JPMorgan Chase unexpectedly lifted its dividend 9.5 per cent in the wake of a record annual profit and as regulators signal they may rethink proposals for tightening capital rules.

The increase to US$1.15 a share, announced in a statement on March 19, marked the second time in the past 12 months that the biggest US bank boosted its quarterly payout. The firm has sent about US$60 billion to shareholders through dividends and stock buybacks over the past three years.

JPMorgan has been an outspoken critic of a US regulatory effort to ratchet up capital requirements, estimating that proposed rules could force it to hold about US$50 billion more – roughly equal to its annual profit for 2023. Industry groups have waged a fierce lobbying campaign against the plan, warning it will make them less competitive and drive up lending costs. 

Earlier in March, Federal Reserve chair Jerome Powell told lawmakers that regulators are likely to significantly change that plan. While decisions had yet to be made, he said it was “very plausible” they could scrap an existing proposal and put forth a new one.

JPMorgan, led by chief executive Jamie Dimon, did not provide a reason for the dividend increase in its statement. The firm had raised the payout by 5 per cent to US$1.05 a share for the third quarter.

The stock climbed 14 per cent in 2024 to US$193.79 by the close of US markets on March 19. The price was little changed in extended trading after the bank’s announcement as at 6pm in New York. BLOOMBERG