On May 22, according to media reports, JPMorgan Chase is considering consolidating the assets of First Republic Bank, including luxury renovations of some of the latter's outlets, which will be used in the future to serve the wealthy.。

The Manhattan-based largest U.S. commercial bank is said to be looking to integrate First Republic's experience in asset management and client finance services to JPMorgan Chase。They are considering luxury renovations to some of the outlets of First Republic Bank, which will later be used mainly to advise wealthy clients on investment and asset management.。In addition, Komo intends to retain First Republic's talent team of financial advisors and consider using its long-established client base to expand its business and increase revenue.。

Earlier this month, First Republic became the third bank to fail in the crisis and the second largest bank to fail in U.S. history due to a user run caused by the ongoing banking crisis.。In this case, JPMorgan entered into an agreement with First Republic Bank to acquire all of its deposits and "substantially all" assets.。

On the same day, JPMorgan Chase CEO Jamie Dimon (Jamie Dimon) said that when the First Republic Bank was in trouble, the U.S. government asked JPMorgan Chase to help, and eventually JPMorgan Chase took action.。Dimon said the acquisition was "slightly helpful" to JPMorgan overall.。

At present, it seems that the role of the acquisition of First Republic to JPMorgan Chase, is not "slightly helpful" as simple as that。

On the one hand, the wealth management business, known as the "ace business" of First Republic Bank, is just the short board of JPMorgan Chase.。

It is reported that although the small mogui is the largest commercial bank in the United States, holding 13% of all U.S. depositors' deposits and 21% of all credit card customers' spending, the bank lags behind its competitors in serving the financial services of the wealthy.。

The First Republic Bank, founded in 1985, has been providing huge loans to the wealthy for many years.。According to its founder, Jim Herbert, the strength of First Republic Bank lies in the robustness of its business model, as its borrower customers have a "good credit history."。Since 2008, the First Republic Bank has been spreading its roots in the wealthy areas of the United States, and has been repeatedly praised by customers for its good service attitude and efficient business completion, and has gained a reputation in the wealthy circles of the United States.。

It can be argued that the first Republic's retained strong customer chain of business giants and technology entrepreneurs is its invisible wealth that cannot be reflected on the books, and this is precisely one of the few shortcomings of JPMorgan Chase.。This time, Xiao Mo wants to transform some of the remaining outlets of the First Republic, and retain its original team of financial advisers, there is no doubt that he wants to take advantage of the "east wind" of the First Republic to make the cake of wealth management bigger again and consolidate his dominant position in the market.。

On the other hand, the acquisition will bring strong cash flow to JPMorgan Chase.。

On May 22, according to a report released by JPMorgan Chase at an investor day event, after completing the acquisition of First Republic Bank, it expects its net interest income to jump from its previous estimate of $81 billion to $84 billion in 2023, an increase of $3 billion.。

However, the bank also noted that the cost of integration into the Daiichi takeover deal would add $3.5 billion to its spending this year, and it expects the entire process could take about 12 months.。

In response, Jeremy Barnum, JPMorgan's chief financial officer, said: "We currently assume that about half of the integration costs will be incurred this year as the First Republic franchise continues to be integrated.。We want to have a choice in terms of service model, which may lead to higher fees。But he added that if spending was higher, it would also bring in additional revenue.。

According to JPMorgan Chase's earnings for the first quarter of this year, the bank's net revenue during the period reached a record 383.$500 million, up 25 percent。In addition, JPMorgan's net interest income for the quarter was $20.8 billion, up 49% year-over-year to a single-quarter all-time high.。

However, dragged down by the banking crisis, Xiaomo's deposit balance at the end of the first quarter was only 2.$37 trillion, down more than $180 billion from the same period last year.。By average deposits, the bank's average deposits fell 8 percentage points year-on-year in the first three months of the year。

Barnum said that the outflow of deposits to money market funds following the recent collapse of regional banks has been noted and that system-wide deposits are expected to continue to fall in the future。He said: "Given these pressures, it is important to reiterate our deposit strategy.。JPMorgan will try to maintain ties with major banks。"

With the banking crisis still in doubt, deposits are undoubtedly the lifeline for banks。While JPMorgan's deposits and net interest income look relatively solid at the moment, the ability to earn strong net interest income against the backdrop of high integration costs will undoubtedly boost the bank's and the market's confidence in the acquisition.。

In addition, during the Investor Day event, JPMorgan Chase also expressed the bank's optimism about the M & A transaction and reiterated its 17% ROTCE (Return on Tangible Common Equity) target。

As of last night's close in U.S. stocks, JPMorgan closed down 0, dragged down by the recent poor performance of regional bank stocks..83%, at 138.03 USD。

Eagle Statement: This article is for reference only and does not constitute personal investment and operational advice.。Special reminder, the article is original content, without permission may not be reproduced。