network and a presence in all 48 states in the United States. Similarly, BAC announced plans to expand its financial center network into nine new markets by 2026.

Additionally, JPMorgan is engaged in opportunistic buyouts to scale up its business. In 2023, the company increased its stake in Brazil's C6 Bank to 46% from 40% and formed a strategic alliance with Cleareye.ai (a financial technology firm focused on trade finance). In 2022, it acquired Renovite and a 49% stake in Greece-based Viva Wallet and Global Shares.

Shares of JPMorgan have rallied 40.9% over the past year.

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At present, JPM carries a Zacks Rank #3 (Hold).

A Major Banking Stock to Consider

A better-ranked banking stock worth a look is Northern Trust Corporation NTRS, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for NTRS’ current-year earnings has been revised marginally upward in the past 30 days. The company’s shares have risen 5.4% in the past six months.

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