Chase CEO Jamie Dimon will sell about 12 percent of his shares in the nation’s largest bank for “tax planning purposes,” just weeks after he said the world is facing a “dangerous time” because of geopolitics and “government inaction.” “live through.
Dimon, 67, never sold any of his shares to Chase during his tenure at the financial giant. The sale of its one million shares will take place in 2024. The disclosure was made in a regulatory filing on Friday.
The family’s total stake in the bank is worth $1.2 billion and is divided into 8.6 million shares. Chase’s total market cap is $408 billion.
The bank announced 35 percent profit growth earlier this month, meaning Dimon’s personal shares would increase in value by $3.5 million.
Dimon and his family intend to sell one million of the 8.6 million shares they own, subject to the terms of a stock trading plan, the bank said in a regulatory filing on Friday.
The CEO has led the company since 2005. His contract stipulates that he can be awarded shares worth up to two million based on his work performance.
JPMorgan Chase CEO Jamie Dimon sounds the alarm as Israel-Gaza war sparks economic fears, predicting “the most dangerous time the world has seen in decades” is upon us.
Smoke rises after Israel attacks Gaza City. Economists are watching the conflict closely to see how it affects global trade and raw materials
Dimon’s sale comes as the war between Ukraine and Russia rages on
Shares in Chase-JPMorgan fell 0.6 percent before the IPO, but were then able to make up for the losses and were most recently down 0.2 percent.
The sale is for “financial diversification and tax planning” and Dimon “continues to believe the company’s prospects are very strong,” the bank said.
He also continues to have unvested performance share units and stock appreciation rights, JPMorgan added.
Dimon has been at the helm of the largest U.S. bank for nearly 18 years and led it through the 2008 financial crisis.
Earlier this year, he also orchestrated a rescue deal for First Republic Bank that collapsed in May after turmoil in the industry caused deposits to spiral out of control.
JPMorgan Chase’s third-quarter profit rose 35 percent from a year ago, it reported earlier this month, fueled by a rapid rise in interest rates, but Dimon offered a sobering statement on the current state of global politics and economic instability.
“This could be the most dangerous time the world has seen in decades,” Dimon wrote in the bank’s earnings release.
Dimon presented a long list of important issues: the Russia-Ukraine war, the new war between Israel and the Palestinians in Gaza, high national debt and deficits, high inflation, as well as the tight labor market that workers are demanding as wages have increased high-profile strikes in the manufacturing and entertainment sectors.
“While we hope for the best, we (JPMorgan) are preparing for a wide range of outcomes so that we can consistently deliver to our clients regardless of the environment,” he said, adding that these conflicts could similarly disrupt global trade again like what happened in Ukraine in early 2022 or after the COVID-19 pandemic.
Dimon often addresses global and economic issues that extend beyond the scope of banking
Dimon, 67, will sell 12 percent of his stake in the bank, worth about $144 million
Dimon often addresses global and economic issues that extend beyond the scope of banking. He is often seen as the banker to whom Washington and world leaders can turn for advice, whether solicited or unsolicited. His comments are likely to resonate in Washington and corporate America.
In a phone call with reporters, Dimon said he is in regular contact with his main rivals on Wall Street regarding the geopolitical and economic situation.
Despite the uncertainties, the bank remains optimistic about both the US consumer and the US economy. Jeremy Barnum, the bank’s chief financial officer, said the bank has not seen any “acute pain” in consumers’ finances from higher interest rates, although it is seeing higher levels of delinquencies and charge-offs across its credit card portfolios.
JPMorgan reported profit of $13.15 billion, up from $9.74 billion in the same period last year. Earnings per share rose to $4.33 per share from $3.12 a year ago. The result beat analysts’ forecasts, according to FactSet, who had forecast a profit of $3.95 per share. JPMorgan shares rose 3.6 percent in morning trading on Wall Street.
The bank is no longer forecasting a recession for the U.S. economy, but instead says the Federal Reserve’s higher interest rate policy to combat inflation will successfully lead to a so-called “soft landing” in which inflation slows and economic activity cools. but economic growth is not shrinking.
JPMorgan is also currently integrating First Republic Bank into its operations after buying that bank earlier this year when it failed during a banking panic in the spring. JPMorgan made a profit of around $1 billion from its First Republic division.
Total revenue for the July-September quarter was $39.87 billion, up from $32.7 billion a year ago.
This was largely due to higher interest rates, which allowed JPMorgan to charge its customers significantly higher interest on loans compared to the previous year.