Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Goldman Sachs US Financial Services Conference 2009
28 slides from Jp Morgan Chase &'s conference presentation, Dec 8, 2009
Slide 1: Goldman Sachs US Financial Services Conference
Exhibit 99.1 ExhibitDimon Jamie Chairman December Goldman 99.1 Sachs and 8, 2009 Chief US Financial ExecutiveServices Officer Conference
Slide 2: Agenda
Agenda Credit Loan Fortress Consumer Part Comments 1 Outlook I demand II III —update —balance Firm Key and on the and investor small sheet environment line business of topics business support update efforts
Slide 3: Earnings power and fortress balance sheet
Earnings Each Franchises Excellent Leadership Significant Continued Businesses Creates Power Pre-provision On-going, Balance Fortress Tier Added Solid 1 2 1standalone Earnings earnings execution Capital $2B Excludes additional Sheet power but Seeinvestment market operate positions to profit of heigh
Slide 4: Strategic investment initiatives
Strategic Investment Retail 120 Branch-based – Card Drive Launched Introduced Commercial Build Add Treasury Continue Invest Asset Expand Continued US 3 1,200 Retail new 100+ Services Management out further Financial innew Prime Private branch platforms & initiatives to Emerging Middle fund Ultimate
Slide 5: Actual 3Q09 results
$ Actual 3Q09 ($ Results Revenue Credit Expense Merger-related Net Reported ROE3 ROE ROTCE3,4 1 provision 2 3 O/(U) Managed inIncome millions) Net YTD 3Q08 Costs1 7% preferred 4 excl. Merger-related 39,803 (FTE)1 Net EPS of for See5% basis Managed 11% Applicable 3Q08 GW Merger-related credit Income
Slide 6: Investment Bank 3Q09 results
$ Average 3Q09 ($ Revenue Investment Fixed Equity Credit Expense Key Overhead Comp/Revenue Allowance NPLs Net ALL ROE3 VAR EOP Leadership Ranked #1 #4 Comments Total Level 1 2 3 4 5 Actual O/(U) Loans Calculated in Global Income Charge-off Statistics Loans Equity millions) /($mm)4 average 3Q08 3Inco
Slide 7: Retail Financial Services
Retail # Average Deposit Branch Checking Investment 3Q09 Consumer Credit Net ALL Key Home Avg Total Mortgage Auto – 3rd 1 2 6 YoY ofparty Includes Does Party Charge-off ATMs Branches Auto Home Mortgage Statistics /originations Originations YTD 3Q08 Financial Banking Loans Equity card Metrics: increa
Slide 8: Consumer Lending 3Q09 results
$ Source: 3Q09 ($ ROE1,2 EOP Retail Consumer Noninterest Total Credit Expense Net Leadership #2 #3 9.4% #1 1 2 3 O/(U) in inIncome($2,380)($1,686)($694) Puerto 4 5 6 income Income Interest Equity millions) ATMs4 Auto deposit branch Mortgage Home Revenue market 3Q08 Financial Banking Costs Actual 3%
Slide 9: Card Services 3Q09 results
Card $ 3Q09 ($ Revenue Credit Expense ROO ROE2(17)% Key Avg EOP Charge Managed Net 30+ Commentary Sales Balance 18.3%3 1 2 3 8 O/(U) inAccts Income($1,919) Charge-Off Day Outstandings Statistics Equity Outstandings millions) Services volume (pretax)(2.32)% 3Q08 Costs Volume Actual of transfers 3,985
Slide 10: Commercial Banking 3Q09 results
$ 3Q09 ($ Revenue Middle Mid-Corporate Real Other Credit Expense Key Avg Allowance NPLs Net ALL ROE4 Overhead EOP Leadership #1 Among Comments Geographically Limited Commercial No Minimal Still 1 2 3 4 O/(U) in multi-family outsized Income Charge-Off 9 Loans 5 6 Loans Liability Statistics remains Es
Slide 11: Treasury & Securities Services 3Q09 results
$ 3Q09 ($ Revenue Expense Net Key Avg Assets Pretax ROE3 TS TSS EOP Leadership Treasury #1 #5 Worldwide #2 1 6 O/(U) 2 3 4 5 in in provider Firmwide Income Liability Statistics1 Firmwide Equity millions) US Commercial global 3Q08 26% Margin under Actual 3,887 $5,509 & Services Services: Dollar Secur
Slide 12: Asset Management 3Q09 results
Asset $ 3Q09 ($ Revenue Institutional Retail Private Bear Credit Expense Net Key Assets Average Pretax ROE2 EOP Leadership Largest One % 5 1 2 3 4 11 5 O/(U) year inIncome of Statistics of Loans Equity AUM millions) Stearns 3Q08 Management 1,135 =Costs 19% Margin under the QuartileWealth Bank Actual
Slide 13: Corporate/Private Equity
Corporate/Private $ 3Q09 Private Corporate Merger-related Net 12O/(U) Income 3Q08 Equity 2,514 ($ $1,833 3Q08 ($219) in items 295 millions) Equity ($988) 2,219 (462) ($8) ($211) $2,821 YTD (1,275) YTD813YTD
Slide 14: Key Investor Topics Agenda
Key Investor Page Agenda Appendix 13 23 Topics 13
Slide 15: Key investor topics: mortgage and credit statistics
KEY Key EOP Net Nonperforming Overall Some Home Outlook1 Prime Subprime Purchased Total Added 1 2 pools 3 14Excludes Ending Net charge-offs charge-off statistics1 owned INVESTOR purchased that charge-offs initial Mortgage2 Mortgage3 and Mortgage Lending Equity $1.1B commentary balances Mortgage are
Slide 16: Loan demand and credit trends
Loan Mortgage Card Average Business K Personal 8.0% E Y3Q09 0.0% 2.0% 4.0% 9.0% 6.0% 15 Mar-90 Ratio demand Periods Feb-90 40% 60% 80% 100% 120% Source: 1 mutual Ifund Sources of 12.0% Nlarge Mid-Corporate saving Banking 3Q09 V 3.0%YTD May-93 Jun-93 of E Bureaus Federalremains capital of corporate S
Slide 17: Capital management
Capital $130 $112 $98 9.7% 16 9.3% $0 $33 8.0% Tier $105 $86 $85 $65 7.7% 8.2% $45 6.8% 7.0% 7.3% $25 $5 3Q08 10.2% 1$111 $122 JanuaryCapital Investing Dividend To Could 30-40% KEY 1 Note: See 6.0% 4.0% occur 8.9% $87 8.0% 7.0% 6.0% 5.0% $97management 9.0% INVESTOR note Tier 4Q08 Common $112 3$127 1
Slide 18: Small business lending and overdraft changes
JPM Overdraft Modified No Reduced Helps Blueprint Ability Small Increase Announced The K 17Eoverdraft Y $4B continues customers business Ito Nsmall lending the posting avoid on Vplans maximum Efees debit business Sto lending interest T manage commitment order support, to ifcard Oaadd R customer’s nu
Slide 19: HAMP and Chase modifications
2009 HAMP Chase Modifications Approved Permanent modifications For completed 29 71 51 20 – What Dedicated 15 Approximately Focused Targeting Borrowers Documentation Many Current Modification 1 2 3 4 KEY 18Most Failures Chase HAMP Seasoned customers do submit operating every YTD INVESTOR we not borro
Slide 20: Comments on regulatory reform
Comments OTC Consumer Incentive Risk, Resolution KEY 19 derivatives INVESTOR leverage compensation Financial on regulatory authority andTOPICS capital Protection reform requirements Agency
Slide 21: Outlook: Solid 4Q09
Outlook Solid 4Q09 Average Delinquencies Non-compensation NSF/OD 2010 At The $1B Credit Signs Home Expense Investments Continued KEY 20 current preliminary +/- INVESTORTOPICS underlying of Lending environment from — stability deposit remains policy production elevated Retail inestimated and branch l
Slide 22: Outlook: Card Services
Outlook 4Q09 Average Chase 2010 WaMu Anticipate Expect Continue KEY 21 INVESTORTOPICS and losses losses estimated $1B — outstandings toWaMu net Card +/- invest could could income net Services full losses in approach loss approach the year expected reduction per of business average 9% quarter 11% 24%
Slide 23: Outlook: Investment Bank and other businesses
Outlook Investment Expect Commercial Strong Treasury Performance Asset Management Corporate/Private Private Results Net Corporate Quarterly If Overall K 22 economy E interest YManagement Ireserves, Fixed Equity will N— &net VBank Other Securities weakens income be Banking Ewill and income Income Svo
Slide 24: Key Investor Topics Agenda: Appendix
Key Investor Page Agenda Appendix 23 23 Topics 13
Slide 25: Consumer delinquency trends excluding home lending
Consumer Excluding Home 6.50% 1.25% 2.00% 2.75% 3.50% 4.25% 5.00% 5.75% Prime 13% 1% 3% 7% 9% 11% Mar-08 1.5% 3.0% 4.5% Note: 1 2 A Equity Subprime 30+ 35% 5% 10% 15% 20% 25% 30% Card 6.0% P Pday 1-29 1-29 30+ E On credit-impaired credit Services Mortgage 30+ May-08 day day delinquency —delinquencie
Slide 26: Investment banking league tables
IBUS Sept. League Based Global US Ranked #1 #4 1 2 3 4 25 5 PGlobal League Debt, Equity Long-term M&A Loan P 09 Eon IB Debt, Equity Debt3 Long-term M&A Loan table Source: YTD #1 YTD Syndications fees volumes Equity Announced5 Announced fees Debt, Equity Debt Long-term Loan Debttables & infor Global
Slide 27: Substantially increased loan loss reserves
Substantially $ Loan 5.75% 4.60% in millions 2.30%1Loss 27,381 3.45% 19,052 11,746 1.15% 1 2,490 11,401 3Q07 0.00% Peer JPM 3Q09 Nonperforming Consumer 30,633 Reserve/Total 29,072 Wholesale LLR/Total Firmwide $30.6B ~$22B Strong LLR/NPLs 300% 200% 13,246 23,164 8,113 increased 400% 3% 9,234 Loans lo
Slide 28: Notes
Notes 1.Financial 2009 2.All Additional 3.The loan quarter billion 4.Tier interest 5.Tangible MSRs) differences Forward This of JPMorgan March Commission undertake A 27 PJPMorgan Plosses presentation and non-GAAP Eratio on 131, at of and in N Common looking September non-GAAP its 2009. to subsidiari
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