Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q1 2011 Earnings Presentation
21 slides from Jp Morgan Chase &'s earnings presentation, Apr 13, 2011
Slide 1: Financial Results 1Q11
FINANCIAL RESULTS 1Q11 April 13, 2011
Slide 2: 1Q11 Financial highlights
1Q11 Financial highlights 1Q11 net income of $5.6B; EPS of $1.28; revenue of $25.8B1 1Q11 results include the following significant items: $ in millions, excluding EPS Pretax Net Income EPS Card Services - benefit from reduced credit card loan loss reserves $2,000 $1,240 $0.29 Retail Financial Servi
Slide 3: 1Q11 Financial results
1Q11 Financial results1 $ in millions, excluding EPS $ O/(U) 1Q11 4Q10 1Q10 Revenue (FTE)1 $25,791 ($931) ($2,381) Credit Costs 1 1,169 (1,874) (5,841) Expense 15,995 (48) (129) Reported Net Income $5,555 $724 $2,229 Net Income Applicable to Common Stock $5,136 $724 $2,162 Reported EPS $1.28 $0.16 $
Slide 4: Investment Bank
Investment Bank1 $ in millions Net income of $2.4B on revenue of $8.2B $ O/(U) ROE of 24% 1Q11 4Q10 1Q10 IB fees of $1.8B up 23% YoY Revenue $8,233 $2,020 ($86) Ranked #1 YTD in Global Investment Investment Banking Fees 1,779 (54) 333 Banking Fees Fixed Income Markets 5,238 2,363 (226) Equity Market
Slide 5: Retail Financial Services
Retail Financial Services1 $ in millions Key drivers $ O/(U) 1Q11 4Q10 1Q10 Retail Banking Retail Financial Services Net Interest Income $4,630 ($199) ($394) Average deposits of $348.1B up 4% YoY and 3% Noninterest Revenue 1,645 (2,051) (1,107) QoQ Revenue $6,275 ($2,250) ($1,501) Expense 5,262 438
Slide 6: Retail Banking and Mortgage Banking, Auto & Other Consumer Lending
Retail Financial Services Retail Banking and Mortgage Banking, Auto & Other Consumer Lending $ in millions Retail Banking net income of $891mm flat YoY: $ O/(U) Total revenue of $4.4B up 2% YoY net of the 1Q11 4Q10 1Q10 impact of lower deposit-related fees Retail Banking Expense up 9% YoY resulting
Slide 7: Retail Financial Services: Real Estate Portfolios
Retail Financial Services Real Estate Portfolios $ in millions Net loss of $162mm compared with a net $ O/(U) loss of $1.3B in the prior year 1Q11 4Q10 1Q10 Total revenue of $1.2B down 24% YoY Real Estate Portfolios Revenue $1,164 ($165) ($364) driven by a decline in net interest Expense 355 (58) (6
Slide 8: Home Lending update
Home Lending update Key statistics1 Overall commentary 4Q10 4Q10 1Q11 Adjusted Reported 1Q10 Delinquencies modestly improved in 1Q11 EOP owned portfolio ($B) Home Equity $85.3 $88.4 $97.7 2 Home equity and subprime mortgage net Prime Mortgage, including option ARMs 62.6 64.0 69.1 Subprime Mortgage 1
Slide 9: Card Services
Card Services $ in millions Net income of $1.3B compared with a net loss of $303mm in the prior year $ O/(U) Credit costs of $226mm reflect lower net charge-offs 1Q11 4Q10 1Q10 and a reduction of $2.0B to the allowance for loan Revenue $3,982 ($264) ($465) losses, due to lower estimated losses Credi
Slide 10: Commercial Banking
Commercial Banking1 $ in millions Net income of $546mm up 40% YoY $ O/(U) Average loan balances up 3% YoY and 1% 1Q11 4Q10 1Q10 QoQ Revenue $1,516 ($95) $100 Middle Market Banking 755 (26) 9 Average liability balances of $156B up 17% YoY Corporate Client Banking 290 (12) 27 Commercial Term Lending 2
Slide 11: Treasury & Securities Services
Treasury & Securities Services1 $ in millions Net income of $316mm up 13% YoY and 23% $ O/(U) QoQ Pretax margin of 26% 1Q11 4Q10 1Q10 Revenue $1,840 ($73) $84 Liability balances up 7% YoY Worldwide Securities Services 949 (11) 75 Treasury Services 891 (62) 9 Record assets under custody of $16.6T up
Slide 12: Asset Management
Asset Management $ in millions Net income of $466mm up 19% YoY $ O/(U) Pretax margin of 31% 1Q11 4Q10 1Q10 Revenue $2,406 ($207) $275 Revenue of $2.4B up 13% YoY due to the effect Private Banking1 1,317 (59) 167 of higher market levels, net inflows to products Institutional 549 (126) 5 with higher m
Slide 13: Corporate/Private Equity
Corporate/Private Equity Net Income ($ in millions) Private Equity $ O/(U) Private Equity portfolio of $10.1B (7.7% of 1Q11 4Q10 1Q10 stockholders’ equity less goodwill) Private Equity $383 $205 $328 Corporate Corporate 339 488 166 Corporate, excluding Private Equity, quarterly net income should be
Slide 14: Fortress balance sheet
Fortress balance sheet $ in billions 1Q11 4Q10 1Q10 Basel I Tier 1 Common Capital1,2 $120 $115 $104 Basel III Tier 1 Common Capital1,2,3 (Estimate) $116 $112 $96 Basel I Risk-Weighted Assets1 $1,194 $1,175 $1,147 Total Assets $2,198 $2,118 $2,136 Basel I Tier 1 Common Ratio1,2 10.0% 9.8% 9.1% Basel
Slide 15: Outlook
Outlook Retail Financial Services Corporate / Private Equity Home Lending loss guidance: Private Equity Expect total quarterly net charge-offs of Results will be volatile $1.2B +/- Corporate Repurchases losses of $1.2B+/- annualized Corporate, excluding Private Equity, run-rate for remainder of 2011
Slide 16: Agenda
Agenda Page Appendix 15 FINANCIAL RESULTS 15
Slide 17: Consumer credit — delinquency trends
Consumer credit — delinquency trends (Excl. purchased credit-impaired loans and WaMu and Commercial Card portfolios) Home Equity delinquency trend ($ in millions) Prime Mortgage delinquency trend ($ in millions) $4,000 30 – 150 day delinquencies $6,000 30 – 150 day delinquencies 150+ day delinquenci
Slide 18: Firmwide coverage ratios remain strong
Firmwide coverage ratios remain strong $ in millions Loan Loss Reserve/Total Loans1 Loan Loss Reserve Loan Loss Reserve/NPLs1 6.00% Nonperforming Loans 500% 5.00% 400% 38,186 34,161 35,836 4.00% 31,602 32,266 300% 30,633 29,072 29,750 3.00% 200% 27,381 2.00% 100% 14,785 17,767 17,564 17,050 16,179 1
Slide 19: IB league tables
IB league tables League table results For YTD March 31, 2011, JPM ranked: 1Q 2011 2010 #1 in Global IB fees Rank Share Rank Share #1 in Global M&A Announced Based on fees: #1 in Global Loan Syndications Global IB fees 1 #1 8.6% #1 7.6% #3 in Global Debt, Equity & Equity-related Based on volumes: #3
Slide 20: Notes on non-GAAP financial measures
Notes on non-GAAP financial measures 1. In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. The Firm’s definition of managed basis starts with the
Slide 21: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase & Co.’s management and are subject to significant risks a