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Report on J.P. Morgan Chase & Co

J.P Morgan Chase is an oldest financial firm that is situated in United States. It is a leading global financial institution whose assets are worth $2.4 trillion. This company has numerous branches that operate in over 60 states. It has a total of 260,000 employees who serve millions of clients across the globe. These incorporate small enterprises and various prominent corporate and government customers. Additionally, this company is the leading in investment banking whereby it offers services for clients and other small businesses. It also gives tenders on services for commercial banking, asset management, and financial transaction processing as well as private equity.

                                                           Operations Section

             The functions or responsibilities of this financial institution are to participate fully in developing the economy by offering cash solutions to enterprises. Through this initiative, J.P Morgan Chase Company believes in financial capability where they solve issues that relate to funds insecurity. During this operation, the firm ensures that households are in position to manage effectively cash by accessing high quality services and financial products. Furthermore, it is the responsibility of this company to offer relevant and timely details to its customers. Statistical data reveals that approximately 2.5 billion individuals across the globe lack a bank account (Kolby, 2010). In regard to this issue, J.P. Morgan Chase & Co intervenes to ensure that each person has a financial capability by having his or her cash secured.

            The institution also has a financial solutions lab that recognizes, test and advance the availability of promising innovations to assist Americans. It is a $ 30 million initiative that is intended to last for five years. Their job is to ensure that they increase savings, build assets and improve credit of individuals and their businesses. This firm also contributes a lot in assisting Americans to create bank accounts to avoid inappropriate use of funds especially by low income families. Furthermore, another vital function that is offered by the company is to campaign for financial literacy and capability. They accomplish this by incorporating efforts that evolve and go beyond raising awareness to enhance behavioral change that leads to financial success.

            The firm’s responsibility is to support the society’s economic future through its global city initiative.  For instance, it assists metro regions to implement investment strategies and create global businesses that increase job opportunities and expand the economies. Through this initiative, the company’s duty is to equip government and civic leaders with information, connections and policy ideas to improve their regions. Another duty of the institution is evident when they invested in Detroit’s future. For instance, they pledged $100 million to sponsor and hasten the economic recovery of the city. Furthermore, this institution has deployed over $20 million to offer training sessions in the work force. Its other responsibility is clear when it develops small enterprises and promotes communities via innovative programs.

              J.P. Morgan Chase & Co has excelled in providing modern skills at work place that make individuals to be competitive for jobs and transform their lives. The company also enhances progress in small businesses by connecting them to critical resources. In this initiative, it spends $30 million to assist the upcoming entrepreneurs to develop at a fast rate and create more jobs.  This institution is responsible for social finance that generates positive outcome in relation to financial return. It achieves this by formulating solutions to cater for fund innovative to leverage financial value and market mechanisms.

             Analyzing the assets or sources of the company, it is evident that there is a leading manager for institutions, individuals and advisors. These entail investment official who are situated across the globe to give strategies on assets. It is one of the largest firms that incorporate wealth managers and huge assets under the executive of $1.7 trillion. From this source, it offers a range of investment capabilities and global market insights to match other corporations. These vast assets that are under proper management as the firm strives towards generating excess returns that offer world class solutions to customers. The liabilities and uses of funds in this company amount to $66.34 billion. These current liabilities represent debt obligations that are immediate and short term (Linton, 2013).

            J.P. Morgan Chase & Co generates revenues or profits by dividing its operations into five parts. Each segment consists of different expenses and returns which comes from the customer and community banking. The other sectors that contribute to the company’s profit include private equity, commercial banking, asset management, investment banking and wholesale corporate. For instance, consumer and community banking generated a profit of $11 billion in 2013 and a 2% increase in 2014. The risk at the company includes market, credit and interest threats which are controlled under a management procedure. This entails a risk policy committee who review and approve risk management plan of the bank. In return, they handle such peril by overseeing operations of the firm based on the global risk administration framework.

Performance Section

            The profit margin of J.P. Morgan Chase & Co on quarterly basis for December 2014 was 21.90 percent. During the same month in 2013, the company received a profit of 22.79 percent while in 2012 it was 24.06 percent. This profit margin depicts percentage revenue of the firm after it has accounted for variable and fixed costs. Return on assets ROA of this company indicates that on December 31, 2014, the record was 0.87 percent. During the same month in 2013, it was 0.74 percent while in 2012 was 0.92 percent (Kolby, 2010). Return on assets shows the after tax that is generated on all assets of the firm despite the financing structure. It is a measure that reveals how the company is making use of stakeholder’s assets to gain returns. The return on equity of this firm of December 31, 2014 was 10.50 percent. During the same time in 2013, it was 9.09 percent while in 2012 was 11.48 percent. Return on equity ROE determine the rate of cash return that is invested by frequent stock owners and retained by the firm. It exhibits the capability of the institution to earn profits from shareholders equity as net assets or liabilities.

Investment Ratios

             This incorporates earnings per share EPS that stand for the firm’s profit which is allocated to each of outstanding share of the common stock. They are the net income for a period divided by the figure of exceptional shares within that time. The latest records indicate that on December 31, 2014, the EPS was 1.635 percent. The dividend per share reflects the firm’s annual sum of the yield that is divided by the current price share. The latest reports on earnings per share indicate a percentage of 2.55 on March 3, 2015. Investing in firms that have stable and high yields implies that investors will generate steady flow cash. The latest price to earning P/E ratio of J.P. Morgan Chase & Co was 10.80 percent on March 3, 2105 (Moore, 2009). It is the measure of the amount per share that relates to annual net income generated by this firm. Trends in recent performance depict an increase in percentage of investment ratios and its comparison to the industry shows progress.

References

Kolby, M. (2010). Report on J.P. Morgan Chase & Co.New Yolk: NY University Press.

Linton, H.  (2013) Assets and Liabilities of Morgan Chase &Co. London: Sage Publications.

Moore, C. M. (2009). Industry Performance Trends 2nd ed. Thousand Oaks, Calif.: Sage   Publications.