Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q1 2010 Earnings Presentation
20 slides from Jp Morgan Chase &'s earnings presentation, Apr 15, 2010
Slide 1: Financial Results 1Q10
FINANCIAL RESULTS 1Q10 April 14, 2010
Slide 2: 1Q10 Financial highlights
1Q10 Financial highlights 1Q10 Net income of $3.3B; EPS of $0.74; managed revenue1 of $28.2B Results include the following significant items: $ in millions, excluding EPS Pretax Net Income EPS LOB IB credit cost benefit $462 $286 $0.07 IB Increase to loan loss allowance for purchased credit-impaired
Slide 3: 1Q10 Managed results
1Q10 Managed results1 $ in millions $ O/(U) 1Q10 4Q09 1Q09 Revenue (FTE)1 $28,172 $2,936 $1,250 Credit Costs 7,010 (1,891) (3,050) Expense 16,124 4,120 2,751 Reported Net Income $3,326 $48 $1,185 Net Income Applicable to Common $2,974 $22 $1,455 Reported EPS $0.74 — $0.34 ROE2 8% 8% 5% ROE Net of GW
Slide 4: Investment Bank
Investment Bank $ in millions Net income of $2.5B on revenue of $8.3B ROE of 25% $ O/(U) IB fees of $1.4B up 5% YoY 1Q10 4Q09 1Q09 Revenue $8,319 $3,390 ($52) Ranked #1 YTD in Global Investment Banking Fees Investment Banking Fees 1,446 (446) 66 Fixed Income Markets revenue of $5.5B up 12% YoY Fixed
Slide 5: Retail Financial Services — drivers
Retail Financial Services — drivers Retail Banking ($ in billions) Average deposits of $333.9B down 3% YoY and up 1% QoQ: YoY decline largely due to the maturation of high rate WaMu CDs 1Q10 4Q09 1Q09 Deposit margin expansion YoY reflects disciplined pricing strategy Key Statistics and a portfolio s
Slide 6: Retail Financial Services
Retail Financial Services $ in millions Retail Financial Services net loss of $131mm compared with net income of $474mm in the prior year $ O/(U) 1Q10 4Q09 1Q09 Retail Banking net income of $898mm up 4% YoY: Retail Financial Services Total revenue of $4.3B flat YoY as the benefit from a shift to Net
Slide 7: Home Lending update
Home Lending update Key statistics1 Overall commentary 1Q10 4Q09 1Q09 Delinquency trends showing continued stability, EOP owned portfolio ($B) with some initial signs of improvement across Home Equity $97.7 $101.4 $111.7 products Prime Mortgage2,3 60.5 59.4 65.4 Subprime Mortgage3 13.2 12.5 14.6 Pri
Slide 8: Card Services (Managed)
Card Services (Managed)1 $ in millions Net loss of $303mm compared with a net loss of $547mm in 1Q09 $ O/(U) 1Q10 4Q09 1Q09 Credit costs of $3.5B include a reduction of $1.0B Revenue $4,447 ($701) ($682) to the allowance for loan losses, reflecting lower Credit Costs 3,512 (727) (1,141) estimated lo
Slide 9: Commercial Banking
Commercial Banking1 $ in millions Net income of $390mm up 15% YoY $ O/(U) Average loan balances down 15% YoY and 4% 1Q10 4Q09 1Q09 QoQ due to reduced client demand, while Revenue $1,416 $10 $14 average liability balances up 16% YoY Middle Market Banking 746 (14) (6) Commercial Term Lending 229 38 1
Slide 10: Treasury & Securities Services
Treasury & Securities Services $ in millions Net income of $279mm down 9% YoY and up $ O/(U) 18% QoQ Pretax margin of 25% 1Q10 4Q09 1Q09 Revenue $1,756 ($79) ($65) Liability balances down 10% YoY Worldwide Securities Services 874 (43) (16) Treasury Services 882 (36) (49) Assets under custody up 13%
Slide 11: Asset Management
Asset Management $ in millions Net income of $392mm up 75% YoY $ O/(U) Pretax margin of 31% 1Q10 4Q09 1Q09 Revenue of $2.1B up 25% YoY due to the effect of Revenue $2,131 ($64) $428 higher market levels, higher placement fees, net Private Bank 698 (25) 115 inflows to products with higher margins and
Slide 12: Corporate/Private Equity
Corporate/Private Equity Net Income ($ in millions) Private Equity $ O/(U) Private Equity gains of $136mm 1Q10 4Q09 1Q09 Private Equity portfolio of $7.3B (6.3% of Private Equity $55 ($86) $335 shareholders’ equity less goodwill) Corporate 173 (883) 155 Corporate Net Income $228 ($969) $490 Investme
Slide 13: Capital Management
Capital Management $ in billions 1Q10 4Q09 1Q09 Tier 1 Capital1 $131 $133 $112 Tier 1 Common Capital1,2 $104 $105 $88 Risk-Weighted Assets1 $1,147 $1,198 $1,207 Total Assets $2,136 $2,032 $2,079 Tier 1 Capital Ratio1 11.5% 11.1% 9.3% Tier 1 Common Ratio1,2 9.1% 8.8% 7.3% Firm adopted new accounting
Slide 14: Outlook
Outlook Retail Financial Services Card Services NSF/OD policy changes currently estimated Chase losses of approximately 9.5% +/- in 2Q10 to reduce annualized after-tax income by with likely some improvement in 2H10 $500mm +/- WaMu losses will remain 20% +/- over the next several quarters Prior loss
Slide 15: Appendix
F I N A N C I A L R E S U L T S Agenda Appendix 14 14 Page
Slide 16: Consumer credit—delinquency trends
Consumer credit—delinquency trends Excluding purchased credit-impaired loans Home Equity delinquency trend ($mm) Prime Mortgage delinquency trend ($mm) $4,000 30+ day delinquencies 30-150 day delinquencies $6,500 30+ day delinquencies 30-150 day delinquencies 150+ day delinquencies 150+ day delinque
Slide 17: LLR increased due to accounting rule change, coverage ratio remains strong
LLR increased due to accounting rule change, coverage ratio remains strong $ in millions Loan Loss Reserve/Total Loans1 Loan Loss Reserve Loan Loss Reserve/NPLs1 6.00% 500% Nonperforming Loans 5.00% 38,186 400% 30,633 31,602 4.00% 29,072 300% 27,381 3.00% 200% 23,164 19,052 2.00% 13,246 100% 11,746
Slide 18: IB League Tables
IB League Tables League table results Ranked #1 in Global Fees for 1Q10, with 7.8% 1Q10 2009 market share Rank Share Rank Share Ranked #1 for 1Q10 in: Based on fees: Global Debt, Equity & Equity-related Global IB fees1 #1 7.8% #1 9.1% Global Equity & Equity-related Based on volumes: Global Loan Synd
Slide 19: Notes on non-GAAP financial measures
Notes on non-GAAP financial measures 1. In addition to analyzing the Firm’s results on a reported basis, management analyzes the Firm’s results and the results of the lines of business on a managed basis, which is a non-GAAP financial measure. For 2010 and 2009, the Firm’s definition of managed basi
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. Such statements are based upon the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and unc