Yahoo Finance Jamie Dimon Says JPMorgan Chase 'Will Earn Quite A Bit Of Money' In 2020
JPMorgan Chase & Co. (NYSE: JPM) CEO Jamie Dimon spoke during the Deutsche Bank Global Financial Services Conference Tuesday and argued the bank's stock is "very valuable" at current levels, CNBC reported.
JPMorgan Will Make Money, Dimon Says
A "base case" for the U.S. economy is a 20% unemployment rate in the second quarter followed by improving trends in the back half of 2020, Dimon said. Even under this scenario, the bank will earn "quite a bit of money" in 2020, he said.
It goes without saying that 2020 earnings will be lower compared to 2019, as it is impossible to "be a bank and be immune to what goes on in the world out there," he said.
Dividends 'A Drop In The Bucket,' Dimon Says
JPMorgan remains committed to its quarterly dividend despite the ongoing COVID-19 pandemic, Dimon said. In the bank's case, the most recent dividend announcement of $3 billion amounts to a "drop in the bucket" at 0.15% of its capital base, he said.
If it becomes "pretty clear" that the outlook will worsen dramatically moving forward, the board will obviously "take up the issue," Dimon said.
On the other hand, share buybacks aren't expected to resume any time soon and are unlikely to come until the economy is on the other side of the recession, the CEO said.
'Good Chance' Of Recovery, Dimon Says
Dimon said there is a "good chance" the U.S. economy shows a "fairly rapid recovery," CNBC quoted the CEO as saying.
The Federal Reserve and U.S. government deserve credit for being "very responsive" in supporting the economy, he said, likening the response to "water that fills every crevice."
JPMorgan shares were up 3.57% at $99.25 at the time of publication Wednesday.
Related Links:
JPMorgan Will Only Accept Small Business Loans Under Federal Scheme, Suspends All Others
JPMorgan CEO Jamie Dimon Urges Government and Businesses To Act For Common Good
Benzinga file photo by Dustin Blitchok.
See more from Benzinga
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
