JPMorgan Chase & Co. (JPM) Rewards Shareholders Again | InvestorPlace

N may return more money to shareholders than it earns over the next few years, it forecast on Tuesday, an encouraging sign for investors who have been waiting for richer dividends and share repurchases. The prediction came in documents posted on JPMorgan's website for its annual investor day, where top executives offered their vision for the four major business lines and financial targets for the broader institution.

Although JPMorgan is sticking to its long-term target of returning 55 percent to 75 percent of net income to shareholders, the bank could pay out as much as percent in the medium term, according to a presentation. That would mean JPMorgan is generating more than enough profit to invest in its businesses and meet regulatory capital requirements, and can even reduce some of that capital.

There is "no good reason" why JPMorgan could not have a capital ratio at the lower end of a targeted range, she added. The bank aims to maintain enough high-quality capital to cover 11 percent to They also must get their capital plans approved by the Federal Reserve through an annual stress test, meaning that banks cannot unilaterally decide to increase dividends or share repurchases.

Prior to the crisis, it was not unusual for big banks to distribute all of their earnings to shareholders. JPMorgan, the largest U. At Tuesday's confab at JPMorgan's headquarters in New York, Chief Executive Officer Jamie Dimon and other top executives mingled with investors, analysts and reporters.

It drew hundreds of money managers who got a chance to press managers about a wide range of topics, from geopolitics to expense ratios. Dimon said he remains confident about the U. JPMorgan said it plans to spend more this year to grow its credit-card business and stay competitive in an industry that has become increasingly technology-focused.

But even with higher costs, the bank maintained its long-term targets for a cost-to-revenue ratio of 55 percent and for a return on tangible common equity of about 15 percent, signaling management's belief that the investments will pay off. Dimon said the additional spending is important to continue the company practice of steadily investing in its businesses. He added that about half of the expected increase in reported expenses is due to accounting requirements for additional auto leasing the company is doing in partnership with car manufacturers.

Although executives say JPMorgan is focused on efficiency, they have also pushed back against the idea that they should, for instance, cut branches to get a quick profit boost. They have instead advocated for investing in key businesses, like credit cards, as well as technology that can help JPMorgan lure more customers and keep existing ones happy. One of its slides characterized its approach to costs as: Innovation was a theme for the day, with displays highlighting JPMorgan's technology bona fides in ATMs, cyber security and "trader experience," among other things.

They have risen about 29 percent since Donald Trump won the U. Reporting by David Henry in New York and Sweta Singh in Bengaluru; Additional reporting by Dan Freed in New York; Writing by Lauren Tara LaCapra; Editing by Jeffrey Benkoe and Phil Berlowitz.

JPMorgan eyes boosting dividends, buybacks as capital piles up | Reuters

A decision by Goldman Sachs Group Inc last year to move an investment banking veteran to Seattle, as well as Evercore Partners Inc's hiring of a top banker defending companies against activist investors, has paid off handsomely.

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