JP Morgan Chase 2005 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2005 JP Morgan Chase annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

18
Major 2005 accomplishments
•Delivered double-digit revenue growth
and increased net earnings by %.
•Acquired Vastera to become the first
financial institution to offer a complete,
integrated global trade solution sup-
porting both the movement of goods
and financial settlements.
•Built out alternative investment services
by launching JPMorgan Private Equity
Fund Services, which provides adminis-
tration services to global private equity
firms and institutional limited partners.
•Accomplished  major merger mile-
stones, contributing to the firm’s largest
systems upgrade and the integration of
Texas operations, and creating a single
processing platform for U.S. dollar
funds transfers.
•Consolidated two securities processing
organizations into one, Worldwide
Securities Services, to leverage the
client base and product offerings and
to achieve efficiencies.
2005 highlights
Treasury & Securities Services
Treasury & Securities Services (TSS) is a
global leader in transaction, investment
and information services that support
the needs of chief financial officers,
treasurers, issuers and investors world-
wide. TSS operates through two divisions:
Treasury Services
(TS) moves, concen-
trates and invests client money, and
provides trade finance and logistics
solutions. The business ranks first in U.S.
dollar clearing, processing an average
of $3.2 trillion in wire transfers daily.
Worldwide Securities Services
(WSS)
safekeeps, values, clears and services
securities and portfolios for investors
and broker-dealers; provides trustee
and agent services; and is a leading
manager of American Depositary
Receipt programs. WSS is the world’s
largest global custodian, with $11.2
trillion in total assets under custody
and $6.8 trillion of trust securities
under administration.
• Double-digit year-over-year growth in assets under custody (up 21%), Automated Clearing
House Originations (up 18%), International Electronic Funds Transfer volume (up 92%) and
wholesale cards issued (up 12%)
• #1 in U.S. Dollar Treasury Clearing(a), Commercial Payments(a), Automated Clearing House
Originations(b), CHIPS(c) and Fedwire(d)
•#1 Trustee for new U.S. Corporate Debt, excluding asset- and mortgage-backed securities
(by number of issues), and Global Trustee of U.S. Collateralized Debt Obligations(e)
• #1 U.S. Commercial Paper Issuing & Paying Agent(e)
• Liability balances increased by $29.3 billion, to $164.3 billion
2006 and beyond
• Focus on product delivery by
customer segment.
• Continue to expand alternative
investment services.
• Leverage the full capabilities of the
firm to develop innovative solutions
and cross-sell products with the
Investment Bank, Commercial
Banking, Small Business and Asset
& Wealth Management.
• Achieve market differentiation by
delivering competitively superior
client service.
• Continue to focus on productivity
and expense control to maximize
earnings and fund investments in
the business.
• Invest in technology and people
to improve productivity and ensure
the reliability needed to support
quality client service and future
business growth.
(a) FImetrix
(b) NACHA
(c) The Clearing House
(d) Federal Reserve
(e) Thomson Financial
All 2004 information is on a pro forma combined-
operating basis. See page 1 for details.
(In millions, except ratios) 2005 2004
Total net revenue $6,241 $ 5,400
Operating earnings 1,037 437
Return on common equity 55% 23%
Pre-tax operating margin 26% 12%
Pro forma