Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q1 2010 Earnings Presentation
20 slides from Jp Morgan Chase &'s earnings presentation, Apr 14, 2010
Slide 1: Financial Results 1Q10
FINANCIAL RESULTS 1Q10 April 14, 2010
Slide 2: 1Q10 Financial highlights
1Q10 Financial highlights 1Q10 Net income of $3.3B; EPS of $0.74; managed revenue1 of $28.2B Results include the following significant items: $ $ in in millions, millions, excluding excluding EPS EPS Pretax Net Income EPS LOB IB credit cost benefit $462 $286 $0.07 IB Increase to loan loss allowa
Slide 3: 1Q10 Managed results
1Q10 Managed results1 $ $ in in millions millions $ O/(U) 1Q10 4Q09 1Q09 1 Revenue (FTE) $28,172 $2,936 $1,250 Credit Costs 7,010 (1,891) (3,050) Expense 16,124 4,120 2,751 Reported Net Income $3,326 $48 $1,185 Net Income Applicable to Common $2,974 $22 $1,455 Reported EPS $0.74 - $0.34 2 ROE 8% 8%
Slide 4: Investment Bank
Investment Bank $ Net income of $2.5B on revenue of $8.3B $ in in millions millions $ O/(U) ROE of 25% IB fees of $1.4B up 5% YoY 1Q10 4Q09 1Q09 Revenue $8,319 $3,390 ($52) Ranked #1 YTD in Global Investment Banking Fees Investment Banking Fees 1,446 (446) 66 Fixed Income Markets revenue o
Slide 5: Retail Financial Services — drivers
Retail Financial Services — drivers Retail Average deposits of $333.9B down 3% YoY and up 1% QoQ: Retail Banking Banking ($ ($ in in billions) billions) YoY decline largely due to the maturation of high rate WaMu CDs 1Q10 4Q09 1Q09 Deposit margin expansion YoY reflects disciplined pricing stra
Slide 6: Retail Financial Services
Retail Financial Services $ in $ in millions millions Retail Financial Services net loss of $131mm compared with net income of $474mm in the prior year $ O/(U) 1Q10 4Q09 1Q09 Retail Banking net income of $898mm up 4% YoY: Retail Financial Services Total revenue of $4.3B flat YoY as the benefit
Slide 7: Home Lending update
Home Lending update Key 1 Key statistics statistics1 Overall Overall commentary commentary 1Q10 4Q09 1Q09 Delinquency trends showing continued stability, EOP owned portfolio ($B) with some initial signs of improvement across Home Equity $97.7 $101.4 $111.7 2,3 products Prime Mortgage 60.5 59.4 65.
Slide 8: Card Services (Managed)
Card Services (Managed)1 $ $ in in millions millions Net loss of $303mm compared with a net loss of $547mm in 1Q09 $ O/(U) 1Q10 4Q09 1Q09 Credit costs of $3.5B include a reduction of $1.0B Revenue $4,447 ($701) ($682) to the allowance for loan losses, reflecting lower Credit Costs 3,512 (727) (1
Slide 9: Commercial Banking
Commercial Banking1 $ $ in in millions millions Net income of $390mm up 15% YoY $ O/(U) Average loan balances down 15% YoY and 4% 1Q10 4Q09 1Q09 QoQ due to reduced client demand, while Revenue $1,416 $10 $14 Middle Market Banking 746 (14) (6) average liability balances up 16% YoY Commercial Term
Slide 10: Treasury & Securities Services
Treasury & Securities Services $ $ in in millions millions Net income of $279mm down 9% YoY and up $ O/(U) 18% QoQ Pretax margin of 25% 1Q10 4Q09 1Q09 Revenue $1,756 ($79) ($65) Liability balances down 10% YoY Worldwide Securities Services 874 (43) (16) Treasury Services 882 (36) (49) Assets
Slide 11: Asset Management
Asset Management $ $ in in millions millions Net income of $392mm up 75% YoY $ O/(U) Pretax margin of 31% 1Q10 4Q09 1Q09 Revenue of $2.1B up 25% YoY due to the effect of Revenue $2,131 ($64) $428 higher market levels, higher placement fees, net Private Bank 698 (25) 115 inflows to products wit
Slide 12: Corporate/Private Equity
Corporate/Private Equity Net Net Income Income ($ ($ in in millions) millions) Private Equity $ O/(U) Private Equity gains of $136mm 1Q10 4Q09 1Q09 Private Equity portfolio of $7.3B (6.3% of Private Equity $55 ($86) $335 shareholders’ equity less goodwill) Corporate 173 (883) 155 Corporate Net I
Slide 13: Capital Management
Capital Management $ $ in in billions billions 1Q10 4Q09 1Q09 1 Tier 1 Capital $131 $133 $112 1,2 Tier 1 Common Capital $104 $105 $88 1 Risk-Weighted Assets $1,147 $1,198 $1,207 Total Assets $2,136 $2,032 $2,079 1 Tier 1 Capital Ratio 11.5% 11.1% 9.3% 1,2 Tier 1 Common Ratio 9.1% 8.8% 7.3% Firm ad
Slide 14: Outlook
Outlook Retail Retail Financial Financial Services Services Card Card Services Services NSF/OD policy changes currently estimated Chase losses of approximately 9.5% +/- in 2Q10 to reduce annualized after-tax income by with likely some improvement in 2H10 $500mm +/- WaMu losses will remain 20%
Slide 15: Agenda
Agenda Page Appendix 14 FINANCIAL RESULTS 14
Slide 16: Consumer credit—delinquency trends
Consumer credit—delinquency trends Excluding purchased credit-impaired loans Home Equity Home Equity delinquency delinquency trend trend ($mm) ($mm) Prime Prime Mortgage Mortgage delinquency delinquency trend trend ($mm) ($mm) $4,000 30+ day delinquencies 30-150 day delinquencies $6,500 30+ day deli
Slide 17: LLR increased due to accounting rule change, coverage ratio remains strong
LLR increased due to accounting rule change, coverage ratio remains strong $ $ in in millions millions Loan Loss Reserve/Total Loans1 Loan Loss Reserve Loan Loss Reserve/NPLs1 6.00% 500% Nonperforming Loans 5.00% 38,186 400% 30,633 31,602 4.00% 29,072 300% 27,381 3.00% 200% 23,164 19,052 2.00% 13,24
Slide 18: IB League Tables
IB League Tables League League table table results results Ranked #1 in Global Fees for 1Q10, with 7.8% 1Q10 2009 market share Rank Share Rank Share Ranked #1 for 1Q10 in: Based on fees: Global Debt, Equity & Equity-related Global IB fees 1 #1 7.8% #1 9.1% Global Equity & Equity-related Base
Slide 19: 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 analyzes the Firm’s results and the results of the lines of business on a managed basis, which is a non-GAAP financial measure. For 2010 and 2009, the Firm’s definition of managed basi
Slide 20: 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