JPMorgan Chase said on Tuesday it is aiming to save about $1.4 billion in annual expenses by cutting costs and simplifying businesses mainly in its consumer- and investment-banking units.
The largest U.S. bank as measured by assets expects annual expenses in 2015 to fall to roughly $57 billion from $58.4 billion in 2014, according to presentations at its annual investor day.
JPMorgan is looking to lower expenses by $2.8 billion in its investment bank, excluding legal costs, and by about $2 billion in its consumer bank. Some of the savings will be offset by investments elsewhere in the company.
In a presentation, finance chief Marianne Lake cited about $3 billion in cost efficiencies as one reason why JPMorgan disagreed with analysts and investors who said it would be better for shareholders if the bank were to break itself up. If JPMorgan were to split in two, Lake said, it would be required to duplicate its finance, risk and audit divisions, among others, at great expense.
"These are not trivial things," Lake said. "Scale has always defined the winner in banking."