Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Q4 2019 Earnings Presentation
15 slides from Jp Morgan Chase &'s earnings presentation, Jan 14, 2020
Slide 1: 4Q19 Financial Results
4Q19 Financial Results January 14, 2020
Slide 2: 4Q19 Financial highlights
4Q19 Financial highlights ROTCE1 Common equity Tier 12 Net payout LTM3 17% 12.4% 98% 4Q19 net income of $8.5B and EPS of $2.57 Managed revenue of $29.2B4 Expense of $16.3B and managed overhead ratio of 56%4 Balance sheet Average total loans down 1% YoY and flat QoQ – Average total loans ex
Slide 3: 4Q19 Financial results
4Q19 Financial results1 $B, except per share data $ O/(U) 4Q19 3Q19 4Q18 Net interest income $14.3 ($0.1) ($0.2) Noninterest revenue 14.9 (0.8) 2.6 Managed revenue1 $B 4Q19 3Q19 4Q18 29.2 (0.9) 2.4 Net charge-offs $1.5 $1.4 $1.2 Expense Reserve build/(release) (0.1) 0.1 0.3 16.3 (0.1) 0.6 Credit cos
Slide 4: FY2019 Financial results
FY2019 Financial results1 $B, except per share data $ O/(U) FY2019 FY2018 FY2018 Net interest income $57.8 $55.7 $2.1 Noninterest revenue 60.9 55.8 5.1 Managed revenue1 $B FY2019 FY2018 118.7 111.5 7.2 Net charge-offs $5.6 $4.9 Expense Reserve build/(release) – – 65.5 63.4 2.1 Credit costs Credit co
Slide 5: Fortress balance sheet and capital
Fortress balance sheet and capital $B, except per share data 4Q19 3Q19 4Q18 Basel III Standardized1 CET1 capital $188 $188 $183 4Q19 Advanced CET1 capital ratio of 13.4%1 12.4% 12.3% 12.0% Tier 1 capital $214 $215 $209 Tier 1 capital ratio 14.1% 14.1% 13.7% Total capital $242 $244 $238 Total capital
Slide 6: Current Expected Credit Losses ("CECL") – 2020 adoption impact
Current Expected Credit Losses (“CECL”) – 2020 adoption impact Allowance for credit losses ($B) Adoption impact CECL Adoption of CECL was effective on January 1, adoption 2020 – no impact to 2019 financials 12/31/2019 impact 1/1/2020 Elected to phase-in the $2.7B capital impact – at Consumer 25%
Slide 7: Consumer & Community Banking
Consumer & Community Banking1 $mm Financial performance $ O/(U) Net income of $4.2B, up 5% YoY 4Q19 3Q19 4Q18 Revenue of $14.0B, up 3% Revenue $14,040 ($219) $345 Expense of $7.2B, up 2% YoY, driven by higher volume- and Consumer & Business Banking 6,442 (246) (125) revenue-related expense and
Slide 8: Corporate & Investment Bank
Corporate & Investment Bank1 $mm Financial performance $ O/(U) Net income of $2.9B, up 48% YoY; revenue of $9.5B, up 31% 4Q19 3Q19 4Q18 Banking revenue Revenue $9,471 $133 $2,234 Investment banking revenue 1,823 (48) 103 IB revenue of $1.8B, up 6% YoY, reflecting higher debt and Treasury Servi
Slide 9: Commercial Banking
Commercial Banking1 $mm Financial performance $ O/(U) Net income of $938mm, down 9% YoY 4Q19 3Q19 4Q18 Revenue of $2.2B, down 3% YoY Revenue $2,228 $21 ($78) Middle Market Banking 909 6 (50) Net interest income of $1.6B, down 7% YoY, driven by lower Corporate Client Banking 730 (9) (11) deposi
Slide 10: Asset & Wealth Management
Asset & Wealth Management1 $mm Financial performance $ O/(U) Net income of $785mm, up 30% YoY 4Q19 3Q19 4Q18 Revenue of $3.7B, up 8% YoY Revenue $3,700 $132 $261 Asset Management 1,892 76 169 Higher investment valuations and average market levels, as Wealth Management 1,808 56 92 well as depos
Slide 11: Corporate
Corporate1 $mm Financial performance $ O/(U) Revenue 4Q19 3Q19 4Q18 Net revenue was a loss of $228mm Revenue ($228) ($920) ($355) Expense 343 62 (165) The quarter included ~$190mm of net markdowns on certain Credit costs (1) (1) – legacy private equity investments Net income ($361) ($754) $216
Slide 12: Outlook
Outlook1 Firmwide Expect 1Q20 NII to be ~$14B, market dependent Expect 1Q20 adjusted expense to be ~$17B 1Q20 effective tax rate is estimated to be ~17% reflecting the impact of stock-based compensation2 1 See notes 1 and 3 on slide 12 2 Estimate could change due to a number of factors includi
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 2. Actual numbers for all periods, not over/(under) 3. Firmwide mortgage origination volume was $37.4B, $35.8B and $18.7B for the three months ended December 31, 2019, September 30, 2019 and December 31, 2018, respectively 4. Excludes
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