Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — 4Q10 Earnings Presentation
23 slides from Jp Morgan Chase &'s earnings presentation, Jan 14, 2011
Slide 1: Financial Results 4Q10
FINANCIAL RESULTS 4Q10 January 14, 2011 JPMorcaN CHase & Co.
Slide 2: 2010 Full year and 4Q10 financial highlights
2010 Full year and 4Q10 financial highlights À „ FY10 Net income of $17.4B; EPS of $3.96; revenue of $104.8B1 À „ 4Q10 Net income of $4.8B; EPS of $1.12; revenue of $26.7B1 À „ 4Q10 results include the following significant items: $ Pretax Net Income EPS Net increase to RFS loan loss allowance ($930
Slide 3: 2010 Full year managed results
$ O/(U) FY2010 FY2009 FY2009 Revenue (FTE)1 $104,842 $108,647 ($3,805) Credit Costs1 16,639 38,458 (21,819) Expense 61,196 52,352 8 ,844 Reported Net Income $17 370 $11 728 $5 642 2010 Full year managed results1 $ in mill 17,370 11,728 5,642 Net Income Applicable to Common Stock $15,764 $8,774 $6,99
Slide 4: 4Q10 Financial results
4Q10 3Q10 4Q09 Revenue (FTE)1 $26,722 $2,387 $1,486 Credit Costs1 3,043 ( 180) (5,858) Expense 16,043 1,645 4,039 $ O/(U) 4Q10 Financial results1 Reported Net Income $4,831 $413 $1,553 Net Income Applicable to Common Stock $4,412 $393 $1,460 Reported EPS $1.12 $0.11 $0.38 ROE2 11% 10% 8% ROE Net of
Slide 5: Investment Bank
4Q10 3Q10 4Q09 Revenue $6,213 $860 $1,284 Investment Banking Fees 1,833 331 (59) Fixed Income Markets 2,875 (248) 140 Equity Markets 1,128 (7) 1 57 Credit Portfolio 377 784 1,046 Credit Costs (271) (129) (90) E 4 201 497 1 915 $ O/(U) Investment Bank $ s À „ Net income of $1.5B on revenue of $6.2B À
Slide 6: Retail Financial Services
4Q10 3Q10 4Q09 Retail Financial Services Net Interest Income $4,829 ($29) ($241) Noninterest Revenue 3,696 908 1,097 Revenue $8,525 $879 $856 Expense 4,824 307 522 Pre-Provision Pretax $3,701 $572 $334 Credit Costs 2,456 908 (1,773) Net income $708 ($199) $1,107 EOP Equity ($B) 1 $28 $28 $25 $ O/(U)
Slide 7: Retail Banking and Mortgage Banking & Other Consumer Lending
4Q10 3Q10 4Q09 Retail Banking Net Interest Income $2,693 ($52) ($23) Noninterest Income 1,715 24 (89) Revenue $4,408 ($28) ($112) Expense 2,668 (111) 94 Pre-Provision Pretax $1,740 $83 ($206) Credit Costs 73 (102) (175) Net Income $954 $106 ($73) Mortgage Banking & Other Consumer Lending $ O/(U) Ret
Slide 8: Real Estate Portfolios
4Q10 3Q10 4Q09 Real Estate Portfolios Revenue $1,329 $4 ($217) Expense 413 23 (152) Pre-Provision Pretax $916 ($19) ($65) Net Charge-Offs 1,789 575 (461) Change in Allowance 548 565 (941) Credit Costs 2,337 1,140 (1,402) Net Income ($823) ($675) $869 Memo: ALL/ EOP Loans 1,2 6 47% 7 25% 6 55% $ O/(U
Slide 9: Home Lending update
4Q10 4Q10 Reported Adjusted 3Q10 4Q09 EOP owned portfolio ($B) Home Equity $88.4 $91.7 $101.4 Prime Mortgage2 55.9 56.7 59.4 Subprime Mortgage 11.3 12.0 12.5 Net charge-offs ($mm) Home Equity $792 $725 $730 $1,177 Prime Mortgage3 528 241 265 568 Subprime Mortgage 429 182 206 452 Total $1,749 $1,148
Slide 10: Retail Financial Services — year-end 2010 reserve position
Retail Financial Services — year-end 2010 reserve position À „ Mortgage repurchase risk assessed and appropriately reserved À „ Agency repurchase exposure — Repurchase losses life to date of $2.6B — End of period reserve balance of $3.0B; reserved for presented and probable future demands — 2011 rea
Slide 11: Update on foreclosure process
Update on foreclosure process À „ Offered over 1mm modifications; 285,000 completed À „ Prevented foreclosures at 2x the rate of those completed À „ 51 Chase Home Ownership Centers (CHOCs) — plan to add 25 more in 2011 À „ 6,000 loss mitigation counselors to assist borrowers, across the country We m
Slide 12: Card Services
4Q10 3Q10 4Q09 Revenue $4,246 ($7) ($902) Credit Costs 6 71 (962) (3,568) Expense 1 ,514 6 9 118 Net Income $1,299 $564 $1,605 Key Statistics Incl. WaMu ($B)2 ROO (pretax) 6.03% 3.33% (1.18)% $ O/(U) Card Services1 $ in millions À „ Net income of $1.3B compared with a net loss of $306mm in the prior
Slide 13: Commercial Banking
4Q10 3Q10 4Q09 Revenue $1,611 $84 $205 Middle Market Banking 7 81 15 2 1 Mid-Corporate Banking 3 02 (2) 2 5 Commercial Term Lending 3 01 45 110 Real Estate Banking 1 17 (1) 1 7 Other 1 10 2 7 3 2 Credit Costs 152 (14) (342) Expense 558 (2) 15 $ O/(U) Commercial Banking1 $ in millions À „ Net income
Slide 14: Treasury & Securities Services
4Q10 3Q10 4Q09 Revenue $1,913 $82 $78 Worldwide Securities Services 9 60 66 43 Treasury Services 9 53 16 35 Expense 1 ,470 6 0 79 Net Income $257 $6 $20 Key Statistics1 $ O/(U) Treasury & Securities Services $ in millions À „ Net income of $257mm up 8% YoY and 2% QoQ À „ Pretax margin of 21% À „ QoQ
Slide 15: Asset Management
Asset Management $ in millions 4Q10 3Q10 4Q09 Revenue $2,613 $441 $418 Private Banking1 1,376 1 95 210 Institutional 675 1 69 9 1 Retail 562 7 7 117 Credit Costs 23 — (35) Expense 1,777 2 89 307 Net Income $507 $87 $83 $ O/(U) Net income of $507mm up 20% YoY Pretax margin of 31% Record revenue of $2
Slide 16: Corporate/Private Equity
Corporate/Private Equity Net Income ($ in millions) 4Q10 3Q10 4Q09 Private Equity $178 ($166) $37 Corporate (149) ( 153) (1,205) Net Income $29 ($319) ($1,168) $ O/(U) Private Equity Private Equity gains of $387mm Private Equity portfolio of $8.7B (6.9% of stockholders?? equity less goodwill) Corpor
Slide 17: Fortress balance sheet
Fortress balance sheet $ in billions 4Q10 3Q10 4Q09 Basel I Tier 1 Common Capital1,2 $115 $111 $105 Basel III Tier 1 Common Capital1,2 $114 $111 $106 Risk-Weighted Assets1 $1,176 $1,170 $1,198 Total Assets $2,118 $2,142 $2,032 Basel I Tier 1 Common Ratio1,2 9 8% 9 5% 8 8% Firmwide total credit reser
Slide 18: Agenda / Appendix
Agenda Page Appendix 17 17 F I N A N C I A L R E S U L T S
Slide 19: Consumer credit — delinquency trends
Consumer credit — delinquency trends (Excl. purchased credit-impaired loans) Home Equity delinquency trend ($ in millions) Prime Mortgage delinquency trend ($ in millions) $0 $1,000 $2,000 $3,000 $4,000 Mar 08 Aug 08 Jan 09 Jul 09 Dec 09 Jun 10 Dec 10 $0 $1,300 $2,600 $3,900 $5,200 $6,500 Mar-08 Aug
Slide 20: Firmwide coverage ratios remain strong
23,164 17 767 27,381 29,072 30,633 31,602 38,186 35,836 34,161 32,266 3.00% 4.00% 5.00% 6.00% 200% 300% 400% 500% Firmwide coverage ratios remain strong Loan Loss Reserve Nonperforming Loans Loan Loss Reserve/Total Loans1 Loan Loss Reserve/NPLs1 $ in millions 8,953 11,401 14,785 17,767 17,564 17,050
Slide 21: IB league tables
2010 2009 Rank Share Rank Share Based on fees: Global IB fees1 #1 7.8% #1 9.0% Based on volumes: Global Debt, Equity & Equity-related #1 7.3% #1 8.8% US Debt, Equity & Equity-related #2 11.1% #1 14.8% Global Equity & Equity-related2 #3 7.3% #1 11.6% IB league tables League table results Equity relat
Slide 22: 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 definition of managed basis starts with the reported U.S. GAAP results and includ
Slide 23: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and unc