JPMorgan Chase Raises Full-Year Cost Guidance, Considers Acquisitions up to $20 Billion in Next Few Years

JPMorgan Chase & Co. CEO Jamie Dimon said on Wednesday at the Bernstein Strategic Decisions Conference that the company's full-year costs may be closer to $106 billion this year, rather than the $105 billion guidance reiterated by management in the April financial reports.

Dimon stated that this approximately $1 billion increase mainly comes from better-than-expected business performance, particularly fee income and trading revenue higher than previously judged. He referred to this additional cost as the "good extra $1 billion."

JPMorgan traders have just experienced a record-breaking quarter, and Dimon said that for the three months ending on June 30th, market business revenue may have increased by 11% year-over-year, or even more; if this performance materializes, the business will welcome the second-best quarter in the company's history.

Investment banking is also improving. Dimon expects a 10% increase in investment banking fee income, and said that if the remaining time of this quarter performs better, the increase "could be slightly higher."

Dimon also discussed potential mergers and acquisitions at the same conference. He said that over the next few years, JPMorgan Chase may have the opportunity to invest between $10 billion and $20 billion to acquire some assets, and the company is "looking for" opportunities.