Comparison of websites and financial performance of bank of america, jp morgan and wachovia Essay
Comparison of websites and financial performance of bank of america, jp morgan and wachovia.
This project has been undertaken to compare and contrast Bank of America, JP Morgan chase and Wachovia bank. The analysis will be focused on the products and services of the three banks.
Wachovia bank was incorporated in the United States of America and is a listed a security exchange in the USA. Apart from the business of banking the bank has many affiliates some trading in the name of Wachovia securities. “Wachovia securities is trade business name used by three separate, registered broker-dealers and non-bank affiliates of Wachovia Corporation. Retail securities brokerage services offered through Wachovia Securities, LLC, Member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, Member NASD/SIPC. Corporate and Investment Banking services offered through Wachovia Capital Markets, LLC member NYSE, NASD, and SIPC.”
Insurance products are offered through non-bank affiliates of Wachovia Corporation and are underwritten by unaffiliated insurance companies. The bank offers retirement planning and investing to their customers. This gives their customers’ options from which they choose the kind of retirement to go to best befitting once income and future plans. The bank has affiliates that deal with investment. The investment banking section assists customers to make sound investments. Their duty is to make investments on behalf their customers.
They have other services like insurance of life insurance, Auto insurance, Home insurance and health insurance. These forms of insurances are handled by affiliates of the bank but reporting directing to the management. They also offer tools, services, and research that assist in the management of the companies, to big corporate the company offers corporate and investment Banking, commercial banking, cash management, insurance, and other corporate services. Some clients are offered services of wealth management that is they help in managing, helping in growth and transfer of wealth. Banking section has offers the following services checking, saving, credit cards, check cards and in lending they offer mortgages, home equity, education loans and vehicle loans.
JP Morgan Chase
JP Morgan Chase is incorporated in the United States of America and trading in the New York stock exchange. They are headquartered in the New York and Chicago for various services. They have become one of leading global financial services firm with assets of totaling to $1.5 trillion. They have operations in more than fifty countries with approximately 170,000 employees. Among the customers of bank include millions of Americans, corporate, other institutions and governments. They have become leader in offering investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity placing. The bank offers a variety of services to various groups of individuals, corporate, and other stakeholders’ consumer and commercial banking businesses which include Credit card, Small business, Home finance, Auto and education finance, Insurance, Middle Market, Corporate, Commercial Real Estate, Business Credit and Equipment Leasing. The company has many brands which include JPMorgan Chase, JPMorgan and Chase which are currently used in the marketplaces to deliver community partnership capabilities around the world.
Bank of America
BANK OF America is rich “in history and possibility, today’s Bank of America was formed in 1998 through a merger between California-based BankAmerica and NationsBank of North Carolina. This union created the first truly nationwide bank, with offices coast-to-coast and in dozens of countries around the world.
As our young nation struggled for independence and prosperity, so too did the predecessor banks that would one day become Bank of America. Eight years and one day after John Hancock signed the Declaration of Independence, his signature also appeared on the nation’s first nationally chartered bank, the Massachusetts Bank, in 1784. Just 50 miles away and seven years later, the Providence Bank was founded. These two banking institutions grew, as the region and nation grew. They evolved separately, but along parallel paths, as they helped fuel the commerce and economic development of the region and country. The Massachusetts Bank financed the first American ship to sail to China in 1786 and then the first ship to sail to Argentina in 1791. Financing early trade and the soon-to-develop industrial revolution were key contributions of both banks, as factories sprung up throughout New England and goods began to flow in and out of the region.
Many hardworking people poured their energy into building the banks that formed the foundation of Bank of America. These banks were started at different times in different communities, yet they shared a common purpose – to help people in their communities succeed and realize their dreams. In 1805 on Maryland’s Eastern Shore, local farmers formed the Farmer’s Bank to supply capital to their rural community. In 1847 in St. Louis, George Knight Budd started Boatmen’s Bank to help riverboat workers. In 1857, leaders in Chicago opened the bank that later became Continental Illinois. Dexter Horton had provided safekeeping in his store for the savings of mill hands, trappers and miners in Seattle since 1855, and founded Seattle’s first bank in 1870, which later became Seafirst. In 1874, Commercial National Bank was founded in charlotte with the motto “Ask those we serve.“ Banking for All
By the turn of the 20th century, waves of immigrants were moving to the new American West. A.P. Giannini, the son of Italian immigrants, opened the Bank of Italy in San Francisco in 1904 to serve these new Californians. When San Francisco was devastated by the 1906 earthquake and fire, Giannini made loans to rebuild using a waterfront desk made of two barrels and a plank. He pioneered the concept of statewide branch banking, gathering small deposits from working people and moving that capital to where it was needed most throughout California.” Recent report from the company.
Comparison of websites
Wachovia bank: when browsing their website you will find many sections of the web however the treasury access section of the bank following information. This has been adapted from their website “Logon Information: Participants should enter Wachovia assigned Logon ID and Password. First time users should enter the Logon ID and initial Password sent with the Welcome mailing. If you have other questions about logging on to Treasury Access, please contact our Technical Consulting Hotline at 1-800-326-7288. Information Reporting: The Report Selection area of the Participant Menu displays the reports assigned to the Treasury Access Participant currently logged on the system. Clicking on any of the items in the menu will link you to a Criteria Selection screen to help you build a report of the data you wish to see. Enter Criteria Selection: The Criteria Selection Screen allows you to enter date and/or amount parameters which will define the data appearing on your report. Account Download: Account Download allows you to save a file of your previous and current day information for use in other spreadsheet or software packages. The file is saved as an ascii, comma-delimited file. Options available are current day details, previous day balances and previous day details. Current Day Details: Current Day Details allows you to download and save a file containing transactions that have been processed through the bank and will post to your account that night. The file is in an ascii, comma-delimited file format with the following sections: date, account number, short description, dr/cr indicator, dollar amount, BAI code, reference number and additional description. Previous Day Balances: Previous Day Balances allows you to download and save a file containing your account balances as of last night’s account posting. The file is in an ascii, comma-delimited file format with the following sections: date, account number, ledger balance, total credits, closing available, opening available, total debits, one day float, two day float, over two day float, total float, total number of credits and total number of debits. Previous Day Details: Previous Day Details allows you to download and save a file containing transactions that have been processed and posted to your account the previous night. The file is in an ascii, comma-delimited file format with the following sections: date, account number, short description, dr/cr indicator, dollar amount, BAI code, reference number and additional description.
Electronic Payments: ACH allows you to initiate payments through the Automated Clearing House system. These payments will be processed electronically with an effective date one business day after entry. Wire Transfer allows you to initiate payments using the FedWire system. These payments will be processed electronically for immediate payment and availability. ACH: ACH allows you to initiate payments through the Automated Clearing House system. These payments will be processed electronically with an effective date one business day after entry. ACH Entry : ACH Entry allows you to enter ACH transactions for previously defined locations. By choosing a location number and entering an amount, you will initiate a debit or credit payment to be processed electronically through the Automated Clearing House system. For a list of your locations, see Location Inquiry. ACH Verify: ACH Verify allows you to verify ACH transactions entered by other operators at your institution. You can either verify or cancel the transactions. Any transactions not verified by the end of the day will be dropped from the system. ACH Cancel:
ACH transactions can be cancelled in two ways. You can cancel a transaction through the Verify function for those transactions that you are eligible to verify, or you can cancel the transactions through the transaction inquiry report. ACH Transaction Inquiry : ACH Transaction Inquiry allows you to inquire on any ACH transactions that have been processed to your accounts. Criteria to be selected include account number and effective date. The effective date is the date on which the transaction will be settled. ACH Location Inquiry : ACH Location Inquiry allows you to inquire on the setups for your locations. Criteria to be selected include location number and account. ACH Origination Report: ACH Origination Report allows you to look at your ACH entries that were originated through Wachovia Bank. Criteria to be selected include account and effective date. The effective date is the date on which the transaction will be settled. Wire Transfer: Wire Transfer allows you to initiate payments using the FedWire system. These payments will be processed electronically for immediate payment and availability. Wire Transfer Entry : Wire Transfer Entry allows you to enter wire transactions for previously defined line sheets. By choosing an account number, line sheet and entering an amount, you will initiate a debit or credit payment to be processed electronically through the FedWire system. For a list of your line sheets, see Line Sheet Inquiry. Wire Transfer Verify/Cancel: Wire Transfer Verify/Cancel allows you to verify or cancel a wire that has been initiated by another operator in your institution. Any wires not verified by the end of the day will be deleted from the system.
Wire Transfer Cancel: Wire Transfer Cancel allows you to cancel a future dated wire transfer. Wire Transfer Outgoing Inquiry: Wire Transfer Outgoing Inquiry allows you to pull reports on the wires that have been originated. Criteria to be selected include account number, effective dates, control number. Wire Transfer Line Sheet Inquiry: Wire Transfer Line Sheet Inquiry allows you to review the preset information for your wire transfer line sheets. Criteria to be selected include account number and line sheet number. Transaction Search: The Transaction Search Feature allows you to specify the parameters the system uses to generate a Transaction Search online report. You can use the Transaction Search Criteria Dialog to search for either credit or debit information using specified serial/ check number ranges, amount ranges, or date ranges. If serial number criteria is not included, then both amount and date criteria are required. Change Password: The system stores a user defined password for access to the system. Upon your first Logon to Treasury Access, you will be required to change your password. If you wish to change your password at any other time, you can do so by selecting the Change Password menu item from the Participant Menu. Passwords must be 8 characters without vowels and cannot be the same as your most recent password. The system prompts you with the Change Password window automatically when your password has expired after 30 days. If you receive the Change Password window automatically, you need to enter your old and a new password.” From the web we can realize that the has great security thus attracting customers for on line banking.
Bank of America: while browsing the website of bank of America you will find the “In the Community: Community | Corporate Philanthropy | Environment | Sponsorships | Team Bank of America.Careers at Bank of America :Career Opportunities | Global Corporate & Investment Banking Careers.Bank of America News:Newsroom | Newsroom . Shareholders & Investors: Investor | Annual Report | Prime Rate | Bank of America Stock | Governance. Privacy & Security: Overview. Our History: Center. Accessible Banking: Overview | Talking ATMs | Banking from Home or Office | Accessible Accounts and Services. Suppliers: Supplier | Global Operations & Supplier Relationship Development. Global Reach: Asia | Europe, Middle East, Africa | Latin America | U.S. and Canada “the first visitor to the web will find the above appearance of the web. In the community section the corporate social responsibility of the company is clearly stated. For an international visitor you will find an area for global out reach. in this area you will be able to access the area you wish to access.
JP Morgan chase
In this website you will encounter areas of home page, privacy/security. In the home page you will find areas to visit like about us, business, principles, governance, leadership team, newsroom, history, suppliers, and board of directors. In the section of about us you will find the following message ” JPMorgan Chase (NYSE: JPM) is a leading global financial services firm with assets of $1.5 trillion. We operate in more than 50 countries. We have more than 170,000 employees. We serve millions of U.S. consumers and many of the worlds most prominent corporate, institutional and government clients. We are a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. We are a component of the Dow Jones Industrial Average. Our corporate headquarters are in New York and our U.S. consumer and commercial banking headquarters are in Chicago. Our brands
JPMorgan Chase is the brand used by the firm’s subsidiaries and by our Treasury Services business and our Community Development Group.
JPMorgan clients include the world’s most prominent corporations, governments, wealthy individuals and institutional investors. The following businesses use the JPMorgan brand:
Worldwide Securities Services
One Equity Partners
Private Client Services
The U.S. consumer and commercial banking businesses serve customers under the Chase brand. The consumer businesses include:
Auto and education finance
The commercial banking businesses include:
Commercial Real Estate
Information about Chase capabilities can be found on chase.com.
The brands JPMorgan Chase, JPMorgan and Chase are currently used in the marketplace to deliver community partnership capabilities around the world. Leadership in community partnership is part of the enduring culture of JPMorgan Chase.”
ASSESSMENT OF PERFORMANCE
Bank of America financial statement analysis
Net interest income $16,654 $17,406
Non interest income (1) 21,064 18,504
Total revenue, net of interest expense 37,718 35,910
Provision for credit losses 3,045 2,275
Non interest expense 18,190 17,641
Income tax expense 5,467 5,533
Net income 11,016 10,461
Diluted earnings per common share 2.44 2.25
Average diluted common shares issued
and outstanding 4,487,224 4,636,959
Dividends paid per common share $1.12 $1.00
Return on average assets 1.44 % 1.47 %
Return on average common shareholders’ equity 16.86 16.34
At period end
Book value per share of common stock $29.95 $28.17
Tangible book value per share of common stock (2) 15.11 13.58
Market price per share of common stock:
Closing price $48.89 $48.10
High closing price for the period 54.05 50.47
Low closing price for the period 48.80 43.09
Market capitalization 216,922 217,794
Number of banking centers – domestic 5,749 5,779
FINANCIAL PERFORMANCE OF THE BANK
Bank of America
JB Morgan chase
Return on Assets
Net Profit x100% Total Assets
Return on Capital
Net Profit x100% Capital employed
Return on Equity
Net Profit x100% Total Equity
Asset turn over
Current Assets-stock Total Assets
Debt to Equity
Price earning Ratio
From the table above analyzing the performance of he banks we realize that the bank of America was performing very well in terms of price earning ratio return equity return on total assets return on capital employed. The bank also has better credit ratios as they can as they can pay their creditors, and meet short-term obligations.
Wachovia bank is also doing well in terms of performance compared to JB Morgan chase bank.
Wachovia bank has better return and can meet short term obligations with his as compared to JB Morgan chase,
When it comes to solvency Bank of America is doing excellent because the bank has the branches all over the world. The bank of America has high earning ratio as compared to the other banks this is because the share holders and investors have confidence into share s of he bank.
The banks websites have save the banks purposes of marketing and exposing the banks to the real as desired. The comparison in terms of the websites is as follows.
Bank of America
Services and Products offered
When browsing the website of the bank will encounter at home page the describing the banks corporate social responsibility, careers, markets of the bank, services, shareholders and accessibility and other description. In my opinion the banks website meets the can objective of selling their services. Thus attaining the organizational goals.
Upon browsing the site for this bank you will encounter the section of personal finances where the company’s products and services are well represented. The products and services are listed. In the corporate section product and services are listed for corporate clients. Depending who is accessing the website it serves very well.
In the area of home page and about us you fin the company products articulated well plus some history. In my case I will recommend the company to divorce from this page brand and take them to a page called our products and services. Otherwise as it is now is serving them well.
Privacy and security
When trying to access some of the bank account section you are asked to input login password. this ensures that customer details are protected.
This bank has many products that can be accessed through online. you can not be able to access any of the services without in putting pass word and username
JP Morgan encourages online banking like the other two banks. For online visiting customer is required to input a password and user name this protects the customer finances from fraudsters.
Bank news and information
There is a page for bank news and information. In this section, one will find banks financial statements, banks plans and other news that are of interest to stakeholders and customers.
The company has press release section. Where all news is release to for the public and press. Unlike the Bank of America with a defined page for bank news and information, this page has only press releases
This bank has section where you will find all press releases called newsroom.
From the discussions and comparison of the three banks in the table above, the websites seems to be serving the customers of the banks very well and the new visitors. This can be observed from the growth in the international arena. Each of the three banks has grown internationally thus increasing revenue income and profits for the shareholders.
Banks like any other institutions must be ready to handle risk. There are a number of risks that needs to be handling by these banks as they are doing business abroad. they include
Economic risks: This involves how economic development in the host country affects businesses. For any bank that invested in the certain country, economic health of that state must be assessed regularly. The measures of economic risks include gross domestic per capital (GDP) growth, Employment, savings and investments rates of the citizens, inflation and devaluation rates, external account balance, foreign debt currency reserves and government management of fiscal policy.
Political risks: Political stability of countries in which the bank has invested in is of paramount importance. If there appears to the bank that there is a like hood that apolitical situation of a country is becoming unsound for business operation then the management should take appropriate decision.
New York stock exchange website.
Gapenski l, Eugene Brigham; Financial Management: Theory and Practice; Dryden Press, 1994
Neil Seitz; Capital Budgeting and Long-term financing Decisions; Thomson Learning, 2004
Samuel Weaver, John Weston; Finance and Accounting for non-financial Managers; Mc Graw-Hill, 2001
Hugh Dalton; Principles of Public Finance; Routledge, 1997