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JP Morgan to Leverage From its Size, to Lift Profits by 25%

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JPMorgan ChaseAccording to JP Morgan Chase & Co. (NYSE: JPM) executives, the bank will leverage from its size, using its multiple components to strengthen margins by 25% over time.

Speaking at the investor’s day, the Chief Financial Officer, Doug Braunsten said that the bank aims at $24 billion in annual income, climbing up from $10 billion, it earned lat fiscal.


In closing remarks, Jaime Dimon, Chief Executive Officer said that “I’ll be damned if we don’t have record profits at least for a while now,”

Although JPMorgan performed much better than many of its peers during the financial crisis, Dimon is still reeling pressure to prove that how the bank can grow revenue in a not so very enthusiastic economic environment and increased regulatory requirements for large banks.

Despite JP Morgan’s stocks are faring better than other global banks, the stock is trading just few pennies more than it was in 2004, since Dimon joined the company after it took over Bank One Corp where he was previously CEO.

In the meantime, Standard & Poor’s 500 stock indexes climbed about 22 percent.

Earlier, Mike Mayo of CLSA suggested in his research work that company should consider breaking itself up to boost its low stock price. “If JPMorgan is best in breed, perhaps the large bank breed is not so good, Mayo wrote in a research note last week”, wrote Mayo in his research work, last week.  However, Damon was quick to dismiss this suggestion in the conference.

Commenting over this suggestion, Dimon commented “My guess is the company will be far more valuable … doing what we do today for 10 years than by splitting it up into a bunch of different pieces”. He also added that he can’t imagine that the units of this company would perform better as part of a smaller company.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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