Close Menu
  • Homepage
  • Local News
  • India
  • World
  • Politics
  • Sports
  • Finance
  • Entertainment
  • Business
  • Technology
  • Health
  • Lifestyle
Facebook X (Twitter) Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
Facebook X (Twitter) Instagram Pinterest
JHB NewsJHB News
  • Local
  • India
  • World
  • Politics
  • Sports
  • Finance
  • Entertainment
Let’s Fight Corruption
JHB NewsJHB News
Home»Finance»JPMorgan Chase boosting buybacks after Dimon called stock expensive
Finance

JPMorgan Chase boosting buybacks after Dimon called stock expensive

January 16, 2025No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
JPMorgan Chase boosting buybacks after Dimon called stock expensive
Share
Facebook Twitter LinkedIn Pinterest Email

CEO of Chase Jamie Dimon appears to be like on as he attends the seventh “Select France Summit”, aiming to draw international traders to the nation, on the Chateau de Versailles, outdoors Paris, on Could 13, 2024. 

Ludovic Marin | Through Reuters

JPMorgan Chase executives mentioned the financial institution would enhance share buybacks so {that a} mounting pile of tens of billions of {dollars} in extra money does not develop additional.

Recent off a file yr for revenue and income, JPMorgan is dealing with questions over what CFO Jeremy Barnum admitted was a “high-class drawback”: the financial institution has, by some estimates, roughly $35 billion in cash that it does not have to fulfill regulators, or what analysts name “extra capital.”

“We wish to not have the surplus develop from right here,” Barnum advised analysts Wednesday. “Given the quantity of natural capital era that we’re producing, it implies that — except we discover within the close to time period, alternatives for natural deployment or in any other case — it means extra capital return by buybacks.”

The financial institution has heard it from traders and analysts who wish to know what JPMorgan intends to do with the money. The most important American financial institution by belongings has stockpiled earnings in preparation for the Basel 3 regulatory guidelines that might’ve required extra capital, however Wall Avenue analysts now imagine that the incoming Trump administration is more likely to suggest one thing far gentler.

Again in Could, when the query got here up at his financial institution’s annual investor day, CEO Jamie Dimon bristled on the notion of scaling up purchases of his inventory, which was then buying and selling close to a 52-week excessive of $205.88.

“I wish to make it actually clear, OK? We’re not going to purchase again numerous inventory at these costs,” Dimon mentioned on the time.

That is as a result of the corporate’s valuation was too wealthy, even in its personal eyes, Dimon mentioned: “Shopping for again inventory of a monetary firm drastically in extra of two occasions tangible e-book is a mistake. We aren’t going to do it.”

The financial institution’s inventory has solely appreciated since: A share trades palms for 22% extra now than when Dimon made these remarks.

In warding off calls to whittle down its money pile by greater than it deems needed, JPMorgan has hinted on the threat of rockier occasions forward. Since at the very least 2022, Dimon and others have warned of the potential of a recession simply forward, but it surely has but to reach, leaving the tip of an financial cycle nonetheless on the horizon.

Barnum returned to the topic on Wednesday, telling reporters that there was a “stress” between the dangers within the financial system and excessive asset costs out there; the financial institution subsequently needed to put together for a “big selection of eventualities,” he mentioned.

A pointy financial downturn would give the financial institution the chance to deploy extra of that estimated $35 billion in extra money by loans, based on Portales Companions analyst Charles Peabody.

“I believe JPMorgan will likely be disciplined in not pissing away capital,” Peabody mentioned. “The very best time to take market share is popping out a recession, as a result of your rivals are considerably impaired. And I count on he’ll pull again on buybacks from present ranges, regardless of stress from shareholders to do extra.”

Fairly limited upside on JPMorgan and American Express stocks, says Baird's David George

Source link

boosting Buybacks called chase Dimon expensive JPMorgan stock
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Truist Initiates Teva Pharmaceuticals (TEVA) Coverage with Buy, $25 Price Target

May 31, 2025

Mortgage rates spend another week stuck near 7%

May 31, 2025

Here’s Why AppLovin (APP) Fell in Q1

May 31, 2025

This is why Jamie Dimon is so gloomy on the economy

May 30, 2025
Add A Comment
Leave A Reply Cancel Reply

Editors Picks

Truist Initiates Teva Pharmaceuticals (TEVA) Coverage with Buy, $25 Price Target

May 31, 2025

Supreme Court to hear man’s plea against detention of his mother by police in Assam | India News

May 31, 2025

What is Jin Shin Jyutsu?

May 31, 2025

Starting Order & Pole for Rackley Roofing 200

May 31, 2025
Popular Post

Novak Djokovic falls in first US match since 2021, losing in doubles in Ohio | Tennis News

Jason Derulo Demands Court Dismiss Sexual Harassment Lawsuit Brought By Singer He Signed to Record Deal

Senior Iranian commander killed in Israeli strike, says Iran state media

Subscribe to Updates

Get the latest news from JHB News about Bangalore, Worlds, Entertainment and more.

JHB News
Facebook X (Twitter) Instagram Pinterest
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
© 2025 Jhb.news - All rights reserved.

Type above and press Enter to search. Press Esc to cancel.