Jamie Dimon noted, “Your company earned a record $19.0 billion in 2011, up 9% from the record earnings of $17.4 billion in 2010. Our return on tangible equity for 2011 was 15% — the same as last year. Relative to our competitors and given the prevailing economic environment, this is a good result. On an absolute and static basis, we believe that our earnings should be $23 billion – $24 billion.”
The 38 page document talked about mortgage-related losses and he noted that the hostility toward the banking industry continues.
Jamie Dimon noted that the bank bought back $9 billion of stock and that it was recently granted permission to buy back up to $15 billion more during the remainder of 2012 while lifting the dividend from $1.00 per share to $1.20 per share on an annualized basis. While this was a good thing, here is why this dividend hike should have been taken as a disappointment by Wall Street and Main Street investors alike.
Dimon’s full annual letter is here.
JON C. OGG
Contact [email protected] for any questions or corrections.
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