Is the Jamie Dimon era at JPMorgan Chase nearing its end?

JP Morgan Chase (NYSE:JPM) held its annual investor day on Monday, but the day’s events were overshadowed by comments from CEO Jamie Dimon about his future with the company.

Dimon, 68 and currently the longest-serving CEO of a large bank, was asked about succession planning during the Q&A portion of the event, and his answer made headlines.

Typically, Dimon would not answer such questions seriously, always joking that he had five years left.

But he gave a different answer on Monday: “The timetable is no longer five years.”

Succession within the company?

Dimon has run JPMorgan Chase since 2006, when it was one of the best and most well-run major banks in the world. His philosophy of building a ‘fortress balance sheet’ became the foundation that enabled JPMorgan Chase to navigate various markets and economic environments better than its competitors.

Over the past 10 years, JPMorgan stock has returned an average of 14% per year, and has surged 15.4% so far this year.

Dimon did not elaborate on the bank’s succession plan, but said the timetable was no longer five years, suggesting he would retire in the next few years.

“I still have that energy that I’ve always had,” Dimon said, according to CNN. “I think when you can’t put on the jersey or do everything, you have to leave.”

However, the CEO indicated that internal discussions are ongoing.

“We are on our way. “We are moving people around,” Dimon said, according to Reuters.

According to reports, all of the leading candidates to replace Dimon are within the company. Among those running are Jennifer Piepszak and Troy Rohrbaugh, co-CEOs of the commercial and investment bank. Marianne Lake, CEO of Consumer and Community Banking; and Mary Erdoes, CEO of its wealth and wealth management business.

Analysts at Bank of America Securities expected Dimon to leave by the end of 2025 or 2026, but of course it remains to be seen.

JP Morgan stock hits all-time high

After hitting a record high of $205 per share last week, JPMorgan Chase’s stock fell about 5% on Monday following news of Dimon. But it started to rise on Tuesday, rising about 2% to $199 per share.

JPMorgan Chase forecast 2024 net interest income of $91 billion at its investor day Monday, up from its previous estimate of $90 billion. But it also raised its spending forecast from $85.7 billion to $92 billion, $1 billion of which was due to donations to the bank’s foundation.

JPMorgan Chase’s technology costs are expected to be $17 billion in 2024, up from $15.5 billion expected in previous guidance. This reflects investments in modernizing the banking system to operate more efficiently.

JPMorgan Chase also said it has sufficient surplus capital for share buybacks but is taking a cautious approach to the buybacks. Dimon later added that doesn’t make much sense given JPMorgan Chase’s high stock price.

Despite the high price, the bank is still trading at a low valuation with a P/E ratio of 11. Dimon isn’t going anywhere anytime soon and his successor has undoubtedly learned his lesson, so it’s still a good, solid buy. One of the best in the industry.