JP Morgan Chase 2003 Annual Report Download - page 20

JPMorgan Partners (JPMP), the firm’s global private equity organization, provides equity and
mezzanine capital financing to private companies. It is a diversified investor, investing in
buyouts, growth equity and venture opportunities across a variety of industry sectors, with
the objective of creating long-term value for the firm and third-party investors.
Chase Financial Services is a major provider of banking, investment and financing products
and services to consumers and small and middle market businesses throughout the United
States. The majority of its revenues and earnings is produced by its national consumer credit
businesses, Chase Home Finance, Chase Cardmember Services and Chase Auto Finance. It
also serves as a full-service bank for consumers and small- and medium-sized businesses
through Chase Regional Banking and Chase Middle Market.
JPM organ Chase at a glance
JPMorgan is one of the world’s leading investment banks, as evidenced by the breadth of
its client relationships and product capabilities. The Investment Bank (IB) has extensive
relationships with corporations, financial institutions, governments and institutional
investors worldwide. The firm provides a full range of investment banking and commercial
banking products and services, including advising on corporate strategy and structure,
capital raising in equity and debt markets, sophisticated risk management, and market-
making in cash securities and derivative instruments in all major capital markets. IB also
commits the firm’s own capital to proprietary investing and trading activities.
JPMorgan Treasury & Securities Services (TSS), a global leader in transaction processing
and information services to wholesale clients, is composed of three businesses. Institutional
Trust Services provides a range of services to debt and equity issuers and broker-dealers,
from traditional trustee and paying-agent functions to global securities clearance. Investor
Services provides securities custody and related functions, such as securities lending,
investment analytics and reporting, to mutual funds, investment managers, pension funds,
insurance companies and banks worldwide. Treasury Services provides treasury and cash
management, as well as payment, liquidity management and trade finance services, to a
diversified global client base of corporations, financial institutions and governments.
Treasury
& Securities Services
(In millions, except ratios) 2003 2002
Operating revenue $3,992 $ 3,892
Operating earnings 520 621
Overhead ratio 81% 77%
JPMorgan Partners
(In millions) 2003 2002
Operating revenue $(190) $(976)
Operating losses (293) (808)
Overhead ratio NM NM
NM – not meaningful
Chase Financial Services
(In millions, except ratios) 2003 2002
Operating revenue $14,632 $13,426
Operating earnings 2,495 2,320
Overhead ratio 50% 49%
Investment Bank
(In millions, except ratios) 2003 2002
Operating revenue $14,440 $ 12,498
Operating earnings 3,685 1,303
Overhead ratio 59% 64%
Our businesses
Investment Management & Private Banking (IM PB) provides investment management
services to institutional investors and retail customers, and personalized advice and
solutions to high-net-w orth individuals and families globally. Through JPMorgan Fleming
Asset Management, IMPB delivers investment management across all asset classes. Online
brokerage services are provided through BrownCo and retirement plan administration
and consultation through JPMorgan Retirement Plan Services. Through its JPMorgan Private
Bank franchise, IMPB addresses every facet of wealth management for private clients,
including investment management, capital markets and risk management, tax and estate
planning, banking, capital raising and specialty-wealth advisory services.
Investment M anagement
& Private Banking
(In millions, except ratios) 2003 2002
Operating revenue $2,878 $ 2,839
Operating earnings 268 261
Overhead ratio 84% 83%