j.p. morgan chase-katalin j.gabor m., zsanett z
TRANSCRIPT
KATALIN JÓZAN, GÁBOR MOLNÁR, ZSANETT ZEKE
Agenda
• history
past
History1799 Its earliest predecessor was chartered ( The Bank of The Manhattan Co.)
1871 J.P. Morgan & Co. was founded in New York
1895 J.P. Morgan & Co. helped end the panic of 1893
1907 During the financial panic, bailed out the city of New York, and rescued the Stock Exchange
1913 Congress established the Federal Reserve System to regulate the money supply and manage economy. Also gave the right for banks to make real estate loans
1915 During the war J.P. Morgan & Co. arranged a $500 million Anglo- French loan
1920s Wave of bank mergers - Chase National Bank acquired 5 banks
1929 Market crash and the Great Depression
1930 Chase National Bank is the world's largest bank (assets of $ 2.7 billion)
1930 Another predecessor, the National Bank of Detroit was formed at the depth of the Depression
1933 Congress passed the Glass - Steagall act
1929- Market crash and the Great Depression
• Black Tuesday, October 29, 1929 - many of the loans went into default
• For the banking industry, the 1930s would be the most difficult period in history
• In June 1932, depositors began withdrawing money from First National – Chicago’s largest bank – when claiming First National was insolvent
• Houston's major banks were on the brink of collapse
• National Bank of Detroit was established at these times
History1955 Chase National Bank merged with the Manhattan Co, formed The Chase Manhattan
Bank
1959 Guaranty Trust Co. merged J.P. Morgan & Co., created Morgan Guaranty Trust Co. of NewYork
1978 Morgan Guaranty has 16 overseas branches
1985 The Chase Manhattan Bank launched its electronic home banking service (Spectrum)
The Financial Crisis of 2008
• Lobbying against Glass-Steagall Act
• By 2008, financial institutions made massive derivative bets on the US housing market
• J.P. Morgan as a "too big to fail" bank
• The bank has to pay $13 Billion for causing the Financial crisis
• Aspire to be the best.• Execute superbly.• Build a great team and a
winning culture.
Business principles
Who
JP Morgan Chase & Co.
mission
vision
strategies
daily operations
„to be the best financial services company in the
world”
COMPLEX SIMPLICITY
What
How
Foundation
Headquarter
Expansion
Employees
Clients
Product range
New YorkNew York Charlotte
JPM BAC C JPM BAC C JPM BAC C0
5000001000000150000020000002500000
L/Dloan deposit
mill
ion
of d
olla
rsAsset
2005 2008 2014
2005 2008 20140
20000400006000080000
100000Revenues
JPMBACC
2005 2008 20140
1000020000300004000050000600007000080000
Expenses
JPM#REF!C
SP P/E EPS0
10
20
30
40
50
60
70 64.4
11.795.46
16.3523.83
0.69
53.35
21.56
2.48
JPMBACC
DY1.61.71.81.9
22.1
JPM BAC C
2005
2008
2014
-50.00% 0.00% 50.00%
ROE
CBACJPM
2014
Risk management
identification
measurement
monitoring or control
reporting
governance
Approaches
•Interest rate risk•macroeconomic forces •Derivative securities•risk management derivatives •Asset-backed securities•mortgage backed securities
Types of risks• Capital risk
• Compliance risk
• Country risk
• Legal risk
• Market risk
• Operational risk
• Reputation risk
• Non-USD FX risk
The two major risks
Credit Risk
• Definition
• Credit risk organization
• Risk identification and
measurement
• Stress testing
• Risk reporting
Liquidity Risk
• Definition
• Liquid assets
• Illiquid assets
• The demand and supply
of liquidity
Competitors
D/E IC DC05
1015202530
10.45.7
3.058.03 5.13 23.5
8.1
1.69
2013
D/E IC DC0
5
10
15
20
10.016.4
3.387.6 6.57 3
7.7
1.5
2014
D/E IC DC0
5
10
15
20
10.56
4.72 4.33
8.76 1.56
8.334.72
6.5
2012
Conclusion
past
„BE THERE FOR OUR CLIENTS AND COMMUNITIES IN GOOD TIMES — AND, MORE IMPORTANT, IN BAD TIMES”/JAMIE DIMON/
ReferencesBank of America Corporation (2015). 2014 Annual Report. Available at: http://media.corporate-ir.net/media_files/IROL/71/71595/AR2014.pdf (Accessed: 05 May 2015)citi (2015). 2014 Annual Report. Available at: http://www.citigroup.com/citi/investor/quarterly/2015/ar14c_en.pdf (Accessed: 05 May 2015)JPMorgan Chase & Co. (2015). ANNUAL REPORT 2014. Available at: http://files.shareholder.com/downloads/ONE/131692045x0x820066/f831cad9-f0d8-4efc-9b68-f18ea184a1e8/JPMC-2014-AnnualReport.pdf (Accessed: 05 May 2015)JPMorgan Chase & Co. (2008). The History of JPMorgan Chase & Co.: 200 Years of Leadership in Banking. Available at: http://www.jpmorganchase.com/corporate/About-JPMC/document/shorthistory.pdf (Accessed: 07 May 2015)
THANK YOU FOR YOUR ATTENTION!