Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Investor Day (February 2017)
29 slides from Jp Morgan Chase &'s investor day presentation, Feb 28, 2017
Slide 1: Commercial Banking
COMMERCIAL BANKING Doug Petno, Chief Executive Officer of Commercial Banking February 28, 2017
Slide 2: Commercial Banking – a proven business model
Draft Commercial Banking – a proven business model Clients at the center of everything we do Client and Coverage strategically segmented and focused to best serve client needs community focus Local delivery and decision making, with deep industry expertise Industry-leading, broad-based capab
Slide 3: Agenda
Draft Agenda Page Franchise strength 2 Disciplined long-term growth 10 Business innovation 14 Financial targets 18 Notes 21 COMMERCIAL BANKING
Slide 4: Clients are at the center of everything we do
Draft Clients are at the center of everything we do Core principles of CB model Well-defined segmentation Coverage Local teams Segmented aligned to client needs International expertise Industry specialization Client Experienced service bankers Deliver client value Tailored by industry Diff
Slide 5: Well-defined segmentation offers focused client coverage
Draft Well-defined segmentation offers focused client coverage Client coverage structure Commercial Banking Middle Market Corporate Client Business Middle Market Banking & Corporate BankingClient & Corporate & C&I Banking Specialized(MMBSI) Banking Industries Specialized (CCBSI) Banking Industries I
Slide 6: Leveraging the JPMorgan Chase platform creates a real competitive advantage
Draft Leveraging the JPMorgan Chase platform creates a real competitive advantage Unmatched value proposition for CB clients Global ~5,300 U.S. branches footprint Conduct business in 100+ countries Broad-based Robust wholesale payments treasury platform solutions Industry-specific capabiliti
Slide 7: Uniquely positioned to serve clients' evolving needs
Draft Uniquely positioned to serve clients’ evolving needs Illustrative case study – C&I client Multinational Community retailer Regional retailer retailer Client growth story Entrepreneur-run Family-owned Publicly-traded Handful of stores Hundreds of suppliers Multicurrency exposure Dem
Slide 8: Executed our proven strategy in 2016
Draft Executed our proven strategy in 2016 Record Franchise strength Financial performance 2014 2015 2016 2014 2015 2016 Bankers1 Revenue ($B) 1,572 $7.5 + 7% YoY 1,409 1,467 + 8% YoY $6.9 $6.9 Client calls Net income ($B) (000s)2 $2.7 171 $2.6 $2.2 135 151 + 21% YoY + 13% YoY New NCOs (bps) relatio
Slide 9: Disciplined C&I loan growth
Draft Disciplined C&I loan growth C&I loans outstanding ($B, EOP)1 MMBSI loans, up 7% YoY, with strong results across regions, particularly expansion markets, up 18% $92 CCBSI loans, up 11% YoY, driven by specialized $85 industries $78 $74 ABL loans, up 13% YoY, on record originations of $6B 2
Slide 10: Highly-targeted CRE loan growth
Draft Highly-targeted CRE loan growth CRE loans outstanding ($B, EOP)1 Strong originations across CRE, while maintaining strict underwriting criteria $97 Improved market share across CTL $83 Increased term loan activity in REB $71 $63 Continue to see quality lending opportunities with the ri
Slide 11: Maintaining strict discipline in CRE
Draft Maintaining strict discipline in CRE CRE credit portfolio overview CTL $71B loans REB and CCBSI RE $21B loans CDB $5B loans Large, densely-populated, supply- Focus on least volatile asset classes Offers financing for community constrained markets (e.g. multifamily) development projects i
Slide 12: Agenda
Draft Agenda Page Franchise strength 2 Disciplined long-term growth 10 Business innovation 14 Financial targets 18 Notes 21 COMMERCIAL BANKING
Slide 13: Patient, disciplined Middle Market franchise expansion
Draft Patient, disciplined Middle Market franchise expansion Total expansion market revenue ($mm) $1,000 $411 $352 $328 $297 $232 $139 $53 2010 2011 2012 2013 2014 2015 2016 Long-term Long-term target target DISCIPLINED LONG-TERM GROWTH 2010-2016 CAGR Clients (#) 820 1,100 1,360 1,470 1,670 1,970 2,
Slide 14: Case study: Strong results in California expansion markets
Draft Case study: Strong results in California expansion markets California presents a major market opportunity MMBSI entered California following the WaMu acquisition in 2008; now has 13 offices California represents the 6th largest global economy1 6 MSAs in top 50, including 4 in the top 202
Slide 15: Industry expertise remains a strong differentiator to C&I clients
Draft Industry expertise remains a strong differentiator to C&I clients Targeted industries Specialized capabilities Industry-specific products and content Custom client solutions Agribusiness Apparel Beverage Energy Sector-specific advice and content to support clients Risk management Financial
Slide 16: Continued success in delivering investment banking solutions to CB clients
Draft Continued success in delivering investment banking solutions to CB clients Commercial Banking gross investment banking revenue1 ($B) $3.0 $2.3 $2.2 $2.0 $1.7 $1.6 $1.3 $1.4 DISCIPLINED LONG-TERM GROWTH 2010 2011 2012 2013 2014 2015 2016 Long-term target CB clients represent 40% of CIB’s N.A. I
Slide 17: Agenda
Draft Agenda Page Franchise strength 2 Disciplined long-term growth 10 Business innovation 14 Financial targets 18 Notes 21 COMMERCIAL BANKING
Slide 18: Investing in technology to drive transformational process and product innovation
Draft Investing in technology to drive transformational process and product innovation Broad focus on innovation Select CB initiatives Treasury Services Wholesale Product integration / FinTech payments simplification partnerships Client Digital solutions Leading digital Mobile Integrated digital pla
Slide 19: Expanding wholesale payments capabilities
Draft Expanding wholesale payments capabilities Large wholesale payments market... …with significant client pain-points Estimated N.A. wholesale $92T+ payments value1 $550B+ ~50% ~60% ~70% Total N.A. wholesale $77B payments revenue1 Client costs Payments B2B payments Companies lack Wholesale payment
Slide 20: Improving client experience through enhanced digital delivery
Draft Improving client experience through enhanced digital delivery Developing end-to-end digital platform to deliver robust capabilities Aligned, integrated product offerings Universal mobile offering Comprehensive payment solutions Digital onboarding and self-service Simple user experien
Slide 21: Investing to expand CTL's competitive advantage
Draft Investing to expand CTL’s competitive advantage New loan origination platform will transform CTL’s lending process ™ Build on our tremendous scale to further differentiate our value proposition Reduce already leading loan closing times Target ~50% reduction Improve transparency ~45 days
Slide 22: Agenda
Draft Agenda Page Franchise strength 2 Disciplined long-term growth 10 Business innovation 14 Financial targets 18 Notes 21 COMMERCIAL BANKING
Slide 23: Well-positioned to capitalize on macro trends
Draft Well-positioned to capitalize on macro trends Opportunities CB positioning Improving business sentiment Strong client franchises Strong business Prospective regulatory reform for clients National footprint landscape Potential for infrastructure investments Leading IB capabilities
Slide 24: Continue to make strong progress toward achieving our targets
Draft Continue to make strong progress toward achieving our targets Financial targets 2016 2011-2016 Targets Middle Market $411mm 24% CAGR $1.0B expansion Execute growth initiatives Investment banking1 $2.3B 10% CAGR $3.0B (long-term revenue targets) International2 $285mm 8% CAGR $500mm Maintain exp
Slide 25: Our strategic priorities are focused on delivering incremental value to our clients
Draft Our strategic priorities are focused on delivering incremental value to our clients Execute disciplined long-term growth strategy Drive business innovation to improve client experience and operational efficiency Strengthen our business foundation to better serve our clients Maintain a control
Slide 26: Agenda
Draft Agenda Page Franchise strength 2 Disciplined long-term growth 10 Business innovation 14 Financial targets 18 Notes 21 COMMERCIAL BANKING
Slide 27: Notes
Draft Notes Notes on slide 6: Executed our proven strategy in 2016 Note: Numbers herein may not sum due to rounding; prior years’ financials have been revised to conform to current presentation 1. Based on total count of revenue-producing employees 2. Excludes CTL 3. Deposits herein represent averag
Slide 28: Notes (cont'd)
Draft Notes (cont’d) Notes on slide 11: Case study: Strong results in California expansion markets 1. GDP used as proxy for global economy; World Bank and Bureau of Economic Analysis as of 2015 2. Top 50 Metropolitan Statistical Areas ranked by population according to 2015 U.S. Census Bureau estimat
Slide 29: Forward-looking statements
Draft 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 ri