JPM

Signals

Analyst questions (verbatim)

• Q

  ...markets, I know it depends on conversion opportunities and just the environment, but this is clearly a far higher level of activity than anyone would have expected. How do you judge the sustainability, and how do you judge just how risk-on are we across the various businesses?

• Q

  ...up, bigger-picture question on expenses: really the returns that you're getting from the branch build-out, the AI investments, the hire of the bankers. Ultimately, where are we in the investment cycle? How does it play into the operating leverage outlook over the medium term?

• Q

  Okay. Just to finish up on the NII: markets NII is guided a bit higher, even though the outlook for rates is a little higher. What are some of the drivers there? Is it balance sheet mix and other factors?

• Q

  ...an exceptional CEO in the future as you pass the baton on? Additionally, some investors may have read Marianne's departure as an extension of your tenure. Should we think about your remaining tenure as more fixed, or is it still rolling and possibly longer as executive chair?

• Q

  Just to follow up, what do you mean by no change in timing?

Adjacent management responses (verbatim)

• A...markets, I know it depends on conversion opportunities and just the environment, but this is clearly a far higher level of activity than anyone would have expected. How do you judge the sustainability, and how do you judge just how risk-on are we across the various businesses?：Good question, Ken. I would bifurcate that a little bit between investment banking and markets. By historical standards, investment banking fees were fine, but they weren't at super peak level.^[6]
• A...up, bigger-picture question on expenses: really the returns that you're getting from the branch build-out, the AI investments, the hire of the bankers. Ultimately, where are we in the investment cycle? How does it play into the operating leverage outlook over the medium term?：I would just say it's a complete continuation of what we've been doing for years. You shouldn't really expect any change.^[6]
• AOkay. Just to finish up on the NII: markets NII is guided a bit higher, even though the outlook for rates is a little higher. What are some of the drivers there? Is it balance sheet mix and other factors?：It's a great question. You correctly allude to the fact we've said previously that markets NII is liability sensitive, all else equal. In general, changes in markets NII, especially when driven by rates, are almost always fully offset in the bottom line through NIR.^[6]
• A...an exceptional CEO in the future as you pass the baton on? Additionally, some investors may have read Marianne's departure as an extension of your tenure. Should we think about your remaining tenure as more fixed, or is it still rolling and possibly longer as executive chair?：The timing is essentially the same; it's completely up to the board, but it hasn't changed. Regarding the characteristics, I've always said you want to be good at management, good with people, analytical, detailed, a culture carrier, curious, with heart, grit, soul, work ethic, able to travel, able to walk in operating centers and be with CEOs and prime ministers.^[6]

Key questions going in

1. 01Which recent news item changed investor expectations before the report?
2. 02Did revenue growth accelerate or decelerate versus recent quarters?
3. 03Did margins improve or deteriorate, and what drove the change?
4. 04Did management raise, lower, or maintain guidance?
5. 05Which business segment or KPI drove the result?
6. 06What risks did management emphasize, and did that language change?