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JPM JPMorgan Chase & Co.

Participants
Jamie Dimon Chairman of the Board and Chief Executive Officer
Jennifer Piepszak Chief Financial Officer
Erika Najarian BofA Securities
John McDonald Autonomous Research
Glenn Schorr Evercore ISI
Ken Usdin Jefferies
Betsy Graseck Morgan Stanley
Mike Mayo Wells Fargo Securities.
Jim Mitchell Seaport Global Securities
Gerard Cassidy RBC Capital Markets
Matt O'Connor Deutsche Bank
Brian Kleinhanzl KBW
Charles Peabody Portales Partners
Andrew Lim Societe Generale
Call transcript
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Operator

Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's First Quarter 2021 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. Piepszak. Ms. ahead. go please Piepszak,

Jennifer Piepszak

significant disclaimer Good $XX.X as items, on in I'll these a our always that on revenue two the reported billion to we strong return operator. Touching Page $XX.X a Starting the a investments. the common of in results EPS reserve to credit X, in XX%. equity more website you of contribution of Firm's presentation the ask firm the another refer please which is and cover quarter income you CIB. delivered billion in the Included $X.X morning, few you, releases, tangible back. take on of shortly, $XXX of I'll highlights. net everyone. net million through equity and saw at form billion, Thank and available Foundation of on are which on $X.XX, detail We

given of in performance, the on what When particularly quarter's at income of although bright -quarter, results. an looking year-on-year IB fact, as In noise CIB. XX% year-on-year net January term our trillion the But of record remain remains in muted it continued a XX% Page In more comparisons, the billion growth with up year-over-year, March in loan being normalize up of secured and $XX there's Fed with deposits quarter expand. up and last and environment fees favorable was activity markets reflecting the in net to robust in and happened February detail as all XX% X year-on-year long X% X% continues this sequentially, and for were quarter-on year. sheet inflows balance AWM had Onto we up did $X.X to this X% AWM, year-on-year start lot record lending spots and March. time

in down on or XXXX. our in so well credit activity Effectively billion. billion We a reserves of few release $XXX it's losses built $X.X for and in investment as grade quarter's March debt about issuance. points $X.X $XXX other key stopped investment of got as this a And adjustments delayed CIB relative remember banking recorded here of bridge And important except we million to credit, book. million mark to

that, with up income billion revenue interest XX% billion, billion was Net or revenue mind, $X.X up So down XX% noninterest billion, $X.X in by of driven was $XX.X or year-on-year. primarily rates. XX%. $X.X And was lower or

well Foundation XX%, the items just charge-offs this and $XX.X continued a terms, as $X.X driven credit in billion near to on in contribution historical releases. in I and While The investments. mentioned is that just comparison down expenses. noting by lending by home absolute related trend benefit million as lows. generation of were markets. volume Expenses year-on-year were the $XXX costs And performance across strong mentioned, to we revenue AWM And saw as billion in part I it's about that worth strong higher here investment well a year-on-year continue were of the or fee reserve XX% net as including several impacted and up banking, of franchise

as released have And release in driven indicating and approximately this accelerating on The of approximately improve. delinquencies extent more home $XXX would faster recent few billion stimuli portfolio a to recovery detail the to $X.X been a continued Turning million quarter has to the $X.X expectations be our with have of Starting level in provided thought has that then lending, card, consistently primarily positive, than for in we We billion million. continued months runoff. data X lesser low. ago. round just HPI picture three $XXX we in reserves. we improvement Page very remain reserves released wholesale, economic we support stage consumer, released and by as another And employment may early

recovery around the strains health labor of strong the virus also and While seems impact in uncertainties underlying given adverse remaining motion, of the new more prepared markets. we're for outcomes

cautious So for about base downside are now, still billion above at we reserved the weighted remain approximately $XX and $X billion and scenarios, our to were at case. current

more alternative case, worth even noting it's wouldn't as the some weighted base we'll that expect on to we always However, a to scenarios. in normalized XXX% be have environment, waiting

retained sheet by Perhaps with and Now SLR CETX we right more on page ended and temporary is as which excluding ratio the was prior net capital at expired. ratio a quarter relief X.X% that and just balance AOCI XX.X% offset versus interesting the lower now X; the moving quarter of RWA. earnings growth is to flat higher

all this of explore rely and a engaged billion quarter. the reinforcing stock we to said evidenced were here. clients never worth along, $X.X said issued as it's term one we going matters. and And our is short-term first solutions, on As actions planning relief we to long we've few points a preferred taken. already that temporary in Having with We've wholesale a deposit by

driven to that leverage cannot be SLR reducing The by by deposits lending. the First, is requirement. remember based based growth in leverage a risk bank a has cured and important requirement, it's not been therefore

operational marginal for issue any bank constraints, deposits. leveraged help further it a the leverage right further it's date. we've true. based growth this be risk the retail, to is expect we In to is and time. excess non-operational, it growth, starts if had value could demands issue up, pick loan would muted The loan consider to And that had envision requiring would capital. even if fact, additional when some is outcome. absorb capital it loan deposit it wholesale is or Regardless the lowers should hold or this because hard pace we growth banks If opposite organic of to finally, And for more to QE. persist regulators therefore would with And that keep whether

have for the last against system levers As just capital we and will, are capital we long wrap told SLR quarter. good be unnatural and banks raising then however, the for limitations and/or up manage in we to to the actions cannot another run. were extended distribution, deposits And regarding on deposits away turning you quarter,

So income billion capacity of the about second that buyback our to based corresponds quarter $X.X on our paying in dividend. $X.XX after

we and Given excess work deposits. the to the preferred, plan client issue underway around

that could buyback this course to challenging, we of all that capacity. should able While become if we believe more most of not be

customer lending we net new billion March on originations channels. also an acquire larger and auto continue Home originations with were been drivers with balances to banking with Starting page let's our loan best year-on-year assets financial go record. of releases businesses $XXX net billion Client existing flows reserve by key advisor CCB healthy Now remain I'll to generally last billion. and few investments including note quarters sheets, XX% Deposit or the and just was reported across up driven billion, as were up consistent XX%, month elevated. strong over were savings lease well investment billion, and and $XX customers. have as balance on XX% being of appreciation higher our the consumer positive up the $X.X against as X. And digital growth de-leveraging. income $X.X XX% overall and market of community which with rates starting $XX.X of backdrop And performance, market. the consumer

tightened mortgage still in stimulus growth increased spend is to We've However, remaining up returned than remain X% been levels. have with Mobile lower. even and to year-on-year recovering the And that and addition additions. off to spend by loans still down and we're This nearly long March checking cards versus down And PPP in have million, With also the is the more to debit year-on-year. similar mortgage transactions portfolio an industry covering. overall approximately across seeing February, digitally. robust. government's levels worth of in were XX customer sentiment CX to trends XQ, slowed strong momentum seeing lower and digits. but continued and accounts grew provided reflecting forbearance X% programs card we XX% the users bridge T&E optimism. continued reward is rates, outstandings and likely of XX% as double to market as refi loyalty margins run percentage is higher X% despite brands be and offset credit, the seen travel returned said that's pre-COVID XXXX applications partially pre-pandemic on banking, up enough. $XX consumer a to ultimate That confidence were few Notably, strong digital normalized more bookings. has Consumer with than lock compared going In and T&E to more and are savings opened significantly points up credit XX% emerging and have new enough migration levels,

card net and previously there's billion. offset vaccine $X.X quarter, offset some balances In with by rollout, down down the driven of driven we by are higher loss Expenses net reserve X% And the card the of margin pace losses XQm quarters. were summary, together charge- permanent costs lower the believe to billion billion year-on-year lower expect and by home self-fund billion of third XXXX mentioned; investment. $X higher deposit second offs as billion largely of we X% losses were mitigation. revenue $X.X a I our in a strong to do was decrease Taken $XX.X credit growth And benefit and quarter-on- of the production we while revenue. NII deposit releases lending partially by of $X.X and compression

primarily momentum from In here down more and Debt the the by and one clients and CIB of advisory, wallet revenue bookmark record number all nap fees while continue record of ROE leveraged on markets, to and last of $XX.X excluding our of surge we up announcement the fees XXX% well billion to half maintained IB corporate of equity XX% was of impact XX% as equity take first in by XX% global up of maintained driven conditions. billion turning XX% in were due an driven in an net year-on-year of IPOs, $X.X number finance and we continued banking And were our the strong X. Investment IB fees market activity in quarter's issuance the underwriting XX% up robust largely activity The Page up billion. bank second billion left revenue as income two time performance SPAC underwriting and was quarter the bridge of than activity, Now IPOs, by and benefiting $X.X the up investment XXXX. we position. were to we ranked reported X%. rank M&A advantage were driven as lead year. share $X DCM. on

pipeline the the IPO higher with M&A flow is quarter. while the number forward, likely Looking to and of to the both calendar ever continue. active remain outside to of second it difficult year year, expected deals the is last than it's predict pipeline momentum this And make been,

expect So point, fees at be I'd year-on-year. we this IB about say to flat

total March a of Equity securitized the levels. secondary robust client up year saw and across and currency Moving January as of by and XX% year. In activity in was was primary lower against positive up March, markets in strong all carrying favorable against our to above and and the record supported trading emerging elevated environment performance normalize and partially a equity by rates environment from activity markets, XX% as tough $X.X driven XXXX year. billion, to offset up quarter. products started revenues of XX% through remained a derivatives trading time Income remained an with pre-COVID and the to well with a In was strong client active and products. momentum we end compare Fixed markets start prior but February, revenue and the outperformance by last credit markets,

$X.X expense. quarter but higher we the compression. Wholesale deposit offset releases this balances costs up million related services quarter terms And early. and billion $X.X of driven of of Expenses a be respectively, second compensation, earlier. obviously were reserve the to credit billion on X% quarter of year-on-year closer $X.X to on security by offset year-on-year still record recent XXXX the both XXXX more our based partially were I revenue were down margin discussed XX% as weeks, was markets it's outlook higher In on legal revenues by deposit and net XQ would $XXX lower franchise best payments to for with than by benefit expect billion

banking year-on-year as X% X% on driven commercial up up X% additional And go XX% Commercial CRE offset loans in XX% liquidity, of revenue lending, net were banking loans Revenue page X. by and billion affordable commercial with on ROE $X.X balances billion was of Now let's quarter-on-quarter sequentially. continue activity. markets increased origination expenses. year-on-year balances of an X% client funding. lower continued Banking of income low $XXX loans the for $X.X to as lending reported the higher investment billion structural partially down revenue X% revolver clients C&I by were and of quarter in XX%. were lower and X% And access offset Record prior to with marked housing investment were Deposits were by favorable. lower down and term year-on-year prior $XXX down PPP gross elevated. down XX% with banking volumes partially Expenses bridge remain offset revenue. million from conditions based capital and market broad was partially remain deposit as a up $X.X the strength billion year of down of book by absence

of credit with by and charge-offs oil million driven net net releases million reserve Finally, of costs driven a gas. benefit $XX $XXX by were

Now wealth on on page to X. asset management and

wealth record generated and $X.X Asset net with management and pretax ROE XX%. of of margin billion XX% of income

deposit of fees, revenue were structural as investment year-on-year, by the Expenses expense. offset was by primarily as deposit higher management and $XXX reserve X% were gains were balances of related compression. to releases. partially $X.X higher costs well up quarter, For due up and expenses, growth valuation credit lower $X.X a loan And of volume benefit net partially million revenue as billion with and billion XX% offset margin

clients long-term excess overall billion were were inflows. deposits up classes year-on-year driven of channels, strength $XX particular and inflows and regions and asset respectively, net equities. trillion, And based XX% trillion positive up as $X.X net with we of of banks XX% were in liquidity, strength $XX billion away And again For finally, encourage with record deposits them. well in XX% strong lending from to all assets inflows and the lending, custom across higher quarter, net and move up AUM market loans saw levels $X.X client as as by security XX% were mortgages. and of

mentioned of year-on-year. corporate loss driven lower of a $XXX to back million loss the were the Now to relative income opportunities full deployment Revenue as was of continued Corporate page The $XXX quarter. quarter by on also impact income up year a a $XXX expected X. the $XXX million. million And limited expenses the nearly million earlier. of the million down results interest this rates for tax the on onto reported rate contribution the year-on-year, I deposit was of Foundation net Firm's pretax tax primarily Net level $XXX well include benefit million, on related down $XXX to as growth. of

on that, page with outlook to So moving XX. the

charge-off rate card. for revenue. forecasting than fluid. a a expenses, approximately around offsets key market, basis $XX with while points tailwind behavior and many of we've to volume our and have related been in headwind reminder, It's with higher de-leveraging for by NII forecast, challenging And largest a in then driver inputs You'll reinvestment being which to being a $XX that see And importantly benefits XXXX in card our increased as now in here outlook year. the line XXX NII rates, it's rates the that billion as quite expenses, revenue remains in behavior of noting for offset yield and worth as all customer are around are curve we on NII, previous expect the the our the securities higher it's have deposit in billion is guidance And guidance, customer net steepening is long time, implied card credit. card more customer payment be our perhaps in

start wrap up, and off economic to strong robust gotten year recovery the has seems So to underway. a a

resources the we're balance course, said among uncertainties our facing, for open we'll year-over-year serve still customers Q&A. And the environment that evident, use operator, issues tough and for power as that with to comparisons, including as I that, and and our and we're the are other continue Of risks mentioned there Having clients, the franchise that, to line things. the ahead of dynamics. specific preparing please sheet rate earnings remains communities. well

Operator

from Najarian first Your comes of Bank Lynch. Instructions] with Merrill of line question the [Operator Erika America

ErikaNajarian

first perhaps Hi, Jamie. be wondering December question And for GSIB think is achievable or believe a My this for is that JPMorgan, at investors that context good constraint? surcharge as morning. are during you Jamie, about still we normalized a higher that XX%. you ROTC cementing would about under noted conference XX% year, X% JPMorgan

JenniferPiepszak

So, yes, Erika, I'll start. so

to things of capital. couple about a think just So on

we're, we GSIB to in expansion mentioning, for for bucket So four a couple in while worth very do in we'll capital it's even stress through that offsets year believe we that become see staying us. do buffer, could it's sheet, is probably the the of given this But that things possible X% those and the keep through system and balance in believe the of the like in we ended have there challenging continued we Fed's the just mind round. come

course, models, some taken that we've talked in that Fed models, held securities nature that benefit it's to our into SCB. upon addition about sort investment to things on in not of should dependent moving we've Of mechanical the give us actions the maturity but

Of could is And for expect are from endgame. important do GSIB some Basel part address that. remember that scenario also as course, recalibration that's III of still we we will dependent, benefit Fed waiting It's indication that they offset. the to but there that the the

will we be another it's so managing. we that see that possible but quite And recalibration GSIB perhaps constraint

effect of will first next it higher or until there into learn quarter the course, year probably XXXX. doesn't GSIB And two. of that the the So we is over come lot a

we to about we're target a that III XX% given being really it still do feels for know understand in Basel course, that rates, a endgame have But also more us, are wouldn't demand. we be achievable waiting what still what loan be XX% CETX think So would we're still dealing offsets, environment, normalized with. XX% for just for we And about which we at of us. thinking as about today.

ErikaNajarian

economic opportunity facilitate for have you been SLR Investors expired. to thank of the wondering some recovery in And continue growth GSIB your now think leverage SLR to it. we timing has mentioned terms Got sizing priorities inorganic in that billion through, moving and -- you've has your about exemption buyback as been globally. Does the of or, constraint constraint or past? also the the on change the pieces on of opportunities $XX the going that

JamieDimon

I I have the but an preferred, are more on way, very also can we a obviously, as speaking, we say deposits. no, find excess for would point alternatives common, wholesale mentioned, we're selective but closely to there retain in levers working broadly important we SLR, issuing clients with

one is that say the that us comes flexibility, it it more although is at common greater true So levers a while give cost. will it of much might I

So clients what and know manage we working that through our expect expect, we preferred common. we to can to We we more find this don't we alternatives. with at retain given think this closely issuing what point, and more have would

it we've and as the system. It's a was say managing now constraints, for us the is of than ago, now just would but even one speaking, that for expansion years as years particularly will with few that I well. increasingly more perhaps been challenging So challenging the become through we're saying broadly GSIB no,

Operator

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

JohnMcDonald

much that give today more revenue how structural? is opposed outlook, a talked guess of last ask you've about I the to that in the raised about spoken. a other investments by were Jen. little outlook can morning, $X increase color expenses. the a good announced to want times volume Obviously, and buckets the the terms in you which and Hey, couple you of related, January, as I billion times, you on to few you've

JamieDimon

Sure.

gave increase related. the guidance we K, the and So the in was from volume entirely almost which billion, the is $XX revenue

point that just And an related. and I'll it's so revenue make important volume there,

even just we for say, CCB, revenue we So given near not for don't valuable environment, the franchise as But as manage growth an they are term. this but example, always long-term one we place revenue very growth, one year. see quarter that or in volumes may in the

we So it's you anticipate there that in expect, few would like strength year. of more are marketing to the other the related. entirely growth of There run, over in half the we with that expense given a now not expect are marketing volume but that the growth, and volume the things expenses may associated long expense almost on the lean have revenue second revenue recovery

of So part that's it well. as

JohnMcDonald

such the costs concentrated big there is I Okay, guess over your quarter might it's a COVID more in that come in year necessarily that follow quarter? out be, you mean the numbers related up have you increase would and first that this the because And are had that time?

JamieDimon

And Obviously, related some of first expenses, was it but first the less your the is talked things I marketing, like further quarter. question? so like what quarter, volume about, other in in they're then or

JamieDimon

COVID.

JamieDimon

numbers they scheme included but Oh, things. last even year yes in material of grand were those the and the lower in than not outlook are

Operator

the comes Evercore next Your from of Glenn Schorr ISI. line with question

GlennSchorr

there. Hello

we're spend I credit part you us on some debit, of think starting the you T&E. the which of the of So, right and mentioned, a lot are, if see the you're now, and the as to think economy, cross pickup

with you that that I great. liquidity. consumer my flush be wholesale comment how the growth? about of would get for part? are a is, the verse about think loan So if all corporates question so could think Have staging timing consumer do Both the you lend And

JenniferPiepszak

we've course quite when deleveraging of particularly consumer, process. of it that And is so this the about the you as relates demand, is is healthy, to you seen think word, the really through Sure, use about right which demand. all it which amount

we say, the a there we recover expect before as pickup, because spend second re-levering do you So see half side. have first consumer see we on to

obviously part has of support demand which even the available true very also is it low, then PPP. been CCB, for is through small and that's given their business, So

in more elsewhere, continuing. that's markets, has in been we CIB active then in bit there second And up the And and bank, classes, ultimately of we will sheets, some on pick mean, across dependent. asset lumpy the But probably the And has that likely within of the that's so lending on as liquidity well. throughout. but muted well. time, half see that's And again, there as recovery. cash always as and a of then do And the commercial opportunistic. again, I for AWM strong support And the healthy, given opportunities side, then loan secured see as well deal the incredibly growth, been level amount their amount balance that's will be for that

that see we whether next to be seen, year, this later good so for year, reasons. but remains all it's or And pickup

GlennSchorr

on And ask obviously, just appreciate that. growth I been follow the deposit has deposit I'll up strong. maybe one side, incredibly

the outlined, down justify side So it's the hard in that do money what on economy do US the goes loud on because to comments saw the think do the deposit I with you've two a debt. and parter Jamie clear price path happens the you is the as deposit and of you what meantime

are liquidity meantime? the in So with that all what we doing

JenniferPiepszak

as all being but say by Fed extent, by I picture And to would Fed's sheet first driven obviously, some near by term expansion. there, the of that in the So lending, bank the think can deposits be balance of demand balance you going are all, sheet. driven given it to

been expect important just deposit about is terms And of growth, up we've which seen obviously that in we investment true. will I'll the why long deploy also because are sure have off. and talking there, that significant And this is to so you are the that cash we then for how quarter-over-quarter. are we just short, so the it's will being it, continue And our in to curve, much. in remember drift that of -- less a portfolio patient mention of banks we sell are we securities steepening yield balances

deployment term they the has as but cash well, short And so of part that also. dynamic been are

And so below there markets market. cash that IOER to when to what was repo fall in going we IOER, saw term the repo we're short deployment relative hold

balance that well. see sheet, on you'll So as dynamic our

Operator

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

KenUsdin

Good morning. Jen thanks. Hey,

on wanted elaborate Just to that.

You pipeline, the mentioned the year-over-year and record guess. investment is flattish best banking

there. us you talk mix just ECM a markets. was how give wondering side? is that of if flavor activity, on activity? could of see can And in great So terms I much you about might where commercial what the dynamics ridiculously Obviously, And quarter just you the potentially be just happening the was underwriting first loan just the dampening

JenniferPiepszak

with to it type activity. has in the saw Well, of continue. lot we with from because high M&A of been a to we're supportive the corporates. therefore very, it's a and We But mix, is, there's And represented it's the which in on activity of absolutely I'll year. start corporates, very in muted demand in do that lot ECM velocity the expect DCM latter, and get what loan last of a second of flow that then quarter seeing pipeline necessarily doesn't terms terms

why difficult higher that so of is second been, continue little bit the high a than activity. there a to We is while it predict quarter it is pipeline which see I velocity ever that makes still to it's lot the now, said

And that high so very that's the think year-over-year why will we despite pipeline. quarter flattish be the

JamieDimon

hear Do guys you me?

JenniferPiepszak

Yes.

JamieDimon

And mute minute. hear can't we for you I'm a on Because gonna put you anymore. Oh.

JenniferPiepszak

have we I year. on so because technology we've know the traveling, challenges, can Jamie's him appreciate zoom. them all last had over Okay. everybody

KenUsdin

up -- Jen. great, follow just And my -- Okay, my

JamieDimon

can't questions. you you. can't great job, you're hear on Jen, hear I the because just and don't a doing But I going me keep really need

JenniferPiepszak

some I'll thank point. need you Well, at I'm you. sure

ahead. that. go on Anyway, hope So sorry. I'm they're

KenUsdin

Yes, Jen. no problem,

you that with to opportunities. comments the Okay, so while looking a regards at for acquisition is the second one just have guys made about

CETX Just wondering on just capacity, and balance make potential on deposit SLR everything and around about is and you between sheet capital decisions acquisition the you've of talked ongoing and limitations how usage already how an versus growth interplay capacity?

JenniferPiepszak

binding Yes, that issue question. constraints. capital the those types the not to decisions. that we issue wrong of don't have Interestingly, make is we it's is a The available great have

binding constraint risk the based. So leverage is not

we it so doesn't acquisitions think all. way And at about the change

acquisitions help increased and/or based. leverage between of fact, normalize growth the kind loan would risk to constraints In and

acquisitions, to constraint, we I back love and CETX we're so growth. through the demand able that our very in and leverage sort base And issue some that environment as rate is of of into with strong because loan The would a to low balance focus. deposit be is the that it's constraint just absorb low said, brings it

it leverage acquisitions. thinking combination things make But doesn't it's of the we're So that the about binding constraint. the all those change way

Operator

of the comes Betsy next line from Stanley. Graseck with Your question Morgan

BetsyGraseck

Hey, the the time. at on thanks question looking Jen. net Jen, for and charge-off. Hey, a card

You've X.X% us I time the and card spent year of career. of earlier your in in lot you a gave know full

a about normal give about there, given the sense changes like loss look historically, took card How So I re-leveraging is to as that should normalization many what at of how there maybe you consumers back And could over course should to When timeframes the us in on years background bankruptcy, your you're give you quote content or this be? that? that for us back unquote think wondering, of sense it time. normal And are content think relapse. could a do some the I'm thinking you XX's, to to time? different we what loss

JenniferPiepszak

of first system, amount seen this; in consumer. Because reasonably I say already difficult historical would on support this came, think I the we've healthy here. course, which that's Sure, comparison it's to an a of relevant top all, totally of don't ever of find

year mean, perspective, pre-COVID, X.X%, difficult have but it's been X.X%. say our rate would the find card would I historical thought in will we that loss I the to So this have X.X%,

in So be significant. of do what to mean, for that take tailwind sense re-lever, it economic consumers you expect of, there to second is in activity credit I terms it's we And going the a on just gives there significant to half.

And seen, have question. But perhaps where and that so levels, And that to that we'll the we that is above already back, it deleveraging think know, given T&E see still we'll come that around do a little start re-levering. on quite could later, in could even to of When a amount will be see come comes consumers but particularly it's spend great spend. fact point see obviously, restrictions tick bit to the we pre-COVID difficult ability spend higher. But naturally. a place, it we've we that

BetsyGraseck

kind Okay. hard And steepened? fact of got of it flat about up prior parts then spread be that deposit full bit piece guide. hey, keeps a those And follow continuing should muted? talk year? more forecast. around more that growth versus couple could also, that it's in QE So some you given continue questions on guide this to comments the NII growth? your is the it's on that I curve I to has you given do bit thinking think the the up a you're the why just And have little is this Is Maybe about little you a there angle significantly loan you identified? morning

JenniferPiepszak

above, it's but Sure, the the curve. with the starting I probably steepening all think Betsy, of yield

we disclosure did -- line is, on mean, disclosure, basis that probably I last XX-XX in at if earnings benefit which are So steepened look we roughly points. NII, at since see guided we the we shows, with what you risk the

in is we about, incorporated started of in though fact that the But recovered. And to we by just spends rates. see see haven't as card outlook. offset So it higher even behavior terms in payment completely that has to were is consumer re-levering we continue talking the

that yield is, then would steepening of curve. impacts realizing mentioned And steepening the we the the on the probably marginal worth offset noting of into our small, card, the fact the are in further benefit to also that of yield is that I reflected completely given growth important have have been it's And you outlook, So deploying just critically duration. the benefits loan portfolio in growth, quite opportunities the mention, further then curve; deposit terms fact card growth we the which securities of of also, deposit minimal. patient deployment

than about than think XX above as so something less points. rates can we you so, because zero, them points, something being basis less basis And have it's XX pay do

the growth whole deposit a from marginal So this doesn't in environment anyway. lot here add

Operator

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

MikeMayo

Jamie. investing like fourth question But My your your that. about for you downturn, increasing through philosophy what's year-over-year, philosophy pie if by Jennifer. already Jamie, the investments the is is case boom you're growing, is as not expect mean, your a said Hey, three invest And guidance and to one It a looks the gave. you through investments your with the over I that's years? you do next guys higher? go

JamieDimon

to think, as boom bust by think. Mike, really much way doesn't might -- the it you I So look it at as doesn't a it and affected

think we're going the now we're isolate whether cloud, building going bust. really centers. new or which go time. opportunities, do invest we black just We're down. to financial that agile, paying that data you're investment to so plenty to doesn't up I want it's We're over organic advisors, we're So new so get in. hire We going over time I seeing to go like building not for probably boom XXX we opportunities of -- growth our it think much

MikeMayo

a Your And guess then spending guys But climate risk much and shareholders? I climate? actually could that's is payback book almost. this do, CEO looking the that -- an had what on you on XX you spending? for for? you're to spending you benefit third letter table reputational you what's the like was, how how pages And ESG much be a Or in really of a really need

JenniferPiepszak

our not positive So can I'll ESG they a start a they're our our because customers effort is communities, in. game, Mike, long investing But but and important and to have And on you Jamie, there, we're clients, also chime and climate obviously. lot only society because initiatives, in of impact a shareholders. then

appreciate going transition. also invested aligned year, clients report in a teams to through Mike. the multiple we think and also But we it's it last help to do we've we're transition recognize that financing our clients We've So Paris the that. made ESG commitment don't and And way, month. annual about next exactly release

see we're grow make questions your climate well. then committed timely, efforts tomorrow finance long-term So about efforts fact, also our quite development. to we as of And scaling $XXX sustainable billion action here. an announcement in And more to ambitious to continuing those there. And towards financing and you'll because we're planning

I to much add shortly But more want come on to So don't if that. you anything. detail know Jamie,

Operator

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

JimMitchell

the Just constraint maybe Maybe SLR? think to just good to a discussing on updates of more even regulators question you you potential bank on kind bit moving give changes SLR? related X.X a the bank I do manage morning. of if than difference I just between have more that. the was assets questions flexibility out SLR Firmwide Hey, two of any relief a What guess, then on of are sense or perhaps? the have maybe to a thoughts which kind permanent that kind two And the of in the

JenniferPiepszak

do the speaking, the as can move we you SLR, we broadly flexibility, little be inject bit we same note, bank going I things, the levers, So a company. more it's holding mean, bank the to can capital have from into because

but the a it's what little the we speaking, and know changes, of So more in generally then same. bit you terms the constraints flexible, levers are And know.

plus it X% course, can and SLR thing proposal, our of Europe year, GSIB. only mention so, look half the to the to between Basel I it's the And relates there, as is US is, forward we on difference

X% constant we so have And buffer. a

to get of central with deposits And Basel exclude the time. way so -- that, for period and flexibility at compliant a in a you banks

that that, something don't So we it but know. look possible it's like could

JimMitchell

Okay, thanks.

JamieDimon

XX great the If different contents. focus capital over think god there. I, I So there business, do clients job time, is a how run liquidity We too knows servicing years. we much many manage

multiple while have we'll our that time fine. forward, our clients. If to levers all to got serving be probably going we've strategy the pull it, to so be do We adjust

several question cannot marketplace. times what asking the different securities, with financing $X.X we of I've have people the the deploy marketplace in trillion because which us, of whole these what should isn't into cash a think it of marketable you it or means and positions be helping we for bunch constraints. I means repo is just already ways mentioned or

constraints than on on are Chase. of the the are more constraint they economy a So JPMorgan

find way to will any a things. regardless We do constraints of

the I how best always job for United The and have is would people recalibrated. think recalibrate GSIB other They United JPMorgan fine asking need be for SLR, JPMorgan? to the they're thing. way. people bubble going the been not you to thing States why States of either do be to And

Operator

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

GerardCassidy

you you? a small I jump But Hi, a share to can the recorded you metrics tell fourth some this similar with quarter of Jen, off us on Can service mortgage the had how had us servicing went Question, loss? to you loss I the for address this. -- business? like if a the apologize business why quarter. are into you that servicing here. looked small It minute

JenniferPiepszak

sure. you. Not But Oh, Gerard. the even with can team follow gosh, up and Reggie

GerardCassidy

Okay, very good.

your for under one, to January The the loss were But saw do the the outlook reserves second accounting. with question for X.XX%. share some it you day levels can when back know XXXX? one X.XX%. bring you I us you conservative. we CECL go would you like X, time gave peers reserves, being in what to approximately with in has the little loans to and established a on recall, Today, total down guys we color at reserves I loss day your more will you loan what think that credit take to back they're approximately look think I your January XXXX to loan X, If

JenniferPiepszak

it's to and in difficult portfolio very Well, way. today, a to fact, that, from try profile one, healthy today compare to because just to sheet our a far our taking we the CECL away it very day balance of in taking are compare today very

in say even to closed in the we difficult will expect very second it half continued to is be, year. be the since robust is we first the do. we And to that things our things I improve that's the process that true obviously What recovery quarter. to So have of expect

have that if the but that just see will scenarios. that, our would $X see we I between recover, on rollout importantly, billion context, the and is And case vaccine base note we always reserve is the alternative weightings distance for see to continue we labor releases from continue would we to the to here. markets if so continue we successful, future have be And if

so the to day further lot equal there And back than difficult be $X bucket. there's so we something which less CECL ahead. is equal, else to all else all one, a would in release releases billion could But compare but

JamieDimon

Yes.

which which something we it out, to now Jen I going of $XX to and negatives and was these based, case have obviously, you in is time bank, more $XX a reserves of right you that permanently. the for kind multiple more now, always, virtually lot base that said, of going down describing are the environments of for CECL, irrelevant calls these because beginning always and on extreme a like which adverse One like something volatile have of numbers, CCAR Think pointed case. test, we volatile if reserves hypothetical these the scenarios, probability is billion, spend the lot a As a to percentage billion, always taking not be you're we're have up are

in difference time less company my CECL And to almost is mean, that I so a waste always on view should lot no hopefully, and we general. the makes

JenniferPiepszak

back to your then the on the point, servicing And It's I got updates model. MSR answer.

updates, HPI prepay So updates.

the operation model about update. about less MSR the more it's and So

Operator

line Bank. O'Connor Deutsche of Matt with the Your next question comes from

MattO'Connor

would or about I you to where ask something think it's being about was FinTech be material about And you've guess as to what I is about in be talk open But CEO deals it in? the deals, strategy to a whether could wanted talked interested we financial which of letter there JPMorgan Good morning, the type past. impact?

JamieDimon

after remember, So a paying and like. dividend we're stuff steady, careful

might the You over. including in cup buying our We're run invest because is stock to our buyback back organically, than business stock. prefer acquisitions

We sense. is have makes now. no door But option risk sum We're tremendous capital open money, we assets. right weighted I a earning think that advanced the have and risk to anything really of XX.X% to weighted,

IP So we're payment a way we've way platform things a We of tax ourselves. is which digital which is done -- in health electronic consumers managing at tax between did an and already InstaMed, And looking of providers of money. XX efficient tons care.

Some dynamo. we're like doing ourselves

partner different investments going companies XXX Some a got people. to like. with or probably We've partner be are other to are with and going

It be asset and could US agency, it it So we're be data, an could be It completely payments, open be anything it could be that. management, a cannot minded. like could Bank. it could

if people great reminding know. you just we're us, got let for ideas us So

MattO'Connor

done is as have or FinTech own investments have? to what already accelerate your on some protect maybe capabilities, to mentality specifically you or and that potentially And would the add you that the of to

JamieDimon

and people, of Chase you it's us and bit of pay Chase Plan Well, see little which ago years a see coming. got ending you adding tons Loan Offers of doing everything now a couple invest obviously, compete see My you My competing us because and see us a later, little and Chase buy Robo Zelle quarter, good do doing we're stuff payments, just investing, did We we getting had fabulous going. is a with very

and you're full going see personalization we're capabilities to to more, a a adding broad across see apps. spectrum. of And the set lot So going you're

coming projects. go us getting cloud; years, major is we But a to you done said, can payment constraints. out done can automated upon rid X,XXX the they've global I into they system, pointed job. the great go you tons a see, wallets, great I full has using making AI the pain the But live FinTech things XXX And under in. cloud. If is stuff incumbent be faster different It's already it'll job, digitizing AI have guess of Like that of five points, see you in projects. my

on wishing not comes level playing we for are and not, regulations services. are But America. will for fast it customers. I So we're is job there's can to going lot of obviously, do as people. smart there. to a them to they around when field products great They're be -- I'm a be money be challenge; want I for like very a we're as bad a FinTech And it we think certain certain and clear, wishing

and go account, right. strategies that Now I a I change. on some neo We'll fees, any and $XXX, grossly on bank earn for on adjust a of unfair just accordingly. the our regulars isn't I'm but just one expecting let checking could not unfair, have things, Durbin the we $XXX, And about small that and in thing earn it's do it.

Operator

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

BrianKleinhanzl

look are Thanks. quick I we of near have included commercial and this beta Hey, to both rates and Good somewhat start term? Fed mean the question. just guys how out the of what's to sensitivity kind cycle you or I market kind as implying on about term forward NII morning. intermediate your the positive in a and mean, moving thinking I consumer in deposits?

JamieDimon

guess we way the to is betas time. So and that best they our mean, over numbers have the gamma gave you. And think answer Jen change I have

it up going off. And is all beta the time. the obviously, So levels then

JenniferPiepszak

right. That's

the say basis the of you betas the points. XXX so the will first can points of for lower that meaning third have being think than and increments gamma. I'd if second XXX it And for Like, beta as the basis beta nonlinear, be

a And points associated on XXX here, will the be very side, with basis so is the valuable, there from first lower retail specifically, beta because it.

short in So an in growth. that's loan see with rates really where we the low benefit environment NII with

Operator

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

CharlesPeabody

hear Hello, can you me?

JenniferPiepszak

go hear we can Yes, you ahead.

CharlesPeabody

negative Sorry about short the end that might yield on that. question I have entity. curve rates about the had impact at of your a the

had rate five if you NII, bit -- repo raise touched overnight basis have a being we to Specifically, the by raised. points. IOR we related your and rate on Would any that on impacts little market

your incorporated does thirdly, $XX look we at at loan any NII is that then Thank we in demand the like? do if end, billion the negative have implications short Secondly, And do for negative that end, you. if rates get get rates might what guidance? short

JenniferPiepszak

Sure.

at worry we we longer and is saying something period orderly which would so and time be seen you start about times, while I'll negative seen by haven't of it's certainly rates short been So or any to repo have spikes, just for we more. go expect negative don't

with capacity facility. complex increased of RRP the in the the and amount that Fed I money market think the their fact

have around don't not points at any supportive that we But us, that. meaningful impact obviously of us. IOER because increase we is of go I they Now for ensuring do then negative an XX for time, also meaningful as zero, trade so say that for option would period certainly basis is obviously it. a facility short rates could of And

JamieDimon

goes different And place. you're in I into up trading, just shows variance, go rates will important back there's add, up it is timing NII because thing, expect going a moving just over different if out, it's have whole the like in in would a rather far and why negative recession, it the temporary number we than the no, issue, a would I equal, a NII, more thing very you, you that's expect obviously, whole we than healthy in like economy. strong But tell because time, negative and if a been

JenniferPiepszak

what far cash something unhealthy we're And is so dynamic we've chasing seen on short It's worried much the supply. or the of about. a Yes. not end so

Operator

with question Societe next line Your Lim Generale. the from Andrew comes of

AndrewLim

Jamie, Jen, Hi, morning.

having to out ratio on basis am quarters now. So the just billion to Whether back on circling you a you with I SLR. levers? about flow to wholesale harder pull how you at discussion pull just to have or a is about three to Despite preferred, issuing on and to whether SLR. $X.X think on depositors SLR put have hard the enough saw that levers or be last from XX issuing other points your wondering preferred going X.X% those can

JenniferPiepszak

Yes.

is the minimum X%. So

you So always have have as we when need of to some will buffer minimum binary consequences we you the naturally, have going. above room, a

at X.X%. still about do at clients. think issuing we've room preferred, market the with So again, buffer the you as can some manage that can management And well conversations through think in that that. with have we this But be we point had we above as this do will

We're case can manage So remains hopeful disruptive. not and far, have they been this. that we that the

AndrewLim

follow above concept And buffer for the what's so another your the Okay, level question. And X%? my that's up. of then just

an or of of, of update gave what about Obviously, excess on you've give then. that You proficiency scenario, billion since lot your of now? Can that a buffer versus quarters guys say released had best you a provisions $XX economic is figure update, couple you outlook. let's case an saying a

JenniferPiepszak

Sure.

a is that -- about think SLR can capital. that's XX it note, There impact something basis part X the points. we important like to of call buffer of into on is have something AOCI incorporate of the and you AOCI it is thinking our to Tier So

any noise there. manage buffer So can need we make have sure a to see through to might we that we

one that's and points about. we reasonable have why think basis So is probably to XX a buffer a

billion, What's the was case, prepared as $XX released between where in In now and that's on billion. is and it terms $X to then $X are of the in we said it's billion, interesting reserves, the still $X that distance $X billion my that we've remarks, billion. note was base I

of the the So always goes through so we all context inputs into last have managing a year in scenarios reserves; that for lot And that just into are we there terms as particularly as how uncertainty the reserves. about our moving. we've much everyone, think provided were of been

that said, put always So release, on lot that. we $X think alternative about I will shouldn't for also on scenarios. is waiting you as weight some the into have what I billion because wouldn't of a that Because available

it if less for expect, billion. $X even we closed plays the And so everything where something be exactly than first upon the books we out would as quarter, based

Operator

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

MikeMayo

wrestling the still deposit I'm conundrum. with Hi,

deposit are deposits and deposits year, around I deposit share gain billion. incremental And trillion guess up $XXX your the over industry XX%. is your the up something share national like XX%. are $X last I think in your So others, is to And

much build much out in fill try maybe can't I'm in time bankers you how those to because a you and that wondering you're branches due the commercial states. Thanks. organic when the growth to XX deposits. due at expanding monetize of you're So this was organic building to that lower of up all And growth. really QE and just can us how And is

JenniferPiepszak

Sure.

certainly deposits. term. lending challenge, maybe don't So but challenge organic it first running And long was we're there say expect of term. a not long term, bank some Fed this yes, the medium all, just balance always I'll for a the to sheets be as to And that, place then a but create we is long-term short we that say, growth, and

do expect manage what that's on. focused that we can And we so what are given it. think we here we And

otherwise, is it and that think or about change way expansion certainly the value. term franchise long isn't So going we is to market

JamieDimon

And and bank and wholesale kind think balance $XXX Fed was I think think a yes, -- the Mike sheet. the billion $XXX Jen growing big hard business to in just -- another big it's we billion deposits. we're almost we're a But $XXX of consumer really actual bank. billion I share every

So the in adding doing not company. inside going the to up obviously a $X we is again, big to system. trillion Fed, like portion that to but shows And, the needle the they're great, our -- move branch quite deposit new try

JenniferPiepszak

right. That's

MikeMayo

a update the this by branches, And middle you the said states just XX quick build year. of out into lower the on

JenniferPiepszak

Yes.

of we'll Is be in July. by Yes, So me. end Reggie for that all lower XX is right? the confirming

be branches the XXX down We by market slowed we about year. But XX going little XX will lower in expansion this be that's in bit a last got all by to end of We year; COVID. July. about opened

So company to that because bring bank in remain opportunities into super the the commercial bank. course, all excited the about of value the incredible deposits, And private just that. not it across brings

if And deposits. is business will, so not just you the case about there,

Operator

Your next question Erika Merrill Lynch. of Bank line comes the from of Najarian with America

ErikaNajarian

this Hi. got on from a Apologies for prolonging the just lot question call. I Bloomberg investors.

Just waiting time GSIB the some for we the question it first been have on now. wanted recalibration seems another to way, like react for

in other revenue of and opportunities. taking share with your the sheet clearly, hand, market expansion comes additional balance On the some generation

the any have the XX have all up basis move to sensitivity What does in from the wondering, XX% get XX%. if And that and if CETX sort outlook, that normalized, does so that's of points we move don't increment? investors to meaningful, what's if up floor are of is any at calibration

JenniferPiepszak

the time, made reality if waiting part we not up, so move obviously have be and I would between III and GSIB there, for a very been waiting But has is XX% Okay, so here comment for of to GSIB for really has a that there been only the we've because it an which can't Basel a very but that being will much we it endgame Erika that recalibration also time. been long recalibration know have long clear impact. on that

offsets what yet. to potential because so are we will there we we were And that they know unable be yet are not don't manage --

Basel X.X%, said, III we continue constraints. an but we to closer And we believe buffer. wait to we capital of to So in we scenario can as for lot offset endgame. helps can be Again, then awful that it's believe GSIB I do manage dependent, terms to an manage stress the which do

So we know about different. XX% we're thinking until that number something's

JamieDimon

XX% we're can to at try keep would we're add, do pretty going finally we And to I just sure and it.

equity, we're I'm what If go not XX% I But our it on is. X%; by X%. about our and the like goes get that did up worried it. up, And no goes XX%. we if tangible earning capital the know confusion return ROE don't So to

just have referred and So will underlying think I federal you be have temporary, and returns. find will importantly still business. and and great the that to margins, way slight I confusion. this, build over to great is time. strategies not results this the even we what I But get we products, It's great other a really all Great shareholders. the app, returns that And low the most are The shame that those service, good the tactics franchise. good anymore. mean, fabulous that's stuffs But is It capitals good run a branches, managing we time around railroad control about to good. don't great services, is understand the

do have and loans, CECL it it it's -- American of are deposits, over the calling cash and distract are trillion conservative $X.X shame get? and we would or time cannot have I've $X We want and economy. trillion Much $X.X trillion a How does and be growing spending over mentioned marketable from we intermediate and you one SLR securities. lend. deployed to

JenniferPiepszak

agree. I No,

needed market to Thank that. think I the you. hear

Operator

time. this further There at no questions are

Jennifer Piepszak

Thank Thanks, you. Thanks everyone. operator.

Jamie Dimon

you. Thank

Operator

for in call. you Thank participating today's

disconnect. now may You