Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Merger or Acquisition (April 2006)
13 slides from Jp Morgan Chase &'s merger presentation, Apr 11, 2006
Slide 1: Investor Presentation: Acquisition of Bank of New York's retail businesses
APRIL 10, 2006 INVESTOR PRESENTATION Acquisition of Bank of New York’s consumer, small- business and middle-market banking businesses in exchange for JPMorgan Chase’s corporate trust business
Slide 2: Forward-looking statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and uncertainties. Actual results
Slide 3: Strategic rationale
Strategic rationale Acquisition of BK’s consumer, small-business and middle-market banking significantly enhances Tri-state franchise High-quality customer and deposit base Expands presence in attractive suburban locations Balanced opportunity - cost savings and significant opportunity to grow BK br
Slide 4: Transaction overview
Transaction overview Key terms Businesses exchanged: JPM acquires BK’s consumer, small business and middle market units (BK’s Retail & Middle Market Banking segment) JPM sells to BK corporate trust business1 Valuation & consideration: JPM and BK to swap Trust (premium of $2.15bn) and Retail (premium
Slide 5: Financial impact to JPM
Financial impact to JPM Estimated $600-$700mm after-tax gain at closing Estimated earnings impact to JPM immaterial in 2007; modestly accretive in 2008 Swap of businesses with roughly equivalent 2005 earnings -- approximately $250mm Expect cost savings to be partially offset by investments to upgrad
Slide 6: New York is a very attractive banking market
New York is a very attractive banking market Top 15 MSAs by Retail Deposits New York MSA in Perspective Deposit growth CAGR Deposits 2000-2005 2000-2005 Household Income: $87,481 MSA ($mm) ($mm) (%) 27% higher than national average New York 429,714 101,586 5.5 Los Angeles 237,331 76,829 8.1 Projecte
Slide 7: Acquisition significantly enhances Tri-state franchise
Acquisition significantly enhances Tri-state franchise What We Are Acquiring Consumer Banking Small Business 600,000 consumer clients 100,000 small business clients 338 branches; 400 ATMs $3.6 billion in deposits 238 branches in New York $0.7 billion in loans 117 in Northern suburbs1 85 on Long Isla
Slide 8: Suburban franchise complements city leadership
Suburban franchise complements city leadership Our Proforma Positioning in NY Tri-state 12 miles #1 with more than 750 branches1 #1 with deposits of approx. $80bn1 30 miles BK branches located in priority areas based upon projected growth BK JPM 8 1 Source: Company data. Proforma branches and deposi
Slide 9: Substantial growth opportunity
Substantial growth opportunity Production Statistics 2005 vs. 2004–Tri -state JPM BK 1 Checking account growth 1 JPM vs BK Nationalsales (per branch) Tri -statesales (per branch) Investment Sales 3x higher 4.5x higher Credit Cards 25x higher 35x higher Home Equity 4x higher 7x higher Mortgage 3x hig
Slide 10: Retain attractive & industry leading securities services and cash management businesses
Retain attractive & industry leading securities services and cash management businesses Corporate Trust business sold includes: Trustee and paying agent for CDO & ABS/MBS, Municipal, Corporate debt, Loan agency services, Document management1 Emphasis remains on strategic and high-value securities se
Slide 11: Summary
Summary Financially compelling transaction Significantly enhances retail leadership position in Tri-state market Unwavering commitment to invest in and grow securities services and cash management businesses 11
Slide 12: Appendix
JPMorganChase ©
Slide 13: Loan and deposit mix
Loan and deposit mix Acquired Loans and Deposits as of December 2005 ($ in billions) Loans Deposits Consumer $4.2 Noninterest bearing $5.5 Mortgage 1. 3 DDA 2.2 Home Equity 2.9 Savings 6.1 Small Business 0.7 Time 0.7 Middle Market & Commercial Real Estate 2.9 Total $7.8 Total $14.5 13
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