JPMorgan Chase & Co. (JPM) 14 Oct 222022 Q3 Earnings call transcript

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

Thank you Good very morning, much. everyone.

investment available is disclaimer on Firm revenue of the back. reported by quarter securities ROTCE presentation the an XX%. income the always, only on was website, $X.X refer of $XXX in X. and discretionary page this as on repositioning net Treasuries $X.XX in billion of result and delivered of our mortgages. Starting net $XX.X million to losses please significant The The of selling EPS Corporate of item As and a the U.S. billion, portfolio

franchise We dynamic few billion, record and ranked of was strong on number still detail. a billion retail we a Touching based net had deposit of third in healthy have Markets share one a -- XX% year-on-year. FDIC or in quarter results quarter of $X.X remaining billion Our On this we $XX.X highlights. we environment. page $X.X third reflect credit Revenue with more X, is record quarter the up charge-offs in had revenue low. the data, on resilience

loan billion The net credit scenarios, and higher build by were updates the lower was Expenses securities Markets up up a billion macroeconomic partially or year-on-year, $XXX X% net costs Lending. million offset million Wholesale, fees down billion charge-offs Markets structural to of and $X.X was $X.X of costs in $XXX or revenue and driven million Home Excluding million. or reflecting losses, up XX% IB in it was investments. the ex build by million billion $XXX And included growth XX%. $XXX Markets billion net largely of $X.X rates. the higher XX%, of Firm’s investment was NII year-on-year. by reserve release $XXX driven NIR And up included ex securities driven losses. XX%, $XX.X $X.X or by

sheet income and net XX.X%, ended the XX of the with quarter, the by We benefit On on of driven versus less RWA basis AOCI. ratio prior a primarily points lower capital which RWA. and with billion was X. impact in offset up approximately management risk than page continued was by sheet the quarter lending balance the partially distributions, CETX of active quarter-on-quarter, down more offset by growth balance market $XX

conclude first quarter are which future buffer of requirements, positioned SLR over over Given capital, our coming in XX% increases the our binding the will growing XX be the CETX XXXX. results These capital regulatory basis-point current include our quarters. targets the constraint. in and To our quarter, meet on flexibility longer requirements, risk-based this quarter to the in well provides we of fourth targets XX.X% no with a

So, billion and this to we announced the stack. rebalance in capital quarter debt press in billion issued our call sub of $X.X $X.X

our to on businesses, X. go let’s Now, page starting

our provide Before up on of segments. categories, data. and consumers buffers remain both businesses year-on-year. discretionary debit Nominal with U.S. across small update review XX% let on Cash elevated all health is spend the performance, credit across and me income based combined CCB’s I and strong spend still you with an nondiscretionary

business income the focused on and risks However, surprisingly, deposits year-on-year, with spending income, in small in continued particularly growing not seeing outlook. owners median segments. faster And increasingly decrease are we lower are than a economic the the

Now, financial to results. moving

data, us among L.A., deposit on by were year-on-year, in in number quarter-on-quarter. York billion, revenue retail XX on rates. in up by was lending income ranked of This up quarter, up Chicago, down higher the addition making year-on-year. Consumer year-on-year, CCB to driven billion partially of and and by us based XX% driven higher We making Client the we fastest-growing one X% XX% down FDIC $X.X on production New three volume. $XX.X one In was while and performance, XX% banks. And margins year-on-year revenue Deposits number net & now Business ranked in on XX% which assets up down XX% reported top offset NII market Banking, XX% year-on-year, top are revenue investment flows, markets. lower were was the largest year-on-year share

below account, they marketing partially auto Auto. up XX%. vehicle was income. & and XX%, account up growth originations billion And Card new revolving Expenses Revenue of lease outstandings up XX%, higher and while rates. XX% offset Card driven driven year-on-year, NII, by And revolving balances to lower due by Auto, year-on-year, X% supply investments rising driven net travel, were strong technology, and Moving to $X.X levels. originations still down lack in up the we’re $X card were pre-pandemic by in branches. by slightly balances were making of remain billion, in were per

In we gradual quarter, $XXX terms credit remain actual release costs $XXX of below growth year-on-year, $XXX million Card of driven as which up reflecting largely Home charge-offs loan by card million, well reserve a continue of Lending. in net in this were pre-pandemic levels, well to million credit delinquencies $XXX normalization. see were performance though million, as

market was third were be share on of Investment down fees equity. continued XX% CIB one with down strong affected revenue a Underwriting revenue debt our X.X%. for of year-to-date $XX.X year. In wallet $X.X by maintained page were XX%, number activity for and Banking fees a down in XX% year-on-year. reported XX% XX% announced billion. quarter Advisory, down X. billion $X.X resulting last of reflecting income IB businesses We lower rank year. volatility, versus the billion down net CIB Next, of to this on fees

to our on $XXX of up by terms million loan prior strong while healthy, pipeline market fourth be In And higher XX% on outlook, conditions. versus Lending of year, NII revenue expect down prior course, growth. is a the conversion was driven versus we of year. quarter existing very will, depend the

by the $X.X environment Revenue Markets. franchise, macro quarter to record year-on-year. volatility XX%, in a Fixed Moving third activity Markets securitized last year. strong income up partially up against X% was Equity were products. less was favorable a in XX% client down as offset elevated drove billion,

derivatives, relative cash quarter in on This lower year-on-year. strength prime revenue balances and saw block lower lower in billion, Payments revenues XX% up $X was activity.

million, the equity driven year-on-year, and by was million. $X.X of revenue Excluding $X.X was it XX%, of build Services relatively the compensation. up reserve rates by billion net $XXX flat by Securities a net costs Credit higher growth year-on-year. was $XXX impact of up largely in of driven fees. investments, XX% year-on-year growth Expenses were billion driven and were

driven originations and commercial estate reflecting higher non-operating of C&I Moving core to sequentially, driven activity page CRE lower up million. deposit by loans X% of shown were continued reported term to Banking quarter-on-quarter, partially offset lower have strength volumes in X% primarily $XXX banking. utilization. sequentially, while Commercial up X. balances margins, by Record attrition Banking revenue stability by prepayment was on Commercial sequentially. in were up year-on-year of net continue and and payment balances, billion XX% year-on-year, by driven and revolver $X were Investment Expenses were Banking be as capital billion operating up Banking of reduced $X.X by Deposits lending loans Loans X% real markets of X% XX% our Investment XX% robust. were revenue. $XXX Gross was revenue activity. year-on-year down driven year-on-year. year-on-year, million XX% up income down

business, build Finally, on our then credit page $XXX complete costs million, reserve charge-offs to driven remained AWM predominantly a And by of while lines were million, net of net X. $XXX low.

Asset & $X.X Management XX%. billion, of of Wealth net pretax reported margin income with

advisory billion $X.X market loans initiatives. offset declines. this of XX% driven largely our up fees driven were Expenses up on technology teams, margins and private revenue deposits management by was linked quarter, compensation, by predominantly year-on-year, of and $X year’s the in investments by asset year-on-year, For management X% including in higher balances, to reductions billion and banking

loans quarter, year-on-year, net down the and client flat partially long-term net $X.X were while driven to by were client by were income, offset by And driven assets equities $XX flows. For X% X% continued quarter-on-quarter, alternatives. deposits down finally, migration of $X.X and investments, and trillion partially billion were XX% across offset market by of sequentially, fixed lower inflows. levels, overall respectively, trillion AUM inflows

I Corporate loss $XXX of million. year-on-year, of million was Corporate up last year-on-year. billion $XXX the NIR $X.X higher billion, driven to rates. was And NII million X. due net million, securities million $X.X net on a by $XXX upfront. impact expenses of reported compared to year. mentioned page higher a net the $XXX of $X.X loss of loss was $XXX losses a million, by Revenue of were Turning a billion loss primarily down $XXX to

outlook the Next, page on X.

total for guidance provide also will we firm-wide forward, NII. Going

for full billion, that implying And to quarter, year expect $XX NII the we the to we it expect ex be For year about be which NII implying also expect approximately the be to fourth of billion. $XX to about billion, $XX $XX.X Markets around full NII quarter brings zero, Markets approximately billion. XXXX we fourth

year modest for of full level, XXXX. from quarter year While run today, at And we the quarter decline you Today’s billion. of run now the for ex expect Day, that will an much fourth Investor rate for we NII we’re recall potential a NII this about of XXXX. this some with not XXXX upside XXXX implies giving $XX the would approximate higher guidance year guidance $XX talked full fourth Markets billion, rate

quite bit uncertainty of drivers, of including reprice the there’s a key and surrounding addition, rates, growth. loan In trajectory deposit

in update the in keep your those as mind things both of models. you estimates So, XXXX

expenses. to Moving

card full relates to X.X%, rate net expectations. the remains Our now be below And year rate, the outlook unchanged. it previous we our to expect as charge-off approximately

strong With wrap will the with we Jamie I an the over continue of of as up, environment are to elevated it navigate for we some to to remarks. additional uncertainty. performance happy So turn quarter that, diversified

rates a little you Hello, capital wanted at we’re to very insight little thank looking just I give and more interest you Jeremy, much. bit. a to how everybody.

in share, power importantly few that mind Firm. think, course, to around So we value, the and in get bunch most not, up power very over than that the we’re of keep XX% us the this with earnings the that But of planning, first in a confidence the and areas, a returns. earnings franchise company, more we’ll is have lot margins And But things. always we’re of other see, the we’re volatility which, is we’re and And us. a areas, gives in disappoints in quarter. capital can of that and you enormous the comfortable I all market growing

in is but So, was this we have be, with this don’t our kind such We when and know to how AOCI as of countercyclical, to pro-cyclical. in uncertainty an traditionally and going is more any of GSIB change mind. deal back know we IV. Basel AOCI: environment

couple is, think then, we’ll reserves. and $X billion reserves. our of way and a gets we that’s the mind. It Put have clients. points, of easily the it if already to add unemployment And if that affect bit. billion change what think areas basis business, it higher, back of other billion, manage if tell So, might I I course in are X%, as I another you RWA rates a mind very or incorporates don’t that of to in $X to go should up But outlook, our the CECL: doesn’t adverse we say, worse, we’re don’t change our don’t stuff meaning up obviously, your goes consequences your you’re commercial think adverse the in can and quarters. think or easily environment handle, of that some what serve X% of get events not this bank financial we limited down that probably little look it RWA the With the we’ll we CECL talking be. like mean, can or percent handle XXX a just chance bank just easy investment in $X the And that. back management, at drive we effect. areas Again, would to a And/or of about a showing new capital deal. big over

you book loan in us. the are there So always some way lot a we’re serving but do, clients affect see and things the discretionary we which of growing areas, barely

mortgage very balance sense the it part, conforming sheet, -- putting in originate we that or makes other most do not we’re whether we make correspondents choices. and the balance whether the them originate low sheet, because on to So,

this it. talking Interest manage basic we’re And a going not at to capital the a affecting franchises. neutral think said tools And I’m that. so find fairly the the going There we’re is today. got do we’ve lot our requirements lot mention of or just down. interest it to to strategically, point, rates: I annualize at of ways rates about look to reduce years I to Obviously, few. RWA. way uncertainties with are billion, up Jeremy over $XX without going a please think up, I’m going

are There consumer. about them. are to course, lags be to There change dramatically, How going lags. in worried be there to What’s not and you’re on And services. lags in treasury of It’s there And We’re going pluses technological deposits? can things. environment? some in from things minus much can deposit but banking. migration not some QT’s change are be does lags new There in going this commercial effect have that.

for sell out point losses be of that not something of manage into on just something most I it’s will So get to could get it the and We to investment think that that. kind think back want taking rich we actively replacement the want other thing the buy a securities to our mind, we’re And chance locked part, worse want and is going securities chief securities. will be we to to don’t take better. the

place that be expect see we future, loss may some that. might securities So, taking can do now. the in to you There

we and do own. to manage We’re across things very we to do other board. that that very, know think can it other I We most and want that But want guess, the buy this with want doing questions the I own we’ll we that these open we -- do swaps effective efficient we to to things good not can people now. the sell that, do manage can And was or a rate than it interest strong don’t to exposure. quarter part, most the portfolios And we for way. just for things.

Yes. Thanks, Jamie.

open and up ahead go questions. Let’s for

Ken line stand question of the is the by. from first Usdin And Please coming Jefferies. from

on side lot. think a Thanks about we NII the comments to beta. the just and the one Obviously, wanted I and Hi. morning. Good deposit follow how Jamie’s of to is uncertainties there. up flows toughest to and mix understand

So just of to it, it to in costs like see deposit starting increase. looks terms starting

and do we to higher new as might thoughts? of Thanks. now maybe in where any prior how to about it think might course this terms environment, go how you over in the compared of act So, betas cycle X.X, cycles previous this

morning. Good Ken. Thanks, Yes.

Okay.

to that probably the betas the in we fact don’t Jen beta And it’s, that more we’re actuals. the even So, in but which at a develop, said Investor Day, is what you’ll the but is deposit prior lower we’re seeing from this was a than than low the positioned see the through perspective liquidity that recall also and cycle that which as cycles. prior the hikes, we was rate seeing, some paid theories means that being were the as prior And the through betas lagged, cycle realized And we cycle, rate that? hikes cycle, they expected is be question this see come system standards. we why of course, low by better now really just know, of of include the is plausible speed historical

be timing we’ll very now. in how happen for probably as the starting to we that out. that some So, now. much going in to develops much environment and But, come Obviously, of that deposits, out the are how that wholesale, we faster. that forward, lags see competitive is significant of We the exact out. know will come look That’s point, function plays marketplace to they a know start right at

Got it.

on just -- little ahead, the looking of next have help looks a Can might do things build the about, Okay. in more over more look scenario Jamie’s just and -- okay, today, to some scenarios just couple years. you it points your understand you ahead like, are still tomorrow, there’s great, us where uncertainty. And just understandable you worse if follow-up bit second build then

versus get this, delta? you you and course. that don’t quickly all do I know, handle to So, magnitude either, for of or hard of how we to And ACL about us how get just your day on it CECL? pandemic to do It’s very how one see think how understand of peak start

Yes.

I real you on I wouldn’t policy. spend Honestly, accounting a time way too I’m As probability-based it’s hypothetical you. number. CECL informed number. very It’s bad know, think much the make for it the not has to trying us because a simple it And

quarters, pandemic, over at it we the that. So, billion if took two up then $XX down four look three you put over or and after we

all percent to and possibilities gets number it numbers, trying severe or And adverse these or a adverse billion I’m of this unemployment gets that or several kind and $X I Okay? [ph] billion. billion as XX%, then number, better we a case, we now, we to will simple swing now, change mean, would you it talking minus be the much. -- three can make quarters. these something you $X right that’s and what next give I’m that that it happen it. quarter, We if worse, two in That probably change central -- plus But goes it didn’t billion. of can -- case. over if all be in I that would did have about. to probably that add possibilities $X we part already and have Right have becomes obviously, like

Merrill line from Lynch. of America Ebrahim The next Bank Poonawala question the is coming of from

just I Jamie. following guess up,

and CECL I So the appreciate model-based approach.

your you are beginning about press for months. recession potential terms quoted perspective the appreciate insights there. inflation, higher is I to rates any X estate, I it in would it a in to appreciate to talking be to X next commercial real feels Would the economic either from of were the like filter through beginning think where clients? you in consumer the pain cracks, any see

that, The just the anything see I’ll a credit crack just answer you take some We comments remarks I made Thanks. this about short prepared that could is don’t Yes. in some consumer than Ebrahim. that in we’ve actual some But the rates of no. see, delinquency our early some describe performance. cases, as any question different almost all detailed to that’s on realistically increases. that. expect, fairly entry in it’s we so. and even And and and like slower analysis But in generally, cases, about tiny stuff normalization, do we bucket cohorts think we done side.

Yes.

in environment it’s odd, spend. very of is we’re think, kind where an I which consumer strong

You see it other for in people’s prior year, is numbers, it our normalizing, to last in XX% pre-COVID. up sheets see borrowing Credit consumers. you numbers, are very up worse. XX% not getting Balance card good

see might good. You that’s -- and really

you you’ve strong So, recession, very consumer. a got go in a

rather look spending at it’s However, predictable if inflation. and they’re how you

So, sometime rates, reduces And higher inflation, have XX%. by accounts year. extra -- cap have XX% they inflation by checking midyear deplete in -- higher you is rates, oil that war. course, volatility of then, And -- will probably next that the money mortgage

are crack numbers. out strain predictable. a that not current and It’s there, future So, in is numbers. those quite will It things

I of QT in world? the happening of the systems, just all How the business about point other some terms over having interconnectedness to that that tied the shock market, at is think UK thing And part around [ph] next worried of worry the it a that, you be just a given meaningful year, capital terms the the in impact the much investors are gilts about of LBOs. from outside

we that of going funds It’s But are the Whether do of debt. the intermediate have There’s to buyers to I them. not being because don’t think debt. create QT that at more it’s banks systemic they a sellers crack a large because going lot who And where volatility building see see in some and large I know the that, bump, how I does on But the are bit a harder I of sort. know. of creates very a sovereign it’s about for we the you’re to impossible again, you the almost to what fragility all one that sovereign That inevitable today to real going going and it. Those flow to risk, and if like system. pointed [ph] is you’re the in uncertainties in it’s of have -- alone do not that world, I mentioned uncertainties you’re things the or little a fact mean based the change future. around out, told mentioned. that as bumps change not in see we you. of look it’s already I

Global The next is coming Jim Mitchell Seaport the of line question Securities. from from

Hey time. expectations growth Jeremy, you ‘XX higher year’s expense Day, level in at be noted would consensus Investor slightly from slow this the and the at that than might

get next is or -- you than economy closer that So, heavily pull, just hold? that it is levers investing to there get if that expected, is to regardless? worse now some And still year, still does does the

Yes. Thanks, Jim.

No real outlook. the broadly, So holds. change yes, it on still

Just a remind We to were I everyone, you think the consensus at said Investor XXXX. for XX.X little was Day, low.

that. And roughly it ballpark. think something XX.X up the through still budget cycle. like we’re I right or of to that’s not -- -- going sort still revised in that’s our the Obviously, got

We’re looking for the environment and the opportunity year. next side at set

stone. cycle very will decisions. much that in of investment are But decisions I’m through not and sure it’s Jamie our the agree on the investment, here broadly, question So,

we’re of economic the so, environment. difference sort change not going a And just because to of in tend those short-term to

the course, can revenue-related of environment, volume expect. the you Of as and a fluctuate function as expense would

or like add. Obviously, down up Now, dramatically. I just would compensations go to

margins about of the have for we numbers the point out among and markets for other I So, we in that. you’ll revenues, different really banking side But revenues this, the making want adjust just and best business. can’t heavy estimates we’re investment investments and have your to

a good think that’s thing. very I

leverage or you And -- beginning is on quarter? and -- clear, -- write-downs overhangs? any were Right. that front, maybe there loan is do that how that leverage to loan there And are this market still

it We share write-down of and loan own very real market isn’t -- no quarter, is are yet of clear. this levels small. There our that

comfortable. very we’re So,

line question from Autonomous. coming John from of McDonald the next is The

rates we your like peers. that sensitivity it? some limitations wanted should to that look of the rate of beyond in we call behind what about of your it points sensitivity we EAR ask you disclosures, Can basis when look a little put the XXX than I of They give And to disclosures. different higher Jeremy, at assumptions curve, and context disclosure the forward liability-sensitive. you’re looks us maybe how context the

Thanks, really a love And conversation it this, to going you to all John. It’s but lags. short have Yes. very about here. I’d with long keep about I’m

So, our of disclosure our as says, reprice we do lags not impact include the calculation. in EAR

result So, calculation is the based entire that, the in terminal on paid modeled as a of state. rates

now, know, lags, are the As middle affecting well and persist a you we bit which expect numbers right some for time. the some we’re quite significant in to of very which

So, term I in similar is a expect what near result we’ve the experienced quite of this would as year. that, something to what

to As rates now you the XX from have XX.X. year year, at this we’ve beginning as know, gone the revised NII up, of outlook our

sensitivities rate near look here, we we’re the term given forward environment in. the or I in that type expect from as fluctuations So, would similar lag

quarter the just bit some might annualized? fourth that and follow takes on the it about comments fourth fourth -- be of from quarter? you where quarter, lie the to annualizing that Jamie’s in to What little are that a And is not up puts down annualize the said risks

rapidly Yes. mentioned, I’ve Everyone yield curve deposit a does migration. EAR you already changing differently. have

one So, assume deposit One lag. is we migration. is

some all less XX. stuff, there, because included of your the in is models, all for of don’t ECR annualized just than that kind and our use of -- assume just We I a that. think people number don’t. people Some

instead So, XX, of a like number XX. use

to that, I and the -- on, you simple as as going it conservative. a and all We with to cautious little know. keep possible, don’t Just just but we got stuff just beat hope be

next UBS. is from question Erika of Najarian The from line the coming

I agree with morning this Ebrahim crisp impactful. that was and your presentation quite

been So, key to has that debate I stock the all the the question ask I’m to year. sort of going think

June. Day you that that mentioned in higher would ROTCE a XX%, before out May, be the SCB we So, target in found was and of at Investor

firm, think -- capital faster the about and we happen think ROTCE As achieve build do can you in what is through expected XX% year? that plus minus you think going your next revenue than CECL, may or this shows with power about you

Yes. we is answer That’s things of obviously a at normalized look ROTCE. And is always good one the question. yes. The

honest. So, we’re very

we -- a we’ve we’re but little credit on over the are over because of earning card. NII, but are like We a bit never credit. lags that, low X.X%, not that number Think a And not stuff seen risk. in earning the maybe and lot, of

We’re quite of that. conscious

but not So the XX% continue a this not. drag material it we little that don’t adjust that’s going figure may XX we And but to about was obviously, quarter, bit, it’s a adjustment.

We’re to going -- great, bright a people. we’ve of lot got

little find of is of lot ways CCAR going to things just bit. We’re and including a call down, squeeze some liquidate and a like and SCB to these some assets change business models

non-G-SIFI non-G-SIFI, acquisition, service acquisitions, all and at If our example, for a services were noncapital, related. they you look

to comfortable and So, time, that’s get going very that over pretty what we’re we’ll returns. we’re good do

time, yes, in number in given about thing in quite Difficulty]. what -- -- [Technical what would damn happens dependent a I feel year a next and We on is returns have is other earn good at, we both of we’re would look recession? very would other recession. maybe good So this totally I the that. mean But so pretty I

be is expect micro be follow-up a this Markets NII next to zero Jeremy. that zero for Why quarter? question super next year? should And a would as And we

Erika. Thanks, Yes.

advancing curve. yield Markets businesses at We’re the the

training finance this to So, you’re the paying and earning you’re book.

so the rates many NIR. is And like go other side, offsets Markets mean, through goes Fundamentally, up, up. derivatives funding or goes revenue cost it business we basically, as in cases, the on the I Erika. derivatives Yes, the believe instruments, work rate through insensitive.

through history that see our can disclosures year. You this

look rates. changes biased funds, many year as shouldn’t next to out much implying less at a forward see evolution from Fed So, as the of curve least with to expect you you

sometimes see can we balances, from changes other. but the somewhat course, unbiased, that more be Of unpredictable should way or one

The of Fargo. Mayo Mike next from the from Wells is coming question line

your reconcile your again, trying actions Jamie, I’m with once words. to

publicly, you You’ve mentioned said the hurricane.

You recession. mentioned a

are that. there anyone sorts and don’t of out, mentioned all You risks. with look think disagrees I

day On the to CECL still hand, below well your are other loans reserves one.

your with seem the about actions your the reserving So, economy. reflect to comments don’t more pessimistic

I the do how So, two? reconcile

Yes.

-- So, that is do that on in adverse the today, we probability already. way severe reserves in put CECL is and our a adverse our to significant there percentage

in in of reserves. the lot people it’s already. So, A work there CECL

Our have different Jeremy, think not than might odds lot set of me folks. I other other by economists, be the people. It’s because that a to

the as And but -- are good. But numbers I so very conclude saying. Jeremy

of get for what that. here’s of I’m a some be, another reserves. because, is calculations thing, CECL, Michael, may something happens things very that is course, worse, time. which But We be when it important. have of That timing if might to is different trying will honest these which change the about will be lot very of mean

it the if very of would recession if to year. is going so, quarter it’s you year, happen quarter fourth different first be happen So, -- in a the said happens, next in next going to that of

Yes, that... I the losses as as to opposed loans lifetime just understood it on the

It yes, life loans have a a have life. loans some short is. loans some -- But and some long

the to chase. cut just Let’s

for said, -- the mean, hurricane you where look, tighter got three is -- with have QT, you certainly like that. it you comment rules you months headlines Fed and all versus as tightening, And capital are it’s So, ago? I banks.

and and have everything the Fed of else. wars trifecta like You the by have tightening you then

out things three same better, market view So think months ago? your worse -- or but I stock the are all and about and were as supports there, don’t the they risks the

the roughly same. They’re

to I getting might what just events. you closer consider and We’re bad

good and very shape. shape, versus by and Ukraine -- not in would point. worse, and And example, are quarter can of in a my percentage yours recession. been hurricane, a in but be Consumers consistent, of possibilities. different that we what So that’s probabilities think And companies is I probabilities still, and There but that. I’ve possibility for a last quarter, soft mine, a of a might is We possibilities things different good mild because than mostly me. at relatively looking war the there’s very possibility debate in oil Those very land. price of possibility like there’s -- change are something for all this

cycles. Yes. your Last know I follow-up. investor

You’ve always done that.

increase get XXX,XXX But the people, I consistent. I your nine a adding mean, going to you be expect CIB, You’re mean, maybe months them to from mean, weakness industry. little I you’re headcount you now, highest wouldn’t the in wait did XXX,XXX, is headcount. cheaper? your to probably in hire from headcount

No.

Betsy is next The line of coming from the Stanley. question Morgan Graseck from

A thinking a sense of us as in just the should as couple we the questions. give One, areas investment to you’re could leaning spend, that about be the you most, into that the lot enhance to you’re obviously and Because to expansion, year? a consumer companies this next with your done side. regard international buying particular advancement, technology in on capabilities you’ve digital year on

be just for? So, through themes, is thinking on something or is those should this we looking else there continuation

you what it’s at Betsy, we Day, exactly no change. showed Investor almost

spend business out of pretty deck, out that kind on much that. broke we track take in by investment. So, is Investment tech for

cost And fair? you the with of deal can some inflation that through efficiencies Is drives that just elsewhere. that structure,

May. in we the in numbers Believe you not, that it gave or was

that. of this don’t reason with this around, don’t on restructuring Is separately comments then through you want quarter. quarter why stuff restructuring we did need whole that as hold And thing the hold don’t Okay. kind the up there the more you suggests we to go to be didn’t That hold, we to need a clean me there’ll look, and the quarter? next to bond that bond we

said think and I rich buy I securities cheap. sell No, we

out, spreads, So, we that kind gapped looked and you getting in, if they at X.Xs. They of getting to we you -- X, you’re They look stuff, what gapped out. gapped if happened sold mortgage bought.

point of losses expect you can But, different that’s future think forward. bond I real I just do going views. earnings. don’t have So

going our areas really I something, investment sell to to the experts want sell think they our know, want I in if but we’re people, -- to So, it.

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The the from of coming line next is Glenn ISI. question Evercore from Schorr

a too, is XXX the CLOs willing something buy. add thing like that sell be like XXX me gapped I or in to I but gapped to people, let them want you want basis out And out to they They to points, very when just that, do might -- saw our do. smart Europe.

Okay. Thank you.

it’s Glenn. So,

in we time pension losses LDI things market, to UK these time, now Arcagos So happen the get look, like this where and from issue.

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mention, have to and Jeremy, add. I’ll something you might

how England the thing And also in road. monetary LDI And to through think the a of you plans. policy through surprises. of get the is other without going I to changing those like is what the So, see today, things QT. bump experience thing and there policy be this And Bank much are about was have some in trying was to there surprised I been leverage my pension life going in has we’re

is off portfolio, for there be in -- credit sides. is to certain systemic, leverage. don’t going anything We certain is there but companies leverage see leverage Someone there’s looks

of you some see to markets. that. think volatile I going probably see you’re So do

liquidity. You already see very low

The like system that. down bump issues it LDI far, the banking a think in so could something constantly But is road. like happens So, strong. more road, cause the extraordinarily if and stuff itself the it’s

against put offsides? those dollar the if qualify so, protect And do moves that strong people that? super one make of Would as how you JPMorgan sure could you

markets yes, and might -- would -- JPMorgan dollar currencies shouldn’t not not we’re like emerging that’s yes, that But stuff them. be happen comes wouldn’t might something we’re category -- when flows, We -- it Well, hedge to a much. -- that taking -- we to we going because funds, be QT, generally hedge do It affect big generally that. be it something that we’re there.

JPMorgan. opportunity creates it fact, usually for an In

cycles markets what dollar not to of now, franchise folks sovereign Difficulty] with going [Technical Yes, strength I’m been struggle, experiencing have the was before. traditionally market that our struggle right emerging but these emerging through the we’re kind case that

So, it. through we manage

appreciate both. Thank you, it. I

remember and shocking We for to at returns in one think but up over years. quarter Just is it of every oil quarters to we the -- how our took franchise, made the XX Argentina the me last strength quarter we a -- some every how We money looking was the I few and back by money. down, emerging countries the markets of lost had reserves few kind ever there year shocking. And decade, companies of one was quarters, I add results was it it’s to put stability almost for in low but have them very may striking.

from the Gerard is Capital Cassidy question RBC next Markets. The from of coming line

billion. Jamie, you have about are guys lines also You talking if $X.X at been a the looking guys system Can reserve, currency referenced swapped the to QT, you saw see you you Swiss upped that system. the probably liquidity week, fragility of metrics with, us with its Just have problem are the the to share system Bank liquidity? does on what this the National

be problems? greater could liquidity on to going some the in there’s to maybe guys issues are some what -- focus if see that to So, things lead more of you

through I U.S. regulatory surpluses. of broadly, we has just LCR go reporting standard plays but And strong that’s and banking banking system RPM loan in everyone can of position. course, starting that the QT ratios puts mean, Gerard, some system, at growth, how as very whether just with a very, Yes. if pressure from deposits, you of significant question that into look on the very interacts

lot there start to that before liquidity have for a down real perspective. of a from So, there’s come to you cushion a challenge

to treasury and and of repo, issuance deposit net treasury look bid-ask mortgages and We Yes. at issuance treasury and all volatility treasury, everything that. spreads from net of markets tightening Fed the

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you’re of third Very in in terms fourth And And stood those seeing markets good. give can how as the you terms of guys end what the business quarter? banking into the into color pipelines, any capital at they us you’re and investment businesses, then, going the of lines? quarter,

there the to and before. all, never pointed out go, you seen I’ve that okay? size, always You’ve the pipelines And had Yes. come

this would so the is and see on Seasonally, this based it’s as not activity we put I in quarter, see. place, today. quarter what is idea. revenues because lower we as So than model IB low pipeline to but have don’t quarter there’s we Markets, much your necessarily next good generally guess fourth no ours. your know quarter, quarter a taking

from Deutsche question Bank. O’Connor Matt of coming line is next The from the

besides And tightening that talked guys any few lending you some the the you’re loan already the like quarters? about, correspondent mortgage areas and around growth outlook next the Can you for leverage edges? about talk of areas obvious

your question me let take last first. Matt, Yes.

we So, in through no, underwrite general, cycle. the

looked moment in everything we our loosen really -- haven’t underwriting We great. didn’t where the standards

now, to And tighten need consistency so, of there. see any don’t we lot a really

quarter the little In of and RWA mortgages. that we said actual high you probably have loan we’d function terms headwind some growth as this of in year, of there, digits. outlook, change obviously, a rates, No have that left, outlook one the in for a single a only of as optimization bit meaningful mentioned,

and demand. in we positive recession growth and story same loan We it’s going outstandings great for card about we we’ve in think, that environments, the of go very year, going terms on very engagement of client we to loan of But and optimistic and next into macro the dimensions, the I both, know especially the across wholesale of range see a to environment, revolve remain clients. rest initiatives normalization. As At new lot the lower dependent, tend a situation. time, in be, got

next So, see to year. how plays have we’ll just that out

I drive roll, starting in why about businesses? to we those read markets doesn’t tightening And prices down and some when going prices in mean, some I car guess, home headlines that

cars, would to that the numbers, that. that like Well, it and look have I continue And stuff and that’s in the our quota has. mortgage volumes have way. we expect mean dropped already at and and dropped

is from question Portales Partners. coming of Peabody last Charles The the line from

you your NII Yes. in kind peak implied of where quarter I’m guidance run rate. curious be fourth would on just

you Do system market factor lower? do year, into liquidity redirect as possible could a your the which Next treasury betas at the program, you banking a that possibility? therefore, in deposit system, all of impact money any out keep and buyback about from think

Yes.

I annualize have the in in that. spreads XX we’re in it’s the it that and going volatility issuance that’s create before. And I NII, QT, we -- the listening XX in issuance -- reduce including is and globally thinking, lags, when you being of going all incorporated put it forms you. our model, treasuries mortgages, change to I don’t certain change and conservative to the were in those things know why net net think all said be deposits in you numbers gave I trying if of can absolutely curve, yield that and in while to incorporates a XX,

there questions line. no further At are the on moment, the

you all next thank talk very quarter. you we’ll much, to and Well,

you. Thank

Thank Everyone, your call today. for that conference you. concludes

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