James Dimon says the regulatory cloud is lifting above JP Morgan Chase. But the chief executive still forecasts some squalls ahead.

In his annual shareholder letter released late on Wednesday, Dimon blamed legal and regulatory costs for weighing on the firm's share price but said he expects the firm's legal costs to "normalise" in 2016. The chief executive said the bank still faces legal uncertainty, highlighting continuing foreign-exchange settlement negotiations, but added that he thinks it will "diminish" over time. J.P. Morgan has paid more than $26 billion in recent years in fines and settlements.