JP Morgan Chase
In Class Activity 5 Requirements (JP Morgan Chase)
For your fifth in class activity report you will need to review your financial institution’s (JP Morgan Chase)Bank Holding Company Performance Report (BHCPR) and respond to the questions listed below. To access the BHCPR use the following steps:
1) Click on this link: https://www.ffiec.gov/npw/Institution/TopHoldings
2) Click on the name of your financial institution ( JP Morgan Chase)
3) Click on Bank Holding Company Performance Report (BHCPR). Then select the
9/30/20 report.
Here is what you need to do for this activity:
1) Income from Loan Securitization and Sales: review the non-interest income and expenses page for your financial institution and locate a) net servicing fees as a percent of Adjusted Operating Income; b) Net securitization income as a percent of Adjusted Operating Income; and c) Net gain (loss) – sales of loans, OREO, and other assets as a percent of Adjusted Operating Income. Discuss the trend in these ratios for your financial institution and compare them to the peer group during this time period. Discuss what is revealed by this comparison across time.
2) Operating income and risk exposure: briefly discuss your bank’s involvement in loan securitization and sales relative to other large institutions (its peer group). How has income from these activities contributed to total operating income? What inferences can you make concerning the potential effects on risk exposure?
3) Securities: review the pages related to securities for your financial institution. Describe the types of securities in your bank’s portfolio. How has the relative size of your bank’s securities portfolio-to-total assets ratio changed across periods? Does your BHC have more or less liquidity than the group of comparable institutions? What factors might have played a role in the selection of these securities in your bank’s portfolio? Chapter 10 discusses some possible factors (e.g., expected rate of return, tax exposure, interest rate risk) that affect the choice of investment securities.
4) Maturity structure: review your bank’s report and find the section that details Debt Securities. Write one paragraph about your bank’s maturity strategy, how it has changed in recent times and how it compares to the peer group.
