JP Morgan Chase 2005 Annual Report Download - page 16

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14
2006 and beyond
• Increase the consistency of our trading
results and improve return on capital.
• Continue to build out our securi-
tized products, fixed income and
foreign exchange prime brokerage,
principal investments and energy
businesses, particularly in Europe.
• Expand distribution of structured
products to retail clients through
third parties.
•Invest in strategic opportunities in
select emerging markets.
• Leverage global footprint – work
across regions to deliver global
solutions for clients.
• Leverage significant cross-selling
opportunities with Commercial
Banking, Asset & Wealth Manage-
ment, Treasury & Securities Services
and Chase Home Finance.
• Attract, develop and retain the best
talent in the industry.
Major 2005 accomplishments
•Achieved a #ranking in both loans and
high-yield bonds, globally and in the
U.S. – the first investment bank to do so.(a)
•Achieved #bookrunner ranking in U.S.
Commercial Mortgage-Backed Securities
and #globally for the first time.(a)
•Expanded our energy business, adding
power, coal and emissions to oil and gas
capabilities to diversify risk and meet
client needs.
•Integrated JPMorgan Cazenove,
winning key mandates and helping to
achieve #rankings for Equities and
M&A in the Europe, Middle East &
Africa region.(b)
•Acquired Neovest Holdings, Inc.,
aprovider of high-performance trading
technology and direct market access
services to institutional investors,
asset managers and hedge funds.
•Strengthened our offerings in fixed
income and foreign exchange prime
brokerage.
Investment Bank
JPMorgan is one of the world’s leading
investment banks with deep client
relationships and product capabilities.
Our clients arecorporations,financial
institutions, governments and institu-
tional investors.
We offer our clients a full platform that
enables us to develop the most complete
and innovative financial solutions in the
industry. We have global leadership posi-
tions in all our key products – mergers
and acquisitions advice,capital raising,
restructuring,risk management and
research. JPMorgan also participates in
proprietary trading and investing and
market-making in cash securities and
derivative instruments around the world.
Wecontinue to add to the breadth of
our platform through organic growth
and selective acquisitions, and by
developing new products to meet the
evolving needs of our clients.
(a) Thomson Financial
(b) Dealogic
All 2004 information is on a pro forma combined-
operating basis. See page 1 for details.
(In millions, except ratios) 2005 2004
Total net revenue $14,578 $13,506
Operating earnings 3,658 3,654
Return on common equity 18% 18%
Pro forma
2005 highlights
•#2 investment banking fee revenue globally(b)
• #3 ranking in Global Announced M&A – advised on seven of the 10 largest M&A transactions(a)
•Participant in five of the top 10 largest equity transactions globally
• Energy Derivatives House of the Year award (
Risk
magazine, January 2006)
• Loan House, U.S. High Yield Bond House, European Structured Equity House (
IFR
, January 2006)
• #1 Interest Rate Swaps, Forward Rate Agreements, Cross-Currency Swaps, Credit Derivatives, Interest
Rate Options, Exotic Interest Rate Products, Exotic Currency Products (
Risk
End User Rankings, April 2005)