JP Morgan announced on Tuesday that 2026 will be significantly more expensive for the company, citing higher spending estimated around $105 billion. 😬

Investments in AI as well as credit card competition are two of the largest factors to blame. The firm is expected to spend $18 billion this year on technology alone.

The news sent shares (JPM) tumbling by 4.66% for the day, which is their largest drop since April. It was also the biggest loser on the Dow for the day. Not a good look. 📉

Speaking at a conference in New York, Marianne Lake, CEO of the bank's consumer and community banking division confirmed that earlier hints of analysts’ $100 billion estimate was a little low and too optimistic.

Lake said that the largest chunk of this cost spike comes from “growth and volume” — meaning higher compensation, more credit card marketing, and rising customer activity. Not to mention inflation and the cost of their new HQ in London. 🏦🇬🇧

She also pointed out that the current consumer environment is rather fragile. After three years of spending down pandemic-era savings, customers and small businesses are feeling stretched.

In addition, JPM expects credit card fees to increase from 3.3% to around 3.6%. 😕

As for revenue? Lake expects investment banking fees to rise by a modest low single-digit percentage, while the markets division is set to jump by low-teens.

So, yeah, there’s definitely a lot to think about, but CEO Jamie Dimon doesn’t seem too concerned, seeing the upcoming expenses as investments rather than wasteful spend. 💸