Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q3 2023 Earnings Presentation
17 slides from Jp Morgan Chase &'s earnings presentation, Oct 13, 2023
Slide 1: 3Q23 Financial Results
3Q23 Financial Results October 13, 2023
Slide 2: 3Q23 Financial highlights
3Q23 Financial highlights CET1 capital ratios2 Std. RWA3 $1.7T ROTCE1 14.3% | Adv. 14.5% Std. $1.4T 22% Cash and marketable securities4 Total Loss-Absorbing Capacity $496B 2 Average loans $1.3T ⚫ 3Q23 net income of $13.2B and EPS of $4.33 Income statement ⚫ Managed revenue of $40.7B5 ⚫ Expense of $2
Slide 3: 3Q23 Financial results
3Q23 Financial results1 $B, EXCEPT PER SHARE DATA 3Q23 ex. FR $ O/(U) Reported FR impact ex. FR 2Q23 3Q22 Net interest income $22.9 $1.5 $21.4 $0.4 $3.8 Noninterest revenue 17.8 0.8 17.1 (0.3) 1.2 Managed revenue 1 $B 3Q23 2Q23 3Q22 40.7 2.2 38.5 0.1 5.0 Net charge-offs $1.5 $1.4 $0.7 Expense Reserv
Slide 4: Fortress balance sheet
Fortress balance sheet $B, EXCEPT PER SHARE DATA STANDARDIZED CET1 RATIO (%)1 3Q23 2Q23 3Q22 1 75 bps Risk-based capital metrics 4 bps 14.3% (14 bps) 11 bps CET1 capital $242 $236 $210 (30 bps) CET1 capital ratio – Standardized 14.3% 13.8% 12.5% 13.8% CET1 capital ratio – Advanced 14.5 13.9 13.0 Bas
Slide 5: U.S. B3E NPR increases JPM's required capital by 25%... but why?
U.S. B3E NPR increases JPM’s required capital by 25%... but why? ⚫ As proposed, the U.S. B3E NPR1 increases the Firm’s RWA by 30% ($500B) and required capital by 25% ($50B) ⚫ $22.5B is directly linked to our 4.5% GSIB2 surcharge (4.5% x $500B), despite no change to our systemic risk footprint ⚫ The
Slide 6: The "19%" quoted by the Agencies does not tell the full story
The “19%”1 quoted by the Agencies does not tell the full story ⚫ Measured since the 2017 rules, JPM’s CET1 capital requirements will have increased by ~45% should the rule be enacted as proposed ⚫ And looking beyond the B3E proposal, the future trend is up ⚫ We anticipate that the Fed’s incorporatio
Slide 7: Consumer & Community Banking
CCB CIB CB AWM Corp. Consumer & Community Banking1 SELECTED INCOME STATEMENT DATA ($MM) FINANCIAL PERFORMANCE (ex. FR) 3Q23 ex. FR $ O/(U) ⚫ Net income of $5.3B, up 22% YoY Reported FR impact ex. FR 2Q23 3Q22 ⚫ Revenue of $17.0B, up 19% YoY, driven by higher net interest income Revenue $18,362 $1,35
Slide 8: Corporate & Investment Bank
CCB CIB CB AWM Corp. Corporate & Investment Bank1 SELECTED INCOME STATEMENT DATA ($MM) FINANCIAL PERFORMANCE $ O/(U) ⚫ Net income of $3.1B, down 12% YoY; revenue of $11.7B, down 2% 3Q23 2Q23 3Q22 YoY Revenue $11,730 ($789) ($195) ⚫ Banking revenue Investment Banking revenue 1,613 119 (100) ⚫ IB reve
Slide 9: Commercial Banking
CCB CIB CB AWM Corp. Commercial Banking1 SELECTED INCOME STATEMENT DATA ($MM) FINANCIAL PERFORMANCE (ex. FR) 3Q23 ex. FR $ O/(U) ⚫ Net income of $1.7B, up 79% YoY Reported FR impact ex. FR 2Q23 3Q22 ⚫ Revenue of $3.7B, up 20% YoY Revenue $4,031 $366 $3,665 ($145) $617 ⚫ Payments revenue of $2.0B, up
Slide 10: Asset & Wealth Management
CCB CIB CB AWM Corp. Asset & Wealth Management1 SELECTED INCOME STATEMENT DATA ($MM) FINANCIAL PERFORMANCE (ex. FR) 3Q23 ex. FR $ O/(U) ⚫ Net income of $1.1B, down 12% YoY Reported FR impact ex. FR 2Q23 3Q22 ⚫ Revenue of $4.6B, relatively flat YoY, driven by higher management fees on strong net infl
Slide 11: Corporate
CCB CIB CB AWM Corp. Corporate1 SELECTED INCOME STATEMENT DATA ($MM) FINANCIAL PERFORMANCE (ex. FR) 3Q23 ex. FR $ O/(U) ⚫ Revenue was $1.5B, up $1.8B YoY ⚫ Net interest income was $2.0B, compared with $792mm in Reported FR impact ex. FR 2Q23 3Q22 the prior year, driven by the impact of higher rates
Slide 12: Outlook
Outlook1 FIRMWIDE Expect FY2023 net interest income of ~$88.5B, market dependent 1 Expect FY2023 net interest income excluding Markets of ~$89B, market dependent Expect FY2023 adjusted expense of ~$84B excluding the FDIC special assessment related to systemic risk 2 determination, market dependent –
Slide 13: Notes on non-GAAP financial measures
Notes on non-GAAP financial measures 1. In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of
Slide 14: Additional notes
Additional notes 1. Reflects the Current Expected Credit Losses ("CECL") capital transition provisions. Beginning January 1, 2022, the $2.9B CECL capital benefit is being phased out at 25% per year over a three-year period. As of September 30, 2023 and June 30, 2023, CET1 capital and Total Loss-Abso
Slide 15: Additional notes on slides 4-7
Additional notes on slides 4-7 Slide 4 – U.S. B3E NPR increases JPM’s required capital by 25%... but why? 1. Basel 3 Endgame Notice of Proposed Rulemaking (“B3E NPR”) 2. Global Systemically Important Banks (“GSIB”) 3. Estimate for operational risk losses calculated as follows: Federal Reserve nine-q
Slide 16: Additional notes on slide 8
Additional notes on slide 8 Slide 8 – Commercial Banking 2. Actual numbers for all periods, not over/(under) 3. In the third quarter of 2023, certain revenue from CIB Markets products was reclassified from payments to investment banking. Prior-period amounts have been revised to conform with the cur
Slide 17: 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