Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q2 2016 Earnings Presentation
19 slides from Jp Morgan Chase &'s earnings presentation, Jul 14, 2016
Slide 1: Financial Results 2Q16
FINANCIAL RESULTS 2Q16 July 14, 2016
Slide 2: 2Q16 Financial highlights
2Q16 Financial highlights ROTCE1 Common equity Tier 12 Net payout LTM3 13% 11.9% 56% 2Q16 net income of $6.2B and EPS of $1.55 Managed revenue of $25.2B4 Adjusted expense of $14.1B5 and adjusted overhead ratio of 56%5 Fortress balance sheet Average core loans6 up 16% YoY and 3% QoQ Basel
Slide 3: 2Q16 Financial results
2Q16 Financial results1 $B, excluding EPS $ O/(U) 2Q16 1Q16 2Q15 Net interest income $11.7 $– $0.7 Noninterest revenue 13.6 1.2 – Managed revenue 1 25.2 1.1 0.7 Expense 13.6 (0.2) (0.9) Credit costs 1.4 (0.4) 0.5 Reported net income $6.2 $0.7 ($0.1) Net income applicable to common stockholders $5.7
Slide 4: Fortress balance sheet and returns
Fortress balance sheet and returns1 $B, except per share data 2Q16 1Q16 2Q15 Basel III Advanced Fully Phased-In2 CET1 2Q16 Basel III $179 $176 $169 Standardized Fully CET1 ratio Phased-In of 12.1%2 11.9% 11.7% 11.0% Tier 1 capital $205 $202 $194 Tier 1 capital ratio 13.6% 13.4% 12.7% Total capital $
Slide 5: Consumer & Community Banking
Consumer & Community Banking1 $mm Financial performance $ O/(U) Net income of $2.7B, up 5% YoY 2Q16 1Q16 2Q15 Revenue of $11.5B, up 4% YoY, driven by NII on higher Revenue $11,451 $334 $436 Consumer & Business Banking 4,616 66 133 volumes and the net impact of non-core items in Card Mortgage Ban
Slide 6: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $2.5B on revenue of $9.2B 2Q16 1Q16 2Q15 Corporate & Investment Bank revenue $9,165 $1,030 $442 Banking revenue Investment banking revenue 1,492 261 (254) IB revenue of $1.5B, down 15% YoY, largely driven by Treasury
Slide 7: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Net income of $696mm, up 33% YoY and 40% QoQ 2Q16 1Q16 2Q15 Revenue $1,817 $14 $78 Revenue of $1.8B, up 4% YoY 2 Middle Market Banking 698 (9) 19 Gross IB Revenue of $595mm, up 23% QoQ 2 Corporate Client Banking 562 51 21 Commercial Term Le
Slide 8: Asset Management
Asset Management1 $mm Financial performance $ O/(U) Net income of $521mm, up 16% YoY and down 11% QoQ 2Q16 1Q16 2Q15 Revenue $2,939 ($33) ($236) Revenue of $2.9B, down 7% YoY and down 1% QoQ Global Investment Management 1,424 (75) (246) Expense of $2.1B, down 13% YoY and up 1% QoQ Global Wealt
Slide 9: Corporate
Corporate1 $mm Financial performance $ O/(U) Treasury and CIO 2Q16 1Q16 2Q15 Treasury and CIO net loss of $199mm, compared to net loss of Treasury and CIO ($199) ($88) ($87) $111mm in 1Q16 Other Corporate 33 (46) (519) Other Corporate Net income ($166) ($134) ($606) Net income of $33mm, driven b
Slide 10: Outlook
Outlook Firmwide Expect 2016 net interest income to be up ~$2B+ YoY Expect 2016 noninterest revenue to be ~$50B, market dependent Expect 2016 adjusted expense to be $56B+/- Expect 2016 net charge-offs to be ≤$4.75B, with the YoY increase driven by both loan growth and Oil & Gas FINANCIAL RES
Slide 11: Agenda
Agenda Page Appendix 10 FINANCIAL RESULTS 10
Slide 12: Select leadership positions
Select leadership positions Consumer & Community Banking Corporate & Investment Bank Consumer & Business Banking League table results – wallet share 1H16 FY2015 Deposit volume growing at nearly twice the industry Rank Share Rank Share growth rate1 8 Based on fees : Largest active mobile customer
Slide 13: Consumer credit – Delinquency trends
Consumer credit – Delinquency trends1 Home equity delinquency trend ($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 $50
Slide 14: Mortgage Banking and Card Services – Coverage ratios
Mortgage Banking and Card Services – Coverage ratios1 Mortgage Banking and Card Services credit data ($mm) O/(U) 2Q16 1Q16 2Q15 2Q15 Mortgage Banking (NCI) Net charge-offs $38 $60 $81 ($43) NCO rate 0.08% 0.13% 0.21% (13) bps Allowance for loan losses $1,488 $1,588 $1,788 ($300) 2 ALL/annualized NCO
Slide 15: Firmwide – Coverage ratios
Firmwide – Coverage ratios1 $mm $mm 3.00% Loan loss reserve/Total loans1 Loan loss reserve Nonperforming retained Loan loss reserve/NPLs1 400% loans 300% 2.00% 200% 1.00% 15,326 14,889 14,227 100% 14,185 14,065 13,915 13,466 13,994 13,555 7,634 7,241 7,017 6,921 6,645 6,616 6,303 7,367 7,178 0.00% 0
Slide 16: 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 17: Notes
Notes Additional Notes on slide 4 – 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 $28.6B, $24.4B, and $31.7B, for 2Q16, 1Q16 and 2Q15, respect
Slide 18: Notes
Notes Notes on slide 11 – Select leadership positions 1. Based on FDIC 2015 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 1Q16 3. Based on Inside Mortgage Finance as of 1Q16 for
Slide 19: 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