Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q1 2016 Earnings Presentation
22 slides from Jp Morgan Chase &'s earnings presentation, Apr 13, 2016
Slide 1: Financial Results 1Q16
FINANCIAL RESULTS 1Q16 April 13, 2016
Slide 2: 1Q16 Financial highlights
1Q16 Financial highlights ROTCE1 CET1 ratio2 Overhead ratio3 Net payout ratio LTM4 12% 11.7% 57% 48% 1Q16 net income of $5.5B and EPS of $1.35 Revenue of $24.1B3 Adjusted expense of $13.9B5 and adjusted overhead ratio of 58%5 Fortress balance sheet Average core loans6 up 17% YoY and 3% QoQ
Slide 3: 1Q16 Financial results
1Q16 Financial results1 $B, excluding EPS $ O/(U) 1Q16 4Q15 1Q15 Net interest income $11.7 $0.2 $0.7 Noninterest revenue 12.4 0.2 (1.5) Revenue (FTE)1 24.1 0.3 (0.7) Expense 13.8 (0.4) (1.0) Credit costs 1.8 0.6 0.9 Reported net income $5.5 $0.1 ($0.4) Net income applicable to common stockholders $5
Slide 4: Fortress balance sheet and returns
Fortress balance sheet and returns1 $B, except per share data 1Q16 4Q15 1Q15 Basel III Advanced Fully Phased-In2 CET1 1Q16 Basel III $176 $173 $167 Standardized Fully CET1 ratio Phased-In of 11.9%2 11.7% 11.6% 10.6% Tier 1 capital $202 $199 $189 Tier 1 capital ratio 13.4% 13.3% 12.0% Total capital $
Slide 5: Consumer & Community Banking
Consumer & Community Banking1 $mm Financial performance $ O/(U) Net income of $2.5B, up 12% YoY 1Q16 4Q15 1Q15 Revenue of $11.1B, up 4% YoY, driven by net interest income Revenue $11,117 ($105) $413 Consumer & Business Banking 4,550 (37) 192 on loan and deposit growth and auto lease revenue, par
Slide 6: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $2.0B on revenue of $8.1B 1Q16 4Q15 1Q15 Corporate & Investment Bank revenue $8,135 $1,066 ($1,447) Banking revenue Investment banking revenue 1,231 (239) (399) IB revenue of $1.2B, down 24% YoY driven by lower debt a
Slide 7: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Net income of $496mm, down 17% YoY and 10% QoQ 1Q16 4Q15 1Q15 Revenue $1,803 $43 $61 Revenue of $1.8B, up 4% YoY and 2% QoQ Middle Market Banking 717 15 40 Expense of $713mm, up 1% YoY and down 5% QoQ Corporate Client Banking 501 31 (63) Co
Slide 8: Asset Management
Asset Management1 $mm Financial performance $ O/(U) Net income of $587mm, up 17% YoY and up 16% QoQ 1Q16 4Q15 1Q15 Revenue $2,972 ($73) ($33) Revenue of $3.0B, down 1% YoY and down 2% QoQ Global Investment Management 1,499 (116) (34) Expense of $2.1B, down 5% YoY and down 6% QoQ Global Wealth
Slide 9: Corporate
Corporate1 $mm Financial performance $ O/(U) Treasury and CIO 1Q16 4Q15 1Q15 Prior quarter results included a pre-tax benefit of ~$178mm as a Treasury and CIO ($111) ($249) $110 result of recognizing the unamortized discount on certain debt securities which were called at par Other Corporate 79 (5
Slide 10: Outlook
Outlook Firmwide Corporate & Investment Bank Expect 2016 net interest income to be up ~$2B+ YoY Expect Securities Services revenue to be ~$875mm per quarter for the remainder of 2016, market dependent Expect 2016 noninterest revenue to be ~$50B, market dependent Expect 2016 adjusted expense
Slide 11: Agenda
Agenda Page Appendix 10 FINANCIAL RESULTS 10
Slide 12: Select leadership positions
Select leadership positions Consumer & Community Banking Corporate & Investment Bank Consumer & Business Banking League table results – wallet share 1Q16 FY2015 Deposit volume growing at nearly twice the industry Rank Share Rank Share growth rate1 7 Based on fees : Largest active mobile customer
Slide 13: Consumer & Community Banking: Consumer & Business Banking
Consumer & Community Banking Consumer & Business Banking $mm Financial performance $ O/(U) Net income of $1B, up 24% YoY and 6% QoQ 1Q16 4Q15 1Q15 Revenue of $4.6B, up 4% YoY and down 1% QoQ Net interest income $2,700 $91 $91 Expense of $2.9B, down 3% YoY and QoQ Noninterest revenue 1,850 (128
Slide 14: Consumer & Community Banking: Mortgage Banking
Consumer & Community Banking Mortgage Banking $mm Financial performance $ O/(U) Net income of $526mm, up 61% YoY 1Q16 4Q15 1Q15 Revenue of $1.9B, up 7% YoY on higher MSR revenue and Net interest income $1,222 $75 $166 NII on loan growth, partially offset by lower servicing Noninterest revenue 65
Slide 15: Consumer & Community Banking: Card, Commerce Solutions & Auto
Consumer & Community Banking Card, Commerce Solutions & Auto $mm Financial performance $ O/(U) Net income of $937mm, down 12% YoY 1Q16 4Q15 1Q15 Revenue of $4.7B, up 2% YoY Net interest income $3,389 ($39) $86 Expense of $2.3B, up 12% YoY driven by higher auto lease Noninterest revenue 1,302 (
Slide 16: Consumer credit – Delinquency trends
Consumer credit – Delinquency trends1 Home equity delinquency trend ($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) 1Q16 4Q15 1Q15 1Q15 Mortgage Banking (NCI) Net charge-offs $60 $59 $104 ($44) NCO rate 0.13% 0.13% 0.30% (17) bps Allowance for loan losses $1,588 $1,588 $2,088 ($500) 2 ALL/annualized NC
Slide 18: Firmwide – Coverage ratios
Firmwide – Coverage ratios1 $mm $mm 3.00% Loan loss reserve/Total loans1 Loan loss reserve Nonperforming retained Loan loss reserve/NPLs1 400% loans 300% 2.00% 200% 1.00% 15,847 15,326 14,889 14,185 14,065 13,915 13,994 100% 13,466 13,555 8,123 7,634 7,241 7,017 6,921 7,367 6,645 6,616 6,303 0.00% 0
Slide 19: Notes on non-GAAP financial measures
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 20: Notes
Notes Additional Notes on slide 4 – Consumer & Community Banking 2. Actual numbers for all periods, not over/(under) 3. Includes predominantly Business Banking loans as well as deposit overdrafts 4. Firmwide mortgage origination volume was $24.4B, $24.7B, and $26.6B, for 1Q16, 4Q15 and 1Q15, respect
Slide 21: Notes on Select leadership positions
Notes Notes on slide 11 – Select leadership positions 1. Based on FDIC 2015 Summary of Deposits survey per SNL Financial – excludes branches with greater than $500mm of deposits or identified as non-retail 2. Based on disclosures by peers as of 4Q15 3. Based on Inside Mortgage Finance as of 4Q15 for
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