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JPMorgan warns British digital bank arm could top USD 1 billion in losses in the next years

Tuesday 24 May 2022 14:36 CET | News

JPMorgan Chase has announced it is expecting to lose more than USD 1 billion in the next few years on its new digital-only international consumer bank that began operations in the UK in 2021.

According to declarations offered to Financial Times, company officials have stated that JPMorgan, the largest US bank by assets, estimated that losses on the venture would be about USD 450 million in 2022 and a similar amount for the next few years. Officials added that the business would get back on track financially afterwards, depending on its ability to execute on its strategy.

JPMorgan so far has made two outside investments to help with the efforts, a buyout of British robo-adviser Nutmeg and a minority stake in the Brazilian digital bank C6. 

Since its launch in September, Chase in the UK had attracted over 500,000 customers and amassed over USD 10 billion in deposits, according to FT.



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Keywords: online banking, digital banking, expansion, fintech
Categories: Banking & Fintech
Companies: Chase
Countries: United Kingdom
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Banking & Fintech

Chase

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