Good morning. Welcome to JPMorgan Chase & Co.'s 2023 Investor Day. This call is being recorded. Your line will be muted for the duration of the call. We will now go live to the presentation. Good morning. Please welcome to the stage Mikael Grubb, Head of Investor Relations. All right. Good morning, everyone. For those of you who don't know me, I'm Mikael Grubb, the Head of Investor Relations. On behalf of the operating committee and the rest of the firm, it's my great pleasure to welcome you all to our 2023 Investor Day. Similar to last year, we do have a very full agenda. You all know me, I'll keep my remarks very brief. First on Q&A. In addition to this afternoon's session, which is gonna be led by Jamie, we will have some time for questions after the individual presentations, starting with Lori's tech discussion. Second, I am not gonna pester you with a formal survey this year, please email me your feedback. We do listen and adjust, as evidenced by the aforementioned Q&A sessions, the printed books on your tables, not to mention the fact that we're not serving red meat for lunch this year. Third, if you're a Fixed Income investor, please note that we have also updated our investor materials under the Fixed Income tab on our website. Lastly, making predictions is hard, especially if it's about the future, and even more so in this environment. Please make sure to check out the disclaimer about forward-looking statements. All right. Please silence your phones, sit back, and enjoy the presentations. Let's welcome to the stage our President and Chief Operating Officer, Daniel Pinto. Welcome to the stage Daniel Pinto, President and Chief Operating Officer of JPMorgan Chase, and CEO of Corporate & Investment Bank. Well, welcome. Good morning. How are you guys doing this morning? I will start with an overview of the firm. Jeremy will discuss our financials and our outlook. I will return a bit later with a presentation on the Corporate & Investment Bank with my partners. You will hear today from senior leaders across the company about our technology agenda and about our businesses and priorities all across. Okay. You have seen a version of these slides almost every year, and it's intentional. We have proven operating model. This is based essentially in four pillars, is to be complete, to be global, to be diversified, and operate and scale. We deliver for our clients in any environment while generating good return for our shareholders. We have exceptional client franchise and a broad set of products and services. We have built a great culture, a fortress balances, and a strong risk management and a strong control environment. We are constantly investing in the future while we are also being focused on managing our expenses. From the investments in technology that we are powering, that are powering the business, to the great customer experience, to innovation, talent acquisition, development, and retention. We have incorporated in our operating model our sustainable practice and in the way that we run businesses on a day-to-day basis. We have leading positions across all four lines of business in a very, very competitive environment. A few highlights to mention. It started with the consumer bank. number one deposit franchise in the country. Market share has grown around 400 basis points in the last 10 years. We have the top U.S. credit card issuer. One of our biggest areas of growth is Wealth Management in the United States. You see here our assets have quadrupled over the last 10 years and growing fast. The Corporate and Investment Bank has four great franchises, Investment Banking, Markets, Payments, and Securities Services, all of those increase in market share over the year. Nothing of that would have happened without the collaboration that we have with Doug Petno's group, the Commercial Bank. The same for the Commercial Bank, a great business that we have also benefit for the partnership with the Investment Bank. It's clearly the number one multifamily lender in the country, and they have grown IB revenues from $1.6 billion to $3 billion, almost double. Their clients, they are big clients of the Payments organization, that the Payments business in the Commercial Bank has gone from $2.7 billion to $5.9 billion. The Asset & Wealth Management division, also very strong. The number one rated private bank in the world. Assets under client assets have grown from $2 trillion to $4 trillion, and 90% of our funds are performing better than the peer median. They have 18 years of positive net inflows. While each business is successful in itself, there is room for growth and expansion. Our four main business do not operate in isolation. There are many opportunities that can be unlocked by collaborating across. I will talk more about that in a minute. Having in mind the four pillars of our strategy, this slide shows the depth of our franchise, the benefit of having a diverse business that delivers through cycles. On the left, you can see how revenues continue growing in different market environments. For example, in 2020, while interest rates were low, therefore NII was challenged, fee generated from the mortgage company to refinancing and new origination, from the investment banking fees, from the Asset & Wealth Management, and a very strong performance of markets produced growth despite the situation with NII. Exactly the opposite happened in 2022, where essentially the investment bank wallet collapsed to the 2019 levels and the mortgage origination and refinancing pretty much stopped or reduced substantially. NII compensate for that. On the right-hand side of the page, you can see the completeness of our offering. Combined with our strong investments in technology, we can deliver a very wide range of products for our clients. Most of our products offerings are in leading market positions, but there are some where we have opportunities. I mentioned wealth management, Connected Commerce, and areas of payments. All across the company, there are areas where we can do better. We talked last year about our new initiative that is a retail bank in Europe, in the U.K. It's going well. It's going according to the plan. The deposits have gone from $10 billion to close to $20 billion. Clients, the customers, have pretty much tripled to 1.6 million, of which one million, sorry, are it's not so big yet. 1 million are active, and we are processing roughly 1 million transactions a day. We continue expanding our product offering and regional footprint. We said last year we were going to constrain the cash burn of this business to around $450 million, and we are focused on that while we are investing. This is happening. Even this year may come up a bit better than that. Being global is a core strength. We serve our clients in more than 100 countries around the world, and scale is very, very important in these businesses. These businesses are very expensive to run, and scale allow you to be profitable. Profitability allow you to invest, and investment allow you to grow and provide better services to our clients. Let's talk about how we serve our customers and clients. We have a unique ability to deepen client relationships and build new ones across all lines of business. Our business model is set up to serve clients as their needs, and they grow, and their needs evolve. We see millions of customers through our Chase branches and digital offerings, and we also work with the wealthiest individuals in the country, so we cover the whole footprint. We bank millions of small business in retail, and we bank thousands of middle market companies. Those companies, as they become bigger, they get to use the services of the Corporate & Investment Bank. Our people know how to work together and know how not to work in silos. We are proud of our culture that support partnership across LOB and makes possible to deliver great client experiences to our clients. This integration, experience, and institutional knowledge is part of our secret sauce for success. Approximately 30% of our leaders have experience in different businesses or in different functions, that helps through their career to have a very good attitude to work collaboration. We also are very focused in creating a balance of products, being focused on products, and clients and regional oversight. In the United States, it's done through the markets leadership teams that make sure that all these set of products that goes into the regions, they get the regional flavor, and they are delivered in a way that is helpful and effective to our clients. The same role is being performed by the senior country offices and the regional heads internationally. All this is great. Our technology investment is what is powered all this, the in and the out. On the right side of this slide, we can see how our business come together to strengthen our value proposition. Regardless of where clients sit, they get the best products and services from our complete offering. The green marks on the right-hand side of the page shows where the primary coverage of those clients are, and where the primary products that they consume are. The blue check marks, it shows how the company comes together, offering to those clients cross-LOB solutions regardless of where those clients are initially or primary covered. That give us a massive competitive advantage. For example, for individuals, talking again about the Wealth Management business that you can see is a big priority for us, they get the benefit of a great investment, Wealth Management Private Bank services, and some of the product organization of the Private Bank is helping to develop products in the Wealth Management division. The same for small business and middle market companies. Depending on the size, they get the benefit of advice, access to capital markets, hedging solutions to clients, or payment solutions from payments. We are very focused in servicing our clients, we also focus in the environment that we are operating. We have been very resilient, we are confident that we can continue to deliver for our clients and shareholders regardless of the economic environment of the time. We cannot ignore that there are plenty of challenges at this time and sources of uncertainty. In the micro side, what we are seeing today, the global economy is doing fine. The U.S. economy at the moment is doing fine as the consumer, but we see signs of deterioration, slowdowns in the economy, some indicators. Also consumers, gradually they are, the buffers that they build in their savings through the pandemic is being eroded. The very high speed of increase in interest rates, persistent inflation, tight labor markets, and we are going through a process of normalization of monetary policy that is probably the biggest that we ever seen with unforeseen consequences. We also see a massive expansion of fiscal deficit in most of our countries and increase in debt. That is, it may not be a problem now, but debt sustainability is something that once everyone should keep in mind as debt to GDP is growing everywhere around the world. With all this, it's very unlikely that we are not going to have a recession of some sort. How deep or not this to be, time will tell. Coming from Argentina, I have lived inflation and hyperinflation. I can tell you that recession is a good price to pay to put inflation back to the target levels. Inflation is terrible for society, particularly the lower segments of that society. As a company, obviously we have our central case, a scenario that we drive the company day in and day out, but we are constantly looking at the tails and being prepared in case the scenarios are worse than what we are planning. The other challenge is geopolitics. Clearly, geopolitics has been an issue. The terrible war between Ukraine and Russia that we don't know how long it will take, and we all know it will be an escalation. It's something that is sad and staying there. The increasing tension between China and the US, that is something that we have to learn to live with because it's not resolvable. Hopefully through dialogue, that tension becomes constructed, and it doesn't go beyond that, what it has to be. There are some regulatory uncertainty. In a month, we will get the result of our CCAR submission. We don't have clarity yet about the last implementation, the end game of Basel III. Most likely it will create some increase in capital for us. All what has happened in the last several weeks in the banking sector here and in Europe is likely to have some regulatory reaction to it. I'm sure we are not going to be immune to that. With all the uncertainties out there, we remain focused in protecting and supporting our clients and the firm, and contributing to the safe, sound, and resilient financial system. Cybersecurity, risk management, and technology are critical to those efforts. These things are expensive, but it's a price that we all need to pay and give us for sure a competitive advantage going forward. While every employee is responsible to uphold the control environment standards of the company, we have thousands of people dedicated to these efforts to minimize fraud and cyber risk, to protect client data and assets, and to comply with anti-money laundering laws and Know Your Client protocol. Our strong commitment for this effort was evident during the last several weeks, during the disruption that we saw in the banking system. We onboarded mainly in the commercial bank, in the private bank, but pretty much all across the company, thousands and thousands of clients coming from some of the banks that failed. We have done all that without compromising our risk standards and control environment. We also executed the First Republic transaction, and that was very impressive to see how close to 800 people or 1,000 people across the company came together to be prepared in case we bid, and if we have to incorporate this company. From the economic model to the assessment of risk to an implementation plan that is extremely detailed. We knew exactly what we were going to do in case the company will join us, what we were going to do every single day going forward. I think that this was JPMorgan Chase at its best. At the same time, we are committed to advancing a sustainable and inclusive economy and helping our clients to achieve their sustainable goals. We recognize with the role we play in advancing this agenda, we believe it's the right thing to do for our communities, for our customers, and for the planet. In 2022, we continued to make progress on our $2.5 trillion 10-year sustainable development target. Today, we have financial facilitated more than $480 billion, sorry, towards our goal, including $176 billion in support of the $1 trillion green objective, $204 billion in development finance in emerging economies, and $102 billion towards economic inclusion. We believe our business is better when the economy is more inclusive. We remain committed to advancing racial equity in the communities we serve at our company. We are reporting nearly $29 billion progress toward the $30 billion racial equity commitment. This progress in 2022 was related to affordable rental housing preservation and home ownership refinancing. We intend to continue this effort beyond the current program. Before I turn it over to Jeremy, this last slide shows the strong track record of this company. We have a 9% compound annual growth rate in tangible book value per share since 2004. That is 400 basis points ahead of most of our peers. Our success in 2022 include $132 billion of revenues, $38 billion of net income, and a return on tangible common equity of 18%. Looking forward, we will maintain our strategy. We will focus in execution in our culture, risk management, expense discipline, and innovation. The power of our investments, our diversification, and the scale of the business we run will drive the future success of the company. I will pass it over to Jeremy now. Thank you. Welcome to the stage Jeremy Barnum, Chief Financial Officer. Okay, thank you, Daniel. three months ago, I would have gone through this page fairly quickly. What's happened since then serves as a reminder of the importance of our fortress principles. Starting with liquidity on the left, while HQLA is what matters for some of our regulatory ratios, we also find it useful to look at a more holistic measure of liquidity resources, including unencumbered marketable securities. That number has increased by $600 billion since 2019. One way to think about the story of the last couple of years is that system-wide deposits increased a lot as a result of QE during COVID. Banks had to decide what to do with the money. In our case, we saw deposit net inflows of about $800 billion split roughly equally between retail and wholesale. When you compare that to the $600 billion increase in total liquidity resources, you can see that our deployment strategy in response to the elevated deposit growth of the pandemic era has been very conservative. As the evolution of both our NIM and our fair value disclosures highlights, the duration of our deployment was also quite short. On the right, we remind you once again of the staggering amount of capital that we have. In the middle of the page, you have our first quarter reported numbers. We did in fact use some balance sheet resources to do the First Republic deal. 40 basis points of CET1, as well as some usage of LCR capacity. On the LCR front, the combination of liquidity usage for First Republic and normal course liquidity consumption means we expect bank LCR to be in the high 120s at second quarter earnings. Still very comfortably above requirements. Let me expand for a second on the use of balance sheet resources I just mentioned. Jamie always says that excess capital is just future earnings, and I think this is a nice example of that. The conservative positioning of the balance sheet allowed us to do the First Republic transaction and deploy that 40 basis points of excess capital and some of our excess liquidity at extremely attractive returns. Not only well above what would be implied by share buybacks, but also significantly better than our 17% through the cycle target. If at any point in the future we choose to build up capital a little bit, just keep that in mind. Now moving on to the outlook. Since we just updated our 2023 NII guidance at first quarter earnings, I'm starting the explain from there. Excluding the impact of First Republic, the $81 billion has not changed meaningfully, and the drivers are essentially the same and are listed on the left. Now turning to the impact of the First Republic transaction, we are expecting a full year NII contribution of approximately $3 billion. As a result, we are updating the 2023 NII ex- markets outlook to approximately $84 billion. In addition, you'll recall that our medium-term expectation for NII ex- markets across a range of potential scenarios was around the mid-70%s. Jenn and Marianne will touch on this in their section, but we are currently very focused on preserving and rebuilding the core deposit franchise we acquired while we figure out how to incorporate the best elements of the First Republic customer experience cost effectively. In light of that, how much of the $3 billion increase I just mentioned flows into that medium-term run rate remains to be seen. In addition to the deposit franchise, we've acquired a portfolio of assets at attractive yields, which will contribute to NII for some time, but not forever. Furthermore, as I just mentioned, the net assets are consuming excess liquidity capacity, some of which prior to the transaction was assumed to be deployed in our medium-term outlook. For all these reasons, I would caution you against simply adding that $3 billion to the mid-70%s number. While we're at it, I know many of you think the $500 million of net income contribution we mentioned when we announced the deal is conservative. We agree and have acknowledged as much. Either way, though, starting today, the First Republic franchise is embedded in our forward guidance, and you will see the bottom line impacts flow through our reported results. If we wind up doing better than we assumed, great. On the right, we remind you once again of how sensitive our overall NII outlook is to various drivers. Among other considerations is the pace of QT and the size and terms of RRP. On the next page, we have a bit more detail on those points. Everyone is very focused on deposit outflows to money market funds these days and how that interacts with QT and RRP. Let's take a second to review the flows. I'll start by reminding you that if not for RRP, bank deposits flowing into money market funds would not necessarily change system-wide deposits. To the extent that money fund inflows are invested into RRP, system-wide deposits shrink. Given the relatively attractive yield of RRP in an environment short of treasury collateral, deposit inflows into money funds that eventually land in RRP have been a significant headwind for system-wide deposits. On a related point, there's recently been an increased use of home loan advances by banks. The issuance of the discount notes to fund those advances will also drain deposits unless discount note buyers are taking down RRP to make room, which is ultimately a relative value decision and highlights how the pricing of RRP is a key factor in the current deposit dynamics. The rest of the outside boxes make the well-known points that all else equal, QT shrinks deposits, and credit extension increases them. In the middle of the page, you can see how these dynamics have reduced the balance of commercial bank deposits by about $1 trillion since December of 2021. Looking ahead, we don't claim any unique insights. All else equal, the Fed's balance sheet continues to get smaller. As long as RRP remains attractive relative to other short-term investment options, we are not assuming that reductions in RRP will mitigate downward pressure from QT. As a result, we expect system-wide deposits to continue declining. In light of these pressures, it's therefore important to reiterate our deposit strategy. We will fight to keep primary banking relationships, we are not going to chase every dollar of deposit balances. Moving on to expenses. Excluding First Republic, the $81 billion expense outlook that we reiterated at earnings has not changed, and the overall themes remain consistent with what they were when we originally provided the guidance in our fourth quarter earnings call. In terms of First Republic, we expect the impact of the transaction to increase expenses by about $3.5 billion this year. As a result, we are updating our 2023 outlook to approximately $84.5 billion. When comparing this to the increase in our NII guidance, keep in mind that there will also be higher NIR coming mostly from the wealth business. Also, recall that when we announced the deal, we estimated about $2.5 billion of pre-tax integration costs. We're currently assuming that about half of the integration expense will be incurred this year. As we continue integrating the First Republic franchise, we expect to have choices about the service model which may result in higher expense, all else equal. If that's the case, the expense will come with additional revenue and be accretive to what we previously announced. Finally, on 2023, our current guidance does not include the FDIC special assessment related to the failures of Silicon Valley and Signature Bank. Based on the methodology in the recently proposed rule from the FDIC, we expect our total cost will be about $3 billion pre-tax, which will likely be accrued in 2023, subject to the finalization of the proposal. It's too early to guide to 2024 expenses today, but we've included several considerations on the page. As always, if there are opportunities for additional investments that make sense, we will take them and explain them to you. The next slide has more detail on investments. This page is just meant to serve as an anchor point for the detail you will hear directly from our technology and business leaders today. The themes are broadly consistent with what we've been talking about over the last year. I won't go through the details. I do, however, following on the comments that Daniel just made, want to highlight international consumer, which is the gray bar in the new and expanded businesses section. The initiative remains broadly on track with the time to break even being consistent with what we said at last year's Investor Day. Moving on to capital. The events of March have raised new questions about potential changes to capital and liquidity requirements, which might or might not be significant for us, but which, in any case, we will process in due course. For today, let's focus on the Basel III Endgame proposal, which we expect any day now, as well as the holistic review. Of course, even once we get the release, changes won't be immediate since it takes time to move from NPR to final rule to implementation, as we emphasize in the timelines at the bottom. Elsewhere on the page, we're showing you these dials representing the different pieces of the framework that might change. Without going through each one, the overall point is that there are at least six distinct moving parts in the interaction between the Basel III Endgame and the holistic review. Each of those inputs will require agreement among a different set of regulators. As the rules are released for comment, you can rest assured that we will be advocating forcefully for our points of view. We feel strongly that we have more than enough capital and that the G-SIB framework is conceptually flawed, among many other issues. For planning purposes, we have to prepare for the possibility that the end result of this process is an increase in capital requirements. With this in mind, let's turn to the future on the next page. What is clear as we take a step back is that some of the outcomes that could emerge on the capital front could render certain of our products fundamentally economically unviable when burdened with even higher capital requirements. If we have to make those decisions, we will. No one should doubt the real impact of these ever-increasing capital requirements on the availability of products and services. If the better answer is to keep our footprint roughly the same and simply operate with more capital, our organic capital generation gives us a great deal of flexibility to do that. For the avoidance of doubt, this page is anchored on analyst estimates. You'll see the walk includes the 40 basis point impact of First Republic. It's worth noting that even after that impact, our pro forma CET1 ratio for the first quarter would be very close to our 1Q 2024 target of 13.5%. As we look forward, that means that between now and the first quarter of next year, according to your estimates, we have about $20 billion of excess capital available to address increased FDIC expense, potential changes to requirements, as well as growth. The remainder would be available to retain or distribute. Whether we choose to distribute or retain at any given point in time will depend on circumstances. Keeping in mind the points I made at the outset that retained capital is future earnings. Turning to credit. On credit, there's not much new to say here today. As we said at earnings, we are currently reserved for a weighted average peak unemployment of 5.8%, which is consistent with our somewhat cautious view of the outlook. This is also a good place to remind you that we need to make an allowance against the First Republic portfolio, which we currently estimate at around $1 billion. On net charge-offs, the big picture story also hasn't changed. Marianne will give more detail on consumer credit in her section, but broadly, we are still seeing normalization, not deterioration. In light of the intense focus on CRE, Doug will have some additional detail on that in his section. Now, turning to the outlook for ROTCE. Over the last couple of quarters, the question has come up a couple of times about return expectations in a variety of recessionary scenarios. Jamie suggested that we would share some of our analysis at Investor Day. Here we go. Of course, every recession is unique, and as recent events have reminded us, we should always expect the unexpected. Here we attempted some simplified analysis of different types of recessionary scenarios and, with all the obvious caveats, what sort of returns might be expected in each of them. On the right-hand side of the page, you can see a chart with different colors and curves. They are generated from a relatively simple top-down model that tries to capture major economic drivers of performance, which we then run through different scenarios of rates, credit losses, growth, and market volatility. If we start from 2022 full-year results, you can see many of the scenarios go up, recognizing the very strong recent sequential performance and the full-year NII and expense guidance you already have. As we look further into the future, starting with the gray scenario, you can see how in a normal recession, the expected return would be below the target but still healthy. Just to be clear, a normal recession is not the Fed's severely adverse scenario, and it's also not the pandemic experience, which was unusual in a variety of ways. It's also not the very mild recession that the current market consensus reflects. As you move from the gray scenario to some of the shallower and milder scenarios, you can see that many of them produce returns that are slightly better, in some cases consistent with our through the cycle target. Again, take all of this with a grain of salt. On the left-hand side of the page, we remind you of the various drivers that will affect performance, each of which interacts differently with the economic scenario. Ultimately, the point is simple. The company is resilient, and we believe we are well-positioned for a broad range of environments. To wrap up, we continue to believe in our 17% through the cycle target, which is well supported by our recent results. As we go into a more challenging environment, it's important to remember that some years may be better than 17%, while others will be worse. Through all environments, we will remain focused on the core strategic priorities and operating principles that have served us well over a long period of time. We are complete, global, diversified, and operate at scale. As Daniel mentioned, our ongoing focus on investing prudently for the future sets us up well for continued success. With that, let's welcome Lori to the stage. Welcome to the stage, Lori Beer, Global Chief Information Officer. Good morning. I'm Lori Beer, the firm's Global Chief Information Officer. I'm happy to be with you today to provide an update on the progress we have made towards our mission to deliver leading technology at a global scale with speed that enables business growth. Last year, I laid out our technology strategy across four pillars. We remain committed to this strategy, and our talented team of more than 57,000 technology employees have executed against it to drive our business forward. Let me share some more details that highlight our progress, starting with our products. We build products and platforms that provide economies of scale and deliver seamless multi-channel experiences. We rapidly deploy new features to continually improve our offerings and delight our customers. There are many examples of this work across our businesses. My colleagues will cover some of them in their presentations today. Products and platforms need a strong foundation to be successful. Ours are underpinned by our mission to modernize our technology and practices. We are already delivering product features 20% faster than last year. We continue to modernize our applications, leverage software as a service, and retire legacy applications. We are doing all of this while we continue to make progress on our multi-vendor public cloud strategy, leveraging the benefits of public cloud where it makes sense while also optimizing our data centers. We continue to embed data and insights into everything we do. We are ahead of our plan on our commitment to drive $1 billion in business value through AI investments by the end of this year. We've increased the number of AI use cases in production 34% year-over-year, with more than 300 in production. We are actively evaluating opportunities with large language models and see great potential in that space. Finally, but critically important, we work every day to protect our firm and our customers. We remain steadfast in our commitment to proactively defend against cyber threats, both within the firm and by advising our customers, the industry, our communities, and governments. Despite ever-increasing volumes and more sophisticated capabilities, we have kept our expenses relatively flat to volume increases. Cyber is a differentiator for us and continues to drive value for the company. I'll cover our strategic pillars in more detail later, but first, I'll talk about our total spend in technology. For 2022, we ended the year at $14.3 billion in technology spend. This was a little higher than what we shared with you last year, primarily driven by structural headwinds from labor inflation. These were largely offset by internal efficiencies, and incremental investments were in line at $1.1 billion. For 2023, we expect to end the year at $15.3 billion in spend, driven by increased volumes, wage inflation, and targeted investments, primarily in CCB. We expect to see continued business volume growth, fewer headwinds from attrition and wage inflation. Once again, we expect this to be offset with internal efficiencies and our productivity efforts totaling $0.5 billion. On the right, you see total investment of $7.2 billion, consistent with what we discussed last year. $4 billion is in support of delivering customer and client experiences and product development, while the remaining $3.2 billion sits across three of our strategic focus areas and represents in firm-wide platforms that give us scale, including development, data, public cloud, and cybersecurity. Through our disciplined investment approach, we have been able to keep technology spend as a percent of revenue relatively consistent over the past several years at around 10%, with the majority of the expense growth since 2019 due to investment spend across our strategic pillars. Lastly, you'll see our run-the-bank costs have remained relatively flat despite increasing volumes, demonstrating our ability to scale efficiently. We have worked to offset increases in business volumes and wage inflation through productivity and efficiency gains. We are delivering $0.5 billion against the commitment we made last year to realize one and $0.5 billion in productivity and cost efficiencies over three years. These gains are tied to investments and actions we've taken in the way we deliver software and our modernization efforts. Specifically, we have driven $300 million in efficiency through modern engineering practices and labor productivity, and we have developed a framework that enables us to identify further opportunities in the future. Our infrastructure modernization efforts have yielded an additional $200 million in productivity, driven by improved utilization and vendor rationalization. Now I'll walk you through more details behind the modernization efforts and the results we are seeing. Our modernization work covers three areas: applications, infrastructure, and engineering practices. Adoption of industry-leading software-as-a-service solutions is an important driver of application modernization. In total, we have more than 560 SaaS solutions across our technology state, a 14% increase since 2022. One example is our communication and collaboration tools, where we will migrate nearly 60% of our tools to SaaS by the end of 2023, which will allow us to rapidly scale new products to more than 290,000 employees. We continue to retire legacy applications with more than 2,500 decommissioned since 2017. Finally, we are investing in modernizing the applications we build to allow more rapid delivery, efficiency, and scale. There are two ways we are modernizing our infrastructure. The first is migrating applications to more efficient data centers. To date, we have moved about 60% of our in-scope applications to new data centers, which are 30% more efficient. This translates to 16,000 fewer hardware assets. We are also migrating applications to utilize the benefit of public and private cloud. 38% of our infrastructure is now in the cloud, which is up 8 percentage points year-over-year. In total, 56% of our infrastructure spend is modern. Over the next 3 years, we have line of sight to have nearly 80% on modern infrastructure. Of the remainder, half is mainframes, which are highly efficient and already run in our new data centers. Our cloud journey will ultimately create a faster, more efficient environment for our businesses. By working toward our target state of multi-vendor public cloud and modern strategic data centers, we have been able to keep our infrastructure expenses relatively flat while our compute and storage volumes have increased 50% since 2019 and tripled since 2015. This strategy will be critical as we continue to scale in new areas such as AI. The third pie-piece of our modernization strategy is equipping our 43,000 engineers with the capabilities and tools they need to optimize their work and boost productivity. We target 80% adoption of our enterprise tool chain by the end of 2022. We are currently at 84% with a plan to reach 100% by the end of this year. Additionally, engineering excellence is measured through the productivity framework I mentioned earlier and is tracked across speed, agility, and stability. Over the past year, we have made steady progress on all three, showing improvements in the number of applications and teams that are adopting the framework, as well as seeing meaningful improvement in outcomes. On speed, we've achieved 60% framework adoption and 20% year-over-year improvement in the speed to move features from backlog into production. In agility, 60% of our teams have adopted agile practices and measurement frameworks. This has directly influenced business outcomes, a few of which I will highlight on the next slide. Speed and agility only matter if you have stability. Our change volumes have increased 60% year-over-year, which means we are making many more frequent changes. Despite this increase, we have a 99.9% success rate at executing those changes. Let's discuss some real examples of how modernization has created value for the firm. In CCB, our Chase.com ecosystem continues to become more modern and offer more products to our customers. The migration of Chase.com to the public cloud was completed in the fourth quarter of 2022, with all customers now being served through AWS. Leveraging the public cloud, Chase.com delivers an average of 15 releases a week. As we launch new features for our customers, we have maintained stability despite a 22% increase in change volume. Also in CCB, we have launched Connected Commerce, an innovative product ecosystem that leverages APIs to offer our customers targeted products and services across their buying journey. You'll hear more about this from Allison Beer later. In CIB, we have developed a scalable modern transaction engine for processing global J.P. Morgan Payments. We are growing our capabilities, including the expansion of real-time payments, have been able to reduce our launch time from 18 months down to 3 months - 6 months. This is also our third-largest payments platform and soon to be the second largest. We have our markets regulatory reporting platform, a public cloud-hosted data warehouse operating in more than 15 locations, which provides global regulatory reporting across cash equity, futures, and options. This is a great example of the benefits of our strategy to run modern data platforms on the cloud. The platform is scalable to 2.5 billion trades per day versus 500 million when hosted in our data centers, with monthly running costs decreasing more than 50%. The third pillar of our strategy is unlocking the power of data and AI. The importance of this effort has never been more clear, with artificial intelligence appearing regularly in the headlines. We have made tremendous progress building what we believe is a competitive advantage for JPMorgan Chase. We have over 900 data scientists, 600 machine learning engineers, and about 1,000 people involved in data management. We also have a 200 person top-notch AI research team looking at the hardest problems in the new frontiers of finance. We were recently ranked number one on Evident AI's index, the first public benchmark of major banks on AI maturity, demonstrating the progress these teams have made. Last year, we committed to delivering $1 billion in business value by the end of 2023. We are close to realizing that goal ahead of schedule and are therefore increasing our target to one and $0.5 billion by the end of this year. This value is driven by more than 300 AI use cases in production today for risk, prospecting, marketing, customer experience, and fraud prevention. Last year, I highlighted trading and risk use cases. We continue to see great value from both. Today I'll highlight two other examples which are generating real revenue for the firm. In the retail space, AI is helping us offer more personalized products and experiences to our customers, such as credit card upgrades. Collectively, this work has delivered over $220 million in benefit in the last year alone. We aren't just focused on retail. We are also leveraging AI in sales to generate insights to deepen our relationship with clients across our lines of business, such as in the commercial bank, where AI is helping provide growth signals and product suggestions for bankers. These efforts delivered $100 million of benefit in 2022. Our ability to drive this level of value is driven not only by the sheer volume of data we possess, but also our modernization investments, which have enabled us to migrate large amounts of data to the public cloud and enhance the capabilities in our underlying data platforms. These platforms enable us to develop models faster with embedded governance. Demonstrating our investment discipline as we deploy AI across the firm, we are seeing strong returns and have increased our ROI 25% from 2021 to 2022, and we expect this to continue in the future. We couldn't discuss AI without mentioning GPT and large language models. We recognize the power and opportunity of these tools and are committed to exploring all the ways they can deliver value for the firm. We are actively configuring our environment and capabilities to enable them. In fact, we have a number of use cases leveraging GPT-4 and other open source models currently under testing and evaluation. We take the responsible use of AI very seriously, and we have an interdisciplinary team, including ethicists, data scientists, engineers, AI researchers, and risk and control professionals, helping us assess the risk and build appropriate controls to prevent unintended misuse, comply with regulation, and promote trust with our customers and communities. We know the industry is making remarkably fast progress. We have a strong view that successful AI is responsible AI. As Daniel mentioned earlier, cybersecurity is paramount to our company and our industry. Everything we do is underpinned by our commitment to protect our customers, clients in the firm, and we believe we are best in class. On the left, you can see we are accomplishing more with our cyber investment, expanding our capabilities, and holding expenses relatively flat. With the number of attempted attacks continue to increase. We have partnered with suppliers and proactively mitigated more than double the supplier vulnerabilities than the year before. We continue to grow our cybersecurity awareness program for our employees and our clients, sharing best practices and leading preparedness exercises. Our focus here does have tangible business value. Through automation and efficiency, we are freeing up more of our developers' time to focus on building best-in-class, secure products for our clients. We are continually evaluating our ecosystem and looking to leverage technology to improve our overall cybersecurity posture. We are proud of the ongoing partnership with policymakers and the U.S. government as we improve the underlying security of the overall financial services ecosystem. We are leading in security research and continuing to actively collaborate with NIST on what security looks like in the future and how we are prepared for quantum-safe encryption. Cybersecurity is fundamental across our company and strategic priorities. We are laser-focused internally and across the ecosystem in which we operate by securing our systems and protecting our data, our clients, and our customers. We've covered a lot today, let me summarize the key points for you to take away. Last year, we laid out our technology strategy to deliver business growth on a global scale. We have delivered across all of our pillars, and today we remain committed to our strategy. First, there are a number of examples across our businesses where we're building and deploying innovative new products and services on modern platforms. You will hear more about them throughout the day from our business CEOs. Second, we have made great progress with our modernization strategy. We are on target to achieve 100% adoption of our enterprise tool chain this year. We also continue to modernize our application portfolio, moving toward our target state of multi-vendor public cloud backed by modern strategic data centers. Our efforts have already yielded $0.5 billion in productivity and efficiency gains, and we are on track to deliver against our three-year goal of one and $0.5 billion. We continue to lead the industry in data and AI and are ahead of plan on the commitment we made last year to realize $1 billion in business value. With over 300 use cases in production and many more exciting ones in development, I am confident we will hit our new target of delivering $1.5 billion of value by the end of this year, demonstrating our leadership position in AI. I cannot overstate the importance we place on protecting the firm and our customers. Across all of our strategic priorities, maintaining the security of the firm has been consideration number one. In doing this, we have discovered new areas of opportunity, new partnerships, and principally, new value to the firm, the industry, and our communities. Technology is the foundation of current and future growth across all of our lines of business. You will hear this reiterated by my colleagues throughout the day. Our focus on disciplined investment has allowed us to protect our firm and grow our business while keeping our technology spend relative to revenue consistent at around 10%. With this proven strategy, JPMorgan Chase is well-positioned to continue leading in all of our businesses, backed by resilient, scalable, and innovative technology for years to come. Thank you. I can take a few questions now. All right. We have time for a couple questions. Mike Mayo. You can't laugh till I ask my question. Look, you said you have flat infrastructure costs with double the compute since 2009. You're gaining the tech savings as expected, the $500 million this year. You're ahead on the AI-driven savings. You retired 2,500 apps, and you're 38% on the cloud, up 8% year-over-year. Slide two says you're spending $1 billion more on tech. What are the related revenues? I know part of that is simply to keep the lights on. Part of that's to modernize, which you don't take for a few years, and some of that's for revenue. It'd be nice to equate that $1 billion of additional tech spend to some kind of current revenue figure or future revenue figure. Thank you. Yeah. I think you'll hear a lot of the businesses talk about how their technology investments. It's probably best, Mike, that they share those examples. When you look at the increase in $1 billion, keep in mind there's a couple things embedded in that. There's definitely investments in CCB, which you'll hear from Marianne and Jenn. They'll cover those in detail. Remember wage inflation. We went through a period of high tech demand. As I mentioned, I think we will absolutely. Attrition is very low. We will see that moderate over time. Remember business growth. Now, business growth comes in many forms. First of all, when we grow on modern platforms, we grow a lot more efficiently. I talked about that. The second thing to think about growth is we still need to support the business while we're growing onto the modern platform. That will help us grow even more efficiently over time. Third, just think about the technology we need as we build a new building, as we expand branches, and we continue to grow our business. When you look at business volume growth, those are the ways you can think about it. Again, I think since most of the increase with CCB, Jenn and Marianne, can do a better job explaining the value they're seeing for those investments. If I can just try one more way. If you think of investing along a J curve, you invest and it's a headwind, it's a headwind, and then it becomes a tailwind. Where do you see JPMorgan today? You, are you always at the bottom of that J curve? Look, I think we're definitely seeing our ability to offset. When you look at the three-year plan that we laid out, I feel very good with our— Remember, we're moving to modern data centers. You have duplicate or bubble costs while you're doing that. You have bubble costs while you're moving to the cloud. I think I feel really good about the upside and the continued delivery in that $1.5 billion that we laid out. I think we're at a great place with our framework around engineering productivity, continue to drive innovation. I also think there's great opportunities when you think about applying AI to the, even the software engineering process. I think we're in a great spot where we're continuously delivering, productivity, and we have new tools to continue to do that into the future that we're gonna continue to see our ability to create value while our business grows so that we can continue to scale efficiently. Chris, back there. Hi. I wonder if you could just discuss how you measure that business value. Is that saved costs versus what you would have had or incremental revenues or some combination of that? I'm sure that's like the holy grail of trying to measure the value of tech spend, right? Yeah. I think there's definitely a bucket of, as you've seen, we've continued to drive automation. You can continue to drive automation across a lot of fronts. One is certainly from an operations perspective or even having more intelligent interfaces, such as what we've continued to see as virtual assistants, almost the copilots as you go forward. One I would think about in the bucket of how do I drive automation around business processes and continued ways to be able to serve our customers in a more technologically advanced way. That's one. I think there's definitely revenue. I think Takis can talk about that. Marianne, Jenn will talk about, I think all of the business leaders you'll see today as they go through the presentations can talk about how those technology investments are both driving as we add new customers, being able to add them more cost effectively, or in some cases, creating new ways to generate revenue as the examples I shared with you in the AI section. It's a combination of both. Okay. maybe one last question. Betsy. Right there. Hi. Thanks. Lori, you mentioned about J.P. Morgan Payments and transaction engine. You had a couple of comments in there that were interesting, highlighting that I think the volumes are the third largest, but soon to be in the second largest. Could you give us a little more color and context around those statements? Yeah, I think it aligns to what Takis laid out last year. It's where we are in the cycle of our payments transformation. It's the third largest because we continue to migrate to that strategic platform. The team has a good plan that goes in through the next year to be able to continue to migrate those workloads. We shut down those legacy applications, that platform continues to grow. It's a little bit of a statement around where it is in the modernization journey of the underlying ecosystem for payments, and it's very much aligned to what Takis had laid out last year in terms of how we're delivering. Okay. All right. Thank you. Welcome to the stage, Jenn Piepszak, Co-CEO, Consumer and Community Banking. Okay. Good morning, everyone. Marianne and I are happy to be back to talk to you about the CCB franchise and thrilled to be joined by three members of our leadership team, Jenn Roberts, Ben Walter, and Allison Beer. A lot of what you'll hear will sound familiar to last year, that's intentional. There will, of course, be one exception, First Republic, which we'll come back to at the end. Just know that everything we're about to go through excludes the impact of the acquisition. We'll start with our strategic priorities and progress against them and review our financial performance and outlook. Then Jenn, Ben, and Allison will cover their lines of business in more detail, and Marianne and I will come back at the end and touch on First Republic before Q&A. Our strategic priorities are consistent from last year. They remain the true north for the business and guide how we make decisions. Everything starts with the customer. We're focused on our strategy to grow, engage, and deepen customer relationships by delivering products and services they love and expanding our distribution. We enable this strategy by investing in data and technology, maintaining a strong risk and controls environment, and cultivating the best talent. Getting all of this right has allowed us to deliver best-in-class financial performance over time, and we're confident that will continue. Let's take a look at how we're doing against our priorities. We made a lot of commitments on this stage last year. We hold ourselves accountable for these, and we're proud to share that we've delivered. I'll touch on just a few examples. In 2022, we opened 114 branches and added more than 240 business relationship managers and 300 wealth management advisors. As we previewed last year, we launched new products in wealth management and card to better serve the needs of our customer segments. We also continued to make progress on our data and technology agenda. We ended 2022 with nearly 30% of our data in the public cloud, staying on track to meet our commitment of 50% by the end of this year. We've leveraged AI and ML models across the organization on initiatives like fraud and personalization that generated more than $500 million in value. We also delivered strong financial results in 2022, generating a 29% return on equity on net income of nearly $15 billion. Diving deeper into the numbers, we always start with customer growth, the catalyst for the franchise. Over the last 3 years, we have grown our customer base by 8%. We now serve nearly 80 million consumers and nearly 6 million small businesses. We remain the number one consumer bank, business bank, and card franchise in the industry and have extended our leadership positions, including a 60 basis point increase in retail deposit share and over a 70 basis point increase in card OS share in just the last year. What sometimes gets lost in our overall growth story is that customers are also choosing us for more financial products and services. Since 2019, we grew multi-line of business relationships by about 20%, more than twice the rates of overall customer growth, and these deeper relationships are stickier and more profitable for the firm. Part of the reason why we're able to grow and deepen relationships is that we continue to engage customers in the channel of their choice. You're already well aware of the facts on this page. We are the number one digital bank with more than 63 million active users. We're the first retail bank with branches in all lower 48 states. Our true differentiator is how our channels come together to complement each other, to serve customer needs. It's not a binary choice between branch and digital. Most of our banking customers engage with both. We continue to build omni-channel experiences like Wealth Plan, which I talked about last year. Here, customers can start a plan in the Chase mobile app and finish it with an advisor in a branch. Beyond that, our channels cast halo effects on each other as we see higher digital account production in markets where we have a branch presence. We have achieved record high satisfaction across these channels by focusing on delivering experiences our customers love. While we're proud of this, we're never satisfied and recognize there are always opportunities to do more for our customers. Part of how we do that is investing in growth businesses. You heard a lot from us last year about our strategy for wealth management and Connected Commerce, and we're making real progress. In wealth, we're continuing to grow relationships by scaling our advisor base and marching towards 6,000 advisors in the next few years. In commerce, we're continuing to drive more travel volume through our platform, enabled by our acquisitions of cxLoyalty and Frosch. We didn't spend much time on business banking last year. While this is a growth business, it's notable that we're already number one in primary bank share. You'll hear more from Ben about how we're offering solutions to make it easier for our clients to start, run, and grow their businesses. Across these strategies, we are benefiting from our scale and highly engaged customer base. We're uniquely positioned to deliver on this strategy given the tremendous franchise value from operating our lines of business within CCB and the broader firm. We are the stewards of a franchise with competitive moats that have been cultivated for years. Here's how we think about them. First, our world-class brand. This enables us to drive consideration for prospects when entering new markets, helps us earn and build trust in our communities, and keeps our customers loyal. Second, our scale. This creates unmatched capacity to invest through cycles while delivering industry-leading returns. Finally, our distribution. This gives us the unique ability to efficiently grow our customer base and serve more of their needs over time. On the right, this franchise value extends across JPMorgan Chase. We leverage the firm's world-class capabilities, including AWM's platform to power our wealth management business, and we operate our branch network as a storefront for the entire firm, with about half of commercial banking and private bank clients visiting our branches. Lastly, being part of JPMorgan Chase enables us to serve customers wherever they are in their life cycle. Whether you're a business or an individual, as we always say, "You just can't outgrow us." The value of our franchise is clearly greater than the sum of its parts. Now I'll pivot to our financial performance. 2022 was a strong year for CCB, with pre-tax income at nearly $21 billion, up 16% year-over-year. When you double-click into the core drivers of our business, average deposits were up 10%, loans were up 1%, and card outstandings were up 16% and are now above 2019 levels. As you can see on the page, the overall growth of our franchise since 2019 has enabled us to generate the same revenue, $55 billion, on a much lower deposit margin. Let's take a look at revenue. Starting with our revenue walk from 2021 to 2022, a positive macro rate impact won't surprise anyone, and I'll come back to this shortly. Volume-related growth of nearly $2 billion allowed us to overcome overdraft changes and margin compression, that, coupled with the macro rate I just mentioned, generated healthy growth from $50 billion-$55 billion in revenue. As you can see on the right, our outlook for NII, excuse me, is about $50 billion, compared to $40 billion last year. It's important to note that while we know we're still benefiting from reprice lags, we have assumed some level of savings reprice in our outlook. If and when we reprice savings, we're confident we can compete on customer experience and convenience, not just on price. Back to macro rate. For many years, we've shown you big red bars and big green bars, and sometimes that overshadows our core revenue growth. We thought it would be instructive to take a longer-term view. This is our revenue walk over 10 years. Within any given year, it's easy to lose the forest for the trees, it's important to remember we invest for the long term, we see those investments pay off in volume and growth over time. This approach has enabled us to deliver my favorite big green bar, representing $13 billion in volume-driven revenue growth since 2012. Let's talk about one of our core revenue drivers, deposits. What we're looking at here is a walk of deposit balances from 1Q22 to 1Q23, broken out by customer growth, customer activity, in the last two bars, the net of yield-seeking outflows and those flows that we've captured internally. Going from left to right, in any given year, customer growth coupled with existing customer activity is a net positive, 2022 was no exception. As expected, we have observed an increase in yield-seeking behaviors, we were able to retain 60% of yield-seeking flows internally and generated net new money through our CDs and wealth management products. Beyond that, for customers who do outflow to online banks, which are still only about 5% of our customer base, we have observed that they have no change in primary bank behavior. Last year, I told you we had two priorities for deposits in a rising rate environment. One, retaining primary bank relationships, and two, profitably capturing money in motion. As I stand here today, we've done both. Now on expenses. Let's start with our 2022 expense base was $31 billion, which was just under what we told you last year, driven by slightly lower investment spend. Going from 2022 to our 2023 outlook, we're up about $2 billion. In that walk, you'll see that volume and revenue-related expenses are roughly flat with the drivers listed here on the page. Moving to the right, structural expenses are up roughly $1 billion, driven by normalized staffing levels and wage inflation, which we're seeing across expense categories. Investments are up $700 million, which Mariann e will cover in a few minutes. Before we do that, just a couple more points on structural and volume-related expenses. On the left-hand side, you can see that in total, they're growing a modest 3% per year, largely due to productivity and efficiencies across operations, fraud, and the branch network. On the right-hand side, you can see how we're generating these efficiencies. We're leveraging analytics to reduce fraud rates and improve banker productivity. We've also focused on optimizing our branch network, extending our reach to 30% more customers and enabling them to do more digitally. As a result, as you can see on the page, we're overcoming the impacts of wage inflation and reducing the cost per account in both of those categories. With that, I'll turn it over to Maria nne. Okay, thanks, Jenn. I'm gonna pick up with our third expense category, investments. Starting with 2022, we spent $7.1 billion, but I'll remind you that at Investor Day last year, we guided close to $7.5 billion. Our investments will always be a function of the market opportunity, and we're disciplined in how we spend every dollar. In any year, we may spend a little more or a little less than we guide to. Before we look forward, on the right-hand side of the page is an update on return expectations from last year. We are on track to ahead on all categories. Back to the chart. Our outlook for 2023 is a little less than $8 billion. I'll come back to technology and product on the next page. On distribution, we expect to invest more this year in both marketing and our branch network. In marketing, most of the growth is in very profitable card and consumer bank account acquisition and activation, which has been strong through the second half of 2022, and we're off to a great start in 2023. Allison will review card marketing later, and in the consumer bank, we've been capitalizing on strong ROIs given the interest rate environment. Jennifer Roberts will review our branch strategy later. We've added 650 new branches since 2017, and we're excited and have complete conviction that this investment meaningfully contributes to deposit share outperformance and creates a halo effect for all of our businesses. Moving up to our growth businesses. We've added more than 1,400 advisors in wealth management since 2017, including an incremental 300 year-over-year on our journey, as Jenn said, to 6,000 advisors over the next few years. Finally, Connected Commerce. Here you can see that our investment expense has actually decreased meaningfully year-on-year as profitable travel-related OpEx rolls into non-investment expense. Moving on to technology and product. We expect to spend about $3 billion here this year, up $400 million year-on-year. Including run the bank, our total technology spend is a bit under $6 billion. For context, while that's clearly less than 10% of revenue this year, it's also roughly 10% of revenue normalizing for a through the cycle deposit margin. Overall, while technology investment has been an area of growth over the last few years, we feel well-positioned with respect to total tech spend across CCB. On modernization, we're halfway through the migration of applications out of legacy data centers, and we expect to break the back of these migrations by the end of next year. Moving up on product development, we continue to see significant opportunity to invest across our channels, our products, and our platforms with strong business cases and to deliver a better customer experience. Examples of these investments include the introduction of models that predict why a customer is calling us, freeing up our service specialists to handle more complex needs. Launching new products, including Wealth Plan, Pay in 4, ChaseTravel.com, all of which we mentioned last year, and many, many more. As well as re-platforming our entire card account opening process, concluding a multi-year journey, improving the experience, the page performance, and enhancing our ability to experiment. At the top of the bar, the final piece here is the infrastructure to ensure that we're maximizing the business value that the engineers can deliver by surrounding them in a quad structure, including design, product, and data specialists. Bringing this all together, while we have increased our investment spend significantly over the last several years, we feel we've reached an inflection point as our level of investment today feels more right-sized to the opportunity and investments from years past are paying off, driving revenue growth. Looking forward, we expect investment spend growth to be more modest, in line with normalized revenue growth, consistent with a profitable growing franchise and delivering positive operating leverage and an industry-leading efficiency ratio when normalizing for a through-the-cycle deposit margin. Moving on to credit, starting with the health of the consumer through the lens of our data. The next two pages analyze deposit balances, spend, and borrowing behaviors since the pandemic. We've looked at this through our total customer base, including new accounts added, as well as looking at a stable cohort, being those customers who were customers at the beginning of the pandemic and still are now. Truth be told, there's not a lot of new news. Balances and operating cash buffers remain significantly above pre-pandemic levels, and that's true across income segments. Inflation's been a theme, but given the strength of the labor market, wages have cumulatively kept up in our base, driven by lower income segments. Spend trends remain solid, true for credit and debit, and both discretionary and non-discretionary spend. Focusing in the middle chart on credit card spend for a stable cohort. As expected, growth has decelerated back to pre-pandemic levels. People are trading down and getting a little less for their money. Card revolve is a tale of two cities. Those customers who continued to revolve throughout the pandemic have normalized but do not appear over-levered. However, overall revolve is not yet fully normalized, as less people are revolving given excess cash positions. This will be a tailwind for card loan growth into 2024. In aggregate, our data supports a resilient consumer. Metrics are normalizing but not deteriorating, nothing is flashing amber or red at this point, which is a great segue to our credit risk performance. Throughout 2022, in both card and auto, our delinquencies and net credit losses remained below pre-pandemic levels. In the charts, you can see that we compare favorably to the industry, reflecting our prudent risk appetite. On the left of this page, across asset classes, you can see the impact of structural de-risking since the global financial crisis. Our balance sheet is materially different today. In card, yes the credit quality of our portfolio is a bit better, but more importantly, we've reshaped the nature of our customer relationships to be much more highly spend-engaged. You can see that our outstandings from balance parkers, those are customers who revolve but are not spend active, is only 5% now, compared to 20% back in 2012. In auto, the credit quality of the portfolio is also a little better, and we've kept a tight rein on layered risks. In home lending, both average FICO and CLTVs continue to trend favorably. On the right side, we focus in on originations during the pandemic. As we previously articulated, we didn't loosen our credit standards or expand our buy box, leaning into artificially low risk metrics and inflated credit scores. Today, while it is fair to say that we are surgically tightening, it's not yet broad-based. Moving on to our outlook for charge-offs. In card, we expect losses to come in around 260 basis points for this year, in line with guidance, and we still expect to exit 2023 close to pre-pandemic levels. In 2024 and beyond, obviously macro dependent, we would anyway expect loss rates to move incrementally higher year after year. You may recall that we underwrite new vintages with normalized loss rates of about 4.5%. As those newer vintages season and become a larger percentage of the portfolio, we will see higher loss rates, but with strong risk-adjusted returns. In auto, portfolio delinquencies have now fully normalized as of April. We're expecting losses for this year of about 50 basis points, but this reflects a change in portfolio mix away from dealer commercial services and towards retail. Within retail, a change in mix towards used cars that do have higher loss rates, but again, we're getting paid properly for that risk. In home lending, expect net charge-offs to be ±0, as gross charge-offs remain modest, offset by continued recoveries. Lastly, in business banking, losses at approximately 60 basis points include overdrafts that are a function of the strength of our new account production, but with overdraft per account remaining relatively flat. Wrapping up credit with a stress analysis and starting with card. Unemployment is the most critical driver of card loss forecasting. In the graph in blue, our house central case is for a mild recession, with unemployment peaking at 5.1% in the third quarter of 2024. In green, you can see a moderate recession scenario with unemployment peaking at 7.1%. Relative to the central case, which informs our baseline expectations, the moderate recession scenario results in an average loss rate that's about 130 basis points higher or about $3.3 billion in cumulative losses over two years incrementally. Just to comment on reserves. As Jeremy showed, we are already reserved above the central case, given the range of scenarios and associated weightings in our CECL methodology. If a moderate recession does play out, it would be reasonable to expect incremental reserve builds of upwards of $2 billion over a few quarters on top of reserves driven by balance growth that we assume are in your models. In-home lending. Changes in HPI are the largest driver of losses, and our portfolio is well positioned to handle HPI shocks, with 95% of the portfolio below an 80% CLTV. In the middle of the page, while home prices remain elevated, the central case is already for double-digit declines in HPI in several key markets. On the right in that case, we still expect net losses to be relatively modest, less than $100 million over two years. A moderate recession scenario with a corresponding HPI shock of 15% would result in less than $300 million in losses over two years. Wrapping up the CCB overview with a couple of final pages. We talk about the business through cycles because that's how we run the business. We invest for the long term. We don't get distracted by the weather or moments in time, which can be volatile, lead to short-term behaviors that ultimately destroy value. In a strategy discussion like this one, you will take away an optimistic tone from us, which may feel a bit out of line relative to the elevated level of uncertainty in the near term and macro factors that will likely put some pressure on short-term returns. We fully recognize that at this point in the cycle, we are still benefiting from reprice lags. We know that First Republic aside, the outlook for deposits would be modestly down, and we're expecting there to be a mild recession, but with appreciable downside risks. All of these may cause our ROE over the next couple of years to be below our 25% plus target. Ever the glass half full, I'll remind you that looking backwards and including this year, we will have made a serious down payment to achieving 25% + through the cycle. Most importantly, we're confident in our strategies. We believe we're making good decisions and investing in the right things to deliver great outcomes for our customers and strong financial performance through the cycle. In almost any scenario, the weather would be unlikely to change much about our strategy or what we're doing. In conclusion, I'd leave you with four key messages. First, while we are not immune to changes in the macro environment in any year, this 10-year trend shows that over time, our business performance is strongly correlated to consistent growth in core drivers, notably customers. Jenn shared with you our customer growth metrics and the proof of the pudding is in the eating. We've extended our leadership positions across our core businesses over the last decade. Second, the strength and diversification of our franchise creates resiliency and consistency of returns through the cycle. We've delivered a 6% CAGR in pre-tax income for the last decade. Third, we execute with discipline. We prioritize the use of capital to deepen relationships with our core customers and focus on risk-adjusted returns over growth or market share. We hold ourselves accountable for delivering on our commitments. Finally, as Jenn said, our capacity for investment is unmatched. Our competitors have not and cannot invest at the levels that we do. These investments represent significant future operating leverage for years to come. Importantly, we invest without sacrificing strong financial performance. With that, I'm going to hand over to the other Jenn to go into more detail about the exciting opportunities in the consumer bank. Thank you, Marianne. Today, I'll cover consumer banking and the branch network. Our strategy is consistent with what we told you last year. This year, I'll focus on the impact of this strategy. We are the number one retail bank based on deposits and have extended our lead 60 basis points year-over-year and maintain primary bank relationships. Looking ahead, we'll focus on extending our leadership position by strengthening and tailoring our customer value propositions. On our branch network, we have increased our deposit share year-over-year in 47 of the top 50 deposit markets, and we are now number one in 11 of those, including the three largest, New York, Chicago, and for the first time last year, L.A. Looking ahead here, we'll optimize and extend our network to reach more communities since we know banking is local. Starting with consumer banking. We now serve over 40 million customers, up 14% since 2019. In 2022, we added 1.6 million net checking accounts. This year, our momentum has accelerated. Through April, we've added over 0.6 million net accounts, indicating that our strong value proposition is attractive across economic cycles. Account production is driven by our brand and our omni-channel value proposition. In addition, marketing and branch expansion are helping to drive our acceleration. Our continued focus on customer growth has allowed us to grow consumer banking deposits by over $300 billion in the last three years, more than any other bank. We have significantly outperformed since 2019, with 700 basis points higher deposit growth versus the industry and nearly double other large banks. We've been growing share for a decade, but our share gain has accelerated over the past three years, resulting in over 180 basis points of deposit share capture. We know there are a lot of different ways to look at it, but based on the common industry reading of FDIC data or any approach that is uniformly applied, we are the clear market leader. While we closely monitor the competition, we obsess over our customer, and we remain focused on capturing primary bank relationships, which means we are our customers' day-to-day operating account and at the center of their financial lives. 80% of our customers are primary banks, and they are satisfied with record customer experience across both the branch and digital channels, loyal with over a 95% retention rate, and they are engaged across channels. Our share gains over time are an outcome of offering products and services our customers love, which drives primary bank relationships. In a high rate environment, that's an important place to start. We didn't lose primary bank relationships in the last cycle, and as Jenn shared earlier, we aren't losing them this time either. Our customers show us how much they value our products and services through strong engagement. For example, they are paying with Chase more often with debit remaining the highest share of transactions. At the same time, our customers are shifting away from cash and checks toward digital payments, including Zelle, with 26 million active users. 85% of our customers are using our digital channels, and it's not just transactions. Nearly half engage with services that help them meet their financial goals. Our leading omni-channel value proposition with the number one digital banking platform and the number one branch network, together with the trust and security we provide, is why customers choose Chase. That extends to products and services that meet a wide range of needs. Our consumer banking customers play a critical role. They represent nearly half of branded credit card customers and the majority of relationships and volumes across other lines of business. We've seen multiple benefits when a customer adopts a new product with Chase. It starts with a lower cost to acquire. For example, in home lending, a pure prospect costs over 2 x more to acquire versus a consumer banking customer. We also see increased relationship value across CCB. It's intuitive but powerful. For example, we see 2 x higher revenue when a customer banks and invests with us. There are benefits back to consumer banking. For example, when a customer funds a jumbo purchase mortgage through Chase, we see a 30% increase in balances versus those who fund elsewhere. Our focus on acquiring and deepening consumer banking relationships generates tremendous franchise value. Looking ahead, we'll continue to strengthen our value proposition to meet the needs of customers across segments. We're making great progress. Over the last three years, we've grown the number of low-cost checking accounts geared toward younger and lower income segments by 40%. We've also grown our core mass market accounts, which represent 75% of our total portfolio by 10%. We have grown the number of affluent relationships who bank and invest with us by 30%. We are not resting on our laurels. We see so much opportunity across segments. When we get this right, every customer will be able to say, "Chase is the bank for me," which we know is critical in becoming the bank for all. Now, turning to our branch network, which is a critical component of our omni-channel value proposition. Our strategy has been distinctive relative to our peers. We are the only major bank with significant investments in new branches, adding more than 650 branches over the last five years, including delivering on our commitment to build 400 branches in 25 new states. At the same time, we have consolidated branches at a similar pace to our peers in response to shifts in customer behavior and have increased the reach of each mature branch to serve 30% more customers as a result. This strategy is a key driver of the performance you see on the right, with $227 million in deposits per branch, nearly 40% higher than our large bank peers. To provide some color on these investments, branches that we've built in the last 10 years are already contributing meaningfully to our performance. They've driven nearly $85 billion in deposit growth since 2017 and are breaking even within four years. This is just a down payment on the future opportunity. We have $160 billion in deposit upside as our younger branches mature. These branches are in our existing run rate, we see significant upside from here. We have less than 5% branch share in 19 of the top 50 markets, including three of the top 10, D.C., Boston, and Philadelphia. These investments do create a temporary drag on our overhead ratio, but as Maria nne mentioned last year, are a coiled spring of operating leverage once mature. They are long-term but predictable. We have a proven model to execute regardless of where we start. I'll take you through three markets where we've invested in new branches which drove deposit share gains over time. First, in Los Angeles, where we had significant presence but were punching below our weight in 2012. We built more than 100 new branches, fueling $86 billion in deposit growth and nearly 9 percentage points of share, which as I mentioned earlier, earned us the number one spot for the first time last year. Atlanta, where we've gained almost 5 percentage points of share from a low base. We've accomplished this over a 10-year period because we had the patience to find the right locations to build 35 new branches and reposition our network to a more prominent real estate. Finally, Boston, an expansion market we entered in late 2018 and have since invested in 42 new builds and are gaining traction. Our recent acquisition of First Republic will help increase our position in this market. Looking ahead, as our branch investments in Boston and other expansion markets mature, we are confident that we can grow deposit share in line with or better than branch share over time. We have demonstrated our ability to grow organically, and we are extending our proven model to introduce new branches and grow deposits across our network, where we start with a strong foundation, with a world-class brand and a number one card franchise. We often talk about the opportunity in Boston, D.C., and Philly because it's huge, but our opportunity extends to many more markets. We are expanding across cities like Minneapolis, Nashville, and Charlotte, to name a few. How do we do it? Let's let the team tell you. At Chase, our network is our competitive advantage. Operating in 48 states with more than 4,800 branches sets us apart and ensures our customers can bank when and where they want to. Do you wanna know how we do it? Here's how we build a branch. Before our first customer walks through the doors, we work with a literal village of experts, blending heart and science to find the perfect location to serve our customers and build trust in our communities. Our network is analytics-driven, hyperlocal, and a testament to our mission to be trusted in communities across the country. 36 months before a branch opens, our village of experts select sites using our unique data and analytics to ensure we are placing a branch where we can profitably serve a community. We have a robust process, inclusive of the market opportunity, predicted sales, retail traffic, population growth, and community impacts. Real estate is all about location, location. The history, experience, and expertise we have and the impact of location to our success is unparalleled. That's why we involve our local teams in our next step. This hyperlocal approach ensures that across our network, we find the best locations, so we have the right branches in the right communities serving the needs of our customers. As you can see, we're very intentional about where we put our branches, because meeting our clients where they are is important, not only to our bottom line, but also to the communities we are building trust with. After we find locations and receive approvals, we start building. What brings our branches to life is our people. While our branch is being built, local leaders are out recruiting top talent from the community to be the next face of Chase. Then we open. 36 months later, our team opens the doors and celebrates our newest Chase branch in their community. The work of our teams is outstanding, and we've made great strides since we started expanding our network in 2018. So far, we've opened 650 new builds across the network, including 425 new states. A quarter of these branches are in LMI neighborhoods. We've hired 4,700 employees to staff our new branches, and 70% of them are diverse. We've also supported diverse suppliers with a spend of over $100 million. Now we cover 80% of the U.S., up from 60%. The best part, we're just getting started. A new Chase branch just might be coming to a community near you soon. You've met some of the leaders representing the hundreds of employees it takes to deliver over 100 branches each year. Our presence across our 48 state network and the opportunity in many markets gives us the privilege of patience to select the right real estate in the right location to serve the community. While the value of these branches is clear, the role that they play continues to evolve. Customer adoption of self-serve and digital channels drove everyday branch transactions down by 25% and reduced our total head count in our legacy network by 10% since 2019. At the same time, about 2/3 of our customers visited a branch last year. This is consistent across generations as they seek advice or help with more complex transactions. Our bankers now have more capacity and have become more effective in serving our customers' needs, driving a 20% increase in productivity relative to 2019. We have conviction that people need people, and our branch team of experts is there to help. Our team of experts model is also distinctive, and the results are hard to replicate. As you can see on the page, our bankers and branches drive direct production in each of our businesses. They also drive acquisition across channels and lines of business. For example, 6 x higher digital deposit production in mature markets. Branches also serve as an important talent pipeline across the firm. About 50% of those business relationship managers and wealth management advisors come from other branch roles, these internal hires hit the ground running, given how well they know our unique culture and operating model. The aggregate value of this ecosystem is tremendous. Last year, our branches directly supported over $30 billion in CCB revenue. Beyond CCB, as Jenn shared earlier, our branches serve as the storefront for JPMorgan Chase. We have a saying across our company, "Everybody benefits from the branches." Looking ahead, our goal remains having the right branches in more communities, serving the financial needs of our customers. We've already made great progress toward this goal. Since 2017, we've increased the share of U.S. consumers in our footprint from 60% to 80% at the market level. Banking is local, we have opportunities to serve more communities. We are targeting covering 70% of the U.S. population within a 10-minute drive of our branches, up from 60% today. Which means you will see us build more branches than we close, resulting in a modestly larger branch network over time. As we saw in the video, our approach to expansion is deeply analytical. We are confident that each incremental branch will positively contribute to our bottom line. Our customers value being able to bank when and where they want, whether with a banker in the branch or in our digital channels. We have embraced their pre-preferences through significant investments in both. It's a local game, and it's a long game, and we have a proven model to drive profitable deposit growth over time. With that, I'll pass it on to Ben to talk about business banking. Okay. Thanks, Jenn. Good morning, everyone. Music still goes. Everyone loves a good small business story. Here at Chase, we're proud to partner with nearly 6 million small businesses. I'm pleased to share our part in their stories. Before I get into the details of our own franchise, I'd like to say a few words about the health of the broader small business ecosystem. As you likely know, a combination of government stimulus, changing employment dynamics, and a wide range of other factors led to a record business formation during the early days of the pandemic. Many thought that growth was temporary, but it's proven to have staying power, with starts today still well above pre-pandemic levels. There are now over 40 million small businesses in America, a new record high. With respect to their health, the story looks largely like what Maryanne shared in consumer. Optimism is low by historic standards. Unsurprisingly, inflation is the top concern among small business owners. It's hit them hard. We see reason for a balanced view. Our clients' cash buffers remain elevated, and they've so far largely been able to absorb the inflationary pressures. As a result, their delinquency rates, while they are normalizing, are still below typical levels. As in consumer credit, we didn't expand our credit box during this period of benign losses, so we can continue to support our clients through the cycle. We support those clients with the full breadth of our capabilities as a firm, allowing us to serve them well at any stage of their life cycle. That often starts with our consumer franchise, where many of our existing consumer bank customers come to us when they decide to start a business. Here in CCB, we're optimized to serve them until they hit the lower middle market or about $20 million in revenue. After which they might transition to the commercial bank. For the next few minutes, I'll share how we serve our clients across Chase for Business, which is the umbrella brand for our business banking, small business card, and small business payments offerings. These businesses are operating at scale, they're growing. We're the market-leading primary bank. We're number two in small business card spend. In a fragmented market, we're the number one payment services provider for our own Chase business banking clients. Banking, which includes deposits, cash management, and lending, is the anchor for our small business relationships. That's where I'll focus. You'll hear next from Allison about our card business, and later today from Takis about our broader payments franchise. In business banking, the clients we serve are as diverse as the 40 million and growing small businesses in America. We serve the full range of sizes, industries, geographies, and lifecycle stages. We help these businesses start, run, and grow all under one roof. 2/3 of our client base comes from the consumer bank, often starting from $1. Many of these clients grow with us over time. In fact, about a third of our larger clients today were small just two years ago. When these clients grow with us, they become large clients that we don't have to win from competitors. When they grow past that $20 million threshold, we can help transfer them into the commercial bank as their needs become more complex and bespoke. We're winning across that entire ecosystem. As I said, we're the number one primary bank in the U.S. We've grown our share of the market by 300 basis points since 2012. This growth in primary bank share comes alongside tremendous growth in the business overall. Even with elevated business formation, we've captured more than our fair share, and we grew our client base by 30% from the end of 2019 to the end of 2022, and nearly doubled deposits over that same time period. While many small businesses are beginning to spend down the cash buffers they built up during the pandemic, our deposit balances have stayed relatively stable into the first quarter of this year, driven by both new account growth and deposit inflows from broader market disruption even before our recent acquisition of First Republic. These small business accounts have strong economics for the firm. They're high margin and they're sticky. Because most small business accounts are used to manage working capital, 80% of balances are held in non-interest bearing checking accounts, and many of those deposits stay with us through the rate cycle because clients are using them to run their businesses. That's why that 80% has been fairly consistent over time. Small business owners see the value of our operating account. They also drive operating leverage for us. Average balances are 3x higher for business accounts than they are for consumer accounts. The key to unlocking all this economic value is becoming a business's primary bank. While many small businesses do maintain multiple business banking relationships, roughly 2/3 of our clients use us for their primary operating account. These clients have higher satisfaction, higher retention, higher balances, and they're more likely to deepen into other products. That's why growing primary share is our North Star. We have a tried and tested strategy to do that. First, we offer a complete set of financial products and services for all small businesses. We build products that are transparent, simple to understand, tailored to our segments, and integral to our clients' operations. Second, we engage customers through every available channel, whether digital or human. We work hard to make each channel independently best in class, then we put them together to create integrated omni-channel experiences that are hard to replicate. I'll walk you through both components, but I'll start with our products and services. On the banking side, we have a full suite of deposit and cash management products for clients of all sizes, and we continue to improve them. For example, later this year, we'll embed invoicing capabilities directly into our core account functionality, so clients can collect revenue right from their banking experience. In credit, we offer a full suite of products to help customers access the capital they need to grow. Access to credit is a core business need that also benefits our deposit relationships. Clients who have both deposits and lending have 4 x higher balances and are 10 points more likely to be primary with us than clients who have deposits alone. We're innovating to make it even easier. We've modernized our credit engine and rebuilt our small dollar lending origination process to deliver a fast digital experience that can be completed in as little as 5 minutes with funds available in as little as 24 hours. Finally, we offer financial products that are immediately adjacent to core banking needs. This includes our integrated merchant services business, as well as products like Everyday 401(k), which we offer in partnership with wealth management to help small business owners and their employees plan for retirement. In addition to these products, we're launching payroll embedded into the banking experience to make it easier for our customers to pay their valuable employees, and it ingrains Chase even deeper into our clients' day-to-day operations. In short, our product suite is broad and deep. It evolves as our clients' needs change and our capabilities grow, and it's designed to drive customer engagement and in turn, bank primacy. Products are only half the equation. We also drive bank primacy by how we engage our clients. To be sure, engaging businesses is inherently more complex than engaging consumers, but our channel capabilities are up to the task, and they put us at the center of our clients' operations. 80% of our clients are digitally active, which has grown rapidly over the past few years, and we're capitalizing on the channel through value-added capabilities, like making credit journey work for small business, and by leveraging our Connected Commerce ecosystem to deliver enhanced merchant offers. Even as digital has grown, 80% of our clients visited a branch last year. Hundreds of thousands of our larger clients are assigned to our 2,300 relationship managers, and they have regular meetings to discuss their business goals and performance. Proof positive that good advice never goes out of style. We plan to hire nearly 1,000 more relationship managers by 2025. Clients covered by a relationship manager have better than 95% retention, 10 points higher cross-product ownership, and an NPS of over 70, breaking the record high satisfaction we told you about last year. While we deliver all of this at scale, we know that small business is ultimately local. That's why our relationship managers and our branches operate locally. They're active in their communities, engaging with our clients personally, focused on helping them achieve their business goals. When we combine the strength of our channels with our full service product suite, we earn the right to be our client's primary bank, and we drive attractive value for the firm. We also drive value for the rest of CCB, and indeed for the entire firm. By now, this wheel should look very familiar. Business banking alone contributes to over 20% of CCB's deposit base. When you include their personal resources as well, our clients hold nearly 40% of CCB deposits. Our client base is also a strong source of acquisitions for our card business. We've grown our base of clients with both products by 50% since 2019, 20 points faster than total client growth. On the J.P. Morgan side of the house, our clients drive higher than average wallet share for the private bank. As I highlighted earlier, every year, we transfer hundreds of our largest businesses to Commercial Banking. Similar to what you heard from my colleagues, we get inbound benefits from the entire ecosystem in the form of lower cost acquisitions and attractive deepening opportunities. That's business banking. A rapidly growing addressable market, industry-leading market share, attractive unit economics, and a strong right to win that leverages the power of the entire JPMC franchise, but delivers it at a local level. Don't take my word for it. Let's hear from some of our own clients about why they choose to partner with Chase to support their businesses. Number one, Chase has been with us since the start. We've always loved Chase's responsiveness and engagement with us. We did not get the support at our old bank that we've gotten from Chase. We feel that we have an entire team supporting us and our business. Chase assigned a relationship manager with us early on, who's been with us since the company's been moving. They just built a branch. Right down the street. Two minutes away. It's 800, no, it's 900 feet. Having that small town local feel is something that Chase has been able to give to us. They knew who we were. I mean, it's Chase, they're a huge bank. They knew who we were. It's nice to know that I'm being thought of, even though I'm this small guy in Portland, Maine. We don't feel like we're lost. I mean, we feel like we're a significant part of their operation. The online portal is so easy to use. To be honest, most the biggest thing is my life's easier because of the online banking. The tools and just the things that they have at their fingertips that we were not exposed to. I can run my business without a computer, financially, right? Which is kinda cool. Products customers love, powerful digital tools, and trusted expert advice all delivered one client at a time. That's our superpower, and that's how we support America's small businesses as they grow. With that, I'll hand it over to my partner, Allison to cover card and Connected Commerce. Thank you, Ben. Good morning, everyone. It's such a pleasure to be here to talk to you about card and Connected Commerce. In our card franchise, we continue to see strong momentum. Total active accounts are up 21% since 2019 to 52 million. That's a result of two things. Record retention at 98% last year, as well as strong account production, up 20% since 2019. As you can see on the page, we also drove a 40% increase in card sales during that period. While average balances for the year were $163 billion, we exit the first quarter of this year at $180 billion, up 18% year-over-year. Card revenue is roughly flat over the period, driven by higher contra revenue associated with strong account growth and the pullback of revolve during the pandemic. We also continue to see low charge-offs, so risk-adjusted revenue was $13.7 billion, up 19% since 2019. We've grown pre-tax income by roughly 10% over the period. All of this leads to a business that's delivered over 30% ROE ex- LLR in each of the last 4 years. This year, we expect this momentum to continue, and our current outlook is double-digit revenue growth on higher balances and revolve normalization. Turning to the overarching card strategy, this should look familiar because it's been consistent for several years. We are focused on extending our lead in spend and lend share, delivering best-in-class products and better serving customer segments. Our goal here is to reach 20% share of outstandings in the medium term. Once we have customers in our ecosystem, we drive more engagement with experiences that customers love. We'll talk more today about our two-sided platform and how we aim to deliver $30 billion in volume through Connected Commerce. Last, we create deeper relationships through best-in-class service across all of our points of interaction. Here our goal is a Net Promoter Score of 70 for the business because happier customers lead to better business outcomes now and for the long term. Let me break down each pillar. We deliver industry-leading credit card products that resonate across segments with spend-engaged customers. We've launched or refreshed 24 products since 2019, including Ink Business Premier, which launched last year, 3 new co-brand partners, and most recently, our new cards with Amazon. Keeping our products fresh and relevant enables us to stay ahead of the competition. It's also part of our risk management approach. When customers see the value in their product, they're more likely to pay their bill on time in order to keep using it. We invest in lifestyle benefits and experiences that differentiate our products. We've already opened three of our proprietary in-airport lounges, including Boston last week, and have two more openings later this year, with five more in the pipeline. Our products resonate across generations, and we're doing particularly well with Millennials and Gen Z. All of this product investment has led us to grow our market share in sales and outstandings in 2022 and to increase the gap to our nearest competition. With all of this success, you may be wondering, is there any more room for growth? The answer is yes. There are three key segments where we have a unique competitive advantage and outsized opportunity for growth. In Starter, where there are more than 25 million consumers, here we're doubling down on our real advantage, our consumer banking franchise and the associated deposit data. Later this year, you'll see that we're launching Freedom Rise, a product specifically targeted to this segment. Key to that strategy will be distribution through our branch network. There are more than 40 million small businesses across the U.S. As you heard from Ben, we're the number two card issuer in this segment. The number one competitor has roughly twice our share. We have real opportunity here to go after the segment with new products. Last year, as I said, we launched Ink Business Premier, so far, it's beating expectations by addressing the unique needs of larger small businesses. Finally, in affluent, there are more than $40 million consumers, we have relationships with many of them across the firm. We have an opportunity here to grow wallet share with these high-spending customers. We're investing heavily in unique assets across travel, dining, and shopping to meet the needs of this segment. I've just described how we focus on developing a best-in-class product lineup. Now I'll turn to card marketing. Here the focus is getting the right products into the right customer's hands and making our marketing dollars work harder for us to fuel our growth. Let's start by looking at how we ended 2022 versus the outlook we provided at last year's Investor Day. Total marketing spend on acquisitions was up $300 million from forecast due to strong customer demand for our products and a healthy market opportunity. 2019 was a strong year, the investments that we've made in data, model refinement, and a new acquisition platform made 2022 even better. Looking at the bottom right-hand side of the page, you can see that last year we generated 23% more new accounts than we did in 2019 compared to our forecast of 14%. We expect the 2022 vintage to perform at or better than prior projections across all key metrics, including revenue, which we expect to be at least 50% higher than the 2019 vintage. All of this performance wasn't unique to that 2022 vintage. You can see on the top right-hand side of the page that our investments in product benefits and rewards are driving increased engagement, spend, and fee revenue across the entire portfolio. Looking ahead, we expect new account production to remain strong and market dependent. We'll invest in strategic opportunities that add shareholder value. I've told you about how we've been highly successful at acquiring new accounts. Let me tell you about how we're becoming more efficient at bringing these consumers into the ecosystem and then servicing them once they're here. Owned channels like our branches, Chase.com, and our mobile app drove 85% of our newly acquired branded card accounts in 2022 at materially lower cost for acquisition than through third-party channels. We saw a 4 percentage point increase in accounts acquired with pre-qualified offers, which matters because it leads to higher approval rates and a better customer experience. As a result of these and other efficiencies, we saw a 21% lift in new accounts and maintained consistent cost for acquisition even as we acquired higher revenue accounts. We expect to maintain this efficiency going forward. Once customers are in our ecosystem, we're getting more efficient at servicing them. As we've added more digital servicing features like instant dispute resolution, digital engagement is up 5 percentage points since 2019. We've improved our fraud loss rates by leveraging AI and machine learning to provide our customers with a more seamless and secure payments experience. All of this has resulted in a drop in our calling rate over that same period. With all of these customers in our ecosystem, now we're focused on driving engagement, and here's where our two-sided Connected Commerce platform comes into play. We're connecting two of our critical assets. On one side, it's our 63 million digitally active customers, and on the other side, relevant brands that our customers love. We're connecting them in journeys that they're doing with us every day, like shopping and dining and travel. Customers log into our digital channels more than 15 billion times a year, we leverage that rich data we have on the customers to target them with personalized offers in those channels. This rich data allows us to close the loop for our partners so they can truly measure the performance of their investment on our platform. That's how the flywheel comes to life. We also have core enablers like payments and lending solutions, so customers can borrow and spend in any way that they want, including through digital wallets and using point-of-sale installments. When you add these together with the scale of our base, the breadth of our solutions, and the richness of our data, we're connecting brands and customers in a way that no other company can. Don't take my word for it. Let's look at the platform and hear from our partners. Aeroplan and Air Canada are privileged to have access to the Chase customer base by virtue of our partnership. It's a company with the drive and energy of a start-up, but the focus and the discipline that you'd expect from one of the world's largest financial institutions. Chase's investment in technology and customer reach helps us grow our business, and together, we're introducing Chase's customers to the best that Marriott International has to offer. The Chase customer is the Montage customer. When they check in at the front desk, and we hand them that letter outlining all the amazing benefits of the program, they truly feel seen and recognized. When you partner with someone like The Infatuation, it's twofold. We wanna be on the forefront of Miami. It's also important for smaller businesses that people don't talk about often, that they get out there for some of these bigger names. Being part of the Chase Offers program was one of the coolest things we've seen happen to our business. The trajectory of our business changed. We experienced exponential growth, and we're able to make processes a lot more efficient overall as business owners. We know we can't achieve our goals on our own. We need the very best partners with relationships that are built on scale, capability, trust, transparency, and a track record of performance and shared values. In Chase, we have all of that. As you just saw, travel is a big part of our strategy. In terms of performance, 2022 was a strong year. We're a top five leisure travel provider in the U.S., and we have lots of room for growth, as one in four leisure travel dollars spent in the U.S. is spent on a Chase card. Last year, we saw roughly 40% more customers transacting on our platform, and this growth led to roughly $8 billion in travel sales, and it puts us on track to deliver $15 billion in 2025. As we told you last year, our revenue margins in this business are roughly 10%. Stepping back for a moment, our vision with Chase Travel is to create a high-tech, high-touch platform that connects our suppliers with our premium traveler base. With our acquisitions of cxLoyalty and Frosch, not only did we acquire the capabilities to win, but we welcome to Chase world-class leadership teams that give us the knowledge and expertise necessary to succeed. These acquisitions are profitable today, excluding the upfront deal costs, and are on track to pay back within 6 years as expected. Now we're taking this winning travel playbook, and we're using it to innovate on other high-spend categories like shopping and dining. We leverage our rich data from customer behavior, and we analyze it to improve on customer experiences. Take, for example, shopping. In 2018, we launched Chase Offers. Last year, we delivered 9 billion offers and generated $6 billion in spend for our partners. Given the success of this strategy, we made a small acquisition of a card-linked offers platform called FIG last summer. This allows us to innovate on the customer experience and own the end-to-end economics, just as we do with travel. In dining, where we already had a strong value proposition on our card, we took the opportunity to acquire leading restaurant recommendation engines, The Infatuation and Zagat, and we're seeing strong momentum here. We've already integrated direct restaurant booking functionality into The Infatuation, and we're on a path to deliver more for our consumers, including events they love, like EEEEEATSCON. As we scale the Connected Commerce businesses, we expect to grow revenue to $2 billion in capital-light reoccurring revenue for the firm in 2025. All of this comes together, though, to change the dynamic of what we provide to consumers and brands. For our partners, we're driving far more value than just the ease, safety, and security of the payments we provide. Creating new ways for our payments to pay and borrow is essential to our commerce journey. Last year, we drove $5.6 trillion in consumer and small business payments. We have more than 67 million payments-active customers, and over one-third of them are making a transaction at least once a day. Across the payments and lending landscape, we're innovating on customer experience from debit and credit to Zelle. At our scale, we've learned that one size does not fit all. In order to serve our diverse customer base, we need an array of solutions, and when we launch them, they scale. Take, for example, our credit card installment solution, My Chase Plan, which launched during the pandemic. Last year, My Chase Plan origination scaled 3 x faster than outflows did to competitor buy now, pay later solutions with our customers. Now we've started to roll out the ability for customers to split transactions on their debit cards into four equal payments. It's early days, Chase Pay in 4 is exceeding our expectations. We're on our way to bring our installment solutions to the point of sale, starting with some of our best customers. We're partnering with Early Warning Services to launch Paze, a new online point-of-sale wallet, we will load it with eligible debit and credit cards so our customers can avoid manual card entry. We're so focused on payments because highly engaged payment customers are more satisfied and have deeper relationships. All of this ladders up to what's most important, customer satisfaction. Every year, our cards are recognized with dozens of accolades, you can see a few of them on this page. Our most important feedback comes from our customers. We receive millions of survey responses every year and use advanced analytics and machine learning to process that feedback to improve customer experience. That feedback loop has led us to make some meaningful enhancements, including new tools like our digital chat bots and improvements in our servicing policies. This shows in the satisfaction we've made with some of our target segments. While our NPS for the business today is very strong, every investment we're making will be critical to our ambition of pushing our NPS even higher to 70 for every product in every segment. Which matters because more satisfied customers are good for the bottom line. They spend more, and they attrite less. This page is why we're so confident in our investments, because being part of the JPMorgan Chase ecosystem gives us an unmatched advantage over other issuers. Card brings in roughly 50% of the new to Chase customers, and then they quickly learn that Chase is a one-stop shop for all their financial needs. They open consumer bank accounts, they deepen into the business bank, they deepen into wealth management. The flip side is true as well. Those deposit franchises provide essential data to help us approve more customers for our cards, and they're an efficient means of distribution. Card also benefits from our rich client relationships across the firm, particularly as we build out our Connected Commerce platform. Before I hand it off to Jenn and Marianne Lake to give you an update on First Republic, let me summarize what you've heard today, because I know it's been a lot. First, Jenn told you about the overall strategy for CCB, which should feel familiar as it's been consistent year-over-year, and of our strong financial performance. Marianne took you through our investments, credit outlook, and return expectations for CCB. Despite near-term uncertainty, we're well-positioned for any weather. You heard from Jenn and Ben on what we're doing to drive primary bank relationships with our consumers and small businesses and the power of our branch network. Ultimately, our strategy is simple and compelling. The scale of our relationships, the strength and diversification of our businesses, our operational excellence, and our unmatched investment capacity enables us to be a market leader today. We don't take our position for granted. Obsessing over customer continues to be the North Star and will enable us to be a market leader for years to come. Thank you. With that, I'll hand it over to Jenn and Marianne. Okay, we are in the homestretch, I promise you. As you may imagine, we didn't come into this year with acquisition plans for the business, but given the circumstances, we stepped up. The acquisition of First Republic happened over a weekend. As prepared as we were, we have learned a lot over the last several weeks about the many strengths of their model, including their commitment to extraordinary customer service. No question, First Republic clients love their bankers, and they love the model. It doesn't stop there. The frontline producers, which includes relationship managers, business bankers, preferred bankers, as well as the wealth managers, feel empowered to deliver holistic balance sheet solutions. The majority of their business is self-sourced, delivering deep multiproduct client relationships that are owned by their banker for life. The service model leverages an integrated team of experts, is high touch and white glove. Now there's even more to love. As First Republic clients will have access to the full power of JPMorgan Chase and the strength of the whole franchise. Our fortress balance sheet, capital, and liquidity, access to industry-leading research and proprietary investment strategies, our data and AI capabilities, the industry-leading digital app, as well as the convenience of access over time to 4,800 branches and over 15,000 ATMs nationwide. Stepping back at its core, this operating and service delivery model is more consistent than different to ours. You will have heard us say publicly that we too put the client at the center of everything that we do. We offer a complete set of industry-leading products and services, and we try to serve customers seamlessly with excellence across their whole relationship. We continue to be very optimistic that this acquisition will help us to accelerate our affluent strategy. Integrations are hard, and it's critical that we do this in a way that feels natural and sustainable and ultimately scalable. We don't have this fully figured out yet. Right now, we do have three priority jobs: to treat the nearly 7,000 employees with respect, honesty, and transparency, giving them clarity on the path forward. To stabilize the business and earn back clients. If our First Republic clients are listening, we are open for business, and we're very excited to serve you. To ensure that we are operating with discipline, conforming credit approvals, risk policies, and pricing, all of which is well underway. Just a moment then on the $100 billion mortgage portfolio that we acquired within CCB. Putting the ongoing business opportunity to one side for a moment, these are very high-quality assets. Most are straight down our fairway, prime consumer jumbo mortgages, well within our risk appetite. You can see the portfolio risk metrics on the page, and when taken together with the FDIC's loss sharing agreement and associated capital treatment, this is a profitable and accretive portfolio for the business and for the firm. With that, I'm gonna hand over to Jenn to pick up on wealth management. Thank you. We're definitely breaking records today for the number of times we say wealth management. First I'll provide some context on our existing wealth management franchise so you can better understand where First Republic fits in. I talked to you last year about our strategy in CCB. We have since continued to scale our full service model while launching a new remote advice channel. Within full service, we have Chase Wealth Management, which is predominantly branch-based, along with J.P. Morgan Advisors who operate in more of a traditional wirehouse model. As you well know, we have the private bank, which Marianne will talk about later. Our complete set of offerings allows us to serve clients across the wealth continuum in their model of choice. First Republic's private wealth management business is most similar to the J.P. Morgan Advisors model. As you can see, adding about 200 advisors and $200 billion in assets represents a meaningful acceleration of our wealth management business in CCB. Beyond wealth management, First Republic's preferred banking offices or branches can help scale our branch segmentation strategy. I shared one example of this segmentation last year, which is our community center branches in underserved neighborhoods. We're leveraging this playbook to design private client centers to better serve the affluent segment. On the surface, First Republic's branch network overlaps with ours and is small in scale, but they have premium locations in markets that cover 50% of our wealth balances. We plan to leverage this real estate along with First Republic's unique branch format and operating model to better serve our affluent clients. As Marianne told you, we have long admired First Republic's culture of client service, and their model is complementary to ours. We look forward to incorporating the best of First Republic into our franchise, including their cookies, which will be served at the break, which I'm sure you're all desperate for at this point. At least you have cookies to look forward to. Okay. Just to close out, I'll reiterate our overall outlook. We remain optimistic about the long term, but we're not immune to the near-term challenges. While our central case is for a mild recession, we are prepared for a range of outcomes. Having said that, in any economic scenario, our diversification will provide support to our relative financial performance, and our scale will allow us to continue to invest in opportunity to the long term. With that, we'll open it up for Q&A. We're running a few minutes behind, but we have time for a couple of questions before we get those cookies. Gerard. Thank you, Mikael. Good morning. Jenn, you and Jennifer Roberts talked about the opportunities of growth from cross-selling. Can you tell us what areas? Is it the transaction accounts? Is it wealth management, credit cards? Where do you see the best opportunities for that going forward? Where has been the best success in the past of getting that multi-line connection to your customer? Sure. Thanks. I would say that broadly speaking, it is in the affluent segment and then across our lines of business. I would also add small business to it and then covered that well. In terms of the affluent segment, we have relationships across card in the consumer bank with nearly half of the affluent households in the U.S., and yet we have a low share of wallet. Frankly, we have an opportunity even within the consumer bank, but certainly have an opportunity to deepen from the consumer bank into card and wealth management. Just, Gerard, the way we think about it is that the consumer bank and card, they bring in approximately each of them, bring in half of the net new customers to the franchise. They deepen first and foremost across those businesses, including, as we said, small business. Then, you know, Mark O'Donovan is there to help support the HNI by being available to provide mortgages even in this environment. It's everything. I would say broadly for the segmentation strategy, we've talked about it in the past. We call it the barbell. We're relatively under-penetrated in starters and low mass. While we have good penetration with affluent, we have low share of wallet. Those are our two real opportunities on segmentation. You bring Ebrahim Poonawala up here. Thank you. Just a question. Ben spent a lot of time on small business, and there's been a lot of discussion around pressure on regional banks. Big banks may not be able to serve the needs of the small business. Just talk to us in terms of, one, do you agree with that there are certain things that the big banks can't do? If not, is that an opportunity as you think about leaning in over the next few years? I would say that there is absolutely. Our economy needs banks of all sizes, and there are things that smaller and regional banks can do that we can't necessarily do. They serve the customer base differently. That doesn't mean that that isn't also a tremendous opportunity for us at the local level, which is how we deliver everything we do for small businesses. Scott Siefers back there. I know it's still pretty early days, but with regard to First Republic, how has the stabilization of the customer base and employee base been? What are the maybe the top one or two or three things that you are doing to stabilize and ultimately grow them? I'll say that, while it is early days, I think we're in, you know, week three. We have seen stabilization of clients and deposits. In fact, since the acquisition, we've actually seen a small net inflow of deposits. You know, that's something we're very focused on, both of those two things, stabilizing and winning back the clients and their business. With respect to the employees, this is a big week for us. We're working through the forward-looking operating model, and we've committed to the employees that all of them will get clarity on their status and the path forward within 30 days of the acquisition. We're a week, you know, away from that deadline, and we intend to meet it. It involves us understanding beyond wealth management. We're very excited about that. I talked about the relationship bank managers, the business bankers, the preferred bankers, the client service specialists, and all of them serve clients, and many of them are the quarterback for clients. We're working on how to bring them into our businesses in a way that feels natural but preserves the best of what they do, where they do have a teamified, you know, group of experts. We're in the last rows of putting all of that together, but we think there's an opportunity across the businesses to accelerate our wealth strategy. I'll just add on the branches. We've already looked at. They have 84 branches. We've looked at every single one of them. There will be some small amount that we think we can close in the shorter term because of their proximity to other First Republic branches. It's important to note that then the majority will remain First Republic branches until we're able to convert the back end, because we have to wait until we can convert the back end. Then from there, over time, they would be in 3 cohorts. Ones where we think we can close because we have a Chase branch in proximity, others that may be a better location or a better footprint that will become Chase branches. As we've talked about, we're excited about the opportunity to create private client centers with some of their branches as well. Mike, go ahead. In terms of 650 new branches over the last five years, this kind of love affair with branches. I mean, that's equal to the total number of branches of almost Zions and Capital One combined. Do you have a special secret sauce? Is it your franchise? Do you think you execute better? Are you willing to take more investment risk? I mean, because this seems contrary to a lot of the industry. Thanks. I think it's all of the above. All of the above. Mike, for sure. I would just note that we have 500 fewer branches than we had in 2017, yet we are in 25 states that we were not in in 2017. It is a love affair with branches, just to be totally clear. That doesn't mean that we can't optimize the footprint over time. As Jenn said, we do expect that over time, given our opportunities, that you may see a small increase in the branch footprint. It's important to note that we don't have to have the same density that we once had to have to be able to reach more customers. That's why this point about our branches reaching 30% more customers is so important, because when you have the complement of digital with our branch network, you don't have to have that same density. We can reach more customers over time, with the complement of both. The way that, like, we're gonna continue to... I mean, retail banking is local. It is still absolutely local. As Jenn said, people need people. When you look at the opportunities at the market level, you know, we just have, as Jenn already said, tremendous opportunity. We're only number one in 11 of the top 50. Top 125 markets, there are 59 unique competitors that are number one or number two. We do think that we have a special sauce to be able to do what we do at the scale that we do it. It is a local game, and we respect and compete with a number of different banks that are small and regional and large. Just to add to that, there's a couple of fun facts. You know, I said that we have conviction that it is in part or it's in large part our branch strategy that has contributed to our deposit market share outperformance. If you look at our outperformance relative to the number two, it happens to be the same as the share that's been delivered by our new branches. You know, there is real, like, analytical proof that it is driving outperformance. We're also outperforming in our legacy footprint also. You know, while it may not be unique to us, we have complete conviction about the value that branches deliver to all of our businesses and all of our products. You know, so 50% of our branded cards are delivered through the branches, 75% of mortgage referrals. When we do a mortgage, it lifts D&I. You know, I'm sure it's not true just for us, but certainly we have complete conviction about it and we measure it. I think Jenn said that the branches support $30 billion of our revenue, and we believe that. Okay, we'll take one last question from Betsy Graseck up here. Hi. Thanks. Just to double-click on that a little bit, Two points. One is, I'm sure you've analyzed it, what do you think your organic deposit growth rate is excluding branches? Could you speak a little bit to deposit pricing strategy? Thanks. Sure. Over the next few years, and Marianne said it, that, like, putting First Republic to one side, we do think between 2023 and 2024 that we'll kind of consider the recent trends and see deposit balances be slightly down. Of course, with First Republic, way too early to call it, but that could be closer to flat or slightly up. In terms of deposit reprice, it's important to remember that, like, there's two components to it. There's the migration to higher yielding products, CDs, wealth management, just say CDs for now. Then there's the product level reprice or savings reprice. When you think about the migration and CD pricing, that is an economic decision, and we can capture that money in motion profitably because you don't have a back book that you're repricing and you attract net new money. We've been able to do that, and that migration will continue. If you go back to 2007, the last, like, real rate cycle, we were at north of 30%. In fact, Marianne remembered this from her- Goldman Sachs 2015. It was Morgan Stanley. That's right. 2015, we were at 30% CD mix. Today, we're at 6% CD mix. That migration will continue to happen over time in any rate cycle. The savings reprice, as I said, we have a modest savings reprice assumption in our outlook. It's not clear that that's gonna be necessary given the fact that we have proven that we have the products available for our yield-seeking customers, and we've been able to satisfy them between CDs and other Wealth Management products. Okay. We'll take a break here. Thank you. Thank you. Thank you. We will now take a short break. Please take your seats. Our program is about to begin. Welcome to the stage, Daniel Pinto. Welcome back. I hope you enjoy the cookies. You will need the sugar to take the next 90 minutes. Let's go. This year, I have three of my colleagues that are going to join me. Takis Georgakopoulos, the Head of Global Payments, J.P. Morgan Payments, and Vis Raghavan and Jim Casey, who run investment and corporate banking. Jim and Vis have replaced Carlos, the previous person who was in that job because he retired in March this year. I will start with an overview of the Corporate & Investment Bank and with a reference to the four lines of business. Last year, we're focusing in the deep dives in markets and payments. We are bringing payments again because an area with a lot of progress and a lot of cool things happening there. We are going to get Jim and Vis talking about investment banking. Despite all the challenges, the Corporate Investment Bank continues to perform very strongly, $48 billion of revenues. Last year, 10% market share, number one Corporate Investment Bank in the world. Our 4 line of business are performing very strongly over time. Investment banking, $6.9 billion of revenues last year, 7.9% market share. We will talk a lot more about that, but it was a massive compression of the wallet that went all the way from $133 billion, the wallet in the industry, to $78 billion, but it was the level of 2019. Markets, $29 billion, number one, 11.6% market share. Payments, $7.6 billion in revenues in the Corporate and Investment Bank, and $14 billion in revenues across the company, also ranked number one. Security services, $4.5 billion. It's the third consecutive year of record reporting revenues in security services. 10.5% market share and number three position. Our strategy is being consistent and aligned with the strategy of the company to be complete, to be global, diversified and operate and scale. It's very important in this business that we continue to go this way. Since 2017, the performance has been strong, and we have the increase in the wallet, but also increase in capital, and a small reduction in the wallet from 2021 to 2022. We were very well positioned to capture the share growth and the wallet growth in 2020 and 2021, where we got the benefit of substantial increase. The wallet went from $375 billion in the industry to $431 billion, and we not only captured that, we also increased our market share in the following 2 years by 120 basis points. Last year, we have a small decline in market share, but it's still substantially above the levels of 2019. Capital has gone up from $83 billion to $183 billion in 2022, and $108 billion, it's not in the page, $108 billion this year. The increase is roughly split between regulatory change in regulatory capital, which is essentially the first half, which is essentially to have more capital to do exactly the same that we were doing, and the other half is growth. That's why it create a greater effects and a lower return on equity of 14%. The increase of regulatory capital that was half of this thing, so that is more than 200 basis points of return on equity. Clearly, we are very focused and well trained to optimize capital and RWA, and we will do that in the— during the years to go back to our target levels of returns. This page has data that is a combination from Coalition and Dealogic. Is, we showed some version of this in the past. It's like the 25 sidelines, sub-lines of business across the Corporate & Investment Bank. In 14 of those, we are number one. In 10, we are top three. There is one where we are not top three, which is trade finance, and it's essentially by design. There are pieces of trade finance that are very profitable, and we are focused in growing that business as they are very, very low return type business. We have made progress across all the regions, North America, EMEA, both number ones and number three in Asia Pacific. Digging down a bit more on market share, starting from the left of the page. Investment banking, from 2017, last year we have for the first time a small reduction in market share. That was driven by the compression of the wallet for sure, but also that wallet was over-indexed on mergers and acquisitions. 47% of the wallet, that is, was M&A. Normally it's around 30%. Very low activities in capital markets, that is our main strength, both equity and debt capital markets. Markets, 100 basis points increase in market share over this five-year period. Payments, market share from 5.6% to 8.4%, 280 basis points increase. Security services, 80 basis points increase. We have made progress in all three regions and increased market shares all across. On the right-hand side of the page, you see our market share as it compare with the average of the top 4 competitors. In 2017, our market share was 8.6%, 340 basis points ahead that competitor average. That equivalent number was 380% for a market share of 10%. The gap has widened. Now on expenses, we've been very disciplined, the increase in expenses, a lot is to do with two things, wages, related to inflation, and investments. From 2021 to 2022, expenses grew up $1.9 billion, and here are the components. Volume and trading related, volume and revenue related have gone down by $200 million, and that is a combination of two numbers. First, higher transaction related cost has gone up. IC, incentive compensation, has gone down substantially to compensate for that and bring the number even lower. The structural $1.5 billion, the highest components of that is first is wage increases because of inflation, regulatory surcharges, and the normalization of travel and entertainment as we exiting COVID. Between from 2022 to 2023, expenses will go up around, you know, according to this page, $600 million. The structural is $400 million. Essentially 3 components there. Some wage increase, number one, higher regulatory surcharges, and the run rate of some of the small acquisitions that we have done. Volume and revenue related, that at the moment is relatively flat to last year, it will depend on how the market evolve. We will see how it goes. The strength of our franchise is enhanced by our ability to serve clients across businesses. First and foremost, we take a client-centric lens in relationship with our clients. We de-deploy capital to our clients, which is measured primarily at the relationship level. Second, we have a very large range of products that touches our clients everywhere. Essentially, that give us a possibility to have a constant dialogue with our clients. Therefore, when an episodic deals happen, our probability to win that deal is a lot higher. Third, a complete broad offering that allow us to serve our clients holistically regardless of where they are in the world or where all their needs are. On the right-hand side of the page, we are representing here how important is to deepen the relationship with our clients. If you consider the top 500 corporations that are a client of us, 80% of those, they do business either with three or four of our four LOBs. In financial institutions and public sector, 75% do that. What you see right underneath, it shows how the multiplying revenue effect that you have by deepening those relationships. When we look at our footprint, and we are constantly working on this, we think that at least a couple of billion dollars of extra revenues that we can achieve by deepening the relationship with our clients. I will spend a bit of time in markets and security services, that they are the two business that we are not going to deep dive into today. Markets is the top markets franchise in the world. We're number one in fixed income, in equities, and in research. $29 billion of revenues, 11.6% market share. Revenues have increased in the last five years by 57%. When you see in the bottom left of the page, you will see that a substantial portion of our big institutional clients, they are clients of multi lines of business in the commercial bank. We also been expanding over the years in making sure that our offering is global. Therefore, we are number one in the Americas, we are number one in EMEA, and number one in Asia-Pacific. We have a very complete global franchise. When you think about how the market is evolving, voice or electronic, they are both growing. Voice is growing at 7%, electronic is growing at 12%. This is a great business. We will dig down now into a bit more detail. In equities revenue last year was $10.4 billion. The business grew from 2017 by 80%, and the market share by 280% in the same period. We have made great strides, and we have gained market share in all four equity products. We have closed the gap that we used to have in cash equities and in prime brokerage. Also, we have regional gaps that we also invest, and now we close. Essentially now we have a full set of products that they can deliver globally at a scale to our clients. Fixed income, we reported $18.6 billion in income revenue. We remain the number one industry leader in fixed income, and we have been for a long period of time. There was some normalization of market share following the pandemic. This was driven by a variety of factors. First, last year, there were some structural changes to the wallet in fixed income. That means that essentially the market was over-indexed, or the wallet was over-indexed in commodities, particularly physical commodities, and under index in credit products and SPG. Essentially, our business model is exactly the opposite of that. Essentially, we did suffer for this twist in the wallet. The second thing is, as the wallet increased, some of the European banks came back to the scene and become more competitive, and that took also a bit of market share from us and everyone else. There are some issues that are a bit more specific to us. It's very important for us when we talk about capital to constantly optimize our capital deployment. There are certain clients or certain products where we need to optimize. By optimizing, we are doing the right thing to produce better returns, but at the same time, we may hit the top line a bit, and some of this happened last year. Last and important is we have few areas or a couple of areas of underperformance that we are actively addressing. After all that, there are nine businesses within fixed income. We are number one in five of them, and we are top three in the other four. This is a very, very strong franchise that has a bit of a loss of market share, but we are very focused in recovering it. In this page, starting from the left, you see the increase in market in a wallet from the average of 2017-2019 to the average of 2020-2022. This year we are expecting a small slowdown in the wallet, like 4%. On the center of the page, this was our main thesis to invest in markets. It was about that the wallet on this industry will consolidate towards the bigger players. It is happening. When you look in the center of the page, the top five players in average from 2017-2019, they have 40.4% market share, and the same group from 2020-2022, they have 44% market share. The trend of consolidation of the wallet that we've been discussing over the years still continues. It's a profitable business at our scale. We comfortably cross the cost of capital on a marginal basis for sure, but also on a fully loaded basis. To strengthen our number one position, we remain focused for the whole market in three strategic priorities in order to capture market share and opportunities for the future. The first is we want to be, and we are, a complete counterparty. As the clients' needs evolve, we are investing to evolve with them by launching new products and assessing opportunities to optimize the utilization of capital and the deployment of capital to them. Second, we want to be differentiated, and we are, across the trade cycle. From having best-in-class execution to pre-trade services, which is essentially a great research organization that provides great content, but Mark and the team, they are investing in making that content available in a way that is easy to use for our clients. Then post-trade, that it goes all the way from post-trade analytics to back office, to middle office, to custody. We have best-in-class services too. The third is being at the full front of the secular changes. As the dealers are consolidating the wallet into the top lead-dealers, the same is happening with the competitors. Sorry, with the clients. The big asset managers, our big clients, they are becoming also bigger and bigger. Therefore, we need to constantly adjust our business model to serve the needs of bigger and bigger clients as time goes by. Electronification is a trend that we embraced from the very beginning, and we are seeing the benefit of it. Market structure, this is very important to us. We want a market that is functioning, liquid, and we want a market that is competitive. We want to incentivize the market by, with our views, to have a market that it doesn't create monopolies anywhere. Private markets, a massive area for growth. These markets are growing 2x, 3x faster than public markets. The opportunity is not just primary, both equities and credit. At some point, and this as a class becomes bigger and bigger, we will have to find ways to provide liquidity to our clients on that, and we see this as an opportunity. All this allow us to continue to engage with our clients and continue to grow our business. Now on to security services. The security services business is strategic for us, and we've been investing heavily in it, and we've been growing it quite well. It provides critical services to our institutional investor clients. The top 100 clients of security services, they also have our clients of the investment bank, they are clients of payments, they are clients of markets. It generates predictable stream of revenues and is quite capital light. It provides a stable base of operating the bosses to our company. For 2022, it was the third consecutive year of revenues, record revenues, mainly driven by NII, and with some upset of headwinds in the valuation of assets that had gone down in 22, therefore has an effect in this business and others, and an ongoing competition and fee compression that we're seeing. Since 2017, revenue for this business has gone up by 17% overall. Fees are up by 23%, and our market share, as I mentioned, by 80 basis points. This is a business where scale does matter, and we have it. We've been investing in technology and in improving our operating model to unwind and get those efficiencies. When we move to the next page, it give you a bit of a representation on that on the left-hand side. In custody, it is over a period of five years, our market share has gone up and our cost per trade has gone down by 26%. Traditional fund services, we calculate 25 NAVs per day. Our market share has gone up by 440 basis points, and the cost to calculate those NAVs in the same period has gone down by 16%. Trading services, market share has gone up by 640 basis points in that period, and the cost per trade has gone down by 84%. It tells you how important scale is in this business. We've also been investing for growth and aligned with our emerging needs of our clients. For example, in ETFs. as our assets, the assets that we have in ETFs have quadrupled in the last five years, we are the number two top player. Alternatives. We more than doubled the assets under administration with great capabilities and solutions across private markets and public markets. In middle office, we have deployed a very scalable platform that is taking advantage and leveraging other parts of CIB technology. That has been great for this business and allow us to win many new mandates to deepen into the relationship with existing clients. This business in itself has gone up in revenues by 34% in that period, and we have a very, very strong pipeline of deals to execute. Lastly, let's talk for a second about Fusion. Fusion is our data platform for clients. Essentially, the problem that we are trying to solve is an obvious problem, very challenging, which is clients and ourselves, they have data all over the place. All that data is not standardized. What Fusion is trying to do is bring all that data together, standardize it, and make it usable to those clients in order to improve their alpha in their investments or efficiencies and run better analytics. The platform, the research team working on this for a period of time, the platform is up and running, still not complete, and we have some cases we are working with our clients, mainly in ESG-related solutions. Just a couple of seconds on the last two business that we're going to deep dive in a second. In investment banking, last year, as I said, it was a tough year. The wallet went from $133 billion to $78 billion, with an overindex in M&A. It's a great franchise that we have. We are the number one investment banking business in the world. We are number one in North America and EMEA. We are top two in Latin America and three in Asia. Over the long term, I think that the wallet will normalize and our view is the wallet will normalize in the range between what it was in 2019 and what it was in 2020. That means between $80 billion and $95 billion. This year, because of the uncertainty, number one, in the economy, and number two, that the fact that a lot of M&A transactions are having a, by far, higher regulatory scrutiny, all we have seen in the past, it's very likely, we don't know, but the wallet will contract probably a bit further, so in the neighborhood of probably $70 billion for this year. Payments, you will hear a lot from Takis. This is a great franchise. It's growing. We have a great treasury services business with top performance all across, and we have a lot of opportunities in the merchant acquiring part of the size. We have client areas where we can grow. Corporates outside the United States, there is still more growth. Even we are the biggest in financial institutions, there is more growth coming there. In all the e-commerce ecosystem, big and small, there are plenty of opportunities that I'm sure you will hear from Takis. I will stop here. I will come back at the end to close and to do a Q&A. Now, please, Jim and Vis, it's your time, so thank you. Welcome to the stage Viswas Raghavan, Co-Head of Global Investment and Corporate Banking, EMEA CEO. As you can see, we can choose our music jingle as well. Good morning, everyone. I'm Vis Raghavan. My partner, Jim Casey, and I co-head Global Investment and Corporate Banking. We're gonna cover four topics with you today: the evolution of the investment banking wallet and landscape, the continued strong performance of J.P. Morgan's investment banking business, our differentiated strengths that position us for future growth, and finally, our strategic focus areas and how we're progressing in each of them. A great deal has changed in the market since February 2020 when we last gave an update on investment banking to this group, so I'll start there. In 2020 and 2021, when the pandemic was at its peak, you saw a boom in investment banking activity. A deluge of money on the back of central bank stimulus, a benign yield curve meant there was action in pretty much every asset class. SPACs, IPOs, leverage buyouts. You saw financial sponsors active and mergers and acquisitions all benefiting from this abundant liquidity. The result, $133 billion in fees in 2021, an all-time record. Come forward to 2022, the conditions reversed. Geopolitical uncertainty around Russia and China. You saw supply chain concerns feed the market and then above all, inflation, a return of the yield curve. Basically, more importantly, you saw cautious tone in investor sentiment that effectively switched from growth to value and crimped risk appetite. The 2022 wallet dropped to $28 billion, close to the pre-2020 run rate. A lot of investors and issuers withdrew from the market in the face of pricing uncertainty, a heightened volatility, and declining valuations. That shift in investor sentiment effectively saw capital markets activity effectively shrink, and you can see that's been kind of almost near instantaneous. New M&A announcements also slowed. However, the 2022 wallet decline in M&A was less pronounced because of the lag effect in mergers and acquisitions between announcement to closing. 2022 benefited to an effect from 2021 announcements, and as a result, what you saw was a very unusual mix that overweighted M&A at 47% versus 31% or thereabouts historically, and underweighted equity capital markets and debt capital markets. The start to 2023 has been sluggish, more like the last quarter of 2022. The 2023 first quarter wallet at $16 billion is down approximately 15% from the 2012 to 2019 first quarter average. The April wallet at $4 billion was the lowest monthly wallet in the last decade. We are seeing some normalization in product mix, though. Capital markets activity is slowly coming back. We've seen a few IPOs globally, pretty much in every region. Also you're seeing leverage finance deals and high-grade bond deals slowly come back, with the market emphasizing earnings power and value over growth. New M&A announcements, though, have had the slowest start in over a decade, with volumes down 46% compared to last year. From a regional perspective, the wallet mix has been pretty consistent over the last decade. North America is the key market, accounting for around 50% of the overall wallet, and then you have EMEA at around a quarter, and then the rest of the world at a quarter. Within APAC, China has been a growth engine for ECM and M&A for quite some time and accounts for roughly 50% of the overall Asia-Pacific wallet. While the relevance of this wallet has not diminished, what we have seen with the recent geopolitics around China is more of an inward focus, which means capital raisings, including equity issuance, has shifted towards domestic listings, which are typically executed by the local banks. Looking ahead, there is plenty of fuel to support transactions once investor confidence returns. In private markets, financial sponsors have significant dry powder. At the close of 2022, global private equity and venture capital funds had dry powder of approximately $2 trillion, which is 1.4 x more than the average of the prior 5 years. In private capital, equity private placements have more than tripled since 2017, reaching $700 billion at the end of 2022. Over the same time, private credit markets have doubled in size, reaching $1.4 trillion. There's plenty of firepower out there. In parallel, corporates are also positioned to drive activity. Corporate balance sheets are still strong. At the end of last year, cash balances of U.S. corporates were 30% higher than the pre-pandemic 3-year average, while leverage levels at corporates have remained relatively flat. This should support corporate M&A, and that is discretionary, but there is another aspect which is quite relevant. On the debt side, over the next three years, there's a wall of debt set to mature. Daniel alluded to it earlier in the presentation. There's approximately $4 trillion of corporate debt and $2 trillion of sovereign debt, which is set to mature between 2024 to 2026, which will necessitate refinancing. However, for now, geopolitical tensions, inflationary and recessionary concerns, rising interest rates, valuation uncertainty continue to stymie activity. Although the markets have been highly volatile, our business is strong. We maintain our leadership position. We are well positioned to capture growth once the market wallet takes off. We are the preeminent investment bank. We have been ranked number one in IB fees globally for the past 14 years. Jim and I were just discussing earlier, next year we too will come with a nice video to kind of showcase our, our story. In 2020 and 2021, as the industry wallet rebased higher, we were well positioned to capture the outsized share of growth, and in 2021 we achieved an all-time share, as you can see, of 9.3%. In 2022, all global investment banks lost share. This was due to two main reasons. First, the localization of China's ECM wallet, given the shift towards domestic issuance, which I mentioned earlier. Second, market share gains by boutiques. Boutiques have an M&A-centric model and benefited from the 2022 structural shift in wallet mix that overindexed M&A that I described earlier. That said, the top five boutiques collectively remain smaller than us. On products, we also have a leadership position. We are the number one in DCM and have consistently held that position for the past decade. In leveraged loans, we've also been number one for the decade. In high-yield bonds, we've been number one for 14 years, and in high-grade bonds, we rank number one in 11 of those 14 years. In ECM, we've consistently held the number one or number two position. 2022 was a very thin market, and we were number two behind China CITIC, which ranked number one. China CITIC has previously been 10th for the prior 5 years on an aggregate basis, and really was a primary beneficiary of the China domestic wallet share. In M&A, we have a strong number two position. In terms of overall wallet, in the first quarter of 2023, we saw an 80 basis points gain in IB wallet share, driven by the closing of several large M&A deals. Even though the overall wallet has softened, we see several opportunities for continued growth. We are well-positioned to capture share as the market slowly rebounds. We are not complacent. We know that beneath the headline number one rank, we have clear organic growth opportunities across regions, products, clients, and sectors. As Daniel mentioned, at the regional level, we have an extremely strong foundation. We've been number one in North America for a decade. We've been number one in EMEA since 2014, and at the micro level, we are ranked top three in 67 countries. We can continue to gain share as in markets where we do not have a leadership position, including some countries in Asia-Pacific, such as Australia and Japan, where we are not currently number one. With products, we've been a leader in DCM for the past decade. We are focused on closing the gap to number one in both M&A and ECM. In ECM, we are focused on growing share while doing high-quality business. This is really important to us. For example, we were selective and prudent in both SPACs and in block trades, and we take a deliberate approach to growth and will not chase lower quality marginal business. We have a number one position with both corporates and financial institutions. There is still an opportunity to grow and further deepen relationships. For example, with middle-market corporates and sponsors and venture capital firms where there is more to do. While other banks may need to start from scratch with a new banker and develop new client relationships, we can leverage the power of our world-class commercial bank and our private banking franchise to access and support these clients through multiple, often existing touchpoints. Finally, sectors. At the sector level, we have a strong leadership position across all major sectors. However, when you peel the onion, there is room to grow at a subsector level where we have gaps. Looking at the aggregate wallet since 2017, we've been number one in IB fees in all but one sector. Within these 8 sectors, there are 26 subsectors. To drive growth, we take a granular approach by focusing on priority subsectors, including those at the center of major secular trends. This strategy has delivered meaningful share gains. For example, in energy and renewables, we're advising clients as they embark on the energy transition journey. We are now ranked number two globally in green investment banking transactions. Two other examples of areas where we've invested in growth are in fintech and retail, where we've grown by 200 basis points of share in each. Looking forward, we still have a significant opportunity for further growth by targeting select subsectors, including subsectors in technology and healthcare, where we have gaps. These subsectors collectively make up around 20% of the global wallet. We'll apply the same granular and disciplined approach to grow in these priority areas. I'll move on to how we'll realize these opportunities. Clients are at the center of everything we do. We have differentiated strengths that enable us to deliver a complete and unmatched client experience. First, people and talent. Our bankers are the best in the business, and they are the glue that underpins our ability to bring world-class content and support our clients. Continuity of people is critical. Clients value continuity. Our most senior bankers have been with J.P. Morgan for 25 years on average. Our investment banking managing directors have an average tenure of 15 years with the bank. Our global team have been through all market cycles and can bring deep local expertise and broad global knowledge to our clients. Our people are a source of immense pride. Like our talent, our fortress balance sheet has also consistently stood behind our clients as a dependable source of financial support through good times and bad. Amidst all the volatility in recent years, we've been a stable port in the storm. We've approved more than $700 billion of balance sheet support for our clients since 2020. We are disciplined in optimizing our bridge book, which enables us to support our clients both today and in the future. Our complete industry-leading IB capabilities support clients globally through their growth journey. Our breadth of offering is complemented with an innovation mindset. We operate from a position of strength, which enables us to focus our attention on new opportunities and emerging threats. We are constantly evaluating how we are covering our clients, their sectors, and are continually adapting and evolving to the needs and demands of the market by developing new products. Jim will speak to more of this in the coming slides. Finally, franchise integration. This is pretty much the essence of what makes us successful. A characteristic that sets us apart from our peers is our innovative three-pronged client coverage model, which is a partnership between Global Corporate Banking, Commercial Banking, and Investment Banking. Global Corporate Banking and Commercial Banking ensure that we're meeting our clients' day-to-day banking needs while Investment Banking supports strategic activity. This client coverage approach safeguards that we not only have regular touch points with our clients, but also ensures that we have a holistic understanding end-to-end of our clients' strategic growth objectives. When you then partner that with a world-class markets business, a world-class Payments business, and world-class Private Banking capabilities, there is a symbiotic partnership that is absolutely at the essence of our client relationship. We are fully joined up globally. We operate at scale and offer a differentiated first-class experience that allows our clients to deliver, to realize their strategic goals. I'll now hand over to Jim to speak more about the breadth of our offering across the client cycle. Thank you. Welcome to the stage Jim Casey, Co-Head of Global Investment and Corporate Banking. There's a moment. Thank you, Vis. Good morning, everyone. Before I get started, I wanted to just make one point that we all know Jamie Dimon is an incredibly hands-on CEO. He is enormously detail-oriented, but I wanna clear up one misunderstanding. Where's this going? He does, he does not select the music that gets played when we walk up here. Everything else, maybe we can point to Jamie, not that one. We can get started now. We can if I turn to the right page. All right, here we go. Vis mentioned that we have unrivaled breadth in offering an unmatched innovation mindset. We focus on that at J.P. Morgan because we strive to provide our clients with best-in-class solutions. I'll give you an example. For earlier stage companies that are looking to secure private funding and expand before going public, we partner with Commercial Banking to provide industry-leading client coverage and support. This includes growth sectors such as innovation economy, and VC investors. We also have the scale, capabilities, and expertise to proactively deliver innovative solutions at the forefront of client needs. We were an early leader in equity private placements. With our proprietary platform, Capital Connect, we're building a marketplace to match providers of liquidity to clients who need it. More recently, we launched our multi-billion dollar direct lending program in collaboration with markets and commercial banking. We're also an industry leader in IB products for later stage companies, many of which further embed us with our clients. For instance, in leverage loans, we're number one, and we're selected to play the lead left role in one out of every five transactions in the world. This is a high touch strategic role that positions us to address numerous client topics beyond just underwriting and syndication. Clients reward our expertise and high performance by continuing to do business with us on future transactions. This is evidenced by our high share of investment banking wallet. While we're number one, we hold that position while maintaining prudent financial discipline. Sometimes what's important are the deals that you don't do. Additionally, we continue to support our clients to enhance shareholder value. This includes strategic activities such as M&A. Within M&A, we support clients with corporate clarity, where we help them unlock value through activities such as spin-offs. We also support clients with activist defense. By the way, activist defense has been a key focus area for us, and we've improved our rank to number two. By supporting C-suites and boards in these uniquely challenging situations, we're able to further deepen our trusted advisor relationships. That is really what is at the heart of investment banking. Is developing those trusted advisor relationships. The depth and breadth of our IB offering is best in class. With this in our franchise collaboration model, we provide our clients a seamless one-stop experience that is truly differentiated. Building on the client evolution cycle on this page, let me illustrate how we collaborate across the franchise to support our clients. We've said repeatedly that we've got a client-centric model. Given that, of course, we don't expect our clients to adapt to our solutions, we adapt to them, and we offer what they need from infancy to maturity. This is the hallmark of our franchise. For instance, a middle-market corporate starts with us through a private capital raise. We can then support them with a sponsor acquisition followed by an IPO. Once public, we help them with both debt and equity capital markets in addition to strategic advisory. When our investment bankers support clients through these activities, they are not working alone. We partner with many other J.P. Morgan businesses to provide incremental and differentiated value during investment banking transactions. Commercial banking partners with us in several ways. This includes identifying M&A targets for our sponsor clients or other strategic buyers, and providing direct loans during LBOs. Our number one markets franchise can provide investor clients with margin or other financing. In an IPO, the private bank engages its ultra-high net worth clients to offer investment opportunities that help support our investment bank clients' capital raise. After the IPO liquidity event, our private bank can help manage the wealth of the founder and the management team. In debt issuance and follow-ons, markets plays a key role in syndicating and placing the securities, and they are often the most active market maker for the securities post-issuance. The corporate derivatives team is also a key partner, providing tailored solutions that minimize deal execution risk. All of these partnerships make us a one-stop shop for all aspects of an IB deal, which further enhances our differentiated value to our clients. Outside of the IB life cycle, we support our clients in numerous ways. We strive to deepen the holistic J.P. Morgan relationship with all of our clients, not just a select few, like many of our competitors do. Across the franchise, we share a mutual pipeline of clients. For example, many growth stage clients come to us via our payments or commercial banking business. Since 2017, we've generated more than $19 billion of investment bank revenue from commercial banking clients. As CB continues to provide a robust pipeline of thousands of potential future clients who we're looking forward to supporting. It doesn't stop there. Our investment bankers introduce clients to the private bank to help manage new wealth generated in the liquidity events and to markets to support client flow needs like hedging and FX. While many of our peers stop at markets or private banking, we keep going far beyond that. The sharing of clients is critical, but equally important is that the ongoing client touch points with other J.P. Morgan businesses establish credibility and reinforce our strong firm-wide culture. These touch points also keep the investment banking team top of mind when strategic activity occurs. Clients value our powerful franchise collaboration model, and they reward us for it. This is evidenced by our positive business results. For every dollar that we generate with IB corporate clients, we generate another $1.40 in additional franchise revenues. This isn't just for a select few corporate clients. This is what we see across the entire franchise. That is a really powerful multiplier. Furthermore, this is enhanced by the fact that each J.P. Morgan business on this page is a leader in its class. We are unique in our completeness and scale. It takes decades to build this differentiated collaboration model. It is a unique and exceptional ecosystem. What's more important is that we have an opportunity to realize even more value from it in the future. As we've discussed, clients are at the center of everything that we do. I guarantee you're probably sick of hearing that at this point, but it is. It's a fact at J.P. Morgan, and that's including how we select our strategic focus areas. We've shared these themes in previous investor days, and the progress we've made in each area is a testament to our focus. These are not static. We take a deliberate, data-driven approach to regularly evaluate the opportunities in the market. The first one is sponsors. They continue to play an important role in IB activity. Over the past five years, approximately 25% of the global wallet has involved sponsors. Looking ahead, we believe that their $2 trillion of dry powder will continue to drive investment banking activity. With respect to sponsor sell sides, we've grown our share by 90 basis points by deepening relationships with large and middle-market sponsors. Next is private capital. Private capital is another area where we've been innovating to provide value as the market grows for both equity and debt. Our multi-billion dollar direct lending and equity private placements platform have enabled us to build relationship with clients at a pivotal juncture. We support them during this time when they're very young, this often translates to a relationship for life. People don't forget the bank that raised the first amount of capital for them. They just don't. We also recently acquired Aumni, a leading provider of investment analytics, to enhance the value of Capital Connect. While this is still in its infancy, we believe these capabilities will provide significant value to our clients. We're also focusing on international expansion opportunities, just like everybody else. That's gonna be an important avenue for our growth in the future. If you put China aside, the APAC wallet continues to grow. Over the past 2 years, we've deepened our investment bank presence in both India and Australia. Additionally, we focused our corporate banking efforts on multinational corporations doing business in Asia-Pacific. Growth in the Middle East is also accelerating, which is driven by the huge capital inflows. We're already well established in the Middle East, and we're well-positioned to capture the growth opportunity. The focus on international growth expands well beyond the IB. Doug Petno will spend more time on this in the commercial banking session. The final area of focus is carbon transition, which is top of mind for us and also for many of our clients. In 2022, global investment in carbon transition equaled fossil fuel financing for the first time ever. It grew 31% year-over-year to a new record of $1.1 trillion. In this area, we are playing an active role, and we're at the forefront of our industry. In 2022, we achieved a number two global rank in green IB transactions, both overall and for each product individually. Part of our success includes facilitating the financing of more than $120 billion in support of green activities over the past 2 years. This includes the advancement of emerging green economy sectors, which we believe have a profound impact on the global climate trajectory. We're thrilled to be part of this because it's so important for all of us. These focus areas remain key priorities for us. We continue to be inspired by the opportunities they present. We have and will continue to make progress in each of them. In closing, we've been the industry-leading investment bank for over a decade. Our differentiated strengths position us for continued growth. The power of the J.P. Morgan franchise is unique. It creates value for our clients across all of their financial needs. We've made progress on our strategic initiatives and continue to stay laser-focused on growth. We continue to do all of the above with prudent financial discipline. Thank you. Now I'll hand it over to Takis to talk about payments. Welcome to the stage Takis Georgakopoulos, Global Head of J.P. Morgan Payments. Hi, everyone. I'm very happy to be here again this year to talk about the progress that we've made in our payments business. For the record, I did not know we could choose our music. Otherwise, I would have chosen some like Siv Jakobsen or something like that. Let's talk about the payments business and start with an overview of our business. We showed a similar page last year. Obviously, the numbers are a little bit different and a little bit better now. Revenues of $14 billion, up 41% year-over-year. 31,000 clients across the CIB and the commercial bank, almost $800 billion of deposits, and $6 billion in pre-tax income, up 91% year-over-year. In terms of client segments, 50% of our clients are corporates. A third are financial institutions. A little bit more than 10% e-commerce, and the balance are 0.4 million small businesses which make up the rest, the other 4%. In terms of business segments, the majority of our business, 88% treasury services. Merchant services at 9%, and then trade and working capital at 3%. In terms of the split of the revenues on the right side of the page, $8 billion in the CIB and the remaining $6 billion primarily in the commercial bank. Comparing 2021 to 2022, you can see the growth in revenues from $10 billion to $14 billion. Obviously, we were big beneficiaries of the interest rate increases in 2022, which represent the bulk of the $3.4 billion in liquidity benefits that you see there. At the same time, if you look at our gross fees and Treasury Services up more than $400 million, together with merchant up by more than $100 million and trade up by another $100 million, that represents fee revenue growth of more than $600 million, which compares favorably to a $500 million guidance that we gave last year. If you look on the right, all of our metrics continue to trend in the right direction. Our Treasury Services market share, Daniel Pinto already mentioned it, 8.4%, up another 120 basis points compared to 2021, and every other number continues to move in the right direction. We mentioned last year a best-in-class Net Promoter Score from Coalition Greenwich at 50, and this year we further improved on that number, and we remain number one with 54. Someone asked before, where are we on the J curve? I think this is what the right side of that J curve looks like. In treasury services, we were number two in 2017. We are number one in 2022, and we continue to increase our gap to number two. In the middle, the left side, the middle of the page, you can see that we were $700 million bigger than the average of our top three global competitors in 2017. That number expanded to $2.4 billion in 2022, so we increased that gap by a factor of 3. While we obviously benefited from liquidity, and we are a very strong liquidity bank, if you look on the top left, on the bottom left, I'm sorry, on the page, you can see that we outperformed on every metric that you can look at. Core cash, which is a proxy for fees in that business, we grew by 62%, whereas our competitors grew by 30%. Corporates, which is a big area of growth and a big opportunity for us, especially outside the U.S., we grew by 93%, our competitors by 47%. FIG, where we are number one with a big gap to number two, we still grew at 50%, whereas our competitors grew at 34%. That's the past. The right side is our momentum. We do business with 80% of the Fortune 500 companies, including 17 of the largest 20, and 15 of them added more business with us in 2022. Across our broader universe, our mandates with corporates are up by 90%, and our mandates with FIG clients are up by 60% with no sign of slowing down. I'm hoping in a couple of years we'll be able to show that side of the J-curve for merchant services. As we said, merchant services, we said it last year, is on a transformation journey. The challenge of this business, both for us and for our traditional competitors, can be summarized in this graph on the top left. We had healthy volume growth at 13% per year between 17 and 21, but margin compression meant that that translated into only a 3% revenue growth. The way to escape this is by embedding value-added services and new capabilities into our offer. While we know this is not going to be a linear journey, when we look at 2022, we see good signs that our strategy is paying off. In 2022, our volume growth was 17% and our revenue growth, for the first time as far back as we can track, was in double digits. On the top bottom left of the page, you can see how our growth compares to both that of our traditional peers and that of the leading fintechs. On the fintechs, keep in mind that they are 3x or 4x smaller than what we are. On the right side, we sum up, we list a few of our investments. The new unified payment gateway, the way our clients connect to us and our modern APIs are now live. We truly have an integrated offer across treasury and merchant services. A lot of our value-added services are now live, I'm gonna talk about them in a little bit. Data and insights are live and adding value to clients large and small. International expansion, for the first time, we are live beyond the U.S. and the European Union with Brazil and with seven markets in Asia. On the expense side, as we continue to grow our business and we continue to add more volume, we are seeing a modest increase in expenses in 2023. It's primarily driven by wage inflation, regulatory surcharges, some acquisition-related expenses, as well as some volume-driven expenses. Beyond 2023 and into the medium term, we expect that expense growth to slow further down to the low to mid single digits. We continue to invest in our business, our tech teams, our engineering teams are staffed and at scale. As we add more clients and continue to gain more market share, we do expect some volume-related expenses and some structural expenses, but these are going to offset by ongoing productivity gains. We talked about modernization last year, I showed a version of the left side of the page last year, and we continue to make progress in modernizing our major platforms. There was a question, I think, on Graphite, which is now the third largest platform within our ecosystem in terms of payments. We launched it in 2020. We started with real-time payments, which was a new payment flow, and we did that from the beginning natively into the Graphite platform. Since then, we've started migrating low-value payment flows and whole countries onto Graphite. We expect Graphite will be the second largest one after our U.S. platform in the very near future. Our liquidity platform is very close to completion and allows us to win a disproportionate share of RFPs, and we are widely seen as the best liquidity bank in the industry. Finally, while merchant acquiring is still work in progress, and we still have a lot of work to do in terms of modernizing our capabilities, our platform is now live for e-commerce in both the U.S. and in Australia. Two acquisitions, technology acquisitions that we made last year are helping us accelerate that product development. On the right side, you can see our broader ecosystem, where from a standing start in 2021, we now have more than half of our applications on a modern stack, either on the cloud or on-prem, We expect to continue to modernize and improve that picture into the medium term. I talked about the need for margin expansion in the acquiring business, This is a theme across everything that we do. We start from our strong foundation. We've spoken many times about the $10 trillion that we move every day, our capabilities, our controls, and our global reach. We work on how to expand that to address evolving customer needs. We do that across four pillars, which you see on the right side of the page. Starting from the bottom, product innovation. Payment products are not static. On the treasury services side, we see real-time payments around the world. On the alternative, on the merchant acquiring side, you just saw Paze, and we're gonna go live before the end of the year also with Pay by Bank with our partner, Mastercard, for particular use cases. The JPM Coin that we've mentioned before in 2022 was moving $1 billion a day across our payments and our markets franchise. Moving on above, we are also externalizing the capabilities that we have as a service for our clients. We have a couple of use cases that I'm gonna talk about, effects as a service, data as a service, and security as a service. On top of that, we customize and configure those capabilities with specialized software addressing the needs of particular industry verticals. In healthcare with InstaMed, where we've doubled the revenues over the past few years, mobility through the acquisition of VW Pay, and e-commerce with a fully proprietary stack, among others. This is what we do for our clients. On top of that, embedded finance solutions allow us access to our clients' clients, both creating margin for us and allowing us to access a whole new customer base. We're gonna talk a little bit more about what that looks like. I'm gonna take a few examples, as I mentioned, starting from how clients connect to us. J.P. Morgan Access on the left side of the page is the number one digital platform in the industry, with more than 30,000 profiles and more than 6,000 users. Access has helped us generate hundreds of millions of dollars from data products that we provide to our clients, with a 9% growth rate over the past 5 years. That we expect will accelerate going forward as we bring in new capabilities, and you can see some of them on the bottom left, better service tools, AI-enabled value-added services, and connectivity with leading ERP systems, and you may have seen an announcement we made last year with Oracle. Treasurers and finance departments that are using Access are not the only decision makers in our industry. Developers who are heavily involved in solutioning and integration are becoming an important part of decision making, especially for our more tech-savvy clients. That is a segment that historically was not well served by banks, where the APIs tend to be subpar and the customer experience in some boxes tend to not be great. That's why we are launching our new development portal later this year, which we believe will be best in class. It will allow developers to quickly discover, test, and deploy our API capabilities with an open and secure sandbox environment. This way, they can get access to all of our payment rails across treasury services and merchant services through one global API. The second set of data products comes from the breadth of what we see in our payments business. It is a conservative estimate to say that we see more than 50% of all U.S. bank accounts. We also see more than 1 billion-dollar cards, and we have internationally the largest correspondent banking network in the world, with access to thousands of banks in all countries, large and small. We are also testing biometrics and digital identity, and obviously we have access to a large number of third-party data providers. The way we use that information in the middle of the page is first, we embed it into our payments data lake, which is cloud native and which contains all of our information. number two, we tokenize that information so that we can track both, an encrypted version of someone's bank account or someone's credit card, and also the path, meaning the past payments, origination and destination, that, these payments followed. Number 3, obviously, strong data governance and controls dependent on use case so that all of the data is appropriately encrypted, depersonalized, and aggregated as makes sense. On the right, you can see 4 of the use cases that we have today. number one, validation services, which gives clients the ability to pre-validate a payment before they make it for accuracy. On that product, we went from zero to 200 clients in less than 2 years in the U.S., and we are expanding the same capabilities internationally by using the Liink network from Onyx. number two, optimization tools for merchant acquiring. As you saw, we are the largest merchant acquirer in the U.S. by volume, and we use that information to improve authorization rates and reduce fraud rates, which we do for hundreds of large clients. Number 3, consumer insights. Through a great partnership with CCB, bringing together issuing data and acquiring data so that we can help our customers to better understand their own customers, once again, in an appropriately anonymized way. This is now available to almost 200,000 small businesses. Finally, instant identity verification, the ability to use face and palm biometrics, and the ability to onboard and validate the identity of someone, both in the U.S. and internationally. FX is the third use case that we're gonna talk about. We have the best FX franchise in the world in markets, and we have a very strong partnership and joint investment with markets to continue to improve that. As you can see on the right, we've grown our revenues by double digits every single year over the past 5 years. We continue to innovate and we think that there is a new set of opportunities to bring FX as a service to our clients. Think of two use cases. One, large corporates, marketplaces and e-commerce companies that need to make millions of low-value payments cross-border and are looking for someone to provide them FX embedded as part of that payment transaction with very high STP rates and a transaction that can be confirmed in minutes. That's what Global Masterpass does. Second, think about banks. Traditional banks are SWIFT-based and want to compete with fintechs for low-value payments and remittances. We provide white label solutions that allow them to deliver that. Fintechs and digital banks have compelling front ends, but don't necessarily have access to the last mile system. We are helping them compete with the traditional banks. We think the combination of those two things will help us continue on the double-digit trajectory. We expect to go above $1 billion across payments in markets over the next couple of years. Our innovation is particularly relevant for all aspects of multi-party commerce in which buyers and sellers interact on a platform. This is not limited to e-commerce, it's also relevant for other industries like retail, mobility, and independent software vendors, which are companies that serve specific industries. The top left chart, we showed a similar version of that page last year. Last year's point was that there is a lot to do and we have a lot of work in progress. This work is largely done. What we see is what we expected, only a little bit better. We see extraordinary higher client demand. We see much higher take rates than in our traditional B2B business. To give you an example, on the left side of the page, on the payment acceptance side, we see a three to 4x margin expansion driven by payment optimization and the incorporation of new payment methods, including omni-channel. On the right side of the page, the ability to manage payouts and split and deliver payments through our Global MassPay infrastructure that I mentioned also helps us see a three to 4x margin expansion. The things that are in the middle, the ability to onboard and offer wallets to the participants of that marketplace, opens up embedded finance opportunities and the ability to add new revenue streams, not just for ourselves, but for the marketplace operators and our clients as well. Of course, no payments presentation would be complete without a couple of videos. I'm the only one in the CIB with videos. We are going to start with one. It's a short product demo teaser that shows how we talk to our clients about embedded finance. Your online experience generates millions of financial transactions every day. What if you can monetize these touch points as part of your offering? Introducing J.P. Morgan Embedded Finance Solutions, an innovative way for you to embed financial solutions directly within your platform. Offer an online business account, numerous payment capabilities, debit cards, and many other account features all within your platform or marketplace. Your customers can seamlessly create an account for their business in minutes. Once their account is live, they'll have an online business account with no minimum balance requirements, real-time access to their funds, and the ability to send and receive payments. Powerful analytics provide deeper insights into customer trends, enabling you to develop new products and services. The best part is you don't need to know anything about banking. We handle Know Your Client, customer onboarding, and due diligence for you, so you can focus on what you do best. With J.P. Morgan Embedded Finance Solutions, we give you the tools to help your platform grow and your customers thrive. We have various versions of our value proposition, depending on how much the marketplace wants to do on the financial side or not. We are live with five clients, including a couple of very large ones. We have 2 dozen in pipeline or in mandates, more than 100 in ongoing conversations. Our biggest constraint in this part of the business is scaling our infrastructure end to end so that we can deliver for the scale and the type of SDP that these clients are looking for. What you saw before was the e-commerce side, but a lot of our clients also have brick-and-mortar stores, the ability to serve omni-channel is very important for our clients. Let me show you another example of how we work with one of our clients to deliver these omni-channel experiences. Let's explore one frictionless omni-channel journey with our client, Sephora. Sephora is a leader in omni-channel experiences and is obsessed with teaching and inspiring their loyal customers to play in a world of beauty. Let's see how payments play a role every step of the way. Meet Emily, our shopper. Emily sees an influencer post and loves the look. She picks her shade and is presented with multiple ways to pay. Emily can also sign up for auto-replenishment, get same-day delivery, or pickup in store. Emily really wants this today, so she pays through the app and selects pickup in store and heads over to Sephora. When our shopper Emily enters the store, she's greeted by Sephora beauty advisor, Rebecca. Rebecca retrieves Emily's purchase and recommends a popular gel cleanser. She tells Emily she can skip the register and checkout line with tap to pay. Emily loves the recommendation, has her phone handy, and is ready to check out with Rebecca, gladly skipping the line. Emily's order is complete with just a tap. J.P. Morgan helps Sephora unify payments across channels to power personalization, all powered by the trust and innovation of J.P. Morgan Payments, empowering omni-channel businesses to thrive. This is one version of our omni-channel value proposition. I saw a lot of you tried outside. We also have the biometrics version, where you use face recognition to do exactly the same thing, so you don't need to use neither a credit card nor your phone. To be fair, some of the things that you saw in this customer journey are things that some of our competitors, I would say a handful, actually can do. Keep in mind that these are just the leading fintechs, and they have a much higher take rate than ours. At a minimum, this allows us to compete head-to-head for that higher margin business. If you look more closely, there are a number of areas in which we are differentiated from them. Number one, we are among the first, at least in the U.S., to launch tap on phone and biometrics. Number two, we offer shopper recognition across channels, but also across brands that are part of the same family. We offer the ability for personalization on the back of the incredible amount of data and information that we have. Number four, we offer lower fraud and higher authorization rates because of our optimization capabilities and because of ChaseNet. We have more to do, but we think we are in a very, very good place already. The biggest differentiator of all for us is, of course, being part of J.P. Morgan. I'm not going to repeat what Jim already covered really well. I'm just going to talk about three things that are especially important for payments. Number one, being part of that one client strategy with the investment bank, with the corporate bank, and with the commercial bank, allows us to think strategically about the client needs and also innovate and deliver solutions that addresses their future and their pain points. Number two, because payments is a day-to-day activity, that allows us to stay engaged with the client on a day-to-day basis, help them optimize, help them grow, help them expand internationally, and maintain a profitable relationship with the firm until the next episodic transaction comes. Number three, we are fortunate to be part of a number of partnerships across the firm. I already mentioned markets, and I mentioned the data and analytics partnership with CCB. We also have many others, including small business with Ben and how we work with the payment networks. Let me now summarize where we are and talk about our revenues going forward. On the left side of the page, you can see a mark-to-market on what we talked about last year, and partly through the rapid rate rises, we outperformed on all of them, with the exception of a couple of things that we said we will achieve over time, and where we are on the right trajectory, but we still need more time, like the 10% TS market share and the 15% merchant services year-over-year growth. We are on track to achieve all of those. On the right side of the page is a revenue walk. We start with the $14 billion for 2022. Then on top of that, we have the annualization of the impact of rates, which is a significant tailwind for 2023. Then the organic growth, which we have no reason to believe will be any different or any less than what we achieved in 2022. That takes us to a 2023 outlook, which is well above the $15 billion that we talked about last year. Going forward and looking into the medium term, there are two components. One component is the impact of rates going forward. You heard it from Jeremy, it's uncertain, but given the expectations of a slower economy and lower interest rates over time, that's gonna be a headwind for the business. Conversely, we expect our organic growth to continue to accelerate from that $600+ million of 2022, as we are hoping that we will monetize our investments in merchant services and continue to grow our treasury services and monetize our multi-party commerce capabilities. In a normalized environment, with balanced growth resuming, we believe that that number can reach $1 billion per year. Overall, a lot more upside and a lot more opportunities in this business. Normally, at this point, I would talk about, I would have a page on Onyx, but this year, as you've heard, a lot of what Onyx does is already embedded in our business. It remains the leading blockchain franchise. You heard about the JPM Coin at $1 billion a day. Programmable money is the next frontier on how to use digital currencies. Partior, the only multi-currency clearing network in the world, live in Singapore, uses the Onyx technology, and we continue to make progress in a number of those use cases. Finally, just to summarize the payments business, record revenue growth, great client momentum, and the expectation of continued growth going forward. number two, our scale, security, and controls have earned the trust of our clients. We are there for them in good times and bad times, and we will continue to do that. Number 3, I hope you will agree with me that we build and innovate like a leading tech company, but we do it with the scale and with the controls that you would expect from J.P. Morgan. Number 4, the innovation that we are bringing to the market in both treasury and merchant services, we believe will really drive margin expansion across our businesses. Number 5, we are, of course, blessed to be part of J.P. Morgan and benefit from that incredible franchise. With that, I'll pass it over to Daniel to close the CIB presentation. Thank you. Before we go to closing, let me give you a bit of color and guidance on the second quarter. IB fees. As you heard from Vis and Jim, the market continue evolving, continue being a challenge. What we are seeing at the moment, we are expecting our revenues, IB fees in the second quarter to be down around 15%. In markets, we saw increased volatility by the end of March. That volatility has come down. Also we are comparing this quarter with a very, very strong quarter of 2022, second quarter of 2022. Also in markets at this stage, we expect our forecast for the quarter is also around 15% down year-on-year. To close out, I wanna mention a couple of things. You can have, when you hear the power of this franchise, you should agree that we are very well positioned as we were in the past to outperform our relative basis going forward. We have great relationship with our clients, and we have everything we need to succeed. We have great talent, financial resources, product offering that is very, very complete. There are some challenges ahead on the economic front and geopolitical front, but normally we do well in those environment. There are opportunities as well, digitalization, AI, carbon transition, the evolvement of The market attraction are a structure are opportunities, and the competition is strong. That forces us, and we always been, to be very focused in retaining our talent, not being complacent and really fight bureaucracy. Our strategy work, and we are not going to change it. In the way that we think about our business, essentially is in three pillars. How we maintain the discipline of how we manage our day-to-day. That means expenses, how we manage expenses, risk, both credit, markets and other risks. How do we have the best possible talent, how we interact with our clients. Our day-to-day business is core, and the discipline around that is very important. Second one, more in the next couple of years, is all about how, even if we don't change anything at all, how much opportunities exist within the existing business model and that we are running. There are plenty of areas for growth and plenty of areas where we are not as good as we should be, so there are opportunities in there. We're always looking at investment, investing for the future. We are modernizing our technology platform. We are investing in new technologies. We are testing new things all the time for the future. We feel very good about where we are. In terms of return on equity, like 2022 was 14%, but we feel that through optimization and growth, we will be able to deliver through the cycle our 16% that is our. It was our guidance last year. I will stop here, and we have a couple of minutes for Q&A. One follow-up and then one kind of longer-term question. Just first on the guidance of trading down 15% year-over-year. Any additional color in terms of what's happening in FIC versus equity and any key themes that you feel like investors are trying to play now that they weren't, you know, a few months ago? All right. Troy, do you wanna take that one? Sure. This is working. Yeah. In FIC versus equities, it was an extremely strong Q2 of last year in both. We're seeing a similar performance. We'll see how the quarter finishes out. It's a little too early to predict because there's a lot going on. In terms of themes, it's really, debt ceiling is the short term. When you get past debt ceiling, because I think most market participants expect some form of resolution, but we'll see. It's predominantly where is the Fed going, where is inflation end, what is the upcoming recession gonna potentially look like? I think that's the major theme driving risk assets now. That makes sense. Daniel, you mentioned in your prepared remarks that, you know, you lost a little share in FIC last year. Part of it was mix, part of it's just ebbing and flowing, but that there were a couple areas that you underperformed and that you're addressing that. What were those areas and, you know, anything specific to call out why you underperformed or what you're doing to fix it? Thank you. Troy again. Here we go. Sure. You know, look, our franchise is incredibly strong. Daniel mentioned the more market structure ones. One of them is commodities. We sold our physical business in 2014. We have no plans to reenter into physical oil or physical energy. The natural gas business we have been reinvesting in. We think that's a place that we'll continue to see growth as we continue to see our investments play out in the next couple of years. While we do expect it to normalize, we don't think it will go back to where we were in previous years pre-Ukraine. Other areas are rates. We feel we had some underperformance there, particularly around some one-off transactions and inflation in other places. Overall, the franchise is very strong, so these pockets of underperformance are quite small. They're client-by-client combat. We're very happy with where our overall client franchise is. That continues to be extremely strong, and that's really the bedrock to our business. We'll attack these small underperformance areas individually, either by client or by specific opportunities. We have an investor down there in the blue shirt. Daniel, can I pick up on the comment you made earlier in terms of FIC share headwind... Yeah. Coming from European Bank resurgence, if I heard you right, can you talk about whether that will continue to be a headwind? Maybe as a follow-up question, more broadly across the CIB, what opportunities do you think might come up as UBS integrates Credit Suisse? On, I mentioned in my presentation that in my view, the trend of wallet consolidation that we see into the bigger players is it may not have a bit of a detour, but it's not a change in trend. The reason why I think that is the following. When you look at these businesses, they are very, very expensive to run. Obviously, the wallet has increased, and then when the wallet increase, you get some of the competitors, some in the U.S. and some here, investing a bit more heavily. In my view, at their market share, at their scale, they're still not crossing the cost of capital. I think that this trend, unless the wallet really continue to grow, which is not our belief, we think that the wallet from here will grow more or less in line with GDP. It's very likely that in the long term or in the medium term, these competitors will not be able to maintain the level of investment and the trend of consolidation will continue. The second part of the question was? I think that probably whatever was going to happen, that's already happened. I see this as an issue of the past, more than an issue of the future. Okay. Ebrahim Poonawala down there. A question. I think Vis mentioned that there's $6 trillion of debt coming up for refi over the next 3 years, 4 into. One, just talk to us about the health of the customer, the sovereigns or the corporates. How worried are you in terms of as that wall of maturity comes, we see significant credit issues over the next year or 2? I think that the following. One of the areas of concern, more in the medium term, is debt sustainability of countries. When you look at in the last several years, let's say the last 30 years, debt to GDP has increased by 40 points or something like that. Just to normalize the increase, to move the debt to not grow anymore, you have to move or to move to a level that it was in 2019, it requires a contraction of fiscal deficit of almost 5 points in the developed world, which is not going to happen. Essentially, when you think about the amount of debt that exists, the geopolitical tension that will change the demand function of who is going to buy or not that debt. I think that is an area of concerns. I think that corporates at the moment, there are certain areas where there is a bit of a challenge, as Vis mentioned and Gene mentioned, because they have a lot of refinancing going on. I don't think that there are elevated levels of leverage that considering normal market conditions will not allow these companies to refinance in normal, in normal conditions. I think there are more concern about the sovereign side than the corporate side. Okay. Our last question will be from Charlie Peabody right there. Just trying to reconcile your full year forecast. I'm talking about markets, revenues. The full year revenue pie dropping like 4%, I think, is what you put in your slide. Yet here in the second quarter, you're gonna be down 15%. Are you expecting a back half pickup in trading? If so, why? It seems to me that the MOVE Index is starting to normalize. Central banks are starting to get towards their terminal rates, so less volatility is expected, certainly in FICC trading. Well, I strongly agree with that. Obviously central banks are normalizing. When I look at markets today and look at valuation both in credit and equities, they are not aligned with the environment that we are in both of the classes. We have a period now of low volatility, but I don't think that that situation will stay for the rest of the year. Therefore, we are expecting the opposite. We're expecting higher volatility as central banks get to the tail end of this and markets see, well, probably inflation hasn't come down enough or valuations considering the outlook of interest rates in the medium term, they are not what it should be. Essentially in our view, we will have more volatility going forward. All right. That's it for Q&A. Those of you who are having lunch with us, you should have received an email. It says, "Dear blank." Don't worry, it's not a Dear John email, but it does have your seat assignment on it. If you make your way to the 42nd and 43rd floor, you'll find your table seats. Thank you. We will now break for lunch, with presentations expected to resume at 1:30 P.M. Please make your way out of the presentation room and up to the 42nd and 43rd floors. Our event staff will be happy to help direct you. Please welcome to the stage Doug Petno, CEO of Commercial Banking. I haven't even said anything yet. Welcome back. Good afternoon. I want to definitely add my thanks to all of you for joining us today. 2023 has certainly been a dynamic year so far. Through all of it, commercial banking has continued to execute against our strategic priorities. The business is performing extremely well. There are tremendous growth opportunities ahead for us. Perhaps most importantly, we are well-positioned to manage through the evolving market backdrop. There's a lot to talk about. It's great to be here to update all of you. As you know, our strategy is anchored on being the most important financial partner to our clients. To that end, we have kept our focus on acquiring great clients and building deep, enduring relationships. Though market fundamentals have continued to shift, our strategic priorities remained exactly the same. We're investing across our franchise to create powerful client solutions and to build operating processes to deliver the best client experience. We're harnessing our tremendous data assets, empowering and enabling our teams, and we're driving organic growth. As this year unfolds, the disruption in commercial banking has changed our competitive landscape, and it's highlighted the relative value of our franchise. Complex markets play to our strengths. As you will see today, momentum is building across our business. I want to take a moment to share why we're so excited about First Republic Bank and Commercial Banking. For us, this is an opportunity to deepen our presence in several high-growth markets, and it lets us now deliver our entire firm across their tremendous client franchise. In addition, we expect to benefit from their exceptional client service model and track record of strong credit performance. First Republic's credit portfolio has a sizable overlap with our multifamily term lending business. It's operating in a lot of the same markets. While we still have much work to do, our integration is going as planned, and we're confident in the synergies between our two businesses. For commercial banking overall, being a part of JPMorgan Chase gives us a tremendous competitive advantage. We face our clients as one institution with unmatched global capabilities and real economies of scale. In each of our presentations today, you will have seen the strong connectivity and adjacencies that exist across each of our lines of business. For example, last year, there were significant client referrals between commercial banking and private banking. Over 90% of our C&I clients use our payment solutions. Over a third executed an investment banking transaction, and almost half visited a local branch. Moreover, commercial banking has benefited by following right behind our consumer branch expansion, getting a lot of value out of their small business franchise, as well as their physical presence in our communities. Across our firm, we are knit tightly together, and it is this alignment that offers an unmatched value proposition for our clients and supports our strong financial performance. We've organized the business to ensure a dedicated focus on important segments of the economy. In C&I, we have two distinct teams. Our middle market business covers companies from early-stage, high-growth startups to traditional mid-sized companies. Our corporate client banking business serves both U.S. and non-U.S. headquartered corporates, generally with revenues in excess of $500 million. Overall, we have 18 specialized industry teams focused on important sectors like technology, healthcare, and government. Across these two businesses, we have over 1,700 bankers in almost 160 cities spanning 27 countries. Together, they are actively calling on about 25,000 clients. Perhaps what's most exciting is the significant organic growth opportunity that remains ahead for us. We are executing a data-driven strategy with our teams calling on almost 50,000 prospective clients across our footprint. Last year, we entered into seven new high-potential markets and hired over 100 bankers. Our client acquisition is accelerating, and in 2022, we added a record number of new C&I clients. In commercial real estate, our franchise is designed to perform through the cycle. All three of our commercial real estate teams have deep sector expertise, and we are very disciplined in our market, client, and asset selection. In commercial term lending, we're the number one multifamily lender in the United States with nearly 30,000 clients. This gives us a huge scale advantage with the business built around exceptional credit and a highly efficient operating model. In community development banking, we deliver capital to support affordable housing projects in some of the most critical neighborhoods across the country. Last year, we were a top three affordable housing lender in the United States. Finally, real estate banking. Here we serve the best investors and developers of larger scale commercial properties in very targeted markets and asset classes. Our growth across commercial real estate has been highly selective, deliberate, and disciplined, and we believe this positions us well for any potential stress in the sector. In both C&I and commercial real estate, we seek the best clients in industries and markets that we know and understand. Our performance has been excellent. As you saw in our Q1 results, revenues were up 46% year-over-year. While we did benefit from a more favorable rate environment, we also had meaningful growth in payments fee revenues and investment banking year-over-year, as well as strong revenue growth from newly acquired clients. With ongoing expense discipline, we maintained high operating efficiency with a 37% overhead ratio, even while making significant investments in our franchise. We delivered strong returns with an 18% return on equity. Since we never measure our success in quarterly increments, let's look back over the last decade. If you do that, you can clearly see the impact of our strategy and the absolute strength of our franchise. We have gained share across our business. We have delivered core operating deposit and high-quality loan growth. We have significantly increased our payments fee revenues, reaching a record of almost $6 billion last year. We have steadily increased our investment banking revenues. Overall, commercial banking continues to perform well in a complex competitive environment. For as proud as we are of these results, we're taking nothing for granted. We have a tremendous and growing addressable market. We're making the strategic investments to best serve our clients and to further differentiate our franchise. We are on offense, and we believe we are well-placed for outsized share gains over the near, medium, and long term. A standout example of our organic growth potential is our successful strategy to build a national middle-market business. We started the expansion effort back in 2010, and since then, we added 63 new locations. We are now local in 78 of the top 100 MSAs. Nationally, we're calling on over 45,000 prospects, with over half of these potential new clients sitting in our new expansion markets. At last year's Investor Day, we doubled our revenue target for our expansion effort from $1 billion to $2 billion. Momentum has continued to accelerate, while it took us 12 years to hit this first target, we expect to hit this next target in the very near term. What's really exciting is that we're just getting started. Achieving a top three share in each of our markets is a multibillion-dollar opportunity for us. With the foundational investments we've made largely in place, as we grow, we will achieve significant operating leverage over time. In addition to our domestic growth efforts, we continue to invest in our cross-border capabilities and expand our international presence in several key markets. The globalization of financial services across our client franchise is a powerful secular trend, and it's been accelerated by digital payments, increased cross-border investment, and growth in global trade. Many of our clients transact in markets outside their home countries or have locations or strategic partnerships in other locations. Unlike other commercial banks, we can offer clients of all sizes streamlined global solutions across every stage of their international growth journey. In addition, as you know, in 2019 we launched our efforts to cover mid-corporate companies headquartered outside of the United States. We're taking a long-term view focused on only the best companies, We now have bankers covering over 500 clients, 2,000 prospects across 24 countries. We're excited about the significant expansion of our global capabilities and platform, Given the powerful trends underway, we expect this to be a significant growth driver for us. Okay, with the recent and dramatic changes to the banking landscape serving the innovation economy, I want to update you on our strategy to be the most important financial partner across the entire venture capital ecosystem. In recognizing that innovation is a critical economic growth driver, we have been steadily building upon our innovation economy commercial banking business. While there was a long-standing incumbent competitor, we believe that our platform and our capabilities position us to take high-quality share over time. As you can see on the bottom left, we have made real progress over the past several years. With the market disruption since March, we have seen a tremendous influx of new clients, onboarding thousands of innovation economy companies over the last two months. Along with these new clients and their substantial deposits, we now have the opportunity to provide them with our full suite of capabilities. Looking forward, we have a real opportunity to support this sector and fill a real market need. To do that, we are going to accelerate our growth strategy and step up our investment, significantly expanding our support teams and bankers focused on startup banking, venture capital coverage, risk, and early-stage lending. This opportunity is quite exciting, and our focus on founders and innovation across JPMorgan Chase positions us to be the leader in this important sector. Similar to venture capital, private equity continues to be a large market opportunity in commercial banking. Globally, there's over $1.2 trillion of dry powder, and the number of private equity-led transactions within the middle market remains quite high. Along with our partners in the Investment Bank, we are well-placed to serve this sector. We have an extensive reach across 22,000 terrific middle market companies, we have dedicated teams focused on private equity coverage, direct lending solutions, regional Investment Banking, and middle market M&A. Delivering the number one Investment Bank to Commercial Banking clients is a powerful part of our value proposition. Our Investment Bank deepens the strategic dialogue that we have with our clients, it completely separates us from our traditional commercial banking competitors. This partnership continues to be highly successful, if you look back over the last 10 years, you can see both our steady growth as well as the unbelievable upside potential that exists when markets are active and vibrant. Going forward, we see several significant opportunities to build upon our success together. As our commercial banking client franchise expands, the addressable market for the investment bank grows, especially across the middle market and internationally. We are going to continue to invest in our regional investment banking capability to better serve middle-market companies. We're expanding our teams focused on high-potential sectors like private capital, healthcare, and the green economy. Just like investment banking, our comprehensive payment solutions are also a key competitive advantage. The investments Takis is making in our platform and capabilities support our goal to be our clients' primary operating bank. This allows us to build deep, enduring relationships, which are foundational for gathering and retaining core, stable operating deposits. Last year, I spoke to the substantial payments opportunity and our significant near-term revenue potential. As you saw in our first quarter, commercial banking's payments revenues hit $2 billion, up almost 100% year-over-year. As I mentioned, this isn't solely driven by rates or elevated market liquidity. In fact, almost 30% of our 2022 middle market deposit balances were generated by clients we've acquired in the last 5 years. We're also seeing substantial growth in payments fee revenues across core cash, cross-border payments, and commercial card. With deposits, there are a number of forces at work, including rising rates, clients that are seeking higher-yielding alternatives, questions about uninsured deposits, and the impact of quantitative tightening. However, we've not seen anything atypical in our deposit flows, and we believe that the stability of our core operating deposits and the market's overall flight to quality should insulate our deposit balances. Let's now look at our lending activities. In C&I wanna highlight that we don't grow loans just to grow loans. We deploy capital strategically to support our clients. In fact, only 25% of our middle market clients actively borrow from us. While competition for high-quality assets remains high, including from direct lenders, we are finding attractive opportunities to lend, and we continue to price and structure with discipline and for underlying risk. In commercial real estate, we are watching market fundamentals carefully and maintaining our strict underwriting criteria. As this year unfolds, we're seeing a significant reduction in purchase activity and overall loan demand, with Q1 commercial real estate originations down almost 70% year-over-year. As always, credit discipline remains core to our strategy, and our C&I and commercial real estate loan portfolios remain strong, with C&Is of less than 5% and a net charge-off rate of just 6 basis points in the first quarter. While our credit metrics are stable, we are actively monitoring our portfolio to identify any emerging risks or potential signs of stress. In C&I, notwithstanding the broader market uncertainty, we feel very good about our current exposure. It's diversified across geography and industry, well-structured with 88% of our non-investment-grade risk being secured, and it's been underwritten with through-the-cycle discipline. While credit fundamentals across our C&I portfolio are strong, we are carefully monitoring market conditions and have prepared a detailed downturn readiness playbook. We're working very closely with all of our clients that have been impacted by signs of consumer weakness, higher interest rates, and higher input costs. Likewise, in commercial real estate, we remain confident in the quality of our underwriting and our portfolio overall. As I mentioned, we've been very intentional about lending against assets and in markets that have strong through-the-cycle performance. We have a very seasoned team of risk professionals and appraisers with understand our markets and fundamentals at a very granular level. Separate from other commercial banking peers, the majority of our portfolio is in our multifamily commercial term lending business, where we work with high-quality investors with proven track records. The rents on the assets that we're financing are meaningfully below overall market average rents. This provides us a buffer in an economic downturn. The loans are secured by stabilized properties and highly granular, with the average loan size of about $2 million. Outside multifamily, we are closely monitoring our office exposure. For us, office remains less than 9% of our total commercial real estate portfolio and less than 5% of our total loan portfolio. Importantly, it is predominantly against Class A buildings and supported by top sponsors in the industry. As we consider rising rates, the prospect of more stress amongst the regional banks, and the overall economic outlook, we are well prepared and believe we are appropriately reserved for a range of sector outcomes. Looking forward, as strong as our franchise is, we are not standing still. We're making the long-term strategic investments to best serve our clients and compete in the future. As you can see on this slide, our 2022 expenses increased 17% as we made significant investments in our organic expansion as well as our platform and capabilities. If you look at our volume and revenue related and structural costs, both are in line with the strong revenue growth and momentum that we're seeing across the business. As this year plays out, with market disruption and the shift in our competitive landscape, we have substantially heightened our new client acquisition. To accommodate this growth and rebalance the business and to accelerate our innovation economy banking efforts, we're adding incrementally higher front and middle office support than we have in prior years. Given the near-term revenues associated with this effort, we expect to maintain our overall revenue, our overall overhead ratio target. In addition to expanding client coverage, another high-confidence investment is our strategy to become a truly data-driven commercial bank. We're making great progress and have combined our existing data with multiple third-party data sources into a single scalable data asset that provides an extensive 360-degree view of both our clients and our prospects. Moreover, we're maintaining our data in a manner foundational for the application of large language models and scalable AI. This work is quite exciting, and we're leveraging our data at scale to provide clients with unique insights and predictive analytics, to enhance our risk decisioning and portfolio management, and to enable our bankers to better understand our clients' needs and preferences. A key for us to developing deep enduring relationships is having our bankers cover our clients in a highly differentiated manner. We do this by ensuring that our teams have the data and analytics, training, content, and tools they need to best serve their clients. Investing to both empower and enable our bankers is driving real benefits. We have smaller client teams, shorter sales cycles, and improved banker productivity and break even. In fact, middle market banker productivity has increased over 15% just since 2019. We also continue to make excellent progress with our work to optimize our clients' journey across every single touch point with us. We're investing in our operations and platforms to drive simpler, more efficient, more intuitive digital-first experiences. To do this, we have dedicated teams focused on KYC, client service, client onboarding, billing and pricing, as well as credit and delivery. Beyond a meaningful improvement to client experience, our work is freeing up banker capacity. It's increasing our competitiveness, and it's reducing risk and expense. A significant factor in our strong operating efficiency is our relentless focus on the unit cost of these activities. Since 2021, we have decreased client service inquiry volume by 10%. Implementation cycle times have come down by almost 15%, and we've reduced the cost of a service inquiry by about 7%. Looking forward, we are clearly seeing the compounding results from our sustained investments and continue to make steady progress against all of our financial targets. In middle market expansion, we are keeping our $2 billion revenue target for now. As I highlighted, we have that target in our sights and see several billion dollars of upside potential across our new markets. For our international platform, which remains a key differentiator, we are working towards our $1 billion revenue target. This too is well within reach. For investment banking, with the growth of our client franchise and our focus on several high potential sectors, we're keeping our $4 billion revenue target. For commercial banking overall, we expect an 18% return on equity and a 40% overhead ratio through this cycle, even while making significant investments in our franchise. To wrap up, I hope it is clear why we're so incredibly proud of commercial banking. We have an outstanding and growing client franchise with actionable opportunities across our entire business. We have real competitive advantages being a part of JPMorgan Chase. We continue to deliver strong financial results with diversified recurring revenues. We are prepared for a wide range of economic scenarios, and most importantly, we have an incredible team. I wanna take a moment to acknowledge and thank everyone in commercial banking. Since March, they have poured their heart and soul into supporting thousands and thousands of new clients, and they've been absolutely tremendous. This is the team that is executing our proven strategy, working hard together every day to help our clients succeed, to extend our market leadership positions, to drive high-quality growth, and to take a long-term, disciplined view. With that, I'd be happy to take any questions. Thank you all very much again for being here. Chris Kotowski back there. In the prior one, the topic of direct lending came up, and you touched on it kind of tangentially. You know, if you look at corporate finance generally over the last decade, that's probably been one of the biggest changes in that, you know, the alternative asset managers are bringing hundreds of billions of dollars to market. I'm just curious if you can talk about what is JPMorgan's approach to alternative credit, direct lending, private credit, whatever you wanna call it? How do you raise those fund vehicles? You know, how do you integrate that offering into an investment, you know, banking platform? There was a lot in that, better late than never. It's half the C&I loan market. You're right, it's really taken off, kind of came out of for the last decade of having low rates and having investors seeking floating rate and yield exposure. We have, as you've just heard, an incredible middle market client franchise. It gives us a window into a tremendous volume of high-quality lending opportunities. What we noticed when we looked at the direct lending competitors and their book of business is a lot of those loans we would've made. We put a dedicated team of risk professionals, bankers, and debt capital markets together, focused on a select group of private equity sponsors, and we have a several billion dollar direct lending portfolio that we built all on balance sheet. We are working on ways to create a pool of capital, third-party money, but that's, you know, we haven't completed that work yet. Right now, we're active in the market supporting our targeted private equity clients within our. I'd also like to underscore that our credit box is very finite, very focused on longstanding clients, companies, and industries that we know well, not deep cyclical companies that won't tolerate those types of loans. We have a question down there from Ken Usdin. Thanks. Hey, Doug, you mentioned the concern about uninsured deposits, I'm just wondering, you know, inside your franchise, since March, how'd that discussion go? How far down does that go into the client base? What's the solution set that you brought to your own clients in terms of that? I guess also, if you could also answer what kind of inflows did you see as a result as well? I don't know, Jeremy, if we've disclosed the total inflows? I think. Yeah. Only on an aggregate basis. Yeah. A lot. You know, we've had clients whose boards and CEOs have sort of said, "Hey, where are our, where are our deposits?" Oftentimes the question sort of dies when the answer, it's, they're at JPMorgan Chase. No question that people are gonna wanna make sure they have diversified operating accounts at other banks, just given what many companies lived through in the last several weeks. We have liquidity sweep capabilities that allow clients to sweep into Mary's business. In fact, the biggest outflow out of our deposit portfolio is Mary's money market complex. I think when our clients realize that they're at J.P. Morgan, and they need their core operating deposits with us, and that they have sweep capability into higher yielding alternatives, most of which land with Mary, it's not a issue that's... It's not a drumbeat that's that loud for us, just I think given the combination of all those factors. Okay, we got a question down here. You mentioned office lending as an area you're monitoring closely, but outside that, across both CRE and C&I, what are you monitoring most closely for signs of potential stress? I mean, I touched on it. There's no real sort of standout part of the economy that's really suffering a lot of stress right now. Anything that's with higher input costs, higher labor costs, you know, healthcare is a standout example. If you look at the unit cost of nursing, it's gone up exponentially since the pandemic. some of our healthcare clients are facing margin pressures, not to the point where, I mean, maybe it affects their overall credit standing or margins overall, but not to the point of distress. As you heard from my comments, there's not a lot of stress in C&I, and honestly, for us, not a lot of stress in CRE, but it really revolves around higher input costs, higher labor costs, higher interest rates, and some emerging signs of consumer shifting of their preferences more than it is weakness. Okay. one last question from Scott Siefers down there. Maybe just a little bit of an expansion, I guess, on Ken's question. When you onboard these new clients that have come over, particularly over the last couple of months or so, what are you finding that they're becoming? There's sort of a range of outcomes from just they're diversifying their options to you could become their primary account. What are they manifesting themselves into? Well, the obvious objective is to be their primary operating bank. It's all kind of playing out. I mean, I think the early data would suggest that's, in fact, the way it's gonna play out. I mean, I think that those companies were desperate to move their money, and being at J.P. Morgan is a relief for them. The more we work with the thousands and thousands of new clients, the more we expect that we'll be able to, you know, sort of fully develop the relationship and bring our broad-based capabilities to bear. It's still kind of playing out. Not all of them are gonna stay. I think Jeremy said it well in the moments after that. They're flighty, I think, was the word you used. I mean, there's gonna be a little bit of that, I think the large majority we expect will be, in fact, our clients for a long time. All right. Thank you. Please welcome to the stage Mary Callahan Erdoes, CEO of Asset & Wealth Management. I definitely didn't pick it. Whoever did, there's probably some deeper meaning to it. I want Rocky. He's requesting Rocky before he comes up, so if you can work on that. How did I get so lucky to get the last slot of the day? If you're sitting in a room full of stock pickers and people who do deep research, you would, of course, save the asset and wealth management business for the last part of the day, a business that's near and dear to every one of your hearts, since that's where we do this for the firm. I'm Mary Erdoes, for those of you who I have not met, and I'm so proud to be up here, and so thankful that you have all given us your entire day to be with us. It is just as special for us as hopefully it is for you. We spend an inordinate amount of time preparing for this, hopefully, each and every slide and statistic and soundbite is meaningful till you get the whole sense of J.P. Morgan. In this business, it's really a microcosm of the whole firm, I think. It's the place where we give the investment advice for all of the wholesale CEOs and CFOs that everybody talked about all the way through to the person that walks first time into the branch and to think about their first investment. With that as our role, we've been very busy as you can imagine at the beginning of this year, and we wanna talk about what has happened and where we're headed. I'm going to take you to the first slide. Who are we? We are the $4.3 trillion fiduciary business of the firm. We have a very healthy and market-leading 25% ROE and 25% margin. Not all of our competitors have both. The basis of every single thing we do is that last number on the left side, which is that we deliver alpha each and every day. The 90% of what we do has outperformed our peer competitors. That's a result of decades of continuous investment in this business. That number is captured in the top of the second column. That $400 million in research, we believe, is also industry-leading. We invest in our research analysts. That's just on the analysts, in good times and in bad, and very importantly, when the markets are rewarding it and even when the markets aren't. That is a ecosystem that we have with our research analysts. They know we have their back, and it makes it a very, very important culture for them to work in. We also differ in the comments about risk and controls that Doug had made. Ashley Bacon and Stacey Friedman run our legal risk and controls, operations, and compliance. They are not something that sits off on the side. They sit side by side with every single front office person, trader, research analyst in asset and wealth management. They are challenging them, they are prodding them, and they are saying, "Are you applying the same fortress principles that we use for the J.P. Morgan balance sheet to our clients' balance sheet?" I believe that makes all the difference. We never stop innovating. If you look on that third column, we've talked a lot about the M&A that we've done, and we've successfully completed 5 transactions. We've been very innovative on the active ETF front. I am very proud to say we now manage the top 2 active ETFs in the entire industry. Thankfully, 1 of them is in equities and 1 of them is in fixed income, so we are covered in any scenario that will face us. Maybe the most important is this last column, and this is about the talent. I believe I work with some of the best and most diverse people in the industry. Many of them are here. I can see them in the back of the room, and it makes it a very, very special place to work. Most of them, over 95%, don't leave. They stay here until they retire. We invest in them, and they invest in us, that's what makes it such a special equation. The same thing is true with our clients. Those 73% of recurring revenues, that comes from us investing constantly in what to do better for our clients. Because of that, they stay. That's what makes this whole thing very hard to replicate. Let's look at the financials. Daniel talked about, at the beginning of the day, laying out the fact that we wanna be complete, global, diversified, and at scale, that's exactly what Asset & Wealth Management is. This is a very consistent and growth part of our business. We have diversified sources of revenues, we do have a few red circles. We don't like to have them, thankfully, they're relatively small in the scheme of things. We have a relentless focus on our expense controls to get operating leverage in this business. You see 6% revenue growth compounded over the last decade, but 8% operating income growth. That's what we wanna deliver to you and the shareholders of this firm. With that North Star focus on alpha generation, which I talked about, you see that clients continue to vote with their feet and with their assets. I'm happy to say that the red $4 trillion is now back over $4.3 trillion as of today. Thankfully, it's not coming from any one product or region. It's coming from a very diversified business. Let's look at this. Our business is split pretty evenly between the left-hand side, which is the global private bank, and that's run by Dave Frame and Martin Marron, who runs our international business, as well as the asset management on the right. It's the fifth-largest asset manager in the world, but it is the third-largest active asset manager run by George Gatch here in the front row. In the middle section, you can see just a smattering of everything from loans and deposits to, on the right-hand side, equities, et cetera. Every area and every region is a driver of growth for us. That diversification is what makes this power of this business work in good times and in bad. I wanna just point out one number on the left side. It says, "Clients with $100 million." Last year in the private bank, we were running at about one a day in new clients that were $100 million and up with us in assets. That generally accelerates during times of crisis, but at this point, year-to-date, that's running at $400 million clients a day into the global private bank. I don't think it will last, but it shows you the amount of money in motion that's happening in the private banking space. Maybe what's even more impressive is those two bottom lines that talk about advisor productivity, whether it's on the private banking side at the $3 million in revenue per producer or the $13 million near number on the asset management side. Those are some of the highest numbers in the industry, that's with very significant hiring. We're quite impressed with those numbers, and we continue to hold those as a focus for us. With all this growth comes the need to make sure that we are also just as focused and religious about waste cutting and expenses. I wanna go through our expense walk in this business. There's three things I wanna point out on this page. Number one, we did better than we told you we were gonna do last May. We said it was gonna be 11.9 in the 2022 column, and it ended up six months later being at 11.8, in no small part to Craig Sullivan and his team, who work religiously on each and every dollar spent and the ROI associated with it and making sure that we bring that to the bottom line. The second is we told you that the rate of grosses of expenses was not going to accelerate, and in fact, it's slowing. The third thing that's very important to note is you see that $10 billion, which is volume and structural related, it's relatively flat. That's in spite of enormous volume increases. I credit that to both Mike Urciuoli and Julie Harris, who run our technology and operations, and they're focused on operational excellence at every turn, the modernization of our platform, and as Lori talked about, the decommissioning of a bunch of these legacy platforms, which is really helping give us a lift. All of that allows us to take that top number, that $2.2 billion, and invest exactly where you would want us investing, technology, advisors for new growth, and capabilities. First, let's just look at tech. It is the underlying of everything that we do. This is Lori's page. I took Lori's page, and I tried to make it with an example of a line of business, so I could bring it to life for you a little bit. In the first column, we talk about how we're delivering better customer experience. There is a great example of what just happened in the first quarter. We had been building something called Morgan Money. It's a portal for trading money market funds, not just ours, everyone's in the industry. We were creating a UI that we thought was gonna be better for the street, basically, to use and for people, not knowing we were gonna hit a crisis. In fact, during those, several weeks of a lot of fearfulness in the market, we became the actual go-to place for everyone in the industry. We traded more than $1 trillion, double the volume of what we were ever going to expect. The second column, Lori talked about all of the DNA of the technology people, and I just wanna bring this to life in a different way. For us, the technologists are already doing a great job. We need the rest of the business to think like technologists, and you will see that number, 5,400 Python-trained people, non-technologist trained. Why? We don't want them to be technologists. We want them to be thinking like technologists. As a matter of fact, that 5,400's gonna go to 6,000 pretty soon because every single new analyst and associate, of which we have 400 of them starting this summer, are going to be trained in Python. When you come to J.P. Morgan, we are going to ensure that you are trained for work that will exist over the next 50 years and the way you need to think. Whether you like it or not, you are going to understand technology so that someday you can run the technologists if you aren't gonna be one. All of that we talked about is going to be unlocked with this third column, which is AI. The proprietary systems, Lori mentioned we have some that run off of GPT. We have our own inside of the asset management business, and it's run on our Spectrum portfolio management system. We have loaded up 30 years of our own proprietary data on all of the companies that we follow. We then match that with the millions of data points we get every single day, what we have already seen is such a tremendous uplift. We have only begun to scratch the surface just on that as well as the other 50 pilots that we have in place. I think it is going to do... Mike asked the question about how do you measure some of these technology numbers. They are really immeasurable. We are only beginning this journey with what AI can do in a business like ours. Of course, the last one, there is a dark side to all of this AI, and that's that the fraudsters will grow just as fast. That's happening. We had a record year of cyberattacks on our business where we move high amounts of money around. That has already grown in the first quarter. What we do, Lori had mentioned it in hers, we spend a lot of time educating family offices, individuals around the world. 11,000 people turned to us last year to get those teachings. Those same growth drivers that we've talked about for the last several years, they're right here. They don't change. This is exactly what we wanna continue to invest in. 1, scaling asset management. That's what George does every day. We are only number 3 in the active management space. We are number one in flows. We are gaining market share, we're gonna keep going to scale that business. 2, alts. It's everyone's new focus. It happens to be our focus for the last 60 years. We'll talk about a little bit of that. Then 3, the M&A that we have talked about for the last couple of years, Ben Hess has really been the driver of that, not just for Asset & Wealth Management, but really helping all of us think about it across the firm. I'm proud to say we've also added CFO responsibilities to Ben across the Asset & Wealth Management business, so we're really excited about that. 4 and 5 are what we've talked about a number of times today across Jenn and Marianne's business, and that's the wealth management continuum. That's a $50 trillion marketplace, okay? That space is covered both by Kristin Lemkau, who's here also in the front row, who runs this wonderful business across the Chase platform. Then in the U.S., her partner, Dave Frame, who runs it across the global private banking business. Together, those are 8,000 advisors. Those 8,000 advisors, Asset & Wealth Management powers all of the investments and opportunities that they invest in. You know what that has delivered already? Each and every day, there are 500 new people in the branches who start to invest with JPMorgan Chase. Every single day, the Private Bank brings in $1 billion in net new money into the investment space. This is something that those numbers may not last. It may be the zone that we're in right now, where people are reassessing their European banking situation or their U.S. regional banking situation, but we are certainly the beneficiary of those. Let's look a little bit into a couple of these. First, scaling asset management, just very quickly. 95% of equities are outperforming peer median. That is, like, not a normal number. Paul Quinsee's in the back of this room. He's been doing this for 31 years, and he never relents on investing in these people to make sure that they know when the markets aren't flooded with liquidity and actual alpha shows he will shine. Bob Michele, if he's not on TV, he's usually out talking to a sovereign wealth fund about the fact that bonds are back, and his portfolio of fixed income has done just that, and it's been tremendous. Each one of those asset classes in the dark blue bubble are growing faster than the market. That just means they're gaining market share, and that's exactly what we wanna continue to do. We need that alpha generation because the right-hand side is where the future growth is gonna come from in the asset management business. Those are active ETFs as well as SMAs and model portfolios. Jed Laskowitz is overseeing those two areas for us, and they are of tremendous growth. Our formula is working on the active ETF business. You see rapid growth there, and we continue to gain market share. SMA and models, we were like number one6th, I don't know, only a couple of years ago. We're now in the top five, and we continue to gain market share. We already have 200,000 external financial advisors, being able to access those models. As that continues to grow, that will be tremendous for us. With our sales force across George's business run across the Americas, EMEA, Asia, they are already one of the largest sales forces, but they also happen to be one of the most aggressive, and I think you will expect those numbers to continue to grow. Two, alts. Anne Tomhill oversees this. We've had a very long-standing core of real estate, infrastructure, fund to funds, but the exciting places that we're growing are places where J.P. Morgan is growing. Think about what J.P. Morgan is doing on the fintech side. J.P. Morgan should also allow investors to co-invest in areas of companies that we see the companies, we use the technology, and wouldn't it be great for them to also be investing at an early stage? We have a number of those funds and opportunities that I think that 50% growth that you have seen on the right-hand side there over the past three years should be readily repeatable. Page three, executing M&A. I will not go through each of these. You know about the five that we have completed. 55ip, 9 x the assets that we had expected since acquisition. Campbell Global, it might be the most requested management team to come to me to talk about how you can own your own forest. OpenInvest. OpenInvest, just 1 second on this. OpenInvest is to be able to choose your values or your preferences in your portfolio. I personally don't believe it's up to an asset management firm to tell you or me how we should care about our assets and what asset classes we should like or not, or what things we should divest from our portfolio or not. I think it's an individual's choice. OpenInvest allows us to have individuals making those decisions, not an asset manager telling you what sector or industry you should exclude. Sorry, let me just make one point on China International Fund Management (CIFM). That's the last one because it is new in this quarter. We just closed this transaction. We've been in China for 100 years. It's taken us 8 years to close this transaction, and we couldn't be more excited. George took the whole team over there to do the rebranding a couple of weeks ago. Desiree Wang is actually one of the leaders responsible for the Shanghai business. She's in the back if you wanna ask questions about what's happening in China. This 100% ownership gives us two things that are really important. $64 million brand-new clients of J.P. Morgan, where now they're ours, we get their data, we get the insights, and very importantly, researchers on the ground who have had 1,000 client meetings last year. When you take that research and infuse it into all of the analysts that we have around the world, it's priceless. Having that on-the-ground research, whether you're investing in China or not, doesn't matter. You need to infuse that in your models to think about what's happening with the companies that you're investing in around the world. It's those acquisitions that I think are what power the future of this business. Before I talk about the powering, let me just reground this one more time. We're the part of the company that powers all the great things that Kristin does, that Dave Frame, Martine, et cetera. They are run by Mike Camacho, who is also here in the front row. He runs this full continuum of whether you wanna do brokerage investments, mortgages, et cetera. When we just acquired First Republic, you see these last three boxes, insurance and annuities, trust and estates, and fund finance. They are excellent in this space, and it will drastically help how we do those businesses. There's some very exciting things that we're adding to the capabilities here. I think it's those acquisitions, when you make them and you combine them with what J.P. Morgan does, is where the real power comes, not just in an ROI, but in what you're delivering to clients. I would tell you that there's 2 really big game changers coming for our business. The first is on the left. It's called J.P. Morgan ConnectWealth. It's our old SMA platform, which we do quite well for all the clients that want individually managed accounts, but we put 2 pieces with it. 55ip, which helps us to do the tax optimization in a much more efficient way. OpenInvest, I told you can now personalize your values. I'm not gonna tell you whether you should like oil or not. You add to it the AI of being able to tell you your stock went up. Forget about the selling. Why don't you think about doing a GRAT or a CRAT or taking it and putting it in your DAF to be able to get it out into the philanthropic space? All of these things, not just on an S&P 500 portfolio, on your entire wealth, including assets held away. It will be the holy grail of how people think about managing their assets, and we're well on our way. The second is Workplace. Finally, we can compete in this space. We bought Global Shares, we are going to win in this Workplace space. Why? Because we also have branches, okay? We also have some of the pieces that we talked about in the investment bank, Capital Connect, which Sanoke is overseeing for us, Michael Alognon has just been tremendous in thinking about that plus the Aumni transaction. We have the branches that Jenn runs so fabulously. We have the 401. Ben mentioned the everyday 401 product for retirement products. Then we happen to also, ourselves, manage 300,000 employees. We know what it takes to provide financial wellness to employees, so when we can package that for other people, you put all of that together, and we have J.P. Morgan Workplace, which I think is just gonna be a game changer. Vince La Padula, who couldn't be here with us today, is gonna help lead us. That feeds leads, not just in the Asset & Wealth Management business, but to the Commercial Banking, the Investment Banking. CCB all day long is really excited. So what I wanna then talk about is how do we do that? You need talent to be able to deal with this. We have to continue to grow. I would just make one note here. There's a lot of people. We are very fortunate in the company that we work for. There's a lot of people that wanna work for J.P. Morgan. We had 47,000 resumes for those 400 slots for the analysts and associates to come in this summer. It's harder than college. That's because Lauren Tyler and her team do a really good job of not just going out to the regular colleges, but to a very diverse group of schools all across the country and the world to be able to get us that excellent talent. To do what we need to do, it's an apprenticeship model. It's not a cookie-cutter training. We have a woman named Anne Devlin, who we took off the front lines, who runs our entire training system as if she would like to learn. Then we have people like Jeremy Geller and others who come off the front lines and sit in those rooms and train and teach and coach until they're J.P. Morganized. That's our goal. We want you J.P. Morganized, and that's our secret sauce, and then we will allow you to go on the front lines, and it's working, and those productivity numbers on the right-hand side show just that. If you have any first-class talent or graduates in your family or coming, please send them our way. That's the exciting part about training. Now, what do you think the most important thing is that we teach them on the first day of training after they've been Python trained, of course? Banking is not a commodity. That's what we teach them. Their eyes gaze over, and they don't live in crisis. Then when they hit a crisis, they pay attention to this. This is the basis of everything we do. We talk about the fact it is not a commodity. It is part of everything we do, the holistic advice that we give to clients, and it's the most important basis of what we talk about. There are two things to note on this page. One, those lending numbers, all that net charge us at the bottom, they look very strong. They should. Why? Because we never changed our lending standards. Everybody else had different rates, covenants, relaxed terms, still we stuck with what we know how to do best. 97% of what we do is fully collateralized. Our goal when we deal with very big, large, sophisticated clients is we want two ways out. Why? For them and for the bank. When you hit an air pocket, you don't wanna be the person who's forcing them out of something. We spend a lot of time making sure that we are going to be a lender through cycles for those clients. The second, which was just touched upon by Doug in the presentation, I also think one of the reasons that we become a net gainer in almost every one of these crises is that JPMorgan Chase is both a fabulous place to put your deposits, but it is an equally great place to put your money market funds. Every crisis is different, and you never know where people want to put their money. Once we get it in-house, and it has to move around, if we can keep it in-house, all the better. John Donohue, who is here somewhere, he runs the world's largest institutional money market fund business. He could teach a PhD course in how to deal with these crises. He's been working with me on this since what I call the first Lehman crisis back in the 1990s, for those of you who remember that. All the way through the great financial crisis, the European crisis, and now, of course, our regional crisis. You can see that in each one of these, we tend to gain market share. We become the flight to quality beneficiary. We get institutionally smarter with each one of these, and we know what to do. We know what to do when we run our war rooms inside. We know how to stay in front of clients. The only thing I wanna show you on this page is there's a staggering number here in the middle. It's $3.8 million. That's the number of times financial advisors at other firms chose to use a guide to the market page that's created by J.P. Morgan to help their clients, irrespective of the firm they work for. It's pretty astonishing. All of that resulted in the last number I wanna show you. This is the 40,000. Okay. On Friday at 7:25 P.M., that was the timestamp of the 40,000th account being opened since March 10th. I had to get Michael. Where did Michael just go? He was sitting right there. You moved. To approve, to be able to print the document after I changed the number because we made it to 40,000. That was because we spent so much time figuring out how are we gonna deal properly with this crisis. Of course, we had war rooms and the like. We took people from the mortgage business. We took people from the first-year analyst classes. It didn't matter where you were from. If you were smart and you were driven, we flew you to another city, we put you up in a hotel for the last 4 weeks, 6 weeks, and you helped us to get through this. We hit that 40,000 number. That's just in Asset & Wealth Management. We're quite proud of it, and we're very thankful for all the people that helped us with it. We basically, just on the institutional side, we did 2 years worth of account opening in basically 2 months. It was quite stunning. That's really the example of the firm. I just have two more pages really to go through here. You've seen the wheel many times. I don't need to take you through it again except for to tell you know the 800 people that were working on the thing. What you probably don't know is that that happens all the time. The MLTs, these are the local leadership team. The San Francisco local leadership team, they oversee 3,500 people in the Bay Area, okay? They had to pull themselves together during the early days of March 10th to figure out what to do. Then Doug and I sent teams. John Simmons, I saw Melissa. We sent the teams of the commercial bank out with Madhu and Noah and others from the investment bank, along with our private banking teams. We went, we educated CFOs, we helped venture capital firms, and we really pulled the firm together as one firm, and that's why those numbers are what they are. Of course, all the other pieces, whether it's the 23 Wall Groups that sits between the investment bank and the private bank, run by Andy Cohen. I said last year, there aren't any investment bankers that wanna take a private banker to a meeting except for inside JPMorgan Chase. Every one of our new hires says, "You know, this is, like, not normal. This is not really how it happens." The reason that it happens here is we don't allow people to say, "My client." It's our client. That is just a really important part of the ecosystem here inside of this firm. Which leads me to, how does this happen? We continue to grow assets. I can't actually tell you what's gonna be the green bubble versus the red bubble next year. Which is why I have to invest in each and every one of those areas. I am going to tell you that that's why we were able to deliver 19 years of consecutive net new inflows into this business. That gives me the confidence to tell you, and we were number three, by the way, in asset flows over the last five years amongst a number of very strong competitors. We continue to gain market share, and we have great growth ahead of us. I'm gonna reiterate my targets on the last page here, which I have laid out for you in the past. The first is long-term flows at 4% of our base, revenue growth of 5%, margin and ROE both at 25% and above. While all of those we consider through-the-cycle targets, we wanna deliver those and aspire to do them each and every day. That's very important to me. Now, I know you want to ask lots of questions and answers about the Asset Management business, but we're gonna bring Jamie up instead, who can incorporate them all in there. Before I do, I just wanna end with one page, which is basically exactly where Daniel started. That is, this business has unparalleled strength across these four lines of business, and I hope you got a sense of that today. Everyone in this room and on the line works so hard for clients all around the world each and every day, and we are enormously proud of the fact that we finally made it onto the Fortune top five list of admired companies in the world. The only small problem is that those companies all have a higher multiple than us. Three of those companies are in the trillion-dollar and up club. With any luck, both Mike and Betsy's predictions will come true, and number five on the list will also end up in that trillion-dollar club. Jamie, why don't you come up and close this out? Okay. There you go. Very good. I like that. I need my glasses real quick. I'm gonna go right to questions. I have a bunch of things I do wanna say to follow up. I figure mostly we're trying to answer what's on your mind first, make sure I cover what I think are some other points. Are you gonna do the Q&A or you want me or you want to do it? Okay, questions. We have a question right down here. Hi. real quickly, on the dividend, what do you think is a good recommendation for an increase in the cash dividend this year? The board makes that decision. I think we've already told the world that we're gonna decide after we see CCAR, something like that, so it will be later this year. We obviously have the wherewithal to pay up some more of a dividend. Right. Mr. Mayo, right there. Well, how does it feel to be the largest bank growing share in your industry? Feels great. How does it feel to be in an industry that's becoming more marginalized than almost any other industry? I set you up there, but your CEO letter- Okay. for the last few years has highlighted the diminished role of banks relative to private capital, relative to tech- Right. relative to so many other players. What message do you think Washington D.C. is not getting when you go down there and say, "Stop increasing capital"? Right. You've seen a lot of regional banks, They're shrinking their balance sheets. They're passing that corporate business to, I guess, you or outside the industry. What do you think happens to the banking industry? Right. post Silicon Valley? A bunch of questions there. First of all, the regional banks reported, when they reported the first quarter, and they showed you some of the March numbers, they did okay. The results were quite good. The ROTCEs were quite good. The deposits were down just a couple of%. They're paying a little bit more, so they all talk about their betas being higher. I think people misunderestimated what that beta would be. That's why we're quite concerned about it. We show you all the reasons for being very conservative about beta, particularly down the road. You're asking a bunch of questions. Here, this kinda answer, I think kinda answers what I wanted to say a little bit. We are doing really well. We have for a long period of time. I am comfortable that will be true going in the future. I do think we've got tough competition, and we showed you a lot of number ones. I think one of the things I like when you, when people talk about our weaknesses, we didn't build Square, we didn't build Stripe. We have markets where we're not doing particularly well. We have plenty of growth areas. We're gonna focus on what we have at hand. We have a lot of things to build, a lot of things to succeed, and we have new competitors. Private, you've heard the private credit, you have Apple, you have the neobanks, Chime and SoFi and Dave and Marcus and all of that. We have our hands full, but we're comfortable we can deal with that. Daniel mentioned one of the things about capital, I do think capital is an important thing, is that we will manage capital. If, you know, if capital goes up and up, things are gonna leave the banking system. The way I look at it, we're really smart, we're gonna figure it out. For example, for every dollar that Mary loans or that Daniel loans or that Doug loans, you know, we just have to do more NIR. You heard Allison talk about it, she said 10% margins on $15 billion of business, that's $1.5 billion of profit. That's got no capital, no GSIFU. We are quite focused. All these acquisitions, 55ip, OpenInvest, Global Shares, you heard Doug talk about it, data, databases. Takis talked about adding data verification, identification, revenues, no capital, no G-SIB. We know we have to do that. I think the capital, you know, is gonna continue to go up. Stuff will continue to use the banking system. I think we can manage through it. I've also noticed when you look at our numbers, our ROTCEs have gone up with our higher capital. I think there's a possibility that with that higher capital, charges will hurt smaller banks and not bigger banks. I think the regulators should be very, very careful about, you know, how they wanna go about allocating capital in the system. Just a short follow-up. I also think what I like too is the management team is just very honest about what we do well and some of the areas we don't. That is the opportunity to focus on those things and so. Yep. A short follow-up. Your pricing, 'cause it seems like the private capital market gets more when they lend out money. Are you seeing any pricing power willingness? You wanna pass on your cost to goods sold. Are you able to do so? Are you doing so? The amazing thing about private credit for a long time, they got paid more per dollar of credit than a bank did. This changes, by the way, what I'm about to say isn't what it is today. When we build flex in the bridge loans, they base it, call it 2% or 1.5%, that we can go higher. They charge the full amount. What they did that the people really liked, it was unitranche. Lend all hand her $800 million. It was fast. It was lower covenant. I wanna point out that lower covenant often has nothing to do with credit with losses. If you go analyze covenants in the past, that wasn't necessarily the thing that made the difference. They got paid more per dollar of credit. We get paid more for the relationship. You've heard up here, every person up here has talked about, like, I'll use Petno's business as an example, where, you know, we're getting paid NII, but he's also getting equal amount of NIR payment, you know, usually payments from investment banking or FX or something like that. We're actually being paid more for the relationship. When we go do the private credit, we're doing both. We know we can compete in private credit. We just have to do it carefully and wisely within our own credit standards. We had a question right down there. I mean, building up on what you mentioned that we've done well, I mean, if you take a step back, it's been a remarkable ten years for J.P. Morgan. It's been a pretty good 20 years though. Pretty good 20 years. In the past 10 years, I mean, net income has basically doubled in 10 years. Yeah. Well, it doubled in the first 10 too, but go ahead. I'm wondering, I mean, we looked at a lot of things today and last Investor Day, which of them excites you big picture more for the next 10 years? Please don't say retirement. Which what? Which one? Which of the- I got that part. What's the retirement? Ask me again. Oh, please don't say that what excites you more is retirement. There's not one area, not one of those businesses saw that we can't have organic growth. I've said this for years, it's good to be able to win with organic growth, and we could do organic growth in every business for the next 10 years, maybe 20 years. On the consumer side, there's 48 state. Are we in Hawaii now from First Republic? You're gonna tell me. They have ATM in Hawaii. Okay. You are not- A consumer auth? A high net worth auth. Okay, now we're in 49 states. Anyone from J.P. Morgan who wants to go to Hawaii has my personal permission to go visit that branch. Otherwise, that branch is gonna cost, like, $50 million as a. In consumer and high net worth credit card, Ink, small business, I think we can grow travel. I think auths will be bigger than travel when all is said and done, personally. I think in the consumer bank, you saw It's amazing, the vibrancy of the American middle market businesses. This whole international expansion, the private credit, and the doing more private equity we weren't doing before. In the investment bank, you know, we got It's, it's harder. I mean, you keep getting our gains in fixed income and equities and electronic trading and investment banking, but it's doable. These guys visiting, Jim didn't show you all the detail, but there are a lot of areas where we are low on share, and we're gonna get up on shares. I actually think Danny and I used to think we couldn't go much higher than a certain percent in trading. We now think it's probably 30% or 40% higher than that. You know, 10 would, could be 13 or 14. These are very expensive business to run, highly regulated, highly global, and we get advantages from other part of the company. In Asset & Wealth Management, I mean, I think it's just the wealth of the world is growing like this. It's not gonna stop. Is Martin in this room, by the way? Because he's done one a hell of a job on the toughest part, international. Dave Frame, the single client group, they're all fabulous growth areas. They're hard work. You know, they're just, they're work. You gotta do branches and people and training and ops and tech and systems and it'll work. Each one of them has data. Each one of them has non-capital, non-GSFE benefits. Every single one of them. So you saw it all through the themes here, which we've been doing for years over time. Gerard Cassidy down there. I also love the chart that Jeremy put up. I don't know if you can, you really paid attention to it, but you should go back to it, 'cause I'm just gonna talk about the one example of the deep to moderate recession. I think you had two real things, deep to moderate recession with high interest rates, think of stagflation, 7% interest rates, et cetera, and deep to moderate inflation, recession with low interest rates. Total different effect on us. The worst case is low interest rates, one. Those are really, you know, generated numbers, not just, we're not just guessing at them. We can earn pretty good returns. That's 7% unemployment, right? It's not as severely adverse. even with the severely adverse, we would probably earn quite a bit of money and be proud of the results. We always look at that. We're here in good times and bad. We're not running in and out of businesses. We're not— We have long tenured people. Our research is I know Joyce Chang is in the room, and, I mean, that's how you build a business, just all the time, not stopping and starting. Thank you. Jamie, your comments tie into my question. Credit's been great for the industry for a number of years. Clearly, over the next 2 years or 3 years, your team has pointed out the normalization of credit that's coming. Two questions. First is, what are the risks that you see for J.P. Morgan over the next couple of years if we go through some sort of credit cycle? The second, have you given much thought to the second derivative risk of the non-bank lenders who have really never been through a credit cycle? They've really grown, as you know, since the financial crisis. What are the second derivative risks to the industry and to J.P. Morgan, if there are any? Yeah. There will be a credit cycle. It will be, My view is it'll be very normal. I'm gonna give you an exception, though, okay? A normal is the credit card losses. Well, you know, she showed you the numbers. You know, if it's really, really bad, they can go to 6% or 7%. Remember in 2008 and 2009 it hit 10%, but the underlying credit is much better now. Every business will have its own little credit cycle, and they'll be fairly normal, what you would expect for us, okay? There's always an offsides. The offsides in this case will probably be real estate. It'll be certain locations, certain office properties, certain construction loans. It could be very isolated. It won't be every bank. You know, it'll be some may have an issue in real estate. Private credit, if you ask me, there may be some offsides there. I think you have a lot of top professionals in that. These are very smart people. They've got long-term capital buckets, so they're not gonna have a run. But they may have, not a run, but where they can't lend money anymore, okay? They'll have to stop lending money. So I think there's a risk that some will lose control of the credit. Some won't do that well. It'll cause problems, and they'll leave stranded borrowers. Stranded borrowers may be a benefit for us. You know, like, we were very clear in this crisis. We told our people, and we were categorical, "Do not take advantage of any bank that's having a tough time at all. Not their people, not their loans, not their credit. No winks and nods, no whispers and stuff like that. We would punish people that did that. On the private credit side, if there's stranded borrowers, what's gonna happen? If they can't make a loan to you, who are you gonna call? This time, I'm gonna remind them that they left for two basis points. You know, so I think we'll be okay. I don't think it's systemic, but I do think it may cause some issues away from banks. Okay. Ken Houston right here. You know, the little lesson about SVB, 'cause after SVB failed, when we did a deep dive analysis on SVB, and we looked at how detailed work that they did and how they covered both the venture capital companies, how they covered the corporate accounts. Think of the companies, not the venture capital companies, but the companies they invested in. I would say at 35,000, how they co-covered the venture capitalists and the management of those companies. They did a lot of really neat, great things. We did the work. You know, my first response was, "Why didn't we do this work before?" We didn't realize how deeply embedded they were in the system. We always complained about our inability to get involved in venture capital. They did a great job that way. Jamie- Yeah. Today's presentation and the last few months shows that there still is obviously a lot of market share opportunities that you can get domestically, but you pointed to the things that Doug pointed out about the international expansion in Commercial Banking. Over the last couple of years, you guys have made investments in digital banks abroad. Just wondering how you think about market share opportunities still in the U.S. and kind of put that against just where the international opportunity is when you think about the business holistically. Yeah, so we could show you country by country. India, China, Australia, Japan, companies we cover, companies that are in our ability, where our market share is low, where our market share is high. What the private bank can do, what they can't do, onshore, offshore. Every country's got a plan. In almost any country we can grow. We don't always succeed, but almost any country we can grow. If you look at places like India and China, you know, obviously, China's been tough recently, but in India we've been gaining share pretty much for years, and we'll continue to do that. Remember, and we are in a country, we also bank Indian companies in the U.K., in Singapore, in the U.S., and we bank all the multinationals going into India. We actually try to measure that and grow that. It was kind of a little bit embedded in what Doug Petno was showing you, because he does that country by country too. We have a question right down here. Hello. With rates going up as high as they've gone up, do you see any fall off, not necessarily for J.P. Morgan, from interest rate swaps, when they roll off, maybe for other companies or? I don't understand the question. Am I worried about other companies' interest rate exposures? We all, we have a lot of interest rate derivatives, right? That have, that swaps that occurred, you know, 2 years or 3 years ago when rates were very low. When those swaps roll off. For us, you're talking about? No, no, not necessarily for J.P. Morgan. Yeah. For other companies. Oh. Do you see any fallout from that possibly? Not really. I mean, you know, it was very hard. We've tried to do this before. We look at our exposure to our own clients, like what their interest rate exposure was. I think Daniel mentioned something that's in the back of my mind. There are countries that have issues with the dollar being stronger, not recently, but being stronger, interest rate exposure, how much they earn in dollars and stuff like that. I do think I'd put that in the list of geopolitical risks. When interest rates go up or down, there's always someone off sides. There's embedded interest rate exposure in almost everything. You guys have heightened sense about it when it comes to banks. It's in real estate. You know, if you have to refinance your real estate loan, that's interest rate exposure. You know, and you have it in companies, you have it in some lenders. Most of them are pretty responsible, but some will be off sides. Glenn Schorr down there. Thank you. Not all the deposit models held up the way they were originally designed in the last couple of months. I'm curious if there's a lot of banks out there that don't necessarily know the duration of their deposits, the rate paid on their deposits. How that impacts in their mind, what to do with their balance sheets, what to lend out, what duration to have on their asset side. Do you think we have a credit availability building issue? Is that something that you think the regulators will take into consideration as they go about Basel III Endgame? Let's talk first about deposits. Betas, we haven't been through quantitative tightening, so we really don't know what's going to happen to deposits at all. That's why I've been quite concerned about that. I'm probably more concerned about quantitative tightening than almost anybody in this room. We've never had QE before. We've never had QT before. It just started, okay? You see huge distortions in the marketplace already with We've never had the Fed in the market like this, that RRP program that Jeremy mentioned. Ever. They have $2.3 trillion basically lent out to money funds. I don't know the full effect of that. Obviously that's a direct deduction from deposits. Early on, it made sense to do so. I think people should build in their mindset that they may have to move deposit beta more than they think and manage that. I mean, if I was any bank or any company, I'd be saying, "Can you handle higher interest rates and surprise in deposits, et cetera?" If you go back, you know, I know some people looked at 2018 or something for deposit beta. I need to go back to 2000, even the 1900s. I mean, look at rates were very high and they moved around a lot. What happened? What happened with most deposits is that once you were keeping 2.5% or 3%, your beta was 100 after that, and which means you have to be short in your portfolio and stuff to make up that kind of beta at very short rates. I think some people will be off sides in that. I think smaller banks, I think the smaller they get, the more they may have a little bit of an issue with that. Will the regulator take it into consideration? I don't know. They seem completely unconcerned about RRP. I would be more concerned if I were them. I don't think they can take into consideration for capital. I think they've made it quite clear capital is going up. People say capital hasn't gone up. If you look at our cap, I pulled my chart, my Chairman's there. It's been going up year after year after year. For SCB, for GSIB, for all these various things. Capital, there's so much capital in the system. This crisis actually proved it wasn't capital. It was more about liquidity, runnable deposits, et cetera. The other thing I want you to do, because I had written this down. We made a mistake to talk about insured deposits and uninsured deposits. That is disclosed. You see that number. That isn't the problem. In fact, the way SVB was handled isolated this whole uninsured deposit thing. Until then, you didn't really think about uninsured deposits. It's really what's runnable. I give you very specific examples. Takis mentioned it when we talk about payments. Doug mentioned it when we talk about his deposits. Even in custody, I think my numbers are right. You have $30 trillion, some number like that. How much are your deposits? The deposits are $200 billion, but we settle $1 trillion a day. Those are like operational type deposits. It has different betas and different runnability. If you have checking business accounts for someone and, you know, $5 million is going through a day or going through a week, you're gonna keep, you know, a couple, you know, $5 million, $10 million, $50 million deposits. You really have to have this more of a kind of runnable. Beta is very different. A lot of checking accounts, small business accounts, middle market accounts, cash type of management accounts, they aren't going to leave their main bank. You didn't see them leave their main bank in this crisis. You know, maybe people got a little, they had excess over the amount they moved to someone they felt safe with. we're already seeing credit tighten up because, you know, the easiest way for a bank to retain capital is not to make the next loan. I think you are gonna see that, and I think everyone should be prepared for rates going higher from here. You know, if that 5, if 5% is not enough in Fed funds, I've been advising this to clients and banks. You should be prepared for 6, 7. You should be prepared for on the 10-year bond. I also feel this way. The Fed doesn't control the 5 or 10-year rate. They control the overnight rate. While they've been raising the overnight rate, there's still too much liquidity in the system, which is why stocks are high. Bond spreads are still you all talk about recession, not reflected in bond spreads. I think there's a chance you can have rates ticking up and not to 3.7/8. I'm talking about 4.25, 4.5, 6, hell, maybe even 7. I would be prepared for higher rates if I were someone. Whether it happens or not, we don't know, but you should be prepared for it. I think you people will tighten up credit, and I think people are gonna retain capital to make sure they're not caught off guard. The worst thing a bank can be is caught off guard. I'm hoping, and I do think the regulators will be very thoughtful how they talk about AFS. They've made it clear that they may make a change, but it won't be made for years, and it'll be phased in over 5 years after that. I think there'll be some limits to HTM, you know, that make it more of a rational how much you can do, the duration of what you could put in there, the size of HTM versus your AFS portfolio. I'm sure they're gonna change certain things about liquidity. I do think that stuff will lead to tighter credit for, you know, for smaller banks. Okay, Betsy down the middle here. Hey, Jamie. Thanks very much for today. A lot of very clear signals here that the organization is working super hard to get that operating leverage going and moving in the right direction. I think that's the path to your $1 trillion here in market cap over time. The question I have is on- When you say operating leverage, you think that means that our margins are gonna go up down the road? Your revenue growth will be faster than your expense growth. Not possible. Why? I've been telling you guys this for years. It's just we already have very high margins. We wanna grow profits and revenues and have high returns. You know, Jeff Bezos says that your margin is my opportunity. No business in the world can continue to increase its margins. It is not possible. We already have very high margins. I take back what I said then. Thank you. There you go. My question's on your capital and your capital buffer. Yeah. You know, we know the regulators are coming out soon with Basel III Endgame in the next few weeks or so. FRTB, et cetera. You know, we can triangulate to what that might mean for you. What I can't triangulate to is how you're gonna interpret that with regard to how much capital buffer you need on top of that. I know you say you have enough capital, but when they raise the bar, do you have to raise the bar for buffer, being that you are the biggest bank in the country? Right now we talk about a 50 basis point buffer. I think buffers on top of buffers are absurd. I think we've gone through the looking glass with this kind of stuff. Yes, we will have a buffer, but the higher the number is, the less we think we need it, I think the less we can have a smaller buffer. Then be very direct with our shareholders about what that means for dividends, capital, stock buyback, because obviously it may make it a little bit more erratic, we can do those things. We have plenty of capital. Like, we're retaining capital today. Our target is 13.5. Even after sucking up 40 basis points with First Republic, we're still gonna be over the 13.5 this quarter. We're gonna see what they do, and then we'll give you more information. I think this constant capital confusion is a bad idea. As you know, I didn't like it when the SCB changed dramatically last time, that we have to all change our plans overnight. I think that they should simplify stuff. Once the rules acts, you know, I really would do this by them. If, you know, our required was 12, and once you go below 12 to like 11.5, you can't raise your dividend. Below 11.5, you have to cut your dividend. You know, I mean, below 11.5, you can't buy back stock. Below 11, you have to cut your dividend. Below 10, you have to cut it to 0. That's what I would... I would have a very disciplined process, but I wouldn't have the capital numbers swinging all over the place. You know, you've heard me talk about stress tests. I mean, I blame the banks for what happened, but this having one test, I do think lulled a lot of people to a false sense of security that things were gonna be okay on interest rates. That was a mistake, too. Any more questions? Mike Mayo, go ahead. Well, how many more years as CEO is the question? Three and a half. And, uh- We're on the same plan we had before, so. Okay. I guess just why? You know, you have fame, you have fortune, you've had success. You know, why do you wanna still be as intense as you were before? You counted black cars when you got here. You got to Bank One, you're, like, basically counting paperclips. I think it's- I never counted paperclips. There's a concern here, the concern is when you're away, the sense is the intensity is not as strong as when you're here. That's a perception that I've heard from some ex-employees, outside investors. Is your intensity as strong as it's always been? Do you still get fired up every day you come to work? Do you really think your team has that same intensity that you have? What happened now? All human beings are different. I'm kind of like I was when I was 8. I'm not gonna change. I'm not gonna play golf. I love my country, I love my company, I love my family. I'm gonna do something. I can't do this forever, I know that. My intensity is the same. I think when I don't have that kind of intensity, I should leave. I don't think CEOs should retire in place and, you know, just cut back and take it easy for a while. I think that erodes the whole company over time. I think that's a mistake. I think the management team has tons of intensity. I think, you know, the differences when I leave, I think it's a deep sigh of relief that they go do their jobs. As opposed to me having walking in and out and bugging them about something and stuff like that. I think it's good for management teams when the CEO's away. I think it's good for the CEO to be away sometimes. I think it's good for like both parties, like, you know, spending, you know, taking a little bit of a vacation from your family sometimes. I still love what I do. I hope you feel like when you watch the management team, you only got to see some of them, but there are a lot of other great ones in this room. They're pretty damn good. I mean, handing this company over to the next generation, I will feel great about it. I mean, literally great. They will take this to the next level with a whole nother set of problems and issues with the grit and courage that you need to do these jobs. You know, it takes grit and courage. They take grit and courage to do their job today. You know, they have big jobs today. I'm, you know, they probably don't sleep as well as you think they do. Just to make sure they're doing the right thing. There's a great Wall Street Journal article when like on First Republic, I mean, these Marianne Lake and Jenn Piepszak, I went to see them and I said they were like on the way to the airport. You know, on that Sunday night, I guess, or something like that, to go see the people. They've already been out and about. You know, the teams that we had 800 people working on the due diligence over those couple weekends or something like that. I would guess there's 10,000 people working it now. Ops, risk, legal, systems, credit, commercial bank, retail bank, Chase Wealth Management, comp plans, to get that thing done. It's a lot of work. A lot of very capable people doing that kind of work. Richard Ramsden down there. Maybe I can ask a slightly different question on succession, which is when the board looks for your successor, what do you think the most important attributes are they gonna look for? Yeah. You know, here's an important governance. I think it's like one of the most important governance things. You know, Dodd-Frank mandates it that once a year, the board meet without the CEO. When I got to Bank One, I told the board they should meet every I was chairman and CEO, but I told the board they should meet without me every time. If you wanna give a board discretion and the ability to talk to each other, it's not to have me in the room when they're doing it. I have these strong opinions that's number one. The second is they know all the senior management people here. All of them. They can take them for lunch. They can go play golf with them. No one has to ask permission from me. They get to meet almost all of them have been to dinner with the board 2x. Those two things create a very healthy environment. I tell the board I'm just trying to do the best I can. I don't spend a lot of time whining and dining my board because I'm really busy. That's what they do. The succession thing, it is up to them. Now, obviously, I speak to them about every meeting. Every meeting, I leave, I'm sure they speak about it, things like that. I think it's a huge mistake, in my view, when a company says that, you know, what are you looking for CEO the next generation? Is it a marketing person? Is it a risk person? Is it a tech-oriented person? That isn't what leadership is about. I think you're almost guaranteed to fail if you think having a strength, one important strength is the most important strength. I think the most important strength is you're trusted and respected by people, that you work hard, that you give a sh-, that you know you don't know everything. They have curiosity. They have grit. They have courage. Are you willing to change direction? Are you willing to go in front of your shareholder and say, "We messed up. We made a mistake. We were wrong about that." Those are the things I think are the most important things. Not one particular thing or something like that. You know, even all these things you talk about, you talk about Python and you talk about tech. You know, it's like, yeah, they have to know enough to do the job. If you're smart, you can figure that stuff out. If you don't have grit, you don't have it. You don't have courage, you don't have it. If you're the kind of person who defends every decision you made. I mean, my management team knows I don't think I've ever defended a decision. Just wanna do the right thing going forward. That's it. Just do the right thing going forward. I don't really care what we did yesterday, and so I'm very much that mindset. I also get over bad things really quickly. Like, literally, sometimes if it happened, to me, it's like it happened 10 years ago, even though it happened this morning. 'Cause that's how you can kind of move on in life. I think the board is very comfortable that we've got really top choices here. Charlie Peabody. Yeah. Jeremy talked about, you know, the high levels of HQLA and more importantly, the unencumbered marketable securities. I applaud you guys for, you know, taking the security losses you did last year to keep your balance sheet liquid and current. Then you. That wasn't the big deal. The big deal is the amount of money we've kept in cash. Yeah. Yes. Sorry. When you look at your mix of. We have— I mean, it's amazing numbers. $1.5 trillion of cash and marketable securities. Total loans are $1 trillion. Billable debt and equity, $400 billion-$500 billion. Those are extraordinary numbers. That $400 billion-$500 billion is more than the total losses of all the GSEs combined in the real great stress tests of 2008 and 2009. That's where I was going with my question is, you said your LCR ratio will be high 120s by the end of the quarter. You would operate normally in $110 billion, $115 billion, let's say. Is that something that's structurally different about how you're running the company? No. Or is it cyclical? No, no. All that We always ran it like $110 billion or $120 billion, then during COVID, the deposits came rolling in, and that number just went up to $140 billion, $150 billion. I— What is the total outflow number again? The total outflow number is like? Wait, you mean like the LCR denominator? What's the HQLA today? It's like $700 billion. $700 billion. That's just number kept on going up only because the deposits came in and now it's just returning to what I call a more normal number. That is part of it because the securities don't count and other things don't count and so. I guess what I'm trying to get at is will you start to deploy some of that liquidity? Not yet. No, I know not yet. When you do, is that a signal that you are beginning to see things all clear, or are you running at a structurally higher LCR ratio for other reasons? No, no. We are required to run at the 100 number. We're way above that. We're way above that, yes. We're always gonna keep a cushion. Some of those buffers. I would say Are policy buffers 110 or 120? Yeah. I mean, we move it around depending- We move it around, but there's a policy buffer. Of course, you know, we're all afraid that tell the regulators your buffer is 10% more than 100, and you go below that, and they're gonna punish you anyway. Once we set that buffer, we will have that buffer. If it goes above that, we have discretion. That doesn't cover how much discretion you have to go loan or reinvest. It's not that number. It's a different number than that. You know, we can invest hundreds of billion dollars loan if we wanted to. Of course, if you did that today, you'd be making less money. Remember, we're getting 5% overnight and you're getting. Well, you actually buy mortgage at 5.5%, but. Any more questions? Can I just add quickly. I appreciate everyone coming here today. I was in this room about maybe 9 months ago or something like that, and someone asked me a question that I had never been asked. The fact we invited Jason Sudeikis from 1 of our CEO meetings. He's gonna go to it because some of us have been watching Ted Lasso. The question I got asked was, which I love, by the way, "How do you show, how do you show gratitude to your direct reports?" A couple of my direct reports were in the room, and they burst out laughing because I don't really on a regular basis show gratitude to my direct reports. As a young man, it was partially because I was running investment banks. I was always worried that if I ever show gratitude, you know, at the end of the year, they'd just ask for more money. Which, by the way, isn't true. People like gratitude, you know, I learned that lesson over many years. I answered the question by saying, "I'm not particularly good at showing gratitude, but I hope my management team, and I think by all the J.P. Morgan people here know how much gratitude I do feel for the job they do for this company, for their clients, their communities, for our countries around the world. It is extraordinary. They do know that. They do know I break my back for them.. Do the best I can, that I adore them. I just look at these sessions here, and I'm kind of beaming half the time just watching our people in action, talking about what they do and how they do it. They're getting better, folks. I just think that's a wonderful thing. My gratitude to all of the J.P. Morgan people here. Thank you very much. To long-term shareholders, thank you. We'll see you all soon. Thank you.