Uniform Bank Performance Report - Anderson School of Management

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Interest Rate 0.1 0.08 0.06 0.04 0.02 0 New Car Auto Loan October 2009 National Average JpMorgan Chae 36 month 48 month 60 month 72 month Due to its superior rates, the Chase Bank subsidiary of JPMC was the largest auto lender in the United States during the first half of 2009. During the second quarter, new auto loans and leases totaled $5.3 billion, towards more than 544,000 vehicles. Student Loans JP Morgan Chase offers student loans with payments deferrable until after graduation. JPMC’s Loan officers work closely with financial aid departments at universities in order to negotiate loans that require no origination or repayment fees. JPMC and Banc One are the primary student loan providers in the nation. Combined, these two banks comprise 15% of the $45 billion student loan industry. Mortgages JPMC, specifically the Chase Bank subsidiary, provides mortgage loans to individuals through its “Chase Mortgage” program 17 . These mortgages, as well as sub‐prime mortgages purchased by JPMC Investment banking for securitization, have caused major problems on JPMC’s balance sheet. In 2009, JPMC suffered losses of $389 million in Q1, $955 million in Q2, and $1 billion in Q3, totaling $2.057 billion so far on its mortgage portfolio. This loss amounts to 29.59% of the company’s 2009 net income through Q3 ($7.92 billion). 17 http://mortgage.chase.com/pages/shared/gateway.jsp*
In Q3, sub‐prime mortgages accounted for $433 million of JPMC’s assets, and carried a 12.31% Charge off rate. To combat this tremendous charge‐off, JPMC has approved more than 262,000 new trial modifications under the government’s “Making Home Affordable Program” and their own modification program. Nearly 90% of these modifications include reduced payments for homeowners. Since 2007, JPMC has helped families by initiating actions to prevent foreclosure on over 782,000 homes. Despite the economic hardship, JPMC has not given up its pursuit of providing competitive mortgage interest rates. The graph below depicts JPMC’s interest rates against the national average as of October 2009. These rates are based on conventional mortgage loans of $200,000 with a 10% down payment. 6.000% 5.000% 4.000% 3.000% 2.000% Mortgage Rates (2009) National Average JPM Chase 1.000% 0.000% 30yr 15yr 5/1arm
Page 1 and 2: Uniform Bank Performance Report Ale
Page 3 and 4: Performance Analysis……………
Page 5 and 6: 1915: J.P. Morgan arranges the bigg
Page 7 and 8: out New York City, and rescued the
Page 9 and 10: 1991: Chemical Banking Corp. combin
Page 11 and 12: and successes. Each component of mo
Page 13 and 14: Management Key Biographies James S.
Page 15 and 16: James E. Staley, Chief Executive Of
Page 17 and 18: At JPMC, deposit accounts are part
Page 19: Commercial Banking The Commercial B
Page 23 and 24: esponsible spending while decreasin
Page 25 and 26: JPMC has Investment Banking branche
Page 27 and 28: illion loss. Shortly after the acqu
Page 29 and 30: een lost. The investment banking mo
Page 31 and 32: other in exchange for the guarantee
Page 33 and 34: Troubled Assets Relief Program (TAR
Page 35 and 36: publicly about the effectiveness of
Page 37 and 38: ($million) 6/30/09 12/31/08 6/30/08
Page 39 and 40: Performance Analysis As one of the
Page 41 and 42: Expense The interest expense for JP
Page 43 and 44: significant increase from the figur
Page 45 and 46: The return on assets ratio (ROA) se
Page 47 and 48: The net interest margin (NIM) is an
Page 49 and 50: 2009, shows significant exposure to
Page 51 and 52: JPMC’s net income ratio has been
Page 53 and 54: A figure to consider when examining
Page 55 and 56: price of the company could increase
Page 57 and 58: Works Cited ACHIBUS. (2009, October
Page 59: Quinn, James. “JP Morgan Bags Bar

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