Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Investor Day (February 2019)
19 slides from Jp Morgan Chase &'s investor day presentation, Feb 26, 2019
Slide 1: Commercial Banking
\ COMMERCIAL \ BANKING February 26, 2019 FIRM OVERVIEW CORPORATE & INVESTMENT BANK “a ™ CONSUMER & COMMUNITY BANKING ™~ a ASSET & WEALTH MANAGEMENT a _- PD COMMERCIAL BANKING , , JPMORGAN CHASE & CO,
Slide 2: Commercial Banking – a proven business model
Commercial Banking – a proven business model Clients at the center of everything we do Client and community focus Coverage strategically segmented to best serve our clients Local delivery and decision-making, with deep sector expertise Industry-leading, broad-based capabilities Competing fro
Slide 3: Ten year retrospective – consistent investment and disciplined growth
Ten year retrospective – consistent investment and disciplined growth 2008 2018 10-year CAGR Expanded client coverage $9.1 Added 67 locations and Revenue ($B) $4.8 7% ~650 bankers since 20081 Enabled our team Developed training and technology to help $4.2 our people better serve clients Net income (
Slide 4: Executing our organic Middle Market expansion strategy
Executing our organic Middle Market expansion strategy Expansion market revenue ($mm) $1,000 $649 $521 $412 $332 $354 $298 $234 $139 $53 2010 2011 2012 2013 2014 2015 2016 2017 2018 LT Target 2010-18 CAGR Clients (#) 820 1,100 1,360 1,470 1,670 1,970 2,220 2,360 2,750 16% Loans ($B, avg.) $0.9 $2.7
Slide 5: Illustrative market penetration
Value in new markets will be realized over time 39 MSAs added since 20081 Illustrative market penetration Top 50 MSAs with Chicago, 27 <10 years MMBSI presence1 Columbus, Dallas, 9 MSAs Houston, Charlotte, New York City 11 MSAs Los Angeles, Kansas City, Miami, 4 MSAs Nashville, San Francisco, 6 MSAs
Slide 6: Tremendous opportunity to grow Middle Market client franchise
Tremendous opportunity to grow Middle Market client franchise Middle Market Banking & Specialized Industries market opportunity 116 MMBSI locations1 Prospective MMBSI 38k clients1 Top 100 MSAs in 70 Middle Market footprint U.S. GDP within ~70% MSA presence2 Prospect density4 MMBSI footprint MMBSI ma
Slide 7: Replicating our proven CB model internationally
Replicating our proven CB model internationally Market opportunity Expanding internationally in CCBSI3 $4T Cumulative foreign direct investment in the U.S.1 $146T Annual wholesale cross-border payments value2 Annual wholesale treasury services revenue $231B outside of North America2 Targeting non-U.
Slide 8: Specialized industries model drives superior value and risk management
Specialized industries model drives superior value and risk management ~60% of clients within specific industry coverage Financial Franchise Heavy Higher Agribusiness Apparel Beverage Energy Healthcare Institutions Finance Equipment Education Technology & Media and Multinational Life Government Nonp
Slide 9: Unmatched ability to support our clients as they grow
Unmatched ability to support our clients as they grow Diversify supply sourcing Trade finance Single-use accounts Fund growth Seek liquidity Asset-based lending EPP / ESOP / IPO Syndicated lending Private banking Equipment finance Manage operations 1 Build flagship store Liquidity
Slide 10: CB provides differentiated treasury solutions to drive client value
CB provides differentiated treasury solutions to drive client value Investing across the end-to-end treasury management continuum… New integrated solutions Improved data and analytics Enhanced digital capabilities Advanced fraud protection Cohesive delivery of Better decision making Increased connec
Slide 11: Delivering the best investment bank to CB clients
Delivering the best investment bank to CB clients Commercial Banking gross investment banking revenue1 ($B) JPMC N.A. IB fees $3.0 39% represented by CB clients2 $2.5 $2.4 $2.3 $2.2 $2.0 $1.7 $1.6 $1.4 $1.3 $1.2 $1.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 LT Target 10 1 Represents to
Slide 12: Positioning for continued long-term success in CRE
Positioning for continued long-term success in CRE Market leading position… … driven by intense client focus #1 multifamily lender in the U.S.1 Speed and certainty of execution Real estate banking with top-tier developers, institutional investors and owners Simplicity and digital delivery Financed 2
Slide 13: Consistent risk focus and smart growth across our portfolio
Consistent risk focus and smart growth across our portfolio Average loans by client segment ($B) Rigorous client selection CAGR 1 C&I CRE $206 7% $198 $179 Market and industry expertise $106 9% $102 Underwriting built on $90 experience and analytics Through-the-cycle discipline $96 $99 5% $89 Downtu
Slide 14: Maintaining strong risk discipline – C&I
Maintaining strong risk discipline – C&I Portfolio summary Net charge-off performance Diversified across industries and regions 81% of non-investment grade exposure is secured1 Commercial Banking 84% of loan facilities are bilateral or JPMC-led2 Peer average4 43% of exposure underwritten wit
Slide 15: Maintaining strong risk discipline – CRE
Maintaining strong risk discipline – CRE Portfolio summary Net charge-off performance 71% of loans in Commercial Term Lending Secured by stabilized multifamily properties 4.0% Commercial Banking in supply-constrained markets Peer average2 New originations remain high quality; LTV ratio of 49%,
Slide 16: Driving efficiency while continuing to invest in the franchise
Driving efficiency while continuing to invest in the franchise Illustrative overhead ratio walkforward 37% 35% +/- 2018 Medium-term Target Expense discipline Location strategy Investments Maintaining broad expense Optimizing domestic footprint and Maintaining robust focus and management leveraging o
Slide 17: 2018 results reflect consistent, strong execution
2018 results reflect consistent, strong execution Franchise strength Financial performance 2016 2017 2018 2016 2017 2018 1,766 1,922 $7.5 $8.6 $9.1 1,642 Bankers1 Revenue ($B) 197 226 $3.5 $4.2 171 $2.7 Client calls (000s)2 Net income ($B) 1,062 1,232 9 911 New relationships2 NCO rate (bps) 2 3 $174
Slide 18: Financial targets
Financial targets 2018 2013-2018 Target Middle Market $649mm 17% CAGR $1.0B Execute growth expansion initiatives Investment banking1 $2.5B 8% CAGR $3.0B (long-term revenue targets) International2 $400mm 10% CAGR $1.0B Maintain expense discipline Overhead ratio 37% 39% avg. 35% +/- (medium-term) Opti
Slide 19: Why clients choose us
Why clients choose us Exceptional Coverage designed Long-term team around our clients partner Consultative approach Local coverage Continued capital support Deep client knowledge Industry specialization Substantial investment Unmatched solutions Superior client Safety and capabilities experience and