On July 14, 2023, JPM (J.P. Morgan Chase) will release financial information. J.P. Morgan's stock price has only risen 4% in the past six months, while the S&P 500 rose 13% during the same period. In a market where net spreads continue to expand, J.P. Morgan's stock price performance lags behind the market. Therefore, it is necessary to analyze whether the current “market pricing error” or “there is a real shortage in the JPM business” from a specific business perspective.
I. Business introduction
First, the JPM business was split. J.P. Morgan Chase has 4 business divisions and 1 corporate division. The business segment targets consumer business and retail business. The consumer business is the consumer and community banking business (“CCB”) division. The retail business includes corporate and investment banking (“CIB”), commercial banking (“CB”), and asset and wealth management (“AWM”).
1. Consumer and Community Banking CCB: Provides products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. Specific businesses include banking and wealth management (deposits, investment and loan products, cash management, payments and services), home loans, credit card services, and auto loans and leasing services. This business is highly correlated with the overall recovery of the US economy and the level of risk-free interest rates.
2. Corporate and Investment Banking Department CIB: Mainly provides banking business, market and securities business. Among them, the banking business is business financing consulting, payment business...