Jp Morgan Chase & Co. · NYSE:JPM

Jp Morgan Chase & — Q1 2007 Earnings Presentation

17 slides from Jp Morgan Chase &'s earnings presentation, Apr 18, 2007

  1. Slide 1: Financial Results First Quarter 2007

    A P R I L 1 8, 2 0 0 7 FINANCIAL RESULTS First Quarter 2007

  2. Slide 2: 1Q07 Managed Results

    1Q07 Managed Results1 $ in millions $ O/(U) O/(U) % 1Q07 4Q06 1Q06 4Q06 1Q06 1 Revenue (FTE) $19,741 $2,707 $3,900 16% 25% 1 Credit Costs 1,601 (126) 321 (7%) 25% 2,3 Expense 10,628 743 848 8% 9% Income from Continuing Ops. $4,787 $881 $1,760 23% 58% EPS - Continuing Ops. $1.34 $0.25 $0.49 23% 58% 4

  3. Slide 3: Capital Management

    Capital Management „ Quarterly dividend increase of 12% to $0.38 per share1 „ Repurchased 80.9mm shares for $4.0B in 1Q07 „ Board authorizes $10B repurchase plan2 $ in billions 1Q07 4Q06 1Q06 3 Tangible Common Equity $65.7 $63.3 $56.4 Common Shareholders' Equity less Goodwill $72.6 $70.6 $64.4 4 Tie

  4. Slide 4: Bank of New York Conversion

    Bank of New York Conversion Successfully completed system conversion and rebranding of Bank of New York branches Conversion Statistics „ Converted 1.2 million active deposit accounts, with a total balance of $14.5B „ Converted over 119K active loan accounts, with a total loan balance of $4B „ Over 1

  5. Slide 5: Investment Bank

    Investment Bank $ in millions „ Record net income of $1.5B on record revenue of $ O/(U) $6.3B 1Q07 4Q06 1Q06 „ ROE of 30% Revenue 1,2 $6,254 $1,394 $1,426 „ Record IB fees of $1.7B up 48% YoY driven by record debt and equity underwriting and strong advisory fees Investment Banking Fees 1,729 149 559

  6. Slide 6: Retail Financial Services - Drivers

    Retail Financial Services - Drivers Key Statistics1 ($ in billions) „ Average deposits up 6% ex. BNY YoY and 1Q07 4Q06 1Q06 up 2% QoQ Origination Volumes Home equity originations „ Home equity originations up 9% YoY; $12.7 $12.9 $11.7 mortgage loan originations up 21% YoY Mortgage loan originations

  7. Slide 7: Retail Financial Services

    Retail Financial Services „ Net income of $859mm, down 2% YoY and up ($ in millions) 20% QoQ $ O/(U) „ 1Q06 results included Insurance but not BNY, and a $50mm mark-to-market loss on 1Q07 4Q06 1Q06 Auto loans transferred to held-for-sale „ 4Q06 included loss on portfolio Net Interest Income $2,617 $

  8. Slide 8: Subprime mortgage

    Subprime mortgage 30-day delinquency trend1 Key statistics Sub-prime Prime 1Q07 4Q06 1Q06 8.00% 2 EOP owned portfolio ($B) $9.0 $8.7 $15.1 6.00% EOP held-for-sale ($B) $3.7 $4.5 $0.0 4.00% 2.00% Net charge-offs ($mm) $20 $17 $9 0.00% Net charge-off rate 0.92% 0.65% 0.26% Mar- Jun- Sep- Dec- Mar- Jun

  9. Slide 9: Card Services (Managed)

    Card Services (Managed) „ Net income of $765mm down 15% YoY $ in millions „ ROE of 22%; ROO of 3.28% $ O/(U) „ Prior year included benefit related to new 1Q07 4Q06 1Q06 bankruptcy legislation „ Avg outstandings of $149B up 8% YoY and 1% Revenue $3,680 ($70) ($5) QoQ Credit Costs 1,229 (52) 213 „ Rev

  10. Slide 10: Commercial Banking

    Commercial Banking $ in millions $ O/(U) „ Record net income of $304mm up 27% YoY 1Q07 4Q06 1Q06 „ Loans up 13% YoY due to organic growth and Revenue $1,003 ($15) $103 BNY; Liability balances up 16% YoY Middle Market 661 -- 38 Mid-Corporate Banking 212 14 75 „ Revenue of $1B up 11% YoY due to increa

  11. Slide 11: Treasury & Securities Services

    Treasury & Securities Services $ in millions $ O/(U) „ Net income of $263mm flat YoY 1Q07 4Q06 1Q06 „ Pre-tax margin of 27% Revenue $1,526 ($11) $41 „ Liability balances up 18% YoY; Assets Treasury Services 689 (11) (4) under custody up 31% YoY Worldwide Securities Svcs 837 -- 45 „ Revenue up 3% YoY

  12. Slide 12: Asset Management

    Asset Management $ in millions $ O/(U) „ Record net income of $425mm up 36% YoY 1Q07 4Q06 1Q06 „ Pre-tax margin of 36% Revenue $1,904 ($43) $320 „ Revenue of $1.9B up 20% YoY with Credit Costs (9) (23) (2) double-digit growth across Private Bank, Expense 1,235 (49) 137 Institutional and Retail clien

  13. Slide 13: Corporate

    Corporate Total Corporate ($ in millions) Private Equity ($ in millions) $ O/(U) $ O/(U) 1Q07 4Q06 1Q06 1Q07 4Q06 1Q06 Net Income $631 ($530) $997 Net Income $698 $562 $595 1 Net Income ex. Disc. Ops 631 90 1,051 2 Private equity gains ex-SFAS 157 814 527 577 Private Equity 698 562 595 SFAS 157 valu

  14. Slide 14: Appendix

    APPENDIX 14 JPMorganChase ©

  15. Slide 15: Accounting developments

    Accounting developments Transition impact 1Q07 Accounting items P&L impact Equity impact „ SFAS 157 – Fair value measurements „ EITF 02-3 nullification $287mm after-tax „ Firm’s nonperformance risk (IB) $166mm pre-tax „ Private equity (Corporate) $464mm pre-tax „ SFAS 159 – Fair value option $199mm

  16. Slide 16: Notes on non-GAAP financial measures

    Notes on non-GAAP financial measures This presentation includes non-GAAP financial measures. 1. TCE as used on slide 2 for purposes of a return on tangible common equity and presented as Tangible Common Equity on slide 3 (line 1) is defined as common stockholders’ equity less identifiable intangible

  17. Slide 17: Disclaimer

    Disclaimer 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’s management and are subject to significant risks and uncertainties. Actu

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