JPMorgan Chase & Co. (JPM) is an American multinational financial services firm headquartered in New York City and incorporated in Delaware. As of 2023, it holds the distinction of being the largest bank in the United States and the world’s largest bank by market capitalization.
Founding and History:
- The firm’s roots trace back to 1799, with the establishment of the Chase Manhattan Company.
- In 1871, J.P. Morgan & Co. was founded by J. P. Morgan, who launched the House of Morgan on 23 Wall Street. This institution provided commercial, investment, and private banking services.
- The present-day JPMorgan Chase & Co. emerged from the merger of the two predecessor firms in 2000, creating a diversified holding entity.
Business Segments:
- Investment Banking: JPMorgan Chase is a major provider of investment banking services, including corporate advisory, mergers and acquisitions, sales and trading, and public offerings.
- Asset Management: Their asset management division ranks among the world’s largest in terms of total assets.
- Retail Banking and Credit Cards: These services are provided under the Chase brand in the U.S. and the United Kingdom.
- Commercial Banking: Serving millions of customers, predominantly in the U.S.
- Financial Transactions Processing: A leader in this domain.
Key Figures:
- Jamie Dimon serves as the Chairman & CEO.
- Daniel E. Pinto holds the position of President & COO.
- The firm manages over $2.6 trillion in client assets and operates across 100+ global markets with a workforce of 250,000+ employees.
Financial Snapshot (as of 2022):
- Revenue: $128.7 billion
- Net Income: $37.68 billion
- Total Assets: $3.89 trillion
- Total Equity: $292.3 billion
- Assets Under Management (AUM): $4.00 trillion.
- JPMorgan Chase’s size and scale have led to enhanced regulatory oversight, and its internal “Fortress Balance Sheet” ensures robust capital reserves. With its upcoming move to the JPMorgan Chase Building at 270 Park Avenue in 2025, the firm continues to shape the financial landscape globally.
Financial highlights for 2023:
- Second Quarter (2Q23) Financial Results:
- Net Income: $14.5 billion with an EPS of $4.75. Excluding significant items, net income was $13.3 billion with an EPS of $4.37 and a Return on Tangible Common Equity (ROTCE) of 23%.
- Managed Revenue: $42.4 billion.
- Expense: $20.8 billion with a managed overhead ratio of 49%.
- Loans: Average loans of $1.2 trillion, up 13% YoY and 10% QoQ.
- Deposits: Average deposits of $2.4 trillion, down 6% YoY and up 3% QoQ.
- Capital: CET1 capital of $236 billion with a standardized CET1 capital ratio of 13.8% and an advanced CET1 capital ratio of 13.9%.
- Capital Distribution: Common dividend of $2.9 billion or $1.00 per share, and $1.8 billion of common stock net repurchases.
- Significant Items: First Republic bargain purchase gain, net credit reserve build for First Republic, and net investment securities losses in Corporate.
- Third Quarter (3Q23) Trends:
- Total Net Revenue: $40.7 billion.
- Noninterest Expense: $21.8 billion.
- Pre-Provision Profit: $18.9 billion.
- Provision for Credit Losses: $1.4 billion.
- Net Income: $13.2 billion.
- Annual Report & Proxy:
- The annual report includes financial highlights, management’s discussion and analysis, consolidated financial statements, and corporate data.
- JPMorgan Chase continues to be a major player in the financial industry, with a strong balance sheet and global presence. If you’d like more detailed information, you can explore their official financial statements.
Stock performance:
- Historical Stock Price:
- As of December 11, 2023, the latest closing stock price for JPMorgan Chase is $159.10.
- The all-time high stock closing price was $161.65 on October 22, 2021.
- The 52-week high stock price stands at $159.38, which is 0.2% above the current share price.
- The 52-week low stock price is $123.11, which is 22.6% below the current share price.
- The average stock price for the last 52 weeks is $142.28.
- Analyst Forecasts:
- Analysts predict that JPMorgan Chase’s fair value will reach $141.16 in the next year, representing an increase of 3.14% from the current level.
- The average 12-month stock price forecast for JPMorgan Chase is $168.75, indicating an expected increase of 7.59%. The lowest target is $145, while the highest is $243. Overall, analysts rate JPMorgan Chase stock as a buy.
- Market Context:
- 2022 was a challenging year for growth companies due to inflation concerns and aggressive interest rate hikes by the Federal Reserve.
- JPMorgan Chase’s outlook is cautious, with the possibility of a global recession (though not unavoidable) and potential interest rate cuts.
- Economic growth estimates vary, with the U.S. economy projected to grow at 1%, while China leads with a 4% growth rate.
Board of Directors:
- James Dimon:
- Chairman of the Board and Chief Executive Officer.
- A prominent figure in the financial industry, he has been instrumental in shaping the company’s global presence.
- Linda B. Bammann:
- A member of the Board.
- Brings valuable expertise to the leadership team.
- Stephen B. Burke:
- Another distinguished Board member.
- Contributes to the governance and strategic direction of the firm.
- Mellody Hobson:
- Known for her leadership in finance and investment.
- An influential voice within the company.
- Timothy P. Flynn:
- A seasoned executive with a wealth of experience.
- Plays a crucial role in decision-making.
- Alicia Boler Davis:
- A dynamic leader with a background in technology and automotive industries.
- Enhances the Board’s diversity and perspective.
- Alex Gorsky:
- Former Chairman and CEO of Johnson & Johnson.
- Brings insights from the healthcare sector.
- Michael A. Neal:
- A respected financial professional.
- His expertise contributes to JPMorgan Chase’s success.
- Phebe N. Novakovic:
- CEO of General Dynamics.
- A strong advocate for effective governance.
- Virginia M. Rometty:
- Former Chairman, President, and CEO of IBM.
- Her strategic vision benefits the company.
- These individuals, along with other Board members, collectively provide leadership, governance, and strategic guidance to JPMorgan Chase & Co.