Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q4 2013 Earnings Presentation
25 slides from Jp Morgan Chase &'s earnings presentation, Jan 14, 2014
Slide 1: Financial Results 4Q13
FINANCIAL RESULTS 4Q13 January 14, 2014
Slide 2: 4Q13 Financial highlights
4Q13 Financial highlights 4Q13 net income of $5.3B; EPS of $1.30; revenue of $24.1B1 Strong performance across our businesses 4Q13 results included the following significant items $B, excluding EPS Pretax Net income2 EPS2 Corporate – Gain on sale of Visa shares $1.3 $0.8 $0.21 Corporate – Gain
Slide 3: 4Q13 Financial results
4Q13 Financial results1 $mm, excluding EPS $ O/(U) 4Q13 3Q13 4Q12 Revenue (FTE)1 $24,112 $232 ($266) Credit costs 104 647 (552) Expense 15,552 (8,074) (495) Reported net income/(loss) $5,278 $5,658 ($414) Net income/(loss) applicable to common stockholders $4,938 $5,588 ($384) Reported EPS $1.30 $1.
Slide 4: Full year 2013 financial results
Full year 2013 financial results1 $mm, excluding EPS $ O/(U) FY2013 FY2012 FY2012 1 Revenue (FTE) $99,798 $99,890 ($92) Credit costs $B FY2013 FY2012 225 3,385 (3,160) Expense Adjusted expense4 $60.0 $60.1 70,467 64,729 5,738 Reported net income $17,923 $21,284 ($3,361) Net income applicable to comm
Slide 5: Fortress balance sheet and returns
Fortress balance sheet and returns $B, except where noted 4Q13 3Q13 4Q12 Basel I Tier 1 common capital1,2 $149 $145 $140 Risk-weighted assets 2 1,391 1,374 1,270 Tier 1 common ratio 1,2 10.7% 10.5% 11.0% Basel III Tier 1 common capital2 $151 $146 ― 4Q13 Risk-weighted assets 2 Standardized 1,591 1,56
Slide 6: Basel Update
Basel Update Basel III Supplementary Leverage Ratio (SLR) The Basel Committee released the final framework for SLR The Committee was responsive to industry comments and went a long way toward closing the gap between the U.S. NPR and the Basel proposal The use of NIMM1 to calculate Derivatives
Slide 7: Consumer & Community Banking
Consumer & Community Banking1 $mm Leadership positions $ O/(U) Consumer & Business Banking 4Q13 3Q13 4Q12 #1 in deposit growth for the second year in a row, with growth rate Net interest income $7,050 ($71) ($199) more than twice the industry average3 Noninterest revenue 4,264 303 (849) Revenue $1
Slide 8: Consumer & Community Banking - Consumer & Business Banking
Consumer & Community Banking Consumer & Business Banking $mm Financial performance $ O/(U) Net income of $780mm, up 7% YoY and 2% QoQ 4Q13 3Q13 4Q12 Net revenue of $4.4B, up 4% YoY and flat QoQ Net interest income $2,696 $12 $81 Noninterest revenue 1,720 (26) 71 Expense up 3% YoY, but down 1%
Slide 9: Consumer & Community Banking - Mortgage Banking
Consumer & Community Banking Mortgage Banking $mm Pro forma results ($mm)7 $ O/(U) $ O/(U) 4Q13 3Q13 4Q12 4Q13 3Q13 4Q12 Mortgage Production Production expense $585 ($84) ($111) Production-related revenue, excl. repurchase losses $494 ($90) ($1,118) Income, excl. repurchase losses (91) (6) (1,007) P
Slide 10: Consumer & Community Banking - Card, Merchant Services & Auto
Consumer & Community Banking Card, Merchant Services & Auto $mm Financial performance $ O/(U) Net income of $1.0B, up 23% YoY 4Q13 3Q13 4Q12 Net income, excluding the reduction in the allowance for Revenue $4,668 $36 ($140) loan losses3, flat YoY Expense 2,230 313 59 Revenue of $4.7B, down 3%
Slide 11: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Pro forma results ($mm)9 $ O/(U) $ O/(U) 4Q13 3Q13 4Q12 4Q13 3Q13 4Q12 Corporate & Investment Bank revenue $6,020 ($2,169) ($1,622) Corporate & Investment Bank revenue $8,016 ($570) ($193) Investment banking fees 1,671 161 (49) Treasury Services 987 (66) (72) Total B
Slide 12: Funding Valuation Adjustments (FVA)
Funding Valuation Adjustments (“FVA”) The Firm implemented a Funding Valuation Adjustments (“FVA”) framework this quarter for its OTC derivatives and structured notes, reflecting an industry migration towards incorporating the cost or benefit of unsecured funding into valuations For the first ti
Slide 13: Commercial Banking
Commercial Banking1 $mm Net income of $693mm, flat YoY and up 4% QoQ $ O/(U) Revenue of $1.8B, up 6% YoY 4Q13 3Q13 4Q12 Revenue $1,847 $122 $102 Record gross IB revenue of $502mm, up 12% QoQ Middle Market Banking 2 744 (1) (8) and 13% YoY 2 Corporate Client Banking 488 29 (4) Commercial Term L
Slide 14: Asset Management
Asset Management1 $mm Net income of $568mm, up 18% YoY $ O/(U) 4Q13 3Q13 4Q12 Record revenue of $3.2B, up 15% YoY Revenue $3,179 $416 $426 Record AUM of $1.6T, up 12% YoY Private Banking 1,603 115 162 Institutional 806 253 77 AUM net inflows for the quarter of $23B, driven by net Retail 770
Slide 15: Corporate/Private Equity
Corporate/Private Equity1 $mm Private Equity $ O/(U) Private Equity net income of $13mm 4Q13 3Q13 4Q12 Private Equity portfolio of $7.9B Private Equity $13 ($229) ($37) Treasury and CIO Treasury and CIO (78) 115 79 Treasury and CIO net loss of $78mm, compared to a Other Corporate 852 7,364 222
Slide 16: Outlook
Outlook Consumer & Community Banking Capital and leverage If delinquencies continue to trend down and macro- Basel III Tier 1 common ratio target of 10-10.5% economic environment remains stable/improves, expect Firm SLR target of 5.5%+/- charge-offs to decline and further reserve releases Ba
Slide 17: Appendix
Agenda Page Appendix 16 FINANCIAL RESULTS 16
Slide 18: Core net interest margin
Core net interest margin1 Net interest income trend Core NII Market-based NII Core NIM Market-based NIM JPM NIM 3.67% 3.29% 3.10% 3.00% 2.92% 2.85% 2.83% 2.60% 2.60% 2.64% 3.06% 2.74% 2.61% 2.47% 2.43% 2.40% 2.37% 2.20% 2.18% 2.20% 1.51% 1.41% 1.29% 1.17% 1.07% 1.11% 1.14% 1.05% 0.89% 0.86% FY2010 2
Slide 19: Consumer credit – Delinquency trends
Consumer credit – Delinquency trends1 Home equity delinquency trend ($mm) Prime mortgage delinquency trend ($mm) $3,500 30 – 149 day delinquencies 150+ day delinquencies $4,000 30 – 149 day delinquencies 150+ day delinquencies $3,000 $3,000 $2,500 $2,000 $2,000 $1,500 $1,000 $1,000 $500 $0 $0 Mar-10
Slide 20: Real Estate Portfolios and Card Services – Coverage ratios
Real Estate Portfolios and Card Services – Coverage ratios Real Estate Portfolios and Card Services credit data ($mm) O/(U) 1 Adjusted 4Q13 3Q13 4Q12 4Q12 Real Estate Portfolios (NCI) Net charge-offs $167 $204 $520 1 ($353) 1 NCO rate 0.57% 0.70% 1.74% (117)bps Allowance for loan losses $2,568 $2,76
Slide 21: Firmwide – Coverage ratios
Firmwide – Coverage ratios $mm 5.00% Loan loss reserve/Total loans1 Loan loss reserve Nonperforming retained loans Loan loss reserve/NPLs1 500% 4.00% 400% 3.00% 300% 27,609 25,871 22,824 2.00% 23,791 21,936 20,780 200% 19,384 17,571 16,264 1.00% 100% 9,810 10,391 9,874 11,124 10,609 10,296 9,578 9,0
Slide 22: Corporate & Investment Bank – Key metrics & leadership positions
Corporate & Investment Bank – Key metrics & leadership positions Corporate & Investment Bank Comments ($B) FY2013 FY2012 FY2011 FY2010 Corporate & Investment Bank International revenue $16.5 $16.3 $17.1 $15.7 48% of revenue is international for FY2013 1 213.5 189.6 180.1 146.4 International deposi
Slide 23: IB League Tables
IB League Tables League table results For FY2013, JPM ranked: FY2013 FY2012 Rank Share Rank Share #1 in Global IB fees Based on fees: #1 in Global Debt, Equity & Equity-related 1 1 8.6% 1 7.5% Global IB fees #1 in Global Long-term Debt Based on volumes: #2 in Global Equity & Equity-related
Slide 24: Notes
Notes Notes on non-GAAP financial measures 1. In addition to analyzing the Firm’s consolidated 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 bas
Slide 25: 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