JP Morgan Chase 2015 Annual Report Download - page 66

Douglas Petno
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addressed significant changes in our
industry, we remained focused on our
clients and worked hard to bring value
to our relationships. This continues
to guide our strategy and how we do
business, and I’m excited to share our
2015 results and our plans for 2016.
2015 performance
For the year, Commercial Banking
(CB) produced strong results, with
$6.9 billion of revenue, $2.2 billion of
net income and a return on equity of
15%. Loan growth across the business
was robust, ending 2015 with record
loan balances of $168 billion, up $19
billion from the prior year. Our Mid-
dle Market business grew loans for
the sixth consecutive year, and our
Commercial Real Estate businesses
continued to deliver record results.
With our disciplined underwriting
and proven credit model, CB’s credit
performance remained exceptional
in 2015, marking the fourth straight
year of net charge-os less than 10
basis points. While certain areas of
the economy are facing challenges,
such as the energy and commodities
sectors, CB’s overall loan portfolio
remains in excellent shape, and we
feel very well-positioned as we closely
monitor market conditions.
To set the standard in the industry, we
continued to enhance our regulatory and
control capabilities. While we have more
to do, we are quite proud of the tremen-
dous progress we have made in further
safeguarding our clients and our busi-
ness. Our fortress risk and compliance
principles serve to guide us every day.
Franchise strength
Being a part of JPMorgan Chase gives
us unmatched capabilities to serve our
clients. No other commercial bank has
both our strong client franchise and the
ability to oer the number one invest-
ment bank, a leading asset management
franchise, comprehensive payments
solutions and an extensive branch net-
work. Bringing these robust services to
all of our clients, as we did with Shake
Shack, provides us with unique competi-
tive advantages and the opportunity to
build deep, enduring relationships.
Our partnership with the Corporate &
Investment Bank (CIB) is a fantastic
example of where our broad-based
capabilities dierentiate us with our
clients. With dedicated investment
banking (IB) coverage, we’ve deepened
our client relationships by providing
important strategic advice and capital
market access. This successful partner-
ship has consistently delivered record
IB revenue for CB clients, growing
to $2.2 billion in 2015. Notably, we
achieved this even while overall indus-
try IB revenue contracted last year.
Executing our disciplined growth
strategy
Across CB, we continue to make great
progress in executing our long-term
growth strategy. We are building with
patience and discipline, hiring great
bankers, picking the best clients and
selectively expanding our loan portfolios.
Commercial Banking
Danny Meyer’s vision to update the
classic burger and milk shake stand
began in 2001 with a humble hot dog
cart built to raise funds for a public
park in New York City. In 2009,
amidst a turbulent market and an
uncertain economy, Meyer needed a
partner to help grow Shake Shack, his
fine-casual dining concept. Recogniz-
ing their team’s passion, track record
and management talent, our bankers
supported CEO Randy Garutti and the
growing company with a loan at a
critical time. Marking another impor-
tant milestone, Shake Shack selected
our firm to lead its successful initial
public oering on the New York
Stock Exchange in January 2015.
Today Meyer, Garutti and the entire
Shake Shack team are bringing this
community-gathering experience to
devoted fans across the globe. We are
incredibly proud of our client’s suc-
cess and deeply appreciate the trust
and confidence they placed in us.
Building the best commercial bank
has one principle at its core: standing
by all of our clients, like Shake Shack,
and providing unwavering support
even in dicult times. While we have