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J P Morgan Chase & Co – Recent Acquisitions, Financial & Competition Analysis

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JPMorgan Chase & Co

JPMorgan Chase & Co. is an American multinational banking corporation of securities, investments and retail.

Company Facts

  • Largest bank in the United States by assets
  • Major provider of financial services
  • Having assets of over $2 trillion
  • World’s second largest public company based on a composite ranking  (Source: Forbes magazine)
  • Hedge fund unit of JPMorgan Chase is one of the largest hedge funds in the United States.


  • Formed in 2000, when Chase Manhattan Corporation merged with J.P. Morgan & Co.
  • The J.P. Morgan brand is used by the investment banking as well as the asset management, private banking, private wealth management and treasury & securities services divisions
  • Fiduciary activity within private banking and private wealth management is done under the aegis of JPMorgan Chase Bank
  • The Chase brand is used for credit card services in the United States and Canada.

The company is one of the Big Four banks of the United States with Bank of America, Citigroup and Wells Fargo.

JP Morgan’s Recent Acquisitions

  • In 2006, JPMorgan Chase purchased Collegiate Funding Services, a portfolio company of private equity firm Lightyear Capital, for $663 million
  • In April 2006, JPMorgan Chase announced it would swap its corporate trust unit for The Bank of New York Co.’s retail and small business banking network
  • The swap valued The Bank of New York business at $3.1 billion and JPMorgan’s trust unit at $2.8 billion and gave Chase access to 338 additional branches and 700,000 new customers in New York, New Jersey, and Connecticut.
  • In March 2008, JPMorgan acquired the UK-based carbon offsetting company ClimateCare
  • In November 2009, JPMorgan announced it would acquire the balance of JPMorgan Cazenove, an advisory and underwriting joint venture established in 2004 with the Cazenove Group, for GBP1 billion.


JPMorgan Chase & Co. owns five bank subsidiaries in the United States:

  • JPMorgan Chase Bank, National Association;
  • Chase Bank USA, National Association;
  • Custodial Trust Company;
  • JPMorgan Chase Bank, Dearborn; and
  • J.P. Morgan Bank and Trust Company, National Association.

JPMorgan Chase’s activities are organized, for management reporting purposes, into various business segments which include Investment banking, Card services and consumer lending, commercial banking; Personal and business banking, treasury & securities services, asset management, etc.

JP Morgan Chase in India

India being one of the major emerging economies in the Asia Pacific Region, it continues to be an important focus for JPMorgan’s expansion in the region. The company is providing its expert banking services in Indian Territory and is having a huge clientele. The growing Indian economy has always been a sought after territory for investment for businesses outside and within India. JPMorgan provides M&A advisory, wealth management, etc. to firms so as to help them grow at a much rapid rate. The company also help in derivatives so as to minimize the risk exposure due to currency fluctuations, and other macroeconomic factors.

Financial Analysis of JP Morgan Chase

The JPMorgan engendered net income of 18.976 billion USD in the year ended December 31, 2011 which is better than previous net income of 17.370 billion USD.  Also the increase in net income has led to increase EPS which is positive for the company.

1y Target Est: 50.21
Beta: 1.66
52wk Range: 30.83 – 46.49
Avg Vol (3m): 2,34,31,700
Market Cap: 175.40B
P/E (ttm): 9.79
EPS (ttm): 4.71
Div & Yield: 1.20 (2.60%)


The competitor analysis very well shows that the company has a strong position among its competitors with a close competition from BoA in terms of revenue. If we see the net income, we find that the company has a strong profitability and net income as compared to others. In future, it is expected to perform well.

Financial Highlights
Market Cap 175.40B
Enterprise Value (Jan 12, 2013) -4.30B
PEG Ratio (5 yr expected)1: 1.34
Price/Sales (ttm): 1.99
Price/Book (mrq): 0.92
Profit Margin (ttm): 21.97%
Operating Margin (ttm): 34.00%
Revenue (ttm): 87.95B
Revenue Per Share (ttm): 23.09
Qtrly Revenue Growth (yoy): 5.20%
Gross Profit (ttm): 97.23B
Net Income Avl to Common (ttm): 17.98B
Diluted EPS (ttm): 4.71
Qtrly Earnings Growth (yoy): 33.90%
Total Cash (mrq): 890.26B
Total Debt (mrq): 710.57B
Book Value Per Share (mrq): 50.18

Competition Analysis of JP Morgan Chase

JP Morgan Bank of America Corporation Barclays PLC Citigroup Inc.
Market Cap: 175.40B 125.35B 58.91B 124.16B
Employees: 2,59,547 2,72,600 1,39,000 2,61,000
Revenue (ttm): 87.95B 80.66B 39.85B 58.60B
Operating Margin (ttm): 0.34 0.18 0.23 0.14
Net Income (ttm): 17.98B 3.98B 2.54B 7.15B
EPS (ttm): 4.71 0.37 0.81 2.37
P/E (ttm): 9.79 31.43 23.76 17.89
PEG (5 yr expected): 1.34 5.25 0.25 1.02



Niraj Satnalika

Niraj is an MBA in International Business (Finance). Prior to this he completed B.Tech in Electronics and Instrumentation. He is currently working with Confederation of Indian Industry (CII), Kolkata in capacity of Consultant. Satnalika is actively involved with an NGO and works towards promoting education among the underprivileged.

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