Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — 2009 Bank Analysts Association of Boston Conference
31 slides from Jp Morgan Chase &'s conference presentation, Nov 6, 2009
Slide 1: 2009 Bank Analysts Association of Boston Conference
Exhibit 99.1 2009 B ANC AN AL YSTS AS SO CI AT I ON OF B OS TO N CO NFERE NCE Charlie Scharf, Chief Executive Officer, Retail Financial Services November 5, 2009
Slide 2: Agenda
Agenda Page Financial Performance 1 Credit Update 3 Foreclosure/REO 10 WaMu / Branch Banking Update 21 1
Slide 3: Retail Financial Services — results
Retail Financial Services — results Net income/(loss) ($ in millions) 3Q08 2Q09 3Q09 Retail Banking $723 $970 $1,043 Mortgage Banking (32) 213 280 Auto & Student Loans 93 22 132 Home Lending Portfolio (720) (1,190) (1,448) Consumer Lending ($659) ($955) ($1,036) Retail Financial Services $64 $15 $7
Slide 4: Agenda
Agenda Page Financial Performance 1 Credit Update 3 Foreclosure/REO 10 WaMu / Branch Banking Update 21 3
Slide 5: Consumer Lending portfolio
Consumer Lending portfolio Outstandings as of 9/30/09 ($ in billions) Non Credit- Credit- 1 Portfolio Total Loans Impaired Impaired Home Equity $139.2 $104.8 $34.4 Option ARM 47.4 8.9 38.5 2 Prime Mortgage 82.6 59.9 22.7 Subprime Mortgage 22.6 13.3 9.3 Total Home Lending Portfolio $291.8 $186.9 $104
Slide 6: Retail Financial Services credit summary
Retail Financial Services credit summary ($ in millions) 4Q08 1Q09 2Q09 3Q09 Net charge-offs $1,701 $2,176 $2,649 $2,550 Change in allowance 1,875 1,701 1,197 1,438 Provision for credit losses $3,576 $3,877 $3,846 $3,988 1 Non credit-impaired loan balances $282,001 $280,313 $270,468 $265,109 Credit-
Slide 7: Portfolio performance excluding credit-impaired loans
Portfolio performance Excluding credit-impaired loans Key credit statistics 3Q08 4Q08 1Q09 2Q09 3Q09 Home Equity Net charge-off ($mm) $663 $770 $1,098 $1,265 $1,142 Net charge-off rate 2.78% 2.67% 3.93% 4.61% 4.25% Prime Mortgage Net charge-off ($mm) $177 $195 $312 $481 $525 1 Net charge-off rate 1.
Slide 8: Consumer credit—delinquency trends
Consumer credit—delinquency trends Excluding credit-impaired loans Home Equity delinquency trend Prime Mortgage delinquency trend 30+ day delinquencies 30-89 day delinquencies 30+ day delinquencies 30-89 day delinquencies 6.50% 1-29 day delinquencies 13% 1-29 day delinquencies 5.75% 11% 5.00% 9% 4.2
Slide 9: Mortgage write-down policy
Mortgage write-down policy Loans are written down to net realizable value no later than 180 days past due except for trial modifications where payments are being received Subsequent write-downs are taken throughout the foreclosure process when updated values show additional depreciation in the colla
Slide 10: Auto credit — prime and near prime policy actions
Auto credit — prime and near prime policy actions Vintage performance Origination Balances ($ in billions)¹ Initiated HPA High Risk Market Policy Ever 30 Days Past Due 1.80% Reduced LTV and Extended Terms @ 3 Months on Book² Lowered Exception Net Credit Loss Limits @ 12 Months on Book 1.60% Reduced
Slide 11: Agenda
Agenda Page Financial Performance 1 Credit Update 3 Foreclosure/REO 10 WaMu / Branch Banking Update 21 10
Slide 12: Total serviced portfolio — REO inventory units
Total serviced portfolio — REO inventory units Units in 000’s 55 California Florida Arizona Remaining U.S. 50 45 40 35 30 25 20 15 10 5 0 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 REO has declined California declining more rapidly September 2008: 20k
Slide 13: Average days on market, contract discount to fair market value
Total serviced portfolio — Average days on market, contract discount to fair market value Days on Market % Discount FMV to Contract Price 160 12% 10% 140 8% 120 6% 100 4% 80 2% 60 0% Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Faster sales and lower dis
Slide 14: Total serviced portfolio REO loss severity
Total serviced portfolio REO loss severity Loss severity 65% Total U.S. California Florida Arizona Remaining U.S. 60% 55% 50% 45% 40% 35% Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Severities appear to be stabilizing in California and Arizona Severity
Slide 15: REO trends – U.S.
REO trends – U.S. Average contract price ($ in 000’s) 180 175 170 165 160 155 150 145 140 135 130 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Can be impacted by factors such as: Seasonality Mix of home types Pricing strategies Note: Total Serviced Portf
Slide 16: REO trends – California
REO trends – California Average contract price ($ in 000’s) % discount FMV to contract price 240 12% 228 9% 216 6% 204 3% 192 0% 180 Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- (3)% Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- 08 08 08 08 09 09 09 09 09 09 09
Slide 17: REO trends – Florida
REO trends – Florida Average contract price ($ in 000’s) % discount FMV to contract price 15% 150 12% 136 9% 122 108 6% 94 3% 80 0% Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- 08 08 08 08 09 09 09 09 09 09 09 09 09
Slide 18: REO trends – Arizona
REO trends – Arizona Average contract price ($ in 000’s) % discount FMV to contract price 180 15% 164 12% 148 9% 132 6% 116 3% 100 0% Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- 08 08 08 08 09 09 09 09 09 09 09 09
Slide 19: REO trends – Remaining US
REO trends – Remaining US Average contract price ($ in 000’s) % discount FMV to contract price 135 16% 128 12% 121 114 8% 107 100 4% Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- 08 08 08 08 09 09 09 09 09 09 09 09 0
Slide 20: Loss mitigation efforts
Loss mitigation efforts Staffing of default services (FTE) 3Q09 YTD results vs. 3Q08 YTD 14,000 12.5 million calls from customers seeking foreclosure prevention assistance vs. 6.8 12,000 million - up 84% 4 million outbound loss mitigation and 10,000 collection calls vs. 400K 1.5 million loan modific
Slide 21: Trial modification results to date (total serviced)
Trial modification results to date (total serviced) Program to date (as of 10/24/09) Program HAMP Chase Total Yet to be decisioned 98,344 Total offered 178,006 101,790 279,796 % with payment decrease 96% 83% 94% % of total with 1+ payment received 78% 74% 77% % of total with 3+ payments received 52%
Slide 22: Agenda
Agenda Page Financial Performance 1 Credit Update 3 Foreclosure/REO 10 WaMu / Branch Banking Update 21 21
Slide 23: WaMu conversions
WaMu conversions Rebranding and 3 successful conversions April 1 – California rebrand May – Washington, Oregon, Idaho & Utah July – Florida, Georgia, New York, New Jersey, Connecticut, Texas & Illinois October – California, Arizona, Nevada & Colorado Conversion activities Branches Rebranding ATMs Pr
Slide 24: California 2009 rebrand recap…
California 2009 rebrand recap… CA heavily supported across all media channels during 2009 Rebrand period - achieving notable awareness growth PRINT: OUT OF HOME: TV: ONLINE: 23
Slide 25: California 2009 rebrand recap
California 2009 rebrand recap Pre vs. Post rebrand – Chase unaided awareness in California As a Financial Institution As a Bank with Checking Accounts 53% 42% 23% 18% Feb-09 Jun-09 California rebranding has significantly improved awareness of Chase as a financial institution and checking account pro
Slide 26: WaMu balances since September 25, 2008
WaMu balances since September 25, 2008 Total deposits trend ($ in billions) CDs & Total Savings/Checking balance trend ($ in billions) $140 $85 Savings & Checking Time High Rate Time Low Rate $75 $120 $65 $55 $100 $45 $35 $80 $25 $15 $60 $5 3Q08 4Q08 1Q09 2Q09 3Q09 3Q08 4Q08 1Q09 2Q09 3Q09 Retaining
Slide 27: WaMu update
WaMu update Roll out branch P&L in 2010 Common compensation plans Managers Assistant Managers Bankers Common mystery shop Common control reviews Continue high marketing spend in key states Complete Deposit Friendly ATM roll-out Sales force additions Personal Bankers – 1,000+ in 2009 and 750 in 2010
Slide 28: How is a WaMu customer different than Chase?
How is a WaMu customer different than Chase? Household comparison – heritage Chase vs. heritage WaMu Chase WaMu Chase WaMu Households 9.8mm 9.7mm Balances ($ in 000’s) Product Ownership Average Deposits $15.7 $9.3 Credit Card 49% 16% Average Investments $73.4 $39.4 Mortgage 7% 5% Home Equity 7% 5% I
Slide 29: NSF/OD changes
NSF/OD changes Next year, Chase will... Eliminate overdrafts on debit card transactions unless the customer “opts in” Customers may decide whether to participate or not Those that do not will have debit card transactions declined and will not incur a fee Post debit card, ATM and teller transactions
Slide 30: Strength of the combined franchise
Strength of the combined franchise Great coast to coast franchise 5,126 branches and 15,038 ATMs as of 3Q09 Top deposit shares in: #1 New York #2 Seattle #1 Chicago #3 Los Angeles #1 Phoenix #3 Miami #1 Dallas/Ft. Worth Footprint covers: Tri-state Northwest Midwest Florida California Southwest Compl
Slide 31: Forward-looking statements
Forward-looking statements Forward looking statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase’s management and are subject t
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