Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q2 2015 Earnings Presentation
22 slides from Jp Morgan Chase &'s earnings presentation, Jul 14, 2015
Slide 1: Financial Results 2Q15
FINANCIAL RESULTS 2Q15 July 14, 2015
Slide 2: 2Q15 Financial highlights
2Q15 Financial highlights ROTCE1 CET1 ratio2 Overhead ratio3 Net payout ratio LTM4 14% 11.0% 59% 52% 2Q15 net income of $6.3B and EPS of $1.54 Revenue of $24.5B3 Adjusted expense of $14.2B5 and adjusted overhead ratio of 58%5 Fortress balance sheet Balance sheet down by $123B YTD, driven b
Slide 3: 2Q15 Financial results
2Q15 Financial results1 $mm, excluding EPS $ O/(U) 2Q15 1Q15 2Q14 Revenue (FTE)1 $24,531 ($289) ($806) Expense 14,500 (383) (931) Credit costs 935 (24) 243 Reported net income $6,290 $376 $310 Net income applicable to common stockholders $5,776 $324 $208 Reported EPS $1.54 $0.09 $0.08 ROE2 11% 11% 1
Slide 4: Fortress balance sheet and returns
Fortress balance sheet and returns1 $B, except where noted 2Q15 1Q15 2Q14 Basel III Advanced Fully Phased-In2 2Q15 Basel III CET1 Standardized Fully $169 $167 $160 Phased-In of CET1 ratio 11.2%2 11.0% 10.6% 9.8% Tier 1 capital $194 $189 $179 Tier 1 capital ratio 12.6% 12.0% 10.9% Total capital $215
Slide 5: Balance sheet and NII/NIM
Balance sheet and NII/NIM Assets: Average and EOP ($B) Deposits: Average and EOP ($B) Average EOP $2,573 $2,511 $2,494 ∆ $2,450 ∆ Cash¹ Cash¹ Cash¹ Cash¹ $439 $22 $512 ($89) $461 $423 Securities Securities Securities Securities Average EOP $351 ($27) $348 ($30) $324 $318 $1,363 Secured Secured Secur
Slide 6: Consumer & Community Banking
Consumer & Community Banking1 $mm Leadership positions $ O/(U) Consumer & Business Banking 2Q15 1Q15 2Q14 #1 in deposit growth for the third consecutive year4 Net interest income $6,926 ($42) ($124) #1 in customer satisfaction among the largest U.S. banks for the Noninterest revenue 4,089 353 (3
Slide 7: Consumer & Community Banking: Consumer & Business Banking
Consumer & Community Banking Consumer & Business Banking $mm Financial performance $ O/(U) Net income of $831mm, down 8% YoY and flat QoQ 2Q15 1Q15 2Q14 Net revenue of $4.5B, down 3% YoY but up 3% QoQ Net interest income $2,619 $10 ($167) Expense of $3.1B, up 1% YoY and 3% QoQ Noninterest reve
Slide 8: Consumer & Community Banking: Mortgage Banking
Consumer & Community Banking Mortgage Banking $mm Financial performance $ O/(U) Net income of $584mm, down 20% YoY 2Q15 1Q15 2Q14 Revenue of $1.8B, down 21% YoY due to lower net Net interest income $1,056 $– $3 servicing revenue and lower repurchase benefit, and up 5% Noninterest revenue 777 84
Slide 9: Consumer & Community Banking: Card, Commerce Solutions & Auto
Consumer & Community Banking Card, Commerce Solutions & Auto $mm Financial performance $ O/(U) Net income of $1.1B, up 30% YoY 2Q15 1Q15 2Q14 Revenue of $4.7B, up 3% YoY and 2% QoQ Net interest income $3,251 ($52) $40 Expense of $2.0B, down 4% YoY due to lower legal expense Noninterest revenue
Slide 10: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $2.3B on revenue of $8.7B 2Q15 1Q15 2Q14 ROE of 14% Corporate & Investment Bank revenue $8,723 ($859) ($542) Investment banking revenue 2 1,746 116 70 Banking revenue 3 Treasury Services 901 (29) (23) IB revenue of
Slide 11: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Net income of $525mm, down 22% YoY and 12% QoQ 2Q15 1Q15 2Q14 Revenue of $1.7B, flat YoY and QoQ Revenue $1,739 ($3) $8 Middle Market Banking 2 688 11 (25) Gross IB revenue up 22% YoY and down 22% QoQ 2 Corporate Client Banking 532 (32) 38
Slide 12: Asset Management
Asset Management1 $mm Financial performance $ O/(U) Net income of $451mm, down 21% YoY and 10% QoQ 2Q15 1Q15 2Q14 Revenue $3,175 $170 $193 Revenue of $3.2B, up 6% YoY and 6% QoQ Global Investment Management 1,670 137 110 Expense of $2.4B, up 17% YoY driven by legal expense Global Wealth Manage
Slide 13: Corporate
Corporate1 $mm Financial performance $ O/(U) Treasury and CIO 2Q15 1Q15 2Q14 Treasury and CIO net loss of $112mm, compared to a Treasury and CIO ($112) $109 $196 net loss of $221mm in 1Q15 Other Corporate2 552 273 137 Other Corporate2 Net income/(loss) $440 $382 $333 Net income includes a benefi
Slide 14: Outlook
Outlook Firmwide Corporate & Investment Bank Expect YoY core loan1 growth to continue at 10%+/- For 3Q15, expect business simplification to generate YoY negative variance in Markets revenue of 9%, with an Expect 2H15 NCOs to be consistent with 1H15 associated reduction in expense Expect FY20
Slide 15: Agenda
Agenda Page Appendix 14 FINANCIAL RESULTS 14
Slide 16: Consumer credit – Delinquency trends
Consumer credit – Delinquency trends1 Home equity delinquency trend ($mm) Prime mortgage delinquency trend ($mm) $3,500 $3,500 30 – 149 day delinquencies 30 – 149 day delinquencies $3,000 150+ day delinquencies $3,000 150+ day delinquencies $2,500 $2,500 $2,000 $2,000 $1,500 $1,500 $1,000 $1,000 $50
Slide 17: Mortgage Banking and Card Services – Coverage ratios
Mortgage Banking and Card Services – Coverage ratios1 Mortgage Banking and Card Services credit data ($mm) O/(U) 2Q15 1Q15 2Q14 2Q14 Mortgage Banking (NCI) Net charge-offs $81 $104 $112 ($31) NCO rate 0.21% 0.30% 0.34% (13) bps Allowance for loan losses $1,788 $2,088 $2,388 ($600) 2 ALL/annualized N
Slide 18: Firmwide – Coverage ratios
Firmwide – Coverage ratios1 $mm 5.00% Loan loss reserve/Total loans1 Loan loss reserve 600% Nonperforming retained Loan loss reserve/NPLs1 loans 500% 4.00% 400% 3.00% 300% 19,384 17,571 2.00% 16,264 15,847 15,326 14,889 14,185 14,065 13,915 200% 1.00% 100% 9,578 9,027 8,317 8,123 7,634 7,241 7,017 6
Slide 19: IB League Tables
IB League Tables League table results – wallet share League table results – volumes 1H15 FY2014 1H15 FY2014 Rank Share Rank Share Rank Share Rank Share Based on fees 1 : Based on volumes 6 : Global Debt, Equity & Equity-related 1 8.0 % 1 7.6% Global Debt, Equity & Equity-related 1 7.3 % 1 6.8% U.S.
Slide 20: Notes
Notes 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, including the overhead ratio, and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. The Firm’s definit
Slide 21: Notes
Notes 8. The Firm presents pretax income, net income (assumes a tax rate of 38% for items that are tax deductible) and earnings per share excluding certain notable items. These measures should be viewed in addition to, and not as a substitute for, the Firm's reported results. Management believes thi
Slide 22: 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