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JPM JPMorgan Chase & Co.

Participants
Jamie Dimon Chairman and CEO
Jennifer Piepszak Chief Financial Officer
Steven Chubak Wolfe Research
Jim Mitchell Seaport Global Security
John McDonald Autonomous Research
Erika Najarian Bank of America
Betsy Graseck Morgan Stanley
Ken Usdin Jefferies
Glenn Schorr Evercore ISI
Mike Mayo Wells Fargo
Brian Kleinhanzl KBW
Gerard Cassidy RBC Capital Markets
Matt O’Connor Deutsche Bank
Charles Peabody Portales
Andrew Lim Société Générale
Call transcript
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Operator

Please standby.

We are about to begin. Good morning, ladies and gentlemen. Welcome to JPMorgan Chase’s Fourth Quarter 2020 Earnings Call. This call is being recorded.

muted duration be the will lines for of the call. Your

over the now like standby. call Officer, Chairman Jennifer go go Chief will Piepszak, Dimon; presentation. CEO, to JPMorgan Jamie and live the Piepszak. would We Financial I for Please and Chase’s time, At turn please Ms. to ahead. this

Jennifer Piepszak

so us. It’s you I sheet touch is slightly balance at and outlook website on time and Day our for after you, Good everyone. spend our for morning, important few topics on given Investor disclaimer I quarter, that Operator. review this the The ask results, on longer as a available please that will are we Thank the our having to XXXX, top back. presentation as well always as mind not refer we some of are

fourth delivered page income billion on billion on and for approximately of one Included of $X on in these billion, credit XX%. starting revenue EPS $XX.X net results So The $X.XX are a common tangible of the releases. firm equity reserve reported $XX.X return of quarter.

we more get our highlights. on I just Before touch few a detail will on performance, into

year-on-year. was X% saw clients cash our the share and metrics billion to system, another our mix, income primarily the X.X%. fourth two down year-on-year continues corporate pandemic, was and up up grew and on billion customers by $XXX balance XX% billion revenue X% On demonstrate strong our and page balance for record overall and revenue CIB X% approximately partly Net revenue sequentially, $X.X year-on-year interest sheet up more increase resilience $XX a of of We expansion higher Non-interest in quarter. billion of and driven to that revenue quarter-on-quarter. reserve both billion lending. XX% while or remains year-on-year. up saw shortly. XX% lower amount driven as lower investments. had expenses, were deposits, $X.X NII. X%, cover growth benefit $X.X XX% And costs on of revenue of muted X%, or by elevated in markets growth on year-on-year, higher IV in offset of continued client volume far. more in thus were the of Revenue primarily activity AWM production we off, quarter Fed the Expenses growth On to First $X.X will was releases sheet offset rates or results. loan partially evidenced net home higher in year-on-year, and related in quarter by legacy financial $XX.X investment billion was to driven by year-on-year and volatility in detail and face and banking strong investment unprecedented up fees, $X an Credit down by credit million billion, down gains in of continue as our continued strong I markets momentum In we

higher was sheet by higher reported down firm X% The tangible growth driven continued COVID-XX revenue fees, markets income billion and higher of billion XX%. equity on offset NII $X.X legal partly revenue up by billion, as partially EPS related interest on by $XXX Revenue reflecting year-on-year. common $X.XX bill $X.X and was record delivered $XX.X three. up net offs or page up impacts balance a was well as year-on-year, revenue of were net and and on revenue charge billion on on results and home $XX.X net nearly return $XX.X as due billion X% and of were rates, non-interest or investments, higher income year costs net and reserve billion of expenses, full that billion or offset And credit production expenses. to lower down the a were $XX.X lending. structural lower the year-on-year, of to Turning Expenses billion, markets IV XX% of $X.X X% volume of and

improvement on we We Lending. reserves of billion with continued access reserve due capital to to liquidity. expiring released released Home expectations remain especially improving nearly benefits. turning in we coming to run-off. page macroeconomic of and and HPI pre-pandemic we and scenarios near-term, from And and Wholesale, cautious ability Now to with consumers $X still on Wholesale portfolio across markets to to the clients the in a number four. times lesser our released potential payment and levels quarter $XXX about reserves we approximately billion In primarily this as lending, Home unemployed the million of Card, flat Starting extent held two $X shock

they reserves base meaningful current were forward, until remain at We and above And we for billion in relatively billion we down increases looking approximately our uncertain, $X at low portfolios. across charge-offs on could be even still later. so downside second half near-term recent with the and the the year-on-year weighted quarter, it with about XXXX $XXX don’t to remain case. and stimulus, touch of still net heavily charge-offs can million nearly $XX the quite expect any outlook the to are scenarios we And our

page to five. Turning

in see with we more The left on update terms can have XX% quarter exited current. our $XX of accounts our and that relief, customers. from loans seeing deferral vast you an in our of evidence largely last resilience of here customers And further our the customer billion than what’s what included of in of remain assistance trends billion are is the to programs portfolio. and in have majority We are mortgage similar and own $XX of service

RWA. capital higher and Turning offset with to on a earnings XX.X% balance strong the six. versus page flat prior by sheet quarter $X.X ratio generation We the and CETX ended of of on quarter dividends largely billion

press the first our in in buybacks to to month, up $X.X billion authorized authorized we of our $X.XX capacity our dividend. quarter stated paying we has plan release repurchases Fed Board resume the after and last As share

ratio page, and the the order the the is included for LCR we The have liquidity loan at balance is firm coverage You a liquidity sheets. the outpaced here believe understand of XXX%, firm important to we in the together LCR the growth can better on deposit healthy at profile bank, which both reflecting look extraordinary however of has our XXX%, to meaningfully bank demand. is that see

of Deposit market and Now assets debit businesses, pulling quarter Card sales of year-on-year, Consumer growth relationships. sales XX% strong of driven up were reflecting growth which by Business loans. In ROI balances higher page lending, originations both lean down deposit $XXX earlier inflows sales performance. let’s combined down X% production new strong. to remained up in by billion XX% driven deepen the card down year-on-year, back credit was Home and down and X% run-off were lower XX% Community remain Lending billion Loans Home largely due due quarter-on-quarter spends, $X.X X% On Banking fourth net after investment down volume X% of by NII Revenue compression but In largely credit our an everyday lower production to margin driven and overall Home by acquire Client Card retail Banking, largely PPP income on offset the starting correspondent & with the and up year-on-year Lending reported spend, seven. debit billion over were which in and and quarter, as and X% to were channel reflected was was CCB margins elevated on both and into year-on-year balances, XX% go down driven on we $XX.X XX%. by year. year-on-year by spend primary to was TV. with net lower the as year-on-year, customers up Total revenue. as up we and deposit continue offset portfolio

For accelerate. the volume loan franchise, to both continues and XXXX. across origination were $XXX year, billion, highest And consumer year-on-year. billion since engagement up In the digital nearly lease $XX billion was including auto, $XX originations, the originations of XX% total

million are billion digitally with by of a credit in million. than Business XX%, of Home customers active down were tripled were two-thirds of Our My Home overall, digitally and completed Chase Lending the applications customers $XXX credit is releases $XX check deposit percentage in Lending which by XX% of at than cards first higher quarter. offset points XX% more higher million all $X than and offs driven since both $XXX of Home nearly XX has that our consumer Banking net using Cards in of charge a nearly of And largely ago. -- for use net XX% our ago. benefit deposits, year-on-year Expenses for year a reserve X% Over year

of we records IV has Bank year full to of year. Now category billion The for income turning and billion of XX% fourth the share reported highest we almost that an billion XX% $X.X had quarter for decade. an page and nature its the $XX.X in $XX quarter this XX% extraordinary ROI Banking, the the of of in for and grew and of Investment year Corporate every both eight. CIB up full for meant fees the ROI to on on the In level a revenue Investment on & revenue year. net were

driven one follow and revenue maintained the in Banking to up driven In large and in sequentially. Debt continued up driven transactions. up up For fact by year-on-year strengthen in were fees underwriting In quarter’s market well volumes number X% The this the performances primarily of ups issuance we pre-COVID momentum IPOs. were year-on-year, driven XX% we several leveraged was Investment were DECM M&A M&A. underwriting year-on-year, overall. at activity by The was our finance up the by fees equity continued by the and of market, strong quarter, billion strong exceeded and as performance and $X.X as quarter closing our advisory in performance equity year-on-year XX% levels. XX% rank announced XX%

up IV robust. and we overall pipeline modestly the fees remains first be forward, expect Looking the quarter for to

confidence We COVID. continue, momentum improves course of expected in dependent expect M&A is to capital overall successful equity to on remain containment CEO on the active markets a and

and particularly as revenue XX% up and XX% year. Moving environment emerging credit throughout year-on-year, activity favorable transactions. derivatives a flow by in well was trading client businesses, markets, spread cash fourth and last Fixed across activity products, up strong total to by up as a year-on-year, was markets, currencies XX% both income quarter Equities $X.X was quarter the year-on-year episodic driven record billion, good across and trading March client equity commodities. in driven against and

year X% this seen obviously the services it’s $X.X And X% in too and $X.X were but the of rates we by early year-on-year, year, the legal remain year the down will strong payments primarily the the particularly headwinds billion security almost forward, year-on-year. services of markets prior January, predict XXXX. remaining billion given reflecting down quarters of down performance for to since revenue expenses. and of full billion be lower the deposit compared to by lower we X% in revenue reclassification have quarter challenging in was and active merchant of driven to of growth. expect entirely reporting full extraordinary Expenses and compensation a $X.X On from quarter. Looking first the was start the basis, full robust were offset comparisons the year, markets performance Wholesale

of deposit billion Banking. believe with income of established billion year up Now remain Banking the lending of we year-on-year, $X.X revenue, were partially balances, CRE by sequentially. and from investment here. X% C&I were were full investments also liquidity $X.X surpassing XX%. as year-on-year. rates upside was year-on-year. XX% ROI were reported to and Banking Banking prepayment and up balances Commercial XX% markets record loans X% banking nine. net revolver in in there’s nearing and was Commercial at recovery, for previously clients Investment bank up elevated. record and million $XXX CTL down lows given to with go on an access of $X quarter-on-quarter revenue down loans up activity Revenue million both capital $XXX gross revenue. billion of target but utilization continued X% long-term X% as on Average page were Records offset year-on-year And year-on-year lower lower our X% client of higher finishing Deposits and our was Estate billion $X billion $XXX on continued Expenses Real flat higher down loans XX% let’s

Finally, benefit were credit net driven of releases. billion cards by a $X.X reserve

Management Now on on to Asset page & XX. Wealth

of of income XX%. income ROI margin with margin pretax of and with net generated Management the for reported ROI $X net AWM And and $XXX record Wealth pretax & Asset XX%. million of billion year,

the and billion loan $X.X management primarily of have year-on-year, legal been up billion on partially as higher balances XX% related deposit year-on-year, well matters fees, were volume was to as higher excluding related quarter, expenses. were revenue announced. But due compression. the previously and as of expenses expenses Expenses and $X.X by and year-on-year For margin of deposit XX% growth performance would revenue up to X% resolution this, offset

AUM and respectively, higher long-term as by up continue $X.X net client well billion up liquidity long-term And for clients of finally, $XXX trillion inflows levels. of quarter, billion and all classes of true opportunities. the market both the both as liquidity, for trillion, inflows the XX% for well. and asset XX% net year-on-year billion and up billion $XX and For $X.X were liquidity into investment year-on-year, and XX%, of net year outflows XX% this and positive full the driven year. channels, we to inflows net regions In $XX as in deposits across as quarter were saw the assets loans their was overall increase for full was of were $XX products,

reported Now Net flat the down rates, approximately XX. on loss Corporate faster on Corporate million year-on-year. million. of prepaid mortgage $XXX million interest was back largely deployment by net as on the year-on-year Declines of approximately $XXX was income equity on deposit $XXX legacy net relatively $XXX this million of as Revenue of limited $XXX offset growth. securities, in impact page loss lower were net of gains the including roughly well investments. income of as interest on several were quarter And opportunities on expensive continued million well. flat a

Now few will for our to next shifting on gears, cover over page I XXXX, the starting I which with NII will outlook XX. pages, turn

see weeks. latest this is the based page, over we reflects can on be the seen billion $XX.X expect we to the As curve you on few around NII have which the yield steepening XXXX and in past insights,

that important takes growth it’s see to markets we to than dependent. largely in But in rates truly can benefits offset to continued of steeper expect impacts markets from growth also is to remind and NII CIB You curve. low it just note yield the in higher highly more do and component NII. XXXX a a be the able NIR deposit I loan realize the will of that is increase you offset this market that

in the And But least billion are fourth as And there code all today. QX zip high, ‘XX at growth, continues so they these as up when of rates pick in Lending. to higher Wholesale, AWM it second half relates of growth headwinds we balances NII, in to to estimate Corporate in significant loan Card loan and is see and NII are payment particularly and significantly were in time expect while be our that’s normalize exit there than Home the $XX near-term should be Therefore, prepayments the do in cash some Cards. our opportunities expect the we elevated year, are rate. reasonable rates notably, or XXXX quarter a more of at

included to also have NII outlook. list, right on this the risks impactful and page this exhaustive of be the could some the that opportunities, isn’t side most drivers an year’s and but We are obviously

XX. page on expenses to turning Now

based expenses expenses year-over-year can on FX, due volume have in as Then last well we mentioned billion, on it’s taking to billion, I the from the investments, page. as which recent next revenue impact expect to $XX Jamie versus and to cxLoyalty. due our XXXX As impact number $XX expect our month, be of our the the increase that to you and the of at of we of growth, work, on cover of both guidance look around expenses a related higher which expense acquisition the detail prior in more do revenue line, offsets primarily largely up and will latest see

coming efficiencies represent fixed is largely it of cost that our expenses non-U.S. changes extent takes decrease category topline. million. in a of base. corresponding there. the with puts of see obviously each million, $XXX in can of dollar here. structural partially revenue there slightly includes you we remember our up by realizing full note is approximately down, a doesn’t efficiencies this volume our changes market come cost to what realization expenses. the the important related while net any with and reflecting impact in some of structural, on reduction productivity, dependent, It’s our And And continued are we are is and offset that expect to it do $XXX Our but FX That’s Notably,

more For tools are cost and serve. example, to as becoming our customers see self digital to reducing our productive software more our serve use engineers we we are

take Moving our to at closer page XX look a to investment spend.

two that $XX around past XXXX. we the years, Over has billion in been to to nearly our investment $XX.X increase billion spend and expect

we across capabilities, areas and investing the customer’s strengthen and which technology Board, You that Starting this represents franchise client improve major to spend meet tech investment needs, as of to we consistently and technology, drive our infrastructure, the that our for of see half overall growth. digital our the have capabilities. customer well our investments strengthen have modernize roughly experience, look better on as focus and as highlighted data been revenue fraud cloud detection and the our are page on years, with bottom the has these continued improve can we in

to spend expect in non-tech to CCB pre-COVID down being largely investments, levels after year XXXX. this marketing return Moving to we

This not as businesses. well our hiring our across U.S., distribution but includes expanding to advisors continue We footprint. as in the and of internationally, physical only invest our in also capabilities all bankers

new all our expenses Path continuing businesses. is real acquisition for opened were to far to as expect mid-XXXX, estate investments fairly and to XXX years page and as related past bucket having minority billion includes And the supporting in across against and be promoting to These other expanding expenses been our is in markets everything our a our in various XX housing, which branch out is plan including Jamie related XXXX stable clapping. our plans contiguous else, homeownership We the states the communities for other XXX and increase $XX by expansion commitment branches largely underserved of then two cxLoyalty. catch execute so all to the the on affordable and businesses, of well owned Forward, have

So, in continue to believe that cycles outperform environment. the regardless we position on summary, the you through can we see to it’s us invest these well basis investments a relative and of that

Now I on and related a XX. balance sheet capital will few page to turn topics, starting

next new size insight to putting capital is expansion on to I’d the bank and business the you impact system likely monetary few how creating provide challenges Over recent in targets. pressure growth this some significant is decisions, based which sheets. specifically, requirements, More slides, capital balance expansion corresponding for including financial is like on

In PPP, the you the on bank risky. less ratio current anything demand in is has QE, you is We perspective, In see that year. this but more to as trillion a response persist? which U.S. key a for the expansion, bank can the we the domestic you crisis, to without before Fed’s across From which kept in has $X has happened liquid in to resulted this and that this growth and of larger come are COVID important the meaningful banks. will capital bigger X pause is expansion What’s unlike years the see loan significantly faster has question page. on resulted a and has On loan start note much pace commercial several deposit with ask what the sheets Fed modest balance This to the expanded, sheet balance seen have that can experienced have reductions. beyond to unwind QE QE deposit chart, will long the before. how

take base even So case and unwind, pre-COVID levels. of of is the years tapering, to last the case Fed to base if many course follows which return immediately the the signaled will it not

but agree Of remain that time. risen, unwind course, think elevated speed the some can has I all for sheets bank will we balance

top to talking SLR, page GSIB, and let’s forward. how now go typically Two a impact focus. are which we for about but that see talk also overall and expansion XX are capital which Now going something about, of given time mind factors the been us is long in will we for this not system have

see securities GSIB requirements you holdings. the of Fed here On historical task the with base of graph, the trends overlaid are and the SLR what can

can balance see gold of calibration during You lower. sheet plating, original notably these Fed’s rules, included that the the which was significant

we be backstop With as the to shifting persist treasury GSIB for of The the Fed’s period. and the at will and made return which and are adjustment permanent minimum SLR as likely pressure binding an sheet, Fed these in This balance the dynamics recent expires to after for a upward impact well extended growth from cash a will pace SLR seeing of XXt. capital requirements, should March measures, increases either a temporary relief extended. or be

GDP exclusions, Then dialogue shortcoming time also With account the over see the a possible index how not to on public you as these of for a remains ordinary the one. as to has backstop and measure by been there a was a Fed to cited their this these need proxy expansion score GSIB, economic about binding can framework.

the you can of still but applies. the the was medium For time, and proxy system score large future for XXXX, between as over the best recent over which overall outlined relative the profile, medium-sized proofing is inception and most see the course certainly and but system lower impacted a it importantly, principle should reflect GDP and expansion, therefore, more designed banks not large with GSIB By an small, flatter measure alike. expansion. resulting page, on GSIB adjustments the expansion, system banks, GSIB clearly

satisfying not in While to costless us which is safety certainly leverage bank mind that for promote why we of areas, and soundness, are requirements is top prudent two and XXXX. these heightened GSIB requirements recognize these capital

Now let’s marginal the this look XX. impact page at on on deposits of

In more have see demand. blocks discussed, required already marginal they are and there to of building we addition what rates full and the picture deposit economics, to interest are two loan

experienced lower which practically of marginal interest can to NIM lower here zero, of issue have the a an have and just combination chart, both or deposits for and is We GSIBs you demand, the loan see banks, rates which on all not JPMorgan. reduced this

what larger becomes these that is in a environment. pass next. issue the However, additional which negative today’s we with as critical strongly specific may equity, at is size-based We when an therefore, question serious appropriate the want in ROI of higher decision. to certainly on SLR we retain them the happen new ultra-low from and this do retain The required be urgency, banks will deposit or that shy binding, which capital to something look deposits, the sense redirecting we capital elsewhere away or to be simply issue a could marginal system business calibrations and we this could soon we debt wouldn’t can makes encourage rate is, proposition ultimately environment. some of cost, in taking And facing what key

made evidence With recalibration have spoken GSIB of But as also this safer that consequences said, the is But and the to whole believe we all we coherence are close framework as capital, are adjustments, risking of banking clear, we target seeing we system CETX few levels. lack XXXX. out here’s where an through a has I the over Before going fixes how things on SLR namely experienced forward. we in and thinking about unintended can All a exclusions time. the extension addressed about be be simple of the

While recent remains test optimization the can to target. reduction our our SCB pressure resubmission. we an XX% efforts need implied optimization and CETX since continued the SCB some manage showed XX-basis-point for and stress to have offset recalibration to allowing high, The is GSIB us provide

of dependent. early specific this the later course At year, provide lower hopeful So SLR. scenario point, we are too this impact for it’s that’s of color SCB to on

can’t clearly or the managing as the to obviously to and important these key absence over balance center I the we XX% our preferred and adjustments are target we and it’s issue mentioned. CETX of may think emphasize have So just about targets in front enough measures, in note capital We medium-term. the these any factors near- additional messages sheet to and that carry just

we on a financial additional we our conclude, as well on in our remain we provide strategic to their we and the slides the year’s that latest last before focus, know you an appendix and have Now about included few themes and Investor at businesses give highlights as update still talked Day to The initiatives progress continue and outlook. them. execute make against performance,

employees earnings relentlessly customers, on communities. challenging benefits up, our while year. power to wrap focused company, it showcased resulting So an incredibly supporting our diversification also our was But XXXX the the clients of our and and of and scale,

medium remain and to feel we be near-term risks do they and While factors significant, downside the help look the ahead more recovery the optimistic us term. could in longer as recent several in

Operator, for open So with the that, line Q&A. please

Operator

the of Steven line Wolfe Your with from comes Research. Certainly. first [Operator question Chubak Instructions]

Steven Chubak

New morning, Hi. Good morning, and Jamie. Good Happy Year. Jen

Jennifer Piepszak

Steve. New Happy Year,

Jamie Dimon

you. Thank

Steven Chubak

So I this overall outlook. in at around drive want ‘XX, trajectory NII especially the for excess least separately, past could and are further month? guide ‘XX, to The XXXX the on deployment rather the NII balances Card additional expectations deepening? reiterated updated in year the $XX growth a regarding the you liquidity Jamie, start curves are consumer given for the just And we had assumptions what off of for question healthy what of of recent And your you implies assuming guide saw deleveraging? light with some billion, stimulus, step versus which your of last up

Jennifer Piepszak

Sure.

excess So start liquidity. I will with

is think theme being the I are but So patient. there we opportunistic

the curve, it’s those the just recent small as yield the in of we not balance it’s seen that scheme think could sheet, about grand what we you about the of moves things, NII, about in managing about So think course, as have capital. be moves. And

adding in sell at risk a these is so duration And levels there further off. in

be that in very we So to the $XX to will the quarter. we we seen continue and have being are billion fourth But add you been and have optimistic, did will patient. we portfolio

we the in liquidity. what outlook And very are on that’s So the deploying assuming excess balanced is a then… view

Jamie Dimon

implied terms. the In

Jennifer Piepszak

But And what implied of is in XXXX the opportunity the which consumers deleverage, in half use -- remain of if so we they on as risk in line. quite as but extraordinary very we an course, the seeing a current portfolio, back certainly credit this rates on then payment there normalize Yeah. the us expecting in to for elevated. is is spend In the terms it to it offset of is recovers, balances, are Yeah. are healthy current that terms.

So on that’s opportunity an could the because a plus/minus everything page everything and in be risk. that why listed

Steven Chubak

Fair GSIB on highlighting interesting just ask on I for And of both up, Okay. follow the wanted scores. really impact my the QE and capital, the leverage are enough. to ratio slides

have and recalibrate the critical some been You on coefficients GSIB time. surcharges need for these to

though. feels waiting for progress really haven’t did there. of seen We like Kind much

ensure you as actions continues? to And actions? contemplate maybe think account the need sheet constrained minimum to of revenue slow we What the Fed driven those as not to balance growth. I QE are you mitigating to this any for can recalibrate is ratios take capital mitigating attrition leverage deposit part growth

Jennifer Piepszak

Sure.

I So we in that will if take with start turn. GSIB,

we do we starting think GSIB, with that the in as opportunity have So I said, SCB.

Fed on But the models. think and dependent have we do been on opportunity have scenario we that that’s work based doing. based we there course, the Of

to it to the get be current very will So for back expansion. X.X% us difficult with

as manage not are gives as us time expecting I effective until to the as mentioned, SCB, that’s X% you to offset. so an remain But So we bucket. in XXXX, early know, that

through leverage made haven’t we said, the about to think preferred it depend we can this we stocks. our preferred. for returns, would about. decision issues, we as back because But think us think prices, have And On I buy to cure about is economic issuing -- it where that on critical yet, as you a the capital of issuing value as stock decision

think for us lot a about couple there’s the of So next to months. over

Jamie Dimon

is international the we If to because about standard, GSIB important. supposed would economy our the they G-SIFI adjust it’s of G-SIFI before we you not been on Because talking be growth said very X%, were X%. have the the rest were And banking credit goes and the effectively the and smaller and banks of et cetera. growing, international, non-banks of itself getting go banking system. the Chinese the elsewhere, the system as shrinking are mortgages the to private Because size

It politicized and in should weighted and and detailed no for of these marketable same we with SLR. now. I live much to in mean, bank disadvantage assets bank, to have just securities overseas. we the it’s a But for because so it on, Probably run, can adjustments to these gross we it, reached not and be So no that numbers recalibrated happen? G-SIFI with to this expect not be lifetimes, Americans, G-SIFI has do trillion needs liquid our profitability our to We kind of and long so pointed balance as competitors good on which shockingly it diversification of it. $X.X sheet, measurements risk a measures very made. no it, X. to out

Operator

Your from with the of Jim next Global question Seaport Security. Mitchell line comes

Jennifer Piepszak

Jim. Hi,

Jim Mitchell

Sorry.

Hi. Sorry.

there. just You the Sorry, growth? a loan nice about second Wholesale in mute I for talking improvement Maybe saw a side. was on pretty

You on the out opportunities be of in coming some acquisition Wholesale sort to mostly What’s some It of talked CIB. driving of the finance? ‘XX. seems the that Is about side? improvement

Jennifer Piepszak

time. going half back is be acquisition on levels sheets XXXX. it of C&I think as I financing of the C&I. like -- but half in we balance challenging historic When and the it’s and But the say, corporate C&I, opportunity opportunity some BAU, of some to may acquisition Wholesale financing outside will would be take side. are there of XXXX cash I feels at that’s so returning back on the said, in That in we Yeah. to I

Jim Mitchell

Okay. don’t And really CIB. mention Fair your enough. for expense then the on of billion, you the all at maybe any $XX assumptions

any in we $XX that positive? are, in kind would a everyone building Is some there compensation are -- think comps You year as that that is XXXX we fees or you had IV markets assumes, in and of lower expense billion revenue based are if -- XXXX, record potential lower. maybe a

Jennifer Piepszak

volume be So just we by and It revenue the revenue that related elsewhere. happens growth related, than and more in Jim. offset capture volume to

Jamie Dimon

literally. billion, around that. would the every are We I billion. I find and mean, $XX clients like so help $XX year world just point investments, we to find $X love don’t seeking make that promises, I commitments out do or stuff of more more to to billion the

more. et So capital. that’s use kind But of some the It more of we more the opening to find cetera. possible our found current branches of best some to technology forecast. And cxLoyalty be fortunately, I’d like would highest we and are do, including and building, our and

Operator

Autonomous next Your comes McDonald from line John the question Research. with of

Jennifer Piepszak

Hi, John.

John McDonald

Jen. Hi,

and going a don’t year for you year-to-year, overtime to of pick in seems outlook interest like XXs ‘XX. necessarily is mid ratio the seem kind just it expenses, target. efficiency I versus Given a but ‘XX few points the efficiency XXX it this And manage basis know net income you to up have

time rails positive in of for up discipline operating put of terms managing kind you an expense how have efficiency Just to wondering yourself over corridor? guard in and leverage

Jennifer Piepszak

Sure.

we to then discipline, changed and you ratio. we will or will that so is relates last important year at are a still a environment I I up expense that environment, and and has leverage otherwise manage process. XX% in rate be gave environment. any we about quarter is normalized efficiency don’t say saying ratio So Day a haven’t to us absolutely at year right that had Investor operating bottoms then, for the normalized should by any us. achievable in a as it in anything And And it structurally efficiency even normalized but very start

and slide out people this efficiencies. of to do our that, we call I representation volume company, and is more around looking or a expense that the necessarily why isn’t get an basically which on is efficient accountable investment just are structural so all of that everything holding And is everywhere related, to revenue

and operating doubt. is So time, no leverage we and we way in the the believe the everywhere company, do of importance through run it’s the discipline

John McDonald

both a markets down NII markets. billion from incremental markets ‘XX up, then the follow true revenues explain expected that year-over-year? $X is -- Can NII maybe true? on be be as ‘XX if in Okay. CIB Just they And Can that? walk, you have versus got a

Jennifer Piepszak

absolutely true. can It be Yes.

true. accounting in I particularly NII mean, markets non-interest construct. of our revenue. most businesses, we them is, But It markets versus don’t is So is an run

can is So, In markets yes, is you that the about think possible. NII, business, liability sensitive.

So you are NII in benefit that necessarily going anything performance. lower imply to doesn’t the overall about of the rates see

Jamie Dimon

positive the goes numbers up, are We absolute down the carry profit same. the number goes and have carry, -- trading

Operator

with comes Bank Your America. Najarian from next question of Erika

Jennifer Piepszak

Erika. Hi,

Erika Najarian

morning. is, the that X.XX% see losses opening to we trajectory the think actually discussions question you for would The I we the Good from Jen, My that may built in more Cards portfolio? have the Card that are earlier, expecting, comments on all relative given government spike about bridge on like Hi. of XXXX. the releasing strong first enough feel need to see is that outlook and was not what’s rate is Hi. Card you Card in with what net charge-off eye losses. a your your reserves comfortable do been having investors to certainly happened in And

Jennifer Piepszak

Sure.

this strong that that in the the strong is, crisis, bridge the bridge it’s does that remains is interesting enough. question up enough. So The been you like long feel enough. at bridge this point still has It being brought

get to And next so, three feel six the better while being recent we that bridge pass, enough. we us the months. long makes about But stimulus just months through had have to

this at think started, we been like true rollout. I the this have that, vaccine obviously, feels it it is but So point, since given crisis saying particularly

low consumer to pre-COVID still confidence is levels. So, relative

That’s You on seeing side. converse the side, Wholesale that we true with to compare are consumer can -- that confidence is up. not the

shops not going long only important you pick see is strong next possibility for but received. to as to -- on need forbearance enough, in it think And assess months a that whether so consumer relief a for it There’s six enough to could it some student us owed sentiment six be programs, months benefits three also do tax bit. critically or about. next is to the and months consumer we payment up loan, be is things that the hit to whether months There or taxes are three

Jamie Dimon

and look prime. folks their very for just income, more are lose subprime at in add, category prices would And They a our you a up. prime. if the not housing different And more lot I jobs. lot the have did savings, it’s portfolio, Right. mostly prime

news the actually good. rather there So is

of we now just have On already did Even checks all which the and lower been quartiles million it’s the did the $XX them, we when opposite. stimulus about processed.

Jennifer Piepszak

billion. $XX

Jamie Dimon

accounts, the they they Billion need folks there’s $XX accounts where for and the XX The million. higher down got and approximately just the million are quite bottom. in $XX folks they had $X,XXX But $X,XXX, don’t who much. their obviously the in needed. billion, $XX as end, coming obviously

somehow So -- that it’s it’s go in we dramatic positive expected happen some way. but to doesn’t up, possible

Erika Najarian

question Got it. is you. And second Jamie, for my

Jamie Dimon

I’d important. point say, very are this we making

Erika Najarian

Yes.

Jamie Dimon

loss because not don’t do upon recurring ink want they different doing It’s we to low [ph] more a want if to billion, consider We we don’t real just It’s that, Card But lots on time. you We much do here but But not $XX consider profit. took are paper. Obviously, outlooks, have better. we or we across. We earnings. taking show cheering reserves in cheering like calculations. down don’t going based be are are income. of down over next sitting optimistic be quarter, we that reserves consider it we to about lower

change think little differently look I the you now, accounting all particularly a at should bit with in rules.

Erika Najarian

Yeah.

banks is in that AWM. to there? and that. what my thoughts think we clear What consider a payments, the be thought your looking maybe seems your been presentation thinking of I on given part that’s base last investors more are were Jennifer’s had by that you vulnerable a investor investors with is, potentially get and lot to having question competitors? investors not thoughts whether more technology you you, are enhance interesting tempered has that process guess, recently deal wanted I wondering that, And to them the there, your discussion own I been appreciate your to larger scale would inorganically capital, was -- Day, or but I that second that on to for in Investor year’s your have And Jamie your the in last is it

Jamie Dimon

our capital we okay. Again, have [inaudible], mean, I --

We have use it. we so much cannot capital

think at of representative is look $XX advanced reserves, capital happened to $X after of $XX XX.X% billion of a billion more year, -- XX.X%. I mean, went by of of be trillion risks you That’s trillion pretax loans, I reserved, dividend. billion at $XX doing what -- trillion $XX billion $XX this real pre-provision are And if you from will If our it earning, or year. look $XX we XX.X%.

every So lot most said management, and branches important grow every we doing of we organically, very we put opening one payments, that effort we The thing business accounts, in we are a time good says to and single in that to invest. shape and payments.

that, manage neat do management, I XX way was be we is any special merchant thing, are will a But area organically which good was an to but for asset We money, open card, tax thing, cxLoyalty and think it just it’s quite shouldn’t [inaudible] services. it’s we Inorganic IP, I for you Chase not where at inorganic between bought card, it don’t agree could just we with growing are neat too. be efficiently. and excuse debit credit Chase, not not

And build to ourselves or it. buy it are so going we

minded. open let are good ideas have Anyone for We you us, us know.

buying our at wherewithal, look it. we I invest always also money way the we but to intelligently. will are for looking more have a We thought we said, Like of

a got have assets. set tremendous of We

payments, tremendous consumer bunch a of debt have competitors, also in of areas. land a particularly We now and other

Google saw Pay. you So

Wal-mart to in our that is we and have how try competition, it. expanding. be that bit a But mind more is And we prepared run is business. You our and like saw for spend we going to deeply on to we really time believe

Operator

with Betsy question Morgan next is Graseck Your Stanley. from

Jennifer Piepszak

Betsy. Hi,

Betsy Graseck

thought good. because Hi. your Good I space there and in your program your loyalty consumer set on and morning. was Jamie space quite cxLoyalty, capability a question payment facing

and non-Card this going deal? what wondering just was part am so of you there expectation was the an is the leveraging of what into rationale was I So business, that that that portions to be are your

Jennifer Piepszak

one. take So, that Betsy, will I

tech -- excited this with and platform one any this about matters. really So we really are scale

you technology cxLoyalty’s innovative Chase customers our combining scale is for our win are a today point and a used out right our production be cxLoyalty’s UR point with suppliers. will existing predominantly portal. clients existing for that So as And but platform, but then to not only

travel, share off So of greater customer our capture is there’s both a on $XXX opportunity billion and us. to spend which on a huge

addition the capturing have to to value full travel. we really turn customers on the it also our in a book economic for platform, So the opportunity place of an to existing redemptions into great

Betsy Graseck

space Card But on relationship your Okay. as the opposed still focused moving consumers? to other of into with parts

Jamie Dimon

thing consumer. consumer, It’s this was

Betsy Graseck

Okay.

Jennifer Piepszak

only. has It Yeah… [inaudible]. Card be to no Has

Jamie Dimon

number, mentioned Jen, more that. through like something Cards, the our like XX% goes than of travel expense

give a to what we to want we to when so offer far better our customers And own to it experience comes them travel.

why or try You to that are double a triple right, does But ultimate good overtime you job. would it? reward always

Jennifer Piepszak

can think do existing for we better job suppliers. and we clients And their a

Chase about just customers. be So won’t it

Jamie Dimon

Exactly.

Betsy Graseck

a I the been in data after of the Okay. up intelligence for then just on around have the to budget And somewhat this page comment and year mean, Again, year-on-year. you increasing, And being I while. dig know capabilities. comes into made a leader follow the technology artificial you stable this cybersecurity just analytics, question a wanted on

in are footprint what into? question you of doing expansion you the European how the into? you are is expanding U.K. the So whitespace -- the that and a moving to digital some are can of sense important And where’s this as give that us some you that is for geographically

Jamie Dimon

all around all, When efficient. it our real. build data, get own going the not are all is whatever these we to data et to a to machine all cetera, banks is the but stuff that The mentioned, cloud are is world, other But learning cost bad, centers they we AI The is effectively to in links, we but we do much a that there, cloud. cloud issue the pretty which data everything They speed The all not to it new do be technology, built public we haste. to you cloud, more for is applications are are held you do these the were with are have brand The have you is security do. going real. lot the where you real. accounts, all doing move base, The trying are going know of better we first private cloud, we and real. and data, takes in we to cyber refactoring can So, real. different learning are data The machine AI -- use and real. was do

external? with don’t on? are what the single it go on analytics meeting adding and it’s It’s moving doing the every internal we But we data So are we business we about cloud, through is we that single every much time and whether spend right business talking to it. it. or AI What is Are single and -- getting every global. is machinery

have get tremendous And of be done it in of in iceberg. it will CIB, from XX times probably a You today, asset XX and are faster. I wealth years the more management, today. being amount doing Commercial spend the AI to anything trading, used literally in Whatever we say than now, Banking would tip prospecting it’s we

Operator

question line with Your the of Ken comes next from Jefferies. Usdin

Jennifer Piepszak

Ken. Hi,

Ken Usdin

there’s you looking through capital you of what’s you to forward external test. to full into how and just more that Thanks. we given capital the Hi. vis-à-vis us have capital, talked of amount your return and in and return question best about in deck comments healthy about a you then mentioned you how usage, still use get and opportunities that you the and And I potential you A walk there? of net income of do usage release, on capital, ask are wanted morning. think regards to billion billion $X.X still press sitting think net that kind that with Good to back the incremental the just $X.X mentioned

Jennifer Piepszak

Sure.

Jamie’s things place, start prefer much our we talking is we which the in to would So back that been buy always to same about do the stocks. when

so quarter, excess profits at we this trailing out billion. the four out point. to and capital the our $X.X significant dividend, When that’s would prefer you to when you that, we by So at as where the or the growth defined we quarters much have acquisitions. organic look get deploy was Having point Fed it of back do first you capacity to said

do the have we under can I to then Fed that we up as the do but end capacity wait back will we quarter. we amount, to are more the says do about full than we $X.X certainly do, the EU obviously, we first billion. to But that what certainly SCB quarter obviously, the see and of go beyond this for is that that we can’t So the the that we hopeful will don’t know framework quarter will first amount, will And think at the buybacks.

Ken Usdin

Okay. Great. Thanks.

Jamie Dimon

from That’s said, If way you done Fed. regards XX% permission the be to been should whatever that’s already can getting manage or that what we your have implied one capital down can with have it the the They eventually day. they do.

Ken Usdin

Yeah. Understood.

Jamie Dimon

to in sense X have that makes we but would that, back use book, is X.X or But buy point dividend and all it much and been or we grow to that, tangible our consistent out point, our X.X, or still capital Another times inorganically. stuff to every stock. X.X, rather like power organically way diminishes earnings

Jennifer Piepszak

makes will alternative sense always remaining back doing us and effective Yeah. to for it. going stock the shareholders I mean, think keep we at our are of relative to look the we buying it if we our return

Ken Usdin

pushes And the of mentioned spend business -- just actually through that us, some a have question Card yield regards wondering I revenue are through, on if pulls Thanks. we segment goes improving just Card the the Yeah. Consistent can with think a you you of Thanks. underneath? expectations have to return improve how uncertainties little Card open. help you with am just just of balances competition that given on with business, said your what and did the just past. spend improving, regards bit. see a and kind your you Yeah, you in much to Chase to true and still

Jennifer Piepszak

Yeah.

So very, competition strong. very remains

of the are down that’s there, a As balances revenue little that’s noise what relates yield, much from. so derived to because bit it it’s and

little there. there’s So bit of a noise

so XXXX middle continue do, back levels Importantly, recover, year, the to to to the second by and we is we in significantly, GDP if expect perhaps, the them of half.

and customers travel relates excited ‘XX shore the to opportunities, to they demand that ‘XX, half there’s come and whether for on whether beyond, it’s of in continue will those it confident ‘XX travel, so ‘XX As are our second or or we travel we are pent-up or about

Jamie Dimon

we the Goldman take other see the new Card expect folks Sachs there that. like more doing seriously very We that who similar a are entrance of of are to bunch and things

Operator

Your next from comes Glenn with question Schorr ISI. Evercore

Jennifer Piepszak

Glenn. Hi,

Glenn Schorr

Hello, there. you. Thank

on most you products not think I am all on? later guys provide So this Commercial evolution where curious is good know the new or footprints. to your fees, on neo But thoughts and it’s your time on, is companies than am big going pay and year mark-to-market -- right no you is want every charge about to things more talking the normal play just you banking-as-a-service with get either Banking curious to to pay I to between or the I Thanks. technology trying now or bigger on big competitive or here something now. that there of I competitive. landscape see, in the buy comment client I much competitive the things Consumer side want and changing pay to that deposits in also more banks maybe business banking am & on models, more But the of even

Jamie Dimon

Yeah.

et But will So can things custody, clients, cetera. do less than FX think cash do providers. it our investment asset for the I banking, are you a Commercial there just in they is lot management we probably think. I credit am -- Bank going to of management, swaps, alternative quit

base more different. And slightly just the be we see to of -- make at the and out, our but and have pay the we kind and of out. early years than always letter clear, products have is better includes have that conscious that but unbelievable I consumer you it one and we bigger and day, you am to banks just foreign client we XX the us. wrote more -- now, simple, pay ourselves, are we better me coming. what financial can years customer be it’s team got I so way, Gordon later it’s the wants, and and I sure when that big here years the banks, deliver saw be or years including thinking to ones that, Chinese to were not And faster biggest ago in and that other expect years basic, just five would these that some conscious. looks it’s and back So a Valley big we out, may and by or to keep capability our five And the pay have Silicon better other quite all again, competitors. strength XX add, also and think products quicker. we goes I points And job I use and is very Chairman’s and just

coming, And all vitamins, so we we exercising our okay? but still are taking and they comfortable, are were

Jennifer Piepszak

because it’s And as up another aware it. yeah, well much, investments are are very our we of going reason

Glenn Schorr

are experience Maybe same and the footprints that what think, lines, Fair you heard you it, the vitamins. use much use you enough. can am of we can the that to lately along how own Keep enhance collecting, about -- you about curious, it franchises have. data taking accelerate I customer haven’t those spoke power client spoken the your I growth. how just

curious people now? how are about fingertips right new data thinking and talk all I this at have on You golden. the am about as you being it your

Jamie Dimon

AI the it tell to some is, AI That’s obviously, data directly of are that. some all doesn’t yes Yes, well. about gets important have going talked mean, related we it of used very how you and if I yes. used data down, and you. is in shut well. I But get

better marketing, it. And -- name a like data protects do clients. have of far Valley our our use there for And that more than a a to lot also do a We some we are lot fraud, in restrictions, But tremendous to in cyber, job ways risk, restrictions still amount Silicon our our use that cyber. you already of stuff we of competitors. clients

Operator

Mike with from Your Wells next question comes Mayo Fargo.

Mike Mayo

queue. Hi. I will ask my question and back the go in

miss I Just, your guess, I Investor Day.

cup talk that. are I expense slides spending have guess, run maybe if We your us run us to your four uncertain. mean, is about capital could over, budget certain, I over returns too.

seems questions this than in past. So more the like there’s year

leverage last pandemic. positive get off year the did during the You

So, yes, spend you ahead the more. have right to earned and go

so there’s just slide think CCB. like I agree. many I looks But will people on most would XX. questions, just still It ask so

by all that. didn’t states XX I You get to mid-XXXX. mentioned really all of going

your -- how you plan? how is by what So with much XX, expanding. game shutting branches that? plan the pandemic, many the you are spending in after you Others time the What’s states branches? and to get been are What’s have

you color just some on too? if can give If hear or call, him could we from that Gordon’s the on

Jamie Dimon

we so back like branches to and that. expand have stuff -- while this the a but we Gordon’s started not,

-- plenty We branches. of closing are are still we

the like opened investments, XX and leads, we like to and today So number, number it’s people stuff XX% X,XXX down, if I we have things But is think like it’s are five or they Card, that. got we closed the very doing, small we consumer, branches, still in the and And world you And open differently deal, still Philadelphia, the in that thing at accounts XX branches. opened of last did JPMorgan the shocking or the quite and Boston, X,XXX -- the made we the of a were the that. the four have in were we states. visit still a branches something conscious expansion branches like what needs need businesses have shape I are we originally, -- and we started we have new business. you we less testing states, But spoke quite that and D.C., years One got but when the XX% well. doing Bank in million years look hub been a branches million people who we new and doing almost branches small day, and And have always well

go we other look the we we to just be waste to of would number the plant want state not flag. through we all That just going size, the to like and kind as Chase in at have that. have know major one people time. stuff of certain know We each the states, So of be already us markets, to and with

the optimistic and because will are will am not we it’s going I strategy and so it competitive. and you that enhance capabilities to And tell off our very other our pay businesses things,

the with have much our think past. shared I we competitors too in

going bit. up kind of So shut myself to a I am little

Jennifer Piepszak

add No. color on numbers. little But, Mike, just a bit I can of the

that So going to we branches up had expansion. were XXX market open in said we new

So XXX far. we have So done

Importantly, in XXXX in we do we XXXX, and XX, are than did going XXX. fewer to

so, or XXXX, XXXX course, by to -- that’s sunset. of we to And going start

year have to ramp they capacity of within now they of So But but gives increase there continue to are without to necessarily that reinvest ramping ‘XX, in tech in lot those XX% the on In down will -- you page investments completed. will XX% an the a that number the numbers we that multiyear going given capacity obviously in is up. us numbers are maybe absolute dollars. any investments or example, see as number the

gives branches that branches think with that do up reinvest. in the add is then been because that dollars on thing otherwise comes and municipal only And So business ability like state and give wouldn’t more to the is able new these we this do. us the to us to I value it have franchise states opening underestimated, extraordinary I’d

about not it’s So just banking. consumer

Jamie Dimon

North lot to do me in. already more Consumer it Banking. it only a chance do been never didn’t But We Dakota. And gives we in the not, North Yeah. credit have believe I or is market, just Dakota, middle which a state card of

like. I the way I or allowed, something Fargo or do Bismarck to where am I like am So my second on

new sitting all formats. can get the Reggie in Investor right just Sun branch restrict we am don’t and will But now, Chambers, Head including of this sure who what at room you. -- he part how have to did we different though which was know. who much looking This is expansion, the you I Okay, of really for Relations, is you Belt, them tell

and not are the have you the world that We to that. changing blind nature digital all

the very while fleet comfortable you completely in et reduce got rapidly, dramatically like can the we size you the have the period, world cetera, that said, five-year So or are the clients. quickly, a changing you cost number got more just the if fleet, of serving we so, fleet, have I of the change can

Mike Mayo

Okay.

states, this did Commercial final were three ago So with kind guess, give few a that. I where year back state, just is of but you say, ago, you, to years or like to XX what every going years context Bank to

Jamie Dimon

years mean, talked way, same by I three ago. Commercial Bank, states about XX We expansion. thing. the

took bought mostly states, are going we do Florida, we the which to So said Atlanta. WaMu, it but years, WaMu we billion in $X California, is

great. we great did Banking $X business One through we the million told like the called year we I -- set we So a exceeded Steve of us like when told I billion guy $XXX why and to $X $XXX why expensive And $X stuff We of that. something billion. for capabilities, We are, it really who target what to we got billion, million and JPMorgan like were right, Investment this like, have bankers, great it teams billion Bank. or $X governor Walker, that. and send close did we billion, him, a doing thought like we that $X reviewed was we the yesterday hitting hit Commercial the Bank I want very deal that. are when case of

new Investment through $X Bank soon. $X.X to going It’s I areas XX% DCM, think out couple the we to Bank now the we expanded network be ECM, and and that Banking, technology did Investment we U.S. other billion. Commercial The rolling into domestic M&A have -- target XX% healthcare, billion. which are a of is

expansions They pay makes They to do. are They sense. So are these right? themselves. really hard They relentless. for are obviously

Mike Mayo

I read to Okay. you. will

Jamie Dimon

retail don’t have see these the quality But a It’s a branches. branches But you will very Commercial have and Bank few you retail without Bank. remember to in it. done Commercial build the very deal branches. it’s that Commercial hard when hard we to And very are judge business Banks

Operator

comes of Kleinhanzl next from with line the KBW. Your question Brian

Jennifer Piepszak

Hi, Brian.

Brian Kleinhanzl

morning. Good Hey.

would there save big But show move related really in thinking doesn’t the it was the to there in didn’t Is the Just I as you a broader coming post-COVID-XX was it your in on this a through a… outlook. this general Is expense thought get XXXX? question workforce be quick beyond opportunity that process expense and context, I the the world, see work-from-home COVID-XX to expense optimization, that there noticed environment. small but guess piece expect from we that, outlook. something to

Jennifer Piepszak

Yes.

Brian Kleinhanzl

…step down expenses.

Jamie Dimon

expenses, say I But for people $XX estate in are $X billion, expenses big going picture to the am billion. there real

Jennifer Piepszak

Yeah.

Jamie Dimon

So, and more be yeah, I do think I -- it’s think a changer. efficient that, can it even don’t but game much than like

Jennifer Piepszak

can’t our we And move footprint quickly that anyway.

So do here that to sure we do make thoughtfully. we really have it time

Jamie Dimon

the is function Jen Florida. moving about finance to But thinking

Jennifer Piepszak

Yes. Hawaii.

Jamie Dimon

Hawaii.

Jennifer Piepszak

right. that’s Hawaii,

Brian Kleinhanzl

the saw of the a revenue but on the hopes maybe just billion international, follow up, then international. still I And additional on

update that’s an tracking give far? how Just so on

Jennifer Piepszak

I didn’t catch Sorry, that.

Jamie Dimon

The billion what?

Brian Kleinhanzl

international that you the for? revenue looking were On expansion

Jamie Dimon

effort that covering and international companies is expanding we can an China and expense expansion we just right we best and here we asset Asia. business XX% I something -- up so out had like overseas and now. because we Okay. and globally mostly as stuff we about quite with I We doing legal point been or should it. services do that we it spoke -- think, as that. that, The Investment add added to mean, Bank as not cover didn’t we were and I already Commercial are and firstly, happy everywhere management It’s like bankers that started compliance have the ever in it’s like was and products best with and clients Banks fine. adding year the

in Asia growing be and is fastest of the the still one world. So markets will

sure to we and right. kind make that country-by-country of -- that’s get our So

Operator

Capital question with Markets. comes Gerard next Your RBC Cassidy from

Jennifer Piepszak

Gerard. Hi,

Gerard Cassidy

political and number us the administration from with heads the this regulatory Consumer some guys been a different FCC party Hi, in our the be Jennifer. Can Hi, Jamie. Protection Bureau. obviously, Can to may you guys of the year, including change give Washington the in thinking about body you Senate you regulatory standpoint controlling going are a what color change and there’s share with now? what replaced us, a are

Jamie Dimon

Yeah.

Our focus same. always the is

million XX U.S. got clients. We have

around We X,XXX the world. have investment got clients

We have all communities, schools, to we what do. We hospitals run to hospitals. our want regulators. That’s obviously, cities, clients, financed satisfy each got we serve -- $XXX in And company this states, of billion year. we

So I be do regulators. of there set a expect that, will new

of set new a demands. have will We

be of want Some progress do climate to we more for to the like agree in world. that. want amount racial out We with. to We job We the equality disadvantage. a want rolled an better enormous green. help We and things in

but yeah, tougher. will That’s life life. be around they So, It’s world. the

are -- of are we which cetera. new the to a et going to We have trying in do satisfy regulators, bunch ECB, whole we to

and our want be of president it don’t that kind so And much fine. the successful. -- need boat And competitively, I everyone’s same in and be so, the to it’s change new we to life will

Gerard Cassidy

Can expansion, could getting expansion deposits of SLR your you branch this following benefit Jennifer, to with from over already have as this issue? you and the extension simultaneously, relief if you you with deposits U.S. want all guys deck, can is save slide is us, XX and the get are on about is with of then up, the share about issue states? states branch talked How And these XX yeah, you pointed going wrestling the the marginal you talked because managed have and out, page but the that And that SLR? XX months, XX get best you you a the to you next don’t on you obviously, may will you long-term a negative on ROI, there chance regulators? months be be that in

Jennifer Piepszak

get we So I remain will that hopeful will start the certainly extension. with, we

the into near-term have which consumer But have number the about about one rates. normalized near-term and branch do the consider more associated the there because opportunity value level from a certainly rates. with branch Importantly, broader to is is is the there that not that for them headwinds fact expansion. a we of rate relationship expansion branch of long-term all of as analytics factored much just But headwinds, in factor margin the a and not the state we there steady a but with deposits the think anyway, we consider expansion any it’s we at that, given franchise

impact doesn’t around it it a it decisions margin a us. on -- change doesn’t some have So might but at big marketing,

Jamie Dimon

is on Yeah. all we lot other The finance, the those of out bigger decisions on investment trade It’s have bank. clients, repo, leeway corporate that a things. of which deposits,

closely. by of, constraints very GSIB very, XX managed managed area, by one by… product, uses is this by by say, -- the we region, business, So Remember

Jennifer Piepszak

people one not rules it we And for for on bring JPMorgan. can medium-term, us have issue obviously, get an lack another Yeah. in where we it near- because to up, an is example that’s around it’s of understand. more to we should coherence and these important extension it impact, bring not the it up of should, just the But so

So the on it it of is we up for don’t up bring recalibration. examples one better because the We JPMorgan. impact it need of bring the of because just perhaps

time to system through the have it we have and the work in You seeing right just incentives not the are that’s to for case.

Jamie Dimon

reduce billion to Look we able months last $XXX within like were time. deposits

Jennifer Piepszak

Yeah.

Jamie Dimon

elsewhere, customer it, deposits friendly don’t is take So your but… we you do say, it’s want could to and very

Jennifer Piepszak

Right.

Jamie Dimon

who money this options lot -- client They something of a that. market other but do of have bunch have and larger like funds deposits, corporate or

company how we is mad. are for of to we issue fundamentally, be a an even mean, that folks. not and is none were this if XXXX, I It temporary is -- just going reason, So it for it this against always away manage am it we I it even exact fine, we And away. another goes if much relief, cliff, have temporary just are to creates because tighter. goes relief

Operator

from of comes Bank. O’Connor question line Deutsche next the The with Matt

Jennifer Piepszak

Matt. Hi

Matt O’Connor

bit course so will a gather answers. lots but it been good it’s the tight, low. hope still, just conceptually strong. trading to strong. banking it rates have but liquidity, is good, the very will is investment the overall just feeder I very the business, of for of banks of remain wallet? capital, markets a basic businesses driving is of lots like away why near Hi. Maybe What’s really zero, volatility not sounds take question, budget I be some there’s are of are you, revenue It it? But still but

Jamie Dimon

volumes $XXX to world, hedge, been down. There trillion Obviously, up years of trillion, expect in Spreads is going you global is $XX $XXX financial down, XX sell finance, market. trillion. would the plans. buy in with money and that generally billion pension around or have XX -- to to a our what coming has FX, go time competitive People number and assets, currencies, $XXX over years probably, and be

$X balance all that mix. around globally course, of and Fed, of financing the put And you, So trading with have or of lot M&A companies Jen the a the got have And drives DCM kind expansion the of $XX higher ECM do. lot of the that so trillion trillion central and the banks sheets that also of in to but world higher showed higher $X trillion. you to in it is you when and a the

Matt O’Connor

this, I one And to is question that could the increase velocity. sustainable has and how guess, argument be technology the banks is obviously, allowed

is talk a specifically the guys will can time. that benefit about You over that some businesses period? for and this you Do time think you for structural change a long-term

Jamie Dimon

are we things look and trying done of we what is share the kept we to Yeah. The way it. them digitized we of the a find our business do to kind expected has way

hopefully, yeah, This is and warfare. we we our can just matters, share. matters, scale think we even So, technology trench think grow

high but thought stayed base So it’s I -- to last hard will go level as of we It is expect a say, it may that. back doubt. be what in year, may was. that we but it what than very to higher revise and to kind XXXX we the I not -- as then grow the base it, stay level down sometime don’t It

Operator

Charles comes question next from Peabody with Your the line of Portales.

Jennifer Piepszak

Hi Charles.

Charles Peabody

on how you OCC I the have of what Do a light any of as born the in and secondly, is was help. points. plumbing of generation, lay the in a to questions unfortunately public to dependent need fintech has a the the understand that the banking noticed And on have the I green world? then, wrong I world they that of couple so system, lot banking JPMorgan? pipes fintech fintech -- related morning. and the top Good world competitive How a I system. use you in leverage networks stable explain gave important against to blockchain Can banks I

Jamie Dimon

Yeah.

You go with ahead blockchain there.

Jennifer Piepszak

Sure. Okay.

enables offering public blockchain. a guidance an So on that of stable going

deposits. doesn’t that customer of the should as JPM our tokenization JPM about So impact point, you point. think

very obviously early. it’s So

assess see for will But use this to it’s goes too where early demand. and cases customers We us. still

Jamie Dimon

with And sharing are that we the and are so of good. at banks using is for which forefront blockchain already we data

I bit The billion, other $XXX question of were million, first pointed fintech. They is people, a Financial good all, were $XX a lot down the strong. are about in are they are to Squares rails. competitors. PayPal effectively But is They ride million, some done now. very $XX Look worth of there. smart, out was are Ant quite they Stripe

bank of we to them. accomplish help have. a accomplish and want you So what lot We them they

done to better are have things is like and will what view to and need look could about at we have my we better that. So inside our going look or we we do to could compete, --

able be facing faster the tougher, of we -- are now I generation newer, rails competitors and they compete. JPMorgan, rails if think am I to can someone will we else. don’t So buy of But buy of old confident they who

I see, in to before, going everyone have you payments. So is be told involved you

build expect to top on makes prepared to Some very, XX white have every banks that. sort expect years. we and which label very the to the makes be of to be I of competitors going for win. it white it fintech bank and thing tough competition in which next label, I

God. me help So

Charles Peabody

Thanks.

did completely need can their they of the bank? work banking complete system to or loop the So service they outside

Jamie Dimon

mistake said, white but it’s bank I banks licenses, industrial to licenses. going for The will Like labeling. giving because game are Utah of now, Well, think the do most forever. I it’s a be is

not system, business, -- assume basically bank. If don’t a it. to it’s to they which So I of I And do bank is a mean, day, at thing. are not don’t but they that label going that less will may find that. have what are am the going I know, effectively I about the around do, to regulator process banking which a banking stuff view white When used I the have one am if some to they things uses worried to use bunch companies have the ways, about they worry but we will that. look a just their fintech whole same am that you done. their The of fine, system, against a have point need, regulators us. about

Operator

Andrew Your Société Lim next question Générale. from with the comes line of

Jennifer Piepszak

Hi Andrew.

Andrew Lim

Hi. morning. Hi. Good

so… And

Jamie Dimon

I KYC do a can certain for on, create basically been lot which you Charles, Look, a the be the will reason our People and to And examples go but place debit, of will more to be we battle given data that is system. more compete People part things, because can one and only who on, other about little take has that. point, who bit them will we they that don’t use by client, we eventually. on something here. other activate people risk okay? there because make improperly AML aggressive competition, expect So will if unfair on they under do

Andrew Lim

Hi.

Sorry. It’s Andrew here. Lim

if like volatility. wanted jumping or to the you like Banking picking Investment are itself Banking that at might the wanted and rates, seeing just developing? see as or this and inflation people terms pick I we to Commercial replacement even ground as to in something are on I So bandwagon. of month, indicators what the a on brains a in theme products Is on in lot inflation manifesting look be of that see real world your how you in this just at are inflation a you up. look But hopefully metrics If that’s

Jamie Dimon

I do. insight don’t much mean, have look, that you more than we

goods commodities with that supply world. see to the lines no products signs and It’s witnessing consumer hard tell China can change inflation. demand stuff do is that. or up You have and trends, That in keep longer certain that can’t like long-term ending and you

curve. she I at implied numbers, using we think those always looked and gave Jen when

is, way have think best be think it next growth. the I think because I to good a this much conversation bigger year we about should

that. have think am but I what we of that become I do part going inflation, how to will bad, good and growth and part conversation, like things

Just got at mindset your to have been there so into a risk that has you look the build thing, got you possibility. to management

trillion you on higher would of scenario a because said, a X%. X%. $XX is to done has have X%, people that QE thing So the great. like and It be world have Goldilocks. not you stimulus, COVID think I ago, But fiscal now year trillion like to possible put inflation where and before and not something $XX That trillion of got have $XX like

in the you It so world no not in the Just what understand and how through we risk manage way. that The is by is the is that. worst the worst thing growth. the world

Andrew Lim

Great.

how resolved pricing by question, excess billion my you $XXX those. talked of Okay. of And way about issue deposits the about for you follow-up

So I do much why the quantum wondering that am of bigger? that just or don’t now problem you is the

Jamie Dimon

don’t have Jen. We all, that

Jennifer Piepszak

have Yes. to This different to. in also We then don’t It’s slightly that it. there is absorb system everyone. is an in was capacity sense it issue -- the the for

can’t could go make challenge. We them away. be a that So

Operator

comes next Morgan question from with Graseck Betsy Your Stanley.

Betsy Graseck

Hi.

is couple you. be least there payment Jamie, out topic stable Just and do quick am for basically create network the or one. Libra’s of Facebook’s coin rebranded to Libra does OCC anything follow-ups, goal a global -- is as competition, back the I payments Diem at on getting one, and approval wondering to their of

the You changes that making your in Libra already is have coin JPM to your any footprint? stable anything wondering own coin platforms? benefit that is But of obviously internal approval, to with you there regard would competition am drive are that’s own I OCC there that’s coming

Jamie Dimon

so. so. But I think don’t don’t I -- think

We expect stable…

Betsy Graseck

Okay.

Jamie Dimon

is world. where stuff right? banks around central about and move It’s stuff and like the digital currencies there in several like obviously both. by it that Their banks electrons will this digital is And talk when that, move we having currency

expect be want is the But of do They the do, it I want want they world some want payments a to coming move we to much. and in about and… So that regulatory be the it’s change our issue what money. to Again, not They competitors stuff to going may that that data. payments. means

Betsy Graseck

I if sure… then make And

Jamie Dimon

it Although, not thing the point. only unfair. That’s I is can

as competition as -- argue So always it then can do and this unfair. to safely as can -- the long competition that’s it’s hard do we

Jennifer Piepszak

it, And mentioned not JPM different. coin, earlier, Betsy, is you might JPM missed have coin does I but it impact

for to make You that deposits should client. payments tokenizing about easier think as

Betsy Graseck

Right. Yeah. No.

Jamie Dimon

Yeah.

Betsy Graseck

center question. if banking they are get the up forward is The non-technology to I that. thinking is are year-on-year XX into allowing on maybe moving this billion totally the was just was coin of follow-up were area, kind just and I $XX of No. stable back commitment back that the to initiative. the the path OCC slide to expenses purple part other Yeah. trying of That system. help you the quarter that was how that hey, move mean Jamie, you kind want in know, this you billion kind put to you $XX we that out and inequality wondering housing how that are going be note where is are housing to of output from is it? that are billion? past going? I and And and wanted What thinking understand, time frame over of about a about as on on how you I investing money $XX like, thinking and

Jamie Dimon

Right.

less, Americans and real and make but hour which they an or So XX that. employment know, don’t we inequality of problem $XX,XXX year is that a believe don’t than people $XX die the are at XX% dying is like, have people end always million quicker lower before. something like a

worse, first lifetimes So our fix in not problems. time society grandparents lifetimes, getting and Americans our these is have mortality better to

we place need took haven’t and healthy you the growth around have has we -- rights, problem the all and growth, but also with even hundreds the made. for need should after things healthcare mean years progress the I that healthy civil racial made like, after of infrastructure, formerly we education, Now been

black in been people who other of we So and long. particular we fortunately, really and this lot the of seriously. citizen companies American has How for left can so community take help all -- behind

we includes secure numbers billion billion our neighborhoods, lower do, card banking benefits mortgages middle these went doing a to black paid neighborhoods, month pay because million to effort includes expected published $X.XX in cards of five be We defense those black a So dollars more neighborhoods XXX we exact income are opening, neighborhoods. recently $X online the for building includes it we education. for $XX or what is education. XX% all have more which of primarily includes, over housing it of for of LMI billions lower, will years, affordable affordable housing, color, that is Of who more, ATMs, are individual the are bill branches entrepreneurs

We are CBFI’s. MBI’s and financing

it’s a of So here. There hundreds are dollar serious costs effort, millions it work hundreds of a year. people

are are are And and to that courses this loan loans mind we you, and stuff it have put will that not to going and going going change in don’t we work, we it to debt how neighborhood. So how in a we going -- to that. to we not report are many neighborhood we put are we but things doing like working, many

so obviously here training hiring and includes And it and community like black that. stuff open more

of So I good if We we a computers this of you to go It’s Unemployment local to to appeasing and fix sell happen about the my but Zooming still this. it. the have have And do lot not planned and government. my for including need with just going at think these kids them. level. world schools unfortunately, ‘XX their have The to have jobs do going is not do people is own didn’t to lot to efforts The good in is XX% send to view happen. home want something computer high. wife government. that didn’t corporate there, It branches

not again, purposes for I time of And at but doing government but It and to the I create it. to to American alone. think loan business just so more happen yelling be going better, for it. slums, get healthier always the together. all so them. it’s jobs we commercial would to work are We prisons, my forth. purposes successful and not people, and act going sufficient, crying, is less parts people. view with collaboration it is happen by do it drugs don’t can do think, And has to more our that just fix do help in do less in less should outcomes If companies they The

Operator

of Your Securities. next question Wells from the Mike comes Fargo line with Mayo

Mike Mayo

Hi.

on more that U.S.? expansion. expansion and the could up Commercial Just international of deeper part just Banking, to the In left following you what’s done be on drill market down in

Jamie Dimon

I major answer But share information same deep middle top SMSAs on. are XX it’s to the the XX from we again, are I will I thing with the looked companies, now roughly. of much think market so we are all now but think in are going we we U.S., the doing the there not and how dive I think U.S., at many in

deeper So now maybe that expansion. not They going at is point. retail the more be by helped bit little just expansion will this

the I think hand… don’t I number of just overseas,

Jennifer Piepszak

know either. don’t I

Jamie Dimon

subsidiaries are of or U.S. eventually the about this, subsidiaries with we with X,XXX could share could you later and down cover be probably talking road. headquarters do foreign are that of But we you will headquarters in more that clients Okay. this wrong more dead in These business companies and I overseas.

Jennifer Piepszak

just. would I And

Jamie Dimon

he tell will on can’t me I imitate this one. Charlie,

Jennifer Piepszak

front international I just riding existing Mike, we the expense perspective. that already would are to just on rails from there the an is CIB. remember are It add that important in

already opportunity and can extraordinary the this have bankers is -- infrastructure. an hire So we to we

Jamie Dimon

in bank jelly U.S. subsidiary… the usually we And

Jennifer Piepszak

right. That’s

Jamie Dimon

Our U.S. headquarters.

Jennifer Piepszak

from So expense the it’s not think might perspective. an list you

Mike Mayo

a going are anything But they I Visa, Stripes said, And been based follow-up questions mean related that the of Okay. asked fintech. trounce Mastercard you valuations related. your valuation just to to that Jamie, have fintech and right. other then you of win, the stock. on on PayPal,

win. others I saying think that the to are going market

So coming yeah, is we going well, say, it, we said, ago we is missed what, we missed years I how and each year to like missed it’s something -- six then it, Silicon mean is it, that JPMorgan you Valley or still? was

Jamie Dimon

never No. we -- we we said Mike, No. said No. We it. never missed

on. just committee doing over with five you, whole been Mastercard I gave Financial But that you show management billion, Apple, on billion, little XXX XXX to PayPal we billion, Ant chillers I have and scared operating team. years. Facebook, Alibaba We agree deck are these Visa My XXX lucky. be Tencent the billion, absolutely, we XXX Google, But go XXX do a that. But should about billion, trillion, that fine Amazon,

Mike Mayo

So I going what… mean, how are win, -- to like what you just

Jamie Dimon

of not am lot a that’s of plenty which just -- do. people. got you. resources, to But quicker, I to We going very faster we the and get we better, tell have smart

-- We have done got have exceptional. an we

a job If we look would good other we what have done you done, say, too. people done have a great you at job. But

monopolies have a is whole Some different but. virtually issue, it

Operator

Gerard Your next Capital of Markets. question comes from RBC the Cassidy with line

Jennifer Piepszak

Gerard. Hi,

Gerard Cassidy

Thank you. Hi.

side, in Obviously, penetrated out one servicing on you us -- mortgage that with follow place, the forward? for your Can the correspondent as that was positive the with the Just revenue the put and servicing programs up. that the quite healthy or negative new quarter you government Jennifer, forbearance guys is have with has a you revenue pointed go share we champ. production into

Jennifer Piepszak

Okay.

Jamie Dimon

one. will have that Jen

Jennifer Piepszak

Yeah. how that, we exactly know we say for is give side they Gerard. it I thing, what other can All need, Yes. if to them when customers it, bridge good. answer that’s the to is that of help sure I don’t this the the

know the the but get no precisely is, We math good to customers doubt mortgage. side. our their it if don’t other what it’s there’s service I So helps

Gerard Cassidy

funds am assuming the not is and delinquency obviously, you loans are a stuff. and I past In into not category, have are to in loans But there that they security, guys the advance in deferral the mortgage-backed when that in obviously correct? -- go is -- that

Jamie Dimon

Yeah.

You are right. absolutely

Gerard Cassidy

Okay.

Jennifer Piepszak

Yeah.

Jamie Dimon

times cost [ph] XX Silicon loan the and like The default of the non-deposit of loans. is servicing service

Jen right. So is

benefit. default, prudently probably don’t we a Although, small is there

Gerard Cassidy

Okay.

Okay.

Jennifer Piepszak

you. got I

We the are advancing it. Got cost. about talking servicing

Jamie Dimon

either. That’s not an issue

Jennifer Piepszak

No. Yeah.

Gerard Cassidy

Thank Okay. you.

Jennifer Piepszak

At this levels.

Gerard Cassidy

it. appreciate I

Jamie Dimon

thank Folks, for with spending us. you very time much

to soon. speak all will We you

Operator

today’s for you in participating call. Thank

You may now disconnect.