JPMorgan to see $3 bln from First Republic deal
STORY: JP Morgan Chase is getting a $3 billion dollar boost from its purchase of First Republic Bank, after U.S. regulators seized the failed lender and sold it to the nation's largest bank.
According to a presentation for its investor day Monday, JP Morgan said its net interest income will rise by that much from the acquisition.
First Republic was the third U.S. regional lender to fail since March in a sector-wide upheaval that roiled financial stocks, deepened worries of a crisis and heaped pressure on mid-sized banks.
JP Morgan emerged as one of the biggest beneficiaries of the crisis due to an influx of deposits from customers who sought safety in larger institutions.
It did say integration costs from the First Republic deal will add $3.5 billion to its expenses this year.
JP Morgan President and Chief Operating Officer Daniel Pinto said while the global economy is doing fine, it is showing some signs of deterioration.
Still, executives said U.S. consumers' finances remain resilient, as the bank continues to monitor talks on raising the U.S. debt ceiling.
JP Morgan shares were down fractionally in late morning trading.