JPMorgan Chase CEO Jamie Dimon, in his annual letter to investors, expressed hope for the bank’s future in large part because attitudes toward banking and business have changed.
Noting how difficult conditions were for banks after the financial crisis, he said his company’s fortunes this year have brightened thanks to a new political culture.
“We believe the anticipated reversal of many negatives and the expectation of a more business-friendly environment, coupled with our sustained, strong business results, are among the reasons our stock price has done so well this past year,” Dimon wrote.
JPMorgan’s shares are up nearly 48 percent over the past 12 months, thanks to a big rally after President Donald Trump’s upset election victory in November. The stock was up about 0.5 percent early Tuesday afternoon.
Though Dimon did not mention Trump anywhere in the 45-page missive that he delivers each April, some of the president’s pet themes do appear.
For instance, he notes that the U.S. is “an exceptional country,” but he delineates numerous areas where the country needs to improve. Among them are low wage growth, high health-care costs and overcrowded prisons.
As far as his own company goes, Dimon noted that all of JPMorgan’s core businesses have gained market share over the year. He said he continues to favor buybacks as a way to boost share price, even though the current level represents double the stock’s book value.
“We believe we have substantial opportunities in the decades ahead to drive organic growth in our company,” Dimon said. “We have confidence in the underlying growth in the U.S. and global economies, which will fuel the growth in our customer base.”
The bank also will be rolling out some new products.
Among them are the ability to do most banking on mobile devices, automated online advising (commonly referred to as robo-advisors) and a “more robust digital platform” for the corporate and investment banking arms as well as asset and wealth management.
In addition, he said the bank is rolling out more security protections for customers.