Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — 4Q15 Earnings Presentation
23 slides from Jp Morgan Chase &'s earnings presentation, Jan 14, 2016
Slide 1: Financial Results 4Q15
FINANCIAL RESULTS 4Q15 January 14, 2016
Slide 2: 4Q15 Financial highlights
4Q15 Financial highlights ROTCE1 CET1 ratio2 Overhead ratio3 Net payout ratio LTM4 11% 11.6% 60% 48% 4Q15 net income of $5.4B and EPS of $1.32 Revenue of $23.7B3 Adjusted expense of $13.6B5 and adjusted overhead ratio of 57%5 Fortress balance sheet Balance sheet down by ~$220B in 2015, dri
Slide 3: 4Q15 Financial results
4Q15 Financial results1 $B, excluding EPS $ O/(U) 4Q15 3Q15 4Q14 Net interest income $11.5 $0.3 $0.2 Noninterest revenue 12.2 (0.1) – Revenue (FTE)1 23.7 0.2 0.2 Expense 14.3 (1.1) (1.1) Credit costs 1.3 0.6 0.4 Reported net income $5.4 ($1.4) $0.5 Net income applicable to common stockholders $4.9 (
Slide 4: Full year 2015 financial results
Full year 2015 financial results1 $B, excluding EPS $ O/(U) FY2015 FY2014 FY2014 Net interest income $44.6 $44.6 – Noninterest revenue 52.0 53.3 (1.3) Revenue (FTE)1 96.6 97.9 (1.3) Expense 59.0 61.3 (2.3) FY2015: Net charge-offs of $4.1B Credit costs 3.8 3.1 0.7 Reported net income $24.4 $21.7 $2.7
Slide 5: Balance Sheet, NII/NIM & G-SIB
Balance Sheet, NII/NIM & G-SIB Assets ($B) Deposits ($B) Average EOP $2,511 ∆ $2,572 ∆ $2,408 $2,352 Average EOP Cash¹ Cash¹ $439 Cash¹ ($38) $512 $401 Cash¹ ($151) $361 $1,363 $1,299 $1,277 $1,280 Securities Securities ($53) ∆ Securities Securities $351 $298 $348 $291 ($57) Non-operating Non-operat
Slide 6: Fortress balance sheet and returns
Fortress balance sheet and returns1 $B, except where noted 4Q15 3Q15 4Q14 2 Basel III Advanced Fully Phased-In CET1 4Q15 Basel III $173 $172 $165 CET1 ratio Standardized Fully Phased-In of 11.7% 11.6% 11.4% 10.2% Tier 1 capital $199 $198 $185 Tier 1 capital ratio 13.3% 13.1% 11.4% Total capital $220
Slide 7: Consumer & Community Banking
Consumer & Community Banking1 $mm Leadership positions $ O/(U) Consumer & Business Banking 4Q15 3Q15 4Q14 Deposit volume growing at nearly twice the industry growth rate5 Net interest income $7,184 $34 $56 Largest active mobile customer base among major U.S. banks6 Noninterest revenue 4,038 309
Slide 8: Consumer & Community Banking – Consumer & Business Banking
Consumer & Community Banking Consumer & Business Banking $mm Financial performance $ O/(U) Net income of $968mm, up 12% YoY and 1% QoQ 4Q15 3Q15 4Q14 Revenue of $4.6B, up 1% YoY and QoQ Net interest income $2,609 $4 ($124) Expense of $2.9B, down 3% YoY and flat QoQ Noninterest revenue 1,978 28
Slide 9: Consumer & Community Banking – Mortgage Banking
Consumer & Community Banking Mortgage Banking $mm Financial performance $ O/(U) Net income of $266mm, down 21% YoY 4Q15 3Q15 4Q14 Revenue of $1.7B, down 10% YoY primarily on lower Net interest income $1,147 $35 $117 repurchase benefit and lower net servicing revenue, and up Noninterest revenue 5
Slide 10: Consumer & Community Banking – Card, Commerce Solutions & Auto
Consumer & Community Banking Card, Commerce Solutions & Auto $mm Financial performance $ O/(U) Net income of $1.2B, up 20% YoY 4Q15 3Q15 4Q14 Revenue of $5.0B, up 10% YoY and 4% QoQ Net interest income $3,428 ($5) $63 Expense of $2.2B, up 4% YoY driven by higher auto lease Noninterest revenue
Slide 11: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $1.7B on revenue of $7.1B 4Q15 3Q15 4Q14 ROE of 10%; 11% adjusted for legal expense and reserve build7 Corporate & Investment Bank revenue $7,069 ($1,099) ($314) Investment banking revenue 2 1,470 (60) (180) Banking r
Slide 12: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Net income of $550mm, down 21% YoY and up 6% QoQ 4Q15 3Q15 4Q14 Revenue $1,760 $116 ($10) Revenue of $1.8B, down 1% YoY and up 7% QoQ Middle Market Banking 702 27 10 Corporate Client Banking 470 24 (54) Credit costs of $117mm Commercial Ter
Slide 13: Asset Management
Asset Management1 $mm Financial performance $ O/(U) Net income of $507mm, down 6% YoY and up 7% QoQ 4Q15 3Q15 4Q14 Revenue $3,045 $151 ($155) Revenue of $3.0B, down 5% YoY and up 5% QoQ Global Investment Management 1,615 132 (125) Expense of $2.2B, down 5% YoY and up 4% QoQ Global Wealth Manag
Slide 14: Corporate
Corporate1 $mm Financial performance $ O/(U) Treasury and CIO 4Q15 3Q15 4Q14 Treasury and CIO net income of $138mm, compared Treasury and CIO $138 $178 $343 to a net loss of $40mm in 3Q15 Current quarter results include a pre-tax benefit of Other Corporate 84 (1,673) (668) ~$178mm as a result of
Slide 15: Outlook
Outlook Firmwide Consumer & Community Banking Expect 1Q16 Firmwide NII and NIM to be flat to slightly Expect Mortgage Banking NIR to be down by ~$700mm in up sequentially 2016 Expect Mortgage Banking NCOs to be ~$60mm per quarter in 2016 Corporate & Investment Bank Expect 1Q16 Card Services
Slide 16: Appendix
Agenda Page Appendix 15 15 JPMORGAN CHASE & Co.
Slide 17: Consumer credit – Delinquency trends
Consumer credit – Delinquency trends1 Home equity delinquency trend ($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 $50
Slide 18: Mortgage Banking and Card Services – Coverage ratios
Mortgage Banking and Card Services – Coverage ratios1 Mortgage Banking and Card Services credit data ($mm) O/(U) 4Q15 3Q15 4Q14 4Q14 Mortgage Banking (NCI) Net charge-offs $59 $41 $113 ($54) NCO rate 0.13% 0.10% 0.33% (20) bps Allowance for loan losses $1,588 $1,588 $2,188 ($600) 2 ALL/annualized NC
Slide 19: Firmwide – Coverage ratios
Firmwide – Coverage ratios1 $mm $mm 3.00% Loan loss reserve/Total loans1 Loan loss reserve 400% Nonperforming retained Loan loss reserve/NPLs1 loans 300% 2.00% 200% 1.00% 16,264 15,847 15,326 14,889 14,185 14,065 13,555 100% 13,915 13,466 8,317 8,123 7,634 7,241 7,017 6,921 6,645 6,616 6,303 0.00% 0
Slide 20: IB League Tables
IB League Tables League table results – wallet share League table results – volumes FY2015 FY2014 FY2015 FY2014 Rank Share Rank Share Rank Share Rank Share Based on fees 1 : Based on volumes 6 : Global Debt, Equity & Equity-related 1 7.7 % 1 7.6% Global Debt, Equity & Equity-related 1 6.8 % 1 6.8% U
Slide 21: Notes on non-GAAP financial measures
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 22: Additional notes on financial measures
Notes Additional notes on financial measures 1. Core loans include loans considered central to the Firm’s ongoing businesses; core loans exclude loans classified as trading assets, runoff portfolios, discontinued portfolios and portfolios the Firm has an intent to exit. 2. Effective January 1, 2015,
Slide 23: 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