Jamie Dimon, CEO of JPMorgan Chase, the largest U.S. bank, said the mergers and acquisitions (M&A) market has reached a peak with signs of overheating this year, adding that his firm could deploy up to $20 billion (about 30 trillion won) in firepower.
According to Bloomberg and Reuters on Wednesday, Dimon said at a Bernstein-hosted event in New York that "there could be an opportunity to acquire something with $10 billion to $20 billion within the next two years." He added, "Stock prices across the market, including JPMorgan, are high, so we are deploying capital with patience."
JPMorgan expanded its scale after the 2008 global financial crisis by acquiring large banks such as Bear Stearns and Washington Mutual. In 2023, it also bought First Republic Bank, which had become distressed in the aftermath of the Silicon Valley Bank (SVB) collapse.
Dimon further explained that JPMorgan is expected to hold $40 billion to $50 billion in surplus capital above the level required by banking regulators. The Donald Trump administration and the Federal Reserve have recently eased bank capital regulations in succession, strengthening the liquidity-supply function of large U.S. banks.
According to Dimon, JPMorgan's investment banking (IB) and equity trading divisions are expected to grow more than 10% year-on-year in the second quarter, following similar growth in the first quarter. Dimon also said the bank's annual expense forecast for this year had been raised by $1 billion to $106 billion from the previous $105 billion. "The M&A space is having its best year in several years, and the equity capital markets will also be tremendous this year," Dimon said. "Underwriters and companies are busy enough that there is significant exuberance."
