Jamie Dimon Says JPMorgan Is Hunting For Its Next Big Deal — And It Could Spend Up To $20B

• Dimon said that any acquisition being considered by JPMorgan would have to integrate cleanly into its operations and core business, rather than sit as a standalone unit.
• He also requires these potential acquisition targets to fit the bank’s culture.
• Dimon said acquisitions should be viewed as a tool of last resort, arguing that excessive reliance on dealmaking can signal weak organic growth.

JPMorgan Chase & Co. (JPM) CEO Jamie Dimon said on Wednesday that the investment bank is looking for its next big deal over the course of the coming two years.

According to a CNBC report, Dimon revealed during a fireside chat at the Bernstein Strategic Decisions Conference that JPMorgan could spring up to $20 billion toward an acquisition.

“I do think there might be, in the next couple of years, a chance to put $10 [billion] to $20 billion to work buying something,” Dimon said.

JPMorgan’s shares were down more than 3% in Wednesday morning’s trade.

Any Potential Acquisition Should Integrate Into Operations

Dimon laid down the conditions that would have to be satisfied for JPMorgan to make an acquisition.

According to the report, he said that any acquisition being considered by JPMorgan would have to integrate cleanly into its operationsrather than sitstead of sitting out as a standalone unit. He also requires these potential acquisition targets to fit the bank’s culture.

Dimon also called acquisitions a tool of last resort, not an organic growth strategy. He cautioned that those who rely too much on dealmaking often do so to compensate for poor organic growth.

“I don’t want to hear about M&A ... What are you doing to grow your business — sales, branches, tech, profits, products, services? It can’t be just a pie-in-the-sky type of thing,” he said.

JPM's Biggest Acquisitions Under Dimon's Leadership

Since becoming CEO in 2006, Dimon has overseen several major acquisitions, including JPMorgan's $10.6 billion acquisition of a substantial majority of First Republic Bank’s assets in 2023.

During the 2008 financial crisis, JPMorgan acquired Washington Mutual's banking operations for $1.9 billion and Bear Stearns for roughly $1.4 billion, significantly expanding its consumer and investment banking franchises.

Other notable acquisitions include the purchase of the remaining stake in the U.K.-based Cazenove for about $1.7 billion in 2009, healthcare payments company InstaMed for more than $500 million in 2019, and fintech firm WePay for approximately $220 million in 2017.

A $20 billion deal would surpass any acquisition completed by JPMorgan during Dimon's tenure.

How Did Retail Investors React To JPM Stock?

Retail sentiment on Stocktwits around JPMorgan trended in the ‘neutral’ territory at the time of writing.

JPM stock is down 6% year-to-date, but up 14% over the past 12 months. The S&P 500 ETF (SPY) and the Vanguard Total Stock Market Index Fund ETF (VTI) are up 27% over the past 12 months.

The Vanguard S&P 500 ETF (VOO) and iShares Core S&P 500 ETF (IVV) are up 27% during this period.

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