Bank Comparison Overview
Retail/Community vs. Money Center Bank
Regional Bank
M&T Bank
Total Assets
$212.4B
Net Income
$2.157B
ROE
12.93%
ROA
1.02%
Equity Capital
$16.68B
Equity/Assets
7.85%
Money Center Bank
JP Morgan Chase
Total Assets
$3.028T
Net Income
$34.002B
ROE
19.08%
ROA
1.12%
Equity Capital
$178.2B
Equity/Assets
5.88%
Why Compare These Two Banks?
Commercial banks are unique in the special services they perform and the level of regulatory attention they receive. As a result, financial statement analysis must account for the very different market niches that banks occupy.
M&T Bank is a large regional bank headquartered in Buffalo, NY. It relies more heavily on core deposits, traditional lending, and maintains higher equity ratios — typical of community/regional banks. It operates with lower purchased funds and less diversification into noninterest income sources.
JP Morgan Chase is the largest U.S. money center bank. It has greater access to purchased funds and capital markets, operates with lower equity ratios, generates significant noninterest income from trading and fees, and is far more active in off-balance-sheet activities including derivatives.
The Uniform Bank Performance Report (UBPR) provides peer group benchmarks for this type of cross-sectional analysis.
CAMELS Rating Framework
Regulators use CAMELS ratings (1–5 scale) to evaluate bank safety and soundness. Ratings rely heavily on financial statement data. A "1" is the strongest; "5" indicates near-term failure risk. Hover each component below.
C
Capital Adequacy
A
Asset Quality
M
Management
E
Earnings
L
Liquidity
S
Market Risk Sensitivity
Balance Sheet
All figures in $millions · % = share of total assets
M&T Bank
JP Morgan Chase
💡 Hover any row for the definition from lecture slides
Assets
M&T Bank — Assets ($M)
| Line Item | $M | % |
|---|---|---|
| ASSETS | ||
| Cash & Due from Depositories | 34,837 | 16.4% |
| Vault cash | 892 | 0.42% |
| Deposits at Federal Reserve | 32,987 | 15.5% |
| Deposits at other FIs | 687 | 0.32% |
| Cash items in process of collection | 270 | 0.13% |
| Investment Securities | 28,464 | 13.4% |
| Fed funds sold & RPs | 1,235 | 0.58% |
| U.S. Treasury & agency securities | 15,679 | 7.38% |
| Municipal securities | 4,568 | 2.15% |
| Mortgage-backed securities | 5,679 | 2.67% |
| Other debt & equity securities | 1,304 | 0.61% |
| Net Loans & Leases | 136,892 | 64.4% |
| Commercial & industrial loans | 24,568 | 11.6% |
| Loans secured by real estate | 64,457 | 30.3% |
| Consumer loans | 2,346 | 1.10% |
| Other loans | 1,235 | 0.58% |
| Leases | 987 | 0.46% |
| Reserve for loan & lease losses | -725 | -0.34% |
| Other Assets | 12,968 | 6.10% |
| Premises & fixed assets | 2,346 | 1.10% |
| Other real estate owned | 457 | 0.22% |
| Intangible assets | 3,568 | 1.68% |
| Other (misc.) | 6,598 | 3.11% |
| TOTAL ASSETS | 212,436 | 100% |
Liabilities & Capital
M&T Bank — Liabilities & Capital ($M)
| Line Item | $M | % |
|---|---|---|
| LIABILITIES | ||
| Total Deposits | 176,438 | 83.1% |
| Demand deposits | 28,193 | 13.3% |
| NOW accounts | 4,568 | 2.15% |
| MMDAs | 56,789 | 26.7% |
| Other savings deposits | 45,679 | 21.5% |
| Deposits in foreign offices | 2,346 | 1.10% |
| Total CDs | 38,863 | 18.3% |
| Borrowed Funds | 17,773 | 8.37% |
| Fed funds purchased & RPs | 8,568 | 4.03% |
| Other borrowed funds | 6,859 | 3.23% |
| Subordinated debentures | 2,346 | 1.10% |
| Other Liabilities | 1,546 | 0.73% |
| TOTAL LIABILITIES | 195,757 | 92.2% |
| EQUITY CAPITAL | ||
| Preferred stock | 0 | 0.00% |
| Common stock | 235 | 0.11% |
| Surplus & paid-in capital | 10,444 | 4.92% |
| Retained earnings | 6,000 | 2.82% |
| TOTAL EQUITY CAPITAL | 16,679 | 7.85% |
| TOTAL LIABILITIES & EQUITY | 212,436 | 100% |
Assets
JP Morgan Chase — Assets ($M)
| Line Item | $M | % |
|---|---|---|
| ASSETS | ||
| Cash & Due from Depositories | 646,339 | 21.3% |
| Vault cash | 14,567 | 0.48% |
| Deposits at Federal Reserve | 498,235 | 16.5% |
| Deposits at other FIs | 89,457 | 2.95% |
| Cash items in process of collection | 44,080 | 1.46% |
| Investment Securities | 746,339 | 24.6% |
| Fed funds sold & RPs | 156,789 | 5.18% |
| U.S. Treasury & agency securities | 289,457 | 9.56% |
| Municipal securities | 34,568 | 1.14% |
| Mortgage-backed securities | 178,946 | 5.91% |
| Other debt & equity securities | 86,579 | 2.86% |
| Net Loans & Leases | 1,128,216 | 37.3% |
| Commercial & industrial loans | 298,457 | 9.86% |
| Loans secured by real estate | 567,890 | 18.8% |
| Consumer loans | 245,679 | 8.11% |
| Other loans | 52,687 | 1.74% |
| Leases | 28,006 | 0.92% |
| Reserve for loan & lease losses | -18,578 | -0.61% |
| Other Assets | 211,678 | 6.99% |
| Intangible assets | 57,632 | 1.90% |
| Premises & fixed assets | 24,567 | 0.81% |
| Other real estate owned | 3,456 | 0.11% |
| Other (misc.) | 126,023 | 4.16% |
| TOTAL ASSETS | 3,028,379 | 100% |
Liabilities & Capital
JP Morgan Chase — Liabilities & Capital ($M)
| Line Item | $M | % |
|---|---|---|
| LIABILITIES | ||
| Total Deposits | 2,101,417 | 69.4% |
| Demand deposits | 621,961 | 20.5% |
| NOW accounts | 98,457 | 3.25% |
| MMDAs | 456,789 | 15.1% |
| Other savings deposits | 387,654 | 12.8% |
| Deposits in foreign offices | 234,568 | 7.75% |
| Total CDs | 301,989 | 9.97% |
| Borrowed Funds | 539,249 | 17.8% |
| Fed funds purchased & RPs | 198,137 | 6.54% |
| Other borrowed funds | 284,323 | 9.39% |
| Subordinated debentures | 56,789 | 1.88% |
| Other Liabilities | 209,498 | 6.92% |
| TOTAL LIABILITIES | 2,850,165 | 94.1% |
| EQUITY CAPITAL | ||
| Preferred stock | 4,568 | 0.15% |
| Common stock | 3,679 | 0.12% |
| Surplus & paid-in capital | 81,077 | 2.68% |
| Retained earnings | 88,890 | 2.94% |
| TOTAL EQUITY CAPITAL | 178,214 | 5.88% |
| TOTAL LIABILITIES & EQUITY | 3,028,379 | 100% |
Income Statement
All figures in $millions · % = share of relevant subtotal
M&T Bank
JP Morgan Chase
💡 Hover any row for the definition from lecture slides
M&T Bank — Income Statement ($M)
| Line Item | $M | % |
|---|---|---|
| INTEREST INCOME | ||
| Interest & fees on loans & leases | 6,039 | 69.1% |
| Income on C&I loans | 1,235 | 14.1% |
| Income on real estate loans | 4,568 | 52.2% |
| Income on consumer loans | 123 | 1.41% |
| Interest income on investments | 2,705 | 30.9% |
| TOTAL INTEREST INCOME | 8,744 | 100% |
| INTEREST EXPENSE | ||
| Interest on deposit accounts | 1,583 | 67.0% |
| Interest on MMDA & other savings | 789 | 33.4% |
| Interest on retail CDs | 568 | 24.0% |
| Interest on borrowed funds | 780 | 33.0% |
| TOTAL INTEREST EXPENSE | 2,363 | 100% |
| NET INTEREST INCOME | 6,381 | |
| Provision for loan losses | 235 | |
| NONINTEREST INCOME | ||
| Fiduciary activities income | 123 | 10.0% |
| Service charges on deposits | 457 | 37.0% |
| Trading revenue | 79 | 6.39% |
| Other noninterest income | 575 | 46.6% |
| TOTAL NONINTEREST INCOME | 1,235 | 100% |
| NONINTEREST EXPENSE | ||
| Salaries & employee benefits | 2,346 | 53.7% |
| Premises & fixed assets expense | 789 | 18.1% |
| Other noninterest expense | 1,235 | 28.3% |
| TOTAL NONINTEREST EXPENSE | 4,369 | 100% |
| INCOME BEFORE TAXES | 3,012 | |
| Applicable income taxes | 855 | |
| NET INCOME | 2,157 | |
JP Morgan Chase — Income Statement ($M)
| Line Item | $M | % |
|---|---|---|
| INTEREST INCOME | ||
| Interest & fees on loans & leases | 80,617 | 78.7% |
| Income on C&I loans | 15,679 | 15.3% |
| Income on real estate loans | 34,568 | 33.7% |
| Income on consumer loans | 23,457 | 22.9% |
| Interest income on investments | 21,839 | 21.3% |
| TOTAL INTEREST INCOME | 102,456 | 100% |
| INTEREST EXPENSE | ||
| Interest on deposit accounts | 31,617 | 88.6% |
| Interest on MMDA & other savings | 12,346 | 34.6% |
| Interest on retail CDs | 8,901 | 24.9% |
| Interest on foreign deposits | 4,568 | 12.8% |
| Interest on borrowed funds | 4,061 | 11.4% |
| TOTAL INTEREST EXPENSE | 35,678 | 100% |
| NET INTEREST INCOME | 66,778 | |
| Provision for loan losses | 5,387 | |
| NONINTEREST INCOME | ||
| Fiduciary activities income | 12,346 | 23.6% |
| Service charges on deposits | 15,679 | 29.9% |
| Trading revenue | 9,877 | 18.9% |
| Other noninterest income | 14,444 | 27.6% |
| TOTAL NONINTEREST INCOME | 52,345 | 100% |
| NONINTEREST EXPENSE | ||
| Salaries & employee benefits | 34,568 | 48.5% |
| Premises & fixed assets expense | 12,346 | 17.3% |
| Other noninterest expense | 24,320 | 34.1% |
| TOTAL NONINTEREST EXPENSE | 71,234 | 100% |
| INCOME BEFORE TAXES | 42,502 | |
| Applicable income taxes | 8,500 | |
| NET INCOME | 34,002 | |
Off-Balance-Sheet Activities
All figures in $millions · % = share of total OBS notional
M&T Bank
JP Morgan Chase
💡 Hover any row for the definition from lecture slides
M&T Bank — OBS Activities ($M)
| Line Item | $M | % |
|---|---|---|
| COMMITMENTS & CONTINGENCIES | ||
| Loan commitments / LOC | 24,567 | 19.6% |
| Standby letters of credit | 3,456 | 2.76% |
| Commercial letters of credit | 1,234 | 0.99% |
| Loans sold | 5,678 | 4.54% |
| NOTIONAL AMOUNTS FOR DERIVATIVES | ||
| Forwards & futures | 19,641 | 15.7% |
| Options | 16,912 | 13.5% |
| Interest rate swaps | 45,678 | 36.5% |
| Credit derivatives | 8,023 | 6.41% |
| TOTAL OBS NOTIONAL | 125,189 | 100% |
JP Morgan Chase — OBS Activities ($M)
| Line Item | $M | % |
|---|---|---|
| COMMITMENTS & CONTINGENCIES | ||
| Loan commitments / LOC | 458,762 | 2.83% |
| Standby letters of credit | 78,456 | 0.48% |
| Commercial letters of credit | 34,567 | 0.21% |
| Loans sold | 187,234 | 1.16% |
| NOTIONAL AMOUNTS FOR DERIVATIVES | ||
| Forwards & futures | 3,245,678 | 20.0% |
| Options | 2,345,678 | 14.5% |
| Interest rate swaps | 8,976,543 | 55.4% |
| Credit derivatives | 894,567 | 5.52% |
| TOTAL OBS NOTIONAL | 16,206,918 | 100% |
Financial Ratio Analysis
ROE Framework + Performance Ratios · Hover any card for full definition
M&T Bank
JP Morgan Chase
Side-by-Side
💡 Hover any card for full definition and formula derivation
Return on Equity (ROE)
M&T Bank
12.93%
JP Morgan
19.08%
ROE = Net Income / Total Equity Capital
M&T: $2,157 / $16,679 = 12.93%
JPM: $34,002 / $178,214 = 19.08%
M&T: $2,157 / $16,679 = 12.93%
JPM: $34,002 / $178,214 = 19.08%
Return on Assets (ROA)
M&T Bank
1.02%
JP Morgan
1.12%
ROA = Net Income / Total Assets
M&T: $2,157 / $212,436 = 1.015%
JPM: $34,002 / $3,028,379 = 1.123%
M&T: $2,157 / $212,436 = 1.015%
JPM: $34,002 / $3,028,379 = 1.123%
Equity Multiplier (EM)
M&T Bank
12.74×
JP Morgan
16.99×
EM = Total Assets / Total Equity Capital
M&T: $212,436 / $16,679 = 12.74×
JPM: $3,028,379 / $178,214 = 16.99×
DuPont check: ROE = ROA × EM
M&T: 1.015% × 12.74 = 12.93% ✓
JPM: 1.123% × 16.99 = 19.08% ✓
M&T: $212,436 / $16,679 = 12.74×
JPM: $3,028,379 / $178,214 = 16.99×
DuPont check: ROE = ROA × EM
M&T: 1.015% × 12.74 = 12.93% ✓
JPM: 1.123% × 16.99 = 19.08% ✓
Profit Margin
M&T Bank
21.62%
JP Morgan
21.97%
Profit Margin = Net Income / (Interest Inc. + Noninterest Inc.)
M&T: $2,157 / ($8,744 + $1,235) = $2,157 / $9,979 = 21.62%
JPM: $34,002 / ($102,456 + $52,345) = $34,002 / $154,801 = 21.97%
M&T: $2,157 / ($8,744 + $1,235) = $2,157 / $9,979 = 21.62%
JPM: $34,002 / ($102,456 + $52,345) = $34,002 / $154,801 = 21.97%
Asset Utilization (AU)
M&T Bank
4.70%
JP Morgan
5.11%
AU = (Interest Inc. + Noninterest Inc.) / Total Assets
M&T: ($8,744 + $1,235) / $212,436 = $9,979 / $212,436 = 4.697%
JPM: ($102,456 + $52,345) / $3,028,379 = $154,801 / $3,028,379 = 5.111%
ROA check: PM × AU = ROA
M&T: 21.62% × 4.697% = 1.015% ✓
M&T: ($8,744 + $1,235) / $212,436 = $9,979 / $212,436 = 4.697%
JPM: ($102,456 + $52,345) / $3,028,379 = $154,801 / $3,028,379 = 5.111%
ROA check: PM × AU = ROA
M&T: 21.62% × 4.697% = 1.015% ✓
Net Interest Margin (NIM)
M&T Bank
3.86%
JP Morgan
3.56%
NIM = Net Interest Income / Total Assets
M&T: $6,381 / $212,436 = 3.003% (or use earning assets)
From data: NIM = 3.859% (based on earning assets)
JPM: $66,778 / $3,028,379 = 2.205% (assets basis)
From data: NIM = 3.562% (based on earning assets)
Note: NIM on earning assets > NIM on total assets
M&T: $6,381 / $212,436 = 3.003% (or use earning assets)
From data: NIM = 3.859% (based on earning assets)
JPM: $66,778 / $3,028,379 = 2.205% (assets basis)
From data: NIM = 3.562% (based on earning assets)
Note: NIM on earning assets > NIM on total assets
Spread
M&T Bank
3.86%
JP Morgan
3.70%
Spread = (Interest Income / Earning Assets) − (Interest Exp / Int.-Bearing Liabilities)
Avg yield on assets − avg cost of funds
M&T: 3.865% (Interest income rate − interest expense rate)
JPM: 3.698%
Note: Spread ≈ NIM when non-interest-bearing liabilities are small
Avg yield on assets − avg cost of funds
M&T: 3.865% (Interest income rate − interest expense rate)
JPM: 3.698%
Note: Spread ≈ NIM when non-interest-bearing liabilities are small
Overhead Efficiency Ratio
M&T Bank
28.25%
JP Morgan
73.48%
As reported: Other Noninterest Exp / Total Noninterest Exp
M&T: $1,235 / $4,369 = 28.25%
JPM: $24,320 / $71,234 = 73.48%
Standard Efficiency Ratio = Noninterest Exp / (NII + Noninterest Inc)
M&T (std): $4,369 / ($6,381+$1,235) = 57.4%
JPM (std): $71,234 / ($66,778+$52,345) = 59.8%
M&T: $1,235 / $4,369 = 28.25%
JPM: $24,320 / $71,234 = 73.48%
Standard Efficiency Ratio = Noninterest Exp / (NII + Noninterest Inc)
M&T (std): $4,369 / ($6,381+$1,235) = 57.4%
JPM (std): $71,234 / ($66,778+$52,345) = 59.8%
DuPont ROE Decomposition Summary
ROE = Profit Margin × Asset Utilization × Equity Multiplier
M&T Bank: 21.62% × 4.697% × 12.74 = 12.93%
JP Morgan: 21.97% × 5.111% × 16.99 = 19.08%
Key insight: Both banks have nearly identical Profit Margins (~22%). JPM's higher ROE comes from better Asset Utilization (larger noninterest income per asset) AND higher Equity Multiplier (more leverage). The leverage difference is the larger driver — JPM carries ~5.88% equity/assets vs M&T's 7.85%.
Return on Equity (ROE)
M&T Bank
12.93%
JP Morgan
19.08%
ROE = Net Income / Total Equity Capital
M&T: $2,157 / $16,679 = 12.93%
JPM: $34,002 / $178,214 = 19.08%
M&T: $2,157 / $16,679 = 12.93%
JPM: $34,002 / $178,214 = 19.08%
Return on Assets (ROA)
M&T Bank
1.02%
JP Morgan
1.12%
ROA = Net Income / Total Assets
M&T: $2,157 / $212,436 = 1.015%
JPM: $34,002 / $3,028,379 = 1.123%
M&T: $2,157 / $212,436 = 1.015%
JPM: $34,002 / $3,028,379 = 1.123%
Equity Multiplier (EM)
M&T Bank
12.74×
JP Morgan
16.99×
EM = Total Assets / Total Equity Capital
M&T: $212,436 / $16,679 = 12.74×
JPM: $3,028,379 / $178,214 = 16.99×
DuPont check: ROE = ROA × EM
M&T: 1.015% × 12.74 = 12.93% ✓
JPM: 1.123% × 16.99 = 19.08% ✓
M&T: $212,436 / $16,679 = 12.74×
JPM: $3,028,379 / $178,214 = 16.99×
DuPont check: ROE = ROA × EM
M&T: 1.015% × 12.74 = 12.93% ✓
JPM: 1.123% × 16.99 = 19.08% ✓
Profit Margin
M&T Bank
21.62%
JP Morgan
21.97%
Profit Margin = Net Income / (Interest Inc. + Noninterest Inc.)
M&T: $2,157 / ($8,744 + $1,235) = $2,157 / $9,979 = 21.62%
JPM: $34,002 / ($102,456 + $52,345) = $34,002 / $154,801 = 21.97%
M&T: $2,157 / ($8,744 + $1,235) = $2,157 / $9,979 = 21.62%
JPM: $34,002 / ($102,456 + $52,345) = $34,002 / $154,801 = 21.97%
Asset Utilization (AU)
M&T Bank
4.70%
JP Morgan
5.11%
AU = (Interest Inc. + Noninterest Inc.) / Total Assets
M&T: ($8,744 + $1,235) / $212,436 = $9,979 / $212,436 = 4.697%
JPM: ($102,456 + $52,345) / $3,028,379 = $154,801 / $3,028,379 = 5.111%
ROA check: PM × AU = ROA
M&T: 21.62% × 4.697% = 1.015% ✓
M&T: ($8,744 + $1,235) / $212,436 = $9,979 / $212,436 = 4.697%
JPM: ($102,456 + $52,345) / $3,028,379 = $154,801 / $3,028,379 = 5.111%
ROA check: PM × AU = ROA
M&T: 21.62% × 4.697% = 1.015% ✓
Net Interest Margin (NIM)
M&T Bank
3.86%
JP Morgan
3.56%
NIM = Net Interest Income / Total Assets
M&T: $6,381 / $212,436 = 3.003% (or use earning assets)
From data: NIM = 3.859% (based on earning assets)
JPM: $66,778 / $3,028,379 = 2.205% (assets basis)
From data: NIM = 3.562% (based on earning assets)
Note: NIM on earning assets > NIM on total assets
M&T: $6,381 / $212,436 = 3.003% (or use earning assets)
From data: NIM = 3.859% (based on earning assets)
JPM: $66,778 / $3,028,379 = 2.205% (assets basis)
From data: NIM = 3.562% (based on earning assets)
Note: NIM on earning assets > NIM on total assets
Spread
M&T Bank
3.86%
JP Morgan
3.70%
Spread = (Interest Income / Earning Assets) − (Interest Exp / Int.-Bearing Liabilities)
Avg yield on assets − avg cost of funds
M&T: 3.865% (Interest income rate − interest expense rate)
JPM: 3.698%
Note: Spread ≈ NIM when non-interest-bearing liabilities are small
Avg yield on assets − avg cost of funds
M&T: 3.865% (Interest income rate − interest expense rate)
JPM: 3.698%
Note: Spread ≈ NIM when non-interest-bearing liabilities are small
Overhead Efficiency Ratio
M&T Bank
28.25%
JP Morgan
73.48%
As reported: Other Noninterest Exp / Total Noninterest Exp
M&T: $1,235 / $4,369 = 28.25%
JPM: $24,320 / $71,234 = 73.48%
Standard Efficiency Ratio = Noninterest Exp / (NII + Noninterest Inc)
M&T (std): $4,369 / ($6,381+$1,235) = 57.4%
JPM (std): $71,234 / ($66,778+$52,345) = 59.8%
M&T: $1,235 / $4,369 = 28.25%
JPM: $24,320 / $71,234 = 73.48%
Standard Efficiency Ratio = Noninterest Exp / (NII + Noninterest Inc)
M&T (std): $4,369 / ($6,381+$1,235) = 57.4%
JPM (std): $71,234 / ($66,778+$52,345) = 59.8%
DuPont ROE Decomposition Summary
ROE = Profit Margin × Asset Utilization × Equity Multiplier
M&T Bank: 21.62% × 4.697% × 12.74 = 12.93%
JP Morgan: 21.97% × 5.111% × 16.99 = 19.08%
Key insight: Both banks have nearly identical Profit Margins (~22%). JPM's higher ROE comes from better Asset Utilization (larger noninterest income per asset) AND higher Equity Multiplier (more leverage). The leverage difference is the larger driver — JPM carries ~5.88% equity/assets vs M&T's 7.85%.
Return on Equity (ROE)
M&T Bank
12.93%
JP Morgan
19.08%
ROE = Net Income / Total Equity Capital
M&T: $2,157 / $16,679 = 12.93%
JPM: $34,002 / $178,214 = 19.08%
M&T: $2,157 / $16,679 = 12.93%
JPM: $34,002 / $178,214 = 19.08%
Return on Assets (ROA)
M&T Bank
1.02%
JP Morgan
1.12%
ROA = Net Income / Total Assets
M&T: $2,157 / $212,436 = 1.015%
JPM: $34,002 / $3,028,379 = 1.123%
M&T: $2,157 / $212,436 = 1.015%
JPM: $34,002 / $3,028,379 = 1.123%
Equity Multiplier (EM)
M&T Bank
12.74×
JP Morgan
16.99×
EM = Total Assets / Total Equity Capital
M&T: $212,436 / $16,679 = 12.74×
JPM: $3,028,379 / $178,214 = 16.99×
DuPont check: ROE = ROA × EM
M&T: 1.015% × 12.74 = 12.93% ✓
JPM: 1.123% × 16.99 = 19.08% ✓
M&T: $212,436 / $16,679 = 12.74×
JPM: $3,028,379 / $178,214 = 16.99×
DuPont check: ROE = ROA × EM
M&T: 1.015% × 12.74 = 12.93% ✓
JPM: 1.123% × 16.99 = 19.08% ✓
Profit Margin
M&T Bank
21.62%
JP Morgan
21.97%
Profit Margin = Net Income / (Interest Inc. + Noninterest Inc.)
M&T: $2,157 / ($8,744 + $1,235) = $2,157 / $9,979 = 21.62%
JPM: $34,002 / ($102,456 + $52,345) = $34,002 / $154,801 = 21.97%
M&T: $2,157 / ($8,744 + $1,235) = $2,157 / $9,979 = 21.62%
JPM: $34,002 / ($102,456 + $52,345) = $34,002 / $154,801 = 21.97%
Asset Utilization (AU)
M&T Bank
4.70%
JP Morgan
5.11%
AU = (Interest Inc. + Noninterest Inc.) / Total Assets
M&T: ($8,744 + $1,235) / $212,436 = $9,979 / $212,436 = 4.697%
JPM: ($102,456 + $52,345) / $3,028,379 = $154,801 / $3,028,379 = 5.111%
ROA check: PM × AU = ROA
M&T: 21.62% × 4.697% = 1.015% ✓
M&T: ($8,744 + $1,235) / $212,436 = $9,979 / $212,436 = 4.697%
JPM: ($102,456 + $52,345) / $3,028,379 = $154,801 / $3,028,379 = 5.111%
ROA check: PM × AU = ROA
M&T: 21.62% × 4.697% = 1.015% ✓
Net Interest Margin (NIM)
M&T Bank
3.86%
JP Morgan
3.56%
NIM = Net Interest Income / Total Assets
M&T: $6,381 / $212,436 = 3.003% (or use earning assets)
From data: NIM = 3.859% (based on earning assets)
JPM: $66,778 / $3,028,379 = 2.205% (assets basis)
From data: NIM = 3.562% (based on earning assets)
Note: NIM on earning assets > NIM on total assets
M&T: $6,381 / $212,436 = 3.003% (or use earning assets)
From data: NIM = 3.859% (based on earning assets)
JPM: $66,778 / $3,028,379 = 2.205% (assets basis)
From data: NIM = 3.562% (based on earning assets)
Note: NIM on earning assets > NIM on total assets
Spread
M&T Bank
3.86%
JP Morgan
3.70%
Spread = (Interest Income / Earning Assets) − (Interest Exp / Int.-Bearing Liabilities)
Avg yield on assets − avg cost of funds
M&T: 3.865% (Interest income rate − interest expense rate)
JPM: 3.698%
Note: Spread ≈ NIM when non-interest-bearing liabilities are small
Avg yield on assets − avg cost of funds
M&T: 3.865% (Interest income rate − interest expense rate)
JPM: 3.698%
Note: Spread ≈ NIM when non-interest-bearing liabilities are small
Overhead Efficiency Ratio
M&T Bank
28.25%
JP Morgan
73.48%
As reported: Other Noninterest Exp / Total Noninterest Exp
M&T: $1,235 / $4,369 = 28.25%
JPM: $24,320 / $71,234 = 73.48%
Standard Efficiency Ratio = Noninterest Exp / (NII + Noninterest Inc)
M&T (std): $4,369 / ($6,381+$1,235) = 57.4%
JPM (std): $71,234 / ($66,778+$52,345) = 59.8%
M&T: $1,235 / $4,369 = 28.25%
JPM: $24,320 / $71,234 = 73.48%
Standard Efficiency Ratio = Noninterest Exp / (NII + Noninterest Inc)
M&T (std): $4,369 / ($6,381+$1,235) = 57.4%
JPM (std): $71,234 / ($66,778+$52,345) = 59.8%
DuPont ROE Decomposition Summary
ROE = Profit Margin × Asset Utilization × Equity Multiplier
M&T Bank: 21.62% × 4.697% × 12.74 = 12.93%
JP Morgan: 21.97% × 5.111% × 16.99 = 19.08%
Key insight: Both banks have nearly identical Profit Margins (~22%). JPM's higher ROE comes from better Asset Utilization (larger noninterest income per asset) AND higher Equity Multiplier (more leverage). The leverage difference is the larger driver — JPM carries ~5.88% equity/assets vs M&T's 7.85%.