JP Morgan Chase 2012 Annual Report Download - page 73

JPMorgan Chase & Co./2012 Annual Report 83
Selected metrics
As of or for the year ended
December 31,
(in millions, except ratios and
where otherwise noted) 2012 2011 2010
Credit data and quality statistics
Net charge-offs $ 411 $ 494 $ 730
Net charge-off rate 2.27% 2.89% 4.32%
Allowance for loan losses $ 698 $ 798 $ 875
Nonperforming assets 488 710 846
Retail branch business metrics
Investment sales volume $ 26,036 $ 22,716 $ 23,579
Client investment assets 158,502 137,853 133,114
% managed accounts 29% 24% 20%
Number of:
Chase Private Client branch
locations 1,218 262 16
Personal bankers 23,674 24,308 21,735
Sales specialists 6,076 6,017 4,876
Client advisors 2,963 3,201 3,066
Chase Private Clients 105,700 21,723 4,242
Accounts (in thousands)(a) 28,073 26,626 27,252
(a) Includes checking accounts and Chase LiquidSM cards (launched in the
second quarter of 2012).
Mortgage Banking
Selected income statement data
Year ended December 31,
(in millions, except ratios) 2012 2011 2010
Revenue
Mortgage fees and related income $ 8,680 $ 2,714 $ 3,855
All other income 475 490 528
Noninterest revenue 9,155 3,204 4,383
Net interest income 4,808 5,324 6,336
Total net revenue 13,963 8,528 10,719
Provision for credit losses (490) 3,580 8,289
Noninterest expense 9,121 8,256 5,766
Income/(loss) before income tax
expense/(benefit) 5,332 (3,308) (3,336)
Net income/(loss) $ 3,341 $ (2,138) $ (1,924)
Overhead ratio 65% 97% 54%
2012 compared with 2011
Mortgage Banking net income was $3.3 billion, compared
with a net loss of $2.1 billion in the prior year. The increase
was driven by higher net revenue and lower provision for
credit losses, partially offset by higher noninterest expense.
Net revenue was $14.0 billion, up $5.4 billion, or 64%,
compared with the prior year. Net interest income was $4.8
billion, down $516 million, or 10%, resulting from lower
loan balances due to portfolio runoff. Noninterest revenue
was $9.2 billion, up $6.0 billion compared with the prior
year, driven by higher mortgage fees and related income.
The provision for credit losses was a benefit of $490
million, compared with a provision expense of $3.6 billion
in the prior year. The current year reflected a $3.85 billion
reduction in the allowance for loan losses due to improved
delinquency trends and lower estimated losses.
Noninterest expense was $9.1 billion, an increase of $865
million, or 10%, compared with the prior year, driven by
higher production expense reflecting higher volumes,
partially offset by lower costs related to mortgage-related
matters.
2011 compared with 2010
Mortgage Banking reported a net loss of $2.1 billion,
compared with a net loss of $1.9 billion in the prior year.
The increase in net loss was driven by higher noninterest
expense and lower net revenue, offset by lower provision
for credit losses.
Net revenue was $8.5 billion, down $2.2 billion, or 20%,
compared with the prior year. Net interest income was $5.3
billion, down $1.0 billion, or 16%, from the prior year,
resulting from lower loan balances due to portfolio runoff.
Noninterest revenue was $3.2 billion, down $1.2 billion, or
27%, from the prior year, driven by lower mortgage fees
and related income.
The provision for credit losses was $3.6 billion, down $4.7
billion, or 57% compared with the prior year due to lower
estimated losses as delinquency trends and charge-offs
continued to improve. The current year provision also
included a $230 million net reduction in the allowance for
loan losses which reflects a reduction of $1.0 billion in the
allowance related to the non-credit-impaired portfolio, as
estimated losses in the portfolio have declined,
predominantly offset by an increase of $770 million
reflecting additional impairment of the Washington Mutual
PCI portfolio due to higher-than-expected default frequency
relative to modeled lifetime loss estimates. The prior-year
provision reflected a higher impairment of the PCI portfolio
and higher net charge-offs.
Noninterest expense was $8.3 billion, an increase of $2.5
billion, or 43%, compared with the prior year, driven by
elevated foreclosure- and default-related costs in Mortgage
Servicing.