Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q4 2017 Earnings Presentation
16 slides from Jp Morgan Chase &'s earnings presentation, Jan 12, 2018
Slide 1: Financial Results 4Q17
F I N AN C I A L R E S U LT S 4Q17 January 12, 2018
Slide 2: 4Q17 Financial highlights
Reported 4Q17 Financial highlights Excluding significant items1 ROTCE2 Common equity Tier 13 Net payout LTM4 8% 12.1% 98% ROTCE2 Common equity Tier 13 Net payout LTM4 13% 12.4% 90% 4Q17 net income of $4.2B and EPS of $1.07; net income of $6.7B and EPS of $1.76 excluding the impact of significant i
Slide 3: Tax Cuts and Jobs Act – impact to JPM financials
Tax Cuts and Jobs Act – impact to JPM financials Impact to 4Q17 results1 ($B) CIB CB Corporate Firmwide Revenue ($0.3) $0.1 $– ($0.1) Managed Deemed repatriation: ($3.7)B Tax expense/(benefit) (0.4) – 2.7 2.3 results2 Deferred tax revaluation: $2.1B Net income $0.1 $0.1 ($2.7) ($2.4) Other4: ($0.8)B
Slide 4: 4Q17 Financial results
4Q17 Financial results1 $B, excluding EPS $ O/(U) 4Q17 3Q17 4Q16 Net interest income $13.4 $0.2 $1.3 Noninterest revenue 12.1 (1.0) (0.2) Managed revenue 1 $B 4Q17 3Q17 4Q16 25.5 (0.8) 1.1 Net charge-offs $1.3 $1.3 $1.3 Expense Reserve build/(release) – 0.2 (0.4) 14.6 0.3 0.8 Credit costs $1.3 $1.5
Slide 5: FY17 Financial results
FY17 Financial results1 $B, excluding EPS $ O/(U) FY2017 FY2016 FY2016 Net interest income $51.4 $47.3 $4.1 Noninterest revenue 52.2 51.9 0.4 1 Managed revenue 103.6 99.1 4.5 Included contribution to the Expense Foundation of $350mm 58.4 55.8 2.7 Credit costs 5.3 5.4 (0.1) Reported net income $24.4
Slide 6: Fortress balance sheet and capital
Fortress balance sheet and capital $B, except per share data 4Q17 3Q17 4Q16 Basel III Standardized Fully Phased-In1 CET1 capital 4Q17 Basel III $184 $187 $182 CET1 capital ratio Advanced Fully 12.1% 12.5% 12.3% Phased-In of 12.7%1 Tier 1 capital $209 $212 $207 Tier 1 capital ratio 13.8% 14.2% 14.1%
Slide 7: Consumer & Community Banking
Consumer & Community Banking1 $mm Financial performance $ O/(U) Net income of $2.6B, up 11% YoY 4Q17 3Q17 4Q16 Revenue of $12.1B, up 10% YoY, driven by higher NII on Revenue $12,070 $37 $1,051 deposit margin expansion and strong deposit growth and Consumer & Business Banking 5,557 149 783 higher
Slide 8: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $2.3B on revenue of $7.5B 4Q17 3Q17 4Q16 Revenue $7,478 ($1,112) ($983) Banking revenue Investment banking revenue 1,637 (68) 150 IB revenue of $1.6B, up 10% YoY, driven by strength across Treasury Services 1,078 20 1
Slide 9: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Record net income of $957mm, up 39% YoY and up 9% QoQ 4Q17 3Q17 4Q16 Revenue $2,353 $207 $390 Record revenue of $2.4B, up 20% YoY and 10% QoQ 2 Middle Market Banking 870 22 117 Net interest income of $1.6B, up 18% YoY and 3% QoQ 2 Corporate
Slide 10: Asset & Wealth Management
Asset & Wealth Management1 $mm Financial performance $ O/(U) Net income of $654mm, up 12% YoY and down 3% QoQ 4Q17 3Q17 4Q16 Revenue $3,374 $129 $287 Record revenue of $3.4B, up 9% YoY and 4% QoQ Asset Management 1,705 118 155 Expense of $2.3B, up 8% YoY and 8% QoQ Wealth Management 1,669 11 1
Slide 11: Corporate
Corporate1 $mm Financial performance $ O/(U) Treasury and CIO 4Q17 3Q17 4Q16 Net income of $66mm, up $263mm YoY, primarily due to the Treasury and CIO $66 ($9) $263 benefit of higher rates Included impact of Other Corporate TCJA of ($2.7)B2 (2,392) (2,395) (2,248) Other Corporate Net income ($2,32
Slide 12: Outlook
Outlook Firmwide As a result of the change in tax rate due to TCJA, expect a reduction in tax-equivalent adjustments, decreasing both managed revenue and managed tax expense by ~$1.2B on an annual run-rate basis New revenue recognition accounting rule expected to increase both FY2018 revenue and
Slide 13: 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 Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the resu
Slide 14: Reconciliation of the enactment of TCJA
Notes Reconciliation of the impact of the enactment of TCJA1 Impact to 4Q17 firmwide reported GAAP results2 $mm Revenue3 ($520) Deemed repatriation 3,728 Deferred tax revaluation (2,090) Other business impacts 288 Tax expense/(benefit) 1,926 Net income ($2,446) Reconciliation $mm Reported GAAP reven
Slide 15: Additional Notes
Notes Additional Notes on slide 6 – Consumer & Community Banking 2. Formerly Mortgage Banking 3. Formerly Card, Commerce Solutions & Auto 4. Actual numbers for all periods, not over/(under) 5. The prior period amounts have been revised to conform with the current period presentation 6. During 3Q17,
Slide 16: 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