In his annual letter to shareholders, JPMorgan Chase (JPM) CEO Jamie Dimon said he is looking to increase the bank's annual dividend as long as financial markets and economic conditions continue to improve.
Dimon said he hopes to increase the dividend to between 75 cents to $1 a share from its current level of 20 cents a share. JPMorgan cut its annual dividend to 20 cents a share from $1.52 in early 2009 as financial markets continued to deteriorate and the bank was trying to preserve capital.
Dimon cited three conditions necessary for the bank to increase its dividend, including several months of improvement in the jobs markets and a reduction in consumer charge-offs related to mortgages and credit cards. Dimon also said the bank would need "more certainty around the regulatory requirements for bank capital levels" as well.
Since the health-care changes became law last week, both the White House and Democratic leaders in Congress have turned their attention to a financial regulatory overhaul package. Rep. Barney Frank, (D-Mass.), who is also chairman of the House Financial Services Committee said Thursday that he expects President Obama will sign a bill around Memorial Day.
"Possible changes in capital and liquidity requirements as well as some tax proposals are creating uncertainty around our future capital needs," Dimon said. "We hope there will be more clarity regarding these issues soon."
Dimon's 36-page letter focused on a whole host of other issues and outlook, including how the bank plans to use the assets it acquired from its 2008 purchase of Bear Stearns to grow its prime brokerage business, increase retail locations and grow particular credit card programs, along with executive compensation. Read the letter below.
Shares of JPMorgan Chase rose 1.1% Thursday afternoon to $45.20 a share.
Jamie Dimon 2009 AR Letter to Shareholders
LifePoint beats Q4 estimates, forecast higher 2010 earningsJPMorgan’s Dimon Paid $1.32 Million in 2009
