1. Leadership Team
O P E R AT I N G C O M M I T T E E
Jamie Dimon Bill Daley 13 G o r d o n S m i t h 15 B i l l W i n t e r s
1 7
Chairman and Corporate Responsibility Card Services Investment Bank
Chief Executive Officer
Ina Drew 14 J e s S t a l e y 16 B a r r y Z u b r o w
8
Frank Bisignano
2 Chief Investment Office Asset Management Risk Management
Chief Administrative Office
Todd Maclin
9
Steve Black
3 Commercial Banking
Investment Bank
3
10 J a y M a n d e l b a u m 6 13
12
8 14
10 16
2
John Bradley
4 15
Strategy & Marketing
Human Resources 7
1
11 H e i d i M i l l e r 4 11
9
Mike Cavanagh 5
5 Treasury & Securities Services
Finance
12 C h a r l i e S c h a r f
Steve Cutler
6 Retail Financial Services
Legal & Compliance
2. Investment Bank
2007 Highlights and Accomplishments
• Institutional Investor’s America’s
JPMorgan is one of the world’s • Record year-over-year revenue
leading investment banks with performance in:
Investment Bank of the Year.
one of the most extensive client – Investment banking fees, 19% growth;
• Risk magazine’s:
lists in the world. Our full platform – M&A advisory fees, 37% growth;
– Derivatives House of the Year;
enables us to develop some of the – Equity underwriting fees, 45% growth;
– Best Derivatives House of the Past 20
most complete and innovative – and
– Years; and
financial solutions in the industry. – Equity markets revenue, 13% growth.
– Best Credit Derivatives House – Pioneer
We offer clients a full range of • Gross investment banking revenue
– and Modern Great.
services, including strategic advice, from Commercial Banking clients up
• #1 in global investment banking fees.(a)
capital raising, restructuring, risk
24% from 2006.
management, market-making and
• #1 in global loan syndications and
• Strong progress on growth initiatives,
research. We cover clients in more
global high-yield bonds for the third year
including energy, emerging markets and
than 100 countries and have global
in a row.(b)
leadership positions in our key retail structured products.
products. JPMorgan also commits • #2 in equity underwriting, up from #6
• Low subprime exposure relative to the
in 2006.(b)
its own capital to proprietary
financial industry.
investing and trading activities.
• Revenue of more than $5 billion in
We continue to strengthen • Outstanding first half offset by more
equity underwriting and equity markets.
our platform and develop new difficult second half with leveraged loan
products to meet clients’ needs. and credit-related writedowns.
(a) Dealogic
(b) Thomson Financial
“Despite the industry-wide
challenges we faced during
“The risk management lessons
the second half of 2007,
we still produced record we learned from the past
full-year revenue in several paid dividends this year and
areas. Looking ahead to helped us avoid some of
2008, we believe having the pitfalls that affected the
a fortress balance sheet will industry. While we remain
prove a sizable advantage cautious about the near-term
at a time when capital is at outlook, we believe we are
a premium.“ extremely well-positioned for
the long term with strong
Steve Black (left)
client relationships, global
co-CEO Investment Bank
leadership positions and high
capital ratios.”
Bill Winters (right)
co-CEO Investment Bank
3. Retail Financial Services
“Capitalizing on the strength of the Chase
brand, we’ll continue to expand our branch
and ATM network to increase convenience
for our customers. We will strengthen our
team of well-trained bankers and mortgage
officers and improve our products to help
customers handle their money, finance
their homes, run their businesses and
manage their investments, deepening
their relationship with Chase.
“We have tightened our underwriting
standards and are using our financial
strength during this period of economic
uncertainty to expand relationships, gain
new customers and position ourselves for
long-term growth across our businesses.“
Charlie Scharf – CEO Retail Financial Services
2007 Highlights and Accomplishments
• Opened 127 new branches (and a total • Expanded market share in mortgages
Retail Financial Services serves
consumers and businesses through of 528 since 2004) and added 680 ATMs and home equity to 11% in the fourth
quarter, up from 6% a year earlier.(a)
personal service at bank branches (2,536 since 2004) in major Chase markets.
and through ATMs, online banking Originated $208 billion in home loans
• Increased in-branch personal bankers,
and telephone banking as well during the year even as we tightened
business bankers, mortgage officers and
as through loan offices, auto our underwriting standards.
investment specialists by a combined
dealerships and school financial
2,568, or 23%, including additions from • Increased third-party mortgage servicing
aid offices.
the 2006 acquisition of The Bank of portfolio 17% to $615 billion.
Customers can use more than New York branches.
• Increased active online customer base
3,100 bank branches (fourth-
• Increased in-branch sales of credit cards 21%; generated 258 million online
largest nationally), 9,100 ATMs (#3)
23%, mortgages 31% and investments 23%. transactions, including bill payment and
and 290 mortgage offices. More
electronic payment, an increase of 38%.
than 13,700 branch salespeople
• Increased checking accounts by 844,000,
assist customers with checking
or 8%, and deposits 3% to $221 billion. • Improved customer experience and
and savings accounts, mortgages,
sales through refurbishment, rebranding,
home equity and business loans, • Increased number of households with core
technology conversion and sales process
and investments across the 17-state retail relationships 12% to 10.3 million.
enhancements at former Bank of New
footprint from New York to Arizona.
• Increased business banking loan York branches.
Consumers also can obtain loans
originations 20% to $6.8 billion.
through more than 14,500 auto
dealerships and 5,200 schools and
universities nationwide.
(a) Source: Inside Mortgage Finance 19
4. Card Services
“In a challenging environment,
we generated solid momentum
in 2007 and established a clear
vision for the future. Chase Card
Services aims to create lifelong,
engaged relationships with our
customers by being a trusted
provider of financial services. We
are supporting our vision with a
solid growth strategy – focusing
our efforts on key marketplace
segments, including the small
business, mass affluent and
high-net-worth markets.”
Gordon Smith – CEO Card Services
2007 Highlights and Accomplishments
• Better leveraged the JPMorgan Chase
• Added 16 million new Visa, MasterCard
With 155 million cards in circula-
franchise by increasing the number
and private label accounts.
tion and more than $157 billion
of credit cards sold through the Retail
in managed loans, Chase Card
• Maintained Chase’s position as the
Financial Services network by 23%
Services is one of the nation’s
second-leading issuer of MasterCard
from 2006.
largest credit card issuers.
and Visa cards in the U.S.
Customers used Chase cards
• Increased charge volume by $15 billion
to meet more than $354 billion • Moved core processing platform
from 2006.
worth of their spending needs in-house, allowing for greater techno-
in 2007. • Increased net revenue 3% and grew
logical innovation, more flexibility
managed loans 3% while investing in
and reduced costs.
With hundreds of partnerships,
activities to attract new customers and
Chase has a market leadership • Further enhanced the innovative
further engage current cardmembers.
position in building loyalty Chase Freedom program, which gives
programs with many of the • Increased merchant processing volume
cardmembers the choice of earning
world’s most respected brands. to $719 billion, up 9% from 2006, through
either cash or points and changing
Chase Paymentech Solutions, LLC, the
back and forth without leaving any
nation’s largest merchant processor.
rewards behind. The Chase Freedom
program has generated more than
one million new customers since its
2006 launch.
20
5. Commercial Banking
2007 Highlights and Accomplishments
• Added in excess of 2,200 new banking
• Increased net income 12% to a record
Commercial Banking serves more
relationships through accelerated calling
$1.1 billion and net revenue 8% to a
than 30,000 clients nationally,
efforts and targeted marketing initiatives.
including corporations, munici- record $4.1 billion.
palities, financial institutions and
• Maintained favorable market position
• Achieved record results in gross invest-
not-for-profit entities with annual
relative to the industry through
ment banking revenue of $888 million,
revenue generally ranging from
conservative credit underwriting and
treasury services revenue of $2.4 billion,
$10 million to $2 billion. It is the
strong credit reserves.
loan balances of $61.1 billion and liability
#1 commercial bank in market
balances of $87.7 billion.
penetration within Chase’s retail • Converted the wholesale New York
branch footprint.(a) Tri-State customer base of more than
• #1 commercial bank in market penetration
332,000 deposit accounts, representing
within Chase’s retail branch footprint.(a)
Commercial Banking delivers
almost $28 billion, and migrated
extensive industry knowledge, local
• #2 large middle-market lender in the U.S.(b)
customers acquired from The Bank of
expertise and a dedicated service
New York to the firm’s platforms.
• #2 asset-based lender in the U.S.(b)
model. In partnership with the
firm’s other businesses, it provides • Delivered focused leadership training to
• Launched seven new offices, expanding
comprehensive solutions, including more than 500 managers and enhanced
coverage in Atlanta, Nashville, Philadel-
lending, treasury services, invest-
employee diversity and performance
phia and Seattle, including three
ment banking and asset manage-
initiatives.
international locations in Vancouver,
ment to meet its clients’ domestic
Mumbai and Singapore.
and international financial needs.
(a) Barlow Footprint Study, 2007
(b) Loan Pricing Corporation, 2007
“Commercial Banking performed
exceptionally well in a volatile and
challenging economic environment,
retaining a position of strength in
our markets and resulting in record
growth consistent with our 2007 plan.
“In 2008, we will redouble our
prospecting efforts to broaden our
market coverage, maintain a strong
and well-managed loan portfolio,
and continue to make smart credit
decisions. We will also practice
diligent expense control and remain
vigilant over market conditions to
provide insightful and disciplined
advice to our clients.”
Todd Maclin – CEO Commercial Banking
6. Treasury & Securities Services
2007 Highlights and Accomplishments
• Increased net income 28% year-over-year • Completed acquisitions of Xign
Treasury & Securities Services is
to a record $1.4 billion on the strength of Corporation, a leading provider of
a global leader in transaction,
record net revenue of $6.9 billion.
investment and information services. business-to-business on-demand financial
We are one of the world’s largest settlement solutions; of FisaCure, Inc., a
• Increased assets under custody 15% to
cash management providers and a leading provider of electronic remittance
$15.9 trillion and liability balances 21% to
leading global custodian, operating services to the healthcare industry; and of
$228.9 billion.
through two divisions: the U.S. transfer agency services business
• #1 in Sameday U.S. Dollar Funds Transfers(a), of Integrated Investment Services.
Treasury Services provides cash man-
Automated Clearing House Originations(b),
agement, trade, wholesale card and • Introduced new offerings to support
CHIPS(c) and Fedwire.(d)
liquidity products and services to comprehensive financial supply chain and
small- and mid-sized companies,
border logistics management; card-based
• Grew revenue 26% outside the U.S. and
multinational corporations, financial
invoice settlement for accounts payable;
strengthened our international presence,
institutions and government entities.
and the securities processing and fund
securing regulatory approval to connect to
Worldwide Securities Services holds, administration needs of financial institutions.
China's electronic clearing system and grow-
values, clears and services securities, ing our hedge fund, image deposit, euro
• Industry awards included Best Overall
cash and alternative investments payment, private equity, commercial card
Bank for Payments and Collections in
for investors and broker-dealers and other capabilities in targeted markets.
North America (Global Finance), Best
and manages depositary receipt
Investor Services (Waters magazine) and
• Migrated to a single U.S. dollar deposit plat-
programs globally.
Best Liquidity Solution Provider (The Asset).
form in JPMorgan Chase's largest conversion,
involving almost $180 billion in balances and
(a) Ernst & Young
nearly $10 trillion in daily transactions.
(b) NACHA
(c) The Clearing House
(d) Federal Reserve
“Our businesses posted record
results in 2007. Going forward, we
see our most promising opportunities
emerging in key markets outside
the U.S., and we’re confident we’ll
continue to effectively grow our
businesses around the world.
“In 2008, we will expand on our
success by enhancing our products
and delivery of services to our
clients – not only to improve efficiency
and reduce costs but also to ensure
we can adequately support the
tremendous growth in business
we continue to experience.”
Heidi Miller
CEO Treasury & Securities Services
7. Asset Management
“Looking ahead, we see tremendous opportunity
to build upon the momentum in our business.
We will continue to expand our alternative
asset class business, delivering innovative,
best-in-class investment products to our clients.
Our industry-leading Private Bank will capitalize
on its strength, while we increase our focus on
growth in Private Client Services. In Asia, we
will broaden and deepen our reach, building
on our unique leadership position in the region.
“Through our commitment to our values and our
dedication to outstanding investment perform-
ance, we will continue to deliver the best of
JPMorgan Asset Management to our clients.quot;
Jes Staley – CEO Asset Management
2007 Highlights and Accomplishments
• Grew alternative assets under manage-
With assets under supervision of • Record financial performance of 27%
$1.6 trillion, Asset Management is a ment, including hedge funds, real estate
revenue growth and 40% earnings growth.
global leader in investment and wealth and private equity 21% to $121 billion.
• Reached $1.2 trillion in assets under
management. Our clients include Continued to experience strong investor
management and $1.6 trillion in assets
institutions, retail investors and high- interest in Highbridge funds with 68%
under supervision. Net assets under
net-worth individuals in every major growth in assets under management.
management inflows were at a record
market throughout the world.
• Despite challenging markets throughout
level of $115 billion.
We offer global investment manage- the second half of the year, maintained
• JPMorgan Asset Management is the
ment in equities, fixed income, real strong three- and five-year investment
largest manager of AAA-rated global
estate, hedge funds, private equity
performance. Globally, the ranking of
liquidity funds with more than $294
and liquidity. We provide trust and
long-term mutual fund assets in the
billion under management. Grew global
estate and banking services to high-
first or second quartiles was 76% for the
liquidity balances 29%.(a)
net-worth clients and retirement
five years and 75% for the three years
services for corporations and individu-
• Experienced record growth in assets ended December 31, 2007. One-year
als. The majority of our client assets
performance declined from 83% to 57%.(c)
under supervision for the Private Bank
are in actively managed portfolios.
and Private Client Services with an
• Launched our first Qualified Domestic
increase of $80 billion. Achieved second
Institutional Investor (QDII) product in
(a) iMoneyNet, December 2007
consecutive year of record growth in
China, raising a record $15.4 billion on the
(b) Absolute Return magazine, March 2008 issue,
net new Private Bank clients.
data as of year-end 2007
first day of IPO from 1.9 million clients.(d)
(c) Derived from following rating services: Lipper for
• Retained position as largest manager
the United States and Taiwan; Micropal for the
United Kingdom, Luxembourg and Hong Kong; of hedge funds with assets under
and Nomura for Japan
management of $45 billion.(b)
(d) In conjunction with our joint venture partner,
Shanghai International Trust and Investment Co.,
Ltd. (SITCO); quota of $4 billion
23
8. Corporate Responsibility
“Corporate responsibility is
something that we all, as
business leaders, ought to
be thinking about every day.
We need to continually review
and ensure that we act in a
way that focuses on the impact
our businesses can and should
have. Taking this seriously is
a winning strategy for our
consumers and clients, our
company and the community.”
Bill Daley –
Head of Corporate Responsibility
2007 Highlights and Accomplishments
• Modified or refinanced $3 billion in sub-
• Established the Office of Corporate
At JPMorgan Chase, corporate
prime adjustable-rate mortgages to keep
Responsibility to develop a comprehen-
responsibility goes beyond
families in their homes. Shared expertise in
sive and identifiable platform driven by
philanthropy. It’s about what
helping lead national initiatives to prevent
we do every day in our busi- our business activities.
nesses and how we do it. We foreclosure (including HOPE NOW) and
• Strengthened our focus on the environ-
are committed to managing trained more than 1,300 non-profit coun-
ment by investing in alternative energy
our businesses to create selors to assist struggling homeowners.
projects, helping our clients reduce
value for our consumer and
• Created a dedicated investment banking
carbon emissions and taking the lead in
corporate clients, as well as
unit to support microfinance and social
developing The Carbon Principles.
our shareholders, communities
enterprises around the world.
and employees and to being a • Began the renovation of our NYC head-
responsible corporate citizen. • Invested $114 million in more than 2,400
quarters with the goal of Platinum LEED
not-for-profit organizations globally in
certification and opened pilot LEED-certi-
nearly 500 cities across 33 countries.
fied bank branches in Colorado and Texas.
• Invested more than $338 billion in low- and
• Helped shape federal legislation to
moderate-income communities across the
protect homeowners and to serve a
U.S. in the first four years of our 10-year, $800
broader range of families through
billion commitment. Will invest the addition-
expanded mortgage-loan limits.
From left to right: al $60 million allocation of New Markets Tax
• Helped consumers understand our
Thelma Dye – Director of Northside Center
Credit in low-income communities.
for Child Development, products’ terms and fees through
Bill Daley – Corporate Responsibility,
• Increased supplier diversity spending,
programs such as “Mortgage Nutrition
JPMorgan Chase,
Kim Davis – Philanthropy, JPMorgan Chase with more than $700 million going to
Labels” in Home Lending and “Clear
minority- and women-owned businesses.
and Simple” in Card Services.
24