Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Investor Day (February 2020)
19 slides from Jp Morgan Chase &'s investor day presentation, Feb 25, 2020
Slide 1: Commercial Banking
COMMERCIAL BANKING February 25, 2020 FIRM OVERVIEW CORPORATE & INVESTMENT BANK CONSUMER & COMMUNITY BANKING ASSET & WEALTH MANAGEMENT COMMERCIAL BANKING
Slide 2: Commercial Banking – executing a proven strategy
Commercial Banking – executing a proven strategy Clients at the center of everything we do Client focus Coverage strategically aligned to best serve our clients Local delivery and decision-making, with deep sector expertise Industry-leading, broad-based capabilities Strong franchise Operat
Slide 3: Strong results in 2019 driven by consistent client focus
Strong results in 2019 driven by consistent client focus Client focus Financial performance 2017 2018 2019 2017 2018 2019 1,766 1,922 2,101 $8.6 $9.1 $9.0 Bankers1 Revenue ($B) 278 295 $3.5 $4.2 $3.9 236 Client calls (000s)2 Net income ($B) 1,706 1,062 1,232 8 bps New relationships2 NCO rate 2 bps 3
Slide 4: Tremendous opportunity to grow across our C&I franchise
Tremendous opportunity to grow across our C&I franchise Continuing to expand and invest in our capabilities to acquire new great clients… Innovation Economy Government International 39k C&I prospects Targeting 5,400 prospects Pursuing 600 government Focusing on ~1,200 non-U.S. across high-growth ind
Slide 5: Executing middle market expansion strategy
Executing middle market expansion strategy Expansion market revenue ($mm)1 $1,000 47 MSAs added since 20082 $723 $647 460 MMBSI expansion market bankers3 $521 $412 $332 $354 $298 $234 $139 $53 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LT Target 2010-19 CAGR Clients (#) 820 1,100 1,360 1,470
Slide 6: Substantial, visible opportunity across new markets
Substantial, visible opportunity across new markets Los Angeles – new market Chicago – legacy market 2nd 9 3k 3rd 150+ 3k Largest MSA Years in market Clients & prospects Largest MSA Years in market Clients & prospects Strong performance to date in Los Angeles, with significant market opportunity Los
Slide 7: Well positioned to build upon our strong middle market franchise
Well positioned to build upon our strong middle market franchise Middle Market Banking & Specialized Industries market opportunity Prospective 36k+ MMBSI clients1 MMBSI 125 locations1 Top 100 MSAs in 75 Middle Market footprint MMBSI offices located 86% within branch network2 MMBSI footprint Prospect
Slide 8: Replicating our proven strategy internationally
Replicating our proven strategy internationally Targeting non-U.S. headquartered global companies Building with discipline Foreign companies focused on global growth, driving Established new teams across 10 countries in EMEA, demand for international banking solutions APAC and LATAM Providing
Slide 9: Specialized industries model drives superior value and risk management
Specialized industries model drives superior value and risk management Prudent industry and client selection >50% Clients with specialized industry coverage Deep industry expertise in underwriting Sector-specific advice and content to support clients Industry-tailored client solutions 17 Spe
Slide 10: Substantial opportunity to address the needs of the healthcare ecosystem
Substantial opportunity to address the needs of the healthcare ecosystem Well-positioned to capture the large and growing opportunity ~$4T healthcare expenditure in the U.S.1 Growing faster than U.S. GDP1 On pace to represent ~20% of U.S. GDP1 Dedicated healthcare bankers 800 Clients and specialists
Slide 11: Differentiated treasury capabilities provide substantial value to clients
Differentiated treasury capabilities provide substantial value to clients Leveraging benefits of scale and breadth of market leading solutions… Integrated payments Liquidity management Merchant services Cross-border solutions Payment capabilities to realize Sophisticated tools to manage End-to-end s
Slide 12: Delivering the best investment bank to CB clients
Delivering the best investment bank to CB clients Commercial Banking gross investment banking revenue1 ($B) JPMC N.A. IB fees represented 44% by CB clients2 $3.0 $2.7 $2.5 $2.4 $2.3 $2.2 $2.0 $1.7 $1.6 $1.4 $1.3 $1.2 $1.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LT Target 11 1 Rep
Slide 13: Positioned for continued long-term success in CRE
Positioned for continued long-term success in CRE Community Development Banking Real Estate Banking Commercial Term Lending ~600 clients ~600 clients ~33,000 clients Capital to support affordable housing Banking top-tier clients in major markets Term financing on stabilized properties in devel
Slide 14: Strong risk focus and smart growth across our portfolio
Strong risk focus and smart growth across our portfolio Average loans by client segment ($B) Rigorous client selection Limiting exposure to riskier industries and C&I CRE 1 asset classes across C&I and CRE $206 $208 $198 Market and industry expertise Benefiting from market knowledge and specialized
Slide 15: Maintaining risk discipline – C&I
Maintaining risk discipline – C&I Portfolio summary Market commentary Strong credit performance through the cycle Credit quality remains strong, with no material, 87% of non-investment grade exposure is secured1 broad-based signs of deterioration in the market Diversified across industries a
Slide 16: Maintaining risk discipline – CRE
Maintaining risk discipline – CRE Portfolio summary Market commentary $80B of loans in Commercial Term Lending, with $2mm average loan size Competition remains elevated with late-cycle LTV ratio of 51%, DSC ratio of 1.5x for 2019 originations1 characteristics, particularly from non-bank lender
Slide 17: Driving efficiency while continuing to invest in the franchise
Driving efficiency while continuing to invest in the franchise Growth Market expansion People Empowering front office Entering new markets Investing in talent through Implemented new CRM1 system; domestically and internationally hiring, training and development onboarded 3k+ users Client value Digit
Slide 18: Financial targets
Financial targets 2019 2014-2019 Target Middle Market $723mm 17% CAGR $1.0B Execute growth expansion initiatives Investment banking1 $2.7B 7% CAGR $3.0B (long-term revenue targets) International2 $465mm 8% CAGR $1.0B Maintain expense discipline Overhead ratio 39% 39% avg. 40% +/- (medium-term) Optim
Slide 19: Positioned for continued success over the long-term
Positioned for continued success over the long-term Unmatched ability to support clients’ needs as they grow Complete, global & Local delivery and expertise across domestic and international locations diversified Differentiated platform, delivering the Investment Bank and Asset & Wealth Manage