JP Morgan Chase 2009 Annual Report Download - page 49

Management’s discussion and analysis
JPMorgan Chase & Co./2009 Annual Report
47
FIVE-YEAR STOCK PERFORMANCE
The following table and graph compare the five-year cumulative
total return for JPMorgan Chase & Co. (“JPMorgan Chase” or the
“Firm”) common stock with the cumulative return of the S&P 500
Stock Index and the S&P Financial Index. The S&P 500 Index is a
commonly referenced U.S. equity benchmark consisting of leading
companies from different economic sectors. The S&P Financial
Index is an index of 78 financial companies, all of which are within
the S&P 500. The Firm is a component of both industry indices.
The following table and graph assume simultaneous investments
of $100 on December 31, 2004, in JPMorgan Chase common
stock and in each of the above S&P indices. The comparison
assumes that all dividends are reinvested.
December 31,
(in dollars) 2004 2005 2006 2007 2008 2009
JPMorgan Chase $100.00 $ 105.68 $ 132.54 $ 123.12 $ 91.84 $ 123.15
S&P Financial Index 100.00 106.48 126.91 103.27 46.14 54.09
S&P 500 Index 100.00 104.91 121.48 128.16 80.74 102.11
This section of the JPMorgan Chase’s Annual Report for the year
ended December 31, 2009 (“Annual Report”) provides manage-
ment’s discussion and analysis (“MD&A”) of the financial condi-
tion and results of operations of JPMorgan Chase. See the
Glossary of terms on pages 251–253 for definitions of terms used
throughout this Annual Report. The MD&A included in this An-
nual Report contains statements that are forward-looking within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements are based on the current beliefs and
expectations of JPMorgan Chase’s management and are subject
to significant risks and uncertainties. These risks and uncertain-
ties could cause the Firm’s results to differ materially from those
set forth in such forward-looking statements. Certain of such
risks and uncertainties are described herein (see Forward-looking
statements on page 143 of this Annual Report) and in the JPMor-
gan Chase Annual Report on Form 10-K for the year ended De-
cember 31, 2009 (“2009 Form 10-K”), in Part I, Item 1A: Risk
factors, to which reference is hereby made.
INTRODUCTION
JPMorgan Chase & Co., a financial holding company incorporated
under Delaware law in 1968, is a leading global financial services
firm and one of the largest banking institutions in the United States
of America (“U.S.”), with $2.0 trillion in assets, $165.4 billion in
stockholders’ equity and operations in more than 60 countries as of
December 31, 2009. The Firm is a leader in investment banking,
financial services for consumers and businesses, financial transac-
tion processing and asset management. Under the J.P. Morgan and
Chase brands, the Firm serves millions of customers in the U.S. and
many of the world’s most prominent corporate, institutional and
government clients.
JPMorgan Chase’s principal bank subsidiaries are JPMorgan Chase
Bank, National Association (“JPMorgan Chase Bank, N.A.”), a
national bank with branches in 23 states in the U.S.; and Chase
Bank USA, National Association (“Chase Bank USA, N.A.”), a
national bank that is the Firm’s credit card issuing bank. JPMorgan
Chase’s principal nonbank subsidiary is J.P. Morgan Securities Inc.,
the Firm’s U.S. investment banking firm.
JPMorgan Chase’s activities are organized, for management reporting
purposes, into six business segments, as well as Corporate/Private
Equity. The Firm’s wholesale businesses comprise the Investment
Bank, Commercial Banking, Treasury & Securities Services and Asset
Management segments. The Firm’s consumer businesses comprise
the Retail Financial Services and Card Services segments. A descrip-
tion of the Firm’s business segments, and the products and services
they provide to their respective client bases, follows.
Investment Bank
J.P. Morgan is one of the world’s leading investment banks, with
deep client relationships and broad product capabilities. The clients
of the Investment Bank (“IB”) are corporations, financial institu-
tions, governments and institutional investors. The Firm offers a full
range of investment banking products and services in all major
capital markets, including advising on corporate strategy and
structure, capital-raising in equity and debt markets, sophisticated
risk management, market-making in cash securities and derivative
instruments, prime brokerage, and research. IB also commits the
Firm’s own capital to principal investing and trading activities on a
limited basis.
Retail Financial Services
Retail Financial Services (“RFS”), which includes the Retail Banking
and Consumer Lending businesses, serves consumers and busi-
nesses through personal service at bank branches and through
ATMs, online banking and telephone banking, as well as through
auto dealerships and school financial-aid offices. Customers can
use more than 5,100 bank branches (third-largest nationally) and
15,400 ATMs (second-largest nationally), as well as online and
mobile banking around the clock. More than 23,900 branch sales-
people assist customers with checking and savings accounts, mort-
gages, home equity and business loans, and investments across the
23-state footprint from New York and Florida to California. Con-
sumers also can obtain loans through more than 15,700 auto
dealerships and nearly 2,100 schools and universities nationwide.
0
50
100
150
200
December 31,
(in dollars)
2004 2005 2006 2007 2008 2009
S&P Financial S&P 500JPMorgan Chase