Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Investor Day (February 2015)
24 slides from Jp Morgan Chase &'s investor day presentation, Feb 24, 2015
Slide 1: Commercial Banking
COMMERCIAL BANKING Doug Petno, Chief Executive Officer Commercial Banking February 24, 2015
Slide 2: Chase Commercial Banking – a proven business model
Chase Commercial Banking – a proven business model Coverage segmented and focused on best serving client needs Client and Local delivery and decision making community focus Deep industry expertise Seasoned team with 20 years average experience Competitive Industry-leading, broad-based capa
Slide 3: Agenda
Agenda Page Franchise strength 2 2014 performance 8 Opportunities 15 COMMERCIAL BANKING 2
Slide 4: Commercial & Industrial overview
Commercial & Industrial overview Client focus through dedicated segment and industry coverage Chase Commercial Banking Middle Market Corporate Client Small Business Corporate & Banking & Banking & Business Banking Specialized Industries Specialized Industries Investment Banking < $500K $500K - $20MM
Slide 5: Commercial Real Estate overview
Commercial Real Estate overview Commercial Term Real Estate Community Development Lending Banking Banking (CTL) (REB) (CDB) % CB net 18% 7% 3% revenue1 Loans & $54B in loans $23B in credit commitments $4B in credit commitments commitments Clients ~35,000 investors & owners ~640 clients ~890 clients
Slide 6: We pick the best clients
We pick the best clients Our client selection criteria… Preferred Strong Strategic clients Reputable in industries with Shared risk management with complex local markets transparent philosophy track record needs operations ...results in higher quality, lower risk... ...and more valuable clients Hi
Slide 7: Leveraging the entire JPMorgan Chase platform
Leveraging the entire JPMorgan Chase platform Corporate & Investment Bank International presence in more than 60 countries Operational Financial with capabilities to serve CB clients abroad efficiency Strength & stability Joint IB coverage provides CB clients access to market-leading investment
Slide 8: Delivering our broad-based, global capabilities locally
Delivering our broad-based, global capabilities locally Civic involvement 25,000+ hours of community service Local delivery of underwriting, capital and service 200+ years in New York 150+ years in Chicago 5+ years in Seattle Global capabilities Making a positive difference in our communities Pres
Slide 9: Agenda
Agenda Page Franchise strength 2 2014 performance 8 Opportunities 15 COMMERCIAL BANKING 8
Slide 10: 2014 results – strong underlying business performance
2014 results – strong underlying business performance Record ($B, except where noted) 2013 2014 YoY (%) Loan balance (EOP) 137 149 8% Client deposits & other third-party liabilities (avg.) 198 204 3% Record results Investment Banking revenue1 1.7 2.0 18% Card Services revenue1,2 ($MM) 469 490 4% Int
Slide 11: Stable and diversified deposit base
Stable and diversified deposit base Average 2014 deposits by segment1 ($B) Average 2014 deposits by type1 ($B) MM DDA CCB Savings CRE Sweeps Other 9% 10% Excellent 11% deposit gathering franchise 35% $204B $204B 56% 56% 23% Deposit base built through selective new client acquisition and deep, broa
Slide 12: Commercial & Industrial loan portfolio – steady, disciplined growth
Commercial & Industrial loan portfolio – steady, disciplined growth Commercial & Industrial portfolio ($B, EOP) $78 $74 $74 $62 $51 2010 2011 2012 2013 2014 Utilization (%) 30% 31% 32% 30% 32% Total NCOs 0.61% 0.09% 0.00% 0.06% 0.02% 2014 industry observations CB performance summary Competition fo
Slide 13: Commercial Real Estate – industry-leading loan growth
Commercial Real Estate – industry-leading loan growth CRE loan portfolio ($B, EOP) Community Development Banking Real Estate Banking Commercial Term Lending $71 $63 $55 $48 $50 2010 2011 2012 2013 2014 Total Originations ($B) $3 $14 $21 $22 $23 Total NCOs 1.23% 0.24% 0.04% 0.01% (0.01%) 2014 industr
Slide 14: Continued strong credit performance
Continued strong credit performance Non-performing loans1 Net charge-offs Commercial Banking Peer average2 Commercial Banking Peer average2 TTC average3 Peers: 0.98% CB: 0.36% CB Target: < 0.50% 2008 20094 20104 2011 2012 2013 2014 2008 20095 2010 5 2011 2012 2013 2014 Peers 2.1% 4.2% 3.1% 2.0% 1.1%
Slide 15: Closely monitoring market fundamentals
Closely monitoring market fundamentals Key watch areas Total portfolio of $6.0B in outstandings Monitoring regulatory and competitive and $15.0B in exposure environment closely 4% of overall CB outstandings Limited sponsor-backed exposure 5% of overall CB exposure representing only 1.3% of
Slide 16: Agenda
Agenda Page Franchise strength 2 2014 performance 8 Opportunities 15 COMMERCIAL BANKING 15
Slide 17: Extending our proven business model to new, high potential markets
Extending our proven business model to new, high potential markets Total expansion market revenue1 ($MM) 2010 footprint 2014 footprint 19 34 Expansion cities Expansion cities $1,000 $327 $297 $232 $139 $53 2010 2011 2012 2013 2014 Long-term target # Clients 820 1,100 1,350 1,460 1,670 # Bankers2 74
Slide 18: Industry-focused to better serve our clients and manage risks
Industry-focused to better serve our clients and manage risks Specialized industries Agribusiness Media & Healthcare Governments Oil & gas Technology & food entertainment ~7% of GDP ~4% of GDP ~3% of GDP ~4% of GDP ~6% of GDP ~6% of GDP Power Financial Heavy Foreign Beverage Apparel & utility servic
Slide 19: Deepening client relationships through unique capabilities
Deepening client relationships through unique capabilities Investment Banking revenue ($B) Gross Card Services IB fees1 ($MM) revenue Gross International IB fees revenue 1 ($MM) CAGR CAGR CAGR 12% 7% 13% $2.0 $469 $490 $304 $1.6 $1.7 $429 $238 $264 2012 2013 2014 2012 2013 2014 2012 2013 2014 CB C&I
Slide 20: Continuing build-out of Investment Banking capabilities – new $3B revenue target
Continuing build-out of Investment Banking capabilities – new $3B revenue target Commercial Banking gross investment banking revenue1 ($B) $3.0 $2.0 $1.7 $1.6 $1.4 $1.3 $1.2 $1.0 2008 2009 2010 2011 2012 2013 2014 New long-term target OPPORTUNITIES CIB partnership has resulted in differentiated clie
Slide 21: Opportunity to continue capturing market share in Commercial Real Estate
Opportunity to continue capturing market share in Commercial Real Estate Unique value Focus on Capture market proposition fundamentals opportunities Relationship-driven model Identify markets & clients Continue taking share Differentiated platform from Disciplined market selection Continue inv
Slide 22: We remain confident in our ability to produce superior returns through the cycle
We remain confident in our ability to produce superior returns through the cycle Proven business model Deeper relationships through unmatched capabilities Premier investment banking Foreign exchange Revenue Leading treasury services platform Interest rate risk management Top issuer of comm
Slide 23: Executing our proven strategy
Executing our proven strategy Financial targets Long-term 2014 2010-2014 target actual growth Market expansion $1.0B $327MM 57% CAGR Execute growth Investment banking1 $3.0B $2.0B 10% CAGR initiatives International2 $500MM $304MM 22% CAGR TTC overhead ratio 35% 39% 36% avg. Maintain expense & credit
Slide 24: Delivering for our clients
Delivering for our clients Chase Commercial Banking priorities Fortress controls Safeguard our clients and our business and compliance Continue to enhance critical capabilities Execute our disciplined growth strategy Optimize Adapt to new regulatory framework returns Deploy capital efficie