The 5 Most Important Divisions for JPMorgan


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JP Morgan ( JPM ) is one of the leading global financial services company. The firm has an asset base of over $2 trillion and serves customers in more than 60 countries worldwide. Its main competitors include Bank of America ( BAC ), Wells Fargo ( WFC ), Goldman Sachs ( GS ), Deutsche Bank ( DB ) and Morgan Stanley (MS).

We have a price estimate of $48.87 on JPMorgan's stock, which is about 5% above the current market price.

The 5 Most Important Divisions for JPMorgan

1) Retail Banking - represents 19% of the company's stock value

The retail banking division of JPMorgan serves small businesses and consumers by providing traditional banking services to them through their various branch locations, ATM's, online banking etc. Customers have access to more than 5,100 bank branches (3rd largest in the U.S.) and over 15,000 ATM's (2nd largest in the U.S.) as well as online and mobile banking. See the top forecasts for this division

2) Credit Card Services - represents 16%

JPMorgan provides credit card services to customers. Customers use Chase cards all across the globe to make purchases. At the end of 2009 , JPMorgan had more than 145 million cards in circulation meeting nearly $328 billion worth of spending needs. With the acquisition of Washington Mutual, JPMorgan has become the nations largest issuers of Visa and MasterCard. See the top forecasts for this division.

3) Consumer Lending - represents 13%

The consumer lending division of JPMorgan serves consumers by providing lending services to clients. Loans originated include home mortgages, student, auto and other loans provided to individual consumers. Through JPMorgan's services, clients can obtain loans through more than 15,700 auto dealerships and nearly 2,100 schools and universities worldwide. See the top forecasts for this division.

4) Sales and Trading - represents 13%

The sales and trading segment of JPMorgan helps execute certain deal related transactions for corporate and commercial clients. The firm assists in making markets for institutional and high net worth clients. In 2009, the firm had nearly 6,500 professionals on approximately 120 trading desks in 25 trading centers around the world. See the top forecasts for this division.

5) Corporate/Private Equity - represents 9%

The corporate / private equity segment of JPMorgan comprises private equity, treasury, corporate staff units and expenses that are centrally managed. We group these units together in our analysis. The corporate portfolio is used by the bank to manage its excess cash, collateral needs and interest rate exposure. The main sources of income in this division is from the firms own personal investments that it makes and any gains associated with it. See the top forecasts for this division.

See our full analysis for JPMorgan

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Investing Ideas , Stocks , US Markets
Referenced Stocks: BAC , DB , GS , JPM , WFC

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