JPMorgan Chase & Co. Q2 FY2025 earnings call

• Jeremy Barnum discussed quarterly results, noting net income $15B, EPS $5.24, revenue $45.7B, down 10% y-o-y. NII ex Markets down $185M, NIR ex Markets down $6.3B but up 8% excluding certain items. Markets revenue up 1.1B. Expenses up $66M. Credit costs $2.8B. CET1 ratio 15%, down 40bps. - Jamie Dimon and Jeremy Barnum commented on regulatory simplification, including SLR, G-SIB, and Basel III endgame. Discussed capital allocation, stablecoins (JPMD deposit token), open banking, and consumer/commercial credit health.

CCB: Reported net income of $5.2 billion on revenue of $18.8 billion, up 6% year-on-year. Banking & Wealth Management revenue up 3%, driven by Wealth Management growth with deposit NII flat. Home Lending revenue down 5% year-on-year. Card Services & Auto: Revenue up 15% year-on-year, primarily due to Card NII on higher revolving balances and higher Auto operating lease income. Card outstandings up 9% from strong new card acquisition; Auto originations up 5% from higher lease volumes. Expenses up 5% year-on-year. Credit costs $2.1 billion. Commercial & Investment Bank (CIB): Net income $6.7 billion on revenue $19.5 billion, up 9% year-on-year. IB fees up 7%, advisory fees up 8%, debt underwriting fees up 12%, but equity underwriting fees down 6%. Payments revenue up 3%, lending revenue down 6% due to higher hedging losses. Markets: Total revenue up 15% year-on-year. Fixed income up 14%, equities up 15%, Security Services revenue up 12%. Expenses up 5% year-on-year. Credit costs $696 million. Asset & Wealth Management (AWM): Net income $1.5 billion with pretax margin 34%. Revenue $5.8 billion up 10% year-on-year from management fees, brokerage, and deposits. AUM $4.3 trillion up 18% year-on-year, client assets $6.4 trillion up 19% year-on-year. Corporate: Net income $1.7 billion, revenue $1.5 billion. NII down $875 million year-on-year, NIR net gain up $148 million year-on-year excluding prior year's Visa-related gains. Expenses down $32 million year-on-year.

• Expect NII ex Markets to be approximately $92 billion, driven by forward curve changes and deposit growth. - Total NII guidance about $95.5 billion, implying $3.5 billion of Markets NII. - Adjusted expense expected to be about $95.5 billion. - Continue to expect Card net charge-off rate to be approximately 3.6%.

• Regulatory uncertainties including SLR, G-SIB, and Basel III endgame. - Market volatility impacting revenues. - Consumer credit idiosyncrasies, such as L.A. area Home Lending nonperforming loans due to wildfires. - Private credit market dynamics with concerns about peak private credit and credit spreads.

Q: Relative to 3 months ago, optimism on financial deregulation and capital uses.

A: Jeremy Barnum and Jamie Dimon discussed capital allocation, inorganic growth opportunities, and regulatory views.

Q: On RWA utilization via organic growth in CIB.

A: Jeremy Barnum said it's all of the above, including private credit, M&A financing, etc.

Q: On stablecoin and open banking.

A: Jamie Dimon discussed JPMD deposit token, involvement in stablecoins, and open banking with customer rights and liability shift.

Q: On consumer credit NPAs.

A: Jeremy Barnum explained technical factors like L.A. wildfire forbearance driving nonperforming loans but de minimis loss expectation.

Q: On retail deposits.

A: Jeremy Barnum discussed deposit margin improvement and consumer deposit growth drivers.

Q: On commercial loan growth and regulators.

A: Jeremy Barnum and Jamie Dimon talked about loan growth drivers and regulatory changes to encourage lending.

Q: On inorganic growth and private credit.

A: Jamie Dimon said it's open-minded but not high on private credit list currently.

Q: On regulatory simplification and ROTCE.

A: James Dimon and Jeremy Barnum discussed regulatory simplification's impact on ROTCE and competitive dynamics.

Q: On trading results durability.

A: Jeremy Barnum said results are broad-based and durable with resource deployment.

Q: On C&I loan growth and P&L.

A: Jeremy Barnum discussed loan growth, hedges, and late quarter balance sheet impact on P&L