JPMorgan has cut its stock buyback program by almost 90%, with Chief Executive Officer Jamie Dimon stating he believes there are alternative ways to deploy capital.

In a statement released on Tuesday, JPMorgan Chase & Co (NYSE: JPM) revealed it repurchased only 3.1 million shares in the third quarter, a sharp decline from 28 million shares during the same period a year earlier.

Speaking on an analyst call on Tuesday, Dimon said: "Unlike what we told you before, we now believe we can redeploy this capital over time on very favorable terms. That is far better than buying back stock now and getting a 6% or whatever earnings yield."

Dimon did not specify where the capital would be directed, but JPMorgan Chase & Co (NYSE: JPM) increased equity capital allocated to its commercial and investment banking division by $2.8 billion in the third quarter, while equity capital for other operating divisions remained unchanged.

JPMorgan Chase & Co (NYSE: JPM) has been exploring other ways to deploy some of its capital, including a commitment to invest $1.5 trillion over the next decade in industries that help strengthen U.S. economic security. In September, the bank said it would allocate $1 billion in debt capital for manufacturing in Michigan.

Chief Financial Officer Jeremy Barnum said on the analyst call on Tuesday: "Given the pace at which we are deploying capital internally, the amount of excess capital we currently hold, and the present environment, it clearly makes sense to keep some dry powder."