By Lananh Nguyen and Manya Saini
NEW YORK, Feb 23 (Reuters) - JPMorgan Chase kept its forecast for annual adjusted expenses unchanged at $105 billion, as it pushes ahead with plans to modernize branches and invest in AI technology, and said U.S. consumers remain resilient.
U.S. banks have said that consumers are holding up well despite elevated interest rates and economic uncertainty, supporting card spending and keeping credit quality stable.
"We remain confident in achieving our longer-term ambitions,"
the largest U.S. bank said on Monday in a presentation to investors.
Large banks such as JPMorgan are seen as bellwethers for the U.S. economy, and closely watched as they offer insights into the health of consumer spending, borrowing trends and business activity.
JPMorgan is targeting return on tangible common equity of 17%. ROTCE is a key profitability metric that measures how efficiently a company uses its tangible equity to generate profits.
SPOTLIGHT ON EXPENSES AND AI INVESTMENT
The bank expects to spend $19.8 billion on technology in 2026, up 10% from a year earlier.
"We continue to invest in AI and we're seeing tangible benefits in multiple areas. Machine learning and analytical AI have been driving improvements in revenue," Chief Financial Officer Jeremy Barnum said at the bank's investor day event in New York.
UBS analyst Erika Najarian in a note wrote that the market views banks – particularly money-center lenders – as relative winners within financials from AI disruption.
The brokerage added that JPMorgan has consistently embraced technological shifts and that investors are "very keen" to hear its view not only on productivity gains from AI but also on its potential to drive revenue growth.
In January, JPMorgan reported a fourth-quarter profit that exceeded analysts' estimates as its trading desk benefited from volatile markets. The bank beat Wall Street profit estimates in all four quarters of last year, according to LSEG data.
The bank's shares rose 34.4% in 2025, outperforming both an index tracking large-cap U.S. lenders and the broader equities benchmark.
The stock was up marginally in post-market trading.
(Reporting by Lananh Nguyen in New York and Manya Saini in Bengaluru; Editing by Shinjini Ganguli)
