Expenses of 19 billion were up 1.1 billion, or 6%, year on year, primarily driven by higher structural expense and investments. A couple of things there. If I lend you $30 million and you have $10 million, you're probably going to be leaving it at my bank and they also are more competitive on the rate for that. Terms are better, pricing is better. A very serious recession is, of course, going to be a headline -- a headwind for returns, but we think even in a fairly severe recession, we'll deliver very good returns, whether that's 17% or not is too much detail for now. And credit continues to normalize, but actual performance remains strong across the company. $407B Today's Change (0.01%) $0.01 Current Price $139.20 Price as of June 27, 2023, 4:00 p.m. Hey, Jeremy, I was just wondering if you can just give us a little bit more detail on those lower funding expectation point that you made, just in terms of -- is it because of like what you can offer the client that might allow you to kind of keep that beta lower? We've been doing it for 20 years, like, we just started doing something like that. You may proceed. And once the [Inaudible] base case gets to where you expect relative adverse, would be adding the $6 billion reserves before you have charge-offs. And in '24, we know very little. So, maybe a bit asking, more so. Average deposits were down 16% year-on-year and 5% quarter-on-quarter, predominantly driven by continued attrition and non-operating deposits as well as seasonally lower balances. And we don't want our company to be terrified of errors so we don't do anything, and if the complacency isn't burdened by bureaucracy, which is stasis and death. I thought there was a writedown there. Good morning. Turning to Corporate on page eight. Sorry, Jeremy, I couldn't help myself here, but in Barr's December speech, he strongly hinted at capital requirements moving higher for you and peers. Be the first to gain access. That's great. Cost basis and return based on previous market day close. Expenses of $3.1 billion were up 8% year-on-year, predominantly driven by compensation, reflecting growth in our private banking advisor teams, higher revenue-related compensation, and the run rate impact of acquisitions. In advisory, fees were down 53%, reflecting lower announced activity earlier in the year. I guess, taking the 10,000-foot level, I guess, when you look at asset liability management or ALM, you could call this Nightmare on Elm Street, and you've seen some big problems at banks. You may proceed. Note that in line with my comments at the outset, recent deposit balance increases are not a meaningful contributor to the upward revision in the NII outlook, given that we expect a meaningful portion of the recent inflows to reverse later in the year. So, you know, I think we have appropriately conservative assumptions about the outlook embedded in our current balances. And we've been doing it, but there are securitizations, there are partnerships. But I think they've already -- as the Fed has raised rates, you've already seen -- that's the reason we expected outflows, both from consumers and corporate customers. For the rest of it, we're always generating efficiency. You know, might one day, but it doesn't affect it today. You may proceed. The centralized team does it. It would probably be negative in other lines. That concludes today's conference. And then just as a follow-up, if I heard you correctly, can you give us a little more color, I think you mentioned in building the loan loss reserve this quarter, you identified some one-off credits. Like what are the other areas you are watching, if duration mismatch and bank balance sheet being one, CRE market being one? But we take the outlook from our economists. The next question comes from the line of Ebrahim Poonawala with Bank of America Merrill Lynch. Thanks, Jamie. You may proceed. Yeah, sure. We also don't like to tell the market what we're doing, just so you know. JPMorgan Chase & Co. (JPM) Earnings Transcripts | Seeking Alpha I was just wondering if you can help us understand the ongoing efforts on your mitigation for the RWAs in advance of all the points we've made already about the pending capital regime. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Our office portfolio is very small Class A, you know, best developers, best location. Going through the drivers, the outlook assumes that rates follow the forward curve, a combination of the annualization of the hike in late December. Hopefully, it's not too much worse than that. Are you worrying -- worried about non-banks that have grown exponentially over the last decade in terms of risks at the non-banks if rates don't get cut? And so -- but let's just see what it is. That answer --. But the point is that the level of rates now is, of course, very different from what it was last year. Deposits were down 14% year on year, up 1% quarter on quarter, primarily reflecting attrition on nonoperating deposits. You know, they're going to work through whether international laws or international requirements. And just maybe talk a little bit about the dynamic in pricing. Have you seen big changes in how corporate treasurers or CFOs are adapting their cash balances and working capital? And of course, the actual outcome will be different in one way or another. Now let's go to our businesses starting with CCB on page four. In-depth profiles and analysis for 20,000 public companies. JPMorgan Chase : 2Q20 Earnings Call Transcript 07/16/2020 | 01:56pm EDT 2Q 2 0 FINANCI AL RESULTS EARNINGS CALL TRANSCRIPT July 14, 2020 MANAGEMENT DISCUSSION SECTION We now expect 2023 NII and NII ex-Markets to be approximately $81 billion. Gross investment banking revenue of 700 million was down 52% year on year, driven by reduced capital markets activity. Looking at the full-year results on Page 3. So, you know, we've got best guesses for all of those in the outlook. Let me just do CRE quickly, Ebrahim. Were about to begin. Thanks so much for taking my questions. Spend remains solid and we have not observed any notable pullback throughout the quarter. Cracks In The Labor Market? In addition, looking at balance sheet growth and mix, we expect solid overall card spend growth, as well as further normalization of revolving balances per account and modest loan growth across the rest of the company. Then to complete our lines of business, AWM on page seven. 10 stocks we like better thanJPMorgan ChaseWhen our award-winning analyst team hasa stock tip, it can pay to listen. And, you know, banks aren't really buying. And the other thing is they should [Indecipherable] decide what they want on the banking side at this point, because I made it clear. Let's just see what they are. But ultimately, who's accountable when an investment doesn't go right, like the Frank deal or another deal, or some of the other $81 billion that you expect to spend this year? On the page, you can see how exceptionally benign the credit environment was in 2022 for the company across wholesale, card, and the rest of consumer. They should prepare for them going up. We'll deal with them when we get there and, you know -- and then we'll figure out what we have to modify in business and stuff like that. But you -- yeah. Thanks, Steve. Could you give us a bit more color on how reserve builds should shape out this year? And that would contribute to operating leverage. Of course, as is always true, this outlook includes continuing to generate efficiencies across the company. I would point out that this outlook still embeds significant reprice lags. So they have options. Seeking Alpha's transcripts team is View Ford Soars 30% YTD After Breaking Out: What's Next? The next question is coming from the line of Mike Mayo from Wells Fargo Securities. And that's incorporating our sense of the current environment, the operating leverage that you talked about, and the expectation of higher capital requirements with the 13 and up target in the first quarter of '24. And, you know, 2022 had a lot of themes. What about the March events? And second, how much of the reserve build was more of a management overlay versus your base case, you know, the quantitative part of the decision-making for building up the reserve. (JPM) Add to my list Report JPMorgan Chase : 1Q22 Earnings Call Transcript 04/15/2022 EDT 1Q22 FINANCIAL RESULTS EARNINGS CALL TRANSCRIPT April 13, 2022 MANAGEMENT DISCUSSION SECTION Starting there, revenue was up 56% year on year, driven by higher NII on higher rates. The next question comes from the line of James Mitchell with Seaport Global Securities. And, you know, 4.5%, 5% rate environment is probably one where there's more trading opportunities and there's 0% rate environment. Revenue of 35.6 billion was up 5.2 billion, or 17%, year on year. And given the recent focus on commercial real estate, let me remind you that our office sector exposure is less than 10% of our portfolio and is focused in the urban dense markets, and nearly two-thirds of our loans are multifamily, primarily in supply-constrained markets. And, you know, it's -- if the number too high, we're going to tell you what we can do about it. Identify stocks that meet your criteria using seven unique stock screeners. And if it doesn't happen, serendipity. But, you know, to follow up with, you know, John's question, I'm wondering if you could give us sort of more specific guardrails with regards to what you're expecting for deposit attrition and deposit data -- in terms of the terminal deposit data. It's quite clear, this is an area that cuts across the company. So got to see how Jeremy answers it. And on investments, while we are continuing to invest consistent with what we told you at Investor Day, it's a more modest increase than last yea. On page two, we have some more detail. Yeah, I mean, I'll give you that answer, but I'm oversimplifying a lot. But when we talk about responses to the recent events through the lens of uninsured deposits, that's obviously very different if you're talking about large balances of non-operating uninsured deposits from financial institutions or de facto financial institutions versus normal large corporate operating balances, which is, of course, like core banking business for all of us. Combined credit and debit spend is up 9% year on year, with growth in both discretionary and nondiscretionary spending. You know, I think it's the same, you know, because you have the apples who are basically doing a lot of banking services and Walmart starting theirs and, you know, obviously higher rates over some other folks in the fintech world and maybe even help some folks. The next question is coming from the line of Erika Najarian from UBS. There was a gain last year. Mr. Good morning. Yeah, I got it. Consumer spending remains solid with combined debit and credit card spend up 10% year-on-year and credit continues to normalize, but actual performance remains strong across the company. And maybe that's an unfair question today, and it's a better question for Investor Day, but, you know, that's kind of the debate that's out there on the stock. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. So for all of those reasons, we're just being realistic about the stickiness of that. And we delivered an ROTCE of 18%. We don't know the timing, but it will happen. I wanted to understand a little bit about how you're thinking about managing the expense line as you go through this year. Any more color there? Export data to Excel for your own analysis. So, Jamie's right. The next question comes from the line of Gerard Cassidy with RBC Capital Markets. As previously announced, JPMorgan Chase & Co. (NYSE: JPM) (JPMorgan Chase or the Firm) will host a conference call to review Sure. That's right -- theythink these 10stocks are even better buys. So, people are in a different position. So, if I just take that one. Turning to corporate on Page 9. So, you want me to [Inaudible] There's couple of things. And to be honest, I haven't actually specifically checked what's happening with card yields. It's been very attractive to yield-seeking customers. Our pipeline is relatively robust, but conversion is sensitive to market conditions and the economic outlook. So first of all, we don't know, right? And on credit, we continue to expect the 2023 card net charge-off rate to be approximately 2.6%. You also obviously know that our current EaR actually shows a slight negative number, so a tiny bit liability sensitive, and I won't get into all the nuances about why that may or may not be a great predictor in the short term. And just to finish up on NII, as the guidance indicates, we expect markets NII for the year to be slightly negative as a result of higher rates. So, really, the large majority of our commercial real estate exposure is multifamily lending in supply-constrained markets. And, Erika, let me just add a very minor clarifying point. JPMorgan Chase (JPM) Q2 2021 Earnings Call Transcript And, you know, the rest of it is -- well -- and of course, you know, as I said in the prepared remarks, we do expect, across the company, modest deposit attrition as we look forward as a function of QT and the rate cycle and so on. So that's all it is. You may proceed. And the answer to that question is much less than all of it because a lot of it was earned by long growth. And that's not -- you know, we've always pointed out to you or sometimes we're over-earning and sometimes under-earning. Well, there's two really different questions. Jamie Dimon warns of 'storm clouds,' while telling investors to relax And JPMorgan, it's not a -- there's so much capital. The presentation is available on our website and please refer to the disclaimer on the back. 3 Cash-Rich Defensive Companies Making Investors Rich, Tesla Production Cranks Into High Gear, Shares Follow, Overstock Looks Beyond Overbought After Bed Bath Re-Brand, Three (3) Stocks Under $10 That Insiders Are Buying, Get 30 Days of MarketBeat All Access Free, By creating a free account, you agree to our, Pfizer Just Invested $25 million In This Biotech. It's a good question. And we had volatility with relatively orderly and continued markets. How much should we be baking in for those? Okay. Our office exposure is quite modest, very concentrated in Class A buildings in sort of dense urban locations where the return to the office narrative is one of the drivers is generally in favor of high occupancy. Hey, Jeremy, you mentioned a degree of reintermediation to the lending markets. Well, I think we've talked about CECL quite a bit. The Motley Fool has positions in and recommends JPMorgan Chase. Some have -- some may have to sell securities to finance their loan books. Yeah. We don't know. Some of that is reflected in this course numbers, but on the other drivers of this quarter are what you might call more passive items, particularly in market risk RWA. Chairman of the Board and Chief Executive Officer. And as a follow-up on the point about rate expectations coming now in and potentially getting cut sooner, how do you take a look at what that might mean just for the broader economy? That's correct, Jeremy. Not Yet, But Theyre Coming, First Solar, Castle Biosciences rise; Levi Strauss falls, Friday, 7/7/2023, How major US stock indexes fared Friday 7/7/2023, 'Competition Is Fine, Cheating Is Not': Elon Musk Threatens to Sue Meta Over Threads 'Copying' Twitter. Good morning, ladies and gentlemen. I think you would have to probably expect some normalization there. I mean, I wouldn't take the chart on the bottom left too literally. Starting with a quick update on the health of U.S. consumers and small businesses. Or they intensify it, industry-wide, because smaller banks have to reprice to keep their deposits? We're continuing to work very hard, and it's a big area of focus. You know, a lot of people out there competing for it. And we always say, right, we underwrite through the cycle. We have benefited from our fortress principles and commitment to invest, which we will continue to do as we head into an increasingly uncertain environment. So we did that, which changed the weighted average expectation. And how important is this in general for activity levels to pick back up, to have available funding from the big banks? Moving to expenses, our outlook for 2023 continues to be about $81 billion. The base case is where it hits almost 5% unemployment. So I think you shouldn't be looking at deposits like one class. JPMorgan Chase to Host Third-Quarter 2022 Earnings Call And finally, while volume and revenue-related expense was ultimately a tailwind for 2022, we are expecting it to be close to flat in 2023, which will be completely market dependent as always. Yeah. In Corporate Client Banking, utilization rates increased modestly quarter-on-quarter as capital market conditions led more clients to opt for bank debt. We bought a lot of Ginnie Maes when there was, you know, a 60 OAS spread. You may proceed. CarMax Stock Flying On Earnings Beat, Return Of The Highs? Web4Q21 FINANCIAL RESULTS EARNINGS CALL TRANSCRIPT January 14, 2022 2 MANAGEMENT DISCUSSION SECTION Operator:Good morning, ladies and gentlemen. The presentation is available on our website, and please refer to the disclaimer on the back. What are some of the changes that your scenario planning for, whether it's higher capital, increase in FDIC assessment fees? Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: Good morning, ladies and gentlemen. The stress test -- the CCAR stress test, as you know, had rates going down. Rapidly and dramatically. Fair enough. Your line will be muted for the duration of the call. The next question is coming from the line of Glenn Schorr, Evercore ISI. Payments revenue of $2 billion was up 98% year-on-year, driven by higher rates and gross Investment Banking revenue of $881 million was up 21% year-on-year on increased M&A and bond underwriting from large deal activity. You may proceed. They were supposed -- I just remember, my -- they were supposed to be positive in there about how they looked at banks relative to global economy, which are getting small and G-SIB here is supposed to be adjusted for that. And then the remaining narrative is just the further normalization of the revolve per account because we also have seen some account growth and that continues to happen. Number three, there is a natural amount of internal migration of deposits to money funds. WebWelcome to JPMorgan Chase's Second Quarter 2022 Earnings Call. You may proceed. So, I think the thing that's interesting about banking right now is that the declines have been so significant, obviously, from very elevated levels. You may proceed. But we felt that in line with what Jamie just said in terms of a little bit of tightening as a result of the events of March, it made sense to add a little bit of weight to our relative adverse case. Average deposits were down 2% quarter-on-quarter, in line with recent trends. On to balance sheet and capital on page three. And should they need to? And certain actions are taken, which are drastic, it could actually make them weaker. Moving to Card Services & Auto, revenue was up 14% year-on-year, largely driven by higher Card Services NII on higher revolving balances, partially offset by lower auto lease income. You had some of the banks here. This call is being recorded. 1 for global IB fees, with wallet share of 8%. Do you anticipate a significant moderation in trading activity or not? And so, we have to modify that at one point. The next question comes from the line of John McDonald with Autonomous Research. Before reviewing our results for the quarter, let's talk about the recent bank failures. And don't just think of just the Fed funds rate because I think you should -- for our planning, I'd be thinking more about, it could be 6%, and don't -- and then think about the five and 10-year rate, which could be 5%. One is, it doesn't -- it's not meaningfully affecting our current outlook. These results include the impact of the higher FDIC assessment I mentioned last quarter, which, of course, is unrelated to recent events. Earnings Call AUM of $3 trillion was up 2% year-on-year and overall client assets of $4.3 trillion were up 6%, driven by continued net inflows into liquidity and long-term products. The point is there is a small writedown this quarter. I'm wondering if you could update us on what unemployment rate you're assuming in your reserves. Your line is now open. Oh, I got it. Excluding the net impact of equity investments, it was up 56%. We do expect higher capital from Basel IV effectively, and obviously, there's going to be an FDI assessment. And the timing and the conditions of how much we do when is entirely at our discretion, and also noting that we are potentially going to see a Title III NPR sometime in the first quarter or maybe in the second quarter. And one of the sort of necessary conditions for people to do deals or decide to raise capital is just getting comfortable with valuation and the level of the market. The next question comes from the line of Mike Mayo with Wells Fargo Securities. Regular corporate credits. Your line is now open. And my follow-up is, is exactly in that line of questioning. But you earned the purchase price in two days, OK, so, I get that. At this time, I would like to turn the call over to JPMorgan Chase's Chairman and CEO, Jamie Dimon, and Chief Financial Officer, Jeremy Barnum. Operator: ( 00:00) Please stand by. And then just the overall backdrop today. So, I think there's a chance that that actually winds up helping in 2023 in the investment banking world. Obviously, the short-term read is higher recessionary risk, but -- and then inflation coming down. For the most part, a very specific dollar in, how many dollars out, not a guess, and we're pretty accurate in that kind of stuff. And we expect people, when they talk to all of us, is the good, the bad, the ugly. Equity Markets was down 12%, driven by lower revenues in derivatives relative to a strong first quarter in the prior year and lower client activity in cash. And so we're just trying to make it simple as possible. So let me just summarize the drivers of the change in the outlook. Through the way we weighed the different scenarios and a range of other factors, the de facto scenario that's better than the forecast is actually more conservative than that from an allowance perspective. Yeah. We didn't change the probabilities in their weighting, but of course, it got worse as the base case got worse. And at the same time, you know, the securities book is cash flowing a lot less than it was a couple of years ago, just given the rate environment. No, it wasn't commercial real estate. And, you know, you see JPMorgan's loss in the ACM loan book as a percentage, much lower than most of the people. Can you share with us on the equity write downs -- obviously, private equity is going through some challenging times. Just kind of -- just your general thinking about the other read-throughs of what lower rates quicker will mean for the broader economy. We are very disciplined, and you see that in a lot of different ways. JPMorgan Chase (JPM) Q1 2022 Earnings Call Transcript Yeah, Mike. We're still -- would -- still is a good benchmark. Hey, good morning. JPM Earnings Call - Final Transcript April 14, 2023 J P Morgan Chase & Co ( NYSE: JPM) Q1 2023 earnings call dated Apr. I think the one issue or area of confusion is that one of the biggest sources of RWA inflation is op risk, which can't really be mitigated. Can you -- just sticking just with private equity for a moment, can you share with us where the risks are in the private equity markets to JPMorgan? You've seen a lot of the private equity do the life insurance companies, and I expect that we're going to come up with a whole bunch of different things over time. And then one for you, Jamie. We don't see it as a major driver. That will be every quarter for the rest of our lives. So that's why we're emphasizing all the different drivers of uncertainty in the NII outlook. And similar question on the trading side. Yeah. It's -- the numbers are really very strong in markets. Next, the CIB on Page 6. JPMorgan We don't mind keeping our powder dry. So I wouldn't look at that as higher for long as a positive. People need to be prepared for the potential of higher rates for longer. There's going to be other pieces, the holistic review, and it's going to take a lot of time to phase in, and we're going to have time to adjust. It's kind of earnings in store. And the year-on-year growth was driven by higher rates. Betsy Graseck -- Morgan Stanley -- Analyst. Corporate reported a net gain of 581 million. At this time, I would like to turn the call over to JPMorgan Chase's chairman and CEO, Jamie Dimon, and Chief Financial Officer Jeremy Barnum. And I was just wondering if you could flesh out what changed there on the outlook, say, versus three months ago, and I guess, is that a good or bad thing that those balances will be higher than you thought? I'd rather not get into too much of detail. You may proceed. And I was proud of them. I know we talked already about how, you know, it's hard to predict. But we'll see. And you're going to see some internal migration there out of noninterest-bearing into interest-bearing over time. And, you know, of course, as you know, we thought a little bit about what normalized wholesale charge-offs could look like through the cycle. And I guess just as a follow-up on, you've managed RWA growth pretty well when you look at, like, loan growth year over year, which is RWA still relatively flat. These results included $868 million of net investment securities losses in Corporate. So, we have now almost 500 billion. Welcome to JPMorgan Chase Fourth Quarter and Full Year 2021 Earnings Call. So, if I heard you correctly, I think you're still talking about sequential increases in NII. With that, operator, please open the line for Q&A. And so if you're a regulator, if you look it and saying, do I want that? Hey, Jamie, your CEO letter said the banking crisis isn't over. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Some of that correction happens naturally. You know, as you deliver on the positive operating leverage side, it gives you room to absorb some more capital, obviously, and still hit those, you know, IRR and rosy targets on incremental investments.