JPMorgan Chase & Co. (JPM) is a worldwide financial services holding corporation and the largest bank by assets in the United States.
Consumer banking, investment banking, commercial banking, and asset management are among the services offered by the firm to people, organizations, institutions, and governments worldwide.
Based in New York City JPMorgan competes on a global scale with a diverse range of banks, brokerage firms, investment banking firms, hedge funds, commodity trading firms, private equity firms, insurance companies, and investment managers, including Bank of America Corp. (BAC), Citigroup Inc. (C), Morgan Stanley (MS), Wells Fargo & Co. (GS).
What is JPMorgan Chase & Co.?
JPMorgan Chase & Co. is a multinational investment bank and financial services company headquartered in New York City. It is one of the largest banks in the United States and has operations in over 60 countries. The company offers a wide range of services, including investment banking, asset management, private banking, commercial banking, and credit cards. It is also one of the largest traders in the global financial markets. The company is a result of merger between J.P Morgan & Co and The Chase Manhattan Corporation in 2000. Since then it operates under the name JPMorgan Chase & Co. It is considered as one of the largest and most diversified financial services institutions in the world.
Who is the founder of JPMorgan Chase & Co.?
JPMorgan Chase & Co was founded by John Pierpont Morgan, an American financier and banker. He established the company in 1871 as J.P. Morgan & Co. in order to help finance the fast-growing US economy. He played a leading role in the development of the U.S. industrial sector by providing capital and underwriting securities for major companies and consolidations such as U.S Steel, General Electric and AT&T. He also played a key role in the formation of the Federal Reserve System in 1913.
Is JPMorgan Chase & Co. Worth it?
JPMorgan Chase & Co. is one of the largest and most successful banks in the world, and is considered to be a sound investment by many financial analysts. The bank has a strong track record of financial performance, with consistent revenue growth and high returns on equity. Additionally, it has a diversified business model and a large, global customer base, which helps to mitigate risk.
However, it’s worth noting that the value of any investment can be affected by a variety of factors, such as economic conditions and the performance of individual business units. It’s always important to conduct your own research and consult with a financial advisor before making any investment decisions.
History of JPMorgan Chase & Co.
JPMorgan Chase & Co. has a long and storied history dating back to the late 19th century. The company was founded in 1871 by John Pierpont Morgan, an American financier and banker, under the name J.P. Morgan & Co.
In the late 1800s, Morgan played a key role in the consolidation of the US railroad industry and the formation of the first billion-dollar corporation, the United States Steel Corporation. He also helped to establish the Federal Reserve System in 1913.
In the 1920s, the bank expanded its operations to Europe and Asia and played a major role in financing the growth of American industry. During the Great Depression of the 1930s, the bank was one of the few to remain financially stable, and it helped to stabilize the US banking system.
In the post-war era, the bank continued to expand its operations and diversify its business. In 2000, it merged with Chase Manhattan Corporation, becoming JPMorgan Chase & Co. Today, the company is one of the largest and most diversified financial services institutions in the world, with operations in over 60 countries.
Net Worth of JPMorgan Chase & Co.
As of my knowledge cut-off, JPMorgan Chase & Co is one of the most valuable and profitable companies in the world. The company’s net worth is difficult to determine as it is publicly traded on the stock market, and its value is subject to fluctuations based on a variety of factors, such as economic conditions and the performance of the company.
As of 2021, the company’s market capitalization (the total value of all its outstanding shares) is around $385 billion. Additionally, it reported a net income of $36.4 billion for the full-year of 2020 and generated $109.5 billion in revenue.
It’s worth noting that these figures are subject to change based on the performance of the company and the overall economy. It’s always important to check the most recent financial information before making any investment decisions.
Financial Statements for JPMorgan
JPMorgan reported financial data for the fourth quarter of its fiscal year 2021, which concluded on December 31, 2021, in mid-January. Net income for the quarter was $10.4 billion, a 14.3% decrease from the previous quarter. Year on year (YOY), revenue declined 0.3% to $29.3 billion.
The modest revenue decrease was driven by a 2.6% decrease in non-interest revenue, which was somewhat offset by a 2.6% gain in net interest income.
The bank stated in its fourth-quarter earnings press release that the economy performed well despite a number of obstacles, including the spread of the Omicron version of the coronavirus, inflation, and supply chain bottlenecks. JPMorgan stated that lending activity was increasing, with firmwide average loans increasing by 6%. A $1.8 billion net reserve release boosted the bank’s profitability.
During the pandemic, the corporation put up loan loss reserves to safeguard against any loan defaults as a result of the health crisis and the resulting economic impact.
JPMorgan’s Business Divisions
JPMorgan divides its revenue and net income into five business segments: consumer and community banking, corporate and investment banking, commercial banking, asset and wealth management, and corporate. In contrast to JPMorgan’s overall financial figures, the segment breakdown is done on a non-GAAP basis.
In Q4 FY 2021, total non-GAAP revenue was $30.3 billion, or around $1.1 billion greater than GAAP revenue. Non-GAAP net income totaled $10.4 billion for the quarter, the same as GAAP net income.
Consumer & Community Banking
JPMorgan’s Consumer & Community Banking sector offers deposit and investment products, cash management, payment solutions, mortgage origination and servicing, credit card issuance, and vehicle loans to consumers and businesses.
In Q4 FY 2021, the division recorded net income of $4.2 billion, a 2.3% decrease from the previous quarter. The segment’s revenue was $12.3 billion, a 3.6% decrease year on year. The segment generates approximately 37% of overall net income and 40% of total non-GAAP revenue.
Corporate & Investment Bank
JPMorgan’s Corporate & Investment Bank business offers corporations, investors, financial institutions, and governments investment banking, market-making, prime brokerage, and treasury and securities products and services.
In Q4 FY 2021, the segment’s net income declined 9.4% year on year. With $4.8 billion in revenue, the business provides for approximately 42% of JPMorgan’s overall net income. The segment’s sales increased 1.6% year on year to $11.5 billion during the quarter, accounting for about 37% of total non-GAAP revenue.
JPMorgan’s Commercial Banking section provides complete financial solutions to clients such as small enterprises, midsized and big organizations, and local governments, including loans, payments, investment banking, and asset management products.
The division earned $1.3 billion in net income in Q4 FY 2021, a 38.5% decrease from the previous quarter and accounting for about 11% of overall earnings. The segment’s sales increased 6.0% to $2.6 billion, accounting for more than 8% of total non-GAAP revenue.
Asset & Wealth Management
JPMorgan’s Asset & Wealth Management business manages $4.3 trillion in client assets and provides services across all asset classes. In addition, the division offers retirement goods and services, as well as brokerage and banking.
In Q4 FY 2021, net income increased 45.8% year on year to $1.1 billion, accounting for 10% of JPMorgan’s overall net income. Revenue increased 15.7% as compared to Q4 FY 2020. The segment’s revenue, at $4.5 billion, accounts for more than 14% of total non-GAAP revenue.
JPMorgan’s Corporate sector, among other things, measures, monitors, reports on, and manages the bank’s liquidity, financing, capital, and foreign currency risks.
In Q4 FY 2021, the division recorded a net loss of $1.1 billion, compared to a net loss of $358 million the previous quarter. Revenue for the division was likewise negative, at -$545 million, compared to -$249 million in the fourth quarter of fiscal 2020.
(Please keep in mind that segments with negative revenue and/or net income are removed from the above revenue and net income percentage share calculations and pie charts.)
JPMorgan’s Recent Developments
JPMorgan stated on January 25, 2022, that it has agreed to acquire a 49% share in Viva Wallet Holdings Software Development S.A. The European fintech firm offers a cloud-based payments platform and a number of value-added services to small and medium-sized enterprises. The transaction’s financial specifics were not disclosed.
How JPMorgan Reports Diversity & Inclusiveness
As part of our effort to raise awareness about the significance of diversity in the workplace, we provide investors with a look into JPMorgan’s openness and dedication to diversity, inclusivity, and social responsibility. We reviewed the data released by JPMorgan to demonstrate how it reports the diversity of its board and employees to assist readers in making informed purchasing and investment decisions.
A table of possible diversity metrics is provided below. It indicates if JPMorgan releases statistics on the diversity of its board of directors, C-Suite, general management, and workers overall, as shown by an asterisk. It also demonstrates if JPMorgan breaks down those reports to highlight its diversity by ethnicity, gender, ability, veteran status, and LGBTQ+ identity.