Citi

How do I set up access to Citibank Online?

To set up online access, you have to create an online User ID and Password by providing:
Your ATM/Debit Card Number, which is the 16-digit number on the access card you received by mail after opening your account. This card is also known as the Citibank^® Banking Card. If you didn't receive one, call 1-800-374-9700.
Your PIN, or Personal ID Number, which is the 4-digit code you created when you opened your account. You enter it at ATMs to access your accounts; at retailers when you use your card to make purchases; and to set up online access to your accounts at Citibank Online.
If you forgot your PIN, you have three chances to enter it correctly. If the third attempt fails, for your protection, you'll be locked out and unable to access your accounts online. If this occurs, call 1-800-374-9700 (TTY: 1-800-788-0002) and we'll reset your PIN, which gives you three more tries. If that doesn't work, you need to visit a Citibank Financial Center to request a new PIN (call first to see what ID you'll need).
Your Account Number is the number of any Citi account linked to your ATM/Debit Card such as:

• Your Checking account (the number is along the bottom of your checks)
  
• Your Citi credit card account (the number is on the front of your card)
• The number of any other linked accounts you have, such as savings (they appear on your statement)
• Just look under My Order History, which is found in the My Account section on the top-left corner of every page of our web site. You will also receive confirmation e-mails for most Reward redemptions.  

• How do I find out how many ThankYou Points I already have?
• To view your points, go to the Rewards Summary on your Citibank^® Online ''My Citi'' page and select your enrolled account.* Then link through to www.thankyou.com where you can view your available points balance and choose your rewards—no additional sign on is required.
• Call 1-800-THANKYOU (1-800-842-6596)
• Call CitiPhone Banking^®—the number is on the back of your Citibank(R) Banking Card

Learn more about Citi^® ThankYou^® Rewards.
* You must be the authorized ThankYou Member (generally the Citi^® cardmember or primary signer on the enrolled Citibank^® checking account) to access the associated ThankYou Member Account. ThankYou account membership and redemption of ThankYou Points are subject to applicable terms and conditions.

What You Get

A network of Citibank and non-Citibank ATMs where you can use your Citibank® Banking Card to get cash and account information.
There's an amazing 30,000 fee-free ATMs¹ in the U.S., including:

• More than 3,200 ATMs in over 1,000 Citibank branches
• More than 6,000 Citibank- branded ATMs in participating 7-Eleven^®1 stores
• Thousands more  ATMs
• Talking ATMs  for visually impaired customers located at every Citibank branch that has an ATM

How It Works

• Actually, how an ATM works depends on whether you’re using a Citibank ATM  or a non-Citibank ATM .
Our ATM network also lets you:

• Deposit checks at Citibank branded ATMs in select 7-Eleven stores . No deposit slips or envelopes needed
• Get cash at any ATM displaying the CIRRUS^®, MAESTRO^® or MasterCard^® logos
• Citibank ATMs are in over 40 countries, so if you're traveling overseas, locate them before you go. 

• Citibank branches.

  When personal banking needs to be done in person. Sometimes only face-to-face will do. With over 1,000 Citibank branches in the U.S. and over 4,000 overseas, we make visiting us as convenient as possible.
  
•  

Santander

Botín anuncia um aumento do dividendo de 25%

Attributable profit excluding capital gains rose 23% to EUR 8.111 billion, with a 21% increase in earnings per share.

• Reflecting the strong results, the Board of Directors increases the dividend by 25% for the third consecutive year, to EUR 0.65 a share, for a payout of EUR 4,070 million, or 50% of ordinary profit.
• The increase in profit was driven by revenue growth of 21%, more than double the rate of growth in costs of 10%, which improved the efficiency ratio by more than four percentage points, to 44.2%.
• All business units contributed to the increase in revenues. Loans and deposits grew by 12%, excluding the exchange rate effect.
• In Continental Europe, attributable profit rose 27% to EUR 4,423 million, with a 14% increase in loans and an 8% increase in customer funds.
• In Latin America, attributable profit rose 27% in dollars, to US$3,648 million, with an increase of 20% in loans and 21% in customer funds, in local currencies. In euros, attributable profit rose 17% to EUR 2,666 million.
• Abbey’s attributable profit rose 20% to £822 million, with growth of 8% in loans and 5% in deposits in pounds. In euros, attributable profit rose 20% to EUR 1,201 million.
• Non-performing loans stood at 0.95%, with a coverage rate of 151%, compared to rates of 0.82% and 179%, respectively, at the close of 2006.
• The capital ratios underline Santander’s high level of solvency, with a BIS ratio of 12.7% and core capital of 6.3%.
• The Group realized net capital gains of EUR 2,348 million in 2007 through assets sales, most notable the sale of real estate properties (EUR 1,076 million), the pension fund management companies in Latin America (EUR 622 million) and the 1.79% stake in Intesa Sanpaolo (EUR 566 million).
• Of these capital gains, EUR 1,398 million will be assigned mainly to adjust the value of the investment in Sovereign (EUR 737 million), to amortize the acquisition of clients in Brazil (EUR 351 million) and to reserves for early retirements (EUR 242 million).The remaining EUR 950 million contribute to attributable profit.

Madrid, February 7, 2008 - Banco Santander registered attributable net profit of EUR 9,060 million in 2007, an increase of 19% from 2006. The result is the highest profit in the history of the bank, which celebrated the 150th anniversary of its founding in 2007, making it the fifth largest bank in the world by profit.
These results are more noteworthy when taking into account the difficult financial environment, which caused large losses at a number of global financial institutions. At the same time, Santander participated, together with The Royal Bank of Scotland and Fortis, in the largest financial sector transaction in history: the acquisition of ABN Amro.
The 2007 results are underpinned by the strong growth in revenues, which doubled that of costs. This allowed recurring profit, without capital gains, to grow by 23%, to EUR 8,111 million. At the same time, Santander in 2007 realized net extraordinary capital gains of EUR 2,348 million, of which EUR 1,398 million have been assigned to extraordinary charges and
EUR 950 million to attributable net profit.
The quality of these results allowed the Board of Directors to approve, for the third consecutive year, a 25% increase in the dividend, with a total charge against 2007 earnings of EUR 0.6508 per share. This will result in a dividend payout of EUR 4,070 million, or 50% of ordinary profit, in line with Santander’s pay-out policy.
Results
Revenues grew by 21%, driven by growth in volumes of 12% and price management, to EUR 27,095 million. Revenues grew at twice the rate of costs, which increased by 10%, allowing net operating income to increase by 32% to EUR 14,842 million. The increase in costs was linked to the opening of a net 326 new branches, bringing the total number of branches in the
Santander network to 11,178, making it the largest retail banking distribution franchise in the western world. Once Banco Real in Brazil is integrated, the Group will have more than 13,000 branches.
The performance in revenue and costs resulted in a significant improvement in efficiency. At the close of 2007, costs equalled 44.2% of total revenues, an improvement of 4.4 percentage points from a year earlier. The businesses in Continental Europe had an efficiency ratio of 38.8%, the U.K. (Abbey) 50.1% and Latin America 41.8%.
The strong increase in net operating income was accompanied by a 41% increase in provisions for bad loans, or an increase of 24% excluding Drive, the U.S. consumer finance company which was consolidated into the Group’s accounts from 2007. Ordinary attributable profit, excluding extraordinaries, was EUR 8,111 million, up 23%.
Apart from these results generated by ordinary activities, in 2007 the Group realized net capital gains of EUR 2,348 million. Among these capital gains, most notable were the EUR 1,076 million generated by the sale of real estate properties, not including the sale of the Ciudad Santander headquarters agreed in January, 2008, which will result in a net capital gain of EUR 605 million. Other sales included the pension fund management companies in Latin America, which generated a gain of EUR 622 million, the 1.79% stake in Intesa Sanpaolo, with capital gains of EUR 566 million and 5.87% of BPI Portugal, with a gain of EUR 84 million. These capital gains have been assigned to an adjustment in the value of the investment in Sovereign (EUR 737 million) and the acquisition of clients in Brazil (EUR 351 million), to reserves for early retirement and other retirement plans (EUR 242 million) and write-offs in Portugal (EUR 68 million).
The difference between the net capital gains and reserves come to EUR 950 million, which contributes to Banco Santander’s final 2007 net profit figure of EUR 9,060 million, an increase of 19%, reinforcing the solvency and capital strength of the Group. Earnings per share came to EUR 1.43, up 17.5% from 2006. Excluding capital gains, earnings per share was EUR 1.28,
an increase of 21.4%.
By geographical areas, Continental Europe recorded net income of EUR 4,423 million, an increase of 27%, as revenue grew by six percentage points more than costs, 20% compared to 14%, respectively..Abbey registered a profit of £822 million (EUR 1,201 million), an increase of 20%, supported by a 7% increase in revenues and a 3% decline in costs. Banco Santander profit in Europe came to EUR 5,624 million, 68% of total Group profit.
In Latin America, attributable profit rose by 27% in dollars, the operating currency, to $3,648 million. In euros, attributable profit was EUR 2,666 million, up 17%. The greatest contribution was made by Brazil, which rose by 32%, to $1,239 million (EUR 905 million); followed by Mexico, with an increase of 35% to $894 million (EUR 654 million) and Chile, where
attributable profit increased by 29% to $743 million (EUR 543 million).
By businesses, retail banking registered ordinary pretax profit (excluding capital gains and extraordinary write-offs) of EUR 9,339 million, up 26%; Global Wholesale Banking EUR 1,830 million, up 28%; and Asset Management and Insurance EUR 537 million, up 14%. The quality of these results is underpinned by the roughly 20% growth in retail banking seen in all markets, while 78% of Global Wholesale Banking revenue is generated by customer business. Asset management and insurance contribute recurring revenues of EUR 3,600 million to the Group.
Business
Santander concluded 2007 with EUR 1,063,892 million in funds under management, an increase of 6%. Of these, EUR 912,915 million are on the balance sheet, up 9%. The rest are off-balance mutual funds, pensions and other customer funds, which amount to EUR 159,986 million. Excluding the effect of certain currencies’ depreciations, Banco Santander in 2007 grew by 12% in lending as well as in customer funds.
Group gross lending was EUR 574,172 million at the end of the year, up 8%. Continental Europe accounted for 55% of this lending, the United Kingdom (Abbey) 33% and Latin America the remaining 12%.
In Continental Europe, lending grew by 14%, to EUR 310,618 million, with increases in all countries and units. In Spain, lending grew by 13%, with mortgage business slowing to 11%. Lending in the Santander branch network in Spain increased by 11%, Banesto by 21%, Portugal by 6% and Santander Consumer Finance by 16%.
The Santander branch network in Spain continued implementing its successful ”We want to be your bank” programme, launched in 2006, which resulted in linked customers totalling 4 million versus 2.4 million two years ago. Net branch growth in 2007 was 55. Lending volume to individuals grew by 8% and to SMEs and companies by 18%. Banesto grew by 13% in loans to individuals and 27% in loans to SMEs and companies.
In Portugal, Santander Totta grew lending by 6%, due to less lending for large transactions, while loans to individuals grew by 9% and SME and company lending by 21%.
Santander Consumer continued its expansion, both organic (branch openings in Germany and Italy) and through selective acquisitions (Drive in the U.S.). Activity was affected by rising interest rates and the decline in auto purchases. New lending grew 6%, with direct lending increasing 20% and card financing 18%. Loans for auto purchases fell 1%.
Loan volume in Latin America came to EUR 68,854 million, an increase of 14% in euros and 20% in local currencies. Brazil, which opened 78 branches last year, increased lending by 32%, with growth of 28% in lending to individuals and 41% to SMEs. Mexico, which opened 49 branches, grew by 25%, with increases of 30% in lending to individuals, and 66% to SMEs. Chile, where 97 new branches were opened, increased lending by 19%, with growth of 15% to individuals and 19% to SMEs.
Abbey continued with its restructuring, closing the year with loan volume of EUR 184,086 million, an increase of 8% in pounds. Net mortgage production in 2007 amounted to £8,800 million, up £1,000 million, or 12%, from 2006.
At the close of 2007, the non-performing loan rate continued to be below one percentage point, at 0.95%, growing 0.13 point from the previous year. The coverage ratio stood at 151%, down 28 points. The Group’s provisions amount to EUR 9,302 million, of which EUR 6,027 million were generic.
The Group’s total customer funds under management came to EUR 784,995 million at the end of 2007, a like-for-like increase of 9% from a year earlier. Balance sheet resources rose 10% to EUR 625,009 million. Off-balance sheet resources declined due to the sale of the Latin American pension fund management companies, which had EUR 18,052 million in funds under management at the close of 2006. Excluding this impact, off-balance sheet funds under management grew by 3%.
In Continental Europe, total customer funds under management were EUR 323,602 million, up 8%, accounting for 48% of the Group’s total managed customer funds. Customer funds under management in Spain grew by 5%, or 8% if the placement of the EUR 7,000 million Valores Santander issue for the financing of the ABN Amro purchase is included. Santander Consumer Finance grew by 33%.
In Latin America, customer funds came to EUR 137,682 million, down 1% due to the sale of the pension fund management companies. Excluding this effect, funds under management grew by 14% in euros or 21% in local currencies. In Brazil, savings grew by 30%, with 22% increase in deposits and 36% in investment funds. In Mexico, customer funds grew by 12%, with deposits increasing by 6% and investment funds by 24%. In Chile, growth was 18%, with deposits up 16% and investment funds up 24%.
Abbey ended 2007 with EUR 216,672 million in customer funds, up 5%, or 15% in pounds. Net inflow of deposits was £3,200 million in 2007, nearly three times the amount of a year earlier, when they were £1,100 million. Growth was achieved without increasing costs, as the margin of Abbey’s customer funds portfolio improved during the period.
The acquisition of ABN AMRO
On May 29th, Banco Santander, together with The Royal Bank of Scotland and Fortis, announced its intention to put forward an offer to acquire ABN Amro. The offer was made on July 20th. The amount offered by the three banks for each ABN Amro share was EUR 35.60 per share in cash and 0.296 new RBS shares.
Santander’s investment in its share of the assets was EUR 19,900 million, an amount that will come down to EUR 10,100 million as a result of the sale of Antonveneta, its Interbanca unit and a small Dutch consumer finance company that was also allotted to Santander. At the same time, Santander will acquire RBS’ global clients business in Brazil, so that Santander’s estimated final investment in the acquisition of ABN Amro assets, basically Banco Real, will amount to EUR 10,500 million.
The share and dividend
At the close of 2007, Santander’s eligible capital came to EUR 65,225 million, with a surplus of EUR 24,021 million above the required minimum. With this capital base, the BIS ratio came to 12.7%, Tier I capital to 7.7% and core capital to 6.3%. These ratios underscore Santander’s capital strength.
The Santander share ended the year at EUR 14.79 euros, up 4.6% from a year earlier, making it the only bank in the Eurostoxx with a positive performance in 2007. At the end of the year, Santander’s market capitalization amounted to EUR 92,501 million. Santander is the leading bank in the euro zone and the eighth in the world by market value.
The Board of Directors has agreed that the total dividend charged against 2007 earnings will amount to EUR 0.6508 per share, an increase of 25% for the third consecutive year. Santander has already paid three of the four annual dividends, amounting to EUR 0.1229 each. The fourth one, totalling EUR 0.2820 per share, will be paid in May. The share’s dividend yield came to 4.67% in 2007. In the last ten years, the dividend has registered annual cumulative growth of 14%. In 2007, profit distributed to shareholders will amount to EUR 4,070 million (50% of ordinary attributable profit), a record for Santander.
Santander has 2,278,321 shareholders. 131,819 persons work in the Group, serving 65 million customers in 11,178 branches.

Banco Santander, comprometido con la educación superior

La Universidad desempeña un papel fundamental en la sociedad del conocimiento, donde actúa como guía hacia una sociedad innovadora, que contribuya al cambio económico y social, y apoye los avances y progresos científicos y tecnológicos.
Banco Santander, a través de la División Global Santander Universidades, colabora desde hace más de 15 años con las universidades con una iniciativa única en el mundo, que le distingue del resto de bancos e instituciones financieras nacionales e internacionales.
Emilio Botín, presidente de Banco Santander, consideró que el banco, además de ser competitivo, había de caracterizarse por ser útil a las sociedades en las que está presente. Este compromiso se asienta en el convencimiento de que la mejor manera de contribuir al crecimiento y al progreso económico y social es apoyando el sistema de educación superior y de investigación.
Santander Universidades colabora con casi 1.000 universidades de América, Asia y Europa, estando presente en Alemania (2), Argentina (66), Brasil (423), Chile (56), China (7), EEUU (25), España (92), México (147), Polonia (20), Portugal (43), Puerto Rico (8),Reino Unido (55), Rusia (8), Singapur (1), y Uruguay (8).
A través de Santander Universidades, Banco Santander ha destinado durante 2011 más de 110 millones de euros a proyectos de colaboración con  universidades de América, Asia y Europa.
José Antonio Villasante Cerro, director general de Banco Santander y director de la División Global Santander Universidades, dirige a los más de 2.130 profesionales de 15 países que coordinan y gestionan el compromiso de Banco Santander con la educación superior. Para el banco, contribuir al pleno acceso al conocimiento y a una educación superior de calidad constituye la mejor vía para avanzar hacia sociedades abiertas y prósperas. En palabras de Emilio Botín, “el aumento del empleo y el desarrollo del bienestar se basa en la educación, la investigación y el esfuerzo”.
Santander Universidades apoya el desarrollo de iniciativas académicas relacionadas con programas de becas y prácticas profesionales, proyectos docentes; difusión del español; programas de investigación; relación Universidad - Empresa; nuevas tecnologías -la Tarjeta Universitaria Inteligente (TUI)- y proyectos globales, como RedEmprendia, Universia y la Biblioteca Virtual Miguel de Cervantes.

Wells Fargo

Wells Fargo today offers three publications on its history : a richly illustrated overview and two books on our company’s rich stagecoach heritage.

 

Images of America…Wells Fargo
a 120-page illustrated paperback from Arcadia Press
$19.99 plus tax and shipping

 

The Butterfield Overland Mail, By Waterman Ormsby.
A fascinating recount of the only through passenger on the first westbound stage.
$19.95 Plus shipping and handling. 172 pg. paperback

 

Stagecoaches…Across the American West, By John A.
Sells. . Wonderfully Illustrated book on Stagecoaches and the express routes of the west.
$44.95 Plus shipping and handling. 320 pg, full-page paperback

 

July 25, 1868. Wells Fargo demonstrated that attention to business made it number one. The Pacific Union Express Company sprang up, challenging Wells Fargo throughout California and Nevada. Who would be first with the news? "The steamer Orizaba arrived at San Pedro," the Los Angeles Star reported, where Banning & Co. took charge of Wells, Fargo & Co's Express, while Tomlinson & Co. performed the same service for Pacific Union. Off they went, bound for Los Angeles 25 miles away. Wells Fargo messenger S.B. Vaughn charged away on a horse, while a light buggy served the new express. Three changes of horses later, the express arrived in the City of Angels. "Time," the paper announced, "Wells, Fargo & Co., 1 hour and 3 minutes, beating the Pacific Union by 28 minutes." Customers felt, "If it ain't broke, don't fix it," and the Pacific Union Express folded.

Bank of America

rank k: Navigation, SearchBank of America CorporationBank of America Logo.pngType
Publychnaya companyParticipation in the CER
Yes (harantyrovanы FDIC)Listing on the exchange
NYSE: BACTYO: 8648Devyz
Higher StandardsYear Founded
1928Location of
Soedynёnnыe Shtatы America Charlotte, North Carolina (USA)Key fyhurы
Charles Holliday (English) Vene. (Chairman)Brian Moynyhэn (English) Vene. (President and CEO)Assets of
▲ $ 2,264 трлн (2010) [1]Pure profit
▼ $ 2,238 billion (2010) [1]The number of collaborators
288000 (2010) [1]Site
www.bankofamerica.com
Bank of America - of American Financial conglomerate okazыvayuschyy wide range of financial services chastnыm of legal and to others,'s largest bankovskaya Holding Company in the U.S. in the number aktyvov [2], took a 3 place among the largest companies in the world versions of Forbes [3]. In 6000 the company almost [4] otdelenyy bank in the U.S. and 300 [4] in other countries, 288 000 [4] and collaborators 16 500 [Source not specified 469 days] bankomatov.The headquarters of the bank in the city of Charlotte (North Carolina State)
14 September 2008 year, Bank of America announced at purchase of the Investment bank Merrill Lynch. The cost of purchase to information newspaper Wall Street Journal amounted to 50 billion dollars [5].
Bank of America (BofA) 29 August 2011 at Mr. announced intentions to sell 13.1 billion shares chinese China Construction Bank (CER), the group chastnыh investors. The cost of the transaction sostavlyaet 8.3 billion dollars [6].

HSBC

In the annual ranking Brand Finance «500 strongest financial brands" for the first time included two Ukrainian banks. "Raiffeisen Bank Aval" 373 took place, the value of its brand valued at $ 126 million sales mark in 2009, assigned BBB index. "Ukrsotsbank" was on the 473 position with brand value $ 85 million and an index trademark mop.
The winner of the ranking was British HSBC, brand value is estimated at $ 25.364 billion in the second and third place - with U.S. financial institutions: Bank of America (brand value $ 21.017 billion) and Wells Fargo ($ 14,508 billion).
Brand Finance report titled Top 500 banking brands covering 32 major financial markets around the world. Traditionally, brands evaluate the following criteria: strength, reliability and risk potential. But foremost among the indicators is the cost of the brand, which also determines the place of financial institutions in the ranking.
Brand value determined based on annual financial statements of banks. It also included projections for the coming years: the system of assessments of institutional brokers (Institutional Broker Estimate System, IBES); five-year forecast (2009-2013), taking into account data IBES; average annual growth in brand value, average annual growth in GDP.
In 2008 only 31 banks with 500 managed to not only retain its value but increase it. But 84% of banks that entered the top 100, lost in the market value of your brand.
Most affected by U.S. financial brands, which is impaired by 40%. Also dropped significantly in price UK - 15%. Go to the previous rating included 95 American brands in the present as their total 29. Most significantly crisis hit the sector brands of credit cards - so in 2008 the price decreased by 34%.

Establishment and early years

HSBC is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between Europe, India and China.
The inspiration behind the founding of the bank was Thomas Sutherland, a Scot who was then working for the Peninsular and Oriental Steam Navigation Company. He realised that there was considerable demand for local banking facilities in Hong Kong and on the China coast and he helped to establish the bank which opened in Hong Kong in March 1865 and in Shanghai a month later.
Soon after its formation the bank began opening branches to expand the services it could offer customers. Although that network reached as far as Europe and North America, the emphasis was on building up representation in China and the rest of the Asia-Pacific region. HSBC was a pioneer of modern banking practices in a number of countries - for instance, in 1888 it was the first bank to be established in Thailand, where it printed the country’s first banknotes.
From the outset trade finance was a strong feature of the local and international business of the bank, an expertise that has been recognised throughout its history. Bullion, exchange, merchant banking and note issuing also played an important part. In 1874 the bank handled China's first public loan and thereafter issued most of China's public loans.
By the end of the century, after a strong period of growth and success under the leadership of Thomas Jackson (chief manager for most of that period from 1876 to 1902), the bank was the foremost financial institution in Asia.



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Challenges and change

The twentieth century saw challenges and change for HSBC. In the early years of the twentieth century, HSBC widened the scope of its activities in the East. It became increasingly involved in the issuing of loans to national governments, especially in China, to finance modernisation and internal infrastructure projects such as railway building. The First World War brought disruption and dislocation to many businesses but the 1920s saw a return to prosperity in the East as new industries were developed and trade in commodities such as rubber and tin soared. The bank's new head office in Hong Kong (1935) and the new buildings at major branches such as Bangkok (1921), Manila (1922) and Shanghai (1923) reflected this confidence.
The 1930s ushered in an era of uncertainty with economic recession and political turmoil in the many of the bank's markets. In the Second World War, the majority of the bank's staff in the East became prisoners of war as the enemy advanced through Asia. The bank survived under the new leadership of Arthur Morse, and through its prudent policy of building up large reserves in peace time. At the end of the War, HSBC took on a key role in the reconstruction of the Hong Kong economy. Its support for the skills of newcomers to Hong Kong was especially vital to the upsurge in manufacturing in this period.
In other markets, however, HSBC needed to make major readjustments. Most of the mainland offices in China were closed between 1949 and 1955, leaving only the Shanghai office to continue its long and eventful service. These changes carried the risk that the bank was over-concentrating its interests in Hong Kong. The bank addressed this concern by diversifying through a series of alliances and acquisitions. The purchases of the Mercantile Bank and the British Bank of the Middle East in 1959 took HSBC into new pastures, and the formation of a merchant banking arm in 1972 extended its range of services. By the 1970s the bank had firmly developed a policy of expansion by acquisition or formation of subsidiaries with their own identities and expertise.


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Making of the modern HSBC

In the later years of the twentieth century HSBC moved from an important regional bank to one of the world's leading financial services organisations. This transition was achieved by a number of steps.
By the late 1970s HSBC's management had conceived the strategy of the 'three legged stool' with the legs of the stool representing the three markets of the Asia Pacific region, the US and the UK. In the 1980s, the purchase of Marine Midland Bank in the US represented the acquisition of the second leg of the stool. HSBC then sought a similar purchase in the UK. The initial target was the Royal Bank of Scotland but after this acquisition failed, attention turned to Midland Bank and a 14.9% stake was taken in 1987. After creating a new holding company, HSBC Holdings plc in 1991, HSBC then made a recommended offer for full ownership of Midland in July 1992. The third leg was in place. As a result of the formation of the new holding company and the acquisition of Midland Bank, HSBC became headquartered in London.
HSBC continued to grow through strategic acquisitions in both the developed and emerging markets: purchases in Argentina and Brazil in 1997 were balanced by the addition of the Republic New York Corporation in 1999. In November 1998 HSBC announced the adoption of a unified brand, using HSBC and the hexagon symbol everywhere it operated, with the aim of enhancing recognition of HSBC by customers, shareholders and staff throughout the world.
In the twenty-first century, HSBC has renewed its focus on its birthplace, growing its business in China both organically and through a series of strategic partnerships. HSBC's diversification and its core values of financial strength and stability have stood it in good stead in the recent global turbulence in economies and markets, and it remains well placed to deal with an uncertain world.

What's in the archives?

HSBC's archives are one of the most important and heavily-used business collections in the world. The archives contain the historical records not only of HSBC, but also of many of the banks which have been acquired by HSBC and its predecessor companies.

The archives reflect the colourful and eventful history of HSBC - the core of annual reports, minute books and accounting ledgers is supplemented by a huge variety of material which records how our staff lived and worked, and the business environments in which our customers operated. The archives include letters, photographs, cartoons, films, advertising, banknotes, architectural drawings and interviews with staff - all of which can shed light on the social, economic and political history of those communities and countries where HSBC has done business.
The archives of HSBC are managed by different teams around the world. The team in London are responsible for the records of HSBC Holdings plc and also the historic records of HSBC Bank plc (formerly Midland Bank); HSBC Bank Middle East (formerly The British Bank of the Middle East); the Mercantile Bank of India. The London team also has stewardship of the records of The Hongkong and Shanghai Banking Corporation up to 1993.
The team in Hong Kong is responsible for the modern records of HSBC in the Asia Pacific Region and also for some historic records relating specifically to Hong Kong. The archives teams in France and the US are responsible for the historic records of HSBC in those countries.

HSBC History Wall

The History Wall was developed for HSBC's new headquarters in Canary Wharf in London. Through 3,743 images, the History Wall captures HSBC's rich and fascinating pedigree reflecting the geographical and chronological sweep of its history. The images on the Wall were nearly all sourced from HSBC's own archives and the Wall itself was designed by the award-winning Heatherwick Studio.

China Construction Bank

Can you provide us with customized services that we demand? Can you collect the funds dispersed in different regions into one cash pool? The answer is yes. The VIP corporate client of CCB will be provided with personalized, specialized and customized modern financial services through our VIP services system.

I. Service Functions

VIP service system is an information expressway that enables VIPs to access “nationwide services through one access point”. It also provides clients with strong service handling functions.

● Client information management function, including account opening and cancellation, data editing, loss reports and other sub functions;

● Real-time transfer of funds, including automatic payment, automatic collection, the 3rd party transfer, payment to other banks, and other sub functions;

● Account information inquiry function, including balance inquiry, detailed account of that day, historical balance inquiry, historical statement access, and other sub functions;  

● Agency service function, including agency service contracting, agency funds registration, agency funds settlement, and other sub-functions;

● Reporting and statistics function, including statistics and output of internal management data, statistics and output of client information, and other sub-functions;  

● System monitoring function, including system operation status monitoring, client transaction status monitoring, system abnormal status monitoring and handling, and other sub-functions;

● Account reconciliation function, including account reconciliation between VIP services system and client system.

● Clearing function, including funds clearance between the Bank and the clients.

II. Features and Advantages

● Rich Products Line

The VIP service system developed over 10 products from our clients, including authorized payment for the central finance, the collection of non-tax revenue for the central finance, independent custodial banking for securities settlement funds, cash management for group corporations, bank futures account transfer, instant services for import & export, corporate payment gateway, the business in partnership foreign-funded banks, and banknote custody.

● High-Quality Services

The VIP service system can provide a complete solution for internal funds management and business operation therefore meeting both the operational and managerial demands of our clients. The fast customization and development of products enables our clients to strengthen internal management, improve funds utilization rate and reduction funds usage cost.

● Multiple-Channel Support

You can access the VIP service system supports through your terminals, host computers, our outlets, online banks, call center and other means.

● High Level Security

The VIP service system adopted the encryption technologies certified by domestic authorities. There are various measures to ensure the security of the funds of our clients and our funds such as, right management, ID certification, digital signature, and transmission encryption.

III. Clients Overview

We have include over 400 national and regional VIPs into our VIP service system, which include government agencies, financial institutions and multinational corporations, such as the Ministry of Finance, the Ministry of Railways, China Telecom, China Netcom, China Mobile, China Unicom, Sinopec, PetroChina, China Huadian Corporation, China Huaneng Group, China Southern Power Grid, China Yangtze Power Co., Shanghai Baosteel (Group) Corporation, Wuhan Iron and Steel (Group) Corp., TCL, China National Cereals, Oils and Foodstuffs Corp. (COFCO), CICC, China Cinda Asset Management Corporation, China Galaxy Securities Co. Ltd., Guotai Junan Securities, Citibank, Deutsche Bank, Bank of America, General Motors Acceptance Corporation (GMAC), Volkswagen Financial Services AG, and Intel Corporation.

If you wish to enjoy our VIP services, please contact our account managers.

JPMorgan Chase

JPMorgan Chase Reports Second-Quarter 2012 Net Income of $5.0 Billion, or $1.21 Per Share, On Revenue¹ of $22.9 Billion

Results Include CIO Trading Losses

Supported Consumers, Businesses and Communities

• Our client-driven businesses all had solid performance this quarter; continued improvement in consumer credit; lower volume in capital markets²
• Investment Bank maintained #1 ranking for Global Investment Banking Fees
• Consumer & Business Banking average deposits up 8%; Business Banking loan originations up 14%
• Mortgage Banking originations up 29%
• Credit Card sales volume³ up 12%
• Commercial Banking reported eighth consecutive quarter of loan growth, up 16%
• Treasury & Securities Services reported assets under custody of $18 trillion, up 4%
• Asset Management reported thirteenth consecutive quarter of positive net long-term product flows
• First-half 2012 net income of $9.9 billion, EPS of $2.41 and revenue of $49.6 billion not impacted by first-quarter 2012 restatement; second-quarter 2012 balance sheet and capital ratios also not impacted⁴
• Second-quarter results included the following significant items:
• $4.4 billion pretax loss ($0.69 per share after-tax reduction in earnings) from CIO trading losses and $1.0 billion pretax benefit ($0.16 per share after-tax increase in earnings) from securities gains in CIO's investment securities portfolio in Corporate
• $2.1 billion pretax benefit ($0.33 per share after-tax increase in earnings) from reduced loan loss reserves, mostly mortgage and credit card
• $0.8 billion pretax gain ($0.12 per share after-tax increase in earnings) from debit valuation adjustments ("DVA") in the Investment Bank
• $0.5 billion pretax gain ($0.09 per share after-tax increase in earnings) reflecting expected full recovery on a Bear Stearns-related first-loss note in Corporate5
• Substantial progress achieved in CIO
• Significantly reduced total synthetic credit risk in CIO
• Substantially all remaining synthetic credit positions transferred to the Investment Bank
• ­ Investment Bank has the expertise, capacity, trading platforms and market franchise to manage these positions
• CIO synthetic credit group closed down
• Conducting extensive review of CIO trading losses; CIO management completely overhauled; governance standards enhanced; believe events isolated to CIO
• Fortress balance sheet remains strong
• Basel I Tier 1 common1 of $130 billion, or 10.3%
• Estimated Basel III Tier 1 common1 of 7.9%, after the impact of final Basel 2.5 rules and the Federal Reserve's recent Notice of Proposed Rulemaking
• Strong loan loss reserves of $24 billion; Global Liquidity Reserve of $414 billion
• JPMorgan Chase supported consumers, businesses and our communities
• Provided $130 billion of credit3 to consumers in the first six months of 2012
• ­ Issued new credit cards to 3.3 million people
• ­ Originated over 425,000 mortgages
• Provided nearly $10 billion of credit to U.S. small businesses in the first six months, up 35% compared with prior year
• Provided $260 billion of credit3 to corporations in the first six months
• Raised over $460 billion of capital for clients in the first six months
• Nearly $29 billion of capital raised for and credit3 provided to more than 900 nonprofit and government entities in the first six months, including states, municipalities, hospitals and universities
• Hired more than 4,000 U.S. veterans since the beginning of 2011

New York, July 13, 2012 - JPMorgan Chase & Co. (NYSE: JPM) today reported second-quarter 2012 net income of $5.0 billion, compared with net income of $5.4 billion in the second quarter of 2011. Earnings per share were $1.21, compared with $1.27 in the second quarter of 2011. The Firm's return on tangible common equity¹ for the second quarter of 2012 was 15%, compared with 17% in the prior year.
Jamie Dimon, Chairman and Chief Executive Officer, commented on financial results: "Importantly, all of our client-driven businesses had solid performance. However, there were several significant items that affected the quarter's results - some positively; some negatively. These included $4.4 billion of losses on CIO's synthetic credit portfolio, $1.0 billion of securities gains in CIO and a $545 million gain on a Bear Stearns-related first-loss note, for which the Firm now expects full recovery. The Firm's results also included $755 million of DVA gains, reflecting adjustments for the widening of the Firm's credit spreads which, as we have consistently said, do not reflect the underlying operations of the Firm. The Firm also reduced loan loss reserves by $2.1 billion, mostly for the mortgage and credit card portfolios. These reductions in reserves are based on the same methodologies we have used in the past - the good news is that these reductions reflected meaningful improvements in delinquencies and estimated losses in these portfolios. We continue to maintain strong reserves."
Dimon continued: "Since the end of the first quarter, we have significantly reduced the total synthetic credit risk in CIO - whether measured by notional amounts, stress testing or other statistical methods. The reduction in risk has brought the portfolio to a scale that allowed us to transfer substantially all remaining synthetic credit positions to the Investment Bank . The Investment Bank has the expertise, capacity, trading platforms and market franchise to effectively manage these positions and maximize economic value going forward. As a result of the transfer, the Investment Bank's Value-at-Risk and Risk Weighted Assets will increase, but we believe they will come down over time. Importantly, we have put most of this problem behind us and we can now focus our full energy on what we do best - serving our clients and communities around the world."
Commenting further on CIO, Dimon said: "CIO will no longer trade a synthetic credit portfolio and will focus on its core mandate of conservatively investing excess deposits to earn a fair return. CIO's $323 billion available-for-sale portfolio had $7.9 billion of net unrealized gains at the end of the quarter. This portfolio has an average rating of AA+, has a current yield of approximately 2.6%, and is positioned to help to protect the Firm against rapidly rising interest rates. In addition to CIO, we have $175 billion in cash and deposits, primarily invested at central banks."
"The Firm has been conducting an extensive review of what happened in CIO and we will be sharing our observations today. We have already completely overhauled CIO management and enhanced the governance standards within CIO. We believe these events to be isolated to CIO, but have taken the opportunity to apply lessons learned across the Firm. The Board of Directors is independently overseeing and guiding the Company's review, including any additional corrective actions. While our review continues, it is important to note that no client was impacted."
Commenting on the balance sheet, Dimon said: "Our fortress balance sheet remained strong, ending the second quarter with a strong Basel I Tier 1 common ratio of 10.3%. We estimate that our Basel III Tier 1 common ratio was approximately 7.9% at the end of the second quarter, after the effect of the final Basel 2.5 rules and the Federal Reserve's recent Notice of Proposed Rulemaking."
Dimon concluded: "Through the depth of the financial crisis and through recent events, we have never stopped fulfilling our mission: to serve clients - consumers and companies - and communities around the globe. During the first half of 2012, we provided $130 billion of credit to consumers. Over the same period we provided nearly $10 billion of credit to small businesses, the engine of growth for our economy, up 35% compared with the same period last year. For America's largest companies, we raised or lent over $720 billion of capital in the first six months to help them build and expand around the world. Even in this difficult economy, we have added thousands of new employees across the country - over 62,000 since January 2008. In 2011, we founded the "100,000 Jobs Mission" - a partnership with 54 other companies to hire 100,000 U.S. veterans by the year 2020. We have hired more than 4,000 veterans since the beginning of 2011, in addition to the thousands of veterans who already worked at our Firm. I am proud of JPMorgan Chase and what all of our employees do every day to serve our clients and communities in a first-class way."
In the discussion below of the business segments and of JPMorgan Chase as a Firm, information is presented on a managed basis. For more information about managed basis, as well as other non-GAAP financial measures used by management to evaluate the performance of each line of business, see page 14. The following discussion compares the second quarters of 2012 and 2011 unless otherwise noted.
INVESTMENT BANK (IB)

Discussion of Results:
Net income was $1.9 billion, down 7% from the prior year. These results reflected lower net revenue and a provision for credit losses compared with a benefit in the prior year, largely offset by lower noninterest expense.
Net revenue was $6.8 billion, compared with $7.3 billion in the prior year. Investment banking fees were $1.2 billion (down 35%), which consists of debt underwriting fees of $639 million (down 26%), equity underwriting fees of $250 million (down 45%), and advisory fees of $356 million (down 41%). Combined Fixed Income and Equity Markets revenue was $5.0 billion, down 10% from the prior year. Credit Portfolio reported revenue of $544 million.
Net revenue included a $755 million gain from DVA on certain structured and derivative liabilities resulting from the widening of the Firm's credit spreads; this gain was composed of $241 million in Fixed Income Markets, $200 million in Equity Markets and $314 million in Credit Portfolio. Excluding the impact of DVA, net revenue was $6.0 billion and net income was $1.4 billion.
Excluding the impact of DVA, Fixed Income and Equity Markets combined revenue was $4.5 billion, down 15% from the prior year, primarily reflecting the impact of weaker market conditions, with solid client revenue. Excluding the impact of DVA, Credit Portfolio net revenue was $230 million, driven by net interest income on retained loans and fees on lending-related commitments.
The provision for credit losses was $21 million, compared with a benefit in the prior year of $183 million. The ratio of the allowance for loan losses to end-of-period loans retained was 1.97%, compared with 2.10% in the prior year. Excluding the impact of consolidation of Firm-administered multi-seller conduits effective on January 1, 2010, the ratio of the allowance for loan losses to end-of-period loans retained was 3.19%¹, compared with 3.34%1 in the prior year.
Noninterest expense was $3.8 billion, down 12% from the prior year, driven by lower compensation expense. The ratio of compensation to net revenue was 33%, excluding DVA.
Key Metrics and Business Updates:
(All comparisons refer to the prior-year quarter except as noted, and all rankings are according to Dealogic)

• Ranked #1 in Global Investment Banking Fees for the six months ended June 30, 2012.
• Ranked #1 in Global Debt, Equity and Equity-related; #1 in Global Long-Term Debt; #1 in Global Syndicated Loans; #2 in Global Announced M&A; and #3 in Global Equity and Equity-related, based on year to date volume, for the six months ended June 30, 2012.
• Return on equity was 19% on $40.0 billion of average allocated capital (15% excluding DVA).
• End-of-period total loans were $74.4 billion, up 25% from the prior year and 2% from the prior quarter. Nonaccrual loans of $815 million were down 52% from the prior year and 7% from the prior quarter.

RETAIL FINANCIAL SERVICES (RFS)

Discussion of Results:
Net income was $2.3 billion, compared with $383 million in the prior year.
Net revenue was $7.9 billion, an increase of $793 million, or 11%, compared with the prior year. Net interest income was $3.9 billion, down $126 million, or 3%, driven by the impact of lower deposit spreads and lower loan balances due to portfolio runoff, largely offset by higher deposit balances. Noninterest revenue was $4.0 billion, an increase of $919 million, or 30%, driven by higher mortgage fees and related income, partially offset by lower debit card revenue.
The provision for credit losses was a benefit of $555 million compared with a provision expense of $994 million in the prior year and a benefit of $96 million in the prior quarter. The current-quarter provision reflected a $1.4 billion reduction in the allowance for loan losses due to lower estimated losses as mortgage delinquency trends continued to improve, and to a lesser extent, a refinement of our incremental loss estimates with respect to certain borrower assistance programs. The prior-year provision for credit losses reflected higher net charge-offs; the prior-quarter provision reflected a $1.0 billion reduction of the allowance for loan losses.
Noninterest expense was $4.7 billion, a decrease of $545 million, or 10%, from the prior year.
Consumer & Business Banking reported net income of $946 million, a decrease of $152 million, or 14%, compared with the prior year.
Net revenue was $4.3 billion, down 6% from the prior year. Net interest income was $2.7 billion, down 1% compared with the prior year, driven by the impact of lower deposit spreads, predominantly offset by higher deposit balances. Noninterest revenue was $1.6 billion, a decrease of 13%, driven by lower debit card revenue, reflecting the impact of the Durbin Amendment.
The provision for credit losses was a benefit of $2 million, compared with a provision expense of $42 million in the prior year. The current-quarter provision reflected a $100 million reduction in the allowance for loan losses due to lower estimated losses as delinquency trends continued to improve. Net charge-offs were $98 million (2.20% net charge-off rate), compared with $117 million (2.74% net charge-off rate) in the prior year.
Noninterest expense was $2.7 billion, up 1% from the prior year, including the benefit of certain adjustments in the current quarter.
Key Metrics and Business Updates:
(All comparisons refer to the prior-year quarter except as noted and banking portal ranking per compete.com)

• Average total deposits were $389.5 billion, up 8% from the prior year and 2% from the prior quarter, with growth rates among the best in the industry.
• Deposit margin was 2.62%, compared with 2.83% in the prior year and 2.68% in the prior quarter.
• Checking accounts totaled 27.4 million, up 4% from the prior year and 1% from the prior quarter.
• Number of branches was 5,563, an increase of 223 from the prior year and 22 from the prior quarter. Chase Private Client locations were 738, an increase of 722 from the prior year and 372 from the prior quarter.
• End-of-period Business Banking loans were $18.2 billion, up 6% from the prior year and 2% from the prior quarter; originations were $1.8 billion, up 14% from the prior year and 16% from the prior quarter; Chase continues to be the #1 SBA lender (in units).
• Branch sales of credit cards were down 19% from the prior year and up 11% from the prior quarter.
• Branch sales of investment products were down 3% compared with the prior year and 6% from the prior quarter.
• Client investment assets, excluding deposits, were $147.6 billion, up 5% from the prior year and relatively flat from the prior quarter.
• Number of active mobile customers was 9.1 million, an increase of 38% compared with the prior year and 6% compared with the prior quarter; QuickDeposit active customers grew over 2.5 times compared with the prior year and QuickPay active customers tripled compared with the prior year.
• Number of active online customers was 17.9 million, an increase of 5% compared with the prior year and flat to the prior quarter; Chase.com is the #1 most visited banking portal in the U.S.

Mortgage Production and Servicing reported net income of $604 million, compared with a net loss of $649 million in the prior year.
Mortgage production reported pretax income of $931 million, an increase of $645 million from the prior year. Mortgage production-related revenue, excluding repurchase losses, was $1.6 billion, an increase of $595 million, or 62%, from the prior year, reflecting wider margins, driven by market conditions and mix, and higher volumes, due to a favorable refinancing environment, including the impact of the Home Affordable Refinance Programs ("HARP"). Production expense was $620 million, an increase of $163 million, or 36%, reflecting higher volumes. Repurchase losses were $10 million, compared with $223 million in the prior year and $302 million in the prior quarter. The current quarter reflected a $216 million reduction in the repurchase liability and lower realized repurchase losses when compared to prior quarter.
Mortgage servicing reported pretax income of $65 million, compared with a pretax loss of $1.1 billion in the prior year. Mortgage servicing revenue, including mortgage servicing rights ("MSR") amortization, was $785 million, an increase of $223 million, or 40%, from the prior year. This increase reflected reduced amortization as a result of a lower MSR asset value. Servicing expense was $953 million, a decrease of $775 million, or 45%, from the prior year. The prior-year servicing expense included approximately $1.0 billion of incremental expense related to foreclosure-related matters. MSR risk management income was $233 million, compared with $25 million in the prior year.
Key Metrics and Business Updates:
(All comparisons refer to the prior-year quarter except as noted)

• Mortgage loan originations were $43.9 billion, up 29% from the prior year and 14% compared with the prior quarter; Retail channel originations (branch and direct to consumer) were a record of $26.1 billion, up 26% from the prior year and 12% compared with the prior quarter.
• Mortgage loan application volumes were $66.9 billion, up 37% from the prior year and 12% from the prior quarter, primarily reflecting refinancing activity.
• Total third-party mortgage loans serviced was $860.0 billion, down 9% from the prior year and 3% from the prior quarter.

Real Estate Portfolios reported net income of $717 million, compared with a net loss of $66 million in the prior year. The increase was driven by a benefit from the provision for credit losses, reflecting continued improvement in credit trends.
Net revenue was $1.0 billion, down by $177 million, or 15%, from the prior year. The decrease was driven by a decline in net interest income, resulting from lower loan balances due to portfolio runoff.
The provision for credit losses reflected a benefit of $554 million, compared with provision expense of $954 million in the prior year. The current-quarter provision benefit reflected lower charge-offs as compared with the prior year and a $1.25 billion reduction in the allowance for loan losses due to lower estimated losses as delinquency trends continued to improve, and to a lesser extent, a refinement of our incremental loss estimates with respect to certain borrower assistance programs. Home equity net charge-offs were $466 million (2.53% net charge-off rate¹), compared with $592 million (2.83% net charge-off rate¹) in the prior year. Subprime mortgage net charge-offs were $112 million (4.94% net charge-off rate¹), compared with $156 million (5.85% net charge-off rate¹). Prime mortgage, including option ARMs, net charge-offs were $114 million (1.08% net charge-off rate¹), compared with $198 million (1.67% net charge-off rate¹).
Nonaccrual loans were $6.7 billion, compared with $6.9 billion in the prior year and $7.0 billion in the prior quarter. Based upon regulatory guidance issued in the first quarter of 2012, the Firm began reporting performing junior liens that are subordinate to nonaccrual senior liens as nonaccrual loans. Prior year has not been restated for this reporting change. Such junior liens were $1.5 billion in the current quarter and $1.6 billion in the prior quarter.
Noninterest expense was $412 million, up by $41 million, or 11%, from the prior year due to an increase in servicing costs.
Key Metrics and Business Updates:
(All comparisons refer to the prior-year quarter except as noted. Average loans include PCI loans)

• Average home equity loans were $96.1 billion, down by $11.6 billion.
• Average mortgage loans were $92.9 billion, down by $11.5 billion.
• Allowance for loan losses was $12.2 billion, compared with $14.7 billion in the prior year.
• Allowance for loan losses to ending loans retained, excluding PCI loans was 5.20%, compared with 6.90% in the prior year.

CARD SERVICES & AUTO (Card)

Discussion of Results:
Net income was $1.0 billion, a decrease of $80 million, or 7%, compared with the prior year. The decrease was driven by a lower reduction in the allowance for loan losses compared with the prior year.
Net revenue was $4.5 billion, a decrease of $236 million, or 5%, from the prior year. Net interest income was $3.3 billion, down $176 million, or 5%, from the prior year. The decrease was driven by narrower loan spreads, partially offset by lower revenue reversals associated with lower net charge-offs. Noninterest revenue was $1.2 billion, a decrease of $60 million, or 5%, from the prior year. The decrease was driven by higher amortization of direct loan origination costs, partially offset by higher net interchange income.
The provision for credit losses was $734 million, compared with $944 million in the prior year and $738 million in the prior quarter. The current-quarter provision reflected lower net charge-offs and a $751 million reduction in the allowance for loan losses due to lower estimated losses. The prior-year provision included a $1.0 billion reduction in the allowance for loan losses. The Credit Card net charge-off rate¹ was 4.32%, down from 5.81% in the prior year and 4.37% in the prior quarter; and the 30+ day delinquency rate1 was 2.13%, down from 2.98% in the prior year and 2.55% in the prior quarter. The net charge-off rate for the quarter would have been 4.03%¹ absent a policy change on restructured loans that do not comply with their modified payment terms. These loans will now charge-off when they are 120 days past due rather than 180 days past due. This change resulted in a one-time acceleration of $91 million in net charge-offs in the current quarter only, and a permanent reduction in the 30+ day delinquency rate which is 0.10% for the current quarter. The one-time acceleration of net charge-offs is offset by a reduction in the allowance for loan losses. The Auto net charge-off rate was 0.17%, up from 0.16% in the prior year and down from 0.28% in the prior quarter.
Noninterest expense was $2.1 billion, an increase of $108 million, or 5%, from the prior year, due to additional expense related to a non-core product that is being exited.
Key Metrics and Business Updates:
(All comparisons refer to the prior-year quarter except as noted)

• Return on equity was 25% on $16.5 billion of average allocated capital.
• Credit Card average loans were $125.2 billion, flat compared with prior year and down 2% from the prior quarter.
• #1 credit card issuer in the U.S. based on outstandings²; #1 Global Visa issuer based on consumer and business credit card sales volume².
• Credit Card sales volume² was $96.0 billion, up 12% compared with the prior year and 10% compared with the prior quarter; Card Services general purpose credit card sales volume growth has outperformed the industry since 1Q08².
• Credit Card new accounts of 1.6 million were opened; Credit Card open accounts of 63.7 million.
• Card Services net revenue as a percentage of average loans was 11.91%, compared with 12.60% in the prior year and 12.22% in the prior quarter.
• Merchant processing volume was $160.2 billion, up 17% from the prior year and 5% from the prior quarter; total transactions processed were 7.1 billion, up 20% from the prior year and 4% from the prior quarter.
• Average auto loans were $48.3 billion, up 3% from the prior year and 1% from the prior quarter.
• Auto originations were $5.8 billion, up 7% from the prior year and flat to the prior quarter.

COMMERCIAL BANKING (CB)

Discussion of Results:
Net income was $673 million, an increase of $66 million, or 11%, from the prior year. The improvement was driven by a benefit from the provision for credit losses and an increase in net revenue, partially offset by higher expense.
Record net revenue was $1.7 billion, an increase of $64 million, or 4%, from the prior year. Net interest income was $1.1 billion, up by $100 million, or 10%, driven by growth in liability and loan balances, partially offset by spread compression on loan and liability products. Noninterest revenue was $562 million, down by $36 million, or 6%, compared with the prior year, driven by lower investment banking revenue and deposit- and lending-related fees.
Revenue from Middle Market Banking was $833 million, an increase of $44 million, or 6%, from the prior year. Revenue from Commercial Term Lending was $291 million, an increase of $5 million, or 2%, compared with the prior year. Revenue from Corporate Client Banking was $343 million, an increase of $4 million, or 1%, from the prior year. Revenue from Real Estate Banking was $114 million, an increase of $5 million, or 5%, from the prior year.
The provision for credit losses was a benefit of $17 million, compared with provision for credit losses of $54 million in the prior year. There were net recoveries of $9 million in the current quarter (0.03% net recovery rate), compared with net charge-offs of $40 million (0.16% net charge-off rate) in the prior year and $12 million (0.04% net charge-off rate) in the prior quarter. The allowance for loan losses to period-end loans retained was 2.20%, down from 2.56% in the prior year and 2.32% in the prior quarter. Nonaccrual loans were $917 million, down by $717 million, or 44%, from the prior year, largely due to commercial real estate repayments and loan sales; and were down $87 million, or 9%, from the prior quarter.
Noninterest expense was $591 million, an increase of $28 million, or 5%, from the prior year, reflecting higher headcount-related² expense and regulatory deposit assessments.
Key Metrics and Business Updates:
(All comparisons refer to the prior-year quarter except as noted)

• Return on equity was 28% on $9.5 billion of average allocated capital.
• Overhead ratio was 35%, flat from the prior year.
• Gross investment banking revenue (which is shared with the Investment Bank) was $384 million, down by $58 million, or 13%.
• Record average loan balances were $118.4 billion, up by $16.6 billion, or 16%, from the prior year and $4.7 billion, or 4%, from the prior quarter.
• Record end-of-period loan balances were $120.5 billion, up by $17.8 billion, or 17%, from the prior year and $4.6 billion, or 4%, from the prior quarter.
• Average liability balances were $193.3 billion, up by $30.5 billion, or 19%, from the prior year and down by $6.9 billion, or 3%, from the prior quarter.

TREASURY & SECURITIES SERVICES (TSS)

Discussion of Results:
Net income was $463 million, an increase of $130 million, or 39%, from the prior year. Compared with the prior quarter, net income increased by $112 million, or 32%, driven by higher Global Corporate Bank credit allocation benefit and seasonal activity in securities lending and depositary receipts.
Net revenue was $2.2 billion, an increase of $220 million, or 11%, from the prior year. Treasury Services ("TS") net revenue was $1.1 billion, an increase of $144 million, or 15%. The increase was primarily driven by higher deposit balances, higher trade finance loan volumes, and spreads. Worldwide Securities Services net revenue was $1.1 billion, an increase of $76 million, or 8%, compared with the prior year, driven by higher deposit balances.
TSS generated firmwide net revenue² of $2.8 billion, including $1.7 billion by TS; of that amount, $1.1 billion was recorded in TS, $603 million in Commercial Banking, and $68 million in other lines of business. The remaining $1.1 billion of firmwide net revenue was recorded in Worldwide Securities Services.
Noninterest expense was $1.5 billion, an increase of $38 million, or 3%, from the prior year. The increase was driven by continued expansion into new markets.
Key Metrics and Business Updates:
(All comparisons refer to the prior-year quarter except as noted)

• Pretax margin² was 34%, compared with 27% in the prior year and prior quarter.
• Return on equity was 25% on $7.5 billion of average allocated capital.
• Average liability balances were $348.1 billion, up 15%.
• Assets under custody were $17.7 trillion, up 4%.
• End-of-period trade finance loans were $35.3 billion, up 28%.
• International revenue was $1.2 billion, up 12%, and represented 55% of total revenue.

ASSET MANAGEMENT (AM)

Discussion of Results:
Net income was $391 million, a decrease of $48 million, or 11%, from the prior year. These results reflected lower net revenue and higher provision for credit losses, partially offset by lower noninterest expense.
Net revenue was $2.4 billion, a decrease of $173 million, or 7%, from the prior year. Noninterest revenue was $1.9 billion, down by $287 million, or 13%, primarily due to lower performance fees, lower valuations of seed capital investments and the effect of lower market levels, partially offset by net product inflows. Net interest income was $512 million, up by $114 million, or 29%, primarily due to higher deposit and loan balances.
Revenue from Private Banking was $1.3 billion, up 4% from the prior year. Revenue from Institutional was $537 million, down 23%. Revenue from Retail was $486 million, down 12%.
Assets under supervision were $2.0 trillion, an increase of $44 billion, or 2%, from the prior year. Assets under management were $1.3 trillion, an increase of $5 billion, as net inflows to long-term products were offset by the effect of lower market levels and net outflows from liquidity products. Custody, brokerage, administration and deposit balances were $621 billion, up by $39 billion, or 7%, due to custody and deposit inflows.
The provision for credit losses was $34 million, compared with $12 million in the prior year.
Noninterest expense was $1.7 billion, a decrease of $93 million, or 5%, from the prior year, due to the absence of non-client-related litigation expense and lower performance-based compensation.
Key Metrics and Business Updates:
(All comparisons refer to the prior-year quarter except as noted)

• Pretax margin² was 27%, down from 29%.
• Assets under management reflected net inflows of $31 billion for the 12 months ended June 30, 2012. For the quarter, net outflows were $11 billion reflecting net outflows of $25 billion from liquidity products, largely offset by net inflows of $14 billion to long-term products. Net long-term product flows were positive for the thirteenth consecutive quarter.
• Assets under management ranked in the top two quartiles for investment performance were 74% over 5 years, 72% over 3 years and 65% over 1 year.
• Customer assets in 4 and 5 Star-rated funds were 43% of all rated mutual fund assets.
• Assets under supervision were $2.0 trillion, up 2% from the prior year and down 2% from the prior quarter.
• Average loans were $67.1 billion, up 37% from the prior year and 13% from the prior quarter.
• End-of-period loans were $70.5 billion, up 36% from the prior year and 10% from the prior quarter.
• Average deposits were $128.1 billion, up 31% from the prior year and flat to the prior quarter.

CORPORATE/PRIVATE EQUITY

Discussion of Results:
Net loss was $1.8 billion, compared with net income of $502 million in the prior year.
Private Equity reported net income of $197 million, compared with net income of $444 million in the prior year. Net revenue of $410 million was down from $796 million in the prior year, primarily due to lower gains on sales and lower net valuation gains on private investments, partially offset by higher mark-to-market gains on public securities. Noninterest expense was $102 million, unchanged from the prior year.
Treasury and CIO reported a net loss of $2.1 billion, compared with net income of $670 million in the prior year. Net revenue was a loss of $3.4 billion, compared with net revenue of $1.4 billion in the prior year. The current quarter loss reflected $4.4 billion of principal transactions losses from a portfolio held by CIO, partially offset by securities gains of $1.0 billion. Net interest income was negative $30 million, compared with $450 million in the prior year, reflecting lower portfolio yields and the impact of higher deposit balances across the Firm.
Other Corporate reported net income of $104 million, compared with a net loss of $612 million in the prior year. Noninterest revenue was $552 million including a $545 million gain reflecting the expected full recovery on a Bear Stearns-related first-loss note. Noninterest expense of $335 million was down $736 million compared with the prior year. The current quarter included $335 million of additional litigation expense. The prior year included $1.3 billion of additional litigation expense, which was predominantly for mortgage-related matters.
JPMORGAN CHASE (JPM)^(*)

Discussion of Results:
Net income was $5.0 billion, down by $471 million, or 9%, from the prior year. The decrease in earnings was driven by lower net revenue, largely offset by lower noninterest expense and a lower provision for credit losses.
Net revenue was $22.9 billion, down by $4.5 billion, or 16%, compared with the prior year. Noninterest revenue was $11.6 billion, down by $3.9 billion, or 25%, from the prior year, due to $4.4 billion of principal transactions losses from a portfolio held by CIO and lower investment banking fees, partially offset by higher mortgage fees and related income. Net interest income was $11.3 billion, down by $616 million, or 5%, compared with the prior year, reflecting the impact of low interest rates, as well as lower trading asset balances, higher financing costs associated with mortgage-backed securities, and the runoff of higher-yielding loans, largely offset by lower other borrowing and deposit costs.
The provision for credit losses was $214 million, down $1.6 billion, or 88%, from the prior year. The total consumer provision for credit losses was $171 million, down $1.8 billion from the prior year. The decrease in the consumer provision reflected a $2.1 billion reduction of the related allowance for loan losses predominantly related to the mortgage and credit card portfolios as delinquency trends improved and estimated losses declined, and to a lesser extent, a refinement of our incremental loss estimates with respect to certain borrower assistance programs. Consumer net charge-offs¹ were $2.3 billion, compared with $3.0 billion in the prior year, resulting in net charge-off rates of 2.51% and 3.25%, respectively. The wholesale provision for credit losses was $43 million compared with a benefit of $117 million. The current quarter provision primarily reflected loan growth and other portfolio activity. Wholesale net charge-offs were $9 million, compared with $80 million in the prior year, resulting in net charge-off rates of 0.01% and 0.14%, respectively. The Firm's allowance for loan losses to end-of-period loans retained¹ was 2.74%, compared with 3.83% in the prior year. The Firm's nonperforming assets totaled $11.4 billion at June 30, 2012, down from the prior-year level of $13.4 billion and down from the prior-quarter level of $12.0 billion.
Noninterest expense was $15.0 billion, down $1.9 billion, or 11% from the prior year driven by lower noncompensation expense. The prior year noninterest expense included a total of $2.3 billion for additional litigation expense, predominantly for mortgage-related matters, and expense for the estimated costs of foreclosure-related matters.
Key Metrics and Business Updates:
(All comparisons refer to the prior-year quarter except as noted)

• Basel I Tier 1 common ratio¹ was 10.3% at June 30, 2012, compared with 10.3%⁴ at March 31, 2012, and 10.1% at June 30, 2011.
• Headcount was 262,882, an increase of 12,787, or 5%.

1. Notes on non-GAAP financial measures:

1. In addition to analyzing the Firm's results on a reported basis, management reviews the Firm's results and the results of the lines of business on a "managed" basis, which is a non-GAAP financial measure. The Firm's definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the business segments) on a fully taxable-equivalent ("FTE") basis. Accordingly, revenue from tax-exempt securities and investments that receive tax credits is presented in the managed results on a basis comparable to taxable securities and investments. This non-GAAP financial measure allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business.
   
2. The ratio of the allowance for loan losses to end-of-period loans excludes the following: loans accounted for at fair value and loans held-for-sale; purchased credit-impaired ("PCI") loans; and the allowance for loan losses related to PCI loans. Additionally, Real Estate Portfolios net charge-off rates exclude the impact of PCI loans. The allowance for loan losses related to the PCI portfolio totaled $5.7 billion, $5.7 billion and $4.9 billion at June 30, 2012, March 31, 2012, and June 30, 2011, respectively. In IB, the ratio for the allowance for loan losses to end-of-period loans is calculated excluding the impact of consolidation of Firm-administered multi-seller conduits effective on January 1, 2010, to provide a more meaningful assessment of the IB's allowance coverage.
   
3. Tangible common equity ("TCE") represents common stockholders' equity (i.e., total stockholders' equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. Return on tangible common equity measures the Firm's earnings as a percentage of TCE. In management's view, these measures are meaningful to the Firm, as well as analysts and investors, in assessing the Firm's use of equity, and in facilitating comparisons with peers.
   
4. The Basel I Tier 1 common ratio is Tier 1 common divided by risk-weighted assets. Tier 1 common is defined as Tier 1 capital less elements of Tier 1 capital not in the form of common equity, such as perpetual preferred stock, noncontrolling interests in subsidiaries, and trust preferred capital debt securities. Tier 1 common, a non-GAAP financial measure, is used by banking regulators, investors and analysts to assess and compare the quality and composition of the Firm's capital with the capital of other financial services companies. The Firm uses Tier 1 common along with other capital measures to assess and monitor its capital position. On December 16, 2010, the Basel Committee issued the final version of the Basel Capital Accord, commonly referred to as "Basel III." The Firm's estimate of its Tier 1 common ratio under Basel III is a non-GAAP financial measure and reflects the Firm's current understanding of the Basel III rules and the application of such rules to its businesses as currently conducted, and therefore excludes the impact of any changes the Firm may make in the future to its businesses as a result of implementing the Basel III rules. The Firm's estimates of its Basel III Tier 1 common ratio will evolve over time as the Firm's businesses change, and as a result of further rule-making on Basel III implementation from U.S. federal banking agencies. Management considers this estimate as a key measure to assess the Firm's capital position in conjunction with its capital ratios under Basel I requirements, in order to enable management, investors and analysts to compare the Firm's capital under the Basel III capital standards with similar estimates provided by other financial services companies. The Firm's understanding of the Basel III rules is based on information currently published by the Basel Committee and U.S. federal banking agencies.
   
5. In Card Services & Auto, supplemental information is provided for Card Services, to provide more meaningful measures that enable comparability with prior periods. The net charge-off rate and 30+ day delinquency rate presented include loans held-for-sale.

2. Additional notes on financial measures:

1. Headcount-related expense includes salary and benefits (excluding performance-based incentives), and other noncompensation costs related to employees.
   
2. Treasury & Securities Services firmwide metrics include certain TSS product revenue and liability balances reported in other lines of business related to customers who are also customers of those other lines of business. In order to capture the firmwide impact of TSS products and revenue, management reviews firmwide metrics such as liability balances, revenue and overhead ratios in assessing financial performance for TSS. Firmwide metrics are necessary, in management's view, in order to understand the aggregate TSS business.
   
3. Pretax margin represents income before income tax expense divided by total net revenue, which is, in management's view, a comprehensive measure of pretax performance derived by measuring earnings after all costs are taken into consideration. It is, therefore, another basis that management uses to evaluate the performance of TSS and AM against the performance of their respective peers.
   
4. d. Credit card sales volume is presented excluding Commercial Card. Rankings and comparison of general purpose credit card sales volume are based on disclosures by peers and internal estimates. Rankings are as of 1Q12.
5. The amount of credit provided to clients represents new and renewed credit, including loans and commitments. The amount of credit provided to small businesses reflects loans and increased lines of credit provided by Consumer & Business Banking, Card Services & Auto and Commercial Banking. The amount of credit provided to not-for-profit and government entities, including states, municipalities, hospitals and universities, represents that provided by the Investment Bank.

3. Financial restatement:
On July 13, 2012, JPMorgan Chase & Co. reported that it will be restating its previously-filed interim financial statements for the first quarter 2012. The restatement will have the effect of reducing the Firm's reported net income for first quarter 2012 by $459 million. The first quarter 2012 amounts in this release reflect the effects of such restatement. For further information, see the Company's Current Report on Form 8-K dated July 13, 2012, which has been filed with the Securities and Exchange Commission and is available on the Company's website (http://investor.shareholder.com/jpmorganchase) and on the Securities and Exchange Commission's website (www.sec.gov).
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.3 trillion and operations worldwide. The firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
JPMorgan Chase & Co. will host a conference call today at 7:30 a.m. (Eastern Time) to present second-quarter financial results and an update on CIO. The general public can access the call by dialing (866) 541-2724 or (877) 368-8360 in the U.S. and Canada, or (706) 634-7246 for international participants. Please dial in 10 minutes prior to the start of the call. The live audio webcast and presentation slides will be available at the Firm's website, www.jpmorganchase.com, under Investor Relations, Investor Presentations.
A replay of the conference call will be available beginning at approximately noon on July 13, 2012 through midnight, July 27, 2012 by telephone at (855) 859-2056 or (800) 585-8367 (U.S. and Canada) or (404) 537-3406 (international); use Conference ID# 87040825. The replay will also be available via webcast on www.jpmorganchase.com under Investor Relations, Investor Presentations. Additional detailed financial, statistical and business-related information is included in a financial supplement. The earnings release and the financial supplement are available at www.jpmorganchase.com.
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase & Co.'s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase & Co.'s actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan Chase & Co.'s Annual Report on Form 10-K for the year ended December 31, 2011, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, each of which has been filed with the Securities and Exchange Commission and is available on JPMorgan Chase & Co.'s website (http://investor.shareholder.com/jpmorganchase) and on the Securities and Exchange Commission's website (www.sec.gov). JPMorgan Chase & Co. does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

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¹ For notes on non-GAAP measures, including managed basis reporting, see page 14.
² Comparisons below are versus prior year.
³ For additional notes on financial measures, see pages 14 and 15.
⁴ On July 13, 2012, JPMorgan Chase & Co. reported that it will be restating its previously-filed interim financial statements for the first quarter 2012. See note 3 on page 15.
⁵ The Firm holds a $1.15 billion first-loss note issued by Maiden Lane LLC, which was established by the Federal Reserve to purchase certain assets from Bear Stearns in March 2008. The Federal Reserve's senior note has been completely paid. The Firm received partial repayment in 2Q12 and now expects to recover the full value of its first-loss note.

^* For now, CIO will retain a portfolio of approximately $11 billion notional amount of mark-to-market positions as an economic hedge for certain credit exposures of the investment securities portfolio and tail risk for the portfolio. This long protection (i.e., short credit) is simple, transparent and easy to explain and will likely be reduced over time.