Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q2 2017 Earnings Presentation
15 slides from Jp Morgan Chase &'s earnings presentation, Jul 14, 2017
Slide 1: Financial Results 2Q17
F I N AN C I A L R E S U LT S 2Q17 July 14, 2017
Slide 2: 2Q17 Financial highlights
2Q17 Financial highlights ROTCE1 Common equity Tier 12 Net payout LTM3 14% 12.5% 68% 2Q17 record net income of $7.0B and EPS of $1.82 Managed revenue of $26.4B4 Adjusted expense of $14.4B5 and adjusted overhead ratio of 56%5 Fortress balance sheet Average core loans6 up 8% YoY and 2% QoQ
Slide 3: 2Q17 Financial results
2Q17 Financial results1 $B, excluding EPS $ O/(U) 2Q17 1Q17 2Q16 Net interest income $12.5 $0.2 $0.9 Noninterest revenue 13.9 0.7 0.3 Managed revenue 1 $B 2Q17 1Q17 2Q16 26.4 0.8 1.2 Expense Net charge-offs Reserve build/(release) $1.2 – $1.7 (0.3) $1.2 0.2 14.5 (0.5) 0.9 Credit costs Credit costs $
Slide 4: Fortress balance sheet and capital
Fortress balance sheet and capital $B, except per share data 2Q17 1Q17 2Q16 Basel III Advanced Fully Phased-In1 CET1 capital 2Q17 Basel III $187 $184 $179 Standardized Fully CET1 capital ratio Phased-In of 12.5%1 12.7% 12.4% 11.9% Tier 1 capital $212 $209 $205 Tier 1 capital ratio 14.4% 14.2% 13.6%
Slide 5: Consumer & Community Banking
Consumer & Community Banking1 $mm Financial performance $ O/(U) Net income of $2.2B, down 16% YoY 2Q17 1Q17 2Q16 Revenue of $11.4B, flat YoY Revenue $11,412 $442 ($39) Higher NII and auto lease income were offset by higher Consumer & Business Banking 5,233 327 617 Card new account origination
Slide 6: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $2.7B on revenue of $8.9B 2Q17 1Q17 2Q16 ROE of 15% Revenue $8,889 ($647) ($276) Investment banking revenue 1,695 44 203 Banking revenue Treasury Services 1,055 74 163 IB revenue of $1.7B, up 14% YoY, with strength
Slide 7: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Record net income of $902mm, up 30% YoY and 13% QoQ 2Q17 1Q17 2Q16 Revenue $2,088 $70 $271 Record revenue of $2.1B, up 15% YoY and 3% QoQ Middle Market Banking 2 839 55 150 Net interest income of $1.5B, up 22% YoY and 6% QoQ 2 Corporate Cli
Slide 8: Asset & Wealth Management
Asset & Wealth Management1 $mm Financial performance $ O/(U) Record net income of $624mm, up 20% YoY 2Q17 1Q17 2Q16 Revenue $3,212 $125 $273 Revenue of $3.2B, up 9% YoY and up 4% QoQ Asset Management 1,561 74 137 Wealth Management 1,651 51 136 Expense of $2.2B, up 4% YoY and down 15% QoQ Expen
Slide 9: Corporate
Corporate1 $mm Financial performance $ O/(U) Treasury and CIO 2Q17 1Q17 2Q16 Net loss of $14mm in 2Q17, up $53mm QoQ, reflecting higher Treasury and CIO ($14) $53 $185 rates Other Corporate 584 482 551 Other Corporate Net income $570 $535 $736 Net Income of $584mm, includes a $406mm after-tax be
Slide 10: Outlook
Outlook Firmwide Expect 2017 net interest income to be up $4B+ YoY, market dependent Expect 2017 adjusted expense to be ~$58B Expect 2017 net charge-offs to be $5B+/-1 Expect 2017 average core loan growth to be ~8% FINANCIAL RESULTS 1 2017 net charge-off outlook excludes the impact of the wr
Slide 11: Agenda
Agenda Page Appendix 10 FINANCIAL RESULTS
Slide 12: Fortress balance sheet and capital – Standardized
Fortress balance sheet and capital – Standardized $B, except per share data 2Q17 1Q17 2Q16 Basel III Standardized Fully Phased-In1 CET1 capital 2Q17 Basel III $187 $184 $179 Advanced Fully CET1 capital ratio Phased-In of 12.7%1 12.5% 12.4% 12.1% Tier 1 capital $212 $209 $205 Tier 1 capital ratio 14.
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 results are considered non-GAAP financial measures. The Firm also reviews the
Slide 14: Additional Notes
Notes Additional Notes on slide 4 – Consumer & Community Banking 2. Actual numbers for all periods, not over/(under) 3. Firmwide mortgage origination volume was $26.2B, $25.6B and $28.6B, for 2Q17, 1Q17 and 2Q16, respectively 4. Excludes purchased credit-impaired (PCI) write-offs of $22mm, $24mm and
Slide 15: 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