Dear Fellow Shareholders,
Across the globe, 2024 was yet another year of significant challenges, from the terrible ongoing war and violence in Ukraine and conflicts in the Middle East to ongoing terrorist activity and growing geopolitical tensions, importantly with China. Our hearts go out to those whose lives are profoundly affected by these events.
JPMorganChase, a company that historically has worked across borders and boundaries, will do its part to ensure that the global economy is safe and secure, but it is not immune to the effects of these events. Two things are absolutely foundational to the long-term success of JPMorganChase: one is whether we run a great company and two, which is maybe more important, is whether the long-term health of America, domestically, and the future of the free and democratic world are strong. In the first two sections of this letter, I deal with these critical issues. And in the third and fourth sections, I talk about specific issues unique to JPMorganChase and how we are addressing them, including constantly fighting complacency, arrogance and bureaucracy.
Despite the unsettling landscape, the U.S. economy, at least until recently, continued to be resilient, with consumers still spending (though with some recent weakening) and businesses still healthy. It is important to note that the economy has been fueled by large amounts of government deficit spending and past stimulus. There also remains a growing need for increased expenditure on infrastructure, the restructuring of global supply chains and the military, which may lead to stickier inflation and ultimately higher rates than markets currently expect. The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession. And even with the recent decline in market values, prices remain relatively high. These significant and somewhat unprecedented forces cause us to remain very cautious. There is much more detail on all of this in section three.
The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession.
2024 was another strong year for JPMorganChase, with our firm generating record revenue for the seventh consecutive year, as well as setting numerous records in each of our lines of business. We earned revenue in 2024 of $180.6 billion1 and net income of $58.5 billion, with return on tangible common equity (ROTCE) of 20%2, reflecting strong underlying performance across our businesses. We also increased our quarterly common dividend of $1.05 per share to $1.15 per share in the first quarter of 2024 – and again to $1.25 per share in the third quarter of 2024 – while continuing to reinforce our fortress balance sheet. We grew market share in several of our businesses and continued to make significant investments in products, people and technology while exercising strict risk disciplines.
Throughout the year, we demonstrated the power of our investment philosophy and guiding principles, as well as the value of being there for clients – as we always are – in both good times and bad times. The result was continued broad healthy growth across the firm. The charts below show our performance results and illustrate how we have grown our franchises, how we compare with our competitors and how we look at our fortress balance sheet. Please peruse them and the CEO and COO letters in this Annual Report, all of which provide specific details about our businesses and our plans for the future.
If America, for whatever reason, becomes a less attractive investment destination, the U.S. dollar and the economy could suffer if foreigners sold their U.S. assets,
In 2024, we continued to play a forceful and essential role in advancing economic growth. In total, we extended credit and raised capital totaling $2.8 trillion for our consumer and institutional clients around the world. On a daily basis, we move over $10 trillion in 120+ currencies and more than 160 countries, as well as safeguard over $35 trillion in assets. After we purchased and effectively fully integrated First Republic Bank, that bank failure disappeared as a negative issue for the U.S. economy. In addition to bringing much-needed stability to the U.S. banking system, we were able to give a new, secure home to approximately half a million First Republic customers.
Regarding the trade war, The quicker this issue is resolved, the better, because some of the negative effects increase cumulatively over time and would be hard to reverse.
While we have modified our approach to certain corporate responsibilities to conform to new guidance, we remain committed to reaching out to all communities in an effort to create a stronger, more inclusive economy – from supporting work skills training programs around the world and financing affordable housing and small businesses to making investments in our people and in cities like Detroit that show how business and government leaders can work together to solve problems. Almost all of these efforts are commercial in nature; i.e., “profit seeking” and are no different from what businesses, large and small, are trying to do in towns across America.
The longer-term worry is that Mr. Trump’s fight could shred decades-old alliances that cemented the United States’ primacy in the global order. America’s trading partners might seek out deals with the likes of China, Iran or Russia in response to the tariffs.
We have achieved our decades-long consistency by adhering to our key principles and strategies (see below sidebar on Steadfast Principles), which allow us to drive good organic growth and promote proper management of our capital (including dividends and stock buybacks).
America First is fine as long as it doesn’t end up being America alone.
I remain proud of our company’s resiliency and of what our hundreds of thousands of employees around the world have achieved, collectively and individually. Throughout these recent challenging years, we have never stopped doing all the things we should be doing to serve our clients and our communities. As you know, we are champions of banking’s essential role in a community – its potential for bringing people together, for enabling companies and individuals to attain their goals, and for being a source of strength in difficult times. I often remind our employees that the work we do matters and has impact. United by our principles and purpose, we help people and institutions finance and achieve their aspirations, lifting up individuals, homeowners, small businesses, larger corporations, schools, hospitals, cities and countries in all regions of the world. What we have accomplished in the 20+ years since the JPMorganChase and Bank One merger is evidence of the importance of our values.
ceo-letter-to-shareholders-2024To read the whole document, the controls for turning pages and zooming in or out are at the bottom left corner above.
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