October 13, 2015
F I N A N C I A L R E S U L T S
3Q15
F I N A N C I A L R E S U L T S
3Q15 Financial highlights
1
See note 2 on slide 18
2
Represents estimated common equity Tier 1 (“CET1”) capital and ratio under the Basel III Fully Phased
-In capital rules to which the Firm will be subject to as of January 1, 2019. See note 3 on slide 18
3
See note 1 on slide 18
4
Last twelve months (“LTM”). Net of employee issuances
5
See note 8 on slide 19
6
See note 4 on slide 18
7
Reduction in non-operating deposits also includes balances previously reported in CP sweep accounts
8
See note 1 on slide 19
9
Net of employee issuance
10
The repurchase amount is presented on a settlement-date basis
11
Assumes a tax rate of 38% for items that are tax deductible
3Q15 reported net income of $6.8B and EPS of $1.68; net income of $5.4B, EPS of $1.32 and ROTCE
1
of 12%
excluding tax benefits, legal expense and net reserve releases
5
Revenue of $23.5B
3
Adjusted expense of $14.0B
6
and adjusted overhead ratio of 60%
6
Fortress balance sheet
Balance sheet down by $156B YTD, driven by reduction in non-operating deposits of over $150B
7
Core loans
8
up 15% YoY and 4% QoQ
Basel III Fully Phased-In CET1 capital of $172B
2
, Advanced and Standardized ratios of 11.4%
2
Delivered strong capital return
$2.7B
9
of net capital returned to shareholders in 3Q15, including $1.0B of net repurchases
10
Common dividend of $0.44 per share
ROTCE
1
15%
Overhead ratio
3
65%
Net payout ratio LTM
4
49%
CET1 ratio
2
11.4%
Significant items ($mm, excluding EPS)
Reserve releases/(builds)EPS
11
Consumer$0.10Wholesale(0.05)
Net releases$0.05
Pretax Net income
11
EPS
11
Firmwide Legal Expense($1,347)($973)($0.26)Firmwide Tax Benefits
–
2,164 0.57
1
F I N A N C I A L R E S U L T S
3Q15 Financial results
1
Note: Certain prior period amounts have been revised; see note 2 on slide 19
1
See note 1 on slide 18
2
Actual numbers for all periods, not over/(under)
3
See note 2 on slide 18
4
See note 4 on slide 18
$mm, excluding EPS
$ O/(U)3Q15 2Q15 3Q14 Revenue (FTE)
1
$23,535 ($996)($1,611)Expense15,368 868 (430) Credit costs682 (253) (75) Reported net income$6,804 $514 $1,239 Net income applicable to common stockholders$6,270 $494 $1,142 Reported EPS$1.68 $0.14 $0.33 ROE
2
12%11%10%ROTCE
2,3
15 14 13 Overhead ratio
1,2
65 59 63
Memo: Adjusted expense
4
$14,021 ($188)($715)
Memo: Adjusted overhead ratio
1,2,4
60%58%59%
3Q15 ROE O/H ratio
CCB20%57%CIB8%75%CB14%44% AM20%73%
2
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