JP Morgan Chase 2010 Annual Report Download - page 14

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Eachofourbusinessheadshasarticulated
compelling growth strategies for his or her
respective business (see their letters on
pages34–47ofthisAnnualReport).Across
the firm, the opportunities to grow organi-
cally are huge. And we intend to pursue
them aggressively – every day, every quarter
and every year by building new branches;
launching new products and tools and intro-
ducing new technology; and relentlessly
hiring and developing good people.
Weknowthatbuildingourbusinesses
organically can be challenging to execute,
but it is critical – and the potential payo is
enormous. Organic growth also will continue
to fuel cross line-of-business opportunities.
For example, when Retail Financial Services
opens a branch, it provides Card Services
with the opportunity to oer more credit
cards. And when Commercial Banking
develops a new client relationship, these
clients often require Investment Banking
services. These are just two examples – there
are many more.
Inadditionto“normal”growth,wewant
to highlight a few specific initiatives – each
of which could add $500 million or more
to profits over the next five to ten years.
These include:
• AcceleratingCommercialBanking’sand
Business Banking’s growth in the heritage
WaMufootprint:Essentially,WaMudid
notdothistypeofbusiness.Ultimately,we
will have added more than 1,500 bankers in
statesfromCaliforniaandWashingtonto
Florida.Wealreadyarewellonourwayto
building into this branch network the same
kind of middle market banking and small
business banking that we have established
in other markets across the country.
• ExpandingoutourCommoditiesfranchise:
In our commodities business, we now have
a full array of physical trading and finan-
cial products and services to support our
3,000 clients who trade in these markets
aroundtheworld.Whenalloureortsare
completely integrated and are running at
full capacity, profits of this business will
grow even more strongly. (And this should
happeninthenexttwotothreeyears.)
• Dramaticallyincreasingourbranchopen-
ings:Wewillmovefromanaverageof120
new branches a year to more than 200 in
2011 and probably more than that in subse-
quent years. This aggressive build-out is a
coordinated eort between our real estate
teams; our technology and operations
teams; and our management, development
and training sta. New branches typically
break even by the end of the second year,
and, when fully established, which takes
several more years, each branch ultimately
should earn more than $1 million in
profits a year. Yes, we are concerned about
technology reducing the need for physical
branches, but all our research shows that
we still will need branches to serve our
customers.WhileuseoftheInternetand
ATMs has skyrocketed, branch trac
essentially has remained steady. Over time,
branches may become smaller, but we still
think they will remain essential.
• GrowingourChasePrivateClientServices
business:Weestimatethatapproximately
2 million customers who use our branches
are fairly auent and need investment
services tailored to the high-net-worth
segment.Wehavetestedthisconcept,and
it seems to be working well. Therefore, we
intend to open approximately 150 Private
Client Services locations over the next few
years to better support our auent clients.
At these oces, dedicated bankers will
work with customers and provide them
with investment products that are tailored
to their needs.
• Continuingtoexpandourinternational
wholesale businesses, including our Global
CorporateBank(GCB):Thiseortis
described in the next section.
II. BIG OPPORTUNITIES: HOW WE WILL GROW IN
U.S. AND INTERNATIONAL MARKETS