Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — 4Q14 Earnings Presentation
22 slides from Jp Morgan Chase &'s earnings presentation, Jan 14, 2015
Slide 1: Financial Results 4Q14
FINANCIAL RESULTS 4Q14 January 14, 2015
Slide 2: 4Q14 Financial highlights
4Q14 Financial highlights 4Q14 net income of $4.9B and EPS of $1.19 Revenue of $23.6B1, adjusted expense of $14.3B2 and ROTCE of 11%3 4Q14 results included as a significant item $1.0B (after-tax) Firmwide legal expense Fortress balance sheet Basel III Advanced Fully Phased-In Common Equity
Slide 3: 4Q14 Financial results
4Q14 Financial results1 $mm, excluding EPS $ O/(U) 4Q14 3Q14 4Q13 Revenue (FTE)1 $23,552 ($1,607) ($560) Credit costs 840 83 736 Expense 15,409 (389) (143) Reported net income $4,931 ($641) ($347) Net income applicable to common stockholders 4,488 (647) (450) Reported EPS 1.19 (0.17) (0.11) ROE2 9%
Slide 4: Full year 2014 financial results
Full year 2014 financial results1 $mm, excluding EPS $ O/(U) FY 2014 FY 2013 FY 2013 Revenue (FTE)1 $97,923 $99,798 ($1,875) Credit costs 3,139 225 2,914 Expense 61,274 70,467 (9,193) Reported net income $21,762 $17,923 $3,839 Net income applicable to common stockholders 20,093 16,593 3,500 Reported
Slide 5: Fortress balance sheet and returns
Fortress balance sheet and returns1 $B, except where noted 4Q14 3Q14 4Q13 Basel III Advanced Fully Phased-In2 4Q14 Basel III CET1 Advanced $165 $163 $151 Transitional of CET1 ratio 10.2% 10.1% 10.1% 9.5% Tier 1 Capital $185 $183 $162 Tier 1 Capital ratio 11.4% 11.3% 10.2% Total Capital $206 $201 $19
Slide 6: Preferred stock dividend allocation
Preferred stock dividend allocation1 Change in reporting – impact to 4Q14 results 4Q14 summary results by line of business ($mm) Lines of business CCB CIB CB AM Corp / PE Total Firm Net interest income NII - previous methodolgy $7,020 $2,481 $1,089 $599 $135 $11,324 Plus: preferred stock dividends (
Slide 7: Consumer & Community Banking
Consumer & Community Banking1 $mm Leadership positions $ O/(U) Consumer & Business Banking 4Q14 3Q14 4Q13 #1 in deposit growth for the third consecutive year4 Net interest income $7,128 ($25) ($47) #1 in customer satisfaction among the largest U.S. banks for the Noninterest revenue 3,821 (393) (
Slide 8: Consumer & Community Banking: Consumer & Business Banking
Consumer & Community Banking Consumer & Business Banking $mm Financial performance $ O/(U) Net income of $861mm, up 8% YoY, but down 7% QoQ 4Q14 3Q14 4Q13 Net revenue of $4.6B, up 3% YoY, but down 2% QoQ Net interest income $2,733 ($74) $10 Expense flat YoY and QoQ Noninterest revenue 1,826 (2
Slide 9: Consumer & Community Banking: Mortgage Banking
Consumer & Community Banking Mortgage Banking $mm Financial performance $ O/(U) Mortgage Banking net income of $338mm 4Q14 3Q14 4Q13 Mortgage Production Mortgage Production pretax income of $204mm Production-related revenue, excl. repurchase (losses)/benefits $447 $49 ($53) Revenues, excl. rep
Slide 10: Consumer & Community Banking: Card, Merchant Services & Auto
Consumer & Community Banking Card, Merchant Services & Auto $mm Financial performance $ O/(U) Net income of $980mm, down 7% YoY 4Q14 3Q14 4Q13 Net income, excluding loan loss reserve releases3, up 2% Revenue $4,515 ($164) ($201) YoY Expense 2,089 95 (141) Revenue of $4.5B, down 4% YoY, includi
Slide 11: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Pro forma results ($mm)7,8 $ O/(U) $ O/(U) 4Q14 3Q14 4Q13 4Q14 3Q14 4Q13 Corporate & Investment Bank revenue $7,386 ($1,732) $1,229 Corporate & Investment Bank revenue $7,579 ($1,539) ($574) Investment banking fees 1,811 269 140 Total Banking 3,106 311 44 Treasury Se
Slide 12: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Net income of $693mm, down 3% YoY and up 3% QoQ 4Q14 3Q14 4Q13 Revenue $1,770 $67 ($106) Revenue of $1.8B, down 6% YoY and up 4% QoQ Middle Market Banking 705 6 (53) Corporate Client Banking 511 22 17 Credit cost benefit of $48mm Commercial
Slide 13: Asset Management
Asset Management1 $mm Financial performance $ O/(U) Net income of $540mm, down 7% YoY and 8% QoQ 4Q14 3Q14 4Q13 Revenue $3,200 $154 – Revenue of $3.2B, flat YoY and up 5% QoQ Global Investment Management 1,740 131 ($59) Record AUM of $1.7T, up 9% YoY and 2% QoQ Global Wealth Management 1,460 2
Slide 14: Corporate/Private Equity
Corporate/Private Equity1 $mm Financial performance $ O/(U) Private Equity 4Q14 3Q14 4Q13 Private Equity net income of $107mm Private Equity $107 $36 $94 Treasury and CIO Treasury and CIO (205) 128 63 Treasury and CIO net loss of $205mm, compared to Other Corporate 645 288 (207) a net loss of $3
Slide 15: Agenda
Agenda Page Appendix 14 FINANCIAL RESULTS 14
Slide 16: Consumer credit – Delinquency trends
Consumer credit – Delinquency trends1 Home equity delinquency trend ($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 $50
Slide 17: Real Estate Portfolios and Card Services – Coverage ratios
Real Estate Portfolios and Card Services – Coverage ratios1 Real Estate Portfolios and Card Services credit data ($mm) O/(U) 4Q14 3Q14 4Q13 4Q13 Real Estate Portfolios (NCI) Net charge-offs $111 $81 $167 ($56) NCO rate 0.36% 0.27% 0.57% (21) bps Allowance for loan losses $2,168 $2,268 $2,568 ($400)
Slide 18: Firmwide – Coverage ratios
Firmwide – Coverage ratios $mm 5.00% Loan loss reserve/Total loans1 Loan loss reserve Nonperforming retained loans Loan loss reserve/NPLs1 500% 4.00% 400% 3.00% 21,936 300% 20,780 19,384 17,571 16,264 15,847 2.00% 15,326 14,889 200% 14,185 1.00% 10,609 100% 10,296 9,578 9,027 8,317 8,123 7,634 7,241
Slide 19: IB League Tables
IB League Tables League table results – wallet share League table results – volumes FY2014 FY2013 FY2014 FY2013 Rank Share Rank Share Rank Share Rank Share 1 6 Based on fees : Based on volumes : Global Debt, Equity & Equity-related 1 7.6% 1 8.3% Global Debt, Equity & Equity-related 1 6.8% 1 7.3% U.S
Slide 20: 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 and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. The Firm’s definition of managed basis starts wit
Slide 21: Notes: Reconciliation of reported to adjusted results
Notes 8. The Firm presents pretax income, net income (assumes a tax rate of 38% for items that are tax deductible) and earnings per share excluding certain reported significant items and other notable items. These measures should be viewed in addition to, and not as a substitute for, the Firm’s repo
Slide 22: 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