JP Morgan Chase 2010 Annual Report Download - page 47

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

2010 Highlights and Accomplishments
2011 Priorities: Primed to Capture
Growth Globally
We expect to increase earnings
over the next few years as we
reach our operating margin target
of 35%, a considerable step up
from 2010’s margin of 23%. Some
of that improvement will come as
interest rates normalize, boosting
our net interest income and
fees; and some will result from
improved operating eciency and
upgraded product oerings.
The area of greatest potential,
however, is our international busi-
ness. As our clients expand rapidly
into new markets around the world,
they need local access to the oper-
ating services TSS provides. We are
investing in our firm-wide network
so we can be where our clients are,
serving them seamlessly as they
expand geographically.
The accelerating globalization of
our clients was a key impetus for
the recently launched J.P. Morgan
Global Corporate Bank (GCB),
which serves current and prospec-
tive wholesale clients in nearly
every major world market. In
tandem with the GCB initiative,
we are aggressively expanding the
international capabilities of the TS
unit. Over the next three years, we
will add approximately 20 loca-
tions outside the United States,
primarily in emerging markets, and
we will have hired approximately
200 new corporate bankers since
the end of 2009. This investment is
critical to support companies based
in emerging economies that are
expanding into developed inter-
national markets, as well as global
corporations moving into new
markets and emerging economies.
In TSS’ other operating unit, WSS,
approximately 60% of revenue already
comes from outside the United States,
with client service and relation-
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
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
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
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
 Treasury
Management International


The Asian Banker
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Trade & Forfaiting Review

Global Investor


International Custody & Fund
Administration
 


-



ship management functions in 30
markets. WSS will continue to grow
by deepening our service coverage,
strengthening client relationships and
expanding its local capabilities to serve
our clients as they extend their asset
management activities around the
world. Further growth will occur as
capital markets in emerging econo-
mies continue to open and develop.
I am confident and excited about the
future of TSS. We have the resources,
capital and opportunities to grow.
Improving economic fundamentals –
combined with the higher revenue
we expect from our international
expansion and lower investment
spending as our strategic initiatives
are completed – position us very well
for the next stage of growth.
Mike Cavanagh
CEO, Treasury & Securities Services
Trade Loans Up $11.0 Billion

0
5
10
15
20
$25
$10.2
$21.2
2009 2010
107%