JP Morgan Chase Get Smart

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JP Morgan Chase Overview

JP Morgan Chase has a history over 200 years old, and possess global financial assets of $2.6 trillion. They operate in over 60 countries, with more than 240,000 global employees, and serve every aspect of the financial industry, from small business to personal banking to credit cards and treasury services. A board of directors and executives oversees the various branches of the organization. Below is an overview on their structure, division names, and key executives. Further, current performance is discussed using the most relevant financial reports available (from Q4 2017).

KEY EXECUTIVES

James Dimon, Chairman, CEO & President
Marianne Lake, CFO and Executive VP
Daniel E. Pinto, CEO of Corporate & Investment Bank and CEO of Europe Middle East & Africa
Mary Callahan Erdoes, Chief Executive Officer of Asset & Wealth Management

BOARD OF DIRECTORS

Linda B. Bammann, retired Deputy Head of Risk Management, works with Risk Policy Committee.

James A. Bell, retired Executive Vice President of The Boeing Company, works with the Audit Committee.

Crandall C. Bowles, current Chairman Emeritus of The Springs Company, works with the Audit Committee and the Public Responsibility Committee.

Stephen B. Burke, Chief Executive Officer of NBCUniversal, LLC, works with the Compensation & Management Development Committee, and the Corporate Governance & Nominating Committee.

Todd A. Combs, Investment Officer at Berkshire Hathaway Inc., and works with the Public Responsiblity Committee and the Risk Policy Committee.

James S. Crown, Director of General Dynamics Corporation, works with the Risk Policy Committee.

James Dimon, Chairman & CEO of JP Morgan Chase, Chairman of the Board.

Timothy P. Flynn, retired Chairman of KPMG International, works with the Audit Committee and the Public Responsibility Committee.

Laban P. Jackson, Jr., Director of J.P. Morgan Securities, and Chairman and Chief Executive Officer of Clear Creek Properties, Inc., and works with the Audit Committee.

Michael A. Neal, retired Vice Chairman of General Electric Company, and works with the Risk Policy Committee.

Lee R. Raymond, retired Chief Executive Officer of ExxonMobile, works with the Compensation & Management Development Committee, and the Corporate Governance & Nominating Committee.

William C. Weldon, retired Chief Executive Officer of Johnson & Johnson, works on the Compensation & Management Development Committee, and the Corporate Governance & Nominating Committee.

BOARD COMMITTEES

Compensation & Management Committee
Corporate Governance & Nominating Committee

DIVISIONS

There are numerous divisions with JP Morgan Chase, and they are bucketed into five core division groups: Asset & Wealth Management, Commercial Banking, Consumer & Community Banking, Corporate & Investment Bank, and Cross-firm functions. Below are the subdivisions within each core division:

-Asset Management
-Wealth Management
-Commercial Term Lending
-Community Development Banking
-Corporate Client Banking & Specialized Industries
-Credit Markets & Treasury Services
-International Banking
-Middle Market Banking & Specialized Industries
-Real Estate Banking
-Auto Finance
-Business Banking
-Card Services
-Chase Merchant Services
-Chase Wealth Management
-Consumer Banking
-Home Lending
-Corporate Banking
-Global Knowledge Network
-Investment Banking
-Investor Services
-Public Finance
-Quantitative Research
-Markets
-Treasury Services and Trade
-Audit
-Compliance
-Corporate Responsibility
-Global Finance & Business Management
-Human Resources
-Legal
-Marketing & Communications
-Operations
-Regulatory Capital Management Office
-Risk Management
-Strategy
-Technology
-Treasury & Chief Investment Office

CURRENT PERFORMANCE

As previously stated, JP Morgan Chase reported a net income of $4.2 billion in the 4th quarter of 2017, with a full-year 2017 net income of $24.4 billion. Average core loans were up 6% YoY and 2% QoQ, as they maintained their ranking of #1 in Global Investment Banking Fees, with an 8.1% wallet share. Further, they reported record assets under management (AUM), of $2.0 trillion, up 15%.

Additionally, recent federal tax cuts led JP Morgan Chase to announce in January 2018 that they will build 400 new branches, and over 22,000 employees will receive hourly wage increases, with new hourly pay ranges between $15 and $18. They also reported a goal of increasing their small business lending by 20% (to $4 billion) within the next three years.

Various financial tables are included in their Q4 2017 financial report, which are highlighted below, and they link through to the report, as requested.

Net Revenue of 3rd and 4th quarters in 2016 and 2017
-Provides net revenue-managed, non-interest expense, provision for credit losses, net income, earnings per share, return on common equity, and return on tangible common equity.
Consumer & Community Banking Results, 3rd and 4th quarters in 2016 and 2017
-Details net revenue, consumer & business banking, home lending, card, merchant services & auto, non-interest expense, provision for credit losses, and net income.
Corporate & Investment Bank Results, 3rd and 4th quarters in 2016 and 2017
-Details net revenue, banking, market & investor services, non-interest expense, provision for credit losses, and net income.
Commercial Banking Results, 3rd and 4th quarters in 2016 and 2017
-Provides net revenue, non-interest expense, provision for credit losses, and net income.
Asset & Wealth Management, 3rd and 4th quarters in 2016 and 2017
-Provides net revenue, non-interest expense, provision for credit losses, and net income.
Corporate, 3rd and 4th quarters in 2016 and 2017
-Provides net revenue, non-interest expense, provision for credit losses, and net income/loss.

case study

The case study details how a large firm approached J.P. Morgan looking to improve their 401(k) account. The firm "investment solution that offered flexibility and control, and employed a leading technology infrastructure that allowed them to implement a custom target-date fund structure into their retirement plan in a cost-efficient and flexible manner".

The solution was for JP Morgan to "manage and service their new target-date fund offering. The deciding factors included the firm’s offering of an integrated end-to-end, bundled target-date fund solution at a compelling price, innovative investment strategies, and the ability to support this complex, customized open architecture".

conclusion

Based on the successful performance reported by JP Morgan Chase in Q4 of 2017, and their recent announcement to expand, JP Morgan Chase is currently performing well within the financial market, and is projecting to grow within the next three years.
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