Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q2 2011 Earnings Presentation
22 slides from Jp Morgan Chase &'s earnings presentation, Jul 14, 2011
Slide 1: Financial Results 2Q11
July 14, 2011 F I N A N C I A L R E S U L T S 2Q11
Slide 2: 2Q11 Financial highlights
2Q11 Financial highlights $ in millions, excluding EPS 1 See note 1 on slide 20 2 Assumes a tax rate of 38% 3 See note 4 on slide 20 4 See note 2 on slide 20 2Q11 net income of $5.4B; EPS of $1.27; revenue of $27.4B1 2Q11 results include the following significant items: Fortress balance sheet mainta
Slide 3: 2Q11 Financial results
2Q11 Financial results1 1 See note 1 on slide 20 2 Actual numbers for all periods, not over/under 3 See note 5 on slide 20 $ in millions, excluding EPS 2 F I N A N C I A L R E S U L T S
Slide 4: Investment Bank
Investment Bank1 Net income of $2.1B on revenue of $7.3B ROE of 21% IB fees of $1.9B up 37% YoY Ranked #1 YTD in Global Investment Banking Fees Fixed Income and Equity Markets revenue of $5.5B up 20% YoY reflecting solid client revenue Credit Portfolio loss of $111mm, primarily reflecting the negati
Slide 5: Retail Financial Services
Retail Financial Services1 1 See note 1 on slide 20 2 Actual numbers for all periods, not over/under 3 Calculated based on average equity of $28B 4 Calculated based on average equity; average equity for 2Q11, 1Q11 and 2Q10 was $17.5B, $17.5B and $18.3B, respectively Key drivers $ in millions Retail
Slide 6: Retail Financial Services: Retail Banking and Mortgage Banking, Auto & Other Consumer Lending
Retail Financial Services Retail Banking and Mortgage Banking, Auto & Other Consumer Lending $ in millions Retail Banking net income of $1.1B, up 21% YoY: Total revenue of $4.6B up 5% YoY driven by higher debit card revenue, deposit-related fees and investment sales revenue Expense up 3% YoY resulti
Slide 7: Retail Financial Services Real Estate Portfolios
Retail Financial Services Real Estate Portfolios $ in millions 1 Actual numbers for all periods, not over/under 2 Excludes the impact of purchased credit-impaired loans acquired as part of the WaMu transaction. An allowance for loan losses of $4.9B, $4.9B and $2.8B was recorded for these loans as of
Slide 8: Home Lending update
Home Lending update Key statistics1 1 Excludes 2Q11 EOP home equity, prime mortgage, subprime mortgage and option ARMs purchased credit-impaired loans of $23.5B, $16.2B, $5.2B and $24.1B respectively, acquired as part of the WaMu transaction 2 Ending balances include all noncredit-impaired prime mor
Slide 9: Real Estate Portfolios
Real Estate Portfolios Total reserves of $9.7B remain for the non-credit impaired portfolio WaMu purchased credit-impaired portfolio reserves assume further HPI deterioration of 5% Incremental 5% decline in HPI would result in an additional $1.5B+/- to loan loss reserves If credit trends continue to
Slide 10: Card Services
Card Services 1 Actual numbers for all periods, not over/under. Statistics include loans held for sale 2 Calculated based on average equity; 2Q11, 1Q11 and 2Q10 average equity was $13B, $13B and $15B, respectively 3 See note 3 on slide 20 $ in millions Net income of $911mm compared with $343mm in th
Slide 11: Commercial Banking
Commercial Banking1 $ in millions 1 See note 1 on slide 20 2 Actual numbers for all periods, not over/under 3 Includes deposits and deposits swept to on-balance sheet liabilities 4 Loans held-for-sale and loans at fair value were excluded when calculating the loan loss coverage ratio and net charge-
Slide 12: Treasury & Securities Services
Treasury & Securities Services $ in millions 1 IB manages core credit exposures related to the Global Corporate Bank (GCB) on behalf of IB and TSS. Effective January 1, 2011, IB and TSS share the economics related to the Firm's GCB clients. Included within this allocation are net revenues, provision
Slide 13: Asset Management
Asset Management 1 Actual numbers for all periods, not over/under 2 Calculated based on average equity of $6.5B Net income of $439mm up 12% YoY Pretax margin of 29% Revenue of $2.5B up 23% YoY due to the effect of higher market levels, net inflows to products with higher margins, higher valuations o
Slide 14: Corporate/Private Equity
Corporate/Private Equity1 Net Income ($ in millions) Private Equity Private equity gains of $816mm (pretax) Private Equity portfolio of $8.8B (6.6% of stockholders' equity less goodwill) Corporate Noninterest expense includes $1.3B (pretax) for additional litigation reserves, predominantly for mortg
Slide 15: Fortress balance sheet
Fortress balance sheet 1 Estimated for 2Q11 2 See note 4 on slide 20 3 Represents the Firm's best estimate, based on its current understanding of proposed rules 4 See note 2 on slide 20 5 The Global Liquidity Reserve represents cash on deposit at central banks, and the cash proceeds expected to be r
Slide 16: Outlook
Outlook Retail Financial Services Card Services Corporate / Private Equity Private Equity Results will be volatile Corporate Corporate, excluding Private Equity, quarterly net income should be $300mm+/- Chase excluding WaMu and Commercial Card credit losses expected to continue to improve Chase loss
Slide 17: Appendix
16 Appendix 16 F I N A N C I A L R E S U L T S
Slide 18: Consumer credit - delinquency trends
Consumer credit - delinquency trends (Excl. purchased credit-impaired loans and WaMu and Commercial Card portfolios) Date 30+ day delinquencies 30-89 day delinquencies 30-59 day delinquency Line 5 Line 6 Line 7 Line 8 Line 9 Line 10 Line 11 Line 12 Line 13 Line 14 Line 15 Line 16 Annotations 3/1/200
Slide 19: LLR/NPLs and LLR/Total Loans
LLR/NPLs LLR/Total Loans Line 3 NPLs LLR Stack 3 Stack 4 Stack 5 Stack 6 Stack 7 Stack 8 Stack 9 Stack 10 Stack 11 Stack 12 Stack 13 Stack 14 Stack 15 Stack 16 1Q07 3.46 1907 7300 2Q07 3.56 2006 7633 3Q07 3.14 2490 8113 4Q07 2.86 3282 9234 1Q08 2.71 4401 11746 2Q08 2.54 5273 13246 3Q08 2.87 6933 190
Slide 20: IB League Tables
IB League Tables League table results Source: Dealogic 1 Global IB fees exclude money market, short term debt and shelf deals 2 Equity & Equity-related include rights offerings and Chinese A-Shares 3 Long-term Debt tables include investment grade, high yield, ABS, MBS, covered bonds, supranational,
Slide 21: 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 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 with the
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. Such statements are based upon the current beliefs and expectations of JPMorgan Chase & Co.'s management and are subject to significant risks a