A JPMorgan job ad shows its consumer bank is assembling a 'recession readiness' team and drawing up a playbook to navigate downturns

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A JPMorgan job ad shows its consumer bank is assembling a 'recession readiness' team and drawing up a playbook to navigate downturns

Jamie Dimon

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  • JPMorgan has posted a job opening for a recession readiness analytics role in its consumer bank.
  • Consumer banking is JPMorgan's largest business line, better known as Chase.
  • JPMorgan execs in public statements in recent months have vocalized generally positive outlooks on the US consumer. That said, they have pointed to some trouble spots around US manufacturing and global economic uncertainty.
  • "Our executives have been very public in noting that while we believe that today the U.S. economy is strong and the consumer is healthy, we are of course being planful given where we are in the cycle," a bank spokesperson told Business Insider.
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JPMorgan has posted a job opening for a role in its consumer and community banking arm that sheds some light on how it is positioning itself for a downturn.

According to the posting, a newly formed "risk management recession readiness team" in the consumer bank will be tasked with overseeing governance, keeping track of performance metrics that could signal a downturn in portfolio performance, and developing a "recession playbook."

The recession readiness analytics role, posted on October 31st, is based in Wilmington, Delaware, where JPMorgan currently employs 3,800 people across card services and consumer banking. JPMorgan is considering relocating several thousand New York-based jobs to other cities in an effort to reduce costs, according to media reports.

"Our executives have been very public in noting that while we believe that today the U.S. economy is strong and the consumer is healthy, we are of course being planful given where we are in the cycle," a spokesperson said in emailed comments to Business Insider. JPMorgan did not share any comments specific to the job listing.

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JPMorgan execs have recently vocalized generally positive outlooks of the US consumer. That said, they have pointed to some trouble spots around manufacturing and global economic uncertainty.

Consumer and community banking is JPMorgan's largest business line. It's run under the Chase name and includes products like retail branch banking, credit cards, home and auto loans. The division's net profit rose 5% in the third quarter compared with a year earlier, with credit card sales volume rising 10% in the same period.

"The US consumer is incredibly strong. Consumer spending is strong. Sentiment is strong for the consumer. Credit is good," said Jennifer Piepszak, JPMorgan's CFO, during the bank's third-quarter earnings call in October. Still, she did call out closely watched gauges of US manufacturing and service-sector strength as potential early warning signs.

"It is true that if you look at the ISM surveys, both manufacturing and nonmanufacturing, they were recently disappointing. So, I would say, no doubt, cautionary signs, but credit remains very good, and there's still very healthy business activity," Piepszak said.

At the same time, JPMorgan CEO Jamie Dimon was likewise generally positive, saying: "If you look at consumer credit, commercial credit, wholesale, it's extraordinarily good. It can only get worse if you have a cycle."

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Dimon has been vocal about the inevitability of a recession, but at a September Business Roundtable, he said he doesn't see one coming soon.

Get the latest JPM stock price here.

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