JPMorgan Chase & Co. (JPM) is a global financial services holding company and the largest U.S. bank by assets. The company provides services including consumer banking, investment banking, commercial banking, and asset management for individuals, corporations, institutions, and governments globally.

New York City-based JPMorgan competes internationally with a broad range of banks, brokerage firms, investment banking companies, hedge funds, commodity trading companies, private equity firms, insurance companies and investment managers, including Bank of America Corp. (BAC), Citigroup Inc. (C), Morgan Stanley (MS), Wells Fargo & Co. (WFC), and Goldman Sachs Group Inc. (GS).

Key Takeaways

  • JPMorgan provides financial services to consumers, small businesses, large corporations, governments, and other clients.
  • Its Consumer & Community Banking segment is the largest source of revenue.
  • The Corporate & Investment Bank segment is the largest source of net income and is growing fast.
  • JPMorgan is shutting down its private banking business in Mexico after a similar closure of its private banking business in Brazil last summer.

JPMorgan’s Financials

JPMorgan posted a net income of $29.1 billion on revenue of $119.5 billion in its 2020 fiscal year (FY), which ended December 31, 2020. Revenue rose 3.6% compared to the previous year. The rise in revenue was driven by an 11.7% increase in non-interest revenue, which was slightly offset by a 4.7% decrease in net interest income.

Net income fell 20.0% in FY 2020 compared to FY 2019. Despite rising revenue, JPMorgan's net income was adversely impacted by a significant increase in provision for credit losses during the year. The bank set aside additional provisions amid the economic uncertainty triggered by the COVID-19 pandemic.

JPMorgan’s Business Segments

JPMorgan breaks down its revenue and net income into the following business segments: Consumer & Community Banking; Corporate & Investment Bank; Commercial Banking; Asset & Wealth Management; and Corporate. Unlike JPMorgan's companywide financial numbers, the segment breakdown is done on a non-GAAP basis. Total non-GAAP revenue in FY 2020 was $122.9 billion, approximately $3.4 billion more than GAAP revenue. Total non-GAAP net income for the year was $29.1 billion, the same as GAAP net income.

Consumer & Community Banking

JPMorgan's Consumer & Community Banking segment provides a variety of services to consumers and businesses including deposit and investment products, cash management, payment solutions, mortgage origination and servicing, credit-card issuance, and auto loans. The segment reported a net income of $8.2 billion in FY 2020, down 50.3% from the previous year. Revenue for the segment was $51.3 billion, down 7.0% from FY 2019. The segment accounts for about 27% of total net income and about 41% of total non-GAAP revenue.

Corporate & Investment Bank

JPMorgan's Corporate & Investment Bank segment provides investment banking, market-making, prime brokerage, and treasury and securities products and services to corporations, investors, financial institutions, and governments. Net income for the segment grew 43.0% in FY 2020 compared to FY 2019. At $17.1 billion, the segment accounts for about 55% of JPMorgan's total net income. Revenue for the segment grew 25.5% to $49.3 billion for the year, comprising about 40% of total non-GAAP revenue.

Commercial Banking

JPMorgan's Commercial Banking segment offers comprehensive financial solutions, including lending, wholesale payments, investment banking, and asset management products to clients including small businesses, midsized and large corporations, and local governments. The segment posted a net income of $2.6 billion in FY 2020, down 34.9% from the previous year and comprising about 8% of the total. Revenue for the segment grew 0.5% to $9.3 billion, comprising nearly 8% of total non-GAAP revenue.

Asset & Wealth Management

JPMorgan's Asset & Wealth Management segment provides services across all asset classes and has $2.7 trillion of assets under management (AUM). The segment also provides retirement products and services, as well as brokerage and banking. Net income rose 4.4% in FY 2020 to $3.0 billion, comprising nearly 10% of JPMorgan's total net income. Revenue grew 4.8% compared to FY 2019. At $14.2 billion, revenue for the segment accounts for about 11% of total non-GAAP revenue.

Corporate

JPMorgan's Corporate segment measures, monitors, reports, and manages the bank's liquidity, funding, capital, and foreign exchange risks, among other functions. The segment reported a net loss of $1.8 billion in FY 2020 compared to a net income of $1.1 billion in the previous year. Revenue for the segment was also negative at -$1.2 billion compared to $1.2 million in FY 2019.

(Note: segments with negative revenue and/or net income are excluded from the respective revenue and net income percentage share calculations and pie charts above.)

JPMorgan’s Recent Developments

JPMorgan is planning to close its private banking business in Mexico, people familiar with the matter told Bloomberg. The bank has signed an agreement to refer local business to BBVA Mexico, which is the local unit of Banco Bilbao Vizcaya Argentaria SA. However, JPMorgan will still continue to serve clients based in Mexico from outside of the country. The move follows a similar decision made by the bank last summer to shut down its local private-banking operations in Brazil and refer Brazilian clients to Banco Bradesco SA.

How JPMorgan Reports Diversity & Inclusiveness

As part of our effort to improve the awareness of the importance of diversity in companies, we offer investors a glimpse into the transparency of JPMorgan and its commitment to diversity, inclusiveness, and social responsibility. We examined the data JPMorgan releases to show you how it reports the diversity of its board and workforce to help readers make educated purchasing and investing decisions.

Below is a table of potential diversity measurements. It shows whether JPMorgan discloses its data about the diversity of its board of directors, C-Suite, general management, and employees overall, as is marked with a ✔. It also shows whether JPMorgan breaks down those reports to reveal the diversity of itself by race, gender, ability, veteran status, and LGBTQ+ identity.

JPMorgan Diversity & Inclusiveness Reporting
  Race Gender Ability Veteran Status Sexual Orientation
Board of Directors ✔ (U.S. Only)      
C-Suite
✔ (U.S. Only)
     
General Management ✔ (U.S. Only) ✔ (U.S. Only) ✔ (U.S. Only) ✔ (U.S. Only)
Employees ✔ (U.S. Only) ✔  ✔ (U.S. Only) ✔ (U.S. Only) ✔ (U.S. Only)