[ad_1]
- JPMorgan's chief executive, Jamie Dimon, hailed President Donald Trump's tax cuts in an annual letter to investors.
- The law has boosted profits by $ 3.7 billion. And the bank recorded a record profit "even without the impact of tax reform".
- JPMorgan also said it has bought back $ 55 billion in shares in 2018.
JPMorgan chief executive Jamie Dimon praised President Donald Trump's tax cuts in the bank's annual investor letter on Thursday, saying the law had helped boost profits by 3.7 percent. billions of dollars.
The letter described the bank's record revenue performance "even without the impact of tax reform".
JPMorgan achieved a record profit in 2018, posting a net profit of $ 32.5 billion and an impressive $ 111.5 billion in business, "reflecting the strong underlying performance of the company. all of our activities ".
Dimon added: "All other things being equal (which is not the case), the new, lower tax rates added $ 3.7 billion to net income."
"The new tax code establishes a corporate tax rate that will make the US competitive around the world and allow US companies to recoup foreign profits," Dimon writes in his letter. . "The cumulative effect of capital withheld and reinvested for many years in the United States will help build strong businesses and, ultimately, create jobs and raise wages."
The bank's fourth quarter was part of an unconventional earnings cycle for the sector, mainly due to late tax legislation that caused many banks to record losses on deferred tax badets of which the value has decreased.
Dimon also praised the Trump cuts in January.
"The promulgation of tax reform in the fourth quarter is a significant positive outcome for the country," Dimon said at the time.
Share buyback of 55 billion dollars
Over the last five years, JPMorgan has declared that it has repurchased $ 55 billion of shares, or approximately 660 million shares, representing approximately 20% of the outstanding common shares of the company.
Stock repurchases provoked negative reactions, while critics, including US presidential candidate Bernie Sanders, accuse companies of exploiting their tax benefits for shareholders rather than shareholders. employees.
Dimon acknowledged the criticism of redemptions, which he described as "unthinking". Business capital spending and R & D spending are also rising, he said, while "the benefit of tax reform is the cumulative long-term (multi-year) effect of capital." retained and reinvested ".
Investment in technology, wages
The gains from the law will be short-lived, said Dimon.
"In the long run, we anticipate that some or possibly most of this increase will be eliminated as companies compete for customers on products, capabilities and prices," he said. -he declares. "However, we have seized this opportunity in the short term to mbadively increase our investments in technology, new branches and bankers, wages," philanthropy and loans.
Source link
