Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co., spent $26.6 million to buy shares of his bank Thursday after they fallen to the lowest price in more than two years. The stock has fallen nearly 20 per cent this year, in line with the decline of the KBW Bank Stock index.
Dimon bought 500, 000 shares, bringing his total holding to to 7.79 million shares, worth US$413 million at yesterday’s closing price, according to a filing with the US Securities and Exchange Commission.
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He made the purchase because he believes the stock is cheap after a global rout in equities, Bloomberg citing a person with knowledge of his thinking .
JPMorgan, the largest U.S. lender by assets, said last month that its tangible book value, which is its net worth, was US$48.13 per share at the end of December.
JPMorgan shares have fallen as the outlook for bank profits has dimmed with expectations of continued low interest rates, higher costs for bad loans, particularly related to energy, and a slow economy.
The purchases were made through personal and family accounts, the filing showed.
Dimon’s share purchase was reported by the Wall Street Journal before the filing became public.
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