Consumer and Community Banking segment is the largest
J.P. Morgan’s (JPM) operations are organized into four operating segments:
- Consumer and Community Banking, or CCB
- Corporate and Investment Bank, or CIB
- Commercial Banking, or CB
- Asset Management, or AM
CCB is the biggest segment, contributing 46% to the company’s total revenues. This is followed by CIB, which contributes 34% to total revenues.
The four operating segments
AM and CB contribute 12% and 7%, respectively, to the company’s revenues. These are the services each segment provides:
- Consumer and Community Banking – consumer and business banking services, including wealth management, mortgage banking, and card services. Based on loans outstanding, J.P. Morgan is the number one credit-card issuer in the US. It also captures about half of US e-commerce volume
- Corporate and Investment Bank – investment banking, treasury, and lending services. It also offers fixed income and equity sales and trading, and other markets and investor services. J.P. Morgan ranks number one in investment banking based on global fees
- Commercial Banking – offers middle market and corporate banking, commercial lending, and real-estate banking
- Asset Management – offers private banking and investment management services
As noted earlier, CCB is J.P. Morgan’s biggest segment. The bank is similar to its peers Bank of America (BAC), Wells Fargo (WFC), and Citigroup (C) in this regard. Core banking activities contribute the biggest chunk of revenues at all four banks.
Traditional banking activities are the biggest revenue source for most of the other banks in the Financial Select Sector SPDR ETF (XLF) as well. J.P. Morgan forms ~7.3% of the Financial Select Sector SPDR ETF’s (XLF) portfolio.