Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Investor Presentation (June 2009)
15 slides from Jp Morgan Chase &'s investor presentation, Jun 2, 2009
Slide 1: JPMorgan Chase & Co. – June 1, 2009
Exhibit 99.2 JPMorgan Chase & Co. has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents JPMorgan Chase & Co. has filed with th
Slide 2: Equity offering overview
Equity offering overview Key terms of the equity offering Issuer: JPMorgan Chase & Co. Ticker / Listing: JPM / NYSE Offering size: $5.0 billion of common stock Overallotment option: 15% Share composition: 100% primary shares Stock price (as of May 29, 2009): $36.90 Shares outstanding — pre-offer (as
Slide 3: Rationale for equity issuance
Rationale for equity issuance JPM is raising $5B in common equity to satisfy a supervisory condition for redemption of all preferred capital issued to the U.S. Treasury under the Troubled Asset Relief Program (TARP) We believe all other requirements for repayment have been met JPM will fully redeem
Slide 4: JPM capital position remains strong
JPM capital position remains strong JPM actual and anticipated capital position ($ in billions) Actual Anticipated 1 As of 3/31/09 as of 6/30/09 Tier 1 Capital (ex. TARP) $112 $118 Tier 1 Common Capital 88 93 Tier 1 Ratio (ex. TARP) 9.3 % 9.3 % Tier 1 Common Ratio 7.3 7.3 Following the capital raise
Slide 5: 2Q09 outlook
2Q09 outlook Current outlook remains the same as most recent guidance issued on May 27, 2009 (see Appendix), key highlights include: Credit costs will remain high across all lending businesses (IB, RFS, Card, CB); quarterly loss outlooks for RFS and Card (Chase and WaMu) loan portfolios remain uncha
Slide 6: Agenda
JPNORGAN CHASE & CO. Agenda Page Appendix 5 5 JPMOoOrRGAN CHASE & Co.
Slide 7: Earnings power of franchise and fortress balance sheet position JPM well for the future
Earnings power of franchise and fortress balance sheet position JPM well for the future Each standalone business has a top 1, 2, or 3 position Excellent Leadership positions — very difficult to replicate Franchises Significant market share and efficiency gains in each business Continued investment a
Slide 8: The firm's world-class franchises are market leaders
The firm’s world-class franchises are market leaders Investment Bank Retail Financial Services Card Services Continue to rank #1 in two capital #3 in deposit market share #1 U.S. Credit Card Issuer (by raising league tables for 1Q09 YTD outstandings) #3 in branch network per Thomson Reuters #1 in Au
Slide 9: Consistently investing in revenue growth
Consistently investing in revenue growth Good underlying momentum in core business drivers propelling organic growth across businesses Growth drivers - % change YoY 1Q09 4Q08 3Q08 2Q08 1Q08 Retail Financial Services Retail Banking Average Deposits 62% 63% 2% 3% 4% # of ATMs 53% 59% 61% 8% 8% # of Br
Slide 10: 1Q09 Managed results
1Q09 Managed results $ in millions $ O/(U) 1Q09 4Q08 1Q08 Results excl. Merger-related items 2 1 Revenue (FTE) $27,062 $7,740 $9,164 Credit Costs1 10,060 1,477 4,955 Expense 13,136 2,129 4,205 Merger-related items 2 (after-tax) (234) (1,298) (234) Reported Net Income $2,141 $1,439 ($232) Reported EP
Slide 11: 1Q09 Managed line of business results
1Q09 Managed line of business results $ in millions $ O/(U) 1Q09 4Q08 1Q08 Investment Bank $1,606 $3,970 $1,693 Retail Financial Services 474 (150) 785 Card Services (547) (176) (1,156) Commercial Banking 338 (142) 46 Treasury & Securities Services 308 (225) (95) Asset Management 224 (31) (132) Corp
Slide 12: Fortress balance sheet
Fortress balance sheet Tier 1 Capital ex. TARP ($ in billions) Tier 1 Common ($ in billions) Tier 1 Capital ex. TARP Tier 1 Ratio ex. TARP Tier 1 Common Capital Tier 1 Common Ratio $120 $112 $111 $112 10.0% $100 8.0% $88 $99 $86 $87 7.1% $90 6.9% $90 9.3% 9.0% $75 7.0% 7.3% 9.2% $77 7.0% 8.9% 8.9% $
Slide 13: JPM remains committed to safe and sound lending
JPM remains committed to safe and sound lending Lending update JPM extended more than $150B in new loans and lines to retail and wholesale clients during 1Q09, including: $62B in consumer and small business originations. JPM extended over 4.5mm new loans and lines to consumers and small businesses –
Slide 14: Outlook
Outlook Investment Bank Treasury & Securities Services Trading can be volatile; DVA expected to be negative Revenue of $2.0B +/- for next couple of quarters driven by Uncertain environment, risks still remain lower assets under custody and lower liability balances and Credit costs expected to remain
Slide 15: Notes on non-GAAP financial measures and forward-looking statements
Notes on non-GAAP financial measures and forward-looking statements This presentation includes non-GAAP financial measures 1. Tangible Common Equity ("TCE") is calculated, for all purposes, as common stockholders equity (i.e., total stockholders' equity less preferred stock) less identifiable intang
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