JP Morgan Chase 2012 Annual Report Download - page 41

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Mike Cavanagh Daniel Pinto
C0-CEOs, Corporate & Investment
Bank
In addition, we are continually
reviewing and fine-tuning our various
businesses to optimize the allocation
of resources and capital.
In combination, these initiatives oer
tremendous growth opportunities
and will work to oset any potential
loss we may have in revenue in
certain businesses due to regulatory
changes. Based on these growth
opportunities and the depth and
breadth of our client franchise, we
are confident we can achieve our
target return on equity of 16%, plus
or minus, through the cycle on our
now higher capital level.
Summary
Not every firm is able to make these
commitments to invest for the
future, and we feel privileged to be
able to do so on behalf of our clients.
Serving our clients remains our
most important priority this year
and every year.
Our plan for 2012 was ambitious and
our priorities for 2013 and beyond
are no less so. We will continue our
focus on strong risk management
and controls, talent management and
investment discipline, which are
key underpinnings of our industry
leadership. Although we certainly are
proud of what our employees and
the CIB heritage businesses already
have accomplished, we are even
more optimistic about our firm’s
market-leading capabilities to assist
our clients into the future.
2012 HIGHLIGHTS AND ACCOMPLISHMENTS
• 61%oftheCIB’sclientsand48%
ofrevenue(excludingDVA)of
$35.3billionareinternational
(outsideNorthAmerica)
• 52,000+employeesincloseto60
countriesservingapproximately
7,600clients
• 13%compoundannualgrowth
rateinthenumberof“signicant”
internationalclientsgenerating
morethan$1millionannuallyin
revenuesince2009
• Raisedorprovided$70billion
ofcapitalfornonprotand
governmentalclients,including
states,municipalities,hospitals
anduniversities(Source:Thomson
Financial,internalsources)
• Tradedmorethan125million
equitysharesand60,000xed
incomesecuritiesdailyonaverage
• Ranked#1inU.S.dollarwire
clearingwitha20%share
ofFedandCHIPS(Source:Federal
ReserveandClearingHouse
InterbankPaymentsSystem,CHIPS)
• Recordassetsundercustodyof
$18.8trillion,up12%from2011
• Ranked#1inGlobalIBFees;based
onvolumes,ranked#1inGlobal
Debt,Equity&EquityRelated,
#1inGlobalSyndicatedLoans,and
#2inGlobalM&AAnnounced
(Source:Dealogic)
Combined Earnings Power
Netincome
($inbillions)
201220112010
Heritage IB Heritage TSS
$6.6 $6.8 $6.8
$1.1 $1.2 $1.7
$7.7 $8.0 $8.4
1
FY2012CIBROEonaproformabasisassumingthe2013allocated
capitallevelof$56.5billionwouldhavebeen15%,and16%excluding
theimpactofDVA
Returnonequity
H–IB 17% 17% 17%
H–TSS 17% 17% 22%
CIB 17% 17% 18%1

H=Heritage