JP Morgan Chase
June 28, 2011 – 3:26 pm
Business Profile
JPMorgan Chase is a financial holding firm incorporated under the laws of Delaware in 1968. It is the leading financial services company and one of the largest banking firms in US. The bank had $1.4 trillion in assets and $115.8 billion in stockholders’ equity. The bank offers financial services for businesses and consumers, investment banking, processing of financial transaction, private equity and asset management. The bank provide services to millions of consumers in US and several institutional, government and corporate clients under the Chase and JPMorgan brands.
The Company generated total revenues (including net interest income and non interest income) of $61.4 billion in 2006, up 14.3% from $53.7 billion in 2005.
The bank merged with Bank One Corporation on July 1, 2004. The holding company operates through its two principal banking subsidiaries: JPMorgan Chase Bank, National Association, a banking association operating across US with branches in seventeen states and Chase Bank USA, National Association, a national bank which operates credit card business of the firm. J.P. Morgan Securities Inc., a US investment banking firm, is the financial holding company’s principal non-bank subsidiary.
JPMorgan Chase’s operates through six business units and a corporate segment. The Company’s wholesale businesses consist of the Commercial Banking, the Investment Bank, Asset Management, and Treasury & Securities Services segments. The Company’s consumer businesses operations comprise the Card Services and Retail Financial Services segments.
Investment Bank. The investment banking business is operated under the JPMorgan brand. JP Morgan is one of the prominent investment banking firms in the world and has broad product offerings and client relationships. The Investment Bank’s customers are financial institutions, corporations, institutional investors and government. JP Morgan provides a comprehensive range of investment banking services and products in major markets. These includes advisory services for corporate on structure and strategy, capital raising in debt and equity markets, risk management solutions, market-making in derivative instruments and cash securities, and research. The Investment Bank also deploys the holding company’s capital to proprietary trading and investing activities.
Retail Financial Services. The bank’s Retail Financial Services segment includes Mortgage Banking, Regional Banking, and Auto Finance businesses and serves number of businesses and consumers. The segment provides easy consumer banking products and services through the network of more than 3,000 retail bank branches, 270 mortgage branches and approximately 8,500 ATMs. Primary services offering of the retail financial services segment include mortgage, savings and checking accounts, business and home equity loans, insurance and investments. The bank ranks fourth and third in US in terms of retail branches and ATM network, respectively. The segment has relationships with over 4,300 universities and schools, and 15,000 auto dealers. The segment has deployed over 11,000 branch salespeople and 1,200 mortgage officers to assist customers across US.
The segment is also one of the top five originators and servicer of mortgage, second-largest originator of home equity, the largest originator of non-captive automobile loans and one of the leading originators of student loan.
Card Services. The Company operates its card business through Chase Card Services which is one of the US’ largest credit cards issuing entity. The segment has over 154 million cards under circulation and has a portfolio of managed loans worth $152.8 billion. The segment witnessed Chase card transactions amounting to $339 billion in 2006. The segment offers a broad array of cards catering to the requirements of small businesses, individual consumers and partner organizations.
The offerings include cards issued with Amazon, AARP, Continental Airlines, Southwest Airlines, Marriott, Sony, Walt Disney Company, United Airlines, as well as many other organizations and brands. The Company’s private-label cards portfolio includes cards issued with Kohl’s, Circuit City, BP and Sears Canada. The Company is the largest Visa and MasterCard payment processor in the world and operates this business through Chase Paymentech Solutions, a joint venture between First Data Corporation and JPMorgan Chase. In 2006, the entity handled more than 18 billion transactions.
Commercial Banking. Commercial Banking segment serves over 30,000 customers, including municipalities, corporations, not-for-profit organizations and financial institutions. The segment’s clients typically have annual revenues between $10 million and $2 billion. Commercial Banking segment provides a comprehensive products and services including treasury services, lending, asset management and investment banking.
Treasury & Securities Services. Treasury & Securities Services segment provides information, transaction and investment services and is one of the leading providers of cash management solution. The segment’s Treasury Services offers trade finance, cash management products, wholesale card services and products, and liquidity management to small and medium sized organizations, financial institutions, government entities and multinational corporations. The segment’s Securities Services carries out storage, valuation, clearing and servicing of securities and other alternative investments for broker-dealers and investors; and manages global Depositary Receipts.
Asset Management. The segment is a global leader in wealth management and investment with total assets under management of $1.3 trillion. The Company’s Asset Management segment serves retail investors, institutions, and high-net-worth clients across the world. The segment offers investment management in fixed income, equities, hedge funds, real estate, and private liquidity and equity.