NEW YORK — JPMorgan Chase & Co. pleased investors Friday with news that it will raise its dividend soon, pending approval from the Federal Reserve. The bank also reported that its income jumped 47 percent in the final three months of 2010 as fewer customers defaulted on loans.
The Fed has asked top U.S. banks to send detailed reports on their finances as part of the central bank’s annual assessment of their health. The Fed is expected to complete its study of those plans by March, when it could give permission to some banks to raise their dividends.
Most U.S. banks slashed their dividends during the financial crisis in order to conserve cash. After almost two years of solid profits and building up capital, banks like JPMorgan are ready to resume paying the larger dividends that investors are accustomed to. JPMorgan’s chief executive Jamie Dimon has suggested that the bank could raise its annual dividend from 20 cents per share to as much as $1 if the Fed allows.
The New York bank earned $4.83 billion, or $1.12 per share, as the company set aside less money to cover loan losses. That compares with $3.28 billion, or 74 cents a share, during the same quarter last year. Analysts surveyed by FactSet forecast the bank would earn $1 per share.
