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Home » JPMorgan Chase & Co.’s (JPM) CEO Jamie Dimon on Q3 2014 Results – Earnings Call Transcript

JPMorgan Chase & Co.’s (JPM) CEO Jamie Dimon on Q3 2014 Results – Earnings Call Transcript

JPMorgan Chase & Co. (NYSE:JPM)

Q3 2014 Earnings Conference Call

October 14, 2014 08:30 AM ET

Executives

Marianne Lake – CFO

Jamie Dimon – Chairman and CEO

Analysts

Matt O’Connor – Deutsche Bank

John McDonald – Stanford Bernstein

Glenn Schorr – ISI

Betsy Graseck – Morgan Stanley

Guy Moszkowski – Autonomous

Gerard Cassidy – RBC

Mike Mayo – CLSA

Erika Najarian – Bank of America Merrill Lynch

Brennan Hawken – UBS

Ken Usdin – Jefferies & Company

Steve Chubak – Nomura

Operator

Good morning, ladies and gentlemen. Welcome to the JPMorgan Chase’s Third Quarter 2014 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, Marianne Lake. Ms. Lake, please go ahead.

Marianne Lake – CFO

Thank you, operator. Good morning everyone. I am going to take you through the earnings presentation, which is available on our web site. Please refer to the disclaimer regarding forward-looking statements at the back of the presentation.

Starting on page one, the firm delivered strong underlying performance this quarter with net income of $5.6 billion on strong revenue of over $25 billion, up 5% year-on-year, reflecting growth across most of our businesses, and EPS of $1.36 and the return on tangible common equity of 13% for the quarter. Included in our results with firm-wide legal expense of approximately $1 billion after tax, which relates to a number of matters in large part and estimated amount for FX which was treated as non-deductable tax purposes.

There were also a number of smaller items, most notably a benefit of approximately $400 million of tax discrete items in corporate as well as consumer reserve releases of $200 million pre tax. Excluding these and other non-core items, net income was approximately $5.8 billion reflecting strong core performance.

The quarter was characterized by continued strengths in our leadership positions as well as market share gains across the consumer businesses. Higher levels of market volatility and client volumes than anticipated in CIB and record performance in asset management. Core loan growth for the quarter was strong up 7% year-on-year while maintaining strong discipline across the board and with encouraging trends in consumer. We’ve also continued to make progress against our capital targets with a CET 1 ratio of 10.1% and firm supplementary leverage ratio of 5.5%. All while returning approximately $3 billion as capital to shareholders the quarter, with growth share repurchases of $1.5 billion.

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