JP Morgan Chase 2006 Annual Report Download - page 17

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15
PPHHOOTTOO TTOOCCOOMMEE
(In millions, except ratios) 2006 2005
Total net revenue $14,825 $14,830
Net income 3,213 3,427
Return on equity 22%26%
RETAIL FINANCIAL SERVICES
Retail Financial Services helps meet
the financial needs of consumers
and businesses. We provide conven-
ient consumer banking through
the nation’s fourth-largest branch
network and third-largest ATM
network. We are a top-five mortgage
originator and servicer, the second-
largest home equity originator, the
largest noncaptive originator of auto-
mobile loans and one of the largest
student loan originators.
We serve customers through more
than 3,000 bank branches, 8,500
ATMs and 270 mortgage offices;
and through relationships with more
than 15,000 auto dealerships and
4,300 schools and universities.
More than 11,000 branch salespeople
assist customers with checking and
savings accounts; mortgage, home
equity and business loans; invest-
ments; and insurance across our
17-state footprint from New York
to Arizona. More than 1,200 addition-
al mortgage officers provide home
loans throughout the country.
MAJOR 2006 ACCOMPLISHMENTS
•Expanded our leadership position in the highly attractive New York metropolitan area through the
acquisition of The Bank of New York’s consumer banking business, which added $12 billion in deposits.
•Purchased and integrated Collegiate Funding Services to expand the education lending business.
•Completed technology conversion in the New York Tri-state area; now serving all Chase-branded
branches on the same state-of-the-art platform.
•Completed the Chase rebranding of remaining Bank One branches and ATMs.
•Expanded originations of alternative mortgage products – leveraging distribution capabilities in the
Investment Bank – to serve changing consumer needs, while maintaining disciplined underwriting practices.
2007 AND BEYOND
•Improve customer cross-selling through continued expansion of the sales force and achieve double-digit
growth in branch sales of mortgages, investments and credit cards.
•Invest in 125 to 150 additional branch locations annually, using disciplined and analytical approach
to select markets and sites within markets.
•Convert The Bank of New York branches to the Chase technology platform in first half of 2007,
refurbish those branches, and upgrade the sales process and customer experience.
•Continue to respond to changing residential lending environment; upgrade and consolidate mortgage
origination and servicing technology by year-end 2008 to improve customer experience and increase
operating efficiencies.
2006 HIGHLIGHTS
•Increased branch sales force 9%; and increased branch sales production, including credit
cards 74% and investments 34%.
•Increased checking accounts 14%, to 10 million, and deposits 12%, to $204 billion.
•Increased Business Banking loan originations 22%, to $5.7 billion.
•Increased active online customer base 35%; generated 187 million online transactions,
including bill payment and electronic payment, up 35%.
•Added 438 net new branches, including 339 acquired from The Bank of New York; and
1,194 ATMs, including 400 acquired from The Bank of New York and 500 placed in Walgreens
stores throughout Florida, Colorado and Louisiana.