I fat-fingered Dimon's name which made it perplexing how someone that didn't follow me, even if they searched for Dimon posts, found this post. But did Sam have a point? I have seen people coronated that don't have the receipts to justify the coronation. Did Dimon? I checked, but before I did I received this chart of support from my Minnesota banker friend @AndySchornack.
As with all images that may be too small, click on it to see a larger version.
Before Andy sent his chart of support for Jamie, I had run the numbers that are in the table below. I compared the largest US banks to JPM in multiple categories that are important to customers and shareholders of each company. There are different business models for sure, such as BNY which is more of a custody bank that would have an awful efficiency ratio and net interest margin, but has superior profitability. Or Capital One that is a credit card bank, lest you get nervous about their net charge-offs.
Sorry for the size of the table. I had a lot of ratios I wanted to compare. As with the last chart, please click on the above table to make larger. Lower numbers are better because I'm adding rankings, so a 1 ranking is better than a 10. I also assumed a higher leverage ratio was better, which is a subjective distinction.
JPMorgan Chase (JPM) demonstrates strong historical performance, ranking first in seven out of 14 data points I analyzed, including impressive 3-year and 5-year total returns. While BNY Mellon briefly surpassed JPM in 1-year performance, JPM's consistent leadership suggests a higher level of market credibility compared to peers like Citi.
This credibility is a significant advantage. When a bank like JPM makes strategic investments for future growth, or even when an investment doesn't pan out as expected, its established reputation and transparent communication allow it to execute long-term strategies more effectively. Without this inherent trust, short-term investments aimed at long-term benefits might not receive the desired positive reaction from investors. This highlights how credibility can act as a powerful tailwind, enabling a bank to navigate challenges and pursue its strategic vision with greater investor confidence.
In terms of being the industry guru, I don't want to suggest that JPMs experiences are similar to a community financial institution. Or his approach to work-from-home or opinions on politics are correct. But we can't ignore success and if someone wants to tell me what they learned on their road to success, I'm listening.
~ Jeff
