Leading loan growth
J.P. Morgan (JPM) loans expanded at a CAGR (compound annual growth rate) of 8% over the last five years. This growth is comparable to that at PNC Bank (PNC). Wells Fargo (WFC) recorded a CAGR of 6% during the same period. Healthy loan growth results in higher-interest income, even more so in a favorable economic environment.
Leading deposits growth
The graphs above compares J.P. Morgan’s loan and deposit growth with that of its key competitors. J.P. Morgan’s 10% CAGR in deposits over the last five years was also the highest of its competitors. Domestic retail deposits grew at a CAGR of 9%. US Bancorp (USB) and Wells Fargo (WFC) each recorded a CAGR of 8% in deposits over the same period.
J.P. Morgan’s strong deposits growth indicates that depositors trust the bank with their money. It shows the bank’s value as a consumer banking franchise. Deposit growth forms the basis for sound business growth and loan origination.
Leader in market revenue and investment banking
J.P. Morgan is the leader in generating market revenue and investment banking fees. Cumulatively, it generated more in the last five years than all of its competitors. The other major players in the market include Goldman Sachs (GS), Bank of America (BAC), Citigroup (C), and Morgan Stanley (MS).
In terms of investment banking fees, J.P. Morgan has 8% of the market. The graphs above compares the cumulative market revenues, investment banking fees, and net asset flows of J.P. Morgan and key competitors over the last five years.
The Financial Select Sector SPDR ETF (XLF) has ~7.3% of its portfolio invested in J.P. Morgan stock.
Leading long-term asset flows
Cumulative net long-term client asset flows were higher at J.P. Morgan than elsewhere in the segment over the last five years. Clearly, clients trust the bank with their money. The firm has assets under management of $1.7 trillion. The net flows were higher than those at BlackRock (BLK), including Barclays Global Investors merger-related outflows in 2010–11.