By David Henry and Matt Scuffham
NEW YORK (Reuters) – Growth in consumer loans could take six to nine months to return to normal, JPMorgan Chase & Co chief executive Jamie Dimon 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.
“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 U.S. bank by assets, will release its quarterly results on Friday, along with Citigroup Inc and Wells Fargo & Co.
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 consumer banking has made international expansion possible where in the past the bank has excluded businesses as they would have required the opening of 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.
(Reporting by David Henry and Matt Scuffham in New York, and Louise Heavens)
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