Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q1 2013 Earnings Presentation
23 slides from Jp Morgan Chase &'s earnings presentation, Apr 12, 2013
Slide 1: Financial Results 1Q13
FINANCIAL RESULTS 1Q13 April 12, 2013
Slide 2: 1Q13 Financial highlights
1Q13 Financial highlights Record 1Q13 net income of $6.5B; record EPS of $1.59; revenue of $25.8B1 Strong performance across all businesses 1Q13 results included the following significant items $mm, excluding EPS Pretax Net income2 EPS2 Real Estate Portfolios – Benefit from reduced mortgage lo
Slide 3: 1Q13 Financial results
1Q13 Financial results1 $mm, excluding EPS $ O/(U) 1Q13 4Q12 1Q12 Revenue (FTE)1 $25,848 $1,470 ($909) Credit costs 617 (39) (109) Expense 15,423 (624) (2,922) Reported net income $6,529 $837 $1,605 Net income applicable to common stock $6,131 $809 $1,554 Reported EPS $1.59 $0.20 $0.40 ROE2 13% 11%
Slide 4: Fortress balance sheet and returns
Fortress balance sheet and returns $B, except where noted 1Q13 4Q12 1Q12 Basel I Tier 1 common capital1,2 $143 $140 $128 Basel I Risk-weighted assets 2 1,408 1,270 1,300 B1T1C (w/ B2.5) of Basel I Tier 1 common ratio 1,2 10.2% 11.0% 9.8% 9.9% in 4Q12 Basel III Tier 1 common capital2 $146 $144 ― ― ~+
Slide 5: Consumer & Community Banking
Consumer & Community Banking1 $mm Leadership positions $ O/(U) Consumer & Business Banking 1Q13 4Q12 1Q12 #1 ATM network4 Net interest income $7,209 ($58) ($179) #2 in branches4 Noninterest revenue 4,406 (705) (569) Revenue $11,615 ($763) ($748) #1 most visited banking portal – Chase.com5 Expe
Slide 6: Consumer & Community Banking: Consumer & Business Banking
Consumer & Community Banking Consumer & Business Banking $mm Financial performance $ O/(U) Consumer & Business Banking net income of $641mm, 1Q13 4Q12 1Q12 down 17% YoY Net interest income $2,572 ($61) ($103) Net revenue of $4.2B, down 2% from the prior year Noninterest revenue 1,605 (42) 20 Rev
Slide 7: Consumer & Community Banking: Mortgage Banking
Consumer & Community Banking Mortgage Banking $mm Financial performance $ O/(U) Mortgage Production pretax income of $427mm, down 1Q13 4Q12 1Q12 $317mm YoY, reflecting lower margins and higher Mortgage Production expenses, partially offset by higher volumes and lower Production-related revenue, ex
Slide 8: Consumer & Community Banking: Card, Merchant Services & Auto
Consumer & Community Banking Card, Merchant Services & Auto $mm Financial performance $ O/(U) Net income of $1.3B, up 8% YoY 1Q13 4Q12 1Q12 Net income, excluding the reduction in the allowance for Revenue $4,720 ($88) $6 loan losses4, up 33% YoY Expense 1,943 (228) (86) Revenue of $4.7B, flat
Slide 9: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $2.6B on revenue of $10.1B 1Q13 4Q12 1Q12 DVA gain of $126mm Corporate & Investment Bank revenue $10,140 $2,498 $802 ROE of 19%; 18% excl. DVA Investment banking fees 1,433 (287) 58 Treasury Services 1,044 (15) (8)
Slide 10: Corporate & Investment Bank – Key metrics & leadership positions
Corporate & Investment Bank – Key metrics & leadership positions Corporate & Investment Bank Comments ($B) 1Q13 FY2012 FY2011 FY2010 Corporate & Investment Bank International revenue $4.9 $16.3 $17.1 $15.7 49% of revenue is international for 1Q13, up from 47% for FY2012 International deposits (Avg
Slide 11: Commercial Banking
Commercial Banking1 $mm Net income of $596mm, flat YoY $ O/(U) Revenue of $1.7B, flat compared with prior year 1Q13 4Q12 1Q12 EOP loan balances up 13% YoY6; Middle Market loans up Revenue $1,673 ($72) $16 2 14% YoY6 Middle Market Banking 753 1 22 Corporate Client Banking 2 433 (59) 2 Average
Slide 12: Asset Management
Asset Management1 $mm Net income of $487mm, up 26% YoY $ O/(U) Revenue of $2.7B, up 12% YoY 1Q13 4Q12 1Q12 Revenue $2,653 ($100) $283 Record AUM of $1.5T, up 7% YoY Private Banking 1,446 5 167 Institutional 589 (140) 32 AUM net inflows for the quarter of $28B, driven by Retail 618 35 84 reco
Slide 13: Corporate/Private Equity
Corporate/Private Equity1 $mm Private Equity Private Equity net loss of $182mm, primarily due to net $ O/(U) valuation losses on private investments 1Q13 4Q12 1Q12 Private Equity portfolio of $7.7B Private Equity ($182) ($232) ($316) Treasury and CIO Treasury and CIO 24 181 251 Treasury and CI
Slide 14: Core net interest margin
Core net interest margin1 Net interest income trend Core NII Market-based NII Core NIM Market-based NIM JPM NIM 3.91% 3.67% 3.54% 3.33% 3.19% 3.14% 3.10% 3.00% 2.92% 2.85% 2.83% 3.42% 3.06% 2.89% 2.72% 2.66% 2.70% 2.61% 2.47% 2.43% 2.40% 2.37% 1.92% 1.51% 1.43% 1.45% 1.42% 1.35% 1.29% 1.07% 1.11% 1.
Slide 15: Outlook
Outlook NIM & NII Consumer & Community Banking Expect the Firm's NII to be down ~1% for full-year 2013, Mortgage Banking as modest spread compression is expected to be offset by Total quarterly net charge-offs likely to be at or below balance growth $400mm $200mm +/- decrease in Consumer & B
Slide 16: Agenda
Agenda Page Appendix 15 FINANCIAL RESULTS 15
Slide 17: Peripheral European exposure
Peripheral European exposure1 As of March 31, 2013 ($B) Securities and trading AFS Derivative Portfolio Net Lending securities Trading collateral hedging exposure Spain $3.2 $0.4 $3.3 ($3.2) ($0.3) $3.4 Sovereign 0.0 0.4 (1.0) 0.0 (0.1) (0.7) Non-sovereign 3.2 0.0 4.3 (3.2) (0.2) 4.1 Italy $3.4 $0.0
Slide 18: Consumer credit – Delinquency trends
Consumer credit – Delinquency trends1 Home Equity delinquency trend ($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 $0 Jun-09
Slide 19: Real Estate Portfolios and Card Services – Coverage ratios
Real Estate Portfolios and Card Services – Coverage ratios Real Estate Portfolios and Card Services credit data ($mm) O/(U) Adjusted 1Q13 4Q121 1Q12 1Q12 Real Estate Portfolios (NCI): Net charge-offs ($) $448 $520 $808 ($360) NCO rate (%) 1.56% 1.74% 2.49% (93)bps Allowance for loan losses ($) $4,21
Slide 20: Firmwide – Coverage ratios
Firmwide – Coverage ratios $mm 6.00% Loan loss reserve/Total loans1 Loan loss reserve Nonperforming loans Loan loss reserve/NPLs1 600% 5.00% 500% 4.00% 400% 29,750 28,520 28,350 3.00% 27,609 25,871 300% 23,791 22,824 2.00% 21,936 200% 20,780 1.00% 13,441 11,928 100% 11,005 10,605 10,068 11,370 10,72
Slide 21: IB League Tables
IB League Tables League table results 1Q13 FY12 For 1Q13, JPM ranked: Rank Share Rank Share #1 in Global IB fees Based on fees: #1 in Global Debt, Equity & Equity-related Global IB fees1 1 8.0% 1 7.5% #1 in Global Long-term Debt Based on volumes: #6 in Global Equity & Equity-related5 Globa
Slide 22: 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 wi
Slide 23: 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