Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Investor Day (2022)
22 slides from Jp Morgan Chase &'s investor day presentation, 2022
Slide 1: Investor Day 2022 Asset & Wealth Management
INVESTOR DAY | 2022 ASSET & WEALTH MANAGEMENT FIRM OVERVIEW GLOBAL TECHNOLOGY CONSUMER & COMMUNITY BANKIN G INTERNATIONAL CONSUMER GROWTH INITIATIVES CORPORATE & INVESTMENT BANK COMMERCIAL BANKING JPMORGAN CHASE & Co. PD ASSET & WEALTH MANAGEMENT
Slide 2: Asset & Wealth Management
Asset & Wealth Management Who we are ◼ Broad, diversified platform: $4.3T AUS split roughly evenly across AM and GPB, spanning all asset classes and regions ◼ Long-term fiduciary mindset: Proud stewards of >100-year client relationships and >100-year track records ◼ Reliable growth engine: Revenue a
Slide 3: Consistent growth for JPMC
Consistent growth for JPMC GPB AM Increase YoY Decrease YoY Revenue1 ($B) 10-year average 17.0 10Y CAGR 13.2 13.4 13.6 14.2 11.5 12.2 12.3 12.2 Total: 6% Recurring revenue1 9.7 10.0 GPB: 7% AM: 5% 73% 2021: 75% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Pretax income1 ($B) Pretax margin1
Slide 4: Growth: AM and GPB business metrics
Since our last Investor Day Record Growth: AM and GPB business metrics End of period, $B, unless noted Asset Management Global Private Bank1 10Y 10Y 2011 2019 2021 Growth 2011 2019 2021 Growth Robust ◼ Revenue2 $5.6 $7.3 $9.2 1.6x ◼ Revenue2 $4.1 $6.3 $7.7 1.9x financials ◼ Pretax income $1.4 $1.9 $
Slide 5: AWM growth drivers for the next decade
Since our last Investor Day AWM growth drivers for the next decade Wealth Management Asset Management Asset & Wealth Management 1 2 3 4 5 Expanding Powering Scaling Building Executing Global Private Bank U.S. Wealth Management Asset Management Alternatives M&A ◼ Grow globally, through step- ◼ Delive
Slide 6: Expenses increased due to higher revenue and accelerated investments
Growth Investments Expenses increased due to higher revenue and accelerated investments Total AWM adjusted expense ($B)1,2 Breakdown of expense Investments 11.9 Investments 0.5 0.1 ◼ 1 Hiring advisors (0.3) 10.8 0.5 1.0 ◼ 2 Scaling Asset Management 9.7 0.4 ◼ 3 Building Alternatives ◼ 4 Tech enableme
Slide 7: Key investment #1: Hiring advisors
Growth Investments Key investment #1: Hiring advisors Step-change in hiring Best-in-class training Meaningful contribution Number of GPB client advisor joiners1 Training hours per GPB new hire GPB client asset flows from new hires ($)1 +1.8x +3.3x +2.4x Int’l. Skills training U.S. Orientation 2016-2
Slide 8: Key investment #2: Scaling Asset Management
Growth Investments Key investment #2: Scaling Asset Management JPM Benchmark / Public Market Index Liquidity Fixed Income U.S. Equity Emerging Markets Equity Ultra-Short Income ETF (JPST) Income Fund (JMSIX) Equity Premium Income ETF (JEPI) China A-Share Opportunities Launched 2017 Launched 2014 Lau
Slide 9: Key investment #3: Building Alternatives
Growth Investments Key investment #3: Building Alternatives Growing platform Scaling Investing and innovating AWM client assets, $B1,2 AM Infrastructure GPB Alternatives JPM Public Market Index JPM Public Market Equivalent (MSCI ACWI) +1.3x Investment performance (3/31/22)3 Developed Markets Private
Slide 10: Key investment #4: Tech enablement / efficiencies
Growth Investments Key investment #4: Tech enablement / efficiencies Tech expense More agile and faster delivery U.S. PB account opening Expense ($B)1 % Apps on Cloud Delivery time Accounts opened Time to open Expense as % of revenue 80% Legend 60% Customer and +4% CAGR client experiences 1.1 1.0 +2
Slide 11: Key investment #5: Executing M&A
Growth Investments Key investment #5: Executing M&A M&A focus areas we outlined at 2020 Investor Day Key High growth Strengthen Theme Firm Overview product sets regions / channels digital offerings Recent updates ✓ ✓ ✓ Delivers tax-smart investment strategies at scale ◼ Tripled assets since acquisit
Slide 12: Global Shares will provide new opportunities to grow our client base across LOBs
Growth Investments will provide new opportunities to grow our client base across LOBs Cloud-based provider of share plan software to corporates worldwide, featuring employee ownership solutions that cover the entire company lifecycle from seed stage private companies to public corporates Accelerate
Slide 13: Power of being part of JPMC
Formula for continued growth Power of being part of JPMC Data Investments Advantages of being part of JPMC Analytics for CWM Cross-LOB partnership Banking Branches Cybersecurity ◼ 100% investments through AWM Significant resources to protect Cards chase.com ◼ ~50% PB clients visit branch CCB against
Slide 14: Our formula for continued growth
Formula for continued growth Our formula for continued growth Record Investment performance New talent New clients Flows % 10Y JPMAM LT MF AUM > peer median1 AWM front office joiners GPB net new clients JPMC total client asset flows ($B)2 2,500+ Record 448 Total JPMAM 86% 2.0x 1.3x 2.3x Equity 93% 1
Slide 15: Power of a broad, diversified platform
Formula for continued growth Power of a broad, diversified platform 5Y Total Client Asset Flows ($B) Publicly traded peers only 448 JPMC Total Client #1 BLK2 $1,850 339 Asset Flows ($B)1 (LT AUM + Liquidity + AUS + #2 JPMC1 $1,174 U.S. WM AUS + CPC Deposits) 192 127 101 71 89 87 94 #3 MS3 $1,120 Leg
Slide 16: How we measure against our targets
How we measure against our targets LT AUM Revenue Pretax flows growth margin ROE 3- to 5-year 4% 5% 25%+ 25%+ targets (+/-) 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 – 2021 results range1 7% 5% 8% 1% 5% 19% 28% 28% 37% 26% 28% 33% Meeting target ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 15 Note
Slide 17: Agenda
Agenda Page 1 Notes 16 JPMorGAN CHASE & Co,
Slide 18: Notes on slides 1-3
Notes on slides 1-3 Slide 1 – Asset & Wealth Management 1. All quartile rankings, the assigned peer categories and the asset values are sourced from the fund ranking providers. Quartile rankings are based on the net-of-fee absolute return of each fund. The data providers re-denominate the asset valu
Slide 19: Notes on slides 5-7
Notes on slides 5-7 Slide 5 – Expenses increased due to higher revenue and accelerated investments 1. In the fourth quarter of 2020, the firm realigned certain Wealth Management clients from Asset & Wealth Management to Consumer & Community Banking. Prior-period amounts have been revised to conform
Slide 20: Notes on slides 8-9
Notes on slides 8-9 Slide 8 – Key investment #3: Building Alternatives 1. In the fourth quarter of 2020, the firm realigned certain Wealth Management clients from Asset & Wealth Management to Consumer & Community Banking. Prior-period amounts have been revised to conform with the current presentatio
Slide 21: Notes on slides 10-13
Notes on slides 10-13 Slide 10 – Key investment #5: Executing M&A 1. As of April 2022 2. As of December 2021 3. Carbon footprint measures based on 2020 activity. Car footprint based on average annual passenger vehicle emissions sourced from U.S. Environmental Protection Agency 4. As of March 2022 Sl
Slide 22: Notes on slides 14-15
Notes on slides 14-15 Slide 14 – Power of a broad, diversified platform 1. Includes Asset & Wealth Management client assets, U.S. Wealth Management investments and new-to-firm Chase Private Client deposits. In the fourth quarter of 2020, the firm realigned certain Wealth Management clients from Asse