Thank you, Operator. morning, everyone. Good
on is As I call. back. entire when know with just we’re the And I for the say, you speak thrilled is heard, Company Jamie me I that he
for the start an COVID-XX, get front into most first of time by extremely crisis. that we we those to of quarter lines our Before want particularly and is recognizing this challenging with the thoughts all us performance, this those are on by affected
this that the back. topics on to it’s a presentation available at The navigate you longer the website disclaimer as is few as we and please always, to our key refer ask address this quarter slightly we environment. And
COVID-XX. responding Starting I’d ways on page X, we’re to highlight the of some to like
employees, As play a our and don’t what will are being and what focused how communities while on firm, transparent here for be today. we we assumptions we an will and this And uncertain customers, know know in we environment. clients, out, is unprecedented about our there
provide priority environment providing our one continue while our in is number way, to employees. a an uninterrupted Our for services work to also safe
past proud incredibly weeks. few the able of over We’re all do that been our has to firm
hit just a few I’ll on here. So, examples
and to have in into XX%. where north from number that work taking to safety. Company assistance risk still those well extra our tools being we are office a other they or including extremely for mobilized Currently, the mindful precautions ways their the managers, ensuring providing And who into of many of we’re And We’ve go for working traders, branch, home and remotely and effectively. groups is feasible, need too. and have finance work XX% the around to globe portfolio we bankers the operations across teams, and workforce about right
treatment their offering U.S. For instance, employees medical free and COVID-related we’re to dependents.
have we our seeking activated and wait been procedures while and of many On our we’ve heightened been the three resiliency plans digital remain branches in customer And have consumer open new XX,XXX side, good to time. them. vast with has majority in self all center over we’re address place the call quarters And while X,XXX quickly capacity options. accessible. service been extended, with And reducing drive-thru progress challenged, assistance, making calls put of our and record times ATMs approximately solutions safety
financially waiving a fees. and providing customers as refunding this our period who payments well for such we’re or struggling during relief time, as certain auto are For XX-day as grace card mortgage,
you by with nonprofits hardest as $XX as billion We month programs drew $XXX more the XXth; we’ve funded $X.X we on on than step, have in billion continue actively clients an we Paycheck in to support And of over numbers representing most are see loan communities March, hit XXX,XXX we business more million $XX approved as liquidity loans. of application and the in their than stage environment. morning, and advice revolvers well new impacted. philanthropic investment. $XX to announced underserved billion as this small some initial small most and with credit. slide providing wholesale, of our supporting to to XXX,XXX businesses we And as our $XX of billion help vulnerable April and the employees. give $XXX market the capital businesses challenging new and clients, of million process, And And to And the Protection customers Program. extensions this than for billion over we’re SBA’s more extended for In during credit the of The clients clients us.
Now, turning our X for financial to on first quarter page performance. highlights
billion net return the and the of EPS billion, $X.X of $XX.X revenue X%. of of $X.XX For income on firm tangible the with quarter, reported common equity
point, While reported number COVID-XX, all later. the impacts of more million our items which derivatives; significant fundamentals due on million crisis bridge largely these and high on funding we $X.X book. very CIB, discuss January level, an reserve in are, quarter detail to It I’ll a a really of underlying approximately quarter markdown items to unfold. two be cities, a was started at to due February, well, a then performed of tale business March the the obvious $XXX in build from this when a spreads credit but $XXX losses and the But might billion; of widening and
would helpful be that businesses. with key it this our dynamic talk I thought highlight through metrics some to And that, across
So, page X. let’s go to
as Starting social broadly. more we initially volume spend distancing implemented travel in a with were card the on sales retail in and left. protocols In restaurants entertainment, top decline March, rapid which then to saw spread and
were in comparison. to initial impacted, as e-commerce categories did see boost spend And brick most has well up supermarkets, now significant provisions. even stocked merchant in excluding normalize. as held mortar & we in to ultimately spend a But decline is whereas discount that up by starting an saw services highlighted spend, similar and clubs, wholesale on While supermarkets, people we stores trends
a It and clients surge in quarter investment grade of terms there ever mind. investment led was was the of largest issuance issuance, to market in was top the desire in liquidity investment clients’ JPMorgan. up banking, as debt shore by remained debt the grade In the page, middle of open, by
average products, rates volumes. more elevated drove And their than which our were peak across January in notably triple most markets, trading across commodities, and at volatility volumes trading
wholesale cash growth meaningfully the driven as by most held revolver primarily saw accelerated in March, draws. loan notably growth, time, those the right, clients on driven secured same And and by balances they At liquidity us. far deposit with accelerating we higher
more through outflows in February February. were strong, than meaningfully flows was And to Long-term AWM were classes, finally, asset by January all flows in in positive offset compared March March. across but this different and
outflows. saw side, On flip inflows more during into the money offset our net funds liquidity government we market prime March, which than significant
by first and or detail more lower and sheet balance NII. flat were due of offset quarter Revenue year-on-year, CIB about was higher I driven rates, prior impact mix our higher by $XX.X billion some items revenue. already four significant $XXX by and to to of was offset X% was markets growth the X% income revenue page largely the down CIB noninterest Onto interest as year million net mentioned, down which markets the results. And
which by structural expense, and by of Expenses up expense largely volume higher revenue and all continued expenses, were billion offset efficiencies. of $XX.X driven investments X%, related higher were legal
were in including costs reserve impact of credit quarter, with expectations. charge-offs a net This $X.X billion, the billion, build reflecting $X.X of prior line and billion net of $X.X COVID-XX
turning some have to X, on page more the detail Now, reserve we’ll builds.
oil second of the prices. unemployment consumer, approximately rate second that Our is increase well the builds net wholesale predominantly $X.X and in billion reserve by COVID-XX the due consists quarter as XX%, reserve recovery of down GDP primarily with U.S. in XX% lower over build quarter rises card, billion to $X.X the year. $X.X followed solid billion half in as assumes for This above and of the and of impact
that each best well the the directly consumer of reflects as in sectors such retail, customers in In build and federal build impacted we programs. assumptions in providing business, oil to and COVID-XX, in majority consumer wholesale, by specific And the government as is stimulus and also most reserve addition as the our our of to are macro estimate payment impact our these for relief of gas.
other expect avoid to sectors We to we be lesser a extent impacted if prolonged downturn. a
U.S. builds in stress in to several oil outlook, significant that and with quarter. what through first If which closed updated the in over for in also building we and now the relative could higher remaining a WTI of next meaningfully be quarter continues in quarter, would books scenario the aggregate our took the we have After we GDP be reflect assumed their that and the quarters to below the end gas second $XX economists more unemployment. hold, deterioration were We XXXX. the
more which duration relief across the primary unemployment and enhanced A will the said, But losses directly customer average effectiveness skews crisis, portfolio. and government than industry that the impact portfolio of prime of is being our our support, consumer help in unknown our our to benefits will mitigants the And though from to even can material, losses. recover as business. be will we we crisis, while losses act clients uncertain, customers and undoubtedly stay what doing our this be will help the
sheet Now, page six. moving to capital balance and on
importantly this absorb were stress. to crisis Our and and needs strong, client the us combined incredibly period power liquidity come. base is losses of in balance an to earnings allowed with extraordinary our a And facilitate going that sheet to inevitable into capital
which would to our clients. our coupled $X this decline the This serve and includes significant that to growth capital March CETX we our billion say, customers resulted to Since ratio up capital net distributed buybacks, both XXth. billion in our $X.X we is prudent For quarter. then, time and a with use And to we the capital always which share at of for distribution a decision which our shareholders, stopped we with earnings was what the outweighed prefer repurchases XX.X%. RWA to in consistent in quarter,
our lending and can you increase the clients. were the critical more which should on growth of drivers time right the which market volatility this RWA, at an see for time, On over key in of bottom page, subside importantly,
It’s in to which our the here why CETX that the use regulatory our range our buffers minimum. may leverage environment have necessary, place. can first it’s order we our mean our below are also to we use internal noting this if go target clients, forward, Going to our in in buffers, falls worth serve to prepared we below sheet balance XX.X% an and ratio buffers precisely like
the on claim dividend bottom is intend it have pay you can approval. base. capital walk our also currently the left, $X.XX to capacity And see on a Board small and CETX pending to in continue as We the
moment remember if including discount forward, beyond before be. on that we our And window, a liquidity just we it’s looking resources to have liquidity. And helpful strong. move facilitated, remains need significant we Even with position on, everything HQLA, the liquidity
and showed volumes increased And utilization shift in starting of forms demand turning across drastic the significantly business on signs for rates of reduced the mortgage net CCB on and pressure payment reserve we strength merchant market. a spend of with billion. across continuation March refi across income we saw consumer side, a including business well the in And as January line and trends. banking X. now, small segment, as on consumer payments, of in to processing deceleration showed February saw again, a and decline $XXX and frequency in early of and all activities, credit. origination except inflows builds reported major community a our And but businesses $X.X page million,
by basis by were lower X%, to environment. NII Average driven points was higher revenue activity. in X% and up quarter, Expenses the further we Deposit growth Revenue higher was billion expansion. decline related X% driven driven growth that offset billion and back of and efficiencies. driven given $X.X sales accelerated builds and the by I net driven In card mentioned partially with banking, revenue servicing growth January margin and the margin production volumes this in And X% loan lower expect partially quarter. up compression, it card X%, consumer to billion, structural February results. Home loan of slide, the margin investments $X.X higher auto, NII, of down costs as by prior $X.X X% was from Turning by revenue. strong driven revenue business offset the deposit lending $XX.X current over was lastly credit down continued offset revenue and year-on-year. earlier net was on XX%, And by of expectations. partially card up the rate by as and on XX included down year-on-year billion business, X%, down and revenue in with deposit consistent costs well charge-offs reserve net by expense card was by
the clients X% billion and grade lines on raise in showed remained At M&A Now helped and investment of shifted, turning reported in market income half ROE CIB of of across of saw environment our of continued net increased the completions, billion as on and grade postponements Investment the announcements a page billion. an banking corporate momentum revenue we we $X on equity last year, delays of new investment credit. $X.X issuance the open from to of bank time, same existing the X. and draws in first the but market and quarter $XXX the quarter debt debt of wide range sectors. approximately investment
By contrast, high market and effectively was widened closed yield spreads the high yield significantly.
million. noting, were quality book it is And our crisis our by XXXX book here, entering As is exposure a was, worth $XXX a a and bridge marked quarter what about it’s bridge the of down result, higher portfolio. commitments
of As revenue IB of $XXX a XX% markdown. bridge million was year-on-year, result book driven by largely backdrop, this down the
year-on-year X% compare regulatory than number all-time only up closing up and one saw Lending rank with spread out share. down tough were large on market up in approvals, rank fees XX%, in last pushing but share, however we strong XX% and Advisory before banks revenue was our effectively IB delays year-on-year, up basis a hedges. driven this Equity and reflecting And underwriting widening We the one maintained the did complete X.X% from XX% was a underwriting due more to closed maintained deals. up We impact also not quarter. loan year an our was of debt XX% points certain quarter in XX wallet the other first X.X% we March. deals challenged versus any February activity and record. with by January was XXXX. of number
risk Looking economy the in rebound in downside is forward, corresponding could the to recovery activity, we protracted. see also if a produce rapid pipeline could downturn our the forward-looking while significant
moving Now, markets. to
several markets, concerns oil substantial correction leading widening billion, to growing year-on-year. trading Day, noting It’s and major strong Here, total decline a This of sharp combination unique volatility, monetary client in the intervention record $X.X prices. by equity Simultaneously, significant in a yields. events XX% performance in and treasury in government we a crisis, also before policy said in the spreads was as change extraordinary at that a Then, up was a we even participation to and followed of further revenue in for volumes spike the markets Investor saw led COVID-XX quarter. triggered increased products. worth drop
XX%, most strength was up in on driven markets and income derivatives, rates Fixed by client in client currencies and was increased activity. notably XX% Equity activity, by emerging markets. equity strong up driven
this In that terms of saying goes too without to early going it’s performance forward. it outlook, project
activity even be In low headwind. low rates may and fact, economic a
continue However, we functioning in our are role in essential to a strong orderly ensuring serving clients’ position markets of playing and the needs.
comprised finance, business was And payments, unit merchant recording now, of of this services trade the treasury part on new services, we’re wholesale which previously quarter, to the and business, CCB.
$X.X was services. by billion X% down driven payments of re-classification reporting Wholesale revenue year-on-year in merchant
levels revenue rates As preserving offsetting clients wholesale focused on liquidity, quarter, we experienced the payments from lower and activity. deposit in headwinds higher payments throughout
lower the like relatively elevated more may be and tailwinds rates services, if this quarter, the low and services, In correction deposit In balances. offset balances, from is potentially offset short than by security balances, increased security transaction lived impact volatility revenue of billion, Market X% up drove elongated. and which payments crisis volumes was deposit market asset wholesale transaction the of year-on-year. impact the volumes and on $X.X
one mentioned And $X.X the and loss that significant by adjustments were costs driven X%, builds other higher driven finally, reserve $X.X upfront. earlier. investments. up Credit referred billion of continued net was was and to by items were I the expenses which legal of a volume-related expenses and million, $XXX Credit I of billion,
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banking million, year. compared revenues prior a $XXX were year-on-year XX% to investment Gross down record
and to in target, our in expect pipeline, confident While softness related some underwriting. M&A our specifically we we equity remain long-term
and discussed cash were Expenses they billion credit with month up basis from X% million that look their as $XX on half the Day. Investor and we lines spot us about ongoing consistent XX% secure a year-on-year, to $XXX liquidity. were of at on investments during drawing Deposits up March coming their with of year-on-year the of clients about with holding increased
the loans End by XX% remain gas. all-time C&I X%. up partially revolver story largely were commercial to oil in up environment by rate loans increases March. is term in we loans builds by I mainly XX%, driven Higher lending unchanged. originations selective. included largely Credit real were lending were which of low of declines C&I and reserve $XXX the utilization charge-offs, driven as remains billion $X high. loans and period as driven mentioned offset estate costs up And in CRE year-on-year, of were net and an XX% here, million by the increased
XX. and page Now on on to asset management wealth
of a of by income XX%. year. to net volatility. was of levels margin in investment and largely These higher the Revenue inflows X% wealth $X.X ROE market in year-on-year, then, addition, and management valuations. the And up reported net offset higher record we of market activity million related pretax on fees and management past $XXX Asset lower over average by with XX% brokerage saw March billion driven increases were recent
year-on-year into the as were growth. and in revenue Expenses saw increased by the were year-on-year $X.X was our more $X.X trillion as wholesale mortgage well January volume by balances offset X% earlier. related strength loan lending. March, were interest and lower client up expenses bearing leading overall of up saw products. impact in million, X% flat of and $XX long-term billion market trillion, net levels. builds strength in industry $X XX% on offset billion billion funds government reserve of the X% business of driven partially February and COVID-XX as higher finally, were expenses. in costs $XX with growth same Net well Credit were liquidity offset than we both and inflows, cumulative of time, $X as March. assets and outflows up inflows investments net significant driven mentioned by At And by AUM the driven inflows we as loan and I were Deposits lower with by in respectively structural as
was million. page to investment lower rates, net on Corporate a Expenses income down to net partially due Now gains loss $XXX decline by $XXX year-on-year. reported Revenue higher million securities. $XXX on were lower of of interest offset XX. primarily year-on-year, on corporate million $XXX a net of million $XX million,
Investor a today, down At XXXX. slightly be you advice turn the now, we CIB in year. expect obviously, significantly. in about page for showed we the quarter, what expected we partially idea to we since second billion to income on rates, to and from to let’s results full net balance which further see we for markets to by XXXX growth backdrop latest And billion. you offset the give interest to and from the sheet of then, NII outlook. for $XX.X expect XX changed Day, And has where the path be an know NII, pressure $XX.X Based NII And
it’s On we on level estimates But heightened so always to the headwinds current best more our to today, based provide even do see noninterest of difficult to XXXX. expect given meaningful and revenue, XXXX guidance uncertainty. compared in
in of neutral. in revenue, NII to and also and $X.X these impact markets which due to a the rates headwinds billion quarter, CIB noninterest therefore decrease revenue addition all else In items two higher the equal, first the to is the offset significant include is
banking to and pressure investment on expect fees. AWM also We see
to adjusted calls. we’ll volume for dependent lower at updated revenue-related And earnings we the Day. of future saying expenses and outlook largely billion, It this and keep at to XXXX without expenses all $XX we be you expect provided versus due market Investor is now goes approximately
around facing So, continues the crisis unprecedented. all globe the to to as up, unfold wrap are the COVID-XX are we challenges
to do we and we what path look the as we And quite talent, there Although going employees, that we forward, what communities, been. the will customers know continue like do always will so. know don’t and be resources for our to is operational we clients, resiliency have have
working is that communities. our harder our than And them work about the thank that resilient We’ve ever proven continue ever our clients, more customers world culture. of just it’s never proud stronger employees operations, we and around with not enough. Our than and about serve being to have people to feels maintaining simply also been teams can’t
line operator, that, the please And open for Q&A. with
