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JPM JPMorgan Chase & Co.

Participants
Jennifer Piepszak Chief Financial Officer
James Dimon Chairman and Chief Executive Officer
Kenneth Usdin Jefferies
Saul Martinez UBS Investment Bank
Erika Najarian Bank of America Merrill Lynch
Michael Mayo Wells Fargo Securities
Betsy Graseck Morgan Stanley
Matthew O'Connor Deutsche Bank
Gerard Cassidy RBC Capital Markets
Steven Chubak Wolfe Research, LLC
Brian Kleinhanzl KBW
Glenn Schorr Evercore ISI
Marlin Mosby Vining Sparks
Andrew Lim Societe Generale
Alison Williams Bloomberg Intelligence
Call transcript
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Operator

Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's Fourth 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. Piepszak, please go ahead.

Jennifer Piepszak

Operator. you, Thank everyone. Good morning, you available through you as take back. presentation, refer the our website, is the on at that the always, and to I'll disclaimer which, we please ask the on $X.XX on of of tangible firm Starting equity revenue X, reported income XX%. billion; and a of with billion of net $XX.X common EPS $X.X return Page Underlying performance continues to be strong. X% in fourth wholesale balance up and quarter with consumer Deposit year-over-year. across the growth accelerated average as average We impact being spots saw sales solid the at were Card growth of quarters. loan the across AWM and loans X% loan with lending in excluding company prior the bright year-on-year home as assets investment as reflecting and asset and organic banking AUM XX% wealth management year, was Client stronger versus were well up XX% performance up growth. consumer business market and prior the one the fees in Global number wallet ranked year for IB share. full X% with We've commercial growth was bank a in record revenue And billion. IB the $X.X In to very CIB fourth up year, weak were terms. last however, year-on-year the a to note XX% compared Market, in absolute we it's quarter important quarter strong was

up $X.X volume of reserve expectations. million, X% costs. net AWM in Expenses releases Credit home year-on-year, auto. remains net up X% $X.X or reflecting $XX.X income billion up fourth offset CIB NII. a with was Noninterest year-on-year our growth higher XX% lending costs On markets higher company. in to continues strong be and with $X.X down fact, or on credit and Revenue were performance and quarter. $XX.X and the revenue X% or In Page $XXX performance sheet results. was billion, markets on $XXX billion net million of lower balance related down on or line interest strong X% of quarter by largely in and rates mix more and detail and across revenue charge-offs X fourth some billion modest continued about to favorable And CIB billion and with record revenue credit

in billion higher $X.X and $XXX.X net Turning to as And billion, by return or income short-term offset Page $X.X with growth by Revenue rates, X% X% sheet all of $X.X revenue billion were charges. up deposit records. offset $XX.X related growth year. on on firm interest driven lower the $XX.X equity and and tangible positive on Noninterest X% at XXXX. of And were $XXX XX%. year-on-year markets operating due increasing up a billion; partially of FDIC due reported X. costs $X.X as revenue balance Revenue $XXX were recoveries volume to we driven by In lending. XXXX. strong at performance remains to wholesale, consumer, and and billion. costs were Credit by credit, well the And throughout both card growth, continued expense by discipline higher continued credit And releases full mix The on revenues. or across generated up million our billion well income investments lower revenue billion, in home balance million growth of higher reflecting leverage for offset CIB average and year costs, cost results up credit or higher consumer was reserve year-on-year pay net rates. largely as $X.XX full as an common of EPS and was delivered X% largely expenses partially

have it's billion taken; the a remain and topic it of in X.X% shareholders capital dividend actions quarter $X.XX expect $X.X with the in last a and fourth versus the ratio capital on X. the to billion distributed of firm common while Page XX.X%, quarter. fully capital, buckets. given of G-SIB worth we net per we a will quarter Moving to up including $X.X We of CETX repurchases balance ended And on slightly share. noting sheet The of

we I'll into the results, Page move on about X. a Before talking moment spend CECL business

no therefore know, and As our CECL January impact on transition the effective Xst was to you XXXX to financials. there's

for the Consumer ROE forecast XX% credit note, XX% Card, incurred investment to the in impact has after-tax versus specific the is in we'll increase On a can macroeconomic allowance lower the In allowance CCB with to $X.X modeling of Page wholesale use credit decrease at a forecast the to in a changes Community of billion $X.X wholesale a losses to & consumer lost page total loans period less increase card, like deposit impact, Recognition cycle coverage earnings billion through turning an recognize especially transition provided. of in have of growth coming to $X.X net the as given billion shorter the rates retained capital. resulted we quarter, income result X%. an of now of result increase start X. was and the under you on of offset which incurred of accelerating is billion assets net lost by decrease a is and In on page. the important loss adoption fourth down approach time on model overall the billion. end whereas This $X.X to range And from CECL we've businesses, the the environments. to an in at of decrease moving with emergence by the using generated versus mostly the driven increase under partially Also elected Banking see Client $X.X X%.

was X% market business credit, Expenses expansion related as impact volumes consumer offset from well as of or net a largely volumes. of XX% an confident This net by release investments year, continued went revenue as were CCB balances million well Business on was XX% which increasing purchase release and billion ROE by in lower the on in NII Consumer up included CCB deposit by lower the origination. by reflecting delinquency deposit higher strong loan by prices, net accountant and increase X% was the revenue including Card by on compression Auto, of which costs quarter had reserve growth. XX% growth partially net revenue X% lending For auto revenue driven the results expectations. On sales offset investment revenue largely home impaired reflecting $XXX full portfolio Fourth loan by home driven XX% was $XX.X in Net consistent billion, and as higher this revenue on by a of down offset as by offset were $XX credit revenue driven driven in Lending in growth reflecting efficiencies. NII higher growth. million improvements as up largely of by and card well a strong with quarter margin production billion up year-on-year. revenue in X% were and driven servicing X%. expense And build noninterest strong $X.X holiday lease Banking, income, Card $XX.X $X.X client $XXX was In the higher prior billion, Merchant of billion up a of up up reflecting growth and down million. was a and reserve transaction higher Card, by X% and XX% X% card during Services of charge-offs assets Home sales and down in season. was lower loan $XXX and revenue predominantly driven the

on Investment Corporate the to and turning Now X. Bank Page

fourth $X.X the XX% and CIB of quarter, of to incomes For reported of billion an a strong on $X.X finish net ROE revenue year. billion, the

full level of It XX%. year. an our decade. ROI full grew to highest record number of share $XX revenue Global year, a In fees all-time CIB delivered IB and Banking, million the one For for its an in fees IB the rank reached in record Investment and maintained

from On $X.X fees conditions record Latin fees as the ranked we new IB a the meaningfully number were and XX% to reinvest up underwriting we market as up market of in ranked fees we revenue US issuance gain pricing up and X% to strong year, of benefited large continued was IPOs. for America. attractive year billion positions XX% for underwriting the active two following clients be in to which leveraged up higher Advisory in share. performance to The their accelerated strengthen last the sheets. number outperforming X% year the were due our in one year-on-year for reflecting of equity we activity fees well some sequential loans. quarter, as year-on-year rank number bonds the funding were quarter high-yield Debt and basis, their And performance advantage as a both overall maintained the we issuance transactions were for one take number and Equity one balance underwriting was were For flat. and closing down year-on-year year. bond

new healthy remain continues rate to pipeline strategic equity is constructive, overall issuance. Our to with debt issuance and be dialogue is environment as markets the clients favorable for receptive

markets Total up across comparison markets. notably in benefiting XX% largely quarter was but by against strength revenue also securitized year-on-year, year, products challenging $X.X compression growth. services offset to down up revenue billion, driven fourth a deposit markets. client driven by were margin markets XX% revenue favorable both a quarter strength from Fixed activity across equity X% and income by which fixed primarily by monetizing Moving income flows. and in fourth to cash was record last due reflecting XX% businesses $X was year-on-year up and Treasury strong billion primes. and Equity rates driven was organic

expenses, at up year revenue legal security related to While billion, up services as X%. continued as volume the billion investments. was XX% were with $X.X well higher compared revenue $X.X prior and Expenses

runoff year-over-year X. the Commercial net an the deposit X% a billion ROI quarter of Page billion $X.X across largely to higher X% of were balances revenue as Banking strategic see banking. specialized continue X% up quarter. Commercial million margins growth and low we middle industries fees offset of where year banking with was year-on-year billion driven lower by activity. for were estate down real up in And expansion investment rate Full higher of revenues gain $X.X term as offset up IB client year-on-year activity was on environment, $XXX X% driven the was strong balances lending income commercial were given are moving selective million, Now for banker NII deal origination technology. banking year-on-year and portfolio. investment. we $XXX lower and loans for we cycle. in exempt X% continue to and results deposit in markets, X% by the coverage tax investments XX% up XX% $X.X Loan were banking up increased net a The declines Deposit by the where on by both partially in and year-on-year. $XXX year up client record record CRE were with Gross income on by large loans on in to offset by ROE our on segments an of see up million driven the reported Fourth market fourth continued we remain corporate C&I XX%. X% revenue in Expenses of by growth. driven and strong

costs prior continues quarters. Underlying an of single basis were largely rate a credit NCO strong. reserved name with which credit by performance XX be $XXX in Finally, driven to was million points, for

on Management page and Asset Now X. Wealth on

$X.X multi for Wealth both and XX%. billion AWM Management quarter. income billion and year-on-year million $XXX products. had net for the of AUM margin trillion by $X.X assets as we $X.X by $XX loan driven growth by X% liquidity $XXbillion. as and of XX% up record inflows balances net driven and net with generated investment Expenses levels quarter of XX% into long-term And continued income and interest and lending. trillion, fourth of deposit were billion billion well XX% year the bearing reported finally, fixed was saw liquidity for higher inflows pretax and of ROE as of the we as was income were Deposits strength we of mortgage respectively, of loan of the Revenue margin up and valuation year-on-year client and ROE overall with inflows of well both margin had by records Asset And net $X.X long-term in growth X% higher X% of levels pretax year-on-year market and impact XX% up average $X.X offset and and quarter with and deposit compression. for driven market both net assets were up X% as wholesale partially products. the were of

certain loan $XXX also Now XX. legacy markdown lower was private quarter related net on million Corporate quarter benefit a as of of reported always I losses turning on At to Year-on-year million rates. million net as the on in as due of information well driven the prior page foundation million. recorded just by $XXX Sequentially for to $XXX give The outlook. primarily PE $XXX approximately to the the XX of the to the revenues loss Day, Corporate lower we on the year-over-year driven Revenue you in due the And of equity was were million timing down loss the down full-year current by mentioned. $XXX will $XXX Investor more to revenue sales down Page rates. for million to investments. our Expenses prior outlook. year. contributions

first I'll about now, reminders some for However quarter. the provide color and

in stock about is be XX% just the tax by to to result estimated approximately billion We rate to expect a market compensation a as impacted the rate expenses quarter adjustments is to first currently effective reminder XXX about manage be and adjusted $XX to basis tax billion as NII XXX points and typically approximately $XX higher. be dependent;

to year of financial was up, income and XXXX So wrap record performance revenues, a EPS. across net

Our expected Q&A. well-positioned global slower as outlook open underpinned that, growth scale the we in our of of uncertainties, is the with by into business strength from constructive we And of backdrop build and continue the heading models. geopolitical please our for to consumer benefit remain US and on operator, the line despite the diversification XXXX

Operator

question Instructions] Jefferies. comes Kenn [Operator is Our first of Usdin from

KennethUsdin

generally level. of the here the Obviously we we on aside? just are flat talked volume balance us the a good NII can of repricing you are I you if point terms outside rates Thanks, us billion the where stay Can count, how help terms Jen, rate to about of sheet? equation of in just Hi, understand $XX help day Jen, stability. was terms in morning. getting you side happens outlook from you? of of the What hold if of wondering

JenniferPiepszak

Sure.

reprice As side, on didn't up. we retail we have obviously look way at the rates paid on the

And the so do on way down. little there's to

In paid fact, pick see would wholesale to side, rates from come accelerate in we and see quarter after continued migration we on CDs. And the up second there on then perspective did to see you from down a expect bit paid betas rate rates fourth the a little we savings could the pay cut. as

in you a decline saw CIB in we CB as or expect. we there AWM of than did So more might

we'll say slightly still Day rates in of Investor as but offset have from the balance headwind always wholesale one give so just we of based growth. over we we're full you price implies with the side, on and as later though for with latest Importantly beta. would And to will as lose Fed the implies going in only outlook at I a detail on XXXX NII client cut spend any and to would I do by on client the client not flat the terms of be we valuable hold, relationships the say do, ticks more a XXXX year down then the few

KennethUsdin

on And last growth. still mortgage side year X% --one volume obviously Ex and there's the the level. about at it. thus some talked core lower you're loans question on out, just a lot just sales got a of And the environment that on Yes, how things. but been settling like

finalized. UMSCA's just we're see corporate you and on getting to one just-- backdrop phase what's what's of economic just table, it. the commercial that as customers of closer Just the now status guys the activity

JenniferPiepszak

Sure.

worse. So would quarter things stabilized broadly things, speaking, stabilized stopped the trade getting I certainly fourth say definitely

US the perspective labor bit sentiment the very six credit spending. it a a remains puts better there improved I is strong capital then and Obviously, certainly contributed And shape a strong hold spending some then are quarter the the on market a and sentiment from and Fed soft, ago. still at least was think certainly fourth to both takes. consumer so and is ECB we of in than very mean sentiment and which bit success months that but I saw overall is

year. broadly located constructed So a we heading as we're out have into in speaking XXXX

Operator

Our Martinez Saul UBS. next of question is from

SaulMartinez

higher been And credit economic guys which outcomes way and clear -- on your accrete but higher which or time CECL. Hi, a a that accounting are have the changed with good your book total based economic have outcomes obviously you the and capital loan has I business upfront and in your outcome earnings But book. cards timing decisions loss than CECL to in book you does materially which guys materially in been pretty shifting on value much have question hit. morning. change with pretty towards content also not

your in how think be we higher up, the we twofold So to above It reserve as X.X%, provisioning about X.X%. post has your going context? that is think ALLL think card ratio well I would I I loss because which do guess in is charge-offs continue ratio One is than mix. as about Should should think is move adoption this which up provisioning moves grow question. to CECL much a content

your Is that pricing get goes just CECL we and of guess, the and way And the there environment change in your credit about the So environment I and a in the and mix if then about secondly, provisioning. there underwriting does think where a CECL is you adoption. worse in change think how the provisioning through context and does actually inflection point in CECL's shift that reserves environment? macro

JenniferPiepszak

Sure.

start the I'll provisioning. with So

specific say, But course reserves you would more to ability look, I could that into have of think or are XX dependent or that is loan fair it's incremental under reserve of and foresight depend the So, we're the in have you In see an any macro our of that forecasts. growth and life on next X there on extent expense volatility to you could given CECL months. downturns. in say timing first as economic taking, of downturns one specifically increase those cards period

wholesale pricing could because differences So for not us term specific cycle. macroeconomic of that, there to course price side and don't that's true some are of the cash a charge-offs see flows believe we continue would the customer forecasts material not then foresee and net then the on The be from differences have is perspective, any Having and volatility through we between near incremental said in you course that modeling the changed. And with changing. changes.

any but rightly And see in front as through of sense is reserves so don't is there up increased we're versus cost equity an the out we that it point you true time. that taking

So over we're not that the in but time you it could see term. expecting near

SaulMartinez

Got it. basis provisioning but ongoing move --is margins above your fair I be would I towards also content like --over levels the the of charge-offs is up question that ALLL do to course in course sheet. which ratios my think theory guess more higher just changes the on obviously is higher more that an through is mix have balance profitability the would side you're on loss that to could higher loan the mix changes provisioning lending I in because context reserve your your say materially it on have your ratios, and

JenniferPiepszak

be, be. It could could it

because into timing ability It's on the extent and just on our just a it's of foresight to know again timing particularly but side. it that's So difficult perfect downturn. has that timing card relies the

Operator

America. comes Our of next Erika Bank of from Najarian question

ErikaNajarian

morning. good Hi,

Understand quarter obviously a happened pretty billion that credit was bit fourth so So more but the such you stellar a for the number $X.X results. for get XXXX in on is comp a fourth quarter JPMorgan. was little heavy I to quarter know to what produce light hoping

any helpful, could be provide color would and you very Jennifer. So

JenniferPiepszak

Sure.

Yes, sure. talking are you So okay, market, Erika? about

performance we as sorry, we So products got expected --at broad-based equities I'm I'm meaningfully. early saying and which be out we were fixed bright Goldman speaking to broadly very I well. a in the was income, rates December, in out call products. in strong rate obviously but quarter call up spots say securitized they're securitized did

franchise So flows. strong those success and very we across and monetizing we saw it's the client really had flow

So just and strong for very a really us healthy environment performance.

ErikaNajarian

two general starting and production changes to follow-up upside. matter to Got to That when no a color the the But revenue invest think if said, being revenue it. and for was your efficiencies continue us gave on ago management in ago backdrop the I outperform is could that outlook the deteriorate. banks expenses in quarter what quarters that had the environment revenue My seems question you'll you back to changing. in your are cut always was certain initiatives environment. And revenue

best So expenses way overhead if you about just at to think about XXXX ratio. XX% the think is

JenniferPiepszak

year. look, expected not I change efficiency it's Day the run relentlessly ratio, time at and we last I or we say expenses, discipline XXXX revenue is we're adjusted pursuing to XXXX, think way over you we're the in always Investor temporary would that them less input for ratio on up an efficiency told whether what we've cost curve going X%, great expect that target were headwinds. And say like and company We we revenue, to yes, company expenses but is we be and with the to the that. would to about than could So, the up be an expenses with any run flatten about that give expense just post year XXXX outcome the going not because investing efficiencies say through a cycle not discipline for operating leverage the one Marianne

Operator

from Our Fargo Wells Mike next of Securities. is question Mayo

MichaelMayo

Hi. Is on sorry. I'm Jamie call? the

JenniferPiepszak

is. He Yes.

MichaelMayo

Okay.

I one-off quarter? issues end Jamie connection is this issues or better was So And And to in the of first and Is the know for year. trade market a you simple between said very that is just this something remain easing the toward you trading. a this question better question, expect that helped easing the about you but trade talk activity. mentioned because a can paragraph you

JamesDimon

lot trade of going little answer, bit. don't it's obviously think away. That's really to consternation born eased question hard off has that completely a I Mike. to a But a go

of Europe issues actual stuff like have and still that. trade China ongoing You and

going- how don't long we got sentiment they're so I trading know. that got better think that continues because better

MichaelMayo

mentioned X% it then, be this less growth Jennifer, was year. should that you than And expense

your that spending mentioned also had guys technology might be leveling off. You

So paybacks Any of year we'll investment. off spending Investor you as get think And I and those the year know sense more levels will how prior at versus about you Day. be see from this tech prior maybe that? where

JenniferPiepszak

Sure, course. of

fully-loaded So you being I investment with well in velocity continuously can to in we but know for a and a about we portfolio line I of on as in think what the roll described company. it's tech and there's realize basis you think amount in in investments the tech tech as from investments invest spending there so And continue investing new fair technology off. innovation. And we're efficiencies

think can in as you So the about terms how broadly spending describe with line tech I of being trends. company in

Operator

of from is Our Stanley. question next Betsy Graseck Morgan

BetsyGraseck

requesting keeping an much you're room risk of about When things have good pool thinking fourth mortgage of have for loan I'm through while into could trying years Two we down one to Maybe do as to of an potentially to you growth residential last XXXX go the least transfer up there squeeze growth. questions, loans And quarter, investors exercise that space reflect and regulatory are you're to growth for target. it. capital see this more have I the trade of hit or speak then wondering at of some morning. the the free sold asset then think that? to on mortgage you're in how go is taking to you Hi, in you customer relationship. couple investors year this opportunity residential addition investor these this to to risk And how to asset G-SIB the I

JenniferPiepszak

Sure.

sales consideration that the one looking reasons to bound So and the by business. mortgage you of And capital us. standardized in describe I course mean is we're we're for so loan of structured a that as

So recalibration then the we we time because difficult. that there can about remain think we has the been we refinements hopeful do will talking Fed there. that see And for some become that there's and increasingly that more will on G-SIB,

are given that on both at ratios. say speaking capital for So we us that but where I constrained constraints are wouldn't margins are we broadly our the

BetsyGraseck

I'm estimates And on low your I CECL, the outlined what the in reserves in cetera ratio. so period what have economic One appreciate outlook think You've in in the your to as you couple that so your outlook? the you of towards about ended understand your what's scenario just you end you you just commentary supportable $X call. a billion and earlier kind you had have got think trying do and of things. assumption of to I'm for And wondering for kind ALLR the that increase reasonable earlier? understand why billion forecast $X up the model economic of embedded the et I in

JamesDimon

Sure.

were So we, around more I forecasts to the the through look at what think going we get continue low year end we macroeconomic as the ended up like. to certainty

of we the there. the to multiple reasonable supportable driving outlook, in years weighted terms there say rightly is strong performance the two then and on so estimates period portfolio. do use as is And I for continue be us think you And well so as that's really what's scenarios of it obviously the portfolio economic very for which mix and

likely the you scenarios up end outlook low range. benign greatest where getting looks So one also and what the for most the reasonable with hitting that's the end weight supportable period contribute like which and of the we multiple reasonably to weight with us obviously a would

JamesDimon

time? variables some over to Jen, are those we of going disclose

JenniferPiepszak

a We, point, Q. say will the I be mean CECL I there Jamie. should That's great in more about disclosure that, yes.

JamesDimon

make time We'll know that we're about it. and to going to means it what we doing banks and opposed business, forecasts are the clear doing these as ridiculous and actual spend the need differences? Which we're forward bestowing will talking to but why all disclose we

JenniferPiepszak

right. That's

Q's. the in more see you'll So

Operator

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

MatthewO'Connor

what first things the morning. outlook clear quick been would than thought or know have first about. seems year-over-year. million on I if some but if there the less I'm X% that bit up higher and up Good obsessed than spend, X% Two have growth, for? was so, you're don't expenses, to quarter some I rounding little funding guess that's $XXX too pretty getting maybe a investment follow-ups And over full-year talked here just I if that's and

JenniferPiepszak

Sure.

tends quarter to higher be us a for first through look the So history. bit you if

but it year-over-year. comparing And it can so you think there about

revenue We expense related offset investments, efficiency. expenses are increasing a and bit have increase partially but volume of both being an on by

MatthewO'Connor

a up Okay. ratios obviously, to the generation allocation, is And going just problem the follow stock have capital the good going up, keeps on going it's keep capital up. but other up; keeps the question

all higher you You're The the lot about just call a talk think, get these of stock. creative other of to just does make address about things. it think And buy some Thank uses obviously there's how spend sense to is at I about technology over stock like it maybe do buying with you. buying back So technology. back you dividend, organic? I time it of If the goal let money me those versus levels. always but capital think

JenniferPiepszak

just ratio, approved the that on so have a distribution year. capital Sure, once you remind course of plan I'll our we

filing. And assumptions and filing, realized CCAR the in so CCAR we've since out relative our the last we RWA some earns have efficiency to

always going out reason And up so growth. invest seen is the rightly we've part buybacks, for be float organic you that's stock to first On there. our why of ratios priority to point the as

dividend or do do above first continue and And and to it are tangible capital buyback. makes then so excess Xx have now. to at we sense we through to book that to that where and have And we foremost sustainable are to then which about and is a that to competitive always said shareholders only looking distribute

a alternatives obviously the X% capital at always will alternatives. for distributing at high dividend payout the XX% excess be --when X% ratio ROTCE We and there's but or bar looking

JamesDimon

electronic, You is up do are hooks and the of InstaMed consumers this We I are done healthcare. about XX% that and Well, hooks check. by which think system up numbers is providers acquisitions. year absolutely right did still XX%

So that opportunities there like the for would are hunt we on absolutely them. be

JenniferPiepszak

That's right. last We yes. did year,

JamesDimon

And before. a year did we

Operator

Our next question Gerard Cassidy from is RBC. of

GerardCassidy

on Question Jennifer. Hi, credit.

numbers I up in on had have it's credits. know you put us quarter-to-quarter. that noticed color but quality. some any you you about the on a not brought give and in obviously there what that nice assets And again that there out portfolio? material Can some about good down are I concerns could You the you wholesale decline once any real energy material also tie energy credit concerns non-performing may

JenniferPiepszak

Sure.

the specific sector. that non-performing the to And that in name related we had upgrades there quarter. taken on then any the say was like thematically would wholesale energy, in commercial on in CIB. that then And I was in CIB nothing some charge-offs loans the bank So really

upgrades have exception. that anything thematically and say downgrades portfolio and about. wouldn't concerned I was in our quarter But We this we're no

GerardCassidy

repurchase a if if you understand high. to to correctly the course have program. driven good. too don't results, And a that the level of CCAR good you it's I the answer heard the last price gets be to Very your it's I I but consider by stock stock problem then know to in of and

that said good any --given you then Xx may that price it's problem capital have you What at value. excess do guys to too I Have with you but happens point. again give it a that tangible do to think it's if high think have I to What gets where that. just thought you and you book of it it to understand a if back? the point much buy the

JenniferPiepszak

Sure. high-class is I of a it it lot agree to thought and problem. We give a

And a up so of stock returns terms know, bit really perhaps I sense. differently within going you think at back organic about it at add? the above want look Jamie, Xx importantly to at higher Most we on in in thinking alternatives. continues don't level or to continue the we a to return anything tangible the there's book terms buying versus our how about if growth. make said If should we're company that of go to

Operator

Research. from Wolfe of Chubak next is question Our Steven

StevenChubak

Hi, good morning.

recent that's wanted CCAR. I question well? calculations something actually on to start earlier to the of Also in a part within you or Quarles of that part cycle XX% test. deploying that indicated CTX are changes part as countercyclical to the as G-SIB Is the buffer to allude the a just anticipating underwritten coming as capital. to of and your of you coefficient that target Jennifer, buffer deployed is the with wondering call possibility plans incorporated bulk in in a XXXX counter-cyclical interview as of the the SCB So, I'm the he alluded that. if implement

JenniferPiepszak

Thanks Steven.

end framework of And a that all has a things of sense reiterates we that important. always Vice about number level is I what's of he to touched you important the that that on us all thinks So Chair right. the from them. in with most The the comments constructive is been that across mean he capital in up cohesive system are think I

we final when have we'll see a firmer view rule. a so And

And amount expect expect we say, that of see something And then Fed we right. but recently comments like but do based the G-SIB, then about the in Vice constructively soon. the remain talking As that upon we see we we'll over you in we the see heard we perhaps hopeful we talking final certainly about impacted firm we've over which Fed the are target years that recalibration not XX% say just them rule. what for that about IV a have the has hear not have. you that our see we're on we about number have and Basel the been remain Chair Vice Chair until until very talking there to refinements system the can't be that And a refinement been full do that that said, is of XXXX going and been view and the hopeful will capital to is because has

StevenChubak

Because it's hoping as And Fed We the a really businesses that be terms actually you nice impact just And seems the is of or franchise, for seeing FIC results you're different increased across strong your well deposit growth well what Jennifer. whether in institutional how of that that's activity institutional all for but I some tailwind, to saw manifesting? Thanks some overall particular. in was pretty it providing as one deposit benefit really balance having one could speak to final color, on growth as growth. sheet me. strong as

JenniferPiepszak

Sure.

absolutely So you right. are

for side, wholesale a for the On the a Fed sure balance tailwind us. sheet extension was

Difficulty] wholesale Although, say the and organic tailwind was quarter. the portion our and I And it strong pension would from meaningful the was side thing was deposit more quarter [Tech the on throughout to obviously of do. would I right the markets in elsewhere acquisition. in growth repo the client provided growth say stability the

Operator

next is Kleinhanzl Our KBW. question Brian from of

BrianKleinhanzl

question a deposit the in quick services quarter. where reduction on segment management? A or security in down morning. were, Was maybe saw the saw deposit cost. the that that linked by drivers big you Good -- wealth Could was you big costs, have just break

JenniferPiepszak

Sure, Brian.

on pick with I'll pay bit -- retail a to from So savings we that migration where start CDs. and saw raise up on that's

from are relationships we discipline valuable going these say while of of always beta. And client we We continued treasury migration and have by we to we're good for bigger seen few as over declines have bit little are And we wholesale client And then see commercial in in you paid about side, the savings CD peak, to by CDs. on make and not are, bank certainly these services pricing and specific come less lose sure. then ticks a rates its feel client careful And decisions. the but so again AWM. named lot off where decisions a in a client

BrianKleinhanzl

issue? down sentiment commercial client? growth issue? of question. a Is for better timing mean the growth. Therefore And in seen quarter-on-quarter bank, now year-over-year. the come loan then a In and seeing I corporate middle it Is modest separate I what's end and the loans you mean generally just the sentiment it period market

JenniferPiepszak

Sure.

the market is where obviously I partially that's we're in specialized that and by in we very growth the growth would that estate the are portfolio but focused in which areas by commercial of are C&I, broadly are discipline takes and what given running course we of environment. offset we're seeing run in disciplined that through where it have feel and some industries offsets there more we're of and say own good rate and is continue off the function the then as we term banking to lending is then our we real tax-exempt cycle. where given there expansion, than good CRE but speaking opportunities a demand And I'll a puts So function about seeing in

JamesDimon

they're just planting to add some as you equipment. need and not, equal come but I would lending. pay These and things money down all inventory expenditures all receivables being companies less being capital equal things off a in reduction see which

Operator

Our is next ISI. from question Evercore Glenn Schorr of

GlennSchorr

get impacts here this data over concerns you on question A the and Hi. big what the I'm picture and and rest there. quick some of to plenty APIs the like open bigger had? what the curious with there's that JPMorgan but good meaning on your Hello the has are banking is things how bad? of and of we providers. some agreements it and security thoughts the concerns industry, big-picture What just level

JenniferPiepszak

security Yes. the And our would we is Glenn, only data as third-party to do way have we to there and our time I apps APIs. us I that of to say, customer's mean us. for importance data securely as through utmost access over can privacy is think best

working time the exclusively name way way do We access think through the customer's And hope most data. to third agreements are that can we parties that so place. name And is it. by to only we get those that's in our secure

JamesDimon

them and customer it data importantly give data give the agrees the the to them, is will unlimited customer on But does to is have the that access that they the pass to gave off, not know forgot. code someone basis day agree very bank ability data opposed customer every And they're that don't if you maybe the to turn even today every as you if data taking it you to to minute. your even to

JamesDimon

easy we're super and customers that. to for to our to it point able be make going Great do

GlennSchorr

to control you them tools -- will the will give that. you So

JenniferPiepszak

Yes.

they where You can imagine the have -- will dashboard

JamesDimon

That is the sense. full

JenniferPiepszak

Yes.

GlennSchorr

to and some slower progress little bit of with And companies. anything for some that any a that you've curious just on everybody seen you've just illiquid hits illiquid and markets, is on banking and parts repricing that or take then the if seen the is some parts bigger front about impacts worry repricing And specifically those the side? in going the what's of owns that's will there there of it, on follow-on them unprofitable

JamesDimon

the of companies? target Each

GlennSchorr

sorry. am I Yes.

JamesDimon

well, to are companies It's it's other market don't, private a some a they fail, access won't lot there systemic now, of of to the in capital just lot -- capital but of lot of capital downturn, some are there access not issue. companies. Look, they a Yes. have some do a private have

and an And just so have that periodically. you access big deal, I a that adjustment don't happen to think will capital it's

Operator

Marty Our Mosby of is from next question Sparks. Vining

MarlinMosby

a things Thank bit and foreshadowing quarter you. in just permanent little the Are kind rate are there then kind you rate of rolling two of fourth here? into Jennifer expected. as quarter lower first some anything we these that's quarters? the there you that lower Is was move through kind tax tax the were of what here than

JenniferPiepszak

I say anything -- Yes. They're there's permanent there. wouldn't

is for typically lower The us, first quarter Marty.

higher XXXX XXX on You can think or XX% to XXX but non-recurring than or minus that regulation plus managed or depend rate any about might is in being full change minus the any about XX% would and as of year typically course we have items that. course then plus of basis points and tax

MarlinMosby

fallen question came below of net and margin interest X.X%. bigger net then the XXXX the out was coming And into we X.X% we're around as a XXXX, when then now margin interest has

points XXX So points. then netted and up XX basis and down we've down in went interest rates negative basis XX

probably and some of got from competition more the that So profitability we I Or after in the little in the pricing. the do of this reform came quickly just bit pressure tax between pricing that either competition deposit way Fed the we the increased the some think of a maybe with the and curious taxes? net it's that just just the kind of that that is path is from benefit this that was loan in very inflected created evidence

JenniferPiepszak

Yes.

that lags the catch rising some several last of had rate environment. there say, we the reprice in up there on was some Marty, there on because hikes would So I sort

XXXX be seeing NIM, the looking think is very of balance terms sheet not it in about few -- slightly an at So what the always if NIM us forward outlook than for you at this here, upon just certainly and would higher certainly growth. the an broadly is implies expect we're been input mean for the to X competitive, outcome we environment and but the eases do And as has on flat looking I first last don't the speaking we NII down. is betas point we hikes based

Operator

Our Lim Societe next Generale. from of is question Andrew

AndrewLim

taking there for performance Europe questions. more you Obviously Thanks a market's well color morning. versus give on could it's Wondering much good APAC? my more there? geographically US weighting your if the done very there Hi, bit on is and

JenniferPiepszak

on I would a can have broad-based. Jason say, geographic Andrew specifically and was broad team based. that it but follow was up We breakdown, largely it

AndrewLim

territories market would and there? you're confidence that both in with gaining Right share you say

JenniferPiepszak

up Again, split but have follow Jason certainly can team I and on don't market the on share that. by region

JamesDimon

Yes. all say I'm that market up most can't that you want believe most products. to but share markets markets, regularly. start not disclosing sure, pretty I in we do went and in much

Operator

from Bloomberg Alison of And Intelligence. is question our next Williams

AlisonWilliams

morning. Good

trading and had to question circling back I CIB a just more broadly. the So similar

to So obviously like clients is more you runway banking and but share a cash for corporate this future of management, in and and opportunities the specifically question businesses transaction maybe speak bank Investor has Day, general. but gained can

you Europe. You're a Can that opportunity? in have speak the US We been all hear to leader US gains at making banks in anecdotally.

JenniferPiepszak

Sure.

So we'll color said where services give positions. Day Treasury we're more really good you Investor as about you at for feel business, we the

you the InstaMed adding growth, organic forward the investments of more But what going to Day. we're feel we're there, they'll about really be be rate that which mentioned in some there. earlier. but Investor End made think that We we Q&A think capabilities we obviously at by talk I we have seeing of and that can Jamie headwinds offset good about there organic terms can given growth

Operator

no And this at questions have further time. we

Jennifer Piepszak

Okay. Thanks everyone.

James Dimon

you to Hope you. Thank see tomorrow. guys

Operator

Thank participating in call. you for today's

You may disconnect.