JPMorgan’s Dimon says consumer loan growth could take 6-9 months to return to normal

Jamie Dimon, CEO of JPMorgan Chase, participates in a roundtable discussion on investing in Detroit during a panel discussion at Harvard University’s Kennedy School of Government in Cambridge, Massachusetts, U.S., April 11, 2018. REUTERS/Brian Snyder

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NEW YORK, Jan 11 (Reuters) – Growth in consumer loans could take six to nine months to return to normal, Jamie Dimon, chief executive of JPMorgan Chase & Co, said in a television interview on Tuesday.

Consumer lending, especially on credit cards, fell sharply when the pandemic began as individuals stayed home and used stimulus money to pay off debt.

However, Dimon, speaking in a pre-recorded interview with Fox Business, said the economy is strong and can handle a 1% interest rate hike in the coming year.

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“Loan growth on the corporate side will likely return to normal,” Dimon said. “On the consumer side, it will go back to normal, it could take another six to nine months.”

JPMorgan, the largest US bank by assets, will release its quarterly results on Friday, along with Citigroup Inc (CN) and Wells Fargo & Co. L1N2TL1QE

The bank could expand its new consumer digital banking business in the UK to similar businesses in European countries, Dimon said. Deposits in those countries would be used as permitted by local laws, possibly for local consumer lending, he added.

Digital technology for retail banking has made international expansion possible where in the past the bank excluded businesses as they would have required opening branches.

JPMorgan continues to research technologies to acquire, Dimon said.

“Our team is constantly looking to improve our services through acquisitions, partnerships, sales and partial ownership,” he said.

After missing some opportunities in the past, Dimon said the bank already has stakes in more than 100 fintech companies.

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Reporting by David Henry and Matt Scuffham in New York, and Louise Heavens

Our standards: The Thomson Reuters Trust Principles.

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