JP Morgan Chase 2005 Annual Report Download - page 40

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Management’s discussion and analysis
JPMorgan Chase & Co.
38 JPMorgan Chase & Co. /2005 Annual Report
Composition of revenue
Asset
Year ended Trading- Lending & management,
December 31,(a) Investment related deposit administration Other Net interest Total net
(in millions) banking fees revenue related fees and commissions income income revenue
2005
Investment banking fees $ 4,096 $ — $ —$ — $ — $ — $ 4,096
Fixed income markets — 5,673 251 219 365 734 7,242
Equities markets — 350 — 1,462 (88) 75 1,799
Credit portfolio — 116 343 43 338 601 1,441
Total $ 4,096 $ 6,139 $ 594 $ 1,724 $ 615 $ 1,410 $ 14,578
2004
Investment banking fees $ 3,572 $ — $ —$ — $ — $ — $ 3,572
Fixed income markets — 5,008 191 287 304 524 6,314
Equities markets — 427 — 1,076 (95) 83 1,491
Credit portfolio — 6 348 37 119 718 1,228
Total $ 3,572 $ 5,441 $ 539 $ 1,400 $ 328 $ 1,325 $ 12,605
2003
Investment banking fees $ 2,871 $ — $ — $ — $ — $ — $ 2,871
Fixed income markets — 6,016 107 331 84 449 6,987
Equities markets — 556 — 851 (85) 84 1,406
Credit portfolio — (186) 333 35 104 1,134 1,420
Total $ 2,871 $ 6,386 $ 440 $ 1,217 $ 103 $ 1,667 $ 12,684
(a) 2004 results include six months of the combined Firm’s results and six months of heritage JPMorgan Chase results. 2003 reflects the results of heritage JPMorgan Chase only.
IB revenues comprise the following:
Investment banking fees includes advisory, equity underwriting, bond underwriting and loan syndication fees.
Fixed income markets includes client and portfolio management revenue related to both market-making and proprietary risk-taking across global fixed income
markets, including government and corporate debt, foreign exchange, interest rate and commodities markets.
Equities markets includes client and portfolio management revenue related to market-making and proprietary risk-taking across global equity products,
including cash instruments, derivatives and convertibles.
Credit portfolio revenue includes Net interest income, fees and loan sale activity, as well as gains or losses on securities received as part of a loan restructuring,
for IB’s credit portfolio. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities, and changes
in the credit valuation adjustment (“CVA”), which is the component of the fair value of a derivative that reflects the credit quality of the counterparty. See
pages 69–70 of the Credit risk management section of this Annual Report for a further discussion.