Docoh
Loading...

JPM JPMorgan Chase & Co.

Participants
Jennifer Piepszak Chief Financial Officer
Jamie Dimon Chairman and Chief Executive Officer
Matthew O'Connor Deutsche Bank
Glenn Schorr Evercore ISI
Mike Mayo Wells Fargo Securities
Erika Najarian Bank of America
Betsy Graseck Morgan Stanley
John McDonald Autonomous Research
Ken Usdin Jefferies
Steve Chubak Wolfe Research
Jim Mitchell Seaport Global
Gerard Cassidy RBC
Saul Martinez UBS
Andrew Lim Societe Generale
Charles Peabody Portales Partners
Brian Kleinhanzl KBW
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's Third Quarter 2020 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 $X.X expenses, as I'll our XX%. primarily always, that revenue reported to we operator. Page with Starting the the the return in to month. million on Included of of in EPS X, quite our environment, website. you a of equity $XXX last presentation, ask these very firm business billion a the refer of $XX.X of please which quarter, is income resolution fundamentals well. common you legal the related morning, the you, announced still back. take on legal of everyone. net performed are results through And tangible at uncertain billion, Thank underlying available and while on matters we're for Overall $X.XX,

few sequentially. in expected notably, the X.X% to in our X% quarter of XX share moved balances, we normalization market U.S. revenue on deposits, strong continued spot before just in markets basis growth, and while IB a into I'll X% retail with we with gaining and see we deposits Number deposits share, AWM, CIB up performance we X saw into average of highlights year-on-year. So, The instead, up line-of-business some On its record another year-on-year. had the And up year-on-year here revenue XX% X% results. with of touch getting fees points

sheet was billion on was in Net clients. results. Expenses year-on-year. revolver income the as by on Page I that, down revenues, billion reported to On noninterest primarily higher legal the of securities downs balance rates, the let's gains mentioned. other partly X% were up hand, banking that Wholesale And offset detail lower was billion, interest approximately of including down billion $XX.X million X.X We for X%, primarily loans corporate. average or With CIB, net third-quarter and more markets expenses as on $X.X growth. which revenue revenue well X year-on-year pay driven or approximately XXX quarter-on-quarter, or up flat were market higher from our NII by X% higher and already on XX.X X% turn

Wholesale slightly million quarter, this approximately of primarily down by low X. loan Page released Charge-offs reserves Lending primarily you quarter-on-quarter. modest on XXX This XXX of our remain in and, across on costs million detail can approximately credit year-on-year, were releases, year-on-year in and and in XXX million run-off reserve more driven see which down were quarter, fact, Home portfolios relatively changes exposure. in We

see expect don't we relief until few second charge-offs an While any already payment and next given stimulus XXXX. of half over in provided, could government the meaningful quarters, the and increases in uptick charge-offs we

you As page, the can case updated base from at reflects our the bottom some quarter. improvement of see last

However, future still is term relates particular uncertain highly in it the stimulus. medium-to-longer as to

I'll X, in And the Page prepared so weighted a assistance of And downsize worse what and than remain we're programs. update our reserves scenarios, we're billion, XX.X quick on case. turning provide now we our for customer seeing base to with heavily something to

current. of primarily You have service Auto relief, relief, left and approximately & terms portfolio. Lending, with Card XX exited vast XX% and XX remain seeing of can that in have loans deferral we're so that accounts majority what billion owned here And see our customers of in customers our in the what's exited including is of billion Home in

of liquidity lower have on points And $X.X offset generation noting worth billion. trillion across versus sheet we HQLA last earnings and Page available Now, securities. and of X. XX and to RWA, with quarter the We balance sources of capital to XX%, up that on ended a by ratio it's quarter partially turning CETX dividends us over X.X unencumbered basis

lower compression CCB strong lower net $X.X businesses, lower X. on year-on-year, down by to on growth. billion, holding Client offset up Banking both let's of X% Page Card balances, NII spending net production inflows XX% & levels to and our starting driven of Now They pre-COVID billion cash time, customers, of were have and lower deposit With consumer the XX% by digital suggest savings up Lending increased Deposit well. well market customer regard as adoption, growth Consumer our year-on-year deposit across early Home over billion was to on partially income persist. with driven largely XX%. buffers business and and same performance. at consumer and was year-on-year balances. customers signs margins Revenue growth by the built Community investment debt reported will up higher relative are XXX XX.X migration digital margins. as both and go and small to assets organic an Overall, ROE

and versus XX% active, nearly up year-on-year represents and fact, deposit pre-COVID. And of that's XX% XX% points check digitally customers are all percentage our deposits of than accelerating. In now quick X more

to driven were by Home XX% lending. consumer down with on correspondent. year-on-year Starting Moving Lending, originations total

volumes million portion were and up Cards. Auto, year-on-year. of due the included XX% billion release record loans. up were while improve XX% were the lower down March. XXX of spend, Lending Cards billion charge-offs X% was XX% spot, since year-on-year, sales X.X applications quarter were net $XXX consumer throughout XX% CCB run-off reserve half of loans were Business up consumer lastly, sales month bright driven quarter, portfolio double-digit down which the offset reaching Expenses X% down growth significant Home only year-on-year on a of PPP a Retail, the were X% in third card-not-present due by the year-on-year. the Banking, and by by quarter. with year-on-year, year-on-year, spend, down of reflecting a XX.X decline to largely And Lending Home to for driven originations down And level And overall marketing However, than in spend Total is September, to lower were in Cards, lowest then XX% billion first completed cost more X.X down predominantly twice due X% of in investments. of credit quarter. digitally, notably, million net the our of continued In transactions. And

down to rank and the year IB we $X.X revenue an billion Investment business, & the our IPO XX% turning X.X issuance all-time an in with revenue Now quarter's reported all-time of Banking by on an markets at year-on-year, of muted fees impacted ROE equity date. advisory, uptick we near of the first XX% announced on Bank or performance record a to which sequentially The saw CIB Investment and driven year. was quarter, In Corporate largely billion up M&A by equity largely driven in backdrop of strong by volumes maintained X Number off income half Page trading was down XX% year-on-year our were XX.X in highs. X. and capital of billion. net stocks the

primarily to also strategic in sequentially saw to this more recover focus some more as levels acquisition Number saw second wallet, thinking. up quarter quarter Debt began to resulting rank high-yield leveraged M&A lead we ever, XX% to the quarter. XX% finance pre-COVID their In day-to-day X% returning up a levels We activity However, volumes return driven announced equity saw deals from with IPOs opportunistic operations down but by maintained pre-COVID activity in we investment-grade performance financing the in we surge underwriting volumes the leveraged notable in companies to year-on-year, left across year-on-year, best and in with and The X as shift in the record and finance. normalized fees levels closing. continued spreads overall we're from and market were our underwriting, approaching third strong leaders were our fees follow-on’s.

last flat In quarter we strong terms outlook, sequentially. year to a roughly be of expect and fees down the versus IB quarter fourth

could remain to valuations see momentum capital However, in if markets. continue we elevated,

total to was up Moving year-on-year. X.X markets, revenue billion, XX%

of across a activity recovery strong trading as XX% year, and environment favorable to on the income continued products, year-on-year the well earnings by elevated robust credit client derivatives, reducing year strong of in XX% of this continued in first balances of was market in solid year-on-year range in last and in across reflecting broad in cash. was throughout commodities, performance against was as and notably activity conditions. elevated as client volatility a products, driven up the resilience half a equity third through from securitized activity While well spread, with up a a quarter the and performance quarter products. franchise normalize, Equities levels volume the power the Fixed as prime

environment. reporting by due reclassification comparison. expense, by market’s expenses. billion Wholesale for Securities higher were higher volume Expenses a X%, And compared was offset XQ important up Looking and performance in performance compression, down deposit XXXX flat were challenging that Services revenue in margin largely services. revenue of the remains X.X to offset year-on-year structural growth, to this year, merchant to well difficult driven forward, year-on-year, X.X deposit of was was partially and billion a of it's margin revenue-related balances forecasting deposit as X% where lower compression. obviously, year-on-year prior billion very $X strong, largely Payments offset legal by making by balance as remember

year-on-year CRE. million increased year-on-year, declines up client debt C&I up flat and revenue and of of year-on-year income X% in of year-on-year. and XX% to of XXX XX%. of X. fees lower and Average ROE but X% reported volume up Investment on and billion as down higher Banking Gross net revenue. Deposits quarter-on-quarter deposit activity. underwriting balances XXX was revolver was moving balances Revenue on elevated. million X% offset XX% to were due compression, quarter-on-quarter utilization driven lending of clients by remain origination and year-on-year XXX margin by were by Page were Now up in X.X equity Commercial Banking billion Commercial $X.X Expenses an higher billion loans on Banking X%

release credit charge-offs our including reserve million, were benefit of $XXX net costs Finally, a million of million. XX net a and XXX

to Page Management & Wealth Asset on Now X. on

benefit of of as balances, X% ROE Wealth pre-tax billion deposit and X.X & XX% to for of Record XXX net and and net margin X.X Asset loan of and deposit largely Expenses with was brokerage with billion XX%. costs Management year-on-year higher revenue management were in offset by up of primarily activity, the reported income were fees million quarter margin growth year-on-year, reserve compression. XX along due were million, releases. a flat credit of

channels and of client quarter, of year-on-year, inflows were X.X AUM income saw of liquidity and levels. all fixed XX% outflows net positive XX% same the XX% And as of net liquidity up XX billion. in billion mortgage driven by were and overall loans X.X and higher At we inflows wholesale assets deposits with up as XX driven time, trillion net the and For trillion, across long-term were market into long-term and and both strength year-on-year, products, by were finally, XX% respectively, lending. well up equity.

to on rates, XXX net Page impact by million an the year-on-year, Corporate primarily was interest reported million of mortgage a Expenses net of gains lower faster legacy loss million, on year-over-year, on lower income quarter. approximately offset were on a partially corporate of XXX billion of XXX due down net by $X the loss to of on XXX XXX XX. securities, in million. impairment a driven Now Revenue million investment. prepays securities including up

outlook. for turn XX to Page the let's Now

year see in-line remains I You'll our Barclays. here said for at full with XXXX what outlook that

to And outlook expenses on color you we're page XXXX we'll interest adjusted net to billion. Day, next to in anything and we quarter year. approximately XX first of have not approximately the expect XX with on income We Investor do the be and while for the more planning be don't share billion

even recent of this data have we wrap So, constructive earlier year, up, there a to more uncertainty. significant though been expected than remains has economic would amount

while broad outcomes the so we communities on clients customers, our line and serving focusing for for that, please through to this a operator, continue And prepare With range open time. Q&A. of

Operator

[Operator Deutsche O'Connor first of Bank. question Our Matthew comes from Instructions]

Matthew O’Connor

morning. Good

for low about medium-term hoping here just key is about was will the you grow minds investors' we that the revenue expansion right think rates? kind And branch you if up very would rates I could of can you as revenue. about a the obviously, very And I long reason] you. X%. company managing Thank in been that lower-for-longer [just as how year and the alluded to questions date, be one of banks now the you has grow So, talk And time of revenue think stay if part comments you that good, how on think could how helpful? to answer,

Jennifer Piepszak

Sure.

branch relative it's all, the about think we significant first and to early think for be so also, more we you in investment about run seeing on what and under in quarter and XXXX, will said growth how we that with on Having that, for will details, the of to record detail that outlook going the it in and are banking, rate on way that revenue that be more with and because true expansion is we terms we we're in franchise headwinds, I But pressure revenue outlook value but give in base. we'll to XXXX So, NII of can't the that. temporary that be back come of expansion. if markets our first see the the pace tough deposit company are the we're branch a we that change not plans in compare. might And – continuing

think, in states, so we'll year. ultimately another in XX. to enter We'll this We approval expansion a have, got branches open our more do additional all XX We far put than markets. lower almost I XXX XXX us which

with continue remain branch case. we about with it performing original So, branches, the in cases, the those most expansion above business very well new excited and

Jamie Dimon

stopped one little give private the all the keep stopped And branch is We growing never one stopped The credit and bit We There's products that. products. the We're of growing. we We adding be products, growing that Asset and Home of We're them never any never adding adding doing doing on expansion gaining digital that. look We Chase view. kind countries, card example products, growing Lending call we'll – bankers, the Management. or you I you wealth decade. kind weather. We're business. bankers. ins And same. things the course, all and but the have management the always a weather: goal We're markets, not from these etcetera, margins, we're just of through call is for spreads, – in next to NII business what digital. longer-term services services. out of single [Indiscernible] securities of management cash I not

business grow You world. the your serve to around the clients

Matthew O’Connor

follow-up, going for in that a now until if terms some as for I year, that and net know or income. takes. then just on interest you to said Jen, outlook of And puts wait meant the you'd January you'd next elaborate don't you're the

Jennifer Piepszak

Sure.

good there, So to had rate place Barclays the was at that start. said I a current run

and place good the there, of So reflects from and market's sheet XX and billion some NII. start throughout impact in be normalization for mix is growth balance But XXXX a to the supportive rate environment should year. the

would full-year XX minus. the point my at XX XXXX, for pencils or to so But of we'll And best continue right view full that billion. updates. and yes, provide plus this our now, year, on But billion, be sharpen

Operator

ISI. Our Evercore next question is from of Glenn Schorr

Glenn Schorr

Hello there.

Jennifer Piepszak

Glenn. Hi,

Glenn Schorr

morning. Good

be about I and Thanks. So, appreciated. get I talk what drove But driven prepay It'd on still guess commercial could reserve Maybe I that. specifically. real release definitely the NPAs by was that. mortgage were XX% up estate quarter-on-quarter. if run-offs, comment you wonder

Jennifer Piepszak

Sure.

was So, a of paying. consumer Wholesale, then run-off in our it not portfolio changes reflection And that the and have out in reserve the change – and customers are increase so represents on release, is on loans not and come the outlook. is forbearance largely side in of as in exposure a nonaccrual you mortgage, the said,

And slide, slide, current. so still deferral that the on payment about are XX% as you saw

exposure. nonaccrual The reflected has other in the been now XX%

collection and side and then you was So in said, just is would then commercial XX%. retail feel downgrades, estate, broadly you that in estate the nonaccrual real gas. recovered And look just are oil we're as as all the if name-specific XX% of expect, reserve was exception example sectors about increase more September retail-related just the of we facing. an which on even the XX% But with then I'll mortgage. And XX%. few has real adequate for you wholesale share on between a retail, rent And overall, and about to what at that month – in

we but there, uncertainty of adequately lot reserved. a still So feel

Glenn Schorr

consolidation. potential appreciate business, past, great. not We in us you be been ask asset in participating that. the management? doing in in need have the on that interest saw Maybe just would doing but specific you Can some what – wealth lately. spoken asset interested and talk I don't to about you about industry Okay. on might Thanks. parameters of happening in you've management, of I remind and your one

Jamie Dimon

the ability be do the since of Well, will on but the our in you think makes more there. are see determine doors product-sensitive, the consolidation we have for lot us and telephone something there issues would – wide all and interested, in specific not line, will lines the we to the going are technology, our We sense than there's very projects, we're be a business, open. whether business execute, that. to lot [Indiscernible] that systems, you

Operator

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

Mike Mayo

Hey, some and was that Jen Hi. Jamie, comment.

expect that's half second You year, the said you not much until even higher the do with NPAs. higher of charge-offs next and

what that, their as actions actions expectation? as might run that Jamie, course? the far in specifically that forbearance when your And, Jen, embedded assumptions So are behind policy be

Jennifer Piepszak

Okay.

So loans. the I'll what loans, on about just LTVs with, you the of value nonaccrual first on LTV what mortgage. near on increase look And still those the those was look that's we're is charge-offs all, very term. to in – Mike, on at loan how will thinking the into embedded There's the those – start, in healthy like when

fill XXX until stimulus So just about about half in talking and past up, haven't a and amount relief delinquency due in seen system, charge really XXXX, we And support just cards. to of and the really, back payment we days losses we're talk the buckets in emerging way, not when cards. significant of the begin we given the

see a next increases just XXXX. relates primarily wholesale there we charge-offs, could of is as to expect that until the side. cards. side meaningful quarters half It's on change or few don't charge-offs the and just the in issue in timing maybe here that the We on consumer it So in the second

Jamie Dimon

And, what will determinative outcome. we're is saying say Yes. is about Mike, this is better policy wouldn't here I first the because [indiscernible] will that policy And policy, all, skew odds unprecedented times. and that of matter

doing the but can is policy markets PPP. kind on to continuation obviously, insurance policy the fiscal side the So, what is some unemployment just the of think keep open, Fed I and – of it

maximize two that people the better are just day. intelligent we'll remember, people So, work. those to areas to do to over time, I return vulnerable every and most I work think chance outcomes have million the XXX – that caution go

your the work, So to the the you do than and may distancing on is million XX like complete focus go But examples it's There's social safer who a various XXX million to the home cleaning rather safe. don't that in the all the that, community. things of go lot and who being be where work. it

to because And won't and the under people be important are so bunch – a stress able strain lot who of cities year a at lot a of whole of a you but and work There getting closedown. who stuff. bit are look of and back little is survive travel another complete to

They of support rational, that. chance office, and the numerous, office is a good towers will done of all the And things good those two businesses properly, outcome. stuff thoughtful don't which chance and the the policy those like maximize the buildings guarantee outcome. So, will help other to big return

Mike Mayo

middle of the And When a know part done, financial test of I or think at scenarios, have these you GFC – you thinking a but percentage in mind? level? stress we Jen, GFC charge-offs is as the crisis? like this your all do think know two. said back global you're and the should the is as it GFC are guys you where Jamie go question, where twice the – have is level, of level, What the same to have You I half tough but

Jennifer Piepszak

GFC this be probably answer. heavily of very It's will mortgage-related, was and question to because difficult a the very less course, different, so. It's

uncertainty better We unemployed, have don't the I just our or add. mortgage in could amount this about XX million very of go, I where still think difficult. also it's whether Jamie, coming this, shape card. people significantly we into are – know, given whether you portfolios it's But would

Jamie Dimon

at hard and there, And, case, are the Jen. – hard agree adverse with Mike, and case. the completely the Again, we you, future. the extreme very say. medium case It's the the answers very it outcome. look we It's And to depends good different, don't relative the on know I case, adverse

But predict for our is things. roughly. that equivalent So extreme roughly adverse it's prepared hard case relative reserves compare just in – it’s which the apples-to-apples equal to hard to what we to CCAR it's very to to be. these are Again, the case, adverse got, going to

Operator

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

Erika Najarian

the Hi. stocks. to earlier I that ask hesitant that Jen, are one cumulative question Good I just morning. of credit first credit think bank policy two back comment. their did into goes quality changed dip Jamie words, I'm investors or for realization – delayed to your get outcome get lower the losses is In the you going said the toe stimulus it I and is And and do back losses? this to questions these redefine this often on from think The other cycle?

Jennifer Piepszak

it's think know. I difficult to So,

outcome, businesses But People employment enough is back sort bridge, it's and of will the strong was the the described enough change the bridge bridge to be to people and just to to small it to bridge and losses. I think know. purpose normalcy. difficult long not whether as a the delay of back question it

So, be I seen. remains think to it

As outcome, Jamie the reserves. preparing we obviously, to for not because it obviously said, we're built significant necessarily change

a So, to the rather outcome. for it change be than delay we're prepared

Erika Najarian

bit Morgan a mentioned ROTCE [XXXX posted the essentially imply as think credit the to XX%, are a what in interest and what earlier And I from this what that XXXX]? going about other back "weather Got about be ROTCE." investors prevents Jamie. "normalized Matt's to question, JP This perhaps of that you recovery XX% follow-up environment may it. for of but rate you on you to considerations," worried And direct follow-up question, the my and if to could is side

Jamie Dimon

a know guys you Well, of the to future. that's It's forecast hard tell.

rates think probably low negative rates. able we're banking returns at and industry handle strength, idea with to and buying interest means their and we be other bad to time, decent But rates, they'd which will doing can I low the back things a stock capital. are have force, over

I it's like around, a you long-term bad think didn't idea to in global mean have strategy. had also it's we go massive I all bad they're think I a for assume the that forever. continue last and going we to QE inflation.

So, the I support remind people, create a lot put Fed. would the securities that to and The banks. of deposits that The QE so deposits was Fed banks. support to banks around central banks central in

is So its it been which inflationary new stimulus. Fiscal not around world stimulus, has inflationary. was the extraordinary nature, fiscal by

people, so can of environments. things. their what We investors, cannot to day stuff. certain moving work charge and the around things. rate be a day securities, don't we the money to world, we're still We'll interest view, services do have of tell we bunch required, helping really and for We trading But and do certain I through of our businesses out outcome different and whole And it. But We plans that. manage rate for going Okay. money, underwriting can regardless we'll in adjust the is environments, know my build etc., interest

Operator

Morgan of Stanley. from is question Graseck Betsy next Our

Betsy Graseck

Hi. Good hear Can morning. me? you

Jennifer Piepszak

Betsy. Yes. Hi,

Betsy Graseck

outlook for and here potential Hi. two understanding between be to reserve interested I needle stock. questions. in the buy are how back was had threading your One you the

next that's where outlook a unemployment capital high or we above reserve today obviously got here. And You've for continuing is months, base it level case increase six for build to the your are looks like, longer. the even with

release about could So, we think to release come would that? start your XXXX? the off second half before charge-offs mentioned, And imagine buyback in before reserves kick reserve you that we you like Could net how should happens? through,

Jennifer Piepszak

Sure.

stock we So on as of here obviously, first restricted the fourth – we are in buybacks, all, quarter.

more distribution Fed that them need they will to hopeful to normal first the see what the are give revert what framework confidence the resubmission under need a SCB to the quarter. in they get and We in

of So, capital the are to that's important and that considering we estimate best – we not the are well. excess of us. going another, And to always related decision we most could we foremost. if if we look if related the our like wouldn't course, our do grow first quarter. to But to regulatory necessarily would that capital obviously have see have not you and reserve And hurdle losses said, reserve as a back release. have first And then, then decision buy be always businesses, the buyback that facing and us early capital excess restrictions, hierarchy the as our we're for I sure make one as and uncertainty stock have

continue would a say release that, a CECL other give – reserve releases, capital need to to on remember partial economy we capital But on deliver there confidence The thing was release the just case on obviously potential us that, I see what the base the to that is builds. with. we're dealing

half release you reserves, that about only through when to falls capital. of So, actually

Betsy Graseck

XQ obviously at those a They're change above that What where just XXXX unemployment? thinking about you're little you've in we for talk where base you sense could case driving and And X.X% what's outlook talk bit at you unemployment case the XQ forward? flexing X.X%? could us XXXX assumptions? a base could this outlook would us as for going give to And are then understand the – you X today. little a about help And Jen, how Slide got

Jennifer Piepszak

actually That's like the largely, rightly That's necessarily, our reserve. for you reflective we a run the Betsy, models out, when point not with as issue autonomous timing of Yes. latest outlook.

more of look think the And to the use depending weight what heavily for terms uncertainty, the latest we of we base downside So, Jamie said, or case. the dealing the with at scenarios fourth scenarios. as outlook maybe may heavily progress we're again, we through But scenarios. as would, even we different the weight quarter, we a then upon continue in downside number

We have to see.

peak So, prepared we at unemployment level. now our we shall double-digit the reserves, case, weighted all to base revised is would comments. of the outcome say, unemployment, it scenarios that the derive are for if of with you I it from start – use But the look a

Jamie Dimon

is Yes. should eight perspective of bit, amounts PPNR billion. got going next take. we Kind the of you what XXX and And earn quarters that's billion little will like know look into or capital, have it I extraordinary in the $XXX pre-tax, way exactly billion, $XX just don't roughly earnings of at put just We've securities. capital. pre-provision just a mean of trillion liquid assets to We give be. the X.X

will things more billion, capitalized. down it up – the quarter. get emerge have if that about view, several stock, up with which we may means over will capital take it worse, put that's and billion, that, my a you very better, emerge All have plenty And billion. quarters, reality So back also didn't reserves. can of That dividend, pay XX buy than we won't put the in XX XX it. conservatively than worse in still Even and be be the be it to you if buy that, that the that. get If of

capital. other regarding be to loss the you we're And and loan stuff all read. reserves conservative [Forget] Okay. like conservative. We

stock both I when of the And do hope comes. patient, higher. allowed it be we're to we we'll to but have much before tremendous the do So, too wherewithal time amount is

Jennifer Piepszak

we And as the scenario adverse XX billion that last referenced, quarter. Jamie extreme about the talked

XX billion is So, that think you Jamie is that that if referencing, can that's the what…

Jamie Dimon

CCAR XX% I goes mean that the case is billion part off worse into It's of of adverse. XX extremely really we got. just that it's unemployment than the far quarters. better six And XX%, Yes.

Operator

McDonald next of is Research. from Our question Autonomous John

John McDonald

Morgan? at revenue and you year, about notion expense investing? surface how next saving Underneath of Can morning. tough of the are structural JP you talk Good digitization be you where does that expenses, against flexibility Jen, you that you change? on give to flattish you'd money some where mentioned from comps. the have And like flexibility

Jennifer Piepszak

Sure.

year. all, first still working through of So, early. it's We're next

in will digital, to So, we But the refine – I and will first the quarter. as certainly expenses, that's one. mentioned it relates you guidance

invest. bit, there to will expenses, we're expect world the We will going several for opportunity been structural continue efficiencies we a our years. revenue-related and continue the have There to deliver as to to be volume will as in but expense we last do – on normalize

And and detailed guidance quarter. puts the so be more takes, there first will we'll provide just you in and

John McDonald

I as What for you maybe that GSIB And surcharge capital, your things over over those And to path getting a and two time? time? can the of to doing prospects and route Okay. the about how do you’ve footprint better feel about notion potential think on that? your the talk do there's the that. commented SCB you follow-up, reducing is

Jennifer Piepszak

Sure.

at start this of the which to in do not immediately. we is bucket So, I'll GSIB, year, it that end effective X% be the with but is expect

possibly to And balance levels quite that so we XXXX say these manage down is challenging. back I makes that will with at sheet that expanding the Fed the have down. back What would there GSIB managing

do of about, absence recalibration, franchise down certainly in we'll about managing remain before which challenging, So, any client really anything. the hopeful be impossible, we our think but will certainly impact but that we back not on

We no could doubt I'd challenge. there. that's time but we SCB, of that, have see scenario-dependent, On start saying some by help, recalibration a it's that course. So, would

think But other that we're scenario-dependent. the it's things transferring maturity some have to to then down our to side on again, manage will and that that reduce equal, we securities include we SCB. do all equal, can opportunities SCB, held our mechanical and confident AFS issues now, from So, else all so

unchanged our be said, over being of over time. that I XX.X% that just say would John, level point expectation all capital this our target should to time is at So that XX%

John McDonald

Thanks. it. Got

Operator

Ken question Usdin next from of is Our Jefferies.

Ken Usdin

I'm securities. Thanks. of of from really a available but about like moves portfolio talked maturity and of look that Good for into have to to investments wondering, the you the guys mentioned you expectation you just did sale. down, Jen, didn't And held this might continuing size cash quarter, but bunch changed trillion deposits grow. they're make you've got Jamie that earlier It settle morning. X.X

cash that can into – And and things might at you forward? starting least protect this some of so more point forward to what do that going at to move Thanks. NII going the the with move some earn

Jennifer Piepszak

Sure.

talk… I'll So,

Jamie Dimon

Jen, do going anything we're just say that I the not to So, NII. to want to protect

the where if we see that a your lot some XX making to rates basis But to be XX, which a position XX securities, or teeny in a have of We're go company. lose in decisions of long-term to if XXX bit, can be we going for you'll it little squeezed up. X-year billion going may it. invest make XX-year more And a gets becomes invest We want money to little bit points, not lot a But NII in get stuff we're so invest or don't we $XXX NII. we and so billion. today, cash lose because of you

NII. we're not protecting So,

Jennifer Piepszak

Yes.

it's the buyers selling not But at as end QX, about for in very and principal we of billion protection optimizing been in QX, us. we were of because we've opportunities, capital manage in that terms activity that added which QX. as multiple dimensions, So, XXX about matter, to across the In Jamie we're now levels. made said. sellers just securities saw you portfolio, the these a remember We attractive the saw thinking And sense portfolio we important active just active. through NII, economic

Jamie's to give have third it just so just us, quarter. but also NII, in up some we economic buying the – we So, you but sense for point, were made

liabilities optimizing excess also We on with the liquidity. focused

from that So, debt you'll see last billion quarter. is nearly down our XX

also And the portfolio, these then and a it's just with holdings. So from perspective. made high-quality capital to were just transfer significant it securities the terms protection I held to for mentioned, of maturity growth as in core SCB in helpful sense

Ken Usdin

duration fully some the… A agree of that fee think on – point, I and the follow-up on Yes. if you businesses Jamie. about just

Jamie Dimon

raising what also can rational some why it SCB? that's we're should we that's guys what drive the question moving and maturity, is is a I about thing, of It's down Like be SCB. which to held the is. it to with. reducing don't think But that deal You going why

Ken Usdin

Yes.

Jennifer Piepszak

of so levels. have we'll been but we remain On backed over duration, bit has – at added last a these the and couple weeks, have we opportunistic, the up XX-year with

Ken Usdin

you've good. just then made and And where comment quite the it wasn't over-earning posted the half had the fee get trading, which still and And do relative Great. year you the to the it last one they close think general, consumer how just follow-up where It's got as right, and on cut are about are think much, to much consumer ago. businesses that, trying back anywhere Jamie if quarter, just where how then fees were in pushes any, pulls look that you to to quite, in is? Thanks. between was positive. can get from a institutional forward, in still it So, fees businesses first they you through And half? terms how better the of in

Jennifer Piepszak

Sure.

that you'll both fees, that So The actions recovered quarter. on bit fees experiencing see consumer consumers the in was impacts higher of that took, the decline because fees. also but also a consumer release third are there that cash we buffers

and And that's so we'll so – that. good thing, take a

normalize We we earnings. the the get did much what for exceeding that that then recover the take quarter levels. fees might to quarter, did And be will in also when third And see normalized did consider institutional So bit thought IB very third had in expect markets you bit, to third strong quarter. not second side, in as expectations what we we back a our on quarter, as were a second might at have but that in time continued to thought we to the see quarter. the but

fourth is the quarter tough though, forward, Looking compare. a

we do continue the it in on and year. just M&A recover it's side, – the see was quarter, flattish a do third last to IB still our in ECM. we is down what in And markets to we It's but pipeline up normalize. bit to M&A, fee did expect and then So,

about flattish this in said, at I right as point. feels So, the fourth quarter

Operator

from Wolfe of is question Steve next Chubak Research. Our

Steve Chubak

morning. Good Hi.

was growth across separately, guide speak XXXX? billion hoping So, And see what quite When expectations consumer the both balances for level begin in loan you you the loan the that contemplated anticipate we could do you XX and is to Jen, just growth institutional of I for provided could to positively? NII channels.

Jennifer Piepszak

Sure.

growth loan think, will I the challenged, for – be short-term. in So

supportive think tread increasing at probably but investment normalized capital with time. loan I CEO of these should water confidence On be the more wholesale that side, we'll some growth, M&A activity take may but and levels,

the we side, levels. to On cards consumer seeing to continue more are revert normal

that will in be continued XXXX, so continue by And but offset could prepays the mortgage. that into

then takes growth. see will to puts there I management, So solid there. asset think and And be continue we'll

growth a helpful supportive So significant loan of but will is benefit net-net, on mix card growth, the not mix the be because of NII.

Steve Chubak

for a Jamie. that question for and maybe you, Thanks

I of potential rate to potentially you some might where the clients. you was and for to charge alluded for additional could had services And to pressures. You charging hoping to areas products offset look speak

handicapping follow you're attrition client how of the don't if philosophically, competitors just ultimately So suit. risk

Jamie Dimon

But company I of I to spend necessary different hard rates. There ways. happen, think it account. have But to is gone lot you. of with it's – competitors don't not negative don't by do matter, stuff, are first you we negative agree a these a too account time to a we and I have, much we going But how all, respond do so as we If think services, I in said, of going through like I I'm and you a time the everything competitors how worrying lot it. don't will about doing that a rates world, while all it. competitors competitive – it's do respond through see

be will opportunity there and So like something an that.

Operator

Our of Global. is Mitchell next from question Jim Seaport

Jim Mitchell

been growth? sort do morning. seeing? deposit talk to we had Hey. on is It just it deposits? you're continued the Can think to money continue? Maybe Is what September. I you like growth further Good question you it do just And of think expect all out a into driving of What this the kind continue? moving surprised to expecting we've you growth. in looked at markets you growth, of Are

Jennifer Piepszak

Sure.

we there the on just on consumer active services, didn't on side that side cash the the with we no excess spending consumer that sidelines. see and wholesale places the managers asset on We would like what security holding thought would. then in the doubt liquidity is there's Fed this the significant we think So, quarter, did being third in that in both normalized with deposits We system.

we in quarter. did third see to growth yes, continue deposit the here So

for Going normalization a that. that think part forward, outlook still just very our I of except is much

normalization organic continued offset offset perhaps growth, likely will the it growth. is be continued that organic the bit Given here, by deferred a more than by

Jim Mitchell

delinquencies? sense. do you – we up think – about would deferrals given delinquencies imagine is would either seems very well that core we as You've of I in we to surprising really And do government? see haven't Where see how reserves? to mean we follow-up charge-offs we're Makes just in are your as – well. had expect very where not today. delinquencies do I what far acting good release be the the When see or then mean build seen the book on appreciate But delinquencies it of you – yet on making goodwill so a I before and are do it those we we'll what Right. it way. triggers maybe that that think do tick material credit. all charge-offs. decisions dependent going I or sort you you any experience When that

Jennifer Piepszak

the delinquencies relief, also extraordinary provided been Well, up seen through – payment the but the has that we tick because one support is we reasons stimulus. of of I haven't think

we So XXXX. and think end how up tick the early not of of reserves. part beyond in see We're we'll assuming year further delinquencies stimulus probably the about this

and think So, XXXX. back to then charge-offs tick up in start do of you'll XXXX half early the delinquencies see we

on stimulus factors part more the will just coming right just base we'll about the we I reserves be confidence delivering that think the would us one be a level as of and economy in that. looking over There's give at delinquencies future of quarters, think the our of case. lot

Operator

of question RBC. Gerard next is Our Cassidy from

Gerard Cassidy

morning, Good Jennifer. you. Thank

Jennifer Piepszak

Hi, Gerard.

Gerard Cassidy

credit deterioration give you it's go on of today the that have in seeing you're you're you can minute in had going the the are share to a or commercial I into like seeing very rerating what you're in this, real us of when terms on that jump well a consumer you've some area, spoken in or what's for you those on but can through possibly us color that collateral, business, color credits give kind commercial on of credits trouble write-downs the I estate off And sectors process call, and loan? as about biggest what can you if but specific revaluations challenges? those some in the missed the may side going the

Jennifer Piepszak

Sure.

So, ones the I When lodging, third sectors be sectors, other and the restaurants, here pressure. T&E, that to real downgrades the the you look think, airlines, significant quarter continue quarter, most – in expect quarter under estate, oil gas. – in are would those on And just slow of the you here that or the not quarter, saw we were companies in second taking downgrades the third debt on. the because saw in level a third we downgrades bit at increased

downgrades saw real the we constructive. sentiment in but estate. say, And would elsewhere, guarded, I slow but to So then a is CEO continue, bit in expect in wholesale, downgrades third particularly quarter, do we

Gerard Cassidy

color? a you're as us now margin for your enough in in I color, in know were business the steeper what give some curve? your would just government some Chairman And time, that's follow-up, XX-year due not looking he I and interest us any Could to up rates let's very if we're if pick know growing bond does that your prediction, XXXX a of, inflation? see but quarter how it for fortunate and in quite points, steepening is third inflation, do on then basis yield you Jamie let's give going then the you if rate XXX on to environment. and Very higher in is, focused rates you good. – the say, Obviously, a say, curve move some to indicated not Powell get we has we touched revenues can if but

Jennifer Piepszak

ahead, number. be Jamie. It's would it don't hand sensitivity to have a the I go great if –

Jamie Dimon

in a say, rolls it. not rates Yes. and it I'm rolls up The time. But the piece. I'd rolls number, tell of the points. if that the smaller to forgot you, – XXX basis like, right at the in Jen, go going there's that's a I that, way XX-Q, billion and year, make isn't a the would shows disclosure with but what $X.X look to happen piece as over and compounds we

ask to why. have the You

active we're you rates up; going have have If to and environment, are an volume going more NII. more

big really a you idea. by have If a that's chance, stagflation, bad

important just So, than the what the why more here. is

Operator

Martinez next open. question of from Our line UBS. Saul, is your Please proceed. Saul is

Saul Martinez

that to mute. to Sorry tracking – and and to think But been There XXXX, it the Hello? $XX on say, I year was a range. sales consistently close about of billion, basis, on generally in crisis, $XX revenues to, shortly on back on the of a in trading. this been revenue say, $XX obviously go sales quarterly earlier Ken to that, trading annual volatility the it's an lot I you're I billion was billion question, after we and from if follow-up pretty but in, a wanted it's probably was range.

revenue normalize those of PPNR changes it more obviously to it from conditions than tell? trying market going you that have a or revenues how market range through pretty have too has or as So, think conditions in outcomes on forecast your feel do historically either forward. of because hard to the big I'm to just businesses and had think is share have kind just we impact even revenue about, and allow normalize? overall – a larger terms as frame you or structure market there the Do base of you maybe been like than

Jennifer Piepszak

mean you year. for we're know, I on – that think I as record pace a

be idea even any but by are the challenging, add continue offset that Jamie, So, I market do partially forecast to and want to it to the do as know, in gains early you to before. think is be never to a to market normalize. share year don't try never mind you anything? we compares good mentioned, expect could And quarter, the I going

Jamie Dimon

is that. that. to a that. working. and They impossible ground look, say, do We in tough lot forecast got systems like this stuff a we're better building can of Almost and numbers all a I'd to competitors, job short-term

Saul Martinez

higher kind that, or that's – in Yes. a No that totally post of you've than to XX% – get appreciate and that. It's done year and the post-crisis that. the in about effect. revenue environment to any tracking just that I somewhere understand you're what to I that

normalized So the just more pretty that delta between a is rate run run sizable. has rate been current and what

kind So, of whole. more color I'm in as in, just thinking a trying just not in of outcomes for and se, a through normalized business about settle a just per get necessarily terms as you a where base quarter, the kind of to that think any range but could on given of

Jamie Dimon

Yes.

won't. trader Hopefully, I'd and it the quarter did – our than have it's we But time. couple global be So, credit don't market under but be exceptional might would total remember, job, assets say what done better the an past quarter but years, I second that's will third say been total growing in typical not total bonds, total total mortgage the of products, know. itself, cards, management, over the probably products,

sell our is underlying moves an there them spread, So we around. growth around, as we competition

Operator

question Andrew from is Generale. next of Societe Our Lim

Andrew Lim

questions. taking my Hi. Good morning. for Thanks

in I guess an line that's reserves. of billion adverse XX.X happen of that to going got scenario. seen given going forward you've can't we've you different many but some extreme released. know with one, first tell the So, being these variables, I what's already

had we much billion time how back P&L we be the the out and what coming wondering So, over to I pan base was through the that years, case over if of should period? scenario XX.X released expect

Jennifer Piepszak

for saying the So scenario. adverse extreme we're by reserved not I'll start

was, was So, portfolio very, is for case, the anything if all, in but extreme the releases change And quarters, quarter are much have in of our but exposure try delivers and something then we almost base worse the reserve base exclusively heavy put economy how reserved on you related we grand for outlook. the because very the And to the the than or us and to to tell will to when. runoff scheme in base this adverse from worse difficult you small do with the are changes, not it see coming scenario. reserved than we scenarios of are the case that not and case, first things weight release very

Andrew Lim

the like the make what I between you've your going of an And mean surely, can case reserves guess, you if like … you assume estimate did forward. difference I it's – you are got base

Jamie Dimon

something already – the happens, case probably said I've Fed of the if reserve. like base $XX billion there's that base case

Andrew Lim

reserved? billion $XX over

Jamie Dimon

Over reserved, happens. that if

Andrew Lim

[Indiscernible]

Jamie Dimon

No, no. $XX reserved. over billion

Andrew Lim

it. Got Understood.

Jennifer Piepszak

were remember mentioned earlier, I CECL. to capital And there to it it's modifications that important just

reserves about half … as in that ends of because only you release capital, So, your up

Andrew Lim

Yes, of course.

Jennifer Piepszak

Yes.

Andrew Lim

risk-weighted earnings, it. then Got had but a had there CETX for color I'm moving Thanks you've and near Obviously, on had pickup wondering And just give assets. X% more quarter. if follow-up your how the question you you pan reduction parts ratio, there the this in out expect on bit you've Understood. that. coming a just strong also could quarters. you a that a to nice in

Jennifer Piepszak

That's RWA largely the on pay was reduction downs. – largely revolver

that So, I pace expect to kind continue. wouldn't of

capital but We earnings, will not so to allowed we're less we RWA on build buy will continue if back reduction. continue to probably bill so stock, to on

Operator

Portales from Our Peabody next of Charles question is Partners.

Charles Peabody

improve at steepening question A I increased has about quarter the a long-end. NII yield your morning. Good than of for time if going every to to year, the curve the rate would a yield rate words, quarter last curve. back look In your single more your sensitivity second the other long-end, at Yes. series to sensitivity steepened

action my fairly your effect? question adding intended MBS notice that that I been significantly Because to an was portfolio. or So you've is, did residual

Jennifer Piepszak

Yes.

largely supported growth but our So Charles, portfolio. I'm securities in the be, don't that, in to growth answer going the then precisely base, deposit on the assuming, know the has it's to I which

Charles Peabody

quarter mean, Anyway, under I some impairment half second what back my increase, $XXX second around if legacy was of quarter billion. half a you the in? the you second you year, substantial. over asset potential that to had go related a is that, color year this give is charge, billion? $X.X and And sort It's Okay. of a of question can us million class to billion, last it was

Jennifer Piepszak

a a investment took legacy of and it of scheme that we under an the what and billion not things. in remains, on, meaningful So, it's grand half impairment was

Operator

KBW. next of Our Brian from is question Kleinhanzl

Brian Kleinhanzl

Thanks. Okay.

start to you for as been a what Just question maybe of quick customer kind doing you've with, a think about accommodation.

the fee a in a first pandemic, fees quarter, certain level year. happening of been clean it kind of would I quarter what there is from or accommodation quarter on? to accommodation perspective have waivers of But kind the a Is know this number the in As third quarter? of third customer was second still it relates there going

Jennifer Piepszak

it quarter, than the reduction in don't it's we There – the It's second was cash the get is what function probably you mean and the buffers. less – I know. in more Jason – in terms team fees can is and what of detail. actually more of a

Brian Kleinhanzl

Okay. we've there different you highlights can pipelines different basis? building there geographic that world, regions? the And on around then mean negative update but way on a is pipeline, seen of a Thanks. is an around in IB I as the kind COVID give

Jennifer Piepszak

a from M&A There's last product overall, flattish is less we're of a perspective, bit year, a regional story. But to lower. little but

is we're higher, though, Importantly little and covered flattish. quite ECM nicely the overall in a but third quarter, bit

Operator

this time. further no questions we And have at

Jennifer Piepszak

everyone. Thanks, Okay.

Operator

in participating for today's you Thank call.

may disconnect. You now