JPMorgan: Earns More Than Ever And Its Capital Falls

The Sharpe Quest 531 Followers Follow Summary JPMorgan Chase remains a Buy, with capital being redeployed into high-return businesses rather than expensive share repurchases. JPM reported a strong quarter, with ROTCE at 23% (ex-extraordinary items), tangible book value per share up 10%, and robust capital allocation. Management is prioritizing business growth over buybacks, anticipating higher regulatory capital requirements by 2028 and deploying excess capital at 17%+ returns. Key risks include potential deposit cost increases, normalization of the Markets segment returns, and multiple compression if ROTCE moderates. LewisTsePuiLung/iStock Editorial via Getty Images In my previous article on JPMorgan Chase ( JPM ), I explained that, for me, the stock was a Buy even with problems figuring out where to deploy everything it was earning efficiently, it was repurchasing shares This article was written by The Sharpe Quest 531 Followers Follow My approach mixes long-term conviction holdings with tactical sector rotations, driven by the belief that investing isn’t about being right, it’s about making money. I focus on undercovered opportunities and momentum-driven sectors. All views are my own and not financial advice. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.