Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Investor Day (February 2019)
20 slides from Jp Morgan Chase &'s investor day presentation, Feb 26, 2019
Slide 1: Asset & Wealth Management
\ ASSET & WEALTH \ MANAGEMENT February 26, 2019 FIRM OVERVIEW CORPORATE & INVESTMENT BANK “a CONSUMER & COMMUNITY BANKING ™ a PD ASSET & WEALTH MANAGEMENT SS SS COMMERCIAL BANKING , JPMORGAN CHASE & CO,
Slide 2: AWM delivers superior client outcomes and consistent financial performance
AWM delivers superior client outcomes and consistent financial performance A Consistent through-the-cycle B Client-centric C Next-generation growth Leading long-term investment performance Fiduciary for institutions, advisors, and Digital everything individuals for nearly 200 years Increasin
Slide 3: Consistent: Reliable growth engine with strong ROE
A Consistent: Reliable growth engine with strong ROE Record Revenue ($B)1 Pretax income ($B) Client assets (EOP, $T) 5-yr 5-yr 5-yr 2013 2014 2015 2016 2017 2018 CAGR 2013 2014 2015 2016 2017 2018 CAGR 2013 2014 2015 2016 2017 2018 CAGR $14.1 $2.8 $2.7 $3.7 $13.8 3.1% 2.0% 3.1% $3.6 $2.3 AUS + AUM $
Slide 4: Consistent: Diversified revenue growth
A Consistent: Diversified revenue growth Revenue ($B)1 +$2.0 +$0.9 $(0.6) $(0.5) +$0.9 $14.1 +$1.3 $12.1 2013 Banking Markets Flows Pricing & other Simplification 2018 Numbers may not tie due to rounding Note: For footnoted information, refer to slide 16 3
Slide 5: Consistent: Simplify for growth
A Consistent: Simplify for growth Expense ($B)1 +$1.7 +$0.7 $(0.8) +$1.0 $10.4 +$0.8 $8.7 2013 Enterprise / Revenue / Growth initiatives Simplification 2018 controls spend performance-driven Numbers may not tie due to rounding Note: For footnoted information, refer to slide 16 4
Slide 6: Simplify for growth
A Consistent: Simplify for growth Key initiative metrics over past two years +125 +17 +464 +276 New products: funds launched1 Front office locations opened New hires into high-growth Modernized apps launched business segments +40 +12 +361 Growth +143 +25 +133 +22 +18 +10 +10 +3 +66 +2 +37 0 Equity F
Slide 7: Consistent: Actively reducing costs for our clients
A Consistent: Actively reducing costs for our clients What we’ve done Example Savings for clients $350 million Largest equity JPMC Fees1 per year fund fees 20% Equity bps $200 million External trading commissions per trade per year 46% Large cap $75 million Third-party fund fees beta fees per year 5
Slide 8: Consistent: Leading long-term investment performance
A Consistent: Leading long-term investment performance 2018 % of JPMAM long-term mutual fund AUM over peer median (net of fees)1 >74% 50-74% 25-49% 0-24% 1-year 3-year 5-year 10-year Total JPMAM 73% 68% 73% 85% 83% Equity 74% 65% 74% 85% 93% 65% Fixed 78% Income 78% 71% 78% 59% 78% Multi-Asset Solut
Slide 9: Diversification drives flows
A Consistent: Diversification drives flows 5Y Total Client Asset Flows ($B) Publically-traded peers only 123 127 100 97 89 82 #1 BLK2 $1,037 71 JPMC Total Client Asset 50 36 Flows ($B)1 28 Legend #2 JPMC3 $443 ≥$0 <$0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Fixed Income Assets = AUS + AUM
Slide 10: Client-centric: Alpha engines drive growth
Legend JPM CAGR B Client-centric: Alpha engines drive growth Industry CAGR Core JPMAM Solutions AUM1 5Y % over peer median2 AUM 4% 4% EM & Asia 81% Pacific JPMAM Equity International 61% Core Solutions 16% Funds 85% 12%3 U.S. 96% 2013 2018 AUM1 5Y % over peer median2 SmartRetirement 5% 5% Unconstrai
Slide 11: Client-centric: Successfully innovating across our platform
B Client-centric: Successfully innovating across our platform Hedged Equity Fund JPST: Ultra-Short Income ETF 5Y annualized return: 3rd percentile1 8.5% 2.2% 2.1% 1.9% 5.8% Morningstar rating2 1.7% 1.7% 1Y Net 1.6% 1.5% Return: 2.1% 6th #1 in 2018 Flows Morningstar category rank3 percentile6 C
Slide 12: Client-centric: Advising individuals on both sides of their balance sheet
B Client-centric: Advising individuals on both sides of their balance sheet Deposits Credit WM year-end spot balance ($B) WM year-end spot balance ($B) Net inflow from new clients Jumbo mortgages1 +9% Loans (ex-mortgages) CAGR 148 131 18% 118 111 CAGR 162 104 156 95 147 146 138 ~$50B Cumulative net
Slide 13: Next-generation growth: Digital everything
C Next-generation growth: Digital everything Digital tools for different client needs Advisors Institutions Individuals Digital Portfolio Insights Global Cash Portal You Invest Digital Portfolio Insights helps advisors build stronger portfolios Global Cash Portal enables institutions to centrally ma
Slide 14: Next-generation growth: Integrating human expertise with distinctive digital offerings
C Next-generation growth: Integrating our human expertise with distinctive digital offerings 2013 Expanding our offering… 2018 …across the spectrum UHNW Affluent / HNW Aspiring Affluent Branch Network Upper Mass Mass Underbanked College AWM Expertise Chase Digital Platform 13
Slide 15: Next-generation growth: Global footprint expansion
C Next-generation growth: Global footprint expansion Capturing the full U.S. Wealth Management opportunity1 Growing our Wealth Management Advisors Global Wealth Management Chase Wealth Management +6% CAGR ~6,500 UHNW $4T Advisors ~8% share $10mm+ liquid net worth wallet ~5,500 Advisors HNW $10T ~1%
Slide 16: How we measure against our targets
How we measure against our targets LT AUM Revenue Pretax income Pretax Flows growth growth margin ROE Medium-term targets (+/-) 4% 5% 10% 30% 25%+ 2016 – 2018 2 – 5% (1) – 8% 1 – 10% 26 – 28% 24 – 31% Results range Target met? 15
Slide 17: Agenda
Agenda Page 1 Notes 16 JPMORGAN CHASE & Co,
Slide 18: Notes on slides 1-7
Notes on slides 1-7 Slide 1 – AWM delivers superior client outcomes and consistent financial performance 1. Employees identified as top talent by senior executives Slide 2 – Consistent: Reliable growth engine with strong ROE 1. Historical revenue revised as a result of the adoption of the new accoun
Slide 19: Notes on slides 8-9
Notes on slides 8-9 Slide 8 – Consistent: Diversification drives flows 1. Includes Asset & Wealth Management, Chase Wealth Management investments, and new-to-firm Chase Private Client Deposits from 2012-2018; prior to 2012, flows data for Chase Wealth Management investments and new-to-firm Chase Pri
Slide 20: Notes on slides 10-14
Notes on slides 10-14 Slide 10 – Client-centric: Successfully innovating across our platform 1. Source: Morningstar. 5Y return are net of fees for Institutional Share class as of December 31, 2018. 5Y percentile rankings for Institutional Share class as of December 31, 2018. Category Average based o