Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q1 2017 Earnings Presentation
19 slides from Jp Morgan Chase &'s earnings presentation, Apr 13, 2017
Slide 1: Financial Results 1Q17
F I N AN C I A L R E S U LT S 1Q17 April 13, 2017
Slide 2: 1Q17 Financial highlights
1Q17 Financial highlights ROTCE1 Common equity Tier 12 Net payout LTM3 13% 12.4% 69% 1Q17 net income of $6.4B and EPS of $1.65 Managed revenue of $25.6B4 Adjusted expense of $14.8B5 and adjusted overhead ratio of 58%5 Fortress balance sheet Average core loans6 up 9% YoY and 1% QoQ Basel
Slide 3: 1Q17 Financial results
1Q17 Financial results1 $B, excluding EPS $ O/(U) 1Q17 4Q16 1Q16 Net interest income $12.4 $0.3 $0.7 Noninterest revenue 13.2 0.9 0.8 Managed revenue 1 $B 1Q17 4Q16 1Q16 25.6 1.3 1.5 Expense Net charge-offs Reserve build/(release) $1.7 (0.3) $1.3 (0.4) $1.1 0.7 15.0 1.2 1.2 Credit costs Credit costs
Slide 4: Fortress balance sheet and capital
Fortress balance sheet and capital $B, except per share data 1Q17 4Q16 1Q16 Basel III Advanced Fully Phased-In1 CET1 1Q17 Basel III $184 $182 $176 Standardized Fully CET1 ratio Phased-In of 12.4%1 12.4% 12.2% 11.7% Tier 1 capital $209 $207 $202 Tier 1 capital ratio 14.1% 14.0% 13.4% Total capital $2
Slide 5: Consumer & Community Banking
Consumer & Community Banking1 $mm Financial performance $ O/(U) Net income of $2.0B, down 20% YoY 1Q17 4Q16 1Q16 Revenue of $11.0B, down 1% YoY, on Card new account Revenue $10,970 ($49) ($147) origination costs and lower net servicing revenue, largely Consumer & Business Banking 4,906 132 356 o
Slide 6: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $3.2B on revenue of $9.5B 1Q17 4Q16 1Q16 ROE of 18% Corporate & Investment Bank revenue $9,536 $1,075 $1,401 Investment banking revenue 1,651 164 420 Banking revenue Treasury Services 981 31 97 IB revenue of $1.7B,
Slide 7: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Record net income of $799mm, up 61% YoY and 16% QoQ 1Q17 4Q16 1Q16 Revenue $2,018 $55 $215 Record revenue of $2.0B, up 12% YoY and 3% QoQ Middle Market Banking 797 33 90 Net interest income of $1.4B, up 14% YoY and 4% QoQ Corporate Client B
Slide 8: Asset & Wealth Management
Asset & Wealth Management1 $mm Financial performance $ O/(U) Net income of $385mm, down 34% YoY and down 34% QoQ 1Q17 4Q16 1Q16 Revenue $3,087 $– $115 Revenue of $3.1B, up 4% YoY and flat QoQ Asset Management 1,487 (63) (12) Expense of $2.6B, up 24% YoY and up 19% QoQ, driven by Wealth Managem
Slide 9: Corporate
Corporate1 $mm Financial performance $ O/(U) Treasury and CIO 1Q17 4Q16 1Q16 Net loss of $67mm in 1Q17, up $130mm QoQ, reflecting higher Treasury and CIO ($67) $130 $44 rates Other Corporate 102 246 23 Other Corporate Net income $35 $376 $67 Net income of $102mm, benefited from the release of ce
Slide 10: Outlook
Outlook Firmwide Expect 2Q17 net interest income to be up ~$400mm QoQ and 2017 net interest income to be up ~$4.5B YoY based upon the implied curve Expect 2017 adjusted expense to be ~$58B Expect 2017 net charge-offs to be $5B+/-1 FINANCIAL RESULTS 1 2017 net charge-off outlook excludes the im
Slide 11: Agenda
Agenda Page Appendix 10 FINANCIAL RESULTS
Slide 12: Select leadership positions
Select leadership positions Consumer & Community Banking Corporate & Investment Bank Consumer & Business Banking League table results – wallet share 1Q17 FY2016 Consumer deposit volume has grown at more than twice Rank Share Rank Share the industry average since 20121 7 Based on fees : #1 in act
Slide 13: Consumer credit – Delinquency trends
Consumer credit – Delinquency trends1 Home equity delinquency trend ($mm) Residential mortgage delinquency trend ($mm)2 $2,500 $4,000 30 – 149 day delinquencies 30 – 149 day delinquencies 150+ day delinquencies $3,500 150+ day delinquencies $2,000 $3,000 $1,500 $2,500 $2,000 $1,000 $1,500 $1,000 $50
Slide 14: Mortgage Banking and Card Services – Coverage ratios
Mortgage Banking and Card Services – Coverage ratios1 Mortgage Banking and Card Services credit data ($mm) O/(U) 1Q17 4Q16 1Q16 1Q16 Mortgage Banking (NCI) Net charge-offs $50 $51 $60 ($10) NCO rate 0.10% 0.10% 0.13% (3) bps Allowance for loan losses $1,328 $1,328 $1,588 ($260) 2 ALL/annualized NCOs
Slide 15: Firmwide – Coverage ratios
Firmwide – Coverage ratios1 $mm 2.50% 300% Loan loss reserve/Total loans1 Loan loss reserve Nonperforming retained Loan loss reserve/NPLs1 loans 250% 2.00% 200% 1.50% 150% 1.00% 100% 14,065 13,915 13,466 13,555 13,994 14,227 14,204 13,776 0.50% 13,413 50% 6,921 6,645 6,616 6,303 7,367 7,178 7,059 6,
Slide 16: 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, including the overhead ratio, and the results of the lines of business on a “managed” basis, which are non-GAAP financial measures. The Firm’s definit
Slide 17: Notes
Notes Additional Notes on slide 4 – Consumer & Community Banking 2. Actual numbers for all periods, not over/(under) 3. Effective the first quarter of 2017, the Firm revised its method for allocating LOB equity, which includes no longer allocating for goodwill and other intangible assets. For furthe
Slide 18: Notes on Select leadership positions
Notes Notes on slide 10 – Select leadership positions 1. FDIC 2016 Summary of Deposits survey per SNL Financial. Excludes all branches with $500mm+ in deposits in any of the last ten years (excluded branches are assumed to include a significant level of commercial deposits or are headquarter branche
Slide 19: 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