JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management segments. The Consumer & Community Banking segment offers deposit and investment products and services to consumers; lending, deposit, and cash management and payment solutions to small businesses; residential mortgages and home equity loans; and credit cards, payment services, payment processing services, auto loans and leases, and student loans. The Corporate & Investment Bank segment provides investment banking products and services, including advising on corporate strategy and structure, and capital-raising in equity and debt markets, as well as loan origination and syndication; treasury services, such as cash management and liquidity solutions; and cash securities and derivative instruments, risk management solutions, prime brokerage, and research services. It also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies, and public and private investment funds. The Commercial Banking segment offers financial solutions, including lending, treasury, investment banking, and asset management to corporations, municipalities, financial institutions, and nonprofit entities, as well as financing to real estate investors and owners. The Asset & Wealth Management segment provides investment and wealth management services across various asset classes, such as equities, fixed income, alternatives, and money market funds; multi-asset investment management services; retirement services; and brokerage and banking services comprising trusts, estates, loans, mortgages, and deposits. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.
Business Analysis of JPMorgan Chase
The Banking Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how JPMorgan Chase compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by JPMorgan Chase to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of JPMorgan Chase with an interactive chart.
- Revenue Growth: JPMorgan Chase reported a revenue growth of 2.3% year-on-year during 2016. Banking Industry grew at 1.5% in the same period
- COGS share of Revenues: JPMorgan Chase COGS share of Revenues details are not available because either company does not share the data or we do not have it
- R&D share of Revenues: JPMorgan Chase R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, JPMorgan Chase spent 52.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Banking industry average SG&A spending in the same period was 53.7%
- Inventory share of Revenues: JPMorgan Chase Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: As a percentage of revenue, JPMorgan Chase invested 199.2% of its total revenues on Accounts Payable (A/P) Banking industry average Accounts Payable investment in the same period was 54.0%
- Accounts Receivable share of Revenues: As a percentage of revenue, JPMorgan Chase invested 54.7% of its total revenues on Accounts Receivable (A/R). Banking industry average Accounts Receivable investment in the same period was 30.1%
- PP&E share of Revenues: As a percentage of revenue, JPMorgan Chase invested 14.8% of its total revenues on Property, Plants, and Equipments (PP&E). Banking industry average PPE investment in the same period was 14.0%
- Intangibles share of Revenues: As a percentage of revenue, JPMorgan Chase invested 56.7% of its total revenues on Intangibles. Banking industry average Intangibles investment in the same period was 60.1%
- Net Margins: JPMorgan Chase Net Margins in the year 2016 were 23.6%. Banking industry average Net Margins in the same period were 23.5%
Sector and Industry Association of JPMorgan Chase
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
JPMorgan Chase is associated with Financials Sector Group, Banking Sector, and Banking Industry.
Banking sector is comprised of a single industry: Banking. Its definition is as follows:
- Banking industry includes banks providing a broad range of financial services, including retail banking, loans and money transmissions.
Industry Ranking of JPMorgan Chase
With $95.7 billion revenues, JPMorgan Chase ranked number 1 of all the companies in the US Banking industry. There were a total of 179 public companies in the US Banking industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Banking industry by revenues during 2016 were:
- JPMorgan Chase ($95.7 billion)
- Wells Fargo ($84.5 billion)
- Bank of America ($83.7 billion)
- Citigroup ($69.9 billion)
- US Bancorp ($19.8 billion)
- PNC Financial Services Group ($15.2 billion)
- BB&T ($10.2 billion)
- SunTrust Banks ($8.2 billion)
- Fifth Third Bank ($6 billion)
- Regions Financial ($5.3 billion)
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
- Get in touch with us to learn more about Business Model Analysis Framework
- Get free data, charts, and analysis of JPMorgan Chaseand its peers on select key performance indicators by clicking the reports provided below