JPMorgan May Tap Growing Saudi Market with More Bankers
In order to make the most of growing equity market and M&A activities in Saudi Arabia, JPMorgan Chase & Co. JPM plans to increase its number of bankers over there. Per Sjoerd Leenart, the company’s regional head for the Middle East, Turkey and Africa, the number of bankers will be increased from 70 to 80 by the end of 2017. The news was reported by Reuters.
Saudi Arabia has disclosed that its state-owned companies worth $200 billion will be privatized in the next few years. Additionally, the kingdom plans to make Saudi Aramco, an oil company, public for around $100 billion.
Leenart said, "We're invested in investment banking and our equities brokerage capabilities as we expect more activity in the equity market with all the changes that are going on."
Agreeing that JPMorgan might also use expertise from outside the region, he stated, "There's a very important balance to maintain between having expertise on the ground and drawing on industry expertise sitting in the U.S. or UK."
In terms of its involvement in M&A transactions, 2017 has been a good year so far for JPMorgan.
Leenart also said, "From 2018 onwards, we expect a busy agenda in terms of IPO listings and trade sales to strategic and financial buyers."
Notably, shares of JPMorgan gained 42.4% in the last year, outperforming the Zacks categorized Major Regional Banks industry’s growth of 36.7%.
The company remains well poised to grow organically, supported by a solid balance sheet. Moreover, the company has been streamlining its businesses and focusing on core operations, which has helped control costs.
However, the company still faces investigations from several federal agencies and a few foreign governments for its business conducts in the pre-crisis period, which could keep hurting its financials.
Currently, JPMorgan carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are Comerica Inc. CMA, Northern Trust Corp. NTRS and The PNC Financial Services Group, Inc. PNC.
Comerica witnessed an upward earnings estimate revision of 10.2% for the current year, in the last 60 days. Its share price increased 19.6% in the last six months. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Northern Trust carries a Zacks Rank #2 (Buy). For the current year, in the last 60 days, its Zacks Consensus Estimate was revised 2.1% upward. The company’s share price increased 9% in the last six months.
PNC Financial has a Zacks Rank #2. The company witnessed an upward earnings estimate revision of 3% for the current year, in the last 60 days. Its share price increased 12.6% in the last six months.
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