The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
JPMorgan's approach is in contrast to Bank of America's which plans to close 10% of its branches as mobile and Internet banking have reduced the need to have a branch on every corner of the city. JPMorgan is one the largest and most diversified banks in the U.S., and competes primarily with Bank of America, Wells Fargo, Goldman Sachs (GS), Deutsche Bank (DB) and Morgan Stanley (MS).We have a price estimate of $45.60 on JPMorgan's stock, implying a 15% premium to the current market price. Bank of America serves nearly 59 million customers and has the most deposits in the U.S., accounting for nearly 12 % of the total deposit base. Total deposits increased from $303 billion in 2005 to $411 billion in 2010 with the acquisitions of LaSalle, US Trust, Countrywide and Merrill Lynch cementing its place as the leader in deposits. We expect Bank of America's deposit base to remain strong and reach $530 billion by the end of our forecast period. JPMorgan has also increased its deposit base steadily over the last five years from $190 billion in 2006 to $337 billion in 2010. The acquisition of Washington Mutual in September 2008 helped it increase its customer base while adding 2,200 branches, 5,000 ATMs and 12.6 million checking, savings, mortgage and credit card accounts. We expect JPMorgan's deposit base to grow at a faster rate than Bank of America's and reach $540 billion by the end of our forecast, largely because of its plan to open more branches. By the end of our forecast period, we expect JPMorgan to overtake Bank of America as the largest U.S. bank by deposits. See our full analysis of JPMorgan here and our full analysis of Bank of America here.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV