JPMorgan and NYCB market outlook charts and Astoria acquisition delay discussion

Chart 33: As a current or prospective JPM shareholder, what do you think is most important for the stock to continue its outperformance next year? 70% 62% 60% 50% 40% 30% 20% 14% 10% 14% 10% 0% Top-line revenue Continued Positive shiftin the | Accelerating More clarity on growth expense interest rate capital return —_ regulatory and/or management backdrop litigation issues facing the industry Source: BofA Merrill Lynch Global Research = JPM cautious on CRE; however, overall credit remains benign. Forty-eight (48%) percent of the audience polled believe concerns around multi-family fundamentals will be concentrated in certain regions. Although credit for the overall bank remains benign, Mr. Petno believes we are in the later stages of the real estate cycle and expressed a cautious tone on the high-end condo/construction market. That said, JPM is primarily exposed to more stable, multi-family credit (i.e. rent-controlled apartments) where the average loan to value is 60%. Chart 34: How do you view fundamentals for multifamily lending in 2017? 60% 50% 40% 30% 20% 10% 0% Softening Softening Softening | Someconcern, but No concern fundamentals fundamentals fundamentals only in certain should leadto shouldleadto | shouldleadto —_—regions and at slower financing worsening credit slower financing certain rental price activity next year metrics activity and points worsening credit metrics Source: BofA Merrill Lynch Global Research = With tech/digital intellectual property at fingertips, capabilities within CB are on horizon. Mr. Pento expressed his intention to leverage the technology that the Investment Bank has and the investments that the Consumer Bank has to build the right digital and mobile platforms for the bank’s commercial clients. He noted that they have the largest investment and digital budgets ever this year and expect it to increase next year. New York Community Bancorp (NYCB) C-1-8, Buy Completion of Astoria acquisition best outcome for both banks: Following the recent announcement of a regulatory delay in getting approval for the Astoria acquisition, NYCB CEO Joe Ficalora and CFO Thomas Cangemi reiterated that closing the Astoria deal represents the best outcome for both banks. Beyond that management was limited in its ability to talk about what particular factors led to the delay and refrained from providing a specific timeline to close the deal assuming that the BoDs at both banks agree to extend the deal deadline beyond ea Bankof America 22 2016 Future of Financials Conference | 17 November 2016 Merrill Lynch HOUSE_OVERSIGHT_014336