Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q3 2015 Earnings Presentation
21 slides from Jp Morgan Chase &'s earnings presentation, Oct 13, 2015
Slide 1: Financial Results 3Q15
FINANCIAL RESULTS 3Q15 October 13, 2015
Slide 2: 3Q15 Financial highlights
3Q15 Financial highlights ROTCE1 CET1 ratio2 Overhead ratio3 Net payout ratio LTM4 15% 11.4% 65% 49% 3Q15 reported net income of $6.8B and EPS of $1.68; net income of $5.4B, EPS of $1.32 and ROTCE1 of 12% excluding tax benefits, legal expense and net reserve releases5 Revenue of $23.5B3 Adjust
Slide 3: 3Q15 Financial results
3Q15 Financial results1 $mm, excluding EPS $ O/(U) 3Q15 2Q15 3Q14 Revenue (FTE)1 $23,535 ($996) ($1,611) Expense 15,368 868 (430) Credit costs 682 (253) (75) Reported net income $6,804 $514 $1,239 Net income applicable to common stockholders $6,270 $494 $1,142 Reported EPS $1.68 $0.14 $0.33 ROE2 3Q1
Slide 4: Fortress balance sheet and returns
Fortress balance sheet and returns1 $B, except where noted 3Q15 2Q15 3Q14 Basel III Advanced Fully Phased-In2 3Q15 Basel III CET1 Standardized Fully $172 $169 $163 Phased-In of CET1 ratio 11.4%2 11.4% 11.0% 10.1% Tier 1 capital $198 $194 $183 Tier 1 capital ratio 13.1% 12.7% 11.3% Total capital $219
Slide 5: Consumer & Community Banking
Consumer & Community Banking1 $mm Leadership positions $ O/(U) Consumer & Business Banking 3Q15 2Q15 3Q14 Deposit volume growing at nearly twice the industry growth rate4 Net interest income $7,150 $224 ($3) #1 in customer satisfaction among the largest U.S. banks for the Noninterest revenue 3,7
Slide 6: Consumer & Community Banking – Consumer & Business Banking
Consumer & Community Banking Consumer & Business Banking $mm Financial performance $ O/(U) Net income of $954mm, up 3% YoY and 15% QoQ 3Q15 2Q15 3Q14 Revenue of $4.6B, down 2% YoY and up 2% QoQ Net interest income $2,605 ($14) ($202) Expense of $3.0B, down 3% YoY and QoQ Noninterest revenue 1,
Slide 7: Consumer & Community Banking – Mortgage Banking
Consumer & Community Banking Mortgage Banking $mm Financial performance $ O/(U) Net income of $602mm, up 29% YoY 3Q15 2Q15 3Q14 Revenue of $1.6B, down 23% YoY and 15% QoQ, primarily Net interest income $1,112 $56 $53 on lower net servicing revenue Noninterest revenue 443 (334) (525) Revenue 1,55
Slide 8: Consumer & Community Banking – Card, Commerce Solutions & Auto
Consumer & Community Banking Card, Commerce Solutions & Auto $mm Financial performance $ O/(U) Net income of $1.1B, down 6% YoY 3Q15 2Q15 3Q14 Revenue of $4.8B, up 2% YoY and 1% QoQ Net interest income $3,433 $182 $146 Expense of $2.2B, up 8% YoY due to higher auto lease Noninterest revenue 1,
Slide 9: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $1.5B on revenue of $8.2B 3Q15 2Q15 3Q14 ROE of 8%; 13% adjusted for legal expense, tax benefits and reserve Corporate & Investment Bank revenue $8,168 ($555) ($937) build6 Investment banking revenue 2 1,530 (216) 79 Tr
Slide 10: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Net income of $518mm, down 23% YoY and 1% QoQ 3Q15 2Q15 3Q14 Revenue $1,644 ($95) ($59) Revenue of $1.6B, down 3% YoY 2 Middle Market Banking 675 (13) (11) Down 5% QoQ on lower investment banking revenue Corporate Client Banking 2 446 (86)
Slide 11: Asset Management
Asset Management1 $mm Financial performance $ O/(U) Net income of $475mm, down 19% YoY and up 5% QoQ 3Q15 2Q15 3Q14 Revenue $2,894 ($281) ($152) Revenue of $2.9B, down 5% YoY and 9% QoQ Global Investment Management 1,483 (187) (126) Expense of $2.1B, up 1% YoY and down 12% QoQ Global Wealth Ma
Slide 12: Corporate
Corporate1 $mm Financial performance $ O/(U) Treasury and CIO 3Q15 2Q15 3Q14 Treasury and CIO net loss of $40mm, compared to a Treasury and CIO ($40) $72 $293 net loss of $112mm in 2Q15 Other Corporate2 1,757 1,205 1,329 Other Corporate2 Net income $1,717 $1,277 $1,622 Net income includes tax be
Slide 13: Outlook
Outlook Firmwide Corporate & Investment Bank Expect 4Q15 YoY core loan1 growth to continue at For 4Q15, expect business simplification to generate YoY 15%+/- negative variance in Markets revenue of 2%; also expect normal seasonal trends Expect 2H15 NCOs to be consistent with 1H15 At current
Slide 14: Appendix
Agenda Page Appendix 13 FINANCIAL RESULTS 13
Slide 15: Consumer credit – Delinquency trends
Consumer credit – Delinquency trends1 Home equity delinquency trend ($mm) Prime mortgage delinquency trend ($mm) $3,500 $3,500 30 – 149 day delinquencies 30 – 149 day delinquencies $3,000 150+ day delinquencies $3,000 150+ day delinquencies $2,500 $2,500 $2,000 $2,000 $1,500 $1,500 $1,000 $1,000 $50
Slide 16: Mortgage Banking and Card Services – Coverage ratios
Mortgage Banking and Card Services – Coverage ratios1 Mortgage Banking and Card Services credit data ($mm) O/(U) 3Q15 2Q15 3Q14 3Q14 Mortgage Banking (NCI) Net charge-offs $41 $81 $81 ($40) NCO rate 0.10% 0.21% 0.24% (14) bps Allowance for loan losses $1,588 $1,788 $2,288 ($700) 2 ALL/annualized NCO
Slide 17: Firmwide – Coverage ratios
Firmwide – Coverage ratios1 $mm 5.00% Loan loss reserve/Total loans1 Loan loss reserve Nonperforming retained Loan loss reserve/NPLs1 600% loans 500% 4.00% 400% 3.00% 300% 17,571 2.00% 16,264 15,847 15,326 14,889 14,185 14,065 13,915 13,466 200% 1.00% 100% 9,027 8,317 8,123 7,634 7,241 7,017 6,921 6
Slide 18: IB League Tables
IB League Tables League table results – wallet share League table results – volumes YTD2015 FY2014 YTD2015 FY2014 Rank Share Rank Share Rank Share Rank Share Based on fees 1 : Based on volumes 6 : Global Debt, Equity & Equity-related 1 8.0 % 1 7.6% Global Debt, Equity & Equity-related 1 7.1 % 1 6.8%
Slide 19: Notes
Notes Notes on non-GAAP financial measures 1. In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results, including the overhead ratio, and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. The Firm’s definit
Slide 20: Notes
Notes 8. The Firm presents pretax income, net income (assumes a tax rate of 38% for items that are tax deductible) and earnings per share excluding certain notable items. These measures should be viewed in addition to, and not as a substitute for, the Firm's reported results. Management believes thi
Slide 21: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase & Co.’s management and are subject to significant risks an