Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q2 2014 Earnings Presentation
22 slides from Jp Morgan Chase &'s earnings presentation, Jul 15, 2014
Slide 1: Financial Results 2Q14
FINANCIAL RESULTS 2Q14 July 15, 2014
Slide 2: 2Q14 Financial highlights
2Q14 Financial highlights 2Q14 net income of $6.0B and EPS of $1.46 Revenue of $25.3B1, adjusted expense of $14.8B2 and ROTCE of 14%3 Fortress balance sheet Basel III Advanced Fully Phased-In Common Equity Tier 1 (“CET1”) of $161B4; ratio of 9.8%4 Firm Supplementary Leverage Ratio (“SLR”)
Slide 3: 2Q14 Financial results
2Q14 Financial results1 $mm, excluding EPS $ O/(U) 2Q14 1Q14 2Q13 Revenue (FTE)1 $25,349 $1,486 ($609) Credit costs 692 (158) 645 Expense 15,431 795 (435) Reported net income/(loss) $5,985 $711 ($511) Net income/(loss) applicable to common stockholders 5,573 675 (528) Reported EPS 1.46 0.18 (0.14) 2
Slide 4: Fortress balance sheet and returns
Fortress balance sheet and returns1 $B, except where noted 2Q14 1Q14 2Q13 Basel III Advanced Fully Phased-In2 2Q14 Basel III CET1 Advanced $161 $156 $148 Transitional of CET1 ratio 9.8% 9.8% 9.6% 9.3% Risk-weighted assets $1,640 $1,637 $1,587 Firm SLR3 5.4% 5.1% NA Bank SLR3 5.6 5.3 NA HQLA4 $576 $5
Slide 5: Consumer & Community Banking
Consumer & Community Banking1 $mm Leadership positions $ O/(U) Consumer & Business Banking 2Q14 1Q14 2Q13 Deposit growth is among the highest in the industry5 Net interest income $6,963 ($63) ($131) Record client investment assets of $205B Noninterest revenue 4,468 1,034 (453) #1 in customer s
Slide 6: Consumer & Community Banking: Consumer & Business Banking
Consumer & Community Banking Consumer & Business Banking $mm Financial performance $ O/(U) Net income of $894mm, up 28% YoY and 21% QoQ 2Q14 1Q14 2Q13 Net revenue of $4.6B, up 7% YoY and 5% QoQ Net interest income $2,770 $62 $156 Expense approximately flat YoY and down 1% QoQ Noninterest reven
Slide 7: Consumer & Community Banking: Mortgage Banking
Consumer & Community Banking Mortgage Banking $mm Financial performance $ O/(U) Mortgage Production pretax income of $63mm, down $519mm 2Q14 1Q14 2Q13 YoY Mortgage Production Production-related revenue, excl. repurchase (losses)/benefits $339 $47 ($947) Revenue, excluding repurchase, 74% lower Y
Slide 8: Consumer & Community Banking: Card, Merchant Services & Auto
Consumer & Community Banking Card, Merchant Services & Auto $mm Financial performance $ O/(U) Net income of $840mm, down 33% YoY 2Q14 1Q14 2Q13 Net income, excluding the reduction in the allowance for Revenue $4,553 $42 ($117) loan losses3, down 11% YoY Expense 2,124 155 136 Revenue of $4.6B,
Slide 9: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Pro forma results ($mm)9 $ O/(U) $ O/(U) 2Q14 1Q14 2Q13 2Q14 1Q14 2Q13 Corporate & Investment Bank revenue $8,991 $385 ($885) Corporate & Investment Bank revenue $8,991 $385 ($530) Investment banking fees 1,773 329 56 Total Banking 3,082 345 (59) Treasury Services 1,
Slide 10: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Net income of $658mm, up 6% YoY and 14% QoQ 2Q14 1Q14 2Q13 Revenue $1,701 $50 ($27) Revenue of $1.7B, down 2% YoY and up 3% QoQ Middle Market Banking 709 11 (68) Corporate Client Banking 477 31 33 Expense of $675mm, up 4% YoY, largely refle
Slide 11: Asset Management
Asset Management1 $mm Financial performance $ O/(U) Net income of $552mm, up 10% YoY and 25% QoQ 2Q14 1Q14 2Q13 Revenue $2,956 $178 $231 Revenue of $3.0B, up 8% YoY and 6% QoQ Private Banking 1,556 47 77 Institutional 571 71 3 Expense of $2.1B, up 9% YoY and down 1% QoQ, Retail 829 60 151 prim
Slide 12: Corporate/Private Equity
Corporate/Private Equity1 $mm Financial performance $ O/(U) Private Equity 2Q14 1Q14 2Q13 Private Equity net income of $7mm Private Equity $7 ($208) ($205) Private Equity portfolio of $5.8B Treasury and CIO (46) 48 383 Treasury and CIO Other Corporate 408 189 743 Treasury and CIO net loss of $
Slide 13: Outlook
Outlook Selected outlook items ($mm, unless otherwise noted) 2Q14 FY2013 LOB Line item Actual Actual Current management outlook Firmwide adjusted expense ($B) 1 $14.8 $59.0 Expect $58B+/- adjusted expense for FY14; final firmwide expense will be affected by performance-related compensation for FY1
Slide 14: Agenda
Agenda Page Appendix 13 FINANCIAL RESULTS 13
Slide 15: Core net interest margin
Core net interest margin1 Net interest income trend Core NII Market-based NII Core NIM Market-based NIM JPM NIM 3.67% 3.29% 2.97% 2.83% 2.60% 2.60% 2.64% 2.66% 2.64% 3.06% 2.74% 2.48% 2.37% 2.20% 2.18% 2.20% 2.20% 2.19% 1.51% 1.41% 1.16% 1.14% 1.05% 0.89% 0.86% 0.84% 0.82% FY2010 2 FY20112 FY20122 1
Slide 16: Consumer credit – Delinquency trends
Consumer credit – Delinquency trends1 Home equity delinquency trend ($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) 2Q14 1Q14 2Q13 2Q13 Real Estate Portfolios (NCI) Net charge-offs $111 $174 $288 ($177) NCO rate 0.38% 0.61% 1.00% (62) bps Allowance for loan losses $2,368 $2,368 $3,268 ($900)
Slide 18: Firmwide – Coverage ratios
Firmwide – Coverage ratios $mm 5.00% Loan loss reserve/Total loans1 Loan loss reserve Nonperforming retained loans Loan loss reserve/NPLs1 500% 4.00% 400% 3.00% 23,791 22,824 300% 21,936 20,780 19,384 17,571 2.00% 16,264 15,847 200% 15,326 1.00% 100% 9,874 11,124 10,609 10,296 9,578 9,027 8,317 8,12
Slide 19: Corporate & Investment Bank – Key metrics & leadership positions
Corporate & Investment Bank – Key metrics & leadership positions Corporate & Investment Bank Comments Corporate & Investment Bank ($B) LTM1 FY2013 FY2012 FY2011 50% of revenue is international for LTM 2Q14 International revenue $15.9 $16.5 $16.3 $17.1 International deposits increased 27% from FY
Slide 20: IB League Tables
IB League Tables League table results – wallet share League table results – volumes 1H14 FY2013 1H14 FY2013 Rank Share Rank Share Rank Share Rank Share 1 6 Based on fees : Based on volumes : Global Debt, Equity & Equity-related 1 7.4% 1 8.3% Global Debt, Equity & Equity-related 1 6.8% 1 7.3% US Debt
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