Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q4 2023 Earnings Presentation
20 slides from Jp Morgan Chase &'s earnings presentation, Jan 12, 2024
Slide 1: 4Q23 Financial Results
4Q23 Financial Results January 12, 2024
Slide 2: Agenda
Agenda Page 1 4Q23 and FY23 Financial Results 1 2 Financial Outlook 10 3 Notes 13
Slide 3: 4Q23 Financial highlights
4Q23 Financial highlights CET1 capital ratios2 Std. RWA3 $1.7T ROTCE1 15.0% | Adv. 15.0% Std. $1.4T 15% Cash and marketable securities4 Total Loss-Absorbing Capacity $514B 2 Average loans $1.3T ⚫ 4Q23 net income of $9.3B and EPS of $3.04 – Excluding significant items5, 4Q23 net income of $12.1B, EPS
Slide 4: 4Q23 Financial results
4Q23 Financial results1 $B, EXCEPT PER SHARE DATA 4Q23 ex. FR $ O/(U) Reported FR impact ex. FR 3Q23 4Q22 Net interest income $24.2 $1.3 $22.8 $1.4 $2.5 Noninterest revenue 15.8 0.5 15.2 (1.8) (0.0) Managed revenue 1 $B 4Q23 3Q23 4Q22 39.9 1.9 38.1 (0.4) 2.5 Net charge-offs $2.2 $1.5 $0.9 Expense Re
Slide 5: FY23 Financial results
FY23 Financial results1 $B, EXCEPT PER SHARE DATA FY2023 FY2022 ex. FR $ O/(U) Reported FR impact ex. FR Reported FY2022 Net interest income $89.7 $3.7 $86.0 $67.1 $18.9 Noninterest revenue 72.6 4.4 68.2 65.1 3.0 Managed revenue 1 $B FY2023 FY2022 162.4 8.2 154.2 132.3 21.9 Net charge-offs $6.2 $2.9
Slide 6: Fortress balance sheet
Fortress balance sheet $B, EXCEPT PER SHARE DATA STANDARDIZED CET1 RATIO (%)1 4Q23 3Q23 4Q22 1 30 bps 15 bps 15.0% Risk-based capital metrics 53 bps (1 bps) CET1 capital $251 $242 $219 (30 bps) CET1 capital ratio – Standardized 15.0% 14.3% 13.2% 14.3% CET1 capital ratio – Advanced 15.0 14.5 13.6 Inc
Slide 7: Consumer & Community Banking
CCB CIB CB AWM Corp. Consumer & Community Banking1 SELECTED INCOME STATEMENT DATA ($MM) FINANCIAL PERFORMANCE (ex. FR) 4Q23 ex. FR $ O/(U) ⚫ Net income of $4.4B, down 3% YoY Reported FR impact ex. FR 3Q23 4Q22 ⚫ Revenue of $17.0B, up 8% YoY, predominantly driven by higher net Revenue $18,097 $1,091
Slide 8: Corporate & Investment Bank
CCB CIB CB AWM Corp. Corporate & Investment Bank1 SELECTED INCOME STATEMENT DATA ($MM) FINANCIAL PERFORMANCE $ O/(U) ⚫ Net income of $2.5B, down 24% YoY; revenue of $11.0B, up 3% YoY 4Q23 3Q23 4Q22 ⚫ Banking revenue Revenue $10,958 ($772) $360 ⚫ IB revenue of $1.6B, up 13% YoY Investment Banking rev
Slide 9: Commercial Banking
CCB CIB CB AWM Corp. Commercial Banking1 SELECTED INCOME STATEMENT DATA ($MM) FINANCIAL PERFORMANCE (ex. FR) 4Q23 ex. FR $ O/(U) ⚫ Net income of $1.5B, up 4% YoY Reported FR impact ex. FR 3Q23 4Q22 ⚫ Revenue of $3.7B, up 7% YoY, largely driven by higher net interest income, where the impact of rates
Slide 10: Asset & Wealth Management
CCB CIB CB AWM Corp. Asset & Wealth Management1 SELECTED INCOME STATEMENT DATA ($MM) FINANCIAL PERFORMANCE (ex. FR) 4Q23 ex. FR $ O/(U) ⚫ Net income of $925mm, down 18% YoY Reported FR impact ex. FR 3Q23 4Q22 ⚫ Revenue of $4.7B, up 2% YoY, driven by higher management fees on strong net inflows and h
Slide 11: Corporate
CCB CIB CB AWM Corp. Corporate1 SELECTED INCOME STATEMENT DATA ($MM) FINANCIAL PERFORMANCE (ex. FR) 4Q23 ex. FR $ O/(U) ⚫ Revenue was $1.8B, up $597mm YoY ⚫ Net interest income was $2.5B, up $1.2B YoY, driven by Reported FR impact ex. FR 3Q23 4Q22 the impact of higher rates and balance sheet mix Rev
Slide 12: Agenda
Agenda Page 1 4Q23 and FY23 Financial Results 1 2 Financial Outlook 10 3 Notes 13
Slide 13: We expect ~$88B in NII ex. Markets for 2024, as loan growth partially offsets lower rates
We expect ~$88B in NII ex. Markets for 2024, as loan growth partially offsets lower rates NET INTEREST INCOME ($B) NII ex. Markets1 Markets NII $97 $90 $1.5 ~$90 ($8) 4Q 4Q23: $24 run rate Rate / reprice2 Balance sheet growth / mix ◼ Assumes 6 rate cuts ◼ Loan growth including in 2024 (4.0% continue
Slide 14: Our 2024 expense outlook is ~$90B
Our 2024 expense outlook is ~$90B ADJUSTED EXPENSE1 ($B) 2024 DRIVERS ⚫ Business-growth-driven hiring, ~$90 primarily in front office $85.7 ~$86 $2 FDIC SA2 ⚫ Increase in technology spend Corp. $2 associated with investments and $14 higher business volumes, net of AWM $13 efficiencies $6 ⚫ Continued
Slide 15: Outlook
Outlook1 FIRMWIDE Expect FY2024 net interest income of ~$90B, market dependent 1 Expect FY2024 net interest income excluding Markets of ~$88B, market dependent ~$90B, market dependent 2 Expect FY2024 adjusted expense of – Adjusted expense excludes Firmwide legal expense 3 Expect FY2024 Card Services
Slide 16: Agenda
Agenda Page 1 4Q23 and FY23 Financial Results 1 2 Financial Outlook 10 3 Notes 13
Slide 17: 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 18: 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 is being phased out at 25% per year over a three-year period. As of December 31, 2023 and September 30, 2023, CET1 capital and Total Loss-
Slide 19: Additional notes on slides 5-7
Additional notes on slides 5-7 Slide 5 – Consumer & Community Banking 3. Actual numbers for all periods, not over/(under) 4. Users of all JPMorgan Chase mobile platforms who have logged in within the past 90 days. Excludes First Republic 5. Excludes Commercial Card 6. Includes the impact of loans or
Slide 20: 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