JP Morgan Chase 2014 Annual Report Download - page 50

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our top-tier rankings across the CIB’s
spectrum of products and services.
Last year, J.P. Morgan helped clients
raise $1.6 trillion in capital, a 7%
increase over the previous year. Of
that amount, $61 billion was raised
on behalf of states, local govern-
ments, hospitals, universities, school
districts and nonprofits. Those funds
were earmarked to build research
facilities, construct children’s hospi-
tals, finance clean water projects
through green bonds and extend
new rail lines in cities to alleviate
trac congestion, among other pub-
lic service projects. The CIB also was
the #1 firm in U.S. dollar clearing for
clients with a 19% share on Fedwire
and the Clearing House Interbank
Payments System (CHIPS).
It is a franchise that would be
extremely dicult to replicate, espe-
cially in the regulatory and economic
environment we encounter today.
But we are not complacent. Nor do we
take our top rankings for granted. In
an evolving industry, we must be will-
ing to anticipate and embrace change,
operate eciently and be vigilant in
ensuring that our conduct doesn’t just
meet high standards – it sets them.
In a year marked by uneven eco-
nomic recovery in Europe, low mar-
ket volatility and the implementation
of additional capital standards, the
ability to embrace change and adapt
enabled the CIB to maintain its lead-
ing market share across all business
lines and generate strong returns on
$34.6 billion in net revenue – the
highest among our corporate and
investment bank peers.
With an improving global economy
in 2015, I am confident that many of
the headwinds we encountered last
year will turn into tailwinds. As the
recovery spreads throughout regions,
countries and industry sectors, we
foresee CEOs gaining confidence to
pursue more opportunities. We
remain one of the few truly global
banks that can provide the complete
array of products and services to fuel
corporate growth, which, in turn,
underpins economic expansion.
Earnings
For the year, the CIB reported net
income of $6.9 billion on net revenue
of $34.6 billion with a reported return
on equity (ROE) of 10%. Excluding
legal expense, the CIB earned $8.7 bil-
lion with an ROE of 13%. Investment
Banking fees of $6.6 billion were up
4% from the year before. And since
2010, the CIB’s Global Investment
Banking fees have risen by 25%
compared with 17% for the rest of
the industry, according to Dealogic.
Combined revenue in Treasury
Services and Securities Services rose
by 15% during the past five years, far
outpacing the rest of the top players’
2% gain.
The Corporate & Investment Bank’s
broad range of products and services
has the positive eect of smoothing
out business fluctuations in dierent
market and economic environments.
For example, since 2010, the CIB
Corporate & Investment Bank
In 2014, the Corporate & Investment
Bank (CIB) continued to deliver for
clients on the strength of its unique
scale, its complete range of oerings
and its global reach.
By any measure, the J.P. Morgan CIB
is an outstanding franchise. No other
firm places so consistently among the
top ranks of products across Invest-
ment Banking, Markets and Investor
Services. Our 2014 performance
stands as an example of our ability to
adapt to new capital and regulatory
rules while optimizing our business,
capturing eciencies and targeting
expense reductions – even as we
continued to invest for the future.
With a global roster of 7,200 clients,
counting more than 80% among the
Fortune 500, the CIB oers an inven-
tory of integrated financial products
and services. To serve that client
base, the CIB has more than 51,000
employees and a presence in 60
countries. Our expertise runs the
gamut across investment banking,
market-making, investor services,
treasury services and research. The
work we accomplished in 2014 on
behalf of our clients is reflected in
Daniel Pinto