JP Morgan is considered to be the largest bank in the US. It is the seventh-largest bank in the world and has assets well over $3 trillion. JP Morgan’s market capitalization, as of December 2020, is $376 billion. JP Morgan has four main business segments, commercial banking, investment banking, consumer banking, and asset management. JP Morgan is one of the largest and most complex financial institutions in the world. The low interest rate environment has affected the net interest margins of banks. However, some banks have performed better than the others during the past few months. Investors should therefore consider such banks that have diversified business models which isn’t focused solely on retail banking or corporate banking alone.
JP Morgan’s Background
JP Morgan’s structure today is a result of the combination of several banks. These include Chase Manhattan Bank, Bank One, JP Morgan & Co, Bear Stearns, and Washington Mutual. Today, JP Morgan has a dominant position in nearly every segment in which it operates. It is one of the largest issuers of credit and debit cards, it is one of the largest investment banks in the world, and it ranks among the top three US-based merchant acquirers. JP Morgan is also one of the leading asset managers in the world with assets under management of more than $2 trillion.
JP Morgan’s stock last closed at $123.55 on 21st December 2020. The stock is up a significant 4.8% for the preceding month. On a year-to-date basis, JP Morgan’s stock is still down about 12.5%. However, the stock currently trades at a 2.9% dividend yield. The other large bank in the US, of comparable size to JP Morgan, is Bank of America. Its stock closed at $29.74 on 21st December 2020. Bank of America is up a staggering 8.5% over the preceding month. On a year-to-date basis, the stock is down 16% and Bank of America currently trades at a 2.4% dividend yield.