By Nupur Anand
NEW YORK (Reuters) - JPMorgan Chase investors will be eager to see how the largest U.S. U.S. lenders and the world’s largest economy are affected by trading partner tariffs on Monday’s bank investor day, as economic uncertainty remains.
Financial markets have been volatile in the first few months of the Trump administration as it raised tariffs on trading partners prompted some investors to stay away from U.S. assets. The White House has since made progress in tariff transactions.
CEO Jamie Dimon and his team will showcase banking strategies, focus areas and provide insights on business and consumer sentiment on Monday at JPMorgan Investor Day in New York.
Dimon warns that “turbulence” in the economy is as customers become cautious and back off.
Piper Sandler said in a note that since last month was still very unclear, the information made investors feel that investment banking, the appearance of loans and the quality of assets may still be risky.
While investors don’t expect succession surprise announcements, they do hope the company will showcase a potential succession Dimon.
"We want everyone to watch the next generation of leadership. The timing of the CEO's succession has historically been a problem with this event," said Barclays analyst Jason Goldberg.
Dimon, 69, has run JPMorgan for more than 19 years, surpassing many other CEOs and said on the previous investor day that the succession timeline is “not five years anymore.”
Troy Rohrbaugh and Doug Petno, co-CEOs of its Business and Investment Bank, are the top candidates for the job. Consumer and Community Bank CEO Marianne Lake and Asset and Wealth Management CEO Mary Erdoes are also operating.
According to Morgan Stanley analysts, Lake is seen as the leader, adding that on Investor Day, when Dimon will drop clues.
Analysts will not expect any significant changes in their earnings outlook. The bank revised its net interest income outlook in April.
Although the returns on transactions are expected to appear high due to market volatility, investment bank fees may increase investment bank fees as trading activity slows.
Wells Fargo analyst Mike Mayo said in a note that he was also worried about how much the largest banks continue to grow when other banks seem to be more upfront and willing to compete.
Mayo added: "The giants of this giant's 'giants' win more, faster speeds all seem to be increasing. It helps its ability to invest in growth, but still maintains top efficiency."
Investors will also be eager to hear how banks deploy excess capital, including whether they have purchased more stocks, and will also be eager to learn more about JPMorgan’s use of artificial intelligence with the bank’s $18 billion technology budget.
(Reported by Nupur Anand in New York, editor of Nick Zieminski)