Kevin Watters, Chief Executive Officer – Chase Card Services November 3, 2016 BancAnalysts Association of Boston Conference
General purpose credit card sales market share1 Best-in-class franchise Consistently ranked #1 credit card issuer in the U.S. based on loans outstanding3 In 3Q16, also ranked #1 by sales1 New account originations4 were up 35% YoY, with >75% being opened through digital channels Launched Sapphire Reserve and Freedom Unlimited in 2016 Sapphire Reserve: excellent customer response – especially from Millennials – Strong customer profile – credit scores and income above the portfolio average Freedom Unlimited: new accounts opened exceeded 1mm within 5 months post-launch Our national, scale lending businesses, broad distribution network and strong product offerings allow us to deliver unprecedented value to our customers Expect 4Q16 revenue for Card, Commerce Solutions & Auto to be down ~$200mm QoQ on higher acquisition costs Expect 4Q16 revenue rate to be lower QoQ and increase in 2017 Results will be dependent on the number of new accounts originated Outlook Investments in growth have increased Chase’s credit card market share in 2016 21.1% 21.6% 7.8% 11.3% 24.0% 19.8% 9.4% 8.9% 5.1% 4.8% 10.7% 11.1% 22.0% 22.5% 3Q15 3Q16 Chase C AXP² BAC DFS COF Other ▲47 bps ▼65 bps ▼50 bps ▼31 bps ▲41 bps ▲58 bps YoY ∆ Source: Company filings; internal JPMorgan Chase estimates Note: Percentages may not sum due to rounding 1 Excludes private label and commercial card; based on company filings and internal JPMorgan Chase estimates 2 AXP reflects the U.S. Consumer segment and internal JPMorgan Chase estimates for AXP’s U.S. small business sales 3 Based on company filings and internal JPMorgan Chase estimates as of 3Q16 4 For 3Q16 1 B A N C A N A L Y S T S A S S O C I A T I O N O F B O S T O N C O N F E R E N C E
Portfolio growth and seasoning will lead to modestly higher expected net charge-offs Accounts acquired pre-2015 Accounts acquired 2015 onwards Historical and expected Credit Card net charge-off rates1 Credit Card net charge-off rate1 guidance 2016 Investor Day 2.50%+/- FY2016 2.60%+/- FY2017 2.75%+/- Medium-term 1 Excludes held-for-sale loans 2015 2016 2017 2018 Maturation of newer origination vintages will drive loss rates modestly higher 2 B A N C A N A L Y S T S A S S O C I A T I O N O F B O S T O N C O N F E R E N C E
Forward-looking statements B A N C A N A L Y S T S A S S O C I A T I O N O F B O S T O N C O N F E R E N C E 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, 2015, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016, June 30, 2016, and September 30, 2016, which have been filed with the Securities and Exchange Commission and are available on JPMorgan Chase & Co.’s website (http://investor.shareholder.com/jpmorganchase/sec.cfm), and on the Securities and Exchange Commission’s website (www.sec.gov). JPMorgan Chase & Co. does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements. 3