Dimon’s comments on long-term threats came near the end of his company’s annual investor meeting. The bank can increase profit by 50 percent to $27 billion in four to five years as higher rates boost interest margins and legal costs subside, according to presentations posted yesterday.
The bank also said it would eliminate about 8,000 jobs in consumer and mortgage banking this year, while hiring in areas such as compliance and risk management. Dimon said he will stick with home lending, after calling mortgages “the most painful business ever.” The loans fill a key need for consumers, he said.
JPMorgan slipped 0.6 percent to $56.67 at 9:44 a.m. in New York after dropping 1.7 percent yesterday. It has gained 19 percent in the past 12 months, trailing the 24 percent advance of the Standard & Poor’s 500 Financials Index.
Trading revenue dropped about 15 percent so far this year compared with the same period in 2013, Dimon said yesterday. Lower levels of client activity, especially in fixed income, pressured results, the bank said.
JPMorgan’s earnings last year were marred by clashes with regulators and $23 billion in legal settlements that contributed to the bank’s first quarterly loss under Dimon. The CEO is selling or closing businesses he considers risky and dropping non-U.S. clients who may invite regulatory scrutiny. He’s fending off allegations the firm rigged markets and ignored suspicious activity by clients.
Yesterday’s meeting concluded on an upbeat note, with a song from English rock band Florence + the Machine.
“The dog days are over,” the lyrics blared from speakers. “The dog days are done.”