JP Morgan Chase 2005 Annual Report Download - page 19

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Major 2005 accomplishments
• Achieved double-digit growth in treas-
ury services by cross-selling liability
balances, products and services.
• Increased significantly the penetration
of investment banking capabilities to
the entire client base.
• Enhanced the local coverage model
by strengthening leadership through
strategic hiring and talent management,
and by promoting diversity and devel-
oping employees.
• Established a dedicated team to provide
advice and financial solutions to clients
with multinational needs.
• Converted more than , customer
relationships to a single deposit system,
providing access to Chase’sextensive
branch network.
• Created operating efficiencies by
integrating the heritage firms’ business
credit and leasing business systems.
• #1 large middle-market lender in the United States (Loan Pricing Corporation, 2005)
• #1 asset-based lender in the United States (Loan Pricing Corporation, 2005)
• 42% market penetration and 14% lead share in our 15-state footprint, nearly twice the lead
share and penetration of our nearest competitor (2005 SRBI Footprint Study)
• Average liability balances increased by more than $5.2 billion (up 8%), and average loan volumes
grew by more than $1.9 billion (up 4%)
• Aircraft and Municipal leasing specialties expanded by leveraging existing expertise
17
(In millions, except ratios)
2005 2004
Total net revenue $3,596 $3,417
Operating earnings 1,007 992
Return on common equity 30% 29%
Overhead ratio 52% 54%
Pro forma
Commercial Banking
2005 highlights
Commercial Banking serves more than
25,000 clients, including corporations,
municipalities, financial institutions
and not-for-profit entities, with annual
revenues generally ranging from
$10 million to $2 billion. While most of
our Middle Market clients are within
the Retail Financial Services footprint,
Commercial Banking also covers larger
corporations, as well as local govern-
ments and financial institutions on a
national basis.
Weare a market leader with superior
client penetration across the businesses
we serve. Local market presence,
coupled with industry expertise and
excellent client service and risk man-
agement, enables us to offer superior
financial advice. Partnership with other
JPMorgan Chase businesses positions
us to deliver broad product capabilities
–including lending, treasury services,
investment banking, and asset and
wealth management – and meet all our
clients’ financial needs.
2006 and beyond
• Cross-sell the company’s extensive
product set to our existing client
base while maintaining strong credit
fundamentals.
• Expand market share through
increased prospect conversion, while
focusing on prudent client selection.
• Optimize our use of client and
competitor information to drive
best practices regarding the coverage
model, product delivery and cus-
tomer service. Direct investment
resources and product capability to
the highest-potential market sectors.
• Outperform our peers in managing
credit and operational risk.
• Continue to leverage industry exper-
tise, global capabilities and geographic
presence as a competitive advantage.
•Strengthen workforce through target-
ed training on combined product and
service capabilities. Continue to focus
on diversity efforts and initiatives.
All 2004 information is on a pro forma combined-
operating basis. See page 1 for details.