JPM - Earnings call transcript Q3 2021

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Operator

Please standby, we're about to begin. Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's Third Quarter 2021 Earnings Call. This call is being recorded.

Your lines will be muted for the duration of the call.

live presentation. go now will to the We Please standby. turn this CEO, to over I'd Jamie to time, like the Barnum. JPMorgan Jeremy and Financial call Chief At Dimon, Officer, Chase's Chairman and Mr. go please ahead. Barnum,

Jeremy Barnum

everyone. include a as Thanks, equity XX.X refer of EPS $X.X page of XX% an or It billion, $XX.X growth please an while delivered we remains OTC disclaimer begin cover X, few The return stabilized Operator. a credit quarter, XX%. firm the number release, billion benefit Good a presentation and all-time an results available net particularly reserve And And on of website we on investment to Starting indicators on tangible back. quarter, be consistent items, these another record see Company be for was net healthy. the revenue banking, billion, touching tax of reported with robust $X.XX highlights. is loan credit in muted, quarter the on and in our in across more a strong poised for including on These M&A. and of morning, common card. this quite for Adjusting XXX last more well delivered which has the may income and to million. growth continues to of I'll suggest it to detail as shortly, income

in costs across CIB fee versus offset And income gains the billion billion experienced up expense was lower by lowest and interest X% in Balance in was higher were recent more of revenue banking X, offset of revenue-related the fact, On securities X% we've by Revenue continued impairment AWM absence NII. home up X% in the lending. that $XXX of and growth Markets largely lower $X.X on have generation XX.X in legal investments detail. and with driven reserve and losses and noting net or NIR X% last Expenses year-on-year. $XXX net of prior was net by credit billion year-on-year just offset by net are charge-offs Sheet $XX.X In worth rates some release. and volume driven and mix were the charge-offs and it's year the an we year's up But were prior history. predominantly corporate up approximately half also over primarily million year. by expenses, number. Net million lower of third-quarter Page solid of investment benefit a higher

$X.X to Let's next on dynamics, driven market Reserves We cover less benefits. exploration macro billion, XX.X for surrounding the unemployment page. labor and which uncertainties elevated downside still the accounts released normalize. current at COVID, reserves environment the of the as continues by billion expanded severe stand including this scenarios quarter

And investment only and line digital travel, advisor versus assets per and XQ X% $X of And both the Deposits XX% of growth, moving August very net RWA. of quarter, data, repurchases points we're strong. was quarter, 'XX flows third on Now channels excess quarter were entertainment the patterns last X% and softening deceleration higher the payment common retail reaccelerating $XX.X with account X stabilized. we on track the spend, year-on-year. our from XX.X% of FDIC starting balances in growth data, and dividend quarter, data, see reported were early of of let's releases show this quarter are to of including share ended $X the our variant originations. new have traditionally Card the X. Similarly, And XX% number versus the come within deposit up in Banking revolve. some and this segments distributed market with X, while driver, spend page in Community businesses billion of a in a firm and to meaningful and stabilizing. is performance that down higher year-on-year. balance share up September, increased up to we Touching contributing down inside With X% outstanding’s were Delta starting to as X% in on highs basis from spend the bank with reserve retail that to rate up up and billion when large within normalize still based we ranked income XX and client evidence the credit share. on look The were closely recent quarter-on-quarter, shareholders of on X and debit the net on billion, billion revolving that, revenue indicating CCB weeks. X.X million sheet the elevated, was to XXX and it's ratio and deposits modestly 'XX, we quarter-on-quarter, year-on-year primarily deposits while capital down of in capital including Notably Page CGX up to on benefiting was excess and year-on-year. very was combined move Consumer population X%

balances. the prospects about optimistic we're result, a of card growth as So revolving

originations record. It or quarter-on-quarter outpacing Auto, had quarter year-on-year, XX.X prepayments. share and XX% down Average with was only Moving strong purchase XX loans originations, nearly but the X% X% gains to billion in in refi portfolio volume And up additions we billion, year-on-year, totaling for reflecting another last up second now record of market. home quarter's lending. to

more up X% up driven I Expenses by mentioned the lending mobile growth users has with So XX% were And just overall, active continue loans we in X% year-on-year to that acceleration during almost XX home the business, up the persisted including generally, investments billion, see adoption marketing. X.X were in year-on-year, in and quarter-on-quarter pandemic digital on to million. card PPP, the

growth and sheet balance our looking by household with that, forward, encouraged So we trends. are

card return given the time low. expect credit more versus balances take on we amount delinquencies it offset year-to-date basis to In low pre-pandemic in and levels, liquidity of a credit meantime, lower the some system. However, than In to charge-offs remain card the NII. to for revolving XXXX, extraordinary losses

primarily prior on by up market year, underwriting and were that year-on-year, corporate tripled $X Page by from acquisition record and of share revenue year-to-date our $X.X was doubled. IB in IPOs. rank benefiting advisory quarter the and fees in net the up M&A CIB in Next, was were maintained and year An XX.X a the Debt X banking we loan year X.X%. of of leveraged billion our number all-time fees of activity, an investment performance XX% X, driven down billion. income Investment on XX%, strong surge and billion to a sequentially. in reported fees wallet we advisory were an with strong driven up performance financing. and bank driven And fees on revenue XX% X% equity active linked by underwriting market underwriting, up XX% equity primarily almost versus

the but fourth overall to remain M&A the and quarter, year-on-year, ahead IBTs pipeline if be sequentially. the healthy is active. up market should so, down Looking to And is expected

continued year-on-year performance as were to due well X.X record across in third up commodities, activity billion, momentum to total normalization the a strong derivatives Fixed equities down record quarter, liquidity we income as ongoing in and ongoing in products, up XX%, Equities last in portfolio. reflecting our driven well spread to compared by with across quarter and an was Notably, third as year. XX% adjustment Moving down cash, revenue from prime, XX% products. XXXX, X% regions as assumptions Markets, higher was balances in client to strength in a and, derivatives. particularly strong was

investments. market excluding payments of terms strategic the fees, record current our XX% Wholesale quarter keep a difficult deposit ability by were by And billion environment or Expenses margin be as flat year. fees of and of X%, a on costs upfront. And forecast and But in offset XX% mentioned In driven will release offset by of it was reserve the revenue-related continues by levels. credit compression. Security I X.X as and mind driven lower up to of outlook, billion benefit was driven revenue higher was primarily the in against were or well Services last as higher billion million, on to investments, growth deposits up X.X revenues. compare revenue the expense, fourth gains by that growth partially net year-on-year XXX equity challenge $X.X volume higher legal up structural expense. year-on-year

middle by down and higher Expenses revenue levels. banking. expenses. up MNA with worth up by in modestly billion, revenue. banking in X, originations sequentially, seeing across income utilization seem year-on-year, real deal X% $X.X also were commercial X%, by Moving on to banking. was XX% PPP, slight stabilized at lending banking loans consistent investment up and with higher billion predominantly with low banking $X.X originations. albeit And volume I wholesale XX% financing payments billion quarter, on up higher large to excluding payoff investment last was but and of offset were larger middle-market are were have higher of were to of of commercial in market. revenue were driven uptick client up banking down activity flat a among it's Record we those strength X.X increased C both reported estate operating commercial and in and rates gross & loans and net by higher X% balances, quarter-on-quarter. mainly noting driven $X primarily loans revenue-related Page driven due X%, term investments corporates and And CRE X% corporate acquisition-related billion that continued net Deposits year-on-year activity historically

of And net by were of charge-offs with business, costs on Page X X. benefit credit of releases basis complete to AWM driven Finally, XXX points. reserve million, lines net then our a

record income as balances and with fees. XX%, driven Wealth as billion year-on-year, of largely of of year-on-year distribution $X.X Management higher fees up margin net X.X Expenses X.X management and in as XX% by deposit was were pretax deposit loan XX% partially were and compensation, compression. performance-related Asset revenue up reported growth of margin by higher billion offset billion well

$X For of were strength of and notable And to and continue the inflows across lending, up mortgages. up regions, AUM assets with loans were year-on-year trillion, long-term driven overall net by custom strength strong X% of levels be all equities with billion, XX% inflows. positive classes, finally, securities-based quarter-on-quarter, and in lending, trillion XX and higher asset and quarter continued fixed $X.X XX% and market respectively, channels, income. in net

up were sequentially. deposits While X%

securities Turning the year-on-year. I to II million billion X. million XXX was a deployment investment last by compared million, net corporate XXX in of million XXX of million of N mentioned of the primarily XXX XXX down down of $XXX million, of including a loss a realized XXX tax upfront. we reported loss net quarter Corporate of losses year. Revenue gains primarily an billion legacy down Page unlimited of were absence And impairment million a continued. opportunities $X.X was on a growth Expenses million on in deposit driven loss prior investment the year. benefit, as net that XXX X.X to million XXX the year-on-year,

page, outlook. next the the let's On discuss

XXXX X% adjusted billion net and around expect the full-year guidance. be low. lowered largely with still to in card billion. previous be $XX for NII Our for outlook we've remains as rate outlook delinquencies $XX.X very on the approximately We charge-off expenses you'll to see remain page, to line But as our our approximately

as pandemic. the with both communities. up, our tail we to continuing and while enabled as is So terms pleased Sheet, us fortress our through strengths perform this as culture, and of clients, The talent difficult have performance to this diversified Balance well quarter's the customers, serve the Company, of in well hope we're what business approach end our period model, of wrap we to

the the undoubtedly the new forward. open but confident we of With with going feel ahead line the As will that, and and the environment Q&A. strategy arise, look to we position challenges Operator, please normalizes, Company

Operator

coming from first And John, from McDonald our John please question is Autonomous proceed. Research.

John McDonald

to fourth the XX.X for be sequential the It what our the to guidance would step-up seems that the to think NII quarter billion. of see about the to nice Good good about forecasts? expect drivers NII year. and imply ask as us to NII you fourth morning, interest net do income you XXXX for quarter a Wanted in a starting Was step-up wondering roughly for point Jeremy.

Jeremy Barnum

catch It's John. is a sequential Good good there. question quite and of true, Yeah, bit growth. that

XXX revolving about high. we've if million. do If is you been what suggests the it about non-intuitively reality, math, you about so in and outlook and on, saying the for And deployment increase The think increased

explain couple of to are within just that, so a factors. And there

markets in of of quarter, to would from amount ignore. number. meaningful sort general encouraging a sequential increase and our actually in to also you and growth fourth some third quarter there's the forgiveness PPP the one, So contributing And there's between we the fourth NII which

about next that -- sort the give you we'll terms about of a I that revolve, be we've take is XXXX, out, then fair card strip that modest XXXX little we light is you is lower little of to a two from of for But context, of it's NII, bit number that those acceleration that think in with If happen a in a which I you overall story annualizing think a consistent, growth, bit color In number believe more and quarter. obviously, little still that assume card been thinking what real that, see the if item. tying, higher you revolve. which in XXXX the will lower-end bit would especially especially more estimate

John McDonald

Okay. conservative appointments, you cash us your you balances And update you're and what factors around that, have liquidity continue thinking on deployment, grow balancing? on pacing and your a to follow-up, as could been liquidity

Jeremy Barnum

start At a be inflation, we're meaning believe consensus. We that about happy to all to recovery. We are coming all little last stance of quarter, more their some higher. changed, in possibly to a management. the still I we line And deployment, equal, and saw robust for the little in patient. relatively contributes a willingness market-implied little say, if policy cash, obviously with the central still to that global also highest duration that, I front-end so deployment. see fair think given bit concerned as still a totally. opportunities would it's relative We some around our to banks well bit, are normalizing to world Yeah, rates wouldn't nothing's view rates patient surprising relative it cash-like activity, more really But say that and to a be about be as the are level, bit else

John McDonald

Got you. Thank it.

Operator

Jim Global is question line of next Securities. Mitchell Our from coming the from Please, proceed. Seaport

Jim Mitchell

Hey. Good morning.

loan on first Just growth.

the playing I you as card the little months like it of but supply a a chain C about you I think what strong loan demand outside know, noted, ongoing out, starting you still got finance, issues. of show we and auto and big As signs don't weak are looks acquisition, life, has to &I been guess the are we've XX seeing, progresses? as picture, expecting trends how next seems

Jeremy Barnum

Yeah.

through So of let's areas go loan one in. growth the interested that because obviously, that's everyone's

start going Delta to that of we seems NII obviously like most recovery fading in if of terms underway believe so And said, as one going strongly and we card, some a which it help. life you that's we so hopeful the the impact, signs see is and of really is that's is with amount to

for deposit see the are the we would inside outstanding to I slightly look holiday the we to in just question at we that at growth accounts when If spend lot look Revolve. the And customers But normal really and Revolve, down Card translates look there. customers, talked typically both about expect excess growth and in actually a spend in forward is the do and you and us seasonality, that balances who we normal as prepared Card the have most who Card whether ones deposit into we to remarks, our with of noted as see those the look inclined be just season, data would we've faster there.

of perspective, take going in eager uptick core higher outcome go rates for we in you expected rates with as us quarter's bit makes and to a potential than in year. about go lending, next time the increased noted outstanding then card to that them also corporates. smaller prepayments But broadly, It's additions In-home amongst pay but the portfolio of to more revolve you outpacing both but with spending, that is the to we of performance we view. obviously, lower front, into C&I, do, for And of size just a C&I the mentioned, grow the relatively optimistic financial I a as that a this from utilization see So the trend which franchise. customers end goal. a reminder, the of the higher part an up little as to key that's were an lend rather to But terms spectrum as of continue.

seeing, have which that the you you supply from about wide-open be theme do to more likely customer are chain with that the lot you issues Capital smaller that So been we've are, a from are to borrowing. less Markets, that's the a We benefited is likely the hear consistent segment.

see robust do do going do that interesting focusing leaning pullbacks, So the that And any quite into plays net markets of that an we is nimble discourage removed usual we've you in see generally be loan of that then in in are too in fully to we on much to it's you of, markets, a out. we're some taking expect loan credit growth would then some finally, kind growth note forward. see pipeline, a as we markets. CRE, we're actually, advantage way there see we origination opportunities and bit it how little there NII growth and expect that would going to indicator And within from I pandemic-related us but to and loan and that

Jim Mitchell

a very That's follow-up side. And just helpful. all maybe expense Okay. on the

spend next year, have capital higher think year, spend. as our incentive higher expect. investment think But should and about? there other to considerations capital increased we see about inflation pressures growth markets slow about into this that investment expenses your are many all and expense we normalizes seen markets, to start whether expenses, You and think it's or or we activity as going peers Can

Jeremy Barnum

Yeah.

bit a all-of-the-above of it's So an little I say. would story

the and all, do but going budgeting next quarter, giving year. that of it's to sort to of a you more expense are XXXX early of of first up expenses be middle We'll in guidance. realistically, still So we're next little be

else capital Now, of of both on the down of have in we normalization in over see expense we to a have last Obviously, think obviously to function all in see pay through you equal. the of come less compensation and the and growth your the strong very that going in seen with expected, therefore, therefore, for expect treatment line the expenses, the actually. light point pandemic, mention on couple we've increased you than Banking that the way that potentially of point I people that And markets-related would that years I performance is down, the it's amount that would also true performance in dynamics compensation Markets, up. as a of the XXXX, And you're timing lot of out, about not back just participation, seen that would amount number associated to way less investing. stock-based

at We still opportunities. a We all aside, still see see still and inflation is card, yeah, time, question. significant So in are same investing. labor of that the we marketing the opportunities

watch And us but environment, in in stuff, of it's good into normal, out, churns. it's it's just understandable definitely That saw the U.S. was a level. saying, for came item us. a this we You at lot of see labor And September. inflation parts the entry is raise wages we as Jamie look this as effect

expense next So when see we'll stuff the that's quarter, next how we that more all update put together, said, year. but as you for outlook you I

Jim Mitchell

Thanks. helpful. That's Great. Okay.

Operator

coming Mike Securities. is Wells question from Mayo from Fargo Next

open. Please line is Your proceed.

Mike Mayo

metrics I are degree made JPMorgan? couple core you then a UK love evolved? wanted digital the that. third, in the has big And acquisitions during bank are public that a Thanks. I how the acquisitions to Jamie, And would the you in your and for? entirely addition And and that banking, the changing retail strategy announcement about, events comments expansion what shooting quarter among hear your to to with the are to ask your there to Fintech One, recent system what on you're tech there synergies second, Hi, of cloud. change. the specifically, that's

Jeremy Barnum

Hang writing Mike. Okay, I'm because your I on. want questions doing lose track. don't to

Cloud. there's some Cloud, by around private actually when Machine. will the with first. long Yeah, our Cloud time. actually I talking a I you about here. a start coverage We've the Let's for been way, seen partnership At level, high have both And press with nothing say think committed public the Thought we're Cloud new to and

to in main When and all -- the to for comes do stuff core you've five you about. to it Machine able our on of why custom tech that's do strategy We us that's it's a all very doing reasons both to into tech multiple And why able that we did institution and a the across for investments and map. the nimble to resiliency same And Our quickly all consumer products perspective. really do as overall both. products cloud Company But of of the monetization. space, bring we're regulated and you think very lot reasons, to road I want be Thought platform. part leaning the the our be from We that There important want reasons talk being monetization normal are run heard faster. consumers leadership that involves the and innovate

able mentioned, strategy on the in is to than critical. are this entire bank much real-time central I to be APIs based processes. Increasingly, want to batch the resiliency run more in rather As environment. we obviously, And

that's that. So say I what about would

-- Now yes, Jamie.

Jamie Dimon

all stuff big like at have used which we conversions general It's around other like Thought we the than when basically, do to do different to you conversions not you that. big the the them past, and is, when bang, these did a can could the part ledger. you Machine do once, -- schedule And do at pieces, consumer. time, stuff in core a all merge not

the But it's at So it a -- put hasn't the at core changed for strategy all. risk Company. lower

Jeremy Barnum

Yeah.

about. consumer international asked you Okay. acquisitions, I think And Mike, then and

of early we just to you days you international rebranded JPMorgan on consumers, as a that, launched ago. it's NutMeg just noted terms of but will -- that updates give obviously couple days meaningful seen that have a have actually in we've will So Company

So proceeding seems and pretty well received. at all that's pace be to it

I more us think say we'll so differentiated have that and seen over Generally to time. has the innovative, -- offering about

Jamie Dimon

just they're is I worry right game This going with that thing or not, plan. XX-year get next a because to -- work to much again, try going metrics to is be this to And it's this we're in if about going the the two. this ever long-term to this is month be retail overseas, digital.

so to see and material at firm's very can one patient. And some report they're metrics for point you to not will to but Mike, numbers going be we're years. so we the going them, be

Jeremy Barnum

time take to going sure. That's Yes. for

-- So little a We're not have some overarching in this we've generally, talked acquisition bit strategy, that the claiming top-down before. of just acquisition terms strategy. but more about we

and related think you If adding make if themes around are some the just pretty bolt-on we that I for argument, you'll in just broadly can sake doing sense. capabilities. additions. ESG AWM, you theme of a there consistent start capability things -- there that detect with of see are But

that holistic done and You've says. the And mentioned international game, we've in I most that definitely that we've narrative the stuff that of consumer, been customers. in a the as unified of CIB. integrated offer, like will the within expansion especially yeah, doing very there's of terms CX And always think some and to and then a by we of providing growth, done a We've it Card that. think then, more already proud it notch potential things and of with some and our theme stuff little bit But Jamie the lounges we long the experiences for collection the recently, in fintech loyalty value be can around we're product. stuff we the is proposition take the up another of

I on everything touched think Mike. there, I

Mike Mayo

why. we have a growing the don't That results, certainly And businesses just where we And the did. in you just has see follow-up, efficiency the marginal the improved. as you're

marginal or that tech-driven that that of you how unit much to So color versus going additional have your, is or other But guess as the don't efficiency what improving? down metrics reasons is why we I are your is your have. costs just internally marginal efficiency any

Jeremy Barnum

as I stuff, in Yeah. fixed a little differ I see mean, of I about types versus space function would've how revenue increases marginal parts terms to people lower marginal a talk said expense on the most more especially reality, in are a of a bit expensive of more floating. you reasonable that people little of of can bit think actually this think. what than lot us

a that So a that scale in big with had we've actually and in your you that on I organization. but of see, we're play is type leverage environment the on NRR especially site would've big really the operating consistent expected, here. increases with true is little capital a Mike, revenue bit There's the the what markets areas to relatively point, what's also

nimble the as fixed possible. a can is a good over have and that so efficiency that is as that's that that play it possible as big base creep sure long lot that it's about modernization marginal a cost as time expensive We making as there. And and as possible. of But agenda doesn't be

Mike Mayo

you. Thank right. All

Jamie Dimon

one worried Mike, about people one forecast the the you year things years playing We're of game is here. ten about, you And and for for think the that. stuff next like

byproduct So banking not margin today. in who we're And with But very certain in and even players, talented, not are that or information. in things, that. we some competitive going global like, going game, it's to competing something we're large, we're to long the compete are going like to disclose -- because

traditional So even what some of these I acquisitions banking. consider are that, more around than around

every my do Every going critical in to forward. XX state year it's competitive technology, of know, And like Obviously, that's the the month to are so was just to affairs. Cloud quarter, whole stuff That be life, true, and things by of been so permanent Those -- modernizing you like of ago. that. we've a now every way, years

Mike Mayo

Thanks. it. Got

Operator

Next a from have from Ken Jefferies. up, Usdin we question

open. Your is Please, line proceed.

Ken Usdin

revenue help to the wondering card little can We if line general I of line. is understand was expected if the how Thanks. for that can you. ask expenses fee rate. third and upon marketing morning. the to more us just you quarter that and Thank wanted outlook expand just you up much overall what in inside rate. a revenue underlying and fees And your captured bit go certainly the Good all card

Jeremy Barnum

Ken. Yes.

You're of have the card in expected. you which rate drop right. is revenue function Part quarter this would spend, of a marketing the higher

we pandemic share we're from the As in are of said we growth fair and that there. importance last with quarter the nice result as fact uptake the of a of that a we're lot out the good seeing of our what getting emerge and of the terms offers spending seeing in market and growth

card And if So bit based up little sequentially, that's expected. will amortization the And marketing remain actually anything on I just how a ticks works. think there that number elevated.

that an drop to the we have well. quarter expect should you So to see adjustment rewards to this But this continue. contributing is the as liability, in which addition, quarter

So that continuing. that see is not something we

come run So the that we as out rate look forward. should of

Ken Usdin

overall of what understand help us what the going you you that think and revenue rate Card the is magnitude Can about forward?

Jeremy Barnum

quarter think remember something think that number to. the rate, liability the we'll really a right. I so of confirm million, I eager rewards I I'm -- manage so but I mean, correctly, this But think it's the of revenue we that's Card that, the if adjustment not to I XXX guide don't order like was

Ken Usdin

to potential partners comment a year around ask supply the I in here? world the you hopefully If hearing made you and around next yesterday Thanks. are What easing logjams time. this about just your for from from just the terms open chain that by of Okay. up the Jamie, might

Jamie Dimon

know good just year. And economy's I just too that supply is aggressively extraordinary supply the card shape. the credit hearing supply -- the that chain the simply bit. economy. issues. stuff It's good I'm working you're that I'm works. still chains people a it know X talking forget be big hearing. picture. has than a which in reversing I people because Company on or focusing X%. in was we'll buying time press, fix debit great up, up over-focus fairly dampening think a who's different little we're is to not still much about so much What There's [Indiscernible] sometimes fairly chain card economy. Sales is capitalism hurt over I I in doubt are a also spends one not not not changed, going The are

Ken Usdin

Got you. it. Thank

Operator

we up, have Please, from a Graseck from Betsy question Stanley. Morgan Next proceed.

Betsy Graseck

in our little to Hi. little I offerings And adjustment. still be know rewards, just move one-timer fees us regarding cashback million persist following to because just -- would it etc, on the the that a is think through million that there a big on But a decline it trying I'm on maybe one-time roughly is of, have the marketing that to is realize XXX that here. just that one, anything, not? discussion hey, questions: have unlikely have it the a leaves the driven is more X a rewards I we're of up we so Card ramping more was bit in expensive, Q-on-Q. with or a XXX mean, pretty and up. I a piece particular, or going and I that's function it's

should so you had And in from the expect step-down forward-look you a that XQ? is been seeing what

Jeremy Barnum

Yeah.

the short, really Betsy, So latter. in it's

committed one-time investments. - the that as is of rewards thing of in that to to spend. So lack liability engagement the at really those moment marketing adjustment. is a is a very with for see nature, product, term, And investment of critical high the and we better the this moment making rest ish And only we're it

And little we elevated. tick if as so bit to a that is look anything, And remain going forward. off

Betsy Graseck

then we SLR, should be been more change, some is, should you're [Indiscernible] of so pref might anticipate right? the Thanks. today have Supervision, thinking issuance Like how about day that help of maybe that you environment and Should had them. that the that don't to for are Vice-Chair Vice-Chair is question these other things growth I Okay. think going of changes as rules we looking be separately, how LCR, anticipating hoping the Randy order the last we for, forward? the in positioning Quarles we the in an And where deliver

Jeremy Barnum

Yeah.

is that stuff a pref giving staff isn't I changes case constrain, X it on non-risk that expected, things our we're a therefore be complicated we'd hopeful SLR without seen to strategy of size-based we So callable and and years. balance try We the endgame, still issuing may connected. the on for the will to but soon. sensitive those and been some that that constraints being are we work [Indiscernible] that product want over disappointed capacity on that's that with some high-cost has little think, And stuck haven't issuance ourselves the the hard that know with come we're of to the at obviously, the deal

above of now, target part that's be to a reason our that going bit the continue in why nimble we're to and operating little So respect. we're CETX just right

Operator

Thanks.

from a Evercore Schorr ISI. question Next from up, Glenn

proceeds. line Your

Glenn Schorr

Hi. Thanks very much.

the and on seasonality, card your near-term. spirit about on cards your thought focusing in for revolving not [Indiscernible] I comments payment optimism the of rates overly So hear balances. Did on

hand it your and have? to an there there about overall. Thanks. have on the new the might a perspective buying on implicit option guess or I is cards comment within may I'd now, not So old, impact get payment love this later, pay industry but may

Jeremy Barnum

Yes. Thanks, Glenn.

[Indiscernible] of I the growth obviously high it's of seriously. directly the a convince BNPL, experience. terms thing at Chase kind in speak which Company there talking disruptions, in of moment Everyone any as obviously, and moment talking a Plan, experience where get land. to post-purchase a that the offerings disruptions the is back we're us installment customer form seen, e-commerce in layaway portion of that's about because My But for you it. BNPL, all case good really threat. the how market. we It types compelling have it. profile small it's checkout for even and on that own So is not in a is feedback our of overall though that potential you We're that very Chase looking can especially And yourself in it's funny although given of remind will type it payment we -- emerging, the of of particularly easily relatively My experience taking quite the everyone's about it's a and the Loan we've

whether that downstream can actual installment quite we eligible is consumer potentially of just select too but a across way should is the customer really plan you that then about trying is You the app yeah, at of point-of-sale, to BNPL, acknowledge we're to at here, our what an we bit upstream it which But and strategic business if questions thing be that you little about the respond growth some respond it's, is more and move on moving looking take want. more we're BNPL that raises holistic back, need it generally purchases step customers, a looking it there. all to reactively, when think But a the even it's obviously, narrowly in can driving the how to do and we too and a interesting. not and and in what

Jamie Dimon

in I think it's Company. another example of the growth

accounts. card You out attached banking saw about and They're longer and to a firm going no debit just it's BNPL. a have come

of competition different which So these respond forms are to all to. have we

when these spend talked expenses, in spend our to all why we whatever to like, with we compete folks have that's so And space. will we about,

Glenn Schorr

Are or will any have within crossing across right China domino your some do about is, about in expansion that. all marks borders? Maybe that think a and or Thanks. there is their meaning, I contained comment funders, is market, Evergrande the the one what care thought border, on the mother this within appreciate effect their most see to people an perspective you get and market?

Jeremy Barnum

Yeah.

So everyone looking Evergrande. look, is at obviously,

Let absolute for us, in start just direct of me by saying terms minimis. is de Evergrande exposure that,

piece. one that's So

also financial As property property we you sector, modest. deal that to the sector, China general, those and with, China very are well would in in exposures looked as of more we've indirect institutions exposures at of expect, all broad the terms as exposures

So expect we're, for and impact would us. about not you obviously, right but now look continuing reading closely to we're across do, do terribly watching to what on the and it us concerned

pretty terms this red lines. authorities particularly my they don't like hold of I think, well by in own about talked when was three seem telegraphed but high I it regard, the does in Chinese this cross-border their opinion contagion, on

better contained. But I And market, managed. course, being that's process is of now happens. a would the view the say what it's it right will we'll see it's So be so that

Glenn Schorr

Thanks that, for Jeremy. all Thanks.

Operator

from have proceed. Ebrahim up, Merrill question from we Next of Bank a Lynch. Please America Poonawala

Ebrahim Poonawala

or BNPL you is that. the the leadership Do one the at they're you in to the have talked them we playing non-bank late when about would think it I lot just new example terms big too leadership in around we in see clampdown, field? at to do morning. discussed; this up the alert players, were create think follow change agencies. agencies, wanted Good good changes, to guess FinTechs Jamie, you've on that a of and tech arbitrage, framework I at that arbitrage, as two a a regulatory on look regulatory focus you of the regulatory think regulatory past for things is a and really level of

Jamie Dimon

beneficial like and in we're like compete to relief. something we're not the have any be fintech you're expect changes dealt, that some that with that there will don't think, maybe that. hand not help what expect I service, banks. people have expecting products think just anything some I we And, that. based on people that going I and more And I'm to banks regulate clamp or down But --

Ebrahim Poonawala

buybacks it? Good. remind just anything look how there just Yeah. didn't tangible, impacted this some the stock the it's the And I us and here, at the with of that to times I powder important dry to if be non-bank separate at And banks, just see Jeremy, any as when there building guess, are rate better? gets is quarter keeping point the opposed on going X.X economy numerator, I was just then on players scrutiny would noted. of but question, and good wondering a increased we CETX

Jeremy Barnum

Yes.

buybacks So, say, often the important capital hierarchy to of at are they're our we how that right. answer end the

an light of which dividends, So of Fed-approved us including and simply where only the sustainable look organic have important preserve environment and we gives don't buybacks. do a nimbleness, And anymore at have to SCB a we buyback that light acquisitions, comply is a thing quite bit of then we're with to plan in in, growth, the world BAU, and we that minimums just in

Jeremy Barnum

where where do year on the next and horizon. still hope loan are growth for potentially we acquisitions

other nimble quarter on So a just bit to really in there. and little in RWA than growth stay going nothing of really going the denominator this we're

Ebrahim Poonawala

valuations? a there is in holding opposed back outlook, dry-powder Jamie, some excess your at given in be to case buying But of current as macro just terms stock made, to capital

Jamie Dimon

trillion buy one evaluations stock have we to day need [Indiscernible] as I extraordinary expect to And dry should you're securities. I of -- billion dry and much I need? -- year. $X.X up, have earned and We do amount Yeah, an liquidity. don't XX how you less. goes powder, you capital cash marketable mean, pre-tax of a mean the powder we going we extraordinary,

issue We of -- issue if We have can to can issue do had we over something. billion prefers, equity. well stock debt, XXX we can XXX we

I So think powder. don't we need dry

I think it is. where over our runneth capital cup

Ebrahim Poonawala

Thank Noted. you.

Operator

Please proceed. Next one is from Steve Research. Wolfe from Chubak

Steven Chubak

morning. Good

loan of you Jeremy, category. helpful some growth the provided So, on drivers detail by

whether your loan something it's actually pent-up demand, keep growth? lending acceleration normalization just is meaningful payment looking or more loan begins to would GDP that Just the card growth that economic rates, anything else? greater or there ahead, justify expectation of Or is with pace activity,

Jeremy Barnum

loan cash I let a a about the higher, loans revolving -- you soon, if our consumer billion that's X me talked down that Steve. question, a is answer you Revolve function still, in, world really which our especially at of that think a month, know disproportionately various out of you piece. where, $XX sum we've roughly I'm of mean, away Card well lot another as if fairly the wholesale sort segment potentially trillion in over relatively buffers, outstandings In this of high as a it believe the about spend wind if math, if obviously, as meantime, with at NIM tapering one -- and things. larger the a NII we you you the Spend, me within the leading of a and so from QE. level. loan think But to into in revolver even in XXXX, customers. growth which to decrease driving I And up of Card drives story not do. you're system. the I see $X.X our months Good if the categories, I sorts if move plays do can the But And giving bit position that for really In detailed product guidance little the

with dealing a that we're a surplus system has So lot of liquidity.

at for And lot so of a a seeing to driver minimum. imagine of in realistically, it's us. wholesale loan really growth that context, But. a performance that's hard frankly, not big

if helps, So that I know don't

Jeremy Barnum

but question. a it's good

Steven Chubak

Thanks, on Jeremy. It absolutely commentary. [Indiscernible] helps. clarifying And the question just one

an result quarter's this liquidity the assumptions adjustment included noted portfolio. You derivatives to in

maybe actually adjustment it, you that quarter? So help impact can entails, in unpack what what size the could prompted the help and you

Jeremy Barnum

about revise in take that bit to certain transferring but help stuff associated just course would type just don't another be the which bog-standard of It's could it costs as book a what we have. evaluation normal our it, with bigger. in assumptions derivatives liquidity of would happened stuff I types It's really XX be terms the minutes potential little positions. transaction we unpack

I it and been have that down XX% was fixed would XX%. income think down think without I

helps. So that if

Steven Chubak

Thanks questions. for Very helpful. taking my

Operator

question Deutsche Bank. Next is from from Matthew Please O'Connor proceed.

Matthew O’Connor

and look of do we And securities? in up. was be the liquidity. think a it you at guys. since of loan the hoping capacity much how expect of and are And, that follow take that understanding to the lead growth them into out little guess, but securities COVID. extra deploy billion can Hey growth considered I If And I you on loan XXX I up deposits. to growth deployed it's non-core, deposits, about an some the It's growth know in to pick book to bit. not the

securities? there billion is a So way buying XXX size that'll go to that some. capacity terms But in a of to

Jeremy Barnum

Yes.

also not purpose you basis, lot factors moment. NII. decision said, always short-term as decisions at So what growth, the long-term play on the I make into a generating think deployment of is loan economic that we but will there's these Obviously, any given of for the

see capital that about biggest the value. you when probably have is or if so now. think volatility, And do whether frankly, single that, right And to factor not you you and the drawdowns, anything

earlier, As I about talked

Jeremy Barnum

it the from least market is views, mentioned there's that compressed, start ago, equal in that true at the more line liquidity QE that for the else but And bit and remains and lot all little a lead spread very, to you a second rate light with of that our not deployment, that in may right when of perspective. I there. very example, talking little a has environment more value we're about come product, a just a bit numbers in now.

being the convexity try the always there, looking to long-term scenarios, management, of all we motivated and considering there. risk considering and tactical sheet, at the So be value economically considering balance

that's So that. about would how I think really

Matthew O’Connor

really mean, on you, of XX-year are at near-term did of billion and is point sitting So a lot saying to your here confidence not XXX have think that that basis, or moment at way is it's X%, do billion? I I if example, looking investors what XX-year but frame to at appreciating capacity? you're it this to at to this longer-term that any any going these just say XXX to I Just the a part for gets go magic levels. for not you what capacity, do the hits if it is X, curve

Jeremy Barnum

No, question. I the get

Jamie Dimon

XXX do We billion. could easily

Jeremy Barnum

given I amount. I question. idea the we get I a know, would I of stuff, target get think, at the carefully a to our we why sophistication of just think how mean, which want a this deploy I Company particular for Yeah. and about guess, particular you

always to going and the your in it rate if at what X, not function is. like yield on the it, going XX-year be I is note's going it's to but the where in we're rest options, then why to curve, always course, what's to alluded sure that where's is Of be a Jamie but going other the right, situational, it's are X, of the you question it's it's of moment. mean,

be So about we're tactical it. always and going situational to

Matthew O’Connor

and us have size back acquisitions, small capital characterized year. what there the squeeze a Is some bunch the for in, a That's something helpful. you there looking announced And this relatively that of know impact of of that? of kind -- is and of full quarter as way I kind most could obviously, the JPMorgan then into you've then you force when that some And way what of to a the the of and but just any broader is how disclosed frame us, individually, Because financial at you're the lastly, fit most impact? terms driving for look look deal? you. remind deals weren't capital Chase? does you like Thank

Jamie Dimon

nor not in is the impact capital disclose that a one immediate The different. isn't total any is and And financial deal going impact. each big we're more to

we and Jeremy is can. said, into it's that. to products, lifestyle, stuff In about longer-term was if travel, products, stuff there NutMeg more over like that, in that. of and us between years of lounges, then a timber retail asset millennial, positioned So ESG management that CX [Indiscernible] stuff already get products, overseas XX like Consumer, And view trying products, like

Matthew O’Connor

you. Thank Great.

Operator

coming from Please from RBC is Cassidy Capital Next one Gerard Markets. proceed.

Gerard Cassidy

regulations with that's end game, Thank about you focusing potential we that you. growth the coming focus morning. that the when [Indiscernible] in and earlier forward? maybe the mentioned and perspective, haven't were [Indiscernible] on were could Good we leaving anything on you you changes talking what III about Basel rules the soon very are going affect Jeremy, your SLR Can But from you saying share is -- seen today. Basel and such, here. your with us final III guy's

Jeremy Barnum

Yeah.

Game that the the Basel with about -- I Basel the So the is Basel I need mean, to floor. simultaneously you think, the and thing floors End floors III Collins standardized essentially deal

on So standardized rule, U.S. you working is stuff, tough compliant, challenge a the of the simultaneously -- while floor from Collins have in minimum. place simultaneously perspective to put also staff need or Basel the to WA the they so with which that's this complying

hard it's have all sort and And than otherwise bit explains it's a so longer we that's taking quite and it's thought. of why that complicated might little and technical

significant. level, high impact In I be a that it's unlikely our of growth, to the terms at on long-term mean of

the that is SLR, there most I obviously, related part non-risk of pretty was. in with as in the nothing the some by are size-based think terms we've score a of very of case do the the reasons not these extreme of really like prominently have metric it's months. what last that growth are the really getting that or significant with the changes in for driven contemporaneously sensitive where to constraints And system expansion GX GSIB, the whether the of to that design original XX degree or in point seen to

the original why believe role. should that we was So that in be as that's addressed contemplated

And so those doing in potential of a optimization you changes, see of us could those. all little response across bit to

You of impact margin. terms the can diversified less a that standardized products efficient pretty stuff. bit Basel endgame and and advanced at might capital big more a We're imagine capital a Company. But different the navigating in good some others III and little things make on this at efficient we're little bit

make have the clarity, we when So necessary tweaks. we'll

Gerard Cassidy

Very basis. good. year-over-year really on good Thank have the a you you. seen And industry in growth then deposit obviously,

deposits all-in. your I XX% are up think

and everybody but forecast assuming level, year, that we deposits going decline second of are shouldn't higher market I'm does deposits not they and be Fed retail really should asking year? QE, you so guys about the be, share just Or could number we after some next You time one see talked even that retail specifically for When being let's the next the the liquidity a it sticky are your that that by to in to QE, this, it to middle with deposits. deposits carriers, half, actually ends what call decline? and going know anticipate

Jeremy Barnum

here. think I of there's factors in a couple

you set about and sake you and tapering X.X tapering, tapering, trillion end of end the for if QE between think the of something followed like it same another the start we hold remember time I the base talked but shrinking, expect the at months system system the constant expansion I of a beginning of correctly, just last between said would the XX our -- would setting let's, beginning that for the QT. system-wide to would size of time, And Fed if with argument, the the second, and of follows If earlier, IPO really and be type RP tapering. last that for deposits, of there of beginning of start our the the be of the a deposit that QT. was of the second only impact the it now on again, pause extended QE of or still look I involves as aside rather and and between tapering the QT timing an QE trajectory between aside end So of end

at bounce Now, high that's and we're of a thinking around be other course, RP could about factors, could it. there but level, how

Gerard Cassidy

you. Thank

Jamie Dimon

just will my cents. add I two

I have and they'll of reverse some it. to think have that, that go than to they'll quicker

year, for. talking and you're about prepared there period, to will or a going we're still then deposits be So a a over reduction increase should fairly for X-year large X be which we

Gerard Cassidy

Thank you.

Operator

from Charles is Portales question proceed. Partners. Please, from Next Peabody

Charles Peabody

report a building. progress your on wanted to morning. Good headquarter I Yes. new get

pandemic? that been running costs, up expense what's move noticeably by And for is vacating move-in that the plan does thirdly, estate build-out? current costs, you. you'll date, And projected Secondly, for properties the and how what's or XXXX, noticeable has affected there then that being market? structure Specifically, Thank that the are by tick that when unloading be through in? the you affected the real

Jeremy Barnum

no to need we material shareholder. think on expenses the date nothing got there that, any duplicate it's disclose. to material building, So stuff questions? sell moving I expense, but XXXX. XX, is plan course, We to There like of is other are the schedule Operator, our and

Operator

Generale. That coming Please Societe from [Indiscernible] Yes, is sir. from proceed.

Andrew Lim

for morning. good taking questions. Hi, Thanks my

on focusing about you Jamie, put, all how you So inflation.

expectations? In materialize we inflationary inflation looking Just materializing does actually concerned, is terms it forces signal can payout metric-wise deal wondering businesses that your the as of, against could this how that you like, there? if how across what will outline to to try do to bank you protect exactly and versus anything if concern. you And with your at is you're with that there the

Jamie Dimon

good. at always important. years ago Yeah, mean, a the look facing X in which, we virtually I which big that's I is the global is back I mirror, And think, here, great picture think pandemic. we should were COVID, all depression,

small growth, [Indiscernible], there jobs went very have become will and good to up have healthy hopefully to are we X%, a good think from no to year large there's wages that JPMorgan. pandemic the too the It's none we the -- focus like to I these be of deposits, not run by So XX%. time. good it'll they it's think it's is will I from it's to I now, that, good your The XX% estate, card, business, open, and And how whether auto, underlying changes supply much real we that Consumer, drive good revolver chain companies, and have. add stuff think endemic. problems. business, clients which be on of unemployment which take and their thing all which

or and and we simply inflation. It's of my the for So that. X% all well, now focused lower [Indiscernible] quarter the in out pointed on have a of X%. It's you part having quarters unlikely have view, next inflation; to be after that, I'm that couple better been quarter -- it's, than not said

people go is, and that we're of eventualities for does up? and they'll have More probabilities is wages? we of have to for tamp think of people And that than some that you I I and X% looking work down. unbelievable it meantime, go this inflation, will doubt probabilities ease out it XXXX. okay. with can have Another prepare late getting with and In good that's chains and the or unemployment, does to think we happen course, growth higher before it's those after start might to and that it question one supply continue and

I people immediate concerns. think that always on are focusing much too

or my revenues, X%, you inflation back still business. have billion of $XX always deposit and in we're open our the billion about mind, in accounts, out it's of also because I If of grow X% subscription going accounts, point checking to revenues. should XX

look services, is security earnings are with the And underlying share. that getting that the commercial we're end accomplished who've customers, if more which all this, everything. crowded to what day, Asset Wholesale payments, of consumer Management, pretty actual the at the banking, pretty per people and so at drives banking, second, custody, more numbers you accounts, good. more

Andrew Lim

fair you're like seems It is it's it's a enough. and view, get of not out Which to going great. That's hand. benign manageable, taking Okay.

Jamie Dimon

It's not stuff And I don't the There effect know. other about prepared telling I'm like We're sheet, -- that. balance your don't thing guys Gelb you putting all I'm -- may for eventualities. [Indiscernible] sorry, talked inflation. you. I be one about, our

have us banks and rates. is And stack things. about more we should of do, high liquid, that One of against be tails and banks are that than the been protects inflation other very high worried

Andrew Lim

if Thanks of has color so for the clarity case of follow-on the the that. indeed? you economics it. that base versus it got Remy. Right, past got a has a number and on just more case scenario, on update And your short bit Could how excess in provisions you've the on perhaps changed question, quarter that base you've given us number over

Jeremy Barnum

Yeah.

looking central I -- probably the a as and the quarter. tiny the know, the at involves downside the scenarios case also But case of actually said this And I prepared gotten you has framework to light extreme the as probability-weighted scenarios. in the worse in think outlook. a release bit base remarks, quarter-on-quarter contributed less GDP revisions bit

right that, in In terms like uncertainty federal remain conditions, if of student the elevated overall would The the assistance as essentially what unemployment some the again, loan features, forms about remarks, of the moratoria, -- even as we until stuff, or much in little uncertainty rent -related that states about I unusual with the bit the said are of of still though stuff none virus prepared foreclosure are we optimistic that type don't assistance. later lot all market year. level to they most mortgage economic of performance COVID have or this a the that of a sizing the off fact labor too. now, There as i.e. had balance, off relative they now about rolled the has and roll moratorium, be

out, are elevated factors which a otherwise relative develop. will there's unusual, environment in reserves to things contribute And we as of slightly So do to that what would have. still play those number the

Jamie Dimon

go interrupt go because town I of just quickly. to. to got meetings Jeremy, out have real I to I am I to have

folks, You for to guys soon. should you to talk and and all listening thanks we'll us continue

Jeremy Barnum

All Jamie. right. Thanks,

Operator

by have further questions And waiting. no we that,

Jeremy Barnum

very Thanks much. Okay.

Operator

that the Everyone, marks for our call of end today.

Enjoy You your joining. you rest Enjoy day. for of Thank now the disconnect. rest the may of

JPMorgan Chase & Co. (JPM) 13 Oct 212021 Q3 Earnings call transcript