Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q4 2021 Earnings Presentation
29 slides from Jp Morgan Chase &'s earnings presentation, Jan 14, 2022
Slide 1: 4Q21 Financial Results
4Q21 Financial Results January 14, 2022
Slide 2: Agenda
Agenda Page 1 4Q21 and FY2021 Financial Results 1 2 Financial Outlook ◼ 2019-2021 Recap 11 ◼ 2022 Outlook 15 3 Notes 19
Slide 3: 4Q21 Financial highlights
4Q21 Financial highlights ROTCE1 CET1 capital ratios2 Net payout LTM3 19% Std. 13.0% | Adv. 13.8% 61% ◼ 4Q21 net income of $10.4B and EPS of $3.33 – Excluding credit reserve releases4, net income of $9.0B, EPS of $2.86 and ROTCE of 17% Income statement ◼ Managed revenue of $30.3B5 ◼ Expense of $17.9
Slide 4: 4Q21 Financial results
4Q21 Financial results1 $B, except per share data $ O/(U) 4Q21 3Q21 4Q20 Net interest income $13.7 $0.5 $0.4 Noninterest revenue 16.6 (0.6) (0.2) Managed revenue 1 $B 4Q21 3Q21 4Q20 30.3 (0.1) 0.2 Net charge-offs $0.6 $0.5 $1.1 Expense 17.9 0.8 1.8 Reserve build/(release) (1.8) (2.1) (2.9) Credit co
Slide 5: FY21 Financial results
FY21 Financial results1 $B, except per share data $ O/(U) FY2021 FY2020 FY2020 Net interest income $52.7 $55.0 ($2.2) Noninterest revenue 72.6 67.9 4.6 Managed revenue 1 $B FY2021 FY2020 125.3 122.9 2.4 Net charge-offs $2.9 $5.3 Expense 71.3 66.7 4.7 Reserve build/(release) (12.1) 12.2 Credit costs
Slide 6: 4Q21 Reserves
4Q21 Reserves Allowance for credit losses ($B) 4Q21 Jan 1, 2020 Dec 31, 2020 Sep 30, 2021 Build / (release) Dec 31, 2021 Consumer Card $11.2 $17.8 $11.7 ($1.4) $10.3 Home Lending 2.0 2.0 0.8 0.0 0.8 Other Consumer1 1.0 1.8 1.3 (0.1) 1.1 Total Consumer 14.2 21.6 13.7 (1.5) 12.1 Wholesale1 4.4 9.1 6.8
Slide 7: Fortress balance sheet
Fortress balance sheet $B, except per share data 4Q21 3Q21 4Q20 Risk-based capital metrics1 CET1 capital $214 $210 $205 CET1 capital ratio – Standardized 13.0% 12.9% 13.1% CET1 capital ratio – Advanced 13.8 13.6 13.8 Firm SLR ex. Leverage-based capital metric2 temporary relief2: 5.8% Firm SLR 5.4% 5
Slide 8: Consumer & Community Banking
CCB CIB CB AWM Corp. Consumer & Community Banking1 Selected income statement data ($mm) Financial performance $ O/(U) ◼ Net income of $4.2B, down 2% YoY 4Q21 3Q21 4Q20 ◼ Revenue of $12.3B, down 4% YoY Revenue $12,275 ($246) ($453) ◼ Expense of $7.8B, up 10% YoY, driven by increased compensation, Con
Slide 9: Corporate & Investment Bank
CCB CIB CB AWM Corp. Corporate & Investment Bank1 Selected income statement data ($mm) Financial performance $ O/(U) ◼ Net income of $4.8B, down 9% YoY; revenue of $11.5B, up 2% 4Q21 3Q21 4Q20 YoY Revenue $11,534 ($862) $182 ◼ Banking revenue Investment Banking revenue 3,206 181 709 Payments2 1,801
Slide 10: Commercial Banking
CCB CIB CB AWM Corp. Commercial Banking1 Selected income statement data ($mm) Financial performance $ O/(U) ◼ Net income of $1.3B, down 38% YoY, driven by lower credit reserve 4Q21 3Q21 4Q20 releases compared to the prior year Revenue $2,612 $92 $149 ◼ Revenue of $2.6B, up 6% YoY, driven by higher i
Slide 11: Asset & Wealth Management
CCB CIB CB AWM Corp. Asset & Wealth Management1 Selected income statement data ($mm) Financial performance $ O/(U) ◼ Net income of $1.1B, up 46% YoY 4Q21 3Q21 4Q20 ◼ Revenue of $4.5B, up 16% YoY, predominantly driven by higher management fees and growth in deposits and loans, partially offset Revenu
Slide 12: Corporate
CCB CIB CB AWM Corp. Corporate1 Selected income statement data ($mm) Financial performance $ O/(U) ◼ Revenue was a loss of $545mm ◼ Net interest income was a loss of $681mm, up $160mm, primarily 4Q21 3Q21 4Q20 due to higher rates, mostly offset by continued deposit growth Revenue ($545) $751 ($296)
Slide 13: Agenda
Agenda Page 1 4Q21 and FY2021 Financial Results 1 2 Financial Outlook ◼ 2019-2021 Recap 11 ◼ 2022 Outlook 15 3 Notes 19
Slide 14: Our complete, global, diverse and at-scale operating model allowed us to capitalize on macro cross-currents
Our complete, global, diverse and at-scale operating model allowed us to capitalize on macro cross-currents and generate stable returns throughout the pandemic... Our broad diversification benefited us in a challenging environment… …resulting in stable returns, outside of reserve volatility Managed
Slide 15: …allowing us to continue to invest and further strengthen our franchise
…allowing us to continue to invest and further strengthen our franchise Recent expense growth driven by volume and continued investments… …as organic growth remains a top priority 2019-2021 Adjusted noninterest expense1 ($B) 2019-2021 Investments ($B) ’19-’21: Select revenue drivers IB fees: +$5.7B
Slide 16: Since 2019 we have expanded our presence domestically and internationally
Since the beginning of 2019, we have expanded our presence both domestically and internationally, bringing our capabilities to more customers, clients and communities… We expanded our customer / client reach… …hired new bankers and advisors… …invested in our products and marketing 2018YE: 27 states
Slide 17: …and we continue to invest in our technology stack
…and we continue to invest in our technology stack so that we can quickly build and deploy best-in-class products across our businesses Global Technology spend: $12B+ Our global technology strategy… …enables us to drive innovation across our businesses Build user friendly products across retail & wh
Slide 18: Agenda
Agenda Page 1 4Q21 and FY2021 Financial Results 1 2 Financial Outlook ◼ 2019-2021 Recap 11 ◼ 2022 Outlook 15 3 Notes 19
Slide 19: Despite short-term headwinds, 17% ROTCE remains our central case in the medium term
Despite short-term headwinds, 17% ROTCE remains our central case in the medium term Illustrative headwinds and tailwinds vs. central case ROTCE1,2 (%) Tailwinds ROTCE impact Headwinds Steeper curve and Continued low-rate +/-175bps favorable reprice environment Markets/IB wallets Sharper normalizatio
Slide 20: Higher rates and loan growth expected to contribute to NII growth in 2022
In addition to higher rates, we expect loan growth, including normalization of card revolve to contribute to NII growth in 2022 Net interest income1 ($B) NII ex. CIB Markets2 CIB Markets NII2 $57.8 $55.0 $52.7 $4.0 ~$50 $54.7 $2.5 $46.6 $44.5 ($1.0) ◼ High single-digit loan ◼ Market-implied growth (
Slide 21: 2022 expense outlook
The continued execution of our investment agenda is the main driver of our 2022 expense outlook… Adjusted noninterest expense1 ($B) ~$77 ~6% growth ~flat $3.5 $70.9 $2.5 ◼ Higher volume-related non- ◼ Compensation compensation expense ◼ Normalization of T&E Offset by: ◼ Lower auto lease depreciation
Slide 22: …as well positioned as ever to serve our customers, clients and communities
…and we believe we are as well positioned as we have ever been to best serve our customers, clients and communities Retail Customers Wholesale Clients Communities Spend and save... …start and grow a business… Investing in our communities… ◼ #1 in U.S. retail deposit market share1 $30B ◼ 66mm U.S. ho
Slide 23: Agenda
Agenda Page 1 4Q21 and FY2021 Financial Results 1 2 Financial Outlook ◼ 2019-2021 Recap 11 ◼ 2022 Outlook 15 3 Notes 19
Slide 24: 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 Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of
Slide 25: Additional notes
Additional notes 1. Reflects the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including the CECL capital transition provisions that became effective in the first quarter of 2020 and expired on December 31, 2021. For the periods ended December 31, 2021, September
Slide 26: Additional notes on slides 6-8
Additional notes on slides 6-8 Slide 6 – Consumer & Community Banking 2. Actual numbers for all periods, not over/(under) 3. Users of all mobile platforms who have logged in within the past 90 days 4. Excludes Commercial Card 5. Includes the impact of loans originated under the PPP. For further info
Slide 27: Additional notes on slide 13
Additional notes on slide 13 1. CCBSI International Expansion targeting non-US headquartered global companies 2. Federal Deposit Insurance Corporation (“FDIC”) 2021 Summary of Deposits survey per S&P Global Market Intelligence. Includes a $1B deposit cap for market share. Includes all commercial ban
Slide 28: Additional notes on slide 18
Additional notes on slide 18 1. Federal Deposit Insurance Corporation (“FDIC”) 2021 Summary of Deposits survey per S&P Global Market Intelligence. Includes a $1B deposit cap for market share. Includes all commercial banks, savings banks, and savings institutions as defined by the FDIC 2. Reflects ho
Slide 29: 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