JP Morgan Chase 2015 Annual Report Download - page 315

JPMorgan Chase & Co./2015 Annual Report 305
Note 33 – Business segments
The Firm is managed on a line of business basis. There are
four major reportable business segments – Consumer &
Community Banking, Corporate & Investment Bank,
Commercial Banking and Asset Management. In addition,
there is a Corporate segment. The business segments are
determined based on the products and services provided, or
the type of customer served, and they reflect the manner in
which financial information is currently evaluated by
management. Results of these lines of business are
presented on a managed basis. For a definition of managed
basis, see Explanation and Reconciliation of the Firm’s use
of non-GAAP financial measures, on pages 80–82. For a
further discussion concerning JPMorgan Chase’s business
segments, see Business Segment Results on pages 83–84.
The following is a description of each of the Firm’s business
segments, and the products and services they provide to
their respective client bases.
Consumer & Community Banking
Consumer & Community Banking (“CCB”) serves consumers
and businesses through personal service at bank branches
and through ATMs, online, mobile and telephone banking.
CCB is organized into Consumer & Business Banking
(including Consumer Banking/Chase Wealth Management
and Business Banking), Mortgage Banking (including
Mortgage Production, Mortgage Servicing and Real Estate
Portfolios) and Card, Commerce Solutions & Auto (“Card”).
Consumer & Business Banking offers deposit and
investment products and services to consumers, and
lending, deposit, and cash management and payment
solutions to small businesses. Mortgage Banking includes
mortgage origination and servicing activities, as well as
portfolios consisting of residential mortgages and home
equity loans. Card issues credit cards to consumers and
small businesses, offers payment processing services to
merchants, and provides auto loans and leases and student
loan services.
Corporate & Investment Bank
The Corporate & Investment Bank (“CIB”), which consists of
Banking and Markets & Investor Services, offers a broad
suite of investment banking, market-making, prime
brokerage, and treasury and securities products and
services to a global client base of corporations, investors,
financial institutions, government and municipal
entities. Banking offers a full range of investment banking
products and services in all major capital markets, including
advising on corporate strategy and structure, capital-raising
in equity and debt markets, as well as loan origination and
syndication. Banking also includes Treasury Services, which
provides transaction services, consisting of cash
management and liquidity solutions. Markets & Investor
Services is a global market-maker in cash securities and
derivative instruments, and also offers sophisticated risk
management solutions, prime brokerage, and
research. Markets & Investor Services also includes
Securities Services, a leading global custodian which
provides custody, fund accounting and administration, and
securities lending products principally for asset managers,
insurance companies and public and private investment
funds.
Commercial Banking
Commercial Banking (“CB”) delivers extensive industry
knowledge, local expertise and dedicated service to U.S.
and U.S. multinational clients, including corporations,
municipalities, financial institutions and nonprofit entities
with annual revenue generally ranging from $20 million to
$2 billion. In addition, CB provides financing to real estate
investors and owners. Partnering with the Firm’s other
businesses, CB provides comprehensive financial solutions,
including lending, treasury services, investment banking
and asset management to meet its clients’ domestic and
international financial needs.
Asset Management
Asset Management (“AM”), with client assets of $2.4
trillion, is a global leader in investment and wealth
management. AM clients include institutions, high-net-
worth individuals and retail investors in many major
markets throughout the world. AM offers investment
management across most major asset classes including
equities, fixed income, alternatives and money market
funds. AM also offers multi-asset investment management,
providing solutions for a broad range of clients’ investment
needs. For Global Wealth Management clients, AM also
provides retirement products and services, brokerage and
banking services including trusts and estates, loans,
mortgages and deposits. The majority of AM’s client assets
are in actively managed portfolios.
Corporate
The Corporate segment consists of Treasury and Chief
Investment Office (“CIO”) and Other Corporate, which
includes corporate staff units and expense that is centrally
managed. Treasury and CIO are predominantly responsible
for measuring, monitoring, reporting and managing the
Firm’s liquidity, funding and structural interest rate and
foreign exchange risks, as well as executing the Firm’s
capital plan. The major Other Corporate units include Real
Estate, Enterprise Technology, Legal, Compliance, Finance,
Human Resources, Internal Audit, Risk Management,
Oversight & Control, Corporate Responsibility and various
Other Corporate groups. Other centrally managed expense
includes the Firm’s occupancy and pension-related expenses
that are subject to allocation to the businesses.