Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q1 2012 Earnings Presentation
22 slides from Jp Morgan Chase &'s earnings presentation, Apr 13, 2012
Slide 1: Financial Results 1Q12
FINANCIAL RESULTS 1Q12 April 13, 2012
Slide 2: 1Q12 Financial highlights
1Q12 Financial highlights 1Q12 net income of $5.4B; EPS of $1.31; revenue of $27.4B1 1Q12 results included the following significant items $mm, excluding EPS 2 Pretax Net income EPS2 Corporate – Expense for additional litigation reserves, predominantly for mortgage-related matters ($2,514) ($1,5
Slide 3: 1Q12 Financial results
1Q12 Financial results1 $mm, excluding EPS $ O/(U) 1Q12 4Q11 1Q11 Revenue (FTE)1 $27,417 $5,219 $1,626 Credit costs 726 (1,458) (443) Expense 18,345 3,805 2,350 Reported net income $5,383 $1,655 ($172) Net income applicable to common stock $5,017 $1,592 ($119) Reported EPS $1.31 $0.41 $0.03 ROE2 12%
Slide 4: Investment Bank
Investment Bank1 $mm Net income of $1.7B on revenue of $7.3B $ O/(U) DVA loss of $907mm 1Q12 4Q11 1Q11 ROE of 17%, 23% excl. DVA Revenue $7,321 $2,963 ($912) Investment banking fees 1,375 256 (404) IB fees of $1.4B, down 23% YoY on lower Fixed income markets 4,664 2,173 (574) industry volume
Slide 5: Retail Financial Services
Retail Financial Services1 $mm Net income of $1.8B, compared with a $ O/(U) net loss of $399mm in the prior year 1Q12 4Q11 1Q11 Revenue of $7.6B, up 40% YoY Net interest income $3,925 ($33) ($161) Noninterest revenue 3,724 1,287 2,344 Credit cost benefit of $96mm reflected Revenue $7,649 $1,25
Slide 6: Retail Financial Services: Consumer & Business Banking
Retail Financial Services Consumer & Business Banking $mm Financial performance $ O/(U) Consumer & Business Banking net income of 1Q12 4Q11 1Q11 $774mm, down 13% YoY Net interest income $2,675 ($39) $16 Noninterest revenue 1,585 (18) (172) Net revenue of $4.3B, down 4% YoY, driven by Revenue $4,
Slide 7: Retail Financial Services: Mortgage Production and Servicing
Retail Financial Services Mortgage Production and Servicing $mm Financial performance $ O/(U) Mortgage Production and Servicing net income of 1Q12 4Q11 1Q11 $461mm, compared with a net loss of $1.1B in the Production Production-related revenue excl. repurchase losses $1,619 $550 $722 prior year Pr
Slide 8: Retail Financial Services: Real Estate Portfolios
Retail Financial Services Real Estate Portfolios $mm Real Estate Portfolios net income of $518mm, compared with a net loss of $ O/(U) $162mm in the prior year 1Q12 4Q11 1Q11 Revenue $1,081 $21 ($83) Total net revenue of $1.1B, down 7% YoY Expense 419 (13) 64 driven by a decline in net interest i
Slide 9: Card Services & Auto
Card Services & Auto1 $mm Card Services & Auto $ O/(U) Net income of $1.2B, down 23% YoY 1Q12 4Q11 1Q11 Revenue of $4.7B, down 2% YoY and QoQ Revenue $4,714 ($100) ($77) Credit costs of $738mm Credit costs 738 (322) 385 Reduction of $750mm to the allowance for loan losses Expense 2,029 4 112
Slide 10: Commercial Banking
Commercial Banking1 $mm Net income of $591mm, up 8% YoY $ O/(U) Revenue of $1.7B, up 9% YoY 1Q12 4Q11 1Q11 EOP loan balances up 16% YoY and 3% QoQ; Revenue $1,657 ($30) $141 Middle Market loans up 19% YoY Middle Market Banking 825 15 70 Corporate Client Banking 337 11 47 7th consecutive quar
Slide 11: Treasury & Securities Services
Treasury & Securities Services1 $mm Net income of $351mm, up 11% YoY and 40% QoQ $ O/(U) 1Q12 4Q11 1Q11 Revenue of $2.0B, up 9% YoY and relatively flat Revenue $2,014 ($8) $174 QoQ Treasury Services 1,052 1 161 TS revenue of $1,052mm, up 18% YoY Worldwide Securities Services 962 (9) 13 Expense
Slide 12: Asset Management
Asset Management1 $mm Net income of $386mm, down 17% YoY $ O/(U) Revenue of $2.4B, down 1% YoY 1Q12 4Q11 1Q11 Revenue $2,370 $86 ($36) Record assets under management of $1.4T, up Private Banking 1,279 67 (38) 4% YoY Institutional 557 (1) 14 Retail 534 20 (12) QoQ, AUM net outflows of $8B due
Slide 13: Corporate/Private Equity
Corporate/Private Equity1 Net Income ($mm) Private Equity $ O/(U) Private Equity net revenue of $254mm 1Q12 4Q11 1Q11 Private Equity portfolio of $8.0B (5.6% of Private equity $134 $223 ($249) stockholders’ equity less goodwill) Corporate (697) (1,009) (1,036) Corporate Net income ($563) ($786)
Slide 14: Fortress balance sheet
Fortress balance sheet $B 1Q12 4Q11 1Q11 Basel I Tier 1 common capital1,2 $128 $123 $120 Basel III Tier 1 common capital1,2,3 128 122 116 Basel I Risk-weighted assets 1 1,236 1,221 1,193 Basel III Risk-weighted assets1,2,3 1,532 1,546 1,594 Total assets 2,320 2,266 2,198 Basel I Tier 1 common ratio1
Slide 15: Outlook
Outlook Retail Financial Services Corporate / Private Equity Consumer & Business Banking – 2012 outlook In 2012, Corporate quarterly net income, excluding Spread compression, given low interest rates, will Private Equity, and excluding significant negatively impact net income by $400mm+/- nonr
Slide 16: Agenda / Appendix
Agenda Page Appendix 15 FINANCIAL RESULTS 15
Slide 17: Consumer credit — Delinquency trends
Consumer credit — Delinquency trends (Excl. purchased credit-impaired loans and WaMu and Commercial Card portfolios) Home equity delinquency trend ($mm) Prime mortgage delinquency trend ($mm) $3,500 30 – 150 day delinquencies $4,000 30 – 150 day delinquencies 150+ day delinquencies 150+ day delinque
Slide 18: Coverage ratios are strong
Coverage ratios are strong $mm Loan loss reserve/Total loans1 Loan loss reserve Nonperforming loans Loan loss reserve/NPLs1 6.00% 500% 38,186 5.00% 400% 35,836 34,161 4.00% 32,266 300% 29,750 3.00% 200% 28,520 17,050 28,350 27,609 25,871 2.00% 16,179 100% 15,503 14,841 13,441 11,928 11,005 9,993 10,
Slide 19: Core net interest margin
Core net interest margin1 Net interest income trend 2 Core NII Market-based NII Core NIM Market-based NIM JPM NIM 3.91% 3.85% 3.66% 3.66% 3.51% 3.54% 3.33% 3.19% 3.14% 3.10% 3.42% 3.32% 3.06% 3.01% 2.88% 2.89% 2.72% 2.66% 2.70% 2.61% 1.92% 1.77% 1.47% 1.42% 1.42% 1.43% 1.45% 1.42% 1.35% 1.29% 3 FY20
Slide 20: IB league tables
IB league tables League table results For 1Q12, JPM ranked: 1Q12 FY11 #1 in Global IB fees Rank Share Rank Share #1 in Global Debt, Equity & Equity-related Based on fees #1 in Global Long-term Debt Global IB fees 1 1 7.9% 1 8.0% #1 in Global M&A Announced Based on volumes Global Debt, Equi
Slide 21: Notes on non-GAAP & other financial measures
Notes on non-GAAP & other financial measures 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
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