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JP Morgan vs Wells Fargo

Side-by-side credit pricing comparison from Pillar 3 disclosures.

Last updated: March 2026 · Data source: public Pillar 3 disclosures
Verdict:

On a representative BBB+ EUR 25M 5-year term loan, JP Morgan is the cheaper lender by 12bp in minimum spread. For a EUR 25M facility, that's EUR 30,922 per year.

Bank profiles compared

Metric JP Morgan
United States		 Wells Fargo
United States
IRB approachA-IRBA-IRB
Cost-to-income52.0%61.0%
Effective tax rate21.4%24.0%
Avg corporate PD1.20%1.03%
Avg LGD unsecured35.0%23.2%
Avg LGD secured15.0%15.0%
Funding spread (bp)10bp12bp
Corporate EADEUR 1333bnEUR 1208bn

Sample RAROC: BBB+ EUR 25M 5Y term loan

Both banks priced on the exact same deal — 150bp spread, 20bp commitment fee, 60-month maturity. Higher RAROC means the bank earns more from this deal. Lower min-spread means the borrower gets a better rate.

Component JP Morgan Wells Fargo
Annual revenueEUR 385,000EUR 385,000
Operating costEUR 154,000EUR 154,000
Expected lossEUR 28,750EUR 28,750
Capital required (FPE)EUR 2,451,320EUR 2,451,320
RAROC (after tax)8.12%7.67%
Min spread for 12% RAROC231bp243bp
This is just one sample deal.

Your actual portfolio has different ratings, sizes, maturities, and collateral. The cheapest bank for one deal isn't always cheapest for another. Upload your real facilities and OpenRAROC will run the same calculation on each, against JP Morgan, Wells Fargo, and 57 other banks.

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FAQ: JP Morgan vs Wells Fargo

Which bank is cheaper on corporate credit: JP Morgan or Wells Fargo?
On a BBB+ EUR 25M 5-year term loan, JP Morgan requires a minimum spread of 231bp to reach a 12% RAROC hurdle, versus 243bp at the other bank — a difference of 12bp on the same deal.
How do JP Morgan and Wells Fargo compare on corporate PD?
JP Morgan reports an EAD-weighted corporate PD of 1.20%, while Wells Fargo reports 1.03%. The gap reflects differences in obligor mix and geography rather than underwriting quality.
How do the two banks differ on IRB approach?
JP Morgan uses A-IRB and Wells Fargo uses A-IRB. The IRB approach determines whether internal LGD models or supervisory LGDs apply, which materially affects capital required on every corporate facility.
What deal is used in this comparison?
A single standardised facility: BBB+ rated, EUR 25M drawn on a EUR 30M commitment, 5-year tenor, 150bp spread, 20bp commitment fee. Both banks are priced on this exact deal using their own disclosed Pillar 3 parameters.