JP Morgan Chase 2013 Annual Report Download - page 38

36
grown deposits at a rate that’s more
than twice the industry average –
that’s more than any other bank for
the second year in a row.
But improving our customers’ experi-
ences does not mean being all things
to all customers. Reducing opera-
tional complexity and simplifying
our products were top priorities for
us in 2013. Complexity can kill a
great customer experience. In 2013,
we exited products that were not
core to our business or that served
only a small number of customers.
These products more often led to
uneven experiences for customers,
added complexity for our employees
and required additional operational
support. As one example, we have
greatly streamlined our Mortgage
products and programs. In 2010,
we oered a suite of 37 products/
programs in Mortgage. Over the
course of 2013, we reduced them to
25, and throughout 2014, we will
further reduce them to 15.
In 2013, we made significant invest-
ments in improving our controls. It
was a challenging year, and I am very
proud of all our Chase colleagues
who stepped up to tackle these
issues. Having strong controls is
simply how we do business going
forward, and it will make us a better,
more ecient company. We still
have work ahead in 2014, but I am
confident that as we start 2015, we
will have put many of these legacy
issues behind us.
Exceptional franchise
CCB is an exceptional franchise with
leadership positions across our busi-
nesses. I wouldn’t trade our portfolio
of businesses for anyone’s. We are
the #1 credit card issuer in the U.S.
based on loans outstanding, the #1
Small Business Administration (SBA)
lender, the #1 U.S. co-brand credit
card issuer, #1 in total U.S. credit and
debit card payments volume, the #2
mortgage originator and servicer,
and the #3 bank auto loan originator.
In addition, we are leading the way
in making it easier for our customers
to do their banking when they want
and how they want. Chase has the #1
ATM network, #2 retail branch net-
work and #1 mobile banking func-
tionality, and chase.com is the #1
online financial services destination.
Few, if any, banks can provide cus-
tomers the quality of products and
channels that Chase can.
2013 financial results
In 2013, CCB delivered strong results
in a challenging environment. Our
net income was $10.7 billion, up
slightly from $10.6 billion in 2012.
Our revenue of $46.0 billion was
down 8% from $49.9 billion in 2012,
driven by lower mortgage produc-
tion volume as fewer Americans refi-
nanced when interest rates rose in
the second half of the year. We also
felt the impact of lower deposit
margins and lower loan balances.
We ended 2013 with a strong return
on equity of 23%.
Consumer & Community Banking
Across Consumer & Community
Banking (CCB), we are growing
our business by building lifelong
relationships with our customers.
Throughout 2013, we maintained
our strong momentum in creating a
great customer experience across all
of our channels. Chase ranked #1
among the largest banks by the
American Customer Satisfaction
Index (ACSI) for the second year in
a row, and J.D. Power and Associates
ranked us #1 in customer satisfac-
tion in three out of four small busi-
ness banking regions. These are all
significant improvements from
three years ago.
We started with the simple theory
that if we treat people well, they will
want to do more business with us;
and this steady focus on improving
the customer experience is working.
We have relationships with nearly
half of the households in America,
and that number is growing. The
number of households that we serve
in Consumer Banking is up 5% from
2012. Average total deposits are up
10% from a year ago, and we’ve
Gordon Smith