Question

You are a financial manager of a major U.S.-based financial institution of your choosing. Go to the company's Web site (e.g., JPMorgan Chase, Wells Fargo, U.S. Bancorp). Pull its 2 most recent annual reports. In the annual report, you will see the balance sheet. You have been asked to provide a report to the company, in which you will include the following:

• Discuss major balance sheet numbers (e.g., Total Assets, Total Liabilities, Total Equity) and how these changed over the past 2 years. Refer to your textbook as needed.
• Discuss the potential credit risk, interest rate risk, and operational risk as they pertain to the selected financial institution. Use supporting numbers from the balance sheets.

Answer 1

Report to JPMorgan Chase:-

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.6 trillion and operations worldwide. The firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands.

[Information about J.P. Morgan’s capabilities can be found at jpmorgan.com and about Chase’s capabilities at chase.com. Information about JPMorgan Chase & Co. is available at jpmorganchase.com.]

Financial analysis and comparison for the year 2018 and 2017 - {As of or for the year ended December 31, (in millions, except per share, ratio data and headcount)}

1. Annual Total Assets of JPMorgan Chase in 2018 has increased by $88932 from $2533600 in the year 2017 to $2622532 in the year 2018.
2. Annual Total Liabilities of JPMorgan Chase in 2018 has increased by $88110 from $2277907 in the year 2017 to $2366017 in the year 2018.
3. Annual Total Equity of JPMorgan Chase in 2018 has increased by $822 from $255693 in the year 2017 to $256515 in the year 2018.
4. Total Net Revenue in 2017 was $100705 which has increased in 2018 by $8324 i.e. to $109029
5. Net income has increased by $8033 i.e In 2017 net income was $24441 which has increased to $32474