JPMorgan has five main business segments
JPMorgan Chase & Co. (JPM) segregates its results in to five main business segments. The five main business segments are:
- Consumer & Community Banking
- Corporate & Investment Bank
- Commercial Banking
- Asset Management
- Corporate/Private Equity
A skill set is required for each business. The skill set is largely similar within a business segment, but not outside the business segment. Wells Fargo (WFC), Bank of America (BAC), Citibank (C), and other large banks in the Financial Select Sector SPDR (XLF) organize their business segments similarly.
JPMorgan’s largest business segment
The Consumer & Community Banking, or CCB, business segment provides services to retain customers and communities. It includes branch banking, cards, home, education, auto loans, and other similar products for retail clients. The business is carried out under the Chase brand name. By far, this is JPMorgan’s largest business segment. It accounts for nearly half of JPMorgan’s net revenue. Due to the business segment’s huge size, it’s divided into three sub-segments. We’ll discuss this in more detail throughout this series.
Segment reported mild results
Overall, the fourth quarter wasn’t good for the CCB segment. The poor results were largely due to a fall in net revenue along with an increase in provisions for credit losses. Considering the fall in revenue and an increase in expenses, it isn’t a good situation.
The CCB segment reported net revenue of $10.9 billion—a decrease of nearly 4% from the same quarter last year. Provisions for credit losses rose sharply from $72 million in 4Q13 to $950 million this year. This led to a net income of $2.2 billion. This was a sharp decline of 11%—compared to the same quarter last year.
In the next part of this series, we’ll look at the three main sub-segments in the CCB segment.