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JPM JPMorgan Chase & Co.

Participants
Jennifer Piepszak CFO
James Dimon Chairman & CEO
Glenn Schorr Evercore ISI
Betsy Graseck Morgan Stanley
Erika Najarian Bank of America Merrill Lynch
Michael Mayo Wells Fargo Securities
Saul Martinez UBS Investment Bank
Gerard Cassidy RBC Capital Markets
Eric Compton Morningstar Inc.
Marlin Mosby Vining Sparks
Kenneth Usdin Jefferies
Matthew O'Connor Deutsche Bank
Brian Kleinhanzl KBW
Call transcript
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Operator

Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's Third Quarter 2019 Earnings Call. This call is being recorded. [Operator Instructions].

At this time, I would like to turn the call over to JPMorgan Chase's Chairman and CEO, Jamie Dimon; and Chief Financial Officer, Jennifer Piepszak. Ms. ahead. go please Piepszak,

Jennifer Piepszak

disclaimer Good as I'll our always, that to we Operator. the website, you presentation, ask the refer please which, is you the morning, you, back. take everyone. through and at Thank available on

firm in Page investment revenue continue particular of in record market; $X.X net and on in equity IB revenues performance client on billion outstandings $XX.X highlights & be Auto; in with in saw EPS over Starting IB higher strong sales Card; record our growth in businesses, on growth record Asset and AUM reported in with $X.XX of tangible Underlying Home share and common global assets. of income Banking, Consumer up Lending and and to origination client and Wealth wallet middle with the X, in strength assets and in on Management, fees volume of one billion a lending return we including number year-to-date XX%. XX%; consumer healthy X%

with Total and Overall, business. were loans remained growth year-on-year, mortgage continued in includes on sales were and across up sales. for retail. SC Card And AUM. total credit which loan loans X%, healthy wholesale flat up were firm, strength strong the across X% deposits performance

Expenses offset approximately performance charges. sales volume partially and lending, lower and gain included billion on up on income by as as billion of was Noninterest expenses mortgage interest X% Page million. mix, by partially X year-on-year net up and was which billion $XX.X strong of across Income well pay Fixed Markets up or on higher revenue up third our year-on-year balance deposit rates. of were $X.X or Record as X% consumer $X.X driven to On revenue-related or investments, growth results. and some about $XXX XX%, a more offset revenue quarter continued sheet loan billion $XXX X% $XX.X million detail by was FDIC

net see reserve expectations. we broad-based any Credit costs remains consumer not favorable both wholesale. charge-offs with credit mentioned portfolios, with and as we build billion, reflecting our last do and quarter, signs of in modest across deterioration line of $X.X And

balance with capital the of distributed capital $X.X CETX XX.X%, ended up ratio the X. firm XX of and on the a versus share. The $X.X per on common Page sheet billion shareholders third Now last dividend and to repurchases quarter, including of a We about in basis points quarter quarter. billion net of $X.XX

for generated growth starting X Community and $XX.X at with deposit with saw of of investment growth Banking. assets businesses, deposit both XX% growth and X% $X.X billion physical across was an and & Page look year-on-year. Revenue investment to a In Banking, our loans down we and ROE on of with X% Consumer continued year-on-year. up XX%, channels. strong up total Consumer CCB client deposits Now net and income Business up & X% year-on-year continued digital reflecting billion

noninterest higher X%, XX well points growth margin And margin basis quarter-on-quarter deposit the though on transaction even environment. higher year-on-year, revenue the up deposit higher was on given surprisingly, expansion by driven rate NII and Revenue down is not higher current it as volumes. is

reflecting on lower balances, XX% Home Lending partially were sales. on revenue offset which margins, was volumes loan by NII up XX%, lower higher production and down

of and on higher Corporate. charge to important Merchant card driven merchant processing up is $X.X net margin by sale the loan With on FDIC billion was growth loan note up Lending to X%, lease XX%. Expenses growth Services sales, Card higher X% X% higher & partially and by And and gain XX%, revenue volumes. was impact charges. with as funding Home expense auto minimal from offset with the impact sales by being up a of depreciation, it's Auto, continued expansion Card, efficiencies were in lease loan regards was to lower year-on-year, and these driven as up offset well investments revenue auto by NII volume the

On credit, starting with reserves.

CCB had million, Business included This the offset vintages in and Cards in million $X.X largely charge-offs were the a by season reserve newer build of Card larger quarter, releases million, primarily part build expectations. The by become consistent and naturally as by net card billion, in $XX driven Home of driven of Lending mix of a $XX portfolio. and build Banking. a million $XXX which largely in $XXX with is Net

of reported to on Investment XX% turning billion of revenue of $X.X on & an $X.X the net Bank billion. Now CIB Corporate Page and income ROE X.

Investment in was overall down. in X% up share by in and and driven was Banking benefiting our advisory. offset billion gain a investment position we partially regions, to $X.X and market revenue and products care underwriting, IB strong rank leadership in performances continue debt technology lower quarter year-on-year across a health record was number from banking It third of by that equity for fees, wallet one sectors. Year-to-date,

down were a year-on-year, compared reflecting XX% deal lower strong activity prior year. to we advisory, In

However, share, XX% our In a that in we was continue debt investments. gain up underwriting, wallet year-on-year driven we down. by strategic to market were

from and benefited investment-grade bonds. increased our some participation transactions we activity large in Here, in

by up convertibles. a number on were ranked market, underwriting, and wallet strong basis, year-to-date significantly IPOs. both overall ECM our share quarter equity IPOs for we And XX% driven and in one the we in year-on-year, performance the for outperforming and In

in quarter driven by expect We performances year. be down to quarter fourth and IBCs third and prior sequentially both the year-on-year strong

markets healthy receptive more pipeline and issuance made constructive, lower remain with new clients issuance the debt equity dialogue environment rate is has strategic However, to attractive. remains as the

billion, Fixed a good somewhat to Moving quarter year. benefited revenue quiet prior in comparison up a result, Markets from to Markets. was $X.X up Total was XX%, which Income year-on-year. the also XX% a

in in outperformance the with flows agency This client board mortgage quarter and activities strong trading improved by commodities. was and characterized across rates

X% from cash quarter prior funding year-on-year, against was third rate performance and to fees be strong extent, lesser $X strong billion remains prime outperformed relative billion, repricing X% in Treasury Treasury The and Markets Securities last Services and very which primarily and basis continues year. we've importantly, unfavorable in firm-wide balances Equity But respectively. headwind, the organic were to but derivatives talking down Equity conditions, to by year. been about, strong. the revenues $X.X compression the and a down and market X% relative environment challenged a Services and largely client activity lower growth neutral, is remained client-specific Services. was a

with expenses select partially offset higher the charges. FDIC driven litigation Expenses revenue-related of by by investments and $X.X billion client lower And were were finally, to market year downgrades. reserve costs up X% emerging on million, compared largely builds $XX prior and credit

for flow record banking to up Investment quarter activity, down increase deals Banking to of of moving M&A market. an in was performance. Now $X.X due revenues Banking offset billion lower on XX% underwriting XX%. by higher on business we year-on-year million, net of partially NII, Page Commercial strong X. by year-on-year ROE Gross Banking Commercial margin, revenue $XXX were and lower with driven revenues large saw Revenue investment increased a and reported and both with middle million and $XXX X% noninterest income deposit on equity

strong Loan balances business Expenses largely were were of flows. were FDIC CRE. in up year-on-year year-on-year flat Deposit on X% offset million were charges. both by across up client year-on-year $XXX X% investments the C&I balances lower and as

largely was we CRE, tax in Lending, although by real in remain we higher C&I, be in our banking origination growth does cycle. there pockets In where in significant there technology to runoff of activity financial was while it are institutions, estate industries, like seeing And Commercial given we exempt continue select in offset are in declines energy, and portfolio. selective Term as the

costs basis with rate $XX a net were credit of charge-off Finally, million points. X

on to Asset X. on Page Management & Now Wealth

Credit XX% of were year-on-year were Management net as XX%. up loan year-on-year continued million, and X% Expenses average $XXX builds Asset offset quarter by ROE of partially with investments million on margin fees. well billion well in $X.X $X.X driven and offset of lower by for on of & levels as deposit were impact Wealth as the pretax was growth market higher and the technology margin income loan charge-offs of flat legal growth. Revenue costs reported compression. as reserve of as advisers, deposit and by distribution $XX billion net

long-term net saw by we cumulative products. $XX in billion. were was driven trillion, quarter, billion, assets driven driven respectively, income, inflows as into and liquidity well trillion inflows $X.X the of client fixed by X%, net both levels. Deposits and higher inflows liquidity products long-term X% $X.X and overall For interest-bearing $XX by growth market AUM year-on-year, up as of and X% up net were of record,

with strength X% record we and loan lending. both Finally, up mortgage balances, had in wholesale

due was $XXX rates. Corporate as million. funding net earlier, Now higher sale X. mentioned income higher that million, offset lower $XXX of as Corporate Page year-on-year, driven offset mix sheet reported of Revenue partially I $XXX mortgage by and was on the balance primarily from well net to loan the up interest lower balances on to income million by all which

losses approximately This investments a year million net year-on-year, certain were in legal of prior $XXX $XXX compared higher in of investments in the benefit. million year. quarter technology primarily also equity to to prior million due included small expenses $XXX up And legacy gains private net and net

X Page to and outlook. turning Finally, the

guidance. previous year full Our with line remains outlook in

interest $XX.X to expect in approximately net based and to the be on expenses income come billion, billion. We implieds; $XX.X below slightly adjusted latest

U.S. wrap uncertainty positioned environment, business the scale while invest outperform macro global environment, showcases the the slowing, and our on our Despite diversification quarter up, of consumer So any We headwinds we'll growth to from well in And and strategically in footing. is remain model. businesses. remains healthy. the is to rate continued continue to solid this and U.S. economy

open And with please line Q&A. that, operator, the for

Operator

[Operator Instructions].

Our Evercore. Glenn question from of Schorr first is

Glenn Schorr

it that in correctly, I in, love during your everything you if in the quarter, you the quarter. fourth markets stepped went of remember year. in on Curious maybe would put the context If and take quarter I it could of repo fourth last the the on

made threw in and I'm money the money, more markets what's not structure that curious some the So And higher on happen. if did market basis. of this think function need it the go-forward different rates, down. we better that, calmed to changes a you at quarter curious it,

James Dimon

of year, requirements. concept more at to account had needed So the certain -- in cash it. got Fed for at we if look I regulatory correctly, the than checking a cash amount have we of with remember we a you Last

the to back is So it and you goes repo more paid do. makes we the checking repo liquidity they the course in we day been of required Obviously account. to down That in morning, the under rates cash, make it want is the sense, we day. the billion up, repo. huge. to the went It's recovery the account, $XXX which market, resolution went of could would've us And liquidity recalibrate And money. regulators IOER happy not which of during to and billion the with therefore, to believe, cash $XXX at they to and testing. into we into to still and think the end kind account decide that expect I it's now in up But stress keep billion which $XX redeploy

why again, And to A lot reasons as where at those they look were. technical. balances I dropped this of

bad kind lot way. think line about have by real that does a that when it, account. position, is the I banks you the that that's think a are issue markets red mean checking in I hitting of same we of in the because think But

going a cannot hit in be HQLA, either. LCR, like red which line to You're also redeployed

that comes. time the So to when issue will the me, be

how manage comes. regulators JPMorgan. about about JPMorgan the who want -- any and intermediate in to they the not declined the time it's to want event, And when system it's

Jennifer Piepszak

another And overall or that JPMorgan one was results. it's our to in worth the material third impact events to quarter not mid-September noting, Glenn, the from way

Glenn Schorr

I Yes. at borrowed for bad XX%. feel whoever

Okay.

forward an 'XX you little Just much you a lower I to balance what Have NII, soft thoughts think your done look sheet obviously a call which us. full quickie -- on bit commentary around not we rather the surprising, you on to heard I I'd going on as and repositioning looking I is that's rate in the it because maybe the give XXXX, NII. better. ask know don't year but hear want XXXX I to like you're backdrop?

Jennifer Piepszak

I'll Well, try.

both sheet positioning, We terms a we know, it convexed negatively balance in balance in of have as sheet. So you manage directions.

about think which terms think Some you Frankly, from in the rally and way and mix. expect takes. not. of But full least a But There XXXX, start. are that's had, moves a had, fourth would did. like cut offset just we the and just I hedge-able XXXX, duration run buy at of year. In sheet course, $XX rates is in and quarter that with billion. not quarter we've next would more you cut us have to it to and year interest growth under get to can be developing you October of are one to we they're the puts some you we the a would Obviously, bad given that, implieds, the be will place then rate full an there's balance some that, a to implies offset partial because,

start. rate and to not we But give Day, position the Investor we'll you we'll in quarter of is in 'XX run So then. always fourth as bad of do, a be better more place a color on terms

Operator

Betsy next question from is Stanley. of Morgan Our Graseck

Betsy Graseck

questions, your the wanted get I showed had bumped thinking plan GSIB one bucket. down? how back to would you And end go into as understand as effect to of A you I GSIB it bucket, managing year-end. couple up how is into that? that know, And a we on there June, you're the that of and of next about

Jennifer Piepszak

Sure.

GSIB, to year-end. in fully relates to be it for the bucket as intend we So X.X%

any As are year-end. intend you know, will we manage we like and on most spot the for scarce a to X.X% so do aspects in bucket of be fully it GSIB resource basis,

Betsy Graseck

like revenues see because it there you really to to to you? things that going there et But be your doing too example, market is positioning for Is the not? you're matter to something in that it's your that get of that businesses in, impact anything Or -- derivatives, reduce just to involved not cetera? is does to that some in it small might be position going general? looking there the we're in Is would

James Dimon

say. I couldn't

Jennifer Piepszak

I fourth more than do be buckets results. leverage. fully will need intend the we managing in and not But X.X% various said, obvious our It's What quarter the to across like be GSIB Yes. bucket. will in be to just we

Operator

Our next Lynch. of question Bank is from of Merrill Erika America Najarian

Erika Najarian

My question. first question Glenn's follow-up to is a

help level As the you planning, deployable stress testing, cross and could you current us resolution liquidity JPMorgan? the what excess LCR, about cash think of -- of at is

James Dimon

I to back day, CLAR said But below go is our billion we requirement such during it $XX billion during $XXX accounts the that when and stress, X. the the then goes that we under down recovery and checking opened course $XXX that with day. it have extreme we'd of in to Fed, and doesn't resolution average account believe if there's the

back You time go during all to crisis X go you the day. the before below the

we was don't do. And that regulators to we will to reserves CLAR told have be So them a how resolution that the intent lock up decide. now, we're a And But rules. red to meet for Fed. want violate to right the anything of we that those to account is, going to is of line much as regulate to in far up question

Erika Najarian

to growth give you're balances? a bit to more those how and on securities you quarter play growth investment Could if the follow-up, would about X forward something Got -- the said curve expecting are mix. particularly in it. offset that you us and this loan cuts Fed given XX% in color the Jen, as balance slightly be And little sheet increase lower my out, core dynamics

Jennifer Piepszak

less environment of higher-yielding deposits. investment balance matter for attractive. come you declining rate economy just But think Sure. environment, in a But obviously, one Well, just largely back rate sheet the I'll as consumers XXXX, the example, about whole securities can in are will and to balances. a And alternatives in terms growth the lot. in

to could expect And deposit do the we we see growth to so base. healthy continue grow the franchise. in And

to. So what I that's was referring

on. terms when increase In quarter, of this investment at there's securities, you going a the look things few

As back I took actions duration. But on strategies securities in importantly, what are cash see the mortgage we said sales. earlier, also did as we loan deployment the you investment well as of buy

on So securities going investment there's few this quarter. in things a

James Dimon

higher securities certain capital cases, a return some on did. In than at loans standardized mortgage

Operator

question of Our Mayo Mike Fargo. is Wells next from

Michael Mayo

for lowered also your but guess, guidance NII, I your expenses. lowered guidance you, for So

the you every So how Investor what, much on $XX that traction a just more technology is to to getting. guidance technology? of tell spend, those are investments really Day, due deployment at of lower have us And technology. you're lot billion expense Or we of going generally, insight the into don't that

So your improved what's working guidance? technology-wise? how And What's not to much that can of contribute working? expense

Jennifer Piepszak

Okay. Sure.

add. want if and you start, I'll to So

would NII we plus. the September And there were X billion I rate billion, we less not July, said X if that perhaps and or Mike, $XX.X second be or if plus minus. At billion the the guidance said would So cuts: said that, than lower. time, is and say, the implieds $XX.X minus; $XX.X more, December. At quarter,

right on would a higher And than got December. and at and cut September where growth we're we are the that's bit XX-year so tailwind a Barclays, we what kind little a earlier of less we said because we balanced some of be. And in X we little in said and bit

broadly would say line. guidance I in So NII

On technology, think there's few you expenses in things a about. can

will know top They you're looking expenses. revenue-related are always will be -- Day which which we they broadly be. committed is of what the line at would I I and First have we're importantly, what cost there, productivity say to they at, with on you remain all, flattening come expenses, is But from And at curve getting to terms for the speaking, here. what will or in said underlying of there growth. volume story, Investor look we but

payback cases in business the terms think also need and will a But even investments, we discipline they're if we always present of table around to need things net we fix. to, the will invest and we value we have In periods. with always continue

And point. is then there's which productivity, your

And continue and think realized so to have investments, we productivity to opportunity in continue we our we ahead.

in quantifying the of some terms We haven't repetitive things but processes. you it, that robotics replacing can laid out of about are think

can You fraud. about think or machine AI in learning

So machine in processes. assisting decision-making us learning

are productive. getting centers always more call Our

cost self-service in terms As Gordon only them, the out serve customers not to digital are XX%. said our efficient that to down rolling but better more capabilities at Day, for of Investor then in us. our we're businesses And for is consumer

investments, productivity room but have we and realized to our technology still run. not only significant have so other think date And in in investments, to

James Dimon

As processing we the hooking stuff built to API and in The systems, merchant that all you store business. our for CIB. said, our into custody

can extensive the you and And So out. it's business-by-business see go pretty good. rolling of amount we're stuff

Michael Mayo

All right.

me Let then. have one follow-up

So I do centers mean that the you do how does how how call many you Or data have? have? personnel many to compare And center peak?

James Dimon

centers speak. the forgot that safe quite kind be that build many building we I We're but more infrastructure. efficient few. will to stuff. have we better, all And data number, as more more new of The a expandable it's and ones and secure, and total

We world. have the in best the

on So technology we're how manage little not going can And we bit Investor to maybe try the Day, we to budget. ever a go more like into something that. at scrimp

Jennifer Piepszak

-- about people. to productivity the about of then number we Yes. I'd of necessarily just the our the think and in like think terms call We centers, people. don't just of it Mike,

are growth. productivity overall able making But people more center top centers line may because the that people and is call So increasing. number calls in that's they of sure the of we're our good, that volume, the always to volume the but you with healthy have more because of take call

James Dimon

Yes. all cyber read centers. take there secrets. these of But telling of technologies about, And we're through them, the up because a call fraud stuff lot bad our of to then I guys deployed cards but in are of some guys them some gone bad our of come not the down, consumers and in stop you ways with would you all now.

Operator

Saul is UBS. Our next from Martinez question of

Saul Martinez

start macro off just of a with the I'll question sort broader on outlook.

in on or is but strong, feel footing, the economy I softening obviously the And are sound consumer whether whether are going forward? how data. about from on you're they're the mentioned thinking you economy you concerned think, policy, hearing that seeing there's clients? telling increasing is Jen, we concern macro about uncertainties? U.S. -- some you are economic What the What they you

Jennifer Piepszak

Sure.

the perhaps investment it's trade to client on I it's is growth. uncertainty. in fair speaking, sentiment, marginal while still think slower that being fatigue of terms say the impacted But growth, by So broadly it's

the is said, spending is As ISM good. consumer they Consumer Sentiment manufacturing is both disappointing. the nonmanufacturing, were strong, recently that credit the is I consumer is And true you if strong. incredibly so U.S. at it and surveys, strong. look

say, very credit good, would signs, I activity. very no healthy So there's business and remains doubt, still but cautionary

Saul Martinez

a the at going think commercial. just Great. for takes? and that that business Okay. adjust consolidated helpful. can to know the that? NII, actually, that which we was And glide to the result. in the is some And possible the you But some grow million, how think back I and forward going is pricing and in CCB, suspect That's sequentially, came path grew Deposit do On I level. the guidance business of at NII, specifically continue we that about you $XXX of strong it level. trajectory? consolidated in if is bit puts But the how a little NII about do pretty

Jennifer Piepszak

headwinds, out. at as there's a We're business not earlier, I by no immune mean doubt play that will there as rate the be impacted is in implieds offset said I that. growth. partial the But least So to that to

to just continue rates well. we're back still branch up. The we we into in fact, SEBIs, on very, quarter-over-quarter, given platform. we on little businesses obviously, saw terms love bit migration And so little feel a there's growth the good that expansion very is in slight paid the about of way But the very interest-bearing. going of very see And tick in movement consumer the we up very then there. there's the seeing And that little reprice, on underlying movement the

immune be feel we so continued And about headwinds. we great to the but rate there, won't growth

Operator

is Our Gerard from Cassidy next of RBC. question

Gerard Cassidy

look in backlog that more it the had you or And at Investment share, the quarter? additional as second, some here of North us success give at America you the Banking guys end take you well? coming there some may color you Can wallet Investment Banking give color that if on us you Asia? a in grabbing then have third the Can is

Jennifer Piepszak

Sure.

say quarter, and the fourth in largely the on down some it's overall, year-on-year, sequentially in U.S. fourth of well very healthy, although quarter expect feels both pipeline, as on strong we IB last healthy. So it be I But say, geographically, quarter would And I do would the third as the to year. performances strength in the

Gerard Cassidy

then good doing And Markets up How business, in technology Markets the and in following you've FICC? the that is numbers. you equity important leading more again, both had wallet grabbing spending in been to share

James Dimon

critical. it's think I

deployment way share If making But its trading the the business into it's critical you it's algorithms market trading and with in competitive of in today, FX think corporate on where you matters. and walk automated technology keep swaps up the floor a in buying. equities, I very technology

Operator

Compton of Eric is from question MorningStar. next Our

Eric Compton

income, already and just picture want back real to to pressure see you're here. step there. interest mean big I starting So I net some

under think seemingly everywhere. I in just commentary the pressure the are almost Just is banks the industry general

on guys You hitting got yet, on focus to tangible expenses. at returns still you XX%. are And

worries a level. you're long-term even stepping back, that from about I XX% really start that the pushing you you your mean, you still So stepping goal that about you below billion couple that what Like it. of to with play credit potentially in Other than even XX% level? perspective? even industry, to under or what It worries pressures just exceeding the guess with I back, have -- before pushing even just seems bank all still you onetime to like events getting the

James Dimon

the overdoing that on think I again, banking And industry. pressures you're the

the the is in for of years. part the growth say And had better credit States that we've I'd XX good. Because Okay. United extraordinarily

commercial So look at a you extraordinarily can good. worse if if wholesale, get have you It cycle. credit, only consumer it's credit,

is we just cycle. through of our So play XX% the -- sort always

course, And are We at the and of on under-earning be of point, have part a affects volumes today. one of part it credit the these cycle the all credit. in if At recession, you at sort we'll over-earning things.

-- XX% right the that cycle frankly, bad. and, that not that's through So is

Operator

Vining from next Mosby Sparks. of Our is Marlin question

Marlin Mosby

I of questions. venues of wanted to ask different two kind you

look is quarter. security this pretty you First, if balance came yields at significantly the down sheet,

cut. in Just premium first look didn't get was cost, on much had those rates a amortization you traction the more interest-bearing bit the traction get how deposit on little lowering in But -- embedded quarter? And the at did you that. much as wondered fourth went going that into you you then as we the into

Jennifer Piepszak

Okay. Sure.

So first, on securities yield.

did Marty. rates lower on impact that play from came role, overall. So But more mix just yields securities and importantly, a the

lower on broadly So to day on rates, of predominantly, then as bit mix extent, and symmetric. are and betas lesser little say a speaking, counts. a then as your well point prepaid we'd And betas,

over tick up valuable quarter-on-quarter. little SEBI. did see rates going lose beta. at And even reprice, And a of I not so a by if movement on bit there obviously we're but we client. opportunity you do look to the retail as paid more And Wholesale, client ticks side, said to before, few relationships there's little very that we client

rates you we And so. but Bank, in rates saw then expect, And in saw the paid down CIB, also pay down we might little both as so and quarter-over-quarter. a what Commercial bit there, less AWM

Marlin Mosby

repo being solve would of then liquidity the you've saw out talk for and And of And to able of liquidity see taken market. we you you kind issues. those retail to big things. looked wanted to you banks quarter? next Two as some the And Volcker and about participating ratios, at the liquidity. Jamie, coverage I improving One, then

and their liquidity you processes. related Fed to versus sold JPMorgan quarter, just jump the decisioning America help shoulders or loans has mortgage or the those that on kind all when loans, So then them replaced Sachs of process and was letting in put And that? that a securities, the this, around putting Goldman Bank of with in ring-fence those this on or

James Dimon

the constrained you because far decision return. very standardized the we're than should more is by in on the time a we standardized, by gives and And when -- report portfolio capital sheet I But XX%. that's putting that of important, loan is are just think, course, your we a mean risk way, probably So I advance at you are now, which balance when mortgage low because decision. points there have more

You sell sheet. in or balance your can it it put

to reinvest it, sell you If securities. probably you're in going

it's economic balance some what mortgage And your you pointed need them market think you healthy you gives we've fixes return. securitizations, pure better Because that's mortgage of So I on some we in why, had on securitizations. have a sheet. think built a I out, a about keep the if the market, calculation you

You risk. wouldn't have mortgages And sell these some of se. to you the sell per

And think the liquidity, and the we've focused at I Fed on liquidity account. -- do

have $XXX T-bills, XXX all repo, go to probably should billion point Fed, base And proper I GSIB constraints. of calculations, deposit there's those bunch the certain getting into But a you -- liquidity. multiple at want We -- of then a out other multiple calculations. and total things also cash, that

thing. per course, The redeploy now be time calibrate, markets you're when billion of It's to do across a have but se. those we you will that comes. big deploying a not able So all $XXX not optimize in the they kind Volcker of things those But correct. that and are things. chunk think banks I slightly Volcker different is all of the all

Jennifer Piepszak

you think compression there I quarter. we'll Marty, the then, retail margin to And continue fourth We think deposit about see on side. asked do

into have terms you migration interest-bearing but the off slight in pricing, CD of products. peaks come there have We still

Operator

Our next of from is Usdin question Jefferies. Ken

Kenneth Usdin

But had growth point pressure that all to consumer next the about whether at Wealth from led largely the your margin earlier with there business, of just comes complex? earning all, you growth comes last in, Management expect be this will year's you point where constitution deposit the about the into asset mixing it wholesale Jen, through or deposits. the deposit change mentioned do

Jennifer Piepszak

Sure. it's I Look, to think know. difficult

in still environment, I think, attractive in growth I and Treasury think We less Services I a well declining rate Services. obviously in higher-yielding wholesale as consumers. for alternatives see both are organic as good the Securities said, do

I difficult be So know. a determinant. to will it's environment The macro big think

Kenneth Usdin

first of you is just out. underlying through Any the I'm there the second Understood. And also to regards the because it us card NII -- can challenge? mentioned, of walk any it. versus with fee flattened obvious card margin it's Got that you activity? NII partially there? components question, kind Is fee And the just changes revenue wondering,

Jennifer Piepszak

Yes. There There's just seasonality there. just really timing. is

Day, seasonally the the hit would fourth we XX us, card just that seasonality. XX%, that guidance, is still minus, be Investor for rate or XX minus. at so quarter to full or plus a year for expect But plus So revenue quarter so we said XX%, and high

James Dimon

doesn't the the does And same I'd compression deposits. in add that thing here, it have it

Jennifer Piepszak

Yes. dynamic different there. Very

Operator

Matt Bank. Deutsche from is of Our next question O'Connor

Matthew O'Connor

next net want on to Just just start I talked interest for a the fourth about just follow up come you $XX not and place year. bad -- quarter to billion, that's under

and swing And factor much to how helping probably I'm just rate not balance as trying I Think $XX in sheet you and of the would had it's you mix duration that or about highlighted bad rate as the potential puts growth think that a run But some have. change that takes. You like that? plus is some billion-ish and did quarter thought. the assumption as have minus. understand third to better what's

Jennifer Piepszak

speak. I mean budget implieds. we're So that doing we working process it's the as latest We're And on days. through our based early obviously

So it's XX-year, and it, cut which minus. the cut implieds, in based plus April. a or in on October have a call And latest X.XX%

been of couple have a to even where ago, we been different a might or have might just ago, outlook. it months weeks relative So

implied course, think is, to health it's latest what a take know. warning because with the of it I So important on that that's we

James Dimon

equal. assuming it's sheet some as That growth, all balance be worse. being would things to And opposed

Jennifer Piepszak

It growth, that just The rates. sheet offset from larger worse. impacts partial balance to be will right. would That's

Matthew O'Connor

is at between split the how long and is And point? short end? what rate that sensitivity the this And

Jennifer Piepszak

can look There, best just the about you would an the I the interest probably NII an in not that's that sensitivity. that sensitivity, is to risk at it. say Because I think mean Q. way earnings have is at but we'll rate

in will few out that be so And a weeks.

Operator

of Mayo Mike Wells Fargo. question next from Our is

Michael Mayo

not JPMorgan over the one debates. to Roundtable about stakeholder-driven earnings the call year? I And with the it's real is at and Yorker New that about question, out author first at to and since up, presidential to you. having least capitalism. a shareholder-driven And said we’ve the spoke was capitalism, came Festival your this Jamie, regulatory as the the name new weekend we risk he had up the statement is political came over what You're out hanging Business it's a But and earnings look

people And Over the in seems change weekend, at point people flattening about tax, talked the of it including the politicians talked about personal the tax, lot basically -- and tax, fingers the like a their JPMorgan. the banks, the wealth tax, corporate pyramid. transaction

what to question are is doing... you my you So

James Dimon

a what? pointing for fingers fingers on base base as Point They're their what? their as

Michael Mayo

the Banks I part example, again, this inequality one I underpinnings intellectual New the was America. that it's of the being should to -- way cause, out are at Festival, in of this The of a is think introduced whole policies saw a the lot situation. of today. part doing help And be Mike. this just more of kind the Yorker of cause

just Business it's statements presidential the that wealth seeing big the much I that proposals move And politicians' And But deregulation. these summarize here years And ahead. know financial where country very how XX and topics business had so you, the in do a and head anti-bank. corporate Roundtable, come would are as that -- in the other with role the manage as know But in model, after up the America crisis, it's Roundtable. income -- we I help you're about and about of to it concerns Business bank hey, debates. I inequalities as you're industry the question. company these to help the an I tax, the mean JPMorgan environment too changes

James Dimon

Okay.

value essentially for customers been So get of years. the Roundtable, shareholder running said Business and has which these and value, and how of checking been employees rid -- banks shareholder communities, many basically

I long things And customers. taking think can part their shareholder we looked their care these do we of do for community thinking to participate we profit comes of that. -- employees, great are of seeking. highlight they're to people, like that. the building that health, of the when And have lot most help sharing CEOs the citizens value and you rapacious huge Whereas trying a wealth term, world it wellness, of pretty it and larger companies the stuff great statement these was training, and lot at inside all And all do, companies, employees: most A that. do retirement, company. the

So I serve do and think businesses -- and so as as the is. we a to best our clients our whatever JPMorgan can matter, we're environment going grow

just changes, to because the that best our do the we I we navigate best That we're But it serving for okay? Economically And think clients the to have try to a I'm -- tremendous there schools banks. it to are behind. changes. because communities inner speaking environment can. city changes. -- been Politically, we of going The lot can, geopolitically. a banks, do and infrastructure failing of people failing is not help because try to left do of amount And not

So I we I when And lift people, think us and Detroit, does better. to infrastructure, get education systems a help think good all involved all stuff we train society. does everyone up of get us could society can lot with lift that society. And help for skills, the of more in build better, like up it's do kind

Argentina, don't a Cuba, bit. a you believe society, doing and Venezuela, we is can at et for that wealth look Korea, thing well cetera, North little good share me, the If

specific I'm at community great serve to citizen shareholders and a there, respond political So going not to the out but we'll statements be time. part to same do our our

Michael Mayo

I employees mouth? shareholders and mean Is the in long I term. other and can for put doing the stakeholders good for that... well is words all your communities So

James Dimon

And Mike, cities, we in markets businesses, the profit crisis that -- doing prices states, rapacious And the actually cetera. amount the market. way Yes. included I hospitals, way gave et make about below at that to that financed of We're consumers people examples seeking? No.

– And this going but you tough be time. our was get profitability. our It wasn't clients not attitude our help about won't through to so

dramatically, think fine. can long-term that sued we you was Our profitability a were thinking, that. dropped get over and never And I but

we branches, jobs investing years XX We're constantly X -- same do out, out. So will time in out, That out, and XX training. stuff employees. in years benefit years and employees X with years and

Operator

Our next KBW. question from of Kleinhanzl is Brian

Brian Kleinhanzl

where investments the mid-September. Looks marks gave you worse trading. impact on kind it trading equity know I revenues like break the looking on out question an you in update were on there for. what come of versus Is thought in, the was of revenues? what you way a true came Quick to equity in than would potential

Jennifer Piepszak

derivatives and client they not of certainly in part weaker losses on but equity were Sure. losses Those In meaningful. things, equity of scheme but activity story. inventory, it derivatives, it some was a combination of grand the were the wasn't meaningful

Brian Kleinhanzl

numbers? But them on other investments there in additional wasn't the any marks had impacting there that

Jennifer Piepszak

No.

Brian Kleinhanzl

the now to I have as Okay. for And CECL. forma been doing that kind banks parallel know provision where of prior pro doing been. adoption then you separately can the the do plan date? Are be on give will you you've on you Or runs, all at what point CECL?

Jennifer Piepszak

as you precise, said the billion. billion. billion And able The the say, range as we'll more Day, of we $X as a be ton $X billion is be still range January for to at of done we $X work, obviously, between implementation. Well, is and Investor We've modeling. X $X a and to lot prepare

Operator

Morgan Graseck from of Our next is Stanley. question Betsy

Betsy Graseck

know these that books I One I DB in, XQ? follow-up market, I a believe numbers on XQ mean in winner and you in in equity. that some that were the or of Is in the of were that. comes

James Dimon

to There to. I balance referring some know don't fine you're was answer think that. the I

Jennifer Piepszak

It was is. it whatever not meaningful

Betsy Graseck

optionality clients is your across just you something you think All that's launch. cutting recent that that impacts that how Okay. to a that have spectrum? X. potentially how that's specific Is your have and bigger do Or model? and something do business would I more But you impact some wealth You for about Invest? And then separately, would brokers discount consider You that your been a news right. commissions Invest on that there's to think know you obviously

Jennifer Piepszak

already of market Invest and us. pleased customers to toward so see moving majority the You So in free, trade our we're for

existing It was As we're XX%. of us. the we terms investment client see proud And is Invest, toward of with an pleased unmet component customers, broader in us with one really up assets to think product being strategy. we're important investment about meeting I launch but this You market need results quarter's for our it of said, an moving our as

James Dimon

still We in Yes. improving products You the time. are And over there's strength Invest.

a We haven't and Invest it You right all the figure both all Invest marketing. done it. Kind tremendous to of get out and pricing around we'll You amount of specific want then Portfolios, exact

Operator

And this no further questions time. we at have

Jennifer Piepszak

Thank you.

James Dimon

Thank you.

Operator

Thank you in for today's call. participating

disconnect. now You may