ending statement in cover letter

How to Close a Cover Letter: 60 Examples of Strong Closing Statements

By Status.net Editorial Team on December 12, 2023 — 16 minutes to read

A strong cover letter closing is essential in making a great impression and reinforcing your enthusiasm for the job opportunity. It provides a final opportunity to emphasize your relevant skills, experiences, and personal attributes that make you an ideal candidate. A compelling closing also encourages the employer to take action, such as inviting you for an interview. Consider these examples:

• Thank you for considering my application. I am looking forward to the opportunity to contribute my skills and experiences in this exciting role.
• I am eager to discuss how my background aligns with your team’s goals and how I can contribute to your company’s growth.
• I am confident that my expertise in social media marketing makes me well-suited for this position, and I appreciate your time and consideration.

Positive Impact on Employers

Your cover letter closing is crucial, as it leaves a lasting impression on the employer and influences their perception of you as a candidate. A positive and engaging closing helps you stand out among other applicants and increases your chances of being selected for an interview. Here are a few key points that can create a positive impact:

• Express gratitude : Show appreciation for the time the employer has spent reading your cover letter, and thank them for considering your application.
• Be enthusiastic : Reiterate your excitement about the job opportunity and the prospect of joining their team.
• Include a call to action : Encourage further engagement, like scheduling an interview or discussing your qualifications in more detail.

For example:

Thank you for taking the time to review my application. I am highly enthusiastic about joining your team and discussing my potential contributions to your ongoing projects. Please don’t hesitate to reach out to me at your earliest convenience.

Crafting Your Final Paragraph

Summarizing your enthusiasm.

To leave a lasting impression, summarize your enthusiasm for the role in your closing paragraph. Highlight your excitement about the opportunity and express gratitude for the potential connection with the company. For instance:

I’m thrilled about the prospect of joining the (…) team and contributing my marketing skills to drive innovative campaigns. Thank you for considering my application.

Reaffirming Your Best Fit for the Role

Before signing off, reinforce why you’re the perfect candidate for the position. Briefly recap your relevant experience, skills, or accomplishments that set you apart. Be concise yet confident in your message. For example:

With my five years of experience in international sales and my proven ability to develop long-term client relationships, I am confident in my ability to excel as your next Sales Manager.

Choosing the Right Sign-Off

Professional sign-off options.

Selecting the appropriate closing for your cover letter can leave a lasting impression. Here are some professional sign-off options to consider:

• Sincerely : This classic sign-off is appropriate for most scenarios and conveys professionalism.
• Best regards : A versatile and slightly more casual option, ideal for a variety of industries.
• Kind regards : This friendly sign-off is suitable when you have developed a rapport with the receiver, like the hiring manager.

You can also try other options such as Yours truly , Respectfully , or Yours faithfully , depending on your preference and the nature of the job you are applying for.

Matching the Company Culture

Try to tailor your sign-off to match the company culture. Researching the company’s website, social media, or reviewing employee testimonials can help you get a better understanding of the company culture. For example:

• Innovative or creative industries : Feel free to express yourself with a casual yet professional closing, like Warm Regards or Cheers .
• Traditional or formal industries : Stick to more formal options such as Sincerely or Best Regards .

Incorporating a Call to Action

Proposing the next steps.

A well-crafted cover letter should inspire the reader to take the next step. This could include scheduling an interview, discussing your application further, or even simply reviewing your attached resume. To encourage this action, incorporate a call to action (CTA) at the end of your cover letter that guides the hiring manager.

Some examples of CTAs in the context of cover letters include:

• Schedule a meeting : “I’m excited about the opportunity to discuss my experiences and how they align with the [job title] position. Let’s set up a time to chat!”
• Ask for a callback : “I’d be thrilled to further discuss my application and the value I bring to the table. Give me a call at your earliest convenience to chat more.”
• Direct them to your portfolio : “I’d love to showcase my recent work, which you can find at [website link]. Let’s discuss how my skillset aligns with the [job title] role.”

Remember to tailor these examples to your specific application and the company to which you’re applying.

60 Examples of Strong Closing Statements For a Cover Letter

• 1. This position seems like a perfect match for my experience, passions, and career aspirations. I would love to bring my skills and expertise to your organization.
• 2. I am confident that I can make an immediate and positive impact if given the opportunity to join your team. I look forward to discussing how I can contribute to your organization’s success.
• 3. My background and capabilities align well with the responsibilities of this role. I am excited by the prospect of applying my experience to this position.
• 4. I am enthusiastic about the chance to join your organization. Please contact me to further discuss my qualifications and how I can add value.
• 5. I would welcome the opportunity to showcase my abilities and help drive growth and innovation through this position. I am eager to learn more.
• 6. With my skills and experience, I am prepared to excel in this role and hit the ground running. I look forward to speaking with you.
• 7. I am confident I would thrive in this position. I am eager to bring my skills, passion, and drive to your dynamic team.
• 8. I believe I am an excellent fit for this opportunity and am excited by the prospect of contributing my talents to your organization. I welcome the chance to speak with you further.
• 9. My experience aligns well with the responsibilities of this exciting role. I am enthusiastic about the opportunity to apply my skills to benefit your organization.
• 10. I am excited by the chance to join your team. I look forward to further discussion.
• 11. I am confident that I possess the necessary qualifications for this role and would excel if given the opportunity.
• 12. With my background and passion, I am prepared to hit the ground running and make an immediate impact through this position. I would love to join your team.
• 13. I am eager to apply my expertise to help drive success and innovation for your organization. Please contact me to arrange a time to talk.
• 14. My experience has fully prepared me to excel in this role. I am excited by the prospect of bringing my skills to your dynamic organization.
• 15. I am enthusiastic about this opportunity and the chance to contribute to your company’s continued growth and innovation. I look forward to elaborating on my qualifications.
• 16. I am confident I can perform exceptionally well in this position. I am excited by the prospect of joining your team and organization.
• 17. With my proven track record, I am prepared to dive in and deliver results through this role. I would be thrilled to join your organization.
• 18. I am eager to join an organization where I can utilize my expertise to create meaningful impact. This role seems like an excellent fit.
• 19. I am excited by the prospect of joining your innovative company. My skills would enable me to contribute to your team’s success right away.
• 20. I am confident my background makes me a competitive applicant for this opportunity. I am excited to further discuss my qualifications with you.
• 21. With my experience and passion, I know I would thrive in this position. I hope to have the chance to join your talented team.
• 22. I am enthusiastic about the prospect of bringing my skills and experience to your dynamic organization.
• 23. I am eager to apply my expertise to help drive innovation and success in this role. I would be thrilled to join your team.
• 24. I am confident my abilities make me a strong candidate for this opportunity. I am excited by the chance to contribute to your company’s growth.
• 25. I believe I possess the necessary skills, experience, and drive to excel in this position.
• 26. With my background, I am prepared to dive in, roll up my sleeves, and immediately begin adding value in this role. I am excited by this opportunity.
• 27. I am enthusiastic about the prospect of joining your team. I am confident my experience would allow me to thrive in this position.
• 28. I would welcome the opportunity to join your organization and collaborate with your talented team in this role. Please contact me to further discuss my qualifications.
• 29. I am excited by the chance to apply my skills and experience to help drive innovation and success for your company. I hope to speak with you soon.
• 30. I am eager to bring passion, expertise, and a strong work ethic to this position. I am confident I would excel on your team. I look forward to further discussing how I can contribute to your organization’s success.
• 31. I am confident that I have the necessary qualifications to excel in this role, and I am excited by the prospect of contributing my skills to your organization. I look forward to discussing this opportunity further.
• 32. With my experience and capabilities, I know I would be a great asset to your team through this position. I am eager to bring my passion and expertise to your dynamic organization.
• 33. I am enthusiastic about the chance to apply my background in a way that drives meaningful impact and innovation. This role seems like an ideal fit for my skills.
• 34. I am eager to join your organization and collaborate with your talented team to deliver exceptional results.
• 35. I am prepared to hit the ground running and make immediate contributions in this role. My experience aligns well with the responsibilities, and I am excited by the prospect of joining your company.
• 36. I am confident that I possess the ideal qualifications for this opportunity. I would love to join your organization and contribute my skills to help drive future success.
• 37. With my proven track record and expertise, I am prepared to dive in and immediately begin adding value through this position. I am excited by this opportunity and welcome further discussion.
• 38. My background and capabilities make me confident that I can perform exceptionally well in this role.
• 39. I am eager to apply my skills in a high-impact position with a respected organization like yours. I am confident I would thrive on your team. Please contact me to arrange a meeting.
• 40. I believe this role is an excellent match for my qualifications. I am excited by the opportunity to contribute my experience and talents to your innovative company.
• 41. I am confident that my background has prepared me well to excel in this position. I would be thrilled to join your talented team and organization.
• 42. With my passion, expertise, and proven ability to deliver results, I am prepared to dive in and immediately begin driving value through this role. I am excited by this opportunity and look forward to further discussion.
• 43. I am enthusiastic about the prospect of applying my skills in a challenging and rewarding position at your respected company. I am eager to learn more about this opportunity.
• 44. I am excited by the chance to join your dynamic team. My experience has fully prepared me to thrive in this position and help drive your organization’s continued success.
• 45. I am confident I possess the ideal qualifications for this opportunity. I would welcome the chance to join your team and contribute to future growth and innovation.
• 46. With my background and capabilities, I am prepared to excel in this role. I am enthusiastic about the prospect of applying my experience to benefit your organization. I look forward to speaking with you.
• 47. I am eager to utilize my expertise. Please contact me to arrange a meeting to discuss my qualifications.
• 48. I am excited by the prospect of joining your team. I am confident my skills and experience make me a competitive applicant for this opportunity. I look forward to further discussion.
• 49. This role seems like an excellent match for my background. I am enthusiastic about the opportunity to contribute to your organization’s success and future growth.
• 50. I am confident I possess the necessary experience and qualifications to excel in this position. I would be thrilled to join your talented team. I look forward to speaking with you.
• 51. I am excited by this opportunity and welcome the chance to further discuss my qualifications.
• 52. I am eager to apply my expertise in a challenging role that enables me to create meaningful impact. I am confident I would thrive in this position on your team.
• 53. I believe I am an excellent fit for this opportunity. I would be honored to join your organization and collaborate with your talented team. I look forward to further discussion.
• 54. I am enthusiastic about the prospect of contributing my experience to help drive innovation and continued success. I am excited by this opportunity and confident in my ability to excel.
• 55. Thank you for reviewing my application. I am eager to bring my background and capabilities to this exciting role on your team. I am confident I can perform exceptionally well if given the opportunity. I look forward to speaking with you.
• 56. With my proven skills and expertise aligned with this position’s responsibilities, I am prepared to dive in and immediately begin adding value to your organization.
• 57. I am confident that my experience, capabilities and passion for excellence would allow me to thrive in this role. I would welcome the opportunity to join your respected organization and am eager to further discuss my qualifications.
• 58. I am excited by the prospect of utilizing my background to help drive innovation and success in this position. I am confident in my ability to excel on your team and look forward to learning more.
• 59. I believe I am an excellent candidate for this opportunity. I am enthusiastic about applying my experience to contribute to the continued growth and success of your esteemed organization.
• 60. With my proven track record and expertise, I know I would thrive in this role. I am eager to bring my skills and passion to your dynamic team. Thank you for your consideration – I look forward to discussing this opportunity further.

When choosing a closing statement, make sure it matches the overall tone of your cover letter and reflects your personality. Also, take into consideration the company culture and position you’re applying for.

Examples of Effective Cover Letter Closings

Formal closings.

• Respectfully,
• Yours faithfully,
• Kind regards,
• Best regards,
• Yours sincerely,
• Yours truly,

Semi-Formal Closings

• Warm regards,
• Best wishes,
• With appreciation,
• Looking forward to your response,
• Yours in professional success,
• Many thanks,
• Thank you for your consideration,
• Eager for the opportunity to connect,

Casual Closings

• Have a great day,
• All the best,
• Thanks so much,
• Excited to chat soon,
• Grateful for your time.

Polishing Your Cover Letter Ending

Proofreading for errors.

Don’t underestimate the power of a well-proofread cover letter. Before sending it off, give it a thorough read-through, and look closely for any grammar, spelling, or punctuation errors. Consider using a grammar tool to help catch mistakes you might have missed. Also, ask a friend, family member, or even a professional to review your cover letter. Their fresh perspective can provide valuable insights and catch anything you might have overlooked.

Ensuring Consistency with Your Resume

To make your application seamless, double-check your cover letter and resume to ensure consistency. Pay special attention to details such as job titles, dates, and company names, as inconsistencies can raise concerns from potential employers. It’s also a good idea to match the formatting and fonts across both documents to give your application a polished and cohesive look. Make sure the skills and experiences you highlight in your cover letter are complementary to those mentioned in your resume, so they work together to make a strong case for your candidacy.

Sending Your Cover Letter

Email versus hard copy.

When sending your cover letter, you’ll usually have two options: email or hard copy. Each has its benefits and considerations:

• More convenient and faster
• Allows for easy tracking and organization
• Often preferred by employers
• Be sure to use professional language and an appropriate subject line
• Formal option, which may be required for certain industries or applications
• Neatly print and sign your cover letter
• Use quality paper and a matching envelope

It’s crucial to consider the preferences of the employer when deciding which method to use. If they haven’t specified a preference, feel free to choose the one that makes the most sense for you.

Following Submission Guidelines

No matter how well-written your cover letter is, failing to follow submission guidelines can hurt your chances of being considered for the position. Pay close attention to these key details when preparing your cover letter:

• Deadline: Be punctual in submitting your application – submit on time or even earlier.
• Formatting requirements: Follow any formatting requirements mentioned explicitly, such as font type, font size, and margins.
• File format: Save and send your cover letter in the requested file format, like PDF or Word Document (.docx).
• Contact information: Don’t forget to include your up-to-date contact information, such as your email address and phone number.

Frequently Asked Questions

What are some strong closing statements for a cover letter that stand out to employers.

A strong closing statement should reiterate your enthusiasm for the position and demonstrate your confidence in your qualifications. Here are some examples:

• “I’m excited about the opportunity to contribute my skills and experience to your team and look forward to discussing my qualifications further.”
• “Thank you for considering my application. I believe my expertise aligns well with the role, and I am eager to contribute to the success of your organization.”
• “I’m confident that my skills make me an ideal candidate for the position, and I’m eager to discuss how I can add value to your company.”

What’s the best way to format the closing section of my cover letter?

To format the closing section of your cover letter, you should:

• Leave a space between the last paragraph and your closing.
• Use a closing phrase like “Sincerely” or “Kind regards.”
• Add your full name and contact information, such as email address and phone number.
• If applicable, include any relevant links, such as your LinkedIn profile or online portfolio.
• Leave a space between your closing phrase and your name so you can add a digital or printed signature.

Should I use ‘Kind regards’ or ‘Yours sincerely’ to finish off my cover letter?

Both ‘Kind regards’ and ‘Yours sincerely’ are acceptable and professional ways to end a cover letter. You can choose which one you feel most comfortable with or suits your individual style. In general, ‘Kind regards’ is a safe and widely used option, while ‘Yours sincerely’ is considered a bit more formal.

How can you make a cover letter feel personal and engaging without being too casual?

To make your cover letter personal and engaging, try these tips:

• Address the recipient by name, if possible, to create a connection.
• Start your cover letter by mentioning a specific detail about the company or role to show you’ve done your research.
• Share anecdotes from your experience that directly relate to the requirements of the job and showcase your unique qualities.
• Focus on the value you can bring to the company, rather than just listing your qualifications.
• Resume vs. Cover Letter (Thoughtful Tips)
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How to End a Cover Letter: 5 Ways, With Examples

You know how to start a cover letter , but just when you think you’ve got it in hand, you reach the final stretch: the closing paragraph. This is the moment where your message needs to be confident and professional but also memorable and proactive—i.e., you need to leave a lasting impression and request an interview. Your cover letter might be the only thing a recruiter reads before making a decision, which can feel intimidating.

The end of your cover letter should include a thank-you, a call to action, and a reiteration of why you’re the best fit for the job. In this guide, we’ll tackle a critical aspect of cover letter writing: how to end it with authority and enthusiasm. We’ll explore what a cover letter should include, cover letter endings you can try, and examples of cover letter endings.

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What is a cover letter?

A cover letter is a formal document submitted with a job application and résumé . A cover letter should make a case for why an applicant is a good fit for the role, and it can be more detailed and personalized than a résumé. A cover letter includes an applicant’s interest in a specific job and their qualifications, skills, and relevant experiences.

The end of a cover letter also includes a call to action, a polite and enthusiastic expression of an applicant’s interest in an interview. It’s the job seeker’s last chance to make an impression on the employer and persuade them to move forward with the application.

What should you include in the final paragraph of a cover letter?

The final paragraph of your cover letter should be about three to five sentences long. Here are the three main things to include.

Enthusiastic statement

Reiterate what you admire about the company. Then, using different words, explain briefly why you think you’re a good fit and how you would contribute to the mission or goals of the team or organization you’re applying to.

Call to action

Next, politely and proactively ask for the next step in the hiring process, which is usually an interview. You can say something like this: “I would welcome the opportunity to discuss my qualifications further in an interview.”

Express gratitude for the employer’s time and consideration. A simple “Thank you for considering my application” usually works well.

5 ways to end a cover letter

Here are five compelling ways to end a cover letter .

1 Excitement

“I am eager to learn more about this opportunity and discuss why I am a great fit for [Company Name].”

“I believe this is a position where I can develop my passion for [industry/skill] while contributing to the team.”

3 Enthusiasm

“If offered the position, I will be ready to hit the ground running and help [business] meet its goals and milestones for success.”

“I would appreciate the opportunity to meet with you to discuss how my qualifications could benefit your organization’s strategy and long-term vision, as well as the daily operations that contribute to [organization’s] business model.”

5 Follow up

“I will call next Tuesday to follow up on my application and answer any further questions you may have.”

Examples of how to end a cover letter

Need inspiration for how to close your cover letter? Here are four examples of these cover letter endings in action.

Software engineer cover letter ending example

I am enthusiastic about the prospect of joining your company. I believe my background as a scrum manager and experience with your unique tech stack align perfectly with the company’s mission to optimize and expand enterprise applications. I welcome the opportunity to discuss my qualifications further in an interview and explore how my skills can benefit your team. Thank you for considering my application, and I hope to collaborate with your talented team soon.

Teacher cover letter ending example

I am eager to join the Middle School team as my passion for education in chemistry and biology aligns with your goal of fostering the growth of girls in STEM fields. I look forward to discussing how my qualifications can contribute to the continued success of Middle School, and I would appreciate the chance to explore this further in an interview. Thank you for considering my application, and I hope to hear from you soon.

Nurse cover letter ending example

I am excited about the prospect of becoming part of the Clinic team. I admire the Clinic’s prioritization of patients and care for its employees. I believe that my dedication to patient care and my experience in a cardiac surgery unit make me a natural fit for your organization. I am eager to discuss how my qualifications can enhance and support the ongoing achievements of the Clinic, and I look forward to discussing this further in an interview. Thank you for considering my application, and I appreciate the time you’ve taken to review my credentials.

Editor cover letter example

Joining your Reviews team is a prospect I’m keen on. With my marketing experience and background in SEO analytics, I’ll be ready to grow organic traffic to your blog from day one. I’d love the opportunity to discuss my plan to contribute to the growth of the Reviews blog in an interview. Thank you for your time and consideration. To facilitate our discussion, I plan to follow up on my application next week and arrange an interview.

How to end a cover letter FAQs

A cover letter is a formal document that accompanies a job application. It introduces the applicant to the employer, expresses their interest in the job, and highlights their qualifications and experiences to strengthen their candidacy.

Why is the ending of a cover letter important?

The ending of a cover letter is crucial because it’s your last opportunity to leave a strong impression on the employer. It’s also a way to encourage them to set up an interview with you, making you more likely to get hired.

What should the last paragraph of a cover letter include?

The last paragraph of a cover letter should include a call to action, expressing your interest in an interview, and a note of gratitude to the employer for their time and consideration. It should leave a positive final impression and encourage the next steps in the hiring process.

How to End a Cover Letter [w/ 4 Examples]

How you end your cover letter is an important part of the process. 

You’ve managed to make a good impression with your cover letter and now you want to “exit” on a good note with an equally impactful conclusion. 

This is where this article comes in.

We’ll show you how to end your cover letter effectively and leave the right impression on the recruiter reading it!

• 6 Ways to end a cover letter for a job (with examples) 
• Ways NOT to end a cover letter
• How to sign off a cover letter
• Signature lines NOT to use 

New to cover letter writing? Give our resumes 101 video a watch before diving into the article!

6 Ways to End a Cover Letter for a Job (With Examples)

Your cover letter ending consists of your closing paragraph and your signature line.

As your official “parting” from the recruiter, your closing paragraph should be an on-point summary of your cover letter’s highlights and a chance to reaffirm your strong points.

To guide you in the right direction, we’ve put together our favorite tips on how to end a cover letter effectively. 

So, let’s see what they’re all about!

#1: Show Confidence 

First things first—make sure you end your cover letter on a confident note. 

All your skills, qualifications, and strengths will lose a bit of their value if you don’t confidently show the recruiter that you can apply them to the company’s benefit. 

Say, you mentioned a bunch of noteworthy achievements and skills as you were writing your cover letter . Your cover letter ending is your chance to confidently reiterate them.

For example, you might have mentioned in your cover letter how you helped your previous company exceed its sales target by 30%. That’s an achievement you can use to conclude your cover letter confidently.  

For example:

I believe my ability to generate sales and drive results will be a significant contribution to your company’s goals and KPIs. 

#2: Sum Up Your Skills (For the Position)

Another way to effectively end your cover letter is to sum up your top skills. 

More specifically, sum up exactly how your skills will bring value to the team or company, or how they are relevant to the position you are applying for.

Here’s an example of how you can do this:

To conclude, I can confidently say that my 5 years of experience as a researcher have made me detail-oriented, patient, and able to connect smaller pieces of information to see the bigger picture. I believe these skills will be of use in this position. 

#3: Be Enthusiastic

You may be highly qualified and justifiably confident in your skills, but employers also want to see that you will be a motivated and engaged employee. 

So, make sure to express your enthusiasm! This will show that you care about this job and that you will put passion and energy into your work if you’re hired. 

Employees who are enthusiastic about their work are also far more likely to stay on board long term, which means that you’ve got more chances to get (and stay) hired! It’s no wonder that 71% of executives say that employee engagement is critical to their company’s success .

As such, sometimes, the deciding difference between two equally qualified candidates is just their level of interest and enthusiasm for the position.

Being able to apply all of my skills and previous experience to this project is an ideal and exciting opportunity for me. 

#4: State Your Goals and Set Expectations 

Another great way to end your cover letter is by stating your professional goals and giving the recruiter a general idea of what they should expect from you as a potential employee.

This will show that you are proactive and that you have clear objectives for your career.

Keep in mind though—when stating your goals and expectations, focus on mentioning how you’ll contribute to the company and benefit the employer, not just the other way around. 

And remember—what can set you apart from other candidates is expressing exactly what connects you to the company (other than just wanting to be hired). This can make your claims more believable and attract recruiters more easily.

Here’s an example of how you can make that work:

My goal is to be counted among the top professionals in the field, not only due to my skills but also because of my appetite for innovation. Your company’s mission to innovate some basic aspects of our daily lives is an inspiration for my work and I’d be happy to contribute my skills to achieve this common mission.

#5: Don’t Forget to Say “Thank You” 

Don’t forget to end the letter with gratitude. 

After all, recruiters go through countless applications daily, so just the fact that they took the time to read yours is enough of a reason to be thankful. 

Because it is expected that you will say “thank you” (and would be considered rude if you don’t), genuine gratitude is what will make you instantly more likable and win you extra points. 

Thank you for taking the time to review my application. I truly appreciate your consideration and hope to have the chance to prove through my dedicated work for your company.

#6. Keep It Professional 

This last piece of advice is quite simple. Keep your cover letter professional. You’ll have plenty of chances to express the more fun side of your character. 

There will be plenty of time to express your more “casual” side once you’re hired. At this stage, though, employers want to see that you are professional, reliable, and serious about your work. 

So, it’s better to use academic language and a clean, simple style. 

Liked the tips we covered in this article? There’s more where that came from! Check out our complete guide with the top 21 cover letter tips .

Ways NOT to End a Cover Letter 

And now that we covered the best ways to end your cover letter, let’s go over what you should NOT do when you’re writing your cover letter ending.  

• Do not appear desperate for the job. There is a fine line between expressing enthusiasm and being desperate. If you step over that line, you might blow your chances at getting a callback.
• Don’t be cocky and entitled. Avoid rhetoric that implies that the company would be foolish not to hire you and avoid speaking as though you’ve already been hired.
• Do not use overly familiar language or slang. That is unless you are working in the comedy industry.
• Don’t forget to proofread. Forgetting to proofread your cover letter (including the ending) is a big no-no. Typos and grammar mistakes can come across as unprofessional, so make sure to double-check for mistakes or use software like Grammarly .
• Don’t be sloppy! Pay attention to how you structure your closing paragraph just as much as the rest of your cover letter. This is the last thing the recruiters will read and it is what they will remember from the cover letter.
• Do not skip the closing! Not including a final paragraph in a cover letter is a huge mistake. This is your opportunity to summarize your strong points, enthusiasm, and gratitude memorably.

Want to know what mistakes you should avoid when you’re writing your cover letter? Our guide on cover letter mistakes has all you need to know.

How to Sign Off a Cover Letter 

Signing off your cover letter is a pretty straightforward task. All you have to do is use a signature line, followed by your full name. Something like this: 

And since “sincerely” has become overused, consider these signature lines to use instead: 

• Kind regards,
• With best regards,
• Most sincerely,
• Respectfully yours,
• Best regards,
• Respectfully,
• Thank you for your consideration,

Signature lines not to use

You probably know better than to use any of the signature lines below, but we thought to go over them just in case. So, whatever you do, refrain from using any of the following: 

• Warm Regards
• Yours Truly
• Have a wonderful day
• Affectionately

Do I Sign a Cover Letter? 

Whether you should sign a cover letter depends on how you are sending your cover letter. 

Nowadays, most cover letters are sent electronically. If that’s the case with you, there is no need to add an electronic signature. 

Simply add your full name at the end of the cover letter, using the same font as the rest of your letter. 

If you are sending a good old-fashioned printed cover letter, on the other hand, include the same details and add your signature underneath your name. 

Having a matching resume and cover letter is a great way to make a good impression on the hiring manager! We make that super easy for you - just pick one of our matching pairs of resume & cover letter templates and start writing yours!

Key Takeaways 

How you end your cover letter is extremely important. If you manage to get it right, your application will make an impression and most surely earn you a callback.

To make sure you got it right, let’s go over the main points we covered in this article: 

• Your cover letter ending should contain a captivating closing paragraph and a signature line.
• To write a good closing paragraph, do some of the following: convey enthusiasm, recap your skills and qualifications, show gratitude, and state your goals and expectations.
• Things NOT to do when you’re writing your cover letter ending are: appearing cocky, being sloppy, forgetting to proofread, and ignoring the ending altogether.
• Signature lines to consider in addition to sincerely are: kind regards, respectfully, and most sincerely.

Related Readings:

• Do I Need A Cover Letter in 2024
• Entry-level Cover Letter
• Cover Letter for Internship

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How to End a Cover Letter: 7 Easy Ways to End on a High Note

In this guide, you’ll learn how to end a cover letter as well as 7 different ways to write a closing paragraph that leads to an interview.

First, express your gratitude by thanking the reader for their time. 

Second, mention how you’d like to proceed or how you’re looking forward to taking the next steps. 

Lastly, sign off with a closing salutation followed by your name. 

Those are the steps required to close your cover letter on a high note. However, a closing paragraph to complement these steps would be ideal for leaving the hiring manager with a strong lasting impression. 

How to End a Cover Letter: 3 Things to Include

The end of your cover letter should be professional , courteous, and convey your enthusiasm for the position, which is achieved by using closing statements like "Sincerely", "Yours truly", "Best regards", and "Thank you for your time".

Ending a cover letter is an important part of the document, as it leaves a final impression on the reader and can influence their decision to consider your application. The three steps in creating closing statements for cover letters include:

• Acknowledging the reader
• Imply the next steps
• Signing off

Acknowledge the Reader

Acknowledge the reader by expressing your gratitude. Thank them for their time and consideration. If you’d even prefer, this can be the only cover letter closing line you need to end your application.

Here’s a few example phrases: ‍

• Thank you for your time and consideration • Thank you for reviewing my application • I am grateful for the opportunity to contribute to your organization • Thank you for your time

Imply the Next Steps 

In other words, a call to action. This can either be direct or implicit. Let the reader know how you’re prepared to move forward in the job application process.

Here’s a few examples of a direct call to action:

• I look forward to discussing this position further with you • I am excited to discuss my qualifications in greater detail at an interview • You can reach me by phone at (XYZ) or by email at [email protected]

And here’s a few examples of an implicit call to action:

• I look forward to hearing from you • I look forward to speaking with you soon • I hope to discuss my eligibility for the role further 

Directly stating the next steps works best if you’ve already spoken with the hiring manager. Or if not and you want to be more on the safe side, implying the next steps also works. 

Write a formal closing followed by your first name and last name. This is also known as the cover letter closing salutation. 

Here’s a few professional sign-off examples: 

Sincerely, Jacob Jacquet

Yours sincerely, Jacob Jacquet

Kind regards, Jacob Jacquet

Here’s a few inappropriate sign-offs for making your exit: 

Thanks, Jacob Jacquet

Cheers, Jacob Jacquet

7 Ways to Write the Cover Letter Closing Paragraph

There are 7 different types of closing paragraphs. Use the one that fits best with how you initially outlined your application . Additionally, check out our cover letter examples guide for inspiration based on successful cover letters at competitive job postings. 

1. Thank the Reader and Imply the Next Steps

Sometimes, no extra words are needed since everything has already been mentioned in the opening paragraph and main body of your cover letter . Therefore, simply end your cover letter in one line. 

See the example below. 

Thank you for your time and consideration. I look forward to hearing from you.  ‍ Yours sincerely, [First and last name]

2. Include a Direct Call to Action

Make a specific call to action on how the next steps should be taken. 

As opposed to implying the next steps, be direct when stating how you’d like to move forward to radiate enthusiasm and confidence. This can be a good approach when your cover letter revolves around your passions or interests or when you’re applying for an internship opportunity .

See the examples below. 

I am now ready for a more impactful role in a larger firm, which is what motivated me to apply for the position you advertised. I will be happy to answer any questions you have in person or online, at your earliest convenience. I can be reached at (phone number) and (email). ‍ Sincerely, [First and last name]

I would love the opportunity to meet you, and I am excited to continue helping people on their path to recovery by becoming a member of [Company]’s team. I am happy to discuss the position in more detail, and you may contact me by phone at 1242-345-6789 or via email — [email protected] to arrange an interview. Thank you for your time and consideration.  Sincerely, [First and last name]

3. Leave a Personal Note Expressing Your Interest

A personal note means making a statement that expresses how you feel about the job opportunity. Whether you’re writing a letter that expresses your interest or curiosity, share why you’re looking forward to taking the next steps. 

However, keep a professional tone. 

All my experience and skills would make me a great new addition to your establishment. I have attached my resume, which contains a more in-depth look at my experiences and skills. I look forward to hearing from you and would love to visit your restaurant for an interview. Thank you for your time and consideration. Sincerely, [First and last name]

4. Summarize Your Cover Letter and Career Highlights

Taking into account what you’ve written in both your resume and cover letter , what’s the ultimate reason why hiring managers would want to hire you? Write an overview of the purpose of your application . Mention why your career highlights are significant factors to you being a qualified candidate. 

I am very enthusiastic about the prospect of joining your team. I am confident that my passion for social networking and digital media will allow me to contribute to your company’s success. I am available to discuss this position in more detail at a convenient time. Thank you for your consideration.  Sincerely, [First and last name]

5. Bring up the Company’s Vision

If you haven’t done so already, now’s the time to refer to the company’s core values and mission statement. 

Choose a particular aspect of the company culture that resonates with you the most. Share how it’s relevant to the value you can bring to the table and how you would blend in well with the company’s workplace. 

This is a good approach for those of you with no work experience as it reinforces your positioning as a strong potential candidate. 

See the example below.

My passion for this field and desire to understand graphic design, advertising and the internet align with Company Z’s approach to understanding its customers and their complex businesses and circumstances in order to provide the most effective graphic design solutions. Thank you for your time and consideration. I look forward to discussing this position further. Sincerely, [First and last name]

6. Share Your Career Objectives 

Impart your potential employer with why you were drawn to the job opening in the first place. Mention your career goals to show that you align with the company’s interests. 

However, your objectives must be relevant to the company’s vision. Including irrelevant goals that don't align with the company’s interests is a common cover letter mistake . 

I am looking for a position that will allow me to continue to develop my skills and grow as an analyst. My career goals include working with a team of analysts and clients to create a positive and challenging work environment, and I look forward to the next step in my career path. Sincerely, [First and last name]

Proactive, innovative, and highly influential, I am seeking a challenging but rewarding position, which is why I was naturally drawn to this exciting opportunity. Sincerely, [First and last name]

7. Share How You Intend to Add Value

Write about how you’re going to help the company solve a problem. Share the type of results that you’re capable of bringing to the organization to position yourself as a valuable asset. 

When considering what to include , be specific about how you intend to make a positive difference. To not sound arrogant though, be sure that you’ve discussed your work history in detail earlier on in your cover letter. 

I strongly believe that my strengths in organizing profitable events and driving company revenues will readily translate to your environment. I would greatly appreciate the opportunity to meet with you and further discuss my qualifications and your requirements in detail. Thank you for your consideration. Sincerely, [First and last name]

4 More Factors to Consider For a Good Cover Letter Ending

Here’s a few more cover letter tips for ending your cover letter. 

Use Emotive Language

Emotive language means using words that express an emotion. Including this in your closing paragraph makes your job application feel more personal, engaging, and convincing. 

Here’s some examples: 

• I would love to… • I am confident that my passion… • I would very much appreciate…

Never Use Postscript Text

Postscript text (P.S.) isn’t bad but it's not necessary on a cover letter . 

Rather than writing a single personal note towards the end, personalize every application you send. Tailor your cover letter to the job description. This is more effective than sending a generic cover letter with only a single personal note saved until the end. 

Include an Electronic Signature 

Again, this isn’t necessary but it’s an extra step you could take to stand out from the hundreds of applications that the company is getting. That said, it's not a dealbreaker. Many of Rezi’s users who have used the AI cover letter generator have secured interviews despite not including an electronic signature. 

Maintain a Professional Tone

Writing in a conversational, friendly tone is important for creating an engaging cover letter. But it must be professional and not in an overly friendly manner. Think of it as speaking to your manager at work. 

3 Cover Letter Examples With Strong Closing Paragraphs

If your job title isn’t listed below, you’re more likely to find it in our library of 180+ cover letter templates . 

Personal Assistant

Software Engineer

Video Editor

Generate a Cover Letter Closing Paragraph Within 60 Seconds Using Rezi’s AI Writer

Instead of trying to write your cover letter from scratch, let Rezi’s AI cover letter writer do the work for you. All Rezi’s AI writer needs is a few details about you so that it can generate a tailored cover letter based on your work history and the job you’re applying to. 

Here’s how it works. 

• Enter the company name.
• Write the job position/title you’re applying for. 
• Select a previous job position/title to highlight. 
• Press “AI Writer Ready”.

From there, either edit what's been created or send it as it is if you're happy with the result.

Sign up here to get started for free. 

Or watch the video below to see how Rezi AI works.

Always End on a Positive Note

You don’t always need a flashy exit. 

Unless you’re going to add something new to the conversation, it’s enough to just thank the hiring manager for their time and sign off from there. Otherwise, adding fluff reduces the impact of a well-written cover letter.

Astley Cervania

Astley Cervania is a career writer and editor who has helped hundreds of thousands of job seekers build resumes and cover letters that land interviews. He is a Rezi-acknowledged expert in the field of career advice and has been delivering job success insights for 4+ years, helping readers translate their work background into a compelling job application.

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How To End a Cover Letter (With Closing Examples)

Cover Letter Closing Examples

Closings not to use, how to sign a cover letter, set up an email signature, more cover letter writing tips.

Hugo Lin / The Balance

When you're writing a cover letter or sending an email message to apply for a job, it's important to close your letter in as professional a manner as possible. End your letter with a formal closing, followed by your signature.

As with any job-related correspondence, it's best to opt for a more formal language and tone—a cover letter is no place for "XOXO," “Cheers,” or even a casual "take care" as a closer.

The following is a list of letter closing examples that are appropriate for cover letters and other employment-related correspondence, such as thank-you notes and/or emails to schedule interviews or pass along references.

• Sincerely yours
• Best regards
• With best regards
• Kind regards
• Yours truly
• Most sincerely
• Respectfully
• Respectfully yours
• Thank you for your consideration

A cover letter is a formal correspondence, so it's important not to be too casual or friendly when writing it. Here are some letter closings that are fine to use when emailing or writing to a friend, but are not appropriate to use in a cover letter. 

• Affectionately
• Best wishes
• Eagerly waiting for a response
• Warm regards
• Warmest regards
• Take it easy
• Have a great day
• Have a nice day
• Yours faithfully
• Abbreviations (Thx or any other abbreviated word isn't appropriate)
• Any emoticon (no smiley faces)
• Sent from my phone (if your phone automatically includes it, you can remove it in the settings)

For a printed letter, follow the closing with a comma. Then, on a new line, put your name. Leave a space above your typed name for your written signature.

Signature (hard copy letter)

If you're sending an email, you can add your contact information below your name. For example:

Best regards,

Your Name Your Email Address Your Phone Number Your LinkedIn Profile URL

Whichever sign-off you choose, make sure always to capitalize its first letter.

To simplify, you can set up an email signature that includes your contact information.

An email signature will make it easy for correspondents to readily see how to get in touch and saves you the time of typing the information repeatedly.

Use a Professional Email Account

It’s a wise idea, when conducting a job search, to set up an email account (and accompanying address) dedicated. Doing so will help to ensure that you don’t miss emails from potential employers who might be interested in interviewing you. It also will allow you to provide a professional-sounding email address on your resume and cover letter. This email address should be comprised simply of your name (examples: “John.T.Smith@gmail.com or marjoriejones@email.com).

Too often, job candidates use their personal email accounts to apply for jobs, often using “cute” email names such as “Crafty_catlady@yahoo.com” or OrcWarrior100@gmail.com.” This casual practice often raises hiring managers, eyebrows, raising red flags about whether a candidate is a serious, qualified applicant for the job to which they are applying.

It’s better to err on the side of safety and separate your professional and personal email accounts.

What To Include in Your Signature

In your signature, include your email address and phone number. You can add your LinkedIn profile URL to make it easy for your recipients to view your skills, accomplishments, educational background, and work history. Depending on your field, you may also want to include a link to your Twitter account; if you do so, make sure that your account is professional and appropriate for viewing by potential employers. 

Find out how to set up a professional email signature, including formatting style and links to help you save a signature in your preferred email program.

Cover letters, whether submitted through email or traditional mail channels, are always the first impression you provide a potential employer. Make sure that this impression is a good one by following the “best practices” outlined in these links so that your cover letter shines.

Having an appropriate close is just one of the many steps required to craft a winning cover letter.

Review how to write a cover letter , including what to include in your cover letter, how to write a cover letter, typical cover letter formats, targeted cover letters, and cover letter samples and examples.

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How to End a Cover Letter? 8 Great Cover Letter Endings (+Examples)

The closing paragraph of your cover letter shouldn't be overlooked. In this article you'll learn how to end a cover letter to make a good impression on a hiring manager.

So, how to end a cover letter on a high note?

A great cover letter closing should highlight your strengths , call for action , and express gratitude . Ideally, all that without sounding repetitive, pushy, or bland. 

So, whether you're looking for a slightly upgraded version of a universal ending or something more distinctive, you'll find it here. Together with great closing paragraphs from cover letters belonging to real people who got hired by well-known companies like Volvo, Ikea, and NBC. 

Cover letter closing paragraph: What should I include?

All cover letters should have a clear structure consisting of three main sections. An introduction, main body, and a closing paragraph. Each of these sections should follow certain rules regarding their thematic content.

In the introduction of your cover letter, you should introduce yourself in detail, explain why the job is exciting to you, and state that you're a great fit. Excluding the heading, contact info, and greeting, the intro should be one paragraph long.

In the main body of your letter, you should back this by writing about your professional skills, past experiences, and hopes and aspirations for your professional future. The main body should be one longer paragraph or 2 shorter ones.

But, what about the closing paragraph ? Well, the ending of your cover letter consists of several key components: 

• A succinct summary of your strengths. This doesn't mean you should repeat everything you wrote in the main body. Rather, you should cherry-pick the parts that are most relevant to the role and best illustrate why you make a great fit. Avoid sounding repetitive by changing up the phrasing. 
• A confident call to action. In a sentence or two you should suggest the next steps. You should be confident without sounding demanding.
• Express gratitude. You should always express gratitude for the recruiter's time and consideration. Afterall, it takes time to review volumes of cover letters and give each one a thought. Make sure to be polite.  
• Use a professional sign-off. Avoid slang phrases like Cheers , See ya , or Have a good one . Rather, opt for the tried and tested classics, such as Sincerely , Best wishes , and Respectfully . 

A cover letter closing should fit into one short paragraph plus a few lines including a sign-off, your name, and possibly your contact information if you haven't yet stated these at the beginning. 

Find out your resume score!

5 Cover letter ending samples from real people

Cover letter ending sample #1 

This first sample cover letter conclusion is short, sweet, and confident. This job seeker is offering his insight as something valuable. This simple psychological trick will make him seem as something diserable by the company.

Cover letter ending sample #2 

In this case, the job seeker is showing enthusiasm for the position, the company, and its culture. Furthermore, "I would love the opportunity to meet with you and dicuss the value I can bring to Ikea" is a strong and confident call to action. 

Cover letter ending sample #3

Wondering how to end a cover letter for an internship? Being self-assured rather than self-effacing will instantly make you a stronger candidate. This person is very pursuasive about wanting to show  why she is deserving of an internship. By doing this, the hiring manager will be intrigued and invite the job seeker for an interview. 

Cover letter ending sample #4 

This candidate is making specific points regarding why he'd be a "top contributor" to their team. His tone is very enthusiastic and confident, which is what hiring managers want to see. His call to action is the opposite of vague and is rather specific as he is looking forward to "hearing from them regarding next steps" .

Cover letter ending sample #5

This cover letter ending has it all. The candidate reiterates her strengths, connects her past experience with the skills she acquired, and mentions how these qualities would make her a valuable member of the team. Her call to action is not bland, but direct and firm. 

Do you prefer to see more examples from hired professionals or find job-specific cover letter samples for your industry? Visit our cover letter library .

3 Examples of cover letter closing paragraphs 

To help you craft a strong cover letter ending paragraph, Kickresume's team of career writers formulated a few examples.

You can use these closing paragraph text examples as inspiration or as a blueprint to write your own.

Cover letter ending example #1

In conclusion, my aforementioned background in [field/profession] and skills, such as [the most relevant skills] have prepared me to be a successful and contributing team member in the kind of environment that  [company] has. I would love the chance to further discuss how my qualifications will contribute to [company] ’s success. 

Thank you for considering my application. 

Cover letter ending example #2

I genuinely believe that my education and [number of years] -year long expertise in [field]  would make me a valuable asset to your organization. Furthermore, the skills I have acquired along the way, including  [the most relevant skills],  make me an excellent match for this job. I’d welcome the opportunity to speak with you more about how I can contribute to the growth and success at  [company].

Thank you for your consideration. 

Best regards, 

Cover letter ending example #3

To conclude,   I believe my [number of years]  years of experience in [field] , specifically working in/on/as  [profession, project, specific industry]  make me a great potential asset. I'd be excited to learn more about this job opening, and show you how I can help [company] 's mission to grow in the next quartile.

Thank you for your time and for considering my application. 

Respectfully,

Cover letter closing paragraph: What other things to include?

There are a few other things a good cover letter conclusion can include apart from the 4 key components mentioned throughout the article.

So, what else can you add to your cover letter closing?

• Contact information. Some applicants prefer to put their contact information in the header of the cover letter. Sure, that's one way to do it, but you can absolutely choose to put the contact info at the bottom. Or even include them in the last paragraph as a part of the call to action. It can go something like "...I'd welcome the opportunity to speak with you more about my qualifications at [phone number and email]."
• Reference to resume attachment. As you usually send both at the same time, you don't really have to say you attached a resume. They already know. However, if your cover letter and resume complement each other and you make a lot of references to your resume throughout the text, then sure. Say something like "...I've attached my resume and am happy to provide any additional information you might need."
• A link to your portfolio. This is, of course, only applicable if you have a portfolio or when it's relevant for the job. In creative fields like graphic design or architecture a portfolio is actually worth a lot more than a cover letter. So, definitely make sure to mention it. You can either include the URL for your website or instruct the hiring managers as to where they can find it. Say, for example, "...If you are interested, my portfolio can be viewed at www.myportfolio.com"

While these aren't necessary, they sure add a nice touch. However, bear in mind that some of these might not be applicable to your specific cover letter ending. 

Key takeaways: How to end a cover letter

The beginning of a cover letter is what initially draws the hiring manager in. But, in order to make a lasting impression, you need to know how to end a cover letter, too. To do that, you should: 

• Highlight any strengths, skills, and past experiences that make you a great candidate ;
• Include a confident call to action that doesn ' t sound demanding or bland ;
• Express your gratitude in a polite way ;
• Use a professional sign-off ;
• If applicable, include your contact information, a reference to your resume attachment, and a link to your portfolio. 

Of course, the content of your entire cover letter matters, not just the ending.

If you'd like to know how to write a complete cover letter, check out our complete cover letter guide .

And for the best result, use one of Kickresume's cover letter templates  alongside any of your email builders or AI writers . Oh, and remember that a cover letter goes hand in hand with a resume . You can even  turn your LinkedIn profile into a great resume  with just one click.

Klára Červeňanská

Klara recently graduated from the University of St Andrews in Scotland. After having written resumes for many of her fellow students, she got an opportunity to write full-time for Kickresume. Klara is our go-to person for all things related to student or 'no experience resumes'. At the same time, she has written some of the most popular resume advice articles on this blog. When she's not writing, you'll probably find her chasing dogs or people-watching while sipping on a cup of coffee.

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How to Write Your Ideal Cover Letter Closing Statement

5 min read · Updated on October 11, 2021

Seal the deal with a great closing statement on your cover letter.

One of the biggest challenges of creating a cover letter is figuring out how to craft the perfect cover letter closing statement. Even the most compelling pitches can fall apart quickly if you do not know how to properly close the deal. So, how can you close your cover letter in a way that motivates the hiring manager to schedule an interview?

In this post, we will help guide you through the closing statement creation process with some proven tips that can help you close the deal and land the interview you need. We will also provide some relevant links to assist you as you put together the rest of your cover letter.

Why your cover letter closing statement is vital

At its core, your cover letter is a sales pitch, and you are the product. As with any other type of sales pitch, you cannot expect to make the sale without a solid closing argument and a direct call to action. That close is akin to asking for the sale, so it needs to be compelling. It is also important to remember that the average person tends to focus on the last thing they read or hear during any exchange of information. Your close needs to be worthy of that focus if you want to make the right kind of impression.

Helpful advice for the body of your cover letter

Before we get to the closing statement, however, it may be helpful to provide a look at some tips for the body of the cover letter. Our library of resources includes a variety of posts that offer stellar advice for crafting an effective cover letter. You can find links to several of those posts at the end of this article. Meanwhile, you can find the tips you need to craft your cover letter introduction and body in the following posts:

How to Start a Cover Letter That Grabs Attention

How to Write a Cover Letter (With Example)

Career-Specific Cover Letter Samples & Examples

Tips for creating the perfect closing statement to end your cover letter

Once you have the body of your cover letter in hand, it is time to consider the message you want to convey in your closing statement. The following tips are critically important for any effective close:

Be confident and enthusiastic

Your closing statement should leave no doubt in the hiring manager's mind that you believe you can do the job. Be sure to include language that properly illustrates your accomplishments with this type of work, and make sure that you sound enthusiastic about the opportunity to be part of their team.

Establish expectations

Remember to set expectations based on the benefits you can provide to the company. Emphasize your talents and qualifications in a way that helps the hiring manager envision you as a valuable addition to the company's workforce.

Align your values to the company's goals and needs

As important as qualifications may be, your values can be even more critical. Chances are there will be many other candidates who share your qualifications. If so, then your ability to illustrate how your values align with the company's mission and goals. Those are things that you can identify by studying the company website and the posted job description.

Make sure that you connect your skillset to the position

The body of your cover letter should consistently reference your skillset and tie those talents to the position. You should use the closing statement to reinforce that connection. That will help to ensure that your qualifications are fresh in their mind as they reach the end of the cover letter.

Thank them for the opportunity and include a call to action

As you close, always remember to thank the sender for their time and the opportunity to be a part of their hiring process. Be sure to include a call to action that highlights your readiness to meet with the company's hiring representatives to learn more about the position.

Use a respectful and complimentary close

Always remember to use proper etiquette when signing off in a cover letter. We recommend a closing message that is professional and formal. For example:

Best regards,

Respectfully,

Thank you, 

With appreciation,

Closing statement example

I am confident that my experience at XYZ Corporation has helped to hone my organizational and leadership skills, which will enable me to quickly meet your expectations for the [job title] position. I am also sure that my commitment to [company mission/values] will align well with [Company Name]'s vision and goals.

Thank you for your time and consideration. I look forward to meeting with you in a scheduled interview soon so that we can discuss the job position and my qualifications.

[Your Name]

[Your Phone Number]

[Your Email]

Your closing statement can be the most important part of any cover letter, so it is important to get it right. The best way to do that is to focus on highlighting your ability to add value to the position, issuing a direct call to action, and signing off in a professional manner. If you can craft a cover letter closing statement that includes those essential elements, you can dramatically increase your cover letter's effectiveness.

Get help writing your cover letter with one of our resume writing service packages.

Recommended Reading:

5 Things to Say in Your Cover Letter If You Want to Get the Job

How to Tailor Your Cover Letter for Each Job Application

The Right (and Wrong) Ways to Show Personality in Your Cover Letter

Related Articles:

7 Best Problem-Solving Skills for Your Resume + Examples (Update)

Whether or Not to Use a Two-page Resume

Seven Key Resume Sections and How to Organize Them

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How to End a Cover Letter (With Tips and Examples)

Are you struggling to figure out how to end a cover letter and worried you’ll leave a weak final impression? 

Cover letters can be a pain to write, especially if you’re applying to multiple positions. You need to personalize the entire cover letter if you want to get the hiring manager’s attention.

And that includes the final paragraph. 

Fortunately, ending your cover letter is easier than you might think. In this post, we’ll teach you everything you need to know to write high-impact cover letter endings that flood your calendar with interviews. 

Let’s dive in with the three big ideas you’ll learn from this post. 

3 key takeaways from this post

• What to include in your cover letter’s closing paragraph 
• 8 cover letter closing paragraph examples (based on context)
• How to create a complete cover letter in minutes with Teal

What should I include in my cover letter’s closing paragraph?

Your closing paragraph should be the capstone of your cover letter, tying together your experiences, skills, and enthusiasm for the role. 

Here are some things you should definitely include:

1. A summary of your value proposition: Reiterate how your skills, experiences, or unique qualities align with the company's needs. Essentially, you're restating why you're the right fit for the job.

2. Enthusiasm for the role and the company: Express your genuine interest in the job and excitement about potentially working with the company. This can help demonstrate your potential as a good cultural fit.

3. A call to action: Politely prompt the reader to take the next step, such as inviting you for an interview or discussing the role further. This leaves the conversation open-ended and expresses your eagerness to continue the dialogue.

4. A professional sign-off: End with a courteous and professional cover letter closing salutation. "Sincerely," "Best regards," and "Thank you" are all good choices.

What shouldn’t I include in my cover letter’s closing paragraph?

While there are essential elements to include, there are also things you should avoid in your closing paragraph:

1. Overconfidence or arrogance: You should express confidence in your abilities but avoid being arrogant. Statements like "I'm the best candidate you'll find" can seem presumptuous and off-putting to a hiring manager.

2. Passive language or uncertainty: Phrases like "I think I could probably do well in this role" sound uncertain and can undercut the strong case you've made for yourself in the rest of the letter. Be confident and assertive in your language ( but without crossing into arrogance… a fine line, we know ).

3. Demands or pushy language: While a call to action is encouraged, avoid sounding pushy or entitled. For instance, saying, "I expect to hear back from you by next week," wouldn’t be appropriate for coming from a job applicant. 

4. Unrelated personal information: Your closing paragraph isn't the place to include irrelevant personal details. Keep the focus on your professional qualifications and fit for the role.

Now that we have a better idea of what we should (and shouldn’t) include at the end of your cover letter, let’s look at a few specific examples that you can use based on the context you’re in. 

Related resources 

Before diving into our cover letter closing paragraphs, you may find you need some help with other sections, too. Please refer to the following articles to master the art of writing cover letters:

• How to Write a Cover Letter: The Ultimate Guide
• How to Address a Cover Letter (with Examples)
• 13 Short Cover Letter Examples by Industry and Job Experience
• How to Format Your Cover Letter to Stand Out in 2023

And be sure to bookmark this post for future reference, as these guides have everything you need to create all-star cover letters! 

8 exceptional cover letter closing paragraphs (and why they work!)

Here, we’ll explore closing paragraphs from cover letter examples for:

• Engineering
• Customer Success
• Career pivoting
• Entering the workforce
• Returning to the workforce with a long gap

Let’s start with a sales cover letter. 

1. Sales cover letter closing paragraph

Laying the final brick on your sales cover letter can often feel like a high-stakes sales pitch. After all, you're selling yourself, your skills, and your potential contribution to the company. 

Here's how you can wrap it up in a compelling, confident manner:

"In closing, I am excited at the prospect of bringing my proven record in sales and client relationship building to [ Company Name ]. I am confident that my skills and experiences align perfectly with your current needs, and I am eager to help drive [ Company Name ]'s sales success to new heights."

Why it works: This closing statement effectively summarizes the candidate's experience while showing enthusiasm for the company and the position. It shows confidence and demonstrates the candidate's knowledge of what the company does and how they can contribute.

2. Marketing cover letter closing paragraph

When you're in the marketing field, the close of your cover letter needs to be just as impactful as any campaign you'd develop. You need to encapsulate your skills, enthusiasm, and understanding of the role in a way that resonates. 

Here's an example that hits the mark:

"I am eager to bring my creative problem-solving skills, knack for trend-spotting, and data-driven approach to your dynamic marketing team at [ Company Name ]. Thank you for considering my application; I look forward to the possibility of discussing how I can contribute to your marketing goals."

Why it works: This cover letter ending illustrates a firm understanding of key marketing skills, highlighting both creativity and data analysis. It conveys appreciation for the reader's time and ends on a proactive note, suggesting a willingness to discuss further.

3. Engineering cover letter closing paragraph

Engineering is all about precision, innovation, and problem-solving. So, when concluding your cover letter, you need to convey your aptitude and excitement for these areas in a succinct, engaging way. 

Check out this cover letter closing statement for engineers:

"I'm excited about the opportunity to bring my unique blend of skills and experience to your innovative engineering team at [ Company Name ], where I hope to contribute to developing industry-leading technology. If given the opportunity, I look forward to further discussing my potential impact on your upcoming projects."

Why it works: It's full of enthusiasm and shows a clear understanding of what the job requires. The candidate displays a readiness for discussion and a keen interest in the company's projects, which shows the candidate is serious and informed.

4. Product cover letter closing paragraph

In product management, it's all about translating insights into exceptional offerings that serve your customers. Your cover letter should communicate that you not only have the requisite experience but also the passion to make a real difference. 

Here's how to end on a high note:

"I am thrilled about the opportunity to bring my experience in product development, project management, and cross-functional leadership to your product team at [ Company Name ]. I am eager to apply my skills and work together to bring exceptional products to your customers."

Why it works: This closing expresses eagerness, understanding of the role, and focus on customer impact. It illustrates the candidate's ability to contribute immediately and work collaboratively, key attributes in product management.

5. Customer success cover letter closing paragraph

As a customer success advocate, your focus is on driving satisfaction and loyalty. Your closing paragraph needs to reflect this customer-centric ethos, showing how your experience and enthusiasm will elevate the customer experience. 

Here's a good conclusion for your cover letter:

"With my experience in improving customer satisfaction and driving customer loyalty, I am excited at the prospect of helping [ Company Name ] continue to prioritize and enhance the customer experience. I look forward to potentially discussing how I can contribute to your customer success team."

Why it works: This conclusion emphasizes the candidate's experience and enthusiasm for enhancing the customer experience, a key element in a customer success role. It leaves the discussion open-ended, showing the candidate's willingness to continue discussing their potential role within the team.

6. Career pivoting cover letter closing paragraph

Crafting a compelling closing paragraph in a career change cover letter is all about demonstrating your transferable skills, passion for the new field, and commitment to learning. 

Here's a strong sample cover letter ending:

"I am excited about the prospect of transferring my strong skills in project management, teamwork, and problem-solving from [ Current Industry ] to [ New Industry ]. My passion for [ New Industry ], combined with my readiness to learn and adapt, makes me a great fit for this role. I am eager to bring a fresh perspective to [ Company Name ] and would appreciate the opportunity to further discuss how my skills and experiences can align with your needs. Thank you for considering my application."

Why it works: This closing paragraph effectively conveys the candidate's enthusiasm for the new industry and confidence in their transferable skills. It ends on a positive note, thanking the reader and expressing eagerness for further discussion. 

This demonstrates both respect for the reader's time and openness to continue the conversation, leaving a positive and lasting impression.

7. Entering the workforce after school cover letter closing paragraph

The aim of a cover letter for a recent graduate is to highlight educational achievements, internships, related coursework, and transferable skills that make them a strong candidate despite the lack of professional work experience. 

Here’s a great cover letter closing example for new graduates:

"Although new to the professional world, I am eager to translate my academic knowledge into practical experience at [ Company Name ]. During my studies in [ Relevant Major/Study ], I have acquired skills in [ skills ] that I am confident will contribute positively to your team. I am excited about possibly starting my career at [ Company Name ] and would be thrilled to further discuss how I can support your objectives. Thank you for considering my application."

Why it works: This closing paragraph effectively positions the candidate's academic experience as preparation for the job in question. It showcases their enthusiasm to start their career and contribute to the company. 

The closing expresses appreciation for the reader's time and leaves the door open for further conversation, which is a professional and positive way to conclude a cover letter.

Related reading: How to Write a Cover Letter for an Internship .

8. Returning after a professional pause cover letter closing paragraph 

In a cover letter for individuals returning to the workforce after a significant break, it's important to focus on the relevant skills they've maintained or developed during their time away, as well as their eagerness to apply those skills in a professional setting. 

Here's an example:

"After a meaningful hiatus from the professional world, I am excited to bring my rich life experiences, combined with my prior experience in [ Relevant Industry/Role ], back into the workforce. I am confident that the skills I've honed during my break - such as [ skills ], paired with my previous professional experience, will be highly beneficial to your team at [ Company Name ]. I am eager to contribute to your ongoing success and would welcome the opportunity to further discuss how I can do so. Thank you for considering my application."

Why it works: This closing paragraph effectively acknowledges the employment gap while also reinforcing the candidate's relevant skills and experiences. It expresses enthusiasm for reentering the professional world and confidence in their ability to contribute to the company. Ending with a forward-looking statement about a future discussion is a positive and proactive way to wrap up the letter.

What do I need to include alongside my cover letter?

While a strong cover letter is an integral part of your job application, it isn’t the only component that matters. In order to present a comprehensive picture of your qualifications and professional background, you should include several other key documents and resources with your application.

Your resume is an overview of your work history, skills, and educational background. It should complement your cover letter, offering more detailed information about your professional experiences.

Ensure your resume is up-to-date, clearly formatted, and tailored to highlight the experiences and skills most relevant to the job you're applying for.

For the fastest and most reliable way to build, personalize, and optimize your resume, try Teal’s AI Resume Builder 100% free ! 

2. A fully thought-out job application

Most companies require you to fill out an application form and submit your resume and cover letter. This form may ask for information not included in your resume, such as references or specific examples of your work. 

To save time and ensure accuracy, consider using autofill features, but always review the information carefully to ensure it is correct and complete.

Learn more about Teal’s Autofill Job Applications feature. 

3. Portfolio

If you're in a field where a portfolio is appropriate—graphic design, journalism, or software development—including this with your application is a must. A well-curated portfolio showcases your best work and proves your competency. 

Make sure to include examples that are relevant to the job you're applying for and provide context or a brief description for each piece if necessary.

4. Up-to-Date LinkedIn Profile 

Many employers will look up potential candidates online. An up-to-date LinkedIn profile acts as an online resume, allowing employers to verify your professional experiences and see endorsements from colleagues or superiors. 

Together, these components provide a comprehensive overview of your skills, experience, and qualifications, giving potential employers a clear understanding of your professional background and capabilities. 

Worried your LinkedIn isn’t up to par? No worries, we’ve got you covered. Check out Teal’s LinkedIn Profile Reviewer . 

What should I do after submitting my cover letter?

Submitting a great cover letter is a significant step in your job application process, but your work doesn't stop there. 

Here's what you should do next:

1. Follow-up: If you haven't heard back within the timeframe specified in the job posting (or after about one to two weeks if no timeframe was given), it's appropriate to send a polite follow-up email . 

Inquire about the status of your application and reiterate your interest in the role.

2. Keep applying: Even if you feel confident about a specific job application, it's a good strategy to keep applying to other positions. The job market can be unpredictable, and it's wise to have multiple prospects in play.

3. Prepare for interviews: Use this time to start prepping for potential interviews. Research common interview questions, practice your responses, and brainstorm questions you can ask the interviewer to show your interest and initiative.

Within Teal’s Job Application Tracker are tips and resources to help you practice interviewing.

For more help, check out this resource hub on Interviews .

4. Continue networking: Stay active on LinkedIn and in relevant professional networks. Engage with posts related to your industry, share articles, and make meaningful connections. Networking can sometimes lead to unexpected job opportunities.

5. Reflect and improve: Take some time to reflect on your job application process so far. 

• Are there things you could improve? 
• Could your resume be more tailored? 
• Could your cover letter be more engaging? 

Continuous self-reflection and improvement will increase your chances of landing the job.

Remove the guesswork from cover letter writing with Teal

Writing a cover letter can feel like a guessing game. But it doesn't have to. 

Enter Teal's AI Resume Builder —your secret weapon in the fight for a compelling cover letter. This feature will absolutely transform the way you approach cover letter writing.

As generative AI has become more popular over the past few months, many people have asked us how to use ChatGPT to write a cover letter .

But Teal’s built-in generative AI runs on the same engine as ChatGPT and is already synced with your current resume. With the click of a button, you can automatically generate your cover letter in seconds:

This is like having a professional ghostwriter by your side, creating a first draft for you that is still uniquely yours. And once you have the first draft, you can use your expertise to polish and refine the letter to your liking.

@teal_hq Unfortunately cover letters are still required in a lot of job applications (no thanks) so here’s how you can take a job description and your resume and generate one in under 30 seconds. With all A.I. materials do a proofreading pass and you’re good to go. #coverletter #coverlettertips #coverletterexample #jobapplication #jobapplications #jobapplicationtips #jobsearch ♬ Roxanne - Instrumental - Califa Azul

But the magic doesn’t stop there. 

Directly from Teal’s AI Resume Builder , you can align your cover letter with each specific job you're applying to:

Then, by using keywords from the job description, Teal enables you to tailor your letter to the requirements of the role, effectively speaking the same language as hiring managers and, more importantly, the Applicant Tracking System (ATS):

From there, you can also access a personal dashboard for tracking all your job applications. With a centralized space to manage your job search, Teal eliminates the chaos of juggling multiple applications, deadlines, and follow-ups:

In short, Teal is your fastest ticket to generating personalized cover letters tailored to specific roles. With Teal, you're not just creating a cover letter; you're building a strategic tool that could significantly boost your chances of landing your dream job.

So, why spend another minute on guesswork? Leverage the power of Teal and step up your cover letter game today!

Click here to sign up for Teal for free today ! 

Frequently Asked Questions

What is the best way to convey enthusiasm in the closing of a cover letter, how can i ensure my cover letter's closing is memorable, is it appropriate to mention following up in the closing of a cover letter.

Nathan Thompson

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We help you find the career dream..

Dear Fellow Shareholders,

Across the globe, 2023 was yet another year of significant challenges, from the terrible ongoing wars and violence in the Middle East and Ukraine to mounting terrorist activity and growing geopolitical tensions, importantly with China. Almost all nations felt the effects last year of global economic uncertainty, including higher energy and food prices, inflation rates and volatile markets. While all these events and associated instability have serious ramifications on our company, colleagues, clients and countries where we do business, their consequences on the world at large — with the extreme suffering of the Ukrainian people, escalating tragedy in the Middle East and the potential restructuring of the global order — are far more important.

As these events unfold, America’s global leadership role is being challenged outside by other nations and inside by our polarized electorate. We need to find ways to put aside our differences and work in partnership with other Western nations in the name of democracy. During this time of great crises, uniting to protect our essential freedoms, including free enterprise, is paramount. We should remember that America, “conceived in liberty and dedicated to the proposition that all men are created equal,” still remains a shining beacon of hope to citizens around the world. JPMorgan Chase, a company that historically has worked across borders and boundaries, will do its part to ensure that the global economy is safe and secure.

In spite of the unsettling landscape, including last year’s regional bank turmoil, the U.S. economy continues to be resilient, with consumers still spending, and the markets currently expect a soft landing. It is important to note that the economy is being fueled by large amounts of government deficit spending and past stimulus. There is also a growing need for increased spending as we continue transitioning to a greener economy, restructuring global supply chains, boosting military expenditure and battling rising healthcare costs. This may lead to stickier inflation and higher rates than markets expect. Furthermore, there are downside risks to watch. Quantitative tightening is draining more than $900 billion in liquidity from the system annually — and we have never truly experienced the full effect of quantitative tightening on this scale. Plus the ongoing wars in Ukraine and the Middle East continue to have the potential to disrupt energy and food markets, migration, and military and economic relationships, in addition to their dreadful human cost. These significant and somewhat unprecedented forces cause us to remain cautious.

2023 was another strong year for JPMorgan Chase, with our firm generating record revenue for the sixth consecutive year, as well as setting numerous records in each of our lines of business. We earned revenue in 2023 of $162.4 billion 1 and net income of $49.6 billion, with return on tangible common equity (ROTCE) of 21%, reflecting strong underlying performance across our businesses. We also increased our quarterly common dividend of $1.00 per share to $1.05 per share in the third quarter of 2023 — and again to $1.15 per share in the first quarter of 2024 — while continuing to reinforce our fortress balance sheet. We grew market share in several of our businesses and continued to make significant investments in products, people and technology while exercising strict risk disciplines.

Throughout the year, we demonstrated the power of our investment philosophy and guiding principles, as well as the value of being there for clients — as we always are — in both good times and bad times. The result was continued growth broadly across the firm. We will highlight a few examples from 2023: Consumer & Community Banking (CCB) extended its #1 leadership positions and grew share year-over-year in retail deposits, credit card sales and credit card outstandings (adding close to 3.6 million net new customers to the franchise); the Corporate & Investment Bank (CIB) maintained its #1 rank in both Investment Banking and Markets and gained more than 100 basis points of Investment Banking market share; Commercial Banking (CB) added over 5,000 new relationships (excluding First Republic Bank), roughly doubling the prior year’s achievement; and Asset & Wealth Management (AWM) saw record client asset net inflows of $490 billion, over 20% higher than its prior record.

In 2023, we continued to play a forceful and essential role in advancing economic growth. In total, we extended credit and raised capital totaling $2.3 trillion for our consumer and institutional clients around the world. On a daily basis, we move nearly $10 trillion in over 120 currencies and more than 160 countries, as well as safeguard over $32 trillion in assets. By purchasing First Republic Bank, we brought much-needed stability to the U.S. banking system while allowing us to give a new, secure home to over half a million First Republic customers.

As always, we hold fast to our commitment to corporate responsibility, including helping to create a stronger, more inclusive economy — from supporting work skills training programs around the world to financing affordable housing and small businesses to making investments in cities like Detroit that show how business and government leaders can work together to solve problems.

We have achieved our decades-long consistency by adhering to our key principles and strategies (see sidebar on Steadfast Principles below), which allow us to drive good organic growth and promote proper management of our capital (including dividends and stock buybacks). The charts below show our performance results and illustrate how we have grown our franchises, how we compare with our competitors and how we look at our fortress balance sheet. Please peruse them and the CEO letters in this Annual Report, all of which provide specific details about our businesses and our plans for the future.

STEADFAST PRINCIPLES WORTH REPEATING (AND ONE NEW ONE)

Looking back on the past two+ decades — starting from my time as Chairman and CEO of Bank One in 2000 — there is one common theme: our unwavering dedication to help clients, communities and countries throughout the world. It is clear that our financial discipline, constant investment in innovation and ongoing development of our people have enabled us to achieve this consistency and commitment. In addition, across the firm, we uphold certain steadfast tenets that are worth repeating.

First, our work has very real human impact. While JPMorgan Chase stock is owned by large institutions, pension plans, mutual funds and directly by single investors, in almost all cases the ultimate beneficiaries are individuals in our communities. More than 100 million people in the United States own stocks; many, in one way or another, own JPMorgan Chase stock. Frequently, these shareholders are veterans, teachers, police officers, firefighters, healthcare workers, retirees, or those saving for a home, education or retirement. Often, our employees also bank these shareholders, as well as their families and their companies. Your management team goes to work every day recognizing the enormous responsibility that we have to all of our shareholders.

Second, shareholder value can be built only if you maintain a healthy and vibrant company, which means doing a good job of taking care of your customers, employees and communities. Conversely, how can you have a healthy company if you neglect any of these stakeholders? As we have learned over the past few years, there are myriad ways an institution can demonstrate its compassion for its employees and its communities while still strengthening shareholder value.

Third, while we don’t run the company worrying about the stock price in the short run, in the long run we consider our stock price a measure of our progress over time. This progress is a function of continual investments in our people, systems and products, in good and bad times, to build our capabilities. These important investments will also drive our company’s future prospects and position it to grow and prosper for decades. Measured by stock performance, our progress is exceptional. For example, whether looking back 10 years or even farther to 2004, when the JPMorgan Chase/Bank One merger took place, we have outperformed the Standard & Poor’s 500 Index and the Standard & Poor’s Financials Index.

Fourth, we are united behind basic principles and strategies (you can see the principles for How We Do Business on our website and our Purpose statement in my letter from last year) that have helped build this company and made it thrive. These allow us to maintain a fortress balance sheet, constantly invest and nurture talent, fully satisfy regulators, continually improve risk, governance and controls, and serve customers and clients while lifting up communities worldwide. This philosophy is embedded in our company culture and influences nearly every role in the firm.

Fifth, we strive to build enduring businesses, which rely on and benefit from one another, but we are not a conglomerate. This structure helps generate our superior returns. Nonetheless, despite our best efforts, the walls that protect this company are not particularly high — and we face extraordinary competition. I have written about this reality extensively in the past and cover it again in this letter. We recognize our strengths and vulnerabilities, and we play our hand as best we can.

Sixth, and this is the new one , we must be a source of strength, particularly in tough times, for our clients and the countries in which we operate. We must take seriously our role as one of the guardians of the world’s financial systems.

Seventh, we operate with a very important silent partner — the U.S. government — noting as my friend Warren Buffett points out that his company’s success is predicated upon the extraordinary conditions our country creates. He is right to say to his shareholders that when they see the American flag, they all should say thank you. We should, too. JPMorgan Chase is a healthy and thriving company, and we always want to give back and pay our fair share. We do pay our fair share — and we want it to be spent well and have the greatest impact. To give you an idea of where our taxes and fees go: In the last 10 years, we paid more than $46 billion in federal, state and local taxes in the United States and over $22 billion in taxes outside of the United States. Additionally, we paid the Federal Deposit Insurance Corporation over $10 billion so that it has the resources to cover failure in the American banking sector. Our partner — the federal government — also imposes significant regulations upon us, and it is imperative that we meet all legal and regulatory requirements imposed on our company.

Eighth and finally, we know the foundation of our success rests with our people. They are the front line, both individually and as teams, serving our customers and communities, building the technology, making the strategic decisions, managing the risks, determining our investments and driving innovation. However you view the world — its complexity, risks and opportunities — a company’s prosperity requires a great team of people with guts, brains, integrity, enormous capabilities and high standards of professional excellence to ensure its ongoing success.

I remain proud of our company’s resiliency and of what our hundreds of thousands of employees around the world have achieved, collectively and individually. Throughout these challenging past few years, we have never stopped doing all the things we should be doing to serve our clients and our communities. As you know, we are champions of banking’s essential role in a community — its potential for bringing people together, for enabling companies and individuals to attain their goals, and for being a source of strength in difficult times. I often remind our employees that the work we do matters and has impact. United by our principles and purpose, we help people and institutions finance and achieve their aspirations, lifting up individuals, homeowners, small businesses, larger corporations, schools, hospitals, cities and countries in all regions of the world. What we have accomplished in the 20 years since the Bank One and JPMorgan Chase merger is evidence of the importance of our values.

CELEBRATING THE 20TH ANNIVERSARY OF THE BANK ONE/JPMORGAN CHASE MERGER

J.P. Morgan Chase

By 2004, J.P. Morgan Chase already represented the consolidation of four of the 10 largest U.S. banks from 1990: The Chase Manhattan Corp., Manufacturers Hanover, Chemical Banking Corp. and, most recently, J.P. Morgan & Company. And some of their predecessor companies stretched back into the 1800s, one even into the late 1700s.

Bank One had been even busier on the acquisition front, especially across the United States. By 1998, then Banc One had more than 1,300 branches in 12 states when it announced a merger with First Chicago NBD, a Chicago-based bank created just three years earlier by the merger of First Chicago and Detroit-based NBD. Now headquartered in Chicago, the new Bank One became the largest bank in the Midwest, second largest among credit card companies and fourth largest in the United States. But the merger didn’t go as planned, with Bank One issuing three different earnings warnings. In March 2000, Bank One reached outside its executive ranks, and my tenure began as Chairman and CEO, working to overhaul the company and help bring it back to profitability and growth.

The story begins ... A merger 20 years ago helped transform two giant banks

Fast forward to 2003, and another wave of consolidation was well underway in U.S. banking. Most of the nation’s larger banks were trying to position themselves to be an “endgame winner.” In the biggest deal, Bank of America agreed to buy FleetBoston Financial Corp. for more than $40 billion. Those two banks — already amalgamations of several predecessor companies — touted the breadth of their combined retail branch network.

But they were hardly alone. In 2003, some 215 deals were announced among U.S. commercial banks and bank holding companies for a total value of $66 billion, according to Thomson Financial, which tracks merger data.

In July 2004, J.P. Morgan Chase and Bank One merged — as part of a 225-year journey — to form this exceptional company of ours: JPMorgan Chase. At its merger in 2004, the combined bank was the fourth largest bank in the world by market capitalization. But with patient groundwork over the years — fixing systems and upgrading technology, managing the notable acquisitions of Bear Stearns and Washington Mutual (WaMu) and continuing to reinvest, including in our talent — we have made our company an endgame winner.

In earlier years, banks worried about their survival. While the past two decades have brought some virtually unprecedented challenges, including the great financial crisis and a pandemic followed by a global shutdown, they did not stop us from accomplishing extraordinary things. Our bank has now emerged as the #1 bank by market capitalization.

Each of our businesses is among the best in the world, with increased market share, strong financial results and an unwavering focus on serving our clients, communities and shareholders with distinction and dedication. The strengths that are embedded in JPMorgan Chase — the knowledge and cohesiveness of our people, our long-standing client relationships, our technology and product capabilities, our presence in more than 100 countries and our unquestionable fortress balance sheet — would be hard to replicate. Crucially, the strength of our company has allowed us to always be there for clients, governments and communities — in good times and in bad times — and this strength has enabled us to continually invest in building our businesses for the future.

You can see from the following charts what gains and improvements we have achieved along the way.

Read footnoted information here

Within this letter, I discuss the following:

I. SUMMARY OF OUR 2023 RESULTS AND THE PRINCIPLES THAT GUIDE US

• Steadfast principles worth repeating (and a new one)
• A timeline of accomplishments
• Financial performance

II. UPDATE ON SPECIFIC ISSUES FACING OUR COMPANY

• The critical impact of artificial intelligence
• Our journey to the cloud
• Acquiring First Republic Bank and its customers
• Navigating in a complex and potentially dangerous world
• What we learned: A five-point action plan to move forward on the climate challenge
• Powering economic growth in Florida
• Giving the bank regulatory and supervisory process a serious review
• Protecting the essential role of market making (trading)

III. STAYING COMPETITIVE IN THE SHRINKING PUBLIC MARKETS

• The pressure of quarterly earnings compounded by bad accounting and bad decisions
• The hijacking of annual shareholder meetings
• The evolving influence of proxy advisors
• The benefits and risks of private credit
• A bank’s strength: Providing flexible capital

IV. MANAGEMENT LESSONS: THINKING, DECIDING AND TAKING ACTION — DELIBERATELY AND WITH HEART

• Benefiting from the OODA loop
• Decision making and acting (have a process)
• The secret sauce of leadership (have a heart)

V. A PIVOTAL MOMENT FOR AMERICA AND THE FREE WESTERN WORLD: STRATEGY AND POLICY MATTER

• Coalescing the Western world — A uniquely American task
• Strengthening our position with a comprehensive, global economic security strategy
• Manager’s Journal: "A Politician's Dream Is A Businessman's Nightmare"
• We should have more faith in the amazing power of our freedoms
• How we can help lift up our low-income citizens and mend America's torn social fabric

Update on Specific Issues Facing Our Company

Each year, I try to update you on some of the most important issues facing our company. First and foremost may well be the impact of artificial intelligence (AI).

While we do not know the full effect or the precise rate at which AI will change our business — or how it will affect society at large — we are completely convinced the consequences will be extraordinary and possibly as transformational as some of the major technological inventions of the past several hundred years: Think the printing press, the steam engine, electricity, computing and the Internet, among others.

THE CRITICAL IMPACT OF ARTIFICIAL INTELLIGENCE

Since the firm first started using AI over a decade ago, and its first mention in my 2017 letter to shareholders, we have grown our AI organization materially. It now includes more than 2,000 AI/machine learning (ML) experts and data scientists. We continue to attract some of the best and brightest in this space and have an exceptional firmwide AI/ML and Research department with deep expertise.

We have been actively using predictive AI and ML for years — and now have over 400 use cases in production in areas such as marketing, fraud and risk — and they are increasingly driving real business value across our businesses and functions. We're also exploring the potential that generative AI (GenAI) can unlock across a range of domains, most notably in software engineering, customer service and operations, as well as in general employee productivity. In the future, we envision GenAI helping us reimagine entire business workflows. We will continue to experiment with these AI and ML capabilities and implement solutions in a safe, responsible way.

While we are investing more money in our AI capabilities, many of these projects pay for themselves. Over time, we anticipate that our use of AI has the potential to augment virtually every job, as well as impact our workforce composition. It may reduce certain job categories or roles, but it may create others as well. As we have in the past, we will aggressively retrain and redeploy our talent to make sure we are taking care of our employees if they are affected by this trend.

Finally, as a global leader across businesses and regions, we have large amounts of extraordinarily rich data that, together with AI, can fuel better insights and help us improve how we manage risk and serve our customers. In addition to making sure our data is high quality and easily accessible, we need to complete the migration of our analytical data estate to the public cloud. These new data platforms offer high-performance compute power, which will unlock our ability to use our data in ways that are hard to contemplate today.

Recognizing the importance of AI to our business, we created a new position called Chief Data & Analytics Officer that sits on our Operating Committee.

Elevating this new role to the Operating Committee level — reporting directly to Daniel Pinto and me — reflects how critical this function will be going forward and how seriously we expect AI to influence our business. This will embed data and analytics into our decision making at every level of the company. The primary focus is not just on the technical aspects of AI but also on how all management can — and should — use it. Each of our lines of business has corresponding data and analytics roles so we can share best practices, develop reusable solutions that solve multiple business problems, and continuously learn and improve as the future of AI unfolds.

Clearly, AI comes with many risks, which need to be rigorously managed.

We have a robust, well-established risk and control framework that helps us proactively stay in front of AI-related risks, particularly as the regulatory landscape evolves. And we will, of course, continue to work hard with our regulators, clients and subject matter experts to make sure we maintain the highest ethical standards and are transparent in how AI helps us make decisions; e.g., to counter bias among other things.

You may already be aware that there are bad actors using AI to try to infiltrate companies’ systems to steal money and intellectual property or simply to cause disruption and damage. For our part, we incorporate AI into our toolset to counter these threats and proactively detect and mitigate their efforts.

OUR JOURNEY TO THE CLOUD

Getting our technology to the cloud — whether the public cloud or the private cloud — is essential to fully maximize all of our capabilities, including the power of our data. The cloud offers many benefits: 1) it accelerates the speed of delivery of new services; 2) it simultaneously reduces the cost of compute power and enables, when needed, an extraordinary amount of compute capability — called burst computing; 3) it provides that compute capability across all of our data; and 4) it allows us to be able to constantly and quickly adopt new technologies because updated cloud services are continually being added — more so in the public cloud, where we benefit from the innovation that all cloud providers create, than in the private cloud, where innovation is only our own.

Of course, we are learning a lot along the way. For example, we know we should carefully pick which applications and which data go to the public cloud versus the private cloud because of the expense, security and capabilities required. In addition, it is critical that we eventually use multiple clouds to avoid lock-in. And we intend to maintain our own expertise so that we’re never reliant on the expertise of others even if that requires additional money.

We invested approximately $2 billion to build four new, modern, private cloud-based, highly reliable and efficient data centers in the United States (we have 32 data centers globally). To date, about 50% of our applications run a large part of their processing in the public or private cloud. Approximately 70% of our data is now running in the public or private cloud. By the end of 2024, we aim to have 70% of applications and 75% of data moved to the public or private cloud. The new data centers are around 30% more efficient than our existing legacy data centers. Going to the public cloud can provide 30% additional efficiency if done correctly (efficiency improves when your data and applications have been modified, or “refactored,” to enable new cloud services). We have been constantly updating most of our global data centers, and by the end of this year, we can start closing some that are larger, older and less efficient.

ACQUIRING FIRST REPUBLIC BANK AND ITS CUSTOMERS

The purchase of First Republic Bank was not something that we would have done just for ourselves. But the regulators relied on us to step forward (we worked hand in hand with the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the U.S. Treasury), and the purchase of First Republic helped stabilize and strengthen the U.S. financial system in a time of crisis.

The acquisition of a major company entails a lot of complexity. People tend to focus on the financial and economic outcomes, which is a reasonable thing to do. And in the case of First Republic, the numbers look rather good. We recorded an accounting gain of $3 billion on the purchase , and we told the world we expected to add more than $500 million to earnings annually, which we now believe will be closer to $2 billion. However, these results mask some of the true costs. First, approximately one-third of the incremental earning was simply deploying excess capital and liquidity, which doesn’t require purchasing a $300 billion bank — we simply could have bought $300 billion of assets. Second, as soon as the deal was announced, approximately 7,600 of our employees went from working on tasks that would benefit the future of JPMorgan Chase to working on the merger integration. Overall, the integration involves effectively combining more than 165 systems (e.g., statement, deposit, accounting and human resources) and consolidating policies, risk reporting, and other various rules and procedures. We hope to have most of the integration done by the middle of 2024.

Fortunately, we were very familiar and comfortable with all of the assets we were acquiring from First Republic. What we didn’t take on was First Republic’s excessive interest rate exposure — one of the reasons it failed — which we effectively hedged within days of the acquisition.

Our people did a great job of respectfully managing this transition, knowing that circumstances were particularly tough for our new colleagues, whom we tried to welcome with open arms. We did everything we could to redeploy individuals whose jobs were lost because of the merger (we directly hired over 5,000 people). Our approach has always been to go into an acquisition knowing we can learn things from other teams, and in this case, we did: First Republic had done an outstanding job serving high-net-worth clients and venture capitalists, and we are developing what is effectively a new business for us following First Republic’s servicing model. We will serve these high-net-worth clients through a single point of contact, supported by a concierge service model, across our distribution channels — including more than 20 new JPMorgan Chase branded branches.

NAVIGATING IN A COMPLEX AND POTENTIALLY DANGEROUS WORLD

In the policy section, we talk about how we may be entering one of the most treacherous geopolitical eras since World War II. And I have written in the past about high levels of debt, fiscal stimulus, ongoing deficit spending and the unknown effects of quantitative tightening (which I am more worried about than most) so I won’t repeat those views here. However, the impacts of these geopolitical and economic forces are large and somewhat unprecedented; they may not be fully understood until they have completely played out over multiple years. In any case, JPMorgan Chase must be prepared for the various potential impacts and outcomes on our company and our people.

We remain wary of economic prognosticating.

While all companies essentially budget on a base case forecast, we are very careful not to run our business that way. Instead, we look at a range of potential outcomes for which we need to be prepared. Geopolitical and economic forces have an unpredictable timetable — they may unfold over months, or years, and are nearly impossible to put into a one-year forecast. They also have an unpredictable interplay: For example, the geopolitical situation may end up having virtually no effect on the world’s economy or it could potentially be its determinative factor.

We have ongoing concerns about persistent inflationary pressures and consider a wide range of outcomes to manage interest rate exposure and other business risks.

Many key economic indicators today continue to be good and possibly improving, including inflation. But when looking ahead to tomorrow , conditions that will affect the future should be considered. For example, there seems to be a large number of persistent inflationary pressures, which may likely continue. All of the following factors appear to be inflationary: ongoing fiscal spending, remilitarization of the world, restructuring of global trade, capital needs of the new green economy, and possibly higher energy costs in the future (even though there currently is an oversupply of gas and plentiful spare capacity in oil) due to a lack of needed investment in the energy infrastructure. In the past, fiscal deficits did not seem to be closely related to inflation. In the 1970s and early 1980s, there was a general understanding that inflation was driven by “guns and butter”; i.e., fiscal deficits and the increase to the money supply, both partially driven by the Vietnam War, led to increased inflation, which went over 10%. The deficits today are even larger and occurring in boom times — not as the result of a recession — and they have been supported by quantitative easing, which was never done before the great financial crisis. Quantitative easing is a form of increasing the money supply (though it has many offsets). I remain more concerned about quantitative easing than most, and its reversal, which has never been done before at this scale.

Equity values, by most measures, are at the high end of the valuation range, and credit spreads are extremely tight. These markets seem to be pricing in at a 70% to 80% chance of a soft landing — modest growth along with declining inflation and interest rates. I believe the odds are a lot lower than that. In the meantime, there seems to be an enormous focus, too much so, on monthly inflation data and modest changes to interest rates. But the die may be cast — interest rates looking out a year or two may be predetermined by all of the factors I mentioned above. Small changes in interest rates today may have less impact on inflation in the future than many people believe.

Therefore, we are prepared for a very broad range of interest rates, from 2% to 8% or even more, with equally wide-ranging economic outcomes — from strong economic growth with moderate inflation (in this case, higher interest rates would result from higher demand for capital) to a recession with inflation; i.e., stagflation. Economically, the worst-case scenario would be stagflation, which would not only come with higher interest rates but also with higher credit losses, lower business volumes and more difficult markets. Under these many different scenarios, our company would continue to perform at least okay. Importantly, being prepared means we can continue to help our clients no matter what the future portends.

The mini banking crisis of 2023 is over, but beware of higher rates and recession — not just for banks but for the whole economy.

When we purchased First Republic in May 2023 following the failure of two other regional banks, Silicon Valley Bank (SVB) and Signature Bank, we thought that the current banking crisis was over. Only these three banks were offsides in having the toxic combination of extreme interest rate exposure, large unrealized losses in the held-to-maturity (HTM) portfolio and highly concentrated deposits. Most of the other regional banks did not have these problems. However, we stipulated that the crisis was over provided that interest rates didn’t go up dramatically and we didn’t experience a serious recession. If long-end rates go up over 6% and this increase is accompanied by a recession, there will be plenty of stress — not just in the banking system but with leveraged companies and others. Remember, a simple 2 percentage point increase in rates essentially reduced the value of most financial assets by 20%, and certain real estate assets, specifically office real estate, may be worth even less due to the effects of recession and higher vacancies. Also remember that credit spreads tend to widen, sometimes dramatically, in a recession.

We seek to be engaged globally and carefully manage complex countries and geopolitical issues.

JPMorgan Chase does business in more than 100 countries, and we have people on the ground in over 60 countries. In almost all those locations, we do research on their economy, their markets and their companies; we bank their government institutions and their companies; and we bank multinational corporations, including the U.S. multinational corporations within their borders. This is a critical role — not only in helping those countries grow and improve but also in expanding the global economy.

Many of these countries are quite complex with different laws, customs and regulations. We are occasionally asked why we bank certain companies and even certain countries, particularly when countries have some laws and customs that are counter to many of the values held in the United States. Here’s why:

• The U.S. government sets foreign policy. And when it does, we salute. Wherever we do business, we follow the law of the United States, as it applies in that country (in addition to the laws of the country itself), in all respects. Think of trade rules, sanctions, anti-money laundering and the Foreign Corrupt Practices Act, among others. By and large, these things help improve those countries. In most cases, the U.S. government does not want us to leave because it agrees, generally, that the engagement of American business enhances our relationships with other countries and helps those countries themselves.
• Engagement makes the world a better place. We all should want the world to continue to improve. Isolation and lack of engagement do not accomplish that goal. While we believe that it makes sense for the United States to push for constant improvement around the world — from advocating for human rights to fighting corruption — this is rarely accomplished through coercion, and, in fact, is enhanced by engagement.
• We need to be prepared for emerging challenges and position ourselves to understand them. We created a new role — Head of Asia Pacific Policy and Strategic Competitiveness — to focus specifically on key policy issues critical to the firm’s (and, in fact, the country’s) competitiveness, such as trade restrictions, supply chains and infrastructure. We also created a new strategic security forum to focus on emerging and evolving risks, including trade wars, pandemics, cybersecurity and actual wars, to name just a few.

OUR EXTENSIVE COMMUNITY OUTREACH EFFORTS, INCLUDING DIVERSITY, EQUITY AND INCLUSION

JPMorgan Chase makes an extraordinary effort as part of our “normal” day-to-day outreach to engage with individual clients, small and midsized businesses, large and multinational firms, government officials, regulators and the press in cities all around the world. This dialogue is part of the normal course of business but it is also part of building trust and putting down roots in a community.

We believe that companies, and banks in particular, must earn the trust of the communities and countries in which they operate. We believe — and we are unashamed about this — that it is our obligation to help lift up the communities and countries in which we do business. We believe that doing so enhances business and the general economic well-being of those communities and countries and also enhances long-term shareholder value. JPMorgan Chase thrives when communities thrive.

This approach is integral to what we do, in great scale, around the world — and it works. We are quite clear that whether our efforts are inspired by the goodness of our hearts (as philanthropy or venture-type investing) or good business, we try to measure the actual outcomes.

It’s also interesting to point out that many of our efforts were spawned from our work around Advancing Black Pathways, Military and Veterans Affairs, and our work in Detroit. While we’ve banked Detroit for more than 90 years, our $200 million investment in its economic recovery over the last decade demonstrated that investing in communities is a smart business strategy. We are one of the largest banks in Detroit, from consumer banking to investment banking, and it’s quite clear that not only did our efforts help Detroit, but they also helped us gain market share. The extent of Detroit’s remarkable recovery was recently highlighted when Moody’s upgraded the city’s credit rating to investment grade — an extraordinary achievement just over 10 years after the city filed the largest municipal bankruptcy in U.S. history.

For JPMorgan Chase, Detroit was an incubator for developing models that help us hone how we deploy our business resources, philanthropic capital, skilled volunteerism, and low-cost loans and equity investments, as well as how we identify top talent to drive successful business and societal improvements. I hope that, as shareholders, you are proud of our focus on promoting opportunity for all, both within and outside our organization, which includes economic opportunity. Some of our initiatives are listed below.

• Business Resource Groups. To deepen our culture of inclusion in the workplace, we have 10 Business Resource Groups (BRG) across the company to connect more than 160,000 participating employees around common interests, as well as to foster networking and camaraderie. Groups welcome anyone — allies and those with shared affinities alike. For example, some of our largest BRGs are Access Ability (employees with disabilities and caregivers), Adelante (Hispanic and Latino employees), BOLD (Black employees), NextGen (early career professionals), PRIDE (LGBTQ+ employees) and Women on the Move.
• Women on the Move. At JPMorgan Chase, they sure are! Women represent 28% of our firm’s senior leadership globally. In fact, our major lines of business — CCB, AWM and CIB, which would be among Fortune 1000 companies on their own — are all run by women (one with a co-head who is male). More than 10 years ago, a handful of senior women at the company, on their own, started this global, firmwide, internally focused organization called Women on the Move. It was so successful that we expanded the initiative beyond the company; it now empowers clients and consumers, as well as women employees and their allies, to build their careers, grow their businesses and improve their financial health. The Women on the Move BRG has more than 70,000 employees globally.
• Advancing Black Pathways. This comprehensive program, which just reached the five-year mark, focuses on strengthening the economic foundation of Black communities because we know that opportunity is not always created equally. The program does so by, among other accomplishments, helping to diversify our talent pipeline, providing opportunities for Black individuals to enter the workforce and gain valuable experience, and investing in the financial success of Black Americans through a focus on financial health, homeownership and entrepreneurship. An important part of the program’s work is achieved through our investment in Historically Black Colleges and Universities (HBCU). We now partner with 18 schools across the United States to boost recruitment connections, expand career pathways for Black students and other students, and support their long-term development and financial health. As a measure of the program’s success, in four years we have made nearly 400 hires into summer and full-time analyst and associate roles at the firm.
• Military and Veterans Affairs. This firmwide effort sponsors recruitment, mentorship and development programs to support the military members and veterans working at JPMorgan Chase. Back in 2011, we joined with 10 other companies to launch the Veteran Jobs Mission (VJM), whose membership has since grown to more than 300 companies representing various industries across the United States and has hired over 900,000 veterans and military spouses. In 2023, VJM announced the creation of its Advisory Board, which is composed of 14 corporate leaders, to provide strategic direction and oversight of VJM as it continues to expand its commitment to support economic opportunities for veterans and military spouses, including its goal to hire 2 million veterans and 200,000 military spouses by 2030. JPMorgan Chase alone has hired in excess of 18,000 veterans since 2011 and currently employs more than 3,100 military spouses.
• Creating opportunity for people with disabilities. The firm’s Office of Disability Inclusion continues to lead strategy and initiatives aimed at advancing economic opportunity for people with disabilities. In 2023, we joined lawmakers and business leaders in Washington, D.C., to show support for passage of the Supplemental Security Income (SSI) Savings Penalty Elimination Act. Modernizing the SSI program, by updating asset limits for the first time in nearly 40 years, would allow millions of people with disabilities who receive SSI benefits the opportunity to build their savings without putting their essential benefits at risk. We also provided business coaching to more than 370 entrepreneurs with disabilities.
• Virtual call centers. When we sought to expand our customer service specialists program across the United States, we turned to Detroit, launching our first virtual call center in 2022. Investments in Detroit’s workforce development infrastructure helped us hire 90 virtual customer service specialists for a program that has outperformed many of our traditional call centers around the world. Following this success, we expanded our hiring efforts and this virtual program to Baltimore to create new jobs that jump-start careers. And now we’re evaluating the possibility of expanding even further.
• Entrepreneurs of Color Fund. A critical challenge we have seen in so many communities is that traditional lending standards render too many entrepreneurs — particularly entrepreneurs of color and those serving these communities — ineligible for credit. In response, we helped launch the Entrepreneurs of Color Fund (EOCF) in Detroit, a lending program designed to help aspiring small business owners gain access to critical resources needed for growth that are often not equitably available — capital, technical assistance and mentorship, among others. These challenges aren’t unique to Detroit so we worked with community development financial institutions to replicate the EOCF program in 10 markets across the United States in 2023, deploying more than 2,900 loans and $176 million in capital to underserved entrepreneurs across the country.
• Senior business consultants. To help entrepreneurs and small businesses make the transition from community lending to accessing capital from traditional financial institutions, we created a new job — senior business consultant — to provide support. Senior business consultants in branches that focus on underserved communities offer coaching and help business owners with everything from navigating access to credit to managing cash flow to generating effective marketing. Since 2020, these consultants have mentored more than 5,500 business owners, helping them improve their operations, grow revenue and network with others in the local business community.
• Advancing Cities The organizing principles that define the business and community investments we make and how we best achieve an overall impact in local economies were heavily influenced by our experience in Detroit. Seeing Detroit’s comeback begin to take shape several years ago, we created Advancing Cities to replicate this model for large-scale investments to other cities around the world. From San Francisco to Paris to Greater Washington, D.C., we’ve applied what we learned in Detroit to communities where conditions are opportune for success and require deeper investments — where community, civic and business leaders have come together to solve problems and get results.
• JPMorgan Chase Service Corps. Ten years ago, we launched the JPMorgan Chase Service Corps to strengthen the capacity-building of nonprofit partners. We brought employees from around the world to Detroit to assist with its recovery — from creating a scoring model for a nonprofit to helping prioritize neighborhoods for development funding to devising an implementation plan for an integrated talent management system. Since that time, the Service Corps has expanded, with more than 1,500 JPMorgan Chase employees contributing 100,000 hours to support over 300 nonprofits globally.
• Community Centers/Branches and Community Managers. A local bank branch, especially in a low-income neighborhood, can be successful only when it fits the community’s needs. That is why over the last several years we have shifted our approach to how we offer access to financial health education, as well as low-cost products and services to help build wealth. Since 2019, we have opened 16 Community Center branches, often in areas with larger Black, Hispanic or Latino populations, and have plans to open three more by the end of 2024. These branches have more space to host grassroots community events, small business mentoring sessions and financial health seminars, which have been well-attended — to date, over 400,000 people have taken advantage of the financial education seminars. In each of these Community Center branches, we hired a Community Manager (who acts as a local ambassador) to build relationships with community leaders, nonprofits and small businesses. The Community Manager concept and practice have become so successful that we have also placed these managers in many of our traditional branches in underserved communities. We now have 149 Community Managers throughout our branch network.
• Work skills development. Detroit showed us how talent in communities is often overlooked. We saw this in the early days of our investment when we visited our partners at Focus: HOPE, a training program designed to help Detroiters develop skills for high-demand jobs. Quickly, it became clear that the training and education system in Detroit was disconnected from employers and their talent needs. By investing in programs like Focus: HOPE, we have been able to help bridge local skills gaps by training people for in-demand jobs in communities like Dallas, Miami and Washington, D.C. Between 2019 and 2023, we supported more than 2 million people through our extensive learning and career programming around the world.
• Increasing our rural investment. We are proud to be the only bank with branches in all 48 contiguous states, which include many rural communities. Nearly 17 million consumers living in rural areas hold over $100 billion in deposits with us and $175 billion in loans. We are also a leading wholesale lender in these communities, helping to fuel local economies through relationships with local companies, governments, hospitals and universities. Since 2019, we have made material progress in extending our footprint to reach more rural Americans, including expanding our branch network into 13 new states with large rural populations. Now we are raising the bar. With our new strategy, we have a goal to have a branch available to serve 50% of a state’s population within an acceptable driving distance, including in heavily rural states such as Alabama and Iowa. This focus is part of our recently announced plan to build an additional 500 branches and hire 3,500 employees over the next three years. Through this expansion, we will partner across lines of business and our Corporate Responsibility organization to help advance inclusive economic growth and bring the full force of the firm to America’s heartland.

We’ve nearly completed our five-year, $30 billion Racial Equity Commitment — it will now become a permanent part of our business.

What began in 2020 as a five-year, $30 billion commitment is now transforming into a consistent business practice for our lines of business in support of Black, Hispanic, Latino and other underserved communities. By the end of 2023, we reported over $30 billion in progress toward our original goal. However, our focus is not on how much money is deployed — but on long-term impact and outcomes. And going forward, these programs will be embedded in our business-as-usual operating system.

• Affordable rental housing. Through our Affordable Housing Preservation program, we approved program funding to date of approximately $21 billion in loans to incentivize the preservation of over 190,000 affordable housing rental units across the United States. Additionally, we financed approximately $5 billion for the construction and rehabilitation of affordable rental housing.
• Homeownership. In 2023, we expanded our $5,000 Chase Homebuyer Grant program to include over 15,000 majority Black, Hispanic and Latino communities — and in January 2024, we increased our grant amount to $7,500 in select markets. Since our grant program began in 2021, we have provided about 8,600 grants totaling $43 million. We also have provided home purchase and refinance loans in 2023 worth over $4.6 billion for more than 14,000 Black, Hispanic and Latino households across the economic spectrum.
• Small business. The Business Card Special Purpose Credit Program, launched in January 2023, has provided over 10,900 cards, totaling over $43 million in available credit lines to underserved entrepreneurs and communities across the United States.
• Supplier diversity. In 2023, our firm spent approximately $2.3 billion directly with diverse suppliers — an increase of 10% over 2022. As a part of our racial equity commitment, over $450 million was spent in 2023 with more than 190 Black-, Hispanic- and Latino-owned businesses.
• Minority depository institutions and community development financial institutions. To date, we have invested more than $110 million in equity in diverse financial institutions and provided over $260 million in incremental financing to community development financial institutions to support communities that lack access to traditional financing. JPMorgan Chase also helped these institutions build their capacity so they can provide a greater number of critical services like mortgages and small business loans.

We’re thoughtfully continuing our diversity, equity and inclusion efforts.

Of course, JPMorgan Chase will conform as the laws evolve. We will scour our programs, our words and our actions to make sure they comply.

That said, we think all the efforts mentioned above will remain largely unchanged. And, in fact, around the world, cities and communities where we do business applaud these efforts. We also believe our initiatives make us a more inclusive company and lead to more innovation, smarter decisions and better financial results for us and for the economy overall.

We are often asked in particular about “equity” and what that word means. To us, it means equal treatment, equal opportunity and equal access … not equal outcomes. There is nothing wrong with acknowledging and trying to bridge social and economic gaps, whether they be around wealth or health. We would like to provide a fair chance for everyone to succeed — regardless of their background. And we want to make sure everyone who works at our company feels welcome.

We want to articulate how we weigh in on social issues and what it means for our customers.

Before I comment about culture issues, I have a confession to make: I am a full-throated, red-blooded, patriotic, free-enterprise (properly regulated, of course) and free-market capitalist. Our company is frequently asked to take a position on an issue, rule or legislation that might be considered “cultural.” When that happens, we take a deep breath and study the matter. Many of the laws in question have many specific requirements, some of which you would agree with but not others. But we are being asked to support the entire law. In cases like these, we simply make our own statement that reflects our educated view and values; however, we do not give our voice to others.

We believe in the values of democracy, including freedom of speech and expression, and are staunchly against discrimination and hate. We have not turned away — and will not turn away — customers because of their political or religious affiliations nor would we tell customers how they should spend their money.

Our commitment to these ideals is also reflected in our employees. The talent at our firm is a vibrant mix of cultures, beliefs and backgrounds. We are, of course, fully committed to freedom of speech. There are things that you can say that would be permitted under freedom of speech but would not be allowed under our Code of Conduct. For example, we do not allow intimidation, threats or highly prejudicial behavior or speech. Our Code of Conduct clearly stipulates that certain statements and behavior, while allowed under freedom of speech, can lead to disciplinary action at our company — from being reprimanded to being fired.

WHAT WE LEARNED: A FIVE-POINT ACTION PLAN TO MOVE FORWARD ON THE CLIMATE CHALLENGE

In May 2023, we gathered with knowledgeable and influential people from the energy industry writ large to the government and financial services arena in Scottsdale, Arizona, for an action forum. The goal was to explore various aspects of the climate challenge and try to devise effective solutions that could help lead to meaningful progress. The climate challenge is immense and complex. Addressing it requires more than making simplistic statements and rules; rather, energy systems and global supply chains need to be transformed across virtually all industries. And there is also a deep need for new research and development. Energy systems and supply chains provide the foundation of the global economy and must be treated with care.

At the same time, the opportunity here is immense. The investment required to meet climate goals — estimated at over $5 trillion annually — could generate economywide growth and opportunity at a scale the world has not seen since the Industrial Revolution.

The task for industry, policymakers and finance is to help formulate solutions that support the transition to a low-carbon economy, balancing affordable, reliable access to energy with generating economic growth.

To find a way forward, we sought input from diverse stakeholders in pursuit of a North Star. In Scottsdale and in discussions with clients across industries about what’s needed to achieve a low-carbon economy, these five action steps and reforms were top of mind:

• Supportive government policy and leadership to advance the transition. Policy that promotes favorable economic conditions to make the transition viable is a critical first step for clients. This includes government leadership via mandates, incentives or subsidies to support jobs and investment in the transition; actions on permitting and interconnection reform; and regulatory clarity and certainty, especially around long-term investments. As one vital example, current grid infrastructure is insufficient to accommodate the growth in renewables.
• Public/private partnerships in scaling bankable projects. Scaling investments needs to happen both for commercially proven technologies (e.g., wind and solar) and for emerging technologies (e.g., green hydrogen, sustainable aviation fuel and carbon capture). Developing “bankable” clean energy projects will require the application of smart financial tools, as well as further policy support. It will take public/private partnerships and innovation to create catalytic forms of capital that can step into these gaps, absorb first-mover risks and provide the necessary funding. The cost of capital is too high for some companies — and public funds ought to be deployed in a smart way that effectively attracts private capital.
• Public education and engagement. Without question, clients told us that public commitment to and investment in energy-related infrastructure is one of the most important parts of combating the climate crisis and running their businesses. Supporting the buildout of energy-related infrastructure with speed and scale is critical. Public acceptance of building and advancing the infrastructure needed to meet climate goals is at the heart of progress. While the energy transition is poised to deliver benefits to communities across the world, securing acceptance and support to build clean energy infrastructure at scale is challenging. Access to job-creating renewable energy projects can help rural communities thrive by advancing local economies. Ensuring public support and social license to operate requires better engagement strategies, including widespread stakeholder education about the benefits of these technologies for local communities.
• Communication about concrete successes. Across industries, market participants need to do a better job of celebrating and championing concrete successes and tangible milestones. This includes highlighting success stories around emerging technologies and the complex nature of the carbon transition. Stakeholders also should better convey the benefits of clean energy — across all technologies — to help combat misinformation and foster a more informed dialogue.
• Work skills training. Businesses depend on healthy, thriving communities so the carbon transition needs to work for everyone. This includes helping to ensure that workers are trained in the skills for the future, such as through improved engineering schools and job training programs. Work across the entire supply chain is essential to moving at pace. As one example, the U.S. Bureau of Labor Statistics estimates we will need more than 70,000 additional electricians per year through 2031; it is currently unclear how the market will meet that demand. If the deployment of heat pumps and electric vehicle chargers accelerates, demand for electricians will be even higher. A concerted focus to train electricians can help the United States meet some of its climate goals while providing well-paying jobs that do not require a four-year college degree. Also, broadly speaking, businesses are in a better position to make investments with confidence when labor requirements across the value chain — from design and manufacturing to installation — are satisfied.

We recently reconsidered certain memberships.

JPMorgan Chase recently exited Climate Action 100+ and the Equator Principles. “Why?” we are asked. While we don’t necessarily disagree with some of the principles many organizations have, we make our own business decisions. We think we have some of the best-in-class environmental, social and risk standards because we have invested in our own in-house experts and matured our own risk management processes over the years. As a result, we are going to go our own way and make our own independent decisions, gathering the best learnings of experts in the field, and, of course, we will follow all legal requirements.

We are engaged but recognize our role: three more important points.

First, everyone should understand that conquering the climate problem needs proper government action, particularly around taxes, permitting, grids, infrastructure building and proper coordination of policies — we are not there yet. Second, there is no known technology that can fill the gap between our “aspirations” and the current trajectory of the world. We hope and believe that this will be found (for example, through carbon capture, improved batteries, hydrogen or other measures). This new technology will also require proper government research and development funding, as the effort cannot be accomplished by private enterprise alone. And third, we are going to use the word “commitment” much more reservedly in the future, clearly differentiating between aspirations we are actively striving toward and binding commitments.

For JPMorgan Chase to play the right role in tackling the climate challenge, we have organized a special group around the green economy and related infrastructure investment. This group will coordinate and inform our work across all established industry groups (from auto to real estate, energy, agriculture and others) and includes hundreds of employees devoted to these efforts.

POWERING ECONOMIC GROWTH IN FLORIDA

From Tallahassee to Miami and from Tampa to Palm Bay, JPMorgan Chase has been committed to Florida for more than 130 years and has enjoyed being the bank for all communities. Each year, we contribute billions of dollars to the economy, hire and train local residents, help to revitalize neighborhoods and remove barriers to opportunity for Floridians across the state. Our partnerships with businesses, nonprofits, government entities and community organizations have enabled us to drive sustainable impact and help them achieve their goals. We couldn’t be more proud to help make opportunity happen in Florida.

This year, we forged a relationship with Inter Miami CF, one of the most recognizable sports teams in the world. Through this partnership and the newly named Chase Stadium, we’re continuing to contribute to South Florida and its local communities. In Tampa, home to nearly 6,000 of our employees, we’re triggering an additional $210 million in economic activity and creating over 660 local construction jobs through the renovation of our Highland Oaks campus and downtown Tampa office. We’re proud that one-third of all Floridians do business with us through deposits, credit cards or a mortgage. Through each of our investments across the state, we’re ensuring that residents have the resources and tools they need to thrive.

Our support to government, higher education, healthcare and nonprofit organizations:

• We serve over 150 government, higher education, healthcare and nonprofit clients throughout the state, and over the last five years, we have provided more than $20.2 billion in credit and capital to them.
• Our clients range from the city of Jacksonville to the Orlando Utilities Commission, the University of South Florida, Broward Health and the District School Board of Pasco County — a decades-long client.
• We are the lead treasury bank for the Wounded Warrior Project, one of the largest veteran service organizations in the United States. Headquartered in Jacksonville, the organization caters to wounded veterans and service members who served in the military on or after 9/11.

Our support to investment and middle-market banking clients:

• Over the last five years, we have provided in excess of $318 billion in credit and capital to local clients, such as utility, technology and tourism companies.
• We have more than 12,500 large and midsized clients across the state.

Our support to local financial firms:

• Over the last five years, we have provided more than $24 billion in credit and capital for financial institutions, such as local banks, insurance companies, asset managers and securities firms.
• We bank over 50 of Florida’s regional, midsized and community banks, helping them play an essential role in maintaining the state’s economy and serve local communities.

Our support to small business:

• At the end of 2023, balances for loans extended to Florida’s small businesses totaled more than $1.2 billion — funds being used to help those businesses scale and grow, contribute to the economy and create local jobs.
• Across the state, we have over 654,000 small business customers.
• In 2023, our bankers and senior business consultants spent more than 375,000 hours advising and supporting Florida business owners.

Our support to consumer banking needs:

• We operate 1,445 ATMs and 410 branches across the state.
• In 2023, we supported more than 6.1 million customers with mortgages, auto loans and savings, checking and credit card accounts, giving JPMorgan Chase one of the largest consumer banking market shares in the state.
• We managed more than $70 billion in investment and annuity assets for local clients.

Our business and community investments:

• $3 million to The Miami Foundation’s Resilient 305: Building Prosperity Collaborative to increase access to quality jobs and develop small businesses through training, investments and capacity-building.
• $1.6 million to the Community Justice Project, which empowers community-based legal advocates to help delay displacement and improve conditions for housing stability for renters across nine Florida counties.
• A $1 million investment to Florida Memorial University, South Florida’s only HBCU, to help traditionally underresourced students pursue a career in technology.

Our support as a local employer:

• We employ more than 14,000 residents throughout the state, including nearly 1,900 veterans and over 660 people with a criminal background who deserve a second chance.
• In Florida, the average salary of our employees is more than $87,000 (plus a starting comprehensive annual benefits package worth nearly $17,600) compared with the statewide per capita income of nearly $40,300.

GIVING THE BANK REGULATORY AND SUPERVISORY PROCESS A SERIOUS REVIEW

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) was finished 14 years ago, and we believe it accomplished a lot of good things. But it’s been quite a while since then, and we’re still debating some very basic issues. It’s time to take a serious, hard, honest look at what has been done and what can be improved.

It’s good to remember that the United States has the best financial system in the world, with diversified, deep and experienced institutions, from banks, pension plans, hedge funds and private equity to individual investors. It has healthy public and private markets, transparency, rule of law and deep research. The best banking system in the world is a critical part of this, and, integrated with the overall financial system, is foundational to the proper allocation of capital, innovation and the fueling of America’s growth engine.

This is not about JPMorgan Chase — we believe we can manage through whatever is thrown our way. This is about the impact on all parts of the system — from smaller banks to larger regional banks that may not have the resources to handle all of these regulatory requirements. It’s also about the effect on the financial markets and the economy from the rapidly growing shadow banking system, as well as the ultimate impact on the customers, clients and communities we serve. This is about what’s right for the system.

The banking and financial system is innovative, dynamic and constantly changing.

The banking system is not static: There are startup banks, mergers, successful upstarts and fintech banks, and even Apple, which effectively acts as a bank — it holds money, moves money, lends money and so on. Nonbanks are competing with traditional banks, and, in general, this dynamism and churn are good for innovation and invention — with success and failure simply part of the robust process. Innovation runs across payments systems, budgeting, digital access, product extensions, risk and fraud prevention, and other services. Different institutions play different roles, and, importantly, small banks and big banks serve completely different strategic functions. Large banks bank multinational corporations around the world, make healthy markets, and wield technology and a product set that are the best in the world. A small bank simply cannot bank these same multinational governments and safely move the amount of money and securities that large banks do. Regional and community banks have exceptional local knowledge and presence and are critical in serving thousands of towns and certain geographies.

It is also important to recognize that the banking system as we know it is shrinking relative to private markets and fintech, which are growing and becoming increasingly competitive. And remember that many of these new players do not have the same transparency or need to abide by the extensive rules and regulations as traditional banks, even if they offer similar products — this often gives them significant advantage.

To deal with this fluid environment, banks of all sizes develop their own strategies, whether to specialize, expand geographically or embark on mergers and acquisitions. There are certain banking services where economies of scale are a competitive advantage, but not all banks need to become bigger to gain this benefit (there are many highly successful banks that are smaller). What is clear is that banks should be allowed to pursue their individual strategies, including mergers and acquisitions, as they see fit. Overall, this process should be allowed to happen — it’s part of the natural and healthy course of capitalism — and it can be done without harming the American taxpayer or economy.

While we all want a strong banking and financial system, we should step back and assess how all the regulatory steps we have taken measure up against the goals we all share. Since Dodd-Frank was signed into law in 2010, thousands of rules and reporting requirements written by 10+ different regulatory bodies in the United States alone have been added. And it would probably be an understatement to say that some are duplicative, inconsistent, procyclical, contradictory, extremely costly, and unnecessarily painful for both banks and regulators. Many of the rules have unintended consequences that are not desirable and have negative impacts, such as increasing the cost of credit for consumers (hurting lower-income Americans the most).

The whole process, including the Basel III endgame, could be much more productive, streamlined, economical, efficient and safe.

Both regulators and banks should want the same thing — a healthy banking system, serving its clients and striving for continuous improvement. We all should also want the enormous benefits that would come from good collaboration between regulators and bank management teams and boards.

Over time, these relationships have deteriorated, and, again, are increasingly less constructive. There is little real collaboration between practitioners — the banks — and regulators, who generally have not been practitioners in business. While we acknowledge the dedication of regulators who work with banks on a daily basis, management teams across the industry are putting in a disproportionate amount of time addressing requests for extra details, documentation and processes that extend far beyond the actual rules — and distract both regulators and management from more critical work. We should be more focused on the truly important risks for the safety of the system. And unfortunately, without collaboration and sufficient analysis, it is hard to be confident that regulation will accomplish desired outcomes without undesirable consequences. Instead of constantly improving the system, we may be making it worse. A few additional points:

• The Basel III endgame disadvantages American banks. The Basel III endgame has been 10 years in the making, and it still has not been completed. In my view, many of the rules are flawed and poorly calibrated. If the Basel III endgame were implemented in its current form, it would hamper American banks: As proposed, it would increase our firm’s required capital by 25%, making our requirement 30% higher than it would be under the equivalent European Union proposal. That means for every loan and asset financed in the United States by a major American bank, that bank would have to hold 30% more capital than any international competitor. The proposed regulations would also damage market making (see the following section). There are many other flaws but suffice it to say that much of the work being done today to analyze the effects should have been done before the proposed rulemaking. One of the single most important lessons from the great financial crisis is that there is enormous value to having a bank that is well-managed and has diverse revenue sources. Yet regulation since then both punishes consolidation and diversification — and punishes performance — through many features of the GSIB surcharge.
• Built over many years, the framework is now full of duplication. The following is only a partial list: American gold-plating and conceptual inconsistencies among Comprehensive Capital Analysis and Review (CCAR), recovery and resolution plans, liquidity requirements, global systemically important bank (GSIB) requirements, and safety and soundness principles. The many overlapping rules contribute to the bureaucracy that generates an extraordinary amount of make-work (an 80,000-page CCAR and shockingly another, coincidentally, 80,000-page recovery and resolution plan).
• The new rules do virtually nothing to fix what caused the failure of SVB and First Republic. For example, they don’t improve certain liquidity requirements, limit HTM accounting or reduce allowable interest rate exposure.
• The current regulatory approach to liquidity might simply run counter to the stated intent. Regulations should recognize the value and importance of lending and borrowing against good collateral and using central bank resources, such as the discount window. Adhering to current liquidity requirements permanently ties up good liquidity in a way that makes the system more fragile and more risky.
• It is not clear what the full intent of the Basel III endgame was – it will have unintended consequences. Without real analysis of expected outcomes, additional regulation will likely reduce the number of banks offering certain services and increase costs for all market participants and activity, including loans, market making and hedging (by farmers, airlines and countries, among others). And new rules might even increase consolidation as companies race to achieve economies of scale in certain products and services.

Unfortunately, some recent regulations are ending up in court. You can imagine that no one wants to sue their regulators. Banks would not sue if they did not think they were right — or if they thought they had any other recourse — which they effectively do not. This is definitely not what anyone should want. A more constructive relationship with regulators would reduce confusion and uncertainty and would lead to better outcomes for banks, their shareholders, and their clients, customers and communities.

Collaboration between banks and regulators could improve the use of resources and create better outcomes.

True collaboration could dramatically improve the banking system. For example:

• Redirect enormous resources from things that don’t matter to things that do. As mentioned, it takes 80,000 pages to describe a CCAR test and 80,000 pages to detail recovery and resolution. The talent and resources at the banks and regulators could be better used elsewhere. Such overload is distracting and takes your eye off the ball on real, emerging risks, including China, trade, payment systems and cybersecurity, among others.
• Reduce bureaucratic processes that provoke a tendency to herd mentality. For example, CCAR is just a point-in-time stress test, and it can lull you into a false sense of security — for reference, we do more than 100 stress tests each week. On interest rate exposure, focusing on the documentation of details may stop you from thinking about big interest rate exposure. Sometimes analyzing “what ifs” and fat tail risks is better than excessive and rigid models and documentations.
• Examine risks outside the regulatory system that are rarely analyzed and largely unaddressed. These risks include data and privacy, as well as consumer banking and payment systems, which are growing fast in the unregulated market. In addition, there are potential risks from private credit markets (which I talk about later in this section).
• Let’s imagine what’s possible with real collaboration. Working together, we can improve how the FDIC manages failing institutions, how to limit contagion and restore confidence to depositors, how liquidity requirements can create more flexible funding for banks under stress, how the banking and Federal Reserve’s payment system can become more interoperable, how clearinghouse risk can be reduced, how stress tests can protect the system from a wider variety of outcomes, how costs and therefore consumer costs can be reduced (not increased), how anti-money laundering requirements can be simplified and improved at the same time, and how financial products can be brought to the unbanked. We can fix the housing and mortgage markets. For example, mortgage regulations around origination, servicing and securitization could be simplified, without increasing risk, in a way that would reduce the average mortgage by 70 or 80 basis points. The Urban Institute estimates that a reduction like this would increase mortgage originations by 1 million per year and help lower-income households, in particular, buy their first home, thereby starting them on the best way to build household net worth. There are many more things that can be improved — and we really should start working on them.

We need a detailed review and probably a complete revamp.

I know this might be wishful thinking, but now would be a good time to step back and have a thorough and candid review of the thousands of new rules passed since Dodd-Frank. After this review, we should ask what is it that we really want: Do we want to try to eliminate the possibility of bank runs? Do we want to change and create liquidity rules that would essentially back most uninsured deposits? Do we want the mortgage business and leveraged lending business to be inside or outside the banking system? Do we want products that are inside and outside the banking system to be regulated the same way? Do we want to reasonably give smaller banks a leg up in purchasing a failing bank? And while Dodd-Frank did some good things, shouldn’t we take a look at the huge overlapping jurisdictions of various regulators? This overlap creates difficulties, not only for banks, but for the regulators, too. Any and all of this is achievable, and, I believe, could be accomplished with simpler rules and guidelines and without stifling our critical banking system.

PROTECTING THE ESSENTIAL ROLE OF MARKET MAKING (TRADING)

Before we discuss market making and financial markets, readers should understand that market making occurs in almost all businesses. There are healthy markets in farm animals, foreign products, commodities, energy, logistics, healthcare and so on. Healthy markets increase customer choice and reduce cost. They almost always involve holding inventory and taking some risk, which is simply a part of the process. America’s financial markets are the biggest in the world — U.S. public debt and equity markets total $137 trillion, constituting the biggest “market” in the world, and are larger than America’s gross domestic product (GDP) of $27 trillion.

Market participants are not “Wall Street.” They are large and small, mainly sophisticated, global investors (pension plans, mutual funds, governments and individuals) representing retirees, veterans, individuals, unions, federal workers and others. They all benefit from our efficient, low-cost and transparent markets.

Some regulators seem to think that market making is a speculative, hedge fund-like activity — and this thinking is what might be leading them to constantly increase capital requirements. The proposed capital rules could fundamentally alter market-making activities that are critical to a thriving economy, particularly in difficult markets when market making is even more important . The new rules would raise capital requirements by 50% for major banks — which could undermine market stability, make banking services costlier and less accessible, and push even more activity to a less regulated banking system.

Our financial system and markets are the best in the world and benefit ALL participants; exceptionally good market making in the secondary market makes our primary markets the best in the world.

We should recognize that the United States has the biggest, deepest and most liquid capital markets in the world. For these markets to function, it is critical for transparency and liquidity to be in the secondary market . Market making provides this, promoting the flow of capital to real economy investments and supporting all sectors of the economy, including companies, state and local governments, universities, hospitals, pension plans and overall job creation. Without market making in the secondary market, it would be extremely difficult for companies to raise capital through the primary market — equity and debt offerings — which have totaled approximately $3.6 trillion on average over the past few years. The incredible strength of these markets enables companies of all sizes to grow and expand especially during times of volatility and stress. It also enables consumers to access cheaper credit and governments (local, state and federal) to reduce their borrowing costs.

JPMorgan Chase spends $700 million per year in extensive research coverage of nearly 5,200 companies across 83 countries. This massive effort continuously educates investors and decision makers around the world and often leads to improved governance and management. It also critically complements the firm’s market-making activities and further promotes transparency, enabling investors to make thoughtful choices around investing in capital markets.

I would also like our shareholders to know that our market making is backed by approximately $7 billion in support expenses, including over $2 billion in technology spend alone each year. This investment allows us to maintain global trading systems and constantly improve upon risk management and efficiency.

JPMorgan Chase deploys approximately $70 billion in capital to maintain our Markets franchise. This capital supports $500 billion in securities inventory (largely hedged) — and this inventory allows us to buy and sell $2 trillion (notional) in securities daily for our clients.

Market making entails risk but is not particularly speculative.

The main objective of market makers is to continuously quote prices and diligently manage an inventory to transact at those prices, which includes assuming certain risks to support heavy volumes and orderly trading. Market makers have a moral obligation to try to make markets in good times and in bad. Part of our brand promise is to stand ready as the willing buyer and seller. In this, we have never failed. In addition, in most cases regarding government debt, where we serve as a government securities dealer, we are legally obligated to make markets. This constant visibility into prices provided by market makers fosters investor confidence, keeps fees low and promotes economic growth by attracting more investors.

Many large market participants — for example, hedge funds and high-frequency traders, among others — have no obligation to make markets. In fact, many of these market participants often “step out” of the markets and dramatically reduce liquidity specifically when market conditions are difficult.

Market making is not particularly speculative since market makers generally hedge their positions, as you will see from some real life examples of the economics and risks. We earn revenue of approximately $100 million on a typical day. In the average year, the total is nearly $30 billion. On our $2 trillion in notional daily trading, this amounts to only one hundredth of a cent charged to the investor for these services — an extraordinarily low cost compared with any other market in the world.

Now let’s take a look at the actual risk and results versus the hypothetical risk and results. The hypothetical global market shock of the CCAR stress test has us losing $18 billion in a single day and never recovering any of it. Let’s compare that to actual losses under real, actual market stress.

Now consider these historical data points: First, over the last 10 years, the firm’s market-making business has never had a quarterly loss and has lost money on only 30 trading days. These loss days represent only 1% of total trading days, and the average loss on those days was $90 million. Second, when markets completely collapsed during the COVID-19 pandemic (from March 2 through March 31, 2020, the stock market fell 16%, and bond spreads gapped out dramatically), J.P. Morgan’s market-making activities made money every day prior to the Federal Reserve’s major interventions, which stabilized the markets. During that entire month, we lost money on only two days but made $2.5 billion in Markets revenue for the month. And third, in the worst quarter ever in the markets following the 2008 failure of Lehman Brothers, we lost $1.7 billion, but we made $5.6 billion in Markets revenue for the full year. The firm as a whole did not lose money in any quarter that year. In 2009, there was a complete recovery in Markets, and we made $22 billion in Markets revenue.

You can see that our actual performance under extreme stress isn’t even close to the hypothetical losses of the stress test.

Another major fallacy is that derivatives are objects of financial destruction. In reality, derivatives are an essential part of managing financial risk and are used by investors, corporations, farmers, businesses, countries, governments and others to manage their risks. And more than 85% of derivatives are fairly basic forms of foreign exchange or interest rate swaps.

One last fallacy is that the repo markets are all about speculation. While it’s true that repo is used by certain investors to leverage up their positions, about 75% of repo is essential to normal money market functioning, i.e., is done by broker-dealers financing their actual inventory positions, money market funds investing their cash backed by highly rated collateral and clients hedging their positions.

Market makers add confidence, liquidity and transparency to U.S. capital markets — market making helps stabilize markets and can reduce volatility.

In addition, more liquidity, not less liquidity, will be needed to maintain market stability. Large banks keep an inventory of securities they can deploy in times of stress to help soothe markets; however, with the implementation of new regulations, banks now hold 70% as much inventory in securities as they did before the 2008 financial crisis, while the total size of the market has almost tripled. Higher capital requirements will accelerate this trend even further, impacting banks’ ability to deliver support to clients and markets in times when it is needed the most.

Washington’s Basel III endgame proposal damages market making, hurts Americans and drives activity to less transparent, less regulated markets.

If this proposal is enacted as drafted:

• Everyday consumer goods could be impacted. Households contending with inflation could also feel the effects of higher capital requirements on market-making activities when they shop. From beverage companies that need to manage aluminum costs to farms that need to protect against environmental risks, if the cost of hedging those risks increases, it could be reflected in what consumers pay for everything from a can of soda to meat products.
• Mortgages and small business loans will be more expensive. Consumers seeking a mortgage — including first-time homebuyers and historically underserved, low- to moderate-income borrowers with smaller down payments — will face higher interest rates or will have a tougher time accessing one. This will occur not only because the cost of originating and holding these loans is higher but also because the cost of securitizing them will rise for banks, nonbanks and government agencies. Not only that, but the proposal will likely lead to reductions in the size of unfunded credit card lines, which will put pressure on FICO scores and thereby make it more difficult for some people to access other forms of retail credit such as mortgages. Again, this will have the greatest impact on low- to moderate-income borrowers who rely most heavily on credit cards for day-to-day spending and to build their credit history. It could even be argued that existing regulations go too far and that there is an opportunity to help underserved communities by dialing down regulations that lead to higher borrowing costs. This should be studied and the pros and cons analyzed. The same can be said for small business loans, which will become more expensive and less accessible.
• Saving for retirement or college will be harder. The cost of products that families count on to save for retirement or college will go up as a result of this proposal. Asset managers, money market funds and pension funds all buy, sell and safekeep securities and other financial instruments for American investors. Under the proposed rules, the cost of banking products used on behalf of clients each day — including brokerage, advisory, clearing and custody services — will go up and feed through to customers. That will lead to lower returns on retirement accounts, college funds and other long-term savings.
• Government infrastructure projects and corporate development will become more expensive. Federal, state and local governments, as well as corporations and other institutions, rely on large banks for access to U.S. capital markets to fund development. If accessing capital markets becomes more expensive, it will have a ripple effect on the hiring of American workers, investment in research and development, and funding to build hospitals, roads and bridges, including the planned infrastructure projects from the Inflation Reduction Act (IRA).

More market activity will move to unregulated institutions, out of sight from regulators and without the same level of consumer protections that Americans expect from their banks. Other market participants that don’t have holistic client relationships are less likely to provide liquidity to help stabilize markets.

In volatile times, banks have been able to intermediate to help their clients and to work with the regulators. With new regulations, they may be less able to do so. There have been several times in the past few years where banks had ample liquidity and capital but were unable to rapidly increase their intermediation in the markets due to very rigid liquidity and capital requirements. Finally, the proposed rules increase the chance that the Federal Reserve will have to step in again — and this is not something they should want to do on a regular basis but only in an extreme emergency.

Staying Competitive in the Shrinking Public Markets

In previous letters, I have described the diminishing role of public companies in the American financial system. From their peak in 1996 at 7,300, U.S. public companies now total 4,300 — the total should have grown dramatically, not shrunk. Meanwhile, the number of private U.S. companies backed by private equity firms — which does not include the rising number of companies owned by sovereign wealth funds and family offices — has grown from 1,900 to 11,200 over the last two decades. This trend is serious and may very well increase with more regulation and litigation coming. Along with a frank assessment of the regulation landscape, we really need to consider: Is this the outcome we want?

There are good reasons for private markets, and some good outcomes result from them. For example, companies can stay private longer if they wish and raise more and different types of capital without going to the public markets. However, taking a wider view, I fear we may be driving companies from the public markets. The reasons are complex and may include factors such as intensified reporting requirements (including investors’ growing needs for environmental, social and governance information), higher litigation expenses, costly regulations, cookie-cutter board governance, shareholder activism, less compensation flexibility, less capital flexibility, heightened public scrutiny and the relentless pressure of quarterly earnings.

Along with the universal proxy — which makes it easier to put poorly qualified directors on a board — the pressures to retreat from the public market are mounting. In addition, corporate governance principles are becoming more and more templated and formulaic, a negative trend. For example, proxy advisors may automatically judge directors unfavorably if they have a long tenure on the board, without a fair assessment of their actual contributions or experience. Another example is the constant battle by some proxy advisors who try to split the chairman and CEO role when there is no evidence this makes a company better off — in fact, today, lead directors generally hold most of the authorities previously assigned to the chairman. The governance of major corporations is evolving away from guidance by governance principles that focus on a company’s relationship to long-term economic value toward a bureaucratic compliance exercise. Good corporate governance is critical, and a little common sense would go a long way.

THE PRESSURE OF QUARTERLY EARNINGS COMPOUNDED BY BAD ACCOUNTING AND BAD DECISIONS

There is something very positive about detailed and disciplined quarterly financial and operating reporting. But company CEOs and boards of directors should resist the undue pressure of quarterly earnings, and it is clearly somewhat their fault when they don’t. However, it is naïve to think that the pressure doesn’t exist because companies that “disappoint” can face extensive criticism, particularly those with a new or young CEO. It’s possible for companies to take short-term actions to increase earnings, such as selling more product cheaply at the end of a quarter, cutting certain investments that may be terrific but can show accounting losses in the first year or two, or just deploying more aggressive accounting methods at times. Once shortcuts like this begin, people all over the company understand that it is okay to “stretch” to meet your numbers. This could put you on a treadmill to ruin. Obviously, a company should not resort to these tactics, but it does happen in the public markets — and it’s probably less likely in the private markets.

THE HIJACKING OF ANNUAL SHAREHOLDER MEETINGS

One of the reasons it is less desirable to be a public company is because of the spiraling frivolousness of the annual shareholder meeting, which has devolved into mostly a showcase of grandstanding and competing special interest groups. We should treat shareholders with tremendous respect — and we do. At JPMorgan Chase, we are constantly talking with our investors — our directors, our lead director and our corporate governance experts visit most of our major investors whether they be direct owners or asset managers who manage the money for others. Meeting with your shareholders and investors is critical, but the annual shareholder meeting itself has become ineffective. We should try to come up with a far more constructive alternative.

THE UNDUE INFLUENCE OF PROXY ADVISORS

There are essentially two main proxy advisors in the United States. One is called Institutional Shareholder Services (ISS), and the second is called Glass Lewis. These proxy advisors started out providing reams of data from companies to help their institutional investor clients vote on proxy matters (information on executive compensation, stock returns, detail on directors, policies and so on). However, they soon also began to provide advice on how shareholders should vote on proxy matters. And, in fact, institutional investors generally execute their voting on an ISS or Glass Lewis platform, which often includes a clear statement of the advisory service’s position.

I should also point out, because it may be relevant, that ISS is owned by Deutsche Boerse, a German company, and Glass Lewis is owned by Peloton Capital, a Canadian private equity firm. I question whether American corporate governance should be determined by for-profit international institutions that may have their own strong feelings about what constitutes good corporate governance.

While asset managers and institutional investors have a fiduciary responsibility to make their own decisions, it is increasingly clear that proxy advisors have undue influence.

Asset managers (who manage money on behalf of others) and institutional investors (e.g., pension plans and endowments) may rely on a variety of information sources to support their valuation decision-making process. While data and recommendations may form pieces of the information mosaic, their votes should ultimately be based on an independent application of their own voting guidelines and policies. To the extent they use recommendations from proxy advisors in their decision-making processes, they should disclose that they do so and should be satisfied that the information upon which they are relying is accurate and relevant. However, many companies would argue that this information is frequently not balanced, not representative of the full view and not accurate. In addition, companies complain that they often cannot get the data corrected, and, therefore, a vote may go uncorrected.

Almost all asset managers receive proxy advisor data and recommendations; while some asset managers vote completely independently of this information, the majority do not. Most asset managers have formed corporate governance or stewardship committees that are responsible for their voting, and these committee positions are often held not by portfolio managers and research analysts (i.e., the people buying and analyzing the individual securities) but by stewardship experts. While it is good to have stewardship experts, the reality is that many of these committees default large portions of what they do to proxy advisors and, more troubling, make it harder for actual portfolio managers to override this decision making.

Some have argued that it’s too hard and too expensive to review the large number of proxies and proxy proposals — this is both lazy and wrong. If issues are important to a company, they should be important to the shareholder — for the most part, only a handful of proposals are important to companies.

We are making enhancements to J.P. Morgan Asset Management’s proxy voting processes to amplify the role of portfolio managers and to address the perception of asset managers’ reliance on third-party advisor voting recommendations.

Enhancements to the firm’s internal proxy voting process will include:

• More portfolio manager participation in proxy committee decision making. The firm has significantly expanded the representation of portfolio managers on its North American Proxy Committee in an effort to increase the diversity of viewpoints represented on the committee. As part of this change, and in recognition that portfolio managers, as fiduciaries, may differ in their views on how to vote on particular proposals depending on a mandate’s investment strategy and guidelines, we are broadening our capabilities to support voting results that may vary across our platform.
• Diminished role of proxy advisor recommendations. J.P. Morgan Asset Management makes its own independent proxy voting decisions (based on deep fundamental research) and stands behind the depth and rigor of its processes and historical information advantage. In most cases, the firm will only use proxy advisory firms for research, data and technical mechanics of vote transmission and not for outsourced recommendations. By the end of 2024, J.P. Morgan Asset Management generally will have eliminated third-party proxy advisor voting recommendations from its internally developed voting systems. Additionally, the firm will work with third-party proxy voting advisors to remove their voting recommendations from research reports they provide to J.P. Morgan Asset Management by the 2025 proxy season.
• Other enhancements. We are working to give a company and its management even greater access to the ultimate decision makers; to raise critical issues to a company as early as possible in a constructive and proactive way; and to be willing to tell companies how we have voted once our decision is made rather than waiting until votes are finally counted.

Taken together, these steps are designed to respond to a growing perception (and, I believe, reality) that the asset management industry generally places undue reliance on proxy advisors in how proxies are voted. We believe these actions will strengthen our relationships with our clients and with companies while helping to build trust between shareholders, investors and companies.

THE BENEFITS AND RISKS OF PRIVATE CREDIT

I have already mentioned some of the benefits of private credit, and I’ll now mention some more. Many people in the private credit arena are very smart and creative and want to help the companies they invest in navigate through market shoals. They can move quickly, discreetly and flexibly. Most generally understand that bad accounting drives bad decisions, and their goal is to make the right decisions for the future of the company.

On the other hand, not all players are that good. And problems in the private credit market caused by the bad players can leak onto the good ones, even though private credit money is locked up for years. If investors feel mistreated, they will cry foul, and the government will respond by putting a laser focus on the business. It’s a reasonable assumption that at some point regulations will focus on the private markets as they do on the public markets.

This scrutiny will include a look at how private credit values its assets, which isn’t as transparent as public market valuations. In addition, private market loans commonly lack liquidity in the secondary market and are not generally supported by in-depth market research.

New financial products that grow extremely rapidly often become an area of unexpected risk in the markets. Frequently, the weaknesses of new products, in this case private credit loans, may only be seen and exposed in bad markets, which private credit loans have not yet faced. When credit spreads gap out, when interest rates go up and when some leveraged companies suffer in the recession, we will find out how those loans survive stress testing. In addition, they can create a little bit of a “credit crunch” for borrowers since it might be hard for private creditors to roll over loans under those conditions. Under stress conditions, private creditors would have to charge exorbitant prices that companies simply cannot afford in order to book the new loan at par. Banks are in a slightly different position.

A BANK’S STRENGTH: PROVIDING FLEXIBLE CAPITAL

Banks generally try to be there for their borrowers in difficult times — striving to roll over loans, renegotiate terms and raise additional capital. Banks do this for multiple reasons: They normally feel an obligation to help their clients, they have long-term relationships and they can commonly earn other sources of revenue from client-driven transactions. Banks can also flex their capital and lending base as needed by their clients. This is because a bank can and should make decisions to help companies through good times and bad, seeking to retain them as long-term clients across many areas of the bank. They can and do take “losses” that help the client maintain the franchise. But an asset manager must act as a “fiduciary” of other people’s money and cannot lend based on a moral obligation or potential future relationship.

Recently, we have been witnessing a convergence between the public and private markets. But it’s too soon to say how this ultimately will play out, particularly if we go through a recessionary cycle.

Management Lessons: Thinking, Deciding and Taking Action – Deliberately and with Heart

I always enjoy sharing what I’ve learned from watching others, reading and experiencing through my own journey.

BENEFITING FROM THE OODA LOOP

The military, which often operates in extreme intensity of life and death and in the fog and uncertainty of war, uses the term “OODA loop” (Observe, Orient, Decide, Act — repeat), a strategic process of constant review, analysis, decision making and action. One cannot overemphasize the importance of observation and a full assessment — the failure to do so leads to some of the greatest mistakes, not only in war but also in business and government.

A full assessment is critical.

To properly manage any business situation, you need to perform a full and complete assessment of it. In business, you have to understand your competitors, their distribution, their economics, their innovations, and their strengths and weaknesses. You also need to understand customers and their changing preferences, along with your own costs, your people and their skills. Then there’s knowing how other factors fit in, like technology, risk, motivations … hope you get the point. For countries, you need a thorough grasp of their economies, strengths and weaknesses, population and education, access to raw materials, laws and regulations, history and culture. Research, data and analytics should be at a very detailed level and constantly reassessed. Only after you complete this diligent study can you start to make plans with a high degree of success.

Get on the road – it builds knowledge and culture.

I have frequently wondered about all the nonstop road trips, client meetings, briefings, greetings, bus trips, and visits to call centers, operating centers and branches, regulators and government officials, among others: Did they make a difference? The answer is absolutely yes because they enabled a process of constant learning, assessment and modification of best practices — gaining insights from employees to clients to competitors. Employees will tell you what you are doing well or poorly if you simply ask them, and they know you want to hear the real answer. Curiosity is a form of humility — acknowledging that you don’t know everything. Responding to curiosity allows other people to speak freely. Facts and details matter and inform a deeper and deeper analysis that allows you to continually revise and update your plans. This, of course, also means that you are constantly admitting prior mistakes.

You need to shed sacred cows, seek out blind spots and challenge the status quo.

Very often companies or individuals develop narratives based upon beliefs that are very hard to dislodge but are often wrong — and they can lead to terrible mistakes. A few examples will suffice. Stripe, Inc. built a payments business by working with developers — something we never would have imagined but might have figured out if we had tried to seek out what others were doing in this area. Branches were being closed, both at Bank One and Chase, because the assumption was that they would not be needed in the future. We underinvested for years in the wealth management business because we were always focused on the value of deposits versus investments. Question everything.

Use your brains to figure out the truth — not to justify what you already think.

It’s often hard to change your own attitudes and beliefs, especially those you may have held on to for some time. But you must be open to it. When you learn something that is different from what you thought, it may affect many conclusions you have, not just one. Try not to allow yourself to become rigid or “weaponized,” where other employees or interest groups jazz you up so much that you become a weapon on their behalf. This makes it much harder to see things clearly for yourself. When people disagree with you, seek out where they may be partially right. This opens the door for a deeper understanding and avoids binary thinking.

It's hard to see certain long-term trends, but you must try.

There is too much emphasis on short-term, monthly data and too little on long-term trends and on what might happen in the future that would influence long-term outcomes. For example, today there is tremendous interest in monthly inflation data, although it seems to me that every long-term trend I see increases inflation relative to the last 20 years. Huge fiscal spending, the trillions needed each year for the green economy, the remilitarization of the world and the restructuring of global trade — all are inflationary. I’m not sure models could pick this up. And you must use judgment if you want to evaluate impacts like these.

Also, a block of time as short as one year is an artificial framework for judging the impact of long-term trends that could easily play out over years. A helpful exercise is to think “future back,” in which you imagine different future outcomes, including the ones you want, and then work backward to events that are happening today (or that might happen or that you cause to happen), closely examining the connections between those events and your projected or desired outcomes. Those connections inform your risk and R&D planning. Similarly, when companies compare the attributes of their products and services with their competitors, they usually only consider where they are versus their competitors. But nothing is static — they should consider where their competitors will be in the future. Conditions are always changing, crises are always emerging. When analyzing the playing field, it is better to assume that your competitors are strong and are already in the process of improving and innovating. This minimizes the chance of arrogance leading to complacency.

DECISION MAKING AND ACTING (HAVE A PROCESS)

There is a time for an individual to decide and act.

Sometimes you should take the time to measure twice and cut once. And then sometimes making a quick decision is better than delaying. You should try to distinguish between the two. For example, with decisions that are hard to reverse, it’s usually better to go slow. With other decisions where you can test, learn, probe and change direction, it’s often better to go fast. It’s been my experience that it’s hard for some people to actually decide and act. This could be from analysis paralysis, lack of “perfect” information, fear of failure or the feeling that full consensus is needed before a decision can be reached. But whatever it is, it can slow down and possibly seriously damage a company.

To get people to think like decision makers and take a strong point of view, we like to ask, “What would you do if you were king or queen for a day?” It helps shift the direction to individual decision making. We also ask questions like, “What would you wish for if you knew X was going to happen?” (for example, higher interest rates). Decision making takes a mix of courage, grit and guts.

One exercise that I find useful (and sometimes painful) is to draw up a list of important decisions that need to be made — the ones I often avoid confronting. So I take time every Sunday to think about these tough issues and almost always make progress. Progress doesn’t always mean that you come to the final conclusion — sometimes it’s just a very rational next step that can put you on a path to the final decision.

Try to have a good decision-making process.

Try to give yourself the time to decide. Make sure you speak with the right people and make sure the right people are in the room. Information should be fully shared. People should be made very comfortable with open debate. Quite often, the “right” answer is simply waiting to be found — you don’t have to guess.

Crowdsourcing, compromise, consensus and committees have benefits and risks.

There are huge benefits to crowdsourcing intelligence. It is a form of full assessment, a strategy for getting the best ideas and challenging the status quo. We should do this for almost every major decision. It is perfectly fine on some occasions to compromise and gain consensus, particularly on decisions that are not critical and can easily be reversed. Often people spend too much time debating issues that are simply not that important; it’s better to decide and move on. Also, before you compromise, you should know exactly what you want to achieve and the consequences of any tradeoffs. However, sometimes compromise and consensus cannot work and only lead to a feel-good decision that is probably wrong — this could be the road to ruin.

The use of committees can be good when done properly. For example, if our risk committees could do a full assessment and crowdsource all potential risks, that would lead to better decision making. I will give one very personal and painful example, which is when we had a major trading scandal, called The London Whale. The scandal was not caused by the complexity of the trade but rather the failure to go to the proper Risk committee for a thorough review, which should have happened but didn’t. I have no doubt that had the trade been raised there, the flaws would have been exposed immediately, thereby dramatically reducing or eliminating the problem. On the other hand, the opposite can happen when a committee, with everyone staring at each other, devolves into herd-like behavior with people looking for confirmation and ending up with a compromise that is a poor choice.

Good leadership involves great observation and the ability to act, but there is more …

THE SECRET SAUCE OF LEADERSHIP (HAVE A HEART)

You need to earn trust and respect with your employees.

You can be great at assessment, you can be brilliant and you may often be willing to act. But all of that is not good enough for “complete” leadership. To become a true leader, you need to be trusted and you must earn your respect, every day. People have to know that you do not have ulterior motives and that you’re trying to do the right thing — not trying to burnish your personal reputation. Good people want to work for people they respect, and they will not respect people who take all the credit and share all the blame. People need to know that even when you make mistakes, you’re willing to admit them and take corrective action. And there is more …

The importance of vision, communication and inspiration.

The reason I’ve always hesitated to talk about “vision” is because often it is the basic BS of corporate speak — that somehow if you impart your vision to people, they will take the mountain. What it really is all about is this: After you’ve done your full assessment and decision making, you can then continuously educate, explain, train, simplify, propel and fight. But this only works if people know you are in the trenches with them, if they understand the mission and if they are there side by side with your effort.

We know that bureaucracy can lead to politics, corporate stasis and terrible decisions. So you can communicate your vision about how to fight bureaucracy by telling stories about the silly things we do — but with a smile — and then by showing people that you will actually fix the problems.

Finally, your vision needs to be clear, coherent and consistent. Within an organization, people very quickly pick up the pattern of management saying one thing but doing another. Because if words and actions are inconsistent (for example, and I could give many, when we say we want employees to be treated with respect, but we allow a jerk to be their boss), confidence in leadership will be eroded.

Heart cannot be overstated.

Heart matters. And it makes a difference when people know and see that you actually care. One example: Many years ago when I was new to JPMorgan Chase, I learned that the company’s security guards had been outsourced — to save money. Since after outsourcing, when the same guards continued coming to work every day at the same salary, I wondered, “How could this be?” (FYI, this was brought to my attention by the head of the Service Employees International Union, who came to see me over the objection of my management team.) The reason we were saving money is because the healthcare benefits were cut in half for the guards and their family members (currently worth approximately $15,000 a year), and the savings were split with us. This was a heartless thing to do — and the second I found out, I reversed the decision. JPMorgan Chase’s success will not be built off the backs of our guards — it will be the result of fair treatment of all of our employees — and we’re thankful that many of those guards are still with our company today.

You know heart and soul when you see it in effect on sports teams or with “the boys in the boat” — it’s a beautiful thing to watch. It’s not as obvious, but it happens in business, too.

It’s essential to build trust with your customers, constituencies and, yes, even competitors.

Of course, I’m not bringing this up as a matter of corporate governance or a corporation’s purpose: A business should, over the long run, try to maximize shareholder value. It is completely obvious that running a decent business —treating everyone ethically and earning trust and respect in all your communities — is not only fundamental to shareholder value but also to a healthy society.

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April 9, 2024

U.S. Postal Service Recommends New Prices for July 2024

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WASHINGTON, DC — Today, the U. S. Postal Service filed notice with the Postal Regulatory Commission of mailing services price changes to take effect July 14, 2024. The new rates include a 5-cent increase in the price of a First-Class Mail Forever stamp from 68 cents to 73 cents.

The proposed adjustments, approved by the governors of the Postal Service, would raise mailing services product prices approximately 7.8 percent. If favorably reviewed by the commission, the price changes would include:

The additional-ounce price for single-piece letters increases from 24 cents to 28 cents. The Postal Service is also seeking price adjustments for Special Services products, including Certified Mail and money order fees. Notably, there will be no price increase for Post Office Box rental fees, and the Postal Service will apply a price reduction of 10 percent for postal insurance when mailing an item.

As changes in the mailing and shipping marketplace continue, these price adjustments are needed to achieve the financial stability sought by the organization’s Delivering for America 10-year plan. USPS prices remain among the most affordable in the world.

The commission will review the changes before they are scheduled to take effect. The complete Postal Service price filing, with prices for all products, can be found on the commission’s website under the Daily Listings section . The Mailing Services filing is Docket No. R2024-2. The price tables are also available on the Postal Service’s Postal Explorer website at  pe.usps.com/PriceChange/Index .

Postal Products

Customers may purchase stamps and other philatelic products through the Postal Store at usps.com/shopstamps , by calling 844-737-7826, by mail through USA Philatelic or at Post Office locations nationwide. For officially licensed stamp products, shop the USPS Officially Licensed Collection on Amazon .

The United States Postal Service is an independent federal establishment, mandated to be self-financing and to serve every American community through the affordable, reliable and secure delivery of mail and packages to 167 million addresses six and often seven days a week. Overseen by a bipartisan Board of Governors, the Postal Service is implementing a 10-year transformation plan, Delivering for America , to modernize the postal network, restore long-term financial sustainability, dramatically improve service across all mail and shipping categories, and maintain the organization as one of America’s most valued and trusted brands.

The Postal Service generally receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.

For USPS media resources, including broadcast-quality video and audio and photo stills, visit the USPS Newsroom . Follow us on X , formerly known as Twitter; Instagram ; Pinterest ; Threads and LinkedIn . Subscribe to the USPS YouTube Channel and like us on Facebook . For more information about the Postal Service, visit usps.com and facts.usps.com .

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April 7, 2024

The Solar Eclipse Is Almost Here! Everything You Need to Know

Here’s how to pick a viewing spot, stay on top of the weather and pack the right gear to see the total solar eclipse on April 8

By Clara Moskowitz

john finney photography/Getty Images

This article is part of a special report on the total solar eclipse that will be visible from parts of the U.S., Mexico and Canada on April 8, 2024.

CONCAN, Tex.—After months of waiting, planning and anticipating, the eclipse is nearly upon us. This rare heavenly alignment will be a marvel to look at for anyone lucky enough to have clear skies at the time. For a few minutes, the face of the moon will perfectly overlap that of the sun from our perspective on Earth, blocking out most of the light from our star and leaving only the wispy white glow of the sun’s outer atmosphere, called the corona .

This phase, called, totality, will be dramatic. The sky will get completely dark, like the dead of night, the temperature will drop, and birds, insects and other creatures may react strangely . Just as you get used to the sight, the moon will edge away, letting stunningly bright beads of light through, and then back off to reveal more and more of the sun’s disk.

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“The most exciting parts of a total solar eclipse are the sudden twilight effect that occurs in the middle of the day, the appearance of the corona and sometimes large, bright features erupting from the sun’s surface called prominences,” says Hagai Perets, an astrophysicist at the Technion–Israel Institute of Technology. “Stars and planets, which you can usually see only at night, might also be briefly visible.”

Even if you won’t be along the path of totality, you’ll still be in for a show. A partial eclipse—the sight of the sun partly covered by the dark face of the moon—is cool in its own right, and during this event, such an eclipse will be visible across most of the U.S.

To catch the best possible view of the event, here’s how to prepare:

Pick the best place to view to eclipse : The ideal spot is along the path of totality, where you’ll see the maximum coverage of the sun by the moon. Totality will begin over Sinaloa, Mexico, cross over many major U.S. cities—including Dallas, Indianapolis, Cleveland, Buffalo, N.Y., and Burlington, Vt.—and at last pass over the Canadian island of Newfoundland.

Check the weather: A lot will depend on the weather, and eclipse forecasts are changing by the minute. You might want to keep your plans flexible and pick an exact location based on the lowest chances of cloud cover. “You can select locations that give you the best chance of clear skies, but there are never any guarantees, as we are finding right now,” says eclipse chaser Kate Russo , author of Total Addiction: The Life of an Eclipse Chaser . “I always have a plan A and a plan B, sometimes a plan C.” It’s also smart to keep an eye on traffic patterns and public safety advisories for the areas you’re considering.

Pack the right gear: The most important thing to pack for any eclipse viewing is a pair of eclipse glasses , which will shield your eyes from the harmful rays of the sun during the partial eclipse leading up to, and following, totality. (You can take them off during full totality because the sun’s direct light will be blocked, and the corona’s glow won’t hurt your eyes.) And special solar filters are needed to safely view the sun with cameras, telescopes and binoculars. If you’re hoping to take photographs of the event, check out our guide to eclipse photography gear . And of course, take lots of snacks and water.

I, like many Americans, got hooked on eclipses during the 2017 total eclipse over the U.S., my first sighting. Rather than crossing the experience off my bucket list, the spectacle was so exhilarating that I resolved to see a total eclipse again as soon as I possibly could. “It's like a compulsion,” Russo says. “It was very strong after I saw my first eclipse, then second, then third, up until my seventh or eighth. It remains very strong, but I also have a compulsion to help others experience totality, which is what drives the work I do on supporting community eclipse planning and sharing the experience of totality with others.”

The eclipse won’t just be a great show—it’s a special opportunity for scientists to learn more about the sun. “There are a lot of open questions about the sun even though it is our star,” says Amir Caspi, a solar physicist at the Southwest Research Institute. He and his team will be capturing footage of the eclipse by chasing it with NASA jets outfitted with special cameras. The researchers hope to learn more about the physics of the corona, which is surprisingly hot—about 200 times warmer than the surface. “It’s like when you walk away from a campfire, somehow it gets warmer,” Caspi says.

You, too, can participate in science during the eclipse—several projects are recruiting volunteers to help gather data during the event. Survey some of the crowdsourced eclipse research options here .

And if you aren’t able to make it to the path of totality or clouds foil your plans, you can always catch an online stream of the eclipse . As soon as this one’s over, it’ll be time to start planning for the next eclipse , too!

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IR-2024-95, April 5, 2024

WASHINGTON —The Internal Revenue Service today advised taxpayers, including self-employed individuals, retirees, investors, businesses and corporations about the April 15 deadline for first quarter estimated tax payments for tax year 2024.

Since income taxes are a pay-as-you go process, the law requires individuals who do not have taxes withheld to pay taxes as income is received or earned throughout the year. Most people meet their tax obligations by having their taxes deducted from their paychecks, pension payments, Social Security benefits or certain other government payments including unemployment compensation.

Generally, taxpayers who are self-employed or in the gig economy are required to make estimated tax payments . Likewise, retirees, investors and others frequently need to make these payments because a significant portion of their income is not subject to withholding.

When estimating quarterly tax payments, taxpayers should include all forms of earned income, including part-time work, side jobs or the sale of goods or services commonly reported on Form 1099-K .

Income such as interest, dividends, capital gains, alimony and rental income is normally not subject to withholding. By making quarterly estimated tax payments, taxpayers can avoid penalties and uphold their tax responsibilities.

Certain groups of taxpayers, including farmers and fishers, recent retirees, individuals with disabilities, those receiving irregular income and victims of disasters are eligible for exceptions to penalties and special regulations .

Following recent disasters, eligible taxpayers in Tennessee , Connecticut , West Virginia , Michigan , California and Washington have an extended deadline for 2024 estimated tax payments until June 17, 2024. Similarly, eligible taxpayers in Alaska , Maine and Rhode Island have until July 15, 2024, and eligible taxpayers in Hawaii have until Aug. 7, 2024. For more information, visit Tax relief in disaster situations .

In addition, taxpayers who live or have a business in Israel, Gaza or the West Bank, and certain other taxpayers affected by the terrorist attacks in the State of Israel , have until Oct. 7, 2024, to make estimated tax payments.

Paying estimated taxes

Taxpayers can rely on Form 1040-ES, Estimated Tax for Individuals , for comprehensive instructions on computing their estimated taxes.

Opting for the IRS Online Account streamlines the payment process, allowing taxpayers to view their payment history, monitor pending payments and access pertinent tax information. Taxpayers have several options to make an estimated tax payment, including IRS Direct Pay , debit card, credit card, digital wallet or the Treasury Department's Electronic Federal Tax Payment System (EFTPS) .

To pay electronically and for more information on other payment options, visit IRS.gov/payments . If paying by check, be sure to make the check payable to the "United States Treasury."

Publication 505, Tax Withholding and Estimated Tax , offers detailed information for individuals navigating dividend or capital gain income, alternative minimum tax or self-employment tax, or who have other special situations.

The IRS recommends taxpayers use the Tax Withholding Estimator tool to accurately determine the appropriate amount of tax withheld from paychecks.

Regularly monitoring withheld taxes helps mitigate the risk of underpayment, reducing the likelihood of unexpected tax bills or penalties during tax season. It also allows individuals to adjust withholding upfront, leading to larger paychecks during the year and potentially smaller refunds at tax time.

Filing Options

The IRS encourages people to file their tax returns electronically and choose direct deposit for faster refunds. Filing electronically reduces tax return errors because tax software does the calculations, flags common errors and prompts taxpayers for missing information.

The IRS offers free online and in-person tax preparation options for qualifying taxpayers through the IRS Free File program and the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs .

In addition, the Direct File pilot program, a new option that allows eligible taxpayers to file their federal tax returns online directly with the IRS for free, is currently available in 12 participating states.

Assistance available 24/7 on IRS.gov

IRS.gov offers tax assistance 24/7. To address general tax concerns, taxpayers can access various online tools on the IRS website, to include the Interactive Tax Assistant , tax topics and frequently asked questions to get answers to common questions.

The IRS has also posted translated tax resources in 20 other languages on IRS.gov to communicate to taxpayers who prefer to get information in other languages. For more information, see the IRS Languages page on IRS.gov.

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