Author Topic: JPM - JP Morgan  (Read 107444 times)

Viking

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Re: JPM - JP Morgan
« Reply #290 on: June 01, 2018, 05:37:36 PM »
Jamie Dimon spoke for about one hour at the Bernstein Strategic Decisions Conference. If you want to understand what is going on with the big US banks, US economy etc this is a great listen (or read as the transcript is on Seeking Alpha). Amazing company.

He feels the US in is a ‘golden age of banking’.

- https://www.jpmorganchase.com/corporate/investor-relations/event-calendar.htm

Operator: Is there a bull case for the profitability of the banking industry over time, it just gets more efficient as you get more digitization - you know, fewer Brinks trucks driving cash around?

Jamie Dimon: You guys thought I was kidding when, years ago, I said you’re going to have a golden age of banking. I mean, you’re going to have a golden age of banking. You have a golden age of banking. With all the regulatory and issues, some of which are disappearing--I mean, you noticed and mentioned in one of your things that satisfaction scores are up everywhere, like almost every bank in almost every business. If you look at a bank, and if you look at JPMorgan Chase and if you step back, don’t look at the bank, look at the financial results alone, they’re extraordinary and consistent year after year after year after year after year - and not just us, okay? So even in ’08, we had a 7% return on tangible equity - that’s pretty good. You go through a year like that with the turmoil that affects the banks. So I think these banks have--and a lot of their businesses are annuity business - custody, cash management, part of asset and wealth management. Even part of trading is a consistent flow. If you look at any part of trading, there’s a part which you know is going to happen - hedging, FX around the world, capital expenses, investments, there’s a consistency. Obviously there’s an episodic part, but people forget about the consistent part too.

So to me, yes, these are pretty powerful franchises and profitability is being restored to the ones that didn’t have it, but like I said, you’re going to have real competition, and I think the--I always tell people with JPMorgan, don’t sit there and talk about where’s the competition. They’re coming, they’re always coming, they’re always getting better. They very rarely leave the field of play. It has happened, but very rarely.
« Last Edit: June 01, 2018, 06:03:11 PM by Viking »


marazul

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Re: JPM - JP Morgan
« Reply #291 on: June 01, 2018, 05:59:35 PM »
Great listening to Dimon. Got the sense he feels that bbacks at these prices do ‘t offer great IRRs, which is difficult to understand.

Viking

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Re: JPM - JP Morgan
« Reply #292 on: June 01, 2018, 06:08:59 PM »
Marazul, JPM trades at the highest P/TBV multiple of all the big US banks (deservedly so). Dimon stated their preference is to use capital to grow the business. Large chunks of stock was repurchased in the past mainly because it was the best use of capital (better use than growing the business). Lots of great choices for the large US banks (what to do with the growing amounts of cash they are generating every year... very high class problem :-).

Mephistopheles

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Re: JPM - JP Morgan
« Reply #293 on: June 01, 2018, 08:56:26 PM »
On a P/E basis, specifically after tax reform, the big banks are all trading at reasonable valuations; so I’m surprised he doesn’t like the stock price right now. Thoughts?

Spekulatius

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Re: JPM - JP Morgan
« Reply #294 on: June 01, 2018, 10:06:18 PM »
Great listening to Dimon. Got the sense he feels that bbacks at these prices do ‘t offer great IRRs, which is difficult to understand.

At 2x Tangible book, the retail return potential of buybacks seems muted. I don’t think they will do more than 15% ROE over the cycle, if that.
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John Hjorth

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Re: JPM - JP Morgan Chase & Co.
« Reply #295 on: June 06, 2018, 10:13:38 AM »
Thank you for sharing the link to the interview with Mr. Dimon in your post #291, Viking.

I listened to it today. If one listens carefully to what Mr. Dimon was saying during the interview, to me, it's actually striking, how long term oriented he is in his view of running JPM. I was quite surprised to hear him mentioning the three big Chineese banks and Alibaba as potential future competitors going forward. His mindset is really long term. He certainly does not think in 10-Qs, or even 10-Ks. His mindset is to invest in the future of the bank, long term.
« Last Edit: June 06, 2018, 10:15:12 AM by John Hjorth »
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Viking

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Re: JPM - JP Morgan
« Reply #296 on: June 06, 2018, 01:39:57 PM »
John, that is one of the key reasons why I like JPM so much; they have a long term focus in running the business. I think this is also one reason why Buffett admires Dimon as much as he does.

Liberty

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Re: JPM - JP Morgan
« Reply #297 on: June 14, 2018, 05:34:15 PM »
New Brooklyn Investor about JPM letter, among other things:

http://brooklyninvestor.blogspot.com/2018/06/jpm-2017-annual-report-jpm.html
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