Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q3 2018 Earnings Presentation
13 slides from Jp Morgan Chase &'s earnings presentation, Oct 12, 2018
Slide 1: 3Q18 Financial Results
3Q18 Financial Results October 12, 2018
Slide 2: 3Q18 Financial highlights
3Q18 Financial highlights ROTCE1 Common equity Tier 12 Net payout LTM3 17% 12.0% 96% 3Q18 net income of $8.4B and EPS of $2.34 Managed revenue of $27.8B4 Expense of $15.6B and managed overhead ratio of 56%4 Fortress balance sheet Average core loans5 ex-CIB up 6% YoY and 2% QoQ Basel III
Slide 3: 3Q18 Financial results
3Q18 Financial results1 $B, excluding EPS $ O/(U) 3Q18 2Q18 3Q17 Net interest income $14.1 $0.4 $0.9 Noninterest revenue 13.8 (1.0) 0.4 Managed revenue1 $B 3Q18 2Q18 3Q17 27.8 (0.6) 1.4 Net charge-offs $1.0 $1.3 $1.3 Expense Reserve build/(release) (0.1) (0.0) 0.2 15.6 (0.3) 1.1 Credit costs Credit
Slide 4: Fortress balance sheet and capital
Fortress balance sheet and capital $B, except per share data 3Q18 2Q18 3Q17 Basel III Standardized Fully Phased-In1 CET1 capital $185 $185 $187 3Q18 Basel III CET1 capital ratio Advanced Fully 12.0% 12.0% 12.4% Phased-In of 12.9%1 Tier 1 capital $211 $210 $212 Tier 1 capital ratio 13.6% 13.6% 14.0%
Slide 5: Consumer & Community Banking
Consumer & Community Banking1 $mm Financial performance $ O/(U) Net income of $4.1B 3Q18 2Q18 3Q17 Revenue of $13.3B, up 10% YoY, driven by higher NII on higher Revenue $13,290 $793 $1,257 deposit and card margins and balance growth Consumer & Business Banking 6,385 254 977 Expense of $7.0B, u
Slide 6: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $2.6B on revenue of $8.8B 3Q18 2Q18 3Q17 Banking revenue Revenue $8,805 ($1,118) $190 Investment banking revenue 1,731 (218) 1 IB revenue of $1.7B, flat YoY Treasury Services 1,183 2 125 – Ranked #1 in Global IB fees
Slide 7: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Net income of $1.1B 3Q18 2Q18 3Q17 Revenue of $2.3B, up 6% YoY Revenue $2,271 ($45) $125 Middle Market Banking 935 16 87 Net interest income of $1.7B, up 9% YoY, driven by higher Corporate Client Banking 749 (58) 61 deposit margins Commerci
Slide 8: Asset & Wealth Management
Asset & Wealth Management1 $mm Financial performance $ O/(U) Net income of $724mm 3Q18 2Q18 3Q17 Revenue of $3.6B, up 3% YoY, driven by higher management Revenue $3,559 ($13) $87 fees and strong banking results Asset Management 1,827 1 13 Wealth Management 1,732 (14) 74 Expense of $2.6B, up 7%
Slide 9: Corporate
Corporate1 $mm Financial performance $ O/(U) Treasury and CIO 3Q18 2Q18 3Q17 Net Income of $96mm, up $21mm YoY, primarily driven by Treasury and CIO $96 $249 $21 higher rates Other Corporate (241) (258) (244) Net income ($145) ($9) ($223) Other Corporate Net loss of $241mm includes markdowns of
Slide 10: Outlook
Outlook Firmwide Expect FY2018 net interest income to be $55.5B+/-, market dependent Expect FY2018 noninterest revenue growth of 7-8%, market dependent Expect FY2018 adjusted expense of $63.5B+/- Expect FY2018 effective income tax rate to be ~20% Expect FY2018 average core loan growth of 6
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 $24.5B, $23.7B and $29.2B for the three months ended September 30, 2018, June 30, 2018 and September 30, 2017, respectively 4. Excludes the
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