JP Morgan Chase 2010 Annual Report Download - page 54

Management’s discussion and analysis
JPMorgan Chase & Co./2010 Annual Report
54
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 $2.1 trillion in assets, $176.1 billion in
stockholders’ equity and operations in more than 60 countries as of
December 31, 2010. The Firm is a leader in investment banking,
financial services for consumers, small business and commercial
banking, financial transaction processing, asset management and
private equity. 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 LLC (“JPMorgan Securities”; formerly 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 description 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
institutions, 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.
Retail Financial Services
Retail Financial Services (“RFS”) serves consumers and businesses
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 5,200 bank branches (third-largest nationally) and
16,100 ATMs (second-largest nationally), as well as online and
mobile banking around the clock. More than 28,900 branch
salespeople assist customers with checking and savings accounts,
mortgages, home equity and business loans, and investments
across the 23-state footprint from New York and Florida to
California. Consumers also can obtain loans through more than
16,200 auto dealerships and 2,200 schools and universities
nationwide.
Card Services
Card Services (“CS”) is one of the nation’s largest credit card
issuers, with over $137 billion in loans and over 90 million open
accounts. Customers used Chase cards to meet $313 billion of their
spending needs in 2010. Through its merchant acquiring business,
Chase Paymentech Solutions, CS is a global leader in payment
processing and merchant acquiring.
Commercial Banking
Commercial Banking (“CB”) delivers extensive industry knowledge,
local expertise and dedicated service to nearly 24,000 clients
nationally, including corporations, municipalities, financial institutions
and not-for-profit entities with annual revenue generally ranging from
$10 million to $2 billion, and nearly 35,000 real estate
investors/owners. CB partners with the Firm’s other businesses to
provide comprehensive solutions, including lending, treasury services,
investment banking and asset management to meet its clients’
domestic and international financial needs.
Treasury & Securities Services
Treasury & Securities Services (“TSS”) is a global leader in
transaction, investment and information services. TSS is one of the
world’s largest cash management providers and a leading global
custodian. Treasury Services (“TS”) provides cash management,
trade, wholesale card and liquidity products and services to small-
and mid-sized companies, multinational corporations, financial
institutions and government entities. TS partners with IB, CB, RFS
and Asset Management businesses to serve clients firmwide.
Certain TS revenue is included in other segments’ results.
Worldwide Securities Services holds, values, clears and services
securities, cash and alternative investments for investors and
broker-dealers, and manages depositary receipt programs globally.
Asset Management
Asset Management (“AM”), with assets under supervision of $1.8
trillion, is a global leader in investment and wealth management. AM
clients include institutions, retail investors and high-net-worth
individuals in every major market throughout the world. AM offers
global investment management in equities, fixed income, real estate,
hedge funds, private equity and liquidity products, including money-
market instruments and bank deposits. AM also provides trust and
estate, banking and brokerage services to high-net-worth clients, and
retirement services for corporations and individuals. The majority of
AM’s client assets are in actively managed portfolios.