JP Morgan Chase 2010 Annual Report Download - page 40

38




-


What mistakes did the firm make
in mortgages, and how can it avoid
them in the future?









-
A Q&A WITH CHARLIE SCHARF ON MORTGAGES



-





-




Should JPMorgan Chase still
originate and service home loans,
given all of the risks?



-

-













-

-


In 2011, we are continuing to add
sales sta in our branches to serve
customers. As for the branches them-
selves, we have had great success
growing our nationwide footprint
– the 1,000 branches built since
2002 have added $150 million to our
pretax profits as of 2010, a number
expected to grow to more than $1
billion by 2018. Over the next five
years, we anticipate building another
1,500-2,000 branches in our existing
markets, generating an additional
$1.5 billion to $2.0 billion in pretax
income when seasoned.
Across the business, we also are
pursuing several growth initiatives
with great potential for our bottom
line. For auent customers, we
plan to open 50 new Chase Private
Client locations in 2011, with corre-
sponding investments in sta, tech-
nology, products and customized
service; we will have more than
150 locations by the end of 2013,
primarily in New York, Chicago
and Los Angeles. We also are
expanding our Business Banking
segment, especially in the heritage
WaMu footprint. In those markets
alone, Business Banking lent $878
million in 2010, up from almost
zero a year earlier; our expansion
could generate $1 billion in annual
pretax income over time. Finally,
we continue to advance our leader-
ship in developing new products
and services for our customers,
such as instant-issue debit cards,
QuickDepositSM and Chase Instant
Action AlertsSM.
The experiences of the past few years
have shown beyond a doubt that we
have an excellent franchise built on
strong business fundamentals. It is a
franchise that has weathered a signif-
icant economic storm and is built to
withstand future shocks. But more
important, it is positioned to grow
and to strengthen. I would not trade
our franchise for anyone else’s. This
is a great time to be part of Chase,
and I look forward to what I believe
are even better days to come.
Charlie Scharf
CEO, Retail Financial Services
38