JP Morgan Chase 2014 Annual Report Download - page 55

53
2011. We accomplished this by advis-
ing 75 clients on strategic transactions
and executing more than 1,200 capital
markets financings. As we expand our
coverage, we believe we can do even
more for our clients. We have set a
new, long-term goal of $3 billion in
investment banking revenue, and we
are confident our partnership with the
CIB will enable us to deliver over time.
While our platform and capabilities
dierentiate us, our success ultimately
hinges on our people. We have 7,300
employees, including 1,400 bankers
in 118 U.S. cities and 14 international
locations. These employees average
20 years of experience, have deep
industry expertise and are firmly
rooted in their local communities.
I’m incredibly proud of the quality
and integrity of our people. Their
continuous focus on our clients and
positive impact in their communities
never cease to impress.
Sustainable growth
We continue to execute our disci-
plined, long-term growth plan, which
is designed to add new, high-quality
clients and deepen those relation-
ships over time. We are growing our
customer base by selectively expand-
ing our geographic footprint and
focusing on key growth industries.
In 2014, we continued to pursue our
market expansion strategy in the
United States, increasing our foot-
print to 34 new markets, where we
served nearly 1,700 clients and gener-
ated $327 million in revenue. We are
on our way to reaching our long-term
revenue target of $1 billion from
these expansion markets.
To enhance our long-standing indus-
try leadership positions, we are adding
specialized bankers and underwriters
in many key industries such as tech-
nology, healthcare, and food and agri-
culture. Industry specialization allows
us to better deliver client-specific solu-
tions, manage industry risks and dem-
onstrate continuity across the industry
life cycle. We see real opportunities to
expand our relationships in these key
industries and have positioned our
teams to best serve these markets.
More and more of our Middle Market
Banking clients expect their interna-
tional activity to increase and be a
meaningful percentage of total sales
in the next few years. Our Interna-
tional Banking team is well-positioned
to help these clients grow and operate
in overseas markets. We’ve added
dedicated resources in 14 key interna-
tional locations and have access to
JPMorgan Chase’s international foot-
print in 60 countries.
In our real estate businesses, we con-
tinue to see an excellent opportunity
to grow our loan portfolio. We believe
we can add high-quality assets
through the current market environ-
ment, as well as benefit from the
$1 trillion of industry maturities that
are due over the next three years.
In addition, our lending platform is
unique in the market and has allowed
us to support new clients throughout
the life of their loans. We are well-
positioned to take advantage of this
tremendous opportunity and be a
stable source of capital for clients.
Clear priorities
Our priorities for 2015 reflect our
mission. To help our clients succeed
and make a dierence in our com-
munities, we will continue to invest
in our business and hire the best
people in our markets. We will focus
on delivering individual customer
solutions to build deeper, stronger
relationships. We will continue to
safeguard our clients and our busi-
ness by maintaining our fortress con-
trols. This means understanding all
risks in our business and investing
in process improvements as needed.
I am incredibly proud of the entire
Commercial Banking team. Because
of its leadership and fortitude, we’ve
been able to successfully adapt to
the evolving regulatory environment
and remain disciplined in a competi-
tive market. 2014 showed the real
power of our franchise, and I am
excited about what we will achieve
this year and beyond for our share-
holders, clients and employees.
Douglas Petno
CEO, Commercial Banking
Commercial Banking Gross Investment Banking Revenue1
($ in billions)
1 Represents the total revenue related to investment banking products sold to CB clients
2 Commercial Banking clients and prospects jointly covered by the CIB
CAGR = Compound annual growth rate
New long-term
target
2014201320122011201020092008
$1.0 $2.0
IB revenue CAGR: 13%
~2,500 ~3,700
Joint CB-CIB client coverage
2
CAGR: 7%
CIB partnership has resulted in differentiated client coverage
$1.0
$1.2 $1.3 $1.4
$1.6 $1.7
$2.0
$3.0