Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q4 2009 Earnings Presentation
21 slides from Jp Morgan Chase &'s earnings presentation, Jan 15, 2010
Slide 1: Financial Results 4Q09
FINANCIAL RESULTS 4Q09 January 15, 2010
Slide 2: 2009 Full year and 4Q09 financial highlights
2009 Full year and 4Q09 financial highlights FY09 Net income of $11.7B; EPS of $2.26; record revenue of $108.6B1 4Q09 Net income of $3.3B; EPS of $0.74; revenue of $25.2B1 Ranked #1 in Global Investment Banking Fees for full-year 2009 Completed Washington Mutual integration and maintained so
Slide 3: 2009 Full year managed results
2009 Full year managed results1 $ $ in in millions millions $ O/(U) 2009 2008 2008 Results excl. Merger-related items2 Revenue (FTE)1 $109,166 $73,402 $35,764 Credit Costs1 38,465 22,647 15,818 Expense 51,716 42,915 8,801 Merger-related items (after-tax)2 (635) (211) (424) Reported Net Income $11,72
Slide 4: 4Q09 Managed results
4Q09 Managed results1 $ $ in in millions millions $ O/(U) 4Q09 3Q09 4Q08 Results excl. Merger-related items2 Revenue (FTE)1 $25,427 ($3,459) $6,105 Credit Costs1 8,901 (908) 318 Expense 11,915 (1,405) 908 Merger-related items2 (after-tax) (173) (103) (1,237) Reported Net Income $3,278 ($310) $2,576
Slide 5: Investment Bank
Investment Bank $ $ in in millions millions Net income of $1.9B on revenue of $4.9B $ O/(U) ROE of 23% 4Q09 3Q09 4Q08 IB fees of $1.9B up 38% YoY Revenue $4,929 ($2,579) $5,201 Maintained #1 year-to-date rankings for Global Investment Banking Fees 1,892 234 519 Debt, Equity and Equity-relate
Slide 6: IB league tables
IB league tables League League table table results results Ranked #1 in Global Fees for FY2009, with 2009 2008 1 9.2% market share per Dealogic Rank Share Rank Share Ranked #1 for FY2009 per Thomson Based on fees (per Dealogic): Reuters in: Global IB fees #1 9.2% #2 8.5% Global Debt, Equity &
Slide 7: Retail Financial Services—drivers
Retail Financial Services—drivers Retail Retail Banking Banking ($ ($ in in billions) billions) Average deposits of $329.8B down 3% YoY and QoQ: QoQ decline largely due to the maturation of high 4Q09 3Q09 4Q08 rate WaMu CDs during the quarter Key Statistics Average Deposits $329.8 $339.6 $339.8
Slide 8: Retail Financial Services
Retail Financial Services $ $ in in millions millions Retail Financial Services net loss of $399mm, down $ O/(U) $1.0B from 4Q08 and $406mm from 3Q09 4Q09 3Q09 4Q08 Retail Banking net income of $1.0B relatively flat YoY: Retail Financial Services Total revenue of $4.5B flat YoY as the benefit
Slide 9: Home Lending update
Home Lending update statistics11 Key statistics Overall Key Overall commentary commentary 4Q09 3Q09 4Q08 Some initial signs of stability in consumer delinquency EOP owned portfolio ($B) trends, but we are not certain if this trend will continue Home Equity $101.4 $104.8 $114.3 Prime Mortgage 2 59.
Slide 10: Card Services (Managed)
Card Services (Managed) $ $ in in millions millions Net loss of $306mm compared to a loss of $371mm in 4Q08 $ O/(U) 4Q09 3Q09 4Q08 Credit costs of $4.2B driven by continued high Revenue $5,148 ($11) $240 levels of charge-offs and an addition of $400mm Credit Costs 4,239 (728) 273 to the allowanc
Slide 11: Commercial Banking
Commercial Banking $ $ in in millions millions Net income of $224mm down 53% YoY, driven $ O/(U) by higher credit costs 4Q09 3Q09 4Q08 Average loan balances down 15% YoY, while Revenue $1,406 ($53) ($73) average liability balances up 7% YoY: Middle Market Banking 760 (11) (36) Commercial Term Le
Slide 12: Treasury & Securities Services
Treasury & Securities Services $ $ in in millions millions Net income of $237mm down 56% YoY and 22% QoQ $ O/(U) Pretax margin of 20% 4Q09 3Q09 4Q08 Liability balances down 25% YoY and up 8% QoQ Revenue $1,835 $47 ($414) Liability balances in the prior year reflected increased Worldwide Secu
Slide 13: Asset Management
Asset Management $ $ in in millions millions Net income of $424mm up 66% YoY $ O/(U) Pretax margin of 30% 4Q09 3Q09 4Q08 Revenue of $2.2B up 32% YoY due to higher Revenue $2,195 $110 $537 valuations of seed capital investments, higher Private Bank 723 84 93 Institutional 584 50 257 performance
Slide 14: Corporate/Private Equity
Corporate/Private Equity Net Net Income Income ($ ($ in in millions) millions) Private Equity $ O/(U) Private Equity gains of $273mm in 4Q09 4Q09 3Q09 4Q08 Private Equity portfolio of $7.3B (6.3% of Private Equity $141 $53 $823 shareholders’ equity less goodwill) Corporate 1,229 (40) 66 Corporat
Slide 15: Capital Management
Capital Management $ $ in in billions billions 4Q09 3Q09 4Q08 Tier 1 Capital1 $133 $127 $136 Tier 1 Common Capital1,2 $105 $101 $87 Risk-Weighted Assets1 $1,198 $1,238 $1,245 Total Assets $2,032 $2,041 $2,175 Tier 1 Capital Ratio1 11.1% 10.2% 10.9% Tier 1 Common Ratio1,2 8.8% 8.2% 7.0% Firmwide to
Slide 16: Substantially increased loan loss reserves, maintaining strong coverage ratios
Substantially increased loan loss reserves, maintaining strong coverage ratios $ $ in in millions millions Loan Loss Reserve/Total Loans1 Loan Loss Reserve Loan Loss Reserve/NPLs1 54,000 5% 5.75% Nonperforming Loans 500% 45,000 4.60% 4% 400% 31,602 29,072 30,633 36,000 3.45% 3% 300% 27,000 2.30% 23,
Slide 17: Outlook
Outlook Retail Financial Retail Financial Services Services Card Card Services Services NSF/OD policy changes currently estimated to Chase losses could approach 11% by 1Q10 including reduce annualized after-tax income by $500mm +/- the adverse timing effect of payment holiday of approximately 60
Slide 18: Outlook cont'd.
Outlook cont’d. Investment Investment Bank Bank Corporate/Private Equity Corporate/Private Equity Expect Fixed Income and Equity Markets Private Equity revenue to normalize over time as conditions Results will be volatile stabilize Corporate Commercial Commercial Banking Banking Net intere
Slide 19: 2009 Full year reconciliation of GAAP to non-GAAP results
2009 Full year reconciliation of GAAP to non-GAAP results $ $ in in millions millions 2009 2008 Revenue Reported Revenue $100,434 $67,252 Impact of Card Securitizations 6,443 3,612 Tax Equivalent Adjustments 1,770 1,908 Managed Revenue $108,647 $72,772 Merger-related Items 519 630 Adjusted Revenue $
Slide 20: 4Q09 Reconciliation of GAAP to non-GAAP results
4Q09 Reconciliation of GAAP to non-GAAP results $ $ in in millions millions 4Q09 3Q09 4Q08 Revenue Reported Revenue $23,164 $26,622 $17,226 Impact of Card Securitizations 1,617 1,698 1,228 Tax Equivalent Adjustments 455 460 654 Managed Revenue $25,236 $28,780 $19,108 Merger-related Items 191 106 214
Slide 21: Notes on non-GAAP financial measures and forward-looking statements
Notes on non-GAAP financial measures and forward-looking statements Non-GAAP financial measures 1.Financial results are presented on a managed basis, as such basis is described in the firm’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009 an