JP Morgan Chase 2009 Annual Report Download - page 10

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and trade execution – largely was concentrated
in the United States. We now are growing this
business in Europe and Asia. Across the busi-
ness, we will continue to invest in enhancing
our technology, spending $1 billion this year
on upgrades and innovations. We also are
expanding our coverage in key markets,
including China, India and Brazil – essentially
by adding investment banking and trading
professionals and providing them with the
corresponding support they need (i.e., credit and
systems) to cover more corporate and investor
clients in these markets. For example, in the last
five years in India, we have gone from covering
36 companies to 180 companies. We will simply
grow with the emerging economies.
Cazenove
At the end of 2009, we announced that our
U.K. joint venture with Cazenove Group
Limited would become a wholly owned part of
J.P. Morgan. Our initial investment in Cazenove
in 2005 was extremely successful – among
other things, it increased our U.K. investment
banking market share* from 5% to 13%. We
welcome all of these employees to J.P. Morgan –
Cazenove’s long tradition of integrity and client
service sets a standard for all of us.
Commodities
We continue to build out our Commodities
franchise. Price fluctuations in commodities
like oil, gas and electricity aect many compa-
nies throughout the world. We help our corpo-
rate clients manage this risk by enhancing
our trading and warehousing capacity. Since
2006, our Commodities business has more
than doubled its revenue from serving clients.
In February 2010, we announced our agree-
ment to purchase a portion of RBS Sempra’s
commodities business for $1.7 billion. This
acquisition will give us the ability in Europe to
trade oil, gas and electricity far more exten-
sively than we can now; it will enhance all of
our prior U.S. capabilities; and it will add a
capability to warehouse metals for clients. It
also will nearly double the number of corpo-
rate clients we serve in Commodities, to more
than 2,000.
Retail Financial Services reported net income
of $97 million with an ROE of 0%
Overall results
Retail Financial Services (RFS) continued to
be a tale of two cities. Retail Banking, which
includes Consumer and Business Banking,
earned $3.9 billion, primarily by serving
customers through bank branches in 23 states.
Consumer Lending lost $3.8 billion because
of continued high charge-os in the home
lending business.
In our fastest conversion ever, we upgraded
1,800 Washington Mutual branches and
more than 40 million accounts to Chase’s
systems, products and branding. As a result
of these conversions, customers today have
full access to 5,154 Chase branches across
the country (from New York and Florida to
California). Former WaMu customers have
received greater access to better systems and
products, and we did it at greatly reduced
cost to the firm (approximately $2 billion
firmwide). We now have one of the most
attractive franchises in the country, with
enormous opportunities to grow.
What we do in Retail Banking
Last year, our 61,000 people in 5,154 Chase
branches in 23 states served more than 30
million U.S. consumers and small businesses by
providing checking and savings accounts and
investments, as well as home, business, auto
and student loans. For our RFS professionals,
2009 was a year of numerous accomplishments:
• Retail operations teams processed 700
million teller transactions, 3.5 billion debit
card purchases, 100 million ATM deposits,
close to 6 billion checks and more than
1.3 billion statements.
• Investment advisors oversaw $120 billion in
assets under management to help consumers
toward their goals.
• We added 4.2 million mobile banking
customers and another 5.2 million new
online banking customers.
* Market share as measured
in total fees.