Here’s how JPMorgan’s shares under Jamie Dimon have compared to other big banks

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JPMorgan Chase & Co. CEO Jamie Dimon took over the leadership role at the largest US bank in December 2005. It has been an excellent career for the bank’s investors, as you can see below. In his last letter to shareholders on April 7, Dimon wrote that, over the long term, JPM’s performance of JPMorgan Chase, + 0.62% of shares reflects the bank’s “progress”, which he defined as “a function of the ongoing investment in our people, systems and products, through good times and bad, to build our capabilities. ”

Those are good words, backed by an outperformance against the S&P 500 SPX Index, + 0.18% during his tenure. Check out these total returns for JPM and the index (both with reinvested dividends) for longer periods through April 6:

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Therefore, JPM has far exceeded the total return of the S&P 500 for five, 10 and 15 years. It has lagged for three years, but consider the remarkable run the index has had, led by fast-growing technology-oriented companies. It’s also worth noting that bank stocks tend to trade at a price-to-earnings ratio of around 60% to 70% of the P / E of the index. Read: US economy to boom in 2023, but inequality needs to be addressed: Jamie Dimon in latest letter to JPMorgan shareholders As of close April 6, forward P / E ratio for SPDR S&P 500 ETF Trust SPY, + 0.16% was 22.3, while the forward P / E for Invesco KBW Bank’s KBWB ETF, -0.05% was 13.4, according to FactSet. JPM’s leading P / E was 13.5. Therefore, bank stocks still appear to be on the cheap side, relative to the S&P 500. Bank earnings in the spotlight Bank earnings season begins April 14, when JPM, Wells Fargo & Co. WFC , -0.45% and Goldman Sachs Group Inc. GS, -0.53% report their first quarter results. Bank of America Corp. BAC, -0.16% and Citigroup Inc. C, -0.58% will report on April 15. Rounding out the top six US banks (When ranked by total assets), Morgan Stanley MS, -0.34% to report on April 16 Odeon Capital Group analyst Dick Bove advised clients in a note on April 6 “avoid making investment decisions based on first quarter results.” He expects that in the second half of 2021, “the economy will grow so rapidly that when we get to that period, bank profits will skyrocket.” It has “buy” ratings on the six major US banks listed above. How Big Bank Shares Have Fared Here is a ranking of the 15 largest banks in the US by asset size, with long-term total returns through April 6:

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For the definition of “bank”, we have included banking companies and savings holding companies. So Charles Schwab Corp. SCHW, -0.42% is on the list, even though securities brokerage is its main activity. Through its banking subsidiary, Schwab collects deposits and makes loans. Looking back at the 20, 15 and 10 year time frames, JPM has had the strongest total returns. For five years, Morgan Stanley has been the undisputed leader, followed by Bank of America, with JPM in third place. For three years, American Express Co. AXP, + 0.06% took the prize, followed by Morgan Stanley and then JPM. Don’t Miss: These stocks seem expensive now, but in two years you may wish you had bought them at these prices