JPMorgan Chase & Co.

1
平 成 27 年 2 月 26 日
会社名
ジ ェ ー・ピ ー・モ ル ガ ン・チ ェ ー ス
(JPMorgan Chase & Co)
代表者名
ジェームズ・ダイモン
(James Dimon)
最 高 経 営 責 任 者 (CEO)兼 社 長
86340 東 証 第 一 部 外 国 株 ）
（コード番号
問合せ先
東京
アン
弁護
弁護
弁護
TEL
都港区元赤坂一
ダーソン・毛利
士
中村
慎二
士
椙弘
真人
士
岡田
奈穂
03-6888-1000
& カンパニー
丁目２番７号 赤坂Ｋタワー
・友常法律事務所
/弁 護 士
辻本
晴子
/弁 護 士
中島
浩斗
米 国 証 券 取 引 委 員 会 へ の Form 8-K の 提 出
ジ ェ ー ・ ピ ー ・ モ ル ガ ン ・ チ ェ ー ス & カ ン パ ニ ー は 、 2015 年 2 月 25 日 付
で 、 米 国 証 券 取 引 委 員 会 に Form 8-K を 提 出 い た し ま し た 。 内 容 に つ い て は 添
付をご参照ください。
L2-#694018
JPMORGAN CHASE & CO
FORM
8-K
(Current report filing)
Filed 02/25/15 for the Period Ending 02/24/15
Address
Telephone
CIK
Symbol
Fiscal Year
270 PARK AVE
38TH FL
NEW YORK, NY 10017
2122706000
0000019617
JPM
12/31
http://www.edgar-online.com
© Copyright 2015, EDGAR Online, Inc. All Rights Reserved.
Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): February 24, 2015
JPMorgan Chase & Co.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of
incorporation or organization)
1-5805
(Commission File Number)
13-2624428
(I.R.S. employer
identification no.)
270 Park Avenue, New York, New
York
(Address of principal executive offices)
10017
(Zip Code)
Registrant’s telephone number, including area code: (212) 270-6000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01 Regulation FD Disclosure
On February 24, 2015, JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) held an Investor Day presentation during which it provided information to investors about the Firm and its
various lines of business. Exhibit 99.1 is a copy of the slides furnished at, and posted on the Firm's website in connection with, the presentation.
The slides are being furnished pursuant to Item 7.01, and the information contained therein shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or
otherwise subject to the liabilities under that Section. Furthermore, the information contained in Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Firm under
the Securities Act of 1933.
This Current Report on Form 8-K (including the Exhibit hereto) 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'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 ’ s actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan
Chase ’ s Annual Report on Form 10-K for the year ended December 31, 2014, which has been filed with the Securities and Exchange Commission and is available on JPMorgan Chase’s website
(http://investor.shareholder.com/jpmorganchase) and on the Securities and Exchange Commission ’ s website (www.sec.gov). JPMorgan Chase 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.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No.
99.1
Description of Exhibit
JPMorgan Chase & Co. 2015 Investor Day presentation slides
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
JPMorgan Chase & Co.
(Registrant)
By:
Dated:
February 25, 2015
3
/s/ Neila B. Radin
Neila B. Radin
Senior Vice President
INDEX TO EXHIBITS
Exhibit No.
99.1
Description of Exhibit
JPMorgan Chase & Co. 2015 Investor Day presentation slides
4
February 24, 2015 F I R M O V E R V I E W M arianne Lake, Ch ief F in ancial Officer
Forw ard -looking s tatements This presentatio n contains forward- looking s tatements w ithin the meaning of the P rivate Securities Litigation Reform Act of 1995. These statements are based o n the current beliefs and expectations of J PMorg an Chase & Co .’s management and are subject to significant risks an d uncertainties. A ctual results may differ from thos e set forth in the forward-looking statements . Factors that could cause JPM organ Chase & Co.’s actual resu lts to differ materially from those des cribed in the forward-looking statements can be foun d in J PMor gan Chase & C o.’s Annu al Report o n Fo rm 10-K for the year ended D ecember 31, 2014, w hich has been filed with the Securities and Exchange Co mmission and is available on JPM organ Chase & Co.’s w ebs ite (http://in ves tor.shareholder.com/jpmorganchase), and on the Securities and Exchange Commiss ion’s w ebsite ( www .s ec.g ov). JPM organ Chase & Co. does not undertake to update the forw ard-look ing statements to reflect the impact of circums tances or events that may aris e after the date of the fo rward-loo king statements.
F I R M O V E R V I E W S trong fundamentals and track record o f adap ting JPM organ Chase ov erview
Four leading client franchises – together d elivering significant value
Client focus an d long-term approach – consistently investing and innov ating
D elivering significant operating leverage – w hile investing through-the-cycle
D elivering strong capital returns – w hile adapting capital and liquidity framework s
Strong foun dation – capital, liqu idity, balance sheet, risk discip line
S implification and de-ris kin g
Commitmen t to contro ls and culture Building exceptional client franchis es 1 Operating with fortress principles M aximizing long-term shareholder value 55-75% N et payou t ratio ~ 15% RO TC E 55%+/- Overhead ratio 2 3 ~12% CET1 ratio Leading to 4 1
F I R M O V E R V I E W 2014 results – s trong underlying financial perfor mance JP Morgan Chase overview Revenue1 Adjusted expense2 N et income CET1 3 Capital return
D ivers ification dr iving stable revenue, des pite low rates, mortgage volatility and challenging markets
Adjusted expense dow n by $640mm in 2014 YoY
A dju sted overhead ratio1 of 58-60% over the las t 4 years
Record net income and EPS despite revenue headwinds and elevated leg al expense
Increased CET1 by 70 bps in 2014 while returning $10B net to shareh olders
Increas ed CET1 by >300 bps since 2010 w hile returning $35B net to s hareholders R OTCE4
2010-20 12 RO TCE of 15% – 2013 at 11% but 15% adjusted $98 B $58B 60% $ 22B $5.29 13 % 10.2% $10B 1 See note 1 o n slide 48 2 S ee note 2 on slid e 48 3 Advanced F ully Phased-In basis; see note 4 on s lide 48 4 S ee note 3 on slide 48 2
F I R M O V E R V I E W JPM continues to be a leader J PMo rgan Chase overview $98 $85 $78 $85 $35 $34 J PM WFC C BA C G S M S $22 $2 3 $8 $5 $8 $6 JPM WFC C BA C G S MS 13% 16% 4% 3% 12% 10% JP M WF C C BAC GS MS F Y2014 Net income ($ B) FY 2014 Managed rev enue1 ($B) F Y2014 ROTCE2 F Y2014 TBV PS 2 Y oY g rowth 22% 5% (49)% (60)% 10% 117% J PM WFC C BA C G S M S 10% 1 4% 3% 5% 7% 9% JPM WFC C B AC G S MS $10 $13 $0.3 $4 $7 $1 J PM WFC C BA C G S MS FY 2014 EPS Y oY growth F Y2014 net capital dis tributio n ($B) 1 S ee note 1 in s lide 48 . For GS and M S, reflects revenue on a reported basis 2 See note 3 in slide 48 3 Reflects net capital distribution for the last twelve months ( i.e., 4Q13-3Q14) JPM CA GR 2010-2014 8% 3 3 3
F I R M O V E R V I E W Sustained tangible book value grow th JP Morgan Chas e overview 1 See note 3 on s lide 48 2 N et of employee iss uan ce 3 Total net capital retu rn payout ratio 4 N egative net payout ratio 5 Represents gr owth in EO P tangible common equity; see note 3 on slide 48 2010 to 2014, JP M's profits w ere ~$97B, despite ~$22B in after-tax legal expens e and ~$13B of regulatory and control costs And we added ~$59B5 to capital after net return to s hareholders of ~ $35B 2 2 $1 5.35 $16.45 $18.88 $21.96 $22.52 $27.09 $30.18 $3 3.69 $38.75 $40.81 $44.69 2004 2005 2006 2007 20 08 2009 2010 2011 2012 2013 2014 Tangible book value per s hare (TBV PS )1 11% 10Y CAG R 11% 5Y CAG R 10% 3Y CAG R 10% YoY grow th Total capital retu rn2 ($B) ($12) ($6) $1 $11 $4 $9 $10 CET1 r atio 4.7% 6.4% 7.0% 7.9% 8.7% 9.5% 10.2% 5.0% Payout ratio3 34% 62% N /M 4 N /M 4 7% 60% 22% 54% 47% 74% 32% N/A N/A N/A $5 $9 $6 $1 4
F I R M O V E R V I E W NIR – s tability driven by diversification of bus ines ses JPM organ Chase ov erview 2010 2011 2012 2013 20 14 N oninteres t revenue (NIR) ($B) Note: NIR pres ented on a Reported basis 1 S tandard deviation divided by average o ver 2010-2014 period Peer N IR volatility1 3% 4% 4% 8% 12% 13% 1 3% J PM US B WFC MS GS C BAC $51.7 $49.5 $52 .1 $53.3 $50.6 Stable sources of revenue Investment banking fees Car d income Lending and depos it related fees Mortgage S ervicing (excl. M SR ris k mgmt.) Tradin g revenue Private Equity gains Mortgage Production (incl. repurchase) S ecurities gains O ther ( incl. MSR risk mgmt.) As set Management, A dmin. & Commissions Volatile so urces of revenue J PM has the least volatile NIR among peers driven by divers ification of our businesses >2/3 of N IR is driven by bus ines ses with stable revenue 12% 3% 3% V olatility1 5
F I R M O V E R V I E W N II – well positioned for rising rates JPM organ Chase overview 2.95% 2.18% 2.65-2.70% 2005 -2010 NIM 2014 NIM P ro forma N IM ~50 b ps $1 0B+ NII Note: Managed bas is; refer to note 1 on s lide 4 8 1 As of D ecember 31, 2014. Reflects sensitivity profile of 12-month pretax N II of th e Firm’s non -market-based business activities 2 For the AF S p ortfolio; instantaneous rate s hock reflects ~ +200 bps long-end an d ~+ 375 b ps fro nt-end on fully phased-in Basel III capital. Tax effected at an incremental tax rate of 38% F irm NIM simulatio n
The F irm is pos itioned to benefit from rising rates
EaR o f $2.9B for a 100 bps parallel s hift1 – Long-end rates only contribute $0.6B – the mo st meaningful driver is front-end rates
It w ill take time to fully recapture the expected NII benefit – the pace of Fed tightening is uncertain
Potential upfront negative impact to AOCI of ~50 b ps of capital on s tylized rate s hock scenario2 EaR and A OCI Revised NIM range from 2014 Investor Day considers es t. cos t of TLAC compliance K ey assumptions :
N ormalization of inter es t rates
Balance sh eet mix shift
Faster deposit re-pricing than previous cycle H igh -end from 2014 Investor D ay – on higher average interest ear ning assets – and low er starting NIM 6
F I R M O V E R V I E W BA CC G S M S PNC US B WFC JP M 13% 1.34x 0.50x 1.00x 1.50x 2.00x 2.50x 3.00x 5% 10% 15% 20% P /T B VP S 2017 ROTCE 13.0x 12.3x 12.3x 11.5x 10.2x 9 .5x 9.5x 9.2x US B WFC PN C M S GS JP M BAC C Peer valuation – discount versus peers JPM organ Chase overview 2.5% 2.5% 2.1% 2.1% 1.2% 0.9% 0.7 % 0.1% J PM WFC USB PN C G S MS BAC C N ote: F or footnoted information, refer to slide 49 2014 D ividend yield2 2016 P/E M ultiple DPS CA GR (2010-2014) Pre-cris is 1 11.9x 1 2.8x 12.8x 9.2x 10.9x 11.6x 10.5x 11.0 x 2016 yield 3 .2% 2.9% 2.5% 2.4% 1.4% 1 .9% 2.3% 1.1% 4 Before During A fter Cris is 3 Cris is 3 Crisis3 Current4 JP M 10% 23% (17%) (18%) G S (2%) (1 2%) (7%) (4%) BAC (9%) (16%) 14% (4%) WFC 14% 16% (3%) 5% USB 0% 9% 5% 3% C (3%) nm (3%) 10% P NC 13% 6% (0%) (14%) M S (14%) (23%) 2% 9% P /TBVP S vs. RO TCE regress io n – premium/(discount) over time 68% 61% 48% 47% 13% 15% 32% nm 7
F I RM O V E R V IE W
Scale an d platform enable a portfolio approach for clients – profitability attained through a broad product set and cross-border capabilities
Premier Inv es tment Banking platform and international footprin t leveraged by CB and A M
Robus t cro ss -s ell of Tr easury Services and Inves tor Services products
Rich referral netw ork b etween CIB, CB and A M (~2,500 referrals betw een CIB and AM and 360+ U .S . Private B ank clients from CB referr als over the las t 3 years)
D iversification of businesses allows for significant inves tments through-the-cycle
Extensive branch network plays a critical role as a key sales chann el utilized by CB and AM
D epth of product expertis e, s pecialized industry know ledge and access to integrated coverage teams
Expense synergies from s hared corpo rate infrastructure (e.g., F inance, Ris k, shared technology and operations, cybersecurity) an d scale ben efits enabling us to service clients more efficiently
Fortress balance sheet provides strategic leverage (e.g., lending gr owth)
Ability to attract and develop top talent Benefits of univers al ban king model go beyond measured s ynergies Customers , clients and employees choose J PMo rgan Chase becaus e of the breadth and quality of the franchise and our two iconic brands ~$15 B revenue synergies + ~ $3B cost synergies = $18B gross $6 -7B net income Ou r bus iness es generate s ign ificant benefits from each other J PMorgan Chas e overview 8
F I R M O V E R V I E W Implications of separation scenario – Chase and J.P. Morgan JPM organ Chase overview Comments
While most revenue sy nergies should remain – modest portion w ould be los t
The ability to invest through -the-cy cle and leaders hip position s could erode
Each company w ould remain at s cale – bu t would n eed to inv es t to rebuild ancillary businesses – critical infras tructure – and duplicate Corporate functions – w hich would impact margin s Revenue and expense
Small negative
Negative – not quantified
Meaningfully negative Capital
Amount of excess capital available to s hareholders would b e more modest than implied by G -SIB scores alone – given CCAR would be th e bin ding constraint for Consumer
~$15B+ /- Valuation
Valuation range more modes t than research has implied
Ups ide d riven by multiple expans io n
V alue of synergies los t would be greater than capital freed up C onclusion Delivering on our commitments is the highest certainty path to multiple expansion and lon g-term s hareholder value
Managing transition to standalone organizations
Separating and rebuilding systems , technology, controls and risk management process es
Retaining management and top talent
Protecting client franchise and market leadership po sition Execution ris k
Increased u ncertainty 9
F I R M O V E R V I E W Agenda
F our exceptional client franchis es – leaders in th eir o wn r ight
Build our bu sines ses for the long-term – consistently inno vating
Focus on client experience and lifetime relations hips
Complete platform and diversified operating model – d rives client engagement, s ynerg ies an d stable returns
Experienced management team w ith deep talent B uilding exceptional client franchises 1 Operating w ith fortr es s pr inciples Maximizing long-term shareho lder v alue 2 3 Leading to 4 55-75% N et pay out ratio ~ 15% RO TCE 55%+/- Overhead ratio ~12% C ET1 ratio 10
F I R M O V E R V I E W Leading client franchises Building exceptional client franchis es 1 Note: For footnoted information, refer to slide 50 We have built our client fr anchises over time w ith substantial share gains an d opportunity for more
Relations hip s w ith ~50% of U .S . households
#1 customer satis faction among the larges t U.S. banks for the third cons ecutiv e year14
# 1 primary banking relations hip share in Ch as e footprint15
#1 U.S . credit card iss uer based on loans outstanding2
~50% of U.S. eCommerce volume16
84% of 10 -y ear LT mutual fund A UM in top 2 quartiles21
23 cons ecutive quarters of positive LT A UM flows
Rev. grow th >70% & LT AU M growth >80% since 2006
Doubled G WM client ass ets (2x indus try rate) since 200622
Average loans grew by 13% CA GR 2006-201420 Industry -leading credit performance TTC– 8 consecutive q uarters of net recoveries or s ingle digit NCO rate Leveraging the F irm’ s platform – avg. ~9 products /client >80% of F ortune 500 compan ies do bus ines s with us Top 3 in 15 product categories out of 1617 #1 in both U .S. & EM EA IB fees 18 #1 in Global Debt, Equity & Equity-related18
revenue ($ B) $0.7 $2.0 % of North A merica IB fees 16% 35% Global active long-term o pen -end mutual fund AUM flows 10 #2 #1 AUM market share 10 1.8% 2.5% Overall Global Private Bank (Euromo ney) #5 #1 Client as sets market s hare 11 ~ 1% ~ 2% U .S . Hedge Fund Manager (A bsolute Return)12 #1113 #2 A UM market s hare 12 1.4% 3 .4% CCB CIB CB AM 11
#1 in Global Long-Term Debt & Loan S yndications 18
Top 3 Cu stodian globally with A UC of $20.5T
#1 U SD clearing house with 19.2% s hare in 201419 2006 2014 Depos its market s hare 3.6%1 7.5% # of top 50 Chase markets where w e are #1 ( top 3 ) deposits 11 (25) 15 (4 0) Card s ales market sh are 1 6% 2 21% 2 Merchant proces sing volume #33 #14 G lob al IB fees 5 #2 #1 Market share 5 8.6% 8.1% Total M ark ets6,7 #8 #1 Market share 6,7 7.9% 16.2% FICC6,7 #7 #1 M arket share 6,7 9.1% 18.6% Equities6,7 #8 #3 Market share 6,7 6.0% 11.5% # of states with M iddle M ar ket b anking pres ence 22 30 # of states with top 3 Middle Market banking market share8 6 10 M ultifamily lending9 #28 # 1 Gr oss Investment Banking
F I R M O V E R V I E W Proven bes t-in- clas s long-term performance Building exception al client franchises 1 $529 $346 $330 $258 $219 $207 $1 75 JP M BLK
BK Allianz
MS U BS CS $99 $86 $70 $79 $56 $31 $27 $29 $20 $22 $130 $112 $99 $99 $78 J PM GS BA C C MS IB fees Markets revenue (ex. FV A/DV A) 10% 8% 8% 6 % 3% 2% 9% 4% 5% (0%) 3% 4% J PM US B WFC PN C BA C C Note: For footnoted information, refer to s lide 51 EOP deposits : CAG R 201 0–142 8% 8% 6% 6% 6% 2% JP M PNC WFC C U SB BAC EO P core loans: CAGR 2010– 141 Markets revenue & IB fees ($B): Cum. 2010–14 LT net client asset flows ($B) : Cum. 2010–14 Total Domestic retail 1 6% 13% 11% 1 3% 9% 8% 7% 7% 5% 6% 6% 8% 8% 5% (0% ) (7%) 9% 2% 4% 4% 5% 4% 8% 5% 8% (0% ) 5% 0% 2014 Flow s 201 4 Yo Y gr owth 2014 YoY grow th Total D om. retail $108 $181 $48 ($161) $65 $72 $34 201 4 Sh are M arkets IB fees 3 4 5 6 7 8 12
F I R M O V E R V I E W Proven bes t-in-class long -term performance (cont’d ) Building exception al client franchises 1 M erchant processing bankcard volumes5 2 010 2013 2010 2013 Chase Industry +60% +21% 12% 11% 9% 6% 2% 2% JPM CO F³ A XP DFS C BAC 2010 2011 2012 2013 2014 C redit card s ales: CA GR 2010–142 Cu stomer satisfaction score: 2010–141 21% market share in 2014 – added ~500 bps over the las t 28 quarters 2014 Y oY grow th Chase Indus try Average Regional Banks M ids ize Banks Big Banks N ote: F or footnoted informatio n, refer to slide 52 11 % 12% 8% 5% 5% 3% 3 4 8% 22% 8% 18% 3% 15% O nline M obile O nline Mobile Online Mobile JPM WF C BAC Online and M obile cus tomers: Y oY growth 20 14 Cus tomers (mm) O nline Mobile 36 25 31 1 9 14 17 13
F I R M O V E R V I E W Consistently innovating Building ex ceptional client franchises 1
S trateg ic partnership w ith Visa
Fully integrated platform enables customized netw ork ru les and pricing that other acquirer s cannot replicate
Targeted offers platform CCB
Continue to launch inno vative solutions w ithin and acros s as set class es – 2009-14 GIM multi-as set solutio ns A UM CA GR of 31%
Enhan ced GWM digital and client experience
Introduced digital relationship plannin g tool in the U .S .
Launched S er vice K nowledg e Cen ter to improve client s ervice team r es ponse time
Launched J .P . Morgan M obile I nsights app
Star A ward & B es t of the Best Award in 2014
20 countries , 10 languages , 40,00 0 us ers
End-to-end global who lesale FX platform – including merged capabilities w ith ChaseNet technology Creation of JPM Execution Services #2 rank in all FX E-commerce multi-dealer platforms Mobile trading order technology w ith au tomated mess aging and live res earch – further enab ling clients to operate 24/7
S upport FX execution for institutional clients via the iPhone, Android and iPad Profit and Loss M agazine Digital FX award for best mobile platform in 2014 CIB AM
QuickP ay and Q uickD epos it improve cus tomer experience #1 mobile banking functionality1 N ext generation ATMs w ith large s creens, us er friendly interface, and increased functionality Cas h recyclers simplify branch activities an d impr ove productivity Self-Service Channels Phys ical Footprint End-to-End Platform Digital Wallets 1 Bas ed on Forrester Research, U .S . Mobile Banking Functionality Ranking s as of May 2014 14
I nnovative approach to client coverage – leveraging CI B’s p remier industry vertical expertise
Launched J PMor gan ACCESS ® Next G eneration
Designed b y clients to deliver increased functionality, greater efficiency and a better client experience – online, host-to - host & mobile
Ranked the #1 cash management portal by G reenw ich Ass ociates for 2014
Migrated 12,000 clients to A CCES S over las t 2 years CB 2014 Cash Management Services Benchmark No.1
C has eP ay: Proprietary platform had s uccessful pilot and is now ready for broader launch in 2015
Apple P ay: Participant in Apple w allet
New mob ile app w ith cu stomized details & more intuitive navigation
Chase
F I R M O V E R V I E W A genda
Strong capital and liquidity position
S implification and de-ris king
O ur balance s heet is les s complex and of hig her quality
D emons trated strong ris k discipline through-the-cycle
Executed on s ign ificant busines s simplification agenda – simplification contin ues to be a focus
Commitment to controls and culture
Enhanced control infras tructure and gov ernance – significant inves tments
Cu lture and conduct – recommit to our bu sines s principles Building exception al client franchises 1 O perating with fortress principles 2 Leading to 4 M ax imizing long -term shareholder value 3 55-75% Net payout ratio ~15% ROTCE 55 %+/- O verhead ratio ~12% CET1 ratio 15
F I R M O V E R V I E W Strong capital and liquidity position Operating with fortres s principles 2
Management has met all of its capital and liquidity commitments
J PM holds an appropriate amount of liquidity Key takeaw ays N ote: F or footnoted information, refer to slide 53 Es timated 4Q 14 Common Equity Tier 1 (CET1) ratio 1 10.2% Bank Supplementary Leverage Ratio (SLR)2 5.9% Firm SLR2 5.6% Tier 1 capital ratio2 11.4% Firm Liquidity Coverage Ratio (LCR) > 100%3 Bank LCR >10 0%3 J PM internal stress >100 %4 N et S table F unding Ratio (NSF R) > 100%5 Total Loss Abs orbing Capacity (TLAC) ~15%6 C ap ita l Li qu id ity Since 2010… > 300 bps ~2x >100 bps >400 bps Capital and liquid ity p osition Calibration r ange of 16-20% under F inancial S tability Board proposal 16
F I R M O V E R V I E W 2010 201 4 For tress balance s heet – assets Operating w ith fortres s principles 2 O ur b alance sheet has grow n – but it is less complex EO P as sets ($B) Note: For footnoted info rmation, refer to slide 54 D epos its $930 $1,363 Securities $348 S ecured financing2 $358 Trading ass ets3 $399 Lo ans 4 $743 Other5 $197 Cash1 $480 C as h1 $39 Securities $316 Secured financing2 $356 Trading ass ets3 $490 Loans4 $661 Other5 $207 HQ LA ~ $600B G oodwill $48 G oodwill $49 Wholesale Consumer F irmwide V aR and level 3 ass ets have both declined by more than 50% +$440B $2,11 8 $2,573 17
F I R M O V E R V I E W Loan portfolio and performance O perating with fortress principles 2010 2014 Expect core loan gr owth of 10%+/- in 2015; expect NCOs to remain low at $ 4B+ in 2015 Consumer Consumer CIB CIB CB CB AM A M $6 93B $757B Non -core 3 4% of total Non-core 17% of total Peer N CO rate comparis on (avg. 2010 -2014) Sou rce: Company reports 1 Cons umer businesses, exclu ding Student, sub-prime, option A RM and PCI portfolios 2 Res idential Real Estate, excluding s ub-prime, option A RM and PCI portfolios 3 Represents inves tment grade as a percentage of total Wholesale loans and criticized as a percentage of total Wholes ale retained loans 4 “JP M mix adjusted” is calculated by applying JP M NCO rates to peer mix for Car d versus all oth er portfolios EOP loans 1.58% 0.91% 1.15% 1.17% 1.77% 0 .88% 1.11% 0.91% 1.32% J PM reported PN C U SB WF C BA C J PM mix adjus ted4 (14)% 5% 6% 11% 24% 2% 8% Core C AGR (%) 2 010-2014 J PM reported Firmwide Consumer Wholesale PNC US B WFC BAC 2 J PM has exhibited best-in -clas s credit performance vs . peers over the last 5 years , when adjusting for loan mix 2010 2 014 F irm N CO rate, 3.81% 0.70% excl. PCI loans 2010 2014 A vg. FICO s core1 719 733 Avg. LTV2 81% 63% 2010 2014 Inves tment grade %3 66% 7 4% Criticized %3 6.4% 1.5% 2014 Y oY core loan growth 8% 18
F I R M O V E R V I E W Incremental financial impact1 Executed s ig nificant busines s simplification agenda Operating w ith fortres s p rinciples 2 1 Do es not include the impact of the O ne Equity Partn ers and P rivate Equity portfolio sales
A nnounced exit of Sears Canada and several smaller non-core car d partners hips
Announced exit of International Commercial Card
Sold interest in Carlson Wagonlit Travel agency
S old Retirement P lan Services unit
Exited prepaid card (EFS ) and Order to Pay (O TP ) bus in es ses
Sold health savings account business Bus iness s implification initiatives
Completed the s pin -out of O ne Equity Partners and closed on the sale of a portion of ou r PE portfo lio
Exited phys ical commodities business
Sold Global Special O pportun ities G roup (G SOG ) portfolio
Exit in process of majority of Broker Dealer S ervices (B DS) business
Terminated transaction services for ~500 Foreign Correspondent Banking clients
Ceased originating s tudent loans Other meaningful bus ines s actions
S implified M ortgage Banking products from 3 7 to 18 products as of 2014, with a target of further reducing to 15
Ration alized Global Inves tment Management produ cts: reduced U .S . funds # by net 6%, As ia fu nds net 4 % and Europe funds net 2 % in 201 4
D e-ris king through client s election – discontinuing certain businesses with s elect clients:
Exited ~ 8K clients in Bus iness Banking and Commercial Banking
Exited ~5,500 fo reign Politically Exposed Persons relation ships
Sold s ignificant portion of CIB ’s trade finance EXIM /ECA portfolio Reven ue Expens e $1.6B $1.6B 201 5 2016 and beyond $0.7B $0.6B 19
F I R M O V E R V I E W Recommittin g to our business principles and reinforcing o ur culture Operating w ith fortres s principles 2
Ev ery business and function – across all geograph ies – is in the process of implementing a Culture and Conduct program
A sses sment o f culture and key conduct risks
Themes and gaps against what we expect of o urselves will trans late into action plans
Further s tr engthened the connection between controls and o ur compens ation and perfor mance management framew ork
Ris k and control iss ues carefu lly cons idered throughout the Firm’s performance evaluation and incentive compensation process es
Formal reviews and firmwide expectations designed to incentivize appro priate behaviors
Clawback policy and review in place for current, departing and former employees Doing First Class Business in a First Class Way is at the center of everyth ing we do Bus iness P rinciples
In 2014 – rearticulated our business principles and is sued the “How We D o Bus iness Report”
S ponsored by the Board and Operating Committee – delivered by firmwide management – reinforced at all lev els Building Upon How We Do Business EXCEPTION AL CLIENT S ERVICE O PERATION AL EXCELLEN CE A COM MITMENT TO IN TEGRI TY , FAIRN ESS AN D RES PON SIBILITY A GREAT TEAM AN D WIN NIN G CULTU RE 20
F I R M O V E R V I E W A genda a) D elivering significant operating leverage – while investing through-the-cycle
Consistently self-funded growth and investments
Identified additional ex pens e opportunities – tar geting meaningful efficiency impr ovements b) Delivering s tro ng capital returns – while adapting capital and liquidity frameworks
N ew capital and incentive framew ork reflects multiple constraints – including G -SIB
Balancing compliance with capacity for capital distributions Operating with fortres s prin ciples M aximizing long -term shareholder value 2 3 Leading to 4 Building exceptional client franchis es 1 55-75% Net payout ratio ~15% ROTCE 55%+ /- Overhead ratio ~12% CET1 ratio 21
F I R M O V E R V I E W J PMor gan Chase managed bas is 1 Best- in-class peer Efficiency JP M Adjusted overhead ratio (%) expense3 s av es ($) CCB 58% 55% ~50% ~$2.0B CIB 67% 6 0% 55 -60% $2.8B CB 39% 38 % 35% AM 71% 69% ≤ 70% JP M 60% 59% Overhead ratios 2 w eighted by JPM revenue mix JP M 2014 overhead ratios 55%+ /- Competitive efficiency across business es – with room for improvemen t Maximizing long-term s har eholder value – operatin g lev erage 3a 6 2% ex. legal Citi WFC PNC UBS WM & BLK ex. legal Note: For footnoted information, refer to slide 55 ex. legal $1.3B Expense reductions $1.5B Business simplification Managed basis including legal 22
F I R M O V E R V I E W 50 49 48 5 5 5 1 2 3 3 3 2 2012 201 3 2014 2015 Adjusted expen se trending down despite significant inves tments M aximizing long-term shareholder value – operating leverage 3a Adjus ted expense1 ($B) 1 See note 2 on s lide 48 2 Cost of controls defined as incremental s pen d over 20 11 3 Remaining adjus ted expens e includes compensation, occupancy, other technology & communication, profess ional & o uts ide services, amortization, minority interest and other expenses 4 Ad jus ted overhead ratio defin ed as adjusted expense divided by total managed revenue. See note 1 on s lide 48 Core expense efficiencies self-fu nding growth, investments and cost of controls Investments in technology and marketin g Cos t of controls2 Remaining adjusted expense3 Adjusted overhead ratio4 60% 59% 60% $59.7 $59.0 $58.4 $57+ /- Bus iness s implification D riven by bus ines s s implification ($3)B 23
F I R M O V E R V I E W a) Delivering s ignificant operating leverage – while investing through -the-cycle
C onsistently s elf- funded growth and investmen ts
Identified additional expense op portunities – targeting meaningful efficiency improvements b) D elivering strong capital returns – w hile adapting capital and liquidity framew orks
New capital and incentive framework reflects multiple constraints – including G-S IB
Balancing compliance with capacity for capital d is tribution s A genda Maximizing long-term s hareholder value 3 55-75% N et pay out ratio ~15% R OTCE 55%+/ - Overhead ratio ~12% CET1 ratio Leading to 4 Operating w ith fortres s principles 2 B uilding exceptional client franchises 1 24
F I R M O V E R V I E W Capital and incentive framew ork M aximizing long -term shareholder value – capital 3b
Framew ork cons iders all po tential constrain ts – including S LR, G -SIB, CCA R, Standardized and A dvanced RWA
JPM to be bound b y Standardized RWA – we continue to attribute CET1 based on Advanced RWA – better reflection of risk
Balance sheet limits on size and Standardized RWA – will minimize variance betw een regimes
LO B allo cation will increase over time with F irm’s capital glidepath – pricin g models today us e futu re capital levels ass uming 10% marginal cost of equity
Introducing G-SIB framework – capital charge bas ed on marginal G- S IB contribution A lign incentives and bus iness decis ions to maximize RO TCE The F irm is taking immediate actions 25
F I R M O V E R V I E W A vg. retained common equity Target 2015 20 14 2015 Advanced CET1 Total C onsumer & Community Banking $51.0 $51.0 10.0% Co nsumer & Bus iness Bank ing 11.0 11.5 10.0% Mortgage Bank ing 18.0 16.0 10.0% Card S ervices 15 .3 15.1 10.0% Auto & Student 3.7 3.4 10.0% Corporate & Investment Bank 61.0 62.0 11.0% Commercial Banking 14.0 14.0 10.0% A sset M an agement 9.0 9.0 10.0 % Total LO Bs $ 135.0 $136.0 Corporate 26.2 32.0 Total Firm (excl. Corp. G oodwill)2 $161.2 ~$1 68.0 ~10.6% M emo: Corpor ate Go odwill 3 42.0 42.0 Average Capital allocation M aximizing long -term sharehold er value – cap ital 1 Includes legacy mortgage s ervicing operational risk capital held at CCB level of $3B and $5B in 2014 and 2015, respectively 2 2 014 is the average of 4 quarter -end spot actual common equity excluding goodwill; 2015 valu e is an approx imation of the same metric based on the average of year end 2014 and 2015 analys t es timates for CET1 3 Total F irm goodwill of $48B 4 PE, retain ed operational ris k capital, real estate, BOLI/COLI, D TA and p ens ion 3b
Management expects to reach 11%+/- CET1 by Y E2015
Long- term CET1 target is 12% – or low er – b y YE2018
Incl. 50 bps buffer and 4.0-4.5% G -S IB K ey takeaways 1 1 +50 bps YoY Includes legacy portfo lio, model enhancements and other4 YoY increase largely driven by increase of ~$3.5B in retained operational ris k capital
Expect incremental LOB equity allocations as the Firm mo ves up its glidepath
CI B to reach 12.5% by 2018
Future capital levels are cons id ered in cu rrent pricing and SVA models Common equity and performance targets ($B) A A 26
F I R M O V E R V I E W Capital glidepath Maximizing long-term s hareholder value – capital 3b 4.5% 4.5% 4.5% 4.5% 4.5% 1.1% 2.3% 3.4% 4.5% 0.6% 1.3 % 1.9% 2.5% 2015 2016 2017 2018 201 9 4.5% 6.2% 8 .1% 11.5% JP M FY2014: 10.2% 2.5% 9.8%
At current CET1 – above phas ed -in minimums through YE2018
JPM can achieve ~ 12% CET1 target by Y E2 018 w hile providing s ign ificant capital return to shareho lders and opportunity to increas e dividends Key takeaw ays ~ 11.0% ~11.5% 12.0%+ 10.2% 4 Q14 4Q15 4Q16 4Q17+ Illu strative Fully P has ed -In F irm trajectory1 Total net payou t1 47% 57 % 60% 64% 10 .6% Advanced Standard ized 1 Reflects analys t estimates for earnings of ~$2 3B in 201 5 and ~ $27B for average 20 16-2017, common dividends of ~ $6B in 2015 and ~$7B fo r average 2016-2017 and net rep urchases of ~$6B in 2015 and ~$8B for average 2016-2017. Total net p ayout reflects the full-year Capital cons ervation buffer G-SIB surcharge (U.S. N PR) Min. req uirement Opportunity to progress ively increas e dividends Expect S tandardized to beco me binding cons traint by YE2015 o r sho rtly thereafter P has ed -In minimums 27
F I R M O V E R V I E W ~$ 1,575 $1.55T+ /- ~($ 35) ~$10 ~($75) ~$75 ~($50) $1.5T+ /- YE2014 Market Model RWA Grow th YE2015 Market Model RWA/SA -CCR G rowth Incremen tal optimization Y E201 7+ Standardized RWA g lidepath ($B) A dvan ced RWA ~$ 1,625 ≥$1.5T $1.5T+ /-
A dvan ced R WA – res ults in ≥ $1.5T at YE2015
After which w e expect to run at or below this level
Given the reduction in Ad vanced RWA – Standardized will become the Firm’s bin ding constraint in the near-ter m
Standar dized w ill be $ 1.55T+/- by Y E2015
We have room to optimize S tandardized, includ ing:
Ex pected market risk model benefits in 2015 and 2016
Benefit from implementing S A-CCR2 in 2017
We will create headroo m for core loan grow th by fundin g with CIB reductions Advanced and S tandardized RWA 1 In cludes a mix shift from CIB to loan grow th in the other LOBs Combination of model approvals, S A-CCR, G -SIB optimization and balance s heet limits res ults in convergence between A dvanced and Stand ardized Standar dized RWA outlook Maximizing long-term shareh older value – capital 3b 1 See note 4 on s lide 48 2 S tandardized Approach for Counterparty Cr edit Risk 28
F I R M O V E R V I E W Competitive dy namic Maximizing long-term s hareholder value – capital 3b
G-SIB surcharge unlikely to be a meaningful competitive disadvantage as CCA R w ill be binding cons traint for U.S. peers
JPM CCA R implied loss s ens itivity low er than most peers, based on 2014 DF AST
If G -SIB surcharge is included in CCA R minimum, JP M has ~130 bps headr oom before negative impacts K ey takeaways Required steady state CET1 ratio s in CCAR – % of beg. RWA Note: For footnoted information, refer to slide 56 4.5% 3.4% 12.0% 2.8% JP M Peer 1 Peer 2 P eer 3 P eer 4 P eer 5 10.7% Capital Return1 Expected G-SI B CET1 Implied los ses2 Minimum s tress ed CET13 29
F I R M O V E R V I E W G-S IB capital charge Maximizing long-term s hareholder value – capital 3b Overview K ey components of proposed U .S . G- S IB framew ork S ize Leverage expos ure Cross-jurisd ictional International activity Interconnectedness Activity w ith FIs1, ou ts tanding debt and market cap Complexity O TC derivatives, Level 3 as sets and Trading/A FS securities STWF 2 Includes repo, non - operating d epos its, F ir m shorts Market-s hare bas ed Self-reliance measure
There are three dimensions to our G -S IB s core
Abs olu te expos ures – we w ill aggress ively manage
Market effects – change in market size and currency impacts
Time – have 3 years to optimize for compliance
O ur framew ork and actions reflect
Reshaping our business prospectively
M anaging G-SIB through 3 lens es : – Shrinkin g existing exposures in key areas – e.g., non-operating depos its, derivative notional compress ion, Level 3 ass ets – Addressing important strategic questions fo r cer tain su b LOBs – e.g., OTC clearing and derivatives intermediation – 11 of our s ub-LO Bs contribute ~70% of our G -S IB s cor e – M anaging clients over the long-term bas ed on total profitability fo r the Firm
We w ill no t overreact to market effects (e.g., FX ) – U.S. framew ork not final
C ommonplace for certain activities to affect G-S IB in multiple categories (e.g., non-o perating deposits to international financial clien ts ) 1 Financial Institutions 2 S hort-Term Wholes ale F undin g Actions are b eing taken to r es hape our bus iness – we intend to run the Firm in the 4.0 or 4.5% G-SIB bucket 1 2 3 1 2 3 Pro duct Busines s Client 30
F I R M O V E R V I E W JPM G -SIB score pro forma Maximizing long -term s hareholder value – capital 3b Score range Su rcharge 1,030-1,129 5.5% 930-1,029 5.0 % 830 -929 4.5% 730-829 4.0% 630-729 3.5% N ote: F or footnoted information, refer to slide 57 Deposit actions Pro forma 4Q14 $100B non-op3 Revised s core 81 (2) 79 60 (3) 58 91 (6) 85 139 0 139 372 (11) 361 69 (11) 58 2x 2x 2x U.S. G -SIB score 882 (44) 839 U.S. G -SIB surcharge 4.5% 4.5% Based on 2014 FX U .S . G-SIB surcharge 4.5 – 5.0 % 4.5% Based on 2013 FX S ize Category STWF1 U.S. score multiplier Cross -jur is dictional activity Interconnectedness Complexity Bas el G -SIB score P ro forma G -S IB s co re based on preliminary es timates (bps) – ass umes market held constant Sizing of potential actions in the CIB – over time – 0-100 bps 4.0 – 4.5% G-SIB surcharge Dow n from 404 in 4Q13 Es timated F X impact: ~ 45-60 bps 2 In progress
Balance s heet caps
Escalation and approvals for new G-SIB intensive bu sines s
OTC n otional compress io n
Level 3 ration alization
Trading book inv entory reductio n
Loans and commitments review Decisioning
Deriv atives intermediation
O TC clearing
Repo/financing 31
F I R M O V E R V I E W Taking immediate action – non-operating deposits M aximizing long-term shareholder value – capital 3b F I client S weep to money-market (finite capacity) Tier ed Pricing Limited Change B/S reduction Deposit decis ion tree
Opportunities for actions exist – decision tree below
Across bus iness es ~ $390B depos its from financial institution s – of which ~$200B is n on-operating
Illustrative F I non-operating deposit econo mics – cas h earns net 10-15 bps
Given contr ibution of FI non-operating d epos its on G-SIB – impacts size, interconnectedness , STWF and potentially cross-jurisd ictional – exiting these deposit balances is a rational economic decision Selectively us e balance sheet Reprice K ey takeaways B/S reduction Expect reduction of up to $100B of firmwide non -op erating deposits by the end of the year Exit client r elationship B/S reduction Outcome 32
F I R M O V E R V I E W A gend a Maximizing long-term s hareholder value 3
Four leading client franchis es – together delivering significant value
Client focus and long-term approach – consisten tly investing and innovating
D elivering significant operating leverag e – w hile investing through-the-cycle
D elivering strong capital returns – w hile adapting capital and liquidity frameworks
Strong found ation – capital, liqu idity, balance sheet, risk discipline
S implification and de-ris kin g
Commitment to contro ls and culture Leading to 4 Op erating with fortress principles 2 Building exception al client franchises 1 55-75% Net payout ratio ~15% ROTCE 55% +/- O verhead ratio ~12% CET1 ratio 33
F I R M O V E R V I E W Earnings simulation Leading to s tro ng returns 4 N ote: F or footnoted information , refer to slide 58 $2 2 $21 ~$30 ~($0.5) ($1.2) $3+ ~$2 $ 4.5 2014 Reported net income S ignificant and one-time items Adjusted net inco me Inv es tments & g rowth CCB/CIB expens e reduction Remaining regulatory costs Rates Pro forma net income Net income build simulation ($B) – 3 y ear h orizon
Front-end rates rising in 2H15 , ~2.25 % by 2017
Core loan grow th driving ~65% loans -to -depos its ratio
$100B shift from non -operating deposits to operating deposits
NIR CAG R excluding busines s simplification of ~ 3% and ~8% excludin g CIB and MB
Expense reduction of ~ $2.0B in CCB and $2.8B in CIB – partially offset by growth in AM
As sumed that credit costs are lo w for long – for the n ext 3 years
Stand ardized RWA at $1.5T+/- – model ap provals/run-off and optimization actions will offset grow th As sumptions – what you need to believe 2 ~15% ROTCE ~12 % CET1 ratio 55-75% Net payout ratio 55%+/- O verhead ratio Rates impact of ~$7.5B pretax Legal expense: $1.3B Res erve releas e: ($1.0)B Tax discrete: ($1.0)B O ther: ($0 .5)B Exp ens e reduction of ~$2.0B in CCB and $2.8B in CIB Note: Includes revenue impact of bus iness s implification Proforma Target 2014 ROE1 ROE CCB 18% 20% CIB 10% 13% CB 18% 18% A M 23% 25%+ F irm ROTCE 13% ~15% LO B RO E targets Includes TLA C and derivatives market reform 3 34
F I R M O V E R V I E W Co nclusion
Four exceptio nal client fr anchises – leaders in their own right
Build our businesses for the long-term – cons is tently innovating
Focus on client experience and lifetime relationships
Complete platform and divers ified operating model – drives client engagement, synergies and s table returns
Experienced management team with deep talent
D elivering significant operating leverage – while investing through-the-cycle
Consistently self-funded growth and investments
Identified additional ex pens e opportunities – tar geting meaningful efficiency impr ovements
Delivering strong capital returns – while adapting capital and liqu idity framew orks
New capital and incentiv e framework reflects multiple constraints – inclu ding G-S IB
B alancing compliance w ith capacity for capital dis tributions
Strong capital and liquidity position
Simplification and de-risking
Our balance sheet is less complex and of higher quality
D emonstrated strong ris k discipline through-the-cycle
Executed on s ignificant bus in es s s implification agenda – simplification continues to be a focus
Commitment to controls and culture
Enhanced control infrastructure and governance – s ign ificant investments
Culture and conduct – recommit to our bus iness principles Building exceptional client franchis es 1 Operating with fortress principles M aximizing long -term shareholder value 55-75% N et payo ut ratio ~ 15% RO TCE 55%+/- Overhead ratio 2 3 ~12% CET1 ratio Leading to 4 35
A gend a Section F I R M O V E R V I E W 36 Appendix 36 Appendix – Fixed Income 38 Notes 47
A P P E N D I X Benefits of our op erating model Note: Totals may not sum due to rounding 1 Includes revenu e ben efits g enerated throu gh a partnership across two LO Bs and then divided by 2, as well as revenue benefits generated w ithin each LOB 2 Calculated bas ed on gross domestic IB fees for Syndicated Leverage Finance (S LF ), M&A, Equity U nderw riting and Bond Underwriting 3 M ethodology revis ed to exclude overlap w ith Inter-LOB synergies 4 Synergies between Chase Commerce Solutions and CIB clients also exis ted in 2013; Chase C ommerce Solutions includes Chase P aymentech, ChaseNet and Chase Offers businesses Select examples – 2014 ~$18B CIB ~ $5.4B1 CB ~$2.7B1 A M ~ $2.4B1 CCB ~$4.3B1 C os ts ~ $3B
Primarily procurement, also includes technology, operations and other R ev en ue b en ef its CB and CIB benefits : ~$4.4B gr oss revenue ~$ 2.4B of TS revenue reported in CB (>8 0% of CB clients use TS products ) ~$2.0B gros s IB revenue from CB clients (35% of N A IB fees2) AM and C IB benefits: ~$1.1B gros s revenue A M is an important client of CIB’s global custody and fund s erv ices
$0 .2B of TS products s old to CCB clients and $0.4B newly identified Chase Commerce S olu tions synergies w ith CIB4 ~$1.8 B of revenue fro m cards sold thro ugh branches and ~$0.7B from mortgage origination s through branches ~ $0.2B of revenue from CBB referrals to Paymen tech and ~$0.5B from products sold to Card customers 37
Global Wealth Management (G WM ) is a key distribution channel for CIB equity offerings
Referrals between CIB and G WM resu lt in incremental IB fees and GWM revenue
Global Corporate Bank generated incremental revenue of ~$1.8B3 between 20 09 and 20 14
~ $0.4B of g ross FX revenue generated by TS S clien ts
A M and CCB benefits : ~$0.8B g ross revenue – A M solutions purchased by CCB clients in branches (including CPC)
AM and CB benefits: ~$0.6B gros s revenue – CB clients purchas in g AM pro ducts
Benefits from investment insights, products and services
CB and CCB benefits: ~ $0.5B gross revenue – Card Services revenu e from CB; ~ 55% of CB clients vis it a branch quarterly
CIB and CCB benefits : ~$0.9B gros s revenue – includes