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$ O/(U)
1Q19 4Q18 1Q18
Net interest income $14.6 $0.1 $1.1
Noninterest revenue 15.3 3.0 0.2
Managed revenue1 $B 1Q19 4Q18 1Q18 29.9 3.0 1.3
Net charge-offs $1.4 $1.2 $1.3
Expense Reserve build/(release) 0.1 0.3 (0.2)
16.4 0.7 0.3
Credit costs Credit costs $1.5 $1.5 $1.2 1.5 (0.1) 0.3
Reported net income 1Q19 Tax rate $9.2 $2.1 $0.5
Effective rate: 18.3%
Net income applicable to common stockholders Managed rate: 23.3%1,5 $8.8 $2.1 $0.5
Reported EPS $2.65 $0.67 $0.28
ROE O/H ratio
ROE2 1Q19
CCB 30% 52%
16% 12% 15%
ROTCE2,3 CIB 16% 55% 19 14 19
CB 19% 37%
Overhead ratio – managed1,2 AWM 25% 76% 55 59 56
1 Estimated for the current period. Reflects the capital rules that became effective January 1, 2019. See note 7 on slide 10
2 Estimated for the current period. Represents the supplementary leverage ratio (“SLR”)
3 See note 2 on slide 10
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Consumer & Community Banking1
$mm Financial performance
4
Corporate & Investment Bank1
$mm Financial performance
5
Commercial Banking1
$mm Financial performance
6
Asset & Wealth Management1
$mm Financial performance
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Corporate1
$mm Financial performance
$ O/(U) Revenue
1Q19 4Q18 1Q18
Net revenue of $425mm compared with a net loss of $232mm in
Revenue $425 $298 $657
the prior year
Expense 211 (297) 124
Credit costs 2 3 6 The increase was driven by higher net interest income on
Net income $251 $828 $634 higher rates, as well as the absence of net losses on
investment securities
Expense
Expense of $211mm was up $124mm YoY, and includes a
contribution to the JPMorgan Chase Foundation of $100mm
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Outlook1
Firmwide
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Notes
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
(“FTE”) 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 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. 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 MSRs), 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 $71.78, $70.35,
and $67.59 at March 31, 2019, December 31, 2018 and March 31, 2018, respectively. TCE, ROTCE and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing
the Firm’s use of equity
3. Adjusted expense and adjusted overhead ratio are each non-GAAP financial measures. Adjusted expense excluded Firmwide legal expense/(benefit) of $(81) million, $(18) million and
$70 million for the three months ended March 31, 2019, December 31, 2018 and March 31, 2018, 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 understand the effect of these items on reported results and provides an alternate
presentation of the Firm’s performance
4. Net charge-offs and net charge-off rates exclude the impact of purchased credit-impaired (“PCI”) loans
5. 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
6. Core loans represent loans considered central to the Firm’s ongoing businesses; core loans exclude loans classified as trading assets, runoff portfolios, discontinued portfolios and
portfolios the Firm has an intent to exit
Additional notes
7. The Basel III regulatory capital, risk-weighted assets and capital ratios became fully phased-in (“FPI”) effective January 1, 2019. The capital adequacy of the Firm is now evaluated against
the FPI measures under Basel III and represents the lower of the Standardized or Advanced approaches. During 2018 the required capital measures were subject to the transitional rules
and as of December 31, 2018, were the same on a FPI and on a transitional basis. For additional information on these measures, see Key performance measures on page 59 and Capital
Risk Management on pages 85-94 of the Firm’s 2018 Form 10-K
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Notes
Additional Notes on slide 4 – Consumer & Community Banking
2. Effective in the first quarter of 2019, client segment data includes Commercial Real Estate Banking which comprises the former Commercial Term Lending and Real Estate Banking client
segments, and Community Development Banking (previously part of Other). The prior period amounts have been revised to conform with the current period presentation
3. Actual numbers for all periods, not over/(under)
4. Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate and loan loss coverage ratio
5. Commercial and Industrial (“C&I”) and Commercial Real Estate (“CRE”) groupings for CB are generally based on client segments and do not align with regulatory definitions
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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, 2018, which has been filed with the Securities and
Exchange Commission and is 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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