Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Investor Day (February 2016)
26 slides from Jp Morgan Chase &'s investor day presentation, Feb 23, 2016
Slide 1: Commercial Banking
COMMERCIAL BANKING Doug Petno, Chief Executive Officer of Commercial Banking February 23, 2016
Slide 2: Commercial Banking – a proven business model
Commercial Banking – a proven business model Coverage segmented and focused to best serve client needs Client and Local delivery and decision making community focus Deep industry expertise Seasoned team with 20+ years average experience Industry-leading, broad-based capabilities Competitiv
Slide 3: Agenda
Agenda Page Franchise strength 2 2015 performance 8 Opportunities 16 COMMERCIAL BANKING 2
Slide 4: Commercial & Industrial overview
Commercial & Industrial overview Client focus through dedicated segment and industry coverage Commercial Banking Middle Market Corporate Client Business Corporate & Banking & Banking & Banking Specialized Industries Specialized Industries Investment Banking <$20mm $20mm-$500mm $500mm-$2B >$2B revenu
Slide 5: Industry-focused to better serve our clients and manage risks
Industry-focused to better serve our clients and manage risks Commercial Banking - Specialized Industries Focusing resources to grow Agribusiness Apparel and market share in these industries and Food Footwear Beverage Industry-tailored products and custom client solutions Specialized capabilitie
Slide 6: Commercial Real Estate overview
Commercial Real Estate overview Commercial Term Real Estate Community Development Lending Banking Banking (CTL) (REB) (CDB) New picture to come Clients ~35,000 owners and investors ~1,300 clients ~900 clients $63B $16B $2B1 Loans (+16% YoY) (+22% YoY) (+7% YoY) Average loan ~$2mm ~$15mm ~$2mm % Cons
Slide 7: JPMorgan Chase platform drives real competitive advantage
JPMorgan Chase platform drives real competitive advantage Unmatched value proposition for our clients #1 rank in N.A. IB fees1 Operational Financial Broad-based Treasury Services efficiency strength & stability and payments solutions Differentiated International footprint and product capabilit
Slide 8: Business innovation is a key priority
Business innovation is a key priority Upgrading digital and online platforms Client Advancing mobile banking and transaction capabilities experience Improving client interface and onboarding process Enhancing transaction speed and security Investing in new B2C and B2B payments capabilities
Slide 9: Agenda
Agenda Page Franchise strength 2 2015 performance 8 Opportunities 16 COMMERCIAL BANKING 8
Slide 10: 2015 results – executing our proven strategy
2015 results – executing our proven strategy Record 2015 Highlights Total loan balance (EOP, $B) 168 Stable and valuable deposit Deposits1 ($B) 179 base Investment banking revenue2 ($B) 2.2 Loans up $19B, +13% YoY Exceptional underlying Middle Market expansion revenue ($mm) 351 performance 11t
Slide 11: Deep client relationships generate stable deposits
Deep client relationships generate stable deposits 4Q15 average deposits by type 4Q15 average deposits by client tenure3 5% >75% 8% Stable and 16% diversified $179B 49% deposit base1 71% 30% 11% 10% 2 DDA Savings International Other 0-5 years 6-10 years 11-20 years 21+ years Industry #1 Cash manag
Slide 12: Commercial & Industrial loan portfolio
Commercial & Industrial loan portfolio C&I loans outstanding ($B, EOP) $85 $78 $74 $74 Disciplined C&I growth $62 2011 2012 2013 2014 2015 Utilization (%) 31% 32% 30% 32% 32% C&I environment continues to be highly competitive Strong loan growth driven by Increased CCB up 26% YoY, primarily fro
Slide 13: Commercial Real Estate loan portfolio
Commercial Real Estate loan portfolio CRE loans outstanding ($B, EOP) Commercial Term Lending Real Estate Banking Community Development Banking $83 Executing $71 prudent $63 growth $55 strategy $50 2011 2012 2013 2014 2015 Originations ($B)2 $15 $22 $24 $25 $32 Continue to see excellent opportunit
Slide 14: Strong credit performance through-the-cycle
Strong credit performance through-the-cycle Non-performing loan ratio (EOP) Net charge-off rate Commercial Banking Peer average1 Commercial Banking Peer average1 4.5% 3.0% TTC average2 CB: 32 bps CB Target: < 50 bps 0.0% 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014
Slide 15: Closely monitoring credit fundamentals across Oil & Gas
Closely monitoring credit fundamentals across Oil & Gas1 O&G exposure (EOP) Strong underwriting standards and client selection 30+ years of dedicated industry coverage 8% 5% Seasoned team with 24 years’ average experience 10% 48% 14 petroleum engineering staff embedded in underwriting process
Slide 16: Maintaining discipline across Commercial Real Estate franchise
Maintaining discipline across Commercial Real Estate franchise CRE loans outstanding by asset class (EOP) Strong fundamentals and credit quality CRE portfolio credit metrics 2013 2014 2015 Multifamily 7% 3% Portfolio size ($B) $63 $71 $83 6% Office NPLs (EOP) 53bps 33bps 22bps 9% NCOs 0bps (3bps) (1
Slide 17: Agenda
Agenda Page Franchise strength 2 2015 performance 8 Opportunities 16 COMMERCIAL BANKING 16
Slide 18: Executing our proven strategy in new markets
Executing our proven strategy in new markets Top 20 MSA’s and Commercial Banking Middle Market share rank1 Years in Top Years in Top City City market 10 market 10 San 1. New York 215 1 11. Francisco 6 2. Los Angeles 6 12. Phoenix 115 2 3. Chicago 150 1 Riverside/ 13. 6 San Bern. 4. Dallas 100 1 14
Slide 19: Patient, disciplined Middle Market franchise expansion
Patient, disciplined Middle Market franchise expansion Total expansion market revenue ($mm) $1,000 $351 $327 $297 $232 $139 $53 2010 2011 2012 2013 2014 2015 Long-term target Long-term target 5-yr CAGR # Clients 820 1,100 1,350 1,460 1,670 1,970 19% Loans EOP ($B) $1.6 $4.4 $6.8 $8.2 $8.8 $10.7 46%
Slide 20: Deepening client relationships through unique capabilities to drive revenue
Deepening client relationships through unique capabilities to drive revenue CB C&I illustrative revenue per relationship1 ($000) ~8x $820 $420 $100 $160 2 3 Credit-only Non-credit Full relationship Average 2015 Avg. products per client ~2 ~7 ~13 ~9 % of C&I clients 6% 54% 40% 100% CB C&I client usag
Slide 21: Continued success in delivering IB solutions to CB clients
Continued success in delivering IB solutions to CB clients Commercial Banking gross investment banking revenue1 ($B) $3.0 $2.2 $2.0 $1.7 $1.6 $1.4 $1.3 $1.2 $1.0 2008 2009 2010 2011 2012 2013 2014 2015 Long-term target CIB partnership has resulted in deeper client coverage OPPORTUNITIES 1 Represents
Slide 22: Opportunity to capture high-quality market share in commercial real estate
Opportunity to capture high-quality market share in commercial real estate Prudently executing our Commercial Real Estate strategy U.S. commercial mortgage market maturities (EOP, $B)1 $314 $1.4T Over $1T in $316 near-term $394 maturities to drive future $358 originations 2016 2017 2018 2019 4 year
Slide 23: We remain confident in our ability to produce superior returns through the cycle
We remain confident in our ability to produce superior returns through the cycle Despite increased capital, CB business model allows us to continue to generate superior returns $16B in managed capital in 2016 (up $2B from 2015) Higher capital 10.5% Basel III advanced ratio – moving to 11% by 201
Slide 24: Executing our proven strategy
Executing our proven strategy Financial targets 2015 Targets1 2010-2015 actual Execute growth MM expansion $1.0B $351mm 46% CAGR initiatives to add clients and deepen relationships Investment banking2 $3.0B $2.2B 10% CAGR (long-term revenue targets) International3 $500mm $288mm 16% CAGR Overhead rat
Slide 25: Our strategic priorities are focused on delivering for our clients
Our strategic priorities are focused on delivering for our clients Execute disciplined growth strategy through geographic expansion, industry specialization, deeper client relationships and prudent Commercial Real Estate growth Drive business innovation through investments in digital, payments a
Slide 26: 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