Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q3 2020 Earnings Presentation
15 slides from Jp Morgan Chase &'s earnings presentation, Oct 13, 2020
Slide 1: 3Q20 Financial Results
3Q20 Financial Results October 13, 2020
Slide 2: 3Q20 Financial highlights
3Q20 Financial highlights ROTCE1 CET1 capital ratios2 Net payout LTM 3 19% Std. 13.0%; Adv. 13.8% 97% 3Q20 net income of $9.4B and EPS of $2.92 Managed revenue of $29.9B 4,5 Expense of $16.9B 5 and managed overhead ratio of 56%4 Balance sheet Loans6,7: average loans of $991B up 1% YoY and
Slide 3: 3Q20 Financial results
3Q20 Financial results1 $B, except per share data $ O/(U) 3Q20 2Q20 3Q19 Net interest income $13.1 ($0.8) ($1.2) Noninterest revenue2 16.8 (3.0) 1.2 Managed revenue1,2 $B 3Q20 2Q20 3Q19 29.9 (3.9) (0.1) Net charge-offs $1.2 $1.6 $1.4 Expense2 Reserve build/(release) (0.6) 8.9 0.1 16.9 (0.1) 0.5 Cred
Slide 4: 3Q20 Reserves
3Q20 Reserves Allowance for credit losses ($B)1 CECL adoption 1H20 3Q20 12/31/2019 impact Build/(release) 6/30/2020 Build/(release) 9/30/2020 Consumer Card $5.7 $5.5 $6.7 $17.8 $0.0 $17.8 Home Lending 1.9 0.1 1.2 3.2 (0.3) 2.9 Other Consumer2 0.7 0.3 0.9 1.9 (0.1) 1.8 Total Consumer 8.3 5.9 8.8 22.9
Slide 5: Update on payment deferrals
Update on payment deferrals Consumer loans with payment deferral ($mm) 6/30/2020 9/30/2020 % of accounts Loan balance Loan balance % of who exited with payment with payment loan class payment deferral deferral deferral balance1 and are current2 Residential real estate (including third-party loans se
Slide 6: Fortress balance sheet
Fortress balance sheet $B, except per share data 3Q20 2Q20 3Q19 Risk-based capital metrics1 CET1 capital $198 $191 $188 Basel III Standardized CET1 capital ratio 13.0% 12.4% 12.3% Risk-weighted assets $1,517 $1,541 $1,528 Basel III Advanced CET1 capital ratio 13.8% 13.2% 13.1% Risk-weighted assets $
Slide 7: Consumer & Community Banking
Consumer & Community Banking 1 $mm Financial performance $ O/(U) Net income of $3.9B, down 9% YoY 3Q20 2Q20 3Q19 Revenue of $12.8B, down 9% YoY 2 Revenue $12,755 $538 ($1,203) Consumer & Business Banking 5,557 450 (1,225) Expense of $6.8B, down 4% YoY, predominantly driven by lower Home Lendin
Slide 8: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $4.3B, up 52% YoY; revenue of $11.5B, up 21% 3Q20 2Q20 3Q19 Banking revenue Revenue $11,503 ($4,849) $1,981 Investment Banking revenue 2,087 (1,314) 216 IB revenue of $2.1B, up 12% YoY Wholesale Payments 1,289 (67) (7
Slide 9: Commercial Banking
Commercial Banking 1 $mm Financial performance $ O/(U) Net income of $1.1B, up 15% YoY 3Q20 2Q20 3Q19 Revenue of $2.3B, flat YoY Revenue $2,285 ($107) $11 Middle Market Banking 877 11 (48) Net interest income of $1.5B, down 5% YoY, driven by lower Corporate Client Banking 807 (52) 40 deposit m
Slide 10: Asset & Wealth Management
Asset & Wealth Management1 $mm Financial performance $ O/(U) Net income of $877mm, up 31% YoY 3Q20 2Q20 3Q19 Revenue of $3.7B, up 5% YoY Revenue $3,737 $127 $169 Asset Management 1,924 144 108 Higher deposit and loan balances, along with higher Wealth Management 1,813 (17) 61 management fees a
Slide 11: Corporate
Corporate1 $mm Financial performance $ O/(U) Revenue 3Q20 2Q20 3Q19 Net revenue was a loss of $339mm, down $1.0B YoY, driven by Revenue ($339) $415 ($1,031) lower net interest income, largely on lower rates, including the Expense 719 572 438 Credit costs 96 92 96 impact of faster prepayments on mo
Slide 12: Outlook
Outlook1 Firmwide Expect FY2020 net interest income to be ~$55B, market dependent Expect FY2020 adjusted expense of ~$66B 1 See notes 1 and 3 on slide 12 11
Slide 13: Notes
Notes 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 resu
Slide 14: Notes
Notes Additional notes on slide 6 – Consumer & Community Banking 3. Actual numbers for all periods, not over/(under) 4. See note 11 on slide 12 5. Includes the impact of loans originated under the PPP. For further information, see page 12 of the Earnings Release Financial Supplement 6. Included $396
Slide 15: 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