JPMorgan Chase & Co. - Shareholder-Analyst Call - NYSE:JPM

NYSE:JPM

Timothy Smith, speaking on behalf of Boston Trust Walden, expressed the following points:

1. He thanked JPMorgan Chase and its employees for their hard work during the COVID-19 pandemic.

2. Boston Trust Walden, as a long-term investor in JPMorgan Chase, has engaged with the bank on issues such as climate change, business ethics, and board diversity.

3. He highlighted a previous shareholder resolution focused on JPMorgan Asset Management's proxy voting record on key environmental, social, and governance (ESG) issues, noting that the bank had a poor voting record on climate-related resolutions.

4. After constructive dialogue with JPMorgan Chase, the resolution was withdrawn, and Boston Trust Walden has been encouraged by the bank's new statements and actions on climate change, including its membership in Climate Action 100+.

5. He commended JPMorgan for these steps and urged the bank to improve its proxy voting record on climate issues.

6. Smith mentioned the importance of active engagement by investment managers like BlackRock on climate change and the need for JPMorgan to play its part.

James Dimon, the Chairman and CEO of JPMorgan Chase & Co., made several statements during the shareholder and analyst call on May 19, 2020. Here’s a detailed summary of his remarks:

Opening Remarks

• Introduction: He thanked everyone for attending the virtual Annual Meeting of Shareholders and expressed gratitude to the attendees who are also customers.
• Gratitude: He thanked the employees for their hard work, especially those who supported him during his recovery from heart surgery.
• Leadership Recognition: He acknowledged the leadership of Daniel Pinto, Gordon Smith, the Operating Committee, the Board of Directors, and senior leaders.

Company Performance Overview

• 2019 Performance: JPMorgan Chase had a strong year in 2019, with record revenue and net income. The firm generated $36.4 billion in net income on revenue of $118.7 billion.
• Investments: Continued to make significant investments in products, people, and technology.
• Loans and Deposits: Grew core loans by 2% and increased deposits overall by 5%.
• Support for Clients: Extended credit and raised capital of $2.3 trillion for businesses, institutional clients, and U.S. consumers.

Addressing the Pandemic

• First Quarter 2020 Performance: The underlying results of the company were good, but credit reserves of $8.3 billion were built, bringing profits to $2.9 billion due to the recognition of the likelihood of a severe recession.
• Preparedness: JPMorgan is well-prepared to handle severe economic volatility, with a fortress balance sheet, disciplined risk management, and a strong capital position.
• Earnings Stream: The firm’s 2019 pretax earnings of $48 billion enable it to absorb losses and maintain profitability despite higher credit costs.
• Liquidity: JPMorgan has over $500 billion in liquid assets.
• Lending Commitment: Plans to lend an additional $150 billion to meet clients’ needs.

Supporting Customers and Communities

• Consumer Assistance: Provided over 1.5 million hardship accommodations, including delaying payments and refunding fees across various accounts.
• Credit Approval: Approved over $45 billion in new credit for clients impacted by COVID-19.
• Paycheck Protection Program (PPP): Funded a total of over $30 billion to over 250,000 businesses, supporting more than 3 million employees.
• Employee Support: Made special payments to front-line employees and provided additional paid days off to all employees. Expanded access to medical resources.

Diversity and Inclusion

• Commitment: Highlighted the importance of diversity and inclusion, noting that more than 50% of the workforce is ethnically diverse.
• Advancing Black Pathways: Announced initiatives to help black people achieve economic success.
• Improving Policies: Mentioned efforts to enhance employee feedback processes, increase accessibility to products and services, and improve hiring systems.

Future Outlook

• Economic Recovery: Emphasized the importance of preparing for the reopening of the economy and ensuring the recovery is inclusive.
• Sustainability Efforts: Discussed commitments to sustainability, including financing $200 billion for sustainable development and implementing restrictions on certain fossil fuel activities.
• Climate Change: Supported the Paris Agreement and outlined steps taken to manage climate-related risks and opportunities.
• Long-Term Challenges: Acknowledged issues such as education, healthcare, and infrastructure and called for solutions to address these problems.

Succession Planning

• Board Engagement: Praised the Board’s engagement in critical matters, including strategy, culture, CEO compensation, and succession planning.
• Personal Health and Role: Stated that he is in good health and enjoys his role as Chairman and CEO. He intends to continue in the job to the best of his abilities.
• Leadership Development: Regularly discusses succession planning with Gordon Smith and Daniel Pinto to ensure the company has the right leaders in key roles.

Closing Remarks

• Employee Appreciation: Expressed deep gratitude to all employees for their hard work and dedication.

• Future Direction: Reaffirmed the company’s commitment to being the best in class in every way.

• Thank You: Concluded by thanking everyone for their participation and feedback.

Stacey Friedman, the Executive Vice President and General Counsel of JPMorgan Chase & Co., made several statements during the Shareholder/Analyst Call on May 19, 2020. Here is a detailed list of her statements:

1. Introduction and Formalities:

   • She welcomed everyone to the meeting and outlined the formalities and agenda.
   • Mentioned the distribution of documents including the proxy statement, annual report, and shareholder list.
   • Introduced representatives from American Election Services, LLC, serving as inspectors of the election.
   • Noted the presence of Kathryn Kaminsky, the audit partner from PricewaterhouseCoopers, attending by phone.

2. Technical Instructions:

   • Provided instructions for handling technical issues such as loss of audio or webcast connection.
   • Explained the procedure in case of a technical disruption that prevents the continuation of the meeting.

3. Virtual Meeting Conduct:

   • Described how the meeting would be conducted solely through remote communications.
   • Encouraged shareholders to submit questions and provided guidelines for participation.
   • Emphasized the rules of conduct for the meeting.

4. Proxy Voting Update:

   • Announced that proxies had been received representing over 85.25% of the outstanding shares eligible to vote.
   • Invited shareholders who had not yet voted to do so using the link provided on the meeting website.

5. Forward-Looking Statements Disclaimer:

   • Reminded attendees that the remarks might contain forward-looking statements and referred them to the annual report for a disclaimer.

6. Introduction of Proposals:

   • Moved all of the management proposals as set forth in the proxy statement, including the election of directors, an advisory resolution to approve executive compensation, and the ratification of the independent registered public accounting firm.

7. Invitation to Shareholder Proponents:

   • Invited shareholder proponents to introduce their proposals, emphasizing time limits and topic restrictions.

8. Response to Questions:

   • Invited Jason R. Scott, Head of Investor Relations, to read questions from shareholders regarding the proposals.
   • Provided responses to questions related to the election of directors, including the practice of ensuring a diverse slate of candidates.

9. Preliminary Vote Results:

   • Read the preliminary vote results for each proposal, including the election of directors and the other proposals.

10. General Questions and Comments:

    • Invited shareholders to submit general questions and comments, clarifying that personal questions would be addressed separately after the meeting.

11. Closing Remarks:

    • Concluded the discussion period and thanked Jason Scott for curating the questions.
    • Invited Jamie Dimon to make closing remarks and adjourn the meeting.

These statements cover Stacey Friedman’s role in facilitating the formal proceedings, managing the agenda, and overseeing the question-and-answer session.