J.P. Morgan Chase & Co.

270 Park Avenue

New York, NY 10017

212-270-6000

www.jpmorgan.com

 

2003 total revenues: $33.3 billion

2003 net income: $6.7 billion

2003 investment banking operating fees: $2.8 billion

2003 debt underwriting fees: $1.5 billion

 

2003 total capital: $59.8 billion

 

2003 total employees; 93,453

 

Chairman and Chief Executive Officer: William B. Harrison, Jr.  

 

J. P. Morgan & Chase Co. is a financial holding company and was one of the largest banking institutions in the United States as of December 31, 2003.

 

History

The Manhattan Company, created in 1799 to bring water to New York City, also provided banking services. It later became the Bank of Manhattan, which merged with Chase National in 1955 to become Chase Manhattan. Chase National was formed in 1877 and named after Salmon Chase, Abraham Lincoln’s Secretary of the Treasury. It merged with Rockefeller’s Equitable Trust in 1930 and became the world’s largest bank at the time.

 

The company suffered significant setbacks in the 1970s and was also hit hard by the foreign loan crisis and the real estate market crash in the late 1980s and early 1990s. In 1995, it merged with Chemical Bank, which was the surviving entity, but kept the more prestigious Chase name. Financial problems, however, continued and resulted in significant layoffs. The company also suffered significant losses from its involvement with Long Term Capital Management hedge fund.

 

In 2001 it completed its $30 billion acquisition of J.P. Morgan to become J.P. Morgan Chase & Co. and laid off 10 percent of its workforce. The company had more than $1 billion in investments related to Enron, but recovered more than $600 million in 2003 from Enron’s insurers in a court battle. Nevertheless, J.P Morgan Chase still paid some $135 million to settle actions related to questionable dealings with Enron.

 

Business Segments

 

The company's five business segments are:

Investment Banking

Investment Management & Private Banking

Treasury & Securities Services

JPMorgan Partners

Chase Financial Services

Investment Banking includes:

Advisory (services)

Debt and Equity Underwriting

Market Making, Trading and Investing in Fixed Income, Treasury Securities and Equities

Corporate Lending

Income/Revenues from Business Segments

 

Net income in 2003 was $6.7 billion, compared with net income of $1.6 billion in 2002. All five of the company's business segments reported higher revenues in 2003 compared to 2002. Low interest rates resulted in strong fixed income markets and yielded record earnings in Investment Banking.

 

Total revenues for 2003 were $33.3 billion, an increase of 12% compared to 2002. Revenues from Investment Banking increased by approximately $1.9 billion over the same period.

 

The company's Investment Banking business reported record operating earnings of $3.7 billion, an increase of 183% compared with 2002.

 

Debt underwriting fees increased 2 percent in 2003 to $1.5 billion, reflecting the growth in high yield underwriting and structured finance fees and a partial offset of lower loan syndication fees. The overall increase in Investment Banking fees was due to increased equity underwriting revenue, up 48%, brought about by increases in market share and underwriting volumes.