Turning Variables into Knowledge

Introduction
This paper is a statistical analysis and presentation of JP Morgan Chase Bank customer-
based statistics. JP Morgan Chase is a financial institution that provides banking, financial
investment, and advisory services primarily based in the United States. JPMorgan Chase is
publicly traded in the major stock markets globally. This analysis focuses on financial
information from the last five years between 2021 and 2017. The information has been retrieved
from the Mergent Online database. The metrics that have been considered for this paper are net
revenues, marketing expenses, and compensation expenses.
Net Revenues

Year ended 31st DecemberNet Revenues (m)Percentage of Revenues
2017USD 99,624.0017.62%
2018USD 109,029.0019.28%
2019USD 115,627.0020.45%
2020USD 119,543.0021.14%
2021USD 121,649.0021.51%
RevenuesUSD 565,472.00100.00%

The table above shows the JPMorgan Chase net revenues for the years 2017 -2021. The data has
been presented in US dollar millions. The data has been obtained from Mergent Online database.

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20172018201920202021

0.00
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
120,000.00
140,000.00

99,624.00

109,029.00

115,627.00119,543.00121,649.00

JPMorgan Chase Net Revenues (Millions)

Net Revenues (Millions)

18%

19%

20%

21%
22%

JPMorgan Chase Net Revenues

2017
2018
2019
2020
2021

The net revenue analysis shows that JPMorgan Chase has been getting positive responses
from its customer base. The sales have been growing steadily between 2017 and 2021, as can be

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clearly seen in the frequency table. This can also be an indication that JPMorgan Chase has been
widening its customer base. This analysis has taken a cumulative approach that sums the sales
for the 5 years in question to identify the year with the most sales. It is evident that 2017 had the
least sales at 18%, while 2021 had 22%.

Marketing expense

YearMarketing expensePercentage
20213,036.00 19.87%
20202,476.00 16.20%
20193,579.00 23.42%
20183,290.00 21.53%
20172,900.00 18.98%
Total15,281.00 100.00%

The marketing expense includes all financial resources that JPMorgan Chase dedicated to
marketing campaigns, such as sponsorships, display ads, and all activities meant to support sales
activities. JPMorgan Chase’s expenditure on marketing increased steadily between 2017 and
2019 and reduced in 2020. This reduction could be explained by the COVID-19 pandemic that
was rife at the time (Hoekstra & Leeflang, 2020). In the year 2021, the marketing expenditure
increased to US$3 billion. Despite the reduction in marketing expenses in the 2020 financial
year, there was an increase in net revenues. This is an indication that the previous marketing
activities contributed significantly towards strengthening of the brand name.

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20%

16%

23%

22%
19%
Marketing expense

2021
2020
2019
2018
2017

20212020201920182017

0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
4,000.00

3,036.00

2,476.00

3,579.00

3,290.00

2,900.00

Marketing expense (Millions)

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Marketing is an essential customer metric because it is the primary way that
organizations increase their visibility. Marketing activities are designed to impress customers. In
the course of marketing, many organizations collect customer data with the view of improving
service offerings and in effect, firm’s performance (Kumar & Petersen, 2005). JPMorgan has its
revenues from various customer sources such as cards, mortgages, investments, lending, and
asset management fees.

Compensation Expense

YearCompensation expense (M)Percentage
202138,567.00 22.44%
202034,988.00 20.36%
201934,155.00 19.88%
201833,117.00 19.27%
201731,009.00 18.05%
Total171,836.00 100.00%

20172018201920202021

0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00

31,009.00

33,117.0034,155.0034,988.00

38,567.00

Compensation expense (Millions)

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22%

20%

20%
19%
18%
Compensation expense

2017
2018
2019
2020
2021

Compensation expense relates to the expense that JPMorgan Chase committed to paying
salaries, commission, incentives, and rewards. This is an important metric because organizations
dedicate financial resources to motivate employees to become better serve customers (Khan et
al., 2011). Compensation expense has been increasing over time which can be explained for
several reasons. It could mean that employees’ salaries are increasing progressively or that the
organization is increasing its wage bill by recruiting more to better handle customer needs.
Application of the charts in analysis
The charts were useful in showing trends and patterns. The bar charts were effective in
showing the changes between the different metrics, and this helps to easily identify trends and
patterns (Azam et al., 2013). This makes it easy for anyone to critically analyze the data without
having to read too much information.

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The charts enhance data visualization (Azzam et al., 2013). For example, through the bar
graph, one can clearly see the changes in the metrics. For example, the steady increase in net
revenues can be clearly observed in the bar graph.
The charts were useful in summarizing the data. The charts carry information that
summarizes the data making it easy to understand and process. For example, while noting that
the net revenues in 2017 were 18% and in 2021 was 22%, one can easily tell that the difference
between sales in the 5 years is 4%.
Conclusion
The analysis above demonstrates a company that has a healthy financial performance and
an increasingly impressive relationship with its customers. JPMorgan Chase has been able to
increase its revenues over the five years between 2017 and 2021. It has also been able to increase
customer related expenditure such as compensation expense and marketing.

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References

Azzam, T., Evergreen, S., Germuth, A. A., & Kistler, S. J. (2013). Data Visualization and
Evaluation. New Directions for Evaluation, 2013(139), 7–32.
https://doi.org/10.1002/ev.20065
Hoekstra, J. C., & Leeflang, P. S. H. (2020). Marketing in the era of COVID-19. Italian Journal
of Marketing, 2020(4), 249–260. https://doi.org/10.1007/s43039-020-00016-3
Khan, R. I., Aslam, H. D., & Lodhi, I. (2011). Compensation Management: A strategic conduit
towards achieving employee retention and Job Satisfaction in Banking Sector of Pakistan.
International Journal of Human Resource Studies, 1(1), 89.
https://doi.org/10.5296/ijhrs.v1i1.809
Kumar, V., & Petersen, J. A. (2005). Using a Customer-Level Marketing Strategy to Enhance
Firm Performance: A Review of Theoretical and Empirical Evidence. Journal of the
Academy of Marketing Science, 33(4), 504–519.
https://doi.org/10.1177/0092070305275857
Mergent Online (2022) JPMorgan Chase. Company Financials. Online. Available at
https://login.ezproxy.umgc.edu/login?qurl=http://www.mergentonline.com%2fcompsearch.asp