JP Morgan Chase 2009 Annual Report Download - page 14

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• We helped nance the construction of a
$22.3 million healthcare center in the Bronx,
New York, to serve an additional 18,000
patients per year.
• As part of more than $384 million in new
and renewed commitments to GNPH and
educational entities in Ohio, we provided
Kent State University with needed financing.
• We assisted Children’s Memorial Hospital
in Chicago in financing the construction
of a new $915 million building with a
$196 million credit facility.
How we intend to grow
Having successfully completed the conver-
sion of commercial client accounts acquired
through Washington Mutual, Commercial
Banking is well-positioned to grow. The busi-
ness already is taking advantage of Chase’s
retail branch network to expand its oerings
into ve new states – California, Washington,
Oregon, Georgia and Florida. We’ll now cover
these new markets by supporting a full range
of clients, from middle market companies to
large corporations. We are achieving this by
hiring exceptional commercial bankers – more
than 50 employees by the end of 2010 alone –
to serve these additional markets. Several years
from now, when this expansion ultimately is
completed, we expect it will generate hundreds
of millions of dollars in additional profits
annually.
On another front, when JPMorgan Chase and
Bank One merged, we set a target of more than
$1 billion in revenue from investment banking
products sold to Commercial Banking clients
(up from $552 million). This year, we exceeded
the goal and are poised to continue growing
this business.
Commercial Banking reported net income of
$1.3 billion with an ROE of 16%
Overall results
In 2009, Commercial Banking overcame many
challenges to deliver exceptional financial
performance. Even as substantially higher
credit costs negatively aected quarterly
results, the business exceeded its annual plan
by focusing on client selection, marketing
its business aggressively, managing risks
and expenses, and excelling in client service.
Highlights included a 20% boost in revenue to
$5.7 billion; a 25% improvement in operating
margin to $3.5 billion; double-digit increases
in both average liability balances, up 10%, and
average loan balances, up 30%; and a 20%
jump in gross investment banking revenue
to $1.2 billion – a full 25% above plan. These
were fabulous results in any environment.
What we do in Commercial Banking
More than 1,400 bankers help fulll the
financing needs of nearly 25,000 clients and
over 30,000 real estate investors and owners.
The average length of a Commercial Banking
client relationship with us is more than 18 years.
In 2009, we added over 1,700 new Commercial
Banking clients and expanded more than 7,600
relationships. With a team of banking, treasury
and client service professionals situated in local
markets coast to coast and around the world,
Commercial Banking delivers nancial services
while steadfastly supporting communities. Last
year, Commercial Banking extended more than
$73 billion in new financing, which included
nearly $8 billion to the government, not-for-
profit and healthcare (GNPH) and education
sectors. For example: