Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q1 2020 Earnings Presentation
16 slides from Jp Morgan Chase &'s earnings presentation, Jun 24, 2020
Slide 1: 1Q20 Financial Results
1Q20 Financial Results April 14, 2020
Slide 2: Here to help: our response to COVID-19
Here to help: our response to COVID-19 Employees Consumers Businesses Communities Over 180,000 employees Three-quarters of our ~5,000 Prudently extending credit to Focus on areas where we can working from home branches are open; the vast businesses of all sizes for leverage our core business
Slide 3: 1Q20 Financial highlights
1Q20 Financial highlights ROTCE1 CET1 capital ratios2 Net payout LTM3 5% Std. 11.5%; Adv. 12.3% 124% 1Q20 net income of $2.9B and EPS of $0.78 Managed revenue of $29.1B4 Expense of $16.9B and managed overhead ratio of 58%4 Balance sheet Loans: – Average loans down 1% YoY and up 2% QoQ; exc
Slide 4: March activity
March activity Debit and credit card sales volume YoY IG issuance volume ($B)3 EOP loan and deposit growth YoY ($B) 100% Loan growth Revolver Deposit Supermarkets, $187 excluding loan sales draws 4 growth wholesale clubs & in Home Lending 23% discount stores 50% $105 $55 0% Retail $90 9% 9% Restaura
Slide 5: 1Q20 Financial results
1Q20 Financial results1 $B, except per share data $ O/(U) 1Q20 4Q19 1Q19 Net interest income $14.5 $0.3 ($0.0) Noninterest revenue 14.5 (0.4) (0.7) Managed revenue1 $B 1Q20 4Q19 1Q19 29.1 (0.1) (0.8) Net charge-offs $1.5 $1.5 $1.4 Expense Reserve build/(release) 6.8 (0.1) 0.1 16.9 0.5 0.5 Credit cos
Slide 6: 1Q20 Reserve build
1Q20 Reserve build Allowance for credit losses ($B)1 CECL adoption Reserve 12/31/2019 impact 1/1/2020 build 3/31/2020 Consumer Card $5.7 $5.5 $11.2 $3.8 $15.0 Home Lending 1.9 0.1 2.0 0.3 2.3 Other Consumer2 0.7 0.3 1.0 0.3 1.3 Total Consumer 8.3 5.9 14.2 4.4 18.6 Wholesale2 6.0 (1.6) 4.4 2.4 6.8 Fi
Slide 7: Fortress balance sheet and capital
Fortress balance sheet and capital $B, except per share data 1Q20 4Q19 1Q19 Basel III Standardized1 CET1 capital $184 $188 $186 1Q20 Advanced CET1 capital ratio of 12.3%1 11.5% 12.4% 12.1% Tier 1 capital $213 $214 $213 Tier 1 capital ratio 13.3% 14.1% 13.8% Total capital $248 $243 $241 Total capital
Slide 8: Consumer & Community Banking
Consumer & Community Banking1 $mm Financial performance $ O/(U) Net income of $191mm, down 95% YoY 1Q20 4Q19 1Q19 Revenue of $13.2B, down 2% YoY Revenue $13,171 ($624) ($319) Expense of $7.2B, up 3% YoY, driven by higher volume- and Consumer & Business Banking 6,091 (446) (570) revenue-related
Slide 9: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $2.0B, down 39% YoY; revenue of $9.9B, down 1% 1Q20 4Q19 1Q19 Banking revenue Revenue $9,948 $301 ($86) IB revenue of $886mm, down 49% YoY Investment Banking revenue 886 (937) (859) – $820mm of markdowns on HFS positi
Slide 10: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Net income of $147mm, down 86% YoY 1Q20 4Q19 1Q19 Revenue of $2.2B, down 10% YoY Revenue $2,178 ($119) ($235) Middle Market Banking 946 12 (28) Net interest income of $1.6B, down 7% YoY, driven by lower Corporate Client Banking 681 (78) (17
Slide 11: Asset & Wealth Management
Asset & Wealth Management1 $mm Financial performance $ O/(U) Net income of $664mm, flat YoY 1Q20 4Q19 1Q19 Revenue of $3.6B, up 3% YoY Revenue $3,606 ($94) $117 Asset Management 1,740 (152) (21) Higher management fees on higher average market levels and Wealth Management 1,866 58 138 net inflo
Slide 12: Corporate
Corporate1 $mm Financial performance $ O/(U) Revenue 1Q20 4Q19 1Q19 Revenue of $166mm, down $259mm YoY Revenue $166 $394 ($259) Expense 146 (197) (65) The quarter included $233mm of net investment securities Credit costs 8 9 6 gains Net income ($125) $236 ($376) YoY variance driven by lower ne
Slide 13: Outlook
Outlook1 Net interest income – Firmwide ($B) ~$13.7B in 2Q20 $57.8 $57+ $2.5 ~$55.5 $1 ($5) Growth Mix 2019 2020 Rates Balance sheet CIB Markets/ 2020 Investor Day growth/mix other outlook³ outlook² Noninterest revenue (“NIR”) – Firmwide Other4 Expense: Expect FY2020 adjusted expense to be ~$65B F
Slide 14: Notes
Notes Notes on non-GAAP financial measures 1. In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the resu
Slide 15: Notes
Notes Notes on slide 3 – March activity 1. Restaurants includes quick serve restaurants 2. T&E includes airlines, auto rental, lodging, travel agencies and other travel and entertainment 3. Includes total proceeds from global bond, medium-term note and preferred issuances for which JPMorgan Chase ac
Slide 16: 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