Uniform Bank Performance Report - Anderson School of Management

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Capital ratios, as well as Tier Leverage Ratio vastly exceeded par values. These show that the bank is well able to cover its risk‐weighted assets with capital. Another promising element of JPMC’s analysis is its Net Income figure. Net income for the bank suffered briefly in the fourth quarter of 2008, but has since made an amazing recovery. Since the beginning of 2009, net income has been fluctuating at around 75% of the levels they were at prior to the crisis. Liquidity is adequate in JPMC. Its Net non‐core funding dependence ratio has been steadily decreasing, meaning it is becoming less dependent on volatile sources of funding to settle its short‐term debt obligations. Compared to banks in its peer group, JPMC has an average NNCFDR. One of the factors that contribute to negative confidence in the bank is its relatively significant susceptibility to market risk. The fact that its interest rate sensitive derivatives outweigh its capital is frightening. However, the probability that these will end up forcing the bank into insolvency are slim. This risk is simply something to be taken into consideration when addressing the health of the bank, and should not necessarily deter potential depositors/investors. Conclusion Although its financial situation is far from perfect, JPMorgan Chase & Co. is financially stable and shows potential for growth in the future. It has maintained adequate ratios and numbers in almost every area of analysis, with an additional few that stand out as excellent. It continues to grow in size and scope through acquisitions and operations, and stands strong among competitors. The major problems faced by the bank are the large amount of toxic assets on and off its balance sheet, and its significant exposure to market risk. While these may inhibit growth and hurt profits in the short and medium‐terms, there is little chance that these problems will cause the bank to become insolvent. This claim is backed by evidence showing the bank’s strong liquidity and capital adequacy positions, as well as increased stability and recovery in the financial markets as a whole. In addition, the management of the company has shown that they are well‐able to manage all aspects of the bank and its ability to endure financial hardship as well as prosper in times of growth.
Works Cited ACHIBUS. (2009, October 29). ARCHIBUS Success Story. Retrieved from Brealey, R., Myers, S., & Marcus, A. (2007). Fundamentals of Corporate Finance. New York, NY: McGraw‐Hill/Irwin. Community Support | Learn how JPMorgan Chase is giving back during these Economic Times. 2009. Web. 07 Oct. 2009. . Dash. E. (2009, October 14). JPMorgan Chase Reports Strong Profit of $3.6 Billion. Retrieved on October 27, 2009 from N.Y. Times “Dodd Introduces Bill To Immediately Freeze Credit Card Interest Rates.” United State Senate Committee on Banking, Housing and Urban Affairs: Newsroom. 26 October 2009. FDIC: Federal Deposit Insurance Corporation. FDIC Law, Regulations. 30 July, 2009 Appendix D to Part 225—Capital Adequacy Guidelines for Bank Holding Companies: Tier 1 Leverage Measure FDIC: Federal Deposit Insurance Corporation. FDIC Law, Regulations. 3 September, 2009 2000 Rules and Regulation FDIC: Federal Deposit Insurance Corporation. Introduction‐ Capital. 30 October, 2009 . Ham, Jeffery. “Tier 1 Capital Ratio Defined.” Briefing.com. 9 November, 2009. Harney, K. (2009, October 27). Real Estate Outlook: Just Right Housing. Retrieved on October 27, . Insidel, Rob. “Profit Solid, J.P. Morgan Aims to Repay TARP Funds.” Wall Street Journal. April 2009. WSJ.com. 26 Oct 2009. JP Morgan Chase & Co. “2006 Annual Report” JP Morgan Chase & Co. 2006 JP Morgan Chase & Co., “2007 Annual Report” JP Morgan Chase & Co. 2007 JP Morgan Chase & Co., “2008 Annual Report” JP Morgan Chase & Co. 2008
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Uniform Bank Performance Report Ale
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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 and 20: Commercial Banking The Commercial B
Page 21 and 22: In Q3, sub‐prime mortgages accoun
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: price of the company could increase
Page 59: Quinn, James. “JP Morgan Bags Bar
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