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New Delhi: As the earnings season for the second quarter of FY25 unfolds, <keyword id="19959986" type="General" weightage="20" keywordseo="public-sector-banks" source="keywords">public sector banks</keyword> (PSBs) are expected to see a slight dip in profits compared to the previous quarter, according to a report by <keyword id="19896146" type="General" weightage="100" keywordseo="Motilal-Oswal" source="keywords" meta.keywordsubtype="org" meta.entityname="Motilal Oswal" meta.hostid="153" meta.entityid="Motilal Oswal">Motilal Oswal</keyword>. The report estimates that PSBs' Profit After Tax (PAT) will decline by 0.6 per cent quarter-on-quarter (QoQ), while showing a stronger year-on-year (YoY) growth of 17.2 per cent. "We estimate PSBs to report moderate <keyword id="19899597" type="General" weightage="20" keywordseo="earnings-growth" source="keywords">earnings growth</keyword> of 17.2 pc YoY/ a decline of 0.6 pc QoQ in 2QFY25," the report stated. The slower pace of growth can be attributed to flat net interest margins (NIMs) and a slight increase in loan loss provisions (LLP). The <keyword id="20171160" type="General" weightage="20" keywordseo="Net-Interest-Income" source="keywords">Net Interest Income</keyword> (NII) for PSBs is expected to grow by around 6 per cent YoY, although interest margins are likely to remain under pressure. Despite these near-term challenges, the report suggests that public sector banks are on track to post a compound annual growth rate (CAGR) of 15 per cent between FY24 and FY26, pointing to sustained long-term growth. In the private sector banking space, the report forecasts mixed results for the same quarter. For private banks under the coverage, Pre-Provision Operating Profit (PPoP) is expected to grow by 12 per cent YoY and 1 per cent QoQ. However, PAT growth is predicted to be more modest, increasing by 5 per cent YoY and 0.6 per cent QoQ. "For our private bank coverage universe, we estimate a PPoP growth of 12 pc YoY/1 pc QoQ and a PAT growth of 5 pc YoY/0.6 pc QoQ in 2QFY25," the report added. Looking ahead, private sector banks are expected to experience steady profitability growth, with earnings projected to grow at a CAGR of 12.4 per cent over FY24-FY26. Overall, while both public and private sector banks may face moderate growth in the second quarter due to margin pressures and higher provisions, their long-term earnings prospects remain positive. (ANI)

Profit of public sector banks expected to decline by 0.6 percent QoQ : Motilala Oswal

<ul class="summary-list"><li>Russia will resume public sector layoffs, affecting up to at least 40,000 workers, per Kommersant.</li><li>Layoffs were paused due to COVID-19 and Russia's invasion of Ukraine.</li></ul>Russia is expected to lay off at least 40,000 government officials next year, according to a report by the Russian <a target="_blank" class="" href="https://www.kommersant.ru/doc/7296193?tg">Kommersant</a> newspaper.Russian President Vladimir Putin last month<a target="_blank" class="" href="http://publication.pravo.gov.ru/document/0001202410290050?index=1"> ordered regional branches of federal government agencies to cut staff by 10%</a> by July, per the publication.The layoffs were believed to be planned for much earlier but were put on hold for several years due to Russia's invasion of Ukraine and the COVID-19 pandemic.According to Kommersant, the cuts are designed to make the civil service more efficient and raise the salaries of existing staff.Russia's official wage statistics, published in January, showed wages in the private sector rose by 8% to 20% last year.The cuts would also allow more people to enter Russia's labor market which is experiencing a widespread shortage of workers amid Russia's invasion of Ukraine.According to an estimate from the Russian Academy of Science's Institute of Economics, Russia was short a record 5 million workers at the end of 2023.Workers have been <a target="_blank" href="https://www.businessinsider.com/russia-raises-mobilization-age-some-reservists-can-be-called-70-2023-7">pulled into the </a>Ukraine war or <a target="_blank" href="https://www.businessinsider.com/number-of-russians-fleeing-draft-bigger-1st-invasion-force-uk-2022-9">forced to flee</a> after Putin enacted a major mobilization to increase wartime recruitment.Russia has turned to <a target="_blank" href="https://www.businessinsider.com/russia-making-labor-crisis-worse-sending-workers-to-war-ukraine-2023-11">migrant</a> and <a target="_blank" href="https://www.businessinsider.com/russian-economy-worker-shortage-prison-labor-ukraine-war-putin-kremlin-2023-10">prison labor</a> to supplement its workforce, but those aren't sustainable solutions to its population problem, according to a <a target="_blank" href="https://www.businessinsider.com/russia-economy-population-decline-worker-shortage-growth-outlook-ukraine-war-2024-8">report</a> by Harley Balzer, a professor emeritus at Georgetown University.Last year, Russian Central Bank Governor Elvira Nabiullina warned that continued <a target="_blank" href="https://www.reuters.com/markets/europe/russias-depleted-workforce-threatening-economic-growth-says-central-bank-2023-11-09/">workforce depletion</a> would threaten Russian economic growth.However, so far, Russia's economy has <a target="_blank" href="https://www.businessinsider.com/russia-economy-outlook-defense-budget-spending-ukraine-war-putin-sanctions-2024-10">held up</a><a target="_blank" href="https://www.businessinsider.com/russia-economy-ukraine-war-moscow-military-spending-inflation-worker-shortage-2024-2"> partly because of its war spending</a>, which has boosted growth despite soaring <a target="_blank" href="https://www.businessinsider.com/russia-economy-outlook-stagflation-recession-inflation-gdp-growth-ukraine-war-2024-9">inflation</a> and <a target="_blank" href="https://www.businessinsider.com/russian-central-bank-raises-key-interest-rate-to-21-2024-10">high interest rates</a>.Inflation<a target="_blank" href="https://www.cbr.ru/eng/press/keypr/"> hit 9.8%</a> in September, and potatoes, which are a staple of Russian diets, saw a<a target="_blank" href="https://rosstat.gov.ru/storage/mediabank/172_08-11-2024.html"> 64% increase in price</a> this year.Russia is expected to spend <a target="_blank" href="https://www.businessinsider.com/russias-defense-sector-on-overdrive-but-firms-warn-of-collapse-2024-11">$140 billion on its defense industry in 2024</a> and up to $145 billion in 2025, or 6.3% of its GDP.

Under strain from war, Russia plans a massive layoff in its public sector: report

Amid questions on the depleting <keyword id="20776807" type="General" weightage="100" keywordseo="loan-to-deposit-ratio" source="keywords">loan-to-deposit ratio</keyword> in <keyword id="19895091" type="General" weightage="20" keywordseo="Indian-banks" source="keywords">Indian banks</keyword>, a recent report by <keyword id="19896146" type="General" weightage="20" keywordseo="Motilal-Oswal" source="keywords" meta.keywordsubtype="org" meta.entityname="Motilal Oswal" meta.hostid="269" meta.entityid="Motilal Oswal">Motilal Oswal</keyword> suggests that the loan-to-deposit (LD) ratio is likely to subside on its own in the coming months. The debate on loan-to-deposit ratio (LD), particularly concerning sluggish <keyword id="19998084" type="General" weightage="20" keywordseo="deposit-growth" source="keywords">deposit growth</keyword> and potential risks to <keyword id="20089808" type="General" weightage="20" keywordseo="financial-stability" source="keywords">financial stability</keyword> is raised by even the finance minister and the <keyword id="20151998" type="General" weightage="20" keywordseo="RBI-governor" source="keywords">RBI governor</keyword>. However, the report notes that on closer examination, the situation may not be as alarming as it seems. As of 9th August, 2024 the Indian <keyword id="19964544" type="General" weightage="20" keywordseo="banking-sector" source="keywords">banking sector</keyword>'s loan-to-deposit (LD) ratio stood at 77.2 %, which is slightly below its recent peak of 78.2 % on 22nd March 2024, and its all-time high of 78.8 % in September 2013. The report stated that typically a rising LD ratio is indicative of a tightness in the banking sector, potentially indicating overheating. A lower LD indicates that the bank is aggressive in its credit disbursement practises, which could be risky. It highlighted that an analysis of the sector's transactions with the Reserve Bank of India (RBI) through the liquidity adjustment facility (LAF), along with recent trends in the weighted average call rate (WACR), suggests that the current rise in the LD ratio does not indicate tightness, which is why there is no immediate cause of concern. In fact, the report added that the concern over weak deposit growth may be overstated. Historical data show that bank deposits grew at an average rate of 9.5 % during the pre-COVID period (January 2015 to February 2020) and 10.4 % in the post-COVID period (March 2020 to August 2024). Earlier, Finance Minister Nirmala Sitharaman also urged state-run banks to enhance deposit mobilization through attractive offers and focusing on Tier-2 and Tier-3 cities. Loan-to-deposit ratio pegs the total deposits received by the bank against the loans it has offered. It helps in understanding how liquid the bank is. The loan-to-deposit ratio (LDR) is a financial metric that compares a bank's total loans to its total deposits. It's used to assess a bank's liquidity and credit risk, and to inform lending and deposit-taking decisions The report said while the exact measures are unclear, the deposit growth could potentially be increased by making other asset classes less attractive through taxation or interest rates, or by boosting fiscal spending to increase net credit to the government. In its forecast, the report noted that private banks will witness a moderation in their <keyword id="19998083" type="General" weightage="20" keywordseo="credit-growth" source="keywords">credit growth</keyword>, while public sector banks will maintain a healthy credit growth rate. "Our analysis suggests that deposit growth could be raised by either making other asset classes unattractive (through taxation and/or interest rate) or increasing the growth in net credit to the government by pushing fiscal spending higher" the report added. Alternatively, policymakers might consider curtailing loan growth to lower the LD ratio. However, this could slow deposit growth, particularly if corporate credit growth remains weak. Encouraging savers to shift investments from other assets to bank deposits could also be an option, but this carries risks of overreach and potential damage to economic confidence. Das had also flagged the excessive growth, or froth developing in the personal loan space. Notably, while credit growth in unsecured personal loans like credit cards continues to decline, it remains elevated at 23.3% as of June 2024. However, this is a significant reduction from 34.2% witnessed in November 2023. As fiscal spending increases, bank credit to the government is likely to grow, which should elevate deposits and broad money supply. The report said "However, the extent of foreign capital inflows and the RBI's policy for managing these inflows remain uncertain". Last month, RBI governor Shaktikanta Das had also addressed this issue in the 50th meeting of MPC (Monetary Policy Committee). Per him, deposit mobilisation has been lagging credit growth for some time now. This may potentially expose the system to structural liquidity issues. "While there could be a debate regarding ‘deposits funding loans’ vis-à-vis ‘loans funding deposits’, the current regulatory concern stems from the fact that there could be structural changes happening which banks need to recognise and, accordingly, devise their strategies. Households and consumers who traditionally leaned on banks for parking or investing their savings are increasingly turning to capital markets and other financial intermediaries", Das said. Per him, while bank deposits continue to remain dominant as a percentage of financial assets owned by households, their share has been declining consistently, since households are now increasingly allocating their savings to mutual funds, insurance funds, pension funds and other avenues.

Loan-to-deposit ratio will subside on its own in coming months, notes Motilal Oswal report

<ul class="summary-list"><li>Russia almost tripled its defense spending to finance its invasion of Ukraine.</li><li>Defense firms are busy — but high inflation and interest rates past 20% have left them struggling.</li></ul>In Russia's defense sector, demand is surging — but its companies are struggling all the same.The Kremlin is seeking ever more weapons for its attack on Ukraine.But sky-high interest rates are leaving companies struggling to turn a profit, a prominent CEO recently said.Sergei Chemezov, CEO of the defense conglomerate Rostec, sounded the alarm in an address to Russian senators in late October.He <a target="_blank" class="" href="https://www.rbc.ru/economics/23/10/2024/6718c36a9a79476b774f1989">said</a> "record" interest rates were "eating up" the profit from its orders.<h2 id="f760578d-7185-4150-bf09-fde6f3d70c06">Debt trap</h2>He said clients tended to pay 30%-40% of an order's value in advance, leaving the firm to borrow the rest.That debt, he said, was so expensive that it canceled out any profit on the work."If we continue to work like this, then most of our enterprises will go bankrupt," he said.A few days after he spoke, Russia's central bank <a target="_blank" class="" href="https://www.businessinsider.com/russian-central-bank-raises-key-interest-rate-to-21-2024-10">hiked its main interest rate further still</a>, from 19% to 21%.Rostec is not alone in its predicament, economic analysts told Business Insider.Rising interest rates and export bans were eroding Russian defense companies' profits across the board, they said, making the Russian state the only guarantor of revenues.<h2 id="b9ad0c28-486e-4588-b4c2-4b027ca1e40d">Sustaining the war machine</h2>Since launching a full-scale invasion of Ukraine about two and a half years ago, the Kremlin has taken a slew of measures to keep its defense sector pumping out tanks, ammunition, drones, and missiles.It restructured its economy to prioritize the war, imposed export bans, tapped its national wealth fund, and strengthened trade with non-Western countries.Its defense budget soared, from $59 billion in 2022 to $109 billion in 2023.It's heading for an <a target="_blank" class="" href="https://www.sipri.org/media/newsletter/2023-december">estimated $140 billion</a> in 2024, with a draft budget forecasting $145 billion for 2025.That figure would represent 6.3% of Russian GDP, the highest share since Soviet times.That spending has consequences, said Roman Sheremeta, an associate professor of economics at the Weatherhead School of Management at Case Western Reserve University."The government pumped enormous sums of money to support the war efforts," he told Business Insider. "And the Russian reserves have been almost depleted."The liquid assets of Russia's national wealth fund dropped by almost half, from 8.9 trillion rubles (about $91 billion) before the war to 5 trillion rubles (about $51 billion) at the end of last year, Bloomberg <a target="_blank" class="" href="https://www.bloomberg.com/news/articles/2024-01-17/war-in-ukraine-drains-nearly-half-of-accessible-russian-reserves">reported</a> in January, citing Finance Ministry data."The Kremlin cannot afford defense companies to go bankrupt," Sheremeta said.<h2 id="86664911-b4d8-4aec-ad9a-8c27b113bb7b">A 'death spiral'</h2>While huge defense expenditures have contributed to economic growth in Russia and <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-ukraine-war-moscow-military-spending-currency-inflation-budget-2024-9">averted a recession</a>, they also fueled inflation.When it hiked the key interest rate to 21%, Russia's central bank said its mission was to tame inflation.In September, Russia's annual inflation rate rose to 8.6%, far above its 4% target.Sheremeta described the situation as a "death spiral," where war spending begets more inflation, which requires more war spending."What is even worse for those companies," he said of the defense firms, "is that they cannot export due to sanctions and sell their weapons for US dollars or Euros."Daniel Treisman, a professor of political science at the University of California, Los Angeles, and a research associate of the National Bureau of Economic Research, said Russia could end up with hyperinflation."As the budget deficit rises in the face of military costs, the need to cover part of it by printing money will drive prices ever higher, and the Central Bank will have to hike interest rates further to slow them," he said.<h2 id="2a236608-2617-4e7e-8687-d480f19dea32">A crisis point — but not yet</h2>The experts BI spoke to both said Russia could sustain its spending for a year or more before a crisis point.Some see even more runway.Iikka Korhonen, the head of research at the Bank of Finland Institute for Emerging Economies, said defense companies won't be allowed to go bankrupt, and would instead be restructured or bailed out.Russia has done that before, saving indebted defense firms in 2016 during an earlier financial crisis.If that doesn't fix the problem, "other sectors will be cut" to keep defense firms going, Korhonen said.Julian Cooper, Professor Emeritus at the Centre for Russian and East European Studies of the University of Birmingham, made similar remarks."If some defense companies cannot fulfill their obligations, the Kremlin can simply nationalize them," Sheremeta said.Konstantin Sonin, a professor at the University of Chicago Harris School of Public Policy, forecast a dark economic future ahead for Russia due in part to "borrowing" funds from the future.In an <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-ukraine-war-outlook-moscow-sanctions-west-firms-uchicago-2024-10">op-ed</a> for Project Syndicate earlier this month, Sonin wrote that massive investment in military production at the expense of key public spending programs may strengthen Putin's hand in the short term."But it sets a time bomb under longer-term economic development," he wrote."Whenever the Ukraine war ends and Russia returns to international trade (beyond raw materials), all the nationalizations of recent years will come back to haunt it," he wrote.

Russia's defense sector is running on overdrive — but firms are warning of bankruptcy

<ul class="summary-list"><li><keyword id="20214240" type="General" weightage="20" keywordseo="Jamie-Dimon" source="keywords">Jamie Dimon</keyword> has been the CEO of JPMorgan since 2006.</li><li>Under his leadership, the company's stock value has tripled.</li></ul><a target="_blank" href="https://www.businessinsider.com/jamie-dimon-commerical-real-esate-crisis-soft-landing-economy-jpmorgan-2024-2">Jamie Dimon</a>, the billionaire CEO of <keyword id="19947945" type="General" weightage="20" keywordseo="JPMorgan-Chase" source="keywords" meta.keywordsubtype="org" meta.entityname="JPMorgan Chase" meta.hostid="261" meta.entityid="JPMorgan Chase">JPMorgan Chase</keyword>, has led the massive finance company for the better part of the last two decades, driving its assets and stock value to new heights."In the midst of the most serious and far-reaching <keyword id="20154576" type="General" weightage="20" keywordseo="financial-crisis" source="keywords">financial crisis</keyword> since the 1930s — much of it caused by plain old avarice and bad judgment — Dimon and <a target="_blank" href="https://www.businessinsider.com/jpmorgan-chase-employees-describe-fear-mass-workplace-data-surveillance-wadu-2022-5">JPMorgan Chase</a> stood apart," Duff McDonald, an author and journalist, wrote of Dimon in his 2009 book "Last Man Standing: The Ascent of Jamie Dimon and JPMorgan Chase," referring to the 2008 financial crisis."Much of the melodramatic coverage of Wall Street postcrisis has focused on its flaws — the hubris and the greed," McDonald wrote. "Jamie Dimon's story contains the opposites — the values of clarity, consistency, integrity, and courage. By sticking to them, Dimon has unquestionably become the <a target="_blank" href="https://www.businessinsider.com/recession-outlook-jamie-dimon-jpmorgan-us-economy-interest-rates-cut-2024-3">dominant banking executive</a> of his era."Here's a look at Dimon's career, from his stint as a management consultant to becoming the <a target="_blank" href="https://www.businessinsider.com/jamie-dimon-awesome-life-2009-12">billionaire financier</a> propelling JPMorgan Chase's rise.Representatives for Dimon declined to comment for this story when contacted by Business Insider.<h2 id="f4994361-5956-4282-bd92-21827256b076">Born into the world of finance</h2>Dimon was born in New York City on March 13, 1956, one of three sons to Theodore and Themis (née Kalos) Dimon. His father was a stockbroker at Shearson who would eventually become an executive vice president at <a target="_blank" href="https://www.businessinsider.com/personal-finance/best-american-express-business-card">American Express</a>.After her sons went to college, Themis Dimon pursued a master's degree in psychology at Columbia University's Teachers College and volunteered at a preschool program.The couple, who were married for 65 years, died within 22 hours of each other, according to their 2016 <a target="_blank" href="https://www.legacy.com/us/obituaries/nytimes/name/themis-dimon-obituary?id=17681343">obituaries</a>.Dimon graduated from Tufts University, where he majored in psychology and economics. After a stint as a management consultant at Boston Consulting Group, Dimon earned his MBA from Harvard in 1982.<h2 id="b690fc5e-dbb3-442f-986c-afd30cbfa440">A banking whiz kid from the start</h2>Dimon's finance skills were clear from early on. At the behest of his mentor, the <a target="_blank" href="https://www.businessinsider.com/sandy-weills-greatest-hitsand-shocking-turnaround-2012-7">financier Sandy Weill</a>, he turned down offers from <keyword id="19906485" type="General" weightage="20" keywordseo="Goldman-Sachs" source="keywords" meta.keywordsubtype="org" meta.entityname="Goldman Sachs" meta.hostid="261" meta.entityid="Goldman Sachs">Goldman Sachs</keyword> and Morgan Stanley to accept a job at American Express after graduating from Harvard.When Weill left American Express in 1985, <a target="_blank" href="https://www.euromoney.com/article/b1fq6yftgm9nrv/the-bankers-that-define-the-decades-jamie-dimon-jpmorgan-chase">Dimon followed</a>. The pair ran Commercial Credit, a company they would build into the <a target="_blank" href="https://markets.businessinsider.com/news/stocks/assessing-citigroup-insights-from-13-financial-analysts-1033212613">financial-services conglomerate Citigroup</a>.<div type="image" title="Jamie Dimon poses in front of a picture window in his office," height="1813" width="1800" msid="109087605" hostid="261"></div><h2 id="9d3cbea2-9339-4750-95be-77b6758fbb28">An unexpected ouster led to a key pivot</h2>Weill asked Dimon to resign in 1998 after 15 years of working together. Weill would later tell <a target="_blank" href="https://www.nytimes.com/2010/01/03/business/economy/03weill.html">The New York Times</a> it was because Dimon wanted to take over as CEO but he wasn't ready to retire. Weill told the Times he regretted that the conflict led to Dimon's ouster.On an episode of the "<a target="_blank" href="https://anchor.fm/blamo-media/episodes/Jamie-Dimon---Chairman-and-CEO-of-JPMorgan-Chase-egn5as">Coffee with The Greats</a>" podcast, Dimon said he was "<a target="_blank" href="https://www.cnbc.com/2020/07/21/jpmorgan-ceo-jamie-dimon-on-being-fired.html">totally surprised</a>" by his firing from Citigroup. He considered jobs at Amazon and Home Depot but ultimately became CEO of Bank One in 2000, which at the time was the nation's fifth-largest bank. Eventually, it would merge with JPMorgan.<h2 id="20532da9-ccdf-4c5f-89f6-ecfdc5cca44f">JPMorgan's <keyword id="20035800" type="General" weightage="20" keywordseo="merger" source="keywords">merger</keyword> with Bank One saw Dimon's power surge</h2>When JPMorgan merged with Bank One in 2004, Dimon became the new banking giant's president and chief operating officer. He would later become the bank's CEO in 2006.Dimon quickly slashed expenses across the board, McDonald wrote in his biography. He ended the practice of the bank's corporate wing paying for clients to attend the US Open tennis tournament, canceled a $5 billion contract with <a target="_blank" href="https://www.businessinsider.com/how-to-get-job-without-college-degree-amazon-intel-ibm-2024-3">IBM</a> for computer-management services, and cut regional managers' compensation by as much as 50% over the next two years."He's going down like cod liver oil," <a target="_blank" href="https://www.bloomberg.com/news/articles/2005-03-27/dimons-grand-design">Bloomberg</a> reported one banker said of Dimon's approach. McDonald wrote in his biography of Dimon that another unnamed banker said, "The news that Jamie is flying in is similar to being told that Ivan the Terrible is coming for tea."<div type="image" title="Jamie Dimon gestures with his right hand as he speaks into a microphone." height="1826" width="2500" msid="109087606" hostid="261"></div><h2 id="afbd7198-8c13-4af3-bd54-533fe30dba48">His demanding leadership has proven valuable over the years</h2>In 2008, Dimon played a key role in rescuing major banks from collapse amid the <a target="_blank" href="https://markets.businessinsider.com/news/currencies/jamie-dimon-jpmorgan-bitcoin-crypto-recession-inflation-fed-rate-cuts-2024-1">financial crisis</a>. JPMorgan purchased Bear Stearns for $10 a share and also acquired Washington Mutual, which at the time was the largest US savings and loan institution, <a target="_blank" href="https://www.nytimes.com/2023/03/30/business/jamie-dimon-silicon-valley-bank-collapse.html">The New York Times</a> reported."<a target="_blank" href="https://www.businessinsider.com/quit-dream-job-jpmorgan-banking-not-for-me-singapore-2023-11">Jamie was demanding</a>. He was relentless," Theresa Sweeney, his assistant from 1993 to 2000, is quoted as saying in McDonald's biography. "And he always wanted the one thing I hadn't done. I'd walk in there with my pad of paper and he'd give me 10 things to do. I'd go back to my desk. An hour later, he'd call me and I'd have already done nine of them. And he'd ask for the tenth. And he pounded and pounded and pounded until you got it done. By the third time he asked for something, you better have been at a funeral, because that was the only acceptable excuse for not having it finished."Under his leadership, and due largely to its strategic partnerships and acquisitions, <a target="_blank" href="https://markets.businessinsider.com/stocks/jpm-stock">JPMorgan's value</a> has skyrocketed, becoming the leading American bank in terms of domestic assets, market capitalization, and stock value.<h2 id="edc949a9-1236-41d4-9447-8f5209c21a61">College sweethearts became parents to 3 girls</h2>Dimon married his college sweetheart, Judith Kent, after meeting at Harvard. They have three daughters together: Julia, Laura, and Kara Leigh.Kent went to Tulane University for her undergraduate degree before receiving a master's in organization psychology from the Catholic University of America and an MBA from Harvard. She worked alongside Dimon at American Express as a management trainee shortly before they married, a 1983 wedding announcement published in <a target="_blank" href="https://www.nytimes.com/1983/01/16/style/judith-e-kent-to-be-wed-to-james-dimon-in-spring.html">The New York Times</a> said.Dimon has had a few health scares over the years, including a battle with throat cancer in 2014 and emergency heart surgery in 2020 after he was diagnosed with an <a target="_blank" href="https://www.businessinsider.com/inside-jpmorgan-after-jamie-dimons-emergency-heart-surgery-2020-3">aortic tear</a>, <a target="_blank" href="https://www.wsj.com/articles/jpmorgans-jamie-dimon-and-his-brush-with-death-you-dont-have-time-for-an-ambulance-11608821876">The Wall Street Journal</a> reported.<div type="image" title="Jamie Dimon and his wife, Judith, walk across the White House's marble floor, dressed in black tie event attire." height="2200" width="3300" msid="109087608" hostid="261"></div><h2 id="2fb97667-4026-4040-b032-ea9682504d34">A longtime political donor, Dimon has considered a run for office himself</h2>For many years, Dimon was a <a target="_blank" href="https://www.opensecrets.org/search?q=jamie+dimon&amp;type=news">prominent donor</a> to the Democratic Party. Though he labeled himself as "<a target="_blank" href="https://web.archive.org/web/20120615224516/http://www.politico.com/blogs/politico-live/2012/05/dimon-im-barely-a-democrat-123290.html">barely a Democrat</a>" in 2012, his political ties to the Obama administration led to speculation he would be named secretary of the Treasury. The position was ultimately given to Timothy Geithner.In 2016, he joined a business-advisory forum assembled by then-President Donald Trump, though it disbanded roughly a year later. Dimon supported several of Trump's jobs and tax policies but publicly disagreed with him on matters of immigration and international trade.He briefly considered running for president in 2018. Though he ultimately decided against it, <a target="_blank" href="https://www.marketwatch.com/story/this-is-the-most-prosperous-economy-the-world-has-ever-seen-says-jamie-dimon-and-its-going-to-continue-2019-11-10">MarketWatch</a> reported that he said, "I thought about thinking about it."The billionaire hedge-fund manager Bill Ackman encouraged Dimon to consider a presidential bid in 2023, <a target="_blank" href="https://www.forbes.com/sites/mollybohannon/2023/06/05/jpmorgan-ceo-jamie-dimon-wont-run-for-office-bank-says/?sh=7ee94ed0274a">Forbes reported</a>. The outlet also said Dimon expected to lead JPMorgan for at least 3 ½ more years.Though he hasn't made any moves toward a campaign for public office, Dimon told <a target="_blank" href="https://www.bloomberg.com/news/articles/2023-05-31/jpmorgan-s-jamie-dimon-says-maybe-one-day-i-ll-serve-my-country?srnd=premium">Bloomberg</a> last spring, "I love my country, and maybe one day I'll serve my country in one capacity or another."<h2 id="80294a82-a09c-4abc-b90b-470ddbf8c20a">Dimon's continued bank-saving has led to record JPMorgan profits</h2>Dimon reprised his role as bank-saver in 2023, The New York Times reported, working as a partner with Treasury Secretary Janet Yellen and the Fed chair Jerome Powell to convince leaders of 11 major banks to pitch in $30 billion to prevent First Republic Bank from collapsing in the wake of <a target="_blank" href="https://www.businessinsider.com/us-government-bails-out-silicon-valley-bank-depositors-fdic-2023-3">Silicon Valley Bank</a> and <a target="_blank" href="https://www.businessinsider.com/signature-bank-shut-down-by-regulators-depositors-bailed-out-2023-3">Signature Bank</a> failing in rapid succession.In doing so, Dimon was "acting as a senior statesperson who is helping to shore up the <a target="_blank" href="https://www.businessinsider.com/san-francisco-far-worse-shape-new-york-jpmorgan-jamie-dimon-2024-1">financial industry in a time of crisis</a> of confidence," Mike Mayo, a longtime banking analyst, said to the Times. "With that comes potentially higher prestige but also potential backlash."But so far, the backlash hasn't come.Per <a target="_blank" rel="noopener noreferrer" class="c-link c-link--focus-visible" href="https://fortune.com/2023/10/27/jamie-dimon-jpmorgan-ceo-first-stock-sale/">Fortune</a>, JPMorgan's stock value has tripled since Dimon became CEO, and <a target="_blank" rel="noopener noreferrer" class="c-link c-link--focus-visible" href="https://www.bloomberg.com/news/articles/2024-01-12/jpmorgan-just-made-more-annual-profit-than-any-us-bank-ever">Bloomberg</a> reported that in 2023, the bank recorded the largest-ever annual profit among US banks, pulling in nearly $50 billion.<h2 id="c60edf85-9274-4e6e-843d-a5f1bc65d20d">Dimon may be retiring sooner than expected</h2>During a Q&amp;A with investors on Monday, <a target="_blank" href="https://www.businessinsider.com/jpmorgan-ceo-jamie-dimon-hints-retirement-2024-5">Dimon suggested his retirement</a> may be on the horizon.While in the past Dimon joked he would retire in five years, when asked about his succession plan this time the 68-year-old said the timeline was "not five years anymore."The longest-running CEO on Wall Street also said the plan to identify his replacement was "well on its way," and that he could potentially stay on as chair.Note: This story was originally published April 2024 and has since been updated.Correction: April 9, 2024 — An earlier version of this story misstated the name of the bank JPMorgan merged with in 2004. It's Bank One, not One Bank.

Jamie Dimon, CEO of JPMorgan Chase, just hinted at retirement. Here's how he became an iconic billionaire banker.

<ul class="summary-list"><li>JPMorgan and Wells Fargo kick off bank earnings on Friday.</li><li>Expect lots of questions about how lower rates will impact business going forward.</li></ul>When Wall Street's biggest banks report earnings this week, led by JPMorgan Chase, investors will be listening closely for clues about how a changing interest-rate environment could impact business in 2025.The Federal Reserve in September cut the so-called federal funds rate by 50 basis points — <a target="_blank" href="https://markets.businessinsider.com/news/stocks/fed-interest-rate-cut-ai-stocks-nvidia-broadcom-asml-tech-2024-9?_gl=1*1ax8rwf*_ga*MzQwMzI0MDQ1LjE3MjEzMDM4ODI.*_ga_E21CV80ZCZ*MTcyODQ5MTE5OC4yOTAuMS4xNzI4NDkxMjEwLjQ4LjAuMA..">the central bank's first cut</a> in more than four years. The September 18 move took place too late to impact third-quarter results, but stock research analysts are expected to pepper executives this earnings season about what a lower interest-rate environment might mean for business going forward.Lower rates can be a mixed blessing for banks. On the one hand, the Fed's campaign to increase the cost of borrowing has contributed to an era of sky-high returns for traditional lenders like JPMorgan, which have been making more money on loans than they have been paying for deposits. But that party was never going to last forever. (Indeed, top JPMorgan exec <a target="_blank" href="https://www.ft.com/content/c11b59f6-4827-4c4e-9f24-2f075b85f665">Daniel Pinto warned last month</a> that stock analysts' so-called NII expectations were too high.)Plus, lower rates could help unleash <a target="_blank" href="https://www.businessinsider.com/goldman-sachs-2q-earnings-david-solomon-investment-banking-forecast-2024-7">the dealmaking backlog</a> that investment bankers have been talking about since the pandemic-era M&amp;A boom started to slow in 2022. Their bonuses are counting on it.Speaking of bonuses, third-quarter results will also be closely watched on Wall Street as an indication of how well investment bankers may get paid this year.JPMorgan and Wells Fargo will kick off earnings on Friday, followed by Goldman Sachs, Citi, and Bank of America on Tuesday. Morgan Stanley will report its earnings on Wednesday. Here are the top four things to look for this bank earnings season:<h2 id="629d7158-9393-4502-a5a4-b8a898b107c5">Investment banking</h2>Investment bankers have been predicting dealmaking will return since it started slowing in 2022. But this year, there are strong signs that companies are ready to start going public and merging again.<a target="_blank" href="https://www.businessinsider.com/megamergers-deals-m-a-wall-street-comeback-2024-9">Preliminary data compiled by LSEG</a> shows 425 mergers globally so far this year valued at more than $1 billion. That's up 24% from the same period in 2023. What's more, deals valued at greater than $10 billion were recently up 39% compared with the same period last year.The number of companies going public is also soaring. 106 US companies have gone public through the third quarter, raising a total of $24.7 billion, according to IPO tracker Renaissance Capital. That's up from 71 in 2022 and 108 in 2023 and on track to beat the $27 billion raised in those two years.Third-quarter results — and commentary about 4Q dealmaking so far — will be closely watched for further signs of progress in M&amp;A, equity underwriting, and debt underwriting.<h2 id="bf745d80-abee-4488-881c-e8551a17811c">Trading</h2>At the Barclays Financial Services conference in September, big bank executives warned that trading revenues may be muted compared to 2023.Goldman Sachs CEO David Solomon described a "more challenging macro environment, particularly in the month of August," and warned that the bank's trading business "is trending down close to 10%." Solomon cited the bank's revenues for FICC, or fixed-income, currencies and commodities, saying that results were "very, very strong" in the third quarter of 2023.At the same conference, JPMorgan's president and chief operating officer, Daniel Pinto, predicted that trading revenues would be "flat to slightly up 2%." "It was a bit more challenging environment to monetize client flows, particularly in rates," he said.<h2 id="723af9a4-99cc-49fd-b909-2fc736985cbb">Lending</h2>Stock analysts will be watching what banks say about net interest income, which is how much banks earn off the difference between what they pay on deposits and what they earn on loans. When the Fed started raising rates, banks were making out like bandits because they were able to charge more for loans more quickly than they were raising rates on savings accounts.But banks have been warning that this dichotomy wouldn't last forever, and loan growth has indeed been slowing as the economy slows. Lower rates could boost lending yet again, but that could take time. In the meantime, JPMorgan's Pinto in September warned that Wall Street stock analysts' 2025 predictions for NII of between $91.5 billion and $90 billion were too high, sending the bank's stock down."I think that that number will be lower," Pinto said at the Barclays Financial Services conference. "We are not going to guide on that now, but the $90 billion is a bit too high."<h2 id="b126e3af-7e38-4ed0-b6d7-4e67905737f9">Bonuses</h2>Banks tend not to talk about bonuses on earnings calls, but how bankers will be paid will be reflected in C-Suite comments about dealing and trading generally — as well as their predictions for the rest of 2024 and into next year.In good news, compensation expert Johnson Associates sees bonuses up this year across the board, an analysis that's reflective in part of <a target="_blank" href="https://www.osc.ny.gov/press/releases/2024/10/dinapoli-wall-streets-2024-first-half-profits-232b-were-793-higher-last-year">Wall Street's earnings results</a> so far this year. See here for the compensation expert's views on bonuses for debt underwriting, equity underwriting, sales and trading, and more.<div type="image" title="Wall Street bonus predictions" height="630" width="1950" msid="114096916" hostid="261" sizebytes="88820"></div>

4 trends to watch this bank earnings season

Reserve Bank of India has given its nod for the reverse <keyword id="42411" type="General" weightage="20" keywordseo="merger" source="Orion">merger</keyword> of <keyword id="6361420" type="General" weightage="20" keywordseo="idfc" source="Orion">IDFC</keyword> Ltd with its banking subsidiary <keyword id="7145428" type="General" weightage="20" keywordseo="idfc-first" source="Orion">IDFC First</keyword> Bank. The boards of IDFC First Bank and IDFC have approved the reverse merger in July. "....IDFC Limited and IDFC Financial Holding Company (IDFC FHCL) have received letters dated December 26, 2023 from <keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword> whereby RBI has conveyed its 'No Objection' to the composite scheme of amalgamation, subject to compliance with the terms specified therein," IDFC Ltd said in a regulatory filing. As part of the composite scheme of amalgamation, IDFC FHCL would first merge with IDFC and then IDFC into IDFC First Bank Ltd. The scheme remains subject to other statutory and regulatory approvals, including from the National Company Law Tribunal and the respective shareholders and creditors of the companies involved under the applicable laws, it said. Under the proposed reverse merger scheme, an IDFC <keyword id="6388677" type="General" weightage="20" keywordseo="shareholder" source="Orion">shareholder</keyword> will get 155 shares for every 100 shares she/he holds in the bank. Both stocks have a face value of Rs 10 each. Post the merger, the standalone book value per share of the bank will increase by 4.9 per cent, as calculated on the audited financials as of March 2023, it said, adding that as of June 2023, IDFC through its non-financial holding company, owned 39.93 per cent in IDFC First Bank. IDFC was an infra lender in the private sector space, and following its bigger peers like ICICI and IDBI, it also launched a banking subsidiary in 2015 -- IDFC Bank -- but could not make a mark as the other two could do. Like HDFC Bank, the merged IDFC First Bank will also have no promoter entity, but fully owned by institutional and public shareholders. IDFC began as an infra lender in 1997. It got in-principle approval from the RBI to set up a bank in April 2014, and in October 2015, it launched IDFC Bank when on-tap licensing began, following which loans and liabilities of IDFC were transferred to the bank. In December 2018, it took over Capital First, a consumer and MSME-focused non-bank since 2012, and was renamed as IDFC First Bank and became a full-service universal bank.

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