JP Morgan Chase 2005 Annual Report Download - page 45

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JPMorgan Chase & Co. /2005 Annual Report 43
Selected metrics
Year ended December 31,(a)
(in millions, except ratios and
where otherwise noted) 2005 2004 2003
Business metrics (in billions)
Selected ending balances
Small business loans $ 12.7 $ 12.5 $ 2.2
Consumer and other loans(b) 1.7 2.2 2.0
Total loans 14.4 14.7 4.2
Core deposits(c) 152.3 146.3 66.4
Total deposits 181.9 171.8 76.7
Selected average balances
Small business loans $ 12.4 $ 7.3 $ 2.1
Consumer and other loans(b) 2.0 2.1 2.0
Total loans 14.4 9.4 4.1
Core deposits(c) 149.0 109.6 64.8
Total deposits 175.1 126.2 74.4
Number of:
Branches 2,641 2,508 561
ATMs 7,312 6,650 1,931
Personal bankers 7,067 5,750 1,820
Personal checking accounts (in thousands)(d) 7,869 7,235 1,984
Business checking accounts (in thousands)(d) 924 889 347
Active online customers (in thousands) 4,231 3,359 NA
Debit cards issued (in thousands) 9,266 8,392 2,380
Overhead ratio 65% 74% 97%
Retail brokerage business metrics
Investment sales volume $ 11,144 $ 7,324 $ 3,579
Number of dedicated investment sales
representatives 1,449 1,364 349
Credit data and quality statistics
Net charge-offs
Small business $ 101 $77$35
Consumer and other loans 40 77 40
Total net charge-offs 141 154 75
Net charge-off rate
Small business 0.81% 1.05% 1.67%
Consumer and other loans 2.00 3.67 2.00
Total net charge-off rate 0.98 1.64 1.83
Nonperforming assets $ 283 $ 299 $ 72
(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.
(b) Primarily community development loans.
(c) Includes demand and savings deposits.
(d) Prior periods amounts have been restated to reflect inactive accounts that should have
been closed during those periods.
Auto & Education Finance
Auto & Education Finance provides automobile loans and leases to consumers
and loans to commercial clients, primarily through a national network of
automotive dealers. The segment is also a top provider of loans to students
at colleges and universities across the United States.
Selected income statement data
Year ended December 31,(a)
(in millions) 2005 2004 2003
Total net revenue $ 1,467 $ 1,145 $ 842
Provision for credit losses 212 210 205
Noninterest expense 751 490 291
Operating earnings 307 270 206
(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.
2005 compared with 2004
Operating earnings were $307 million, up $37 million from the prior year.
The current year included a net loss of $83 million associated with a
$2.3 billion auto loan securitization; a net loss of $42 million associated
with a $1.5 billion auto loan securitization; a $40 million charge related
to the dissolution of a student loan joint venture; a benefit of $34 million
from the sale of a $2 billion recreational vehicle loan portfolio; and the
$20 million special provision for credit losses related to Hurricane Katrina.
The prior-year results included charges of $65 million related to auto lease
residuals. Excluding the after-tax impact of these items, operating earnings
would have increased by $90 million over the prior year, primarily due to the
Merger and improved credit quality. Results continued to reflect lower
production volumes and narrower spreads.
2004 compared with 2003
Operating earnings totaled $270 million, up 31% from the prior year. The
increase was due to the Merger, offset by narrower spreads and reduced
origination volumes reflecting a competitive operating environment.
Total net revenue increased by 36% to $1.1 billion from the prior year.
This increase was due to the Merger, which more than offset a decline in net
interest income, reflecting the competitive operating environment in 2004, and
incremental charges associated with the Firm’s auto lease residual exposure.
The following is a brief description of selected terms used by Consumer & Small Business Banking.
• Personal bankers – Retail branch office personnel who acquire, retain and expand new and existing customer relationships by assessing customer needs
and recommending and selling appropriate banking products and services.
• Investment sales representatives – Licensed retail branch sales personnel, assigned to support several branches, who assist with the sale of investment
products including college planning accounts, mutual funds, annuities and retirement accounts.