Kevin Watters, Chief Executive Officer – Chase Card Services
November 3, 2016
BancAnalysts Association of Boston Conference
General purpose credit card sales market share1 Best-in-class franchise
Consistently ranked #1 credit card issuer in the U.S. based on
loans outstanding3
In 3Q16, also ranked #1 by sales1
New account originations4 were up 35% YoY, with >75% being
opened through digital channels
Launched Sapphire Reserve and Freedom Unlimited in 2016
Sapphire Reserve: excellent customer response – especially
from Millennials
– Strong customer profile – credit scores and income above
the portfolio average
Freedom Unlimited: new accounts opened exceeded 1mm
within 5 months post-launch
Our national, scale lending businesses, broad distribution network
and strong product offerings allow us to deliver unprecedented
value to our customers
Expect 4Q16 revenue for Card, Commerce Solutions & Auto to be
down ~$200mm QoQ on higher acquisition costs
Expect 4Q16 revenue rate to be lower QoQ and increase in
2017
Results will be dependent on the number of new accounts
originated
Outlook
Investments in growth have increased Chase’s credit card market share in 2016
21.1% 21.6%
7.8%
11.3%
24.0% 19.8%
9.4% 8.9%
5.1% 4.8%
10.7% 11.1%
22.0% 22.5%
3Q15 3Q16
Chase C AXP² BAC DFS COF Other
▲47 bps
▼65 bps
▼50 bps
▼31 bps
▲41 bps
▲58 bps
YoY ∆
Source: Company filings; internal JPMorgan Chase estimates
Note: Percentages may not sum due to rounding
1 Excludes private label and commercial card; based on company filings and internal JPMorgan Chase estimates
2 AXP reflects the U.S. Consumer segment and internal JPMorgan Chase estimates for AXP’s U.S. small business sales
3 Based on company filings and internal JPMorgan Chase estimates as of 3Q16
4 For 3Q16 1
B
A
N
C
A
N
A
L
Y
S
T
S
A
S
S
O
C
I
A
T
I
O
N
O
F
B
O
S
T
O
N
C
O
N
F
E
R
E
N
C
E
Portfolio growth and seasoning will lead to modestly higher expected net charge-offs
Accounts acquired pre-2015 Accounts acquired 2015 onwards
Historical and expected Credit Card net charge-off rates1
Credit Card net charge-off rate1 guidance
2016 Investor Day
2.50%+/-
FY2016
2.60%+/-
FY2017
2.75%+/-
Medium-term
1 Excludes held-for-sale loans
2015 2016 2017 2018
Maturation of newer origination vintages will drive loss rates modestly higher
2
B
A
N
C
A
N
A
L
Y
S
T
S
A
S
S
O
C
I
A
T
I
O
N
O
F
B
O
S
T
O
N
C
O
N
F
E
R
E
N
C
E
Forward-looking statements
B
A
N
C
A
N
A
L
Y
S
T
S
A
S
S
O
C
I
A
T
I
O
N
O
F
B
O
S
T
O
N
C
O
N
F
E
R
E
N
C
E
This presentation contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations
of JPMorgan Chase & Co.’s management and are subject to significant risks and uncertainties.
Actual results may differ from those set forth in the forward-looking statements. Factors that could
cause JPMorgan Chase & Co.’s actual results to differ materially from those described in the
forward-looking statements can be found in JPMorgan Chase & Co.’s Annual Report on Form 10-K
for the year ended December 31, 2015, and Quarterly Reports on Form 10-Q for the quarters ended
March 31, 2016, June 30, 2016, and September 30, 2016, which have been filed with the Securities
and Exchange Commission and are available on JPMorgan Chase & Co.’s website
(http://investor.shareholder.com/jpmorganchase/sec.cfm), and on the Securities and Exchange
Commission’s website (www.sec.gov). JPMorgan Chase & Co. does not undertake to update the
forward-looking statements to reflect the impact of circumstances or events that may arise after the
date of the forward-looking statements.
3