JP Morgan Chase 2014 Annual Report Download - page 46

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grow over time without happy cus-
tomers. And in our business, where
customers have extensive choices
across all of our products, that’s
acutely true.
We’re pleased with our progress. I
don’t think anyone can ever declare
victory on the customer experience,
but we can celebrate the success we’ve
had. One key measure that we track is
our Net Promoter Score (NPS), which
simply is how many customers say
they would refer a friend to Chase.
Since mid-2011, our NPS has roughly
doubled in Consumer Banking and
Card and tripled in Business Banking.
In fact, nearly all CCB businesses are
at or close to all-time highs.
We also received validation from
respected outside groups. The Ameri-
can Customer Satisfaction Index
named Chase #1 in customer satis-
faction among large banks in 2014.
J.D. Power ranked us #3 in Highest
Customer Satisfaction in Mortgage
Originations (up from #12 in 2010)
and #2 in Mortgage Servicing (up
from #13 in 2010). In Business Bank-
ing, we are #1 or #2 in every region
(up from #22 in 2010).
Building stronger relationships with
customers has led to measurable
improvement in our leadership posi-
tions. This year, the Federal Deposit
Insurance Corporation (FDIC) named
us #1 in deposit growth among the
largest 50 U.S. banks. We are the #1
credit card issuer, #1 in total U.S.
credit and debit payments volume,
the #2 mortgage originator and
servicer, and the #3 non-captive auto
lender. Chase is #1 in ATMs and #2
in branches, and chase.com is the #1
online banking portal. Forrester
Research named us #1 in mobile
banking functionality for the third
consecutive year.
With our combination of scale,
leading products and outstanding
service, we wouldn’t trade our
franchise for anyone’s.
2014 financial results
Across CCB, our businesses delivered
strong underlying results throughout
2014 despite market and industry
headwinds. Our net income was $9.2
billion, down from $11.1 billion in
2013. Our revenue of $44.4 billion
was down 5% from $46.5 billion in
2013, primarily due to the smaller
mortgage originations market during
2014. In 2014, we also experienced
lower reserve releases across the
Mortgage and Credit Card businesses
and felt the continued impact of
lower deposit margins. While credit
performance still is very strong, the
rate of improvement compared with
last year has slowed. Overall, we
ended the year with a strong return
on equity (ROE) of 18%, just under
our long-term target of 20% ROE.
We particularly are pleased that we
achieved this positive momentum
while hitting our aggressive expense
target. Since 2012, we have taken
Consumer & Community Banking
I’m proud to say that Consumer &
Community Banking (CCB) has
grown stronger in 2014, adding more
customers, building market share
and improving the customer experi-
ence across all of our channels.
Today, we’ve earned relationships
with nearly half of all U.S. households
and 3.9 million small businesses.
In 2014, we added approximately
600,000 new CCB households, bring-
ing our total to almost 58 million.
As important, we’ve deepened the
relationships with our existing
customers. More people consider
Chase their primary bank than any
other bank in our footprint, and
customer attrition has reached
historic lows. More customers are
doing business with Chase, and they
are staying with us for the long term.
Leading the industry
Our core strategy for CCB for the
past four years has been to build life-
time, engaged relationships with our
customers. That begins and ends
with a consistent and outstanding
customer experience across Chase. I
have yet to see any business that can
Gordon Smith