Mission Statement
Our company was built with hard work over 200 years. We would like to create a company that all can be proud of, and we are confident that, working together, we will built the best financial services company in the world.
# 17 in Fortune 500
Company Type Public (NYSE: JPM) Fiscal Year-End December Year2005 Sales (mil.) $79,902.0 1-Year Sales Growth 40.3% 2005 Net Income (mil.) $8,483.0 1-Year Net Income Growth 89.9% 2005 Employees 168,847 1-Year Employee Growth 4.9% Rankings #17 in FORTUNE 500 S&P 500 Dow Jones Industrials Dow Jones Global Titans #22 in FT Global 500
Quick Overview
JPMorgan Chase was formed in 2001 when Chase Manhattan and J.P Morgan merged 2004 JPMorgan Chase Acquired BANK ONE for $60 Billion worth of stock. JPMorgan Chase and Co. is now the thirdthirdlargest financial services firm in the U.S. JPMorgan is now diversified in 50 different countries.
Key People
Chairman William B. (Bill) Harrison Jr. President, CEO, and Director James (Jamie) Dimon CFO Michael J. Cavanaugh CIO Austin A. Adams Head, Strategy and Business Development Jay Mandelbaum
Top Competitors
Bank of America # 12 in Fortune 500 Citigroup #8 in Fortune 500 Merrill Lynch #34 in Fortune 500
Bank of America Citigroup Merrill Lynch ABN AMRO HSBC USA ING Direct USA American Express Bank of New York Bear Stearns CIBC Capital One Citigroup Global Markets Credit Suisse (USA) Deutsche Bank Goldman Sachs HSBC Finance HSBC Holdings Lehman Brothers Morgan Stanley RBC Financial Group UBS
Operates in more than 50 countries around the world Active domestically in the United States. Consist of 2,600 locations across 17 states.
Annual Cash Flow Statement
Net Operating Cash Flow Net Investment Cash Flow Net Financing Cash Flow Net Change In Cash Depreciation and Amortization Cash Dividends Paid
Dec 05 Dec 04 30,236.0 21,805.0 12,944.0 23,076.0 45,069.0 59,596.0 1,502.0 14,900.0 4,318.0 4,878.0 3,835.0 3,927.0
Dec 03 14,601.0 12,418.0 26,251.0 1,050.0 3,101.0 2,865.0
* In Millions
Annual Income Statements
Year Revenue
Gross Profit
10,295.0
Income
27,289.0
Total Net Income
8,483.0
Dec 05 79,902.0
Dec 04 56,931.0
4,600.0
15,428.0
4,466.0
Dec 03 44,363.0
0.0
21,135.0
6,719.0
Subsidiaries/Affiliates
Chase Paymentech Solutions LLC JPMorgan Asset Management Holdings Inc. JPMorgan Private Banking JPMorgan Chase Vastera JPMorgan Securities Inc. JPMorgan Worldwide Securities Services Neovest Inc.
Dedication
Despite their powerhouse growth, they remain committed to the success of the individual companies they serve. But that·s not all. They also remain dedicated to the local communities where they do business. From charitable giving to employee volunteerism, from underwriting community projects to expanding services, their strong support of local communities will continue to grow.
Friendly
Chase Commercial Banking continues to believe in local decision-making, local delivery, and local decisionservice. This ensures that, no matter how much they grow, they·ll continue to make their decisions where you live, work, and do business.
Industry Analysis
Total Market Size
Consumers Small businesses Commercial Banking Corporate businesses International Businesses 90 million consumers nationwide
Financial Industry Distribution occurs through e-commerce, mail eand personal interaction.
Key customers for the financial banking industry are the obvious consumers, small business and commercial banking.
Competition
JPMorgan Chase competitors are primarily in the Money Center Banks industry. JPMorgan Chase also competes in the Online Banking, Private Banking, and Asset Management sectors.
Key Players
JPMorgan·s main 3 competitors are: Bank of America Citigroup Merrill Lynch
Bank of America
The nation's first coast-to-coast bank coast-toBank of America ´fattened upµ by purchasing northeastern banking behemoth FleetBoston in 2004 for almost $50 billion. The second-largest bank in the US by assets secondThe country's most extensive branch network, with more than 5,800 locations
Citigroup
´Another day, another dollar -- 67 million of them.µ That's approximately what Citigroup, one of the world's largest financial services firms, reaped in net profits every single day of 2005. The first US bank with more than $1 trillion in assets It has more than 3,000 bank branches and consumer finance offices in the US and Canada, plus an additional 1,500 locations in about 100 other countries.
Merrill Lynch
The firm offers financial services for private, institutional, and government clients, including mutual fund, insurance, annuity, trust, and clearing services, besides traditional investment banking and brokerage. Lynch operates in three segments: the Global Markets and Investment Banking Group, which generates more than Group, half of its sales; Global Private Client Group, which is its Group, wealth management side; and Merrill Lynch Investment Managers, Managers, which the firm is merging with Black Rock.
Economic Growth and Profitability
Return on Equity Return on Assets Return on Invested Capital PrePre-Tax Profit Margin PostPost-Tax Profit Margin Net Profit Margin (Total Ops) Debt/Equity Ratio Total Debt/Equity Ratio
6.8% 0.5% 3.2% 12.2% 8.4% 8.4% 1.09 1.4
Technology Trends
´The New York bank, the third largest in the U.S., has in fact become one of the biggest spenders on technology that Wall Street has ever seen.µ (businessweek.com) JPMorgan launched the Blink credit card, which lets users hold the card in front of a reader instead of swiping, signing, entering a PIN, or handing the card to a store employee. Approval for a home equity loan now takes two hours, vs. two days a few years ago. The investment bank is getting a $1 billion annual budget for technology.
Environmental Trends Impacting the Industry
Economic fundamentals Low interest rates Increasing regulatory requirements Internet technologies Consolidation Business models
Globalization
JPMorgan is a global leader in providing innovative products and services to the world's largest institutional investors and debt and equity issuers. With $11.5 trillion in assets under custody, the business also services $7 trillion in debt worldwide.
Globalization Continued
In March 2006, Global Custodian announced the results of its Tri-Party Securities Financing Survey. TriJPMorgan was the only provider to be top rated in the Europe, North America and Global categories of the survey. Global Custodian cited JPMorgan's position as "the first genuinely global tri-party provider...winning top ratings on both trisides of the Atlantic and in the overall category."
E-Business trends within the industry
IBM outsourced ´to automate the creation statement of position statements on demand for any particular customer accountµ Online Banking