JPMorgan Chase

JP Morgan Chase is a financial holding organization which offers both financial and banking services. Moreover, JPMorgan provides a variety of investment banking services in the capital markets. These include the provision of corporate advice, capital raising in equity and debt, risk management, market making, derivative instruments, prime brokerage, and research. JPMorgan operates in consumer banking, corporate and investment bank, commercial banking and asset and wealth management segments. For instance, the commercial banking segment delivers services to the United States as well as its global consumers including companies, municipalities, non-profit entities, and financial institutions. This segment also offers to finance the investors in real estate. Also, this segment provide treasury services, asset management, and investment banking. The wealth management segment provides assets as well as wealth management services to the clients. Moreover, it provides investment management in key assets services such as equities, money market funds, and fixed income.

Assets

In 2017, the total assets of JPMorgan Chase were $ 2.534 trillion. However, there was a decrease in the trading assets by about $ 2.5 billion. On the other hand, debt and equity of the JPMorgan were driven by the decline of about $ 2.1 billion of the trading loans which arose due to the settlement of $ 100 billion decrease in other assets.

In the asset and wealth management segment, the client assets increased by 9% to $ 2.8 trillion (Cheng n.p). As a result, JPMorgan reported an inflow of $ 16 billion in long-term products. The bank also reported outflows of about $ 21 billion particularly from the liquidity products (Cheng n.p).

Liabilities

The total liabilities of JPMorgan in 2017 was $ 2.277. However, there has been a net loss on the liabilities by $ 1.3 billion. This was largely driven by the market movements in the long-term debt.

Stock Price history

Year

Stock price

2013

$ 58.48

2014

$ 62.58

2015

$ 66.03

2016

$ 86.29

2017

$ 106.94

2018

$ 113.86

Source: JPMorgan Chase & Co.

The stock price of JPMorgan has been increasing over the past six years. It implies that the shares of the company have been outperforming the market by a big margin. Thus, shares of the bank are poised for more gains.

For instance, May 11, 2018, JP opened its stocks at $ 114.49. This traded as high as $ 114.73 and as low as $ 113.67. Lastly, it closed at $ 113.86 with a total volume of 9.82 million shares (Historicalstockprice.com n.p).

Foreign and domestic tax paid

The total foreign and domestic taxes paid by JPMorgan in 2017 was $11.459. In 2018, the bank forecasts on the effective tax rate of 20% excluding both corporate and investment banking.

Profits

The net income of JPMorgan in 2017 was $ 24,441 million. Additionally, the bank gained from the strengthening economy and higher interest rates which lifted the lending revenue above the cost of money. During the first quarter of 2018, the market businesses had a robust profit and this was driven by the surging volatility in the foreign markets.

From 2017 to the Q1 of 2018, the overall profit of JPMorgan increased by 35% as revenues increased by 10% (Sweta and Henry n.p). However, there have been worries in its foreign markets due to inflation, increasing bond yields and intensified trade tensions between the U.S and China (Sweta and Henry n.p). During the same period, the net interest expense increased by 9% to $ 13.5 billion. Consequently, the net income of JPMorgan rose by 35% to $ 8.71 billion in Q1 of 2018.

Works Cited

Cheng, Evelyn. “JP Morgan First-Quarter Profit Easily Tops Expectations.” CNBC. N.p., 2018. Web. 13 May 2018. .

”Investor Relations | JPMorgan Chase & Co.” JPMorgan Chase & Co. N.p., 2018. Web. 13 May 2018. .

”JPM Historical Stock Prices.” Historicalstockprice.com. N.P., 2018. Web. 13 May 2018. .

Sweta, Singh, and David Henry. ”JPMorgan Profit Just Below Estimates on Weak Investment Banking.” U.S. N.p., 2018. Web. 13 May 2018. .