JPMorgan Chase & Co. Josiah Bardy
Financial Services provider
Major Competitors:
- Bank of America Corp. (BAC)
- Wells Fargo & Company (WFC)
- Citigroup Inc. (C)
Largest U.s. bank by assets
Sorry about the liquidity issues...
Comparing JPM to top 4 banks, 2014
Financial SWOT
Strengths
- Largest amount of assets (~$2.5 Trillion) of U.S. bank
- High earnings per share
Weaknesses
- Majority of assets (~30%) are loans
- Most leveraged of competitors
Opportunities
- 2nd most profitable bank (on average)
- Interest rate hikes may increase profitability
Threats
- Regulatory legislation
- Incredibly tight competition
Earnings Quality
- Interest income: from loans
- Credit card income: from consumers
- Mortgage income: dependent on market
Is JPM a worthy investment?
- To an extent
- As with all stock, no guaranteed return
- High EPS due to lack of equity in capital structure
- Large loans, large interest revenue; high risk, high return