Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q4 2022 Earnings Presentation
21 slides from Jp Morgan Chase &'s earnings presentation, Jan 13, 2023
Slide 1: 4Q22 Financial Results
4Q22 Financial Results January 13, 2023
Slide 2: Agenda
Agenda Page 1 4Q22 and FY2022 Financial Results 1 2 Financial Outlook 10 3 Notes 14
Slide 3: 4Q22 Financial highlights
4Q22 Financial highlights CET1 capital ratios2 Std. RWA3 $1.7T ROTCE1 Std. 13.2% | Adv. 13.5% Cash and marketable 20% Total Loss-Absorbing securities4 $1.4T Capacity2 $486B Average loans $1.1T ◼ 4Q22 net income of $11.0B and EPS of $3.57 ◼ Managed revenue of $35.6B5 Income statement – Included a gai
Slide 4: 4Q22 Financial results
4Q22 Financial results1 $B, except per share data $ O/(U) 4Q22 3Q22 4Q21 Net interest income $20.3 $2.7 $6.6 Noninterest revenue 15.3 (0.6) (1.4) Managed revenue 1 $B 4Q22 3Q22 4Q21 35.6 2.1 5.2 Net charge-offs $0.9 $0.7 $0.6 Expense 19.0 (0.2) 1.1 Reserve build/(release) 1.4 0.8 (1.8) Credit costs
Slide 5: FY22 Financial results
FY22 Financial results1 $B, except per share data $ O/(U) FY2022 FY2021 FY2021 Net interest income $67.1 $52.7 $14.4 Noninterest revenue 65.1 72.6 (7.4) Managed revenue 1 $B FY2022 FY2021 132.3 125.3 7.0 Net charge-offs $2.9 $2.9 Expense 76.1 71.3 4.8 Reserve build/(release) 3.5 (12.1) Credit costs
Slide 6: Fortress balance sheet
Fortress balance sheet $B, except per share data Standardized CET1 ratio (%)1 4Q22 3Q22 4Q21 16 bps 13.2% 63 bps 13 bps (3 bps) Risk-based capital metrics1 (18 bps) CET1 capital $219 $210 $214 12.5% CET1 capital ratio – Standardized 13.2% 12.5% 13.1% CET1 capital ratio – Advanced 13.5 13.0 13.8 Base
Slide 7: Consumer & Community Banking
CCB CIB CB AWM Corp. Consumer & Community Banking1 Selected income statement data ($mm) Financial performance $ O/(U) ◼ Net income of $4.5B, up 10% YoY 4Q22 3Q22 4Q21 ◼ Revenue of $15.8B, up 29% YoY Revenue $15,843 $1,512 $3,568 ◼ Expense of $8.0B, up 3% YoY, driven by higher investments in the Bank
Slide 8: Corporate & Investment Bank
CCB CIB CB AWM Corp. Corporate & Investment Bank1 Selected income statement data ($mm) Financial performance $ O/(U) ◼ Net income of $3.3B, down 27% YoY; revenue of $10.5B, down 4Q22 3Q22 4Q21 9% YoY Revenue $10,548 ($1,327) ($986) ◼ Banking revenue Investment Banking revenue 1,389 (324) (1,817) ◼ I
Slide 9: Commercial Banking
CCB CIB CB AWM Corp. Commercial Banking1 Selected income statement data ($mm) Financial performance $ O/(U) ◼ Net income of $1.4B, up 15% YoY 4Q22 3Q22 4Q21 ◼ Revenue of $3.4B, up 30% YoY, driven by higher deposit margins, partially offset by lower investment banking revenue and deposit- Revenue $3,
Slide 10: Asset & Wealth Management
CCB CIB CB AWM Corp. Asset & Wealth Management1 Selected income statement data ($mm) Financial performance ◼ Net income of $1.1B, up 1% YoY $ O/(U) ◼ Revenue of $4.6B, up 3% YoY, driven by higher deposit margins on 4Q22 3Q22 4Q21 lower balances, predominantly offset by lower management, Revenue $4,5
Slide 11: Corporate
CCB CIB CB AWM Corp. Corporate1 Selected income statement data ($mm) Financial performance ◼ Revenue was $1.2B, up $1.7B YoY $ O/(U) ◼ Net interest income was $1.3B, up $2.0B YoY, due to the impact 4Q22 3Q22 4Q21 of higher rates Revenue $1,183 $1,485 $1,728 ◼ Noninterest revenue was a loss of $115mm
Slide 12: Agenda
Agenda Page 1 4Q22 and FY2022 Financial Results 1 2 Financial Outlook 10 3 Notes 14
Slide 13: We expect ~$74B in NII ex. Markets for 2023; deposit reprice dynamics remain uncertain
We expect ~$74B in NII ex. Markets for 2023; deposit reprice dynamics remain uncertain Net interest income ($B) NII ex. Markets1 Markets NII $81 Rate / reprice2 Total NII: ~$73 $67 ◼ Deposit reprice and internal migration ◼ Assumes two more rate hikes in 2023, followed 4Q22: $20 4Q run rate by two c
Slide 14: Our 2023 expense outlook is ~$81B
Our 2023 expense outlook is ~$81B Adjusted expense1 ($B) 2023 drivers ◼ Labor inflation ~$81 ◼ Annualization of 2022 hires $75.9 Corp. ◼ 2023 headcount increases AWM 12 ◼ Continued investments in the business ◼ Technology CB 5 ◼ Bankers, Advisors & Branches ◼ Marketing ◼ Higher FDIC assessment (~$0.
Slide 15: We expect continued normalization in credit in 2023
We expect continued normalization in credit in 2023 2022 net charge-offs were at historically low levels We project 30+ day delinquencies to normalize by mid-2023… Net charge-offs ($B) Card Services 30+ day delinquency rates 2.5% Pre-pandemic $5.6 “normal” levels Wholesale 0.4 2.0% 1.5% Outlook1 $2.
Slide 16: Outlook summary
Outlook summary1 Firmwide Expect FY2023 net interest income of ~$73B, market dependent 1 Expect FY2023 net interest income excluding Markets of ~$74B, market dependent 2 Expect FY2023 adjusted expense of ~$81B, market dependent 3 Expect FY2023 Card Services NCO rate of ~2.60% 1 See notes 1, 2 and 4
Slide 17: Agenda
Agenda Page 1 4Q22 and FY2022 Financial Results 1 2 Financial Outlook 10 3 Notes 14
Slide 18: 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 19: Additional notes
Additional notes 1. Reflects 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 being phased out at 25% per year over a three-year period. As of December 31, 2022 and September 30
Slide 20: Additional notes on slides 5-7
Additional notes on slides 5-7 Slide 5 – Consumer & Community Banking 5. Actual numbers for all periods, not over/(under) 6. Users of all mobile platforms who have logged in within the past 90 days 7. Excludes Commercial Card 8. Includes the impact of loans originated under the PPP. For further info
Slide 21: 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