This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

JPMorgan Steps Up Campaign for Depositors

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.

NEW YORK (Trefis) -- JPMorgan Chase (JPM) recently announced that the company plans to open as many as 2,000 new branches in the U.S., with more than half of them in Florida and California.

JPMorgan is targeting the states dominated by Bank of America (BAC) and Wells Fargo (WFC), the largest U.S. bank by deposits and the bank with the largest branch network respectively.

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.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs