JP Morgan Chase 2006 Annual Report Download - page 16

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14
PPHHOOTTOO TTOOCCOOMMEE
MAJOR 2006 ACCOMPLISHMENTS
•Record annual revenue, with record performance in IB fees, Fixed Income and Equity Markets.
•Reduced trading volatility through disciplined management and increased diversification, while
achieving a record level of markets-related revenue.
•Strong progress on growth initiatives:
– Energy and Securitized Products platforms largely built out in the U.S;
– Added over 100 distributors, including Fidelity in the United States, for our Retail Structured
Products business; and,
– Strong Emerging Markets performance locally in the Europe, Middle East & Africa region; and in
Latin America.
•Continued leverage of the firmwide platform through cross-selling products with Home Lending,
Commercial Banking, Asset Management and Treasury & Securities Services.
•Strong expense discipline, with noncompensation expense up 4%, while revenue grew 25%.
JPMorgan is one of the world’s
leading investment banks, with
deep client relationships and broad
product capabilities. Our clients are
corporations, financial institutions,
governments and institutional
investors.
We offer our clients a full range of
investment banking products and
services in all major capital markets,
including advising on corporate
strategy and structure, capital raising
in equity and debt markets, sophisti-
cated risk management, market-
making in cash securities and
derivative instruments, and research.
We have global leadership positions
in all our key products, and our full
platform enables us to develop some
of the most complete and innovative
financial solutions in the industry.
We also commit the firm’s own
capital to proprietary investing and
trading activities. We continue to
strengthen our platform through
organic growth and selective acquisi-
tions, and by developing new prod-
ucts to meet the evolving needs
of our clients.
2007 AND BEYOND
•Continue build-out of Energy and Securitized Products platforms, particularly in Europe and Asia.
•Capitalize on market opportunity in Pension Advisory and Risk Management.
•Expand manufacturing and distribution of Structured Products to retail clients.
•Build emerging markets presence through organic growth and through the pursuit of joint ventures
and partnerships in select countries, particularly in Asia.
•Selectively expand principal investing capabilities.
•Continue to enhance discipline around risk, capital allocation and expenses.
•Fund investments in revenue growth through continued productivity savings.
•Attract, develop and retain the best talent in the industry.
2006 HIGHLIGHTS
•#1 in Investment Banking fees(a).
•#2 in Global Debt, Equity and Equity-related(b).
•#1 in both global loan syndications and global high yield bonds for the second year in a row(b).
•#1 provider of financial products to sponsor clients(a).
•IFR's “Global Interest Rate and Commodities Derivatives House of the Year.”
•Risk’s “Energy Derivatives House of the Year.”
•Named in BusinessWeek’s Top 10 “Best Places to Launch Your Career.”
(In millions, except ratios) 2006 2005
Total net revenue $18,277 $14,613
Net income 3,674 3,673
Return on equity 18% 18%
INVESTMENT BANK
(a) Dealogic
(b) Thomson Financial