JPMorgan to Drop All External Proxy Advisors, Becoming First Major Firm to Do So
JPMorgan will fully eliminate all external proxy advisory firms, becoming the first major institutional investor to do so. The bank plans to expand its in-house governance team to handle proxy research and voting decisions, aiming for greater control and reduced advisory fees.
1. JPMorgan to Assume Apple Card Portfolio, Booking $2.2 Billion Q4 Provision
JPMorgan Chase & Co. has reached agreement to take over the Apple Card business from Goldman Sachs, adding approximately $20 billion in outstanding balances. The firm plans to record a $2.2 billion credit reserve in its fourth-quarter consumer provision, reflecting anticipated credit losses on the newly acquired portfolio. This strategic move expands JPMorgan’s U.S. credit-card footprint by an estimated 15 percent and is expected to generate incremental net interest income of $600 million to $800 million annually once fully integrated. Management highlighted that technology and back-office systems will be aligned by mid-2026 to support a seamless transition for over 6 million cardholders.
2. Analyst Expectations Point to Solid Q4 Performance Beyond Top-Line Metrics
For the quarter ended December 2025, consensus estimates call for earnings per share of $5.01 and revenue of $46.25 billion, representing year-over-year growth of 4 percent in EPS and 8 percent in net revenue. Beyond these headline figures, analysts are closely monitoring the bank’s net charge-off ratio, forecast to improve to 0.80 percent from 0.95 percent a year earlier, and trading income, which is projected to decline modestly by 3 percent amid softer fixed-income volatility. Investment-banking fees are anticipated to rise by 6 percent, driven by advisory mandates in mergers and acquisitions. Loan balances are expected to grow at an annualized rate of 5 percent, supported by strong corporate demand, with return on tangible common equity forecast at 18 percent.
3. JPMorgan Ends Use of External Proxy Advisory Firms
In a first among major U.S. banks, JPMorgan Chase has fully eliminated reliance on outside proxy advisory services, including ISS and Glass Lewis. The bank’s governance and legal teams will now handle all proxy research, voting recommendations and regulatory filings in-house, a move intended to reduce annual fees by approximately $10 million and accelerate response times during proxy season. Executives cited the desire for greater control over shareholder engagement and the ability to tailor guidance to the firm’s unique governance policies. Institutional investors are expected to watch closely for any shifts in voting outcomes during the upcoming annual meeting cycle.