Jamie Dimon of J.P. Morgan Chase & Co. (NYSE: JPM) is well-known for being outspoken. At a Goldman Sachs financial conference today, Mr. Dimon spoke out with his usual wording which some believe makes for boisterous soundbites in the media. If you read our outlook for DJIA component dividend hikes recently, you already knew what to expect on the dividend (and buyback) front.
Dimon’s presentation is one that the current slump in investment banking and in the world of trading may be more cyclical (temporary) rather than secular (permanent). Many will disagree with this notion. Some will agree. He believes that the investment banking is a solid business and that demand will return. He even believes (or is communicating) that there will be twice as much capital to invest in the next decade.
The internal belief is that the bank, which is America’s strongest bank by capital and credit metrics of the money-center and super-regional banks, could buy back up to $8 billion in stock in 2012 if the new more harsh stress tests are applied systemwide. He also talked about making a return for shareholders, something that many are still hoping for when you consider the price drops that have been seen in 2011 and considering the deep discounts to book value. Dimon is looking to lightly boost the dividend next year if allowed.
Where this gets interesting is that Dimon was again knocking the regulatory environment. He also noted that he has increased some exposure to Europe since the end of the last quarter.
The market today is voting for Jamie Dimon and against the powers that be. J.P. Morgan shares are trading up about 2.3% at $33.98 on the day. The bank’s presentation page is here.
JON C. OGG
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