JP Morgan Chase 2015 Annual Report Download - page 105

JPMorgan Chase & Co./2015 Annual Report 95
2015 compared with 2014
Net income was $8.1 billion, up 17% compared with $6.9
billion in the prior year. The increase primarily reflected
lower income tax expenses largely reflecting the release in
2015 of U.S. deferred taxes associated with the
restructuring of certain non-U.S. entities and lower
noninterest expense partially offset by lower net revenue,
both driven by business simplification, as well as higher
provisions for credit losses.
Banking revenue was $11.5 billion, up 1% versus the prior
year. Investment banking revenue was $6.4 billion, up 4%
from the prior year, driven by higher advisory fees, partially
offset by lower debt and equity underwriting fees. Advisory
fees were $2.1 billion, up 31% on a greater share of fees
for completed transactions as well as growth in the
industry-wide fee levels. The Firm maintained its #2 ranking
for M&A, according to Dealogic. Debt underwriting fees
were $3.2 billion, down 6%, primarily related to lower
bond underwriting and loan syndication fees on lower
industry-wide fee levels. The Firm ranked #1 globally in fee
share across high grade, high yield and loan products.
Equity underwriting fees were $1.4 billion, down 9%,
driven by lower industry-wide fee levels. The Firm was #1 in
equity underwriting fees in 2015, up from #3 in 2014.
Treasury Services revenue was $3.6 billion, down 3%
compared with the prior year, primarily driven by lower net
interest income. Lending revenue was $1.5 billion, down
6% from the prior year, driven by lower trade finance
revenue on lower loan balances.
Markets & Investor Services revenue was $22.1 billion,
down 5% from the prior year. Fixed Income Markets
revenue was $12.6 billion, down 11% from the prior year,
primarily driven by the impact of business simplification as
well as lower revenue in credit-related products on an
industry-wide slowdown, partially offset by increased
revenue in Rates and Currencies & Emerging Markets on
higher client activity. The lower Fixed Income revenue also
reflected higher interest costs on higher long-term debt.
Equity Markets revenue was $5.7 billion, up 13%, primarily
driven by higher equity derivatives revenue across all
regions. Securities Services revenue was $3.8 billion, down
13% from the prior year, driven by lower fees as well as
lower net interest income.
The provision for credit losses was $332 million, compared
to a benefit of $161 million in the prior year, reflecting a
higher allowance for credit losses, including the impact of
select downgrades within the Oil & Gas portfolio.
Noninterest expense was $21.4 billion, down 8% compared
with the prior year, driven by the impact of business
simplification as well as lower legal and compensation
expenses.
2014 compared with 2013
Net income was $6.9 billion, down 22% compared with
$8.9 billion in the prior year. These results primarily
reflected higher noninterest expense. Net revenue was
$34.6 billion, flat compared with the prior year.
Banking revenue was $11.4 billion, down 3% from the prior
year. Investment banking revenue was $6.1 billion, up 3%
from the prior year. The increase was driven by higher
advisory and equity underwriting fees, partially offset by
lower debt underwriting fees. Advisory fees were $1.6
billion, up 24% on stronger share of fees for completed
transactions as well as growth in the industry-wide fee
levels, according to Dealogic. Equity underwriting fees were
$1.6 billion, up 5%, driven by higher industry-wide
issuance. Debt underwriting fees were $3.4 billion, down
4%, primarily related to lower loan syndication fees on
lower industry-wide fee levels and lower bond underwriting
fees. The Firm also ranked #1 globally in fees and volumes
share across high grade, high yield and loan products. The
Firm maintained its #2 ranking for M&A, and improved
share of fees both globally and in the U.S. compared with
the prior year. Treasury Services revenue was $3.7 billion,
up 1% compared with the prior year, primarily driven by
higher net interest income from increased deposits, largely
offset by business simplification initiatives. Lending revenue
was $1.5 billion, down from $2.1 billion in the prior year,
driven by losses, compared with gains in the prior periods,
on securities received from restructured loans, as well as
lower net interest income and lower trade finance revenue.
Markets & Investor Services revenue was $23.2 billion, up
1% from the prior year. Fixed Income Markets revenue was
$14.1 billion, down 12% from the prior year, driven by
lower revenues in Fixed Income primarily from credit-
related and rates products as well as the impact of business
simplification. Equity Markets revenue was $5.0 billion, up
1% as higher prime services revenue was partially offset by
lower equity derivatives revenue. Securities Services
revenue was $4.4 billion, up 6% from the prior year,
primarily driven by higher net interest income on increased
deposits and higher fees and commissions. Credit
Adjustments & Other revenue was a loss of $272 million,
driven by net CVA losses partially offset by gains, net of
hedges, related to FVA/DVA. The prior year was a loss of
$2.1 billion (including the FVA implementation loss of $1.5
billion and DVA losses of $452 million).
Noninterest expense was $23.3 billion, up 7% compared
with the prior year as a result of higher legal expense and
investment in controls. This was partially offset by lower
performance-based compensation expense as well as the
impact of business simplification.