Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q1 2015 Earnings Presentation
21 slides from Jp Morgan Chase &'s earnings presentation, Apr 14, 2015
Slide 1: Financial Results 1Q15
FINANCIAL RESULTS 1Q15 April 14, 2015
Slide 2: 1Q15 Financial highlights
1Q15 Financial highlights ROTCE1 CET1 ratio2 Overhead ratio3 Net payout ratio LTM4 14% 10.6% 60% 53% 1Q15 net income of $5.9B and EPS of $1.45 Revenue of $24.8B3 Adjusted expense of $14.2B5 and adjusted overhead ratio of 57%5 Fortress balance sheet Basel III Advanced CET1 capital2 of $167B
Slide 3: 1Q15 Financial results
1Q15 Financial results1 $mm, excluding EPS $ O/(U) 1Q15 4Q14 1Q14 Revenue (FTE)1 $24,820 $1,271 $967 Expense 14,883 (526) 247 Credit costs 959 119 109 Reported net income $5,914 $983 $645 Net income applicable to common stockholders $5,452 $964 $559 Reported EPS $1.45 $0.26 $0.17 ROE2 11% 9% 10% 1Q1
Slide 4: Fortress balance sheet and returns
Fortress balance sheet and returns1 $B, except where noted 1Q15 4Q14 1Q14 Basel III Advanced Fully Phased-In2 1Q15 Basel III CET1 Standardized Fully $167 $165 $156 Phased-in of CET1 ratio 10.8%2 10.6% 10.2% 9.5% Tier 1 capital $189 $185 $171 Tier 1 capital ratio 12.0% 11.4% 10.4% Total capital $210
Slide 5: Balance sheet and NII/NIM – QoQ change
Balance sheet and NII/NIM – QoQ change Assets: Average and EOP ($B) Deposits: Average and EOP ($B) Average EOP Average EOP $46B $4B $2,511$2,511 $2,557$2,557 ∆ $2,573$2,573 $2,577$2,577∆ Cash¹ Cash¹ Cash¹ Cash¹ Cash¹ Cash¹ Cash¹ Cash¹ $38B $5B $439 $439 $505 $505 $66 $512 $512 $529 $529$17 $1,337 $1
Slide 6: Consumer & Community Banking
Consumer & Community Banking1 $mm Leadership positions $ O/(U) Consumer & Business Banking 1Q15 4Q14 1Q14 #1 in deposit growth for the third consecutive year4 Net interest income $6,968 ($160) ($132) #1 in customer satisfaction among the largest U.S. banks for the Noninterest revenue 3,736 (85)
Slide 7: Consumer & Community Banking – Consumer & Business Banking
Consumer & Community Banking Consumer & Business Banking $mm Financial performance $ O/(U) Net income of $828mm, up 10% YoY and down 4% QoQ 1Q15 4Q14 1Q14 Net revenue of $4.4B, down 1% YoY and 4% QoQ on Net interest income $2,609 ($124) ($117) spread compression, day count and seasonality Nonint
Slide 8: Consumer & Community Banking – Mortgage Banking
Consumer & Community Banking Mortgage Banking $mm Financial performance $ O/(U) Net income of $326mm 1Q15 4Q14 1Q14 Excluding loan loss reserve releases5, up $256mm YoY Net interest income $1,056 $26 ($31) Revenue of $1.7B, up 9% YoY, driven by lower MSR Noninterest revenue 693 (152) 182 losse
Slide 9: Consumer & Community Banking – Card, Commerce Solutions & Auto
Consumer & Community Banking Card, Commerce Solutions & Auto $mm Financial performance $ O/(U) Net income of $1.1B 1Q15 4Q14 1Q14 Excluding loan loss reserve releases4, up 11% YoY Net interest income 3,303 (62) 16 Revenue of $4.6B, up 1% YoY and 2% QoQ Noninterest revenue 1,294 144 43 Revenue
Slide 10: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $2.5B on revenue of $9.6B 1Q15 4Q14 1Q14 ROE of 16% Corporate & Investment Bank revenue $9,582 $2,199 $740 Investment banking fees 1,761 (50) 317 Banking revenue Treasury Services 1,012 (19) (20) IB fees of $1.8B, u
Slide 11: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Net income of $598mm, up 1% YoY and down 14% QoQ 1Q15 4Q14 1Q14 Revenue $1,742 ($28) $64 Revenue of $1.7B, up 4% YoY and down 2% QoQ Middle Market Banking 2 677 (15) (23) Record gross investment banking revenue of $753mm, up Corporate Clien
Slide 12: Asset Management
Asset Management1 $mm Financial performance $ O/(U) Net income of $502mm, up 11% YoY and down 7% QoQ 1Q15 4Q14 1Q14 Revenue $3,005 ($195) $205 Revenue of $3.0B, up 7% YoY and down 6% QoQ Global Investment Management 1,533 (207) 115 Record AUM of $1.8T, up 7% YoY and 1% QoQ Global Wealth Manage
Slide 13: Corporate
Corporate1 $mm Financial performance $ O/(U) Treasury and CIO 1Q15 4Q14 1Q14 Treasury and CIO net loss of $221mm, compared to Treasury and CIO ($221) ($16) $98 a net loss of $205mm in 4Q14 Other Corporate2 279 (473) (155) Results include $173mm pretax loss associated with the amortization of cas
Slide 14: Outlook
Outlook Firmwide Corporate & Investment Bank Expect FY2015 core loan growth of 10%+/- For 2Q15, expect business simplification to generate YoY negative variance in Markets revenue of ~$300mm, or 6%, Expect FY2015 NCOs to remain low at $4B+ with an associated ~$300mm reduction in expense Expe
Slide 15: Agenda
Agenda Page Appendix 14 FINANCIAL RESULTS 14
Slide 16: Consumer credit – Delinquency trends
Consumer credit – Delinquency trends1 Home equity delinquency trend ($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 $50
Slide 17: Mortgage Banking and Card Services – Coverage ratios
Mortgage Banking and Card Services – Coverage ratios1 Mortgage Banking and Card Services credit data ($mm) O/(U) 1Q15 4Q14 1Q14 1Q14 Mortgage Banking (NCI) Net charge-offs $104 $113 $177 ($73) NCO rate 0.30% 0.33% 0.55% (25) bps Allowance for loan losses $2,088 $2,188 $2,388 ($300) 2 ALL/annualized
Slide 18: Firmwide – Coverage ratios
Firmwide – Coverage ratios1 $mm 5.00% Loan loss reserve/Total loans Loan loss reserve Nonperforming retained loans Loan loss reserve/NPLs 500% 4.00% 400% 3.00% 300% 20,780 19,384 17,571 2.00% 16,264 15,847 15,326 200% 14,889 14,185 14,065 1.00% 10,296 100% 9,578 9,027 8,317 8,123 7,634 7,241 7,017 6
Slide 19: IB League Tables
IB League Tables League table results – wallet share League table results – volumes 1Q15 FY2014 1Q15 FY2014 Rank Share Rank Share Rank Share Rank Share 1 6 Based on fees : Based on volumes : Global Debt, Equity & Equity-related 1 8.2% 1 7.6% Global Debt, Equity & Equity-related 1 7.2% 1 6.8% U.S. De
Slide 20: Notes
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 21: 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