JPMorgan Chase Names New CEO Of Private Bank Unit

JPMorgan Chase (JPM) has named insider David Frame as the new chief executive officer (CEO) of its global private banking unit.

The appointment is effective immediately and will see Frame lead JPMorgan’s wealth management unit that provides investment solutions to high-net-worth individuals and families.

Private banking has become an increasingly important business for lenders such as JPMorgan Chase as they court wealthy clients and tap into a growing pool of global capital.

Beyond managing investments, private banks also provide lending, estate planning, and philanthropy services, helping to drive steady fee income and diversify banks' revenue streams.

In recent years, other banks such as Morgan Stanley (MS) and Citigroup (C) have also pushed deeper into private banking as they diversify away from more volatile trading and deal work.

In the new role, Frame will lead the private banking unit’s global operations, expanding his responsibilities beyond his current role as U.S. private bank CEO.

JPMorgan Chase has said previously that its private banking business oversees more than $2.9 trillion U.S. in client assets worldwide.

Demand for private banking services is on the rise as geopolitical tensions and economic uncertainty push wealthy individuals and families to spread their money across markets and different asset classes.

In particular, demand is growing for private banks that can offer cross-border investments and access to fast-growing private markets.

The bank said Frame will continue to report to Mary Callahan Erdoes, CEO of J.P. Morgan Asset and Wealth Management, which oversees more than $6 trillion U.S. in assets.

JPMorgan Chase is the largest American commercial bank and its stock has risen 22% this year to trade at $292 U.S. per share.