JPMorgan CEO Jamie Dimon to go to Africa in development push By Reuters

By David Lewis, Nupur Anand, Duncan Miriri

NAIROBI/NEW YORK (Reuters) -JPMorgan Chase CEO Jamie Dimon plans to journey to Africa in mid-October in a push by the largest U.S. lender to broaden on the continent, 4 sources aware of the matter advised Reuters, his first journey there in seven years.    

Dimon is predicted to go to Kenya, Nigeria, South Africa and Ivory Coast through the journey subsequent month, two of the sources mentioned. JPMorgan already has workplaces in South Africa and Nigeria the place it gives asset and wealth administration and effectively as business and funding banking providers.

Abroad markets have been a key focus space to generate development for JPMorgan — which has belongings of over $4.1 trillion and operations in additional than 100 international locations. 

In 2018, Dimon mentioned the lender would have a look at getting into Ghana and Kenya. Native regulators in these two international locations had blocked JPMorgan’s development plans, in accordance with media stories.

Kenyan President William Ruto mentioned in February 2023 after a gathering with a senior JPMorgan government that the financial institution had dedicated to opening a brand new workplace in Nairobi.

It was not instantly clear how shut JPMorgan is to opening in these international locations. 

Main world banks are looking for to achieve an even bigger share of sovereign debt and company transactions in Africa, analysts mentioned, whereas additionally aiming to serve extra worldwide firms which have operations on the continent, mentioned Eric Musau, head of analysis at Nairobi-based Customary Funding Financial institution. 

Worldwide lenders are looking for to develop their revenues by providing wealth administration providers that present entry to investments like offshore fairness, debt and mutual funds, Musau added.

Banking giants are additionally providing personal banking providers, looking for to distinguish themselves from native and regional lenders which can be prevalent in retail markets.

Whereas most customers on the continent have entry to monetary providers by means of native and regional business banks, personal banking “is where the next evolution will be,” mentioned Francis Mwangi, CEO of Kestrel Capital, a Nairobi brokerage. 

JPMorgan is among the many prime 5 worldwide personal banks by belongings below supervision and development in abroad markets is a key precedence, it mentioned in Could.

Within the final 5 years, about 700 bankers have been concerned in increasing into 27 new places worldwide, producing $2 billion in income for its business and funding financial institution, JPMorgan’s President Daniel Pinto advised buyers in Could.

JPMorgan has an advisory board of worldwide executives and former coverage makers which have hyperlinks to Africa, together with Nigerian billionaire Aliko Dangote and former British Prime Minister Tony Blair who based the Africa Governance Initiative.      Main world lenders have adopted differing methods for particular person sub-Saharan markets, focusing on the fastest-growing areas whereas looking for to differentiate themselves from native and regional opponents.      Customary Chartered has centered on markets like Kenya. Property below administration within the East African nation grew by 1 / 4 final yr to 185.5 billion Kenyan shillings ($1.4 billion), it mentioned.

The lender offered its subsidiaries in Angola, Cameroon, Gambia and Sierra Leone final yr.

($1 = 128.5000 Kenyan shillings)