Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q3 2016 Earnings Presentation
19 slides from Jp Morgan Chase &'s earnings presentation, Oct 14, 2016
Slide 1: Financial Results 3Q16
F I N AN C I A L R E S U LT S 3Q16 October 14, 2016
Slide 2: 3Q16 Financial highlights
3Q16 Financial highlights ROTCE1 Common equity Tier 12 Net payout LTM3 13% 11.9% 63% 3Q16 net income of $6.3B and EPS of $1.58 Managed revenue of $25.5B4 Adjusted expense of $14.5B5 and adjusted overhead ratio of 57%5 Fortress balance sheet Average core loans6 up 15% YoY and 2% QoQ Basel
Slide 3: 3Q16 Financial results
3Q16 Financial results1 $B, excluding EPS $ O/(U) 3Q16 2Q16 3Q15 Net interest income $11.9 $0.3 $0.7 Noninterest revenue 13.6 – 1.3 Managed revenue 1 25.5 0.3 2.0 Expense 14.5 0.8 (0.9) Change in reserves Credit costs 1.3 (0.1) 0.6 3Q16: $150mm build 3Q15: $(281)mm release Reported net income $6.3 $
Slide 4: Fortress balance sheet and returns
Fortress balance sheet and returns $B, except per share data 3Q16 2Q16 3Q15 Basel III Advanced Fully Phased-In1 CET1 3Q16 Basel III $181 $179 $172 Standardized Fully CET1 ratio Phased-In of 12.1%1 11.9% 11.9% 11.4% Tier 1 capital $207 $205 $198 Tier 1 capital ratio 13.6% 13.6% 13.1% Total capital $2
Slide 5: Consumer & Community Banking
Consumer & Community Banking1 $mm Financial performance $ O/(U) Net income of $2.2B, down 16% YoY 3Q16 2Q16 3Q15 Revenue of $11.3B, up 4% YoY, driven by NII on higher Revenue $11,328 ($123) $449 Consumer & Business Banking 4,719 103 164 volumes and Auto operating lease income, partially offset b
Slide 6: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $2.9B on revenue of $9.5B 3Q16 2Q16 3Q15 ROE of 17% Corporate & Investment Bank revenue $9,455 $290 $1,287 Investment banking revenue 1,740 248 210 Banking revenue Treasury Services 917 25 18 IB revenue of $1.7B, up
Slide 7: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Record net income of $778mm, up 50% YoY and 12% QoQ 3Q16 2Q16 3Q15 Revenue 2 $1,870 $53 $226 Revenue of $1.9B, up 14% YoY and 3% QoQ Middle Market Banking 716 18 48 Gross IB Revenue of $600mm, up 57% YoY Corporate Client Banking 612 13 128
Slide 8: Asset Management
Asset Management1 $mm Financial performance $ O/(U) Net income of $557mm, up 17% YoY and up 7% QoQ 3Q16 2Q16 3Q15 Revenue $3,047 $108 $153 Revenue of $3.0B, up 5% YoY and up 4% QoQ Global Investment Management 1,497 73 14 Expense of $2.1B, up 1% YoY and up 2% QoQ Global Wealth Management 1,550
Slide 9: Corporate
Corporate1 $mm Financial performance $ O/(U) Treasury and CIO 3Q16 2Q16 3Q15 Net loss of $208mm, compared to a net loss of $199mm in 2Q16 Treasury and CIO ($208) ($9) ($168) Other Corporate Other Corporate 43 10 (1,714) Net income of $43mm Net income/(loss) ($165) $1 ($1,882) Prior year result
Slide 10: Outlook
Outlook Firmwide Corporate & Investment Bank Expect 4Q16 net interest income to be up modestly QoQ Expect 4Q16 Securities Services revenue to be on continued strength in loan growth ~$875mm, market dependent Expect 2016 adjusted expense to be ~$56B with 4Q16 adjusted expense approximately flat
Slide 11: Appendix
Agenda Page Appendix 10 FINANCIAL RESULTS
Slide 12: Select leadership positions
Select leadership positions Consumer & Community Banking Corporate & Investment Bank Consumer & Business Banking League table results – wallet share YTD16 FY2015 Deposit volume growing at more than twice the industry Rank Share Rank Share growth rate1 7 Based on fees : Largest active mobile cust
Slide 13: Consumer credit – Delinquency trends
Consumer credit – Delinquency trends1 Home equity delinquency trend ($mm) Residential mortgage delinquency trend ($mm)2 $2,500 $4,000 30 – 149 day delinquencies 30 – 149 day delinquencies 150+ day delinquencies $3,500 150+ day delinquencies $2,000 $3,000 $1,500 $2,500 $2,000 $1,000 $1,500 $1,000 $50
Slide 14: Mortgage Banking and Card Services – Coverage ratios
Mortgage Banking and Card Services – Coverage ratios1 Mortgage Banking and Card Services credit data ($mm) O/(U) 3Q16 2Q16 3Q15 3Q15 Mortgage Banking (NCI) Net charge-offs $49 $38 $41 $8 NCO rate 0.10% 0.08% 0.10% – bps Allowance for loan losses $1,488 $1,488 $1,588 ($100) 2 ALL/annualized NCOs 759%
Slide 15: Firmwide – Coverage ratios
Firmwide – Coverage ratios1 $mm $mm 3.00% Loan loss reserve/Total loans1 Loan loss reserve Nonperforming retained Loan loss reserve/NPLs1 400% loans 300% 2.00% 200% 1.00% 14,889 14,185 14,065 13,915 13,466 13,994 14,227 14,204 100% 13,555 7,241 7,017 6,921 6,645 6,616 6,303 7,367 7,178 7,059 0.00% 0
Slide 16: Notes on non-GAAP financial measures
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, including the overhead ratio, and the results of the lines of business on a “managed” basis, which are non-GAAP financial measures. The Firm’s definit
Slide 17: Additional Notes
Notes Additional Notes on slide 4 – Consumer & Community Banking 2. Actual numbers for all periods, not over/(under) 3. Includes predominantly Business Banking loans as well as deposit overdrafts 4. Firmwide mortgage origination volume was $30.9B, $28.6B and $32.2B, for 3Q16, 2Q16 and 3Q15, respecti
Slide 18: Notes on slide – Select leadership positions
Notes Notes on slide 10 – Select leadership positions 1. Based on FDIC 2016 Summary of Deposits survey per SNL Financial – excludes branches with greater than $500mm of deposits or identified as non-retail 2. Based on disclosures by peers as of 2Q16 3. Based on Inside Mortgage Finance as of 2Q16 for
Slide 19: 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