- JPMorgan Chase’s revenue for 2020 was a record-setting $122.9 billion.
- Insider Intelligence broke down Chase’s revenue by segment and other key findings from its 2020 Annual Report.
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JPMorgan Chase & Co is one of the world’s leading financial services firms—but how and where does it make its money? With businesses in investment banking, financial services for consumers and small businesses, commercial banking, transaction processing, and asset management, the bank has diversified revenue streams that helped it have a record-setting year in spite of the tumultuous circumstances.
In 2020 Chase extended credit and raised $2.3 trillion in capital for businesses, institutional clients and U.S. customers, while also funding over 280,000 Paycheck Protection Program (PPP) loans worth upwards of $32 billion—the most of any lender—to companies employing more than 3 million people.
Below we’ve broken out Chase’s revenue by year and segment.
JPMorgan Chase Annual Revenue (2020)
Despite the uncertainty of the pandemic and resulting recession, Chase’s total revenue for 2020 was a record-setting $122.9 billion—a 3.7% improvement from its 2019 results. Chairman and CEO Jamie Dimon attributed this growth to strong performance across the company’s businesses offset by additional reserves under new accounting rules.
JPMorgan Chase Revenue Segments
Chase’s revenue is made up of four key segments: Consumer & Community Banking, Corporate & Investment Banking, Commercial Banking, and Asset & Wealth Management.
Consumer & Community Banking – Net revenue of $51.3 billion
Chase’s Consumer & Community Banking revenue for 2020 was $51.3 billion—down 7% year-over-year (YoY), while heavy investments in future growth brought its overhead ratio to 55%. This business segment’s customer base remained relatively stable at over 63 million.
Chase holds numerous #1 rankings within the US consumer banking market: In 2020 it was first in US credit card sales volume, retail deposit share, as well as being the most visited banking portal, and tied for first-place primary bank.
With over 55 million active digital customers—including more than 40 million mobile customers—digital tools were a large part of Chase’s pandemic response, as well as its future growth strategy. In 2020, Chase accelerated the rollout of some digital tools, as well as added functionality to others, including inquiring about stimulus payments, changing travel plans booked with rewards, and disputing transactions via the Chase Digital Assistant. The bank also made it easier for customers to schedule in-person meetings or phone calls with local bankersor advisors.
Corporate & Investment Banking – Net revenue of $49.28 billion
Chase’s Corporate & Investment Bank (CIB) includes Banking and Markets & Securities Services, which offers a broad range of financial services across investment banking, prime brokerage, market-making, and treasury and securities products and services.
In 2020, CIB generated earnings of $17.1 billion on revenue of $49.3 billion, achieving a 20% return on equity. The Investment Banking business ended the year with its highest share of the global market since 2009 at 9.2%, and generated record fees of $9.5 billion, maintaining its #1 ranking according to Dealogic. Markets revenue also set a record, climbing 41% to $29.5 billion, with the Fixed Income Markets business generating $20.9 billion and Equity Markets producing $8.6 billion.
Commercial Banking – Net revenue of $9.3 billion
In 2020 Chase’s Commercial Banking business—which consists of lending, wholesale payments, and investment banking for three primary client segments: Middle Market Banking, Corporate Client Banking, and Commercial Real Estate Banking—delivered net income of $2.6 billion on $9.3 billion in revenue (relatively flat YoY), generating a return-on-equity of 11%.
Asset & Wealth Management – Net revenue of $14.24 billion
2020 was a record year for Chase’s Asset & Wealth Management business, as client assets grew to a record $3.7 trillion, and the bank received a record $276 billion in net client asset flows, across all regions, segments and products.
Net revenue for this segment was $14.2 billion in 2020, an increase of 5%. Net interest income rose 2% to $3.4 billion, driven by higher deposit and loan balances as well as loan margin expansion, offset by deposit margin compression.
JPMorgan Chase Growth & Investments
In addition to growing market share across its businesses, Chase spent much of 2020 continuing to make significant investments in its products and technology. In Dimon’s annual letter to shareholders, he emphasized the bank’s wealth of data, stating, “we need to adopt AI and cloud as fast as possible so we can make better use of it to better serve our customers.”
“Acquisitions are in our future,” the Chairman and CEO continued. “Fintech is an area where some of that cash could be put to work–this could include payments, asset management, data, and relevant products and services.”
Chase acquired UK digital wealth manager Nutmeg in June 2021 to gain access to the fintech’s range of portfolios. Additionally, Chase already said that it plans to launch a digital-only bank in the UK by the end of 2021. This dual approach is a troubling development for both UK neobanks and Goldman Sachs’ digital-only division, Marcus. With the addition of Nutmeg to its holdings, Chase is poised to offer checking, savings, and investing by the end of 2021—a breadth of services that goes beyond the basic depository products many neobanks begin their offerings with.
We can expect to see Chase become even more aggressive making these acquisitions and entering new markets—no matter how small they may seem—as Dimon said Chase’s highest and best use of capital at this point in time is to expand the business.