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 Corporate & Investment Bank segment is the largest and fastest growing source of revenue and income.
  • The bank has increased its provision for credit losses amid economic impact from COVID-19 pandemic.
  • JPMorgan executives told sales and trading staff to return to office after months working from home due to the coronavirus health crisis.

JPMorgan’s Financials

JPMorgan posted net income of $4.7 billion on revenue of $33.0 billion in Q2 2020, which ended June 30, 2020. Revenue grew 14.7% compared to the same three-month period a year ago. Revenue growth for the quarter was completely driven by increases in non-interest revenue, up 33.3% compared to Q2 2019. Net interest income fell 3.8%.

Net income plunged 51.4% in Q2 2020 compared to the year-ago quarter. JPMorgan said the decline in net income was driven by reserve builds across the firm. The bank's provision for credit losses rose to $10.5 billion, up $9.3 billion from the previous year amid the increased economic uncertainty arising from 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 segments' breakdown is done on a non-GAAP basis. Total non-GAAP revenue in Q2 2020 was $33.8 billion, approximately $0.8 billion more than GAAP revenue. Total non-GAAP net income for the year was $4.7 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 loss of $176 million in Q2 2020, a significant change from the $4.2 billion in net income reported in the year-ago quarter. Revenue for the segment was $12.2 billion, down 9.4% from the same three-month period a year ago. The segment accounts for about 35% of JPMorgan's 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 85.5% in Q2 2020 compared to the same quarter a year ago. At $5.5 billion, the segment accounts for about 89% of JPMorgan's total net income. Revenue for the segment grew 66.3% to $16.4 billion for the quarter, comprising about 47% of total non-GAAP revenue.

Commercial Banking

JPMorgan's Commercial Banking segment offers comprehensive financial solutions, including lending, treasury services, investment banking, and asset management products to clients including small businesses, midsized and large corporations, and local governments. The segment posted a net loss of $691 million in Q2 2020, a significant change from the $1.0 billion in net income reported in the year-ago quarter. Revenue for the segment grew 4.7% to $2.4 billion, comprising nearly 7% of total non-GAAP revenue.

Asset & Wealth Management

JPMorgan's Asset & Wealth Management segment provides services across all asset classes, and has $2.5 trillion of assets under management (AUM). The segment also provides retirement products and services, as well as brokerage and banking. Net income fell 8.5% in Q2 2020 to $658 million, comprising nearly 11% of JPMorgan's total net income. Revenue grew 1.4% compared to the year-ago quarter. At $3.6 billion, revenue for the segment accounts for about 10% 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 $568 million in Q2 2020 compared to net income of $828 million in the same three-month period a year ago. Revenue for the segment was also negative at -$754 million compared to $322 million in Q2 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 executives told senior staff of its sales and trading operation to return to the office by September 21. The bank had sent employees home in mid-March in response to the COVID-19 health crisis. The bank is making exceptions for employees with child-care issues and medical conditions that make them more vulnerable to the virus, allowing these employees to continue working from home.

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)