JPMorgan Chase (JPM) has named insider David Frame as the new CEO of its global private banking unit.
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The appointment is effective immediately and will see Frame lead JPMorgan’s wealth management unit that provides investment solutions to high-net-worth individuals and families. Private banking has become an increasingly important business for lenders such as JPMorgan Chase as they court wealthy clients and tap into a growing pool of global capital.
Beyond managing investments, private banks also provide lending, estate planning, and philanthropy services, helping to drive fee income and diversify a bank’s revenue streams. In recent years, other banks such as Morgan Stanley (MS) and Citigroup (C) have also pushed deeper into private banking as they diversify away from more cyclical trading and deal work such as mergers and acquisitions (M&A).
Client Assets
In the new role, Frame will lead the private banking unit’s global operations, expanding his responsibilities beyond his current role as U.S. private bank CEO. JPMorgan Chase has said previously that its private banking business oversees more than $2.9 trillion in client assets worldwide.
Demand for private banking services is on the rise as geopolitical tensions and economic uncertainty push wealthy individuals and families to spread their money across markets and different asset classes. In particular, demand is growing for private banks that can offer cross-border investments and access to fast-growing private markets. JPM stock is up 25% this year.
Is JPM Stock a Buy?
The stock of JPMorgan Chase has a consensus Moderate Buy rating among 20 Wall Street analysts. That rating is based on 14 Buy, five Hold, and one Sell recommendations issued in the last three months. The average JPM price target of $285.05 implies 3.30% downside from current levels.
