Sunday, April 14, 2024
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JPMorgan hikes dividends after Jamie Dimon knocks Jerome Powell’s plan for greater capital necessities

JPMorgan Chase & Co. unexpectedly lifted its dividend 9.5% within the wake of a document annual revenue and as regulators sign they might rethink proposals for tightening capital guidelines.

The rise to $1.15 a share, introduced in a press release Tuesday, marked the second time previously 12 months that the most important US financial institution boosted its quarterly payout. The agency has despatched about $60 billion to shareholders by dividends and inventory buybacks over the previous three years.

JPMorgan has been an outspoken critic of a US regulatory effort to ratchet up capital necessities, estimating that proposed guidelines might pressure it to carry about $50 billion extra — roughly equal to its annual revenue for 2023. Business teams have waged a fierce lobbying marketing campaign in opposition to the plan, warning it’ll make them much less aggressive and drive up lending prices. 

Earlier this month, Federal Reserve Chair Jerome Powell advised lawmakers that regulators are prone to considerably change that plan. Whereas choices had but to be made, he mentioned it was “very believable” they might scrap an present proposal and put forth a brand new one.

JPMorgan, led by Chief Govt Officer Jamie Dimon, didn’t present a purpose for the dividend enhance in its assertion. The agency had raised the payout by 5% to $1.05 a share for the third quarter.

The inventory climbed 14% this 12 months to $193.79 by the shut of US markets on Tuesday. The worth was little modified in prolonged buying and selling after the financial institution’s announcement as of 6 p.m. in New York.

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