Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q4 2023 Earnings Presentation
20 slides from Jp Morgan Chase &'s earnings presentation, Jan 12, 2024
Slide 1: 4Q23 Financial Results
4Q23 Financial Results January 12, 2024
Slide 2: Agenda
Agenda Page 1 4Q23 and FY23 Financial Results 1 2 Financial Outlook 10 3 Notes 13
Slide 3: 4Q23 Financial highlights
Pretax Net income EPS FDIC special assessment in Corporate ($2,882) ($2,186) ($0.74) Net investment securities losses in Corporate ($743) ($563) ($0.19) 4Q23 Financial highlights 1 See note 4 on slide 13 2 - Absorbing Capacity for the current period. See note 1 on slide 14 3 Standardized risk- 4 Cas
Slide 4: 4Q23 Financial results
4Q23 Reported FR impact ex. FR 3Q23 4Q22 Net interest income $24.2 $1.3 $22.8 $1.4 $2.5 Noninterest revenue 15.8 0.5 15.2 (1.8) (0.0) Managed revenue1 39.9 1.9 38.1 (0.4) 2.5 Expense 24.5 0.9 23.6 2.7 4.6 Credit costs 2.8 0.1 2.6 1.2 0.3 Net income $9.3 $0.6 $8.7 ($3.4) ($2.3) Net income applicable
Slide 5: FY2023 Financial results
FY2023 FY2022 ex. FR $ O/(U) Reported FR impact ex. FR Reported FY2022 Net interest income $89.7 $3.7 $86.0 $67.1 $18.9 Noninterest revenue 72.6 4.4 68.2 65.1 3.0 Managed revenue1 162.4 8.2 154.2 132.3 21.9 Expense 87.2 2.3 84.8 76.1 8.7 Credit costs 9.3 1.3 8.0 6.4 1.7 Net income $49.6 $4.1 $45.4 $
Slide 6: Fortress balance sheet
Fortress balance sheet Note: Totals may not sum due to rounding 1 Estimated for the current period. See note 1 on slide 14 2 3 4 See note 4 on slide 14 5 See note 4 on slide 13 6 Reflects Net Income Applicable to Common Equity 7 Excludes AOCI on cash flow hedges and DVA related to structured notes 8
Slide 7: Consumer & Community Banking
Consumer & Community Banking1 KEY DRIVERS / STATISTICS ($B) DETAIL BY BUSINESS FINANCIAL PERFORMANCE (ex. FR)SELECTED INCOME STATEMENT DATA ($MM) KEY DRIVERS / STATISTICS ($B)3 Note: Totals may not sum due to rounding 1 See note 1 on slide 13; 2 See note 3 on slide 14 For additional footnotes see sl
Slide 8: Corporate & Investment Bank
4Q23 3Q23 4Q22 Equity $108.0 $108.0 $103.0 ROE 9% 11% 12% Overhead ratio 62 63 61 Comp/revenue 31 29 29 IB fees ($mm) $1,654 $1,717 $1,467 Average loans 233.3 232.9 225.8 Average client deposits4 660.8 638.1 649.7 Merchant processing volume5 639 610 583 Assets under custody ($T) 32.4 29.7 28.6 Net c
Slide 9: Commercial Banking
4Q23 ex. FR Reported FR impact ex. FR 3Q23 4Q22 Average equity $30.0 $1.5 $28.5 $28.5 $25.0 ROE 21% 1% 20% 23% 22% Overhead ratio 35 (3) 37 37 37 Payments revenue ($mm) $2,045 $65 $1,980 $2,045 $1,937 Investment Banking and Markets revenue, gross ($mm)4 $924 - $924 $821 $700 Average loans5 281.0 39.
Slide 10: Asset & Wealth Management
Asset & Wealth Management1 KEY DRIVERS / STATISTICS ($B)2 Net income of $925mm, down 18% YoY Revenue of $4.7B, up 2% YoY, driven by higher management fees on strong net inflows and higher average market levels, predominantly offset by lower net interest income on lower deposit margins and balances,
Slide 11: Corporate
Corporate1 FINANCIAL PERFORMANCE (ex. FR)SELECTED INCOME STATEMENT DATA ($MM) Revenue was $1.8B, up $597mm YoY Net interest income was $2.5B, up $1.2B YoY, driven by the impact of higher rates and balance sheet mix Noninterest revenue was a net loss of $687mm, compared with a net loss of $115mm in t
Slide 12: Agenda
Agenda Page 1 4Q23 and FY23 Financial Results 1 2 Financial Outlook 10 3 Notes 13
Slide 13: 2024 net interest income outlook
$94 ($8) $1.5 2023 4Q23 annualized Rate/reprice Balance sheet growth/mix 2024 outlook Rate / reprice2 Assumes 6 rate cuts in 2024 (4.0% FFTUB3 at YE) Deposit reprice and internal migration Note: Charts are not to scale; totals may not sum due to rounding 1 See note 2 on slide 13 2 Outlook is based o
Slide 14: Our 2024 expense outlook is ~$90B
Our 2024 expense outlook is ~$90B Note: Totals may not sum due to rounding 1 See note 5 on slide 13 2 2023 FDIC special assessment 3 Represents a non- f $2.9B ADJUSTED EXPENSE1 ($B) $35 $38 $28 $29 $5 $6 $13 $14 $2 $2 2023 4Q23 annualized (ex. FDIC SA) 2024 CIB CB AWM Corp. ~$90 CCB 2024 DRIVERS Bus
Slide 15: Outlook
Outlook1 1 See notes 1, 2 and 5 on slide 13 Expect FY2024 net interest income of ~$90B, market dependent Expect FY2024 net interest income excluding Markets of ~$88B, market dependent 1 Expect FY2024 Card Services NCO rate of < 3.50%3 FIRMWIDE Expect FY2024 adjusted expense of ~$90B, market dependen
Slide 16: Agenda
Agenda Page 1 4Q23 and FY23 Financial Results 1 2 Financial Outlook 10 3 Notes 13
Slide 17: Notes on non-GAAP financial measures
Notes on non-GAAP financial measures 1. rat Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a definition of managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to
Slide 18: Additional notes
Additional notes 1. Reflects the Current Expected Credit Losses ("CECL") capital transition provisions. Beginning January 1, 2022, the $2.9B CECL capital benefit is being phased out at 25% per year over a three-year period. As of December 31, 2023 and September 30, 2023, CET1 capital and Total Loss-
Slide 19: Additional notes on slides 5-7
Additional notes on slides 5-7 Slide 5 Consumer & Community Banking 3. Actual numbers for all periods, not over/(under) 4. Users of all JPMorgan Chase mobile platforms who have logged in within the past 90 days. Excludes First Republic 5. Excludes Commercial Card 6. Includes the impact of loans orig
Slide 20: 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 & forth in the forward- materially from those described in