Nutmeg is a UK-based and UK-focused digital wealth manager founded in 2011. The company offers a range of investment products designed to make wealth management accessible and transparent to both seasoned and first-time investors. It offers products including ISAs, Junior ISAs, Lifetime ISAs, pensions, and general investment accounts, managed through various investment styles.
In June 2021, JPMorgan Chase acquired Nutmeg for a reported £700 million, and swiftly integrated it into its international consumer banking strategy. This acquisition also complimented JPMorgan’s launch of its digital bank, Chase, in the UK.
Nutmeg has experienced significant growth in recent years. The most recent data suggests that Nutmeg serves over 230,000 customers and manages more than £5 billion in assets under management (AUM).
Is your money safe with Nutmeg?
While Nutmeg has reported significant losses in recent years, the business belongs to the world’s largest commercial bank, providing an added degree of security for investors. More than 240,000 already trust Nutmeg with their investments and the company’s operations are regulated by the Financial Conduct Authority (FCA).
The table below shows major transactions over the past four months by JPMorgan insiders and major shareholders. The data shows a mix of share purchases and sales, potentially indicating that the stock is approaching fair value.
Nutmeg’s assets under management (AUM) have increased at an impressive rate. At the last count, the company was reported to have more than £5 billion in AUM. That’s more than double the reported figure in 2020.
Number of customers vs previous years.
Nutmeg doesn’t publish the exact number of customers it has. However, the above chart is composed of data published by various sources in each calendar year. In 2023, the company was reported to have more than 230,000 customers. That’s substantially above the 80,000 it had reported in 2020.
Revenue vs previous year vs consensus estimates.
Nutmeg is not a large contributor to JPMorgan’s overall revenue picture. The US bank is expected to generate more than $170 billion in revenue in 2024, representing a continuation of a positive trend in recent years.
Earnings per share (EPS) vs previous year vs consensus estimates.
JPMorgan has reported improving earnings per share (EPS) in recent years, albeit non-linearly. The earnings growth reflects positive trends in business performance.
Return on equity vs previous year and quarter vs consensus estimates
Return on Equity (RoE) is a standard measure of profitability when assessing bank stocks. In recent years, RoE has broadly moved up and down in line with EPS. In 2023, RoE came in at 15.89%.
Return on Risk Weighted Assets vs previous year and quarter vs consensus estimates
Return on Risk-Weighted Assets (RWA) is a financial metric used primarily in the banking industry to measure a bank’s profitability relative to its risk-adjusted assets. This ratio provides insight into how efficiently a bank is using its capital to generate profits while accounting for the riskiness of its assets. The data shows the returns have also, unsurprisingly, followed trends in EPS.
CET1 ratio vs previous year and quarter vs consensus estimates.
Common Equity Tier 1 (CET1) is a key measure of a bank’s financial strength, representing its core capital as a percentage of risk-weighted assets. A higher CET1 ratio indicates greater resilience to financial stress. The above graph shows that the CET1 remained fairly steady throughout the pandemic and into 2022.
Analysts’ price targets and ratings including commentary.
Based on 20 analysts offering 12-month price targets for JPMorgan Chase in the last 3 months, the average price target is $224.13 with a high forecast of $241 and a low forecast of $210.
The next set of quarterly results is expected on 11 October 2024.
The Full Year Results Announcement is due in January 2025.