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| 8-K - 8-K - JPMORGAN CHASE & CO | jpmc2q16form8k.htm |
July 14, 2016
F I N A N C I A L R E S U L T S
2Q16
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1 See note 7 on slide 15
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 8 on slide 15
3 Last twelve months (“LTM”). Net of employee issuance
4 See note 1 on slide 15
5 See note 2 on slide 15
6 See note 9 on slide 15
7 Net of employee issuance
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 III Fully Phased-In CET1 capital of $179B2, Advanced CET1 ratio of 11.9%2 and Standardized CET1
ratio of 12.1%2
Delivered strong capital return
$4.4B7 returned to shareholders in 2Q16, including $2.6B of net repurchases
Common dividend of $0.48 per share, up 9% QoQ
Federal Reserve did not object to the Firm’s capital plan including $10.6B of gross repurchases for 3Q16
through 2Q17
ROTCE1
13%
Net payout LTM3
56%
Common equity Tier 12
11.9%
2Q16 Financial highlights
1
$ O/(U)
2Q16 1Q16 2Q15
Net interest income $11.7 $ – $0.7
Noninterest revenue 13.6 1.2 –
Managed revenue1 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 $0.7 ($0.1)
Reported EPS $1.55 $0.20 $0.01
ROE2 10% 9% 11%
ROTCE2,3 13 12 14
Overhead ratio – managed1,2 54 57 59
Memo: Adjusted expense
4
$14.1 $0.2 ($0.1)
Memo: Adjusted overhead ratio
1,2,4
56% 58% 58%
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2Q16 ROE O/H ratio
CCB 20% 52%
CIB 15% 55%
CB 16% 40%
AM 22% 71%
Note: Totals may not sum due to rounding
1 See note 1 on slide 15
2 Actual numbers for all periods, not over/(under)
3 See note 7 on slide 15
4 See note 2 on slide 15
$B, excluding EPS
2Q16 Financial results1
Firm NII up $696mm YoY and relatively flat QoQ with NIM down 5 bps QoQ
2
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2Q16 1Q16 2Q15
Basel III Advanced Fully Phased-In2
CET1 $179 $176 $169
CET1 ratio 11.9% 11.7% 11.0%
Tier 1 capital $205 $202 $194
Tier 1 capital ratio 13.6% 13.4% 12.7%
Total capital $226 $224 $215
Total capital ratio 15.0% 14.8% 14.0%
Risk-weighted assets $1,508 $1,507 $1,532
Firm SLR
3 6.6% 6.6% 6.0%
Bank SLR
3 6.6 6.7 6.1
HQLA
4,5
$516 $505 $532
Total assets (EOP) $2,466 $2,424 $2,449
Tangible common equity (EOP) $181 $179 $171
Tangible book value per share
6
$50.21 $48.96 $46.13
$B, except per share data
Firm is compliant with U.S. LCR5 and with
proposed U.S. NSFR7
Firmwide total credit reserves of $15.2B
1 See notes on key performance measures on slide 15
2 Estimated for all periods. Represents the capital rules the Firm will be subject to commencing January 1, 2019. See note 8 on slide 15
3 Estimated for all periods. Represents the supplementary leverage rules the Firm will be subject to commencing January 1, 2018. See note 8 on slide 15
4 High quality liquid assets (“HQLA”) represents the amount of assets that qualify for inclusion in the liquidity coverage ratio under the U.S. rule (“U.S.
LCR”) for 2Q16, 1Q16 and 2Q15
5 Estimated for 2Q16
6 See note 7 on slide 15
7 Estimated as of 1Q16 based upon the Firm’s current understanding of the U.S. NSFR proposal issued on April 26, 2016
2Q16 Basel III
Standardized Fully
Phased-In of 12.1%2
Fortress balance sheet and returns1
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2Q16 1Q16 2Q15
Consumer & Business Banking
Average Business Banking loans
3 $21.7 $21.3 $20.4
Business Banking loan originations 2.2 1.7 1.9
Client investment assets (EOP) 224.7 220.0 221.5
Deposit margin 1.80% 1.86% 1.92%
Mortgage Banking
Average loans $231.4 $226.4 $197.2
Loan originations
4 25.0 22.4 29.3
EOP total loans serviced 880.3 898.7 917.0
Net charge-off rate
5,6 0.08% 0.13% 0.21%
Card, Commerce Solutions & Auto
Card average loans $128.4 $127.3 $124.5
Auto average loans and leased assets 74.1 70.9 63.2
Auto loan and lease originations 8.5 9.6 7.8
Card net charge-off rate 2.70% 2.62% 2.61%
Card Services net revenue rate 12.28 11.81 12.35
Card sales volume
7 $136.0 $121.7 $125.7
Merchant processing volume 263.8 247.5 234.1
2Q16 1Q16 2Q15
EOP Equity $51.0 $51.0 $51.0
ROE 20% 19% 19%
Overhead ratio 52 55 56
Average loans $454.4 $445.8 $408.1
Average deposits 583.1 562.3 529.4
CCB households (mm) 59.2 58.5 57.4
Active mobile customers (mm) 24.8 23.8 21.0
Debit & credit card sales volume $204.6 $187.2 $191.0
$ O/(U)
2Q16 1Q16 Q15
Revenue $11,451 $334 $436
Consumer & Business Banking 4,616 66 133
Mortgage Banking 1,921 45 88
Card, Commerce Solutions & Auto 4,914 223 215
Expense 6,004 (84) (206)
Credit costs 1,201 151 499
Net charge-offs 1,026 (24) (1)
Change in allowance 175 175 500
Net income $2,6 6 $166 $123
Key drivers/statistics ($B) – detail by business
Consumer & Community Banking1
$mm
Net income of $2.7B, up 5% YoY
Revenue of $11.5B, up 4% YoY, driven by NII on higher
volumes and the net impact of non-core items in Card
Services
Expense of $6.0B, down 3% YoY
Expense initiatives funding investments and growth; lower
legal expense
Credit costs of $1.2B, up $499mm YoY, reflecting a net
reserve build compared with a release in the prior year
Financial performance
Key drivers/statistics ($B)2
1 See note 1 on slide 15
For additional footnotes see slide 16
Average loans up 11% YoY and core loans up 23%
Average deposits up 10% YoY
CCB households up ~1.8mm since last year
Active mobile customers of ~25mm, up 18% YoY 2Q16 1Q16
11.55% 11.68%
Net revenue rate
adjusted8
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$ O/(U)
2Q16 1Q16 2Q15
Corporate & Investment Bank revenue $9,165 $1,030 $442
Investment banking revenue 1,492 261 (254)
Treasury Services 892 8 (9)
Lending 277 (25) (25)
Total Banking 2,661 244 (288)
Fixed Income Markets 3,959 362 1,028
Equity Markets 1,600 24 24
Securities Services 907 26 (88)
Credit Adjustments & Other 38 374 (234)
Total Markets & Investor Services 6,504 786 730
Expense 5,078 270 (59)
Credit costs 235 (224) 185
Net income $2,493 $514 $152
Key drivers/statistics ($B)2
EOP equity $64.0 $64.0 $62.0
ROE 15% 11% 14%
Overhead ratio 55 59 59
Comp/revenue 30 32 30
IB fees ($mm) $1,636 $1,321 $1,825
Average loans 114.8 111.9 100.2
Average client deposits3 373.7 358.9 401.3
Assets under custody ($T) 20.5 20.3 20.5
ALL/EOP loans ex-conduits and trade4,5 2.23% 2.11% 1.73%
Net charge-off/(recovery) rate 0.32 0.17 (0.06)
Average VaR ($mm) $44 $55 $43
Corporate & Investment Bank1
$mm Financial performance
1 See note 1 on slide 15
2 Actual numbers for all periods, not over/(under)
3 Client deposits and other third party liabilities pertain to the Treasury Services and Securities Services
businesses
4 ALL/EOP loans as reported was 1.48%, 1.37%, and 1.12% for 2Q16, 1Q16, and 2Q15, respectively
5 See note 5 on slide 15
Net income of $2.5B on revenue of $9.2B
Banking revenue
IB revenue of $1.5B, down 15% YoY, largely driven by
lower equity underwriting fees
– Ranked #1 in Global IB fees for 2Q16
Treasury Services revenue of $892mm, down 1% YoY
Lending revenue of $277mm, down 8% YoY reflecting mark-to-
market losses on hedges of accrual loans
Markets & Investor Services revenue
Markets revenue of $5.6B, up 23% YoY
– Fixed Income Markets up 35% YoY, driven by higher revenue
in Rates, Currencies & Emerging Markets, Credit and
Securitized Products
– Equity Markets up 2% YoY
Securities Services revenue of $907mm, down 9% YoY
Credit Adjustments & Other gain of $38mm
Expense of $5.1B, down 1% YoY
Credit costs of $235mm driven by higher reserves in Oil & Gas
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2Q16 1Q16 2Q15
Revenue $1,817 $14 $78
Middle Market Banking2 698 (9) 19
Corporate Client Banking2 562 51 21
Commercial Term Lending 342 (19) 24
Real Estate Banking 144 4 27
Other 71 (13) (13)
Expense 731 18 28
Credit costs (25) (329) (207)
Net income $696 $200 $171
Key drivers/statistics ($B)3
EOP equity $16.0 $16.0 $14.0
ROE 16% 11% 14%
Overhead ratio 40 40 40
Gross IB Revenue ($mm) $595 $483 $589
Average loans 176.8 170.3 156.0
Average client deposits 170.7 173.1 197.0
Allowance for loan losses 3.0 3.1 2.7
Nonaccrual loans 1.3 1.3 0.4
Net charge-off/(recovery) rate4 0.14% 0.01% (0.01)%
ALL/loans4 1.70 1.79 1.71
$ O/(U)
$mm
Commercial Banking1
Net income of $696mm, up 33% YoY and 40% QoQ
Revenue of $1.8B, up 4% YoY
Gross IB Revenue of $595mm, up 23% QoQ
Expense of $731mm, up 4% YoY and 3% QoQ
Credit costs benefit of $25mm
Net charge-off rate of 14 bps, driven by Oil & Gas related
charge-offs
Average loan balances of $177B, up 13% YoY and 4% QoQ
C&I5 loans of $89B, up 9% YoY and 4% QoQ
CRE6 loans of $88B, up 18% YoY and 4% QoQ
Average client deposits of $171B, down 13% YoY largely on
reduction of non-operating deposits
1 See note 1 on slide 15
2 Effective in the second quarter of 2016, certain clients were transferred from Middle Market Banking
to Corporate Client Banking. Prior period revenue was revised to conform with the current period
presentation
3 Actual numbers for all periods, not over/(under)
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) grouping is internally defined to include certain client
segments (Middle Market, which includes nonprofit clients, and Corporate Client Banking) and does
not align with regulatory definitions
6 CB's Commercial Real Estate (CRE) grouping is internally defined to include certain client segments
(Real Estate Banking, Commercial Term Lending and Community Development Banking) and does
not align with regulatory definitions
Financial performance
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2Q16 1Q16 2Q15
Revenue $2,939 ($33) ($236)
Global Investment Management 1,424 (75) (246)
Global Wealth Management 1,515 42 10
Expense 2,098 23 (308)
Credit costs (8) (21) (8)
Net income $521 ($66) $70
Key drivers/statistics ($B)2
EOP equity $9.0 $9.0 $9.0
ROE 22% 25% 19%
Pretax margin 29 30 24
Assets under management (AUM) $1,693 $1,676 $1,781
Client assets 2,344 2,323 2,423
Average loans 111.7 110.5 107.3
Average deposits 151.2 150.6 152.6
$ O/(U)
Asset Management1
1 See note 1 on slide 15
2 Actual numbers for all periods, not over/(under)
Net income of $521mm, up 16% YoY and down 11% QoQ
Revenue of $2.9B, down 7% YoY and down 1% QoQ
Expense of $2.1B, down 13% YoY and up 1% QoQ
AUM of $1.7T, down 5% YoY and up 1% QoQ
Client assets of $2.3T, down 3% YoY and up 1% QoQ
Net inflows of $3B into long-term products and $4B into liquidity
products
Record average loan balances of $111.7B, up 4% YoY and up
1% QoQ
Average deposit balances of $151.2B, down 1% YoY and flat
QoQ
Good investment performance
81% of mutual fund AUM ranked in the 1st or 2nd quartiles over
5 years
$mm Financial performance
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2Q16 1Q16 2Q15
Treasury and CIO ($199) ($88) ($87)
Other Corporate 33 (46) (519)
Net income ($166) ($134) ($606)
$ O/(U)
Corporate1
Treasury and CIO
Treasury and CIO net loss of $199mm, compared to net loss of
$111mm in 1Q16
Other Corporate
Net income of $33mm, driven by a net legal benefit offset by tax
items 1 See note 1 on slide 15
$mm Financial performance
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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
9
Agenda
Page
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10
Appendix
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League table results – wallet share 1H16 FY2015
Rank Share Rank Share
Based on fees 8 :
Global Debt, Equity & Equity-related 1 7.1 % 1 7.7 %
U.S. Debt, Equity & Equity-related 1 11.7 % 1 11.7 %
Global Long-term Debt9 1 7.0 % 1 8.3 %
U.S. Long-term Debt 2 11.1 % 1 12.0 %
Global Equity & Equity-related10 1 7.3 % 1 7.0 %
U.S. Equity & Equity-related 1 13.0 % 1 11.2 %
Global M&A11 2 9.9 % 2 8.4 %
U.S. M&A 2 11.7 % 2 9.9 %
Global Loan Syndications 2 7.3 % 1 7.5 %
U.S. Loan Syndications 2 9.1 % 2 10.7 %
Global IB fees8,12 1 8.0 % 1 7.9 %
Select leadership positions
Corporate & Investment Bank Consumer & Community Banking
Consumer & Business Banking
Deposit volume growing at nearly twice the industry
growth rate1
Largest active mobile customer base among major U.S.
banks2, up 18% YoY
#1 in consumer retail banking nationally for the fourth
consecutive year, according to TNS, and winner of three
TNS Choice Awards in 2016
Mortgage Banking
#1 jumbo mortgage originator3
#2 mortgage originator and servicer4
Card, Commerce Solutions & Auto
#1 credit card issuer in the U.S. based on loans
outstanding5
#1 U.S. co-brand credit card issuer6
#1 wholly-owned merchant acquirer7
For footnoted information see slide 17
Asset Management Commercial Banking
#1 in customer satisfaction13
#1 multifamily lender in the U.S.14
Top 3 in overall middle market, large middle market and
ABL bookrunner15
#1 North America Private Bank16
Asset Management Company of the Year, Asia17
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Consumer credit – Delinquency trends1
Note: Home equity and residential mortgage exclude Asset Management, Corporate and government-insured loans
1 Excluding purchased credit-impaired and held-for-sale loans
2 Residential mortgage includes prime (including option adjustable rate mortgages (“ARMs”)) and subprime loans
3 Excluding dealer commercial services and operating lease assets
Residential mortgage delinquency trend ($mm)2 Home equity delinquency trend ($mm)
Auto delinquency trend ($mm)3 Credit card delinquency trend ($mm)
12
$0
$500
$1,000
$1,500
$2,000
$2,500
Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16
30 – 149 day delinquencies
150+ day delinquencies
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16
30+ day delinquencies 30-89 day delinquencies
$0
$500
$1,000
$1,500
$2,000
Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16
30+ day delinquencies 60-119 day delinquencies
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16
30 – 149 day delinquencies
150+ day delinquencies
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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)
ALL/annualized NCOs2 979% 662% 552%
ALL/nonaccrual loans retained 35% 35% 35%
Card Services
Net charge-offs $860 $830 $800 $60
NCO rate 2.70% 2.62% 2.61% 9 bps
Allowance for loan losses $3,684 $3,434 $3,434 $250
ALL/annualized NCOs2 107% 103% 107%
Mortgage Banking and Card Services – Coverage ratios1
Mortgage Banking and Card Services credit data ($mm)
NCOs ($mm)
1 See note 6 on slide 15
2 Net charge-offs annualized (NCOs are multiplied by 4)
3 4Q10 adjusted net charge-offs for Mortgage Banking exclude a one-time $632mm adjustment related to the timing of when the Firm recognizes charge-offs on delinquent loans
4 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%
5 3Q12 adjusted net charge-offs for Mortgage Banking exclude the effect of an incremental $825mm of net charge-offs based on regulatory guidance
6 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
7 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%
2,081
1,385 1,224 1,169 1,080
952 901 877 808 697 599 534 452 293 206 168 177 112 81 113 104 81 41 59 60 38
4,512
3,721
3,133
2,671
2,226
1,810
1,499 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
$0
$1,000
$2,000
$3,000
$4,000
$5,000
1Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q121Q132Q133Q134Q131Q142Q143Q144Q141Q152Q153Q154Q151Q162Q16
Mortgage Banking Card Services
3 4
5 6
7
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2Q16 1Q16 2Q15
Consumer, ex. credit card
LLR/Total loans 0.93% 0.98% 1.20%
LLR/NPLs 59 59 57
Credit Card
LLR/Total loans 2.80% 2.73% 2.75%
Wholesale
LLR/Total loans 1.31% 1.32% 1.18%
LLR/NPLs 234 218 457
Firmwide
LLR/Total loans 1.40% 1.40% 1.45%
LLR/NPLs (ex. credit card) 110 107 109
LLR/NPLs 161 153 161
Firmwide – Coverage ratios1
$14.2B of loan loss reserves at June 30, 2016, up
$0.3B from $13.9B in the prior year. Other than energy,
both wholesale and consumer credit quality remain
stable.
Nonperforming loan loss coverage ratio (ex. credit card)
of 110%1
1 See note 3 on slide 15
Comments JPM Credit Summary JPM Credit Summary
$mm $mm
7,634 7,241 7,017 6,921 6,645 6,616 6,303 7,367 7,178
15,326 14,889 14,185 14,065 13,915 13,466 13,555
13,994 14,227
0.00%
1.00%
2.00%
3.00%
2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
0%
100%
200%
300%
400%
Loan loss reserve Nonperforming retained
loans
Loan loss reserve/Total loans1 Loan loss reserve/NPLs1
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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 securities and investments. 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. Adjusted expense and adjusted overhead ratio are non-GAAP financial measures. Adjusted expense excludes Firmwide legal expense (an expense/(benefit) of $(430)
million, $(46) million and $291 million for the three months ended June 30, 2016, March 31, 2016 and June 30, 2015, 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.
3. 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.
4. CCB provides certain non-GAAP financial measures, as such measures are used by management to facilitate a more meaningful comparison with prior periods. The
adjusted net revenue rate excludes a gain on the sale of Visa Europe for the quarter ended June 30, 2016, and the mark-to-market adjustment on the Square investment
for the quarters ended March 31, 2016 and June 30, 2016.
5. 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. Tangible common equity (“TCE”), return on tangible common equity (“ROTCE”) and tangible book value per share (“TBVPS”), are considered key financial performance
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. TCE, ROTCE, and TBVPS are meaningful to the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.
8. Common equity Tier 1 (“CET1”) capital, Tier 1 capital, Total capital, risk-weighted assets (“RWA”) and the CET1, Tier 1 capital and total capital ratios and the
supplementary leverage ratio (“SLR”) under the Basel III Fully Phased-In capital rules, to which the Firm will be subject commencing January 1, 2019, are 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 Management on pages 149-158 of the Firm’s Annual Report on Form 10-K for the year ended December 31, 2015,
and pages 54-59 of the Firm’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016.
9. Core loans include 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. For further information on total loans and core loans, see pages 3, 12, 16, 19, 21 and 23 of the Earnings Release
Financial Supplement.
Notes
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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, respectively
5. Excludes purchased credit-impaired (PCI) write-offs of $41mm, $47mm, and $55mm for 2Q16, 1Q16, and 2Q15, respectively. See note 3 on slide 15
6. Excludes the impact of PCI loans. See note 3 on slide 15
7. Excludes Commercial Card
8. The adjusted net revenue rate excludes a gain on the sale of Visa Europe for the quarter ended June 30, 2016, and the mark-to-market adjustment on the Square
investment for the quarters ended March 31, 2016 and June 30, 2016. See note 4 on slide 15
Notes
16
A
P
P
E
N
D
I
X
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 Non-Agency Jumbo Mortgage Producer rankings
4. Based on Inside Mortgage Finance as of 1Q16 for Servicer and Originator rankings
5. Based on disclosures by peers and internal estimates as of 1Q16
6. Based on Phoenix Credit Card Monitor for 12-month period ending June 2016; based on card accounts, revolving balance dollars and spending dollars
7. Based on Nilson data as of 2015
8. Reflects ranking of revenue wallet and market share. Source: Wallet from Dealogic Media Manager Cortex as of July 1, 2016
9. 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
10. Global Equity and equity-related ranking includes rights offerings and Chinese A-Shares
11. 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.
12. Global Investment Banking fees exclude money market, short-term debt and shelf deals
13. CFO Magazine’s Commercial Banking Survey 2015
14. SNL Financial based on FDIC data as of 1Q16
15. Thomson Reuters as of June 2016 YTD
16. Euromoney 2016 rankings
17. The Asset, June 2016
Notes
17
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 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, 2015, and Quarterly Report on Form 10-Q for the quarter ended
March 31, 2016, which have been filed with the Securities and Exchange Commission and are
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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