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Jamie Dimon is making a billion-dollar gamble on deep-pocketed clientele.
At a time when stock markets are whip-sawing investors, the JPMorgan Chase chief is aiming to build out the bank’s wealth management arm in a bid to cater to rich investors. Dimon is betting that the business could generate as much as $1 billion in pre-tax profits.
“It’s one of Jamie’s most important goals,” said Barry Sommers, who is heading the initiative.
Sommers told The Post that JPMorgan’s game plan is to hire thousands of wealth managers and support staff over the course of the next several years.
A former Goldman Sachs broker, Sommers came over to JPMorgan following its shotgun merger with troubled Bears Stearns in 2008.
The exec has been tasked with adding hundreds of branches catering to wealthier clients in Texas, California and Florida over the next several years.
“In 2011, we plan to have a presence in more than 250 locations and by 2012, we are aiming for more than 750,” he said. “By 2013 we plan to have a presence in almost 1,000 locations.”
Many of those new branches will be housed in the bank’s existing ATM branches, but will have special, well-appointed areas with mahogany trimmings to appeal to higher net worth clients.
The firm believes that its Chase Private Client business can draw from both its existing customer base and as well as from competitors.
The ambitious plan comes as some of the nation’s biggest banks, whacked by hard-hitting regulations, are scratching for higher fees from customers.
Many firms, such as Bank of America and Wells Fargo, have been hiking fees on everything from checking accounts to debit-card usage.
Dimon toyed with the idea of purchasing a wealth manager before deciding to build it out organically because of a dearth of easy acquisitions, sources said.
JPMorgan estimates that about 66 percent of its well-off customers visit a branch at least once a quarter.