Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q2 2019 Earnings Presentation
13 slides from Jp Morgan Chase &'s earnings presentation, Jul 16, 2019
Slide 1: 2Q19 Financial Results
2Q19 Financial Results July 16, 2019
Slide 2: 2Q19 Financial highlights
2Q19 Financial highlights ROTCE1 Common equity Tier 12 Net payout LTM3 20% 12.2% 92% 2Q19 net income of $9.7B and EPS of $2.82 Managed revenue of $29.6B4 Expense of $16.3B and managed overhead ratio of 55%4 Balance sheet Average total loans up 2% YoY and down 1% QoQ – Home Lending average
Slide 3: 2Q19 Financial results
2Q19 Financial results1 $B, except per share data $ O/(U) 2Q19 1Q19 2Q18 Net interest income $14.5 ($0.1) $0.9 Noninterest revenue 15.0 (0.2) 0.3 Managed revenue1 $B 2Q19 1Q19 2Q18 29.6 (0.3) 1.2 Net charge-offs $1.4 $1.4 $1.3 Expense Reserve build/(release) (0.3) 0.1 (0.0) 16.3 (0.1) 0.4 Credit cos
Slide 4: Fortress balance sheet and capital
Fortress balance sheet and capital $B, except per share data 2Q19 1Q19 2Q18 Basel III Standardized1 CET1 capital $189 $186 $185 2Q19 Advanced CET1 capital ratio of 13.0%1 12.2% 12.1% 12.0% Tier 1 capital $215 $213 $210 Tier 1 capital ratio 13.9% 13.8% 13.6% Total capital $244 $241 $238 Total capital
Slide 5: Consumer & Community Banking
Consumer & Community Banking1 $mm Financial performance $ O/(U) Net income of $4.2B, up 22% YoY; revenue of $13.8B, up 11% 2Q19 1Q19 2Q18 Higher NII in CBB and Card, and higher auto lease volumes Revenue $13,833 $82 $1,336 2Q19 included negative MSR adjustments in Home Lending; Consumer & Busi
Slide 6: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $2.9B on revenue of $9.6B 2Q19 1Q19 2Q18 Banking revenue Revenue $9,641 ($207) ($282) Investment banking revenue 1,776 31 (173) IB revenue of $1.8B, down 9% YoY reflecting lower fees Treasury Services 1,135 (12) (46)
Slide 7: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Net income of $1.0B 2Q19 1Q19 2Q18 Revenue of $2.2B, down 5% YoY Revenue $2,211 ($127) ($105) Middle Market Banking 939 (12) 20 Net interest income of $1.7B, down 1% YoY Corporate Client Banking 709 (107) (98) Gross IB revenue of $592mm,
Slide 8: Asset & Wealth Management
Asset & Wealth Management1 $mm Financial performance $ O/(U) Net income of $719mm, down 5% YoY 2Q19 1Q19 2Q18 Revenue of $3.6B, relatively flat YoY Revenue $3,559 $70 ($13) Asset Management 1,785 24 (41) Impact from higher average market levels was offset by lower Wealth Management 1,774 46 28
Slide 9: Corporate
Corporate1 $mm Financial performance $ O/(U) Revenue 2Q19 1Q19 2Q18 Net revenue of $322mm compared with revenue of $80mm in Revenue $322 ($103) $242 the prior year Expense 232 21 (47) Credit costs (2) (4) (1) The increase was driven by higher net interest income on Net income $828 $577 $964 high
Slide 10: Outlook
Outlook1 Firmwide Expect FY2019 net interest income to be $57.5B+/-, market dependent Expect FY2019 adjusted expense of <$66B Expect FY2019 net charge-offs of ~$5.5B 1 See notes 1 and 3 on slide 10 9
Slide 11: Notes
Notes 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 resu
Slide 12: Notes
Notes Additional Notes on slide 4 – Consumer & Community Banking 2. Actual numbers for all periods, not over/(under) 3. Firmwide mortgage origination volume was $26.3B, $16.4B and $23.7B for the three months ended June 30, 2019, March 31, 2019 and June 30, 2018, respectively 4. Excludes the impact o
Slide 13: 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