JPMorgan Chase is boosting buybacks even after CEO Jamie Dimon called the stock expensive

Published On Jan 15, 2025, 4:01 PM

JPMorgan Chase has announced an increase in share buybacks due to a significant accumulation of excess cash, approximately $35 billion, which the bank does not need to satisfy regulatory requirements. This decision comes after a record year for profit and revenue. Despite CEO Jamie Dimon's previous statements regarding the high valuation of JPMorgan's stock, the bank is under pressure from investors to utilize this excess capital. Dimon had expressed that buying back shares at such high prices would be a mistake, yet the bank is now moving forward with buybacks as they seek to prevent excess cash from growing further, highlighting concerns of potential economic downturns ahead and wanting to avoid unnecessary capital growth. Analysts believe that the bank may need to balance buybacks with opportunities to increase loans, especially in a recessionary environment.