Jp Morgan Chase & Co. · NYSE:JPM

Jp Morgan Chase & — Morgan Stanley Financials Conference 2014

21 slides from Jp Morgan Chase &'s conference presentation, Jun 11, 2014

  1. Slide 1: Morgan Stanley Financials Conference

    June 11, 2014 Marianne Lake, Chief Financial Officer Morgan Stanley Financials Conference

  2. Slide 2: JPMorgan Chase overview: performance summary

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E 13% 17% 12% 11% 9% 11% JPM WFC GS MS C BAC FY2010 FY2011 FY2012 FY2013 1Q14 Revenue (FTE) 1 $104,842 $99,767 $99,890 $99,798 $23,863 Credit costs 16,639 7,574 3,385 225 850 Expense 61,196 62,911 64,729 70,467 14,636 Reported net incom

  3. Slide 3: Four unparalleled client franchises, each performing strongly

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E  CCB  Deposit growth is among the highest in the industry7  #1 credit card issuer in the U.S. based on loans outstanding8  Record client investment assets  CIB  Top 3 in 15 product categories out of 169  #1 in global IB fees wi

  4. Slide 4: Deepening client relationships: $18B of synergies in 2013

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E …which together drove $18B of synergies in 2013 JPMorgan Chase overview $15B revenue + $3B cost = $18B gross cross-sell and synergies CB ~$5.1B3  AM is an important client of CIB’s global custody and fund services  The Private Bank

  5. Slide 5: Capital objectives and long-term targets

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E 1Q14 2Q14E Long-term targets CET-1 ratio 9.6% 9.6%+/- 10-10.5% Firm SLR 3 5.1% +20bps+/- 5.5%+/- Bank SLR 3,4 5.3% +20bps+/- 6%+ Ca pita l 2 Capital objectives and long-term targets Capital and liquidity Clear path to achieving long-t

  6. Slide 6: Stressed capital simulation

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E Stressed capital simulation Capital and liquidity Comments  Over the last 2 years the FRB has increased its focus on the qualitative aspects of CCAR  Banks are expected to have robust, repeatable and sustainable processes  The Firm

  7. Slide 7: Managing the Firm's liquidity position through changing market dynamics

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E Managing the Firm’s liquidity position through changing market dynamics Capital and liquidity Comments  Maintaining adequate liquidity is the Firm’s top priority  The Firm holds an appropriate – not excessive – amount of liquidity 

  8. Slide 8: Centralized asset and liability management process

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E Centralized asset and liability management process – drives consistency in pricing, modeling and retention decisions Investor topics  JPM’s asset and liability management (ALM) is broad-reaching and granular and managed at the produc

  9. Slide 9: Historic JPM deposit rates paid

    0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 0% 1% 2% 3% 4% 5% 6% R ates P a id 3m LIBOR Increase in current rates from 14 bps to 200 bps implies a 50% reprice at 4% LIBOR M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E Historic JPM deposits rates paid Investor topics JPM deposit mix – %

  10. Slide 10: Firm NIM simulation

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E  The average Firm NIM from 2005-2010 was 2.95%  2013 NIM was 2.23% due to prolonged low rates, legacy loan run-off and liquidity requirements  Firm NIM over the next rate cycle could be ~2.65%-2.75%  Expect that normalization of r

  11. Slide 11: Impact of Fed's QE policy and reversal

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E Impact of Fed’s QE policy and reversal Investor topics Impact of QE policy  The Fed has implemented a quantitative easing (QE) policy through the purchase of long dated assets, primarily Treasuries and MBS  ~$3.3T increase in Fed ba

  12. Slide 12: CIB Markets update: low volatility and low volumes

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E 1 Source: US Treasuries per Federal Reserve; US HG/HY Bonds per Trace, ex-144A; CDX/iTraxx per DTCC; Brent Crude Oil/Gold per Bloomberg; CME FX Futures per G7 FX futures; Cash Equities (ADV/ADT) in U.S. based on number of shares trade

  13. Slide 13: CIB long-term strategy and performance

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E 48% 52% 61% 39% 66% 34% 80% 20% CIB long-term strategy and performance Investor topics Total $453T Total $248T Global GDP and financial asset distribution4 ($T) JPM CIB ROE5 & FICC market share 1 Dealogic wallet rankings 2 CHIPS & Fed

  14. Slide 14: Mortgage Banking production update

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E Mortgage Banking Production update Investor topics $0.6 $1.1 $1.1 $0.6 $0.7 $0.7 $0.8 $0.5 $2.8 $1.3 $1.5 $1.2 $0.4 $0.3 2000 2003 2007 2012 2013 2014F 2015F TTC Purchase Refinance $3.9 $2.4 $1.1 $1.9 $1.5 $1.0 $1.1 $2.1 (2.5)% 0.0% 2

  15. Slide 15: Mortgage Banking strategy and targets

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E Mortgage Banking strategy and targets Investor topics Strategic priorities Competitive advantages  We are committed to being in the mortgage business – but we must:  Accomplish our control agenda  Reduce our fixed costs  Productio

  16. Slide 16: Firmwide expense targets

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E 2013 2014E 2013 2014E Firmwide expense targets Investor topics Firmwide adjusted expense1 ($B) 1 See note 3 on slide 18 2 MB expense reduction excludes the impact of $0.4B legal expense and $0.3B FRM in 2013 "Expect firmwide adjusted

  17. Slide 17: Earnings power simulation

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E $18 $5 $23+ $7 $0.7 ($0.7) ($2.5) ~$27+/- 2013 Reported net income Significant & one-time items Core performance Normalized rates & incremental earnings from investments CCB efficiencies Credit costs New financial architecture Pro for

  18. Slide 18: Notes on slide: Four unparalleled client franchises

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E Notes on slide 2 – Four unparalleled client franchises, each performing strongly… 1. CAGR 2010-2013 for mortgage originations was 2% 2. Represents client deposits and other third-party liabilities 3. Represents total CIB trading and C

  19. Slide 19: Notes on non-GAAP financial measures

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E 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 financia

  20. Slide 20: Notes on non-GAAP financial measures

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E Notes on non-GAAP financial measures 4. Tangible common equity (“TCE”) and return on tangible common equity (“ROTCE”), are each non-GAAP financial measures. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholde

  21. Slide 21: Forward-looking statements

    M O R G A N S T A N L E Y F I N A N C I A L S C O N F E R E N C E 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 JPMorga

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