Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q3 2022 Earnings Presentation
15 slides from Jp Morgan Chase &'s earnings presentation, Oct 14, 2022
Slide 1: 3Q22 Financial Results
3Q22 Financial Results October 14, 2022
Slide 2: 3Q22 Financial highlights
3Q22 Financial highlights Std. RWA3 $1.7T ROTCE1 CET1 capital ratios2 Cash and marketable 18% Std. 12.5% | Adv. 13.0% securities4 $1.5T Average loans $1.1T ◼ 3Q22 net income of $9.7B and EPS of $3.12 ◼ Managed revenue of $33.5B5 Income statement – Including net investment securities losses of $959mm
Slide 3: 3Q22 Financial results
3Q22 Financial results1 $B, except per share data $ O/(U) 3Q22 2Q22 3Q21 Net interest income $17.6 $2.4 $4.4 Noninterest revenue 15.9 (0.5) (1.4) Managed revenue 1 $B 3Q22 2Q22 3Q21 33.5 1.9 3.1 Net charge-offs $0.7 $0.7 $0.5 Expense 19.2 0.4 2.1 Reserve build/(release) 0.8 0.4 (2.1) Credit costs Cr
Slide 4: Fortress balance sheet
Fortress balance sheet $B, except per share data Standardized CET1 ratio (%)1 3Q22 2Q22 3Q21 57bps 1 Risk-based capital metrics 17bps 12.5% (17bps) CET1 capital $210 $207 $210 (5bps) 12.2% (22bps) CET1 capital ratio – Standardized 12.5% 12.2% 12.9% CET1 capital ratio – Advanced 13.0 12.9 13.6 Basel
Slide 5: Consumer & Community Banking
CCB CIB CB AWM Corp. Consumer & Community Banking1 Selected income statement data ($mm) Financial performance $ O/(U) ◼ Net income of $4.3B vs. $4.4B in 3Q21 3Q22 2Q22 3Q21 ◼ Revenue of $14.3B, up 14% YoY Revenue $14,331 $1,717 $1,810 Consumer & Business Banking 8,010 1,452 1,853 ◼ Expense of $8.0B,
Slide 6: Corporate & Investment Bank
CCB CIB CB AWM Corp. Corporate & Investment Bank1 Selected income statement data ($mm) Financial performance $ O/(U) ◼ Net income of $3.5B, down 37% YoY; revenue of $11.9B, down 3Q22 2Q22 3Q21 4% YoY Revenue $11,875 ($72) ($521) ◼ Banking revenue Investment Banking revenue 1,713 362 (1,312) ◼ IB rev
Slide 7: Commercial Banking
CCB CIB CB AWM Corp. Commercial Banking1 Selected income statement data ($mm) Financial performance $ O/(U) ◼ Net income of $946mm, down 33% YoY, driven by a net credit 3Q22 2Q22 3Q21 reserve build compared to a net release in the prior year Revenue $3,048 $365 $528 ◼ Revenue of $3.0B, up 21% YoY, d
Slide 8: Asset & Wealth Management
CCB CIB CB AWM Corp. Asset & Wealth Management1 Selected income statement data ($mm) Financial performance $ O/(U) ◼ Net income of $1.2B, up 2% YoY 3Q22 2Q22 3Q21 ◼ Revenue of $4.5B, up 6% YoY, predominantly driven by deposits and loans on higher margins and balances, largely offset by lower Revenue
Slide 9: Corporate
CCB CIB CB AWM Corp. Corporate1 Selected income statement data ($mm) Financial performance $ O/(U) ◼ Revenue was a loss of $302mm ◼ Net interest income was $792mm, up $1.8B YoY, due to the 3Q22 2Q22 3Q21 impact of higher rates Revenue ($302) ($382) $994 ◼ Noninterest revenue was a loss of $1.1B, dow
Slide 10: Outlook
Outlook1 Firmwide Expect 4Q22 net interest income of ~$19B and FY2022 of ~$66B, market dependent 1 Expect 4Q22 net interest income excluding Markets of ~$19B and FY2022 of ~$61.5B, market dependent 2 Expect FY2022 adjusted expense of ~$77B, market dependent 3 Expect FY2022 Card NCO rate of ~1.5% 1 S
Slide 11: Additional comments
Additional comments ◼ Basel III endgame / GSIB ◼ AOCI sensitivity (currently procyclical) Capital Planning ◼ CECL reserves (very procyclical) ◼ RWA management ◼ Need to be careful about the impact of QT on deposits, deposit migration, lags on deposit repricing Interest Rate and change and shape of t
Slide 12: 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 reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of
Slide 13: Additional notes
Additional notes 1. Reflects the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including the Current Expected Credit Losses ("CECL") capital transition provisions. Beginning January 1, 2022, the $2.9B CECL capital benefit recognized as of December 31, 2021, is be
Slide 14: Additional notes on slides 4-6
Additional notes on slides 4-6 Slide 4 – Consumer & Community Banking 3. Actual numbers for all periods, not over/(under) 4. Users of all mobile platforms who have logged in within the past 90 days 5. Excludes Commercial Card 6. Includes the impact of loans originated under the PPP. For further info
Slide 15: 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