JPMorgan Chase & Co. (JPM) 13 Apr 222022 Q1 Earnings call transcript

Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's First Quarter 2022 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. standby. Please I Chairman turn and and Officer, Barnum. time, to call Chief like Jeremy Chase's JPMorgan CEO, would this the to over Financial At Jamie Dimon; Mr. Barnum, go ahead. please

on reserve the disclaimer on EPS the everyone. presentation morning, firm Good losses $XXX builds, an ROTCE of X. on These million $XX.X of more revenue of approximately shortly, in in and $XXX credit of reported operator. Adjustments to I'll is $X.XX net billion well back. Thanks, income delivered available and Other refer detail which results please XX%. in our in cover as page The include The Starting of & website, CIB. billion, as $X.X million Credit of

see as year-on-year have X, probability up X% with down including with billion Wholesale results. sheet in and NIR $X.X predominantly Revenue rates, Adjustments year-on-year. largely reserves to billion positive ongoing X% million offset billion predominantly continued of by $X.X ex first up last by was revenue PPP lower as were our $XXX and approximately million losses Credit IB exposures were Lending On Markets expenses. downside year. PPP built well in investments partially securities high Regarding million expenses, corporate. inflation remain page portfolios. Expenses revenue-related well from lower trends CIB last volume offset X%, and or driven and in $X.X investment page And the detail across or quarter. balance sequential was down & Russia-associated quarter-on-quarter fees, growth billion by the lower Ukraine in record Net NII AWM. We of or loan ex increasing war revenue, higher billion X% we down CIB by in and growth $XX.X on down were risks X% charge-offs costs was quarter to capital Markets driven on $XXX higher structural NII loans. to Markets comparable in Other Home production or AWM. and ex driven or balance was pickup businesses, our for $XX.X $X our low by XX% historically some $XXX Credit for up as in to lower strength the more a billion we're loans $XXX quarter and in sheet X% and and of in builds the on year-on-year growth, on demand a due losses continuing On as of X. against million

ended at basis points ratio CETX Our down the prior XXX from XX.X%, quarter.

exited quarter, being reminder, absorb adoption some fourth well largest the as in pickup buffer we as As changes the quarter an a elevated to this activity. anticipated with seasonal SA-CCR

And In mark-to-market back in time addition in rate drivers. equal, resulted higher increases counterparty of to else as in credit sell-off to these those keep all led drawdowns mature. mind, But across The market anticipated items, other and price AOCI risk AFS portfolio. losses there were our RWA. through a securities capital accrete to and couple commodities

driven assets, investment business investment Business believe down While, billion up us last well mortgage year-on-year, declined effects look offset client the year, XX% income on Banking, and quarter. production requirements businesses, of increasing very Community were with predominantly position $X.X revenue CCB as net X%, driven to continue a With Consumer partially that, capital And both, on XX% as assets of compression. reported rise volumes profile And of by a was growth net on client largely year-on-year down consistent $XX.X from with up in quarter-on-quarter, $XX.X current & deposit ahead. these revenue. Banking year-on-year. Lending, by as Home let's lower billion, revenue performance. flows deposit in rearview with was environment were earnings X%. margins which page offset meeting strong quarter largely In down of revenue go X. was starting revenue growth were by margin against of by and and that is up future Originations mirror. servicing X% market result, lower now year-on-year many rates. the we while addition our higher and Consumer & course, are a to last the XX% In And billion in capital X% we result, to uncertain, X% supporting Deposits balances in our loans

was to the debit Auto. quarter account as strong continued Card of spend. in Revenue investments Auto, travel and of pickup expenses. XX%, to higher Combined were down & and acquisition see with new driven were by up quarter X% while offset saw year-on-year, $X.X structural outstandings growth down And robust reacceleration on loans were dining. vehicle balances T&E due we And the credit progressed, year-on-year, by and XX% revenue-related the Card higher originations, stronger up first revolving partially a spend costs. Touching year-on-year on primarily we leading above as up Moving a up originations to have of the was ending to consumer up of and billion continued lack spend, billion, and grow, in expenses, XX% 'XX X%. were $X.X supply, levels. quarter in volume Expenses lower XX%. X% credit card

were on down XX% it equity in our as with were closing the underwriting, primarily income were volatility. quarter. first $X.X billion fees for revenue activity, ever, of on driven Banking quarter the of Advisory, X%. finance of lower CIB billion EMEA. fees fees Investment in best particularly X. contended XX%, first market maintained versus down was CIB one deals wallet from down North XX% prior America down by Debt up In share and year. revenue fees IB XXXX. leverage the a Next, were page $X.X billion rank in And net year-on-year. was underwriting XX% We benefiting with and issuance of announced the on $XX.X issuers the of XX% reported number

on pace Moving quarter of down record markets to products, income rates rising was in mortgage market. commodities slowed quarter production, X% client and currencies the last $X.X last were year. a down activity revenue down driven against volatile record emerging an where securitized billion, and Total relatively X% a largely Fixed Equity against year. offset in first flat was Markets. growth by in by decline markets have a elevated all-time

was by with Russia-associated million, robust $XXX across credit adjustments counterparties. funding well client continued balances relating around spread prime activity second perform Credit widening of best of client valuation cash. and both, loss derivatives as hovering to both, derivatives however, Adjustments increases highs. This to receivables Other markdowns our quarter, & And with well as and a was exposures from in driven commodities all-time

elevated X% of revenue-related mostly it the Securities deposit closely of production. Let gains who by me fees. of take capital the investments, is on by movements approximately continued producers, quarter. and extreme trading, and it we noted second as results risk Payments here which or slide net loss X% $X.X situation this up linked market volume a in the widely VaR, the address of calls, balances counterparty by drove contributed created $X.X RWA Adjustments fees, $XXX our X% generally up up expenses. appears positions not this rates our are also billion, growth in and in reported relates in reported Because XX% related, a equity driven reported to it to billion revenue increase rates. mentioned. to and higher due Services of the higher We price The was investments, higher coming $X.X about portion other to helping growth I also that address. billion line, largely to were expenses forward be I driven It in will and Credit nickel and & year-on-year, year's was to excluding for margin offset clients market up nickel a the million lower higher filings. driver on banks upcoming just sell revenue was hedging structural half year-on-year, where Other in year-on-year Expenses which were the

XX%, $XXX and Moving on page Banking up Banking Expenses Investment ROE flat was driven by to deals of revenue flow million Banking Commercial largely billion revenue. Revenue offset $X.X Commercial large deposit billion revenue in down volume an were fewer lower XX%. X. of higher $XXX and by both, originations quarter-on-quarter, and Banking and and activity. investments PPP, higher driven payments up balances client net as up by Investment revenue-related quarter-on-quarter X% loans excluding PPP. at down income were balances, with C&I Loans of reflecting Market $X.X year-on-year funding reported Corporate business, XX% year-on-year of utilization seasonally were X% across was by of were million year-on-year, less Gross ex up X% sequentially year-end. on And originations X. loans the Deposits expenses. and are and Banking. highest up revolver Client were X% and our X%, across lines CRE loan to strong AWM then, driven complete Middle portfolio. Page of

and billion X% & Revenue XX%. fees absence income higher expenses. alternative the growth in Management valuation year-on-year and and pretax expenses as of revenue-related Expenses $X.X prior up investments Wealth by gains Asset of predominantly were structural fees from higher higher performance with investment billion as of a loans investments compression $X year. driven up were was and reported and margin deposit by net offset of of year-on-year, XX% margin management and as $X.X well partially the volume billion deposits and

were saw quarter, of channels $XX in $X outflows alternatives. billion AUM equities, in all net up strength were mortgages net And client inflows strong of liquidity, billion. assets and trillion with And long-term and by quarter-on-quarter trillion, and continued multi-asset the overall in we across were finally, strength year-on-year, securities-based of lending, For $XX were with net up of deposits X% X%. while $X.X inflows. up driven and X% respectively, X% loans positive

million Corporate last a of $XXX prior $XXX Expenses lower on higher year-on-year versus $XXX and as legacy losses NII $XXX well was million reported $XXX a year. investments Corporate were primarily contribution to on rates, was up this down million. loss by year-on-year. $XXX was year the of impact losses million page securities firm's investment due due net to to of loss realized the to quarter. million foundation million, the $XXX due $XXX Turning of the million X. of as down Revenue on net equity in approximately gains to million NIR

X. We and give these still on you approximately and month. billion next in ex outlook $XX Investor $XX to to expenses color we'll expect NII more adjusted the update Day of be Next, be excess And page Markets billion. at

strong was navigate performance So up, to And Company's once helped governments We sanctions implemented unprecedented this environment. Ukraine. efforts a and our multiple Russia's world. thoughts wrap directives markets, everyone, particularly complexity very clients relief and again, provided with economic volatile around from of in of including our remain difficult our employees course, the affected quarter, challenging to of invasion with by support the

the the global operator, economy. U.S. high Looking as rising ongoing watching ahead, line of robust, QE but the the reversal the inflation, With the as that, well open economy on effects and of Q&A. please remains for rates we're war

question And Autonomous from go John our is McDonald ahead. Research. coming first from Please

wondering give Thank Day, gave I outlook. we'll at but it Jeremy. more get similar the Investor about income it's know was you. interest very like Good what I advanced sounds have morning, you to kind net us outlook? on income expectations rate then. are net since obviously, you underlying a interest little the assumptions And color what bit Markets Could ex mid-February. of of in

be it obviously, Yes. hike expect look, yes, expectations part of what's access good of Suisse. And was Credit what's front morning, at getting John, curve, Fed given in Good than in of billion of would $XX to actually happened the questioned excess terms into and we the the question. bigger

been So, to process. at million too there couple we probably we run moves, get bottoms-up size want We dollars. don't have want big very to this right. to that, precise it -- our a get and point. to But want We

that about detail more Day. give at we'll Investor so, And

my could Markets-related about think us rates? the follow-up, Okay. What how there, whether things affected NII? thoughts seasonality it's or we And by about it's you as some give should rising

would pretty to number I speaking, to But comments, on ago rate. think, is one short-term or direct two I guess, generally I this. Yes. my correlated that you the quarters

issues, past. geography, be It see a to in else Fed expect a as there in come offset hikes NIR. you'll noisy. as the through, function all equal, the tend composition the in headwind in to mentioned can which, obscure So, sheet would as I've shift in of But general, we balance it's that

And why don't on that's so, we focus number. that much too

is from Jefferies. go The next coming ahead. question Usdin from Ken Please

that in can the buyback the to any growth. a comments RWA wanted X.X% room about in about follow here? up I do inflation CETX organic targets, talk SLR, off being that versus of able your on for provide potential XX.X% means back what capital and your just you to Jeremy, saw just With come terms items the from first of quarter? Thanks. you And longer-term

Yes, thanks.

high-level give and comments just about CETX so some me trajectory on. let So, the

know, we SA-CCR. buffers, knowing you the adoption would into quarter as have went as the denominator a with elevated of that growth So, we of result

so, would be range expected XX.X the have And this that to quarter. of right middle we of roughly course, And happened. in the

unusual a Of it quarter was an course, ways. of in number

the of a inflation From RWA your point, to these producing bleed slightly from risk, in in going relatively back And about which others. we a fact, to factors where market number items are, here, sit number we and the so, we've some XX.X%. smaller talked and quickly, faster drawdown AOCI other than of saw

So, of the is the AOCI obviously, significant a to importantly, probably would to drawdown the The out, revenue we question, RWA And of will, most outlook will prior capital. accrete outlook, over expect obviously improving to course, rate back time. to out. the come portion higher which inflation decay bleed

to the where obviously, that So of in course, against rising little lot fact of that in know, gives quarter lower unemployment a is nature higher it's sort minimums, the when given a coming in. that fourth a the that is we and don't but we you requirement bit make. of you launch have floored line then, and increase up in And the the unemployment the then, countercyclical in to that rate 'XX adjustments Fed might expect scenario, time any of point to the quarter. effective if But there's the published in the of stress first G-SIB us SCB June, the SCB, question need we make the be

evolve. some into to guess, to quite information we I across forward together, various play, of here that about the So, and and between summarize, of we soon we this the minimums trajectory to look available comes generation, the as income position feel have we time good all from pull put dimension when denominator and the our improved capital levers KFX as really

of buyback to there, anything to gap, Is just just the And structurally is to like help a enough consider back allow grow preferreds back? too. adding possibly there it or utilizing bridge follow-up going need you be things to less with in just to terms to organically build just

Yes.

I think, lot say to about guess, our haven't actions. a wanted I we in the preferred general, -- publicly

adjust about are make some situations. we you And call instruments callable. know, different to whether of choices not or As these to them to have we

have at, to from pretty to a example I'm an levers numbers where But where the of that's want the have pull we think we be. I to get we that we today environment looking to evolves. the trajectory with So of types available that sit as clean

Stanley. is one Morgan next from Graseck Betsy go Please coming The ahead. from

for had time because share you've question you letter, a mentioned you is look you in payments, to bit I of sleeves. got wanted when at unpack Jamie. lot And double-digit expect how a different what to annual your I market understand payments. a achieve if over could that I little In

In you're XX%. treasury, X%. XX%, at at you're card, credit consumer in example, For I think

to you're digit kind you to total what to could about there? you're terms So, give of of us in expecting as are get about, a in time where you and thinking Thanks. sense category talking payments what this you're double frame you think drivers

Yes.

things real-time I we the I’d X.X% little gave which number, years. And examples lot all just give not Payments, the north then up, we're share. to have building five last that things. significant fairly we X% so Wholesale blockchain-type payments, just coming Investor a to gone the have you and a something And need, obviously, double-digit we've out. over building consumer certain And to Betsy, and yes, from already we're relating some So payments, a Day of bit

our better they're I'd a way. and by very Wholesale by controls, do a couple around for cyber supported too, the far globally world say it's what capabilities to risk of acquisitions, building which clients really the and out clients job need While good

board. nothing want kind of we area it's an about it's So, to but across in. It's mystical the it, win

Okay. you accelerate can I And think getting of from or X, digits same double do with Because to that? is the what... see time same going kind to over the X frame you pace

wasn't I put would time I to years. meaning five frame say on a but it,

at on get Investor Day. this update You'll more

you the I And it I indicated couple a suggests rising the from on and NII historically, is of side reinvest where the here question a is benefit Okay. guess is that And looking outlook, just then, to you've follow-up billion. have rates. curve been plus the

did What that what and fair last you now a maybe -- that well. Day. want at size investing plan it that today don't it I'm as that explaining right on to because You us cycle you for Investor I hear hearing takeaway? Is is

No, at that's NII. you're lot investing reinvesting saying... -- not the kind we're But money the investing we're and board. look of for across look we why no, don't at the of we're stuff, the time that future no. like a investing, way We We all

as on a the and how has The sort reaction is be last couple fundamentally, economy recognizes I no the that moment we result about mostly that some time, think in to impact headwinds the spending. that that Fed's in fact we The of at XX%. getting the forward over the plan about strategic things. rate environment other as think have confidence a plan of a mean, talked the confidence of quarters bit of may through I pulled investment cycle. short-term function a delivering a little that, of had XX% our to couple We ROTCE the

The is next coming Chubak question Steve from Research. Wolfe from

aggressive off wanted about between linkage a glide a outflow last And pace expectation how more differ past, outlining outflow may we I balance So, just be spoken more the Fed timing? start aggressive question Fed how sheet the on betas should the given reduction, Fed to a cycle, about for In QT. industry. views in per you've sheet the and versus balance with path deposit yourselves with thinking of on Any deposit risk? reduction

Hey a Steve, fun this is so question.

I'm bit. sure a in. out nerd let's little Jamie jump will So,

cycle, think So, sort I And in then look, end QE, big had of quite expansion. a of gotten and bank you RRP then So the tail prior deposits, happened had expansion and system-wide you you as cycle, we've bit right? what little about talked big at finished. in has that had come RRP QE in, the

minutes. bank And so Fed that of point I forces there's out correctly is those. And of now, that thing effects happen going the as you when you might expect differ realize a get potentially and the is here intelligent you really, interacting deposits start you would whole that RRP all think, first people look and to later outline in a drained you just And about of here. to what's actually running some would kind think very I of couple But that the together, happen sort combine nuances only their thing at shrink. reverse, in of to lot that would predictions on the

general, a quite be for deposit and loan that growth. starters robust, industry-wide is in worth it's noting should tailwind So, outlook growth for that system-wide

the May look start for happen QT front yes, the will as likelihood to curve, bills. particularly to in just end So, the have what's all you going headwind. in noted, in Then, of at minutes in you

about there. maturity to shortage the sense now. collateral little makes right make a in weighted of market what There's has the of obviously short-dated treasury average So, decisions bit and

on wanting might bill using has to make talked there. that more the forth. supply fill decisions minutes in to about argue so so in The They and So, for portfolio management. Fed about maturities gaps and

are interact various those so, And to things in ways. going

that's if non-operating-type deposits noting bank world up the deposits. in wind in people where thing one likelihood, is be sooner thought, worth that's might though have the all to of than you going I state drain that value otherwise lower think, the

to and feel system a case the for we've share to So, about of remains for nice great a second just deals company. us, in And it pivoting perspective, see. from for pipeline and we've a growth nice away case, Wholesale, that. our simplify a retail any deposits in as base deposits, from we modest in we'll But there. second, us had taken in And share some wins a

on that's current So, the that thinking topic.

know. So, the answer is we don't

than read maybe initially guys that. then consumer. fact Over economies but come We're doesn't and don't Wholesale you are It in the deposits. pluses out actually time, mean won't beta expect will that for And probably the the past. And of it of much prepared of the we be that out to come different effectively, and reports, Okay? [ph] run. There us is minuses. to in a short was lot

a You fact least basis-point whole can bunch different won't the first XXX the at that be it of argue but increase. ways, much different,

difficult excess the informing understand liquidity, topic say. your you how given own a spoken market proceeds of inflation. that to to number of the needed might curb level how be to Fed tightening? if outlook, follow-up, that's make Fed securities? more some I you have into And of or underestimating how hikes just capacity you're one those should I redeploy could help that it's us letter, rate the what's higher-yielding managing shareholder the Jamie, given predictions, is expectation in but Just about just you your such around had the maybe significant know

Yes.

look, So, forecast. and the curve XXXX. like And one end at maybe X.X% And obviously, does their of I knows. now year X% end implied no the think the is at everyone the of

to than I think it's going that. more be

because reasons different we've million never just this. QT of and give about why And like ever I through Okay? been deposits. inflation a you

as think flows investment because world is So, the this huge other is people more and than think change to of change a create important people going new substantially thing for portfolio. funds the of their I is

our customers and fine be help certainly So, we're gain going to we're to share. going because

it fine. We got do We Chase, margins. all be great JPMorgan returns we things does want for plenty that. capital, JPMorgan of the already like all Chase? and we'll what have So,

-- So, cautious. just I I would be just

volatile you to that's to possible. need get markets. landing, think to to this okay to soft -- do economy if needs think we to Again, the expect they Fed is I And manage us. try a for try Fed what do, the and should

any to liquidity? deploy And appetite the excess

No, don't expect that.

The is from Glenn next ISI. go question Please ahead. coming Evercore from Schorr

if wonder thoughts through want now changes to could I we you assumptions because we and from, CECL then talk macro I impose capture risk that where quarter. the our the what in just came at in assumptions, downside to can get on to is where each we're

want Yes. on lot I don't to of spend a time CECL.

adverse I to we That's severe think is a all we waste very And complete is time. than led XX% Basically, was a did, chance an all before. said higher big... event it's of basic. the it adverse of that or

is really It that...

matter the with good, to don't We business. market, is lot best ever point, of is told than the X.X. it's spend swings a best credit we scenarios card that earnings middle can, nothing should have fact, a a mean, the and probability you on CECL time. they past extraordinarily And X better time Charge-offs know, X.X. would calls be. that we guess. I but do of we do underlying basis to got a way in of the weighted, -- as It's be waste it'll are about It's hypothetical, multiyear

or will you XX% get worse. on We're yes. That earning better. XX% to NII get -- have tangible good. normalize. going equity. much are is still So, to And Things credit obviously, going very is

my I is XX% because guess. wanted your The guess is better what than

So, I that. appreciate

don't I believe all not with -- it due I Glenn, is. respect, do

Okay.

levered it want the But makes but make debt seeing anything you in to credit, go like have markets, are leveraged loan, there eye? better follow-up it, that in and high-yield, in the forward. the stresses it's you it you meaning a private CLO, might and side turn The credit, just parts answered I of much on any on So, ask think know I I have I sure depends I shape, explicitly.

spread liquidity. less Just widening, little bit a

That so doesn't And... sound bad.

about I not and this anything mean, to stuff. risks this -- very of of looking in And of corner. in any everywhere trying of no closely seeing see think, now, speak. likes we're I one so to complacent spot metrics, look, everyone's concern we be But right as environment, really obviously, for the around kind to the type

just job and the there income having that quickie Maybe up? early delinquencies on a any credit cash, inflation there's excess you're and are buckets last is wage everybody with of seeing stage picking

In no. and -- across question question debated prices our you particularly that in sheets. short, of an and income is and growth as real to balance It that of interesting gas sort look customer heavily you card base, what's doing consumer

customer And seeing so, in of LMI actually especially our the But gives we're that, now, not right kind watching anything us segment worry. that we're of base. reason to

The next one is coming from Gerard Cassidy from go ahead. RBC Capital Markets. Please

you and that was think follow because built was building it the I million you was said up the Ukraine. it to inflation due high up and up how Ukraine about due in the money $XXX reserves? might was when lead situation? on food you to war made we more the spending greater consumer down comments to lower-end inflation? fuel much Jeremy, that delinquencies How can your the road? much guys due And about it And you're is that the for and comment, to it concerned

Glenn than that. really Yes, it's lot a more [Gerard], (sic) general

Russia-associated related name to build, names. just individual repeat, primarily So to specific, XXX XXX

you is call Jamie probability thing, of other super which driven by a the -- the ways. by war it's to level. our not in a from is Volcker-style, simply said, a increasing It's micro slightly obviously modification are reflects just in extent part commodity that the that. so. increases, in higher But the probability a handle to Fed-induced it driven might very current except low to of portfolio models recession part it, top-down a The price portfolio Ukraine, XXX probabilistic response inflationary And the in probability as environment, which level

to One of I the lot CECL. of huge just yapping came time out it's a for in things it. we us think I spend time spend a on call of too much hated mistake every when about CECL is that all

you clear rise hit capital it of mature. a you the Understood. maybe like revenue, continues if at there that a to into to back another or AOCI we as that securities the looks on if And AOCI to do very pointed can number have you us, assuming were as as then, things. the was is accrete available-for-sale capital? those Jeremy, going way and growing probably giving end shrink do, long to your billion and look at bigger grow just we portfolio, of curve do gave as it's you you the Two follow-up, forward, period, can you about $XXX the anything to whether end there mitigate -- the this as out, you go that, anything of which the Is

I I else. try that, mean, revenue grow to anything sort of obviously, we of independently always Yes. think

levers of picture case, across there play in I and to to things CETX some to the along case out think as are be we available terms be the done don't But there of if the that of where the have us leverage. large a tools point range need And we dimensions, adjust so. here to gets want is, that that big is can mitigate the yes, this. is central one and we when to central be things lines path

next is Mayo coming one ahead. Fargo go Please Wells from The from Mike Securities.

But SLR that very might probably And you I the your SLR a guess since even I'm guessing for Jeremy question end, that. have I and explained be to the minimum. quarter close worse. Jamie. has both, X.X% Hi. minimum, to gotten Jeremy, close AOCI

So, case, your I understand fine. it's central

So, or billion you you But three you, stop for of a just caps, months? for the last outlook does recession do worried the asset Jamie question like But Your good. buy of bigger even JPMorgan authorization, takeaway in really what amazing maybe you'll the $XX the over on the eye this year. the that's at asset The picture put my half point do think growth beholder, say back is you is was letter. or given buybacks, your Jeremy. about is CEO Jamie,

Now he's not.

into the question ties the So, certainly second. first

into your expectations Thank of for and at the cap? for economies you. plan Jeremy, growth. So your capital broader buybacks, asset Jamie, then, feeds view And that stopping

Okay, Mike.

one. So, let me take this capital

about That's So just thing. caps. a talk first, let's meaningful not not asset

unhelpful. distraction, the moves to terminology a denominator so that's is pretty takes of ratio, number Then, think that just and of big in move ratio. it like the that leverage the that terms remember the big I is actually

is far actually pretty of address there X.XX from to to alluded X%. easy course, to tools earlier. are away And as relatively So, still that was as well use

ERI were I just addition, how do of everyone worth In the how the beginning crisis. to relative they now the think of restrictions reminding at work it's

our into on just buffer zone, the you're dividend generation briefly, restriction, based like still XX% ample historical the that which regulatory a pay so if the Just and to drop to us recent remember ample, you to capacity subject redefinition, on based gives income net on.

authorization requirement. that that that obviously just plan, it's beginning SEC It's it's no but the worth And there. terms buybacks, there we is of CCAR longer reminder nontime-bounded So, billion not just remembering then, in the pandemic $XX a the standard. are the cliff part the not effects a at of old had of the in

it's that we flexibility. it a have that capacity the we're So, about But near doesn't in say much to and term. to actually really want just how that that planning signal much do

in level planning you're this to year, near to Like -- like does guidance? can kind do allowed what you're you giving you of say slow think just you or like half term? or down, keep that, you're Are not last if the the do

Yes.

Let's talk about for buybacks a second.

buybacks, know, kind as a the bottom been of So they're of of the capital world, lot mainly our pace you we stack. in guiding haven't post-SCB the because, on at

the RWA, make acquisitions -- an are sense, output. business, focused et buybacks when cetera. growing on capital in they cetera, we're support to et providing investing And So,

going current but the those for that buybacks As or in was of effects. it's buybacks is clearly rate It other, it in that's an evolve toolkit. be a of output, the of means of capital. if less And than the the the to good the better rate in tools will result environment, we have the as interaction things one of thing. one the we've period all the be way uses discussed, XXXX And a then

Mike, want buffers would at top capital, extraordinary. if on we liquidity of and I add, to don't And buffers. just look you have it's

but tightly manage that, conscious you done that. time. of year. some of going being over obviously, CECL, acquisitions to that, have when And pretty we're manage And all this earnings So, we've through and can and AOCI all this we

have day, increase stuff the I plus, here. G-SIFI of serve output And of -- look customers. it's to so, managing which kind don't that we're buyback amount the for And matters. the That's and are -- planning an end stuff down in customers, liquidity, of we and the at reduced stock -- earnings, the the adding do. more of is the capital at serve We really We driving road, which why we're amount -- capital, we the SLR. the that's but

I then about And and question -- you do your was -- want repeat Yes, question? the about to basically. it recession think so

your Yes. letter, No, I CEO if you mean, that's read great. and

Chief Worry Officer. You're the

Chief Risk the You're Manager.

up way is thinks you year. at this fine, way, be a other night, hey, hey, these are Jamie risks. in are the there's say, you that recession but And great. You're to keep and up can all saying, going it bringing tail one things can But which some things read JPMorgan you read it and

do repeat I'll and Glenn -- what think So, said. you

Your and mine, anything to accept view else. than not I'm better going is

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very is are countervailing two One got of. other factors, which you aware all You've inflation/QE/QT. large completely guys

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Next from go ahead. one Please Deutsche O'Connor from is Matthew Bank.

I you the the taken. as the the could and some been was significant trades a comment And been guys -- and were canceled exposure actions there hoping how hadn't the just articles follow-up. that on on then, are from have if losses nickel could

us at have guys about business think maybe you and the kind some on how can process. of looking of reevaluating update that You about that talked outsized risks, and you

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benefit rate large the going then, there shorter-term big And from question moving is, just earlier had benefit just accelerate some Fed amounts you weren't the to up, by liquidity. treasuries? but a get you your might that I into opportunity you And separately, seen is in... We've that cash guess, of mentioned looking an funds to also just move deploy

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Mitchell from next Seaport ahead. from coming Please Global go is question The Jim Securities.

is Maybe both? from in the growth of a slowing cards, just or you're is combination about of of demand that talk where strength? trajectory about year-over-year biggest you the driven thinking here, growth Thanks. by more paydowns, how you're or specifically seeing loan the increasing could significant pockets And

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see But between how a goes. we that in linkage and very, also reminder a see just it what close we'll So, revolve what in charge-offs. there's very see we

moments where so, is that certainly we to potentially, was pandemic revolve lagging in thought. the the And true what period relative throughout

exceptionally low saw also We charge-offs.

run the on line thesis core is So, rate robust. basis, Spend there. performance, a bottom significant still there's there. the offset is But

some are tends cash of the in spend We to down buffers the seeing customer revolve. segment that

would anticipated, say. more less I as or So,

then, And Clearly, have finished in just must Okay. trading. off a on maybe over skipping to stronger -- quarter, strongly March.

we you're is volatility normalization a this thinking be So, around in any forward? should that guess, How Fed do better than it confirmation year? how trading, if of we QT, could going more -- I expecting -- thinking about are that? And you be

you Yes. I next of to that predict going the we're quarters performance. be trading three to like know reluctant mean,

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war, volatility the where I inflation, or good I'll And almost of enormous you're that. markets there's forward. could spoken the to prepared some not prices, be to add volatile economy, commodity be strength foresee QT, but We've have I should all a you of change won't for markets. That lot people to at have [indiscernible] for cannot trading, scenario And that going about already in no think chance bad going happen. any just want that.

from Merrill from is of Please go The Bank Ebrahim Poonawala next Lynch. one America ahead.

companies can the one guess a would Jamie, a macro economy? hear think your heard to But the around do we reshoring, question not about or the more better love for We've see we with year. term, how the I dealing cycle into whether it. over CapEx thoughts about are on lot guess I labor debate next U.S. as just productivity, we medium get recession just you outlook. a

middle you next going six the Just given customers, be next growth, few not corporate as months, have the of but demand market the years? lens maybe we spending you term, of medium see to in large do CapEx terms a big driver think for some that's pent-up for about

you the forgot produce general in need exact And CapEx I and people that, number. because up. and spending and more generally going yes, as money all goods to see are Yes,

in bit… You little borrowing our looking better off than we the accounting And forecast at -- see me. great a asking

some of a commercial effects factors nice But different we in bunch the be inventory there, yes. pretty we'll and on, see mean, do see. loan I Yes, growth could there's bank. so but

you in chain have the chains? any supply big like to seen Russia how was front, that improvement a supply And improvements? setback war on just And

there tell. mixed now, hard all it's There some improvement to was Ukraine. And It's was very then and again.

So, tell. it's hard to

Any you think bank talk wondering perspective to Investor on are And plays how out? how Any Got that sure about the around digital month. follow-up early but any one in you're that last wins out? thoughts. we it. Day, what strategy at going early about just as UK markets the terms of that's playing just I'm launched

leave We'll that Day. to Investor

from the question coming Please next is from And Najarian UBS. ahead. Erika go

see you been morning. have My Good asked Investor questions and I'll guys Day. at Hi. answered.

Thanks, Erika. All right.

in queue. the questions no And are further there

very Well, thank much. you

much. very Thanks

I Day. at Investor See guess, you,

May XXrd.

Goodbye. Okay.

you our conference everyone. call end That marks Thank for much, of today. the so

joining, for disconnect. enjoy now you you your Thank may day. rest You and the can of