Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — 4Q16 Earnings Presentation
20 slides from Jp Morgan Chase &'s earnings presentation, Jan 13, 2017
Slide 1: Financial Results 4Q16
F I N AN C I A L R E S U LT S 4Q16 January 13, 2017
Slide 2: 4Q16 Financial highlights
4Q16 Financial highlights ROTCE1 Common equity Tier 12 Net payout LTM3 14% 12.2% 65% 4Q16 net income of $6.7B and EPS of $1.71 Managed revenue of $24.3B4 Adjusted expense of $13.6B5 and adjusted overhead ratio of 56%5 Fortress balance sheet Average core loans6 up 12% YoY and 3% QoQ Basel
Slide 3: 4Q16 Financial results
4Q16 Financial results1 $B, excluding EPS $ O/(U) 4Q16 3Q16 4Q15 Net interest income $12.1 $0.2 $0.6 Noninterest revenue 12.3 (1.3) – Managed revenue 1 24.3 (1.2) 0.6 Change in reserves Expense 4Q16: $(416)mm 13.8 (0.6) (0.4) 4Q15: $187mm Credit costs 0.9 (0.4) (0.4) Reported net income $6.7 $0.4 $1
Slide 4: Full year 2016 financial results
Full year 2016 financial results1 $B, excluding EPS $ O/(U) FY2016 FY2015 FY2015 Net interest income $47.3 $44.6 $2.7 Noninterest revenue 51.9 52.0 (0.2) Managed revenue 1 99.1 96.6 2.5 Change in reserves Expense FY16: $669mm 55.8 59.0 (3.2) FY15: $(259)mm Credit costs 5.4 3.8 1.5 Reported net incom
Slide 5: Fortress balance sheet and returns
Fortress balance sheet and returns $B, except per share data 4Q16 3Q16 4Q15 Basel III Advanced Fully Phased-In1 CET1 4Q16 Basel III $182 $181 $173 Standardized Fully CET1 ratio Phased-In of 12.3%1 12.2% 11.9% 11.6% Tier 1 capital $207 $207 $199 Tier 1 capital ratio 13.9% 13.6% 13.3% Total capital $2
Slide 6: Consumer & Community Banking
Consumer & Community Banking1 $mm Financial performance $ O/(U) Net income of $2.4B, down 2% YoY 4Q16 3Q16 4Q15 Revenue of $11.0B, down 2% YoY, driven by Card new Revenue $11,019 ($309) ($203) account origination costs, largely offset by higher NII on Consumer & Business Banking 4,774 55 187 vol
Slide 7: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $3.4B on revenue of $8.5B 4Q16 3Q16 4Q15 ROE of 20%; 17% excluding the impact of tax benefits, credit Corporate & Investment Bank revenue $8,461 ($994) $1,392 costs and legal expense5 Investment banking revenue 1,487 (2
Slide 8: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Net income of $687mm, up 25% YoY and down 12% QoQ 4Q16 3Q16 4Q15 Revenue 2 $1,963 $93 $203 Record revenue of $2.0B, up 12% YoY and 5% QoQ Middle Market Banking 764 48 70 Net interest income of $1.4B, up 17% YoY and 5% QoQ Corporate Client B
Slide 9: Asset Management
Asset Management1 $mm Financial performance $ O/(U) Net income of $586mm, up 16% YoY and up 5% QoQ 4Q16 3Q16 4Q15 Revenue $3,087 $40 $42 Revenue of $3.1B, up 1% YoY and up 1% QoQ Global Investment Management 1,550 53 (65) Expense of $2.2B, down 1% YoY and up 2% QoQ Global Wealth Management 1,5
Slide 10: Corporate
Corporate1 $mm Financial performance $ O/(U) Treasury and CIO 4Q16 3Q16 4Q15 Net loss of $197mm, compared to a net loss of $208mm in 3Q16 Treasury and CIO ($197) $11 ($335) Other Corporate Other Corporate (144) (187) (228) Net loss of $144mm Net income ($341) ($176) ($563) 1 See note 1 on slide
Slide 11: Outlook
Outlook Firmwide Commercial Banking Expect 1Q17 Firmwide net interest income to be up Expect 1Q17 CB expense to be $775mm+/- modestly QoQ Consumer & Community Banking Asset Management Expect 1Q17 CCB expense to be up by ~$150mm QoQ Expect 1Q17 AM revenue to be slightly <$3B FINANCIAL RESULTS
Slide 12: Agenda
Agenda Page Appendix 11 FINANCIAL RESULTS
Slide 13: Select leadership positions
Select leadership positions Consumer & Community Banking Corporate & Investment Bank Consumer & Business Banking League table results – wallet share FY2016 FY2015 Deposit volume growing at more than twice the industry Rank Share Rank Share growth rate1 Based on fees 7 : Largest active mobile cus
Slide 14: Consumer credit – Delinquency trends
Consumer credit – Delinquency trends1 Home equity delinquency trend ($mm) Residential mortgage delinquency trend ($mm)2 $2,500 $4,000 30 – 149 day delinquencies 30 – 149 day delinquencies 150+ day delinquencies $3,500 150+ day delinquencies $2,000 $3,000 $1,500 $2,500 $2,000 $1,000 $1,500 $1,000 $50
Slide 15: Mortgage Banking and Card Services – Coverage ratios
Mortgage Banking and Card Services – Coverage ratios1 Mortgage Banking and Card Services credit data ($mm) O/(U) 4Q16 3Q16 4Q15 4Q15 Mortgage Banking (NCI) Net charge-offs $51 $49 $59 ($8) NCO rate 0.10% 0.10% 0.13% (3) bps Allowance for loan losses $1,328 $1,488 $1,588 ($260) 2 ALL/annualized NCOs
Slide 16: Firmwide – Coverage ratios
Firmwide – Coverage ratios1 $mm $mm 3.00% 400% Loan loss reserve/Total loans1 Loan loss reserve Nonperforming retained Loan loss reserve/NPLs1 loans 300% 2.00% 200% 1.00% 14,185 14,065 13,915 13,466 13,994 14,227 14,204 13,776 100% 13,555 7,017 6,921 6,645 6,616 6,303 7,367 7,178 7,059 6,721 0.00% 0
Slide 17: Notes
Notes 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, including the overhead ratio, and the results of the lines of business on a “managed” basis, which are non-GAAP financial measures. The Firm’s definit
Slide 18: Notes
Notes Additional Notes on slide 5 – Consumer & Community Banking 2. Actual numbers for all periods, not over/(under) 3. Includes predominantly Business Banking loans as well as deposit overdrafts 4. Firmwide mortgage origination volume was $33.5B, $30.9B and $24.7B, for 4Q16, 3Q16 and 4Q15, respecti
Slide 19: Notes
Notes Notes on slide 11 – Select leadership positions 1. Based on FDIC 2016 Summary of Deposits survey per SNL Financial – excludes branches with greater than $500mm of deposits or identified as non-retail 2. Based on disclosures by peers as of 3Q16 3. Based on Inside Mortgage Finance as of 3Q16 for
Slide 20: 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