Does JPMorgan Chase & Co. (JPM) Need Their CEO? Yes.

Peer comparison

Despite the sheer amount of respect I have towards JPMorgan, I also believe investors should take a close look at Bank of America. The stock has a lot of upside potential as the CEO of Bank of America Corp (NYSE:BAC) is looking to cut down on expenses in non-performing business divisions. This should lead to a greater amount of net income in the future. The CEO of Bank of America Corp (NYSE:BAC), Brian Moynihan, believes that the bank can generate an additional $8 billion in net income through proper spending cuts. In its most recent quarter, the bank was also able to report a 233% increase in earnings. Analysts anticipate the bank to report 272% earnings growth for 2013.

Citigroup Inc (NYSE:C) reported a 30% increase in net income year-over-year in the first quarter of 2013. The company’s improvement in net income was driven by better revenue (revenue grew year-over-year by 6%) along with declining costs in its lending activities. The provision for credit losses and benefits and claims declined 16% year-over-year. Top-line growth, along with declining expenses in lending activities, is what led to Citigroup Inc (NYSE:C)’s strong quarter. Analysts anticipate the bank to grow earnings 14% on average over the next five years. The projected growth in earnings makes the 17.5 earnings multiple reasonable.

Conclusion

JPMorgan Chase & Co. (NYSE:JPM) has done a marvelous job of historically out-performing its peers. The diversified business, paired with strong management, has led to decent returns. Investors looking for deep value plays should consider taking a second glance at Bank of America or Citigroup.

Jamie Dimon, from a performance standpoint, has done well, well enough to merit a re-election as Chairman of JPMorgan Chase. If Jamie Dimon leaves the bank, it would probably be a great loss for shareholders

The article JPMorgan Needs Jamie Dimon originally appeared on Fool.com and is written by Alexander Cho.

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