JP Morgan Chase 2014 Annual Report Download - page 53

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Daniel Pinto
CEO, Corporate & Investment Bank
consistently captured share gains in
foreign exchange e-commerce, and
we hold top-tier rankings on most of
the major multi-dealer platforms.
As an active market-maker, we can
foresee the increasing complexity
that will define the Markets business.
Our strategy recognizes that change
is inevitable, even if its exact nature
cannot be foretold. But in whatever
form our clients need us, the CIB will
be prepared to capture client flow in
all its various forms. Whether it’s by
voice, electronic or direct market
access; whether we are acting on a
principal basis or on an agency basis,
we will be there for our clients with
the products they want.
Our Treasury Services business will
focus on the needs of global multi-
nationals to capture the cross-border
payments and foreign exchange
business associated with increasing
global trade flows. With our invest-
ments in electronic commerce, we
actively will pursue opportunities to
migrate clients to electronic solu-
tions and look for more eciencies
across our technology platforms.
Our Investor Services business, which
contains some of our most important
businesses on behalf of institutional
investors and broker-dealers, has
made great strides to improve the
end-to-end client experience. We
want to make doing business with
us as easy as possible – from sales
to onboarding to operations and
technology to client service.
From a capital perspective, the CIB
will continue to be aected by rules
based on risk-weighted assets. We will
adjust our mix of capital-intensive
businesses accordingly and fine-tune
the platform as needed. We are intent
on reducing our capital-footprint and
on keeping ourselves nimble while
remaining true to our reputation of
providing liquidity and capital in any
market environment.
Looking ahead, the signals are posi-
tive for a global economy that is
gaining momentum. Increasing con-
fidence among consumers and CEOs
is expected to continue. That would
underpin strong corporate earnings
and healthy markets and sustain the
active level of merger and acquisi-
tion (M&A) activity that marked
2014. Our M&A practice particularly
was strong in 2014, with improved
wallet share on global industry-wide
volume that was up by 26% for the
year. We believe 2015 will be another
active period in which clients will
look to us for global advisory capa-
bilities and cross-border expertise.
Our proven track record includes
advising on the largest, most com-
plex deals, which, in many cases,
involved acquisition financing and
strategies to address shareholder
views and other marketplace forces.
Emerging markets economies are
becoming increasingly important in
global commerce. Both as consumers
and as sources of new products and
services, multinational companies
are expanding their operations in
those economies and will require
the breadth of services J.P. Morgan
uniquely is able to provide.
In 2015, we will execute our strategy
in a way that optimizes capital, sup-
ports our clients and aids economic
growth. Global institutions turn to
J.P. Morgan because it has the talent,
expertise and portfolio of services
needed to conduct their business.
We look forward to continuing that
tradition in 2015 and beyond.
2014 HIGHLIGHTS AND ACCOMPLISHMENTS
• The Corporate & Investment Bank
delivered market-leading performance
in 2014; $34.6 billion in net revenue
was the largest in the industry.
• J.P. Morgan helped clients raise $1.6
trillion in capital — 7% more than in
the previous year. Of that amount,
$61 billion was raised on behalf of
states, local governments and public
institutions to finance educational
facilities, healthcare, environmental
projects and other similar purposes.
• Clients entrusted J.P. Morgan with
$20.5 trillion in assets under cus-
tody, up from $16.1 trillion in 2010.
• Treasury Services and Securities
Services revenue rose by 15%
during the past five years, far
outpacing the rest of the top
players’ 2% gain.
• The CIB has more than 51,000
employees with a presence in
60 countries, serving 7,200
of the world’s most significant
corporates and financial
institutions, governments and
nonprofit organizations.
• No other firm in 2014 placed
so consistently among the top
ranks of products across
Investment Banking, Markets
and Investor Services.
• The CIB is targeting $2.8
billion in expense reductions
by 2017, including capturing
cost savings from divestitures
and simplification eorts
already undertaken in 2014.
• The firm’s business mix
is increasingly becoming
international; since 2010, the
CIB’s combined revenue from
EMEA, Asia Pacific and Latin
America has grown by 12%.