CEO of JPMorgan Chase, Jamie Dimon, in his most recent annual letter to shareholders, revealed that he is seriously considering a hike in the bank's yearly dividend as long as there is continued improvement in the financial markets and economic conditions.
Mr. Dimon shared that he hopes to increase the dividend to about 75 cents to $1 per share from the present value of 20 cents a share. Early in 2009, JPMorgan had pulled down its dividend from $1.52 per share to a mere 20 cents a share, with continued deterioration of the financial sectors. The bank was, back then, trying to preserve some capital.
As many as three major conditions were cited by Mr. Dimon in the letter, which he believes are mandatory for JPMorgan to raise its dividend, including various consecutive months of improvement in the jobs market and a cut down in customer charge-offs which are related to mortgages and credit cards. In addition, Mr. Dimon said that the bank itself would require "more certainty around the regulatory requirements for bank capital levels".
"Possible changes in capital and liquidity requirements as well as some tax proposals are creating uncertainty around our future capital needs. We hope there will be more clarity regarding these issues soon", Mr. Dimon said.
The letter sent by Mr. Dimon to the shareholders was a 36-page long document and focused on a whole lot of other issues and future outlook of the banking major.
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