JPMorgan Chase & Co at BancAnalysts Association of Boston Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : Great. Well, for the last two years, Jeremy was up here, and I generally asked him what JPMorgan's top challenges and opportunities were, so I'm going to give you that same question and not just the short term, but medium and longer-term challenges.

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : Well that's a perfect segue into talking about the events of this week with the election and everything. You guys probably have worked through an array of possibilities before we got the actual result. But what do you think the impact will be on the regulatory landscape including capital and liquidity from--?

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : So let's drill down on Basel III Endgame. I mean, obviously, that's been an area of focus for all of us and you over the last few years. You guys have been pretty vocal when the initial NPR came out last year. We've heard Vice Chair Barr talking about potential revisions. Do you think that the revisions as described, obviously, we don't have a final, but as described, do they go far enough? Or any comments on how you feel about that?

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : Fair enough. And I don't know if you can comment, but do you think that the election outcome might play into that? Or like how it might play into that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 2:40PM, JPM.N - JPMorgan Chase & Co at BancAnalysts Association of Boston Conference

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : Yeah. So that timing is still undetermined and -- and what happens after that, if we get it? Like what's the process once it is re-proposed? And have you heard anything on timing?

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : So what do we do in the meantime? Like are you proactively working to mitigate a rule that we don't even have the specifics on? Like what can you do or to what degree do you do something in this interim period?

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : Got it. And like one of the great frustrations for me in this sort of general topic is the G-SIB surcharge and the fact that has been recalibrated in so far. And Barr has made some comments about tinkering with the G-SIB surcharge. Do you have any thoughts to share on that? And like would those comments as if they were to solidify, make it harder for you to manage the G-SIB surcharge?

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : Right. Double punch. So let's switch off of Basel III and G-SIB and talk about the CCAR process Governor Bomen is awesome recently acknowledged issues with the stress testing and with the SVB framework overall. She pointed specifically to the volatility of the results and duplicity of some of the effects, which we were just talking about for a second there. But any thoughts on what might happen there or your reactions when you read what she had to say or listen to it, I don't know, but --? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 2:40PM, JPM.N - JPMorgan Chase & Co at BancAnalysts Association of Boston Conference

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : So having talked about the capital requirements and some of the potential changes and sort of a transition period here in between clarity, let's talk about capital. It continues to build up. Your CET ratio was 15.3%. Under the last CCAR, I think it's 12.3%. And you generated 72 bps of capital minus 22 for the dividend, 50 basis points a quarter, piling up in the halls. What's -- can you talk about your plans for all this capital and Jamie has made some provocative comments about buybacks. So?

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : Yeah, absolutely. Thoughtful provocative.

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : Yeah. Maybe I could sneak in there a question about dividend philosophy. If you could address that one specifically, like what is the philosophy on the level of dividend? Bonus question.

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : Great. Yeah. So in light of this capital conversation, how should we think about the 17% ROTCE kind of target just with capital requirements potentially going up? But at the same time, there's a lot of capital in the company now and you're nailing the ROTCE. What are your thoughts on capital requirements and their interaction with that target? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 2:40PM, JPM.N - JPMorgan Chase & Co at BancAnalysts Association of Boston Conference

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : So we've had this conversation collectively the market with Jeremy about the effects of QT on bank reserves in the system and the RRP. And we're getting to this point where QT may be coming to an end. Do you have -- do you have thoughts on what that could mean for liquidity in the system, system-wide deposits, the RRP itself and back to JP?

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : This might be all open up to questions from the group here in a sec. But it might be a good place to ask about Vice Chairman Barr's comments that he made about the liquidity regime and folding in deposit outflows, held to maturity, the discount window. Like do you have any thoughts there on like how -- how his thoughts on the framework might impact the way you as the Treasurer navigates? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 2:40PM, JPM.N - JPMorgan Chase & Co at BancAnalysts Association of Boston Conference

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : Unknown Analyst That's great. All right. So we'll open it up for questions and Julian. No. Yeah, mic. Thank you. Unidentified Participant Question is about how you're positioning the treasury portfolio for the rates outlook? I mean, in the pandemic, Jamie was incredibly vocal about staying liquid, I remember him saying he wouldn't touch 1% bond yields with a 10-foot pole. And that an incredibly strong position. And you had far more net interest income growth than rivals. What about now? Because like rate expectations have been extraordinarily volatile, but still kind of rates expected to cut. So how are you kind of immunizing against rate cuts?

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : Yes. Can you introduce yourself too? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 2:40PM, JPM.N - JPMorgan Chase & Co at BancAnalysts Association of Boston Conference Unidentified Participant So your SCB has gone from, what, 4% to 2.9% to 3.3%. And like that's some volatility in your SCB. That's like not knowing your cost of goods sold after you made the sale. So I understand your desire to maybe have the CCAR changed a little bit. What's one path, any path that might cause that to change? And what sort of impact do you think that would have on your required capital? Is it 10 basis points, 50, 100, 200 basis points if you got rid of some that duplication you mentioned, whether it's op risk or market shocks?

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : Well, I think that's a great place to end. And hopefully, we get that transparency, and we can start to understand it a little bit better. Thank you very much.

Question: Dick Manuel - Columbia Threadneedle Investments - Analyst : Opened up a lot of interesting insights for us. So thank you very much.