NEW YORK (
disclosed Tuesday its quarterly losses from home equity loans could reach $1.4 billion over the next several quarters, according to presentation materials posted on the company's Web site.
The materials go along with CEO Jamie Dimon's appearance Tuesday afternoon at the Goldman Sachs U.S. Financial Services Conference.
For prime and subprime mortgages, JPMorgan expects quarterly losses to reach $600 million and $500 million, respectively, over the next several quarters. The company's commentary on the loan situation was cautious.
"Some initial signs of stability in consumer delinquency trends, but we are not certain if this trend will continue," the materials stated.
The company also provided details on its plans to eventually raise its dividend, saying it wouldn't make this move until it's "clear the recession has ended," and that it would expect to initially go with an annual payout of 75 cents to $1 per share. The target would be for a "30-40% dividend payout ratio of normalized earnings over time," according to the presentation.
In addition, JPMorgan outlined its retail banking expansion plans, saying it added 120 new branches in 2009, and that it expects to add another 120 or more branches in 2010. It anticipates hiring 1,200 new branch-based loan officers by the end of 2010. More hiring is planned for the commercial banking business as well, with JPMorgan saying it will add 100 or more middle-market bankers over the next several years.
Small businesses lending will get a boost in the coming year, according to the presentation, as JPMorgan said it would increase its loans in this area by $4 billion in 2010, and add 325 small business bankers to staff.
According to a
report, Dimon told the audience that he expects big banks will likely be forced to hold more capital, and that the dividend increase discussed in the materials is unlikely until the second quarter of fiscal 2010.
The stock was off 14 cents to $41.11 in late afternoon action.
Written by Michael Baron in New York.