JP Morgan looks to boost payouts for investors as bank nears capital target, eyes $30B-profit

JP Morgan

Top bank in US, the JP Morgan Chase & Co, is eyeing for more dividends and payouts for its shareholders as the bank slowly inches to its capital need while it expects a profit of $30 billion under the President Donald Trump administration.

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The bank’s forecast to return more money to its investors more than what they have earned in the past years stemmed from the data appeared on its website, showing the company’s vision in its four major business lines and the financial expectations from its top executives.

According to the document, JP Morgan could offer their shareholders as much as 120% dividends in the medium term as the leading American bank is on its way to generate more profits and meet its capital requirements.

The bank’s profitability is expected to yield higher as the Federal Reserve’s target to pull off three interest rate hikes and Trump’s upcoming stimulus plan could pump up JP Morgan’s bank lending margins and loan growth.

The company’s CFO, Marianne Lake said on Tuesday during the bank’s annual investor summit that the firm is eyeing for a $30 billion net income in the next couple of years as higher lending margins could generate additional $4 billion profit while loan growth could steer additional $5 billion profit.

The bank’s net income came in at $24.7 billion in 2016.

However, higher operating expenses may harm the profit by about $2 billion while loan loss expenses can slash $1 billion.

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