Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q4 2011 Earnings Presentation
23 slides from Jp Morgan Chase &'s earnings presentation, Jan 13, 2012
Slide 1: Financial Results 4Q11
FINANCIAL RESULTS 4Q11 January 13, 2012
Slide 2: 2011 Full year and 4Q11 financial highlights
2011 Full year and 4Q11 financial highlights FY11 record net income of $19.0B; EPS of $4.48; revenue of $99.8B1 4Q11 net income of $3.7B; EPS of $0.90; revenue of $22.2B1 4Q11 results included the following significant items: $ in millions, excluding EPS Pretax Net Income2 EPS2 IB - loss from
Slide 3: 2011 Full year managed results
2011 Full year managed results1 $ in millions, excluding EPS $ O/(U) FY2011 FY2010 FY2010 Revenue (FTE)1 $99,767 $104,842 ($5,075) Credit Costs 7,574 16,639 (9,065) Expense 62,911 61,196 1,715 Reported Net Income $18,976 $17,370 $1,606 Net Income Applicable to Common Stock $17,568 $15,764 $1,804 Rep
Slide 4: 4Q11 Financial results
4Q11 Financial results1 $ millions, excluding EPS $ O/(U) 4Q11 3Q11 4Q10 Revenue (FTE)1 $22,198 ($2,170) ($4,524) Credit Costs 2,184 (227) (859) Expense 14,540 (994) (1,503) Reported Net Income $3,728 ($534) ($1,103) Net Income Applicable to Common Stock $3,425 ($511) ($987) Reported EPS $0.90 ($0.1
Slide 5: Investment Bank
Investment Bank1 $ in millions Net income of $726mm on revenue of $4.4B DVA loss of $567mm pretax $ O/(U) ROE of 7%; 11% ex-DVA 4Q11 3Q11 4Q10 IB fees of $1.1B down 39% YoY on lower industry- Revenue $4,358 ($2,011) ($1,855) Investment Banking Fees 1,119 80 (714) wide volumes Fixed Income Ma
Slide 6: Retail Financial Services
Retail Financial Services1 $ in millions Net income of $533mm, compared $ O/(U) with $459mm in the prior year 4Q11 3Q11 4Q10 Retail Financial Services Revenue of $6.4B, down 17% YoY and Net Interest Income $3,958 ($104) ($298) 15% QoQ Noninterest Revenue 2,437 (1,036) (1,006) Revenue 6,395 (1,14
Slide 7: Retail Financial Services: Consumer & Business Banking
Retail Financial Services Consumer & Business Banking $ in millions Financial performance $ O/(U) Consumer & Business Banking net income of 4Q11 3Q11 4Q10 $802mm, down 16% YoY Net Interest Income $2,714 ($16) $21 Noninterest Income 1,603 (349) (113) Net revenue of $4.3B, down 2% YoY driven by Re
Slide 8: Retail Financial Services: Mortgage Production and Servicing
Retail Financial Services Mortgage Production and Servicing $ in millions Financial performance $ O/(U) Mortgage Production and Servicing net loss of 4Q11 3Q11 4Q10 $258mm, compared with net income of $330mm Production Production-related Revenue excl. Repurchase Losses $1,069 ($234) ($269) in the
Slide 9: Retail Financial Services: Real Estate Portfolios
Retail Financial Services Real Estate Portfolios $ in millions Net loss of $11mm compared with $ O/(U) net loss of $823mm in the prior year 4Q11 3Q11 4Q10 Revenue $1,060 ($91) ($269) Total net revenue of $1.1B down Expense 432 69 19 20% YoY driven by a decline in net Pre-Provision Pretax $628 ($
Slide 10: Mortgage Banking Portfolios update
Mortgage Banking Portfolios update Key statistics1 Delinquency trends improved marginally in 4Q11 4Q11 3Q11 4Q10 Net charge-offs for home equity and prime EOP NCI owned portfolio ($B) mortgage, including option ARMs improved Home Equity $77.8 $80.3 $88.4 slightly compared to 3Q11, but remain at
Slide 11: Card Services & Auto
Card Services & Auto1 $ in millions Card Services & Auto $ O/(U) Net income of $1.1B compared with $1.5B in the prior year 4Q11 3Q11 4Q10 The decrease was driven by a $1.7B lower reduction in the Card Services & Auto allowance compared with the prior year, predominantly offset Revenue $4,814 $39
Slide 12: Commercial Banking
Commercial Banking1 $ in millions Net income of $643mm, up 21% YoY $ O/(U) Record revenue of $1.7B, up 5% YoY 4Q11 3Q11 4Q10 Revenue $1,687 $99 $76 EOP loan balances up 13% YoY and 4% QoQ Middle Market Banking 810 19 29 Corporate Client Banking 326 20 24 6th consecutive quarter of increased
Slide 13: Treasury & Securities Services
Treasury & Securities Services $ in millions Net income of $250mm down 3% YoY and 18% QoQ $ O/(U) QoQ decrease driven by higher GCB credit 4Q11 3Q11 4Q10 allocation expense and higher provision for credit Revenue $2,022 $114 $109 losses Treasury Services 1,051 82 98 Revenue of $2.0B up 6% YoY
Slide 14: Asset Management
Asset Management $ in millions Net income of $302mm down 40% YoY $ O/(U) 4Q11 3Q11 4Q10 Revenue of $2.3B down 13% YoY primarily due Revenue $2,284 ($32) ($329) to lower performance fees and lower loan- Private Banking 1,212 (86) (164) related revenue Institutional 558 80 (117) Retail 514 (26) (4
Slide 15: Corporate/Private Equity
Corporate/Private Equity1 Net Income ($ in millions) Private Equity $ O/(U) Private Equity net revenue of negative $113mm 4Q11 3Q11 4Q10 Private Equity ($89) $258 ($267) Private Equity portfolio of $7.7B (5.7% of Corporate 312 610 461 stockholders’ equity less goodwill) Net Income $223 $868 $194
Slide 16: Fortress balance sheet
Fortress balance sheet $ in billions 4Q11 3Q11 4Q10 Basel I Tier 1 Common Capital1,2 $123 $120 $115 Basel III Tier 1 Common Capital1,2,3 (Estimate) $122 $119 $112 Basel I Risk-Weighted Assets1 $1,224 $1,218 $1,175 Basel III Risk-Weighted Assets1,2,3 (Estimate) $1,546 $1,549 $1,610 Total Assets $2,26
Slide 17: Outlook
Outlook Retail Financial Services Corporate / Private Equity Consumer & Business Banking – 2012 outlook In 2012, Corporate quarterly net income, excluding Spread compression, given low interest rates, will Private Equity, and excluding significant negatively impact net income by $400mm+/- nonr
Slide 18: Agenda: Appendix
Agenda Page Appendix 17 FINANCIAL RESULTS 17
Slide 19: Consumer credit — delinquency trends
Consumer credit — delinquency trends (Excl. purchased credit-impaired loans and WaMu and Commercial Card portfolios) Home Equity delinquency trend ($ in millions) Prime Mortgage delinquency trend ($ in millions) $4,000 $6,500 30 – 150 day delinquencies 30 – 150 day delinquencies 150+ day delinquenci
Slide 20: Coverage ratios are strong
Coverage ratios are strong $ in millions Loan Loss Reserve/Total Loans1 Loan Loss Reserve Nonperforming Loans Loan Loss Reserve/NPLs1 6.00% 500% 38,186 5.00% 35,836 400% 34,161 31,602 32,266 4.00% 300% 29,750 28,520 3.00% 200% 28,350 17,564 27,609 2.00% 17,050 100% 16,179 15,503 14,841 13,441 11,928
Slide 21: IB League Tables
IB League Tables League table results For FY11, JPM ranked: FY11 FY11 FY10 FY10 #1 in Global IB fees Rank Share Rank Share Rank Rank Share Share #1 in Global Debt, Equity & Equity-related Based on fees: #3 in Global Equity & Equity-related Global IB fees1 1 8.1% 1 7.6% #1 in Global Long-te
Slide 22: Notes on non-GAAP & other financial measures
Notes on non-GAAP & other 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
Slide 23: 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