JP Morgan Chase 2014 Annual Report Download - page 56

54
Firmwide contribution
• Commercial Banking clients
accounted for 35% of total
North American investment
banking fees5
• $2.4 billion in treasury
services revenue
• Almost $120 billion in assets
under management from
Commercial Banking clients,
generating close to $500
million in investment manage-
ment revenue
• $490 million in Card Services
revenue4
Performance highlights
• Revenue of $6.9 billion
• Grew end-of-period loans 8%;
18 consecutive quarters of
loan growth
• Generated return on equity of
18% on $14 billion of allocated
capital
• Continued superior credit quality
— net charge-o ratio of 0%
Leadership positions
• Top 3 traditional middle
market syndicated lender1
• #1 U.S. multifamily lender2
• J.P. Morgan ACCESS Online
ranked the #1 cash manage-
ment portal in North America
by Greenwich Associates3
Business segment highlights
• Middle Market Banking —
Fifth consecutive year of loan
growth; added more than 550
new clients
• Corporate Client Banking —
Record gross investment
banking revenue4
• Commercial Term Lending —
Record quarterly originations;
full-year originations of nearly
$13 billion
• Real Estate Banking — Eighth
consecutive quarter of loan
growth with a record $10 billion
in originations
• Community Development
Banking — Originated more than
$1 billion in new construction
loans, building 9,000 units of
aordable housing in nearly 90
cities within our footprint
Progress in key growth areas
• Middle Market expansion —
Record revenue of $327 million;
19% CAGR 6 since 2012
• Investment Banking — Record
gross revenue4 of $2 billion;
12% CAGR6 since 2012
• International Banking — Record
revenue7 of $304 million; 13%
CAGR6 since 2012
2014 HIGHLIGHTS AND ACCOMPLISHMENTS
Non-performing Loans1Net Charge-os
1 Thomson Reuters as of year-end 2014.
Traditional middle market is defined as
credit facilities of <$100 million from
clients with <$500 million in revenue
2 Federal Deposit Insurance Corporation
data as of 3Q 2014
3 Greenwich Associates 2014 Online Services
Benchmarking Study
4 Investment banking and Card Services
revenue represents gross revenue gener-
ated by CB clients. Investment banking
includes Banking and Markets revenue.
Card Services includes Commercial Card
and Paymentech revenue
5 Calculated based on gross domestic
investment banking revenue for syndi-
cated and leveraged finance, M&A, equity
underwriting and bond underwriting
6 Compound annual growth rate
7 Denotes overseas revenue from U.S.
multinational clients
1 Based on end-of-period loans
2 Peer averages include CB-equivalent segments or wholesale portfolios at BAC, CMA, FITB, KEY, PNC, USB, WFC
3 Through-the-cycle (TTC), 2008-2014 average
4 Excluding pre-acquisition Washington Mutual (WaMu) originations, Chase represented 1.67% in 2009 and 1.02% in 2010
5 Excluding pre-acquisition WaMu originations, Chase represented 0.93% in 2009 and 0.74% in 2010
6 Commercial Banking net charge-os for 2012 and 2013 were 0.03%
201420132012201120104 20094 2008
Peers 2.1% 4.2% 3.1% 2.0% 1.1% 0.6% 0.4%
CB 0.9% 2.9% 2.0% 0.9% 0.5% 0.4% 0.2%
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 Commercial Banking
 Peer average2
201420132012201120105 20095 2008
Peers 1.4% 2.2% 2.0% 0.8% 0.3% 0.1% 0.1%
CB 0.4% 1.0% 0.9% 0.2% 0.0%6 0.0%6 0.0%
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 Commercial Banking
 Peer average2
TTC average3
Peers: 0.98%
CB: 0.36%
CB target: <0.50%