JP Morgan Chase 2015 Annual Report Download - page 68

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Looking forward, I’m incredibly opti-
mistic about the future of Commer-
cial Banking. We are maintaining our
long-term focus and making the
right strategic investments to build
upon our enduring business. I’m
confident our team will seize the
opportunities in front of us and
continue to deliver for our clients
and shareholders.
• $469 million in Card Services
revenue3
• $2.6 billion in Treasury Services
revenue
Progress in key growth areas
• Middle Market expansion —
Record revenue of $351 million;
46% CAGR5 since 2010
• Investment banking — Record
gross revenue of $2.2 billion;
10% CAGR5 since 2010
Performance highlights
• Delivered revenue of $6.9 billion
• Grew end-of-period loans 13%;
22 consecutive quarters of
loan growth
• Generated return on equity of 15%
on $14 billion of allocated capital
• Continued superior credit quality
— net charge-o ratio of 0.01%
Leadership positions
• #1 U.S. multifamily lender1
• #1 Customer Satisfaction, CFO
Magazine Commercial Banking
Survey, 2015
• Top 3 in overall Middle Market,
large Middle Market and Asset
Based Lending bookrunner2
• Recognized in 2015 by Greenwich
Associates as a Best Brand for
Middle Market Banking overall and
in loans or lines of credit, cash
management, trade nance and
investment banking
Business segment highlights
• Middle Market Banking — Added
more than 600 new clients
• Corporate Client Banking — Record
gross investment banking revenue3
• Commercial Term Lending — Record
originations of over $19 billion
• Real Estate Banking — Completed
its best year ever with record
originations over $11 billion
• Community Development Banking
— Originated over $1 billion in
new construction loans, building
more than 10,000 units of aord-
able housing in over 70 cities
Firmwide contribution
• Commercial Banking clients
accounted for 36% of total North
American investment banking fees4
• Over $120 billion in assets under
management from Commercial
Banking clients, generating more
than $445 million in Investment
Management revenue
• International banking — Revenue6
of $288 million; 16% CAGR5 since
2010
2015 HIGHLIGHTS AND ACCOMPLISHMENTS
Douglas Petno
CEO, Commercial Banking
One exciting example is the work
we’re doing alongside Consumer &
Community Banking to upgrade our
digital and online platforms. Our
enhanced capabilities will expand
functionality and allow clients to
execute transactions more quickly
and easily. In addition, we recently
partnered with the CIB to launch a
new corporate QuickPay capability,
which will help our clients migrate
business-to-business payments from
expensive paper checks to simple
email transactions.
Lastly, with expanded data and ana-
lytical capabilities, we are focusing on
transforming information into intel-
ligence and insights to help us man-
age risk and shape product develop-
ment. We’ve also been developing
analytical tools to help our bankers
better identify and target new clients
in markets across the United States.
Looking forward
Our business takes great pride in the
outstanding clients we serve, and we
are grateful every day for the confi-
dence they place in us. I want to
thank our extremely talented team
for making that confidence possible
and building true partnerships with
our clients. Our success depends on
our people, and your Commercial
Banking team shows unwavering
dedication to the clients and commu-
nities they serve.
Net charge-os
1
Peer averages include CB-equivalent segments or wholesale portfolios at BAC, CMA, FITB,
KEY, PNC, USB, WFC.
2
Through-the-cycle (TTC), 2008—2015 average.
bps = basis points
20152014201320122011201020092008
Peers 1.35% 2.23% 2.00% 0.75% 0.33% 0.11% 0.08% 0.15%
CB 0.35% 1.02% 0.94% 0.18% 0.03% 0.03% 0.00% 0.01%
●
●
●
●
●
●●●
 Commercial Banking
 Peer average1
TTC average2
CB: 32 bps
CB target: < 50 bps
1 SNL Financial based on Federal Deposit
Insurance Corporation data as of 3Q 2015
2 Thomson Reuters as of year-end 2015
3 Investment banking and Card Services
revenue represents gross revenue
generated by CB clients
4 Calculated based on gross domestic
investment banking revenue for syndicated
and leveraged finance, M&A, equity
underwriting and bond underwriting
5 Compound annual growth rate
6 Overseas revenue from U.S. multinational
clients