JPMorgan Chase expects to spend $95 billion in 2025 on modernization and business growth, up 4.4% from $91 billion in 2024.

The increase in planned 2025 spending follows a record $58.5 billion in 2024 net income, up 15.2% from the bank’s previous record $49.6 billion in 2023 net income, JPMorgan reported today in its fourth-quarter 2024 earnings presentation.

Projected 2025 expenses include:

• $41 billion toward JP Morgan’s Consumer and Community banking segment;
• $38 billion toward its Corporate and Investment banking segment; and
• $15 billion toward its Asset and Wealth Management segment.

Technology spend in 2025 will total approximately $1.5 billion, with cybersecurity, business growth investment and public cloud and data center investments mentioned as key areas of focus in today’s Q4 earnings presentation.

JPMorgan is also focused on product development and adding features to existing services, Chief Financial Officer Jeremy Barnum said today during the bank’s earnings call.

“We’re going to be constantly modernizing,” Barnum said.

For example, JPMorgan Payments is launching a payment tablet and payment pin pad in the second half of 2025 with integrated biometric authentication, JPMorgan announced on Jan. 13. The technologies are expected to enhance payment security for merchants, according to the bank.

BIGGER PICTURE: In addition to technology spend, JPMorgan plans to increase its spending on business growth and marketing, Barnum said on the call.

JPMorgan expects to spend:

• $2 billion to $2.5 billion on volume and revenue-related expenses;
• $1.5 billion to $2 billion on bankers, advisers and branches; and
• Approximately $0.75 billion on marketing.

BY THE NUMBERS: JPMorgan reported in Q4:

• Total net revenue increased 11% year over year to $42.8 billion;
• Headcount ticked up 2% YoY to 318,233, but remained relatively flat sequentially;
• Active mobile customers increased 7% YoY to 57.8 million; and
• Active digital customers increased 6% YoY to 70.8 million.

NOTEWORTHY: JPMorgan’s Payments division reported a record $18.1 billion in 2024 revenues, with Q4 payment revenues up 6% YoY to $4.7 billion.

Several key business drivers contributed to the surge in annual payments revenue in 2024, a JPMorgan spokesperson told Bank Automation News:

• Record fee revenue of $1.9 billion, up 13% YoY;
• Deposit balances exceeding $800 billion, up 10% YoY; and
• Daily average payments processing volumes of $10 trillion, up 12% YoY.

MARKET REACTION: Shares of JPMorgan Chase (NYSE: JPM) were up 2% from market open to $252.38 as of 2 p.m. ET today. JPMorgan has a market capitalization of $710.16 billion.

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