JPMorgan - One Of The Largest Financial Holding Company
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JPMorgan(John Pierpont Morgan) Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City. JPMorgan Chase is ranked by S&P Global as the largest bank in the United States and the seventh largest bank in the world by total assets, with total assets of US$3.213 trillion.
It is also the world's most valuable bank by market capitalization. As a "Bulge Bracket" bank, it is a major provider of various investment banking and financial services. It is one of America's Big Four banks, along with Bank of America, Citigroup, and Wells Fargo.
JPMorgan - Company Highlights
| Startup Name | JPMorgan Chase & Co. |
|---|---|
| Headquarters | New York City, New York, U.S. |
| Industry | Financial services |
| Founded | December 1, 2000 |
| Founder | Balthazar P. Melick(Chemical Bank), John Pierpont Morgan(J.P. Morgan & Co.), Aaron Burr(The Manhattan Company) and John Thompson(Chase National Bank) |
| CEO | Jamie Dimon |
| Areas Served | Worldwide |
| Website | www.jpmorganchase.com |
JPMorgan - About and How it Works?
JPMorgan - Logo and its Meaning
JPMorgan - Founder and History
JPMorgan - Mission
JPMorgan - Business Model
JPMorgan - Revenue and Growth
JPMorgan - Investments
JPMorgan - Acquisitions
JPMorgan - Competitors
JPMorgan - Challenges Faced
JPMorgan - Future Plans
JPMorgan - FAQs
JPMorgan - About and How it Works?
JPMorgan Chase & Co. is a financial holding company. It provides financial and investment banking services. The firm offers a range of investment banking products and services in all capital markets, including advising on corporate strategy and structure, capital raising in equity and debt markets, risk management, market making in cash securities and derivative instruments, and brokerage and research.
It operates through the following segments: Consumer and Community Banking, Corporate and Investment Bank, Commercial Banking and Asset and Wealth Management.
The Consumer and Community Banking segment serves consumers and businesses through personal service at bank branches and through automated teller machine, online, mobile, and telephone banking. The Corporate and Investment Bank segment offers a 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.
The Commercial Banking segment delivers services to the U.S. and its multinational clients, including corporations, municipalities, financial institutions, and non-profit entities. It also provides financing to real estate investors and owners as well as financial solutions, including lending, treasury services, investment banking, and asset management. The Asset and Wealth Management segment provides asset and wealth management services.
JPMorgan - Logo and its Meaning
The geometry of the emblem and its colours stood for confidence, loyalty, professionalism, and unity, and showed the bank as a strong financial organization with its customers as the main value.
JPMorgan - Founder and History
JPMorgan Chase, in its current form, has its roots in more than 1,200 predecessor banks, including major heritage firms JP Morgan, Chase Manhattan, Chemical Bank, Manufacturers Hanover, Bank One, First Chicago, and National Bank of Detroit. These entities all played a significant role in the growth of the US and global economies. The earliest of the Company’s predecessor companies was The Bank of the Manhattan Company, which was established in 1799 by Aaron Burr as only the second commercial bank in the US.
JPMorgan Chase is built upon numerous mergers and acquisitions. Arguably, the most significant of these was the 2000 merger between JP Morgan and Company and The Chase Manhattan Corporation, which effectively combined four of the largest and oldest banking institutions in New York City – JP Morgan, Chase Bank, Chemical Bank, and Manufacturers Hanover – to form JP Morgan Chase and Company.
JPMorgan is now one of the largest banking institutions in the world. It is ranked 23rd in the Fortune 500 list and 5th in the Forbes 2000 list. The Company trades its shares on the New York Stock Exchange and has a current market capitalization of $243.59 billion.
JPMorgan - Mission
JP Morgan's mission statement says, "JPMorgan provides a range of banking and financial services to consumer, corporations and public institutions, with the aim of enhancing their financial wellbeing and helping to effectively manage their finances."
JPMorgan - Business Model
JPMorgan Chase organizes its activities into core major reportable business segments
- Consumer and Community Banking, which provides consumers and businesses with consumer and community banking services – such as deposit, lending and investment products – through personal service at bank branches and through automated teller machines, online, mobile and telephone banking;
- Corporate and Investment Bank, which provides of banking and markets and investor services, including a suite of investment banking, market-making, prime brokerage, and treasury and securities products and services, to corporations and institutions worldwide;
- Commercial Banking, which provides delivers industry knowledge, expertise, and advisory services to commercial clients, as well as financing to real estate investors and owners; and
- Asset Management, which provides investment advisory and wealth management services.
JPMorgan Chase also operates a Corporate segment, which comprises the activities of corporate staff units.
Chayanika Goswami
JPMorgan - Revenue and Growth
JPMorgan Chase generates revenue through the provision of various banking and financial services and products. Revenue is derived principally through fees and commissions imposed upon customers in relation to the Company’s services, including advisory, investment banking, management, and underwriting fees.
The Company’s largest portion of revenue was derived from asset management, administration, and commissions, which amounted to $15.51 billion for the year.
JPMorgan Chase revenue for the quarter ending September 30, 2020 was $30.834B, a 14.79% decline year-over-year.
| Year | Amount | Percentage Change from Last Year |
|---|---|---|
| 2019 | $142.422B | +9.5% |
| 2018 | $130.07B | +13.52% |
| 2017 | $114.579B | 7.7% |
JPMorgan - Investments
JP Morgan Chase has made 144 investments. Their most recent investment was on Nov 9, 2020, when NovoCure raised $150M.
| Date | Organization Name | Round | Amount |
|---|---|---|---|
| Nov 9, 2020 | NovoCure | Post IPO Debt | $150M |
| Jul 28, 2020 | Pharmapacks | Private Equity Round | $150M |
| Jul 18, 2020 | Contemporary Amperex Technology | Post IPO Equity | CN¥19.7B |
| Jun 25, 2020 | Capital Markets Gateway | Series B | $25M |
| Jun 22, 2020 | Cedar | Debt Financing | $25M |
| Jun 4, 2020 | Cloud9 Technologies | Series B | $17.5M |
| Mar 23, 2020 | iCapital Network | Venture Round | $146M |
| Mar 3, 2020 | The Joint | Post IPO Debt | $7.5M |
| Feb 3, 2020 | Launch NY | Grant | $300K |
| Jan 17, 2020 | Arcesium | Corporate Boy | - |
JPMorgan - Acquisitions
JP Morgan Chase has acquired 10 organizations. Their most recent acquisition was InstaMed on May 17, 2019.
| Acquiree Name | Date | Amount | About Acquiree |
|---|---|---|---|
| InstaMed | May 17, 2019 | - | InstaMed simplifies healthcare payments for providers, payers, and consumers |
| WePay | Oct 17, 2017 | $400M | WePay is the payments partner to the platform economy |
| J.P. Morgan Cazenove | Nov 19, 2009 | - | J.P. Morgan Cazenove is a leading investment bank focused on mergers & acquisitions, debt and equity placements and equity research |
| Washington Mutual | Sep 26, 2008 | - | Washington Mutual is a savings bank holding company providing consumer banking and financial services |
| Bear Stearns | Mar 17, 2008 | - | Bear Stearns is an investment banking, securities trading and brokerage firm |
| Xspand | Mar 1, 2008 | - | Xspand is a provider of revenue solutions that focuses on purchasing, servicing and securitizing municipal tax liens |
| Collegiate Funding Services | Dec 15, 2005 | - | Collegiate Funding is a vertically integrated education finance company that markets, originates, finances and services education loans |
| Neovest Holdings | Jun 23, 2005 | - | Neovest Holdings an independently operated technology company providing a comprehensive suite of global broker-neutral financial services |
| Bank One | Jan 15, 2004 | $58B | Bank One is a Chicago-based multibank holding company providing many banking and financial services |
| Hambrecht & Quist | Sep 28, 1999 | $1.4B | Hambrecht & Quist is an investment bank that focuses on the technology and internet sectors |
JPMorgan - Competitors
The top 10 competitors in JPMorgan Chase's competitive set are Citi, Goldman Sachs, Bank of America, Morgan Stanley, Capital One, Credit Suisse, Fidelity, Wells Fargo, American Express and HSBC.
Sarika Anand
JPMorgan - Challenges Faced
“We do not worry about the stock price in the short run,” Dimon (CEO) said. “If you continue to build a great company, the stock price will take care of itself.”
- Economic risks on the horizon - The excessive disruption in the financial markets at the end of 2018 was “a harbinger of things to come,” as investor sentiment remained precarious.
- Because of divisive politics, America was unable to keep pace in a new world - The federal government was becoming less relevant to what is going on in people’s lives, Dimon said. As a result, people lost faith in their politicians’ ability to deliver on their promises and meet societal needs.
- American leadership and engagement on the world stage is “indispensable” - Dimon said one of the biggest uncertainties in the world is what role America is currently playing. He said that while there are many problems with international organizations, such as the North Atlantic Treaty Organization (NATO), the World Trade Organization (WTO) and the United Nations (UN), the world is better off with these institutions, and the U.S. should engage and exercise its power and influence “cautiously and judiciously.
- Regulation isn’t all bad, but too much of it isn’t good - Dimon said current “excessive” regulation has reduced growth and business formation for the company, without making the economy safer or better.
“The ease of starting a business in the United States has worsened, and both small business formation and employment growth have dropped to the lowest rates in 30 years,” Dimon wrote.
- JPMorgan Chase is “all in” on the cloud and AI, but not on stock buybacks - Dimon acknowledged that he was “partially responsible” for the bank being slow to adopt the cloud, because his early thinking was that it was just another term for outsourcing. He also said the power of artificial intelligence and machine learning is “real,” and are “rapidly being deployed” across virtually every aspect of the bank’s business. Since that makes some employees redundant, the bank is looking to retrain and deploy those employees for other roles inside and outside the company.
Shubham Kumar
JPMorgan - Future Plans
- 17,000 Job Cuts- Even the country's largest bank needs to cut back on employees. Executives said JPMorgan would eliminate about 17,000 positions over the next two years, including about 4,000 through attrition this year in its consumer bank.
- 13,000 to 15,000 Mortgage Cuts- Most of JPMorgan Chase's job cuts will come through lay-offs and attrition in its mortgage operations over the next two years, as the industry moves past the worst of the foreclosure crisis and has less need for servicing employees.
- 100 New Branches- Even as it cuts some branches, JPMorgan Chase is expanding. The bank plans to add about 100 branches to its total over each of the next two years.
- 500,000 'Digital' Customers- A growing number of JPMorgan Chase customers are opting for mobile and online technology over branch visits. About 500,000 bank customers per month are going digital, executives said.
- New Partnership- JPMorgan used the day to announce a new partnership with Visa. Executives said the deal will allow the bank to negotiate directly with merchants over how they process Chase credit and debit cards.
JPMorgan - FAQs
What does JP Morgan do?
JPMorgan Chase & Co. is a global financial service that provides services including consumer banking, investment banking, commercial banking, and asset management for individuals, corporations, institutions, and governments globally.
Is JP Morgan and JP Morgan Chase the same?
JPMorgan Chase & Co. is the parent holding company of Chase(Commerical Bank) and JPMorgan(Investment Bank).
Is JP Morgan the largest bank?
JPMorgan Chase & co. is America's one of the largest bank.
What is JP Morgan's full name?
John Pierpont Morgan is JPMorgan's full name.
How does JPMorgan make money?
The company operates through the following segments: Consumer and Community Banking, Corporate and Investment Bank, Commercial Banking and Asset and Wealth Management.
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