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| 8-K - 8-K - JPMORGAN CHASE & CO | jpmc1q17form8k.htm |
F I N A N C I A L R E S U L T S
1Q17
April 13, 2017
1 See note 2 on slide 14
2 Represents estimated common equity Tier 1 (“CET1”) capital and ratio under the Basel III Fully Phased-In capital
rules to which the Firm will be subject as of January 1, 2019. See note 7 on slide 14
3 Last twelve months (“LTM”). Net of employee issuance
4 See note 1 on slide 14
5 See note 3 on slide 14
6 See note 8 on slide 14
7 Net of employee issuance
1Q17 net income of $6.4B and EPS of $1.65
Managed revenue of $25.6B4
Adjusted expense of $14.8B5 and adjusted overhead ratio of 58%5
Fortress balance sheet
Average core loans6 up 9% YoY and 1% QoQ
Basel III Fully Phased-In CET1 capital of $184B2, Advanced and Standardized CET1 ratios of 12.4%2
Delivered strong capital return
$4.6B7 returned to shareholders in 1Q17, including $2.8B of net repurchases
Common dividend of $0.50 per share
ROTCE1
13%
Net payout LTM3
69%
Common equity Tier 12
12.4%
1Q17 Financial highlights
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$ O/(U)
1Q17 4Q16 1Q16
Net interest income $12.4 $0.3 $0.7
Noninterest revenue 13.2 0.9 0.8
Managed revenue1 25.6 1.3 1.5
Expense 15.0 1.2 1.2
Credit costs 1.3 0.5 (0.5)
Reported net income $6.4 ($0.3) $0.9
Net income applicable to common stockholders $6.0 ($0.3) $0.9
Reported EPS $1.65 ($0.06) $0.30
ROE2 11% 11% 9%
ROTCE2,3 13 14 12
Overhead ratio – managed1,2 59 57 57
Memo: Adjusted expense 4 $14.8 $1.2 $0.9
Memo: Adjusted overhead ratio 1,2,4 58% 56% 58%
Note: Totals may not sum due to rounding
1 See note 1 on slide 14
2 Actual numbers for all periods, not over/(under)
3 See note 2 on slide 14
4 See note 3 on slide 14
5 Effective the first quarter of 2017, the Firm revised its method for allocating LOB equity, which includes no longer allocating for goodwill and other intangible assets. For further
information, see pages 76-85 of the 2016 Annual Report on Form 10-K.
$B, excluding EPS
1Q17 Financial results1
Firm NII up $720mm YoY and up $328mm QoQ with NIM up 11bps QoQ
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1Q17 ROE O/H ratio
CCB 15% 58%
CIB 18% 54%
CB 15% 41%
AWM 16% 84%
5
$B 1Q17 4Q16 1Q16
Net charge-offs $1.7 $1.3 $1.1
Reserve build/(release) (0.3) (0.4) 0.7
Credit costs $1.3 $0.9 $1.8
2
$B, except per share data
1 Estimated for all periods. Represents the capital rules the Firm will be subject to commencing January 1, 2019. See note 7 on slide 14
2 Estimated for all periods. Represents the supplementary leverage rules the Firm will be subject to commencing January 1, 2018. See note 7 on slide 14
3 High quality liquid assets (“HQLA”) represents the amount of assets that qualify for inclusion in the liquidity coverage ratio
4 Estimated for 1Q17
5 See note 2 on slide 14
Fortress balance sheet and capital
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Firmwide total credit reserves of $14.5B
Wholesale reserves of $5.5B – net release of $93mm in 1Q17
Consumer reserves of $9.0B – net release of $246mm in 1Q17
1Q17 4Q16 1Q16
Basel III Advanced Fully Phased-In1
CET1 $184 $182 $176
CET1 ratio 12.4% 12.2% 11.7%
Tier 1 capital $209 $207 $202
Tier 1 capital ratio 14.1% 14.0% 13.4%
Total capital $228 $227 $224
Total capital ratio 15.4% 15.2% 14.8%
Risk-weighted assets $1,483 $1,487 $1,507
Firm SLR
2 6.6% 6.5% 6.6%
Bank SLR
2 6.7 6.6 6.7
HQLA
3,4
$524 $524 $505
Total assets (EOP) $2,546 $2,491 $2,424
Tangible common equity (EOP)
5
$185 $183 $179
Tangible book value per share
5
$52.04 $51.44 $48.96
1Q17 Basel III
Standardized Fully
Phased-In of 12.4%1
3
1Q17 4Q16 1Q16
Consumer & Business Banking
Average Business Banking loans $22.5 $22.2 $21.1
Business Banking loan originations 1.7 1.6 1.7
Client investment assets (EOP) 245.1 234.5 220.0
Deposit margin 1.88% 1.80% 1.86%
Mortgage Banking
Average loans $233.0 $234.2 $226.4
Loan originations
4 22.4 29.1 22.4
EOP total loans serviced 836.3 846.6 898.7
Net charge-off rate
5,6 0.10% 0.10% 0.13%
Card, Commerce Solutions & Auto
Card average loans $137.2 $136.2 $127.3
Auto average loans and leased assets 79.1 77.9 70.9
Auto loan and lease originations 8.0 8.0 9.6
Card net charge-off rate 2.94% 2.67% 2.62%
Card Services net revenue rate 10.15 10.14 11.81
Credit Card sales volume
7 $139.7 $148.5 $121.7
Merchant processing volume 274.3 284.9 247.5
1Q17 4Q16 1Q16
EOP Equity3 $51.0 $51.0 $51.0
ROE3 15% 17% 19%
Overhead ratio 58 57 55
Average loans $466.8 $466.9 $445.8
Average deposits 622.9 607.2 562.3
CCB households (mm) 60.4 60.0 58.5
Active mobile customers (mm) 27.3 26.5 23.8
Debit & credit card sal s volume $208.4 $219.0 $187.2
$ O/(U)
1Q17 4Q16 1Q16
Revenue $10,970 ($49) ($147)
Consumer & Business Banking 4,906 132 356
Mortgage Banking 1,529 (161) (347)
Card, Commerce Solutions & Auto 4,535 (20) ( 56)
Expense 6,395 92 307
Credit costs ,430 481 380
Net charge-offs 1,679 48 9
Change in allowance (249) 1 (24 )
Net income $1,988 ($376) ($502)
Key drivers/statistics ($B) – detail by business
Consumer & Community Banking1
$mm
Net income of $2.0B, down 20% YoY
Revenue of $11.0B, down 1% YoY, on Card new account
origination costs and lower net servicing revenue, largely
offset by higher NII on higher balances and higher Auto lease
income
Expense of $6.4B, up 5% YoY, driven by higher auto lease
depreciation and business growth
Credit costs of $1.4B, up $380mm YoY, driven by a write-
down in the student loan portfolio and higher Card net charge-
offs
Financial performance
Key drivers/statistics ($B)2
1 See note 1 on slide 14
For additional footnotes see slide 15
Average deposits up 11% YoY
Average loans up 5% YoY and core loans up 11%
CCB households up 1.9mm YoY
Active mobile customers of 27.3mm, up 14% YoY
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Corporate & Investment Bank1
$mm Financial performance
1 See note 1 on slide 14
2 Actual numbers for all periods, not over/(under)
3 Effective the first quarter of 2017, the Firm revised its method for allocating LOB equity, which includes no
longer allocating for goodwill and other intangible assets. For further information, see pages 76-85 of the
2016 Annual Report on Form 10-K.
4 Client deposits and other third party liabilities pertain to the Treasury Services and Securities Services
businesses
5 ALL/EOP loans as reported was 1.25%, 1.27%, and 1.37% for 1Q17, 4Q16 and 1Q16, respectively
6 See note 5 on slide 14
7 Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery)
rate and loan loss coverage ratio
8 See note 8 on slide 15
Net income of $3.2B on revenue of $9.5B
ROE of 18%
Banking revenue
IB revenue of $1.7B, up 34% YoY, driven by higher debt and
equity underwriting fees, partially offset by lower advisory fees
– Ranked #1 in Global IB fees for 1Q17
Treasury Services revenue of $981mm, up 11% YoY, primarily
driven by the impact of higher interest rates and operating
deposits growth
Lending revenue of $389mm, up 29% YoY
Markets & Investor Services revenue
Markets revenue of $5.8B, up 13% YoY
– Fixed Income Markets of $4.2B, up 17% YoY, driven by
Securitized Products, Rates and Credit
– Equity Markets revenue of $1.6B, up 2% YoY
Securities Services revenue of $916mm, up 4% YoY
Expense of $5.1B, up 7% YoY, largely driven by higher
compensation expense
Credit costs benefit of $96mm, largely driven by Oil & Gas and
Metals & Mining
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$ O/(U)
1Q17 4Q16 1Q16
Corporate & Investment Bank revenue $9,536 $1,075 $1,401
Investment banking revenue 1,651 164 420
Treasury Services 981 31 97
Lending 389 43 87
Total Banking 3,021 238 604
Fixed Income Markets 4,215 846 618
Equity Markets 1,606 456 30
Securities Services 916 29 35
Credit Adjustments & Other (222) (494) 114
Total Markets & Investor Services 6,515 837 797
Expense 5,121 949 313
Credit costs (96) 102 (555)
Net income $3,241 ($190) $1,262
Key drivers/statistics ($B)2
EOP equity3 $70.0 $64.0 $64.0
ROE3 18% 20% 11%
Overhead ratio 54 49 59
Comp/revenue 29 20 32
IB fees ($mm) $1,812 $1,612 $1,321
Average loans 113.7 118.0 111.9
Average client deposits4 391.7 390.8 358.9
Assets under custody ($T) 21.4 20.5 20.3
ALL/EOP loa s x-conduits and trade5,6,7 1.91% 1.86% 2.11%
Net charge-off/(recov ry) rate7 (0.07) 0.10 0.17
Average VaR ($mm)8 $25 $39 $55
5
1Q17 4Q16 1Q16
Revenue $2,018 $55 $215
Middle Market Banking 797 33 90
Corporate Client Banking 653 19 106
Commercial Term Lending 367 12 6
Real Estate Banking 134 6 30
Other 67 (15) (17)
Expense 825 81 112
Credit costs (37) (161) (341)
Net income $799 $112 $303
Key drivers/statistics ($B)2
EOP equity3 $20.0 $16.0 $16.0
ROE3 15% 16% 11%
Overhead ratio 41 38 40
Gross IB Revenue ($mm) $646 $608 $483
Average loans 191.5 188.9 170.3
Average client deposits 176.8 180.0 173.1
Allowance for loan losses 2.9 2.9 3.1
Nonaccrual loans 0.9 1.1 1.3
Net charge-off/(recovery) rate4 (0.02)% 0.11% 0.01%
ALL/loans4 1.49 1.55 1.79
$ O/(U)
$mm
Commercial Banking1
Record net income of $799mm, up 61% YoY and 16% QoQ
Record revenue of $2.0B, up 12% YoY and 3% QoQ
Net interest income of $1.4B, up 14% YoY and 4% QoQ
Gross IB revenue of $646mm, up 34% YoY and 6% QoQ
Expense of $825mm, up 16% YoY and 11% QoQ
Includes $29mm of impairment on leased assets
Credit costs benefit of $37mm
Net recovery rate of 2 bps
Net reserve release driven by Oil & Gas
Record average loan balances of $191B, up 12% YoY and 1%
QoQ
C&I5 up 8% YoY and flat QoQ
CRE5 up 17% YoY and 3% QoQ
Average client deposits of $177B, up 2% YoY and down 2% QoQ
1 See note 1 on slide 14
2 Actual numbers for all periods, not over/(under)
3 Effective the first quarter of 2017, the Firm revised its method for allocating LOB equity, which
includes no longer allocating for goodwill and other intangible assets. For further information, see
pages 76-85 of the 2016 Annual Report on Form 10-K.
4 Loans held-for-sale and loans at fair value were excluded when calculating the net charge-
off/(recovery) rate and loan loss coverage ratio
5 CB’s Commercial and Industrial (C&I) and Commercial Real Estate (CRE) groupings are generally
based on client segments and do not align with regulatory definitions
Financial performance
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1Q17 4Q16 1Q16
Revenue $3,087 $ – $115
Asset Management 1,487 (63) (12)
Wealth Management 1,600 63 127
Expense 2,580 405 505
Credit costs 18 29 5
Net income $385 ($201) ($202)
Key drivers/statistics ($B)2
EOP equity3 $9.0 $9.0 $9.0
ROE3 16% 25% 25%
Pretax margin 16 30 30
Assets under management (AUM) $1,841 $1,771 $1,676
Client assets 2,548 2,453 2,323
Average loans 118.3 115.1 110.5
Average deposits 158.8 158.3 150.6
$ O/(U)
Asset & Wealth Management1
1 See note 1 on slide 14
2 Actual numbers for all periods, not over/(under)
3 Effective the first quarter of 2017, the Firm revised its method for allocating LOB equity, which includes
no longer allocating for goodwill and other intangible assets. For further information, see pages 76-85
of the 2016 Annual Report on Form 10-K.
Net income of $385mm, down 34% YoY and down 34% QoQ
Revenue of $3.1B, up 4% YoY and flat QoQ
Expense of $2.6B, up 24% YoY and up 19% QoQ, driven by
higher legal expense
Record AUM of $1.8T, up 10% YoY and up 4% QoQ
Record client assets of $2.5T, up 10% YoY and up 4% QoQ
Net inflows of $8B into long-term products and net inflows of $1B
into liquidity products
Record average loan balances of $118.3B, up 7% YoY and up 3%
QoQ
Record average deposit balances of $158.8B, up 5% YoY and up
slightly QoQ
Solid investment performance
77% of mutual fund AUM ranked in the 1st or 2nd quartiles over
5 years
$mm Financial performance
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1Q17 4Q16 1Q16
Treasury and CIO ($67) $130 $44
Other Corporate 102 246 23
Net income $35 $376 $67
$ O/(U)
Corporate1
Treasury and CIO
Net loss of $67mm in 1Q17, up $130mm QoQ, reflecting higher
rates
Other Corporate
Net income of $102mm, benefited from the release of certain legal
reserves 1 See note 1 on slide 14
$mm Financial performance
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Outlook
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Firmwide
Expect 2Q17 net interest income to be up ~$400mm QoQ
and 2017 net interest income to be up ~$4.5B YoY based
upon the implied curve
Expect 2017 adjusted expense to be ~$58B
Expect 2017 net charge-offs to be $5B+/-1
1 2017 net charge-off outlook excludes the impact of the write-down of the student loan portfolio to its estimated fair value as a result of transferring it to held-for-sale in 1Q17
9
Page
Agenda
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Appendix 10
League table results – wallet share 1Q17 FY2016
Rank Share Rank Share
Based on fees 7 :
Global Debt, Equity & Equity-related 1 7.7 % 1 7.2 %
U.S. Debt, Equity & Equity-related 1 10.7 % 1 11.9 %
Global Long-term Debt8 1 7.7 % 1 6.9 %
U.S. Long-term Debt8 2 10.0 % 2 11.1 %
Global Equity & Equity-related9 1 7.8 % 1 7.6 %
U.S. Equity & Equity-related9 1 11.7 % 1 13.3 %
Global M&A10 2 8.8 % 2 8.4 %
U.S. M&A10 2 10.1 % 2 10.0 %
Global Loan Syndications 1 10.7 % 1 9.3 %
U.S. Loan Syndications 1 11.9 % 2 11.8 %
Global IB fees7,11 1 8.5 % 1 8.0 %
Select leadership positions
Corporate & Investment Bank Consumer & Community Banking
Consumer & Business Banking
Consumer deposit volume has grown at more than twice
the industry average since 20121
#1 in active mobile users among large bank peers2
#1 in Consumer Retail Banking nationally for the fifth
consecutive year, according to TNS, and winner of four
TNS Choice awards in 2017
Mortgage Banking
#2 mortgage originator and servicer3
Card, Commerce Solutions & Auto
#1 U.S. credit card issuer4
#1 U.S. co-brand credit card issuer5
#2 merchant acquirer6
For footnoted information see slide 16
Asset & Wealth Management Commercial Banking
#1 in perceived customer satisfaction12
#1 U.S. multifamily lender13
Top 3 in overall Middle Market and Asset Based Lending
Bookrunner14
#1 cash management overall satisfaction and #1 cash
management market penetration15
#1 Private Bank overall in North America16
Asset Management Company of the Year, Asia17
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10
Consumer credit – Delinquency trends1
Note: Home equity and residential mortgage exclude Asset & Wealth Management, Corporate and government-insured loans
1 Excludes purchased credit-impaired and held-for-sale loans
2 Residential mortgage includes prime (including option adjustable rate mortgages (“ARMs”)) and subprime loans
3 Excludes operating lease assets
Residential mortgage delinquency trend ($mm)2 Home equity delinquency trend ($mm)
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Credit card delinquency trend ($mm) Auto delinquency trend ($mm)3
$0
$500
$1,000
$1,500
$2,000
$2,500
Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17
30 – 149 day delinquencies
150+ day delinquencies
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17
30 – 149 day delinquencies
150+ day delinquencies
$0
$500
$1,000
$1,500
$2,000
Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17
30+ day delinquencies 60-119 day delinquencies
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17
30+ day delinquencies 30-89 day delinquencies
11
O/(U)
1Q17 4Q16 1Q16 1Q16
Mortgage Banking (NCI)
Net charge-offs $50 $51 $60 ($10)
NCO rate 0.10% 0.10% 0.13% (3) bps
Allowance for loan losses $1,328 $1,328 $1,588 ($260)
ALL/annualized NCOs2 664% 651% 662%
ALL/nonaccrual loans retained 35 33 35
Card Services
Net charge-offs $993 $914 $830 $163
NCO rate 2.94% 2.67% 2.62% 32 bps
Allowance for loan losses $4,034 $4,034 $3,434 $600
ALL/annualized NCOs2 102% 110% 103%
Mortgage Banking and Card Services – Coverage ratios1
Mortgage Banking and Card Services credit data ($mm)
1 See note 6 on slide 14
2 Net charge-offs annualized (NCOs are multiplied by 4)
3 2Q12 adjusted net charge-offs for Card Services were $1,254mm or 4.05%; excluding the effect of a change in charge-off policy for troubled debt restructurings; 2Q12 reported net charge-offs were $1,345mm or 4.35%
4 3Q12 adjusted net charge-offs for Mortgage Banking exclude the effect of an incremental $825mm of net charge-offs based on regulatory guidance
5 4Q12 adjusted net charge-offs for Mortgage Banking reflects a full quarter of normalized Chapter 7 Bankruptcy discharge activity, which exclude one-time adjustments related to the adoption of Chapter 7 Bankruptcy discharge regulatory guidance
6 4Q14 adjusted net charge-offs for Card Services were $797mm or 2.48% excluding losses from portfolio exits; 4Q14 reported net charge-offs were $858mm or 2.69%
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NCOs ($mm)
877 808
697
599
534
452
293
206
168
177
112
81
113 104 81
41 59 60 38 49 51
50
1,390 1,386
1,254
1,116 1,097 1,082
1,014
892 891 888 885 798 797 789 800 759 774
830 860 838
914
993
$0
$1,000
$2,000
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
Mortgage Banking Card Services
3
4
5
6
12
1Q17 4Q16 1Q16
Consumer, ex. credit card
LLR/Total loans 0.81% 0.88% 0.98%
LLR/NPLs 60 61 59
Credit Card
LLR/Total loans 2.99% 2.85% 2.73%
Wholesale
LLR/Total loans 1.15% 1.18% 1.32%
LLR/NPLs 283 233 218
Firmwide
LLR/Total loans 1.31% 1.34% 1.40%
LLR/NPLs (ex. credit card) 119 111 107
LLR/NPLs 187 171 153
Firmwide – Coverage ratios1
$13.4B of loan loss reserves at March 31, 2017, down
$0.6B from $14.0B in the prior year quarter. Both
wholesale and consumer credit quality are relatively
stable
Nonperforming loan loss coverage ratio (ex. credit card)
of 119%1
1 See note 4 on slide 14
Comments JPM Credit Summary JPM Credit Summary
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D
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$mm
6,921 6,645 6,616 6,303 7,367 7,178 7,059 6,721 5,964
14,065 13,915 13,466 13,555 13,994 14,227 14,204 13,776 13,413
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
0%
50%
100%
150%
200%
250%
300%
Loan loss reserve Nonperforming retained
loans
Loan loss reserve/Total loans1 Loan loss reserve/NPLs1
13
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 definition of managed basis starts with the reported U.S. GAAP results and includes certain
reclassifications to present total net revenue for the Firm (and each of the business segments) on a fully taxable-equivalent (“FTE”) basis. Accordingly, revenue from
investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. These
non-GAAP financial measures allow management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income
tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by
the lines of business. For a reconciliation of the Firm’s results from a reported to managed basis, see page 7 of the Earnings Release Financial Supplement.
2. Tangible common equity (“TCE”), return on tangible common equity (“ROTCE”) and tangible book value per share (“TBVPS”), are each non-GAAP financial measures.
TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than
MSRs), net of related deferred tax liabilities. For a reconciliation from common stockholders’ equity to TCE, see page 9 of the Earnings Release Financial Supplement.
ROTCE measures the Firm’s net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by
common shares at period-end. Book value per share was $64.68, $64.06 and $61.28 at March 31, 2017, December 31, 2016 and March 31, 2016, respectively. TCE,
ROTCE, and TBVPS are meaningful to the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.
3. Adjusted expense and adjusted overhead ratio are non-GAAP financial measures. Adjusted expense excludes Firmwide legal expense/(benefit) of $218 million, $230
million and $(46) million for the three months ended March 31, 2017, December 31, 2016 and March 31, 2016, respectively. The adjusted overhead ratio measures the
Firm’s adjusted expense as a percentage of managed revenues. Management believes this information helps investors understand the effect of these items on reported
results and provides an alternate presentation of the Firm’s performance.
4. The ratios of the allowance for loan losses to end-of-period loans retained and allowance for loan losses to nonperforming loans exclude the following: loans accounted for
at fair value and loans held-for-sale; purchased credit-impaired (“PCI”) loans; and the allowance for loan losses related to PCI loans. Additionally, net charge-offs and net
charge-off rates exclude the impact of PCI loans.
5. The CIB provides certain non-GAAP financial measures, as such measures are used by management to assess the underlying performance of the business:
The ratio of the allowance for loan losses to end-of-period loans is calculated excluding the impact of consolidated Firm-administered multi-seller conduits and trade
finance loans, to provide a more meaningful assessment of CIB’s allowance coverage ratio
6. Net charge-offs for Mortgage Banking and Card Services may be adjusted for significant items, as indicated. These adjusted charge-offs are non-GAAP financial
measures used by management to facilitate comparisons with prior periods.
Notes on key performance measures
7. Estimated as of March 31, 2017. The Basel III supplementary leverage ratio (“SLR”), which becomes effective for the Firm on January 1, 2018, and the Basel III Advanced
Fully Phased-In Common equity Tier 1 (“CET1”), Tier 1, and Total capital, and CET1, Tier 1, and Total Capital ratios, which become effective for the Firm on January 1,
2019, are each considered key regulatory capital measures. These measures are used by management, bank regulators, investors and analysts to assess and monitor the
Firm’s capital position. For additional information on these measures, see Capital Risk Management on pages 76-85 of the Firm’s Annual Report on Form 10-K for the year
ended December 31, 2016.
8. Core loans represent loans considered central to the Firm’s ongoing businesses; core loans exclude loans classified as trading assets, runoff portfolios, discontinued
portfolios and portfolios the Firm has an intent to exit.
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Additional Notes on slide 4 – Consumer & Community Banking
2. Actual numbers for all periods, not over/(under)
3. Effective the first quarter of 2017, the Firm revised its method for allocating LOB equity, which includes no longer allocating for goodwill and other intangible assets. For
further information, see pages 76-85 of the 2016 Annual Report on Form 10-K.
4. Firmwide mortgage origination volume was $25.6B, $33.5B and $24.4B, for 1Q17, 4Q16 and 1Q16, respectively
5. Excludes purchased credit-impaired (PCI) write-offs of $24mm, $32mm and $47mm for 1Q17, 4Q16 and 1Q16, respectively. See note 4 on slide 14
6. Excludes the impact of PCI loans. See note 4 on slide 14
7. Excludes Commercial Card
Additional Note on slide 5 – Corporate & Investment Bank
8. During the third quarter of 2016 the Firm refined the scope of positions included in risk management VaR. In particular, certain private equity positions in CIB were
removed from the VaR calculation. In the absence of this refinement, average CIB VaR, without diversification, would have been higher by the following amounts: $2
million and $5 million for the three months ended March 31, 2017 and December 31, 2016, respectively. Additionally, during the first quarter of 2017, the Firm refined the
historical proxy time series inputs to certain VaR models to more appropriately reflect the risk exposure from certain asset-backed products. In the absence of this
enhancement, the average CIB VaR, without diversification, would have been higher by $3 million for the three months ended March 31, 2017.
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Notes on slide 10 – Select leadership positions
1. FDIC 2016 Summary of Deposits survey per SNL Financial. Excludes all branches with $500mm+ in deposits in any of the last ten years (excluded branches are assumed
to include a significant level of commercial deposits or are headquarter branches for direct banks). Includes all commercial banks, credit unions, savings banks, and
savings institutions as defined by the FDIC
2. Active mobile users based on disclosures by peers in 4Q16
3. Inside Mortgage Finance as of 4Q16 for Servicer and Originator rankings
4. Based on 4Q16 sales volume and loans outstanding disclosures by peers (C, BAC, COF, AXP, DFS) and internal JPMorgan Chase estimates. Sales volume excludes
private label and Commercial Card. AXP reflects the U.S. Consumer segment and internal JPMorgan Chase estimates for AXP’s U.S. small business sales. Outstandings
exclude private label, AXP Charge Card, and Citi Retail Cards
5. “Credit Card Monitor 2017: Cobrand Market Shares by Issuer,” Phoenix, for 12-month period ending January 2017. Based on card accounts, revolving balance dollars and
spending dollars
6. The Nilson Report, Issue 1105, March 2017. Data as of 2016. Chase is the #1 wholly-owned merchant acquirer in the U.S. When volume from JVs and revenue share
arrangements are included in First Data’s volume, First Data holds the #1 share position in the U.S.
7. Reflects ranking of revenue wallet and market share. Source: Wallet from Dealogic Media Manager Cortex as of April 3, 2017
8. Long-term debt rankings include investment-grade, high-yield, supranational, sovereigns, agencies, covered bonds, asset-backed securities (“ABS”) and mortgage-backed
securities (“MBS”); and exclude money market, short-term debt and U.S. municipal securities
9. Global Equity and Equity-related ranking includes rights offerings and Chinese A-Shares
10. Global M&A reflects the removal of any withdrawn transactions. U.S. M&A revenue wallet represents wallet from client parents based in the U.S.
11. Global Investment Banking fees exclude money market, short-term debt and shelf deals
12. CFO Magazine’s Commercial Banking Survey 2016
13. SNL Financial based on FDIC data as of 12/31/16
14. Thomson Reuters as of 1Q17
15. In the $20-$500mm footprint. Greenwich Associates as of 2016
16. Euromoney 2017 rankings
17. The Asset, May 2016
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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 and uncertainties.
Actual results may differ from those set forth in the forward-looking statements. Factors that could
cause JPMorgan Chase & Co.’s actual results to differ materially from those described in the
forward-looking statements can be found in JPMorgan Chase & Co.’s Annual Report on Form 10-K
for the year ended December 31, 2016 which has been filed with the Securities and Exchange
Commission and is available on JPMorgan Chase & Co.’s website
(http://investor.shareholder.com/jpmorganchase/sec.cfm), and on the Securities and Exchange
Commission’s website (www.sec.gov). JPMorgan Chase & Co. does not undertake to update the
forward-looking statements to reflect the impact of circumstances or events that may arise after the
date of the forward-looking statements.
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