Jamie Dimon Teases His JPMorgan Exit Getting Closer, Says Timeline ‘No Longer Five Years’

Jamie Dimon has long joked that he’s five years away from retirement, no matter when you ask him. But not on Monday.

The JPMorgan Chase & Co. CEO told shareholders that the timeline “is no longer five years,” in response to a question about how long he planned to remain CEO. America’s largest bank is “on track” with its succession plans, he said during the company’s investor day.

The question of who could run the company after Dimon, who has held the top job since 2006, has loomed over the industry. Earlier this year, about halfway through Dimon’s five-year retention package, the 68-year-old CEO moved some of his top lieutenants to new senior positions, positioning them to gain more experience running the companies. company operations while grooming potential successors.

The reorganization placed Jenn Piepszak and Troy Rohrbaugh atop an expanded commercial and investment bank, while Marianne Lake, who had co-led the consumer and community bank alongside Piepszak since 2021, gained sole control of the segment, overseeing more business lines.

“It’s up to the board, not me,” Dimon said Monday. “I have the energy I’ve always had. That is important. “I think when I can’t put the jersey on and do my best, I should basically leave.”

Reviewing the days’ presentations from leaders of JPMorgan’s various business lines, Dimon tempered some analysts’ expectations that the bank’s excess capital could support further share buybacks.

“We’re not going to buy back many shares at these prices,” he said, adding that the bank will be more aggressive with buybacks when its share price drops. The stock, which closed at a record high last week, fell after his comments and ended the day down 4.5%. They are still up 15% this year.

Orientation Boost

The bank raised its forecast for net interest income this year to $91 billion after forecasting a $90 billion haul last month, due to smaller-than-expected interest rate cuts by the Federal Reserve. According to the bank, fewer customers are also transferring money to higher-yielding accounts than expected. In the first quarter, JPMorgan recorded $23.1 billion of NII, breaking a streak of seven record quarters for the metric.

JPMorgan also offered details of the possible consequences of a proposed plan to increase capital requirements for large banks. Federal Reserve officials have indicated that the proposals, known as Basel III Endgame, will be scaled back. Bloomberg reported that the agencies are working on a new version that could be finalized in August.

Read more: US considers finalizing bank capital rules in August

Even with the possibility of tighter capital requirements, JPMorgan expects to generate a 17% return on tangible common equity over the medium term, it said in its filing.

Ruined Basel

Dimon, who has long been the staunchest critic of the Basel proposals among his Wall Street peers, reiterated his criticism that they will hurt poorer consumers, pushing some out of the banking system. The regulation is “hurting America right now,” he said.

JPMorgan said earlier Monday that two-thirds of consumers would likely have to pay a monthly service fee for their checking accounts if the current proposals are implemented. JPMorgan said that does not reflect its current plans to address the rules.

The regulatory onslaught, as Lake, the consumer and community bank’s CEO, called it during her presentation, has the potential to deeply impact consumers, she said.

“These rules have not been adequately studied, and the people who will end up being hardest hit will be ordinary Americans, particularly those who can least afford it,” Lake said.

Mid-teenage boost

In addition to Lake, investors also heard from Piepszak and Rohrbaugh about developments at JPMorgan’s commercial and investment bank.

JPMorgan expects the emergence of a deal rebound to help boost investment banking fees for the second quarter by the “mid-teens” percentage compared to a year earlier, Rohrbaugh said.

For the markets business, the increase will likely be “mid-single digits,” he said.

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