JPMorgan Chase & Co targets to save $1.4billion in annual expenses, the company made this announcement on Tuesday. The saving target the area of investment banking and consumers, the annual expenses is estimate to decrease by $1.4billion as per the Largest Bank in U.S in terms of assets.

In consumer bank, the bank’s target lowering their expenses by $2billion and $2.8billion in investments bank.

Marianne Lake, Finance chief, indicated roughly $3billion in cost efficiency has a reason why JPMorgan was not in terms with the investors and analyst. Lake cited that, if JPMorgan were to split into two, it would require to duplicate audit division, risk and finances at high expenses.

When a bank grows bigger, regulators insist that they hold or capital to caution loser who may lead to destabilizing of the financial system.

The target for return on tangible common equity by the bank was lowered for profitability.

In a presentation, finance chief Marianne Lake cited about $3 billion in cost efficiencies as one reason why JPMorgan disagreed with analysts and investors who said it would be better for shareholders if the bank were to break itself up. If JPMorgan were to split in two, Lake said, it would be required to duplicate its finance, risk and audit divisions, among others, at great expense.

“These are not trivial things,” Lake said. “Scale has always defined the winner in banking.”

Nevertheless, the larger and more complex banks become, the more regulators have insisted they hold on to more capital as a cushion against potential losses that could destabilize the financial system.

On Tuesday, JPMorgan said it has raised its target for a key regulatory measure of capital to 12 percent from the 10 percent-plus it gave a year earlier. The goal includes a “buffer” to protect the bank from swings below its expected total requirement from U.S. regulators.

In order to prevent even higher capital requirements, executives said the bank will shed up to $100 billion of non-operating deposits, or extra cash that clients keep in their accounts.