Selected income statement data
Year ended December 31,
(in millions, except ratios) 2013 2012 2011 Revenue
Card income $ 4,289 $ 4,092 $ 4,127
All other income 1,041 1,009 765
Noninterest revenue 5,330 5,101 4,892
Net interest income 13,360 13,669 14,249
Total net revenue 18,690 18,770 19,141
Provision for credit losses 2,669 3,953 3,621
Noninterest expense 8,078 8,216 8,045
Income before income tax
expense 7,943 6,601 7,475
Net income $ 4,786 $ 4,007 $ 4,544
ROE 31% 24% 28%
Overhead ratio 43 44 42
Equity (period-end and
average) $ 15,500 $ 16,500 $ 16,000
2013 compared with 2012
Card, Merchant Services & Auto net income was $4.8 billion, an increase of $779 million, or 19%, compared with the prior year, driven by lower provision for credit losses.
Net revenue was $18.7 billion, flat compared with the prior year. Net interest income was $13.4 billion, down $309 million, or 2%, from the prior year. The decrease was primarily driven by spread compression in Credit Card and Auto and lower average credit card loan balances, largely offset by the impact of lower revenue reversals associated with lower net charge-offs in Credit Card. Noninterest revenue was $5.3 billion, an increase of $229 million, or 4%, compared with the prior year primarily driven by higher net interchange income, auto lease income and merchant servicing revenue, largely offset by lower revenue from an exited non-core product and a gain on an
investment security recognized in the prior year.
The provision for credit losses was $2.7 billion, compared with $4.0 billion in the prior year. The current-year provision reflected lower net charge-offs and a $1.7 billion reduction in the allowance for loan losses due to lower estimated losses reflecting improved delinquency trends and restructured loan performance. The prior-year
provision included a $1.6 billion reduction in the allowance for loan losses. The Credit Card net charge-off rate was 3.14%, down from 3.95% in the prior year; and the 30+
day delinquency rate was 1.67%, down from 2.10% in the prior year. The Auto net charge-off rate was 0.31%, down from 0.39% in the prior year.
Management’s discussion and analysis
96 JPMorgan Chase & Co./2013 Annual Report
Noninterest expense was $8.1 billion, a decrease of
$138 million, or 2%, from the prior year. This decrease is due to one-time expense items recognized in the prior year related to the exit of a non-core product and the write-off of intangible assets associated with a non-strategic
relationship. The reduction in expenses was partially offset by increased auto lease depreciation and payments to customers required by a regulatory Consent Order during 2013.
2012 compared with 2011
Card, Merchant Services & Auto net income was $4.0 billion, a decrease of $537 million, or 12%, compared with the prior year. The decrease was driven by lower net revenue and higher provision for credit losses.
Net revenue was $18.8 billion, a decrease of $371 million, or 2%, from the prior year. Net interest income was
$13.7 billion, down $580 million, or 4%, from the prior year. The decrease was driven by narrower loan spreads and lower average loan balances, partially offset by lower revenue reversals associated with lower net charge-offs.
Noninterest revenue was $5.1 billion, an increase of
$209 million, or 4%, from the prior year. The increase was driven by higher net interchange income, including lower partner revenue-sharing due to the impact of the Kohl’s portfolio sale on April 1, 2011, and higher merchant servicing revenue, partially offset by higher amortization of loan origination costs.
The provision for credit losses was $4.0 billion, compared with $3.6 billion in the prior year. The current-year provision reflected lower net charge-offs and a $1.6 billion reduction in the allowance for loan losses due to lower estimated losses. The prior-year provision included a $3.9 billion reduction in the allowance for loan losses. The Credit Card net charge-off rate was 3.95%, down from 5.44% in the prior year; and the 30+ day delinquency rate was 2.10%, down from 2.81% in the prior year. The net charge-off rate would have been 3.88% absent a policy change on restructured loans that do not comply with their modified payment terms. The Auto net charge-off rate was 0.39%, up from 0.32% in the prior year, including $53 million of charge-offs related to regulatory guidance. Excluding these charge-offs, the net charge-off rate would have been 0.28%.
Noninterest expense was $8.2 billion, an increase of
$171 million, or 2%, from the prior year, driven by expenses related to a non-core product that is being exited and the write-off of intangible assets associated with a non-strategic relationship, partially offset by lower marketing expense.
Selected metrics
As of or for the year ended December 31,
(in millions, except ratios and
where otherwise noted) 2013 2012 2011
Selected balance sheet data (period-end)
Loans:
Credit Card $127,791 $127,993 $132,277
Auto 52,757 49,913 47,426
Student 10,541 11,558 13,425
Total loans $191,089 $189,464 $193,128
Selected balance sheet data (average)
Total assets $198,265 $197,661 $201,162
Loans:
Credit Card 123,613 125,464 128,167
Auto 50,748 48,413 47,034
Student 11,049 12,507 13,986
Total loans $185,410 $186,384 $189,187
Business metrics Credit Card, excluding
Commercial Card
Sales volume (in billions) $ 419.5 $ 381.1 $ 343.7
New accounts opened 7.3 6.7 8.8
Open accounts 65.3 64.5 65.2
Accounts with sales activity 32.3 30.6 30.7
% of accounts acquired
online 55% 51% 32%
Merchant Services (Chase Paymentech Solutions) Merchant processing volume
(in billions) $ 750.1 $ 655.2 $ 553.7
Total transactions
(in billions) 35.6 29.5 24.4
Auto & Student Origination volume (in billions)
Auto $ 26.1 $ 23.4 $ 21.0
Student 0.1 0.2 0.3
JPMorgan Chase & Co./2013 Annual Report 97 The following are brief descriptions of selected business
metrics within Card, Merchant Services & Auto.
Card Services includes the Credit Card and Merchant Services businesses.
Merchant Services is a business that processes transactions for merchants.
Total transactions – Number of transactions and authorizations processed for merchants.
Commercial Card provides a wide range of payment services to corporate and public sector clients worldwide through the commercial card products. Services include procurement, corporate travel and entertainment, expense management services, and business-to-business payment solutions.
Sales volume - Dollar amount of cardmember purchases, net of returns.
Open accounts – Cardmember accounts with charging privileges.
Auto origination volume - Dollar amount of auto loans and leases originated.
Selected metrics
As of or for the year ended December 31,
(in millions, except ratios) 2013 2012 2011 Credit data and quality
statistics Net charge-offs:
Credit Card $ 3,879 $ 4,944 $ 6,925
Auto(a) 158 188 152
Student 333 377 434
Total net charge-offs $ 4,370 $ 5,509 $ 7,511 Net charge-off rate:
Credit Card(b) 3.14% 3.95% 5.44%
Auto(a) 0.31 0.39 0.32
Student 3.01 3.01 3.10
Total net charge-off rate 2.36 2.96 3.99 Delinquency rates
30+ day delinquency rate:
Credit Card(c) 1.67 2.10 2.81
Auto 1.15 1.25 1.13
Student(d) 2.56 2.13 1.78
Total 30+ day
delinquency rate 1.58 1.87 2.32
90+ day delinquency rate –
Credit Card(c) 0.80 1.02 1.44
Nonperforming assets(e) $ 280 $ 265 $ 228
Allowance for loan losses:
Credit Card $ 3,795 $ 5,501 $ 6,999
Auto & Student 953 954 1,010
Total allowance for loan
losses $ 4,748 $ 6,455 $ 8,009
Allowance for loan losses to period-end loans:
Credit Card(c) 2.98% 4.30% 5.30%
Auto & Student 1.51 1.55 1.66
Total allowance for loan losses to period-end
loans 2.49 3.41 4.15
(a) Net charge-offs and net charge-off rates for the year ended December 31, 2012, included $53 million of charge-offs of Chapter 7 loans. Excluding these incremental charge-offs, net charge-offs for the year ended December 31, 2012 would have been $135 million, and the net charge-off rate would have been 0.28%. For further information, see Consumer Credit Portfolio on pages 120–129 of this Annual Report.
(b) Average credit card loans included loans held-for-sale of $95 million, $433 million, and $833 million for the years ended December 31, 2013, 2012 and 2011, respectively. These amounts are excluded when calculating the net charge-off rate.
(c) Period-end credit card loans included loans held-for-sale of $326 million and $102 million at December 31, 2013 and 2011, respectively. There were no loans held-for-sale at December 31, 2012. These amounts are excluded when calculating delinquency rates and the allowance for loan losses to period-end loans.
(d) Excluded student loans insured by U.S. government agencies under the FFELP of $737 million, $894 million and $989 million at December 31, 2013, 2012 and 2011, respectively, that are 30 or more days past due.
These amounts are excluded as reimbursement of insured amounts is proceeding normally.
(e) Nonperforming assets excluded student loans insured by U.S. government agencies under the FFELP of $428 million, $525 million and $551 million at December 31, 2013, 2012 and 2011, respectively, that are 90 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally.
Card Services supplemental information
Year ended December 31,
(in millions, except ratios) 2013 2012 2011 Revenue
Noninterest revenue $ 3,977 $ 3,887 $ 3,740
Net interest income 11,466 11,611 12,084
Total net revenue 15,443 15,498 15,824
Provision for credit losses 2,179 3,444 2,925
Noninterest expense 6,245 6,566 6,544
Income before income tax
expense 7,019 5,488 6,355
Net income $ 4,235 $ 3,344 $ 3,876
Percentage of average loans:
Noninterest revenue 3.22% 3.10% 2.92%
Net interest income 9.28 9.25 9.43
Total net revenue 12.49 12.35 12.35
Management’s discussion and analysis
98 JPMorgan Chase & Co./2013 Annual Report
CORPORATE & INVESTMENT BANK
The Corporate & Investment Bank (“CIB”) offers a broad suite of investment banking, market-making, prime brokerage, and treasury and securities products and services to a global client base of corporations, investors, financial institutions, government and municipal entities. Within Banking, the CIB offers a full range of investment banking products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, as well as loan origination and syndication. Also included in Banking is Treasury Services, which includes transaction services,
comprised primarily of cash management and liquidity solutions, and trade finance products. The Markets &
Investor Services segment of the CIB is a global market-maker in cash securities and derivative instruments, and also offers sophisticated risk management solutions, prime brokerage, and research. Markets &
Investor Services also includes the Securities Services business, a leading global custodian which holds, values, clears and services securities, cash and alternative investments for investors and broker-dealers, and manages depositary receipt programs globally.
Selected income statement data Year ended December 31,
(in millions) 2013 2012 2011
Revenue
Investment banking fees $ 6,331 $ 5,769 $ 5,859
Principal transactions(a) 9,289 9,510 8,347
Lending- and deposit-related fees 1,884 1,948 2,098 Asset management,
administration and commissions 4,713 4,693 4,955
All other income 1,593 1,184 1,264
Noninterest revenue 23,810 23,104 22,523
Net interest income 10,415 11,222 11,461
Total net revenue(b) 34,225 34,326 33,984
Provision for credit losses (232) (479) (285)
Noninterest expense
Compensation expense 10,835 11,313 11,654
Noncompensation expense 10,909 10,537 10,325
Total noninterest expense 21,744 21,850 21,979 Income before income tax
expense 12,713 12,955 12,290
Income tax expense 4,167 4,549 4,297
Net income $ 8,546 $ 8,406 $ 7,993
(a) Included a $(1.5) billion loss in the fourth quarter of 2013 as a result of implementing a FVA framework for OTC derivatives and structured notes.
Also included DVA on structured notes and derivative liabilities. DVA gains/
(losses) were $(452) million, $(930) million and $1.4 billion for the years ended December 31, 2013, 2012 and 2011, respectively.
(b) Included tax-equivalent adjustments, predominantly due to income tax credits related to affordable housing and alternative energy investments, as well as tax-exempt income from municipal bond investments of $2.3 billion,
$2.0 billion and $1.9 billion for the years ended December 31, 2013, 2012 and 2011, respectively.
Selected income statement data
Year ended December 31,
(in millions, except ratios) 2013 2012 2011 Financial ratios
Return on common equity(a) 15% 18% 17%
Overhead ratio(B) 64 64 65
Compensation expense as percentage of total net
revenue(c) 32 33 34
Revenue by business
Advisory $ 1,315 $ 1,491 $ 1,792
Equity underwriting 1,499 1,026 1,181
Debt underwriting 3,517 3,252 2,886
Total investment banking fees 6,331 5,769 5,859
Treasury Services 4,135 4,249 3,841
Lending 1,595 1,331 1,054
Total Banking 12,061 11,349 10,754
Fixed Income Markets(d) 15,468 15,412 14,784
Equity Markets 4,758 4,406 4,476
Securities Services 4,082 4,000 3,861
Credit Adjustments & Other(e) (2,144) (841) 109 Total Markets & Investor
Services 22,164 22,977 23,230
Total net revenue $ 34,225 $ 34,326 $ 33,984 (a) Return on equity excluding FVA (effective fourth quarter 2013) and DVA, a
non-GAAP financial measure, was 17%, 19% and 15% for the years ended December 31, 2013, 2012 and 2011, respectively.
(b) Overhead ratio excluding FVA (effective fourth quarter 2013) and DVA, a non-GAAP financial measure, was 60%, 62% and 68% for the years ended December 31, 2013, 2012 and 2011, respectively.
(c) Compensation expense as a percentage of total net revenue excluding FVA (effective fourth quarter 2013) and DVA, a non-GAAP financial measure, was 30%, 32% and 36% for the years ended December 31, 2013, 2012 and 2011, respectively.
(d) Includes results of the synthetic credit portfolio that was transferred from the CIO effective July 2, 2012.
(e) Primarily credit portfolio credit valuation adjustments (“CVA”) net of associated hedging activities; DVA gains/(losses) on structured notes and derivative liabilities of $(452) million, $(930) million and $1.4 billion for the years ended December 31, 2013, 2012 and 2011, respectively; a
$(1.5) billion loss in the fourth quarter of 2013 as a result of implementing an FVA framework for OTC derivatives and structured notes, and
nonperforming derivative receivable results.
JPMorgan Chase & Co./2013 Annual Report 99
CIB provides several non-GAAP financial measures which exclude the impact of FVA (effective fourth quarter 2013) and DVA on: net revenue, net income, compensation ratio, overhead ratio, and return on equity. The ratio for the allowance for loan losses to end-of-period loans is calculated excluding the impact of consolidated Firm-administered multi-seller conduits and trade finance, to provide a more meaningful assessment of CIB’s allowance coverage ratio.
These measures are used by management to assess the underlying performance of the business and for comparability with peers.
2013 compared with 2012
Net income was $8.6 billion, up 2% compared with the prior year.
Net revenue was $34.2 billion compared with $34.3 billion in the prior year. Net revenue in the current year’s fourth quarter included a $1.5 billion loss as a result of
implementing a funding valuation adjustment (“FVA”) framework for over-the-counter (“OTC”) derivatives and structured notes. The FVA framework incorporates the impact of funding into the Firm’s valuation estimates for OTC derivatives and structured notes and reflects an industry migration towards incorporating the market cost of unsecured funding in the valuation of such instruments. The loss recorded in the fourth quarter of 2013 is a one-time adjustment arising on implementation of the new FVA framework. In future periods the Firm will incorporate FVA in its estimates of fair value for OTC derivatives and structured notes from the date of initial recognition.
Net revenue also included a $452 million loss from debit valuation adjustments (“DVA”) on structured notes and derivative liabilities, compared with a loss of $930 million in the prior year. Excluding the impact of FVA (effective fourth quarter of 2013) and DVA, net revenue was $36.1 billion and net income was $9.7 billion, compared with
$35.3 billion and $9.0 billion in the prior year, respectively.
Banking revenues were $12.1 billion, compared with $11.3 billion in the prior year. Investment banking fees were $6.3 billion, up 10% from the prior year, driven by higher equity underwriting fees of $1.5 billion (up 46%) and record debt underwriting fees of $3.5 billion (up 8%), partially offset by lower advisory fees of $1.3 billion (down 12%). Equity underwriting results were driven by higher industry-wide issuance and an increase in the Firm’s wallet share compared with the prior year, according to Dealogic.
Industry-wide loan syndication volumes and wallet increased as the low rate environment continued to fuel refinancing activity. The Firm also ranked #1 in wallet and volumes shares across high grade, high yield and loan products. Advisory fees were lower compared with the prior year as industry-wide completed M&A wallet declined 13%.
The Firm maintained its #2 ranking and improved share for both announced and completed volumes during the period.
Treasury Services revenue was $4.1 billion, down 3%
compared with the prior year, primarily reflecting lower trade finance spreads, partially offset by higher net interest income on higher deposit balances. Lending revenue was
$1.6 billion, up from $1.3 billion, in the prior year reflecting net interest income on retained loans, fees on lending related commitments, as well as gains on securities received from restructured loans.
Markets and Investor Services revenue was $22.2 billion compared to $23.0 billion in the prior year. Combined Fixed Income and Equity Markets revenue was $20.2 billion, up from $19.8 billion the prior year. Fixed Income Markets revenue of $15.5 billion was slightly higher reflecting consistently strong client revenue and lower losses from the synthetic credit portfolio, which was partially offset by lower rates-related revenue given an uncertain rate outlook and low spread environment. Equities Markets revenue of
$4.8 billion was up 8% compared with the prior year driven by higher revenue in derivatives and cash equities products as well as Prime Services primarily on higher balances.
Securities Services revenue was $4.1 billion compared with
$4.0 billion in the prior year on higher custody and fund services revenue primarily driven by record assets under custody of $20.5 trillion. Credit Adjustments & Other was a loss of $2.1 billion predominantly driven by FVA (effective the fourth quarter of 2013) and DVA.
The provision for credit losses was a benefit of $232 million, compared with a benefit of $479 million in the prior year. The current year benefit reflected lower
recoveries as compared to 2012 as the prior year benefited from the restructuring of certain nonperforming loans. Net recoveries were $78 million, compared with $284 million in the prior year reflecting a continued favorable credit environment with stable credit quality trends.
Nonperforming loans were down 57% from the prior year.
Noninterest expense of $21.7 billion was slightly down compared with the prior year, driven by lower compensation expense, offset by higher non compensation expense related to higher litigation expense as compared to the prior year. The compensation ratio, excluding the impact of DVA and FVA which was effective for the fourth quarter of 2013, was 30% and 32% for 2013 and 2012, respectively.
Return on equity was 15% on $56.5 billion of average allocated capital and 17% excluding FVA (effective fourth quarter of 2013) and DVA.
2012 compared with 2011
Net income was $8.4 billion, up 5% compared with the prior year. These results primarily reflected slightly higher net revenue compared with 2011, lower noninterest expense and a larger benefit from the provision for credit losses. Net revenue was $34.3 billion, compared with $34.0 billion in the prior year. Net revenue included a $930 million loss from DVA on structured notes and derivative liabilities resulting from the tightening of the Firm’s credit spreads. Excluding the impact of DVA, net revenue was
$35.3 billion and net income was $9.0 billion, compared with $32.5 billion and $7.1 billion in the prior year, respectively.
Banking revenues were $11.3 billion, compared with $10.8 billion in the prior year. Investment banking fees were
Management’s discussion and analysis
100 JPMorgan Chase & Co./2013 Annual Report
$5.8 billion, down 2% from the prior year; these consisted of record debt underwriting fees of $3.3 billion (up 13%), advisory fees of $1.5 billion (down 17%) and equity underwriting fees of $1.0 billion (down 13%). Industry-wide debt capital markets volumes were at their second highest annual level since 2006, as the low rate environment continued to fuel issuance and refinancing activity. In contrast there was lower industry-wide announced mergers and acquisitions activity, while industry-wide equity underwriting volumes remained steady. Treasury Services revenue was a record $4.2 billion compared with $3.8 billion in the prior year driven by continued deposit balance growth and higher average trade loans outstanding during the year. Lending revenue was
$1.3 billion, compared with $1.1 billion in the prior year due to higher net interest income on increased average retained loans as well as higher fees on lending-related commitments. This was partially offset by higher fair value losses on credit risk-related hedges of the retained loan portfolio.
Markets and Investor Services revenue was $23.0 billion compared to $23.2 billion in the prior year. Combined Fixed Income and Equity Markets revenue was $19.8 billion, up from $19.3 billion the prior year as client revenue remained strong across most products, with particular strength in rates-related products, which improved from the prior year.
2012 generally saw credit spread tightening and lower volatility in both the credit and equity markets compared with the prior year, during which macroeconomic concerns, including those in the Eurozone, caused credit spread widening and generally more volatile market conditions, particularly in the second half of the year. Securities Services revenue was $4.0 billion compared with $3.9 billion the prior year primarily driven by higher deposit balances. Assets under custody grew to a record $18.8 trillion by the end of 2012, driven by both market appreciation as well as net inflows. Credit Adjustments &
Other was a loss of $841 million, driven predominantly by DVA, which was a loss of $930 million due to the tightening of the Firm’s credit spreads.
The provision for credit losses was a benefit of $479 million, compared with a benefit of $285 million in the prior year, as credit trends remained stable. The 2012 benefit reflected recoveries and a net reduction in the allowance for credit losses, both related to the restructuring of certain nonperforming loans, credit trends and other portfolio activities. Net recoveries were $284 million, compared with net charge-offs of $161 million in the prior year. Nonperforming loans were down 35% from the prior year.
Noninterest expense was $21.9 billion, down 1%, driven primarily by lower compensation expense.
Return on equity was 18% on $47.5 billion of average allocated capital.
Selected metrics
As of or for the year ended December 31,
(in millions, except
headcount) 2013 2012 2011
Selected balance sheet data (period-end)
Assets $ 843,577 $ 876,107 $ 845,095
Loans:
Loans retained(a) 95,627 109,501 111,099
Loans held-for-sale and
loans at fair value 11,913 5,749 3,016
Total loans 107,540 115,250 114,115
Equity 56,500 47,500 47,000
Selected balance sheet data (average)
Assets $ 859,071 $ 854,670 $ 868,930
Trading assets-debt and
equity instruments 321,585 312,944 348,234
Trading assets-derivative
receivables 70,353 74,874 73,200
Loans:
Loans retained(a) 104,864 110,100 91,173
Loans held-for-sale and
loans at fair value 5,158 3,502 3,221
Total loans 110,022 113,602 94,394
Equity 56,500 47,500 47,000
Headcount 52,250 52,022 53,557
(a) Loans retained includes credit portfolio loans, trade finance loans, other held-for-investment loans and overdrafts.
JPMorgan Chase & Co./2013 Annual Report 101 Selected metrics
As of or for the year ended December 31,
(in millions, except ratios
and where otherwise noted) 2013 2012 2011
Credit data and quality statistics
Net charge-offs/
(recoveries) $ (78) $ (284) $ 161
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans
retained(a)(b) 163 535 1,039
Nonaccrual loans held-for-sale and loans at
fair value(c) 180 254 166
Total nonaccrual loans 343 789 1,205
Derivative receivables 415 239 293
Assets acquired in loan
satisfactions 80 64 79
Total nonperforming
assets 838 1,092 1,577
Allowance for credit losses:
Allowance for loan
losses 1,096 1,300 1,501
Allowance for
lending-related commitments 525 473 467
Total allowance for credit
losses 1,621 1,773 1,968
Net charge-off/(recovery)
rate(a) (0.07) (0.26) 0.18%
Allowance for loan losses to period-end loans
retained(a) 1.15 1.19 1.35
Allowance for loan losses to period-end loans retained, excluding trade finance
and conduits 2.02 2.52 3.06
Allowance for loan losses to nonaccrual loans
retained(a)(b) 672 243 144
Nonaccrual loans to total
period-end loans(c) 0.32 0.68 1.06
Business metrics Assets under custody
(“AUC”) by asset class (period-end) in billions:
Fixed Income $ 11,903 $ 11,745 $ 10,926
Equity 6,913 5,637 4,878
Other(d) 1,669 1,453 1,066
Total AUC $ 20,485 $ 18,835 $ 16,870
Client deposits and other third party liabilities
(average)(e) $ 383,667 $ 355,766 $ 318,802 Trade finance loans
(period-end) 30,752 35,783 36,696
(a) Loans retained includes credit portfolio loans, trade finance loans, other held-for-investment loans and overdrafts.
(b) Allowance for loan losses of $51 million, $153 million and $263 million were held against these nonaccrual loans at December 31, 2013, 2012 and 2011, respectively.
(c) In 2013 certain loans that resulted from restructurings that were previously classified as performing were reclassified as nonperforming loans. Prior periods were revised to conform with the current presentation.
(d) Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts.
(e) Client deposits and other third party liabilities pertain to the Treasury Services and Securities Services businesses, and include deposits, as well as deposits that are swept to on-balance sheet liabilities (e.g., commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements) as part of their client cash management program.
Market shares and rankings(a)
2013 2012 2011
Year ended
December 31, Market
Share Rankings Market
Share Rankings Market Share Rankings Global
investment
banking fees(b) 8.6% #1 7.5% #1 8.1% #1
Debt, equity and equity-related
Global 7.3 1 7.2 1 6.7 1
U.S. 11.8 1 11.5 1 11.1 1
Syndicated loans
Global 10.0 1 9.5 1 10.8 1
U.S. 17.5 1 17.6 1 21.2 1
Long-term debt(c)
Global 7.2 1 7.1 1 6.7 1
U.S. 11.7 1 11.6 1 11.2 1
Equity and equity-related
Global(d) 8.2 2 7.8 4 6.8 3
U.S. 12.1 2 10.4 5 12.5 1
Announced M&A(e)
Global 23.0 2 19.9 2 18.3 2
U.S. 36.1 1 24.3 2 26.7 2
(a) Source: Dealogic. Global Investment Banking fees reflects the ranking of fees and market share. The remaining rankings reflects transaction volume and market share. Global announced M&A is based on transaction value at announcement; because of joint M&A assignments, M&A market share of all participants will add up to more than 100%. All other transaction volume-based rankings are based on proceeds, with full credit to each book manager/equal if joint.
(b) Global investment banking fees rankings exclude money market, short-term debt and shelf deals.
(c) Long-term debt rankings include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, asset-backed securities (“ABS”) and mortgage-backed securities; and exclude money market, short-term debt, and U.S. municipal securities.
(d) Global equity and equity-related ranking includes rights offerings and Chinese A-Shares.
(e) Announced M&A reflects the removal of any withdrawn transactions. U.S. announced M&A represents any U.S.
involvement ranking.