JPMorgan Chase & Co. Q3 FY2024 earnings call

• Firm reported net income $12.9 billion, EPS $4.37, revenue $43.3 billion. Revenue up $2.6 billion or 6% y-o-y. NII ex-markets up $274 million or 1%, NIR ex-markets up $1.8 billion or 17%. Expenses $22.6 billion up $808 million or 4% y-o-y. Credit costs $3.1 billion. - CCB ranked number one in retail deposit share for fourth straight year. CIB IB fees and markets revenue up. AWM had record quarterly revenues and long-term flows.

CCB: Reported net income of $4 billion on revenue of $17.8 billion, down 3% year-on-year. Banking and Wealth Management revenue down 11% due to deposit margin compression and lower deposits, offset by Wealth Management revenue growth. Average deposits down 8% y-o-y and 2% sequentially. Card Services and Auto: Revenue up 11% y-o-y driven by higher card NII; Card outstandings up 11% due to strong account acquisition; Auto originations $10 billion, down 2% but maintaining strong margins. Commercial and Investment Bank (CIB): Net income $5.7 billion on revenue $17 billion. IB fees up 31%, markets revenue up 8%. Payments revenue $4.4 billion up 4% y-o-y. Asset and Wealth Management (AWM): Net income $1.4 billion, revenue $5.4 billion up 9% y-o-y. Long-term net inflows $72 billion, AUM $3.9 trillion up 23%. Corporate: Net income $1.8 billion, revenue $3.1 billion up $1.5 billion y-o-y.

• Expect 2024 NII ex-markets to be approximately $91.5 billion and total NII to be approximately $92.5 billion. - Adjusted expense outlook about $91.5 billion. - 2024 Card net charge-off rate expected approximately 3.4%.

• Regulatory and geopolitical uncertainty affecting CIB's M&A pipeline. - Market liquidity risks related to QT and potential repo market disruptions. - Deposit margin compression and its impact on NII.

Q: Jim Mitchell asks about NII sequential decline and 2025 outlook A: Jeremy Barnum responds on yield curve impact, deposit behavior, and 2025 outlook Q: Steven Chubak asks about expenses and investment priorities A: Jeremy Barnum and Jamie Dimon discuss expense normalization, investment in growth strategies like private banking and AI Q: Erika Najarian asks about NII, EAR, and capital deployment A: Jeremy Barnum and Jamie Dimon talk about NII modeling, EAR adjustments, and capital deployment priorities Q: Glenn Schorr asks about private credit and lending capabilities A: Jamie Dimon discusses JPMorgan's strategy in private credit, focusing on client-centric lending Q: Gerard Cassidy asks about Basel III and excess capital A: Jamie Dimon and Jeremy Barnum discuss Basel III details and excess capital deployment plans Q: Matt O'Connor asks about loan growth and card spend A: Jeremy Barnum and Jamie Dimon comment on loan growth signs and card spend trends Q: Mike Mayo asks about government service and stock valuation A: Jamie Dimon talks about patriotism, stock valuation, and AI impact Q: Ebrahim Poonawala asks about private credit and market making risks A: Jeremy Barnum and Jamie Dimon discuss market competition, liquidity risks, and QT impact Q: Betsy Graseck asks about NII and capital acquisition strategy A: Jeremy Barnum and Jamie Dimon provide NII modeling insights and capital acquisition thoughts Q: Saul Martinez asks about deposit margin and volume dynamics A: Jeremy Barnum and Jamie Dimon discuss deposit margin expectations, volume tailwinds, and market share growth