Our strength and security: Entrusting your assets to J.P. Morgan

As one of the strongest and best capitalized financial services firms in the world, we stand prepared to meet the long-term safety needs of our clients.

 

We understand how important it is to protect your wealth. It’s what we’re focused on more sharply than anything—and it’s been the hallmark of our firm for over 200 years. As a J.P. Morgan client, you benefit from three foundational qualities we keep among our highest priorities: A “Fortress Balance Sheet,” an experienced and trusted management team, and a laser focus on cybersecurity and fraud prevention.

Our size and strength are your protection

Our size, strength and discipline in maintaining strong capital ratios have enabled us to weather countless market cycles and to protect our clients during volatile times. In a recent letter to shareholders, Jamie Dimon, CEO of JPMorgan Chase, highlighted this commitment: “Nearly every year since the Great Recession, we have improved virtually every measure of financial strength, including many new ones. In the worst years of 2008 and 2009, JPMorgan Chase did absolutely fine—we never lost money and we continued to serve our clients."

What do we mean by our “Fortress Balance Sheet,” and what makes it unique? There are two key attributes that have enabled us to be consistently strong through the years: 

Loan-to-deposit ratio—This is used to measure a bank’s liquidity. In other words, the ease with which assets can be converted into cash without affecting their market price. The ratio is a comparison of a bank’s total loans to its total deposits over a period of time. If the ratio is too high, a bank may not have enough liquidity to cover unexpected events or requirements. If it’s too low, the bank may not be earning as much as it could be. The accompanying chart shows how our firm’s ratios have compared to other banks.

Common Equity Tier 1 Capital—This is the core capital that a bank holds. Regulators require banks to hold certain levels of Tier 1 and Tier 2 capital as reserves so that they’re able to absorb losses with minimal repercussions. The minimum Tier 1 capital ratio is 6% of the bank’s risk-weighted assets. Our firm’s ratio was greater than 13% in the fourth quarter of 2022—the highest among a broad representation of industry peers.

Drawing on over two centuries of accumulated knowledge

Ensuring we have strong financials and protecting our clients’ interests begin with our experienced leaders, who have weathered multiple financial crises and adhere to the strict requirements designed to keep client assets safe. We are continuously committed to:

• Assessment and management of risk at all times and in every market condition
• Prudent lending practices
• Appropriately conservative accounting practices
• Strong controls

A multilayered approach to cybersecurity and fraud protection

Risks to the safety of your assets extend beyond volatile markets, including the rising threat of cyber fraud. We are familiar with the schemes, scams and threats that face us all today, and we work diligently to keep your wealth as safe as possible. We invest hundreds of millions of dollars each year to protect client interests and assets, including:

• A $700 million annual investment in cybersecurity, in addition to a $12 billion annual investment in technology
• Education on cybersecurity and money movement controls remains a priority, with in-person client trainings and best practices to implement

We can help

The safety and security of our clients’ assets are our top priorities. Our goal is to help bring you peace of mind and for you to be confident that we will be here to guide you through turbulent times, just as we will in calmer environments. Please complete the Contact Us form to speak to a specialist about how we can help you and your family during these uncertain times, and to learn more about how J.P. Morgan protects clients’ assets.

*Source: World's Best for Ultra High Net Worth Individuals 2023 by Euromoney, February 2023