S&P Global Ratings has upgraded JPMorgan Chase & Co. (JPM, Financial) to a long-term issuer credit rating of 'A' with a stable outlook. This decision reflects the bank's ability to withstand economic changes after years of competition for market share. The agency highlighted JPMorgan's diverse and consistent business strengths, positioning it among the top-rated banks globally.
Under the leadership of CEO Jamie Dimon, 68, JPMorgan reported a record profit in the history of U.S. banking last year. Analysts expect the bank to exceed this profit level by about 15% in 2024. S&P noted that JPMorgan is bolstering its balance sheet and investing in new technologies, laying the groundwork for future profitability and supporting risk management capabilities.
This year, JPMorgan's stock price has increased by 44%. The recent surge in stock value was partly due to investor optimism that a potential Trump administration might ease regulations, boosting bank profits. However, S&P clarified that this was not a factor in its decision to upgrade the rating.
S&P emphasized that U.S. regulatory frameworks remain a critical factor in its ratings for JPMorgan and other banks. The significant regulatory enhancements implemented since the global financial crisis are not expected to be substantially relaxed.
