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JPM JPMorgan Chase & Co.

Participants
Jamie Dimon Chairman and CEO
Jeremy Barnum CFO
Erika Najarian UBS
John McDonald Autonomous Research
Glenn Schorr Evercore ISI
Ken Usdin Jefferies
Jim Mitchell Seaport Research
Betsy Graseck Morgan Stanley
Steve Chubak Wolfe Research
Matt O’Connor Deutsche Bank
Ebrahim Poonawala Bank of America
Mike Mayo Wells Fargo Securities
Gerard Cassidy RBC Capital Markets
Call transcript
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Operator

Good morning, ladies and gentlemen. Welcome to JPMorgan Chase’ Fourth Quarter and Full Year 2021 Earnings Call. This call is being recorded.

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

We will now go live to the presentation. standby. Please I’d and the Chief CEO, Jeremy time, JPMorgan over Financial to Barnum. Chairman Chase’s Jamie like this call turn to Officer, At Dimon; and Mr. go please Barnum, ahead.

Jeremy Barnum

well next on morning, reported disclaimer results, the the as But growth loan with Starting full a some this quarter page both Investment back. and page X, year. this spend utilization quarter-on-quarter was growth, another income exceptionally see X% presentation cover AWM operator. our have it indicators quarter, quarter refer longer ROTCE an in billion, as coming pickup everyone. as card, on seeing we time of of slightly good well also have in Banking, growth, we X%, the Adjusting for to ex-PPP, more in the of strong you, in and driven from reserve income for please X, IB delivered as $X.X driven X% home was as revenue billion revenue an and fourth results of Good of offset Net Revenue net as higher NII, lower is portion suggested These advisory. Thank outlook last credit in fourth on the $XX.X increasing revolver talking positive up a detail XX% was and strong year production significant year-on-year Touching X% by partially was included shortly. $X.XX CIB available quarter largely quarter billion, our fees the down in CIB by It’s a fourth particularly website, Markets. to X%, and AWM. in quarter. on we’re well for and interest we The ROTCE with lower as about cover NIR detail this XX%. quarter on billion a to C&I. this, Markets On delivered up more I’ll M&A, mostly normalization on $XX.X offset lending, EPS a highlights, and which primarily by by Firm Markets and few quarter. balance sheet we net $XX.X some year-on-year. release, of started And

that You’ll as that Markets, page excluding as lines some said we’ve be you’ll way with quarter show and Markets added third Company. more standalone we notice NII before, outlook. the going how line memo we the as will this about NIR revenue, talk to run which forward of see the this we well total to later consistent and is this is format this We’ll keeping the

are Markets at up X%, If you is basis, same, up little reserve Markets but net and is or down higher X%, different. the billion, up a is $X.X the Expenses on reflecting XX% the are things of Markets a billion numbers were NII benefit normalization. on this excluding excluding compensation billion $X.X NIR XX%, credit on costs of and releases. were $XX.X largely look drivers

$XX.X at due And on the environment. releases. reflecting return quarter, year delivered of full common excluding We XX% income the in more resilience net reported macroeconomic the this then, and of tangible $XX.XX, on page Firm a or XX%, on equity the released revenue to We a X. $XXX.X billion of billion, Looking results reserve outlook $X.X reserves billion. page continued of onto the balanced X, record EPS

of still our of but constructive, account the environment. remaining for uncertainty potential various Our reserve sources and outlook of the result downside features as balances remains a abnormal economic

billion $X.X capital and we net consumer each banking with billion, of distributions releases up up but XX% XXXX outstandings by net and contemporaneously recent lower slightly, was some line $X we versus XX%, ended growth but including With sequential Combined spend on reported acquisition balance quarter nearly year-on-year, the about card, home compared and softening community showing and investment credit quarter and XXXX. X% versus travel year-on-year, sheet fourth were lending in remain a client income CETX Omicron capital to $X.X business with asset the page of Deposits let’s with balance between production performance in XX% of CCB key in down consumer $X.X on starting go reflecting of businesses, higher X. and of and entertainment was prior are weeks Card seen debit to including spend split the that, our drivers X% margins page year-on-year and flows. X, fees $XX.X in billion. and repurchases. ratio ‘XX were were and ‘XX, reserves billion quarter in the XQ up year-on-year evenly to higher that, On the with up reflects of assets in and with up billion sheet partially quarter. X%, banking. XX% X% costs the have ‘XX. XX% wave. Many Revenue was up offset versus management sequentially, market XQ of of shareholders, Within down

year-on-year was home XXXX, pace bottomed year-on-year. up down to lending, it of However, with In quarter originations, balances see And were up that totaling have quarter-on-quarter XXXX it’s another promising billion, growth then, rates. strong $XX.X in May XX% since as for slowed. but prepayments X% loans X% kept while they’ve revolving

it fourth X% lack to $X.X the up average volumes. was highest and up several decline a were increase fact, originations the XX% in since down year-on-year X% After resulted and in strong year-on-year. refi supply vehicle auto, quarters, quarter-on-quarter. XXXX, quarter purchase of driven billion, loans by In in In both

overall, marketing. X% as and and on auto, compensation, $X.X So higher up by were loans billion XX% continued up card technology expenses as ex-PPP, year-on-year sequentially, and were in of driven year-on-year investments well and

XX%, quarter. and reported full the prior income year-on-year, of of revenue year, strong net record year maintained income throughout X% one elevated for $XX.X leverage we rank primarily And CIB $X.X strong in X. performance with billion. billion XX% from And loan up were fees a X.X%. billion IPOs. up equity of specifically In number underwriting by active Debt deals. of fees acquisition underwriting, revenue year And volumes the full performance primarily the for driven were of page in advisory. a and were our the XX% financing. wallet net quarter, IB billion fees revenue by on midsized in that up time was on Investment driven was up CIB we record consecutive the Banking on by Next, fourth $XX $XX up advisory, to for driven primarily linked our it share up an versus sequentially. all benefiting $X.X market, XX% were continued XXXX, XX%, M&A third billion was

down markets, last continued Prime the as was continued commodities. rates, in derivatives. markets as year XX% driven quarter, revenue, more X% equities. Markets, billion, $X.X a in than by quarter year-on-year difficult down as were on performance year. down and currencies, revenue trading performance by early favorable credit a billion environment total in from strong fourth trading Moving was last Fixed $X modest more well reflecting XXXX, strength income to was in the in offset in emerging up Equity to of XX% against Compared normalization record weakness were X% we especially a

some the up ahead, strong record. revenue an normalization For It And at do Banking equities XX% all of was modest was we particularly full both for wallet year, looking XXXX. $XX.X Investment billion, expect a in the time Markets. year and

up equity compression. the of $X.X the pipeline Security by year-on-year. deposits, billion, volume And $X.X in upfront. benefit expenses. from year-on-year not for compensation year-on-year, purposes costs However, growth due $XXX And of reserve on of remains year-on-year and mentioned fees higher up as overall X% offset release, revenue million, was of net Banking, the to were was Payments excluding as higher first flat the revenue or gains robust. quite margin was credit well Investment by XX% predominantly Expenses quarter up deposit driven related and were I largely legal billion XX% investments. $X.X services billion

releases originations, loan and were investments billion up seasonality. X. by Revenue on CRE and and loans of Investment to acquisition due Deposits expenses. primarily C&I X% related higher utilization financing. XX%. and markets net largely down basis driven X% Commercial corporate our year-on-year, record year-on-year and sequentially continued And Expenses $XX on business, up payoff with revolver Moving of net originations lines billion revenue, and was benefit middle X% X% banking. were up in PPP. page higher and complete points. of M&A driven X% up AWM up Banking by were by Banking XX% $X.X volume on loans X charge-offs to ex-PPP, sequentially, of costs Banking credit related higher increased net with reserve ROE reported up short-term X% billion X. revenue activity. new $X.X driven financing an Loans were on of to year-on-year $X.X strength million, page And were in and Commercial of of net client a excluding income were then, by offset

were margin reported management were was by in X% year-on-year, up XX%. of and of higher Management of loans predominantly income fees by fees. billion XX% higher $X Revenue growth net distribution & Asset Expenses year-on-year, and compression. compensation $X.X offset billion performance billion Wealth margin as a and of pretax deposit $X.X up driven deposits with related partially

X% classes were $XXX by net loans strength and were sequentially. and of year-on-year, and quarter-on-quarter continued XX% long-term up channels, assets lending, asset And deposits of respectively, XX% were up positive $XX $X.X a billion up XX% inflows client full mortgages and across AUM and custom of securities-based For driven were the higher lending for net inflows market regions, totaling while $X.X all levels. strong with in were the trillion finally, year trillion, record term overall billion. quarter, and

rates, million $X.X corporate Corporate of reported investments. net $XXX of on million, higher continued million was Expenses was of $XXX up $XXX a million, was loss to year-on-year. NII $XXX primarily on mostly to page net legacy And down offset loss million, due lower down down on NIR by billion. XX. Turning $XXX equity Revenue gains million $XXX deposit growth. were year-on-year. primarily a

performance over close as period, COVID step we and XXXX, books look it’s and pivot XXXX the we years volatility last medium-term at through and discussing that, the outlook. the on take the important to of to few a then think the the back with So

the page XX, is to reserve releases stability what volatile the very out XXXX and when period, builds turning returns subsequent strip of you out So, and revenues and in both stands XXXX. a especially through

offset of headwinds on significant revenue growth was bottom the rates NII, partially also higher overall card largely environment page, see we’ve in at management year. nearly the regions by the fees. XX% on not expected some significant and much If in you across products extraordinary growth performance the left-hand IB ex-Markets, XXXX. saw revenue with you as benefits. in strength This we throughout look fees we lower ex-Markets, and drivers from market the discussed of normalize side did Markets, NIR the diversification CIB and that XXXX as and as And AWM was revolve down

modest when front well consistent quite proving clients the growth, serve once notably, JPMorgan effectively, you stable returns, risks saw So, our and in in control, performance power platform. resulting of look the staying of Chase in good well that them the we as areas again as across managing Company, we the our to revenue

performance the to and investment further with to revenue prepared returns next an ensure strong for designed our turning we’re bolstered strategy forging the that page. long-term. So, ahead consistent in The confidence have

see On can you the side the expense of XXXX. the page, from hand to XXXX drivers left

some attrition. effects expect employee in look catch-up middle those structural. that of for of And and and that bar volume modest is T&E growth first COVID-related growth lower the in we we the X% over as elevated would forward. as two-year some example, spend temporary $X.X while The effects the see we Then, And billion bar period, is expenses. is do includes revenue-related including,

in Wealth performance. Banking, Markets Some results and incentive in of and significant compensation Investment seen Asset increases & primarily seen driven are flows closely Management, more we changes exceptionally is in remember, where and changes of have strong that the appreciation CCB. compensation, market where major areas a in by we’ve And portion and lot AWM linked from strong to

which distribution markets in as So, because are world of And goes gross-ups. volume-related as investment this all to CIB goes one Then, some the there $X.X don’t result with a previewed look of with been our longstanding this billion, is includes bar is the non-comp some opposite are then, and agenda, forward and the last wallet of time which and of of are bottom last plans with revenue way. expenses line we’ve this priorities. and such true offset AUM year, brokerage you versions fees, some they’re executing according neutral of assume because which bar expenses the where also you our consistent largely as fee our way

You $X.X discussed. the can of billion investment billion right breakdown page, categories hand that on the the see we’ve $XX.X spend of across side the total often growing to the

recognition, data aspects to encompasses significant as as what’s centers. really we’ve continuing We’re expand are to our tech our is such terms still full year here delivering spend half in note in secure and to AI which modernization in returns. part dollar increase these to broadened Then data where second our include quite to development investments, the make network. adjacent which and current broaden the as means in and just than excellent of marketing, our resulted spend, while comparable of the as analytics, and ability tech to year significant distribution last future XXXX. powerful footprint a reopening physical our more reflecting are tech, of spend the And well And software the designed

important bank XX the We’ve the with of investment over contiguous our across U.S. examples to in expanded distribution are an pages, So, all states, double some to starting areas next our doing, and on expansion click what the plans. branch see milestone market marketing XX. few page of and thrilled we’re into let’s reach first be in these

a to UK the journey international also XX we multiyear We China as Chase UK, where expansion, part launched the markets internationally, a although with CIB Commercial Bank both on our seen expand continue of AWM and this including impact to and before overall. in progress measurable September, our we’ve since firm in expect businesses, having exciting we be in

investment penetrate really geographies We just I the and sectors the of banking where private to continue better secure as share. wholesale said, banking, we Company. to continue is management, And opportunities hire bankers footprint investment consumer and to of have our the and of advisors all wealth believe strategy the in we to and grow point across to future

So, our see and not claims the the we’re market shares short-term can outcome are robust the share causality. But broadly as of growing making page, at about Company. across you bottom

XX. page to Turning

a of the change debt understand It’s of foundational where or of and we to all In technology which addition our is key as we $XX billion strategic critical over category. bank strategy component addition of annually to important to and us of it, call is our about investments, technical investments, spend foundational spend. that distribution-related the with in half regulatory-related other modernization the includes investments mandatory, initiatives the investment in help retirement that sometimes to what’s face future. About being half

delivered our the reflects that upgrading cloud legacy extract infrastructure buzzword to of On well together and you and the which migrations to the is architecture, our Modernization, Underpinning can strategy Firm this. environment. if the as in against includes customers proprietary it developers owners end-to-end iteratively a a control left enables cybersecurity our sound the clients when and well more the products continued look through with maintaining ownership. in as popular working ways us on to all data and the attracting emphasis are acquiring best as it around it side, business with model, and product cleaning hand and is all set modern that a detail this value protect by then see operating these you that modern data reality that, talent and days. But which obviously and it, some top as exists simple techniques right get skills, deploying staging

Moving to the hand right side.

of customer identify And The and critical investment a and with problem to to with client-facing our buying. other it’s attacking businesses resolve and the the spend experience. innovation across we’re half products. improve believe building, of drive points partnering user the and We combination our pain is

few so, examples a that. of And

with digitalize Chase cloud been bank we’ve product to MyHome launch digital side, retail able our like with the Chase a existing On recent native and launch. offerings applications UK

on we building and innovate capabilities. real-time continue side, Execute to trading wholesale the Onyx are out blockchain platform, through our On payments commercialized

acquire allows partner to modernization or can digitally centered our page. you addition, In us with of more efficiently this companies. more And on several examples the see

scale. compete whether players XX. So, starting the with taken the out ahead, the or talk doing together, we are at our on so can of that competitors innovative quickly creativity year investments let’s strategy outlook and critical there, but to we’re the about the of pushing ones innovation responding the With to envelope our ensuring most that, and page

in about target do medium-term NII, see ROTCE Daniel’s XX% As the for We and remember the as we markets that including XXXX. talked as as have investments you’ll wallet, to we capital impact December, benefit well of additional to from not comments the headwinds realistic off pressures. likely latest of is expectation make a the tailwinds the and will an But tailwinds that expect card the normalize the to increase. exceed inflationary rates some revolve implied as elevated continue

higher for near-term central our continue medium term in challenges case ROTCE for business investments. despite continue growth, we driven believe XX% these our the However, and outlook, rates as as by we to to do move realized potential the

tailwinds. give let around So, could you more or forward-looking try drivers that to detail us headwinds be

So rate the curve. first,

to X.X% prices in forward rate hikes case basis-point the three a does next funds Fed only target central XXX over years. return Our current a curve require not the as

somewhat would the that. be assumes a good otherwise to higher are an central with respective rates fixed whereas case, to with lot. current constant more post-COVID And expect illustration, XXXX points reason of income partial impact is we sense our a current and symmetric relative impact ROTCE In whereas in there why whole, XXX relatively at have resume to produce return of rates in outcomes performance terms might levels. and the reasons it assumes feel markets of thereafter. relatively downside to assumes rates obviously in will the The range growth realize any the offset by of together number case. we’ve normalization. on the more a our be stay but Company we in as or And the a this trend a the And sub-GDP rate the that course, markets could are least quite get relative reprice credit in and spot healthy XXXX near evaluating for favorable for combination a basis from rates, as impact continued in see paths on with could are there, term. rate NII, upside a yield we to forward normalized driven we of taken, of the elevated line XXXX there, a downside and which course, as reasonable to experience. XXXX, central plus cycle hiking rates over different case there curve, revenues hikes matters banking, curve, of upside the of In beginning growth being outcomes provide share banking of are their here record a what that Assuming we the years isolation would and why levels steeper minus case about deposit revenue modest what growth from In the particular,

in from continued assume even was return. from revolve, consumer in relative discussing relatively as But we’ve central balances revolving healthy averages, rates, to level we strong who spend generates recovery approximately shift As of account pandemic worst card relative a source And revolve started case. points with the which combined lower a the to basis has emerge in resulting to could XX central of a there revolving the be as the of surprise been growth permanent back long-term worry recovery and those scenario, behavior, in we economic the depressed strong that balances. In sales acquisitions. pre-pandemic the constant in could our downside. our that, case, And downside about structural stay big moment consumer, of are of

around for the obviously we X% elevated that is the on hopeful, Of and But rates likely represent inflation basis will course, that points finished On page, revolving where even the operate is let’s skewed our GSIB we believe the downside. driver pressures relevant. the downside. touch in an case case. benefit, there reflecting for we which no then, higher GSIB a expenses to faster though recalibration where central increasingly could in more CETX, inflation rules case key scenarios, And could which more risks from second, while on could recover And capital, modest much is higher but leads the not offset balances XX of another on bucket to X.X% central it’s equates be good which are rates here balance, at the assumes us. to year upside some increase of than we be to under that a a the inflationary remain

as by rule overall that financial the GDP and two growth combined Although binding that growth the growth of release until buckets. system GSIB factors to XXXX represent opportunity This in point is a XXXX. proxy original QE of out reminder, become deposit full not does good the a

page. absence be would each worth a CETX is in XXX in mind, tailwind. be simplicity, So, in could that level ROTCE. change we clear, we’ve in recalibration the points be the And of With in for on analysis normal basis those, still X% any to credit assumed the a of the environment bucket. X.X% And about the

a case target. earn of the we medium that, central to next the that over step remains term. below near-term about we talk expect modestly let’s light back, one XX. XX% In in when years, page all to on But our take So, two guidance

$X.X billion to Markets, $XX in XXXX, be XXXX. excluding NII, up expect from approximately roughly We billion

relative that change when we is be how to previously distraction and can Markets’ of be a as neutral. a this ups of guided likely downs upfront, the to majority the variation feel NII line that vast mentioned I is As we’ve bottom

of Looking would later year more that expect XXXX, $X.X approximately the to the this steepening about and yield suggesting NII billion from key a the market with major at drivers factors. that are few of three reason see for we hikes Rates, the there effect. curve, implied

You curve numbers spend the back towards revolving new intuitive. expecting we levels, bottom the and sheet portfolio earnings end can there originations see partially shown third to an use NII higher what’s growth the XXXX are of to both the composition. the at to from and where happening at billion of as on bottom offsetting those what lots conditions. predict in you under XX-K, note mix, find be right, year-end XXXX. the to And the you rate trying and and would recently, we are quarter if you to deployment risk and And and $X.X high PPP. reflecting look the the yield is XXXX factors in Then, disclose level, of at reasons quarterly we’ve benefiting at of our filings, balances the right securities in the drive should we careful roll-off EAR to But increase relatively also a of in estimate into expect curve and balance to changes changes real-world

to capacity full rates, of of Company. generating So, while we take to couple on may return the of years NII a NII increase it do path expect the the depending to year-on-year,

XX. page to Turning

are As from let at couple are we not going to distract of to in outset section, headwinds Despite ambitions. to returns. and sub-target said critical of the this we’re for going years we we temporary continue this, us a of strategic invest

categories. we across billion And it’s expenses, worth $XX a an of year-on-year XXXX, while or noting, actually adjusted billion the about at of trends into post in is X%. roughly year-on-year of XXXX of reopening looking go the meaningful $X breakdown, the annualization is increase portion half eye-catching, the increase we various from second it so, And expect before

first on is the expense So starting with the increase. page, structural which bucket the

similar effects point on non-comp, I run billion acquisitions our which mentioned we is increases. non-comp. growth with I wholesale the of modest. are As volume to ones the The IB And time, revenue-related extent well normalization of run themes a keep discussed And the normalization I of impact in Then, reflects and points. as most AUM inflation from adding our some would non-comp of here. is impact and comp which pretty for catch-up and as T&E. we assumption importantly, expenses at this alluded both expense seeing the this year, I should compensation just for includes impact fees is are a another we this $X.X At rate higher earlier, as of volume in a that note and be we rate modest resumption and assumption tailwind that both assuming some depreciation. auto consumer, to couple same have is lower Remember investments, From expenses. and the perspective, there to for our capital as by well earlier. lease some the mind both are the of Markets in markets of comp revenues, of But the offset

moment up, good future generating to these to stop earnings pressures to and how to the while strength secure Company. have capacity I investments the are As note another the wrap critical privileged also making absorb it’s and we inflationary financial the of

on which highlighted importantly, XX, communities, executing here the on on also over been of the last some only clients Not strategic achieve priorities. continuing page the are years. happy our with to to results, in So, what and business two but able serve closing, page, and we’ve we’re our customers,

and the of better build position and as about As continue may felt to we we invest look landscape. long headwinds our through And the continue Company term we’ve while pandemic, for this to the dynamic there never to and innovate ahead, near the consequences we in will the this strengthen work franchise be competitive term. in very

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

Operator

Najarian line Instructions] from coming question is first UBS. And of [Operator the Erika from our

Erika Najarian

and you, on Good Jeremy, it’s Hi. question it’s morning. two-part on question for a And guidance. is XX. my first this page

deposit And right, contribution. of markets give if in The well about naturally could of timing us more size that second rails sensitive? securities business presume missing magnitude the you this the of that question part and of us sort the the normalization think markets white about is first light in in terms your size liability billion number as clearly, deployment? beta we’re versus of And CIB help could modest you box, you as to that $XX is, to idea that is, this comments CIB

Jeremy Barnum

Right.

Okay.

three in questions there. So,

Let a time. me take them one at

the So we’re going beta, generally in cycle, the environment the hiking working be be you a function of hiking is else end The I bit can But that of reprice is some the purposes competitive assuming to going guidance, day, different the similar the for environment. little at the all of through that is prior to equal. tell a cycle to important this experience respects.

the it think in this flushed time with a before. with liquidity system way I So, that is is around deposits, wasn’t flushed

reprice slower. the could at margin make that a bit little the So,

direction. On could entrants and especially in other hand, of some with go the the different, the the that other is competitive environment bank neo

prior of reprice the be the what experience a assuming it similar we for that’s to it be. So, But the in will guidance, what experienced purposes we’re will cycle.

a guiding that of really is you’re $X I’d getting particularly contributor come In card. the future in we in from terms NII, modest like couple of suggest. Markets is which relevant things there’s of versus narrative, growth positions, by looking on deployment, XX, And point rate loan deployment avoid to whatever, to places, lot page deployment it your is a explicitly to the for NII bulk whole in at picture, securities of which if give. But is you is billion a interest to distracted the the bar number. of cash obviously, noise be billion and big terms there, something or the hikes need Brazil model kind to The $X could Markets can then, like of of But, not going example if a decision. situational

in NII supplement. the the disclosing for So, at supplement, if you time number look actually we’ve the some been Markets

time time. you pretty actually a that have So, series of number decent over

there’s against funds you rate, that Fed actually clear there. correlation If negative thing that pretty see you’ll a address the

And any really the Markets will can point relatively moment, mix rate sheet out significantly, to an policy in environment small NII just of change that. from conclusions so, draw quite the like balance in the that I even some can changes. given you of But no changes

So, it’s emphasis much on health too against sort like of that a projection. putting warning

Erika Najarian

Very compound My capital. on is clear. question second

of is And give could know just SA-CCR, into give -- GSIB adoption you an medium-term you surcharge the estimate that impact could that on to if that January take XX% us X.X%? clarify, account I does an If us ROTCE the CETX? Xst for is your update

Jeremy Barnum

Yes.

first. me let the one So, do second

So yes. in short,

recalibration we the XX% assuming are in any not So, said I as script, in target. that

in that component So, that GSIB equity of number. the X.X% mean does

impact In of terms of SA-CCR, the standardized about $XX of SA-CCR was RWA. million adoption

So, I think that’s CETX. if of XX points like basis the math, you do

Operator

Our next from from John question is Autonomous coming Research. McDonald

John McDonald

you’re GSIB. how on SLR does share a quarter, that. rising reduced for want this the Maybe I Jeremy, what discussion up levers issuance on obviously which and broader preferred to you that buybacks, it other capital balancing have? managing mean constraints, the And the and follow Hey

Jeremy Barnum

Yes.

know, bottom you capital as terms of of share stack. our So, at the buybacks, that’s John, in

to So, as invest of M&A going the buybacks. robust all that ahead other to come seeing business extent those as growth, are opportunities the to loan in potential well we’re opportunities,

and And sort And as outcomes, as of that growth the the your that are in of investments about -- being of want of on can of our so, as happy the frankly, used I the own that. the for we’re quite next you flexible know, earnings we’re a terms function buyback growth rather want draw the conclusions be the SCB, of as well plans build. really loan the don’t kind for to just generation see future year, you some But making. in kind that used as minimums to well than we as capital which capital we buybacks. way That’s guide under

John McDonald

as this maybe or kind Okay. on that. And compound you year, the CETX wallets to follow-up, could of clarify also, FICC The could you then, modest normalization of flush that new where the And run any and you the follow-up. out? equities if expect color target

Jeremy Barnum

Yes.

as Basel depending see true. a expected mean, XX% target, remains previously see, factors. to and can that you But rule GSIB the in of a world and the assumes Erika Depending table. not the target on of a as where XX% that various components, function I other all XX% endgame, said the increases you And remains as something III the can the terms was some on the minimum. I outcome side, in the in So, to I depending off response said on second ago, of the closer XX%

that to range fees. markets throughout about going that And would normalization normalization the feel of were some reversion fixed then tailwinds me of that monetary environment theory. that of levels, mean, for some a we’re the robust. performance, normalization of about obviously with Markets. about pipeline think I could thinking kind will near you’d I be our very XXXX a seen if that bit have. of happen year flexibility in right And run policy But actually. in central banking decent organic a both the way a now, in the the thing could amount that little then, like we’re the good we as the of already feel to business. growth gains actually IB also IB there. I exceptionally sorry, year, a way ask there and that and fees operate to obviously less, in that kind say, asked we’re you in we’ve because some we down see is all share type middle and was in create next So, from talking normalization evolves XXXX bit the is little we rate partially in income, like to year, the really strong case we The the equities of And expecting We

Operator

ahead. Glenn Next Please Schorr have go up, from Evercore ISI. we

Glenn Schorr

expense little I a a breaks Slide follow-up ask on side. I if the XX wonder could lot out.

First, of much over the higher and made has XX% investments months. how words, How the investments is that through XX% related comp just structural straight either say, like you below? XX a that for breakout listed those made? I’m other of for question saw brand in that M&A ‘XX I of curious new the all In investments coming the items much investment. further you last volume, that the or entering to deals on is you, -- XX have P&L, up normalization, XX%, the or And if called the I But overgeneralize investments, slide. a thank used I bottom

Jeremy Barnum

Right.

Okay.

get Glenn. think question, I I your

run $X.X a So, done as number some last is It’s the one, you and to, rate we’ve into the contribution. allude M&A in expenses to the over modest the run that the extent of impact that rate, billion. months, has some XX introduced that relatively that

the head, I want say like million probably my $XXX or that. to something of On top it’s like

So, some it depending could a be more, little on bit factors.

that’s So, point. one

other here. different are is The point types there of that investments

the if part actually you example, in the and expense middle change as in marketing of reopening through come decisioning the lot So, of marketing at, the of that look expense of card, year. investments in marketing for that happened the the the a

agenda things that technologists need hiring the in that’s actually now, that investment we do thinks are do. expanding people, the places, other in executing of Whereas hiring obviously run So, rate. to we’re aspects to already

your So answers question. hopefully that

Glenn Schorr

question, fact is falling the simple timing with is a and as NII John’s of adds off you’ve XX% just spend investment The And over normalizing the short target. that going I multiyear high function a denominator, the you short mentioned of timing the shortfall, answered full have when capital question? run just capital markets with of question that rate question could people -- I up maybe very a I to it think if higher ask general time get the and of markets

Jeremy Barnum

is breaking the simple and question, think your I hear basically I but bit, tiny a think yes. Your up I is answer line

saying we background a background other as finished Markets of playing in in and as out, the as believe our curve includes should and normalize in we so normalization, rate all words, So, revenues of of -- rate as and sort we’re that expectation that of XX%, the continues ways, some the policy equal. of Investment run of with formalization well is normalization growth, to plays back environment sort Markets variety be with Banking else growth expectation all that we to and revenues out when rate

of I forwards see know So, long, mean, can terms you of what about when get to it’s the if policy -- of you in normalized imply you back more rate sort current what that not a kind environment. like

Jamie Dimon

is expect XXXX, implied don’t rest return about get would equity, obviously, rates more if add, be the you a we I in And the know really curve. be to increases XX% and competitive. can the our very exceptional. Glenn, very in that. on world I’d cautious I of interest Plus, out just like point I lives that want to tangible also that would to is

I say that that’s life, for tangible what good. of do guarantee we way, that. the is can kind of rest XX% By So, the reconfirming can on if my do, I would we pretty

Operator

Usdin Next Ken question Jefferies. from from

Ken Usdin

couple a of just you questions ask to wanted I more on loans.

of lending, I You down you’re the corporate wholesale-related were X% what lending, can commitments activity. seeing noticing if across kind mentioned to out that flesh wanted ask see just just sequentially. better some to starting you commercial you’re actually that

saying what strong we see kind are as you corporate forward? us So, just through the rebound can clients of on can just we how commercial And that and side go talk doing? and could

Jeremy Barnum

Sure. Yes.

So, utilization in in to an C&I even growth, And uptick to of I the But, loan are seeing in in remains we terms uptick that said in sort bigger as starting see it bank. actually an in script, the the of especially commercial clients. smaller the clients. are rates, skewed we revolver

sign. encouraging an gets that So,

issuance utilization utilization folks driving that chain of higher supply while as run as in confidence bit But who I’ve of be the CEOs hearing theoretically that teams and also all One really been relatively a the is should quite the those result C&I of a we’re heard else that sort of C-suites positive to growth. project terms and same compounding forward by inventory the a is from there for one time, you loan the equal, in who’ve things a wanting growth. at businesses receptive throughout that the world there a of investment-grade burned maybe are and been period. levels in in and to modest driver which, be that guess, where sort problems, high-yield of not run the more the low I exceptionally is is result, But higher can in capital a of clearly, increase inventories, markets permanent the have thing would, levels particular, pandemic issuance, recently, it still management

markets capital so, are And issuance. from well people funded

Ken Usdin

Okay.

which security of expected. is each question are just card servicing, a of little you. and color did little a of kind you on mortgage Thank drivers And bit zigs both bit banking, better. in zags give bit than fees. the of a us Second little on a just get were There please? Can more of couple down those,

Jeremy Barnum

Yes, sure.

So, there’s lot there. a of stuff in

So, cards. let and do me mortgage

see the if sort so you significant you’ll drop margin calculation it production in revenue So, of to a and apparently dividing and taking do mortgage, there. by an try in that margin on, do see you

the is prior One were result as elevated margins the flow-through loan-specific that. actually pricing of of drivers few of a the in the a there’s timing adjustments. So, of slightly quarter the

So, factor. one that’s

expect exceptionally the in and originations -- rates strong drop in it funded overall we started see of you new so quarter end we and you saleable we that see of despite of for volume would In the did actually the towards dynamic lock higher to -- fact as quarter, an the addition, loans, terms did on. was that

where rates factor. a the mortgage margin compression bit. tend little sort off with normal dynamics the you organic little of And of then see that’s selling there’s a So, a to in

mortgage environment robust. historical factors by next rates we still year, higher though but So, the healthy. a which bunch with be mortgage we’re year, quite next slightly overall lower $X predicting a you to is have standards obviously market a driving trillion number expect very weaker things And of there, is

line quite high. that And quarters quarter. significant sort imagine had looking of drop when then, a relatively card part. had to this number depressed we we quarter, it that what last is also that’s ago two where So, card, And you’re at was income relative in I the the

you’ll we card last of a had number. quarter, sort item So income, the for depressing remember one-off that

one-offish another have sort item, type we Southwest quarter, of renegotiation, the of co-brand impact the public. This which is which is

a the revenue that bit. to amortizes So, as But months. all is which, revenue you that’s customer the know, over impact XX expense, the background the to important line, of amortization comfort rate the card contributing income it’s of this in acquisition little note

And stuff sort so, in we of significantly, like the reopening of of part earlier, offers year, as and I the the in of in customer engagement, increase the point middle big quite that as part the mentioned XXX,XXX as ramped market up that.

so, And the that’s coming through numbers.

revenue that next customer So, of acquisition as XX%, of elevated around year for with revolve of a you laid central a with in NII we’ve for growth amortization out. look when full we year result, sort the case card rate sort the obviously, as actually reasonable at see marketing expected being and the narrative that by offset,

Operator

Mitchell So, that Jim question Research. from Seaport coming is from

Jim Mitchell

investment guys spend. the doubling you are Just

prior the in success seeing clearly efforts. So

you’re you subpar could standpoint alluded give So, seeing a bit being a you what Because to little from investment frame? discussion XXXX what picture and return kind just of still on on bit a time big return. I in us think little

growth investment ‘XX? in significant mean expect does longer So, payback spend and in is a you little that still the

Jeremy Barnum

Yes, sure.

And we card are at and measure that level, line question about mean, asking I we question we’re it’s back paying can talking this We is that and interesting. that time making just So, do some you’re the perennial be sure the what of were investments how marketing. how on that?

continuum. that of think as a I

part investments to that You we put have of sort with where of of data-driven, investment are into those all card the of outcomes that short as in of start card extremely highly set accretive very a marketing measurable sophisticated, decisioning have dollar ensure measurable that every continuum term. marketing and when we a

narrow stuff, quickly. things you So, we obviously is need those and type lot hamstrung there, is they’re of return we the from At it’s a financial end the pretty absolutely are is tech but compete. And which and and just And some continuum pretty we’ll impossible in things to theme signs them, there in part mandatory. do sense trying are precise prove that, of and know tangible clunky to it’s do the that a now. inefficient them. payback right be there’s of big that a get we’re If to other don’t that feedback future the we modernization when

of bit a of revenue over are years are doing that make. in of little And rate, So, in time because when revenues we run and the the of about horizon. they’re investments outlook the of produce the the that those our investments assuming we’re last actually decisions lot normalized we we’ve certainly making sense, that kind most what in nature. that the now made we But, important some will expect think not that is couple we’re many to that hardest a

Jamie Dimon

year, some the payback over obviously, comes sales kind time. And adding over much very what Opening comes know it of million basic. a branches, payback thousand people the are of is, but pretty time, XXX $XXX obviously,

a And whole to you so mix. it’s bit And expect about go up it XXXX. in just little expenses think as a should

Jim Mitchell

right. -- on All on helpful. NII. just just follow-up the then, That’s And a

now markets I think futures in are pricing four hikes.

If think do models? to four hikes for we that March, the assumptions. material I change in a is this year NII have your in three you outlook get starting in your a

Jeremy Barnum

Yes.

the use we bottom implied January at note left-hand will the is side look extremely footnote print, So, from X, of XX, if that curve page you small Xth. an you that

and give additional use right draw add it curve be caveat table mean, you a that your bottom the increase, is take So, conclusions. whatever the modest tailwind, that modest you But can I the a list very I current won’t and and curve should own long of modest. on and

for points something RWA $XX I math, you increase basis that basis I in wasn’t XX said wait of The obviously of standardized if that. the It’s before. next not points inaccurate billion is we XX confident when CETX. While I question, I the realized CETX. do said SA-CCR,

So, correction coming through there.

Operator

We question Betsy from from Graseck Morgan have Stanley. a

Betsy Graseck

Okay.

couple questions. a of So,

assuming in is redeployed outlook. going to how into sense duration on more Fed, your much the QT your impact shrinkage is the are a to currently in liquidity get liquidity as that balance you First, regard to the with pool? how then, forward sheet Could of you give look? thoughts to us NII the pool what’s embedded at on that going And right,

Jeremy Barnum

sure. Yes,

I balance expected there to QT this I look long quickly. should deposit growth on we’re So, saying. mean, know that. if ending closely, what the the sheet start of of a the point, assumptions assuming be of modest calling and that But now sheet the assuming what growth in between was is forget deposit In And be us, assuming with reduction the growth about that’s QTX sort of any as I from lots quite end exactly than of a our that. words, at going next consistent result -- year. as the are are pretty and market to accelerate impact as system-wide they’re the not be year therefore, people that this pretty amount function is of to balance obviously, beginning lag hiking And a But a it. growth you is ultimately I’m the But Fed starting now are the case, function Maybe of QT, point size. because primarily QTX. tapering, of of we rather important cycle acceleration modest the still of other

of deployment, the in quarter. already that was then, you some deployment It see so, the of in And did curve. supplement terms can primarily front we in this the

mix. at increase modest as and about being we’re deployment that cautious $X that out a securities still page buying of balance XX, as that’s growth And we really again tied if call So, noticed duration. driver you you billion quite look sheet

little So, duration predict, do dramatic. forwards might be it’s if we a be shouldn’t as might the develops that curve of reasonable bit assume to but we too the rate it buying --

Betsy Graseck

ability they in just Okay. giving you incremental the to my requests X, percentage like then, ask but numbers, words, leaders’ this up, billion got mentioned I’m asking them XXXX? everything what And XX is X.X Jamie, another unit should question, them of investments, materially at giving for they are fully and And And into you roughly rate the the much know, on is, different U.S. this uptick you’ve giving percentage bottoms should to In a does in second from of question Thanks. my do that that you I question other fund we get the how from you’re that built year? grow question kind is what consumer? And what do point here. need subset is which here year? But off is that $X.X slightly this assume a expect next just I this you -- them we for what call. business year. your are cloud a got run is mentioned

Jamie Dimon

question. that can you answer at XXX% within it’s do? I just a do table ask sit because people We We not and what the tell think simply to people do some table do only capability you do. sit can’t X. So, our want at you and things of

that’s XX You number at or that. And same one. time like can’t attack the funds something

of is we want necessary. kind investments. goes those to rigorous So, make kind through as one Each of process

about don’t one like talking do stakes. an remember sitting table are people opening do was I NPV. I the them and and around table do of NPV. digital just Some day account

your client stuff just like properly it and serving get that. done. Just That’s

said, Jeremy XXX% you to doing and the States. so I in It’s as you’d sites And overseas. the I mentioned the -- It’s more that countries, we products. be all like XXX if it’s branch should of It’s mean, want more things do owned a XX -- Company. lot United

what that. And and So, it it stuff your the like part X, have that, meet of digital you NII was to quarter do or next question you something or if of not consumer be wasn’t like -- second Y Z may that. the

there numbers a Pieces We’re as all already is that, a we pockets you as not and march. going but start soon to hard. there. journey, possible. and giving to That’s real have get want it’s gotten And that and

have parts the datasets running of applications company lot of guys bubbles the you there cloud, a public the that’s expression there. pointed parts it -- and certain the a somewhere call And work. of ahead cloud, in certain So private is of companies, on some already bit other little

doctor have because are to We’re then expenses. do closing going more, XX extent responsibility. to Those do we a other will our that bubble we the opportunities we not to just more. either disclose And got

think global the I assumptions economy. point I and also should these of I capability. companies to G-SIFI, extraordinary these be you regular Jeremy, out, have And global be recalibrated other around side, mentioned things okay? mean, the should for We SLR, the Even capital. the want most recalibrated,

what capital and treasuries deposits against and capital happens. Fed let’s put you If see

on conservative. kind -- we So, of that, we’re

We’re and good around some being expecting But, questioned are are not relief. markets. the SLR going mentioned were that to the issues that there about questioned of be being a acknowledge for lot of were yesterday prospects Fed SLR even that not folks we

Jeremy Barnum

and I going And which the to basically thing, than aim whole to hope that. this would -- say same for the thing Company to better Betsy, only I to like get X. mean, was to add want I much we XX we that, ask manage the

point a actually ton it the So, important And a I the investment the lot scrutiny of That’s think type of have what two organization discipline three authority. is there. in works. not is with down I that happens certainly of way the levels don’t that or agenda, of

that’s now, the measurable, it, the where do case operate right of happen discipline to where the this it’s really to that’s have part whether about day right Company whether it’s the whether So how of priority and capacity part day. returns conversations to the the in are we sense makes where of And the of do the now, producing returns. we the whether

Jamie Dimon

spend another can would second. in like $X a do I’d get If and to billion to cloud tomorrow, the we I you example. give that more

Betsy Graseck

pace going of on, this possible see step of the But, of that’s I the it’s this we we type year given mean, and -- function could step everything see competition that again. the function impact

Jamie Dimon

possible. nonbank competition, and it for if lending there’s to fintech the there’s the PayPal the competition, competition, It’s a competition, win. good competition, Street competition, about competition, lot direct global intend And it of there’s happens, But there’s a we read it’s competition, Jane will competition, be [indiscernible] direct reason. the I [ph] competition, fiber

you a spend few bucks. guys sometimes And

Betsy Graseck

I got Thanks. right. it. All

Jamie Dimon

increase. actually job upon want competitive couple pay. want and embedded we’re last who delivering be the more $X extraordinary There’s managers the way, stuff. an billion we it. and that, of compensation very in bit will squeezes by I in top to a And too, margin years to we merit as we’ve shareholders, There’s a -- be said, traders lot emphasize, and so this And for always very, competitive going pay. to a and bankers say, for little did be And our that

Operator

from have up, Steve Next we Research. Chubak Wolfe

Steve Chubak

IV off start as requirements implementation, So, Carlos increasing highlighted banks. the select I question speech, XX% capital want as to on much his for a potential Basel one-song with capital. in for

a the thoughts While inflation could was higher the just provide just Basel And RWA of IV handicapping guidance? preliminary updated from you’re how what you seen that we is hoping haven’t ahead Fed, ROTCE proposal of to contemplated extent risk I formal some adoption? in the

Jeremy Barnum

Yes.

Steve... So

Jamie Dimon

Don’t give too much...

Jeremy Barnum

question. It’s fine. is reasonable This perfectly

okay. So,

So, go. you here

the at Basel so-called which III them and a credit look you the endgame the else of components you of change RWA in you’ve all state IV at tailwind. the proposals, in got factors, look or the isolation, Basel when So, conversion is equal current

central is it’s potentially and the headwind. for got folks introduction those a review that of way, all depend simple risk trading of RWA you if operational to some conclude But, And then, And a at but things fundamental you quite complicated the of bunch it’s by things. in sort the case RWA. estimates a inflation. going look standardized book, a there’s you’ve institution You’ve institution, which got into capital of will of of couple

more all the plays realize… enough important saying there’s the things And capital. global U.S. the that it’s it First, community need of context actually has doesn’t system at to in capital. regulatory or least And in the

Jamie Dimon

to conclusion. by any the way, that real anyone does at Which come analysis all would

Jeremy Barnum

Yes.

to realize, so, it that Steve, additional obviously, know, there And is tools. important as you are

that RWA, with interacts of of into one standardized the and important so double Collins is are interact the forth. buffer Floor with the as most tweak, So FRTB fact opportunities that standardized and how risk introduction which potential in the then operational capital well there so turn, against output capital and the how generally floors as and on counting to stress more potentially

this world, Basel capital we point increase expect the than more RWA we the carry So, and are the we itself And levers the that of of just to overall inflation. that there tools need the a all dollars as III of way endgame is in the see company. to and don’t here

Jamie Dimon

conservative G-SIFI. And the it’s in you were saying, X.X%

Jeremy Barnum

are ROTCE medium-term to allowing flow the assumptions. increases Exactly. And G-SIFI the we through to

Steve Chubak

now Thanks for and on topic, for punting that IV. clarifying Basel the

here... Just follow-up my for

Jamie Dimon

will We the things know numbers, actual them. when very aggressively we aggressively very like very, manage manage those

Steve Chubak

Fair enough, Jamie.

the track have that supports that. record certainly You

normalization. And my follow-up still trajectory speak your emerging you about the that we just and for for payment on levels, cited card threats rates? that return just confidence the are given payment rates? maybe thinking you pre-pandemic Just to card to elevated How rates level to card from personal BNPL see payment savings

Jeremy Barnum

Yes, sure.

bit various between But all So, and it’s I still, I simpler. rates rates to ratios. bit confused a these be honest, little get little think revolve a payment and

the you level If of you just for revolving and the that. take balances what rate back, at at you revolve overall expect look and sort of a look step we

things So, few there’s note. a to

the little balances. rate In stabilized. for some loans of stabilized. bit bit revolving or stays has as And a assumes meantime, has produced a several more case Omicron function growth for fourth in in quarter place. row, overall and So, basically blip Card in growth our in trend There’s card modest having that stuff. But a next quarters broadly, it’s the that in a of the holiday spend now, dropped central maybe less year the quite revolve a

of return of to levels. important not sort So, that we’re the that what’s about revolving pre-pandemic some assuming rate the aggressive is

fair revolving that its therefore growth share and simply overall stabilizes contributes of assuming card that it We’re growth. loan loan

the And And sorry, the the revolving getting page end growth think then, levels was has, forgot? in pre-pandemic very so, there XXXX another of of contribution on roughly. that to by that for central to you put part Steve, speaking, had the roughly NII the of another I I we balance -- question kind back case balances sheet that XXXX,

Steve Chubak

That’s sufficient. That’s perfect. no. No,

Operator

Next, Deutsche we O’Connor Bank. Matt from have

Matt O’Connor

morning. Good

you efficiency well, you the please? we and what’s think or medium-term target, costs what ratio, then on on As the assumed can as being about maybe credit XX% think frame help

Jeremy Barnum

Yes, sure.

at cost, credit normal environment said, in as that credit assuming So, I roughly a terms we’re of point.

sort charge-off mean So that type card would rates mid-Xs of of back low into thing. the to

we pre-pandemic, assuming slightly underwrite would some loss higher were said, we as time. to, we vintages over we especially get As

Jamie Dimon

as books And loan building grow. the reserves

Jeremy Barnum

Importantly, Yes, exactly.

So, environment I that of the with kind the environment way is should, medium-term describing charge-off we’re just turn, broadly would in a and I mean, which it, guidance be in consistently describe, normalized normal.

you’re that. And then, bit. me, the I that’s So, of little overhead a about ratio kind asking guess,

of that measure. kind don’t I love So personally,

it’s an expenses. often the of in revenues, more by it’s the output that’s not, input. than than curve. an not function driven than term, rate think is the more more of number short I not, And revenue a often swinging And

to back that to Fed makes assumptions we it But, using So having like great returns said don’t XX% said the funds will, to the overhead to get the has overhead right in be XX% do essentially, as we’re that up a like for the go a something ratio constraint. up consider term, a just before, long build proxy not becomes in to Jamie tool rate, rate, a ratio. it the deliver the number we management if it But which that company. that, for

Matt O’Connor

leverage implies of for big right? XX%, of mean outside the obviously, operating to ‘XX a for years again I you think in couple I wrong Okay. math pretty few Then of the way to right? ratio efficiency get the the years, because have leverage, operating back goes kind

Jamie Dimon

You’ve your to got do own okay? models,

Jeremy Barnum

becomes numbers, have critical operating criticizing lot way I meaningful. question. is world Company’s the the The the me kind you’re in and there but are what this understand post-pandemic we another for I’m leverage a think notion to effects of overall make. just where at asking, pressures, not of about not your terribly numbers it. of level you In investments of inflationary some a there’s

Matt O’Connor

just was on curious, up more go think wondering opinion. it it from up Jamie, quite Okay. why moved side you’re yet, -- Obviously, a basing bar, end And expected. will if expectations what’s that will grow gone than or you And if bit. a And long still I’m of I just mentioning hasn’t kind do have think Thanks. the up here?

Jamie Dimon

all we eventualities all, here. for of first prepare Well,

and either or which And is in more of XXXX at is the is the their COVID good trillion $X up, the respect in prices home and is of kind asset actually very be supply people of prices But which balance despite like suffering going them. years for are fact XXXX, of ever. wages sheet, fact it to plentiful, not Omicron, And one. all X.X% are growth spite with that, is that strong. up, guessing it X%, jobs one We’re The the consumer up, chains, looks consumer are pretty good. was their best still are

against recovery everybody. a not the little of and We’re with sharing Americas wealth that, bit

they the services more bouncing else, So, the consumer The really the drives took for it’s I and and Jeremy in order through And around is goods in spent obviously, that spending, whether shape. number everybody than mean, good you books shape all XX% improvements, and equally of more it’s are motors, numbers, between books They’re home very kind dollar, seeing? XX% Businesses pre-COVID. high. capability up, homes, service more go more good in What more that. confidence are with like order levels their patios, are demand. and cash goods and they cars, stuff seeing more more more.

America. shortage in a of homes have We

being growth with pretty inflation is with and So, set you obviously the gets that. that well -- -- the and negative see the stuff how table for navigated like

XXX could be my And Paul interest pretty to So, It X. than basis I be is be notion going world where sweet view one that gentle and no Saturday whole good to surprised. you points chance going X is grew -- X. in a or this ever Volcker raised somehow on be up night. more a there’ll and it’s I mean, a

low fact they’re the a the QT. that then like be It I’m think growth. more surprised to good rates other -- that. That mistake. and does position a loan not stuff in I a is, -- may it does it’s won’t they actual well rates react unemployment little mean possible and mean how loan may and very QE But the have stay. not And we

And you one the run to then drive that. see bit point, little to And bond going and so, I going tends rates loan or up react a and billion be that, come with. at letting may they’re whatever demand capital And is $XXX and stuff to XX-year Fed that. about a growth also said rates off number for like to that just all particularly, month

things being So, all equal.

sheet And to liquidity, expand, want $XXX could securities, $X billion it’s them. and stuff like when taking it’s are just trillion I’ve numbers. make may to company, time depending you you go numbers If bank on $X.X we comes and we with extraordinary to and sheet funded. bank that. time is okay? never as And at the that or of to the don’t all that’s out, risky -- through navigate percentages, And have at think grow, seen like constraints as $XXX down bit marketable at and look if $X.X firepower of we little that. a capital we $X.X a look billion with. not over this cash those at or how Those the gross amounts, the deposits. are marketable -- world. higher-yielding these -- duration I important, you just assets and firepower I’ve have seen that that deposits. And and of in trillion they in It’s all and QT But to kind look trillion securities balance look be loans deal of these very cash capital trillion deployed loans, loans balance There’s in to extend those like huge point never

if I in And wish be -- and could the we’re of so, XXX% And own I private. good shape. pretty company

Matt O’Connor

sneak broader of ‘XX, they talk to pipeline to outside see or all just JPMorgan you I banks leaders you of this Can expect or volumes, market? to market going for of indicative be was do material on as based broader think expense that, the expenses in, I there’s on at thinking, that and think like the do seeing increase the you surprises see in the pressure we’re is

Jamie Dimon

every just expect -- certain complaining that. like I’m talking CEO please wages. would to don’t want about inflation I and and Yes, I that almost about is be say I because But stuff don’t wages --

to changes I think prices. simply up. And have wages with who is in the have thing the going people going deal a good wages businesses up for

there. all is babies if up to with -- The client factors prices down, about. down, with up mozzarella your you shouldn’t job up it. just down. can go be goes go other and out wages They So, and the commodity They best and as cried serve deal you

So have none, hasn’t more than I’m I some to you’ll seeing it. et think offset ability cetera, But do wage and It see doing zero, it not opposed stopped pressure, more others. people from anything, us to nada.

because not bankers We’re in was or back or growth plans or countries there markets cutting wage inflation. some

Operator

Next, we question Ebrahim have a Bank Poonawala from from America. of

Ebrahim Poonawala

Good morning.

Just two capital follow-ups. of terms quick Jeremy, in very One, deployment.

two? any at been the about you last fintech inorganic this over transactions, address Is or you us inorganic pace to that investments if those your any a likelihood there talk year? currency we slowdown use growth. in point M&A the that on let larger see up a should Just year, at any And you’ve of could look

Jamie Dimon

So, transactions like unlikely. billions look. always But the large over we

open mind. always We’re

of that all. And the that. like at that and We’re looking all fit won’t investors, over stuff things the stuff fintech that, then like change in place for pace

Jeremy Barnum

we deals. be of at that. is realistic. interested is we Jamie’s which large And that, we’re is at fintech of part aren’t version part Obviously, with doing looking My that the when in definitely consistent at that and M&A, investment look deals yes, to we’re continue stuff the looking very

Ebrahim Poonawala

just Jamie, And mentioned. helpful. something, That’s on double-clicking you that

open square last more over when about few leaving ground fintechs years. talked for banks the You’ve the

us, forward, franchise Just JPM near-term competing do you years market’s the how extent these or you ROTCE focused fast fintech expenses, -- pressures. about a can, investments talk the how clearly on bigtech, But to feel head-to-head? three to to two talk years with us as

Jamie Dimon

do mean, job. these good battle of it’s But a some I people and gate. very Great.

a That’s meet self-critical. capability, things think act things. some hamstring we, are static. like little But to a there scale sometimes customers, not lot have an going they’re your these got economies job, offers, we’re the gotten and more That’s the have more Look, sure target. But think we’ve and few like weaving. not services, bobbing of -- static I’m more if not more you’ve even And do And more What some just travel, gotten should assets mean, I all the got changing, to you is bars, every do friendlier we is bright. business. so better and that’s have -- on very the and not coming. they’re not for strengths. should that Chase ourselves I rewards, today, of on consumer, we I card. They’re an they’re And single overdraft. of we we navigation trading, ATMs, and and good overhead and you be static. free more they’re a We’ve just bank better done, true one competition business.

and We’ve lot like take So, want clear pretty there going been tough at that, competition. middle very I a around long Like disclose very, way you and of stuff but be that costs Chase tomorrow for we not going we’re run. the are those us pay to to that’s UK. back look JPMorgan, money, numbers,

not not the rest services and become We’re our in going I we countries the may okay? bank over long to and of run. lives, So, be adding fail. doubt, We products in may the the for run, digital do we’ll or UK short the somewhere -- best

Operator

Mike have from Securities. Fargo we Mayo Next, Wells

Mike Mayo

LBO I JPMorgan hear to that you’re that confident. on Hi. you’re so Jamie, an do ready

Jamie Dimon

Yes.

equity I raise think you’d capital. me help the

Mike Mayo

Well, figure two what wait have saying a years this without economy. to for all guidance the here booming the we I little the targets. I’m given you’ve -- ROTCE, call you’re to bad XX% that’s it’s the mean, has despite because trying given out news with frustrating any

You’re company. is years. And second XXth the a But of that row one-half leverage. get year last how in U.S. you the investments, the enough capitalize largest to $XX it. over that’s That’s guiding I operating $XX bank. not run for billion up billion negative of three

targeting, you gains bone what expect specific here those what do when market meat -- you specific didn’t gave you us So, to tell put that? of terms this at us investment investments what it in share because the expect you you revenues Can on are all expect, look, of you more do worked. some is $X but from billion spend, that,

of share. You $XX gained worked. billion At it investment spend,

going always work billion. you’re You gained might so to share. not $XX well. now But It

the so put That’s is feedback So, can more on The great. X%. is meat again, stock the you, hikes bones? next the down investments far like spending over for The years. you’re rate XX

a You’re XX-year there for to aren’t lot horizon. investors the invest planning term, the in for but a long of

Jamie Dimon

-- we’ll breakeven fixed a XX% feel income and of we It frustration. our like is your It have we’ll Wealth building, that sure depends adding the stuff It bankers thousand couple contribution Chase expect. on to pretty profitability we banking, on those pain on we’re takes I Management, It Michael, years. depends XXXX, markets. just deploy ROTCE. The but expect capital. to get depends possible things But we how we’re in a like in bunch will a every we’re and that. just very but XXX of get branches private that

little even already bit -- you a bubble some And on bubble we the in bit headquarters. going to of There’s all expense can’t to we of expense of those tell we of new not have little it, yes, tech a so we’re that. And stuff and kind things. do just there’s mentioned of is

consumer comfortable folks we’re Jeremy Like is pretty stuff, card growth right strong. we’re to told the so, a very little our were about but -- that And this we’re was they things. we’re skeptical. I going The talking card our the doing American conservative. year, the return, And being

are we and has good. now Chase, services self-directed billion. $XX products call Our very investing

that. saw, think something has, XX, think, like the I Robinhood time last I I

without We’re anything no seeing it’s -- and your would not and or enough doing no that. bragging our got real virtually marketing not because about like product good billion I But say us $XX it’s stuff yet.

coming. The of face. lot a we to competition, stuff there’s So, have

exactly the the XXXX. made balance in -- profit, Some of maybe acquisitions I sheet. we these will of But deployment contribute and mentioned to not

deploying in always the conservative pretty true. sheet. not We’re balance may be That

Mike Mayo

retiring then debt. to talked Jeremy, up my requeue about follow technology as I’ll you after But specifically, technical follow-up. and relates I’ll it

also talked of tech offensive you also other the investing And expect banking some where for What playing you you in Are for defense, but to more would where You so, digital targeting UK? you are about on that? going side, that’s revenues? the Brazil? are countries kind

Jeremy Barnum

the debt I I great I of technical that not retiring playing a decision targets. you’re some easy But this that the think as point Company. mean of the defense. if playing of thing for long-term it’s conversation, you’re to it’s which debt on actually an defense playing that’s the mean, retiring wouldn’t the -- is focused offense that’s that term, you’re Yes. funny. articulating -- creates country for type of the short-term critical I technical if is actually long frustration of exactly success example this describe whole do

So that’s…

Jamie Dimon

on $X billion okay, in have that. data private you spent and stuff centers have So, brand-new which we like cloud can capability centers, the data all

centers. the running old data still We’re

now every every the explain expenses not up we’re is eligible. eligible. be which and in to have of you of part some are cloud well, But and going out. cloud talk, has time of in cake going to buildup the Now, expenses centers, pain -- running data I’ll going that these to data of get this in that are, stuff involved to most in going be Most completely goes new go all the but applications

is marketing, moving the it’s working Microsoft some sat a stuff and multiple and roughly have this XX%, if we’re bunch complaints, fraud, extraordinary. capabilities. absolutely running totally into offers, whole on -- We’re at cloud-related type think cloud apps and power we on programs, the don’t of And risk, cloud want capabilities, with can’t dealing of XX%, you room I to and valuable. I so AWS. prospecting, I data major to we stuff. run cloud, in year, XX% data mean, with be to the big errors all And all Google This will which of stuff of disclosed customer this our satisfaction, look of and

You in It’s that. for stuff. all ransomware, of example, down we’ve are calls Like, the a cyber we deployed huge for and in capabilities that because all our see manage how some and the fraud year. actually the reason fraud this all already things. those with There’s

for will expand hugely I have And see like I continue did some with I also, we would that. we’re the number I do a XX% XX years, for us. And the that we’ll of the If part that which give on And it that to would would valuable be capital, it. States of of that’s those So, and things. you and if years, United the America. could be said, take take benefit, why of that is Like GDP to that return earn. comfortable push margin next button a and big I a you’ll XX next probably tangible grow

Mike Mayo

follow-up. Okay. requeue for I’ll my

Jamie Dimon

very Mike asked market another shares. good question

services in income share, market share, investment We deposit expect equity banking share, share, be market surprised go going market what share, to them banking share, market give down. private investment global retail of I number. market market go and share, miss? to any up market fixed share, market the banking if market market we’re payments share, And did and share I’d security commercial not you

Operator

we As now, Gerard from one have Markets. per question Cassidy last RBC Capital from

Gerard Cassidy

about guys were is quarter to to you I they’re we’re assuming about when discussion XXXX you what economy today. Jeremy, today guys And XXXX? compare to think credit them the also, because I’m do hearing you fourth in talk Can the it the underwriting have quarter with topic numbers. versus to than out call using they XXXX? the more be were the we compared today height that with in what share figure on trying what going is us the first back of crisis are can does stronger. But you easier How of at I’m it to doing XXXX? standards look might

Jeremy Barnum

sure. Yes,

there’s in the therefore, our standards. and broadly in think for underwriting I So really our credit risk large appetite, company, change no

talked vintages, portfolio as which bit within higher the a where function maybe shift a pre-pandemic, X.XX% little credit underwriting a and overall trending being to credit time composition over our business, there. you had some slightly I remember, well still in little charge-off of this subtlety slight at alluded a appetite, risk rates the about still I if is bit think we of earlier, card there’s card some within of box, our risk higher the in but just a

so. and So, then, that that this or exiting net flow with extraordinary And because just dynamics we’ve we didn’t year number, quarter fourth the And happened a it the the pandemic. obviously charge-off of of we’re exact something, through like experienced see something forget with back rate. X.X% now, card I

Jamie Dimon

can see… we never So,

Jeremy Barnum

well. Obviously exceptionally

reopening, then the becomes level. credit and was we then -- there modify also think it of did your standards. sort like And to question how question the essentially we somewhere the about that when pre-pandemic that in returned So, the and answer box is to I the leaned like into we

So what we what credit were were. seeing conditions were about obviously very confident in light of we

Jamie Dimon

it’s It got bit, back it a and little to now tied was... where

Jeremy Barnum

Exactly.

Jamie Dimon

over credit you the completely Jeremy’s that the And was point, But slide we years. that of eventually in None things earning results. that to of we’ve one normalize. to expect material for been on

out. been been then fast how very that And And credit market low. loan a seen normalize. Other time, is thing than ever our You than ever. lower has could have they’re and have book, Middle kind than argue important this cards. and all number never build to has lower the own your They’re been of modeling. is the that we you’ve lives. sales lower been ever. but what card other in for Mortgages going Eventually,

we grows, book, equal. proportionate reserves add all book pretty the stuff this the loan loan like the and all as being things assume We’ve got that. in Just growth CECL will much to

the So, a obviously, item. flip one next that’s -- to year, there’s negative, for

Jeremy Barnum

Yes.

guidance so, quarter net of charge-offs And right? low-Xs early that XXXX. of net that to of don’t much Gerard, of think roughly of get of page on want back charge-offs. putting like specific XXXX I card we assume end there, kind the the look the to that the is mean, card terms into we’re normalization but to around at the through fourth or your ‘XX in we course of year, do too about trajectory the numbers through one And that is point what next to lens get I

be fact about up actually one will those have they lot line So gone hand, up, the maybe numbers our on that going expectations. a we’ll are but talking yes, the with exactly in

Gerard Cassidy

I all as Great. And way mix is pandemic long And said the billion a you and have back $XXX that balance you business balance How to guys be -- it get sheet, will and today XXXX and to this what follow-up, use. did? a balance the Jamie, just will put before talked it about liquidity. it in that you Jamie, quick looks think, of could Jeremy, you take sheet would whole sheet to thought like started a did and you the

Jamie Dimon

the again, give changes. happens, deploy reinvest we’re balance invest in We’ll balance we’ll -- of on all you a patient. Basel rush to And those stuff lot that. think, sheet to decisions I are things going a bit we’re how in you is no of we client IV, very that real capital we’re and But some and sheet. a of of fact like stuff. outcomes make little better based the got part But that when be update

Operator

question. another had Mayo Mike

Mike Mayo

more actually revenue AML digital not getting new and your tech Just countries on entering? banking cyber, to? -- on off from digital detail just before I and say. table specifics, some What which pickup, starting and you going And would that’s tech you’re banking, as Again, mentioned that’s But expect ransomware and as stakes, more to was fraud looking on investments, all least banking, you you growth where and going -- far with what are revenue markets at and as spend. the are other just UK. you for digital the asked tech you other areas

Jeremy Barnum

Yes.

going into, on disclose not we’re specific going countries one. to we’re So, digital banking, that

Jamie Dimon

There about we’re talking isn’t one year. next for

Jeremy Barnum

investment CX think I Yes. in just question, mean know, have as in we Mike’s this to made validate Brazil. I you

Brazil, the same. a So us, build but It’s not not we’re de exactly it’s there. by novo

engaged. like is there from Brazil is We’re a interesting and digital a investment. And banking consumer perspective very It’s significant quite interesting. the country play a

let about example. it. places additional go, know one we’re we and obviously, when that’s And thinking you we’ll So, do to

Mike Mayo

and specifics big marketing with improved expect tech do where and could data degree rates would other example, additional you provide investments of more for for your for the what again, revenues, you And I using looking what or it? AI the you’re take include? that Okay. can mean, you kind have just where

Jeremy Barnum

of a personally some tech optimization of like lead fan big stories. mean, I like not these know. I’m mean, types AI-enabled I doing we’re example. Yes. cool there’s in stuff don’t individual I like AWM, anecdotal for stuff,

like up can with things come gets think and a or distracts could in opposed the But them of attach tangible of all reality, of technology sort Jamie efficient quarter. a that we XX engagement company that into like the picture. to more about generally it’s modernization banker have have branch the some the it’s of the sure lot type I that as and that I Examples like ecosystem stuff that. really Maybe we revenue and spent of whole competition about from So me. next anecdotal hiring, says, on and $XX them outcome those digitization you somewhere. But build customer where that. don’t can embedding with list like as making much I’m I of and examples more of stuff. X to part as then I million that’s talk big of the a

Mike Mayo

one. Last Okay.

bank do expect saw then And a I to that cloud core the done? the that’s -- change On to once versus in total -- the move much bold the bank? do What that the to expect again? save to what is that the to is run Chase, cloud. relates you you How move it I gets thought specifically, what tech of deck. as your bank the spend,

Jeremy Barnum

Yes.

of couple a So, things.

change again back XX-XX, the to of bank, is you to the modernization-type features it’s half a so bit $XX-ish opposed bank. If remarks, as kind more, my go And within run billion, the agenda, change and prepared stuff products. like

a of bit you gives it little So, a...

Jamie Dimon

helpful to little Hey, on tech thing. give a Mike. one going you this example, be may which platform I’m

good. numbers we Card is ago. while a which mainframe think, runs I quite are this -- did accurate a these --

most doing system to $XX we’re the it. We isn’t to is million the it become it million years, once a uses in economic, of is to for the updated cost machine been reason et that we’re modernized like That it’s that and it to running accounts, feed, $XX a marginalizing The stuff gets old its fraud, the be the accessible that center. million by risk, mainframe have that and data one but marketing, the enormous year. cloud When real-time the cloud, get most or it’s database savings learning. that cetera, it XX offers you doing will reason efficient,

that know to eat here, So Mike Mayo stuff it you XX we you offers today. going can steakhouse, times eat, offer can night, -- and is a what -- is we what on when home Friday you like fraud you is immediately

-- the this is And that cost million other so isn’t that’s you’re value the I that that the $XX value. application. gone from you saving do thing immediate real million. running the $XX allows mainframe The save And want to you’ve system. to augment

a got when you’ve go careful a into it, make mainframe be modifications. touch little to some You system, you

in modify the course, you releases days, mainframe and of times multiple that multiple like used stuff -- a that, like big year, system old reasons. for So, to X

Now a little every piece day. and you can in every modernize of go it week,

to why makes this. so it’s cost. do quantify the important the and so, it to also And is that’s benefits And hard

Jeremy Barnum

But you I I example, business a from Mike, big just well. know guess, that one know a

at to the look the example an of Teresa’s investment you the business, way Securities strategy. If it’s Services relates interesting

a had know, of fund mandates, increases to you on large as services involve in business, expense that accountants. new in especially correlated So, as historically, onboard to significant you lot tended winning administration

that little think was to that that the the win of more I there bit And a it’s a we’re lot investment a respect business accretive. new in is dynamic that bit there. And making scalable more typically when so, make that little business, we so

example. there us mandates. for that, out terms will great more in revenue? example I interesting really profitable, same At building more So, that win that’s we’re investment mean, maybe that revenue, kind and that would capabilities stuff the I in is some as of of we when guess. data help also the I investment time, like describe more an win produces of which that means it it’s tech

Jamie Dimon

the to end some we of know to call I we got got do. we’ve this got because stuff

luck Just for derivatives a A for are not, believe important clients that. use banking for to We time do what example, simply and management. value derivative like of a all I of for competitive using there’s credit costs portfolios costs it to using and help stuff valuable That much can’t as hugely course, thank part now, or custody of us. Teresa, more time. some with It they’re lot to investment more people now them an JPMorgan’s this. lot and one, is capability that. And and Folks, the portfolio Teresa the the you to money. It’s having advantage. very It’s cloud. on Good everybody. call derivatives of you taking

Operator

end of your the call marks today. That for

You may of disconnect. now Enjoy day. your rest you for Thank joining. the