Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q3 2014 Earnings Presentation
22 slides from Jp Morgan Chase &'s earnings presentation, Oct 14, 2014
Slide 1: Financial Results 3Q14
October 14, 2014 F I N A N C I A L R E S U L T S 3Q14
Slide 2: Financial highlights
F I N A N C I A L R E S U L T S 3Q14 Financial highlights 1 See note 1 on slide 20 2 See note 2 on slide 20 3 See note 4 on slide 20 4 Basel III Advanced Fully Phased-In refers to the capital rules the Firm will be subject to as of January 1, 2019. See Note 5 on slide 20 5 See note 5 on slide 20 6 S
Slide 3: 3Q14 Financial results
F I N A N C I A L R E S U L T S $ O/(U) 3Q14 2Q14 3Q13 Revenue (FTE)1 $25,159 ($190) $1,279 Credit costs 757 65 1,300 Expense 15,798 367 (7,828) Reported net income/(loss) $5,572 ($413) $5,952 Net income/(loss) applicable to common stockholders 5,135 (438) 5,785 Reported EPS 1.36 (0.10) 1.53 ROE2 10
Slide 4: Fortress balance sheet and returns
F I N A N C I A L R E S U L T S 3Q14 2Q14 3Q13 Basel III Advanced Fully Phased-In2 CET1 $163 $161 $146 CET1 ratio 10.1% 9.8% 9.3% Tier 1 Capital $183 $179 $157 Tier 1 Capital ratio 11.3% 10.9% 10.0% Risk-weighted assets $1,616 $1,641 $1,564 Firm SLR3 5.5% 5.4% NA Bank SLR3 5.7 5.6 NA HQLA4 $572 $576
Slide 5: Consumer & Community Banking – Leadership positions
F I N A N C I A L R E S U L T S Consumer & Community Banking1 Leadership positions $mm Headcount Total headcount12 down ~10,000 YTD and ~27,000 since the end of 2012, on track to exceed prior 2014 guidance by ~3,000 Consumer & Business Banking #1 in deposit growth for the third consecutive year4
Slide 6: Consumer & Community Banking – Consumer & Business Banking
F I N A N C I A L R E S U L T S Consumer & Community Banking Consumer & Business Banking 1 Actual numbers for all periods, not over/(under) Financial performance Key drivers $mm Net income of $914mm, up 20% YoY and 2% QoQ Net revenue of $4.6B, up 5% YoY and 1% QoQ Expense down 1% YoY and flat
Slide 7: Consumer & Community Banking – Mortgage Banking
F I N A N C I A L R E S U L T S Consumer & Community Banking Mortgage Banking Financial performance $mm Mortgage Production pretax income of $74mm Revenues, excl. repurchase, down 33% YoY; – Originations down 48% YoY, but up 26% QoQ Production expense down 43% YoY, reflecting progress on fixed
Slide 8: Consumer & Community Banking – Card, Merchant Services & Auto
F I N A N C I A L R E S U L T S 1 Actual numbers for all periods, not over/(under) 2 Excludes Commercial Card 3 See note 6 on slide 20 Consumer & Community Banking Card, Merchant Services & Auto $mm Financial performance Key drivers Net income of $1.1B, down 10% YoY Net income, excluding loan lo
Slide 9: Corporate & Investment Bank
F I N A N C I A L R E S U L T S $ O/(U) 3Q14 2Q14 3Q13 Corporate & Investment Bank revenue $8,787 ($204) $598 Investment banking fees 1,542 (231) 32 Treasury Services 1,037 25 (16) Lending 147 (150) (204) Total Banking 2,726 (356) (188) Fixed Income Markets 3,512 30 73 Equity Markets 1,231 66 (18) S
Slide 10: Commercial Banking
F I N A N C I A L R E S U L T S Commercial Banking1 Net income of $649mm, down 2% YoY and 1% QoQ Revenue of $1.7B, down 3% YoY and 2% QoQ Record YTD gross Investment Banking revenue of $1.4B Expense of $668mm, flat YoY Credit cost benefit of $79mm Net charge-off rate of 1 bp; 7th consecu
Slide 11: Asset Management
F I N A N C I A L R E S U L T S Asset Management1 1 See note 1 on slide 20 2 Actual numbers for all periods, not over/(under) $mm Financial performance Record net income of $572mm, up 20% YoY and 4% QoQ Revenue of $3.0B, up 9% YoY and 2% QoQ Record AUM of $1.7T, up 11% YoY and flat QoQ AUM n
Slide 12: Corporate/Private Equity
F I N A N C I A L R E S U L T S Private Equity Private Equity net income of $71mm Private Equity portfolio of $5.4B Treasury and CIO Treasury and CIO net loss of $30mm, compared to a net loss of $46mm in 2Q14 Other Corporate Noninterest expense includes legal expense of $512mm (pretax) Inc
Slide 13: Outlook
F I N A N C I A L R E S U L T S Expect small negative Production pretax income in 4Q14 – actual results will be market dependent Expect Servicing revenue to be at or slightly below $600mm in 4Q14, and to continue to decrease in 20152 Expect a $1B+ reduction in allowance for consumer loan losse
Slide 14: Appendix
Agenda Page F I N A N C I A L R E S U L T S 13 Appendix 13
Slide 15: Net interest income trend
A P P E N D I X Core NII up ~$110mm QoQ Firm NII up ~$320mm QoQ, largely due to: Lower interest expense in CIB Core NII and net interest margin1 1 See note 7 on slide 20 2 The core and market-based NII presented for FY2010, FY2011 and FY2012 represents their quarterly averages (e.g. total for
Slide 16: Consumer credit – Delinquency trends
A P P E N D I X $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Sep-10 M
Slide 17: Real Estate Portfolios and Card Services – Coverage ratios
A P P E N D I X Real Estate Portfolios and Card Services – Coverage ratios Real Estate Portfolios and Card Services credit data ($mm) NCOs ($mm) O/(U) 3Q14 2Q14 3Q13 3Q13 Real Estate Portfolios (NCI) Net charge-offs $81 $111 $204 ($123) NCO rate 0.27% 0.38% 0.70% (43) bps Allowance for loan losses $
Slide 18: Firmwide – Coverage ratios
A P P E N D I X Firmwide – Coverage ratios $14.9B of loan loss reserves at September 30, 2014, down $2.7B from $17.6B in the prior year, reflecting improved portfolio credit quality Loan loss coverage ratio of 1.63%1 1 See note 3 on slide 20 $mm Comments JPM Credit Summary 11,124 10,609 10,296 9
Slide 19: Corporate & Investment Bank – Key metrics & leadership positions
A P P E N D I X Corporate & Investment Bank – Key metrics & leadership positions Comments Note: LTM rankings included as available. All-America Institutional Investor research rankings are as of October of their respective year 1 Last twelve months 2 International client deposits and other third par
Slide 20: IB League Tables
A P P E N D I X IB League Tables League table results – volumes League table results – wallet share YTD 2014 FY2013 Rank Share Rank Share Based on fees 1 : Global Debt, Equity & Equity-related 1 7.5% 1 8.3% US Debt, Equity & Equity-related 1 10.5% 1 11.5% Global Long-term Debt2 1 7.7% 1 8.2% US Long
Slide 21: Notes on non-GAAP financial measures
A P P E N D I X 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 definition of managed basis
Slide 22: Forward-looking statements
A P P E N D I X 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 sign