Happy

Right in this Fool article, here it is:

>>The benefits to JPMorgan Chase have been twofold. In the first case, the Chase Sapphire Reserve card has helped the bank grow its core loan portfolio, as the loans underlying credit card balances are held by banks. On top of this, as Lake noted on the call, the customers that are attracted to the card "are extraordinarily good customers. Their characteristic, their engagement, their spend, these are the customers that everybody wants to acquire. We now have them and we intend to deepen relationships with them."<<

Just how many new CSR owners would start using Chase as their primary loan provider, such as mortgages, small business, and corporation loans, from this "deepened relationship'?

>>There is, however, one thing to keep in mind. The tangible impact from these cards won't be fully felt on the bottom line by JPMorgan Chase until later. Because of the high cost of acquiring these customers, it takes years before the relationships fully season from a financial perspective. As CEO Jamie Dimon shared on the bank's conference call, the acquisition costs are expensed over 12 months, but the benefits come over seven years.<<

If I am the institution shareholders, I would NOT be happy to know that Chase has miscalculated the acquisition cost so poorly that it would take 7 years to break even.... All the spin is how Chase could cultivate the "desirable" customers so to establish deeper relationship that leads to loans and private client (investment) business... So far this remains to be seen and really is a "Pie in the Sky" thing.