JPMorgan Chase & Co. unexpectedly raised its dividend 9.5% after record annual profits and as regulators signal they may rethink proposals to tighten capital rules.
The increase to $1.15 a share, announced Tuesday, marked the second time in the past 12 months that the largest U.S. bank has increased its quarterly payout. Over the past three years, the firm has distributed about $60 billion to shareholders in the form of dividends and share buybacks.
JPMorgan has been a vocal critic of U.S. regulators’ efforts to tighten capital requirements, believing the proposed rules could force it to hold on to about $50 billion more, roughly equal to its annual profit for 2023. Industry groups have mounted a fierce lobbying campaign against the plan, warning it will make them less competitive and increase borrowing costs.
Earlier this month, Federal Reserve Chairman Jerome Powell told lawmakers that regulators would likely change the plan significantly. While no decisions have been made yet, he said it is “very likely” they could scrap the existing proposal and put forward a new one.
JPMorgan, led by CEO Jamie Dimon, did not give a reason for the dividend increase in its statement. The firm increased its payout 5% to $1.05 per share for the third quarter.
By the close of U.S. markets on Tuesday, shares were up 14% this year to $193.79. The price was little changed in extended trading after the bank’s announcement at 6 p.m. in New York.