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JPM Q3 2021
JPM Q3 2021
3Q21
Jan 1, 2020 Sep 30, 2020 Jun 30, 2021 Build / (release) Sep 30, 2021
Consumer
Card $11.2 $17.8 $12.5 ($0.9) $11.7
Home Lending 2.0 2.9 0.8 0.0 0.8
Other Consumer1 1.0 1.8 1.3 (0.0) 1.3
Total Consumer 14.2 22.5 14.5 (0.9) 13.7
Wholesale1 4.4 11.1 8.0 (1.2) 6.8
Securities 0.0 0.1 0.1 (0.0) 0.1
Firmwide $18.6 $33.8 $22.6 ($2.1) $20.5
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Fortress balance sheet
$B, except per share data
3Q21 2Q21 3Q20
Risk-based capital metrics1
CET1 capital $210 $209 $198
CET1 capital ratio – Standardized 12.9% 13.0% 13.1%
CET1 capital ratio – Advanced 13.6 13.8 13.8
Firm SLR excl.
Leverage-based capital metric2 temporary relief2: 5.8%
Liquidity metrics3
Firm LCR 112% 111% 114%
Bank LCR 174 171 157
Total excess HQLA $595 $558 $448
HQLA and unencumbered marketable securities 1,602 1,570 1,330
Key drivers / statistics ($B)2 Key drivers / statistics ($B) – detail by business
3Q21 2Q21 3Q20 3Q21 2Q21 3Q20
Equity $50.0 $50.0 $52.0 Consumer & Business Banking
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Business Banking average loans $35.6 $42.4 $44.4
ROE 34% 44% 29% Business Banking loan originations6 0.8 2.2 1.4
Overhead ratio 58 55 54 Client investment assets (EOP) 681.5 673.7 529.2
Average loans $434.1 $430.1 $442.5 Deposit margin 1.29% 1.28% 1.43%
Average deposits 1,076.3 1,047.8 895.5 Home Lending
Average loans $181.2 $177.4 $192.2
Active mobile customers (mm)3 44.3 42.9 40.2 7
Loan originations 41.6 39.6 29.0
Debit & credit card sales volume 4 $349.9 $344.3 $278.2
Third-party mortgage loans serviced (EOP) 509.3 463.9 454.8
Net charge-off/(recovery) rate (0.18)% (0.19)% 0.02%
◼ Average loans down 2% YoY and up 1% QoQ Card & Auto
◼ Ex-PPP, average loans of $420.0B, flat YoY, up 3% QoQ Card average loans $142.0 $136.1 $140.4
◼ Average deposits up 20% YoY and up 3% QoQ Auto average loans and leased assets 86.5 86.8 82.0
Auto loan and lease originations 11.5 12.4 11.4
◼ Active mobile customers up 10% YoY
Card net charge-off rate 1.39% 2.24% 2.92%
◼ Debit & credit card sales volume up 26% YoY Credit Card net revenue rate 9.74 11.32 10.96
◼ Client investment assets up 29% YoY Credit Card sales volume4 $232.0 $223.7 $178.1
Commercial Banking1
Selected income statement data ($mm) Financial performance
$ O/(U) ◼ Net income of $1.4B, up 30% YoY
3Q21 2Q21 3Q20 ◼ Revenue of $2.5B, up 10% YoY, driven by higher revenue from
Revenue $2,520 $37 $235 investment banking and wholesale payments
Middle Market Banking 1,017 8 137 ◼ Gross IB revenue of $1.3B, up 60% YoY
Corporate Client Banking 878 27 70 ◼ Expense of $1.0B, up 7% YoY, predominantly driven by investments
Commercial Real Estate Banking 602 3 26 and higher volume- and revenue-related expense
Other 23 (1) 2 ◼ Credit costs: net benefit of $363mm
Expense 1,032 51 63 ◼ Net charge-offs were $31mm
Credit costs (363) 14 (216) ◼ Average loans of $203B, down 7% YoY and down 1% QoQ
Net income $1,407 ($13) $321 ◼ C&I5 down 11% YoY and down 3% QoQ
– Ex-PPP, down 9% YoY and up 1% QoQ
Key drivers / statistics ($B)2 ◼ CRE5 down 3% YoY and flat QoQ
3Q21 2Q21 3Q20 ◼ Average deposits of $301B, up 21% YoY and up 4% QoQ, mainly
driven by higher operating balances
Equity $24.0 $24.0 $22.0
ROE 22% 23% 19%
Overhead ratio 41 40 42
Gross IB revenue ($mm) $1,343 $1,164 $840
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Average loans 202.6 205.3 218.1
Average client deposits 300.6 290.3 248.3
Allowance for loan losses 2.4 2.6 4.5
Nonaccrual loans 0.7 1.0 1.6
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Net charge-off/(recovery) rate 0.06% 0.01% 0.11%
4
ALL/loans 1.17 1.29 2.08
3Q21 2Q21 3Q20 ◼ Revenue of $4.3B, up 21% YoY, largely driven by higher
management fees and growth in deposit and loan balances, partially
Revenue $4,300 $193 $746 offset by deposit margin compression
Asset Management 2,337 101 413 ◼ Expense of $2.8B, up 13% YoY, predominantly driven by higher
Global Private Bank 2
1,963 92 333 performance-related compensation, distribution fees, and structural
expense
Expense 2,762 176 319
◼ AUM of $3.0T and client assets of $4.1T, up 17% and 22% YoY
Credit costs (60) (50) (8)
respectively, driven by higher market levels and cumulative net
Net income $1,194 $41 $318 inflows
◼ Net inflows of $33B for long-term and outflows of $11B from
liquidity products
◼ Average loans of $201B, up 20% YoY and up 3% QoQ
Key drivers / statistics ($B)3
◼ Average deposits of $230B, up 41% YoY and up 5% QoQ
Corporate1
Selected income statement data ($mm) Financial performance
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Outlook1
Firmwide
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Notes on non-GAAP financial measures
1. In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these
Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. The Firm’s
definition of managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm and
each of the reportable business segments on a fully taxable-equivalent basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities
is presented in the managed results on a basis comparable to taxable investments and securities. These financial measures allow management to assess the
comparability of revenue from year-to-year arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is
recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business. For a
reconciliation of the Firm’s results from a reported to managed basis, see page 7 of the Earnings Release Financial Supplement
2. Third-quarter 2021 net income, earnings per share and ROTCE excluding the Firmwide net credit reserve release and income tax benefit (collectively, “significant
items”) are non-GAAP financial measures. The net credit reserve release represents the portion of the provision for credit losses attributable to the change in
allowance for credit losses. The income tax benefit is related to finalizing the Firm’s 2020 U.S. federal tax return. Excluding these significant items resulted in a
decrease of $2.1B (after tax) to reported net income from $11.7B to $9.6B; a decrease of $0.71 per share to reported EPS from $3.74 to $3.03; and a decrease of 4%
to ROTCE from 22% to 18%. Management believes these measures provide useful information to investors and analysts in assessing the Firm’s results
3. Tangible common equity (“TCE”), return on tangible common equity (“ROTCE”) and tangible book value per share (“TBVPS”), are each non-GAAP financial measures.
TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than
mortgage servicing rights), net of related deferred tax liabilities. For a reconciliation from common stockholders’ equity to TCE, see page 9 of the Earnings Release
Financial Supplement. ROTCE measures the Firm’s net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm’s TCE at
period-end divided by common shares at period-end. Book value per share was $86.36, $84.85 and $79.08 at September 30, 2021, June 30, 2021 and September 30,
2020, respectively. TCE, ROTCE and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the Firm’s use of equity
4. Adjusted expense and adjusted overhead ratio are each non-GAAP financial measures. Adjusted expense excludes Firmwide legal expense of $76mm, $185mm and
$524mm for the three months ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively. The adjusted overhead ratio measures the Firm’s
adjusted expense as a percentage of adjusted managed net revenue. Management believes this information helps investors unders tand the effect of these items on
reported results and provides an alternate presentation of the Firm’s performance
5. Corporate & Investment Bank (“CIB”) calculates the ratio of the allowance for loan losses to end-of-period loans (“ALL/EOP”) excluding the impact of consolidated
Firm-administered multi-seller conduits and trade finance loans, to provide a more meaningful assessment of CIB’s allowance coverage ratio
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Additional notes
1. Reflects the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including the CECL capital transition provisions that became
effective in the first quarter of 2020. For the periods ended September 30, 2021, June 30, 2021 and September 30, 2020, the impact of the CECL capital transition
provisions resulted in an increase to CET1 capital of $3.3B, $3.8B and $6.4B, respectively. Refer to Capital Risk Management on pages 45-50 of the Firm’s Quarterly
Report on Form 10-Q for the quarterly period ended June 30, 2021 for additional information on the Firm’s capital metrics. Refer to Regulatory Developments Relating
to the COVID-19 Pandemic on pages 52-53 and Capital Risk Management on pages 91-101 of the Firm’s 2020 Form 10-K for additional information
2. Total excess high-quality liquid assets (“HQLA”) represent the average eligible unencumbered liquid assets that are in excess of what is required to meet the estimated
Firm and Bank total net cash outflows over a prospective 30 calendar-day period of significant stress under the LCR rule. HQLA and unencumbered marketable
securities, includes the Firm’s average eligible HQLA, other end-of-period HQLA-eligible securities which are included as part of the excess liquidity at the Bank that
are not transferable to non-bank affiliates and thus excluded from the Firm’s LCR under the LCR rule, and other end-of-period unencumbered marketable securities,
such as equity and debt securities. Does not include borrowing capacity at Federal Home Loan Banks and the discount window at the Federal Reserve Bank. Refer to
Liquidity Risk Management on pages 51-55 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021 and on pages 102-108 of the
Firm’s 2020 Form 10-K for additional information
3. In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits from accounts payable and other liabilities to other assets to be a reduction to
the carrying value of certain tax-oriented investments. The reclassification also resulted in an increase in income tax expense and a corresponding increase in other
income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation, including the Firm's effective income tax rate.
The reclassification did not change the Firm’s results of operations on a managed basis. Refer to page 2 of the Earnings Release Financial Supplement for further
information
4. In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business
from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s
2020 Form 10-K for further information
5. In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the
current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information
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Additional notes on slides 5-7
Slide 5 – Consumer & Community Banking
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Forward-looking statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase &
Co.’s management and are subject to significant risks and uncertainties. Actual results may differ from those set
forth in the forward-looking statements. Factors that could cause JPMorgan Chase & Co.’s actual results to differ
materially from those described in the forward-looking statements can be found in JPMorgan Chase & Co.’s
Annual Report on Form 10-K for the year ended December 31, 2020 and Quarterly Report on Form 10-Q for the
quarterly periods ended June 30, 2021 and March 31, 2021, which have been filed with the Securities and
Exchange Commission and are available on JPMorgan Chase & Co.’s website (https://jpmorganchaseco.gcs-
web.com/financial-information/sec-filings), and on the Securities and Exchange Commission’s website
(www.sec.gov). JPMorgan Chase & Co. does not undertake to update any forward-looking statements.
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