An analyst said JPMorgan Chase & Co would be 30% more valuable if it was divided into four business segments. The largest bank in the US based on assets, JPMorgan's core businesses are traditional banking, investment banking, private equity and asset management.
In a note to Bloomberg, Stifel Financial Corp's KBW unit Analyst Christopher Mutascio said that the four business units together were worth USD 255.7 billion. This was way more than the New York-based bank's market capitalization of only USD 197 billion based on its most recent closing price.
Mutascio said that it would be unlikely for the bank to break up into its four units but he said if it did, the move "could potentially result in substantial upside for current shareholders if the segments were valued like similar companies." The analyst also said that JPMorgan's stock price was also affected by the costs of potential litigation and new regulatory probes.
JPMorgan did not comment on the analyst's note.
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