JP Morgan Chase 2014 Annual Report Download - page 30

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IV. SOLID STRATEGY AND FUTURE OUTLOOK
We are going to do a better job of covering
family and private oces in both the Private
Bank and the Investment Bank. Family oces
have become larger, more sophisticated and
more global, and they actively buy minority
or whole stakes in businesses. More than
2,300 families across the globe had assets
of $1 billion or more in 2014. Together, they
control over $7 trillion in assets, a number
that has grown in excess of 10% since 2011.
While J.P. Morgan already works with many
of these families as clients, we believe we
can do a far better job of providing the full
range of products and services oered by our
Private Bank and Investment Bank.
Private banking will grow for years. In Mary
Erdoes’ Investor Day presentation, she
showed that while we have the best private
bank in the United States, our business still
is rather small, and there is plenty of room
to grow. This is even truer in Asia Pacific
and Latin America. The chart below shows
how strong our business is and illustrates
that there is plenty of room to grow our
market share internationally.
Retail banking presence still has room to grow.
While we cannot acquire a retail bank in the
United States, we can – and intend to – enter
cities where we have never been. We will
keep those cities we might choose to enter a
surprise – but we hope to begin doing this
in 2016. And remember, when we enter a
city, we can bring the full force of JPMorgan
Chase to bear, from retail, small business and
private banking to middle market and local
coverage of large corporations.
We particularly are excited about our payments
business in total. The combination of Chase
Paymentech, our merchant acquirer,
ChaseNet, our proprietary Visa-supported
network, and ChasePay, our proprietary
wallet, allows us to oer merchants –
large and small – better deals in terms of
economics, simpler contracts, better data
and more eective marketing to their clients.
It also allows us to better serve consumer
clients with a wide variety of oers and ease
of use. We are going to be very aggressive in
growing this business, and we will be disap-
pointed if we don’t announce some exciting
and potentially market-changing ventures.
Trusted Advisor to the World’s Most Sophisticated Clients
% client assets from clients with $10+ million (2013)
86%
JPM
PB1
U.S.
Every +10 basis points in market share internationally = $150+ million of revenue
Latin America/
Caribbean
Europe/
Middle East/
Africa
Asia/
Pacific
UBS MS1BAC1
(ML)
47%
>50% of JPM PB client
assets from clients with
$100+ million
4%
6%
4%
8%
9% JPM PB
market share
15%
8%
14%
36%
26%
2006-2013 client asset CAGR
Industry JPM PB
Industry JPM PB
Industry JPM PB
Industry JPM PB
4%
JPM PB
market share
1%
JPM PB
market share
<1%
JPM PB
market share
<1%
1 PB = Private Bank; MS = Morgan Stanley; BAC = Bank of America (Merrill Lynch)