Fin 410 - Commercial Bank Management - Financial Statements of Jpmorgan Chase & Co.

Financial Statements

Assignment 2

Jermaine C. Taylor

Professor: Joseph Arbeiter

Fin410 Commercial Bank Management

November 11, 2015

JPMorgan Chase & Co. (JPMC), is a financial holding company that provides financial and investment banking services. JPMC offers a variety of investment banking products and services in all the major capital markets, which includes advising on corporate strategies and structures, raising equity and debt markets, sophisticated risk management, cash securities and derivative instruments, along with prime brokerage and research. JPMC offers investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. Through the following segments, JPMC operates Consumer and Community Banking, Corporate and Investment Bank, Commercial Banking, Asset Management, and Global Finance & Treasury. The Consumer and Community Banking segment serves consumers and businesses through personal service at bank branches, ATMs, online, mobile and telephone banking. The Corporate and Investment Bank segment offers investment banking, prime brokerage, treasury and securities products.  The Commercial Banking segment delivers extensive industry knowledge, local expertise and dedicated service to multinational clients, which include corporations, municipalities, financial institutions and non-profit entities. The Asset Management segment provides investment and wealth management services. This segment offers investment management across all major asset services, including equities, fixed income, alternatives and money market funds. Lastly, the Global Finance & Treasury segment provides finance and capital management strategies, which also provides information, analysis and recommendations to provide clear strategic direction for business decisions, expense and capital discipline, enhanced controls, increased automation, and transparency.

The customer service features offered by JPMC, are services that help you manage your cash balances, daily transactions, and information.  You can connect in any way that works for you whether its online, host-to-host, mobile or through a spreadsheet.  JPMC, online ACCESS is a cash management tool that integrates all treasury activities through a secure portal using a single authentication process.  Under this one single process, you can manage total cash, transactions and user entitlements, which you can configure the information saving you time and energy. “JPMC ACCESS Online was ranked #1 cash management portal by Greenwich Associates,” for being able to have critical services and information at your fingertips.   The host-to-host feature allows you to automate and control transactions between you and JPMC’s global processing platform.  The full range of payment and information reporting services that are available 24/7 around the world.  It uses the latest industry standard formats to be able to simplify data exchange and gives you a variety of ways to receive information where and when you need it.  Using host-to-host customers can process payments faster, mitigate risk, consolidate reports, experience greater flexibility and receive expert support from setup to file testing and full documentation.  JPMC Mobile provides the same global cash management services on smartphones and tablets.  The mobile access gives you critical account information anytime, for customers to be able to make an informed and quick decision.  With the mobile access, you can manage your payments, being able to approve or release wires to ensure timely delivery of payments.  You can customize alerts to meet specific needs and search for information by currency, account, and transactions.  They provide multi-level security protection so that you can protect your data information using secure online sessions, encryptions and authentication controls.  They also support many languages making it easier to use around the world.  JPMC INSIGHT can enhance the performance of their customer’s global cash spreadsheets.  Manually populating spreadsheets to manage money, can be very time-consuming and prone to a lot of errors.  However, with insight, treasury managers can make this process more efficient and less time consuming in two ways. 1) Use the insight wizard and Microsoft Excel to create a customized spreadsheet that can be populated automatically with their bank accounts data. 2) Use their existing spreadsheet with JPMC Access Insight, to fill their cash data.  Either way a customer chooses, with the insight they will be more efficient and more in control of their cash management.  JPMC also offers corporate and investment banking, which possesses all the best in class and global elements that are required to serve their clients effectively.  The support that JPMC, provides ripples through the economy, creating jobs and providing financing for growth.  Their global presence and balance sheet strength allows JPMC to help markets when others are unable to do so, provide liquidity in tough market conditions and can maintain safe custody of client’s assets through volatile markets.  JPMC works with a broad range of customers offering strategic advice, raising capital and delivering risk management solutions to clients.  JPMC, investor services provide solutions to institutional investors, and broker-dealers optimize efficiency, mitigate risk and reduce cost.  They also provide these same services to its consumer clients enabling them to increase their effectiveness and enhance their returns.

JPMC greatest asset is the breadth and depth of its customer base, industry-specific expertise, and regional market acumen enables them to serve the evolving needs of clients around the world.  The impact of doing these services will keep JPMC front and centered doing first class business.  This medium will help them keep customers looking forward to new relationships and helping them identify ways to help them achieve their most important business objectives.

The important things to look for in a balance sheet are assets and liabilities.  An asset is a resource that a corporation like JPMC owns and has economic value. The two major types of assets are its fixed assets and current assets.  The total asset value of JPMC stock for the last quarter was 2,417B.  The total liabilities of JPMC for the third quarter of 2015 are 2,171B. Liabilities for a company like JPMC include bank loans, services that have been availed and for which a settlement in the form of cash/ asset transfer needs to be done in future. JPMC takes on these obligations to grow its business that in turn will generate future economic benefits for its business.

2015-Q3              2015-Q2                2015-Q1                  2014-Q4        2014-Q3            2014-Q2

JP Morgan Chase Total Current Assets

1,831.55B            1,860.60B         1,967.66B           1,940.33B          1,868.55B           1,870.88B

JP Morgan Chase Total Assets

2,417.12B             2,449.60B         2,577.15B          2,573.13B          2,527.01B           2,520.34B

Other Current Liabilities

141.47B                 139.42B            158.27B              152.82B              143.26B              138.66B

JP Morgan Chase Total Current Liabilities

1,802.54B              1,841.64B         1,980.55B         1,981.64B          1,947.55B           1,942.66B

JP Morgan Chase Shareholders Equity

245.73B                  241.21B             235.86B             232.07B             231.28B              227.31B

JP Morgan Chase Total Liabilities & Shareholders’ Equity

2,417.12B              2,449.60B          2,577.15B         2,573.13B          2,527.01B          2,520.34B