JPMorgan is expanding branches as rivals also invest in their networks, and the article argues the challenge is retaining deposits without overpaying while earning enough from each relationship to cover acquisition and servicing costs. JPMorgan trades at 13x forward P/E, and its Q2 EPS was $7.70, or $6.14 excluding significant securities gains. Analysts expect roughly 4% adjusted EPS growth in 2027 versus 2026, compared with 14% for peer Bank of America (BAC), which trades at 10x forward P/E. JPMorgan attributes about 40% of its deposit-share gains since 2019 to new branches, and says 90% of its first-time wealth investors in 2025 came through branch referrals. However, national retail deposit share slipped to 11.1% in 2025, and average Business Banking loans fell 5% in Q2 2026.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
JPM
▲ Likely positiveJPMorgan Chase
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Financials |
| Industry | Diversified Banks |
| Market cap | $891.9B |
| Close on 10/19/2026 | 333.53 |
| Change that session | -1.82% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- The Investment Case for JPMorgan Chase & Co. (JPM)
Diamond Hill's Large Cap Strategy returned 3.18% net of fees in Q3 2026, outperforming the 2.61% return of the Russell 1000 Value Index, and added JPMorgan Chase as a new holding. The firm said JPMorgan's scale should support continued technology investment that improves efficiency, helping contain expense growth and drive operating leverage. It expects below-average returns across the market due to high equity valuations, though attractive bottom-up opportunities remain. As of October 16, 2026, JPM closed at $339.72, with a $903.04 billion market cap, up 5.43% year-to-date and trading in a 52-week range of $279.10 to $366.50. Hedge fund portfolios holding JPM fell to 113 at the end of Q2 from 131 the previous quarter.
- Bank Earnings Roundup : Pockets of Opportunity in a Fairly Valued Sector
The report views the US banking sector as fairly valued, with regional banks looking more attractive than money-center banks. US bank shares were pressured in 2026 by unemployment linked to AI disruption, higher inflation, Federal Reserve rate hikes and rising 10-year Treasury yields. Covered banks now trade at a weighted average price/fair value of 0.96, down from 1.01 at the end of the second quarter, with BAC and RF at discounts of 15% and 18% to fair value estimates. Loan growth is expected to reach high-single digits in 2026, though intense deposit competition will cap net interest margin upside. The cycle-to-date beta of 35% is below the 47% historical average, meaning banks have benefited less from falling rates than in the past.
- Bank of America (BAC): Is Its Deposit Franchise Getting Stronger as Lending Accelerates?
Bank of America's average loans rose 8% year over year in the second quarter, faster than the 2% growth in deposits, with consumer balances up about 1% versus 8% in Global Banking. Net interest income still increased 9%. Average Consumer Banking deposits reached $957 billion, up from $950.8 billion in the first quarter, while the rate paid on them fell to 0.48% from 0.58% a year earlier. The bank estimates that 92% of consumer checking accounts are customers' primary accounts, which the article says gives customers reasons to stay. Global Banking deposits paid 2.23%, and the article notes faster growth in that category could increase sensitivity to interest rates. The stock trades at about 11x forward P/E versus 13x trailing.
- Foreign banks play it safe with low - cost deposits , careful lending
Data from Bangladesh Bank shows nine foreign commercial banks held Tk 87,378 crore in deposits as of June 2026, with current and savings accounts making up 37.5% and fixed deposits just 14%. This low-cost funding, combined with lending mainly to large, well-rated corporations and multinationals, has helped them keep healthy profit margins. However, their net profit fell by Tk 1,417 crore from Tk 3,738 crore in July–December 2025. Their non-performing loan ratio rose to 6.5% in June 2026 from 5.9% in December 2025, though it remains well below the industry average. Loans of Tk 48,700 crore remain concentrated in industry and trade, and their capital adequacy ratio stood at 41.21%.
- Bank deposits hit a record high, mainly from individuals
Customer deposits at credit institutions reached about VND 17.77 quadrillion at end-August, up nearly VND 1.26 quadrillion from end-2025 and 11% year on year. Resident deposits reached about VND 11.43 quadrillion, the highest level on record, lifting their share of total deposits to about 64.34%, while corporate deposits stood at about VND 6.34 quadrillion. SSI Research attributes the growth to higher savings rates, with some private banks offering 7-9% a year on certain terms, faster public investment disbursement, and less attractive alternatives such as real estate, gold, foreign currency and digital assets. The firm says liquidity pressure should be watched in the fourth quarter, when year-end credit demand typically rises.
- Deposit rates on October 17 at Agribank, Vietcombank, BIDV, VietinBank, MB, VPBank, Techcombank, Sacombank, HDBank, ...
An online survey of deposit rates at 35 banks on October 17 showed spreads of up to 4.3 percentage points at some tenors. Sacombank led the 6-month and 12-month terms at 7.2% and 7.5% a year, while VPBank posted the highest 18-month rate at 7.9%. The Big4 group of banks all offered 6.8% a year for 12 months. Many banks offered about 4.75% a year on 3-month deposits, while SCB's 1.9% was the lowest in the surveyed list.
Related markets
Latest news
- Housing is flashing warning signs just as the Fed weighs more interest rate hikes
The U.S. housing market weakened further in September even as price pressures persisted, complicating the Federal Reserve's decisions on whether to raise interest rates. The 30-year mortgage rate was above 7% for most of September and ended the month around 7.6%, and could rise further if the Fed hikes short-term rates as expected. The National Association of Realtors' pending sales index fell 7.3% for the month and was 11.3% lower than a year earlier, an all-time low in records dating to 2001. Privately owned housing starts dropped 5.2% on a seasonally adjusted annualized basis, far worse than the expected 0.4% decline, while Goldman Sachs expects affordability pressures to dominate the housing market in 2027.
- Better Nuclear Energy Stock to Buy After the Sell-Off: Oklo vs. X-Energy
This article compares next-generation nuclear developers Oklo (OKLO) and X-Energy (XE) after their recent sell-offs. Oklo develops Aurora microreactors rated at 15 MWe to 75 MWe and expects to start deploying its first commercial reactors in 2027, with revenue projected to rise from less than $3 million in 2026 to $51 million in 2028. X-Energy sells Xe-100 small modular reactors, plans its first deployments in the early 2030s, and is projected to grow revenue from $212 million to $1.2 billion over 2026–2028. The author notes Oklo's $5.1 billion market cap equals 100 times its 2028 sales, versus 2.5 times for X-Energy's $3.0 billion market cap, and suggests X-Energy appears undervalued relative to its growth potential.
- Trump's FTC Subpoenas OpenAI and Anthropic. Inside the $500 Billion Threat Faced by Microsoft, Amazon, and Google
The U.S. Federal Trade Commission sent civil subpoenas to OpenAI and Anthropic on Oct. 15 as part of a consumer-protection probe, according to Axios. The demands seek documents on security incidents, safeguarding practices, marketing materials and privacy policies, and the FTC reportedly plans to have top AI executives testify. The combined stakes held by Microsoft, Amazon and Alphabet in the two labs total about $554 billion at recent valuations. The article argues the bigger financial risk lies in how the investigation could affect the price the labs fetch when they go public.
- Bitcoin's Next Move: Here's What to Watch
Bitcoin trades just below $83,000, above its 50-day EMA ($80,702.8) and 200-day EMA ($76,123.1), after total crypto market capitalization rose nearly 2% to $2.8 trillion on Tuesday. The RSI at 53.34 indicates neutral momentum with a slightly positive tilt. The nearest resistance is $87,371, which Bitcoin would need to close above on the daily chart to confirm a new upward move, while support sits at $80,433 and $76,140. The backdrop remains tense, with Brent crude near $110 a barrel amid attacks on tankers in the Strait of Hormuz and the Federal Reserve set to meet on Oct. 27–28.
- Strive closes $630M SATS IPO, leaves Bitcoin allocation unspecified
Strive, a Bitcoin treasury company led by chairman and CEO Matt Cole, closed its upsized IPO of SATS preferred stock on Oct. 20, raising $630 million gross by selling 7 million shares at $90 each. The company has not specified how much of the estimated $608.15 million in net proceeds will go to Bitcoin, though its SEC filing lists Bitcoin purchases among several possible uses. At an illustrative price of $82,500, full allocation would buy about 7,372 BTC, lifting holdings from 36,818 BTC to roughly 44,190 BTC, which would exceed Metaplanet's reported 44,000 BTC. SATS carry a 15% annual cumulative dividend on a $100 stated amount, payable when declared, with the first payments scheduled from Nov. 9.
- When Interest Rates Move, These 7 Income Stocks React Very Differently
The 10-year Treasury yield is now over 5%, near its highest level in a quarter century, up from about 4% before the war with Iran began. Mortgage REITs AGNC (yield near 17%) and Annaly (over 16%) are among the most rate-sensitive because they borrow short-term to fund long-term investments, and both shares have fallen sharply. Coca-Cola (about 2.3%) is far less sensitive, with mostly long-term fixed-rate debt and pricing power, and its shares have risen more than 30% this year. Energy Transfer (about 6.7%) and Enterprise Products Partners (about 6.1%) have mixed sensitivity, partly offset by higher oil and gas prices. Realty Income (5.9%) and VICI Properties (about 7.9%) are less rate-sensitive than mortgage REITs, and Realty Income mitigates its impact through private capital partnerships.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.