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  • Bloomsburg Investment Group Equity Analysis:

    J.P. Morgan Chase (JPM) Analyst:

    Caleb Putnam, Class of 2022 Kevin Benkovic, Class of 2020

    Jon Bibby, Class of 2023 Jacob Bodenschatz, Class 2023

    Aaron Best, Class of 2023

    Corporate Details:

    Name

    Ticker

    Domicile

    Sector

    Industry

    Exchange

    Last Close

    Price 52 Wk High

    Price 52 Wk Low

    Latest Dividend

    Dividend Yield % TTM

    Beta 5 Yr (Mo­End)

    Avg Daily Volume (3 Mo)

    Shares Outstanding (mil)

    Number of Analysts

    JPMorgan Chase & Co

    JPM

    United States

    Financial Services

    IG000DA340

    NEW YORK STOCK EXCHANGE, INC.

    127.80

    127.99

    91.11

    0.90

    2.58

    1.21

    11,520,754.95

    3,136.50

    7

    Corporate Summary: 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

    Bloomsburg Investment Group Opinion: We as the Financial Sector believe the JPMorgan Chase should be Partially liquidated

    from the portfolio for the following reasons. With slowing global economy and slowing U.S. economy with recession looming, the group believes it is time to capitalize on the earnings that JPM has accumulated in our portfolio before the markets have a volatile down turn. If JPMorgan has a volatile downturn, the weight and risk it carries in our portfolio can pull value of the portfolio down. Despite all the economic uncertainty, JPM has performed

    much better than its competitors and maintains good levels of profitability despite industry headwinds. The leadership of JPM gives the group confidence in the long-term future of

    the Bank as a whole. JPMorgan still remains the best bank for our portfolio

    Page 1 of 10US Dollar11/3/2019 JPMorgan Chase & Co Source: Morningstar Direct

  • JPMorgan Chase & Co JPM

    Corporate Governance: Board of Directors

    Linda B. Bammann (age: 63)

    James A. Bell (age: 71)

    Stephen B. Burke (age: 61)

    Todd A. Combs (age: 48)

    James S. Crown (age: 66)

    James Dimon (age: 63)

    Timothy P. Flynn (age: 63)

    Mellody Hobson (age: 50)

    Laban P. Jackson, Jr. (age: 76)

    Michael A. Neal (age: 66)

    Lee R. Raymond (age: 81)

    William C. Weldon (age: 70)

    Corporate Governance: Top Management

    James Dimon: Chairman and Chief Executive Officer- 63 years old

    Ashley Bacon: Chief Risk Officer- 49 years old

    Lori A. Beer: Chief Information Officer- 51 years old

    Mary Callahan Erdoes: Asset & Wealth Management CEO- 52 years old

    Stacey Friedman: General Counsel- 50 years old

    Marianne Lake: Consumer Lending CEO- 49 years old

    Robin Leopold: Head of Human Resources- 54 years old

    Douglas B. Petno: Commercial Banking CEO- 53 years old

    Page 2 of 10US Dollar11/3/2019 JPMorgan Chase & Co Source: Morningstar Direct

  • JPMorgan Chase & Co JPM

    Corporate Governance: Top Shareholders & Insider Transactions

    Top Institutional Shareholders Vanguard Group Inc 252,550,479 7.9% Black Rock Inc 216,451,270 6.7% State Street Corp 149,533,773 4.68% Capital Group Companies Inc 128,274,515 4.01% FMR LLC 61,707,459 1.93%

    Insider Transactions Gordon Smith -83,289 10/16/2019 Eduardo Pinto -53,000 10/17/2019 Mellody Hobson 16,000 10/23/2019 Lori Beer -13,341 7/17/2019 Mellody Hobson 18,200 08/08/2019

    Top Individual Shareholders 1 Jamie Dimon 7,867,414 2. James Crown 576,125 3) Pinto Daniel Eduardo 530,891 4) Gordon Smith 450,248 5) Mary Callahan Erdoes 448,459

    Page 3 of 10US Dollar11/3/2019 JPMorgan Chase & Co Source: Morningstar Direct

  • JPMorgan Chase & Co JPM

    Financial Summary, Year End 2016 (in millions)

    Market Capitaliza�on

    Total Revenue

    Gross Profit

    Opera�ng Income

    Net Income Cont Ops

    Net Income

    Current Assets

    Cash

    Total Assets

    Current Liabili�es

    Long­term Liabili�es

    Total Liabili�es

    Total Equity

    Opera�ng Cash Flow

    Inves�ng Cash Flow

    Financing Cash Flow

    Change In Cash

    EBITDA

    Enterprise Value

    Capital Expenditure

    P/E Ra�o Forward

    PEG Ra�o

    Dividend Yield % TTM

    400,844.70

    109,029.00

    35,900.00

    32,474.00

    32,474.00

    2,622,532.00

    256,515.00

    14,187.00

    ­197,993.00

    34,158.00

    ­149,648.00

    34,551.00

    11.99

    1.82

    2.58

    Financial Highlights

    Quarter 3 Financial Highlights 30.1 Billion in Revenue and 9.1 Billion on Net income

    with an EPS of $2.68

    Balance Sheet: Average loan growth flat YOY

    Average deposits up 5% YOY

    Tier 1 capital ra�o 14.1%

    Consumer and Community Banking Average Loans down 4% YOY

    Average deposits up 3% YOY

    Ac�ve mobile customers up 12% YOY

    Credit card sales up 12% YOY

    Merchant Processing Volume 12% YOY

    Corporate and Investment Banking Investment Banking up 8% YOY due to higher fees

    Fixed Income Market up 25% YOY

    Equity market Revenue down 5% YOY

    Commercial Banking Net interest income down 5% YOY while total revenue

    was down 3% YOY

    Asset And Wealth Management Revenue flat YOY

    Net income down 8% YOY

    Investment Growth Time Period: 11/1/2016 to 10/31/2019

    1/2017 4/2017 7/2017 10/2017 1/2018 4/2018 7/2018 10/2018 1/2019 4/2019 7/2019 10/2019 -10.0%

    0.0%

    10.0%

    20.0%

    30.0%

    40.0%

    50.0%

    60.0%

    70.0%

    80.0%

    90.0%

    100.0%

    JPMorgan Chase & Co 94.5% S&P 500 TR USD 51.7%

    Page 4 of 10US Dollar11/3/2019 JPMorgan Chase & Co Source: Morningstar Direct

  • JPMorgan Chase & Co JPM

    JPMorgan invests $25 million in fintech start-ups

    These start-ups are to aid low-income Americans become more financially healthy. The bank redesigned brick and mortar locations to have several meeting rooms that can be reserved for free by people and businesses in the community for financial assistance. This addition is to match the idea that new customers value the quality of environment and service. The industry has already seen other financial sector companies instill the same ideas, such as capital one cafes.

    JPM acquisition of Instamed

    JPM spent over $500 million to buy the medical payments technology firm InstaMed. This is the largest investment since buying Bear Stearns in 2008. This is their way of keeping up with the fast changing world of payments. This decision was made because of the size of the healthcare market. The US health spending for 2017 was at 3.5 trillion but that is expected to go up to $6 trillion by 2027. Instamed is now a subsidiary of JPM Chase

    JPM Removes Mobile Banking App "Finn"

    JPM is already the leading bank for millennials so they realized that they did not need an extra service to lure them in. Even though this product was pushed towards the digitally inclined, it still caused a lot of confusion for the clients. JPM elected to move services offered from “Finn” back to the primary Chase Mobile Banking App.

    Insiders Quietly Buying JPMorgan Chase & Co.

    The executives within JPM are putting their money where their mouth is. Filings with the SEC revealed that the director, Mellody Hobson, has bought 18,200 shares valued at $2.0 million. A

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