Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Investor Day (February 2018)
111 slides from Jp Morgan Chase &'s investor day presentation, Feb 27, 2018
Slide 1: JPMorgan Chase Strategic Update
J P M O R G A N C H A S E S T R A T E G I C U P D A T E Marianne Lake, Chief Financial Officer February 27, 2018
Slide 2: Agenda
J P M C I N T E R N A L U S E O N L Y Agenda Page Operating from a position of strength 1 8 Digital everything 31 Business strategy – performance and updates Consumer & Community Banking Corporate & Investment Bank Commercial Banking Asset & Wealth Management 32 39 45 49 Outlook 54 Reference materia
Slide 3: Proven operating model – positioned for success
J P M C I N T E R N A L U S E O N L Y O P E R A T I N G F R O M A P O S I T I O N O F S T R E N G T H Proven operating model – positioned for success Complete Diversified Global Scale Mobile first – digital everything – multi-channel delivery Long-term strategic focus on growth and profitability Cus
Slide 4: Our brands have never been stronger
J P M C I N T E R N A L U S E O N L Y O P E R A T I N G F R O M A P O S I T I O N O F S T R E N G T H 1 Note: For footnoted information, refer to slide 77 Our brands have never been stronger J.P. Morgan and Chase ■ 2017 Bank “Brand of the Year”4 ■ #1 in Retail Banking for five years in a row ■ #1 in
Slide 5: Attractive footprint with strong positioning across the U.S. and globally
J P M C I N T E R N A L U S E O N L Y Attractive footprint with strong positioning across the U.S. and globally Serving our customers across channels and geographies O P E R A T I N G F R O M A P O S I T I O N O F S T R E N G T H National footprint across our businesses Commitment and resources to b
Slide 6: Strong absolute and relative performance
J P M C I N T E R N A L U S E O N L Y 6% 2% 5% 7% 5% 7% JPM BAC WFC C GS MS $22 $17 $15 $17 $8 $5 JPM BAC WFC C GS MS 13.6% 11.1% 11.3% 8.1% 11.3% 11.2% JPM BAC WFC C GS MS 13% 23% (14%) 13% 21% 28% JPM BAC WFC C GS MS 56% 62% 65% 57% 65% 73% JPM BAC WFC C GS MS $104 $88 $90 $72 $32 $38 JPM BAC WFC
Slide 7: Continue to operate from a position of strength
J P M C I N T E R N A L U S E O N L Y Continue to operate from a position of strength…across all key dimensions Financial overview O P E R A T I N G F R O M A P O S I T I O N O F S T R E N G T H Note: For footnoted information, refer to slide 80 2017 2016 DFAST loss rates7 5.7% 6.1% Adj. overhead ra
Slide 8: Capital has reached an inflection point
J P M C I N T E R N A L U S E O N L Y Capital has reached an inflection point Medium-term expectations O P E R A T I N G F R O M A P O S I T I O N O F S T R E N G T H Expect capital to move down within 11-12.0% corridor in the medium-term Capital outlook 2017 Medium-term T h o u s a n d s 2017 Mediu
Slide 9: Strong U.S. economic growth supports recalibration of GSIB coefficients
J P M C I N T E R N A L U S E O N L Y O P E R A T I N G F R O M A P O S I T I O N O F S T R E N G T H Strong U.S. economic growth supports recalibration of GSIB coefficients Upward pressure on GSIB scores 4Q16 3Q17 U.S. economy has grown over 11%1 – no change to fixed coefficients – no increase in
Slide 10: Digital everything
J P M C I N T E R N A L U S E O N L Y Digital everything 8
Slide 11: Why digital matters
J P M C I N T E R N A L U S E O N L Y Why digital matters S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S Digital capabilities are critical to our business Our customers demand digital capabilities Importance of digital leadership 57% 65% of Millennials would change their ban
Slide 12: The business case for digital is compelling
J P M C I N T E R N A L U S E O N L Y The business case for digital is compelling Why digital matters S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S Increased customer satisfaction +19% Net Promoter Score (NPS)1,2,3 +118% higher card spend1,2,5 85% of wealthy individuals use
Slide 13: The customer is at the center of everything we do
J P M C I N T E R N A L U S E O N L Y The customer is at the center of everything we do Digital strategy S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S Unique scale advantage Full set of products and services Flexible engagement model and multi-channel delivery Deliverin
Slide 14: Enhancing the client onboarding process across the bank
J P M C I N T E R N A L U S E O N L Y Enhancing the client onboarding process across the bank Make it easy to become a client – and seamless to add products and services S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S Creating STREAMLINED and SIMPLIFIED client documentation +
Slide 15: Customers rely on Chase digital offerings throughout their daily lives
J P M C I N T E R N A L U S E O N L Y Customers rely on Chase digital offerings throughout their daily lives Providing choice, security, ease and personalization S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S Buy groceries… …with digital wallets Get cash… …using a Chase eATM
Slide 16: Innovative digital solutions across products and asset classes
J P M C I N T E R N A L U S E O N L Y We seek to offer innovative digital solutions across products and asset classes Portfolio of innovation S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S Chase Business Quick Capital – powered by OnDeck software – delivers small business cu
Slide 17: Investing significantly in Digital Wealth Management solutions
J P M C I N T E R N A L U S E O N L Y We are investing significantly in Digital Wealth Management solutions Building tailored solutions S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S These capabilities will be fully available in 2018 with ongoing enhancements Partner with ad
Slide 18: Digital continuum for businesses of all sizes
J P M C I N T E R N A L U S E O N L Y S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S We provide a digital continuum for businesses of all sizes and complexities Corporate clients Multi-channel access to broad-based capabilities Online account opening and self-service Real ti
Slide 19: Electronification is integral to our Markets business model
J P M C I N T E R N A L U S E O N L Y S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S Electronification is integral to our Markets business model Institutional clients – secular trends driving electronification FY 2017 Electronification Equities1 Macro2 Spread3 % Electronic c
Slide 20: Transforming our Markets business to deliver an end-to-end digital experience
J P M C I N T E R N A L U S E O N L Y S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S Through the clients’ channel of choice… Voice Online APIs Mobile 3rd Party We are transforming our Markets business to deliver an end-to-end digital experience Capabilities across the lifecy
Slide 21: Digital solutions designed to meet all customers' needs
J P M C I N T E R N A L U S E O N L Y Our digital solutions are designed to meet all of our customers’ needs S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S Security Personalization Choice Ease of doing business Investing to deliver differentiated, personalized experiences at
Slide 22: Payments everywhere
J P M C I N T E R N A L U S E O N L Y Payments everywhere 20
Slide 23: A rapidly evolving payments landscape creates opportunities
J P M C I N T E R N A L U S E O N L Y A rapidly evolving payments landscape creates opportunities across our businesses Industry overview and JPMorgan Chase position S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S Market growth 120+ Currencies to execute payments #1 USD clear
Slide 24: Well-positioned to deliver modern payments experiences
J P M C I N T E R N A L U S E O N L Y We are well-positioned to deliver modern payments experiences Consumer S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S We have invested in our payments value chain for over a decade… Merchants / Partners Consumers 2009/2010 – 2016/2017 Si
Slide 25: Simplifying consumer and small business payments
J P M C I N T E R N A L U S E O N L Y Small businesses Software providers Instant onboarding for Chase payment processing with fast payouts Integration with merchants’ preferred software solutions, both online and in- store Simple integration of payments into software Access to Chase’s netwo
Slide 26: Strong foundation to drive habituation and personalization
J P M C I N T E R N A L U S E O N L Y We have a strong foundation to drive habituation and personalization Consumer – moving from transactional support to personalized, integrated experiences S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S P2P, debit, credit, Bill Pay, ACH,
Slide 27: Four pillars of competitive advantage in wholesale payments
J P M C I N T E R N A L U S E O N L Y We have built our competitive advantages on four pillars Wholesale Evolving client needs… Focus on client experience and ability to adapt to client needs Streamline and simplify on-boarding Multi-channel New products, functions and capabilities Scalable, c
Slide 28: Complete offering across the payments value chain
J P M C I N T E R N A L U S E O N L Y We have a complete offering across the payments value chain Innovative client solutions S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S Products and capabilities Real-time reconciliation including track-and-trace for delivery confirmation
Slide 29: Leveraging blockchain to transform correspondent banking
J P M C I N T E R N A L U S E O N L Y Leveraging blockchain technology to transform correspondent banking Interbank Information Network (“IIN”) Remitter Remitter Bank Corres. Bank Corres. Bank Bene. Bank Beneficiary Opaque Costly Slow Manual Future state Shared utility functions Active risk/complian
Slide 30: Positioned to lead the Real-Time Payments market
J P M C I N T E R N A L U S E O N L Y We are positioned to lead the Real-Time Payments market Collaboration driving development of new core payments system Sharing technology capabilities across wholesale and retail Working together with our largest corporate clients to design best in class solu
Slide 31: Protecting stakeholders through robust security and controls
J P M C I N T E R N A L U S E O N L Y FINANCIAL SYSTEMIC ANALYSIS & RESILIENCE CENTER AMERICAS EMEA Protecting the Firm’s stakeholders through robust security and controls Securing everywhere – everything we do, anywhere we operate S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N
Slide 32: Uniquely positioned to deliver holistic payments solutions
J P M C I N T E R N A L U S E O N L Y We are uniquely positioned to deliver holistic payments solutions S T R A T E G I C O V E R V I E W – D I G I T A L A N D P A Y M E N T S Security Personalization Choice Ease of doing business Complete set of assets, leveraging core platforms and businesses Mark
Slide 33: Business strategy: Performance and updates
J P M C I N T E R N A L U S E O N L Y Business strategy Performance and updates 31
Slide 34: Consumer & Community Banking – power of our Consumer franchise
J P M C I N T E R N A L U S E O N L Y Consumer & Community Banking – the power of our Consumer franchise B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Diversified platform with relationships with ~50% of U.S. households 61 million Chase households1 4 million Small busines
Slide 35: Leading industry deposit growth
J P M C I N T E R N A L U S E O N L Y B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Leading industry deposit growth driven by multi-channel engagement model CCB – Consumer Banking Retail deposit growth2 #1 8.7% share ▲ ~200bps CBB average deposits $626B ▲ 60 % Industry gr
Slide 36: Transforming our physical footprint
J P M C I N T E R N A L U S E O N L Y We continue to transform our physical footprint to sustain strong growth CCB – Consumer Banking – branch network B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S $1T Deposit market ~400 New branches 15-20 New markets Next 5 years Branch
Slide 37: Card and Merchant Services growth
J P M C I N T E R N A L U S E O N L Y Integrated payments experience Credit Card NPS1 ▲ 18 points Credit Card sales market share4 22.4% ▲ ~190bps We continue to grow and innovate our credit card portfolio CCB – Card and Merchant Services B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U
Slide 38: Higher quality, less volatile home lending business
J P M C I N T E R N A L U S E O N L Y We continue to build a higher quality and less volatile home lending business CCB – Home Lending B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Avg. mortgage loans $241B ▲ 30% WFC: (1)%; BAC: (25)% USB: +13% Jumbo originator #2 11.3% s
Slide 39: Growing auto originations
J P M C I N T E R N A L U S E O N L Y B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S We continue to grow our auto originations and deepen our relationships CCB – Auto $23B $33B 2012 2017 Manufacturing partners Chase indirect Chase direct Our origination growth has been dri
Slide 40: Business Banking market share growth
J P M C I N T E R N A L U S E O N L Y Sales and market share continue to increase for small business cards B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Significant opportunity to grow market share and deepen relationships CCB – Business Banking We have seen strong gains
Slide 41: Corporate & Investment Bank – steady, consistent strategy
J P M C I N T E R N A L U S E O N L Y Corporate & Investment Bank – steady, consistent strategy Leading client franchise B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Sustaining our lead across three horizons #2 in TS revenue3 #3 in AUC4 #1 Global, North America, EMEA IB
Slide 42: CIB Markets – continue to return above cost of capital
J P M C I N T E R N A L U S E O N L Y B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Continue to return above cost of capital CIB – Markets Fixed Income Overall Client activities generate stable revenue $18.9 2017 $21.0 2016 Client Solutions Financing- related Flow Markets
Slide 43: CIB Markets – preserve leading positions
J P M C I N T E R N A L U S E O N L Y B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Preserve our leading positions and deepen our share CIB – Markets Number of JPM top 3 positions across 31 Markets categories2 Key priorities Defend our leadership positions Leverage ou
Slide 44: CIB Investment Banking – progress in M&A
J P M C I N T E R N A L U S E O N L Y B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Significant progress in M&A – preserving strong positions in ECM and DCM CIB – Investment Banking $14 $14 $18 7.1% 7.4% 7.1% 2012 2016 2017 $20 $25 $24 6.4% 8.3% 8.6% 2012 2016 2017 M&A in
Slide 45: CIB Treasury Services
J P M C I N T E R N A L U S E O N L Y B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Growth through investments in innovative product and platform offerings CIB – Treasury Services 1 Coalition. 2016 and preliminary 2017 regional rank analysis based on peer-set: BAML, BNPP,
Slide 46: CIB Securities Services
J P M C I N T E R N A L U S E O N L Y B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Investments have improved client experience – positioned for growth CIB – Securities Services 2016 2017 Net Interest Income Fees Securities Services performance Key priorities Delivering s
Slide 47: Commercial Banking – building around our clients
J P M C I N T E R N A L U S E O N L Y B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Commercial Banking – building our business around our clients Leading client franchise #1 U.S. multifamily lender2 1 Based on total count of client-facing employees 2 The rank is based on
Slide 48: Commercial Banking – commitment to growth
J P M C I N T E R N A L U S E O N L Y B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Commitment to growth – investing to add great clients and deepen relationships Commercial Banking Increased calling intensity (000s)2 Banker count up 100+ YoY1 Working to deliver value to
Slide 49: Commercial Banking – unmatched capabilities
J P M C I N T E R N A L U S E O N L Y Deposits ~80% of CB clients have deposit accounts with JPMC2 B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Unmatched capabilities – investing to deliver more value to clients Commercial Banking Traditional middle market Broad-based ca
Slide 50: Commercial Banking – lending
J P M C I N T E R N A L U S E O N L Y B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Lending – deliver smart growth across our C&I and CRE loan portfolio Commercial Banking $53 $90 $102 2012 2016 2017 Average CRE loans outstanding ($B) $68 $89 $96 2012 2016 2017 Average C&
Slide 51: Asset & Wealth Management – focus on client outcomes
J P M C I N T E R N A L U S E O N L Y Asset & Wealth Management – focus on client outcomes B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Note: For footnoted information, refer to slide 97 Leading client franchise 83%1 5 yr Investment performance $3.1T2 client assets #1 Pr
Slide 52: AWM – continued strong financial performance
J P M C I N T E R N A L U S E O N L Y 17% Return on equity $9.4B Net income 56% Overhead ratio B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Continued strong financial performance Asset & Wealth Management Record Client assets (EOP, $T) Revenue ($B) Pretax income ($B) $2.
Slide 53: Leading long-term performance and flows
J P M C I N T E R N A L U S E O N L Y B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Leading long-term performance, consistently strong flows, product innovation JPMC Wealth Management and Asset Management #2 in total flows over past 5 years2 Total 5Y long-term client asse
Slide 54: Complementing client portfolios with banking and liquidity products
J P M C I N T E R N A L U S E O N L Y Complementing client portfolios with banking and liquidity products JPMC Wealth Management and Asset Management B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Note: For footnoted information, refer to slide 99 Growing deposits 2013 201
Slide 55: Hiring client advisors and increasing productivity
J P M C I N T E R N A L U S E O N L Y Hiring client advisors and increasing productivity JPMC Wealth Management and Asset Management B U S I N E S S P E R F O R M A N C E A N D S T R A T E G Y U P D A T E S Note: For footnoted information, refer to slide 100 Continued investment in growing client ad
Slide 56: Outlook
J P M C I N T E R N A L U S E O N L Y Outlook Power of the franchise 54
Slide 57: Operating environment
J P M C I N T E R N A L U S E O N L Y Operating environment Outlook O U T L O O K Expect favorable global macro and credit trends to benefit our operating performance Global macro trends Credit environment Global GDP growth continues to be above trend Consumer and business confidence, as well as
Slide 58: Fortress balance sheet – core loans
J P M C I N T E R N A L U S E O N L Y Fortress balance sheet – core loans Outlook O U T L O O K 2014 2015 2016 2017 CCB AWM CB CIB Average core loans ($B) $597 $671 $769 $830 Expect 2018 core loan growth ex-CIB of 6-7% 16% 7% 12% Core loan growth (ex. CIB) ’14 -’17 CAGR ’16 -’17 YoY 9% 9% 11% 9% 13%
Slide 59: Fortress balance sheet – deposits
J P M C I N T E R N A L U S E O N L Y Fortress balance sheet – deposits Outlook O U T L O O K Note: For footnoted information, refer to slide 101 Continue to focus on growth in retail and operating deposits Dec'14 2015 2016 2017 CCB AWM Operating Non-Operating Other Average deposits ($T) $1.4 $1.3 $
Slide 60: Quantitative tightening and rate hikes will likely cause deposit migration
J P M C I N T E R N A L U S E O N L Y 20.0% 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% - (2.5%) (5.0%) (25.0%) (20.0%) (15.0%) (10.0%) (5.0%) - 5.0% 10.0% 15.0% 20.0% 25.0% '99 '00 '01 '02 '03 '04 '05 '06 14.1% 8.5% ~0% 3.9% (1.5%) (0.9%) Whole- sale Total Retail Large Small Retail¹ JPM Industry Both qu
Slide 61: Net interest income – well positioned
J P M C I N T E R N A L U S E O N L Y O U T L O O K Net interest income – well positioned on strength of balance sheet and rising rates Outlook Longer-term NII growth will be driven mostly by balance sheet growth and mix Forward looking NII drivers Deposit repricing Markets NII Balance sheet gro
Slide 62: Low rates paid beta and deposit repricing
J P M C I N T E R N A L U S E O N L Y Low rates paid beta partly reflects lack of intra-product migration thus far in the cycle Outlook O U T L O O K 1 2004 cycle dates: 06/04-06/06; quarterly results shown above. Excludes earnings credit rate (“ECR”) impact 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 0.0 0
Slide 63: Noninterest revenue trajectory
J P M C I N T E R N A L U S E O N L Y ($0.4) ($0.9) ($0.9) $0.4 $2.2 $51.9 $52.2 Noninterest revenue ($B) Noninterest revenue trajectory Outlook O U T L O O K 2016 20172016 2017 Cash AUM LT AUM Markets revenue IB fees 2016 2017 2016 20172016 2017Debit sales volume CWM investments 2016 2017 AWM AUM C
Slide 64: Adjusted expense – continuing to fund investments and growth
J P M C I N T E R N A L U S E O N L Y 2017 Growth / efficiencies Investments Auto lease depreciation 2018 Adjusted expense2 ($B) Adjusted expense – continuing to fund investments and growth Outlook O U T L O O K Driving efficiencies while accelerating and increasing investments 2018 technology spend
Slide 65: Credit – net charge-offs
J P M C I N T E R N A L U S E O N L Y Credit – net charge-offs Outlook O U T L O O K 1 Excludes the impact of purchased credit-impaired (“PCI”) loans. Refer to note 5 on slide 76 Commentary Medium-term outlook relatively benign Expect 2018 and medium-term NCO rates to remain relatively flat acro
Slide 66: Medium-term guidance by LOB
J P M C I N T E R N A L U S E O N L Y Medium-term guidance by LOB Outlook O U T L O O K Up to 300bps potential benefit to Firmwide ROTCE from tax reform Significant uncertainty around how competitive dynamics evolve Expect some benefit to pass to customers over time Medium-term target Revenue
Slide 67: Medium-term pretax earnings simulation
J P M C I N T E R N A L U S E O N L Y Medium-term pretax earnings simulation Outlook O U T L O O K Medium-term pretax simulation ($B) In the medium-term expect ROTCE of ~17% ~100% Net payout ratio ~17% ROTCE ~55% Overhead ratio 11-12% CET1 ratio 2017 Pretax income $40B Medium-term pretax income $44-
Slide 68: Proven operating model – positioned for success
J P M C I N T E R N A L U S E O N L Y Proven operating model – positioned for success O U T L O O K Complete Diversified Global Scale ~100% Net payout ratio ~17% ROTCE ~55% Overhead ratio 11-12% CET1 ratio Leading to Mobile first – digital everything – multi-channel delivery Long-term strategic focu
Slide 69: Reference materials
J P M C I N T E R N A L U S E O N L Y Reference materials 67
Slide 70: Leading client franchises
J P M C I N T E R N A L U S E O N L Y A P P E N D I X Leading client franchises Note: For footnoted information, refer to slides 105-106 Client franchises built over the long-term Relationships with ~50% of U.S. households Industry leading deposit growth12 #1 U.S. credit card issuer13 #1 U.S
Slide 71: LOB performance and guidance
J P M C I N T E R N A L U S E O N L Y LOB performance and guidance A P P E N D I X Performance and guidance 2018 Medium-term (3 years) Long-term (5+ years) Time period legend 2016 2017 Guidance Guidance time period Card Services net revenue rate 11.29% 10.57% 11.25%+/- Overhead ratio 55% 56%
Slide 72: Capital markets funding sources
J P M C I N T E R N A L U S E O N L Y F I X E D I N C O M E Capital markets funding sources Continuing to optimize funding mix Note: Numbers may not sum due to rounding. For footnoted information, refer to slide 107 Secured funding highlights Long-term secured debt $61B FHLB advances $21B cred
Slide 73: HoldCo unsecured long-term debt maturity profile
J P M C I N T E R N A L U S E O N L Y F I X E D I N C O M E JPMorgan Chase & Co. (HoldCo) unsecured long-term debt outstanding Managing maturity profile and TLAC efficiency Note: Numbers may not sum due to rounding; amounts represent the carrying value. For footnoted information, refer to slide 107
Slide 74: HoldCo benchmark issuance
J P M C I N T E R N A L U S E O N L Y F I X E D I N C O M E JPMorgan Chase & Co. (HoldCo) benchmark issuance Reduced issuance requirements as TLAC compliance was achieved 19 10 3 9 12 5 4 6 15 $32 $28 $23 2015 2016 2017 <5 Yrs 5-10 Yrs 10+ Yrs Gross issuance by security type ($B) Gross issuance by c
Slide 75: Firmwide long-term funding outstanding
J P M C I N T E R N A L U S E O N L Y F I X E D I N C O M E Firmwide long-term funding outstanding Note: Numbers may not sum due to rounding. For footnoted information, refer to slide 108 End of period outstanding ($B) 141 143 149 21 20 17 21 24 27 17 12 8 72 80 61 30 33 21 12 13 19 $183 $136 $188 $
Slide 76: TLAC and External LTD requirement summary
J P M C I N T E R N A L U S E O N L Y F I X E D I N C O M E TLAC and External LTD requirement summary Compliance reached in 2017 Note: Numbers may not sum due to rounding 1 Includes ~$15B of debt classif ied as structured notes $17 $154 $168 $160 $6 $19 $6 2017 – 10K disclosure Structured notes, Tru
Slide 77: Wholesale funding sources – purpose and key features
J P M C I N T E R N A L U S E O N L Y F I X E D I N C O M E Wholesale funding sources – Purpose and key features Note: excludes deposits and common equity. For footnoted information, refer to slide 108 Secured Funding Product Typical term Callable Multi- currency TLAC T1/T2 Reg. Cap. LCR NSFR 4 4 As
Slide 78: Notes on non-GAAP financial measures and key performance measures
J P M C I N T E R N A L U S E O N L Y Notes on non-GAAP financial measures and key performance measures N O T E S Notes on non-GAAP financial measures 1. In addition to analyzing the Firm’s results on a reported basis, management review s Firmw ide results, including the overhead ratio, on a “manage
Slide 79: Notes on slide – Our brands have never been stronger
J P M C I N T E R N A L U S E O N L Y Notes on slide 2 – Our brands have never been stronger 1. Tied 2017 Greenwich Quality Leader 2. Tied 2017 Greenwich Quality Leader 3. U.S. Large Corporate Cash Management 4. Chase received the highest numerical Equity Score among bank brands included in the 2017
Slide 80: Notes on slide – Attractive footprint
J P M C I N T E R N A L U S E O N L Y Notes on slide 3 – Attractive footprint with strong positioning across the U.S. and globally 1. North America client assets and client advisors include Asset & Wealth Management (“AWM”) and Chase Wealth Management (“CWM”), with CWM client assets including all CW
Slide 81: Notes on slide – Strong absolute and relative performance
J P M C I N T E R N A L U S E O N L Y Notes on slide 4 – Strong absolute and relative performance N O T E S 1. See note 1 on slide 76 2. GS and MS showing reported revenue 3. Net income, EPS, ROTCE and TBVPS adjusted for the impact of enactment of the TCJA; If also adjusted for the 2Q17 legal benefi
Slide 82: Notes on slide 5
J P M C I N T E R N A L U S E O N L Y N O T E S 1. Reflects Basel III binding Fully Phased-In measure 2. See note 6 on slide 76 3. Global Systemically Important Bank (“GSIB”) 4. Total Loss-Absorbing Capacity (“TLAC”) external long-term debt short-fall 5. Liquidity coverage ratio (“LCR”) and net stab
Slide 83: Notes on slide – Digital capabilities are critical
J P M C I N T E R N A L U S E O N L Y Notes on slide 9 – Digital capabilities are critical to our business N O T E S 1. Deloitte, “Millennials and Wealth Management” – 2015 2. Capgemini, “2014 World Wealth Report” 3. Novantas Customer Knowledge, USA Multi-channel survey; 2015 (N=4,346), 2017 (N=4,35
Slide 84: Notes on slide – Business case for digital
J P M C I N T E R N A L U S E O N L Y Notes on slide 10 – The business case for digital is compelling 1. For digitally engaged households 2. Reflects Consumer Bank; Consumer Bank household channel segments are defined based on the tenure of the household as of the respective time period. For househo
Slide 85: Notes on slide – Client onboarding process
J P M C I N T E R N A L U S E O N L Y Notes on slide 12 – Enhancing the client onboarding process across the bank N O T E S 1. Reflects new-to-bank, multi-product business households after three full months of activity; accounts opened between May through October 2017 vs. 2016 2. Monthly low risk WM
Slide 86: Notes on slide – Customers rely on Chase digital offerings
J P M C I N T E R N A L U S E O N L Y Notes on slide 13 – Customers rely on Chase digital offerings throughout their daily lives N O T E S 1. All data reflects average for the 12 months of 2017. Engagement metrics reflect average number of transactions per active users where active users are defined
Slide 87: Notes on slide – Innovative digital solutions
J P M C I N T E R N A L U S E O N L Y Notes on slide 14 – We seek to offer innovative digital solutions across products and asset classes 1. Reflects accounts opened through Finn 2. Net Promoter Score = % promoters minus % detractors; as of December 2017 3. Comparison relative to mortgages refinance
Slide 88: Notes on slide – Evolving payments landscape
J P M C I N T E R N A L U S E O N L Y Notes on slide 21 – A rapidly evolving payments landscape creates opportunities across our businesses 1. The Boston Consulting Group Global Payments 2016: Competing in Open Seas 2. World Trade Organization. Represents 2016 world-wide imports for merchandise trad
Slide 89: Notes
J P M C I N T E R N A L U S E O N L Y N O T E S 1. Reflects the percentage of the CCB customer population active in each payment category as of October 2017. “Move money” services include all the digital services to send payments (e.g., Wire, Transfer, Bill Pay, and QuickPay with Zelle) and/ or rece
Slide 90: Notes on slide – Consumer franchise
J P M C I N T E R N A L U S E O N L Y Notes on slide 32 – Consumer & Community Banking – the power of our Consumer franchise 1. Reflects November 2017 2. Reflects 4Q17 3. Reflects users of all web and/or mobile platforms who have logged in within the past 90 days 4. Excludes Commercial Card N O T E
Slide 91: Notes on slide – Leading industry deposit growth
J P M C I N T E R N A L U S E O N L Y Notes on slide 33 – Leading industry deposit growth driven by multi-channel engagement model 1. J.D. Power 2017 National Bank Satisfaction Study, September 2017 2. FDIC 2017 Summary of Deposits survey per S&P Global Market Intelligence. Excludes all branches wit
Slide 92: Notes on slide – Credit card portfolio
J P M C I N T E R N A L U S E O N L Y Notes on slide 35 – We continue to grow and innovate our credit card portfolio 1. Net Promoter Score = % promoters minus % detractors 2. Excludes Commercial Card 3. Estimated industry market size reflects disclosed U.S. full-year 2017 Visa, MasterCard, American
Slide 93: Notes on slide – Home lending business
J P M C I N T E R N A L U S E O N L Y Notes on slide 36 – We continue to build a higher quality and less volatile home lending business 1. Net Promoter Score = % promoters minus % detractors 2. Federal Reserve Bank of New York Quarterly Report on Household Debt and Credit, February 2018 release; ref
Slide 94: Notes on slide – Auto originations
J P M C I N T E R N A L U S E O N L Y Notes on slide 37 – We continue to grow our auto originations and deepen our relationships 1. Net Promoter Score = % promoters minus % detractors 2. Experian AutoCount data for full-year 2017; reflects financing market share for new and used loans and leases at
Slide 95: Notes on slide – Grow market share and deepen relationships
J P M C I N T E R N A L U S E O N L Y Notes on slide 38 – Significant opportunity to grow market share and deepen relationships 1. Net Promoter Score = % promoters minus % detractors 2. Barlow Research Associates, Primary Bank Market Share Database as of 4Q17. Rolling eight quarter average of small
Slide 96: Notes on slide – Corporate & Investment Bank
J P M C I N T E R N A L U S E O N L Y Notes on slide 39 – Corporate & Investment Bank – steady, consistent strategy 1. Dealogic as of January 1, 2018 2. Institutional Investor, 2017 3. Source: Coalition. Preliminary 2017 rank analysis for Markets based on Coalition Index (BAML, BARC, BNPP, CITI, CS,
Slide 97: Notes on slide – Return above cost of capital
J P M C I N T E R N A L U S E O N L Y Notes on slide 40 – Continue to return above cost of capital 1. 2017 ROE and revenue exclude the impact of the TCJA in Fixed Income Markets and a fair value loss on a margin loan related to a single cli ent in Equity Markets; 2016 ROE is restated to reflect 2017
Slide 98: Notes on slide – Preserve our leading positions
J P M C I N T E R N A L U S E O N L Y Notes on slide 41 – Preserve our leading positions and deepen our share 1. Coalition. 2017 based on preliminary results. Rank analysis based on Coalition Index (BAML, BARC, BNPP, CITI, CS, DB, GS, HSBC, MS, JPM, SG, and UBS). Market share reflects JPMorgan Chase
Slide 99: Notes on slide – Asset & Wealth Management
J P M C I N T E R N A L U S E O N L Y Notes on slide 49 – Asset & Wealth Management – focus on client outcomes N O T E S 1. The “5 yr Investment performance” analysis represents the proportion of assets in mutual funds that are ranked above their respective peer category median on a 5-year basis as
Slide 100: Notes on slide – Leading long-term performance
J P M C I N T E R N A L U S E O N L Y Notes on slide 51 – Leading long-term performance, consistently strong flows, product innovation N O T E S 1. The “% of 2017 JPMAM long-term mutual fund AUM over peer median” analysis represents the proportion of assets in mutual funds that are ranked above thei
Slide 101: Notes on slide 52 – Banking and liquidity products
J P M C I N T E R N A L U S E O N L Y 1. Pro-forma, reflecting AWM’s Wealth Management business (“WM”) plus CWM investments and CPC deposits 2. Includes assets managed on behalf of other JPMAM investment teams 3. Source: iMoneynet as of February 23, 2018 4. Includes HELOCs and $1.1B of CIO portfolio
Slide 102: Notes on slide – Hiring client advisors
J P M C I N T E R N A L U S E O N L Y Notes on slide 53 – Hiring client advisors and increasing productivity N O T E S Source: Company filings, J.P. Morgan estimates. UBS converted into USD at the average daily 2017 exchange rate for pre -tax income and the spot exchange rate as of December 31, 2017
Slide 103: Notes on slide – Fortress balance sheet – deposits
J P M C I N T E R N A L U S E O N L Y Notes on slide 57 – Fortress balance sheet – deposits N O T E S 1. To ensure consistent comparison over time, years prior to 2017 have been adjusted for certain methodology changes regarding the classification of operating and non-operating deposits 2. Represent
Slide 104: Notes on slide – Deposit migration
J P M C I N T E R N A L U S E O N L Y Notes on slide 58 – Both quantitative tightening and rate hikes will likely cause migration of deposits N O T E S 1. Large time deposit growth has been adjusted for the slope of the yield curve based on regression analysis: large time deposit YoY % change = −0.6
Slide 105: Notes on slide – Noninterest revenue trajectory
J P M C I N T E R N A L U S E O N L Y Notes on slide 61 – Noninterest revenue trajectory N O T E S 1. Includes investments in Sapphire Reserve and other notable items 2. Notable items in Markets exclude revaluation of tax-oriented investments related to the TCJA in 2017 and a fair value loss on a ma
Slide 106: Notes on slide – Adjusted expense
J P M C I N T E R N A L U S E O N L Y Notes on slide 62 – Adjusted expense – continuing to fund investments and growth 1. Growth and efficiencies also include other offsetting non-core items, including benefits associated with the elimination of the FDIC surcharge 2. See note 3 on slide 76 3. Includ
Slide 107: Notes on slide – Leading client franchises
J P M C I N T E R N A L U S E O N L Y Notes on slide 68 – Leading client franchises N O T E S 1. FDIC 2017 Summary of Deposits survey per S&P Global Market Intelligence. Excludes all branches with $500mm+ in deposits withi n the last two years (which are assumed to include a significant level of com
Slide 108: Notes on slide – Leading client franchises (continued)
J P M C I N T E R N A L U S E O N L Y Notes on slide 68 – Leading client franchises N O T E S 13. Based on 2017 sales volume and loans outstanding disclosures by peers (C, BAC, COF, AXP, DFS) and JPMorgan Chase estimates. Sales volume excludes private label and Commercial Card. AXP reflects the U.S.
Slide 109: Notes on Fixed Income Slide – Capital markets funding sources
J P M C I N T E R N A L U S E O N L Y Notes on Fixed Income Slide 70 – Capital markets funding sources 1. The Firm’s obligations under the collateralized commercial paper ("CCP") programs are reported under other borrowed funds ("OBF") and securities loaned or sold under agreements to repurchase ("r
Slide 110: Notes on Fixed Income Slide – Long-term funding outstanding
J P M C I N T E R N A L U S E O N L Y Notes on Fixed Income Slide 73 – Firmwide long-term funding outstanding 1. Includes junior subordinated debt and trust preferred securities 2. Includes $1.8B and $1.5B of student loan securitizations in 2015 and 2016, respectively 3. Includes $0.5B of other secu
Slide 111: Forward-looking statements
J P M C I N T E R N A L U S E O N L Y Forward-looking statements N O T E S 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 ma