Jamie Dimon, chairman and CEO of JPMorgan Chase, the world’s largest bank, plans to sell one million shares of the bank he owns next year. Dimon and his family currently hold approximately 8.6 million shares of JPMorgan, so they would receive approximately $143 million from the transaction at the current share price, roughly 3.3 billion crowns.
According to the regulatory filing, this will be Dimon’s first stock sale after nearly 18 years at the helm of the Wall Street banking giant. Dimon and his family decided to gradually sell stocks for financial diversification and tax planning.
“Mr. Dimon continues to believe the company’s prospects are very good and his stake in the company will remain very significant,” JPMorgan said in a statement.
A roughly 260 percent rise in JPMorgan’s stock during Dimon’s tenure at the helm helped turn the successful and respected manager into a billionaire. In early 2009, amid turbulent markets during the financial crisis, Dimon bought 500,000 shares of the bank as a sign of confidence. In 2016, he made the same move and invested approximately $38 million in both rounds of purchases, Bloomberg reports.
“Given that this is Mr. Dimon’s first similar sale since he joined the company, where he is an important part of the story, we are confident that this announcement will attract attention,” analysts at Piper Sandler said in a note to clients.
The planned sale of shares has sparked speculation about the banker’s possible retirement. Dimon is 67 years old and is the longest-serving head of a major American bank. However, Dimon has previously stated several times that he plans to remain at the helm of JPMorgan for several more years, if possible. A bank spokesman said the share sale was unrelated to succession planning and that Dimon currently had no further plans to sell shares.
Dimon is considered one of the most successful bankers in the United States. He has led JPMorgan since 2005 and helped build it into America’s largest and most profitable bank. The Dimon-led bank also plays a key role in stabilizing the financial industry through acquisitions of failed banks.
JPMorgan had been in charge for barely three years when the 2008 financial crisis hit. Even then, the experienced banker did not hesitate and took advantage of a once-in-a-generation opportunity. At the time, JPMorgan under his leadership took over the failing banks Bear Stearns and Washington Mutual, thereby throwing a lifeline to the troubled markets.
In the recent banking crisis in the United States, JPMorgan acquired most of the assets of the failed regional bank First Republic. The May acquisition added roughly $173 billion worth of loans to its balance sheet, helping its profits.
In the third quarter, it increased by 35 percent year-on-year to 13.15 billion dollars (308 billion CZK). Raising interest rates by the US central bank (Fed) boosted banks’ net interest income, the difference between what banks earn on loans and what they pay out on deposits. Net interest income, which is the bank’s main source of income, reached $22.9 billion in the three months to September 30.
“We recognize that these results benefit from strong net interest income as well as lower than normal credit costs that will normalize over time,” Jamie Dimon said in a statement. However, he warned that wars in Ukraine and the Middle East could have far-reaching consequences. “This is perhaps the most dangerous time the world has seen in decades,” said the 67-year-old banker.