This is the third time in a week that Mr. Dimon has made a point of commenting on inflation.
From JPMorgan Chase & Co., April 12:
JPMORGAN CHASE REPORTS FIRST-QUARTER 2024 NET INCOME OF $13.4 BILLION ($4.44 PER SHARE), EXCLUDING A $725 MILLION INCREASE TO THE FDIC SPECIAL ASSESSMENT, NET INCOME OF $14.0 BILLION ($4.63 PER SHARE
Jamie Dimon, Chairman and CEO, commented: “We reported strong results in the first quarter, delivering net income of $13.4 billion, or $14.0 billion excluding a $725 million increase to the FDIC special assessment.
Last month, we announced a 10% increase to the common dividend. Our exceptionally high CET1 capital ratio of 15.0% and peer-leading returns provide us with the capacity and flexibility to both reinvest for growth and maintain an attractive capital-return profile, without compromising our fortress balance sheet.”
Dimon continued: “This quarter, NII declined 4% sequentially, and as expected, NII ex. Markets declined 2% sequentially due to deposit margin compression and lower deposit balances, mostly in CCB. Looking ahead, we expect normalization to continue for both NII and credit costs.”
Dimon continued: “Our lines of business saw strong underlying performance. In CCB, client investment assets were up 25% excluding First Republic, and we continued to add new customers. In CIB, IB fees increased 21%, reflecting improved DCM and ECM activity. In CB, we saw strong growth in Payments fees and onboarded a significant number of new client relationships. Finally, in AWM, asset management fees were up 14%, with continued strong net inflows.”
Dimon added: “Many economic indicators continue to be favorable. However, looking ahead, we remain alert to a number of significant uncertain forces. First, the global landscape is unsettling – terrible wars and violence continue to cause suffering, and geopolitical tensions are growing. Second, there seems to be a large number of persistent inflationary pressures, which may likely continue. And finally, we have never truly experienced the full effect of quantitative tightening on this scale. We do not know how these factors will play out, but we must prepare the Firm for a wide range of potential environments to ensure that we can consistently be there for clients.”
Dimon concluded: “We continue to be a pillar of strength for our clients, communities and markets across the world – while also delivering for shareholders. This quarter, we grew customers, continued to position the Firm for the future, maintained our fortress principles, raised the dividend and played a critical role in driving economic growth by extending credit and raising capital totaling more than $655 billion....
....MUCH MORE (8 page PDF), narrative and financials.
Careful with that "pillar of strength" and "fortress" talk Jamie, it brings back memories of that time the denarius/shekel cross went no-bid. From a November 2013 post "UPDATED--As TIPS Tumble, Maybe We Won't Have to Go To Electronic Money to Enforce Negative Rates!":
....Personally I'm thinking the lesson of currency disruptions from the Hungarian and Weimar hyperinflations all the way back to the demise of the shekel in 70 a.d. is: keep some small silver coins to make day-to-day purchases and a stash of half-carat diamonds if you have to get through airports.
Maybe that last lesson didn't come out of the Roman destruction of the Temple.
Anyhoo, "Here at Masada Securities we are a fortress of strength in these uncertain times...."
Back on topic...[edited for sanity]...
If interested see also our April 8 post on JPM's full year numbers a few days ago:
JP Morgan Chairman's Letter on Inflation, April 8, 2024 (JPM)
