JP Morgan Chase 2010 Annual Report Download - page 39

37
Home Lending
Our Home Lending business
continues to go through a turbulent
period. Loans acquired from Wash-
ington Mutual, as well as some of the
Chase-originated loans, continued to
perform terribly. While losses and
delinquencies decreased from their
peaks, they still are at unacceptably
high levels.
Our Home Lending portfolios lost
$4.2 billion in 2010 (including repur-
chase expenses). At the same time,
we benefited from the refinancing
boom, and net income in produc-
tion (excluding repurchase losses)
increased by 58%. We will need to
continue managing these two very
dierent issues for the next several
years, as losses likely will remain high
in the legacy portfolio while we focus
on gaining profitable new business.
(Please see my accompanying
discussion of the mortgage business
on page 38.)
Retail Banking
For 2010, Retail Banking reported net
income of $3.6 billion, down 7% from
the prior year. Net revenue was down
2% to $17.6 billion, driven by lower
deposit-related fees, largely oset by
higher debit card income and a shift
to wider-spread deposit products.
Adding 3 million new customers
every year, our Retail Banking fran-
chise continues its growth trajec-
tory, with strong and increasing
brand recognition across the country.
Excluding acquisitions, our net
income has grown at a compound
annual growth rate of 9% since
2005. To deliver that growth, we
have maintained our long-standing
focus on acquiring and deepening
customer relationships and continu-
ally investing for the future.
In 2010, we opened 154 new
branches and added 3,700 personal
bankers, nearly 600 loan ocers and
450 business bankers to better serve
our customers. We opened 1.5 million
net new checking accounts and
increased our sales production per
branch by 16%. Our cross-sell ratio, at
nearly seven products per household,
is one of the highest in the industry.
We are not just getting bigger but we
are constantly working to serve our
customers better – for example, in
2010, innovation in mobile banking
with convenient new smartphone
applications. More than 17 million
customers use our online services,
representing a compound annual
growth rate of more than 36% since
2006. Finally, the personal touch for
which Chase branches are renowned
– thanks to our great employees,
who constantly strive to provide
better advice and service – remains a
cornerstone of our business.
2011 Priorities: Growing Our Branch
Business with Expanded Oerings
across Our Network
The results of the past year vali-
date the essential soundness of our
approach to growing our business.
Going forward, we intend to remain
focused on our customers and our
people, which have sustained us
during these challenging times.
Continuing to focus on organic
growth is our primary goal.
We already have more to oer
consumers and businesses than most
of our competitors, not to mention
the stability of JPMorgan Chase
standing behind us.
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
2010 Highlights and Accomplishments
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