Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q1 2014 Earnings Presentation
22 slides from Jp Morgan Chase &'s earnings presentation, Apr 11, 2014
Slide 1: Financial Results 1Q14
FINANCIAL RESULTS 1Q14 April 11, 2014
Slide 2: 1Q14 Financial highlights
1Q14 Financial highlights 1Q14 net income of $5.3B and EPS of $1.28 Revenue of $23.9B1, adjusted expense of $14.6B2 and ROTCE of 13%3 The net impact of non-recurring and non-core items was not significant in 1Q14 Fortress balance sheet Basel III Advanced Fully Phased-In Tier 1 common4 of $
Slide 3: 1Q14 Financial results
1Q14 Financial results1 $mm, excluding EPS $ O/(U) 1Q14 4Q13 1Q13 Revenue (FTE)1 $23,863 ($249) ($1,985) Credit costs 850 746 233 Expense 14,636 (916) (787) Reported net income/(loss) $5,274 ($4) ($1,255) Net income/(loss) applicable to common stockholders $4,898 ($40) ($1,233) Reported EPS $1.28 ($
Slide 4: Fortress balance sheet and returns
Fortress balance sheet and returns1 $B, except where noted 1Q14 4Q13 1Q13 Basel III Advanced Fully Phased-In2 Tier 1 common capital $156 $151 NA 3 Risk-weighted assets 1,638 1,591 NA Tier 1 common ratio 9.5% 9.5% NA Firm supplementary leverage ratio ("SLR")4 Impact of U.S. Final 5.1% 4.6% NA Bank SL
Slide 5: Consumer & Community Banking
Consumer & Community Banking1 $mm Leadership positions $ O/(U) Consumer & Business Banking 1Q14 4Q13 1Q13 Deposit growth is among the highest in the industry5 Net interest income $7,026 ($24) ($183) #1 in customer satisfaction among the largest banks for the Noninterest revenue 3,434 (830) (972)
Slide 6: Consumer & Community Banking: Consumer & Business Banking
Consumer & Community Banking Consumer & Business Banking $mm Financial performance $ O/(U) Net income of $740mm, up 15% YoY, but down 5% QoQ 1Q14 4Q13 1Q13 Net revenue of $4.4B, up 5% YoY, but down 1% QoQ Net interest income $2,708 $12 $136 Expense up 1% YoY and QoQ Noninterest revenue 1,672 (
Slide 7: Consumer & Community Banking: Mortgage Banking
Consumer & Community Banking Mortgage Banking $mm Financial performance $ O/(U) Mortgage Production pretax loss of $58mm, down $485mm 1Q14 4Q13 1Q13 YoY Mortgage Production Production-related revenue, excl. repurchase (losses)/benefits $292 ($202) ($926) Revenue 76% lower YoY, primarily on lower
Slide 8: Consumer & Community Banking: Card, Merchant Services & Auto
Consumer & Community Banking Card, Merchant Services & Auto $mm Financial performance $ O/(U) Net income of $1.1B, down 15% YoY 1Q14 4Q13 1Q13 Net income, excluding the reduction in the allowance for Revenue $4,511 ($157) ($209) loan losses3, down 4% YoY Expense 1,969 (261) 26 Net charge-offs 1,
Slide 9: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Pro forma results ($mm)9 $ O/(U) $ O/(U) 1Q14 4Q13 1Q13 1Q14 4Q13 1Q13 Corporate & Investment Bank revenue $8,606 $2,586 ($1,534) Corporate & Investment Bank revenue $8,606 $590 ($1,408) Investment banking fees 1,444 (227) 11 Total Banking 2,737 (294) (238) Treasury
Slide 10: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Net income of $578mm, down 3% YoY and down 17% 1Q14 4Q13 1Q13 QoQ Revenue $1,651 ($196) ($22) Middle Market Banking 698 (46) (55) Revenue of $1.7B, down 1% YoY Corporate Client Banking 446 (42) 13 Commercial Term Lending 308 10 17 Credit co
Slide 11: Asset Management
Asset Management1 $mm Financial performance $ O/(U) Net income of $441mm, down 9% YoY 1Q14 4Q13 1Q13 Revenue $2,778 ($401) $125 Revenue of $2.8B, up 5% YoY Private Banking 1,509 (90) 63 Institutional 500 (280) (67) Record AUM of $1.6T, up 11% YoY Retail 769 (31) 129 Credit costs ($9) ($30) ($3
Slide 12: Corporate/Private Equity
Corporate/Private Equity1 $mm Financial performance $ O/(U) Private Equity 1Q14 4Q13 1Q13 Private Equity net income of $215mm Private Equity $215 $202 $397 Includes $398mm of PE gains Treasury and CIO (94) (16) (118) Private Equity portfolio of $7.0B Other Corporate 219 (633) (189) Treasury an
Slide 13: Outlook
Outlook Consumer & Community Banking Capital and leverage If delinquencies continue to trend down and macro- Basel III Tier 1 common ratio target of 10%+ economic environment remains stable or improves, Firm SLR target of 5.5%+/- potential for further modest mortgage reserve releases over time
Slide 14: Appendix
Agenda Page Appendix 13 FINANCIAL RESULTS 13
Slide 15: Core net interest margin
Core net interest margin1 Net interest income trend Core NII Market-based NII Core NIM Market-based NIM JPM NIM 3.67% 3.29% 2.97% 2.83% 2.60% 2.60% 2.64% 2.66% 3.06% 2.74% 2.48% 2.37% 2.20% 2.18% 2.20% 2.20% 1.51% 1.41% 1.16% 1.14% 1.05% 0.89% 0.86% 0.84% FY2010 2 FY2011 2 FY2012 2 1Q13 2Q13 3Q13 4Q
Slide 16: Consumer credit – Delinquency trends
Consumer credit – Delinquency trends1 Home equity delinquency trend ($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 $50
Slide 17: Real Estate Portfolios and Card Services – Coverage ratios
Real Estate Portfolios and Card Services – Coverage ratios Real Estate Portfolios and Card Services credit data ($mm) O/(U) 1Q14 4Q13 1Q13 1Q13 Real Estate Portfolios (NCI) Net charge-offs $174 $167 $448 ($274) NCO rate 0.61% 0.57% 1.56% (95)bps Allowance for loan losses $2,368 $2,568 $4,218 ($1,850
Slide 18: Firmwide – Coverage ratios
Firmwide – Coverage ratios $mm 5.00% Loan loss reserve/Total loans1 Loan loss reserve Nonperforming retained loans Loan loss reserve/NPLs1 500% 4.00% 400% 25,871 3.00% 23,791 22,824 300% 21,936 20,780 19,384 17,571 2.00% 16,264 15,847 200% 1.00% 10,391 100% 9,874 11,124 10,609 10,296 9,578 9,027 8,3
Slide 19: Corporate & Investment Bank – Key metrics & leadership positions
Corporate & Investment Bank – Key metrics & leadership positions Corporate & Investment Bank Comments ($B) LTM1 FY2013 FY2012 FY2011 Corporate & Investment Bank International revenue $15.9 $16.5 $16.3 $17.1 49% of revenue is international for LTM 1Q14 International deposits increased 23% from FY
Slide 20: IB League Tables
IB League Tables League table results For 1Q14, JPM ranked: 1Q14 FY2013 Rank Share Rank Share #1 in Global IB fees Based on fees: #1 in Global Debt, Equity & Equity-related Global IB fees1 1 8.2% 1 8.6% #1 in Global Long-term Debt Based on volumes: #3 in Global Equity & Equity-related Glob
Slide 21: Notes
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 and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. The Firm’s definition of managed basis starts wit
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