JPMorgan Chase & Co (NYSE:JPM) Q4 2019 Earnings Conference Call - Final Transcript

Jan 14, 2020 • 08:30 am ET

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JPMorgan Chase & Co (NYSE:JPM) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's Fourth Quarter 2019 Earnings Call. This call is being recorded. Your line will be muted for the duration of the call. We will now go live to the presentation, please standby.

At this time, I would like to turn the call over to JPMorgan Chase's Chairman and CEO, Jamie Dimon and Chief Financial Officer, Jennifer Piepszak. Ms. Piepszak, please go ahead.

Executive
Jennifer A. Piepszak

Thank you, Operator. Good morning, everyone. I'll take you through the presentation which, as always, is available on our website and we ask that you please refer to the disclaimer at the back.

Starting on Page 1, the firm reported net income of $8.5 billion, EPS of $2.57, and revenue of $29.2 billion, with a return on tangible common equity of 17%. Underlying performance continues to be strong. Deposit growth accelerated in the fourth quarter across Consumer and Wholesale with average balances up 7% year-on-year.

We saw solid loan growth with Card and AWM being the bright spots as average loans across the Company were up 3% year-on-year, excluding the impact of home lending loan sales from prior quarters.

Client investment assets in Consumer & Business Banking were up 27% and Asset and Wealth Management, AUM, was up 19%, reflecting stronger market performance versus the prior year as well as organic growth. We ranked Number one for the full year in global IB fees with 9% wallet share and growth IB revenue in the Commercial Bank was a record $2.7 billion.

In CIB markets, we were up 56% year-on-year compared to a weak fourth quarter last year. However, it's important to note the quarter was very strong in absolute terms, in fact a record fourth quarter. And credit performance continues to be strong across the Company.

On to Page 2 and some more detail about our fourth quarter results. Revenue of $29.2 billion was up $2.4 billion or 9% year-on-year with net interest income down $220 million or 2% on lower rates, largely offset by balance sheet growth and mix and higher CIB Markets NII. Non-interest revenue was up $2.6 billion or 21% on higher revenue in CIB markets and AWM and continued strong performance in home lending and auto.

Expenses of $16.3 billion were up 4% on volume and revenue-related costs. Credit remains favorable with credit costs of $1.4 billion, down $121 million or 8% year-on-year, reflecting modest net reserve releases and net charge-offs in line with expectations.

Turning to the full-year results on Page 3; the firm reported net income of $36.4 billion with EPS of $2.72 and revenue of $118.7 billion, all records and delivered a return on tangible common equity of 19%. Revenue was up $7.2 billion or 6% year-on-year with net interest income up $2.1 billion or 4% on balance sheet growth and mix as well as higher average short-term rates, partially offset by higher deposit pay rates. Non-interest revenue was up $5.1 billion or 9%, driven by growth across Consumer and higher CIB markets revenue