JP Morgan Chase 2006 Annual Report Download - page 20

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18
(In millions, except ratios) 2006 2005
Total net revenue $6,109 $5,539
Net income 1,090 863
Return on equity 48% 57%
Treasury & Securities Services is
a global leader in transaction,
investment and information services
that support the needs of institu-
tional clients worldwide. We are
one of the world’s largest cash man-
agement providers and a leading
global custodian, operating through
two divisions:
Treasury Services provides cash
management products, trade finance
and logistics solutions, wholesale
card products, and short-term liquid-
ity management capabilities to small
and mid-sized companies, multina-
tional corporations, financial institu-
tions and government entities.
Worldwide Securities Services
stores, values, clears and services
securities and alternative invest-
ments for investors and broker-
dealers; and manages depositary
receipts programs globally.
MAJOR 2006 ACCOMPLISHMENTS
•Completed the purchase of the middle- and back-office operations of Paloma Partners Management
Company, an investment funds management group, and closed the sale of select corporate trust
businesses to The Bank of New York.
•Achieved all 2006 merger goals, including completion of the largest U.S. dollar clearing conversion in
banking history.
•Introduced innovative products for automating healthcare claims reimbursement, for simplifying elec-
tronic payments for large corporations and government agencies, and for international check imaging.
•Built out the global investment operations outsourcing platform, securing two key deals and completing
two major client conversions.
•Enhanced partnerships with businesses across JPMorgan Chase, increasing the number of Investment
Bank referrals 13% and Business Banking transactions 10%.
2006 HIGHLIGHTS
•Increased assets under custody 30%, to $13.9 trillion; and liability balances 22%, to $190 billion.
•Double-digit growth in Automated Clearing House Originations (up 18%), International
Electronic Funds Transfer volume (up 62%) and U.S. Dollar Clearing volume (up 10%).
•#1 in Same Day U.S. Dollar Funds Transfers(a), Automated Clearing House Originations(b),
CHIPS(c) and Fedwire(d).
•Industry awards included Best Overall Bank for Cash Management in North America
(Global Finance), Securities Services Provider of the Year (The Banker) and #1 Global Liquidity
Capabilities (Euromoney).
2007 AND BEYOND
•Complete merger- and efficiency-related platform retirements and client migrations, including conver-
sions to target billing, liquidity, sweep and deposit platforms.
•Expand alternative investment services, the global investment operations outsourcing platform,
depositary receipts, liquidity management, foreign exchange and securities lending.
•Focus on international growth, particularly in Europe, the Middle East, Latin America, China and India.
•Leverage the Investment Bank, Commercial Banking and Asset Management to deliver a broad range of
offerings in meeting client needs.
•Achieve market differentiation by delivering client service that is superior to that of our competition.
•Focus on productivity and expense control to maximize net income and fund investments in the
business, including investments in technology and people.
TREASURY & SECURITIES SERVICES
(a) Ernst & Young
(b) NACHA
(c) The Clearing House
(d) Federal Reserve