JPMorgan Chase & Co at UBS Financial Services Conference Transcript

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

Question: Erika Penala - UBS Financial Services - Analyst : Absolutely. So let's just stop or rather start at the top of the house, we're not stopping in. There's been some organizational changes to start the year with Daniel, Jen, and Doug's roles all changing. Mimi talk to us about what this implies for how the company is run and what does Jen's statement about not wanting to be considered CEO for now, imply if anything about succession timing?

Question: Erika Penala - UBS Financial Services - Analyst : So Pivoting topics a little bit, if we could dig into your favorite topics, net interest income.

Question: Erika Penala - UBS Financial Services - Analyst : That too. So your net interest income guide of $90 billion ex-markets and $94 billion firm wide, are you still expecting a mid-year trough at this point, Jeremy, and assuming one cut mid-year, what does your exit run rate look like?

Question: Erika Penala - UBS Financial Services - Analyst : Well, that's helpful. What's not helpful is I was not approved for a stage rabbit. I think that --

Question: Erika Penala - UBS Financial Services - Analyst : I could not pull a rabbit out of the hat during the NII discussion. So I apologize for that. But I made a joke because I made the same joke last year about JPMorgan pooling NII rabbit out of a hat. So let's just maybe go back to your 2024 NII outlook because it did change materially throughout REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 11, 2025 / 2:40PM, JPM.N - JPMorgan Chase & Co at UBS Financial Services Conference the year. So how much of that change is due to the change in the rate outlook versus changes in your own assumptions on how the balance sheet would react? And where were you guys most off on your assumption?

Question: Erika Penala - UBS Financial Services - Analyst : So speaking of the deposit franchise and going back to looking forward, what kind of deposit growth in beta is implied in your 2025 outlook?

Question: Erika Penala - UBS Financial Services - Analyst : And just a follow-up to this, is higher for longer impacted all you think any of the dynamics that you laid out? And specifically to JPMorgan, it's been a while since investors have seen a neutral rate of not zero. How should we think about your natural cost of deposits with a higher neutral rate?

Question: Erika Penala - UBS Financial Services - Analyst : Switching topics. Your expenses have continued to increase. And as per usual, JPMorgan has invested back in the business. That said, you did strike a slightly different but notable tone on your last earnings call, expressing a desire to quote and live within your means. What does that mean for you guys? And why the change in tone, especially given your material level of excess capital? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 11, 2025 / 2:40PM, JPM.N - JPMorgan Chase & Co at UBS Financial Services Conference

Question: Erika Penala - UBS Financial Services - Analyst : So you referenced how you're talking about expenses in the past. You've also mentioned market share opportunities as one allocation for investment spend. Could you maybe detail where you think that yellow and red market share areas are that you've identified? And are they spread across your businesses? Or do other businesses have more of an emergent need for investment spend?

Question: Erika Penala - UBS Financial Services - Analyst : Is it easy to distil everything that you said into a singular statement on whether or not JPMorgan is focusing more on balance sheet light businesses versus balance sheet intensive?

Question: Erika Penala - UBS Financial Services - Analyst : I wanted to double-click on one of the investments that you mentioned, payments. What is JPMorgan gotten right here? And what do you think it could do better? I know it's a big focus for you guys, and I'm sure you want to accelerate your place in the ecosystem, so let's discuss this.

Question: Erika Penala - UBS Financial Services - Analyst : Great. Perhaps you can give us an update on tech expenses. So what's the 2025 number for tech expenses? And what's driving that growth?

Question: Erika Penala - UBS Financial Services - Analyst : So I wanted to switch topics on the consumer, of which you have a very good lens. You heard a lot yesterday from the monoline card companies and the health of the consumer and spending, and we'll be hearing from Capital One later today. What is your view on consumer health?

Question: Erika Penala - UBS Financial Services - Analyst : We've talked a lot about normalized card growth hasn't quite happened yet in terms of what is typically defined as normal for the industry. What is your definition of normalized card growth, especially in context of a business where you've been heavily investing?

Question: Erika Penala - UBS Financial Services - Analyst : Here is a tough one. What's it going to take to revitalize the housing market?

Question: Erika Penala - UBS Financial Services - Analyst : More houses, more of them?

Question: Erika Penala - UBS Financial Services - Analyst : So I wanted to go into one of your favorite rabbit hole, regulation or --

Question: Erika Penala - UBS Financial Services - Analyst : I'll find something else for next year. In this administration, the regulation. So maybe talk broadly about maybe what you expect, how the new administration would impact future capital and liquidity requirements. And of course, supervisory practice is very important. And if you could give us your latest thoughts on there are clearly headlines on the DFAST in terms of the lawsuit in the Fed's own press release, and some language in the parameters that they released in the stress test. So any insight on SCB and your favorite topic, G-SIB. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 11, 2025 / 2:40PM, JPM.N - JPMorgan Chase & Co at UBS Financial Services Conference

Question: Erika Penala - UBS Financial Services - Analyst : Two more questions. We can get them both in. Talk about excess capital. You've mentioned, Jeremy, at the last earnings call about arresting capital growth, if no opportunities arose. How has the bar for evaluating opportunities moved since your share price -- given your share price and your previous very public reluctance to buy back stock?

Question: Erika Penala - UBS Financial Services - Analyst : The base keeps going up, so that's good, right? In terms of the market cap. And final question, Jeremy, previously, you've indicated that 2025 would be a year of rate normalization and a 17% return on tangible common equity would be unlikely to achieve. And consensus has to actually closer to 19%. Do you expect to achieve a 17% return in 2025? And I always ask you this question every other call, what would it take for you guys to update the 17% through the cycle target?

Question: Erika Penala - UBS Financial Services - Analyst : This is only for you.

Question: Erika Penala - UBS Financial Services - Analyst : Okay. I think we're out of time. Thank you so much, Jeremy. Always a pleasure.