JPMorgan Chase & Co's commercial bank is set to expand into Singapore and Israel this year, marking a global expansion for its unit catering to midsize and small companies, the bank announced.
With these moves, the commercial bank will establish a presence in 28 countries by the end of the year. JPMorgan's international operations serve American companies operating abroad, as well as foreign companies operating in the United States.
The largest U.S. lender has been strengthening its global footprint with the aim of quadrupling its number of commercial clients while entering new markets. Currently, the bank serves over 650 clients and has 2,500 prospects across 26 countries, according to Andrew Kresse, head of corporate client banking for international at JPMorgan.
Kresse stated, "Companies can't outgrow us. That's one of the reasons we're so excited about continuing to build out our innovation economy business in markets like Paris, London, Tel Aviv, and Sydney—because we can be part of the journey with them from pre-revenue to IPO."
JPMorgan's commercial bank initiated its expansion beyond the U.S. and Canada in 2019 by establishing operations in Europe and Asia. Since then, the bank has hired 175 bankers and anticipates increasing their numbers to over 200 by the end of the year.
This expansion aligns with the growth in global trade volumes, which reached $25.3 trillion by the end of 2022, a 12% increase from the previous year, as reported by the World Trade Organization.
Furthermore, JPMorgan is expanding its focus on early-stage companies, hiring over a hundred bankers this year to cater to firms in sectors related to the innovation economy, such as technology, e-commerce, and life sciences.
JPMorgan's broader commercial bank serves nearly 25,000 clients, including mid-sized businesses, corporations, government entities, non-profits, and over 33,000 real estate investors or owners.
"We are working towards our $1 billion revenue target, and this too is well within reach," stated Doug Petno, JPMorgan's CEO of commercial banking, during an investor briefing last month.
The revenue for the bank's international commercial business amounted to $847 million at the end of 2022, reflecting a 17% annual growth.
Morgan McGrath, head of international banking in the commercial unit, commented, "We are striving to bring a simpler way of doing business to these mid-sized companies and replicate in other regions what we've successfully built in the U.S. We aspire to become the primary global banking partner for clients headquartered outside of the U.S."
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