JPMorgan Chase (NYSE:JPM) announced a pledge to facilitate $200 billion in environmental and economic development deals and will pull back from advising and lending to the coal-mining industry.
The new targets, disclosed Tuesday in presentations for the New York-based bank’s annual investor day, mark an expansion from previous sustainable financing goals. Apart from helping to fund new climate and economic inclusion projects around the world, the bank said it was taking new steps to accelerate the transition to clean energy.
Besides stepping back from advising companies that get most of their revenue from coal extraction, JPMorgan says it will put restrictions on financing new coal-fired power plants, phase out "credit exposure" to the industry by 2024 and will stop funding new oil and gas drilling projects in the Arctic.
Under CEO Jamie Dimon, JPMorgan has held annual investor meetings to update stakeholders on performance targets, market conditions and areas of opportunity. The bank on Tuesday reiterated guidance given at last year’s investor meeting, saying that the company would target an approximate 17% return on tangible equity and 55% efficiency ratio in the medium term.
The company said that it expected to generate about as much net interest income in 2020 as it did last year, when it made $57.8 billion. It will produce at least $60 billion in net interest income in 2021 if its assumptions on growth in deposits and credit card balances prove accurate.
JPM shares moved up 21 cents to $131.96 Tuesday morning.
