JP Morgan Chase 2006 Annual Report Download - page 19

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17
MAJOR 2006 ACCOMPLISHMENTS
•Significantly increased cross-selling efforts with 30% growth in gross investment banking revenues
and 9% growth in Treasury Services revenues.
•Completed both a major loan conversion, which impacted more than 14,000 clients with approximately
$25 billion in loan balances, and several treasury services migrations to target platforms.
•Enhanced discipline in and accountability for the sales process through improved monthly metrics
reports, business reviews and coaching.
•Added approximately 2,000 banking relationships, $2.3 billion in loans and $1.2 billion in liability
balances from the acquisition of The Bank of New York’s middle-market business.
•Created Chase Capital Corporation, which provides our clients with additional financing alternatives
including mezzanine and second-lien loans as well as preferred equity.
•Opened five new offices to expand coverage in Des Moines (IA), Charlotte (NC), Orlando (FL), Denver
(CO) and Princeton (NJ).
Commercial Banking serves more
than 30,000 clients, including corpo-
rations, municipalities, financial
institutions and not-for-profit
entities. These clients generally
have annual revenues ranging
from $10 million to $2 billion.
Commercial bankers serve clients
nationally throughout the retail
branch footprint and in offices
located in other major markets.
We are the #1 commercial bank in
our retail branch footprint.
Commercial Banking offers its
clients industry knowledge, experi-
ence, a dedicated service model,
comprehensive solutions and local
expertise. The firm’s broad platform
positions us to deliver extensive
product capabilities – including
lending, treasury services, invest-
ment banking and asset manage-
ment – to meet our clients’ U.S.
and international financial needs.
2006 HIGHLIGHTS
•#1 commercial bank in market penetration in Chase’s retail branch footprint, almost
double that of the next leading competitor(a).
•#1 in overall customer satisfaction among large bank providers – 93% of clients surveyed
are highly satisfied with our bankers(b).
•#2 asset-based lender in the United States(c).
•Generated record gross investment banking revenues of $716 million.
(In millions, except ratios) 2006 2005
Total net revenue $3,800 $3,488
Net income 1,010 951
Return on equity 18% 28%
2007 AND BEYOND
•Increase prospect conversion through accelerated calling efforts and targeted marketing initiatives.
•Grow U.S. and international revenue by providing clients with more comprehensive solutions leveraging
our Treasury & Securities Services, Asset Management and Investment Bank platforms.
•Continue to improve product and service offerings to clients through additional cash management
tools, technology enhancements and alternative capital solutions.
•Outperform peers in credit through active portfolio management and superior underwriting standards,
while effectively using capital and resources.
•Strengthen our workforce through key talent development, training and diversity initiatives.
•Convert our wholesale New York Tri-state customer base to the target deposit system; complete the
migration of customers acquired in The Bank of New York transaction to the firm’s platforms.
COMMERCIAL BANKING
(a) SRBI Footprint Study 2005
(b) Barlow Research Middle Market Banking 2006,
Chase Relationship AuditTM
(c) Loan Pricing Corporation, 2006