Next year's $105 billion spending guidance exceeds expectations, with Morgan Stanley's overall decline of nearly 5%

创世 · 发表于 2025-12-10 09:30:49

JPMorgan Chase executive Marianne Lake said on Tuesday that the bank expects expenses to reach $105 billion next year, a guidance higher than analysts' expectations and causing JPMorgan Chase's stock price to plummet by more than 4.7% during trading.

According to media reports, Lake, the current CEO of JPMorgan's Consumer and Community Banking business, disclosed multiple of JPMorgan's latest business prospects at a Goldman Sachs meeting on Tuesday. She stated that JPMorgan expects a credit card write off rate of approximately 3.3% by 2025, and expects full year expenditures to reach $105 billion in 2026.

This expenditure guidance is higher than the highest expectations given by analysts and also exceeds the average expectation of $101.1 billion. If the expenditure is about 105 billion US dollars, it will be about 9% higher than analysts' current expectations for expenses in 2025. In the first nine months of this year, JPMorgan's non interest expenses increased by 4% year-on-year.

She expects that the biggest driving factor for cost growth is "expenses related to business scale and growth". She also pointed out that the current consumer environment is "somewhat fragile", and strategic investments and the "structural impact of inflation" are also important reasons.

Lake stated that the consumer and community banking department she is responsible for is an "important factor" driving overall spending growth. She cited examples that the incentive compensation of financial advisors, product marketing, network construction, and investment in artificial intelligence are all reasons for the increase in costs.

JPMorgan Chase's stock price fell more than 4.7% in intraday trading on Tuesday, marking the largest single day intraday decline since mid October and becoming the worst performing component of the KBW Bank Index.

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Lake's statement on consumer health has dragged down the entire banking sector. Citigroup and Bank of America's stock prices also fell simultaneously, with both experiencing declines of over 1%.

On a more positive note, Lake pointed out that JPMorgan Chase's investment banking fee revenue in the fourth quarter is expected to achieve low single digit growth year-on-year, while its market business revenue is expected to grow to a low double-digit level year-on-year.

In addition, Lake stated at the meeting that JPMorgan Chase is still expected to add 10.5 million credit card accounts by 2025, and the target progress is in line with expectations.

[全球] Next year's $105 billion spending guidance exceeds expectations, with Morgan Stanley's overall decline of nearly 5%

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