JPMorgan Chase: "Chairman and CEO Letter to Shareholders" (JPM)

From JPMorgan Chase, April 7, 2025:

Jamie Dimon,
Chairman and
Chief Executive Officer 

Dear Fellow Shareholders,

Across the globe, 2024 was yet another year of significant challenges, from the terrible ongoing war and violence in Ukraine and conflicts in the Middle East to ongoing terrorist activity and growing geopolitical tensions, importantly with China. Our hearts go out to those whose lives are profoundly affected by these events.

JPMorganChase, a company that historically has worked across borders and boundaries, will do its part to ensure that the global economy is safe and secure, but it is not immune to the effects of these events. Two things are absolutely foundational to the long-term success of JPMorganChase: one is whether we run a great company and two, which is maybe more important, is whether the long-term health of America, domestically, and the future of the free and democratic world are strong. In the first two sections of this letter, I deal with these critical issues. And in the third and fourth sections, I talk about specific issues unique to JPMorganChase and how we are addressing them, including constantly fighting complacency, arrogance and bureaucracy.

Despite the unsettling landscape, the U.S. economy, at least until recently, continued to be resilient, with consumers still spending (though with some recent weakening) and businesses still healthy. It is important to note that the economy has been fueled by large amounts of government deficit spending and past stimulus. There also remains a growing need for increased expenditure on infrastructure, the restructuring of global supply chains and the military, which may lead to stickier inflation and ultimately higher rates than markets currently expect. The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession. And even with the recent decline in market values, prices remain relatively high. These significant and somewhat unprecedented forces cause us to remain very cautious. There is much more detail on all of this in section three.

2024 was another strong year for JPMorganChase, with our firm generating record revenue for the seventh consecutive year, as well as setting numerous records in each of our lines of business. We earned revenue in 2024 of $180.6 billion1 and net income of $58.5 billion, with return on tangible common equity (ROTCE) of 20%2, reflecting strong underlying performance across our businesses. We also increased our quarterly common dividend of $1.05 per share to $1.15 per share in the first quarter of 2024 – and again to $1.25 per share in the third quarter of 2024 – while continuing to reinforce our fortress balance sheet. We grew market share in several of our businesses and continued to make significant investments in products, people and technology while exercising strict risk disciplines....

....MUCH MORE including:

Introduction

―Steadfast principles worth repeating

I. America and the World Are at a Critical Crossroads: Comprehensive Action and Leadership Are Imperative Now
Only America has the economic, military and, yes, moral power.

• Celebrate America’s values and virtues, with humility, in order to restore civic pride, citizenship and purpose.
• Acknowledge and fix our problems at home by regaining common sense and being resolute.
• Recognize that the best strategy for America’s success is to implement effective domestic policies that drive robust economic growth for the benefit of all citizens.
• Initiate comprehensive economic foreign policy to win the new global “economic” war. America will be first – but not if it is alone.
• Affirm that our national security and the world’s best military, at whatever cost, are paramount and necessary for peace. 

II. A Compendium of critical domestic policies to drive growth, opportunity and well-being

• We need consistent and responsible tax and fiscal policies.
• Our education system is in deep need of reform to create skills, jobs and opportunity.
• We must remedy the healthcare system, both to reduce costs and improve outcomes.
• We can improve effective regulations while reducing crippling rules, demoralization, and arbitrary and expensive litigation.
• We could do a better job supporting small businesses.
• We should have permanent plans to consistently drive the building of great infrastructure.
• We can make it easier to build a more affordable housing supply.
• We can strengthen our financial system and markets.
• Local democracy works: Let it shine and learn from it.

III. Specific issues facing our company

• We take a long view in dealing with our excess capital.
• We bring an investor/owner mindset to drive organic growth.
• Our largest risk is geopolitical risk.
• We’re not in Kansas anymore: economy, inflation, interest rates, asset prices, trade wars, oh my!
• Consumer payments have become a new battleground.
• We devote significant resources to strategic intelligence to inform change and share our knowledge....