Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Investor Day (2022)
23 slides from Jp Morgan Chase &'s investor day presentation, 2022
Slide 1: Investor Day 2022: Commercial Banking
INVESTOR DAY | 2022 COMMERCIAL BANKING FIRM OVERVIEW GLOBAL TECHNOLOGY CONSUMER & COMMUNITY BANKING INTERNATIONAL CONSUMER GROWTH INITIATIVES. CORPORATE & INVESTMENT BANK COMMERCIAL BANKING JPMORGAN CHASE & Co. ASSET & WEALTH MANAGEMENT
Slide 2: Commercial Banking – executing a proven strategy
Commercial Banking – executing a proven strategy Putting clients & communities at ◼ Coverage strategically aligned to best serve our clients the center of everything we do ◼ Local delivery and decision-making, with deep sector expertise Investing to capture ◼ Adding talented bankers focused on addin
Slide 3: Long-term, through-the-cycle performance
Long-term, through-the-cycle performance ($B) 2011 CAGR 2021 Putting clients & communities at $10.0 the center of everything we do $6.4 5% ~$3.6B Revenue Investing to capture $5.2 tremendous market opportunity $2.4 8% ~2x Net income Strengthening our business $205 $104 7% ~2x foundation Average loan
Slide 4: JPMorgan Chase platform drives competitive advantage and unmatched value to clients
JPMorgan Chase platform drives competitive advantage and unmatched value to clients Scale advantage as part of JPMorgan Chase Investment Banking Private ◼ Global footprint with local coverage and expertise Bank ◼ Investment capacity to drive long-term growth and innovation International Reach ◼ Comm
Slide 5: Delivering the #1 investment bank to CB clients
Delivering the #1 investment bank to CB clients Commercial Banking gross investment banking revenue1 ($B) Targeting key growth areas ~46% % of 2021 JPMC N.A. IB fees represented by CB clients2 Middle Market Private Capital $5.1 21% CAGR $3.3 International Green Economy $2.7 $2.4 $2.5 ◼ Adding to ded
Slide 6: Comprehensive payments solutions drive deep relationships and core operating deposits
Comprehensive payments solutions drive deep relationships and core operating deposits CB payments fee revenue1 ($B) Average CB deposit balances ($B) 6% CAGR 14% CAGR $302 $1.8 $238 $1.4 $1.4 $1.5 $1.5 $177 $171 $173 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 ◼ Unmatched capabilities across J.
Slide 7: Diversified loan portfolio
Diversified loan portfolio Average loans by client segment ($B) C&I CRE1 C&I $219 ◼ 2020 loan growth driven by PPP and pandemic $206 $208 $205 $198 ◼ Strong growth in 1Q22, on loan originations and higher revolver utilization 110 ◼ Competition remains elevated, particularly from 99 100 98 96 non-ban
Slide 8: Maintaining risk discipline – C&I
Maintaining risk discipline – C&I Portfolio summary Market commentary ◼ Credit quality of the portfolio remains strong ◼ Monitoring impact of geopolitical tensions, inflation, supply chain, ◼ Diversified across industries and regions tight labor markets and interest rates ◼ Dedicated underwriters fo
Slide 9: Maintaining risk discipline – CRE
Maintaining risk discipline – CRE Portfolio summary Market commentary ◼ Strong credit performance, with NCOs of 2bps YTD ◼ Continue to limit exposure to riskier asset classes ◼ ~72% of loans in Commercial Term Lending; avg. loan size ~$2mm ◼ Monitoring assets in urban dense markets, particularly off
Slide 10: Significant investment in the franchise while maintaining strong expense discipline
Significant investment in the franchise while maintaining strong expense discipline CB adjusted expense ($B)1 Investments: Investment expense 1 Client coverage 2019 2021 Banker hiring JPM CB OH ratio 40% 40% Investments: 2 Sales enablement CB peer avg. OH ratio2 47% 50% Technology, product, data & 3
Slide 11: Focused, strategic investments to capture organic growth and deepen client relationships
Focused, strategic investments to capture organic growth and deepen client relationships Investing in talent… …to execute strategic investments… …driving real value 1 Client Hire bankers to better cover existing and Market share Bankers coverage expansion markets & targeted industries Client satisfa
Slide 12: Organic expansion in Middle Market Banking
1 Client coverage Organic expansion in Middle Market Banking National Middle Market coverage Expansion market revenue growth ($mm)1 Middle Market Middle Market offices located Since 2016, doubled banker 20k clients ~90% within branch network 3x $2,000 headcount while tripling revenue Prospects in ~2
Slide 13: Replicating our proven strategy internationally
1 Client coverage Replicating our proven strategy internationally Market $5T cumulative foreign direct $148T annual wholesale cross- $780B annual wholesale payments opportunity investment in the U.S.1 border payments value2 revenue outside of N.A.3 Competing from a position of strength International
Slide 14: Specialized industries model drives superior client value and risk management
1 Client coverage Specialized industries model drives superior client value and risk management Prudent industry and Sector-specific advice and Industry-tailored Deep industry expertise ✓ client selection ✓ content to support clients ✓ client solutions ✓ in underwriting 18 focus industries Innovatio
Slide 15: Disciplined, focused Private Equity coverage
1 Client coverage Disciplined, focused Private Equity coverage Tremendous potential in Private Equity industry with record Middle Market1 dry powder1 Executing a comprehensive strategy # U.S. MM M&A deals Global PE dry powder Focused coverage team for Middle Market ~$1.3T financial sponsors 4.1k ~$1
Slide 16: Focused, strategic investments to capture organic growth and deepen client relationships
Focused, strategic investments to capture organic growth and deepen client relationships Investing in talent… …to execute strategic investments… …driving real value 1 Client Hire bankers to better cover existing and Market share Bankers coverage expansion markets & targeted industries Client satisfa
Slide 17: Building an unmatched client coverage team with data-driven tools, insights and training
2 Sales Enablement Building an unmatched client coverage team with data-driven tools, insights and training Equipping our bankers with access to the best training and sales enablement tools to drive value for clients Timely client & industry insights to identify Pricing analytics tools to optimize r
Slide 18: Capturing tremendous value from our cloud-based, client-focused data platform
3 Data-driven Business Capturing tremendous value from our cloud-based, client-focused data platform Data intake Deliver business value – use cases Business outcomes Client value Client satisfaction ◼ Business optimization ◼ Peer benchmarking Unified cloud-based Product margins ◼ Cash flow forecasti
Slide 19: Investing to enhance our offerings and adapt to emerging and unmet client needs
4 Client Solutions Investing to enhance our offerings and adapt to emerging and unmet client needs A design-led, client-focused organization… …allows us to develop innovative client solutions Enhancing solutions to deliver more value Client-focused, solutions-driven organization Digitizing experienc
Slide 20: Investing to deliver powerful solutions to our CRE client franchise
4 Client Solutions Investing to deliver powerful solutions to our CRE client franchise Market-leading real estate lender Tremendous market opportunity Multifamily lending clients ~28,000 #1 Multifamily lender in the U.S.1 Affordable Housing clients ~390k ~50% $500B ~600 #3 Affordable Housing lender
Slide 21: Relentless focus on client experience and operational excellence
5 Client Experience Relentless focus on client experience and operational excellence 1 Onboarding 2 KYC ◼ Reduce onboarding cycle times ◼ Minimize client impact ◼ Streamline and digitize documentation ◼ Streamline and digitize documentation ◼ Expand client training & enablement ◼ Automate existing m
Slide 22: Setting new targets to continue driving strong, consistent returns for shareholders
Setting new targets to continue driving strong, consistent returns for shareholders Record 2017 2021 2017-2021 Target Investment banking1 $2.4B $5.1B 21% CAGR $4.0B Execute growth Payments fee2 $1.4B $1.8B 6% CAGR NEW $3.0B initiatives (longer-term NEW Middle Market expansion $0.6B $1.2B 20% CAGR $2
Slide 23: CB is positioned for continued success over the near, medium & long term
CB is positioned for continued success over the near, medium & long term Putting clients & communities at Tremendous client franchise with ~23k C&I clients across 170+ locations; competitive the center of everything we do advantage of JPMC, providing unmatched ability to our clients and communities