CEO, JPMorgan Chase & Co.’s chief executive officer, informed shareholders that the timeline was “not five years anymore.”
When asked how long he wanted to stay CEO, JPMorgan Chase & Co.’s chief executive officer responded by telling shareholders that the timeline was “not five years anymore.” He stated during the company’s investor day that the biggest US bank is “well on the way” with its succession plans. The business has been plagued by uncertainty regarding Dimon’s successor as the company’s top executive since 2006.
About halfway through Dimon’s five-year retention package earlier this year, the 68-year-old CEO promoted a few of his top lieutenants to new senior positions to give them greater experience managing the company’s potential successors.
After the reorganization, Jenn Piepszak and Troy Rohrbaugh were given additional authority over an expanded commercial and investment bank, while Marianne Lake, who had been co-leading the consumer and community bank with Piepszak since 2021, was given exclusive authority over the division and more responsibility over its business lines. “It’s not up to me; it’s up to the board,” Dimon declared on Monday. “I’m as energetic as I’ve ever been. That is crucial. I believe that, in essence, I should go when I am unable to put on the jersey and give it my best.”
After going over the CEOs of JPMorgan’s many business lines’ presentations from the previous day, Dimon moderated the expectations of certain analysts who were hoping that the bank’s extra capital would allow for more share buybacks. He said, “We’re not going to buy back a lot of stock at these prices,” but he did say the bank would buy back additional shares when its price dropped. Following his remarks, the shares—which had closed at a record high last week—dropped and finished the day 4.5% lower. They’ve still increased by 15% this year.
The bank revised up its estimate of net interest income this year to $91 billion from $90 billion last month due to the Federal Reserve’s lower-than-expected interest rate reductions. The bank claims that fewer clients are moving money to higher-yielding accounts than expected. JPMorgan broke a record of seven quarters with $23.1 billion in net interest income (NII) in the first quarter. JPMorgan also provided information on the possible repercussions of a plan to raise the capital requirements for large banks. Fed representatives have hinted that the Basel III Endgame ideas will be scaled back. Agencies are reportedly working on a revised version, which might be completed as soon as August.
Among his contemporaries on Wall Street, Dimon has long been the most outspoken opponent of the Basel plans. He repeated his complaints that the ideas would harm the most vulnerable clients and force some of them out of the banking system. “At this point, regulation is damaging America,” he declared. Earlier on Monday, JPMorgan stated that if the present ideas are put into action, two-thirds of customers would probably have to pay a monthly service charge for their checking accounts. According to JPMorgan, it isn’t how it currently intends to comply with the regulations. The CEO of a community bank and customer, Lake, referred to the deluge of regulations during her presentation as having the potential to significantly affect consumers.
“These rules have not been adequately studied, and the people who will end up being impacted the most will be everyday Americans, in particular those who can least afford it,” Lake stated.
Mid-teens increase
Investors were briefed by Piepszak and Rohrbaugh in addition to Lake regarding developments within JPMorgan’s commercial and investment bank.
According to Rohrbaugh, JPMorgan anticipates that the start of a deal rebound will support investment-banking fees for the second quarter by a percentage in the “mid teens” when compared to the same period last year.
The growth for the market company will most likely be in the “mid-single digits,” he said.
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