JPM - Earnings call transcript Q4 2024

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Operator

Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's Fourth Quarter 2024 Earnings Call. This call is being recorded. [Operator Instructions] We will now go live to the presentation. The presentation is available on JPMorgan Chase's website. disclaimer back the forward-looking to refer in concerning the statements. Please by. stand Please and Jeremy this to Chairman JPMorgan Dimon; like I and Financial the Jamie At would to turn time, Barnum. call over CEO, Chief Officer, Chase's Mr. Barnum, ahead. please go

Jeremy Barnum

on an Thank firm X. ROTCE billion, of of reported everyone. of revenue $XX The $X.XX of XX%. Page on you, income $XX.X morning, and EPS good Starting net billion with

of $X.X of card driven billion balances deposit margin in million and fourth balances. X, higher XX% impact higher quarter on results. impact $XX.X we billion, compression deposit offset recorded firm the or largely Page ex reinvestment, up On lower NII the wholesale our revenue or by deposit as rates $XXX lower CCB, of year-on-year. and Markets by have in as balances The down more was associated the securities well revolving X%

NII ex $X.X up or billion XX%. Markets was

prior higher up up or securities year's revenue was losses, $X.X Excluding fees investment fees. Markets was Banking management Investment asset XX%. it net And the on billion largely XX% and

$X.X $XX.X or were down billion of Expenses X% year-on-year. billion

Excluding $X.X X% driven And of compensation the were well assessment, special a $XXX distribution as and higher $X.X billion, were net predominantly reflecting as and brokerage net credit by billion billion $X.X costs prior fees. year's of million. up FDIC or expenses charge-offs reserve

the for a full the see results year. you reported you significant of number were can items that remind On there Page in X, I'll XXXX.

XX%. reported And delivered $XX.XX, revenue billion. and those net we of of EPS of ROTCE of items, income Excluding the $XX firm billion, an $XXX

in investors card acquired record we of year. CIB, positive had long-term classes. in inflows $XXX In had accounts. number asset record Payments billion, Services. nearly for XX record Touching on of regions we CCB, the and And new Securities a had and couple all In Markets, revenue AWM, across we net million channels, highlights a and first-time of

[ the and net ended both and versus CETX of X. largely and as on by were ratio capital seasonal RWA basis million sheet RWA Markets repurchases $XX in capital balance predominantly share common lower quarter activity to XX.X%, The income with a up was in lower Page reflects seasonal billion lending, losses We and quarter On points prior distributions, OCI offset ] by XX of a $X decline the decrease this offset in which increase which included net a card. quarter. wholesale

Page year-on-year flat driven XX% were Average continue In market And sequentially revenue. predominantly production and driven were we Banking investment and channels. higher up billion revenue. down performance. Wealth of Now of to on partially compression growth & X. let's lower In on deposits, Home income with Management deposits year-on-year down was revenue go balances businesses, digital deposit offset Client X% revenue up flows by Management, reported on XX% year-on-year. predominantly as Wealth revenue assets year-on-year by our and was in see margin stabilized. which billion, $X.X starting to net up healthy Lending, have year-on-year was X% branch consumer CCB CCB $XX.X X% by across

XX% driven predominantly X%, strong growth technology. $X.X billion to up Card XX% to acquisition on lease billion, robust largely balances. and up in was [indiscernible]. compensation by of $XX.X by Turning account holding new Auto. and were on were NII up originations driven due vehicle outstandings Services Expenses up auto, And higher & were year-on-year inventory. reflecting higher Card field volume Revenue X% year-on-year in card

by reserve revolving million were reflecting this credit quarter, higher driven performance predominantly $XXX build card. balances. net by card $X.X In year-on-year charge-offs costs terms driven credit $X.X $XXX up of net billion, of billion, million The was

XX% of $XX.X year-on-year, Page of and share $X.X were Next, ranked up with XXXX. billion we on net reported IB CIB the Bank revenue X. #X for Commercial & on of income fees wallet Investment X.X% billion.

key XX%, share in primarily growth up large were of debt driven a number market fees and benefiting up and fees conditions. by were deals Underwriting up favorable up sectors. XX% XX% Advisory equity from meaningfully with

of year-on-year Banking and wallet, by we positive driven lower about compression. higher was for Investment Lending in revenue $X.X losses outlook equity deposit up pipeline. largely excluding $X.X up momentum, was the growth, offset deposit terms light In overall revenue billion, margin the on billion, predominantly year-on-year, the X% driven Payments our optimistic of by X% by hedges. remain balances investments fee

Markets. in well billion, was as better XX% $X in to performance on derivatives increased volumes continued amid up was markets. revenue was volatility with up and in Total and emerging in elevated higher Moving XX% outperformance currencies as income credit client XX% trading up cash. year-on-year. Equities Fixed activity

higher banking was Average Services growth billion, legal deposit predominantly driven loans and as were down balances. year-on-year Securities revenue Expenses market higher X% XX% down activity $X.X of by up expense. brokerage billion client and fee technology by well sequentially. on levels year-on-year higher as up year-on-year were X% driven and payments and X% $X.X

commercial driven by down middle lower Investment were also flat offset estate loans predominantly Corporate Commercial driven X% loans were market by Global Banking loans short-term new by originations. financing, were by paydowns. Banking, and and paydowns, In offset primarily paydowns as new originations originations. quarter-on-quarter real were offset down by And X%

sequentially year-on-year Average client growth. driven up and X% deposits client underlying by X% were

reserve impact assumptions. of Finally, net loss due certain charge-offs, update offset an [indiscernible] -- to largely offset the release to by a

of was growth as by year-on-year net and reported were driven management higher fees higher our compensation & $X.X average AWM with well $X.X billion up year-on-year Revenue higher well XX% of on Management Then XX%. distribution Wealth to teams X. inflows of and fees. driven predominantly Asset lines Page pretax XX% levels strong up performance compensation, in advisor and revenue-related in fees. $X.X as banking including private market higher our Expenses as margin as continued predominantly growth of complete on billion net by income business, of billion

we In had inflows sorry. year, for quarter Long-term full the across billion year. $XXX inflows inflows for the quarter, asset for $XXX of the billion were net saw the client billion billion positive of And $XX for billion net and we for asset full -- $XXX $XX the net all year liquidity, classes.

of and assets by AUM were and up of net year-on-year up finally, $X.X loans deposits market X% inflows both client driven And up loans. quarter-on-quarter, higher $X continued were quarter-on-quarter. trillion XX% and trillion were X%

of offset balance Corporate billion sheet $XXX was of Turning year-on-year. to the reported income million billion actions, $XXX X. down largely lower activity. Revenue year-on-year securities primarily $X million impact driven was Page by Corporate on $X.X of billion. $X NII rates, net by up of reinvestment

$X $XXX year. with year-on-year driven year loss investment million the And $XX the of this billion of lower prior the predominantly a billion quarter. prior net special expenses million compared absence by in in the loss net a were was assessment FDIC $X.X NIR by net driven $XXX of losses million of of down securities

starting that, X. the outlook, with on to pivot NII With let's Page

ex We expect to XXXX approximately be $XX NII Markets billion.

Going through the rates curve. outlook drivers, that the as the assumes follow usual, forward

the half It's the impact of in decrease NII cut by back both of expected basis [indiscernible]. in is worth XXXX the the points cuts driven of noting that XXX and the

that card loan we've can on of illustrated trajectory historical growth. You the the see page

but normalization year in tailwinds expect again XXXX We largely this revolver pace behind growth as are loan the we below from healthy card XX% us. saw

that Turning more trend second the a assert can notable to deposits visible itself half growth expect Firm-wide XXXX. in trend already stabilized, checking consumer to see deposits. It's see have of deposits. in we we to and that

middle the in margin, lower trough the the expect the we could modest bar. followed to growth put deposit sometime NII you of expect due bottom that be On at compression by as year, of illustrated all When rates. together, we we the

And should being of for offset NII think billion of billion, as firm-wide be primarily we in a increasing as NIR. you to Markets about completeness, to approximately which $X expect NII $XX function

to at supplement, including estimate want I out to number. Finally, starting so you quarter, Q or have get that longer earnings we wait this the risk for no K earnings in point that of the an to are the

XX. to let's Now on turn Page expenses

expect billion. be $XX to about XXXX expense We

you'll drivers with are of hearing you've year-on-year the Looking recently. chart note in I'll the consistent very page, at middle from touch the what the change, of on which us the been

is capital as auto The largest revenue-related primarily increase by volume growth expense, as leasing which in driven is well markets. and expected

revenues. As with higher this a comes reminder,

our We products, well continue to we resulting and platforms features business network. well as in as growth as expand increase our and driver attractive demand driven new engagement as in business. see business bankers spend hire The of card branch and as support customer as modernization. to to remains we in primarily in strong invest a advisers to tax continue Marketing spend opportunities, is continue

always, efficiencies inflation we finally, each we remains it to explicitly called And haven't And upward a in pressure. out generating are as offset bar, help source it. of some while

On up. wrap and credit guidance with be net XXXX our cover to XX we Page line to rate turn charge-off the let's approximately to of Now expect X.X%. in credit, previous card

was record of another revenue So And net in year closing, and we proud what we're of accomplished. XXXX income.

we In to we are to we about taking wide of the risks tension thought. the step a we and franchise, back, of still remain important prices the a that range but environment than expect lesser to NII look think although in As we And a normalization, and acknowledge XXXX, ahead we previously extent the uncertainties it's embedded prepared degree context, in focused scenarios. being the of and upbeat expectations. asset strength optimism the for on in

about the Los Angeles. wildfires say me words Finally, let a in few

impact financial it, we across While a of we all of expect a in have area from lines the business. don't much presence X

in So clients our contact employees. close customers, with and we're keeping

ways, business organizations, supporting as in relief making efforts. a support offering are volunteer We variety as employee and donation well consumer banking to waiving matching fees a and local contribution employee offering including of

we I'll line Jamie before the Q&A. turn over it that, up to With for open

James Dimon

the everybody. to Pinto not yet. morning, out that is leaving I Daniel point just Good want company

-- So Bank XX say, it's at I'd ran a old company he America, Latin income remiss Co-Head and in to here's fixed trading of years. emerging in man wanted who to best has the he ran and for trading bank trading joined [indiscernible] for ran XX say premature became -- not Argentina. Investment ran I markets years then trading He Argentina. then the be the global and and young He just

whole that world. helped build investment one time, banks me in the great the Over of

of And by at a great the so or for -- and then obviously, everyone President mine, X was partner trusted years company. more,

contributions he his thrilled we're I So forward, to made. recognize but to the and just skills talents wanted have going

Jeremy Barnum

right. All Great.

So let's go questions. to

Operator

comes Instructions] Our John with Truist McDonald from question first Securities. [Operator

John McDonald

wanted about lot to question of your dilemma perspective I of you earnings get store. capital, capital in and base kind growing about high-class your as ask the know and this a that I Jeremy, of

the versus attractive you sitting in waiting patience might more So on let for framework opportunities. your for the thinking opportunity how go about base and growing of guess the what's capital cost I high of that deployment

Jeremy Barnum

welcome Yes. Good and way. back, John, the question, by

James Dimon

quite me good while, took read It but it a was John, the [indiscernible] your other day. work.

Jeremy Barnum

yes, the we now them. the way very light that So for noted so points store it always all capital have won't is we make, we're the environment. notion feel of extra think to comfortable thinking that with the I you've of nice I right repeat it us in a current that makes sense And about

that the current opportunities where We is a a levels believe at get it deploy whatever there better chance would there suggest. we moment will than essentially in to be good way

feels that of like and us. financial kind so decision a And strategic for correct

we that, all enough. having concluded the over months you that quite we've have studied would extensively debates and expect, said these last Having it X have do

not not have grow excess that, to like have given [indiscernible]. here. we from And the would We

order organic of implications the buybacks, unless capital or that, growth all for capital return means So through given in the term excess. more the means when generation else the opportunities of near that to find it being amount that otherwise, we're deployment organic you it we about arrest in producing, the of equal, think

current guiding that of you the reserve the we don't for disclosure, on And to into caveat want which plan. thinking. any is our And to trajectory our any is our we buybacks. I'll current at that as there, is the give right get but in is time know, the change business reason,

John McDonald

of last say, of from, this when follow-up, spectrum lines the agenda as baked business about then investment year talked into And a or are of the we outlook And then how and spend of kind years across about? you've couple year, certainty does it just this last as kind differ what of efficiencies well? Okay. return think

Jeremy Barnum

guess thing consistent. a is, mean the the are and that truth is remarkably I this I teams good Sure.

know the continue results the on high certainty that main across of seeing our are outlook for very the those the we kind areas choices we that So page you to investment all focus. and be of of expenses. well categories And highlighted

Bank. Investment pursue we Commercial The as margin opportunities & execution gets in the the [indiscernible] different at

We a down the pockets that positions an or and X you of share go very significantly see you into on might continue if level drilling weakness analyzing strong below that see level. the relative aggregate you

are in about talked and the the company. behind always the and Daniel ambers of culture that greens, reds the the that's embedded

everywhere iterating. do we And stuff analyzing throw and that. we we do So resources as that that continue and against

But broadly, the teams are very consistent.

efficiency, about generated everywhere. company, I One say, we've BAU, efficiency of think you day terms every happens all think know to a It things it's couple this the in well. evergreen. we at it's is it's when how which organic, and teams of and

and And so remains that that case. culture, is sort of the bottom-up

a have areas top-down do few focus. We of

of do of lot be lot of to And we're them in I ability for our productive. on if technology for think development be to as for been the to they I there's sort effort putting a starters, focus a engineers more environment go, improving example, software them order the enable in development. of into productive

else so a bit all generates little And that efficiency. equal, of

a also talked as at you'll of recall the lot I we focus We And our probably reached that peak how worth in another about -- efficiency that's had well. modernization lot embedded efficient thing have Day, of a utilization, there that's of so noting, spend. on and Investor hardware

says, always we're As Jamie always modernizing.

the means a constantly here down we're a we've bit gotten still come little and be modernizing. from So peak to fact going that then to

is and teams, But get in of so inside on the and some margin, efficiency. bit on that form a new that to on, sense product of up which the little also a to means focus development tech features freed capacity there's

our and the if though, that our run what company look been for very the at quite lot you Finally, to to has few trajectory of the last reasons. would say the we years, and is I grown company a it bit headcount good has over growth have efficiently. And contributed ability a

equal, as quantum of that headcount been amount all growth introduced. have to has inefficiency you of as that time have rate believe, any headcount else But you of well that growth, some

And so try the headcount living front. margin company cycle, the people budget the on within their to this of means through at year, as growth went we ask we support the while the to

and of doing important efficient second obvious creative of things generating they some investment consider [indiscernible] more that to a with we're their to high So try and I'll run flat are roughly to going internal people areas how the lead and with get that on highlight exceptions headcount as in The teams, we ongoing certainty efficiencies ways things. growth.

nonnegotiable and [indiscernible] that needs obviously, or of cyber control safely. so risk and management ensure independent So running factors company on and risk to whatever critical the areas also like and we're

how about moment. that's current thinking efficiency in we're So the

Operator

from Next, to line Fargo we Securities. Wells of go Mike Mayo will the

Michael Mayo

up bit the it goes not I I guess. Simple your second like hearing Day, investors who's and would stay. then asked investors to you now, and little then Jamie, more successor? is, Investor question I And -- from a the know I I'm down, as why CEO think how think question what longer? difficult, at but I stay

say regulatory X You're stay what spaghetti requirements you years to getting than years? and going what capital been the you're chart your for. why structure unpredictability And about it playing like of costs. and less XX regulatory seems you've finally getting finally wanted, you're the of So

otherwise investors so? golf. stay do longer why anyway? And what if would do a around not So want play don't you you to bit You

seems your So stay aren't longer You to be It your you Treasury hobby, like going Secretary. much would how right? around? is work

James Dimon

a first, is the It's in years, more be going of or me. senior do the It's path If look, do. about I'm just here to answering Chairman to not people really company. what I The may second I other on be It's that. that. love And not the may about stuff Does several question I path. the it we're and like Board. CEO up the fit Board. new for about the

talking in years X March. or you're Now potentially more. XX I'll be X,

had I've makes know. problems to just sense. thing rational it the it's of think think a lot couple I of health do. I a you

And and again? -- your question so what's first

Michael Mayo

your Who's successor? mean... I

James Dimon

like these an [indiscernible] this flowing. in the have any where for the the all mean to I time and people way company unfortunate all spotlight big and this thing is be

We have several exceptional people.

of You X guys them. X or you most don't Maybe know know.

reviews Board The meets time. all the them with and

Piepszak, wonderful Chief not will as that. it's here that be to think want Operating be Jen I and does CEO, stay after who the Officer

So obviously, it [indiscernible] And management and she's people going for a I is continuity having be a will great people. to because work for company of think those it's leadership. thing

And we're determined they not mind course, people or minute, last sick, now, circumstances. change from of to a but it's obviously, yet. the going get family the tell of press, couple And their years not

you today, knew you if you sure. even completely thought couldn't So be

Michael Mayo

around stay case base years, for now? a maybe you'll So right more few

James Dimon

yes. case, basic Yes,

Operator

Our next Jim question from with Securities. Seaport Global comes Mitchell

James Mitchell

Maybe just regulation. on

in. We coming administration have new a

have of We Fed. guess, the a head soon new I to a be, new regulation at

So maybe just Or simply you to be requirements going requirements for a impactful down? capital would of structure, stop regulatory areas could there you? just where the most is if talk think actually about, of And any again, it what is change, more up? areas were of story this go

Jeremy Barnum

all Jim, go we're right it's deep rabbit I of some I speculating evolve. the really I But And parts on now. think and hole how could pretty framework could mean the obviously that's they productive a just about thinking different don't lot. down something

let Well, time answer to your some me make question.

second, more being of So is capital, framework supporting that to long liquidity. doesn't their that we've every answer for very you job saying backing It if anti-bank. reflexively do banks holistically what everything, to that want default allows read the question more we isn't time, they're assessed economy to regulatory company the rational, all Jamie's up which consistent with a is been coherent, a quotes, a as a more

a banking we recognizing all sound that. goal a and obvious growth. balances It with hope some role of the uses critical of the data, system play share some and that safe And that banks we that it got is actually with

while substantive some And so the most. framework that got matter a at bit that and little less more bit its at it, the bit a less time adversarial the management a we're that supervisory things little bureaucratic the focus on also and aspects of margin, can little

why down, away It's the hammering with properly be holistically, not So so G-SIB. so all a end because And III of number really this Basel just doing is that time, we factors. And complicated other goes right also stays takes analysis. game. It's whether it's importance up, that's of keep a capital of also on if the flat it.

James Dimon

That's you great. all lot Jeremy is done, I very counts LCR Liquidity windows quick of for had how gave X -- is a things. more equally recognition it important. that discount There's think liquidity and also important. is and been

is what system. at of out want you what competition. done want All you be public light kind things these want, of do of kind Second the the what in of looking system, the banking in market markets you you private want, should banking

And even think which take is, has at a and the realize negative. step huge that. a the third And is need built, [indiscernible] regular to most I tell there back the look you people will

point, at just So one breath. deep a take

thing the Jeremy right the in best world. management and system have do As the said, to continue

James Mitchell

just loan the -- election, sense. That Yes. maybe increased. it since follow-up, business on as has CEO makes confidence And confidence, just have seems like growth, you a

improvement there great. any starting would demand thoughts are Just lending? in to be see any So on you

Jeremy Barnum

business and question. optimism there, to general sentiment good some growth. you a it's have improvement big significant the expected loan I think out might the And in see Yes, open given

really that. We seeing are not

think particularly I a don't that's negative.

small markets combination probably some caution. capital markets of sheets of many it's so by the residual wide corporates think a I healthy open and and businesses explained and balance maybe in larger the accessing capital

see pockets they're some loan you'll maybe cautious starts reality more making with or year in they that what are and things, the of tested there some improvements the might growth come if are otherwise the be what that actually little about facing some see maybe And industries materializes would C&I through tangible a or way them aspects uncertainty term. near And we policy where in But bit it current than we'll The be in particular. brings. the other, getting the optimism other. one new one with executing way

Operator

UBS. Erika go will the line of we Next, from Najarian to

L. Erika Penala

the on the denominator. I up wanted in to and some cross currents about ask maybe on of, Jeremy, of the follow terms questions [indiscernible]

regulatory a So that score for imply data the that X% we range would you your score, if look surcharge in G-SIB would at third put your G-SIB. of quarter a

somewhere this understand, obviously, what day X X% of XX by basis at So score points G-SIB from and up now. surcharge if -- or the we years near by then that you print your from year, end goes X that

both At holidays, the the from the press same get the around release banks. Reserve the and Federal lawsuit did time, from we the

to year's like be perhaps In looks the terms test. this on is as as focused of transparency, it transparency the being stress soon going improved

So XX.X of because a huge think right, the about as part of clearly is like this definition we excess, is [indiscernible].

So also as we continues your of forward, returns think shift. to the going definition excess about

your should components, stress we buffer? of about one So your clearly, the surcharge G-SIB X currents terms how is capital is think cross other in those and big

Jeremy Barnum

Right, Erika.

challenging you're rabbit great that very address deep. with But me Okay, not too let's holes this are much line. many

of G-SIB. First all,

was in or a quarter, quarter. high had So we normal it seasonality fourth third in the but quarter trend third yes,

that that as types quite result sometimes G-SIB the types. of comfortably our normal a while we're a It bucket an wound year-end estimate, X% quiet seasonality. create in confident things is of in December number of current various relatively was we of actually view pressures So up and the just terms

So might otherwise that seasonal have of typical our patterns. what less terms is more or in you expected

normal on, now, would way up, current with other. obvious even not or of which the much there. we're being and one for little sort some point it to bit and anyway, smaller And the But under managing even obvious X. the not So so the back buckets under recalibration it's that rules, mattered and also have took obviously seasonality the us G-SIB that proposed to the of existing a is higher rule, see

Okay.

lawsuit. the mentioned You

happy the the of needs recognition is clear of think for in Fed see long time that about burden associated some that improvement. a about CCAR nonsubstantive that the to volatility many the are that [indiscernible] on only the and and the we been thing of transparency things we've I talking bureaucratic process to with say terms

So that's great.

industry you what I about to me think seems bodies the they read press if rights much publicly that were is litigants, deadlines just speak as said in the won't in that I implementation it going of preserving up. were for actual the releases, this as anything but light their

some So let's progress we hope just that significant see on that front.

And you will of environment. denominator if sake then is of taking be to likely economic a a additional step the capital like in level, for the modest as amount just about. really argument, our growth for asking what be actual back at the core actually. numerator is assume best core view what about view numerator, the that function needed the of our of the the normalized what not What I a organically, or this need is just, you're will probably think high And think through me lens way is about

is And the and up something way numerator, the doing XX about is which lens, a our guess and doesn't we're like numerator's ton determine some there access, numerator, a to number settled projected where analysis that increasingly could XX.X, of numerator, like pretty X guessing thinking actual of then be world XX any less I $XXX to amount up you reasonable excess. And billion versions as anymore. about why of it's through we've quantum up comparing to and the the point is much flat little case scenario numerator. the numerator need just grow at I think out, our it concluded that different capital of the that

L. Erika Penala

John's And follow-up to line a a just question, questioning. of follow-up

about XX.X we of that that for a organic placeholder, think growth you to think we for buyback, back bought back we know of that dividend need trying by and terms obligations of placeholder repurchase? you don't we your as just think can growth for return the I the sort CETX, assume now, what the in what arrest but As you is anything shareholders the that said, don't to just predict a now as company about as we to in should about? want of form

Jeremy Barnum

you've Yes. to that conclusion of statement from quoted hierarchy, want arrest your excess. do the I growth flows we mean our my the and naturally capital

James Dimon

So we tell modeling what things. are going all that against the to these things, you to there out market trading we're these know everybody never And going do. is

who are So buyers making in predictable consistent the so mistake. steady marketplace are a

Operator

Does that conclude question, Erika? your

Jeremy Barnum

We can go to Thanks. the next question.

Operator

Our O'Connor comes Deutsche next question with Bank. Matt from

Matthew O'Connor

you seen? that's now? seems backed side, It have higher guys think income. you're is net overearning which different rate of we've than that because materially you like all the would on pricing, also a a this deposit And on the specifically view the interest is off environment view I assumed expected Or had it on it partly consumer reprice bit more

Jeremy Barnum

a a I frame question, perspective. totally it's Matt. guess maybe put Yes, different me from let a good

on the hand, one right. So you're

telling again, we assume is overearning applicable. the could sequential in to back know, the means sort current you want happen. NII you, that something, growth look if you the is equal. which, the with that conclusion giving If of based that assume thing that to that notion including forwards, you guidance yield if of know line you longer we're that being forwards, And curve the we're But of return the panning out no the at the that, we we draw half won't assumptions, in might our one the to on all current subject the year, as you all narrative

to going remains back, current what consumer elevated we that's the in competitive the the fact the anyway, and environment pricing reasons deposits the that take big a the you quite The for step see. policy be weighted we historical [indiscernible] if difference deposit being time rate to a subject think paid standards, I a we field. between always math, on by rate variety of average and to response that is experience when do the

Do it. truly, guess bridge when truly the cross come cycle? Unclear. sustainable we But I truly, that we through think to we'll that's

the For now, [indiscernible]. is this outlook

James Dimon

credit. normalized We've gotten NII and closer to normalized

Jeremy Barnum

noting NII worth down ex that is It Markets Yes. year-on-year. is

some normalization there's So there.

Matthew O'Connor

expanding I where seen separately, reports And further on want push about we haven't question. then And you Consumer globally. just Okay. banks to really strategic just way. Banking been some There's the I business other a successful a guess in it that do

justify bank is a digitally. of is I coming Is I'm position upside enough growing your [indiscernible] of just of there doing it it? Obviously, guess wondering kind But approach consumer worth banking? -- to [indiscernible] leading from

Jeremy Barnum

mean think first like answered a is to your kind the we this apt Yes. comparison not other questions that launched own about think talked current I when I the you in the I lot moment. just And of we players initiative.

It's say we're special like a the very different or anything. that not strategy moment. very It's just is and it's different, that to

So And initiative. it's well. out would but it. It's we be new pretty it's a the worth it, obvious, not doing pointing it risk-free, was going obviously

opportunities with of we it's one and -- obviously strategic all management But considered through of quite scrutinized aggressively all and the that's our initiatives, of those have decision. risks get associated the our And processes.

Operator

Our question from Morgan Betsy from next comes Stanley. Graseck

Betsy Graseck

can hear make sure right. hear just Can you to okay? want me. All you me I

has been great this a call. So

questions It's been with congratulations here. a call a First, on great great a quarter. lot of

is there like, to ask? else You're what

Here's my question.

here, help the but and increasing outlook just you NII you loan but of could the about speak basically, highlighted could the As is right? we understand -- Maybe NIM think pressure, to you the order me drivers? balance

growth inflecting? coming you any franchise the up opportunities Is Is it going inflection loan in it punched into see deposits QT for there loan year? place Is securities? [indiscernible] where growth this

they every those you've are, business single And is of it some sheet have us market I'd That's your generative? around are, the you've comments that you've got we then a therefore, has got Could think others the are more ask and more there understand can't just just have #X, red, one? are kind And share got and like they help where I see. more opportunities? scattered you than -- about maybe green to you balance yellows reds places where if minute. [indiscernible] or everybody lastly, the Or yellow, as what

Jeremy Barnum

at crack Betsy. a take me let that, Yes,

a there. being meaningful in you to finance that's that that up, certainly thing growth, areas M&A been can only of company's more the if it new. So be environment. of might think acquisition be looking category, -- of, And where loan I That's relatively the would see frankly, would performance because could for function inflect the I in it think, terms picks

Now long. that sheet that's we aren't loans balance those -- on the that for keep necessarily

NII So up issue. or in fees whether it's separate or a shows whatever, that

are as been be can a you it's and that trend, our than a opposite. in like you the strength getting of the decelerating bit the and also see the normalization normalization it of that a future, a of And for revolve growing great, presentation know significant is has page our little But which card loan engagement NII rather there and card the amount of sign that is big gone. Still franchise tailwinds we're -- will growth while but the driver above outlook, is obviously, clients, tailwind. from

You in know state market given headwind like pockets at a our margin. lending Rates mortgage the of also well other some the the business multifamily rates. are

optimism. more environment, higher growth a a yes, bit I little So think

where bit Banking? you a a place in would growth see Business at are more I might the Could Could that inflection see you is But loan you margin? C&I in the say. bit in Yes. the areas more see think I more deal-driven, growth

And We'll what there. we'll happens So see see.

reds the our aligned long-standing Management and in country the the you the think relative terms what we them, of the that households think single affluent capabilities And Wealth to and under that and the strategies. the biggest we call know section I underpenetrated in The we the right? are is of our of you and one space, the our arguably bring in green, significantly table. ambers number bank to we big might what with they're investment brand

I as given hard business, inside subsector, can and and do talk we why franchise ever. can continue because look that the there, share a even better. we're inside front the completes aggregate aggressively finding that at but more great down and we it places we very so pushing look bunch mentioned, where think sector So Investment the are elsewhere, And building global get I in any at the of on Banking then about examples we There as level, where region lot to that's as nicely. we Markets a

Operator

Merrill line of Poonawala to of Ebrahim America we Bank Next, go with will Lynch. the

Ebrahim Poonawala

questions. X just guess I

the the just perspective, side, don't on credit lots [indiscernible] areas you Fed? it have from look In of of mean. tariffs, but when currents, Even that just I focus areas of the through we cuts no be a heard Yes, might love I from that's CapEx. anchor on to to lack you vulnerability take taking so like it your would of a hear terms rate of Jeremy, because fact lending office you, relief a if vulnerability, where cross customer what place, rate because cuts of see additional any we with base, you if domestic any of quality be do get

Jeremy Barnum

a idiosyncratic. question mean, where your [indiscernible] see pretty is is, I me hard very predict. credit tends It with to to wholesale Yes. be look, second. I

of rate. You XX-plus know low of exceptionally obviously year an out were that a charge-off period we coming

to earlier that credit be at wholesale normalized. And so a still not about to point, arguably, could And to normalize more level comments Jamie's those. has some things one slightly are reasonable some of how fully

want portfolio portfolio the an do to to the protect do frankly. sensitivities perspective from lot from is [indiscernible] extensive shock. that, to underwriting the designed us of A of We -- what we rate on

to rest unit to assured that do to... running we're into relevant detail not So want any the but on whatever. inclined or you're analysis, sector we're Jamie, go going you

James Dimon

mortgages, and feeds unemployment, of driver feeds consumer both side been It on subprime, and card. credit always biggest it the the credit be the Just into has side. corporate into will

of forecast it's your So unemployment. really

make have own, your will to You determine time. which over that

not the will not case you the I'm would across stagflation. vulnerabilities. higher unemployment, unemployment be And so vulnerabilities. worst but higher literally said for rates High credit the That's the losses vulnerabilities. just with we're thing but that, -- predicting ask the board. drive It's you second

Ebrahim Poonawala

And for is. the how on if I imply when guess and any it what you the -- concerned, there you to pressure the just like thoughts Fed as right the wondering just no knows for the sticking talk to one where level the on as I'm is experts, have end QT [indiscernible]. end may with that, far system when Fed should

Jeremy Barnum

and to Yes. middle the end complete that see I on add the the the I conventional think tapering I'm should and an or way is one pretending we wisdom mean the conventional might therefore, year. of sometime the to not in other, QT

that, may but they the consensus. that course, market change seems be Of current to

that sort for And funds behaving, of take way when when and our what loan and QT, of evolution you with HA and at might RRP background the of about growth minus rate that sort of we're kind look data our our of we in on is is be what et cetera, the the models the of of with the and a balances of growth, and of or kind step happens through outlook, year. look impact back economy-wide growing deposit plus expectations and NII stuff, the that policy deposits telling at consistent system-wide story type stabilizing second growth of the flow half the

Operator

question from Jared final Our Markets. is RBC -- from -- comes Gerard Capital Cassidy

Gerard Cassidy

checking the growth in you for industry regulators half, some industry that think about trillion. in could you your maybe second you some various the see the and you $X the -- I running overall about deposits checking have deposits. the in stabilized in from data prepandemic were household to said in started We noticed mentioned the comments consumer Jeremy, firm-wide see deposits of your

they have remained to in you checking seeing attribute in on consumer you're base, account post-pandemic deposits? your Can customer can what $X elevated based Now trillion. at the this you strain what --

Jeremy Barnum

growth have at our Gerard. things. those when franchise, numbers. fascinating, at But I see but actually recognize checking look encouraging a I can I speak a look we it's don't we the couple to for ourselves, in them, that take That's which of

and some there course, was there access, behavior. of So was some yield-seeking

into years rate out the over the moving cycle. people in of see course did checking couple of last the of you alternatives higher-yielding money So

It in as that. the well with in branch not part a just feels innings of lot all as all In of pressure we yield-seeking as clients the seeing to engaging much know, seen. acquiring markets. if different strategy of clients you markets in of nearly new aggressively expansion our had those We're as deepening the and are and the deepening we're us and final meantime, we as

tail success very franchise. in So end the yield-seeking healthy is the up the as combination to growth, the show out which a and sort flows build that checking see franchise indicator we in for of client of account of engagement organic starting and of excellent the

Gerard Cassidy

an clear about and cons a the pros a levels, much as share the circling to but you JPMorgan's with of And good. we the have very where understand, course, investor, do want then you can guys you do Obviously, back you share about not nondepository Very be. excess capital. capital perspective, follow-up, acquisitions them you been from can from so repurchase. Can

of common capital But cons pros you cons, what that are year. You're of and from the and equity? a XX% and dividend tangible continue these are But with return pros income JPMorgan's what every those special on excess nicely reduce perspective? to again, capital your very levels incredible if profitability growing

Jeremy Barnum

Yes.

back. So this we had comments a sometime at public conference some on

he -- we'll go. So wants to

So...

James Dimon

Jeremy, go ahead.

Jeremy Barnum

No, no, no. Seriously.

James Dimon

I was one. to do just not to going going we're say

it. at looked haven't We

but don't value. If for know, add people it, shareholder us most let insights you want have great any all us, doesn't

thing. of your thought pocket in never I've having bad And cash is a

to at capital. I mistake huge a have deploy think you to it's likely look

But they very So we history, patient. dividends, you the work. basically were look don't really special be going to at very, if

Jeremy Barnum

has anyone If we're different a always opinion, interested.

Operator

at And we have time. questions no this further

James Dimon

Great.

Jeremy Barnum

much. very Thanks

James Dimon

next quarter. you See

Operator

Thank in you conference. for participating all today's

disconnect may at rest this of great a You time, your day. have and

JPMorgan Chase & Co. (JPM) 15 Jan 252024 Q4 Earnings call transcript