JP Morgan Chase 2015 Annual Report Download - page 62

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The CIB’s business model continues
to deliver for its clients, demon-
strating its worth and resilience.
We strengthened our market-
leading positions across products
and geographies, but we know that
our top rankings cannot be taken
for granted and must be continually
earned through our work and our
dedication to doing right by our cli-
ents. Our firm’s leadership is due to
several factors, but, above all, our
success is a testament to our employ-
ees based in 60 countries and their
focus on client service.
2015 accomplishments
We delivered solid results in 2015
and made progress on multiple
priorities. The CIB reported net
income of $8.1 billion on net reve-
nue of $33.5 billion with a reported
return on equity (ROE) of 12%.
Excluding legal expense and busi-
ness simplification, the CIB earned
$9.2 billion with an ROE of 14%.
This reflects an increase of 110
basis points, compared with 2014,
on capital of $62 billion.
Our strong performance was
achieved despite external concerns
over:
• Slower emerging markets growth,
particularly in natural resource-
driven economies.
• Persistentlylowglobalinterest
rates, weakening credit markets
and liquidity challenges.
• AslowdowninChina’sgross
domestic product growth rate
and currency volatility.
• Geopoliticalchallenges.
• TheFed’slong-awaitedmove
to tighten interest rates.
Our ability to maintain expense
discipline, while absorbing
increased regulatory and control
costs, was demonstrated by our
success this year in achieving a
reduction of $1.6 billion in expenses
toward our previously stated
$2.8 billion target by 2017.
Throughout the year, we identified
ways to redeploy resources in order
to maximize shareholder returns.
Forexample,wereducednon-
operating deposits, level 3 assets and
over-the-counter derivative notion-
als, all while minimizing the impact
to clients. These actions helped to
lower the firm’s estimated global
systemicallyimportantbank(GSIB)
capital surcharge from 4.5% to an
estimated 3.5%. This was a signifi-
cant undertaking and demonstrated
our ability to adapt nimbly to the
changing regulatory landscape.
Corporate & Investment Bank
With a solid foundation built on
scale, completeness and the reach of
a global network, the Corporate &
Investment Bank (CIB) is well-situated
to sustain its leadership in 2016.
Amongthestepswe’vetakento
secure our position, we have commit-
ted to being at the forefront of the
technology evolution. We are
embracing the innovations that will
raise the level of our client service
and are identifying ways to increase
productivity in our own operations.
Our clients – major corporations
with operations around the world –
turntoJ.P.Morganfortheinte-
grated services and financial capa-
bilities of an investment bank that
can help them implement strategic
solutions. Whether it’s to raise
capital, advise on a merger or acqui-
sition, provide hedging or liquidity
solutions, or help with payments
across borders and currencies,
the CIB has the complete range of
services to fulfill client needs.
Daniel Pinto