JPMorgan says integration of First Republic Bank is going as per plan

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A branch of First Republic Bank is seen after Jamie Dimon's JPMorgan Chase & Co emerged as the winner of a weekend auction
A branch of First Republic Bank is seen after Jamie Dimon's JPMorgan Chase & Co emerged as the winner of a weekend auction of the bank in San Franciso, California, U.S. May 1, 2023. REUTERS/Hyun Joo Jin Purchase Licensing Rights, opens new tab
NEW YORK, Dec 5 (Reuters) - JPMorgan Chase's (JPM.N), opens new tab integration of failed First Republic Bank is going according to the plan as it looks to retain customers and build on services it acquired, said Marianne Lake, the Co-CEO of JPMorgan's consumer and community bank.
JPMorgan, the largest U.S. lender, has retained 90% of First Republic customers since the purchase in May.
"We have done the home lending integration, mortgage origination and servicing already," Lake told investors at the Goldman Sachs (GS.N), opens new tab U.S. Financial Services Conference on Tuesday. "We're going to do the deposit migration and integration by the middle of next year."
First Republic Bank was the largest U.S. lender to fail since 2008. The deal fueled JPMorgan's profits in the third quarter beyond Wall Street expectations, and the integration is going better than expected, executives said.
Consumer spending continues to be robust and is now in line with pre-pandemic levels, Lake said. Credit card loan growth is expected to reach double-digit percentages next year, but stay lower than 2023 levels, she said.
Mortgage lending is expected to remain flat, Lake added.
U.S. consumer confidence rose in November after declining for three consecutive months.
Americans are also planning to buy big-ticket items such as motor vehicles and houses over the next six months even as interest rates remain high.
But consumers with low credit scores are beginning to show signs of stress, with cash buffers shrinking for the lowest-income customers.
Separately, Lake said that the bank's net interest income is expected to exceed executives' earlier guidance. She previously served as the bank's finance chief.
Revenue from trading is expected to be flat in the fourth quarter while investment banking revenue will probably grow by a single-digit percentage, Lake added.

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Reporting by Nupur Anand in New York; Editing by Lananh Nguyen and Stephen Coates

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Nupur Anand is a U.S. banking correspondent at Reuters in New York. She focuses on JPMorgan Chase, Wells Fargo and regional banks. Anand covered banking and finance in India for more than a decade, chronicling the collapse of major lenders and turmoil at digital banks and cryptocurrencies. She has a degree in English literature from Delhi University and a postgraduate diploma in journalism from the Indian Institute of Journalism & New Media in Bangalore. Anand is also an award-winning fiction writer.

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