For the quarterly period ended
|
Commission file
|
March 31, 2014
|
number 1-5805
|
Delaware
|
13-2624428
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. employer
identification no.)
|
|
|
270 Park Avenue, New York, New York
|
10017
|
(Address of principal executive offices)
|
(Zip Code)
|
|
|
|
|
Part I - Financial information
|
Page
|
||
Item 1
|
Consolidated Financial Statements – JPMorgan Chase & Co.:
|
|
|
|
Consolidated statements of income (unaudited) for the three months ended March 31, 2014 and 2013
|
80
|
|
|
Consolidated statements of comprehensive income (unaudited) for the three months ended March 31, 2014 and 2013
|
81
|
|
|
Consolidated balance sheets (unaudited) at March 31, 2014, and December 31, 2013
|
82
|
|
|
Consolidated statements of changes in stockholders’ equity (unaudited) for the three months ended March 31, 2014 and 2013
|
83
|
|
|
Consolidated statements of cash flows (unaudited) for the three months ended March 31, 2014 and 2013
|
84
|
|
|
Notes to Consolidated Financial Statements (unaudited)
|
85
|
|
|
Report of Independent Registered Public Accounting Firm
|
167
|
|
|
Consolidated Average Balance Sheets, Interest and Rates (unaudited) for the three months ended March 31, 2014 and 2013
|
168
|
|
|
Glossary of Terms and Line of Business Metrics
|
169
|
|
Item 2
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations:
|
|
|
|
Consolidated Financial Highlights
|
3
|
|
|
Introduction
|
4
|
|
|
Executive Overview
|
6
|
|
|
Consolidated Results of Operations
|
10
|
|
|
Balance Sheet Analysis
|
12
|
|
|
Off-Balance Sheet Arrangements
|
14
|
|
|
Cash Flows Analysis
|
15
|
|
|
Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures
|
16
|
|
|
Business Segment Results
|
18
|
|
|
Enterprise-Wide Risk Management
|
39
|
|
|
Credit Risk Management
|
40
|
|
|
Market Risk Management
|
57
|
|
|
Country Risk Management
|
61
|
|
|
Operational Risk Management
|
62
|
|
|
Capital Management
|
63
|
|
|
Liquidity Risk Management
|
71
|
|
|
Supervision and Regulation
|
75
|
|
|
Critical Accounting Estimates Used by the Firm
|
76
|
|
|
Accounting and Reporting Developments
|
78
|
|
|
Forward-Looking Statements
|
79
|
|
Item 3
|
Quantitative and Qualitative Disclosures About Market Risk
|
174
|
|
Item 4
|
Controls and Procedures
|
174
|
|
Part II - Other information
|
|
||
Item 1
|
Legal Proceedings
|
175
|
|
Item 1A
|
Risk Factors
|
175
|
|
Item 2
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
175
|
|
Item 3
|
Defaults Upon Senior Securities
|
176
|
|
Item 4
|
Mine Safety Disclosure
|
176
|
|
Item 5
|
Other Information
|
176
|
|
Item 6
|
Exhibits
|
176
|
(unaudited)
As of or for the period ended,
|
|
|
|
|
|
||||||||||
(in millions, except per share, ratio, headcount data and where otherwise noted)
|
1Q14
|
4Q13
|
3Q13
|
2Q13
|
1Q13
|
||||||||||
Selected income statement data
|
|
|
|
|
|
||||||||||
Total net revenue
|
$
|
22,993
|
|
$
|
23,156
|
|
$
|
23,117
|
|
$
|
25,211
|
|
$
|
25,122
|
|
Total noninterest expense
|
14,636
|
|
15,552
|
|
23,626
|
|
15,866
|
|
15,423
|
|
|||||
Pre-provision profit/(loss)
|
8,357
|
|
7,604
|
|
(509
|
)
|
9,345
|
|
9,699
|
|
|||||
Provision for credit losses
|
850
|
|
104
|
|
(543
|
)
|
47
|
|
617
|
|
|||||
Income before income tax expense
|
7,507
|
|
7,500
|
|
34
|
|
9,298
|
|
9,082
|
|
|||||
Income tax expense
|
2,233
|
|
2,222
|
|
414
|
|
2,802
|
|
2,553
|
|
|||||
Net income/(loss)
|
$
|
5,274
|
|
$
|
5,278
|
|
$
|
(380
|
)
|
$
|
6,496
|
|
$
|
6,529
|
|
Per common share data
|
|
|
|
|
|
||||||||||
Net income/(loss) per share: Basic
|
$
|
1.29
|
|
$
|
1.31
|
|
$
|
(0.17
|
)
|
$
|
1.61
|
|
$
|
1.61
|
|
Diluted
|
1.28
|
|
1.30
|
|
(0.17
|
)
|
1.60
|
|
1.59
|
|
|||||
Cash dividends declared per share
|
0.38
|
|
0.38
|
|
0.38
|
|
0.38
|
|
0.30
|
|
|||||
Book value per share
|
54.05
|
|
53.25
|
|
52.01
|
|
52.48
|
|
52.02
|
|
|||||
Tangible book value per share (“TBVPS”)
(a)
|
41.73
|
|
40.81
|
|
39.51
|
|
39.97
|
|
39.54
|
|
|||||
Common shares outstanding
|
|
|
|
|
|
||||||||||
Average: Basic
|
3,787.2
|
|
3,762.1
|
|
3,767.0
|
|
3,782.4
|
|
3,818.2
|
|
|||||
Diluted
|
3,823.6
|
|
3,797.1
|
|
3,767.0
|
|
3,814.3
|
|
3,847.0
|
|
|||||
Common shares at period-end
|
3,784.7
|
|
3,756.1
|
|
3,759.2
|
|
3,769.0
|
|
3,789.8
|
|
|||||
Share price
(b)
|
|
|
|
|
|
||||||||||
High
|
$
|
61.48
|
|
$
|
58.55
|
|
$
|
56.93
|
|
$
|
55.90
|
|
$
|
51.00
|
|
Low
|
54.20
|
|
50.25
|
|
50.06
|
|
46.05
|
|
44.20
|
|
|||||
Close
|
60.71
|
|
58.48
|
|
51.69
|
|
52.79
|
|
47.46
|
|
|||||
Market capitalization
|
229,770
|
|
219,657
|
|
194,312
|
|
198,966
|
|
179,863
|
|
|||||
Selected ratios and metrics
|
|
|
|
|
|
||||||||||
Return on common equity (“ROE”)
|
10
|
%
|
10
|
%
|
(1
|
)%
|
13
|
%
|
13
|
%
|
|||||
Return on tangible common equity (“ROTCE”)
(a)
|
13
|
|
14
|
|
(2
|
)
|
17
|
|
17
|
|
|||||
Return on assets (“ROA”)
|
0.89
|
|
0.87
|
|
(0.06
|
)
|
1.09
|
|
1.14
|
|
|||||
Return on risk-weighted assets
(c)(d)
|
1.51
|
|
1.52
|
|
(0.11
|
)
|
1.85
|
|
1.88
|
|
|||||
Overhead ratio
|
64
|
|
67
|
|
102
|
|
63
|
|
61
|
|
|||||
Loans-to-deposits ratio
|
57
|
|
57
|
|
57
|
|
60
|
|
61
|
|
|||||
High Quality Liquid Assets (“HQLA”) (in billions)
(e)
|
$
|
538
|
|
$
|
522
|
|
$
|
538
|
|
$
|
454
|
|
413
|
|
|
Tier 1 common capital ratio
(d)
|
10.9
|
%
|
10.7
|
%
|
10.5%
|
|
10.4
|
%
|
10.2
|
%
|
|||||
Tier 1 capital ratio
(d)
|
12.1
|
|
11.9
|
|
11.7
|
|
11.6
|
|
11.6
|
|
|||||
Total capital ratio
(d)
|
14.5
|
|
14.4
|
|
14.3
|
|
14.1
|
|
14.1
|
|
|||||
Tier 1 leverage ratio
(d)
|
7.4
|
|
7.1
|
|
6.9
|
|
7.0
|
|
7.3
|
|
|||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
||||||||||
Trading assets
|
$
|
375,204
|
|
$
|
374,664
|
|
$
|
383,348
|
|
$
|
401,470
|
|
$
|
430,991
|
|
Securities
(f)
|
351,850
|
|
354,003
|
|
356,556
|
|
354,725
|
|
365,744
|
|
|||||
Loans
|
730,971
|
|
738,418
|
|
728,679
|
|
725,586
|
|
728,886
|
|
|||||
Total assets
|
2,476,986
|
|
2,415,689
|
|
2,463,309
|
|
2,439,494
|
|
2,389,349
|
|
|||||
Deposits
|
1,282,705
|
|
1,287,765
|
|
1,281,102
|
|
1,202,950
|
|
1,202,507
|
|
|||||
Long-term debt
(g)
|
274,512
|
|
267,889
|
|
263,372
|
|
266,212
|
|
268,361
|
|
|||||
Common stockholders’ equity
|
204,572
|
|
200,020
|
|
195,512
|
|
197,781
|
|
197,128
|
|
|||||
Total stockholders’ equity
|
219,655
|
|
211,178
|
|
206,670
|
|
209,239
|
|
207,086
|
|
|||||
Headcount
|
246,994
|
|
251,196
|
|
255,041
|
|
254,063
|
|
255,898
|
|
|||||
Credit quality metrics
|
|
|
|
|
|
||||||||||
Allowance for credit losses
|
$
|
16,485
|
|
$
|
16,969
|
|
$
|
18,248
|
|
$
|
20,137
|
|
$
|
21,496
|
|
Allowance for loan losses to total retained loans
|
2.20
|
%
|
2.25
|
%
|
2.43%
|
|
2.69
|
%
|
2.88
|
%
|
|||||
Allowance for loan losses to retained loans excluding purchased credit-impaired loans
(h)
|
1.75
|
|
1.80
|
|
1.89
|
|
2.06
|
|
2.27
|
|
|||||
Nonperforming assets
|
$
|
9,473
|
|
$
|
9,706
|
|
$
|
10,380
|
|
$
|
11,041
|
|
$
|
11,739
|
|
Net charge-offs
|
1,269
|
|
1,328
|
|
1,346
|
|
1,403
|
|
1,725
|
|
|||||
Net charge-off rate
|
0.71
|
%
|
0.73
|
%
|
0.74%
|
|
0.78
|
%
|
0.97
|
%
|
(a)
|
TBVPS and ROTCE are non-GAAP financial measures. TBVPS represents the Firm’s tangible common equity divided by period-end common shares. ROTCE measures the Firm’s annualized earnings as a percentage of tangible common equity. For further discussion of these measures, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on
pages 16–17
of this Form 10-Q.
|
(b)
|
Share price shown for JPMorgan Chase’s common stock is from the New York Stock Exchange. JPMorgan Chase’s common stock is also listed and traded on the London Stock Exchange and the Tokyo Stock Exchange.
|
(c)
|
Return on Basel risk-weighted assets is the annualized earnings of the Firm divided by its average risk-weighted assets (
“
RWA
”
).
|
(d)
|
Basel III rules became effective on January 1, 2014; all prior period data is based on Basel I rules. For further discussion, see Regulatory capital on
pages 63–68
of this Form 10-Q.
|
(e)
|
HQLA is the estimated amount of assets that qualify for inclusion in the Basel III liquidity coverage ratio; see HQLA on
page 74
of this Form 10-Q.
|
(f)
|
Included held-to-maturity (“HTM”) securities of $47.3 billion, $24.0 billion and $4.5 billion at March 31, 2014, December 31, 2013 and September 30, 2013, respectively. Held-to-maturity balances for the other periods were not material.
|
(g)
|
Included unsecured long-term debt of $206.1 billion, $199.4 billion, $199.2 billion, $199.1 billion and $206.1 billion, for the respective periods above.
|
(h)
|
Excludes the impact of residential real estate purchased credit-impaired (“PCI”) loans. For further discussion, see Allowance for credit losses on
pages 54–56
of this Form 10-Q.
|
INTRODUCTION
|
EXECUTIVE OVERVIEW
|
Financial performance of JPMorgan Chase
|
|
|
||||||||
|
Three months ended March 31,
|
|||||||||
(in millions, except per share data and ratios)
|
2014
|
|
2013
|
|
Change
|
|||||
Selected income statement data
|
|
|
|
|
|
|||||
Total net revenue
|
$
|
22,993
|
|
|
$
|
25,122
|
|
|
(8
|
)%
|
Total noninterest expense
|
14,636
|
|
|
15,423
|
|
|
(5
|
)
|
||
Pre-provision profit
|
8,357
|
|
|
9,699
|
|
|
(14
|
)
|
||
Provision for credit losses
|
850
|
|
|
617
|
|
|
38
|
|
||
Net income
|
5,274
|
|
|
6,529
|
|
|
(19
|
)
|
||
Diluted earnings per share
|
1.28
|
|
|
1.59
|
|
|
(19
|
)
|
||
Return on common equity
|
10
|
%
|
|
13
|
%
|
|
|
|||
Capital ratios
(a)
|
|
|
|
|
|
|||||
Tier 1 capital
|
12.1
|
|
|
11.6
|
|
|
|
|||
Tier 1 common
(b)
|
10.9
|
|
|
10.2
|
|
|
|
(a)
|
Basel III rules became effective on January 1, 2014; all prior period data is based on Basel I rules. For further discussion of the implementation of Basel III, see Regulatory capital on
pages 63–68
of this Form 10-Q.
|
(b)
|
The Tier 1 common capital ratio is common equity Tier 1 capital (“Tier 1 common”) divided by risk-weighted assets. Management, bank regulators, investors and analysts use Tier 1 common capital along with the other capital measures to assess and monitor the Firm’s capital position. Prior to Basel III becoming effective on January 1, 2014, Tier 1 common capital was a non-GAAP financial measure. For further discussion of Tier 1 common capital, see Regulatory Capital on
pages 63–68
of this Form 10-Q.
|
(a)
|
Firmwide adjusted expense excludes total firmwide legal expenses and foreclosure-related matters.
|
(b)
|
This line item is net of changes in the MSR asset fair value due to collection/realization of expected cash flows; plus net interest income.
|
CONSOLIDATED RESULTS OF OPERATIONS
|
Revenue
|
|
|
|
|
|
|||||
|
Three months ended March 31,
|
|||||||||
(in millions)
|
2014
|
|
|
2013
|
|
|
Change
|
|
||
Investment banking fees
|
$
|
1,420
|
|
|
$
|
1,445
|
|
|
(2
|
)%
|
Principal transactions
|
3,322
|
|
|
3,761
|
|
|
(12
|
)
|
||
Lending- and deposit-related fees
|
1,405
|
|
|
1,468
|
|
|
(4
|
)
|
||
Asset management, administration and commissions
|
3,836
|
|
|
3,599
|
|
|
7
|
|
||
Securities gains
|
30
|
|
|
509
|
|
|
(94
|
)
|
||
Mortgage fees and related income
|
514
|
|
|
1,452
|
|
|
(65
|
)
|
||
Card income
|
1,408
|
|
|
1,419
|
|
|
(1
|
)
|
||
Other income
(a)
|
391
|
|
|
536
|
|
|
(27
|
)
|
||
Noninterest revenue
|
12,326
|
|
|
14,189
|
|
|
(13
|
)
|
||
Net interest income
|
10,667
|
|
|
10,933
|
|
|
(2
|
)
|
||
Total net revenue
|
$
|
22,993
|
|
|
$
|
25,122
|
|
|
(8
|
)%
|
(a)
|
Included operating lease income of
$398 million
and
$349 million
for the three months ended March 31, 2014 and 2013, respectively.
|
Provision for credit losses
|
|
|
|
|
||||||
|
Three months ended March 31,
|
|||||||||
(in millions)
|
2014
|
|
2013
|
|
Change
|
|||||
Consumer, excluding credit card
|
$
|
119
|
|
|
$
|
(37
|
)
|
|
NM
|
|
Credit card
|
688
|
|
|
582
|
|
|
18
|
%
|
||
Total consumer
|
807
|
|
|
545
|
|
|
48
|
|
||
Wholesale
|
43
|
|
|
72
|
|
|
(40
|
)
|
||
Total provision for credit losses
|
$
|
850
|
|
|
$
|
617
|
|
|
38
|
%
|
Noninterest expense
|
|
|
|
|
|
|||||
|
Three months ended March 31,
|
|||||||||
(in millions)
|
2014
|
|
2013
|
|
Change
|
|||||
Compensation expense
|
$
|
7,859
|
|
|
$
|
8,414
|
|
|
(7
|
)%
|
Noncompensation expense:
|
|
|
|
|
|
|||||
Occupancy
|
952
|
|
|
901
|
|
|
6
|
|
||
Technology, communications and equipment
|
1,411
|
|
|
1,332
|
|
|
6
|
|
||
Professional and outside services
|
1,786
|
|
|
1,734
|
|
|
3
|
|
||
Marketing
|
564
|
|
|
589
|
|
|
(4
|
)
|
||
Other expense
(a)(b)
|
1,933
|
|
|
2,301
|
|
|
(16
|
)
|
||
Amortization of intangibles
|
131
|
|
|
152
|
|
|
(14
|
)
|
||
Total noncompensation expense
|
6,777
|
|
|
7,009
|
|
|
(3
|
)
|
||
Total noninterest expense
|
$
|
14,636
|
|
|
$
|
15,423
|
|
|
(5
|
)%
|
(a)
|
Included firmwide legal expense of
$347 million
for the three months ended March 31, 2013; legal expense for the three months ended March 31, 2014 was not material.
|
(b)
|
Included FDIC-related expense of
$293 million
and
$379 million
for the three months ended March 31, 2014 and 2013, respectively.
|
Income tax expense
|
|
|
|
|
|
|||||
(in millions, except rate)
|
Three months ended March 31,
|
|||||||||
2014
|
|
2013
|
|
Change
|
||||||
Income before income tax expense
|
$
|
7,507
|
|
|
$
|
9,082
|
|
|
(17
|
)%
|
Income tax expense
|
2,233
|
|
|
2,553
|
|
|
(13
|
)
|
||
Effective tax rate
|
29.7
|
%
|
|
28.1
|
%
|
|
|
|
BALANCE SHEET ANALYSIS
|
Selected Consolidated Balance Sheets data
|
|
||||||||
(in millions)
|
March 31, 2014
|
|
December 31, 2013
|
Change
|
|||||
Assets
|
|
|
|
|
|||||
Cash and due from banks
|
$
|
26,321
|
|
|
$
|
39,771
|
|
(34
|
)%
|
Deposits with banks
|
372,531
|
|
|
316,051
|
|
18
|
|
||
Federal funds sold and securities purchased under resale agreements
|
265,168
|
|
|
248,116
|
|
7
|
|
||
Securities borrowed
|
122,021
|
|
|
111,465
|
|
9
|
|
||
Trading assets:
|
|
|
|
|
|||||
Debt and equity instruments
|
315,932
|
|
|
308,905
|
|
2
|
|
||
Derivative receivables
|
59,272
|
|
|
65,759
|
|
(10
|
)
|
||
Securities
|
351,850
|
|
|
354,003
|
|
(1
|
)
|
||
Loans
|
730,971
|
|
|
738,418
|
|
(1
|
)
|
||
Allowance for loan losses
|
(15,847
|
)
|
|
(16,264
|
)
|
(3
|
)
|
||
Loans, net of allowance for loan losses
|
715,124
|
|
|
722,154
|
|
(1
|
)
|
||
Accrued interest and accounts receivable
|
73,122
|
|
|
65,160
|
|
12
|
|
||
Premises and equipment
|
14,919
|
|
|
14,891
|
|
—
|
|
||
Goodwill
|
48,065
|
|
|
48,081
|
|
—
|
|
||
Mortgage servicing rights
|
8,552
|
|
|
9,614
|
|
(11
|
)
|
||
Other intangible assets
|
1,489
|
|
|
1,618
|
|
(8
|
)
|
||
Other assets
|
102,620
|
|
|
110,101
|
|
(7
|
)
|
||
Total assets
|
$
|
2,476,986
|
|
|
$
|
2,415,689
|
|
3
|
|
Liabilities
|
|
|
|
|
|||||
Deposits
|
$
|
1,282,705
|
|
|
$
|
1,287,765
|
|
—
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
217,442
|
|
|
181,163
|
|
20
|
|
||
Commercial paper
|
60,825
|
|
|
57,848
|
|
5
|
|
||
Other borrowed funds
|
31,951
|
|
|
27,994
|
|
14
|
|
||
Trading liabilities:
|
|
|
|
|
|
||||
Debt and equity instruments
|
91,471
|
|
|
80,430
|
|
14
|
|
||
Derivative payables
|
49,138
|
|
|
57,314
|
|
(14
|
)
|
||
Accounts payable and other liabilities
|
202,499
|
|
|
194,491
|
|
4
|
|
||
Beneficial interests issued by consolidated VIEs
|
46,788
|
|
|
49,617
|
|
(6
|
)
|
||
Long-term debt
|
274,512
|
|
|
267,889
|
|
2
|
|
||
Total liabilities
|
2,257,331
|
|
|
2,204,511
|
|
2
|
|
||
Stockholders’ equity
|
219,655
|
|
|
211,178
|
|
4
|
|
||
Total liabilities and stockholders’ equity
|
$
|
2,476,986
|
|
|
$
|
2,415,689
|
|
3
|
%
|
OFF-BALANCE SHEET ARRANGEMENTS
|
CASH FLOWS ANALYSIS
|
(in millions)
|
|
Three months ended March 31,
|
||||||
|
2014
|
|
2013
|
|||||
Net cash provided by (used in)
|
|
|
|
|
||||
Operating activities
|
|
$
|
14,667
|
|
|
$
|
19,964
|
|
Investing activities
|
|
(68,410
|
)
|
|
(55,455
|
)
|
||
Financing activities
|
|
40,318
|
|
|
28,180
|
|
||
Effect of exchange rate changes on Cash
|
|
(25
|
)
|
|
(888
|
)
|
||
Net increase (decrease) in cash and due from banks
|
|
$
|
(13,450
|
)
|
|
$
|
(8,199
|
)
|
EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES
|
|
Three months ended March 31,
|
||||||||||||||||||||||
|
2014
|
|
2013
|
||||||||||||||||||||
(in millions, except ratios)
|
Reported
results
|
|
Fully taxable-equivalent adjustments
(a)
|
|
Managed
basis
|
|
Reported
results
|
|
Fully taxable-equivalent adjustments
(a)
|
|
Managed
basis
|
||||||||||||
Other income
|
$
|
391
|
|
|
$
|
644
|
|
|
$
|
1,035
|
|
|
$
|
536
|
|
|
$
|
564
|
|
|
$
|
1,100
|
|
Total noninterest revenue
|
12,326
|
|
|
644
|
|
|
12,970
|
|
|
14,189
|
|
|
564
|
|
|
14,753
|
|
||||||
Net interest income
|
10,667
|
|
|
226
|
|
|
10,893
|
|
|
10,933
|
|
|
162
|
|
|
11,095
|
|
||||||
Total net revenue
|
22,993
|
|
|
870
|
|
|
23,863
|
|
|
25,122
|
|
|
726
|
|
|
25,848
|
|
||||||
Pre-provision profit
|
8,357
|
|
|
870
|
|
|
9,227
|
|
|
9,699
|
|
|
726
|
|
|
10,425
|
|
||||||
Income before income tax expense
|
7,507
|
|
|
870
|
|
|
8,377
|
|
|
9,082
|
|
|
726
|
|
|
9,808
|
|
||||||
Income tax expense
|
$
|
2,233
|
|
|
$
|
870
|
|
|
$
|
3,103
|
|
|
$
|
2,553
|
|
|
$
|
726
|
|
|
$
|
3,279
|
|
Overhead ratio
|
64
|
%
|
|
NM
|
|
|
61
|
%
|
|
61
|
%
|
|
NM
|
|
|
60
|
%
|
(a)
|
Predominantly recognized in CIB and CB business segments and Corporate/Private Equity.
|
Average tangible common equity
|
||||||||
(in millions, except per share
and ratio data)
|
|
Three months ended March 31,
|
||||||
|
2014
|
|
2013
|
|||||
Common stockholders’ equity
|
|
$
|
201,797
|
|
|
$
|
194,733
|
|
Less: Goodwill
|
|
48,054
|
|
|
48,168
|
|
||
Less: Certain identifiable intangible assets
|
|
1,548
|
|
|
2,162
|
|
||
Add: Deferred tax liabilities
(a)
|
|
2,944
|
|
|
2,828
|
|
||
Tangible common equity
|
|
$
|
155,139
|
|
|
$
|
147,231
|
|
|
|
|
|
|
||||
Return on tangible common equity (“ROTCE”)
|
|
13
|
%
|
|
17
|
%
|
||
Tangible book value per share
|
|
$
|
41.73
|
|
|
$
|
39.54
|
|
(a)
|
Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted against goodwill and other intangibles when calculating TCE.
|
Core net interest income data
(a)
|
|||||||||
|
Three months ended March 31,
|
||||||||
(in millions, except rates)
|
2014
|
2013
|
|
Change
|
|||||
Net interest income – managed basis
(b)(c)
|
$
|
10,893
|
|
$
|
11,095
|
|
|
(2
|
)%
|
Less: Market-based net interest income
|
1,056
|
|
1,432
|
|
|
(26
|
)
|
||
Core net interest income
(b)
|
$
|
9,837
|
|
$
|
9,663
|
|
|
2
|
|
|
|
|
|
|
|||||
Average interest-earning assets
|
$
|
2,005,646
|
|
$
|
1,896,084
|
|
|
6
|
|
Less: Average market-based earning assets
|
507,499
|
|
508,941
|
|
|
—
|
|
||
Core average interest-earning assets
|
$
|
1,498,147
|
|
$
|
1,387,143
|
|
|
8
|
%
|
Net interest yield on interest-earning assets – managed basis
|
2.20
|
%
|
2.37
|
%
|
|
|
|||
Net interest yield on market-based
activities
|
0.84
|
|
1.14
|
|
|
|
|||
Core net interest yield on core average interest-earning assets
|
2.66
|
%
|
2.83
|
%
|
|
|
(a)
|
Includes core lending, investing and deposit-raising activities on a managed basis across each of the business segments and Corporate/Private Equity; excludes the market-based activities within the CIB.
|
(b)
|
Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.
|
(c)
|
For a reconciliation of net interest income on a reported and managed basis, see reconciliation from the Firm’s reported U.S. GAAP results to managed basis on page
16
of
this Form 10-Q
.
|
BUSINESS SEGMENT RESULTS
|
Three months ended March 31,
|
Total net revenue
|
|
Total Noninterest expense
|
|
Pre-provision profit/(loss)
|
|||||||||||||||||||||
(in millions)
|
2014
|
2013
|
Change
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
||||||||||||||
Consumer & Community Banking
|
$
|
10,460
|
|
$
|
11,615
|
|
(10
|
)%
|
|
$
|
6,437
|
|
$
|
6,790
|
|
(5
|
)%
|
|
$
|
4,023
|
|
$
|
4,825
|
|
(17
|
)%
|
Corporate & Investment Bank
|
8,606
|
|
10,140
|
|
(15
|
)
|
|
5,604
|
|
6,111
|
|
(8
|
)
|
|
3,002
|
|
4,029
|
|
(25
|
)
|
||||||
Commercial Banking
|
1,651
|
|
1,673
|
|
(1
|
)
|
|
686
|
|
644
|
|
7
|
|
|
965
|
|
1,029
|
|
(6
|
)
|
||||||
Asset Management
|
2,778
|
|
2,653
|
|
5
|
|
|
2,075
|
|
1,876
|
|
11
|
|
|
703
|
|
777
|
|
(10
|
)
|
||||||
Corporate/Private Equity
|
368
|
|
(233
|
)
|
NM
|
|
|
(166
|
)
|
2
|
|
NM
|
|
|
534
|
|
(235
|
)
|
NM
|
|
||||||
Total
|
$
|
23,863
|
|
$
|
25,848
|
|
(8
|
)%
|
|
$
|
14,636
|
|
$
|
15,423
|
|
(5
|
)%
|
|
$
|
9,227
|
|
$
|
10,425
|
|
(11
|
)%
|
Three months ended March 31,
|
Provision for credit losses
|
|
Net income/(loss)
|
|
Return on common equity
|
|||||||||||||||||
(in millions, except ratios)
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
||||||||||||
Consumer & Community Banking
|
$
|
816
|
|
$
|
549
|
|
49
|
%
|
|
$
|
1,936
|
|
$
|
2,586
|
|
(25
|
)%
|
|
15
|
%
|
23
|
%
|
Corporate & Investment Bank
|
49
|
|
11
|
|
345
|
|
|
1,979
|
|
2,610
|
|
(24
|
)
|
|
13
|
|
19
|
|
||||
Commercial Banking
|
5
|
|
39
|
|
(87
|
)
|
|
578
|
|
596
|
|
(3
|
)
|
|
17
|
|
18
|
|
||||
Asset Management
|
(9
|
)
|
21
|
|
NM
|
|
|
441
|
|
487
|
|
(9
|
)
|
|
20
|
|
22
|
|
||||
Corporate/Private Equity
|
(11
|
)
|
(3
|
)
|
(267
|
)
|
|
340
|
|
250
|
|
36
|
|
|
NM
|
|
NM
|
|
||||
Total
|
$
|
850
|
|
$
|
617
|
|
38
|
%
|
|
$
|
5,274
|
|
$
|
6,529
|
|
(19
|
)%
|
|
10
|
%
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSUMER & COMMUNITY BANKING
|
Selected income statement data
|
|
|
|
|
||||||
|
Three months ended March 31,
|
|||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|||||
Revenue
|
|
|
|
|
|
|||||
Lending- and deposit-related fees
|
$
|
703
|
|
|
$
|
723
|
|
|
(3
|
)%
|
Asset management, administration and commissions
|
503
|
|
|
533
|
|
|
(6
|
)
|
||
Mortgage fees and related income
|
514
|
|
|
1,450
|
|
|
(65
|
)
|
||
Card income
|
1,348
|
|
|
1,362
|
|
|
(1
|
)
|
||
All other income
|
366
|
|
|
338
|
|
|
8
|
|
||
Noninterest revenue
|
3,434
|
|
|
4,406
|
|
|
(22
|
)
|
||
Net interest income
|
7,026
|
|
|
7,209
|
|
|
(3
|
)
|
||
Total net revenue
|
10,460
|
|
|
11,615
|
|
|
(10
|
)
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
816
|
|
|
549
|
|
|
49
|
|
||
|
|
|
|
|
|
|||||
Noninterest expense
|
|
|
|
|
|
|||||
Compensation expense
|
2,739
|
|
|
3,006
|
|
|
(9
|
)
|
||
Noncompensation expense
|
3,604
|
|
|
3,676
|
|
|
(2
|
)
|
||
Amortization of intangibles
|
94
|
|
|
108
|
|
|
(13
|
)
|
||
Total noninterest expense
|
6,437
|
|
|
6,790
|
|
|
(5
|
)
|
||
Income before income tax expense
|
3,207
|
|
|
4,276
|
|
|
(25
|
)
|
||
Income tax expense
|
1,271
|
|
|
1,690
|
|
|
(25
|
)
|
||
Net income
|
$
|
1,936
|
|
|
$
|
2,586
|
|
|
(25
|
)%
|
|
|
|
|
|
|
|||||
Financial ratios
|
|
|
|
|
|
|||||
Return on common equity
|
15
|
%
|
|
23
|
%
|
|
|
|||
Overhead ratio
|
62
|
|
|
58
|
|
|
|
Selected metrics
|
|
|
|
|
||||||
|
As of or for the three months ended March 31,
|
|||||||||
(in millions, except headcount)
|
2014
|
|
2013
|
|
Change
|
|||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|||||
Total assets
|
$
|
441,502
|
|
|
$
|
458,902
|
|
|
(4
|
)%
|
Loans:
|
|
|
|
|
|
|||||
Loans retained
|
386,314
|
|
|
393,575
|
|
|
(2
|
)
|
||
Loans held-for-sale and loans at fair value
(a)
|
7,411
|
|
|
16,277
|
|
|
(54
|
)
|
||
Total loans
|
393,725
|
|
|
409,852
|
|
|
(4
|
)
|
||
Deposits
|
487,674
|
|
|
457,176
|
|
|
7
|
|
||
Equity
(b)
|
51,000
|
|
|
46,000
|
|
|
11
|
|
||
Selected balance sheet data (average)
|
|
|
|
|
|
|||||
Total assets
|
$
|
450,424
|
|
|
$
|
463,527
|
|
|
(3
|
)
|
Loans:
|
|
|
|
|
|
|||||
Loans retained
|
388,678
|
|
|
397,118
|
|
|
(2
|
)
|
||
Loans held-for-sale and loans at fair value
(a)
|
8,102
|
|
|
21,181
|
|
|
(62
|
)
|
||
Total loans
|
396,780
|
|
|
418,299
|
|
|
(5
|
)
|
||
Deposits
|
471,581
|
|
|
441,335
|
|
|
7
|
|
||
Equity
(b)
|
51,000
|
|
|
46,000
|
|
|
11
|
|
||
|
|
|
|
|
|
|||||
Headcount
|
145,651
|
|
|
161,123
|
|
|
(10
|
)%
|
(a)
|
Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets.
|
(b)
|
2014 includes $3.0 billion of capital held at the CCB level related to legacy mortgage servicing matters.
|
Selected metrics
|
|
|
|
|
||||||
|
As of or for the three months ended
March 31,
|
|||||||||
(in millions, except ratios and where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|||||
Credit data and quality statistics
|
|
|
|
|
|
|||||
Net charge-offs
(a)
|
$
|
1,266
|
|
|
$
|
1,699
|
|
|
(25
|
)%
|
Nonaccrual loans:
|
|
|
|
|
|
|||||
Nonaccrual loans retained
|
7,301
|
|
|
8,996
|
|
|
(19
|
)
|
||
Nonaccrual loans held-for-sale and loans at fair value
|
39
|
|
|
42
|
|
|
(7
|
)
|
||
Total nonaccrual
loans
(b)(c)(d)
|
7,340
|
|
|
9,038
|
|
|
(19
|
)
|
||
Nonperforming
assets
(b)(c)(d)
|
7,971
|
|
|
9,708
|
|
|
(18
|
)
|
||
Allowance for loan
losses
(a)
|
11,686
|
|
|
16,599
|
|
|
(30
|
)
|
||
Net charge-off rate
(a)(e)
|
1.32
|
%
|
|
1.74
|
%
|
|
|
|||
Net charge-off rate,
excluding PCI loans
(e)
|
1.53
|
|
|
2.04
|
|
|
|
|||
Allowance for loan losses to period-end loans retained
|
3.03
|
|
|
4.22
|
|
|
|
|||
Allowance for loan losses to period-end loans retained,
excluding PCI loans
(f)
|
2.27
|
|
|
3.25
|
|
|
|
|||
Allowance for loan losses to nonaccrual loans retained, excluding credit card
(b)(f)
|
55
|
|
|
65
|
|
|
|
|||
Nonaccrual loans to total period-end loans, excluding credit card
|
2.70
|
|
|
3.14
|
|
|
|
|||
Nonaccrual loans to total period-end loans, excluding credit card and PCI loans
(b)
|
3.33
|
|
|
3.94
|
|
|
|
|||
Business metrics
|
|
|
|
|
|
|||||
Number of:
|
|
|
|
|
|
|||||
Branches
|
5,632
|
|
|
5,632
|
|
|
—
|
|
||
ATMs
(g)
|
20,370
|
|
|
19,418
|
|
|
5
|
|
||
Active online customers (in thousands)
|
35,038
|
|
|
32,281
|
|
|
9
|
|
||
Active mobile customers (in thousands)
|
16,405
|
|
|
13,263
|
|
|
24
|
%
|
(a)
|
Net charge-offs and the net charge-off rate for the three months ended March 31, 2014 excluded $61 million of write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans. For further information, see Consumer Credit Portfolio on pages 120–129 of JPMorgan Chase’s 2013 Annual Report.
|
(b)
|
Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.
|
(c)
|
Certain mortgage loans originated with the intent to sell are classified as trading assets on the Consolidated Balance Sheets.
|
(d)
|
At March 31, 2014 and 2013, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.7 billion and $10.9 billion, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of $2.1 billion and $1.7 billion, respectively; and (3) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $387 million and $523 million, respectively, that are 90 or more days past due. These amounts have been excluded from nonaccrual loans based upon the government guarantee.
|
(e)
|
Loans held-for-sale and loans accounted for at fair value were excluded when calculating the net charge-off rate.
|
(f)
|
The allowance for loan losses for PCI loans was $4.1 billion and $5.7 billion at March 31, 2014 and 2013, respectively; these amounts were also excluded from the applicable ratios.
|
(g)
|
Includes Express Banking Kiosks (“EBK”). Prior periods were revised to conform with the current presentation.
|
Selected metrics
|
|
|
|
|
||||||
|
As of or for the three months ended March 31,
|
|||||||||
(in millions, except ratios and where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|||||
Business metrics
|
|
|
|
|
|
|||||
Business banking origination volume
|
$
|
1,504
|
|
|
$
|
1,234
|
|
|
22
|
%
|
Period-end loans
|
19,589
|
|
|
18,739
|
|
|
5
|
|
||
Period-end deposits:
|
|
|
|
|
|
|||||
Checking
|
199,717
|
|
|
180,326
|
|
|
11
|
|
||
Savings
|
250,292
|
|
|
227,162
|
|
|
10
|
|
||
Time and other
|
25,092
|
|
|
30,431
|
|
|
(18
|
)
|
||
Total period-end deposits
|
475,101
|
|
|
437,919
|
|
|
8
|
|
||
Average loans
|
19,450
|
|
|
18,711
|
|
|
4
|
|
||
Average deposits:
|
|
|
|
|
|
|||||
Checking
|
189,487
|
|
|
168,697
|
|
|
12
|
|
||
Savings
|
243,500
|
|
|
221,394
|
|
|
10
|
|
||
Time and other
|
25,478
|
|
|
31,029
|
|
|
(18
|
)
|
||
Total average deposits
|
458,465
|
|
|
421,120
|
|
|
9
|
|
||
Deposit margin
|
2.27
|
%
|
|
2.36
|
%
|
|
|
|||
Average assets
|
$
|
38,121
|
|
|
$
|
36,302
|
|
|
5
|
|
Credit data and quality statistics
|
|
|
|
|
||||||
Net charge-offs
|
$
|
76
|
|
|
$
|
61
|
|
|
25
|
|
Net charge-off rate
|
1.58
|
%
|
|
1.32
|
%
|
|
|
|||
Allowance for loan losses
|
$
|
707
|
|
|
$
|
698
|
|
|
1
|
|
Nonperforming assets
|
365
|
|
|
465
|
|
|
(22
|
)
|
||
Retail branch business metrics
|
|
|
|
|
||||||
Net new investment assets
|
$
|
4,241
|
|
|
$
|
4,932
|
|
|
(14
|
)
|
Client investment assets
|
195,706
|
|
|
168,527
|
|
|
16
|
|
||
% managed accounts
|
37
|
%
|
|
31
|
%
|
|
|
|||
Number of:
|
|
|
|
|
|
|||||
Chase Private Client locations
|
2,244
|
|
|
1,392
|
|
|
61
|
|
||
Personal bankers
|
22,654
|
|
|
23,130
|
|
|
(2
|
)
|
||
Sales specialists
|
4,817
|
|
|
6,102
|
|
|
(21
|
)
|
||
Client advisors
|
3,062
|
|
|
2,998
|
|
|
2
|
|
||
Chase Private Clients
|
239,665
|
|
|
134,206
|
|
|
79
|
|
||
Accounts
(in thousands)
(a)
|
29,819
|
|
|
28,530
|
|
|
5
|
|
||
Households (in millions)
|
25.2
|
|
|
24.4
|
|
|
3
|
%
|
(a)
|
Includes checking accounts and Chase Liquid
®
cards.
|
Selected financial statement data
|
||||||||||
|
As of or for the three months ended March 31,
|
|||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|||||
Revenue
|
|
|
|
|
|
|||||
Mortgage fees and related income
|
$
|
514
|
|
|
$
|
1,450
|
|
|
(65
|
)%
|
All other income
|
(3
|
)
|
|
93
|
|
|
NM
|
|
||
Noninterest revenue
|
511
|
|
|
1,543
|
|
|
(67
|
)
|
||
Net interest income
|
1,058
|
|
|
1,175
|
|
|
(10
|
)
|
||
Total net revenue
|
1,569
|
|
|
2,718
|
|
|
(42
|
)
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
(23
|
)
|
|
(198
|
)
|
|
88
|
|
||
|
|
|
|
|
|
|||||
Noninterest expense
|
1,403
|
|
|
1,806
|
|
|
(22
|
)
|
||
Income before income tax expense
|
189
|
|
|
1,110
|
|
|
(83
|
)
|
||
Net income
|
$
|
114
|
|
|
$
|
673
|
|
|
(83
|
)
|
|
|
|
|
|
|
|||||
Return on common equity
|
3
|
%
|
|
14
|
%
|
|
|
|||
Overhead ratio
|
89
|
|
|
66
|
|
|
|
|||
Equity (period-end and average)
|
$
|
18,000
|
|
|
$
|
19,500
|
|
|
(8
|
)%
|
Functional results
|
||||||||||
|
Three months ended March 31,
|
|||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|||||
Mortgage Production
|
|
|
|
|
|
|||||
Production revenue
|
$
|
161
|
|
|
$
|
995
|
|
|
(84
|
)%
|
Production-related net interest & other income
|
131
|
|
|
223
|
|
|
(41
|
)
|
||
Production-related revenue, excluding repurchase (losses)/benefits
|
292
|
|
|
1,218
|
|
|
(76
|
)
|
||
Production expense
(a)
|
478
|
|
|
710
|
|
|
(33
|
)
|
||
Income, excluding repurchase (losses)/benefits
|
(186
|
)
|
|
508
|
|
|
NM
|
|
||
Repurchase (losses)/benefits
|
128
|
|
|
(81
|
)
|
|
NM
|
|
||
Income/(loss) before income tax expense/(benefit)
|
(58
|
)
|
|
427
|
|
|
NM
|
|
||
|
|
|
|
|
|
|||||
Mortgage Servicing
|
|
|
|
|
|
|||||
Loan servicing revenue
|
870
|
|
|
936
|
|
|
(7
|
)
|
||
Servicing-related net interest & other income
|
88
|
|
|
100
|
|
|
(12
|
)
|
||
Servicing-related revenue
|
958
|
|
|
1,036
|
|
|
(8
|
)
|
||
Changes in MSR asset fair value due to collection/realization of expected cash flows
|
(245
|
)
|
|
(258
|
)
|
|
5
|
|
||
Default servicing expense
|
364
|
|
|
497
|
|
|
(27
|
)
|
||
Core servicing expense
(a)
|
218
|
|
|
240
|
|
|
(9
|
)
|
||
Income, excluding MSR risk management
|
131
|
|
|
41
|
|
|
220
|
|
||
MSR risk management, including related net interest income/(expense)
|
(401
|
)
|
|
(142
|
)
|
|
(182
|
)
|
||
Income/(loss) before income tax expense/(benefit)
|
(270
|
)
|
|
(101
|
)
|
|
(167
|
)
|
||
|
|
|
|
|
|
|||||
Real Estate Portfolios
|
|
|
|
|
|
|||||
Noninterest revenue
|
(45
|
)
|
|
(17
|
)
|
|
(165
|
)
|
||
Net interest income
|
882
|
|
|
962
|
|
|
(8
|
)
|
||
Total net revenue
|
837
|
|
|
945
|
|
|
(11
|
)
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
(26
|
)
|
|
(202
|
)
|
|
87
|
|
||
|
|
|
|
|
|
|||||
Noninterest expense
|
346
|
|
|
363
|
|
|
(5
|
)
|
||
Income before income tax expense
|
517
|
|
|
784
|
|
|
(34
|
)
|
||
Mortgage Banking income before income tax expense
|
$
|
189
|
|
|
$
|
1,110
|
|
|
(83
|
)
|
Mortgage Banking net income
|
$
|
114
|
|
|
$
|
673
|
|
|
(83
|
)%
|
|
|
|
|
|
|
|||||
Overhead ratios
|
|
|
|
|
|
|||||
Mortgage Production
|
113
|
%
|
|
62
|
%
|
|
|
|||
Mortgage Servicing
|
186
|
|
|
116
|
|
|
|
|||
Real Estate Portfolios
|
41
|
|
|
38
|
|
|
|
(a)
|
Includes provision for credit losses.
|
(a)
|
Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.
|
(b)
|
Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices).
|
(a)
|
Predominantly represents prime mortgage loans repurchased from Government National Mortgage Association (“Ginnie Mae”) pools, which are insured by U.S. government agencies.
|
(b)
|
Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets.
|
(c)
|
At March 31, 2014 and 2013, excluded mortgage loans insured by U.S. government agencies of $8.8 billion and $11.9 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. For further discussion, see Note 13 on
pages 119–139
of this Form 10-Q which summarizes loan delinquency information.
|
(d)
|
At March 31, 2014 and 2013, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.7 billion and $10.9 billion, respectively, that are 90 or more days past due; and (2) real estate owned insured by U.S. government agencies of $2.1 billion and $1.7 billion, respectively. These amounts have been excluded from nonaccrual loans based upon the government guarantee. For further discussion, see Note 13 on
pages 119–139
of this Form 10-Q which summarizes loan delinquency information.
|
Selected metrics
|
|
|
|
|
|
|||||
|
As of or for the three months ended March 31,
|
|||||||||
(in billions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|||||
Business metrics
|
|
|
|
|
|
|||||
Mortgage origination volume by channel
|
|
|
|
|
|
|||||
Retail
|
$
|
6.7
|
|
|
$
|
26.2
|
|
|
(74
|
)%
|
Correspondent
(a)
|
10.3
|
|
|
26.5
|
|
|
(61
|
)
|
||
Total mortgage origination volume
(b)
|
$
|
17.0
|
|
|
$
|
52.7
|
|
|
(68
|
)
|
Mortgage application volume by channel
|
|
|
|
|
|
|||||
Retail
|
$
|
14.6
|
|
|
$
|
34.7
|
|
|
(58
|
)
|
Correspondent
(a)
|
$
|
11.5
|
|
|
25.8
|
|
|
(55
|
)
|
|
Total mortgage application volume
|
$
|
26.1
|
|
|
$
|
60.5
|
|
|
(57
|
)
|
Third-party mortgage loans serviced (period-end)
|
$
|
803.1
|
|
|
$
|
849.2
|
|
|
(5
|
)
|
Third-party mortgage loans serviced (average)
|
809.3
|
|
|
854.3
|
|
|
(5
|
)
|
||
MSR carrying value (period-end)
|
8.5
|
|
|
7.9
|
|
|
8
|
%
|
||
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)
|
1.06
|
%
|
|
0.93
|
%
|
|
|
|||
Ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average)
|
0.37
|
|
|
0.42
|
|
|
|
|||
MSR revenue multiple
(c)
|
2.86
|
x
|
|
2.21
|
x
|
|
|
(a)
|
Includes rural housing loans sourced through correspondents, and prior to November 2013, through both brokers and correspondents, which are underwritten and closed with pre-funding loan approval from the U.S. Department of Agriculture Rural Development, which acts as the guarantor in the transaction.
|
(b)
|
Firmwide mortgage origination volume was $18.2 billion and $55.1 billion for the three months ended March 31, 2014 and 2013, respectively.
|
(c)
|
Represents the ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) divided by the ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average).
|
Real Estate Portfolios
|
|
|
||||||||
Selected metrics
|
|
|
|
|
|
|||||
|
As of or for the three
months ended March 31,
|
|||||||||
(in millions)
|
2014
|
|
2013
|
|
Change
|
|||||
Loans, excluding PCI
|
|
|
|
|
|
|||||
Period-end loans owned:
|
|
|
|
|
|
|||||
Home equity
|
$
|
56,131
|
|
|
$
|
64,798
|
|
|
(13
|
)%
|
Prime mortgage, including option ARMs
|
51,520
|
|
|
41,997
|
|
|
23
|
|
||
Subprime mortgage
|
6,869
|
|
|
8,003
|
|
|
(14
|
)
|
||
Other
|
529
|
|
|
604
|
|
|
(12
|
)
|
||
Total period-end loans owned
|
$
|
115,049
|
|
|
$
|
115,402
|
|
|
—
|
|
Average loans owned:
|
|
|
|
|
|
|||||
Home equity
|
$
|
57,015
|
|
|
$
|
66,133
|
|
|
(14
|
)
|
Prime mortgage, including option ARMs
|
50,735
|
|
|
41,808
|
|
|
21
|
|
||
Subprime mortgage
|
7,007
|
|
|
8,140
|
|
|
(14
|
)
|
||
Other
|
540
|
|
|
619
|
|
|
(13
|
)
|
||
Total average loans owned
|
$
|
115,297
|
|
|
$
|
116,700
|
|
|
(1
|
)
|
PCI loans
|
|
|
|
|
|
|||||
Period-end loans owned:
|
|
|
|
|
|
|||||
Home equity
|
$
|
18,525
|
|
|
$
|
20,525
|
|
|
(10
|
)
|
Prime mortgage
|
11,658
|
|
|
13,366
|
|
|
(13
|
)
|
||
Subprime mortgage
|
4,062
|
|
|
4,561
|
|
|
(11
|
)
|
||
Option ARMs
|
17,361
|
|
|
19,985
|
|
|
(13
|
)
|
||
Total period-end loans owned
|
$
|
51,606
|
|
|
$
|
58,437
|
|
|
(12
|
)
|
Average loans owned:
|
|
|
|
|
|
|||||
Home equity
|
$
|
18,719
|
|
|
$
|
20,745
|
|
|
(10
|
)
|
Prime mortgage
|
11,870
|
|
|
13,524
|
|
|
(12
|
)
|
||
Subprime mortgage
|
4,128
|
|
|
4,589
|
|
|
(10
|
)
|
||
Option ARMs
|
17,687
|
|
|
20,227
|
|
|
(13
|
)
|
||
Total average loans owned
|
$
|
52,404
|
|
|
$
|
59,085
|
|
|
(11
|
)
|
Total Real Estate Portfolios
|
|
|
|
|
|
|||||
Period-end loans owned:
|
|
|
|
|
|
|||||
Home equity
|
$
|
74,656
|
|
|
$
|
85,323
|
|
|
(13
|
)
|
Prime mortgage, including option ARMs
|
80,539
|
|
|
75,348
|
|
|
7
|
|
||
Subprime mortgage
|
10,931
|
|
|
12,564
|
|
|
(13
|
)
|
||
Other
|
529
|
|
|
604
|
|
|
(12
|
)
|
||
Total period-end loans owned
|
$
|
166,655
|
|
|
$
|
173,839
|
|
|
(4
|
)
|
Average loans owned:
|
|
|
|
|
|
|||||
Home equity
|
$
|
75,734
|
|
|
$
|
86,878
|
|
|
(13
|
)
|
Prime mortgage, including option ARMs
|
80,292
|
|
|
75,559
|
|
|
6
|
|
||
Subprime mortgage
|
11,135
|
|
|
12,729
|
|
|
(13
|
)
|
||
Other
|
540
|
|
|
619
|
|
|
(13
|
)
|
||
Total average loans owned
|
$
|
167,701
|
|
|
$
|
175,785
|
|
|
(5
|
)
|
Average assets
|
$
|
164,642
|
|
|
$
|
166,373
|
|
|
(1
|
)
|
Home equity origination volume
|
655
|
|
|
402
|
|
|
63
|
%
|
(a)
|
Net charge-offs and the net charge-off rate for the three months ended March 31, 2014 excluded $61 million of write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans. For further information, see Consumer Credit Portfolio on pages 120–129 of JPMorgan Chase’s 2013 Annual Report.
|
(b)
|
The 30+ day delinquency rate for PCI loans was 14.34% and 19.26% at March 31, 2014 and 2013, respectively.
|
(c)
|
Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.
|
Selected financial statement data
|
||||||||||
|
As of or for the three
months ended March 31,
|
|||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|||||
Revenue
|
|
|
|
|
|
|||||
Card income
|
$
|
972
|
|
|
$
|
1,013
|
|
|
(4
|
)%
|
All other income
|
279
|
|
|
245
|
|
|
14
|
|
||
Noninterest revenue
|
1,251
|
|
|
1,258
|
|
|
(1
|
)
|
||
Net interest income
|
3,260
|
|
|
3,462
|
|
|
(6
|
)
|
||
Total net revenue
|
4,511
|
|
|
4,720
|
|
|
(4
|
)
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
763
|
|
|
686
|
|
|
11
|
|
||
|
|
|
|
|
|
|||||
Noninterest expense
|
1,969
|
|
|
1,943
|
|
|
1
|
|
||
Income before income tax expense
|
1,779
|
|
|
2,091
|
|
|
(15
|
)
|
||
Net income
|
$
|
1,082
|
|
|
$
|
1,272
|
|
|
(15
|
)
|
|
|
|
|
|
|
|||||
Return on common equity
|
23
|
%
|
|
33
|
%
|
|
|
|||
Overhead ratio
|
44
|
|
|
41
|
|
|
|
|||
Equity (period-end and average)
|
$
|
19,000
|
|
|
$
|
15,500
|
|
|
23
|
%
|
Selected metrics
|
||||||||||
|
As of or for the three
months ended March 31,
|
|||||||||
(in millions, except ratios and where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|||||
Loans:
|
|
|
|
|
|
|||||
Credit Card
|
$
|
121,816
|
|
|
$
|
121,865
|
|
|
—
|
|
Auto
|
52,952
|
|
|
50,552
|
|
|
5
|
|
||
Student
|
10,316
|
|
|
11,323
|
|
|
(9
|
)
|
||
Total loans
|
$
|
185,084
|
|
|
$
|
183,740
|
|
|
1
|
|
Selected balance sheet
data (average)
|
|
|
|
|
|
|||||
Total assets
|
$
|
201,771
|
|
|
$
|
196,634
|
|
|
3
|
|
Loans:
|
|
|
|
|
|
|||||
Credit Card
|
123,261
|
|
|
123,564
|
|
|
—
|
|
||
Auto
|
52,741
|
|
|
50,045
|
|
|
5
|
|
||
Student
|
10,449
|
|
|
11,459
|
|
|
(9
|
)
|
||
Total loans
|
$
|
186,451
|
|
|
$
|
185,068
|
|
|
1
|
|
Business metrics
|
|
|
|
|
|
|||||
Credit Card, excluding Commercial Card
|
|
|
|
|
|
|||||
Sales volume (in billions)
|
$
|
104.5
|
|
|
$
|
94.7
|
|
|
10
|
|
New accounts opened
|
2.1
|
|
|
1.7
|
|
|
24
|
|
||
Open accounts
|
65.5
|
|
|
64.7
|
|
|
1
|
|
||
Accounts with sales activity
|
31.0
|
|
|
29.4
|
|
|
5
|
|
||
% of accounts acquired online
|
51
|
%
|
|
52
|
%
|
|
|
|||
Merchant Services (Chase Paymentech Solutions)
|
|
|
|
|
|
|||||
Merchant processing volume (in billions)
|
$
|
195.4
|
|
|
$
|
175.8
|
|
|
11
|
|
Total transactions
(in billions)
|
9.1
|
|
|
8.3
|
|
|
10
|
|
||
Auto
|
|
|
|
|
|
|||||
Origination volume
(in billions)
|
$
|
6.7
|
|
|
$
|
6.5
|
|
|
3
|
%
|
Selected metrics
|
|||||||||||
|
|
As of or for the three
months ended March 31,
|
|||||||||
(in millions, except ratios)
|
|
2014
|
|
2013
|
|
Change
|
|||||
Credit data and quality statistics
|
|
|
|
|
|
|
|||||
Net charge-offs:
|
|
|
|
|
|
|
|||||
Credit Card
|
|
$
|
888
|
|
|
$
|
1,082
|
|
|
(18
|
)
|
Auto
|
|
41
|
|
|
40
|
|
|
3
|
|
||
Student
|
|
84
|
|
|
64
|
|
|
31
|
|
||
Total net charge-offs
|
|
$
|
1,013
|
|
|
$
|
1,186
|
|
|
(15
|
)
|
Net charge-off rate:
|
|
|
|
|
|
|
|||||
Credit Card
(a)
|
|
2.93
|
%
|
|
3.55
|
%
|
|
|
|||
Auto
|
|
0.32
|
|
|
0.32
|
|
|
|
|||
Student
|
|
3.26
|
|
|
2.27
|
|
|
|
|||
Total net charge-off rate
|
|
2.21
|
|
|
2.60
|
|
|
|
|||
Delinquency rates
|
|
|
|
|
|
|
|||||
30+ day delinquency rate:
|
|
|
|
|
|
|
|||||
Credit Card
(b)
|
|
1.61
|
|
|
1.94
|
|
|
|
|||
Auto
|
|
0.92
|
|
|
0.92
|
|
|
|
|||
Student
(c)
|
|
2.75
|
|
|
2.06
|
|
|
|
|||
Total 30+ day delinquency rate
|
|
1.47
|
|
|
1.67
|
|
|
|
|||
90+ day delinquency rate – Credit Card
(b)
|
|
0.80
|
|
|
0.97
|
|
|
|
|||
Nonperforming assets
(d)
|
|
$
|
271
|
|
|
$
|
251
|
|
|
8
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|||||
Credit Card
|
|
$
|
3,591
|
|
|
$
|
4,998
|
|
|
(28
|
)
|
Auto & Student
|
|
903
|
|
|
954
|
|
|
(5
|
)
|
||
Total allowance for loan losses
|
|
$
|
4,494
|
|
|
$
|
5,952
|
|
|
(24
|
)%
|
Allowance for loan losses to period-end loans:
|
|
|
|
|
|
|
|||||
Credit Card
(b)
|
|
2.96
|
%
|
|
4.10
|
%
|
|
|
|||
Auto & Student
|
|
1.43
|
|
|
1.54
|
|
|
|
|||
Total allowance for loan losses to period-end loans
|
|
2.43
|
|
|
3.24
|
|
|
|
(a)
|
Average credit card loans included loans held-for-sale of $315 million for the three months ended March 31, 2014. This amount is excluded when calculating the net charge-off rate. There were no loans held-for-sale for the three months ended March 31, 2013.
|
(b)
|
Period-end credit card loans included loans held-for-sale of $304 million at March 31, 2014. This amount was excluded when calculating delinquency rates and the allowance for loan losses to period-end loans. There were no loans held-for-sale at March 31, 2013.
|
(c)
|
Excluded student loans insured by U.S. government agencies under the FFELP of $687 million and $881 million at March 31, 2014 and 2013, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
|
(d)
|
Nonperforming assets excluded student loans insured by U.S. government agencies under the FFELP of $387 million and $523 million at March 31, 2014 and 2013, respectively, that are 90 or more days past due. These amounts have been excluded from nonaccrual loans based upon the government guarantee.
|
CORPORATE & INVESTMENT BANK
|
Selected income statement data
|
|
|
||||||||
|
Three months ended March 31,
|
|||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|||||
Revenue
|
|
|
|
|
|
|||||
Investment banking fees
|
$
|
1,444
|
|
|
$
|
1,433
|
|
|
1
|
%
|
Principal transactions
(a)
|
2,886
|
|
|
3,961
|
|
|
(27
|
)
|
||
Lending- and deposit-related fees
|
444
|
|
|
473
|
|
|
(6
|
)
|
||
Asset management, administration and commissions
|
1,179
|
|
|
1,167
|
|
|
1
|
|
||
All other income
|
283
|
|
|
323
|
|
|
(12
|
)
|
||
Noninterest revenue
|
6,236
|
|
|
7,357
|
|
|
(15
|
)
|
||
Net interest income
|
2,370
|
|
|
2,783
|
|
|
(15
|
)
|
||
Total net revenue
(b)
|
8,606
|
|
|
10,140
|
|
|
(15
|
)
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
49
|
|
|
11
|
|
|
345
|
|
||
|
|
|
|
|
|
|||||
Noninterest expense
|
|
|
|
|
|
|||||
Compensation expense
|
2,870
|
|
|
3,376
|
|
|
(15
|
)
|
||
Noncompensation expense
|
2,734
|
|
|
2,735
|
|
|
—
|
|
||
Total noninterest expense
|
5,604
|
|
|
6,111
|
|
|
(8
|
)
|
||
Income before income tax expense
|
2,953
|
|
|
4,018
|
|
|
(27
|
)
|
||
Income tax expense
|
974
|
|
|
1,408
|
|
|
(31
|
)
|
||
Net income
|
$
|
1,979
|
|
|
$
|
2,610
|
|
|
(24
|
)%
|
Financial ratios
|
|
|
|
|
|
|||||
Return on common equity
(c)
|
13
|
%
|
|
19
|
%
|
|
|
|||
Overhead ratio
(d)
|
65
|
|
|
60
|
|
|
|
|||
Compensation expense as a percentage of total net revenue
(e)
|
33
|
|
|
33
|
|
|
|
(a)
|
Included FVA (effective fourth quarter 2013) and DVA on OTC derivatives and structured notes, net of associated hedging activity.
|
(b)
|
Included tax-equivalent adjustments, predominantly due to income tax credits related to affordable housing and alternative energy investments, as well as tax-exempt income from municipal bond investments of $600 million and $529 million for the three months ended
March 31, 2014
and 2013, respectively.
|
(c)
|
Return on equity excluding DVA, a non-GAAP financial measure, was 18% for the three months ended March 31, 2013.
|
(d)
|
Overhead ratio excluding DVA, a non-GAAP financial measure, was 61% for the three months ended March 31, 2013.
|
(e)
|
Compensation expense as a percentage of total net revenue excluding DVA, a non-GAAP financial measure, was 34% for the three months ended March 31, 2013.
|
Selected income statement data
|
|
|
||||||||
|
Three months ended March 31,
|
|||||||||
(in millions)
|
2014
|
|
2013
|
|
Change
|
|||||
Revenue by business
|
|
|
|
|
|
|||||
Advisory
|
$
|
383
|
|
|
$
|
255
|
|
|
50
|
%
|
Equity underwriting
|
353
|
|
|
273
|
|
|
29
|
|
||
Debt underwriting
|
708
|
|
|
905
|
|
|
(22
|
)
|
||
Total investment banking fees
|
1,444
|
|
|
1,433
|
|
|
1
|
|
||
Treasury Services
|
1,009
|
|
|
1,044
|
|
|
(3
|
)
|
||
Lending
|
284
|
|
|
498
|
|
|
(43
|
)
|
||
Total Banking
|
2,737
|
|
|
2,975
|
|
|
(8
|
)
|
||
Fixed Income Markets
|
3,760
|
|
|
4,752
|
|
|
(21
|
)
|
||
Equity Markets
|
1,295
|
|
|
1,340
|
|
|
(3
|
)
|
||
Securities Services
|
1,011
|
|
|
974
|
|
|
4
|
|
||
Credit Adjustments & Other
(a)
|
(197
|
)
|
|
99
|
|
|
NM
|
|
||
Total Markets & Investor Services
|
5,869
|
|
|
7,165
|
|
|
(18
|
)
|
||
Total net revenue
|
$
|
8,606
|
|
|
$
|
10,140
|
|
|
(15
|
)%
|
(a)
|
Primarily credit portfolio credit valuation adjustments (“CVA”) managed by credit portfolio group, FVA (effective fourth quarter 2013) and DVA on OTC derivatives and structured notes, and nonperforming derivat
i
ve receivable results. FVA and DVA losses were $(53) million for the three months ended
March 31, 2014
. DVA gains were $126 million for the three months ended March 31, 2013. Results are presented net of associated hedging activities and includes FVA amounts allocated to Fixed Income Markets and Equity Markets.
|
Selected metrics
|
|
|
|
|
||||||
|
As of or for the three months
ended March 31, |
|||||||||
(in millions, except headcount)
|
2014
|
|
2013
|
|
Change
|
|||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|||||
Assets
|
$
|
879,992
|
|
|
$
|
872,259
|
|
|
1
|
%
|
Loans:
|
|
|
|
|
|
|||||
Loans retained
(a)
|
96,245
|
|
|
112,005
|
|
|
(14
|
)
|
||
Loans held-for-sale and loans at fair value
|
8,421
|
|
|
5,506
|
|
|
53
|
|
||
Total loans
|
104,666
|
|
|
117,511
|
|
|
(11
|
)
|
||
Equity
|
61,000
|
|
|
56,500
|
|
|
8
|
|
||
Selected balance sheet data (average)
|
|
|
|
|
|
|||||
Assets
|
$
|
851,469
|
|
|
$
|
870,467
|
|
|
(2
|
)
|
Trading assets-debt and equity instruments
|
306,140
|
|
|
342,323
|
|
|
(11
|
)
|
||
Trading assets-derivative receivables
|
64,087
|
|
|
71,111
|
|
|
(10
|
)
|
||
Loans:
|
|
|
|
|
|
|||||
Loans retained
(a)
|
95,798
|
|
|
106,793
|
|
|
(10
|
)
|
||
Loans held-for-sale and loans at fair value
|
8,086
|
|
|
5,254
|
|
|
54
|
|
||
Total loans
|
103,884
|
|
|
112,047
|
|
|
(7
|
)
|
||
Equity
|
61,000
|
|
|
56,500
|
|
|
8
|
|
||
Headcount
|
51,837
|
|
|
51,634
|
|
|
—%
|
|
(a)
|
Loans retained includes credit portfolio loans, trade finance loans, other held-for-investment loans and overdrafts.
|
Selected metrics
|
|
|
|
|
|
|||||
|
As of or for the three months
ended March 31, |
|||||||||
(in millions, except ratios and where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|||||
Credit data and quality statistics
|
|
|
|
|
|
|||||
Net charge-offs/(recoveries)
|
$
|
(1
|
)
|
|
$
|
19
|
|
|
NM
|
|
Nonperforming assets:
|
|
|
|
|
|
|||||
Nonaccrual loans:
|
|
|
|
|
|
|||||
Nonaccrual loans
retained
(a)(b)
|
75
|
|
|
340
|
|
|
(78
|
)%
|
||
Nonaccrual loans
held-for-sale and loans at fair value
|
176
|
|
|
259
|
|
|
(32
|
)
|
||
Total nonaccrual loans
|
251
|
|
|
599
|
|
|
(58
|
)
|
||
Derivative receivables
|
392
|
|
|
412
|
|
|
(5
|
)
|
||
Assets acquired in loan satisfactions
|
110
|
|
|
55
|
|
|
100
|
|
||
Total nonperforming assets
|
753
|
|
|
1,066
|
|
|
(29
|
)
|
||
Allowance for credit losses:
|
|
|
|
|
|
|||||
Allowance for loan losses
|
1,187
|
|
|
1,246
|
|
|
(5
|
)
|
||
Allowance for lending-related commitments
|
484
|
|
|
521
|
|
|
(7
|
)
|
||
Total allowance for credit losses
|
1,671
|
|
|
1,767
|
|
|
(5
|
)
|
||
Net charge-off/(recovery)
rate
(a)
|
—
|
|
|
0.07
|
%
|
|
|
|||
Allowance for loan losses to period-end loans retained
(a)
|
1.23
|
|
|
1.11
|
|
|
|
|||
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits
(c)
|
2.18
|
|
|
2.17
|
|
|
|
|||
Allowance for loan losses to nonaccrual loans retained
(a)(b)
|
1,583
|
|
|
366
|
|
|
|
|||
Nonaccrual loans to total period-end loans
|
0.24
|
|
|
0.51
|
|
|
|
|||
Business metrics
|
|
|
|
|
|
|||||
Assets under custody (“AUC”) by asset class (period-end) in billions:
|
|
|
|
|
|
|||||
Fixed Income
|
$
|
12,401
|
|
|
$
|
11,730
|
|
|
6
|
|
Equity
|
6,998
|
|
|
6,007
|
|
|
16
|
|
||
Other
(d)
|
1,736
|
|
|
1,557
|
|
|
11
|
|
||
Total AUC
|
$
|
21,135
|
|
|
$
|
19,294
|
|
|
10
|
|
Client deposits and other third party liabilities (average)
|
$
|
412,551
|
|
|
$
|
357,262
|
|
|
15
|
|
Trade finance loans (period-end)
|
32,491
|
|
|
38,985
|
|
|
(17
|
)%
|
(a)
|
Loans retained includes credit portfolio loans, trade finance loans, other held-for-investment loans and overdrafts.
|
(b)
|
Allowance for loan losses of $13 million and $73 million were held against these nonaccrual loans at
March 31, 2014
and 2013, respectively.
|
(c)
|
Management uses allowance for loan losses to period-end loans retained, excluding trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of CIB’s allowance coverage ratio.
|
(d)
|
Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts.
|
Market shares and rankings
(a)
|
|
|
|||||
|
Three
months ended
March 31, 2014 |
Full-year 2013
|
|||||
|
Market Share
|
Rankings
|
Market Share
|
Rankings
|
|||
Global investment banking fees
(b)
|
8.2
|
%
|
#1
|
8.6
|
%
|
#1
|
|
Debt, equity and equity-related
|
|
|
|
|
|||
Global
|
7.0
|
|
1
|
7.3
|
|
1
|
|
U.S.
|
12.3
|
|
1
|
11.9
|
|
1
|
|
Syndicated loans
|
|
|
|
|
|||
Global
|
12.2
|
|
1
|
9.9
|
|
1
|
|
U.S.
|
17.2
|
|
1
|
17.6
|
|
1
|
|
Long-term debt
(c)
|
|
|
|
|
|||
Global
|
7.0
|
|
1
|
7.2
|
|
1
|
|
U.S.
|
11.5
|
|
1
|
11.7
|
|
1
|
|
Equity and equity-related
|
|
|
|
|
|||
Global
(d)
|
7.7
|
|
3
|
8.2
|
|
2
|
|
U.S.
|
10.8
|
|
2
|
12.1
|
|
2
|
|
Announced M&A
(e)
|
|
|
|
|
|||
Global
|
25.1
|
|
3
|
23.0
|
|
2
|
|
U.S.
|
35.5
|
|
3
|
35.9
|
|
1
|
|
(a)
|
Source: Dealogic. Global Investment Banking fees reflects the ranking of fees and market share. The remaining rankings reflects transaction volume and market share. Global announced M&A is based on transaction value at announcement; because of joint M&A assignments, M&A market share of all participants will add up to more than 100%. All other transaction volume-based rankings are based on proceeds, with full credit to each book manager/equal if joint.
|
(b)
|
Global investment banking fees rankings exclude money market, short-term debt and shelf deals.
|
(c)
|
Long-term debt rankings include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, asset-backed securities (“ABS”) and mortgage-backed securities; and exclude money market, short-term debt, and U.S. municipal securities.
|
(d)
|
Global equity and equity-related ranking includes rights offerings and Chinese A-Shares.
|
(e)
|
Announced M&A reflects the removal of any withdrawn transactions. U.S. announced M&A represents any U.S. involvement ranking.
|
International metrics
|
|
|
|
|
||||||
|
As of or for the three months
ended March 31, |
|||||||||
(in millions, except where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|||||
Total net revenue
(a)
|
|
|
|
|
|
|||||
Europe/Middle East/Africa
|
$
|
3,019
|
|
|
$
|
3,383
|
|
|
(11
|
)%
|
Asia/Pacific
|
1,026
|
|
|
1,165
|
|
|
(12
|
)
|
||
Latin America/Caribbean
|
270
|
|
|
400
|
|
|
(33
|
)
|
||
Total international net revenue
|
4,315
|
|
|
4,948
|
|
|
(13
|
)
|
||
North America
|
4,291
|
|
|
5,192
|
|
|
(17
|
)
|
||
Total net revenue
|
$
|
8,606
|
|
|
$
|
10,140
|
|
|
(15
|
)
|
|
|
|
|
|
|
|||||
Loans (period-end)
(a)
|
|
|
|
|
|
|||||
Europe/Middle East/Africa
|
$
|
27,878
|
|
|
$
|
33,674
|
|
|
(17
|
)
|
Asia/Pacific
|
24,759
|
|
|
29,908
|
|
|
(17
|
)
|
||
Latin America/Caribbean
|
8,589
|
|
|
10,308
|
|
|
(17
|
)
|
||
Total international loans
|
61,226
|
|
|
73,890
|
|
|
(17
|
)
|
||
North America
|
35,019
|
|
|
38,115
|
|
|
(8
|
)
|
||
Total loans
|
$
|
96,245
|
|
|
$
|
112,005
|
|
|
(14
|
)
|
|
|
|
|
|
|
|||||
Client deposits and other third-party liabilities (average)
(a)
|
|
|
|
|
|
|||||
Europe/Middle East/Africa
|
$
|
146,543
|
|
|
$
|
134,339
|
|
|
9
|
|
Asia/Pacific
|
60,918
|
|
|
51,996
|
|
|
17
|
|
||
Latin America/Caribbean
|
22,041
|
|
|
12,180
|
|
|
81
|
|
||
Total international
|
$
|
229,502
|
|
|
$
|
198,515
|
|
|
16
|
|
North America
|
183,049
|
|
|
158,747
|
|
|
15
|
|
||
Total client deposits and other third-party liabilities
|
$
|
412,551
|
|
|
$
|
357,262
|
|
|
15
|
|
|
|
|
|
|
|
|||||
AUC (period-end)
(in billions)
(a)
|
|
|
|
|
|
|||||
North America
|
$
|
11,508
|
|
|
$
|
10,788
|
|
|
7
|
|
All other regions
|
9,627
|
|
|
8,506
|
|
|
13
|
|
||
Total AUC
|
$
|
21,135
|
|
|
$
|
19,294
|
|
|
10
|
%
|
(a)
|
Total net revenue is based predominantly on the domicile of the client or location of the trading desk, as applicable. Loans outstanding (excluding loans held-for-sale and loans at fair value), client deposits and other third-party liabilities, and AUC are based predominantly on the domicile of the client.
|
COMMERCIAL BANKING
|
Selected income statement data
|
||||||||||
|
Three months ended March 31,
|
|||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|||||
Revenue
|
|
|
|
|
|
|||||
Lending- and deposit-related fees
|
$
|
246
|
|
|
$
|
259
|
|
|
(5
|
)%
|
Asset management, administration and commissions
|
23
|
|
|
32
|
|
|
(28
|
)
|
||
All other income
(a)
|
289
|
|
|
244
|
|
|
18
|
|
||
Noninterest revenue
|
558
|
|
|
535
|
|
|
4
|
|
||
Net interest income
|
1,093
|
|
|
1,138
|
|
|
(4
|
)
|
||
Total net revenue
(b)
|
1,651
|
|
|
1,673
|
|
|
(1
|
)
|
||
Provision for credit losses
|
5
|
|
|
39
|
|
|
(87
|
)
|
||
Noninterest expense
|
|
|
|
|
|
|||||
Compensation expense
|
307
|
|
|
289
|
|
|
6
|
|
||
Noncompensation expense
|
374
|
|
|
348
|
|
|
7
|
|
||
Amortization of intangibles
|
5
|
|
|
7
|
|
|
(29
|
)
|
||
Total noninterest expense
|
686
|
|
|
644
|
|
|
7
|
|
||
Income before income tax expense
|
960
|
|
|
990
|
|
|
(3
|
)
|
||
Income tax expense
|
382
|
|
|
394
|
|
|
(3
|
)
|
||
Net income
|
$
|
578
|
|
|
$
|
596
|
|
|
(3
|
)
|
Revenue by product
|
|
|
|
|
|
|||||
Lending
|
$
|
863
|
|
|
$
|
924
|
|
|
(7
|
)
|
Treasury services
|
610
|
|
|
605
|
|
|
1
|
|
||
Investment banking
|
146
|
|
|
118
|
|
|
24
|
|
||
Other
|
32
|
|
|
26
|
|
|
23
|
|
||
Total Commercial Banking net revenue
|
$
|
1,651
|
|
|
$
|
1,673
|
|
|
(1
|
)
|
|
|
|
|
|
|
|||||
Investment banking revenue,
gross
(c)
|
$
|
447
|
|
|
$
|
341
|
|
|
31
|
|
|
|
|
|
|
|
|||||
Revenue by client segment
|
|
|
|
|
|
|||||
Middle Market Banking
|
$
|
698
|
|
|
$
|
753
|
|
|
(7
|
)
|
Corporate Client Banking
|
446
|
|
|
433
|
|
|
3
|
|
||
Commercial Term Lending
|
308
|
|
|
291
|
|
|
6
|
|
||
Real Estate Banking
|
116
|
|
|
112
|
|
|
4
|
|
||
Other
|
83
|
|
|
84
|
|
|
(1
|
)
|
||
Total Commercial Banking net revenue
|
$
|
1,651
|
|
|
$
|
1,673
|
|
|
(1
|
)%
|
Financial ratios
|
|
|
|
|
|
|||||
Return on common equity
|
17
|
%
|
|
18
|
%
|
|
|
|||
Overhead ratio
|
42
|
|
|
38
|
|
|
|
(a)
|
Includes revenue from investment banking products and commercial card transactions.
|
(b)
|
Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities, as well as tax-exempt income from municipal bond activity of
$104 million
and
$93 million
for the
three months ended
March 31, 2014
and
2013
, respectively.
|
(c)
|
Represents the total revenue related to investment banking products sold to CB clients.
|
Selected metrics
|
|
|
|
|
|
|||||
|
As of or for the three months
ended March 31, |
|||||||||
(in millions, except headcount)
|
2014
|
|
2013
|
|
Change
|
|||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|||||
Total assets
|
$
|
191,389
|
|
|
$
|
184,689
|
|
|
4
|
%
|
Loans:
|
|
|
|
|
|
|||||
Loans retained
|
138,088
|
|
|
129,534
|
|
|
7
|
|
||
Loans held-for-sale and loans at fair value
|
848
|
|
|
851
|
|
|
—
|
|
||
Total loans
|
$
|
138,936
|
|
|
$
|
130,385
|
|
|
7
|
|
Equity
|
14,000
|
|
|
13,500
|
|
|
4
|
|
||
|
|
|
|
|
|
|||||
Period-end loans by client segment
|
|
|
|
|
|
|||||
Middle Market Banking
|
$
|
52,496
|
|
|
$
|
52,296
|
|
|
—
|
|
Corporate Client Banking
|
20,479
|
|
|
20,962
|
|
|
(2
|
)
|
||
Commercial Term Lending
|
49,973
|
|
|
44,374
|
|
|
13
|
|
||
Real Estate Banking
|
11,615
|
|
|
9,003
|
|
|
29
|
|
||
Other
|
4,373
|
|
|
3,750
|
|
|
17
|
|
||
Total Commercial Banking loans
|
$
|
138,936
|
|
|
$
|
130,385
|
|
|
7
|
|
|
|
|
|
|
|
|||||
Selected balance sheet data (average)
|
|
|
|
|
|
|||||
Total assets
|
$
|
192,748
|
|
|
$
|
182,620
|
|
|
6
|
|
Loans:
|
|
|
|
|
|
|||||
Loans retained
|
136,651
|
|
|
128,490
|
|
|
6
|
|
||
Loans held-for-sale and loans at fair value
|
1,039
|
|
|
800
|
|
|
30
|
|
||
Total loans
|
$
|
137,690
|
|
|
$
|
129,290
|
|
|
6
|
|
Client deposits and other third-party liabilities
|
202,944
|
|
|
195,968
|
|
|
4
|
|
||
Equity
|
14,000
|
|
|
13,500
|
|
|
4
|
|
||
Average loans by client segment
|
|
|
|
|
|
|||||
Middle Market Banking
|
$
|
51,742
|
|
|
$
|
52,013
|
|
|
(1
|
)
|
Corporate Client Banking
|
20,837
|
|
|
21,061
|
|
|
(1
|
)
|
||
Commercial Term Lending
|
49,395
|
|
|
43,845
|
|
|
13
|
|
||
Real Estate Banking
|
11,408
|
|
|
8,677
|
|
|
31
|
|
||
Other
|
4,308
|
|
|
3,694
|
|
|
17
|
|
||
Total Commercial Banking loans
|
$
|
137,690
|
|
|
$
|
129,290
|
|
|
6
|
|
|
|
|
|
|
|
|||||
Headcount
|
6,976
|
|
|
6,511
|
|
|
7
|
%
|
Selected metrics
|
|
|
|
|
|
|||||
|
As of or for the three months
ended March 31, |
|||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|||||
Credit data and quality statistics
|
|
|
|
|
|
|||||
Net charge-offs/(recoveries)
|
$
|
(14
|
)
|
|
$
|
(7
|
)
|
|
100
|
%
|
Nonperforming assets
|
|
|
|
|
|
|||||
Nonaccrual loans:
|
|
|
|
|
|
|||||
Nonaccrual loans retained
(a)
|
468
|
|
|
643
|
|
|
(27
|
)
|
||
Nonaccrual loans held-for-sale and loans at fair value
|
17
|
|
|
26
|
|
|
(35
|
)
|
||
Total nonaccrual loans
|
485
|
|
|
669
|
|
|
(28
|
)
|
||
Assets acquired in loan satisfactions
|
20
|
|
|
12
|
|
|
67
|
|
||
Total nonperforming assets
|
505
|
|
|
681
|
|
|
(26
|
)
|
||
Allowance for credit losses:
|
|
|
|
|
|
|||||
Allowance for loan losses
|
2,690
|
|
|
2,656
|
|
|
1
|
|
||
Allowance for lending-related commitments
|
141
|
|
|
183
|
|
|
(23
|
)
|
||
Total allowance for credit losses
|
2,831
|
|
|
2,839
|
|
|
—
|
|
||
Net charge-off/(recovery) rate
(b)
|
(0.04)%
|
|
|
(0.02
|
)%
|
|
|
|||
Allowance for loan losses to period-end loans
retained
|
1.95
|
|
|
2.05
|
|
|
|
|||
Allowance for loan losses to nonaccrual loans retained
(a)
|
575
|
|
|
413
|
|
|
|
|||
Nonaccrual loans to total period-end loans
|
0.35
|
|
|
0.51
|
|
|
|
(a)
|
Allowance for loan losses of
$86 million
and
$99 million
was held against nonaccrual loans retained at
March 31, 2014
and
2013
, respectively.
|
(b)
|
Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
|
ASSET MANAGEMENT
|
Selected income statement data
|
||||||||||
|
Three months ended March 31,
|
|||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|||||
Revenue
|
|
|
|
|
|
|||||
Asset management, administration and commissions
|
$
|
2,100
|
|
|
$
|
1,883
|
|
|
12
|
%
|
All other income
|
118
|
|
|
211
|
|
|
(44
|
)
|
||
Noninterest revenue
|
2,218
|
|
|
2,094
|
|
|
6
|
|
||
Net interest income
|
560
|
|
|
559
|
|
|
—
|
|
||
Total net revenue
|
2,778
|
|
|
2,653
|
|
|
5
|
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
(9
|
)
|
|
21
|
|
|
NM
|
|
||
|
|
|
|
|
|
|||||
Noninterest expense
|
|
|
|
|
|
|||||
Compensation expense
|
1,256
|
|
|
1,170
|
|
|
7
|
|
||
Noncompensation expense
|
799
|
|
|
684
|
|
|
17
|
|
||
Amortization of intangibles
|
20
|
|
|
22
|
|
|
(9
|
)
|
||
Total noninterest expense
|
2,075
|
|
|
1,876
|
|
|
11
|
|
||
Income before income tax expense
|
712
|
|
|
756
|
|
|
(6
|
)
|
||
Income tax expense
|
271
|
|
|
269
|
|
|
1
|
|
||
Net income
|
$
|
441
|
|
|
$
|
487
|
|
|
(9
|
)
|
Revenue by client segment
|
|
|
|
|
|
|||||
Private Banking
|
$
|
1,509
|
|
|
$
|
1,446
|
|
|
4
|
|
Institutional
|
500
|
|
|
567
|
|
|
(12
|
)
|
||
Retail
|
769
|
|
|
640
|
|
|
20
|
|
||
Total net revenue
|
$
|
2,778
|
|
|
$
|
2,653
|
|
|
5
|
%
|
Financial ratios
|
|
|
|
|
|
|||||
Return on common equity
|
20
|
%
|
|
22
|
%
|
|
|
|||
Overhead ratio
|
75
|
|
|
71
|
|
|
|
|||
Pretax margin ratio
|
26
|
|
|
29
|
|
|
|
Selected metrics
|
As of or for the three months
ended March 31, |
|||||||||
(in millions, except headcount, ranking data and where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|||||
Number of:
|
|
|
|
|
|
|||||
Client advisors
|
2,925
|
|
|
2,797
|
|
|
5
|
%
|
||
% of customer assets in 4 & 5 Star Funds
(a)
|
47
|
%
|
|
51
|
%
|
|
|
|||
% of AUM in 1
st
and 2
nd
quartiles:
(b)
|
|
|
|
|
|
|||||
1 year
|
65
|
|
|
70
|
|
|
|
|||
3 years
|
68
|
|
|
74
|
|
|
|
|||
5 years
|
67
|
|
|
75
|
|
|
|
|||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|||||
Total assets
|
$
|
124,478
|
|
|
$
|
109,734
|
|
|
13
|
|
Loans
(c)
|
96,934
|
|
|
81,403
|
|
|
19
|
|
||
Deposits
|
147,760
|
|
|
139,679
|
|
|
6
|
|
||
Equity
|
9,000
|
|
|
9,000
|
|
|
—
|
|
||
Selected balance sheet data (average)
|
|
|
|
|
|
|||||
Total assets
|
$
|
122,668
|
|
|
$
|
107,911
|
|
|
14
|
|
Loans
|
95,661
|
|
|
80,002
|
|
|
20
|
|
||
Deposits
|
149,432
|
|
|
139,441
|
|
|
7
|
|
||
Equity
|
9,000
|
|
|
9,000
|
|
|
—
|
|
||
|
|
|
|
|
|
|||||
Headcount
|
20,056
|
|
|
18,604
|
|
|
8
|
%
|
(a)
|
Derived from Morningstar for the U.S., the U.K., Luxembourg, France, Hong Kong and Taiwan; and Nomura for Japan.
|
(b)
|
Quartile ranking sourced from: Lipper for the U.S. and Taiwan; Morningstar for the U.K., Luxembourg, France and Hong Kong; and Nomura for Japan.
|
(c)
|
Included
$19.7 billion
and
$12.7 billion
of prime mortgage loans reported in the Consumer, excluding credit card, loan portfolio at
March 31, 2014
and
2013
, respectively. For the same periods, excluded
$3.4 billion
and
$5.6 billion
of prime mortgage loans reported in the CIO portfolio within the Corporate/Private Equity segment, respectively.
|
Selected metrics
|
As of or for the three months
ended March 31, |
|||||||||
(in millions, except ratios and where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|||||
Credit data and quality statistics
|
|
|
|
|
|
|||||
Net charge-offs
|
$
|
5
|
|
|
$
|
23
|
|
|
(78
|
)%
|
Nonaccrual loans
|
204
|
|
|
259
|
|
|
(21
|
)
|
||
Allowance for credit losses:
|
|
|
|
|
|
|||||
Allowance for loan losses
|
263
|
|
|
249
|
|
|
6
|
|
||
Allowance for lending-related commitments
|
5
|
|
|
5
|
|
|
—
|
|
||
Total allowance for credit losses
|
268
|
|
|
254
|
|
|
6
|
|
||
Net charge-off rate
|
0.02
|
%
|
|
0.12
|
%
|
|
|
|||
Allowance for loan losses to period-end loans
|
0.27
|
|
|
0.31
|
|
|
|
|||
Allowance for loan losses to nonaccrual loans
|
129
|
|
|
96
|
|
|
|
|||
Nonaccrual loans to period-end loans
|
0.21
|
|
|
0.32
|
|
|
|
|||
|
|
|
|
|
|
|||||
AM firmwide disclosures
(a)
|
|
|
|
|
|
|||||
Total net revenue
|
$
|
3,387
|
|
|
$
|
3,112
|
|
|
9
|
|
Client assets (in billions)
(b)
|
2,592
|
|
|
2,332
|
|
|
11
|
|
||
Number of client advisors
|
5,987
|
|
|
5,795
|
|
|
3
|
%
|
(a)
|
Includes Chase Wealth Management (“CWM”), which is a unit of Consumer & Business Banking. The firmwide metrics are presented in order to capture AM’s partnership with CWM.
|
(b)
|
Excludes CWM client assets that are managed by AM.
|
Client assets
|
March 31,
|
|||||||||
(in billions)
|
2014
|
|
2013
|
|
Change
|
|||||
Assets by asset class
|
|
|
|
|
|
|||||
Liquidity
|
$
|
444
|
|
|
$
|
454
|
|
|
(2
|
)%
|
Fixed income
|
340
|
|
|
331
|
|
|
3
|
|
||
Equity
|
373
|
|
|
312
|
|
|
20
|
|
||
Multi-asset and alternatives
|
491
|
|
|
386
|
|
|
27
|
|
||
Total assets under management
|
1,648
|
|
|
1,483
|
|
|
11
|
|
||
Custody/brokerage/administration/deposits
|
746
|
|
|
688
|
|
|
8
|
|
||
Total client assets
|
$
|
2,394
|
|
|
$
|
2,171
|
|
|
10
|
|
|
|
|
|
|
|
|||||
Memo:
|
|
|
|
|
|
|||||
Alternative client assets
(a)
|
$
|
160
|
|
|
$
|
144
|
|
|
11
|
|
|
|
|
|
|
|
|||||
Assets by client segment
|
|
|
|
|
|
|||||
Private Banking
|
$
|
377
|
|
|
$
|
339
|
|
|
11
|
|
Institutional
|
773
|
|
|
749
|
|
|
3
|
|
||
Retail
|
498
|
|
|
395
|
|
|
26
|
|
||
Total assets under management
|
$
|
1,648
|
|
|
$
|
1,483
|
|
|
11
|
|
Private Banking
|
$
|
992
|
|
|
$
|
909
|
|
|
9
|
|
Institutional
|
773
|
|
|
749
|
|
|
3
|
|
||
Retail
|
629
|
|
|
513
|
|
|
23
|
|
||
Total client assets
|
$
|
2,394
|
|
|
$
|
2,171
|
|
|
10
|
|
Mutual fund assets by asset class
|
|
|
|
|
|
|||||
Liquidity
|
$
|
387
|
|
|
$
|
400
|
|
|
(3
|
)
|
Fixed income
|
141
|
|
|
142
|
|
|
(1
|
)
|
||
Equity
|
202
|
|
|
159
|
|
|
27
|
|
||
Multi-asset and alternatives
|
109
|
|
|
53
|
|
|
106
|
|
||
Total mutual fund assets
|
$
|
839
|
|
|
$
|
754
|
|
|
11
|
%
|
|
Three months ended March 31,
|
||||||
(in billions)
|
2014
|
|
2013
|
||||
Assets under management rollforward
|
|
|
|
||||
Beginning balance
|
$
|
1,598
|
|
|
$
|
1,426
|
|
Net asset flows:
|
|
|
|
||||
Liquidity
|
(6
|
)
|
|
(2
|
)
|
||
Fixed income
|
5
|
|
|
2
|
|
||
Equity
|
3
|
|
|
15
|
|
||
Multi-asset and alternatives
|
12
|
|
|
13
|
|
||
Market/performance/other impacts
|
36
|
|
|
29
|
|
||
Ending balance, March 31
|
$
|
1,648
|
|
|
$
|
1,483
|
|
Client assets rollforward
|
|
|
|
||||
Beginning balance
|
$
|
2,343
|
|
|
$
|
2,095
|
|
Net asset flows
|
15
|
|
|
20
|
|
||
Market/performance/other impacts
|
36
|
|
|
56
|
|
||
Ending balance, March 31
|
$
|
2,394
|
|
|
$
|
2,171
|
|
International metrics
|
As of or for the three months
ended March 31, |
|||||||||
(in billions, except where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|||||
Total net revenue
(in millions)
(a)
|
|
|
|
|
|
|||||
Europe/Middle East/Africa
|
$
|
477
|
|
|
$
|
437
|
|
|
9
|
%
|
Asia/Pacific
|
276
|
|
|
277
|
|
|
—
|
|
||
Latin America/Caribbean
|
199
|
|
|
206
|
|
|
(3
|
)
|
||
North America
|
1,826
|
|
|
1,733
|
|
|
5
|
|
||
Total net revenue
|
$
|
2,778
|
|
|
$
|
2,653
|
|
|
5
|
|
Assets under management
|
|
|
|
|
|
|||||
Europe/Middle East/Africa
|
$
|
310
|
|
|
$
|
270
|
|
|
15
|
|
Asia/Pacific
|
133
|
|
|
123
|
|
|
8
|
|
||
Latin America/Caribbean
|
49
|
|
|
39
|
|
|
26
|
|
||
North America
|
1,156
|
|
|
1,051
|
|
|
10
|
|
||
Total assets under management
|
$
|
1,648
|
|
|
$
|
1,483
|
|
|
11
|
|
Client assets
|
|
|
|
|
|
|||||
Europe/Middle East/Africa
|
$
|
372
|
|
|
$
|
328
|
|
|
13
|
|
Asia/Pacific
|
180
|
|
|
170
|
|
|
6
|
|
||
Latin America/Caribbean
|
119
|
|
|
106
|
|
|
12
|
|
||
North America
|
1,723
|
|
|
1,567
|
|
|
10
|
|
||
Total client assets
|
$
|
2,394
|
|
|
$
|
2,171
|
|
|
10
|
%
|
CORPORATE/PRIVATE EQUITY
|
Selected income statement data
|
|
|
|
||||||
|
As of or for the three months
ended March 31,
|
||||||||
(in millions, except headcount)
|
2014
|
|
2013
|
|
|
Change
|
|
||
Revenue
|
|
|
|
|
|||||
Principal transactions
|
$
|
350
|
|
$
|
(262
|
)
|
|
NM
|
|
Securities gains
|
26
|
|
509
|
|
|
(95
|
)%
|
||
All other income
|
148
|
|
114
|
|
|
30
|
|
||
Noninterest revenue
|
524
|
|
361
|
|
|
45
|
|
||
Net interest income
|
(156
|
)
|
(594
|
)
|
|
74
|
|
||
Total net revenue
(a)
|
368
|
|
(233
|
)
|
|
NM
|
|
||
|
|
|
|
|
|||||
Provision for credit losses
|
(11
|
)
|
(3
|
)
|
|
(267
|
)
|
||
|
|
|
|
|
|||||
Noninterest expense
|
|
|
|
|
|||||
Compensation expense
|
687
|
|
573
|
|
|
20
|
|
||
Noncompensation expense
|
683
|
|
642
|
|
|
6
|
|
||
Subtotal
|
1,370
|
|
1,215
|
|
|
13
|
|
||
Net expense allocated to other businesses
|
(1,536
|
)
|
(1,213
|
)
|
|
(27
|
)
|
||
Total noninterest expense
|
(166
|
)
|
2
|
|
|
NM
|
|
||
Income/(loss) before income tax expense/(benefit)
|
545
|
|
(232
|
)
|
|
NM
|
|
||
Income tax expense/(benefit)
|
205
|
|
(482
|
)
|
|
NM
|
|
||
Net income/(loss)
|
$
|
340
|
|
$
|
250
|
|
|
36
|
|
Total net revenue
|
|
|
|
|
|||||
Private equity
|
$
|
363
|
|
$
|
(276
|
)
|
|
NM
|
|
Treasury and CIO
|
2
|
|
113
|
|
|
(98
|
)
|
||
Other Corporate
|
3
|
|
(70
|
)
|
|
NM
|
|
||
Total net revenue
|
$
|
368
|
|
$
|
(233
|
)
|
|
NM
|
|
Net income/(loss)
|
|
|
|
|
|||||
Private equity
|
$
|
215
|
|
$
|
(182
|
)
|
|
NM
|
|
Treasury and CIO
|
(94
|
)
|
24
|
|
|
NM
|
|
||
Other Corporate
|
219
|
|
408
|
|
(b)
|
(46
|
)
|
||
Total net income/(loss)
|
$
|
340
|
|
$
|
250
|
|
|
36
|
|
Total assets (period-end)
|
$
|
839,625
|
|
$
|
763,765
|
|
|
10
|
|
Headcount
|
22,474
|
|
18,026
|
|
|
25
|
%
|
(a)
|
Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of
$164 million
and $
103 million
for the three months ended March 31, 2014 and 2013, respectively.
|
(b)
|
Included an after-tax benefit of $227 million for tax adjustments.
|
(a)
|
Average investment securities included a held-to-maturity balance of $43.9 billion for the three months ended March 31, 2014. The held-to-maturity balance for the three months ended March 31, 2013, was not material.
|
(b)
|
Period-end investment securities included held-to-maturity balance of $47.3 billion at March 31, 2014. Held-to-maturity balance at March 31, 2013, was not material.
|
Private Equity Portfolio
|
||||||||||
Selected income statement and balance sheet data
|
||||||||||
|
Three months ended March 31,
|
|||||||||
(in millions)
|
2014
|
|
|
2013
|
|
|
Change
|
|
||
Private equity gains/(losses)
|
|
|
|
|
|
|||||
Realized gains/(losses)
|
$
|
459
|
|
|
$
|
48
|
|
|
NM
|
|
Unrealized gains/(losses)
(a)
|
(60
|
)
|
|
(327
|
)
|
|
82
|
%
|
||
Total direct investments
|
399
|
|
|
(279
|
)
|
|
NM
|
|
||
Third-party fund investments
|
(1
|
)
|
|
20
|
|
|
NM
|
|
||
Total private equity gains/(losses)
(b)
|
$
|
398
|
|
|
$
|
(259
|
)
|
|
NM
|
|
(a)
|
Unrealized gains/(losses) contain reversals of unrealized gains and losses that were recognized in prior periods and have now been realized.
|
(b)
|
Included in principal transactions revenue in the Consolidated Statements of Income.
|
(a)
|
For more information on the Firm’s policies regarding the valuation of the private equity portfolio, see Note 3 on
pages 86–97
of this Form 10-Q.
|
(b)
|
Unfunded commitments to third-party private equity funds were
$160 million
and
$215 million
at March 31, 2014, and
|
ENTERPRISE-WIDE RISK MANAGEMENT
|
•
|
Personal responsibility for risk management, including identification and escalation of risk issues, by all individuals within the Firm;
|
•
|
Ownership of risk management within each line of business; and
|
•
|
Firmwide structures for risk governance and oversight.
|
Risk disclosure
|
Form 10-Q page reference
|
Annual Report page reference
|
Enterprise- Wide Risk Management
|
39
|
113–116
|
Risk governance
|
|
114-116
|
Credit Risk Management
|
40-56
|
117–141
|
Credit Portfolio
|
|
119
|
Consumer Credit Portfolio
|
41-47
|
120-129
|
Wholesale Credit Portfolio
|
48-53
|
130-138
|
Community Reinvestment Act Exposure
|
54
|
138
|
Allowance For Credit Losses
|
54-56
|
139-141
|
Market Risk Management
|
57-60
|
142-148
|
Risk identification and classification
|
|
142-143
|
Value-at-risk
|
57-59
|
144-146
|
Economic-value stress testing
|
|
147
|
Earnings-at-risk
|
60
|
147-148
|
Risk monitoring and control: Limits
|
|
148
|
Country Risk Management
|
61
|
149-152
|
Model risk
|
|
153
|
Principal Risk Management
|
|
154
|
Operational Risk Management
|
62
|
155-157
|
Cybersecurity
|
62
|
156
|
Business resiliency
|
|
157
|
Legal Risk, Regulatory Risk, and Compliance Risk Management
|
|
158
|
Fiduciary Risk management
|
|
159
|
Reputation Risk Management
|
|
159
|
Capital Management
|
63-70
|
160-167
|
Liquidity Risk Management
|
71-75
|
168-173
|
Funding
|
71-74
|
168-172
|
HQLA
|
74
|
172
|
Contingency funding plan
|
74
|
172
|
Credit ratings
|
75
|
173
|
CREDIT RISK MANAGEMENT
|
Total credit portfolio
|
|
|
|
|
|||||||||
|
Credit exposure
|
|
Nonperforming
(b)(c)(d)
|
||||||||||
(in millions)
|
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
||||||||
Loans retained
|
$
|
721,160
|
|
$
|
724,177
|
|
|
$
|
8,123
|
|
$
|
8,317
|
|
Loans held-for-sale
|
7,462
|
|
12,230
|
|
|
27
|
|
26
|
|
||||
Loans at fair value
|
2,349
|
|
2,011
|
|
|
166
|
|
197
|
|
||||
Total loans – reported
|
730,971
|
|
738,418
|
|
|
8,316
|
|
8,540
|
|
||||
Derivative receivables
|
59,272
|
|
65,759
|
|
|
392
|
|
415
|
|
||||
Receivables from customers and other
|
26,494
|
|
26,883
|
|
|
—
|
|
—
|
|
||||
Total credit-related assets
|
816,737
|
|
831,060
|
|
|
8,708
|
|
8,955
|
|
||||
Assets acquired in loan satisfactions
|
|
|
|
|
|
||||||||
Real estate owned
|
NA
|
|
NA
|
|
|
726
|
|
710
|
|
||||
Other
|
NA
|
|
NA
|
|
|
39
|
|
41
|
|
||||
Total
assets acquired in loan satisfactions
|
NA
|
|
NA
|
|
|
765
|
|
751
|
|
||||
Total assets
|
816,737
|
|
831,060
|
|
|
9,473
|
|
9,706
|
|
||||
Lending-related commitments
|
1,048,686
|
|
1,031,672
|
|
|
95
|
|
206
|
|
||||
Total credit portfolio
|
$
|
1,865,423
|
|
$
|
1,862,732
|
|
|
$
|
9,568
|
|
$
|
9,912
|
|
Credit portfolio management derivatives notional, net
(a)
|
$
|
(27,454
|
)
|
$
|
(27,996
|
)
|
|
$
|
(5
|
)
|
$
|
(5
|
)
|
Liquid securities and other cash collateral held against derivatives
|
(13,089
|
)
|
(14,435
|
)
|
|
NA
|
|
NA
|
|
(in millions,
except ratios)
|
|
Three months
ended March 31, |
|||||
|
2014
|
2013
|
|||||
Net charge-offs
|
|
$
|
1,269
|
|
$
|
1,725
|
|
Average retained loans
|
|
|
|
||||
Loans – reported
|
|
720,530
|
|
719,071
|
|
||
Loans – reported, excluding residential real estate PCI loans
|
|
668,120
|
|
659,972
|
|
||
Net charge-off rates
|
|
|
|
||||
Loans – reported
|
|
0.71
|
%
|
0.97
|
%
|
||
Loans – reported, excluding PCI
|
|
0.77
|
|
1.06
|
|
(a)
|
Represents the net notional amount of protection purchased and sold through credit derivatives used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. For additional information, see Credit derivatives on
page 53
and Note 5 on
pages 100–109
of
this Form 10-Q
.
|
(b)
|
Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.
|
(c)
|
At
March 31, 2014
, and
December 31, 2013
, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of
$7.7 billion
and
$8.4 billion
, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of
$2.1 billion
and
$2.0 billion
, respectively; and (3) student loans insured by U.S. government agencies under the FFELP of
$387 million
and
$428 million
, respectively, that are 90 or more days past due. These amounts have been excluded from nonaccrual loans based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”).
|
(d)
|
At
March 31, 2014
, and
December 31, 2013
, total nonaccrual loans represented
1.14%
and
1.16%
, respectively, of total loans.
|
CONSUMER CREDIT PORTFOLIO
|
Consumer credit portfolio
|
|
|
|
|
|
Three months ended March 31,
|
|||||||||||||||||||
(in millions, except ratios)
|
Credit exposure
|
|
Nonaccrual
loans
(f)(g)
|
|
Net charge-offs
(h)
|
|
Average annual net charge-off rate
(h)(i)
|
||||||||||||||||||
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|
2014
|
2013
|
|
2014
|
2013
|
|||||||||||||||
Consumer, excluding credit card
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans, excluding PCI loans and loans held-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity – senior lien
|
$
|
16,635
|
|
$
|
17,113
|
|
|
$
|
920
|
|
$
|
932
|
|
|
$
|
27
|
|
$
|
43
|
|
|
0.65
|
%
|
0.91
|
%
|
Home equity – junior lien
|
39,496
|
|
40,750
|
|
|
1,806
|
|
1,876
|
|
|
139
|
|
290
|
|
|
1.41
|
|
2.50
|
|
||||||
Prime mortgage, including option ARMs
|
89,938
|
|
87,162
|
|
|
2,650
|
|
2,666
|
|
|
(3
|
)
|
50
|
|
|
(0.01
|
)
|
0.26
|
|
||||||
Subprime mortgage
|
6,869
|
|
7,104
|
|
|
1,397
|
|
1,390
|
|
|
13
|
|
67
|
|
|
0.75
|
|
3.34
|
|
||||||
Auto
(a)
|
52,952
|
|
52,757
|
|
|
137
|
|
161
|
|
|
41
|
|
40
|
|
|
0.32
|
|
0.32
|
|
||||||
Business banking
|
18,992
|
|
18,951
|
|
|
356
|
|
385
|
|
|
76
|
|
61
|
|
|
1.63
|
|
1.32
|
|
||||||
Student and other
|
11,442
|
|
11,557
|
|
|
104
|
|
86
|
|
|
75
|
|
57
|
|
|
2.64
|
|
1.91
|
|
||||||
Total loans, excluding PCI loans and loans held-for-sale
|
236,324
|
|
235,394
|
|
|
7,370
|
|
7,496
|
|
|
368
|
|
608
|
|
|
0.63
|
|
1.06
|
|
||||||
Loans – PCI
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
18,525
|
|
18,927
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
||||||
Prime mortgage
|
11,658
|
|
12,038
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
||||||
Subprime mortgage
|
4,062
|
|
4,175
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
||||||
Option ARMs
|
17,361
|
|
17,915
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
||||||
Total loans – PCI
|
51,606
|
|
53,055
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
||||||
Total loans – retained
|
287,930
|
|
288,449
|
|
|
7,370
|
|
7,496
|
|
|
368
|
|
608
|
|
|
0.52
|
|
0.85
|
|
||||||
Loans held-for-sale
(b)
|
238
|
|
614
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Total consumer, excluding credit card loans
|
288,168
|
|
289,063
|
|
|
7,370
|
|
7,496
|
|
|
368
|
|
608
|
|
|
0.52
|
|
0.85
|
|
||||||
Lending-related commitments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity – senior lien
(c)
|
12,660
|
|
13,158
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity – junior lien
(c)
|
17,040
|
|
17,837
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Prime mortgage
|
5,224
|
|
4,817
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Subprime mortgage
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Auto
|
9,250
|
|
8,309
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Business banking
|
11,752
|
|
11,251
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Student and other
|
615
|
|
685
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total lending-related commitments
|
56,541
|
|
56,057
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Receivables from customers
(d)
|
156
|
|
139
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total consumer exposure, excluding credit card
|
344,865
|
|
345,259
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Credit card
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans retained
(e)
|
121,512
|
|
127,465
|
|
|
—
|
|
—
|
|
|
888
|
|
1,082
|
|
|
2.93
|
|
3.55
|
|
||||||
Loans held-for-sale
|
304
|
|
326
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Total credit card loans
|
121,816
|
|
127,791
|
|
|
—
|
|
—
|
|
|
888
|
|
1,082
|
|
|
2.93
|
|
3.55
|
|
||||||
Lending-related commitments
(c)
|
535,614
|
|
529,383
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total credit card exposure
|
657,430
|
|
657,174
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total consumer credit portfolio
|
$
|
1,002,295
|
|
$
|
1,002,433
|
|
|
$
|
7,370
|
|
$
|
7,496
|
|
|
$
|
1,256
|
|
$
|
1,690
|
|
|
1.24
|
%
|
1.65
|
%
|
Memo: Total consumer credit portfolio, excluding PCI
|
$
|
950,689
|
|
$
|
949,378
|
|
|
$
|
7,370
|
|
$
|
7,496
|
|
|
$
|
1,256
|
|
$
|
1,690
|
|
|
1.42
|
%
|
1.92
|
%
|
(a)
|
At
March 31, 2014
, and
December 31, 2013
, excluded operating lease-related assets of
$5.8 billion
and
$5.5 billion
, respectively.
|
(b)
|
Represents prime mortgage loans held-for-sale.
|
(c)
|
Credit card and home equity lending-related commitments represent the total available lines of credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit would be used at the same time. For credit card and home equity commitments (if certain conditions are met), the Firm can reduce or cancel these lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice.
|
(d)
|
Receivables from customers primarily represent margin loans to retail brokerage customers, which are included in accrued interest and accounts receivable on the Consolidated Balance Sheets.
|
(e)
|
Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income.
|
(f)
|
At
March 31, 2014
, and
December 31, 2013
, nonaccrual loans excluded: (1) mortgage loans insured by U.S. government agencies of
$7.7 billion
and
$8.4 billion
, respectively, that are 90 or more days past due; and (2) student loans insured by U.S. government agencies under the FFELP of
$387 million
and
$428 million
, respectively, that are 90 or more days past due. These amounts have been excluded from nonaccrual loans based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.
|
(g)
|
Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.
|
(h)
|
Net charge-offs and net charge-off rates excluded
$61 million
of write-offs of prime mortgages in the PCI portfolio for the three months ended
March 31, 2014
. See Consumer Credit Portfolio on
pages 120–129
of
JPMorgan Chase
’s
2013
Annual Report
for further details.
|
(i)
|
Average consumer loans held-for-sale were
$656 million
for the
three months ended
March 31, 2014
. There were no loans held-for-sale for the three months ended March 31, 2013. These amounts were excluded when calculating net charge-off rates.
|
High risk junior liens that are current
|
|||||||||
(in billions)
|
|
March 31,
2014 |
December 31,
2013 |
||||||
Junior liens subordinate to:
|
|
|
|
|
|
||||
Modified current senior lien
|
|
|
$
|
0.8
|
|
|
$
|
0.9
|
|
Senior lien 30 – 89 days delinquent
|
|
|
0.5
|
|
|
0.6
|
|
||
Senior lien 90 days or more delinquent
(a)
|
|
|
0.7
|
|
|
0.8
|
|
||
Total current high risk junior liens
|
|
|
$
|
2.0
|
|
|
$
|
2.3
|
|
(a)
|
Junior liens subordinate to senior liens that are 90 days or more past due are classified as nonaccrual loans. At both
March 31, 2014
, and
December 31, 2013
, excluded approximately
$100 million
of junior liens that are performing but not current, which were also placed on nonaccrual status in accordance with the regulatory guidance.
|
(a)
|
Includes the original nonaccretable difference established in purchase accounting of
$30.5 billion
for principal losses only plus additional principal losses recognized subsequent to acquisition through the provision and allowance for loan losses. The remaining nonaccretable difference for principal losses only was
$3.5 billion
and
$3.8 billion
at
March 31, 2014
, and
December 31, 2013
, respectively.
|
(b)
|
Life-to-date (“LTD”) liquidation losses represent both realization of loss upon loan resolution and any principal forgiven upon modification. LTD liquidation losses included
$114 million
and
$53 million
of write-offs of prime mortgages at
March 31, 2014
, and
December 31, 2013
, respectively.
|
(a)
|
Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated at least quarterly based on home valuation models that utilize nationally recognized home price index valuation estimates; such models incorporate actual data to the extent available and forecasted data where actual data is not available.
|
(b)
|
Represents current estimated combined LTV for junior home equity liens, which considers all available lien positions, as well as unused lines, related to the property. All other products are presented without consideration of subordinate liens on the property.
|
(c)
|
Net carrying value includes the effect of fair value adjustments that were applied to the consumer PCI portfolio at the date of acquisition and is also net of the allowance for loan losses of
$1.8 billion
for home equity,
$1.7 billion
for prime mortgage,
$494 million
for option ARMs, and
$180 million
for subprime mortgage at both
March 31, 2014
, and
December 31, 2013
.
|
(a)
|
Amounts represent the carrying value of modified residential real estate loans.
|
(b)
|
At
March 31, 2014
, and
December 31, 2013
,
$7.4 billion
and
$7.6 billion
, respectively, of loans modified subsequent to repurchase from Ginnie Mae in accordance with the standards of the appropriate government agency (i.e., FHA, VA, RHS) are not included in the table above. When such loans perform subsequent to modification in accordance with Ginnie Mae guidelines, they are generally sold back into Ginnie Mae loan pools. Modified loans that do not re-perform become subject to foreclosure. For additional information about sales of loans in securitization transactions with Ginnie Mae, see Note 15 on
pages 141–147
of this Form 10-Q.
|
(c)
|
Amounts represent the unpaid principal balance of modified PCI loans.
|
(d)
|
As of
March 31, 2014
, and
December 31, 2013
, nonaccrual loans included
$3.2 billion
and
$3.0 billion
, respectively, of TDRs for which the borrowers were less than 90 days past due. For additional information about loans modified in a TDR that are on nonaccrual status, see Note 13 on
pages 119–139
of
this Form 10-Q
.
|
Nonperforming assets
(a)
|
|
|
|
||||
(in millions)
|
March 31,
2014 |
|
December 31,
2013 |
||||
Nonaccrual loans
(b)
|
|
|
|
||||
Residential real estate
|
$
|
6,773
|
|
|
$
|
6,864
|
|
Other consumer
|
597
|
|
|
632
|
|
||
Total nonaccrual loans
|
7,370
|
|
|
7,496
|
|
||
Assets acquired in loan satisfactions
|
|
|
|
||||
Real estate owned
|
595
|
|
|
614
|
|
||
Other
|
39
|
|
|
41
|
|
||
Total assets acquired in loan satisfactions
|
634
|
|
|
655
|
|
||
Total nonperforming assets
|
$
|
8,004
|
|
|
$
|
8,151
|
|
(a)
|
At
March 31, 2014
, and
December 31, 2013
, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of
$7.7 billion
and
$8.4 billion
, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of
$2.1 billion
and
$2.0 billion
, respectively; and (3) student loans insured by U.S. government agencies under the FFELP of
$387 million
and
$428 million
, respectively, that are 90 or more days past due. These amounts have been excluded from nonaccrual loans based upon the government guarantee.
|
(b)
|
Excludes PCI loans that were acquired as part of the Washington Mutual transaction, which are accounted for on a pool basis. Since each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past-due status of the pools, or that of individual loans within the pools, is not meaningful. Because the Firm is recognizing interest income on each pool of loans, they are all considered to be performing.
|
Nonaccrual loans
|
|
|
|||||
Three months ended March 31,
|
|
|
|
||||
(in millions)
|
|
2014
|
2013
|
||||
Beginning balance
|
|
$
|
7,496
|
|
$
|
9,174
|
|
Additions
|
|
1,461
|
|
2,220
|
|
||
Reductions:
|
|
|
|
||||
Principal payments and other
(a)
|
|
391
|
|
341
|
|
||
Charge-offs
|
|
389
|
|
523
|
|
||
Returned to performing status
|
|
624
|
|
1,141
|
|
||
Foreclosures and other liquidations
|
|
183
|
|
341
|
|
||
Total reductions
|
|
1,587
|
|
2,346
|
|
||
Net additions/(reductions)
|
|
(126
|
)
|
(126
|
)
|
||
Ending balance
|
|
$
|
7,370
|
|
$
|
9,048
|
|
(a)
|
Other reductions includes loan sales.
|
WHOLESALE CREDIT PORTFOLIO
|
Wholesale credit portfolio
|
|||||||||||||
|
Credit exposure
|
|
Nonperforming
(c)
|
||||||||||
(in millions)
|
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
||||||||
Loans retained
|
$
|
311,718
|
|
$
|
308,263
|
|
|
$
|
753
|
|
$
|
821
|
|
Loans held-for-sale
|
6,920
|
|
11,290
|
|
|
27
|
|
26
|
|
||||
Loans at fair value
|
2,349
|
|
2,011
|
|
|
166
|
|
197
|
|
||||
Loans – reported
|
320,987
|
|
321,564
|
|
|
946
|
|
1,044
|
|
||||
Derivative receivables
|
59,272
|
|
65,759
|
|
|
392
|
|
415
|
|
||||
Receivables from customers and other
(a)
|
26,338
|
|
26,744
|
|
|
—
|
|
—
|
|
||||
Total wholesale credit-related assets
|
406,597
|
|
414,067
|
|
|
1,338
|
|
1,459
|
|
||||
Lending-related commitments
|
456,531
|
|
446,232
|
|
|
95
|
|
206
|
|
||||
Total wholesale credit exposure
|
$
|
863,128
|
|
$
|
860,299
|
|
|
$
|
1,433
|
|
$
|
1,665
|
|
Credit portfolio management derivatives notional, net
(b)
|
$
|
(27,454
|
)
|
$
|
(27,996
|
)
|
|
$
|
(5
|
)
|
$
|
(5
|
)
|
Liquid securities and other cash collateral held against derivatives
|
(13,089
|
)
|
(14,435
|
)
|
|
NA
|
|
NA
|
|
(a)
|
Receivables from customers and other primarily includes margin loans to prime and retail brokerage customers; these are classified in accrued interest and accounts receivable on the Consolidated Balance Sheets.
|
(b)
|
Represents the net notional amount of protection purchased and sold through credit derivatives used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. For additional information, see Credit derivatives on
page 53
, and Note 5 on
pages 100–109
of
this Form 10-Q
.
|
(c)
|
Excludes assets acquired in loan satisfactions.
|
|
Maturity profile
(e)
|
|
Ratings profile
|
|||||||||||||||||||||||||
December 31, 2013
|
Due in 1 year or less
|
Due after 1 year through 5 years
|
Due after 5 years
|
Total
|
|
Investment-grade
|
|
Noninvestment-grade
|
|
Total
|
Total % of IG
|
|||||||||||||||||
(in millions, except ratios)
|
|
AAA/Aaa to BBB-/Baa3
|
|
BB+/Ba1 & below
|
|
|||||||||||||||||||||||
Loans retained
|
$
|
108,392
|
|
$
|
124,111
|
|
$
|
75,760
|
|
$
|
308,263
|
|
|
|
$
|
226,070
|
|
|
|
$
|
82,193
|
|
|
$
|
308,263
|
|
73
|
%
|
Derivative receivables
|
|
|
|
65,759
|
|
|
|
|
|
|
|
|
65,759
|
|
|
|||||||||||||
Less: Liquid securities and other cash collateral held against derivatives
|
|
|
|
(14,435
|
)
|
|
|
|
|
|
|
|
(14,435
|
)
|
|
|||||||||||||
Total derivative receivables, net of all collateral
|
13,550
|
|
15,935
|
|
21,839
|
|
51,324
|
|
|
|
41,104
|
|
(f)
|
|
10,220
|
|
(f)
|
51,324
|
|
80
|
|
|||||||
Lending-related commitments
|
179,301
|
|
255,426
|
|
11,505
|
|
446,232
|
|
|
|
353,974
|
|
|
|
92,258
|
|
|
446,232
|
|
79
|
|
|||||||
Subtotal
|
301,243
|
|
395,472
|
|
109,104
|
|
805,819
|
|
|
|
621,148
|
|
|
|
184,671
|
|
|
805,819
|
|
77
|
|
|||||||
Loans held-for-sale and loans at fair value
(a)
|
|
|
|
13,301
|
|
|
|
|
|
|
|
|
13,301
|
|
|
|||||||||||||
Receivables from customers and other
|
|
|
|
26,744
|
|
|
|
|
|
|
|
|
26,744
|
|
|
|||||||||||||
Total exposure – net of liquid securities and other cash collateral held against derivatives
|
|
|
|
$
|
845,864
|
|
|
|
|
|
|
|
|
$
|
845,864
|
|
|
|||||||||||
Credit Portfolio Management derivatives net notional by reference entity ratings profile
(b)(c)(d)
|
$
|
(1,149
|
)
|
$
|
(19,516
|
)
|
$
|
(7,331
|
)
|
$
|
(27,996
|
)
|
|
|
$
|
(24,649
|
)
|
|
|
$
|
(3,347
|
)
|
|
$
|
(27,996
|
)
|
88
|
%
|
(a)
|
Represents loans held-for-sale, primarily related to syndicated loans and loans transferred from the retained portfolio, and loans at fair value.
|
(b)
|
These derivatives do not qualify for hedge accounting under U.S. GAAP.
|
(c)
|
The notional amounts are presented on a net basis by underlying reference entity and the ratings profile shown is based on the ratings of the reference entity on which protection has been purchased.
|
(d)
|
Predominantly all of the credit derivatives entered into by the Firm where it has purchased protection, including Credit Portfolio Management derivatives, are executed with investment grade counterparties.
|
(e)
|
The maturity profile of retained loans, lending-related commitments and derivative receivables is based on the remaining contractual maturity. Derivative contracts that are in a receivable position at
March 31, 2014
, may become a payable prior to maturity based on their cash flow profile or changes in market conditions.
|
(f)
|
The prior period amounts have been revised to conform with the current period presentation.
|
|
|
|
|
|
|
|
|
Selected metrics
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
30 days or more past due and accruing
loans |
Year-to-date net charge-offs/
(recoveries)
|
Credit portfolio management credit derivative hedges
(e)
|
Liquid securities
and other cash collateral held against derivative
receivables |
||||||||||||||||||
|
|
|
|
Noninvestment-grade
|
|||||||||||||||||||||||||
As of or for the three months ended
|
Credit exposure
(d)
|
Investment- grade
|
|
Noncriticized
|
|
Criticized performing
|
Criticized nonperforming
|
||||||||||||||||||||||
March 31, 2014
|
|||||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Top 25 industries
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Real Estate
|
$
|
88,580
|
|
$
|
64,406
|
|
|
$
|
21,865
|
|
|
$
|
1,991
|
|
$
|
318
|
|
$
|
99
|
|
$
|
(5
|
)
|
$
|
(66
|
)
|
$
|
(140
|
)
|
Banks & Finance Cos
|
63,815
|
|
54,552
|
|
|
8,517
|
|
|
675
|
|
71
|
|
42
|
|
(1
|
)
|
(2,675
|
)
|
(5,532
|
)
|
|||||||||
Oil & Gas
|
46,441
|
|
34,850
|
|
|
11,165
|
|
|
385
|
|
41
|
|
37
|
|
—
|
|
(222
|
)
|
(96
|
)
|
|||||||||
Healthcare
|
44,868
|
|
36,989
|
|
|
7,464
|
|
|
410
|
|
5
|
|
69
|
|
—
|
|
(185
|
)
|
(224
|
)
|
|||||||||
Consumer Products
|
40,524
|
|
20,745
|
|
|
19,248
|
|
|
526
|
|
5
|
|
37
|
|
—
|
|
(151
|
)
|
—
|
|
|||||||||
State & Municipal Govt
(b)
|
34,513
|
|
33,553
|
|
|
876
|
|
|
78
|
|
6
|
|
18
|
|
24
|
|
(151
|
)
|
(215
|
)
|
|||||||||
Asset Managers
|
33,592
|
|
28,265
|
|
|
5,312
|
|
|
13
|
|
2
|
|
28
|
|
(12
|
)
|
(6
|
)
|
(2,770
|
)
|
|||||||||
Utilities
|
29,218
|
|
25,519
|
|
|
3,278
|
|
|
412
|
|
9
|
|
5
|
|
—
|
|
(395
|
)
|
(251
|
)
|
|||||||||
Retail & Consumer Services
|
27,307
|
|
17,295
|
|
|
9,257
|
|
|
743
|
|
12
|
|
18
|
|
4
|
|
(92
|
)
|
—
|
|
|||||||||
Central Govt
|
21,624
|
|
21,237
|
|
|
288
|
|
|
99
|
|
—
|
|
—
|
|
—
|
|
(10,812
|
)
|
(1,482
|
)
|
|||||||||
Technology
|
20,354
|
|
13,226
|
|
|
6,369
|
|
|
739
|
|
20
|
|
—
|
|
—
|
|
(405
|
)
|
(1
|
)
|
|||||||||
Machinery & Equipment Mfg
|
19,000
|
|
11,029
|
|
|
7,657
|
|
|
314
|
|
—
|
|
19
|
|
(2
|
)
|
(259
|
)
|
(4
|
)
|
|||||||||
Metals/Mining
|
17,069
|
|
9,220
|
|
|
7,077
|
|
|
730
|
|
42
|
|
—
|
|
23
|
|
(515
|
)
|
(15
|
)
|
|||||||||
Transportation
|
15,823
|
|
11,741
|
|
|
3,964
|
|
|
93
|
|
25
|
|
6
|
|
(3
|
)
|
(77
|
)
|
—
|
|
|||||||||
Building Materials/Construction
|
15,487
|
|
6,279
|
|
|
8,431
|
|
|
770
|
|
7
|
|
13
|
|
—
|
|
(142
|
)
|
—
|
|
|||||||||
Business Services
|
14,798
|
|
8,188
|
|
|
6,256
|
|
|
325
|
|
29
|
|
16
|
|
1
|
|
(10
|
)
|
—
|
|
|||||||||
Media
|
14,563
|
|
8,092
|
|
|
5,406
|
|
|
1,025
|
|
40
|
|
5
|
|
(10
|
)
|
(72
|
)
|
(5
|
)
|
|||||||||
Automotive
|
13,074
|
|
8,153
|
|
|
4,760
|
|
|
160
|
|
1
|
|
2
|
|
—
|
|
(377
|
)
|
—
|
|
|||||||||
Telecom Services
|
12,872
|
|
8,657
|
|
|
3,724
|
|
|
481
|
|
10
|
|
4
|
|
—
|
|
(376
|
)
|
(8
|
)
|
|||||||||
Insurance
|
12,768
|
|
10,156
|
|
|
2,310
|
|
|
80
|
|
222
|
|
6
|
|
—
|
|
(100
|
)
|
(1,730
|
)
|
|||||||||
Securities Firms & Exchanges
|
12,004
|
|
9,475
|
|
|
2,511
|
|
|
15
|
|
3
|
|
—
|
|
4
|
|
(3,867
|
)
|
(111
|
)
|
|||||||||
Chemicals/Plastics
|
10,897
|
|
7,403
|
|
|
3,266
|
|
|
213
|
|
15
|
|
6
|
|
—
|
|
(13
|
)
|
(81
|
)
|
|||||||||
Agriculture/Paper Mfg
|
7,443
|
|
4,367
|
|
|
2,910
|
|
|
163
|
|
3
|
|
20
|
|
—
|
|
(4
|
)
|
(4
|
)
|
|||||||||
Aerospace/Defense
|
6,634
|
|
5,001
|
|
|
1,545
|
|
|
88
|
|
—
|
|
—
|
|
—
|
|
(112
|
)
|
(1
|
)
|
|||||||||
Leisure
|
5,239
|
|
2,970
|
|
|
1,667
|
|
|
490
|
|
112
|
|
1
|
|
—
|
|
(10
|
)
|
(16
|
)
|
|||||||||
All other
(c)
|
199,014
|
|
178,663
|
|
|
19,327
|
|
|
782
|
|
242
|
|
1,077
|
|
(10
|
)
|
(6,360
|
)
|
(403
|
)
|
|||||||||
Subtotal
|
$
|
827,521
|
|
$
|
640,031
|
|
|
$
|
174,450
|
|
|
$
|
11,800
|
|
$
|
1,240
|
|
$
|
1,528
|
|
$
|
13
|
|
$
|
(27,454
|
)
|
$
|
(13,089
|
)
|
Loans held-for-sale and loans at fair value
|
9,269
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Receivables from customers and other
|
26,338
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total
|
$
|
863,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected metrics
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
30 days or more past due and accruing loans
|
Full year net charge-offs/
(recoveries)
|
Credit portfolio management credit derivative hedges
(e)
|
Liquid securities
and other cash collateral held against derivative
receivables |
||||||||||||||||||
|
|
|
|
Noninvestment-grade
|
|||||||||||||||||||||||||
As of or for the year ended
|
Credit
exposure
(d)
|
Investment-
grade
|
|
Noncriticized
|
|
Criticized performing
|
Criticized nonperforming
|
||||||||||||||||||||||
December 31, 2013
|
|||||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Top 25 industries
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Real Estate
|
$
|
87,102
|
|
$
|
62,964
|
|
|
$
|
21,505
|
|
|
$
|
2,286
|
|
$
|
347
|
|
$
|
178
|
|
$
|
6
|
|
$
|
(66
|
)
|
$
|
(125
|
)
|
Banks & Finance Cos
|
66,881
|
|
56,675
|
|
|
9,707
|
|
|
431
|
|
68
|
|
14
|
|
(22
|
)
|
(2,692
|
)
|
(6,227
|
)
|
|||||||||
Oil & Gas
|
46,934
|
|
34,708
|
|
|
11,779
|
|
|
436
|
|
11
|
|
34
|
|
13
|
|
(227
|
)
|
(67
|
)
|
|||||||||
Healthcare
|
45,910
|
|
37,635
|
|
|
7,952
|
|
|
317
|
|
6
|
|
49
|
|
3
|
|
(198
|
)
|
(195
|
)
|
|||||||||
Consumer Products
|
34,145
|
|
21,100
|
|
|
12,505
|
|
|
537
|
|
3
|
|
4
|
|
11
|
|
(149
|
)
|
(1
|
)
|
|||||||||
State & Municipal Govt
(b)
|
35,666
|
|
34,563
|
|
|
826
|
|
|
157
|
|
120
|
|
40
|
|
1
|
|
(161
|
)
|
(144
|
)
|
|||||||||
Asset Managers
|
33,506
|
|
26,991
|
|
|
6,477
|
|
|
38
|
|
—
|
|
217
|
|
(7
|
)
|
(5
|
)
|
(3,191
|
)
|
|||||||||
Utilities
|
28,983
|
|
25,521
|
|
|
3,045
|
|
|
411
|
|
6
|
|
2
|
|
28
|
|
(445
|
)
|
(306
|
)
|
|||||||||
Retail & Consumer Services
|
25,068
|
|
16,101
|
|
|
8,453
|
|
|
492
|
|
22
|
|
6
|
|
—
|
|
(91
|
)
|
—
|
|
|||||||||
Central Govt
|
21,049
|
|
20,633
|
|
|
345
|
|
|
71
|
|
—
|
|
—
|
|
—
|
|
(10,088
|
)
|
(1,541
|
)
|
|||||||||
Technology
|
21,403
|
|
13,787
|
|
|
6,771
|
|
|
825
|
|
20
|
|
—
|
|
—
|
|
(512
|
)
|
—
|
|
|||||||||
Machinery & Equipment Mfg
|
19,078
|
|
11,154
|
|
|
7,549
|
|
|
368
|
|
7
|
|
20
|
|
(18
|
)
|
(257
|
)
|
(8
|
)
|
|||||||||
Metals/Mining
|
17,434
|
|
9,266
|
|
|
7,508
|
|
|
594
|
|
66
|
|
1
|
|
16
|
|
(621
|
)
|
(36
|
)
|
|||||||||
Transportation
|
13,975
|
|
9,683
|
|
|
4,165
|
|
|
100
|
|
27
|
|
10
|
|
8
|
|
(68
|
)
|
—
|
|
|||||||||
Building Materials/Construction
|
12,901
|
|
5,701
|
|
|
6,354
|
|
|
839
|
|
7
|
|
15
|
|
3
|
|
(132
|
)
|
—
|
|
|||||||||
Business Services
|
14,601
|
|
7,838
|
|
|
6,447
|
|
|
286
|
|
30
|
|
9
|
|
10
|
|
(10
|
)
|
(2
|
)
|
|||||||||
Media
|
13,858
|
|
7,783
|
|
|
5,658
|
|
|
315
|
|
102
|
|
6
|
|
36
|
|
(26
|
)
|
(5
|
)
|
|||||||||
Automotive
|
12,532
|
|
7,881
|
|
|
4,490
|
|
|
159
|
|
2
|
|
3
|
|
(3
|
)
|
(472
|
)
|
—
|
|
|||||||||
Telecom Services
|
13,906
|
|
9,130
|
|
|
4,284
|
|
|
482
|
|
10
|
|
—
|
|
7
|
|
(272
|
)
|
(8
|
)
|
|||||||||
Insurance
|
13,761
|
|
10,681
|
|
|
2,757
|
|
|
84
|
|
239
|
|
—
|
|
(2
|
)
|
(98
|
)
|
(1,935
|
)
|
|||||||||
Securities Firms & Exchanges
|
10,035
|
|
4,208
|
|
(f)
|
5,806
|
|
(f)
|
14
|
|
7
|
|
1
|
|
(68
|
)
|
(4,169
|
)
|
(175
|
)
|
|||||||||
Chemicals/Plastics
|
10,637
|
|
7,189
|
|
|
3,211
|
|
|
222
|
|
15
|
|
—
|
|
—
|
|
(13
|
)
|
(83
|
)
|
|||||||||
Agriculture/Paper Mfg
|
7,387
|
|
4,238
|
|
|
3,064
|
|
|
82
|
|
3
|
|
31
|
|
—
|
|
(4
|
)
|
(4
|
)
|
|||||||||
Aerospace/Defense
|
6,873
|
|
5,447
|
|
|
1,426
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(142
|
)
|
(1
|
)
|
|||||||||
Leisure
|
5,331
|
|
2,950
|
|
|
1,797
|
|
|
495
|
|
89
|
|
5
|
|
—
|
|
(10
|
)
|
(14
|
)
|
|||||||||
All other
(c)
|
201,298
|
|
180,460
|
|
|
19,911
|
|
|
692
|
|
235
|
|
1,249
|
|
(6
|
)
|
(7,068
|
)
|
(367
|
)
|
|||||||||
Subtotal
|
$
|
820,254
|
|
$
|
634,287
|
|
|
$
|
173,792
|
|
|
$
|
10,733
|
|
$
|
1,442
|
|
$
|
1,894
|
|
$
|
16
|
|
$
|
(27,996
|
)
|
$
|
(14,435
|
)
|
Loans held-for-sale and loans at fair value
|
13,301
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Receivables from customers and other
|
26,744
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total
|
$
|
860,299
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The industry rankings presented in the table as of
December 31, 2013
, are based on the industry rankings of the corresponding exposures at
March 31, 2014
, not actual rankings of such exposures at
December 31, 2013
.
|
(b)
|
In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at
March 31, 2014
, and
December 31, 2013
, noted above, the Firm held:
$7.1 billion
and
$7.9 billion
, respectively, of trading securities;
$26.2 billion
and
$29.5 billion
, respectively, of AFS securities; and
$7.7 billion
and
$920 million
, respectively, of HTM securities, issued by U.S. state and municipal governments. For further information, see Note 3 and Note 11 on
pages 86–97
and
pages 113–116
, respectively, of
this Form 10-Q
.
|
(c)
|
All other includes: individuals, private education and civic organizations; SPEs; and holding companies, representing approximately
67%
,
21%
and
5%
, respectively, at
March 31, 2014
, and
64%
,
22%
and
5%
, respectively, at
December 31, 2013
.
|
(d)
|
Credit exposure is net of risk participations and excludes the benefit of “Credit Portfolio Management derivatives net notional” held against derivative receivables or loans and “Liquid securities and other cash collateral held against derivative receivables”.
|
(e)
|
Represents the net notional amounts of protection purchased and sold through credit derivatives used to manage the credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. The all other category includes purchased credit protection on certain credit indices.
|
(f)
|
The prior period amounts have been revised to conform with the current period presentation.
|
(a)
|
During 2013, certain loans that resulted from restructurings that were previously classified as performing were reclassified as nonperforming loans.
|
Wholesale net charge-offs
|
||||||
(in millions, except ratios)
|
Three months
ended March 31, |
|||||
2014
|
2013
|
|||||
Loans - reported
|
|
|
||||
Average loans retained
|
$
|
309,037
|
|
$
|
303,919
|
|
Gross charge-offs
|
68
|
|
66
|
|
||
Gross recoveries
|
(55
|
)
|
(31
|
)
|
||
Net charge-offs
|
13
|
|
35
|
|
||
Net charge-off rate
|
0.02
|
%
|
0.05
|
%
|
Derivative receivables
|
|
|
||||
(in millions)
|
Derivative receivables
|
|||||
March 31,
2014 |
December 31,
2013 |
|||||
Interest rate
|
$
|
28,537
|
|
$
|
25,782
|
|
Credit derivatives
|
1,211
|
|
1,516
|
|
||
Foreign exchange
|
13,790
|
|
16,790
|
|
||
Equity
|
7,283
|
|
12,227
|
|
||
Commodity
|
8,451
|
|
9,444
|
|
||
Total, net of cash collateral
|
59,272
|
|
65,759
|
|
||
Liquid securities and other cash collateral held against derivative receivables
|
(13,089
|
)
|
(14,435
|
)
|
||
Total, net of collateral
|
$
|
46,183
|
|
$
|
51,324
|
|
(a)
|
The prior period amounts have been revised to conform with the current period presentation.
|
(a)
|
Amounts are presented net, considering the Firm’s net protection purchased or sold with respect to each underlying reference entity or index.
|
COMMUNITY REINVESTMENT ACT EXPOSURE
|
ALLOWANCE FOR CREDIT LOSSES
|
(a)
|
Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. Any write-offs of PCI loans are recognized when the underlying loan is removed from a pool (e.g., upon liquidation).
|
(b)
|
Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a TDR.
|
(c)
|
The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.
|
|
Three months ended March 31,
|
|||||||||||||||||||
|
Provision for loan losses
|
|
Provision for lending-related commitments
|
|
Total provision for credit losses
|
|||||||||||||||
(in millions)
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
||||||
Consumer, excluding credit card
|
$
|
119
|
|
$
|
(37
|
)
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
119
|
|
$
|
(37
|
)
|
Credit card
|
688
|
|
582
|
|
|
—
|
|
—
|
|
|
688
|
|
582
|
|
||||||
Total consumer
|
807
|
|
545
|
|
|
—
|
|
—
|
|
|
807
|
|
545
|
|
||||||
Wholesale
|
110
|
|
24
|
|
|
(67
|
)
|
48
|
|
|
43
|
|
72
|
|
||||||
Total provision for credit losses
|
$
|
917
|
|
$
|
569
|
|
|
$
|
(67
|
)
|
$
|
48
|
|
|
$
|
850
|
|
$
|
617
|
|
MARKET RISK MANAGEMENT
|
Total VaR
|
Three months ended March 31,
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
2014
|
|
2013
|
|
At March 31,
|
|||||||||||||||||||||||||||||
(in millions)
|
Avg.
|
Min
|
Max
|
|
Avg.
|
Min
|
Max
|
|
2014
|
|
2013
|
|
||||||||||||||||||||||
CIB trading VaR by risk type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed income
|
$
|
36
|
|
|
$
|
33
|
|
|
$
|
41
|
|
|
|
$
|
55
|
|
|
$
|
45
|
|
|
$
|
62
|
|
|
|
$
|
35
|
|
|
$
|
49
|
|
|
Foreign exchange
|
7
|
|
|
4
|
|
|
10
|
|
|
|
7
|
|
|
6
|
|
|
10
|
|
|
|
7
|
|
|
7
|
|
|
||||||||
Equities
|
14
|
|
|
10
|
|
|
23
|
|
|
|
13
|
|
|
9
|
|
|
16
|
|
|
|
11
|
|
|
12
|
|
|
||||||||
Commodities and other
|
11
|
|
|
7
|
|
|
14
|
|
|
|
15
|
|
|
12
|
|
|
18
|
|
|
|
9
|
|
|
14
|
|
|
||||||||
Diversification benefit to CIB trading VaR
|
(32
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(34
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(29
|
)
|
(a)
|
(31
|
)
|
(a)
|
||||||||
CIB trading VaR
|
36
|
|
|
30
|
|
|
47
|
|
|
|
56
|
|
|
43
|
|
|
66
|
|
|
|
33
|
|
|
51
|
|
|
||||||||
Credit portfolio VaR
|
13
|
|
|
10
|
|
|
17
|
|
|
|
15
|
|
|
14
|
|
|
18
|
|
|
|
12
|
|
|
15
|
|
|
||||||||
Diversification benefit to CIB VaR
|
(7
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(9
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(7
|
)
|
(a)
|
(12
|
)
|
(a)
|
||||||||
CIB VaR
|
42
|
|
|
34
|
|
|
54
|
|
|
|
62
|
|
|
47
|
|
|
74
|
|
|
|
38
|
|
|
54
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Mortgage Banking VaR
|
5
|
|
|
3
|
|
|
10
|
|
|
|
19
|
|
|
14
|
|
|
24
|
|
|
|
10
|
|
|
14
|
|
|
||||||||
Treasury and CIO VaR
|
5
|
|
|
4
|
|
|
6
|
|
|
|
11
|
|
|
7
|
|
|
14
|
|
|
|
5
|
|
|
7
|
|
|
||||||||
Asset Management VaR
|
3
|
|
|
2
|
|
|
4
|
|
|
|
4
|
|
|
2
|
|
|
5
|
|
|
|
3
|
|
|
5
|
|
|
||||||||
Diversification benefit to other VaR
|
(5
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(13
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(7
|
)
|
(a)
|
(11
|
)
|
(a)
|
||||||||
Other VaR
|
8
|
|
|
5
|
|
|
13
|
|
|
|
21
|
|
|
15
|
|
|
28
|
|
|
|
11
|
|
|
15
|
|
|
||||||||
Diversification benefit to CIB and other VaR
|
(8
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(10
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(11
|
)
|
(a)
|
(8
|
)
|
(a)
|
||||||||
Total VaR
|
$
|
42
|
|
|
$
|
35
|
|
|
$
|
53
|
|
|
|
$
|
73
|
|
|
$
|
59
|
|
|
$
|
87
|
|
|
|
$
|
38
|
|
|
$
|
61
|
|
|
(a)
|
Average portfolio VaR and period-end portfolio VaR were less than the sum of the VaR of the components described above, due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated.
|
(b)
|
Designated as not meaningful (“NM”), because the minimum and maximum may occur on different days for different risk components, and hence it is not meaningful to compute a portfolio-diversification effect.
|
JPMorgan Chase’s 12-month pretax core net interest income sensitivity profiles.
|
||||||||||||
(Excludes the impact of trading activities and MSRs)
|
||||||||||||
|
Instantaneous change in rates
|
|
||||||||||
(in millions)
|
+200bps
|
+100bps
|
-100bps
|
-200bps
|
||||||||
March 31, 2014
|
$
|
4,765
|
|
|
$
|
2,551
|
|
|
NM
|
(a)
|
NM
|
(a)
|
(a)
|
Downward 100- and 200-basis-points parallel shocks result in a federal funds target rate of zero and negative three- and six-month treasury rates. The earnings-at-risk results of such a low-probability scenario are not meaningful.
|
COUNTRY RISK MANAGEMENT
|
(a)
|
Lending includes loans and accrued interest receivable, net of collateral and the allowance for loan losses, deposits with banks, acceptances, other monetary assets, issued letters of credit net of participations, and undrawn commitments to extend credit. Excludes intra-day and operating exposures, such as from settlement and clearing activities.
|
(b)
|
Includes market-making inventory, securities held in AFS accounts, counterparty exposure on derivative and securities financings net of collateral and hedging.
|
(c)
|
Includes single-name and index and tranched credit derivatives for which one or more of the underlying reference entities is in a country listed in the above table.
|
(d)
|
Includes capital invested in local entities and physical commodity inventory.
|
OPERATIONAL RISK MANAGEMENT
|
CAPITAL MANAGEMENT
|
•
|
Regulatory capital
|
•
|
Economic risk capital
|
•
|
Line of business equity
|
|
|
|
|
|
|
|
|
|
|
RWA (Denominator)
|
Standardized Approach
|
Basel I with 2.5
(c)
|
|
Basel III Standardized
|
|||||
|
|
|
|
|
|
|
|
|
|
|
Advanced
Approach
(a)
|
Basel III Advanced
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage (Denominator)
|
Leverage
|
Adjusted average assets
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
Supplementary leverage
(b)
|
|
|
|
|
Average assets + certain off-balance sheet exposures
|
|||
|
|
|
|
|
|
|
|
|
|
(a)
|
Public reporting of Basel III Advanced capital ratios commences as of June 30, 2014.
|
(b)
|
Beginning in 2015, the Firm will report its SLR to its regulators under an observation period. Beginning in 2018, the Firm will be required to publicly disclose its SLR.
|
(c)
|
Defined as Basel III Standardized Transitional.
|
Risk-based capital components and assets
|
|
|
|||||
|
Basel III Transitional
|
|
Basel I
|
||||
(in millions)
|
March 31, 2014
|
|
December 31, 2013
|
||||
Total stockholders’ equity
|
$
|
219,655
|
|
|
$
|
211,178
|
|
Less: Preferred stock
|
15,083
|
|
|
11,158
|
|
||
Common stockholders’ equity
|
204,572
|
|
|
200,020
|
|
||
Accumulated other comprehensive income subject to transition and excluded from Tier 1 common
|
(1,885
|
)
|
|
(1,337
|
)
|
||
Less:
|
|
|
|
||||
Goodwill
(a)
|
45,297
|
|
|
45,320
|
|
||
Other intangible assets
(a)
|
264
|
|
|
2,012
|
|
||
Adjustment related to FVA/DVA on structured notes and OTC derivatives
|
122
|
|
|
1,300
|
|
||
Other Tier 1 common adjustments
|
130
|
|
|
1,164
|
|
||
Tier 1 common
|
156,874
|
|
|
148,887
|
|
||
Preferred stock
|
15,083
|
|
|
11,158
|
|
||
Hybrid securities and noncontrolling interests
(b)
|
2,672
|
|
|
5,618
|
|
||
Less:
|
|
|
|
||||
Adjustment related to FVA/DVA on structured notes and OTC derivatives
|
490
|
|
|
—
|
|
||
Other additional Tier 1 adjustments
|
708
|
|
|
—
|
|
||
Total Tier 1 capital
|
173,431
|
|
|
165,663
|
|
||
Long-term debt and other instruments qualifying as Tier 2
|
16,792
|
|
|
16,695
|
|
||
Qualifying allowance for credit losses
|
15,541
|
|
|
16,969
|
|
||
Hybrid securities and noncontrolling interests
(b)
|
2,672
|
|
|
—
|
|
||
Other
|
(6
|
)
|
|
(41
|
)
|
||
Total Tier 2 capital
|
34,999
|
|
|
33,623
|
|
||
Total qualifying capital
|
$
|
208,430
|
|
|
$
|
199,286
|
|
Credit risk RWA
|
$
|
1,242,823
|
|
|
$
|
1,223,147
|
|
Market risk RWA
|
$
|
195,531
|
|
|
$
|
164,716
|
|
Total RWA
|
$
|
1,438,354
|
|
|
$
|
1,387,863
|
|
Total adjusted average assets
(c)
|
$
|
2,355,690
|
|
|
$
|
2,343,713
|
|
(a)
|
Goodwill and other intangible assets are net of any associated deferred tax liabilities.
|
(b)
|
Primarily includes trust preferred securities (“TruPS”) of certain business trusts . Under Basel III, in 2014, one-half of the TruPS balance is excluded from Tier 1 capital but included as Tier 2 capital. Upon full phase-in of Basel III (effective January 1, 2022) TruPS will no longer qualify as capital for regulatory capital purposes.
|
(c)
|
Adjusted average assets, for purposes of calculating the leverage ratio, include total quarterly average assets adjusted for unrealized gains/(losses) on securities, less deductions for disallowed goodwill and other intangible assets, investments in certain subsidiaries, and the total adjusted carrying value of nonfinancial equity investments that are subject to deductions from Tier 1 capital.
|
Three months ended March 31, (in millions)
|
2014
|
||
Basel I Tier 1 common at December 31, 2013
|
$
|
148,887
|
|
Net income applicable to common equity
|
5,047
|
|
|
Dividends declared on common stock
|
(1,485
|
)
|
|
Net issuance of treasury stock
|
1,119
|
|
|
Changes in capital surplus
|
(1,205
|
)
|
|
Adjustment related to FVA/DVA on structured notes and OTC derivatives
|
688
|
|
|
Other
|
32
|
|
|
Effect of rule changes (implementation of Basel III Transitional)
|
3,791
|
|
|
Increase in Tier 1 common
|
7,987
|
|
|
Basel III Transitional Tier 1 common at March 31, 2014
|
$
|
156,874
|
|
|
|
||
Basel I Tier 1 capital at December 31, 2013
|
$
|
165,663
|
|
Change in Tier 1 common
|
7,987
|
|
|
Net issuance of noncumulative perpetual preferred stock
|
3,925
|
|
|
Redemption of qualifying trust preferred securities
|
(1
|
)
|
|
Other
|
62
|
|
|
Effect of rule changes (implementation of Basel III Transitional)
|
(4,205)
|
||
Increase in Tier 1 capital
|
7,768
|
|
|
Basel III Transitional Tier 1 capital at March 31, 2014
|
$
|
173,431
|
|
|
|
||
Basel I Tier 2 capital at December 31, 2013
|
$
|
33,623
|
|
Effect of rule changes (implementation of Basel III Transitional)
|
2,795
|
|
|
Change in long-term debt and other instruments qualifying as Tier 2
|
9
|
|
|
Change in allowance for credit losses
|
(1,428
|
)
|
|
Increase in Tier 2 capital
|
1,376
|
|
|
Basel III Transitional Tier 2 capital at March 31, 2014
|
$
|
34,999
|
|
Basel III Transitional Total capital at March 31, 2014
|
$
|
208,430
|
|
|
Three months ended March 31, 2014
|
||||||||||
(in billions)
|
Credit risk RWA
|
|
Market risk RWA
|
|
Total RWA
|
||||||
Basel I RWA at December 31, 2013
|
$
|
1,223
|
|
|
$
|
165
|
|
|
$
|
1,388
|
|
Rule changes
(a)
|
12
|
|
|
—
|
|
|
|
||||
Model & data changes
(b)
|
8
|
|
|
42
|
|
|
|
||||
Portfolio runoff
(c)
|
(2
|
)
|
|
(16
|
)
|
|
|
||||
Movement in portfolio levels
(d)
|
1
|
|
|
5
|
|
|
|
||||
Increase in RWA
|
19
|
|
|
31
|
|
|
50
|
|
|||
Basel III Standardized Transitional RWA at March 31, 2014
|
$
|
1,242
|
|
|
$
|
196
|
|
|
$
|
1,438
|
|
(a)
|
Rule changes refer to movements in RWA as a result of changes in regulations, in particular, the implementation of Basel III Standardized Transitional effective January 1, 2014.
|
(b)
|
Model & data changes refer to movements in RWA as a result of revised methodologies and/or treatment per regulatory guidance (exclusive of rule changes).
|
(c)
|
Portfolio runoff for credit risk RWA reflects lower loan balances in Mortgage Banking and for market risk RWA reflects reduced risk from position rolloffs, including changes in the synthetic credit portfolio.
|
(d)
|
Movement in portfolio levels for credit risk RWA refers to changes in book size, composition, credit quality, and market movements; and for market risk RWA, refers to changes in position and market movements.
|
|
Basel III Standardized Transitional
|
|
Basel I
|
|
|
|
|
||||
|
March 31, 2014
|
|
December 31, 2013
|
|
Minimum capital ratios
(a)
|
Well-capitalized ratios
(b)
|
|
||||
Risk-based capital ratios:
|
|
|
|
|
|
|
|
||||
Tier 1 common
|
10.9
|
%
|
|
10.7
|
%
|
|
4.0
|
%
|
N/A
|
|
(c)
|
Tier 1 capital
|
12.1
|
|
|
11.9
|
|
|
5.5
|
|
6.0
|
%
|
|
Total capital
|
14.5
|
|
|
14.4
|
|
|
8.0
|
|
10.0
|
|
|
Leverage ratio:
|
|
|
|
|
|
|
|
||||
Tier 1 leverage
|
7.4
|
|
|
7.1
|
|
|
4.0
|
|
5.0
|
|
|
(a)
|
Represents the minimum capital ratios for 2014 applicable to the Firm under Basel III.
|
(b)
|
Represents the minimum capital ratios for 2014 applicable to the Firm under the Prompt Corrective Action (“PCA”) requirements of the FDIC Improvement Act (“FDICIA”).
|
(c)
|
Beginning January 1, 2015, Basel III Transitional Tier 1 common and the Basel III Standardized Transitional Tier 1 common ratio become relevant capital measures under the prompt corrective action requirements as defined by the regulations.
|
March 31, 2014
(in millions, except ratios)
|
|
||
Basel III Transitional Tier 1 common
|
$
|
156,874
|
|
Adjustments related to AOCI
|
1,885
|
|
|
Deduction for deferred tax asset related to net operating loss and foreign tax credit carryforwards
|
(573
|
)
|
|
All other adjustments
|
(1,815
|
)
|
|
Estimated Basel III Fully Phased-In Tier 1 common
|
$
|
156,371
|
|
Estimated Basel III Advanced Fully Phased-In RWA
|
$
|
1,637,140
|
|
Estimated Basel III Advanced Fully Phased-In Tier 1 common ratio
|
9.6
|
%
|
Line of business equity
|
|
|
||||||
(in billions)
|
|
March 31, 2014
|
|
December 31, 2013
|
||||
Consumer & Community Banking
|
|
$
|
51.0
|
|
|
$
|
46.0
|
|
Corporate & Investment Bank
|
|
61.0
|
|
|
56.5
|
|
||
Commercial Banking
|
|
14.0
|
|
|
13.5
|
|
||
Asset Management
|
|
9.0
|
|
|
9.0
|
|
||
Corporate/Private Equity
|
|
69.6
|
|
|
75.0
|
|
||
Total common stockholders’ equity
|
|
$
|
204.6
|
|
|
$
|
200.0
|
|
Line of business equity
|
|
Quarterly average
|
||||||||||
(in billions)
|
|
1Q14
|
|
|
4Q13
|
|
|
1Q13
|
|
|||
Consumer & Community Banking
|
|
$
|
51.0
|
|
|
$
|
46.0
|
|
|
$
|
46.0
|
|
Corporate & Investment Bank
|
|
61.0
|
|
|
56.5
|
|
|
56.5
|
|
|||
Commercial Banking
|
|
14.0
|
|
|
13.5
|
|
|
13.5
|
|
|||
Asset Management
|
|
9.0
|
|
|
9.0
|
|
|
9.0
|
|
|||
Corporate/Private Equity
|
|
66.8
|
|
|
71.4
|
|
|
69.7
|
|
|||
Total common stockholders’ equity
|
|
$
|
201.8
|
|
|
$
|
196.4
|
|
|
$
|
194.7
|
|
Three months ended
(in millions)
|
|
March 31, 2014
|
|
March 31, 2013
|
||||
Total number of shares of common stock repurchased
|
|
7
|
|
|
54
|
|
||
Aggregate purchase price of common stock repurchases
|
|
$
|
400
|
|
|
$
|
2,600
|
|
LIQUIDITY RISK MANAGEMENT
|
|
|
|
|
Three months ended March 31,
|
|||||||||
Deposits
|
March 31,
|
December 31,
|
|
Average
|
|||||||||
(in millions)
|
2014
|
2013
|
|
2014
|
2013
|
||||||||
Consumer & Community Banking
|
$
|
487,674
|
|
$
|
464,412
|
|
|
$
|
471,581
|
|
$
|
441,335
|
|
Corporate & Investment Bank
|
424,058
|
|
446,237
|
|
|
411,222
|
|
356,473
|
|
||||
Commercial Banking
|
199,951
|
|
206,127
|
|
|
188,786
|
|
182,197
|
|
||||
Asset Management
|
147,760
|
|
146,183
|
|
|
149,432
|
|
139,441
|
|
||||
Corporate/Private Equity
|
23,262
|
|
24,806
|
|
|
23,258
|
|
24,337
|
|
||||
Total Firm
|
$
|
1,282,705
|
|
$
|
1,287,765
|
|
|
$
|
1,244,279
|
|
$
|
1,143,783
|
|
|
March 31, 2014
|
December 31, 2013
|
|
Three months ended March 31,
|
|||||||||
Sources of funds (excluding deposits)
|
|
Average
|
|||||||||||
(in millions)
|
|
2014
|
2013
|
||||||||||
Commercial paper:
|
|
|
|
|
|
||||||||
Wholesale funding
|
$
|
18,152
|
|
$
|
17,249
|
|
|
$
|
19,026
|
|
$
|
17,489
|
|
Client cash management
|
42,673
|
|
40,599
|
|
|
39,656
|
|
35,595
|
|
||||
Total commercial paper
|
$
|
60,825
|
|
$
|
57,848
|
|
|
$
|
58,682
|
|
$
|
53,084
|
|
|
|
|
|
|
|
||||||||
Other borrowed funds
|
$
|
31,951
|
|
$
|
27,994
|
|
|
$
|
29,432
|
|
$
|
27,548
|
|
|
|
|
|
|
|
||||||||
Securities loaned or sold under agreements to repurchase:
|
|
|
|
|
|
||||||||
Securities sold under agreements to repurchase
|
$
|
188,791
|
|
$
|
155,808
|
|
|
$
|
172,737
|
|
$
|
219,284
|
|
Securities loaned
|
23,298
|
|
19,509
|
|
|
22,742
|
|
26,827
|
|
||||
Total securities loaned or sold under agreements to repurchase
(a)(b)(c)
|
$
|
212,089
|
|
$
|
175,317
|
|
|
$
|
195,479
|
|
$
|
246,111
|
|
|
|
|
|
|
|
||||||||
Total senior notes
|
$
|
141,572
|
|
$
|
135,754
|
|
|
$
|
137,699
|
|
$
|
135,639
|
|
Trust preferred securities
|
5,461
|
|
5,445
|
|
|
5,456
|
|
10,389
|
|
||||
Subordinated debt
|
29,086
|
|
29,578
|
|
|
29,404
|
|
26,480
|
|
||||
Structured notes
|
29,943
|
|
28,603
|
|
|
28,940
|
|
30,250
|
|
||||
Total long-term unsecured funding
|
$
|
206,062
|
|
$
|
199,380
|
|
|
$
|
201,499
|
|
$
|
202,758
|
|
|
|
|
|
|
|
||||||||
Credit card securitization
|
$
|
27,061
|
|
$
|
26,580
|
|
|
$
|
27,557
|
|
$
|
28,334
|
|
Other securitizations
(d)
|
3,161
|
|
3,253
|
|
|
3,242
|
|
3,665
|
|
||||
FHLB advances
|
61,867
|
|
61,876
|
|
|
61,304
|
|
45,334
|
|
||||
Other long-term secured funding
(e)
|
6,583
|
|
6,633
|
|
|
6,600
|
|
6,235
|
|
||||
Total long-term secured funding
|
$
|
98,672
|
|
$
|
98,342
|
|
|
$
|
98,703
|
|
$
|
83,568
|
|
|
|
|
|
|
|
||||||||
Preferred stock
(f)
|
$
|
15,083
|
|
$
|
11,158
|
|
|
$
|
13,556
|
|
$
|
9,608
|
|
Common stockholders’ equity
(f)
|
$
|
204,572
|
|
$
|
200,020
|
|
|
$
|
201,797
|
|
$
|
194,733
|
|
(a)
|
Excludes federal funds purchased.
|
(b)
|
Excluded long-term structured repurchase agreements of
$4.5 billion
and
$4.6 billion
as of
March 31, 2014
, and December 31, 2013, respectively, and average balance of
$4.7 billion
and
$3.3 billion
for the three months ended
March 31, 2014
and 2013, respectively.
|
(c)
|
Excluded long-term securities loaned of
$483 million
as of December 31, 2013; there were no long-term securities loaned as of
March 31, 2014
. Excluded average balances of
$97 million
and
$456 million
for the three months ended
March 31, 2014
and 2013, respectively.
|
(d)
|
Other securitizations includes securitizations of residential mortgages and student loans. The Firm’s wholesale businesses also securitize loans for client-driven transactions; those client-driven loan securitizations are not considered to be a source of funding for the Firm and are not included in the table.
|
(e)
|
Includes long-term structured notes which are secured.
|
(f)
|
For additional information on preferred stock and common stockholders’ equity see Capital Management on
pages 63–70
and the Consolidated Statements of Changes in Stockholders’ Equity on
page 83
of this Form 10-Q, and Note 22 on
page 309
and Note 23 on
page 310
of JPMorgan Chase’s 2013 Annual Report.
|
Long-term unsecured funding
|
Three months ended March 31,
|
|||||
(in millions)
|
2014
|
2013
|
||||
Issuance
|
|
|
||||
Senior notes issued in the U.S. market
|
$
|
9,487
|
|
$
|
13,398
|
|
Senior notes issued in non-U.S. markets
|
3,848
|
|
1,355
|
|
||
Total senior notes
|
13,335
|
|
14,753
|
|
||
Trust preferred securities
|
—
|
|
—
|
|
||
Subordinated debt
|
—
|
|
—
|
|
||
Structured notes
|
5,736
|
|
5,045
|
|
||
Total long-term unsecured funding – issuance
|
$
|
19,071
|
|
$
|
19,798
|
|
|
|
|
||||
Maturities/redemptions
|
|
|
||||
Total senior notes
|
$
|
8,817
|
|
$
|
4,007
|
|
Trust preferred securities
|
—
|
|
—
|
|
||
Subordinated debt
|
600
|
|
2,417
|
|
||
Structured notes
|
4,816
|
|
4,810
|
|
||
Total long-term unsecured funding – maturities/redemptions
|
$
|
14,233
|
|
$
|
11,234
|
|
|
Three months ended March 31,
|
|
Three months ended March 31,
|
||||||||||
Long-term secured funding
|
Issuance
|
|
Maturities/Redemptions
|
||||||||||
(in millions)
|
2014
|
2013
|
|
2014
|
2013
|
||||||||
Credit card securitization
|
$
|
1,750
|
|
$
|
1,900
|
|
|
$
|
1,301
|
|
$
|
4,118
|
|
Other securitizations
(a)
|
—
|
|
—
|
|
|
92
|
|
101
|
|
||||
FHLB advances
|
1,000
|
|
14,700
|
|
|
1,009
|
|
704
|
|
||||
Other long-term secured funding
|
$
|
40
|
|
$
|
126
|
|
|
$
|
97
|
|
$
|
93
|
|
Total long-term secured funding
|
$
|
2,790
|
|
$
|
16,726
|
|
|
$
|
2,499
|
|
$
|
5,016
|
|
(a)
|
Other securitizations includes securitizations of residential mortgages and student loans.
|
(in billions)
|
March 31, 2014
|
||
HQLA
(a)
|
|
||
Eligible cash
(b)
|
$
|
328
|
|
Eligible securities
(c)
|
210
|
|
|
Total HQLA
|
$
|
538
|
|
(a)
|
HQLA under the proposed U.S. LCR is estimated to be lower than the total HQLA show in this table primarily due to exclusions of certain security types, based on the Firm’s understanding of the proposed rule.
|
(b)
|
Primarily cash on deposit at central banks.
|
(c)
|
Primarily includes U.S. agency mortgage-backed securities, U.S. Treasuries, sovereign bonds and other government-guaranteed or government-sponsored securities.
|
|
JPMorgan Chase & Co.
|
|
JPMorgan Chase Bank, N.A.
Chase Bank USA, N.A.
|
|
J.P. Morgan Securities LLC
|
||||||
March 31, 2014
|
Long-term issuer
|
Short-term issuer
|
Outlook
|
|
Long-term issuer
|
Short-term issuer
|
Outlook
|
|
Long-term issuer
|
Short-term issuer
|
Outlook
|
Moody’s Investor Services
|
A3
|
P-2
|
Stable
|
|
Aa3
|
P-1
|
Stable
|
|
Aa3
|
P-1
|
Stable
|
Standard & Poor’s
|
A
|
A-1
|
Negative
|
|
A+
|
A-1
|
Stable
|
|
A+
|
A-1
|
Stable
|
Fitch Ratings
|
A+
|
F1
|
Stable
|
|
A+
|
F1
|
Stable
|
|
A+
|
F1
|
Stable
|
SUPERVISION AND REGULATION
|
CRITICAL ACCOUNTING ESTIMATES USED BY THE FIRM
|
•
|
For PCI loans, a combined
5%
decline in housing prices and a
1%
increase in unemployment from current levels could imply an increase to modeled credit loss estimates of approximately
$1.0 billion
.
|
•
|
For the residential real estate portfolio, excluding PCI loans, a combined
5%
decline in housing prices and a
1%
increase in unemployment from current levels could imply an increase to modeled annual loss estimates of approximately
$200 million
.
|
•
|
A
50
basis point deterioration in forecasted credit card loss rates could imply an increase to modeled annualized credit card loan loss estimates of approximately
$600 million
.
|
•
|
A one-notch downgrade in the Firm’s internal risk ratings for its entire wholesale loan portfolio could imply an increase in the Firm’s modeled loss estimates of approximately
$2.2 billion
.
|
March 31, 2014
(in billions, except ratio data)
|
Total assets at fair value
|
Total level 3 assets
|
||||||
Trading debt and equity instruments
|
$
|
315.9
|
|
|
$
|
24.3
|
|
|
Derivative receivables
|
59.3
|
|
|
17.4
|
|
|
||
Trading assets
|
375.2
|
|
|
41.7
|
|
|
||
AFS securities
|
304.6
|
|
|
2.3
|
|
|
||
Loans
|
2.3
|
|
|
2.3
|
|
|
||
MSRs
|
8.6
|
|
|
8.6
|
|
|
||
Private equity investments
|
6.6
|
|
|
5.3
|
|
|
||
Other
|
35.6
|
|
|
3.0
|
|
|
||
Total assets measured
at fair value on a recurring basis
|
732.9
|
|
|
63.2
|
|
|
||
Total assets measured at fair value on a nonrecurring basis
|
3.8
|
|
|
3.5
|
|
|
||
Total assets measured
at fair value
|
$
|
736.7
|
|
|
$
|
66.7
|
|
|
Total Firm assets
|
$
|
2,477.0
|
|
|
|
|
||
Level 3 assets as a percentage of total Firm assets
|
|
|
2.7
|
%
|
|
|||
Level 3 assets as a percentage of total Firm assets at fair value
|
|
|
9.1
|
%
|
|
ACCOUNTING AND REPORTING DEVELOPMENTS
|
FORWARD-LOOKING STATEMENTS
|
•
|
Local, regional and international business, economic and political conditions and geopolitical events;
|
•
|
Changes in laws and regulatory requirements, including as a result of recent financial services legislation;
|
•
|
Changes in trade, monetary and fiscal policies and laws;
|
•
|
Securities and capital markets behavior, including changes in market liquidity and volatility;
|
•
|
Changes in investor sentiment or consumer spending or savings behavior;
|
•
|
Ability of the Firm to manage effectively its capital and liquidity, including approval of its capital plans by banking regulators;
|
•
|
Changes in credit ratings assigned to the Firm or its subsidiaries;
|
•
|
Damage to the Firm’s reputation;
|
•
|
Ability of the Firm to deal effectively with an economic slowdown or other economic or market disruption;
|
•
|
Technology changes instituted by the Firm, its counterparties or competitors;
|
•
|
The success of the Firm's business simplification initiatives and the effectiveness of its control agenda;
|
•
|
Ability of the Firm to develop new products and services, and the extent to which products or services previously sold by the Firm (including but not limited to mortgages and asset-backed securities) require the Firm to incur liabilities or absorb losses not contemplated at their initiation or origination;
|
•
|
Ability of the Firm to address enhanced regulatory requirements affecting its mortgage business;
|
•
|
Acceptance of the Firm’s new and existing products and services by the marketplace and the ability of the Firm to increase market share;
|
•
|
Ability of the Firm to attract and retain employees;
|
•
|
Ability of the Firm to control expense;
|
•
|
Competitive pressures;
|
•
|
Changes in the credit quality of the Firm’s customers and counterparties;
|
•
|
Adequacy of the Firm’s risk management framework, disclosure controls and procedures and internal control over financial reporting;
|
•
|
Adverse judicial or regulatory proceedings;
|
•
|
Changes in applicable accounting policies;
|
•
|
Ability of the Firm to determine accurate values of certain assets and liabilities;
|
•
|
Occurrence of natural or man-made disasters or calamities or conflicts, including any effect of any such disasters, calamities or conflicts on the Firm’s power generation facilities and the Firm’s other physical commodity-related activities;
|
•
|
Ability of the Firm to maintain the security of its financial, accounting, technology, data processing and other operating systems and facilities;
|
|
|
Three months ended
March 31,
|
||||||
(in millions, except per share data)
|
|
2014
|
|
2013
|
||||
Revenue
|
|
|
|
|
||||
Investment banking fees
|
|
$
|
1,420
|
|
|
$
|
1,445
|
|
Principal transactions
|
|
3,322
|
|
|
3,761
|
|
||
Lending- and deposit-related fees
|
|
1,405
|
|
|
1,468
|
|
||
Asset management, administration and commissions
|
|
3,836
|
|
|
3,599
|
|
||
Securities gains
(a)
|
|
30
|
|
|
509
|
|
||
Mortgage fees and related income
|
|
514
|
|
|
1,452
|
|
||
Credit card income
|
|
1,408
|
|
|
1,419
|
|
||
Other income
|
|
391
|
|
|
536
|
|
||
Noninterest revenue
|
|
12,326
|
|
|
14,189
|
|
||
Interest income
|
|
12,793
|
|
|
13,365
|
|
||
Interest expense
|
|
2,126
|
|
|
2,432
|
|
||
Net interest income
|
|
10,667
|
|
|
10,933
|
|
||
Total net revenue
|
|
22,993
|
|
|
25,122
|
|
||
|
|
|
|
|
||||
Provision for credit losses
|
|
850
|
|
|
617
|
|
||
|
|
|
|
|
||||
Noninterest expense
|
|
|
|
|
||||
Compensation expense
|
|
7,859
|
|
|
8,414
|
|
||
Occupancy expense
|
|
952
|
|
|
901
|
|
||
Technology, communications and equipment expense
|
|
1,411
|
|
|
1,332
|
|
||
Professional and outside services
|
|
1,786
|
|
|
1,734
|
|
||
Marketing
|
|
564
|
|
|
589
|
|
||
Other expense
|
|
1,933
|
|
|
2,301
|
|
||
Amortization of intangibles
|
|
131
|
|
|
152
|
|
||
Total noninterest expense
|
|
14,636
|
|
|
15,423
|
|
||
Income before income tax expense
|
|
7,507
|
|
|
9,082
|
|
||
Income tax expense
|
|
2,233
|
|
|
2,553
|
|
||
Net income
|
|
$
|
5,274
|
|
|
$
|
6,529
|
|
Net income applicable to common stockholders
|
|
$
|
4,898
|
|
|
$
|
6,131
|
|
Net income per common share data
|
|
|
|
|
||||
Basic earnings per share
|
|
$
|
1.29
|
|
|
$
|
1.61
|
|
Diluted earnings per share
|
|
1.28
|
|
|
1.59
|
|
||
|
|
|
|
|
||||
Weighted-average basic shares
|
|
3,787.2
|
|
|
3,818.2
|
|
||
Weighted-average diluted shares
|
|
3,823.6
|
|
|
3,847.0
|
|
||
Cash dividends declared per common share
|
|
$
|
0.38
|
|
|
$
|
0.30
|
|
(a)
|
For the three months ended March 31, 2014, the Firm recognized
$3 million
of OTTI losses related to securities the Firm intends to sell. The Firm did not recognize any OTTI losses for the three months ended March 31, 2013.
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
||||||
(in millions)
|
|
2014
|
|
2013
|
||||
Net income
|
|
$
|
5,274
|
|
|
$
|
6,529
|
|
Other comprehensive income/(loss), after-tax
|
|
|
|
|
||||
Unrealized gains/(losses) on investment securities
|
|
994
|
|
|
(640
|
)
|
||
Translation adjustments, net of hedges
|
|
(2
|
)
|
|
(13
|
)
|
||
Cash flow hedges
|
|
59
|
|
|
(62
|
)
|
||
Defined benefit pension and OPEB plans
|
|
26
|
|
|
104
|
|
||
Total other comprehensive income/(loss), after-tax
|
|
1,077
|
|
|
(611
|
)
|
||
Comprehensive income
|
|
$
|
6,351
|
|
|
$
|
5,918
|
|
(in millions, except share data)
|
Mar 31, 2014
|
|
Dec 31, 2013
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
26,321
|
|
|
$
|
39,771
|
|
Deposits with banks
|
372,531
|
|
|
316,051
|
|
||
Federal funds sold and securities purchased under resale agreements (included
$25,727
and $25,135 at fair value)
|
265,168
|
|
|
248,116
|
|
||
Securities borrowed (included
$2,392
and $3,739 at fair value)
|
122,021
|
|
|
111,465
|
|
||
Trading assets (included assets pledged of
$117,514
and $106,299)
|
375,204
|
|
|
374,664
|
|
||
Securities (included
$304,579
and $329,977 at fair value and assets pledged of
$31,131
and $23,446)
|
351,850
|
|
|
354,003
|
|
||
Loans (included
$2,349
and $2,011 at fair value)
|
730,971
|
|
|
738,418
|
|
||
Allowance for loan losses
|
(15,847
|
)
|
|
(16,264
|
)
|
||
Loans, net of allowance for loan losses
|
715,124
|
|
|
722,154
|
|
||
Accrued interest and accounts receivable
|
73,122
|
|
|
65,160
|
|
||
Premises and equipment
|
14,919
|
|
|
14,891
|
|
||
Goodwill
|
48,065
|
|
|
48,081
|
|
||
Mortgage servicing rights
|
8,552
|
|
|
9,614
|
|
||
Other intangible assets
|
1,489
|
|
|
1,618
|
|
||
Other assets (included
$14,146
and $15,187 at fair value and assets pledged of
$436
and $2,066)
|
102,620
|
|
|
110,101
|
|
||
Total assets
(a)
|
$
|
2,476,986
|
|
|
$
|
2,415,689
|
|
Liabilities
|
|
|
|
||||
Deposits (included
$7,448
and $6,624 at fair value)
|
$
|
1,282,705
|
|
|
$
|
1,287,765
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements (included
$4,908
and $5,426 at fair value)
|
217,442
|
|
|
181,163
|
|
||
Commercial paper
|
60,825
|
|
|
57,848
|
|
||
Other borrowed funds (included
$13,624
and $13,306 at fair value)
|
31,951
|
|
|
27,994
|
|
||
Trading liabilities
|
140,609
|
|
|
137,744
|
|
||
Accounts payable and other liabilities (included
$18
and $25 at fair value)
|
202,499
|
|
|
194,491
|
|
||
Beneficial interests issued by consolidated variable interest entities (included
$2,025
and $1,996 at fair value)
|
46,788
|
|
|
49,617
|
|
||
Long-term debt (included
$30,144
and $28,878 at fair value)
|
274,512
|
|
|
267,889
|
|
||
Total liabilities
(a)
|
2,257,331
|
|
|
2,204,511
|
|
||
Commitments and contingencies (see Notes 21 and 23 of this Form 10-Q)
|
|
|
|
||||
Stockholders’ equity
|
|
|
|
||||
Preferred stock ($1 par value; authorized 200,000,000 shares; issued
1,508,250
and 1,115,750 shares)
|
15,083
|
|
|
11,158
|
|
||
Common stock ($1 par value; authorized 9,000,000,000 shares; issued
4,104,933,895
shares)
|
4,105
|
|
|
4,105
|
|
||
Capital surplus
|
92,623
|
|
|
93,828
|
|
||
Retained earnings
|
119,318
|
|
|
115,756
|
|
||
Accumulated other comprehensive income/(loss)
|
2,276
|
|
|
1,199
|
|
||
Shares held in RSU Trust, at cost (
472,955
and 476,642 shares)
|
(21
|
)
|
|
(21
|
)
|
||
Treasury stock, at cost (
320,221,124
and 348,825,583 shares)
|
(13,729
|
)
|
|
(14,847
|
)
|
||
Total stockholders’ equity
|
219,655
|
|
|
211,178
|
|
||
Total liabilities and stockholders’ equity
|
$
|
2,476,986
|
|
|
$
|
2,415,689
|
|
(a)
|
The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at
March 31, 2014
, and
December 31, 2013
. The difference between total VIE assets and liabilities represents the Firm’s interests in those entities, which were eliminated in consolidation.
|
(in millions)
|
Mar 31, 2014
|
|
Dec 31, 2013
|
||||
Assets
|
|
|
|
||||
Trading assets
|
$
|
6,220
|
|
|
$
|
6,366
|
|
Loans
|
64,135
|
|
|
70,072
|
|
||
All other assets
|
1,766
|
|
|
2,168
|
|
||
Total assets
|
$
|
72,121
|
|
|
$
|
78,606
|
|
Liabilities
|
|
|
|
||||
Beneficial interests issued by consolidated variable interest entities
|
$
|
46,788
|
|
|
$
|
49,617
|
|
All other liabilities
|
1,019
|
|
|
1,061
|
|
||
Total liabilities
|
$
|
47,807
|
|
|
$
|
50,678
|
|
|
|
Three months ended March 31,
|
||||||
(in millions, except per share data)
|
|
2014
|
|
2013
|
||||
Preferred stock
|
|
|
|
|
||||
Balance at January 1
|
|
$
|
11,158
|
|
|
$
|
9,058
|
|
Issuance of preferred stock
|
|
3,925
|
|
|
900
|
|
||
Balance at March 31
|
|
15,083
|
|
|
9,958
|
|
||
Common stock
|
|
|
|
|
||||
Balance at January 1 and March 31
|
|
4,105
|
|
|
4,105
|
|
||
Capital surplus
|
|
|
|
|
||||
Balance at January 1
|
|
93,828
|
|
|
94,604
|
|
||
Shares issued and commitments to issue common stock for employee stock-based compensation awards, and related tax effects
|
|
(1,179
|
)
|
|
(1,421
|
)
|
||
Other
|
|
(26
|
)
|
|
(22
|
)
|
||
Balance at March 31
|
|
92,623
|
|
|
93,161
|
|
||
Retained earnings
|
|
|
|
|
||||
Balance at January 1
|
|
115,756
|
|
|
104,223
|
|
||
Net income
|
|
5,274
|
|
|
6,529
|
|
||
Dividends declared:
|
|
|
|
|
||||
Preferred stock
|
|
(227
|
)
|
|
(175
|
)
|
||
Common stock (
$0.38
and $0.30 per share)
|
|
(1,485
|
)
|
|
(1,175
|
)
|
||
Balance at March 31
|
|
119,318
|
|
|
109,402
|
|
||
Accumulated other comprehensive income
|
|
|
|
|
||||
Balance at January 1
|
|
1,199
|
|
|
4,102
|
|
||
Other comprehensive income/(loss)
|
|
1,077
|
|
|
(611
|
)
|
||
Balance at March 31
|
|
2,276
|
|
|
3,491
|
|
||
Shares held in RSU Trust, at cost
|
|
|
|
|
||||
Balance at January 1 and March 31
|
|
(21
|
)
|
|
(21
|
)
|
||
Treasury stock, at cost
|
|
|
|
|
||||
Balance at January 1
|
|
(14,847
|
)
|
|
(12,002
|
)
|
||
Purchase of treasury stock
|
|
(386
|
)
|
|
(2,578
|
)
|
||
Reissuance from treasury stock
|
|
1,504
|
|
|
1,570
|
|
||
Balance at March 31
|
|
(13,729
|
)
|
|
(13,010
|
)
|
||
Total stockholders
’
equity
|
|
$
|
219,655
|
|
|
$
|
207,086
|
|
|
Three months ended March 31,
|
||||||
(in millions)
|
2014
|
|
2013
|
||||
Operating activities
|
|
|
|
||||
Net income
|
$
|
5,274
|
|
|
$
|
6,529
|
|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
|
|
|
||||
Provision for credit losses
|
850
|
|
|
617
|
|
||
Depreciation and amortization
|
1,077
|
|
|
822
|
|
||
Amortization of intangibles
|
131
|
|
|
152
|
|
||
Deferred tax expense
|
2,796
|
|
|
1,821
|
|
||
Investment securities gains
|
(30
|
)
|
|
(509
|
)
|
||
Stock-based compensation
|
618
|
|
|
641
|
|
||
Originations and purchases of loans held-for-sale
|
(12,926
|
)
|
|
(16,495
|
)
|
||
Proceeds from sales, securitizations and paydowns of loans held-for-sale
|
16,898
|
|
|
16,963
|
|
||
Net change in:
|
|
|
|
||||
Trading assets
|
4,010
|
|
|
28,255
|
|
||
Securities borrowed
|
(10,559
|
)
|
|
4,985
|
|
||
Accrued interest and accounts receivable
|
(7,599
|
)
|
|
(12,687
|
)
|
||
Other assets
|
11,652
|
|
|
(1,955
|
)
|
||
Trading liabilities
|
(1,951
|
)
|
|
(6,567
|
)
|
||
Accounts payable and other liabilities
|
2,273
|
|
|
(2,104
|
)
|
||
Other operating adjustments
|
2,153
|
|
|
(504
|
)
|
||
Net cash provided by operating activities
|
14,667
|
|
|
19,964
|
|
||
Investing activities
|
|
|
|
||||
Net change in:
|
|
|
|
||||
Deposits with banks
|
(56,480
|
)
|
|
(135,936
|
)
|
||
Federal funds sold and securities purchased under resale agreements
|
(17,092
|
)
|
|
77,882
|
|
||
Held-to-maturity securities:
|
|
|
|
||||
Proceeds from paydowns and maturities
|
639
|
|
|
—
|
|
||
Purchases
|
(4,649
|
)
|
|
—
|
|
||
Available-for-sale securities:
|
|
|
|
||||
Proceeds from paydowns and maturities
|
22,485
|
|
|
31,175
|
|
||
Proceeds from sales
|
10,906
|
|
|
20,073
|
|
||
Purchases
|
(24,775
|
)
|
|
(50,980
|
)
|
||
Proceeds from sales and securitizations of loans held-for-investment
|
4,396
|
|
|
2,915
|
|
||
Other changes in loans, net
|
(3,260
|
)
|
|
344
|
|
||
Net cash used in business acquisitions or dispositions
|
—
|
|
|
(37
|
)
|
||
All other investing activities, net
|
(580
|
)
|
|
(891
|
)
|
||
Net cash used in investing activities
|
(68,410
|
)
|
|
(55,455
|
)
|
||
Financing activities
|
|
|
|
||||
Net change in:
|
|
|
|
||||
Deposits
|
(5,320
|
)
|
|
2,876
|
|
||
Federal funds purchased and securities loaned or sold under repurchase agreements
|
36,263
|
|
|
8,146
|
|
||
Commercial paper and other borrowed funds
|
6,486
|
|
|
3,333
|
|
||
Beneficial interests issued by consolidated variable interest entities
|
(3,246
|
)
|
|
(2,526
|
)
|
||
Proceeds from long-term borrowings and trust preferred securities
|
22,064
|
|
|
36,698
|
|
||
Payments of long-term borrowings and trust preferred securities
|
(17,000
|
)
|
|
(16,467
|
)
|
||
Excess tax benefits related to stock-based compensation
|
339
|
|
|
69
|
|
||
Proceeds from issuance of preferred stock
|
3,895
|
|
|
878
|
|
||
Treasury stock purchased
|
(386
|
)
|
|
(2,578
|
)
|
||
Dividends paid
|
(1,554
|
)
|
|
(1,242
|
)
|
||
All other financing activities, net
|
(1,223
|
)
|
|
(1,007
|
)
|
||
Net cash provided by financing activities
|
40,318
|
|
|
28,180
|
|
||
Effect of exchange rate changes on cash and due from banks
|
(25
|
)
|
|
(888
|
)
|
||
Net decrease in cash and due from banks
|
(13,450
|
)
|
|
(8,199
|
)
|
||
Cash and due from banks at the beginning of the period
|
39,771
|
|
|
53,723
|
|
||
Cash and due from banks at the end of the period
|
$
|
26,321
|
|
|
$
|
45,524
|
|
Cash interest paid
|
$
|
1,092
|
|
|
$
|
2,757
|
|
Cash income taxes paid, net
|
270
|
|
|
349
|
|
See Glossary of Terms on pages 169–174 of this Form 10-Q for definitions of terms used throughout the Notes to Consolidated Financial Statements.
|
Assets and liabilities measured at fair value on a recurring basis
|
|
|
|
|
|
|
|||||||||||
|
Fair value hierarchy
|
|
Netting adjustments
|
|
|||||||||||||
March 31, 2014 (in millions)
|
Level 1
|
Level 2
|
|
Level 3
|
|
Total fair value
|
|||||||||||
Federal funds sold and securities purchased under resale agreements
|
$
|
—
|
|
$
|
25,727
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
25,727
|
|
Securities borrowed
|
—
|
|
2,392
|
|
|
—
|
|
|
—
|
|
2,392
|
|
|||||
Trading assets:
|
|
|
|
|
|
|
|
||||||||||
Debt instruments:
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||||
U.S. government agencies
(a)
|
5
|
|
23,149
|
|
|
1,150
|
|
|
—
|
|
24,304
|
|
|||||
Residential – nonagency
|
—
|
|
1,692
|
|
|
715
|
|
|
—
|
|
2,407
|
|
|||||
Commercial – nonagency
|
—
|
|
877
|
|
|
465
|
|
|
—
|
|
1,342
|
|
|||||
Total mortgage-backed securities
|
5
|
|
25,718
|
|
|
2,330
|
|
|
—
|
|
28,053
|
|
|||||
U.S. Treasury and government agencies
(a)
|
19,799
|
|
10,910
|
|
|
—
|
|
|
—
|
|
30,709
|
|
|||||
Obligations of U.S. states and municipalities
|
—
|
|
5,888
|
|
|
1,219
|
|
|
—
|
|
7,107
|
|
|||||
Certificates of deposit, bankers’ acceptances and commercial paper
|
—
|
|
2,472
|
|
|
—
|
|
|
—
|
|
2,472
|
|
|||||
Non-U.S. government debt securities
|
32,052
|
|
24,126
|
|
|
52
|
|
|
—
|
|
56,230
|
|
|||||
Corporate debt securities
|
—
|
|
27,162
|
|
|
4,873
|
|
|
—
|
|
32,035
|
|
|||||
Loans
(b)
|
215
|
|
16,582
|
|
|
12,521
|
|
|
—
|
|
29,318
|
|
|||||
Asset-backed securities
|
—
|
|
3,148
|
|
|
1,156
|
|
|
—
|
|
4,304
|
|
|||||
Total debt instruments
|
52,071
|
|
116,006
|
|
|
22,151
|
|
|
—
|
|
190,228
|
|
|||||
Equity securities
|
107,523
|
|
1,046
|
|
|
885
|
|
|
—
|
|
109,454
|
|
|||||
Physical commodities
(c)
|
4,395
|
|
4,012
|
|
|
3
|
|
|
—
|
|
8,410
|
|
|||||
Other
|
—
|
|
6,556
|
|
|
1,284
|
|
|
—
|
|
7,840
|
|
|||||
Total debt and equity instruments
(d)
|
163,989
|
|
127,620
|
|
|
24,323
|
|
|
—
|
|
315,932
|
|
|||||
Derivative receivables:
|
|
|
|
|
|
|
|
||||||||||
Interest rate
|
287
|
|
760,930
|
|
|
5,344
|
|
|
(738,024
|
)
|
28,537
|
|
|||||
Credit
|
—
|
|
78,047
|
|
|
3,367
|
|
|
(80,203
|
)
|
1,211
|
|
|||||
Foreign exchange
|
405
|
|
120,799
|
|
|
1,765
|
|
|
(109,179
|
)
|
13,790
|
|
|||||
Equity
|
—
|
|
41,464
|
|
|
6,316
|
|
|
(40,497
|
)
|
7,283
|
|
|||||
Commodity
|
207
|
|
37,903
|
|
|
633
|
|
|
(30,292
|
)
|
8,451
|
|
|||||
Total derivative receivables
(e)
|
899
|
|
1,039,143
|
|
|
17,425
|
|
|
(998,195
|
)
|
59,272
|
|
|||||
Total trading assets
|
164,888
|
|
1,166,763
|
|
|
41,748
|
|
|
(998,195
|
)
|
375,204
|
|
|||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||||
U.S. government agencies
(a)
|
—
|
|
62,257
|
|
|
—
|
|
|
—
|
|
62,257
|
|
|||||
Residential – nonagency
|
—
|
|
58,055
|
|
|
663
|
|
|
—
|
|
58,718
|
|
|||||
Commercial – nonagency
|
—
|
|
16,831
|
|
|
527
|
|
|
—
|
|
17,358
|
|
|||||
Total mortgage-backed securities
|
—
|
|
137,143
|
|
|
1,190
|
|
|
—
|
|
138,333
|
|
|||||
U.S. Treasury and government agencies
(a)
|
19,419
|
|
292
|
|
|
—
|
|
|
—
|
|
19,711
|
|
|||||
Obligations of U.S. states and municipalities
|
—
|
|
26,219
|
|
|
—
|
|
|
—
|
|
26,219
|
|
|||||
Certificates of deposit
|
—
|
|
1,511
|
|
|
—
|
|
|
—
|
|
1,511
|
|
|||||
Non-U.S. government debt securities
|
24,877
|
|
30,524
|
|
|
—
|
|
|
—
|
|
55,401
|
|
|||||
Corporate debt securities
|
—
|
|
20,814
|
|
|
—
|
|
|
—
|
|
20,814
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||||
Collateralized loan obligations
|
—
|
|
26,755
|
|
|
797
|
|
|
—
|
|
27,552
|
|
|||||
Other
|
—
|
|
11,654
|
|
|
330
|
|
|
—
|
|
11,984
|
|
|||||
Equity securities
|
3,054
|
|
—
|
|
|
—
|
|
|
—
|
|
3,054
|
|
|||||
Total available-for-sale securities
|
47,350
|
|
254,912
|
|
|
2,317
|
|
|
—
|
|
304,579
|
|
|||||
Loans
|
—
|
|
78
|
|
|
2,271
|
|
|
—
|
|
2,349
|
|
|||||
Mortgage servicing rights
|
—
|
|
—
|
|
|
8,552
|
|
|
—
|
|
8,552
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
||||||||||
Private equity investments
(f)
|
781
|
|
510
|
|
|
5,335
|
|
|
—
|
|
6,626
|
|
|||||
All other
|
4,245
|
|
291
|
|
|
2,984
|
|
|
—
|
|
7,520
|
|
|||||
Total other assets
|
5,026
|
|
801
|
|
|
8,319
|
|
|
—
|
|
14,146
|
|
|||||
Total assets measured at fair value on a recurring basis
|
$
|
217,264
|
|
$
|
1,450,673
|
|
(g)
|
$
|
63,207
|
|
(g)
|
$
|
(998,195
|
)
|
$
|
732,949
|
|
Deposits
|
$
|
—
|
|
$
|
5,062
|
|
|
$
|
2,386
|
|
|
$
|
—
|
|
$
|
7,448
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
—
|
|
4,908
|
|
|
—
|
|
|
—
|
|
4,908
|
|
|||||
Other borrowed funds
|
—
|
|
12,089
|
|
|
1,535
|
|
|
—
|
|
13,624
|
|
|||||
Trading liabilities:
|
|
|
|
|
|
|
|
|
|||||||||
Debt and equity instruments
(d)
|
71,449
|
|
19,921
|
|
|
101
|
|
|
—
|
|
91,471
|
|
|||||
Derivative payables:
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate
|
183
|
|
731,370
|
|
|
3,254
|
|
|
(719,499
|
)
|
15,308
|
|
|||||
Credit
|
—
|
|
77,768
|
|
|
3,123
|
|
|
(79,054
|
)
|
1,837
|
|
|||||
Foreign exchange
|
442
|
|
124,762
|
|
|
3,047
|
|
|
(114,823
|
)
|
13,428
|
|
|||||
Equity
|
—
|
|
41,881
|
|
|
7,376
|
|
|
(40,923
|
)
|
8,334
|
|
|||||
Commodity
|
213
|
|
40,283
|
|
|
691
|
|
|
(30,956
|
)
|
10,231
|
|
|||||
Total derivative payables
(e)
|
838
|
|
1,016,064
|
|
|
17,491
|
|
|
(985,255
|
)
|
49,138
|
|
|||||
Total trading liabilities
|
72,287
|
|
1,035,985
|
|
|
17,592
|
|
|
(985,255
|
)
|
140,609
|
|
|||||
Accounts payable and other liabilities
|
—
|
|
—
|
|
|
18
|
|
|
—
|
|
18
|
|
|||||
Beneficial interests issued by consolidated VIEs
|
—
|
|
865
|
|
|
1,160
|
|
|
—
|
|
2,025
|
|
|||||
Long-term debt
|
—
|
|
18,941
|
|
|
11,203
|
|
|
—
|
|
30,144
|
|
|||||
Total liabilities measured at fair value on a recurring basis
|
$
|
72,287
|
|
$
|
1,077,850
|
|
|
$
|
33,894
|
|
|
$
|
(985,255
|
)
|
$
|
198,776
|
|
|
Fair value hierarchy
|
|
Netting adjustments
|
|
|||||||||||||
December 31, 2013 (in millions)
|
Level 1
|
Level 2
|
|
Level 3
|
|
Total fair value
|
|||||||||||
Federal funds sold and securities purchased under resale agreements
|
$
|
—
|
|
$
|
25,135
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
25,135
|
|
Securities borrowed
|
—
|
|
3,739
|
|
|
—
|
|
|
—
|
|
3,739
|
|
|||||
Trading assets:
|
|
|
|
|
|
|
|
||||||||||
Debt instruments:
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||||
U.S. government agencies
(a)
|
4
|
|
25,582
|
|
|
1,005
|
|
|
—
|
|
26,591
|
|
|||||
Residential – nonagency
|
—
|
|
1,749
|
|
|
726
|
|
|
—
|
|
2,475
|
|
|||||
Commercial – nonagency
|
—
|
|
871
|
|
|
432
|
|
|
—
|
|
1,303
|
|
|||||
Total mortgage-backed securities
|
4
|
|
28,202
|
|
|
2,163
|
|
|
—
|
|
30,369
|
|
|||||
U.S. Treasury and government agencies
(a)
|
14,933
|
|
10,547
|
|
|
—
|
|
|
—
|
|
25,480
|
|
|||||
Obligations of U.S. states and municipalities
|
—
|
|
6,538
|
|
|
1,382
|
|
|
—
|
|
7,920
|
|
|||||
Certificates of deposit, bankers’ acceptances and commercial paper
|
—
|
|
3,071
|
|
|
—
|
|
|
—
|
|
3,071
|
|
|||||
Non-U.S. government debt securities
|
25,762
|
|
22,379
|
|
|
143
|
|
|
—
|
|
48,284
|
|
|||||
Corporate debt securities
|
—
|
|
24,802
|
|
|
5,920
|
|
|
—
|
|
30,722
|
|
|||||
Loans
(b)
|
—
|
|
17,331
|
|
|
13,455
|
|
|
—
|
|
30,786
|
|
|||||
Asset-backed securities
|
—
|
|
3,647
|
|
|
1,272
|
|
|
—
|
|
4,919
|
|
|||||
Total debt instruments
|
40,699
|
|
116,517
|
|
|
24,335
|
|
|
—
|
|
181,551
|
|
|||||
Equity securities
|
107,667
|
|
954
|
|
|
885
|
|
|
—
|
|
109,506
|
|
|||||
Physical commodities
(c)
|
4,968
|
|
5,217
|
|
|
4
|
|
|
—
|
|
10,189
|
|
|||||
Other
|
—
|
|
5,659
|
|
|
2,000
|
|
|
—
|
|
7,659
|
|
|||||
Total debt and equity instruments
(d)
|
153,334
|
|
128,347
|
|
|
27,224
|
|
|
—
|
|
308,905
|
|
|||||
Derivative receivables:
|
|
|
|
|
|
|
|
||||||||||
Interest rate
|
419
|
|
848,862
|
|
|
5,398
|
|
|
(828,897
|
)
|
25,782
|
|
|||||
Credit
|
—
|
|
79,754
|
|
|
3,766
|
|
|
(82,004
|
)
|
1,516
|
|
|||||
Foreign exchange
|
434
|
|
151,521
|
|
|
1,644
|
|
|
(136,809
|
)
|
16,790
|
|
|||||
Equity
|
—
|
|
45,892
|
|
|
7,039
|
|
|
(40,704
|
)
|
12,227
|
|
|||||
Commodity
|
320
|
|
34,696
|
|
|
722
|
|
|
(26,294
|
)
|
9,444
|
|
|||||
Total derivative receivables
(e)
|
1,173
|
|
1,160,725
|
|
|
18,569
|
|
|
(1,114,708
|
)
|
65,759
|
|
|||||
Total trading assets
|
154,507
|
|
1,289,072
|
|
|
45,793
|
|
|
(1,114,708
|
)
|
374,664
|
|
|||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||||
U.S. government agencies
(a)
|
—
|
|
77,815
|
|
|
—
|
|
|
—
|
|
77,815
|
|
|||||
Residential – nonagency
|
—
|
|
61,760
|
|
|
709
|
|
|
—
|
|
62,469
|
|
|||||
Commercial – nonagency
|
—
|
|
15,900
|
|
|
525
|
|
|
—
|
|
16,425
|
|
|||||
Total mortgage-backed securities
|
—
|
|
155,475
|
|
|
1,234
|
|
|
—
|
|
156,709
|
|
|||||
U.S. Treasury and government agencies
(a)
|
21,091
|
|
298
|
|
|
—
|
|
|
—
|
|
21,389
|
|
|||||
Obligations of U.S. states and municipalities
|
—
|
|
29,461
|
|
|
—
|
|
|
—
|
|
29,461
|
|
|||||
Certificates of deposit
|
—
|
|
1,041
|
|
|
—
|
|
|
—
|
|
1,041
|
|
|||||
Non-U.S. government debt securities
|
25,648
|
|
30,600
|
|
|
—
|
|
|
—
|
|
56,248
|
|
|||||
Corporate debt securities
|
—
|
|
21,512
|
|
|
—
|
|
|
—
|
|
21,512
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||||
Collateralized loan obligations
|
—
|
|
27,409
|
|
|
821
|
|
|
—
|
|
28,230
|
|
|||||
Other
|
—
|
|
11,978
|
|
|
267
|
|
|
—
|
|
12,245
|
|
|||||
Equity securities
|
3,142
|
|
—
|
|
|
—
|
|
|
—
|
|
3,142
|
|
|||||
Total available-for-sale securities
|
49,881
|
|
277,774
|
|
|
2,322
|
|
|
—
|
|
329,977
|
|
|||||
Loans
|
—
|
|
80
|
|
|
1,931
|
|
|
—
|
|
2,011
|
|
|||||
Mortgage servicing rights
|
—
|
|
—
|
|
|
9,614
|
|
|
—
|
|
9,614
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
||||||||||
Private equity investments
(f)
|
606
|
|
429
|
|
|
6,474
|
|
|
—
|
|
7,509
|
|
|||||
All other
|
4,213
|
|
289
|
|
|
3,176
|
|
|
—
|
|
7,678
|
|
|||||
Total other assets
|
4,819
|
|
718
|
|
|
9,650
|
|
|
—
|
|
15,187
|
|
|||||
Total assets measured at fair value on a recurring basis
|
$
|
209,207
|
|
$
|
1,596,518
|
|
(g)
|
$
|
69,310
|
|
(g)
|
$
|
(1,114,708
|
)
|
$
|
760,327
|
|
Deposits
|
$
|
—
|
|
$
|
4,369
|
|
|
$
|
2,255
|
|
|
$
|
—
|
|
$
|
6,624
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
—
|
|
5,426
|
|
|
—
|
|
|
—
|
|
5,426
|
|
|||||
Other borrowed funds
|
—
|
|
11,232
|
|
|
2,074
|
|
|
—
|
|
13,306
|
|
|||||
Trading liabilities:
|
|
|
|
|
|
|
|
||||||||||
Debt and equity instruments
(d)
|
61,262
|
|
19,055
|
|
|
113
|
|
|
—
|
|
80,430
|
|
|||||
Derivative payables:
|
|
|
|
|
|
|
|
||||||||||
Interest rate
|
321
|
|
822,014
|
|
|
3,019
|
|
|
(812,071
|
)
|
13,283
|
|
|||||
Credit
|
—
|
|
78,731
|
|
|
3,671
|
|
|
(80,121
|
)
|
2,281
|
|
|||||
Foreign exchange
|
443
|
|
156,838
|
|
|
2,844
|
|
|
(144,178
|
)
|
15,947
|
|
|||||
Equity
|
—
|
|
46,552
|
|
|
8,102
|
|
|
(39,935
|
)
|
14,719
|
|
|||||
Commodity
|
398
|
|
36,609
|
|
|
607
|
|
|
(26,530
|
)
|
11,084
|
|
|||||
Total derivative payables
(e)
|
1,162
|
|
1,140,744
|
|
|
18,243
|
|
|
(1,102,835
|
)
|
57,314
|
|
|||||
Total trading liabilities
|
62,424
|
|
1,159,799
|
|
|
18,356
|
|
|
(1,102,835
|
)
|
137,744
|
|
|||||
Accounts payable and other liabilities
|
—
|
|
—
|
|
|
25
|
|
|
—
|
|
25
|
|
|||||
Beneficial interests issued by consolidated VIEs
|
—
|
|
756
|
|
|
1,240
|
|
|
—
|
|
1,996
|
|
|||||
Long-term debt
|
—
|
|
18,870
|
|
|
10,008
|
|
|
—
|
|
28,878
|
|
|||||
Total liabilities measured at fair value on a recurring basis
|
$
|
62,424
|
|
$
|
1,200,452
|
|
|
$
|
33,958
|
|
|
$
|
(1,102,835
|
)
|
$
|
193,999
|
|
(a)
|
At
March 31, 2014
, and December 31, 2013, included total U.S. government-sponsored enterprise obligations of
$77.1 billion
and
$91.5 billion
, respectively, which were predominantly mortgage-related.
|
(b)
|
At
March 31, 2014
, and December 31, 2013, included within trading loans were
$14.7 billion
and
$14.8 billion
, respectively, of residential first-lien mortgages, and
$1.8 billion
and
$2.1 billion
, respectively, of commercial first-lien mortgages. Residential mortgage loans include conforming mortgage loans originated with the intent to sell to U.S. government agencies of
$6.1 billion
and
$6.0 billion
, respectively, and reverse mortgages of
$3.6 billion
and
$3.6 billion
, respectively.
|
(c)
|
Physical commodities inventories are generally accounted for at the lower of cost or market. “Market” is a term defined in U.S. GAAP as not exceeding fair value less costs to sell (“transaction costs”). Transaction costs for the Firm’s physical commodities inventories are either not applicable or immaterial to the value of the inventory. Therefore, market
|
(d)
|
Balances reflect the reduction of securities owned (long positions) by the amount of securities sold but not yet purchased (short positions) when the long and short positions have identical Committee on Uniform Security Identification Procedures numbers (“CUSIPs”).
|
(e)
|
As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. For purposes of the tables above, the Firm does not reduce derivative receivables and derivative payables balances for this netting adjustment, either within or across the levels of the fair value hierarchy, as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset or liability. Therefore, the balances reported in the fair value hierarchy table are gross of any counterparty netting adjustments. However, if the Firm were to net such balances within level 3, the reduction in the level 3 derivative receivables and payables balances would be
$6.5 billion
and
$7.6 billion
at
March 31, 2014
, and December 31, 2013, respectively; this is exclusive of the netting benefit associated with cash collateral, which would further reduce the level 3 balances.
|
(f)
|
Private equity instruments represent investments within the Corporate/Private Equity line of business. The cost basis of the private equity investment portfolio totaled
$7.0 billion
and
$8.0 billion
at
March 31, 2014
, and December 31, 2013, respectively.
|
(g)
|
Includes investments in hedge funds, private equity funds, real estate and other funds that do not have readily determinable fair values. The Firm uses net asset value per share when measuring the fair value of these investments. At
March 31, 2014
, and December 31, 2013, the fair values of these investments were
$3.3 billion
and
$3.2 billion
, respectively, of which
$1.2 billion
and
$899 million
, respectively, were classified in level 2, and
$2.1 billion
and
$2.3 billion
, respectively, in level 3.
|
(a)
|
The categories presented in the table have been aggregated based upon the product type, which may differ from their classification on the Consolidated Balance Sheets.
|
(b)
|
The unobservable inputs and associated input ranges for approximately
$638 million
of credit derivative receivables and
$570 million
of credit derivative payables with underlying mortgage risk have been included in the inputs and ranges provided for commercial mortgage-backed securities and loans.
|
(c)
|
The unobservable inputs and associated input ranges for approximately
$961 million
of credit derivative receivables and
$817 million
of credit derivative payables with underlying asset-backed securities risk have been included in the inputs and ranges provided for corporate debt securities, obligations of U.S. states and municipalities and other.
|
(d)
|
As of
March 31, 2014
,
$165 million
of private equity fund exposure was carried at a discount to net asset value per share.
|
(e)
|
Long-term debt, other borrowed funds and deposits include structured notes issued by the Firm that are predominantly financial instruments containing embedded derivatives. The estimation of the fair value of structured notes is predominantly based on the derivative features embedded within the instruments. The significant unobservable inputs are broadly consistent with those presented for derivative receivables.
|
(f)
|
The range has not been disclosed due to the wide range of possible values given the diverse nature of the underlying investments.
|
|
Fair value measurements using significant unobservable inputs
|
|
|
||||||||||||||||||||||||||||
Three months ended March 31, 2014
(in millions)
|
Fair value at January 1, 2014
|
Total realized/unrealized gains/(losses)
|
|
|
|
|
Transfers into and/or out of level 3
(h)
|
Fair value at
March 31, 2014
|
Change in unrealized gains/(losses) related to financial instruments held at March 31, 2014
|
||||||||||||||||||||||
Purchases
(g)
|
Sales
|
|
Settlements
|
||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Debt instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. government agencies
|
$
|
1,005
|
|
$
|
3
|
|
|
$
|
331
|
|
$
|
(162
|
)
|
|
$
|
(27
|
)
|
$
|
—
|
|
|
$
|
1,150
|
|
|
$
|
5
|
|
|
||
Residential – nonagency
|
726
|
|
24
|
|
|
192
|
|
(200
|
)
|
|
(12
|
)
|
(15
|
)
|
|
715
|
|
|
14
|
|
|
||||||||||
Commercial – nonagency
|
432
|
|
20
|
|
|
321
|
|
(294
|
)
|
|
(14
|
)
|
—
|
|
|
465
|
|
|
10
|
|
|
||||||||||
Total mortgage-backed securities
|
2,163
|
|
47
|
|
|
844
|
|
(656
|
)
|
|
(53
|
)
|
(15
|
)
|
|
2,330
|
|
|
29
|
|
|
||||||||||
Obligations of U.S. states and municipalities
|
1,382
|
|
22
|
|
|
—
|
|
(185
|
)
|
|
—
|
|
|
|
|
1,219
|
|
|
9
|
|
|
||||||||||
Non-U.S. government debt securities
|
143
|
|
16
|
|
|
410
|
|
(516
|
)
|
|
(1
|
)
|
—
|
|
|
52
|
|
|
22
|
|
|
||||||||||
Corporate debt securities
|
5,920
|
|
238
|
|
|
1,197
|
|
(1,352
|
)
|
|
(841
|
)
|
(289
|
)
|
|
4,873
|
|
|
213
|
|
|
||||||||||
Loans
|
13,455
|
|
319
|
|
|
2,158
|
|
(1,794
|
)
|
|
(1,546
|
)
|
(71
|
)
|
|
12,521
|
|
|
295
|
|
|
||||||||||
Asset-backed securities
|
1,272
|
|
24
|
|
|
550
|
|
(556
|
)
|
|
(20
|
)
|
(114
|
)
|
|
1,156
|
|
|
19
|
|
|
||||||||||
Total debt instruments
|
24,335
|
|
666
|
|
|
5,159
|
|
(5,059
|
)
|
|
(2,461
|
)
|
(489
|
)
|
|
22,151
|
|
|
587
|
|
|
||||||||||
Equity securities
|
885
|
|
81
|
|
|
36
|
|
(19
|
)
|
|
(9
|
)
|
(89
|
)
|
|
885
|
|
|
70
|
|
|
||||||||||
Physical commodities
|
4
|
|
—
|
|
|
—
|
|
—
|
|
|
(1
|
)
|
—
|
|
|
3
|
|
|
—
|
|
|
||||||||||
Other
|
2,000
|
|
(97
|
)
|
|
54
|
|
(51
|
)
|
|
(28
|
)
|
(594
|
)
|
|
1,284
|
|
|
(19
|
)
|
|
||||||||||
Total trading assets – debt and equity instruments
|
27,224
|
|
650
|
|
(c)
|
5,249
|
|
(5,129
|
)
|
|
(2,499
|
)
|
(1,172
|
)
|
|
24,323
|
|
|
638
|
|
(c)
|
||||||||||
Net derivative receivables:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest rate
|
2,379
|
|
24
|
|
|
48
|
|
(43
|
)
|
|
(338
|
)
|
20
|
|
|
2,090
|
|
|
(342
|
)
|
|
||||||||||
Credit
|
95
|
|
(115
|
)
|
|
58
|
|
—
|
|
|
206
|
|
—
|
|
|
244
|
|
|
(97
|
)
|
|
||||||||||
Foreign exchange
|
(1,200
|
)
|
(199
|
)
|
|
61
|
|
(16
|
)
|
|
49
|
|
23
|
|
|
(1,282
|
)
|
|
(349
|
)
|
|
||||||||||
Equity
|
(1,063
|
)
|
71
|
|
|
801
|
|
(1,033
|
)
|
|
125
|
|
39
|
|
|
(1,060
|
)
|
|
582
|
|
|
||||||||||
Commodity
|
115
|
|
(154
|
)
|
|
1
|
|
—
|
|
|
(42
|
)
|
22
|
|
|
(58
|
)
|
|
(60
|
)
|
|
||||||||||
Total net derivative receivables
|
326
|
|
(373
|
)
|
(c)
|
969
|
|
(1,092
|
)
|
|
—
|
|
104
|
|
|
(66
|
)
|
|
(266
|
)
|
(c)
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed securities
|
1,088
|
|
(2
|
)
|
|
—
|
|
(2
|
)
|
|
(20
|
)
|
63
|
|
|
1,127
|
|
|
(2
|
)
|
|
||||||||||
Other
|
1,234
|
|
(3
|
)
|
|
—
|
|
—
|
|
|
(41
|
)
|
—
|
|
|
1,190
|
|
|
(3
|
)
|
|
||||||||||
Total available-for-sale securities
|
2,322
|
|
(5
|
)
|
(d)
|
—
|
|
(2
|
)
|
|
(61
|
)
|
63
|
|
|
2,317
|
|
|
(5
|
)
|
(d)
|
||||||||||
Loans
|
1,931
|
|
32
|
|
(c)
|
684
|
|
(142
|
)
|
|
(234
|
)
|
—
|
|
|
2,271
|
|
|
28
|
|
(c)
|
||||||||||
Mortgage servicing rights
|
9,614
|
|
(822
|
)
|
(e)
|
195
|
|
(188
|
)
|
|
(247
|
)
|
—
|
|
|
8,552
|
|
|
(822
|
)
|
(e)
|
||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Private equity investments
|
6,474
|
|
96
|
|
(c)
|
87
|
|
(1,018
|
)
|
|
(304
|
)
|
—
|
|
|
5,335
|
|
|
(3
|
)
|
(c)
|
||||||||||
All other
|
3,176
|
|
(73
|
)
|
(f)
|
73
|
|
(37
|
)
|
|
(155
|
)
|
—
|
|
|
2,984
|
|
|
(83
|
)
|
(f)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Fair value measurements using significant unobservable inputs
|
|
|
||||||||||||||||||||||||||||
Three months ended March 31, 2014
(in millions)
|
Fair value at January 1, 2014
|
Total realized/unrealized (gains)/losses
|
|
|
|
|
Transfers into and/or out of level 3
(h)
|
Fair value at
March 31, 2014
|
Change in unrealized (gains)/losses related to financial instruments held at March 31, 2014
|
||||||||||||||||||||||
Purchases
(g)
|
Sales
|
Issuances
|
Settlements
|
||||||||||||||||||||||||||||
Liabilities:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Deposits
|
$
|
2,255
|
|
$
|
37
|
|
(c)
|
$
|
—
|
|
$
|
—
|
|
$
|
290
|
|
$
|
(42
|
)
|
$
|
(154
|
)
|
|
$
|
2,386
|
|
|
$
|
28
|
|
(c)
|
Other borrowed funds
|
2,074
|
|
39
|
|
(c)
|
—
|
|
—
|
|
1,333
|
|
(2,107
|
)
|
196
|
|
|
1,535
|
|
|
113
|
|
(c)
|
|||||||||
Trading liabilities – debt and equity instruments
|
113
|
|
—
|
|
|
(216
|
)
|
208
|
|
—
|
|
(4
|
)
|
—
|
|
|
101
|
|
|
—
|
|
|
|||||||||
Accounts payable and other liabilities
|
25
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(7
|
)
|
—
|
|
|
18
|
|
|
—
|
|
|
|||||||||
Beneficial interests issued by consolidated VIEs
|
1,240
|
|
47
|
|
(c)
|
—
|
|
—
|
|
78
|
|
(205
|
)
|
—
|
|
|
1,160
|
|
|
50
|
|
(c)
|
|||||||||
Long-term debt
|
10,008
|
|
102
|
|
(c)
|
—
|
|
—
|
|
1,832
|
|
(1,010
|
)
|
271
|
|
|
11,203
|
|
|
129
|
|
(c)
|
|
Fair value measurements using significant unobservable inputs
|
|
|
|||||||||||||||||||||||||||||
Three months ended March 31, 2013
(in millions)
|
Fair value at January 1, 2013
|
Total realized/unrealized gains/(losses)
|
|
|
|
|
|
Transfers into and/or out of level 3
(h)
|
Fair value at
March 31, 2013 |
Change in unrealized gains/(losses) related to financial instruments held at March 31, 2013
|
||||||||||||||||||||||
Purchases
(g)
|
|
Sales
|
|
Settlements
|
||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Debt instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. government agencies
|
$
|
498
|
|
$
|
34
|
|
|
$
|
391
|
|
|
$
|
(79
|
)
|
|
$
|
(25
|
)
|
$
|
—
|
|
|
$
|
819
|
|
|
$
|
42
|
|
|
||
Residential – nonagency
|
663
|
|
109
|
|
|
299
|
|
|
(404
|
)
|
|
(29
|
)
|
(5
|
)
|
|
633
|
|
|
41
|
|
|
||||||||||
Commercial – nonagency
|
1,207
|
|
(86
|
)
|
|
137
|
|
|
(65
|
)
|
|
(42
|
)
|
—
|
|
|
1,151
|
|
|
(91
|
)
|
|
||||||||||
Total mortgage-backed securities
|
2,368
|
|
57
|
|
|
827
|
|
|
(548
|
)
|
|
(96
|
)
|
(5
|
)
|
|
2,603
|
|
|
(8
|
)
|
|
||||||||||
Obligations of U.S. states and municipalities
|
1,436
|
|
41
|
|
|
1
|
|
|
(46
|
)
|
|
—
|
|
—
|
|
|
1,432
|
|
|
36
|
|
|
||||||||||
Non-U.S. government debt securities
|
67
|
|
2
|
|
|
301
|
|
|
(285
|
)
|
|
—
|
|
—
|
|
|
85
|
|
|
4
|
|
|
||||||||||
Corporate debt securities
|
5,308
|
|
(83
|
)
|
|
2,927
|
|
|
(2,563
|
)
|
|
(625
|
)
|
(112
|
)
|
|
4,852
|
|
|
2
|
|
|
||||||||||
Loans
|
10,787
|
|
(172
|
)
|
|
1,626
|
|
|
(1,485
|
)
|
|
(703
|
)
|
(21
|
)
|
|
10,032
|
|
|
(192
|
)
|
|
||||||||||
Asset-backed securities
|
3,696
|
|
64
|
|
|
596
|
|
|
(977
|
)
|
|
(135
|
)
|
(1,665
|
)
|
|
1,579
|
|
|
48
|
|
|
||||||||||
Total debt instruments
|
23,662
|
|
(91
|
)
|
|
6,278
|
|
|
(5,904
|
)
|
|
(1,559
|
)
|
(1,803
|
)
|
|
20,583
|
|
|
(110
|
)
|
|
||||||||||
Equity securities
|
1,114
|
|
1
|
|
|
93
|
|
|
(91
|
)
|
|
(9
|
)
|
64
|
|
|
1,172
|
|
|
(23
|
)
|
|
||||||||||
Other
|
863
|
|
44
|
|
|
72
|
|
|
(2
|
)
|
|
(29
|
)
|
—
|
|
|
948
|
|
|
51
|
|
|
||||||||||
Total trading assets – debt and equity instruments
|
25,639
|
|
(46
|
)
|
(c)
|
6,443
|
|
|
(5,997
|
)
|
|
(1,597
|
)
|
(1,739
|
)
|
|
22,703
|
|
|
(82
|
)
|
(c)
|
||||||||||
Net derivative receivables:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest rate
|
3,322
|
|
306
|
|
|
69
|
|
|
(62
|
)
|
|
(858
|
)
|
14
|
|
|
2,791
|
|
|
143
|
|
|
||||||||||
Credit
|
1,873
|
|
(489
|
)
|
|
47
|
|
|
—
|
|
|
(113
|
)
|
(1
|
)
|
|
1,317
|
|
|
(476
|
)
|
|
||||||||||
Foreign exchange
|
(1,750
|
)
|
(116
|
)
|
|
(15
|
)
|
|
(3
|
)
|
|
376
|
|
(8
|
)
|
|
(1,516
|
)
|
|
(194
|
)
|
|
||||||||||
Equity
|
(1,806
|
)
|
862
|
|
(i)
|
71
|
|
(i)
|
(79
|
)
|
(i)
|
(222
|
)
|
174
|
|
|
(1,000
|
)
|
|
606
|
|
|
||||||||||
Commodity
|
254
|
|
358
|
|
|
11
|
|
|
(3
|
)
|
|
(442
|
)
|
4
|
|
|
182
|
|
|
136
|
|
|
||||||||||
Total net derivative receivables
|
1,893
|
|
921
|
|
(c)
|
183
|
|
|
(147
|
)
|
|
(1,259
|
)
|
183
|
|
|
1,774
|
|
|
215
|
|
(c)
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed securities
|
28,024
|
|
5
|
|
|
400
|
|
|
—
|
|
|
(39
|
)
|
(27,260
|
)
|
|
1,130
|
|
|
5
|
|
|
||||||||||
Other
|
892
|
|
(9
|
)
|
|
—
|
|
|
(13
|
)
|
|
(33
|
)
|
—
|
|
|
837
|
|
|
3
|
|
|
||||||||||
Total available-for-sale securities
|
28,916
|
|
(4
|
)
|
(d)
|
400
|
|
|
(13
|
)
|
|
(72
|
)
|
(27,260
|
)
|
|
1,967
|
|
|
8
|
|
(d)
|
||||||||||
Loans
|
2,282
|
|
(35
|
)
|
(c)
|
225
|
|
|
(49
|
)
|
|
(359
|
)
|
—
|
|
|
2,064
|
|
|
(40
|
)
|
(c)
|
||||||||||
Mortgage servicing rights
|
7,614
|
|
309
|
|
(e)
|
684
|
|
|
(399
|
)
|
|
(259
|
)
|
—
|
|
|
7,949
|
|
|
309
|
|
(e)
|
||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Private equity investments
|
7,181
|
|
(269
|
)
|
(c)
|
81
|
|
|
(96
|
)
|
|
(66
|
)
|
—
|
|
|
6,831
|
|
|
(399
|
)
|
(c)
|
||||||||||
All other
|
4,258
|
|
(26
|
)
|
(f)
|
52
|
|
|
(3
|
)
|
|
(296
|
)
|
—
|
|
|
3,985
|
|
|
(27
|
)
|
(f)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Fair value measurements using significant unobservable inputs
|
|
|
|||||||||||||||||||||||||||||
Three months ended March 31, 2013
(in millions)
|
Fair value at January 1, 2013
|
Total realized/unrealized (gains)/losses
|
|
|
|
|
|
Transfers into and/or out of level 3
(h)
|
Fair value at
March 31, 2013 |
Change in unrealized( gains)/losses related to financial instruments held at March 31, 2013
|
||||||||||||||||||||||
Purchases
(g)
|
|
Sales
|
Issuances
|
Settlements
|
||||||||||||||||||||||||||||
Liabilities:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Deposits
|
$
|
1,983
|
|
$
|
5
|
|
(c)
|
$
|
—
|
|
|
$
|
—
|
|
$
|
296
|
|
$
|
(113
|
)
|
$
|
(156
|
)
|
|
$
|
2,015
|
|
|
$
|
4
|
|
(c)
|
Other borrowed funds
|
1,619
|
|
(26
|
)
|
(c)
|
—
|
|
|
—
|
|
1,762
|
|
(1,224
|
)
|
6
|
|
|
2,137
|
|
|
20
|
|
(c)
|
|||||||||
Trading liabilities – debt and equity instruments
|
205
|
|
(8
|
)
|
(c)
|
(1,485
|
)
|
|
1,552
|
|
—
|
|
(13
|
)
|
—
|
|
|
251
|
|
|
(5
|
)
|
(c)
|
|||||||||
Accounts payable and other liabilities
|
36
|
|
1
|
|
(f)
|
—
|
|
|
—
|
|
—
|
|
(4
|
)
|
—
|
|
|
33
|
|
|
1
|
|
(f)
|
|||||||||
Beneficial interests issued by consolidated VIEs
|
925
|
|
(34
|
)
|
(c)
|
—
|
|
|
—
|
|
21
|
|
(94
|
)
|
—
|
|
|
818
|
|
|
(34
|
)
|
(c)
|
|||||||||
Long-term debt
|
8,476
|
|
(475
|
)
|
(c)
|
—
|
|
|
—
|
|
1,855
|
|
(357
|
)
|
(415
|
)
|
|
9,084
|
|
|
(98
|
)
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
All level 3 derivatives are presented on a net basis, irrespective of the underlying counterparty.
|
(b)
|
Level 3 liabilities as a percentage of total Firm liabilities accounted for at fair value (including liabilities measured at fair value on a nonrecurring basis) were
17%
and
18%
at March 31, 2014, and December 31, 2013, respectively.
|
(c)
|
Predominantly reported in principal transactions revenue, except for changes in fair value for Consumer & Community Banking (“CCB”) mortgage loans, lending-related commitments originated with the intent to sell, and mortgage loan purchase commitments, which are reported in mortgage fees and related income.
|
(d)
|
Realized gains/(losses) on securities, as well as other-than-temporary impairment losses that are recorded in earnings, are reported in securities gains. Unrealized gains/(losses) are reported in OCI. Realized gains/(losses) and foreign exchange remeasurement adjustments recorded in income on AFS securities were
$(1) million
and
$(18) million
for the three months ended March 31, 2014 and 2013, respectively. Unrealized gains/(losses) recorded on AFS securities in OCI were
$(4) million
and
$14 million
for the three months ended March 31, 2014 and 2013, respectively.
|
(e)
|
Changes in fair value for CCB mortgage servicing rights are reported in mortgage fees and related income.
|
(f)
|
Predominantly reported in other income.
|
(g)
|
Loan originations are included in purchases.
|
(h)
|
All transfers into and/or out of level 3 are assumed to occur at the beginning of the quar
terly reporting period in which they occur.
|
(i)
|
The prior period amounts have been revised. The revision had no impact on the Firm’s Consolidated Balance Sheet or its results of operations.
|
•
|
$2.9 billion
decrease in trading assets - debt and equity instruments, largely driven by net sales and maturities of corporate debt securities and maturities of trading loans;
|
•
|
$1.1 billion
decrease in derivative receivables largely driven by a decrease in equity derivative receivables due to maturities;
|
•
|
$1.1 billion
decrease in MSRs. For further discussion of the change, refer to Note 16 on
pages 148–151
of this Form 10-Q;
|
•
|
$1.1 billion
decrease in private equity investments, driven by sales of investments.
|
•
|
$495 million
and
$225 million
of net losses on assets and liabilities, respectively, measured at fair value on a recurring basis, none of which were individually significant.
|
•
|
$851 million
and
$537 million
of net gains on assets and liabilities, respectively, measured at fair value on a recurring basis, none of which were individually significant.
|
(in millions)
|
Mar 31, 2014
|
|
Dec 31, 2013
|
||||
Derivative receivables balance
(a)
|
$
|
59,272
|
|
|
$
|
65,759
|
|
Derivative payables balance
(a)
|
49,138
|
|
|
57,314
|
|
||
Derivatives CVA
(b)(c)
|
(2,371
|
)
|
|
(2,352
|
)
|
||
Derivatives DVA and FVA
(b)(d)
|
(447
|
)
|
|
(322
|
)
|
||
Structured notes balance
(a)(e)
|
51,216
|
|
|
48,808
|
|
||
Structured notes DVA and FVA
(b)(f)
|
969
|
|
|
952
|
|
(a)
|
Balances are presented net of applicable credit valuation adjustments (“CVA”) and debit valuation adjustments (“DVA”)/funding valuation adjustments (“FVA”).
|
(b)
|
Positive CVA and DVA/FVA represent amounts that increased receivable balances or decreased payable balances; negative CVA and DVA/FVA represent amounts that decreased receivable balances or increased payable balances.
|
(c)
|
Derivatives CVA includes results managed by the credit portfolio group and other businesses.
|
(d)
|
At March 31, 2014, and December 31, 2013, included derivatives DVA of
$620 million
and
$715 million
, respectively.
|
(e)
|
Structured notes are predominantly financial instruments containing embedded derivatives. At
March 31, 2014
, and December 31, 2013, included
$1.2 billion
and
$1.1 billion
, respectively, of financial instruments with no embedded derivative for which the fair value option has been elected.
|
(f)
|
At March 31, 2014, and December 31, 2013 included structured notes DVA of
$1.3 billion
and
$1.4 billion
, respectively.
|
|
Three months ended March 31,
|
||||||
(in millions)
|
2014
|
|
2013
|
||||
Credit adjustments:
|
|
|
|
||||
Derivative CVA
(a)
|
$
|
(19
|
)
|
|
$
|
332
|
|
Derivative DVA and FVA
(b)
|
(125
|
)
|
|
(5
|
)
|
||
Structured note DVA and FVA
(c)(d)
|
17
|
|
|
131
|
|
(a)
|
Derivatives CVA includes results managed by the credit portfolio group and other businesses.
|
(b)
|
Included derivatives DVA of
$(94) million
and
$(5) million
for the three months ended March 31, 2014 and 2013, respectively.
|
(c)
|
Structured notes are measured at fair value based on the Firm’s election under the fair value option. For further information on these elections, see Note 4 on
pages 98–99
of this Form 10-Q.
|
(d)
|
Included structured notes DVA of
$(115) million
and
$131 million
for the three months ended March 31, 2014 and 2013, respectively.
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||
|
|
Estimated fair value hierarchy
|
|
|
|
Estimated fair value hierarchy
|
|
||||||||||||||||||||||||
(in billions)
|
Carrying
value
|
Level 1
|
Level 2
|
Level 3
|
Total estimated
fair value
|
|
Carrying
value
|
Level 1
|
Level 2
|
Level 3
|
Total estimated
fair value
|
||||||||||||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Cash and due from banks
|
$
|
26.3
|
|
$
|
26.3
|
|
$
|
—
|
|
$
|
—
|
|
$
|
26.3
|
|
|
$
|
39.8
|
|
$
|
39.8
|
|
$
|
—
|
|
$
|
—
|
|
$
|
39.8
|
|
Deposits with banks
|
372.5
|
|
362.1
|
|
10.4
|
|
—
|
|
372.5
|
|
|
316.1
|
|
309.7
|
|
6.4
|
|
—
|
|
316.1
|
|
||||||||||
Accrued interest and accounts receivable
|
73.1
|
|
—
|
|
73.0
|
|
0.1
|
|
73.1
|
|
|
65.2
|
|
—
|
|
64.9
|
|
0.3
|
|
65.2
|
|
||||||||||
Federal funds sold and securities purchased under resale agreements
|
239.4
|
|
—
|
|
239.4
|
|
—
|
|
239.4
|
|
|
223.0
|
|
—
|
|
223.0
|
|
—
|
|
223.0
|
|
||||||||||
Securities borrowed
|
119.6
|
|
—
|
|
119.6
|
|
—
|
|
119.6
|
|
|
107.7
|
|
—
|
|
107.7
|
|
—
|
|
107.7
|
|
||||||||||
Securities, held-to-maturity
(a)
|
47.3
|
|
—
|
|
47.6
|
|
—
|
|
47.6
|
|
|
24.0
|
|
—
|
|
23.7
|
|
—
|
|
23.7
|
|
||||||||||
Loans, net of allowance for loan losses
(b)
|
712.8
|
|
—
|
|
17.7
|
|
697.5
|
|
715.2
|
|
|
720.1
|
|
—
|
|
23.0
|
|
697.2
|
|
720.2
|
|
||||||||||
Other
|
54.4
|
|
—
|
|
51.4
|
|
3.8
|
|
55.2
|
|
|
58.1
|
|
—
|
|
54.5
|
|
4.3
|
|
58.8
|
|
||||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Deposits
|
$
|
1,275.3
|
|
$
|
—
|
|
$
|
1,274.4
|
|
$
|
1.2
|
|
$
|
1,275.6
|
|
|
$
|
1,281.1
|
|
$
|
—
|
|
$
|
1,280.3
|
|
$
|
1.2
|
|
$
|
1,281.5
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
212.5
|
|
—
|
|
212.5
|
|
—
|
|
212.5
|
|
|
175.7
|
|
—
|
|
175.7
|
|
—
|
|
175.7
|
|
||||||||||
Commercial paper
|
60.8
|
|
—
|
|
60.8
|
|
—
|
|
60.8
|
|
|
57.8
|
|
—
|
|
57.8
|
|
—
|
|
57.8
|
|
||||||||||
Other borrowed funds
|
18.3
|
|
—
|
|
18.3
|
|
—
|
|
18.3
|
|
|
14.7
|
|
—
|
|
14.7
|
|
—
|
|
14.7
|
|
||||||||||
Accounts payable and other liabilities
|
175.8
|
|
—
|
|
174.1
|
|
1.6
|
|
175.7
|
|
|
160.2
|
|
—
|
|
158.2
|
|
1.8
|
|
160.0
|
|
||||||||||
Beneficial interests issued by consolidated VIEs
|
44.8
|
|
—
|
|
41.6
|
|
3.1
|
|
44.7
|
|
|
47.6
|
|
—
|
|
44.3
|
|
3.2
|
|
47.5
|
|
||||||||||
Long-term debt and junior subordinated deferrable interest debentures
(c)
|
244.4
|
|
—
|
|
246.0
|
|
6.1
|
|
252.1
|
|
|
239.0
|
|
—
|
|
240.8
|
|
6.0
|
|
246.8
|
|
(a)
|
Carrying value includes unamortized discount or premium.
|
(b)
|
Fair value is typically estimated using a discounted cash flow model that incorporates the characteristics of the underlying loans (including principal, contractual interest rate and contractual fees) and other key inputs, including expected lifetime credit losses, interest rates, prepayment rates, and primary origination or secondary market spreads. For certain loans, the fair value is measured based on the value of the underlying collateral. The difference between the estimated fair value and carrying value of a financial asset or liability is the result of the different methodologies used to determine fair value as compared with carrying value. For example, credit losses are estimated for a financial asset’s remaining life in a fair value calculation but are estimated for a loss emergence period in the allowance for loan loss calculation; future loan income (interest and fees) is incorporated in a fair value calculation but is generally not considered in the allowance for loan losses. For a further discussion of the Firm’s methodologies for estimating the fair value of loans and lending-related commitments, see Valuation hierarchy on pages 197–215 of JPMorgan Chase’s 2013 Annual Report and
pages 86–97
of this Note.
|
(c)
|
Carrying value includes unamortized original issue discount and other valuation adjustments.
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||
|
|
Estimated fair value hierarchy
|
|
|
|
Estimated fair value hierarchy
|
|
||||||||||||||||||||||||
(in billions)
|
Carrying value
(a)
|
Level 1
|
Level 2
|
Level 3
|
Total estimated fair value
|
|
Carrying value
(a)
|
Level 1
|
Level 2
|
Level 3
|
Total estimated fair value
|
||||||||||||||||||||
Wholesale lending-related commitments
|
$
|
0.6
|
|
$
|
—
|
|
$
|
—
|
|
$
|
0.9
|
|
$
|
0.9
|
|
|
$
|
0.7
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1.0
|
|
$
|
1.0
|
|
(a)
|
Represents the allowance for wholesale lending-related commitments. Excludes the current carrying values of the guarantee liability and the offsetting asset, each of which are recognized at fair value at the inception of guarantees.
|
|
|
Three months ended March 31,
|
||||||
(in millions)
|
|
2014
|
|
2013
|
||||
Trading assets – debt and equity instruments
|
|
$
|
314,912
|
|
|
$
|
370,694
|
|
Trading assets – derivative receivables
|
|
64,820
|
|
|
74,918
|
|
||
Trading liabilities – debt and equity instruments
(a)
|
|
85,337
|
|
|
70,506
|
|
||
Trading liabilities – derivative payables
|
|
53,143
|
|
|
68,683
|
|
(a)
|
Primarily represent securities sold, not yet purchased.
|
|
Three months ended March 31,
|
||||||||||||||||||||
|
2014
|
|
2013
|
||||||||||||||||||
(in millions)
|
Principal transactions
|
Other income
|
Total changes in fair value recorded
|
|
Principal transactions
|
Other income
|
Total changes in fair value recorded
|
||||||||||||||
Federal funds sold and securities purchased under resale agreements
|
$
|
(40
|
)
|
$
|
—
|
|
|
$
|
(40
|
)
|
|
$
|
(71
|
)
|
$
|
—
|
|
|
$
|
(71
|
)
|
Securities borrowed
|
(3
|
)
|
—
|
|
|
(3
|
)
|
|
26
|
|
—
|
|
|
26
|
|
||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt and equity instruments, excluding loans
|
230
|
|
(2
|
)
|
(b)
|
228
|
|
|
256
|
|
3
|
|
(b)
|
259
|
|
||||||
Loans reported as trading assets:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Changes in instrument-specific credit risk
|
363
|
|
9
|
|
(b)
|
372
|
|
|
328
|
|
12
|
|
(b)
|
340
|
|
||||||
Other changes in fair value
|
64
|
|
292
|
|
(b)
|
356
|
|
|
16
|
|
952
|
|
(b)
|
968
|
|
||||||
Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Changes in instrument-specific credit risk
|
8
|
|
—
|
|
|
8
|
|
|
(5
|
)
|
—
|
|
|
(5
|
)
|
||||||
Other changes in fair value
|
7
|
|
—
|
|
|
7
|
|
|
—
|
|
—
|
|
|
—
|
|
||||||
Other assets
|
5
|
|
(112
|
)
|
(c)
|
(107
|
)
|
|
(1
|
)
|
(69
|
)
|
(c)
|
(70
|
)
|
||||||
Deposits
(a)
|
(104
|
)
|
—
|
|
|
(104
|
)
|
|
78
|
|
—
|
|
|
78
|
|
||||||
Federal funds purchased and securities loaned or sold under repurchase agreements
|
(16
|
)
|
—
|
|
|
(16
|
)
|
|
4
|
|
—
|
|
|
4
|
|
||||||
Other borrowed funds
(a)
|
(260
|
)
|
—
|
|
|
(260
|
)
|
|
(354
|
)
|
—
|
|
|
(354
|
)
|
||||||
Trading liabilities
|
(6
|
)
|
—
|
|
|
(6
|
)
|
|
(18
|
)
|
—
|
|
|
(18
|
)
|
||||||
Beneficial interests issued by consolidated VIEs
|
(89
|
)
|
—
|
|
|
(89
|
)
|
|
(28
|
)
|
—
|
|
|
(28
|
)
|
||||||
Other liabilities
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
(1
|
)
|
(c)
|
(1
|
)
|
||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Changes in instrument-specific credit risk
(a)
|
(77
|
)
|
—
|
|
|
(77
|
)
|
|
33
|
|
—
|
|
|
33
|
|
||||||
Other changes in fair value
|
(18
|
)
|
—
|
|
|
(18
|
)
|
|
(31
|
)
|
—
|
|
|
(31
|
)
|
(a)
|
Total changes in instrument-specific credit risk related to structured notes were
$(115) million
and
$131 million
for the three months ended
March 31, 2014
and 2013. These totals include adjustments for structured notes classified within deposits and other borrowed funds, as well as long-term debt.
|
(b)
|
Reported in mortgage fees and related income.
|
(c)
|
Reported in other income.
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||
(in millions)
|
Contractual principal outstanding
|
|
Fair value
|
Fair value over/(under) contractual principal outstanding
|
|
Contractual principal outstanding
|
|
Fair value
|
Fair value over/(under) contractual principal outstanding
|
||||||||||||
Loans
(a)
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nonaccrual loans
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans reported as trading assets
|
$
|
4,673
|
|
|
$
|
1,242
|
|
$
|
(3,431
|
)
|
|
$
|
5,156
|
|
|
$
|
1,491
|
|
$
|
(3,665
|
)
|
Loans
|
211
|
|
|
149
|
|
(62
|
)
|
|
209
|
|
|
154
|
|
(55
|
)
|
||||||
Subtotal
|
4,884
|
|
|
1,391
|
|
(3,493
|
)
|
|
5,365
|
|
|
1,645
|
|
(3,720
|
)
|
||||||
All other performing loans
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans reported as trading assets
|
32,025
|
|
|
28,076
|
|
(3,949
|
)
|
|
33,069
|
|
|
29,295
|
|
(3,774
|
)
|
||||||
Loans
|
1,986
|
|
|
1,929
|
|
(57
|
)
|
|
1,618
|
|
|
1,563
|
|
(55
|
)
|
||||||
Total loans
|
$
|
38,895
|
|
|
$
|
31,396
|
|
$
|
(7,499
|
)
|
|
$
|
40,052
|
|
|
$
|
32,503
|
|
$
|
(7,549
|
)
|
Long-term debt
|
|
|
|
|
|
|
|
|
|
||||||||||||
Principal-protected debt
|
$
|
15,516
|
|
(c)
|
$
|
15,749
|
|
$
|
233
|
|
|
$
|
15,797
|
|
(c)
|
$
|
15,909
|
|
$
|
112
|
|
Nonprincipal-protected debt
(b)
|
NA
|
|
|
14,395
|
|
NA
|
|
|
NA
|
|
|
12,969
|
|
NA
|
|
||||||
Total long-term debt
|
NA
|
|
|
$
|
30,144
|
|
NA
|
|
|
NA
|
|
|
$
|
28,878
|
|
NA
|
|
||||
Long-term beneficial interests
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nonprincipal-protected debt
(b)
|
NA
|
|
|
$
|
2,025
|
|
NA
|
|
|
NA
|
|
|
$
|
1,996
|
|
NA
|
|
||||
Total long-term beneficial interests
|
NA
|
|
|
$
|
2,025
|
|
NA
|
|
|
NA
|
|
|
$
|
1,996
|
|
NA
|
|
(a)
|
There were no performing loans that were ninety days or more past due as of
March 31, 2014
, and
December 31, 2013
.
|
(b)
|
Remaining contractual principal is not applicable to nonprincipal-protected notes. Unlike principal-protected structured notes, for which the Firm is obligated to return a stated amount of principal at the maturity of the note, nonprincipal-protected structured notes do not obligate the Firm to return a stated amount of principal at maturity, but to return an amount based on the performance of an underlying variable or derivative feature embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal protected notes.
|
(c)
|
Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflected as the remaining contractual principal is the final principal payment at maturity.
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||
(in millions)
|
Long-term debt
|
Other borrowed funds
|
Deposits
|
Total
|
|
Long-term debt
|
Other borrowed funds
|
Deposits
|
Total
|
||||||||||||||||
Risk exposure
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate
|
$
|
10,123
|
|
$
|
406
|
|
$
|
1,511
|
|
$
|
12,040
|
|
|
$
|
9,516
|
|
$
|
615
|
|
$
|
1,270
|
|
$
|
11,401
|
|
Credit
|
4,466
|
|
106
|
|
—
|
|
4,572
|
|
|
4,248
|
|
13
|
|
—
|
|
4,261
|
|
||||||||
Foreign exchange
|
2,062
|
|
208
|
|
19
|
|
2,289
|
|
|
2,321
|
|
194
|
|
27
|
|
2,542
|
|
||||||||
Equity
|
12,214
|
|
11,981
|
|
3,952
|
|
28,147
|
|
|
11,082
|
|
11,936
|
|
3,736
|
|
26,754
|
|
||||||||
Commodity
|
1,159
|
|
466
|
|
1,372
|
|
2,997
|
|
|
1,260
|
|
310
|
|
1,133
|
|
2,703
|
|
||||||||
Total structured notes
|
$
|
30,024
|
|
$
|
13,167
|
|
$
|
6,854
|
|
$
|
50,045
|
|
|
$
|
28,427
|
|
$
|
13,068
|
|
$
|
6,166
|
|
$
|
47,661
|
|
|
Notional amounts
(b)
|
|||||
(in billions)
|
March 31, 2014
|
December 31, 2013
|
||||
Interest rate contracts
|
|
|
||||
Swaps
|
$
|
30,684
|
|
$
|
35,221
|
|
Futures and forwards
|
12,800
|
|
11,251
|
|
||
Written options
|
4,203
|
|
3,991
|
|
||
Purchased options
|
4,493
|
|
4,187
|
|
||
Total interest rate contracts
|
52,180
|
|
54,650
|
|
||
Credit derivatives
(a)
|
5,343
|
|
5,386
|
|
||
Foreign exchange contracts
|
|
|
|
|||
Cross-currency swaps
|
3,578
|
|
3,488
|
|
||
Spot, futures and forwards
|
4,081
|
|
3,773
|
|
||
Written options
|
747
|
|
659
|
|
||
Purchased options
|
736
|
|
652
|
|
||
Total foreign exchange contracts
|
9,142
|
|
8,572
|
|
||
Equity contracts
|
|
|
||||
Swaps
|
182
|
|
205
|
|
||
Futures and forwards
|
45
|
|
49
|
|
||
Written options
|
448
|
|
425
|
|
||
Purchased options
|
398
|
|
380
|
|
||
Total equity contracts
|
1,073
|
|
1,059
|
|
||
Commodity contracts
|
|
|
|
|||
Swaps
|
131
|
|
124
|
|
||
Spot, futures and forwards
|
237
|
|
234
|
|
||
Written options
|
201
|
|
202
|
|
||
Purchased options
|
202
|
|
203
|
|
||
Total commodity contracts
|
771
|
|
763
|
|
||
Total derivative notional amounts
|
$
|
68,509
|
|
$
|
70,430
|
|
(a)
|
Primarily consists of credit default swaps. For more information on volumes and types of credit derivative contracts, see the Credit derivatives discussion on
page 109
of this Note.
|
(b)
|
Represents the sum of gross long and gross short third-party notional derivative contracts.
|
(a)
|
Balances exclude structured notes for which the fair value option has been elected. See Note 4 on
pages 98–99
of
this Form 10-Q
for further information.
|
(b)
|
As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral receivables and payables when a legally enforceable master netting agreement exists.
|
|
March 31, 2014
|
|
December 31, 2013
|
|||||||||||||||||||
(in millions)
|
Gross derivative receivables
|
Amounts netted on the Consolidated balance sheets
|
Net derivative receivables
|
|
Gross derivative receivables
|
Amounts netted on the Consolidated balance sheets
|
Net derivative receivables
|
|||||||||||||||
U.S. GAAP nettable derivative receivables
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Over–the–counter (“OTC”)
|
$
|
478,148
|
|
$
|
(455,636
|
)
|
|
$
|
22,512
|
|
|
$
|
486,449
|
|
$
|
(466,493
|
)
|
|
$
|
19,956
|
|
|
OTC–cleared
|
282,546
|
|
(282,388
|
)
|
|
158
|
|
|
362,426
|
|
(362,404
|
)
|
|
22
|
|
|||||||
Exchange traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Total interest rate contracts
|
760,694
|
|
(738,024
|
)
|
|
22,670
|
|
|
848,875
|
|
(828,897
|
)
|
|
19,978
|
|
|||||||
Credit contracts:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
OTC
|
62,823
|
|
(62,220
|
)
|
|
603
|
|
|
66,269
|
|
(65,725
|
)
|
|
544
|
|
|||||||
OTC–cleared
|
17,983
|
|
(17,983
|
)
|
|
—
|
|
|
16,841
|
|
(16,279
|
)
|
|
562
|
|
|||||||
Total credit contracts
|
80,806
|
|
(80,203
|
)
|
|
603
|
|
|
83,110
|
|
(82,004
|
)
|
|
1,106
|
|
|||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
(a)
|
119,674
|
|
(109,138
|
)
|
|
10,536
|
|
|
148,953
|
|
(136,763
|
)
|
|
12,190
|
|
|||||||
OTC–cleared
|
41
|
|
(41
|
)
|
|
—
|
|
|
46
|
|
(46
|
)
|
|
—
|
|
|||||||
Exchange traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Total foreign exchange contracts
|
119,715
|
|
(109,179
|
)
|
|
10,536
|
|
|
148,999
|
|
(136,809
|
)
|
|
12,190
|
|
|||||||
Equity contracts:
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
25,869
|
|
(25,393
|
)
|
|
476
|
|
|
31,870
|
|
(29,289
|
)
|
|
2,581
|
|
|||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Exchange traded
(a)
|
18,080
|
|
(15,104
|
)
|
|
2,976
|
|
|
17,732
|
|
(11,415
|
)
|
|
6,317
|
|
|||||||
Total equity contracts
|
43,949
|
|
(40,497
|
)
|
|
3,452
|
|
|
49,602
|
|
(40,704
|
)
|
|
8,898
|
|
|||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
24,455
|
|
(17,729
|
)
|
|
6,726
|
|
|
21,619
|
|
(15,082
|
)
|
|
6,537
|
|
|||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Exchange traded
(a)
|
13,423
|
|
(12,563
|
)
|
|
860
|
|
|
12,528
|
|
(11,212
|
)
|
|
1,316
|
|
|||||||
Total commodity contracts
|
37,878
|
|
(30,292
|
)
|
|
7,586
|
|
|
34,147
|
|
(26,294
|
)
|
|
7,853
|
|
|||||||
Derivative receivables with appropriate legal opinion
|
$
|
1,043,042
|
|
$
|
(998,195
|
)
|
(b)
|
$
|
44,847
|
|
|
$
|
1,164,733
|
|
$
|
(1,114,708
|
)
|
(b)
|
$
|
50,025
|
|
|
Derivative receivables where an appropriate legal opinion has not been either sought or obtained
|
14,425
|
|
|
|
14,425
|
|
|
15,734
|
|
|
|
15,734
|
|
|||||||||
Total derivative receivables recognized on the Consolidated Balance Sheets
|
$
|
1,057,467
|
|
|
|
$
|
59,272
|
|
|
$
|
1,180,467
|
|
|
|
$
|
65,759
|
|
(a)
|
Exchange traded derivative amounts that relate to futures contracts are settled daily.
|
(b)
|
Included cash collateral netted of
$60.7 billion
and
$63.9 billion
at March 31, 2014, and December 31, 2013, respectively.
|
|
March 31, 2014
|
|
December 31, 2013
|
|||||||||||||||||||
(in millions)
|
Gross derivative payables
|
Amounts netted on the Consolidated balance sheets
|
Net derivative payables
|
|
Gross derivative payables
|
Amounts netted on the Consolidated balance sheets
|
Net derivative payables
|
|||||||||||||||
U.S. GAAP nettable derivative payables
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
$
|
454,198
|
|
$
|
(442,483
|
)
|
|
$
|
11,715
|
|
|
$
|
467,850
|
|
$
|
(458,081
|
)
|
|
$
|
9,769
|
|
|
OTC–cleared
|
277,757
|
|
(277,016
|
)
|
|
741
|
|
|
354,698
|
|
(353,990
|
)
|
|
708
|
|
|||||||
Exchange traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Total interest rate contracts
|
731,955
|
|
(719,499
|
)
|
|
12,456
|
|
|
822,548
|
|
(812,071
|
)
|
|
10,477
|
|
|||||||
Credit contracts:
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
62,571
|
|
(61,227
|
)
|
|
1,344
|
|
|
65,223
|
|
(63,671
|
)
|
|
1,552
|
|
|||||||
OTC–cleared
|
17,856
|
|
(17,827
|
)
|
|
29
|
|
|
16,506
|
|
(16,450
|
)
|
|
56
|
|
|||||||
Total credit contracts
|
80,427
|
|
(79,054
|
)
|
|
1,373
|
|
|
81,729
|
|
(80,121
|
)
|
|
1,608
|
|
|||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
124,284
|
|
(114,775
|
)
|
|
9,509
|
|
|
155,110
|
|
(144,119
|
)
|
|
10,991
|
|
|||||||
OTC–cleared
|
48
|
|
(48
|
)
|
|
—
|
|
|
61
|
|
(59
|
)
|
|
2
|
|
|||||||
Exchange traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Total foreign exchange contracts
|
124,332
|
|
(114,823
|
)
|
|
9,509
|
|
|
155,171
|
|
(144,178
|
)
|
|
10,993
|
|
|||||||
Equity contracts:
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
28,713
|
|
(25,820
|
)
|
|
2,893
|
|
|
33,295
|
|
(28,520
|
)
|
|
4,775
|
|
|||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Exchange traded
(a)
|
16,442
|
|
(15,103
|
)
|
|
1,339
|
|
|
17,349
|
|
(11,415
|
)
|
|
5,934
|
|
|||||||
Total equity contracts
|
45,155
|
|
(40,923
|
)
|
|
4,232
|
|
|
50,644
|
|
(39,935
|
)
|
|
10,709
|
|
|||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
24,729
|
|
(18,393
|
)
|
|
6,336
|
|
|
21,993
|
|
(15,318
|
)
|
|
6,675
|
|
|||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Exchange traded
(a)
|
13,546
|
|
(12,563
|
)
|
|
983
|
|
|
12,367
|
|
(11,212
|
)
|
|
1,155
|
|
|||||||
Total commodity contracts
|
38,275
|
|
(30,956
|
)
|
|
7,319
|
|
|
34,360
|
|
(26,530
|
)
|
|
7,830
|
|
|||||||
Derivative payables with appropriate legal opinions
|
$
|
1,020,144
|
|
$
|
(985,255
|
)
|
(b)
|
$
|
34,889
|
|
|
$
|
1,144,452
|
|
$
|
(1,102,835
|
)
|
(b)
|
$
|
41,617
|
|
|
Derivative payables where an appropriate legal opinion has not been either sought or obtained
|
14,249
|
|
|
|
14,249
|
|
|
15,697
|
|
|
|
15,697
|
|
|||||||||
Total derivative payables recognized on the Consolidated Balance Sheets
|
$
|
1,034,393
|
|
|
|
$
|
49,138
|
|
|
$
|
1,160,149
|
|
|
|
$
|
57,314
|
|
(a)
|
Exchange traded derivative balances that relate to futures contracts are settled daily.
|
(b)
|
Included cash collateral netted of
$47.7 billion
and
$52.1 billion
related to OTC and OTC-cleared derivatives at March 31, 2014, and December 31, 2013, respectively.
|
(a)
|
Represents liquid security collateral as well as cash collateral held at third party custodians. For some counterparties, the collateral amounts of financial instruments may exceed the derivative receivables and derivative payables balances. Where this is the case, the total amount reported is limited to the net derivative receivables and net derivative payables balances with that counterparty.
|
(b)
|
Derivative payable collateral relates only to OTC and OTC-cleared derivative instruments. Amounts exclude collateral transferred related to exchange-traded derivative instruments.
|
(c)
|
Net amount represents exposure of counterparties to the Firm.
|
OTC and OTC-cleared derivative payables containing downgrade triggers
|
||||||
(in millions)
|
March 31, 2014
|
December 31, 2013
|
||||
Aggregate fair value of net derivative payables
|
$
|
23,242
|
|
$
|
24,631
|
|
Collateral posted
|
18,947
|
|
20,346
|
|
Liquidity impact of downgrade triggers on OTC and
OTC-cleared derivatives
|
|
|
|
|
|
||||||||
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||
(in millions)
|
Single-notch downgrade
|
Two-notch downgrade
|
|
Single-notch downgrade
|
Two-notch downgrade
|
||||||||
Amount of additional collateral to be posted upon downgrade
(a)
|
$
|
1,017
|
|
$
|
3,018
|
|
|
$
|
952
|
|
$
|
3,244
|
|
Amount required to settle contracts with termination triggers upon downgrade
(b)
|
522
|
|
867
|
|
|
540
|
|
876
|
|
(a)
|
Includes the additional collateral to be posted for initial margin.
|
(b)
|
Amounts represent fair value of derivative payables, and do not reflect collateral posted.
|
|
Gains/(losses) recorded in income
|
|
Income statement impact due to:
|
|||||||||||||
Three months ended March 31, 2014 (in millions)
|
Derivatives
|
Hedged items
|
Total income statement impact
|
|
Hedge ineffectiveness
(d)
|
Excluded components
(e)
|
||||||||||
Contract type
|
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
743
|
|
$
|
(407
|
)
|
$
|
336
|
|
|
$
|
29
|
|
$
|
307
|
|
Foreign exchange
(b)
|
(398
|
)
|
324
|
|
(74
|
)
|
|
—
|
|
(74
|
)
|
|||||
Commodity
(c)
|
180
|
|
(138
|
)
|
42
|
|
|
15
|
|
27
|
|
|||||
Total
|
$
|
525
|
|
$
|
(221
|
)
|
$
|
304
|
|
|
$
|
44
|
|
$
|
260
|
|
|
|
|
|
|
|
|
||||||||||
|
Gains/(losses) recorded in income
|
|
Income statement impact due to:
|
|||||||||||||
Three months ended March 31, 2013 (in millions)
|
Derivatives
|
|
Hedged items
|
|
Total income statement impact
|
|
Hedge ineffectiveness
(d)
|
Excluded components
(e)
|
||||||||
Contract type
|
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
(499
|
)
|
$
|
875
|
|
$
|
376
|
|
|
$
|
(40
|
)
|
$
|
416
|
|
Foreign exchange
(b)
|
3,753
|
|
(3,752
|
)
|
1
|
|
|
—
|
|
1
|
|
|||||
Commodity
(c)
|
751
|
|
(725
|
)
|
26
|
|
|
(18
|
)
|
44
|
|
|||||
Total
|
$
|
4,005
|
|
$
|
(3,602
|
)
|
$
|
403
|
|
|
$
|
(58
|
)
|
$
|
461
|
|
(a)
|
Primarily consists of hedges of the benchmark (e.g., London Interbank Offered Rate (“LIBOR”)) interest rate risk of fixed-rate long-term debt and AFS securities. Gains and losses were recorded in net interest income. The current presentation excludes accrued interest.
|
(b)
|
Primarily consists of hedges of the foreign currency risk of long-term debt and AFS securities for changes in spot foreign currency rates. Gains and losses related to the derivatives and the hedged items, due to changes in foreign currency rates, were recorded in principal transactions revenue and net interest income.
|
(c)
|
Consists of overall fair value hedges of physical commodities inventories that are generally carried at the lower of cost or market (market approximates fair value). Gains and losses were recorded in principal transactions revenue.
|
(d)
|
Hedge ineffectiveness is the amount by which the gain or loss on the designated derivative instrument does not exactly offset the gain or loss on the hedged item attributable to the hedged risk.
|
(e)
|
The assessment of hedge effectiveness excludes certain components of the changes in fair values of the derivatives and hedged items such as forward points on foreign exchange forward contracts and time values.
|
|
|
|
|
|
|
|
|
Gains/(losses) recorded in income and other comprehensive income/(loss)
(c)
|
||||||||||||||
Three months ended March 31, 2014 (in millions)
|
Derivatives – effective portion reclassified from AOCI to income
|
Hedge ineffectiveness recorded directly in income
(d)
|
Total income statement impact
|
Derivatives – effective portion recorded in OCI
|
Total change
in OCI
for period
|
||||||||||
Contract type
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
(26
|
)
|
$
|
—
|
|
$
|
(26
|
)
|
$
|
63
|
|
$
|
89
|
|
Foreign exchange
(b)
|
(1
|
)
|
—
|
|
(1
|
)
|
9
|
|
10
|
|
|||||
Total
|
$
|
(27
|
)
|
$
|
—
|
|
$
|
(27
|
)
|
$
|
72
|
|
$
|
99
|
|
|
Gains/(losses) recorded in income and other comprehensive income/(loss)
(c)
|
||||||||||||||
Three months ended March 31, 2013 (in millions)
|
Derivatives – effective portion reclassified from AOCI to income
|
Hedge ineffectiveness recorded directly in income
(d)
|
Total income statement impact
|
Derivatives – effective portion recorded in OCI
|
Total change
in OCI for period |
||||||||||
Contract type
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
(27
|
)
|
$
|
—
|
|
$
|
(27
|
)
|
$
|
(26
|
)
|
$
|
1
|
|
Foreign exchange
(b)
|
(2
|
)
|
—
|
|
(2
|
)
|
(104
|
)
|
(102
|
)
|
|||||
Total
|
$
|
(29
|
)
|
$
|
—
|
|
$
|
(29
|
)
|
$
|
(130
|
)
|
$
|
(101
|
)
|
(a)
|
Primarily consists of benchmark interest rate hedges of LIBOR-indexed floating-rate assets and floating-rate liabilities. Gains and losses were recorded in net interest income.
|
(b)
|
Primarily consists of hedges of the foreign currency risk of non-U.S. dollar-denominated revenue and expense. The income statement classification of gains and losses follows the hedged item – primarily noninterest revenue and compensation expense.
|
(c)
|
The Firm did not experience any forecasted transactions that failed to occur for the three months ended March 31, 2014 and 2013.
|
(d)
|
Hedge ineffectiveness is the amount by which the cumulative gain or loss on the designated derivative instrument exceeds the present value of the cumulative expected change in cash flows on the hedged item attributable to the hedged risk.
|
|
Gains/(losses) recorded in income and
other comprehensive income/(loss)
|
||||||||||||||||
|
2014
|
|
2013
|
||||||||||||||
Three months ended March 31,
(in millions)
|
Excluded components recorded directly
in income
(a)
|
Effective portion recorded in OCI
|
|
Excluded components
recorded directly
in income
(a)
|
Effective portion recorded in OCI
|
||||||||||||
Foreign exchange derivatives
|
|
$
|
(105
|
)
|
|
$
|
(154
|
)
|
|
|
$
|
(77
|
)
|
|
$
|
420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Primarily relates to interest rate derivatives used to hedge the interest rate risks associated with the mortgage pipeline, warehouse loans and MSRs. Gains and losses were recorded predominantly in mortgage fees and related income.
|
(b)
|
Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm’s wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue.
|
(c)
|
Primarily relates to commodity derivatives used to mitigate energy price risk associated with energy-related contracts and investments. Gains and losses were recorded in principal transactions revenue.
|
|
Maximum payout/Notional amount
|
||||||||||||
March 31, 2014
(in millions)
|
Protection sold
|
Protection purchased with
identical underlyings
(b)
|
Net protection (sold)/purchased
(c)
|
Other protection purchased
(d)
|
|||||||||
Credit derivatives
|
|
|
|
|
|
||||||||
Credit default swaps
|
$
|
(2,578,437
|
)
|
|
$
|
2,579,206
|
|
$
|
769
|
|
$
|
13,583
|
|
Other credit derivatives
(a)
|
(104,117
|
)
|
|
45,157
|
|
(58,960
|
)
|
22,631
|
|
||||
Total credit derivatives
|
(2,682,554
|
)
|
|
2,624,363
|
|
(58,191
|
)
|
36,214
|
|
||||
Credit-related notes
|
(127
|
)
|
|
—
|
|
(127
|
)
|
2,814
|
|
||||
Total
|
$
|
(2,682,681
|
)
|
|
$
|
2,624,363
|
|
$
|
(58,318
|
)
|
$
|
39,028
|
|
|
|
|
|
|
|
||||||||
|
Maximum payout/Notional amount
|
||||||||||||
December 31, 2013 (in millions)
|
Protection sold
|
Protection purchased with
identical underlyings
(b)
|
Net protection (sold)/purchased
(c)
|
Other protection purchased
(d)
|
|||||||||
Credit derivatives
|
|
|
|
|
|
||||||||
Credit default swaps
|
$
|
(2,601,581
|
)
|
|
$
|
2,610,198
|
|
$
|
8,617
|
|
$
|
8,722
|
|
Other credit derivatives
(a)
|
(95,094
|
)
|
|
45,921
|
|
(49,173
|
)
|
24,192
|
|
||||
Total credit derivatives
|
(2,696,675
|
)
|
|
2,656,119
|
|
(40,556
|
)
|
32,914
|
|
||||
Credit-related notes
|
(130
|
)
|
|
—
|
|
(130
|
)
|
2,720
|
|
||||
Total
|
$
|
(2,696,805
|
)
|
|
$
|
2,656,119
|
|
$
|
(40,686
|
)
|
$
|
35,634
|
|
(a)
|
Other credit derivatives predominantly consists of put options on fixed income portfolios.
|
(b)
|
Represents the total notional amount of protection purchased where the underlying reference instrument is identical to the reference instrument on protection sold; the notional amount of protection purchased for each individual identical underlying reference instrument may be greater or lower than the notional amount of protection sold.
|
(c)
|
Does not take into account the fair value of the reference obligation at the time of settlement, which would generally reduce the amount the seller of protection pays to the buyer of protection in determining settlement value.
|
(d)
|
Represents protection purchased by the Firm on referenced instruments (single-name, portfolio or index) where the Firm has not sold any protection on the identical reference instrument.
|
December 31, 2013 (in millions)
|
<1 year
|
1–5 years
|
>5 years
|
Total
notional amount
|
Fair value of receivables
(b)
|
Fair value of payables
(b)
|
Net fair value
|
||||||||||||||
Risk rating of reference entity
|
|
|
|
|
|
|
|
||||||||||||||
Investment-grade
|
$
|
(365,660
|
)
|
$
|
(1,486,394
|
)
|
$
|
(130,597
|
)
|
$
|
(1,982,651
|
)
|
$
|
31,727
|
|
$
|
(5,629
|
)
|
$
|
26,098
|
|
Noninvestment-grade
|
(140,540
|
)
|
(544,671
|
)
|
(28,943
|
)
|
(714,154
|
)
|
27,426
|
|
(16,674
|
)
|
10,752
|
|
|||||||
Total
|
$
|
(506,200
|
)
|
$
|
(2,031,065
|
)
|
$
|
(159,540
|
)
|
$
|
(2,696,805
|
)
|
$
|
59,153
|
|
$
|
(22,303
|
)
|
$
|
36,850
|
|
(a)
|
The ratings scale is based on the Firm’s internal ratings, which generally correspond to ratings as defined by S&P and Moody’s.
|
(b)
|
Amounts are shown on a gross basis, before the benefit of legally enforceable master netting agreements and cash collateral received by the Firm.
|
|
Three months ended March 31,
|
||||||
(in millions)
|
2014
|
|
2013
|
||||
Underwriting
|
|
|
|
||||
Equity
|
$
|
353
|
|
|
$
|
273
|
|
Debt
|
683
|
|
|
917
|
|
||
Total underwriting
|
1,036
|
|
|
1,190
|
|
||
Advisory
|
384
|
|
|
255
|
|
||
Total investment banking fees
|
$
|
1,420
|
|
|
$
|
1,445
|
|
|
Three months ended March 31,
|
||||||
(in millions)
|
2014
|
|
2013
|
||||
Trading revenue by risk exposure
|
|
|
|
||||
Interest rate
|
$
|
224
|
|
|
$
|
589
|
|
Credit
|
603
|
|
|
1,145
|
|
||
Foreign exchange
|
578
|
|
|
489
|
|
||
Equity
|
800
|
|
|
1,122
|
|
||
Commodity
(a)
|
695
|
|
|
688
|
|
||
Total trading revenue
|
2,900
|
|
|
4,033
|
|
||
Private equity gains/(losses)
(b)
|
422
|
|
|
(272
|
)
|
||
Principal transactions
|
$
|
3,322
|
|
|
$
|
3,761
|
|
(a)
|
Includes realized gains and losses and unrealized losses on physical commodities inventories that are generally carried at the lower of cost or market (market approximates fair value), subject to any applicable fair value hedge accounting adjustments, and gains and losses on commodity derivatives and other financial instruments that are carried at fair value through income. Commodity derivatives are frequently used to manage the Firm’s risk exposure to its physical commodities inventories. For gains/(losses) related to commodity fair value hedges see Note 5 on
pages 100–109
.
|
(b)
|
Includes revenue on private equity investments held in the Private Equity business within Corporate/Private Equity, as well as those held in other business segments.
|
|
Three months ended March 31,
|
||||||
(in millions)
|
2014
|
|
2013
|
||||
Asset management fees
|
|
|
|
||||
Investment management fees
(a)
|
$
|
2,096
|
|
|
$
|
1,825
|
|
All other asset management fees
(b)
|
123
|
|
|
124
|
|
||
Total asset management fees
|
2,219
|
|
|
1,949
|
|
||
|
|
|
|
||||
Total administration fees
(c)
|
527
|
|
|
527
|
|
||
|
|
|
|
||||
Commission and other fees
|
|
|
|
||||
Brokerage commissions
|
632
|
|
|
580
|
|
||
All other commissions and fees
|
458
|
|
|
543
|
|
||
Total commissions and fees
|
1,090
|
|
|
1,123
|
|
||
Total asset management, administration and commissions
|
$
|
3,836
|
|
|
$
|
3,599
|
|
(a)
|
Represents fees earned from managing assets on behalf of Firm clients, including investors in Firm-sponsored funds and owners of separately managed investment accounts.
|
(b)
|
Represents fees for services that are ancillary to investment management services, such as commissions earned on the sales or distribution of mutual funds to clients.
|
(c)
|
Predominantly includes fees for custody, securities lending, funds services and securities clearance.
|
|
Three months ended March 31,
|
|
||||||
(in millions)
|
2014
|
|
2013
|
|
||||
Interest income
|
|
|
|
|
||||
Loans
|
$
|
8,039
|
|
|
$
|
8,513
|
|
|
Taxable securities
|
1,902
|
|
|
1,707
|
|
|
||
Tax-exempt securities
|
315
|
|
|
183
|
|
|
||
Total securities
|
2,217
|
|
|
1,890
|
|
|
||
Trading assets
|
1,771
|
|
|
2,211
|
|
(d)
|
||
Federal funds sold and securities purchased under resale agreements
|
436
|
|
|
514
|
|
|
||
Securities borrowed
|
(88
|
)
|
(c)
|
(6
|
)
|
(c)
|
||
Deposits with banks
|
256
|
|
|
163
|
|
|
||
Other assets
(a)
|
162
|
|
|
80
|
|
|
||
Total interest income
|
$
|
12,793
|
|
|
$
|
13,365
|
|
(d)
|
Interest expense
|
|
|
|
|
||||
Interest-bearing deposits
|
$
|
426
|
|
|
$
|
545
|
|
|
Short-term and other liabilities
(b)
|
428
|
|
|
458
|
|
(d)
|
||
Long-term debt
|
1,167
|
|
|
1,295
|
|
|
||
Beneficial interests issued by consolidated VIEs
|
105
|
|
|
134
|
|
|
||
Total interest expense
|
$
|
2,126
|
|
|
$
|
2,432
|
|
(d)
|
Net interest income
|
$
|
10,667
|
|
|
$
|
10,933
|
|
|
Provision for credit losses
|
850
|
|
|
617
|
|
|
||
Net interest income after provision for credit losses
|
$
|
9,817
|
|
|
$
|
10,316
|
|
|
(a)
|
Largely margin loans.
|
(b)
|
Includes brokerage customer payables.
|
(c)
|
Negative interest income for the three months ended March 31, 2014 and 2013, is a result of increased client-driven demand for certain securities combined with the impact of low interest rates; the offset of this matched book activity is reflected as lower net interest expense reported within short-term and other liabilities.
|
(d)
|
Prior period amounts (and the corresponding amounts on the Consolidated statements of income) have been reclassified to conform with the current period presentation.
|
|
Pension plans
|
|
|
|
||||||||||||||||
|
U.S.
|
|
Non-U.S.
|
|
OPEB plans
|
|||||||||||||||
Three months March 31, (in millions)
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
||||||
Components of net periodic benefit cost
|
|
|
|
|
|
|
|
|
||||||||||||
Benefits earned during the period
|
$
|
70
|
|
$
|
78
|
|
|
$
|
9
|
|
$
|
9
|
|
|
$
|
—
|
|
$
|
—
|
|
Interest cost on benefit obligations
|
134
|
|
112
|
|
|
34
|
|
30
|
|
|
9
|
|
9
|
|
||||||
Expected return on plan assets
|
(246
|
)
|
(239
|
)
|
|
(44
|
)
|
(34
|
)
|
|
(25
|
)
|
(22
|
)
|
||||||
Amortization:
|
|
|
|
|
|
|
|
|
||||||||||||
Net (gain)/loss
|
6
|
|
68
|
|
|
12
|
|
12
|
|
|
—
|
|
1
|
|
||||||
Prior service cost/(credit)
|
(10
|
)
|
(10
|
)
|
|
—
|
|
(1
|
)
|
|
—
|
|
—
|
|
||||||
Net periodic defined benefit cost
|
(46
|
)
|
9
|
|
|
11
|
|
16
|
|
|
(16
|
)
|
(12
|
)
|
||||||
Other defined benefit pension plans
(a)
|
3
|
|
3
|
|
|
2
|
|
2
|
|
|
NA
|
|
NA
|
|
||||||
Total defined benefit plans
|
(43
|
)
|
12
|
|
|
13
|
|
18
|
|
|
(16
|
)
|
(12
|
)
|
||||||
Total defined contribution plans
|
108
|
|
105
|
|
|
80
|
|
79
|
|
|
NA
|
|
NA
|
|
||||||
Total pension and OPEB cost included in compensation expense
|
$
|
65
|
|
$
|
117
|
|
|
$
|
93
|
|
$
|
97
|
|
|
$
|
(16
|
)
|
$
|
(12
|
)
|
(a)
|
Includes various defined benefit pension plans which are individually immaterial.
|
|
Three months ended March 31,
|
||||||
(in millions)
|
2014
|
|
2013
|
||||
Cost of prior grants of restricted stock units (“RSUs”) and stock appreciation rights (“SARs”) that are amortized over their applicable vesting periods
|
$
|
410
|
|
|
$
|
384
|
|
Accrual of estimated costs of stock awards to be granted in future periods including those to full-career eligible employees
|
208
|
|
|
257
|
|
||
Total noncash compensation expense related to employee stock-based incentive plans
|
$
|
618
|
|
|
$
|
641
|
|
|
Three months ended March 31,
|
||||||
(in millions)
|
2014
|
|
2013
|
||||
Compensation expense
|
$
|
7,859
|
|
|
$
|
8,414
|
|
Noncompensation expense:
|
|
|
|
||||
Occupancy expense
|
952
|
|
|
901
|
|
||
Technology, communications and equipment expense
|
1,411
|
|
|
1,332
|
|
||
Professional and outside services
|
1,786
|
|
|
1,734
|
|
||
Marketing
|
564
|
|
|
589
|
|
||
Other expense
(a)(b)
|
1,933
|
|
|
2,301
|
|
||
Amortization of intangibles
|
131
|
|
|
152
|
|
||
Total noncompensation expense
|
6,777
|
|
|
7,009
|
|
||
Total noninterest expense
|
$
|
14,636
|
|
|
$
|
15,423
|
|
(a)
|
Included firmwide legal expense of
$347 million
for the three months ended March 31, 2013. Firmwide legal expense was not material for the three months ended March 31, 2014.
|
(b)
|
Included FDIC-related expense of
$293 million
and
$379 million
for the three months ended March 31, 2014 and 2013, respectively.
|
|
Three months ended
March 31,
|
|
|||||
(in millions)
|
2014
|
|
2013
|
|
|
||
Realized gains
|
$
|
148
|
|
$
|
521
|
|
|
Realized losses
|
(115
|
)
|
(12
|
)
|
|
||
Net realized gains
(a)
|
33
|
|
509
|
|
|
||
Other-than-temporary impairment losses:
|
|
|
|
||||
Credit-related
|
—
|
|
—
|
|
|
||
Securities the Firm intends to sell
|
(3
|
)
|
—
|
|
|
||
Total OTTI losses recognized in income
|
(3
|
)
|
—
|
|
|
||
Net securities gains
|
$
|
30
|
|
$
|
509
|
|
|
(a)
|
Total proceeds from securities sold were within approximately
1%
and
4%
of amortized cost for the three months ended March 31, 2014, and 2013, respectively.
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||
(in millions)
|
Amortized cost
|
Gross unrealized gains
|
Gross unrealized losses
|
Fair value
|
|
Amortized cost
|
Gross unrealized gains
|
Gross unrealized losses
|
Fair value
|
||||||||||||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. government agencies
(a)
|
$
|
60,840
|
|
$
|
1,858
|
|
$
|
441
|
|
|
$
|
62,257
|
|
|
$
|
76,428
|
|
$
|
2,364
|
|
$
|
977
|
|
|
$
|
77,815
|
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Prime and Alt-A
|
2,918
|
|
56
|
|
37
|
|
|
2,937
|
|
|
2,744
|
|
61
|
|
27
|
|
|
2,778
|
|
||||||||
Subprime
|
862
|
|
22
|
|
—
|
|
|
884
|
|
|
908
|
|
23
|
|
1
|
|
|
930
|
|
||||||||
Non-U.S.
|
53,499
|
|
1,399
|
|
1
|
|
|
54,897
|
|
|
57,448
|
|
1,314
|
|
1
|
|
|
58,761
|
|
||||||||
Commercial
|
16,794
|
|
578
|
|
14
|
|
|
17,358
|
|
|
15,891
|
|
560
|
|
26
|
|
|
16,425
|
|
||||||||
Total mortgage-backed securities
|
134,913
|
|
3,913
|
|
493
|
|
|
138,333
|
|
|
153,419
|
|
4,322
|
|
1,032
|
|
|
156,709
|
|
||||||||
U.S. Treasury and government agencies
(a)
|
19,626
|
|
129
|
|
44
|
|
|
19,711
|
|
|
21,310
|
|
385
|
|
306
|
|
|
21,389
|
|
||||||||
Obligations of U.S. states and municipalities
|
25,285
|
|
1,132
|
|
198
|
|
|
26,219
|
|
|
29,741
|
|
707
|
|
987
|
|
|
29,461
|
|
||||||||
Certificates of deposit
|
1,509
|
|
3
|
|
1
|
|
|
1,511
|
|
|
1,041
|
|
1
|
|
1
|
|
|
1,041
|
|
||||||||
Non-U.S. government debt securities
|
54,479
|
|
986
|
|
64
|
|
|
55,401
|
|
|
55,507
|
|
863
|
|
122
|
|
|
56,248
|
|
||||||||
Corporate debt securities
|
20,287
|
|
542
|
|
15
|
|
|
20,814
|
|
|
21,043
|
|
498
|
|
29
|
|
|
21,512
|
|
||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Collateralized loan obligations
|
27,451
|
|
211
|
|
110
|
|
|
27,552
|
|
|
28,130
|
|
236
|
|
136
|
|
|
28,230
|
|
||||||||
Other
|
11,782
|
|
204
|
|
2
|
|
|
11,984
|
|
|
12,062
|
|
186
|
|
3
|
|
|
12,245
|
|
||||||||
Total available-for-sale debt securities
|
295,332
|
|
7,120
|
|
927
|
|
|
301,525
|
|
|
322,253
|
|
7,198
|
|
2,616
|
|
|
326,835
|
|
||||||||
Available-for-sale equity securities
|
3,040
|
|
14
|
|
—
|
|
|
3,054
|
|
|
3,125
|
|
17
|
|
—
|
|
|
3,142
|
|
||||||||
Total available-for-sale securities
|
$
|
298,372
|
|
$
|
7,134
|
|
$
|
927
|
|
|
$
|
304,579
|
|
|
$
|
325,378
|
|
$
|
7,215
|
|
$
|
2,616
|
|
|
$
|
329,977
|
|
Total held-to-maturity securities
(b)
|
$
|
47,271
|
|
$
|
401
|
|
$
|
113
|
|
|
$
|
47,559
|
|
|
$
|
24,026
|
|
$
|
22
|
|
$
|
317
|
|
|
$
|
23,731
|
|
(a)
|
Included total U.S. government-sponsored enterprise obligations with fair values of
$56.1 billion
and
$67.0 billion
at March 31, 2014, and
December 31, 2013
, respectively.
|
(b)
|
As of March 31, 2014, consists of MBS issued by U. S. government-sponsored enterprises with an amortized cost of
$35.3 billion
, MBS issued by U.S. government agencies with an amortized cost of
$4.3 billion
and obligations of U.S. states and municipalities with an amortized cost of
$7.7 billion
. As of December 31, 2013, consists of MBS issued by U.S. government-sponsored enterprises with an amortized cost of
$23.1 billion
and obligations of U.S. states and municipalities with an amortized cost of
$920 million
.
|
|
Securities with gross unrealized losses
|
||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
|
||||||||||||||
March 31, 2014 (in millions)
|
Fair value
|
Gross unrealized losses
|
|
Fair value
|
Gross unrealized losses
|
Total fair value
|
Total gross unrealized losses
|
||||||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agencies
|
$
|
16,260
|
|
$
|
324
|
|
|
$
|
1,819
|
|
$
|
117
|
|
$
|
18,079
|
|
$
|
441
|
|
Residential:
|
|
|
|
|
|
|
|
||||||||||||
Prime and Alt-A
|
1,138
|
|
37
|
|
|
—
|
|
—
|
|
1,138
|
|
37
|
|
||||||
Subprime
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Non-U.S.
|
909
|
|
1
|
|
|
—
|
|
—
|
|
909
|
|
1
|
|
||||||
Commercial
|
1,999
|
|
14
|
|
|
—
|
|
—
|
|
1,999
|
|
14
|
|
||||||
Total mortgage-backed securities
|
20,306
|
|
376
|
|
|
1,819
|
|
117
|
|
22,125
|
|
493
|
|
||||||
U.S. Treasury and government agencies
|
2,991
|
|
6
|
|
|
256
|
|
38
|
|
3,247
|
|
44
|
|
||||||
Obligations of U.S. states and municipalities
|
6,635
|
|
191
|
|
|
48
|
|
7
|
|
6,683
|
|
198
|
|
||||||
Certificates of deposit
|
520
|
|
1
|
|
|
—
|
|
—
|
|
520
|
|
1
|
|
||||||
Non-U.S. government debt securities
|
7,219
|
|
52
|
|
|
737
|
|
12
|
|
7,956
|
|
64
|
|
||||||
Corporate debt securities
|
1,932
|
|
10
|
|
|
445
|
|
5
|
|
2,377
|
|
15
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||||||
Collateralized loan obligations
|
15,403
|
|
83
|
|
|
1,851
|
|
27
|
|
17,254
|
|
110
|
|
||||||
Other
|
970
|
|
2
|
|
|
—
|
|
—
|
|
970
|
|
2
|
|
||||||
Total available-for-sale debt securities
|
55,976
|
|
721
|
|
|
5,156
|
|
206
|
|
61,132
|
|
927
|
|
||||||
Available-for-sale equity securities
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Held-to-maturity securities
|
14,208
|
|
113
|
|
|
—
|
|
—
|
|
14,208
|
|
113
|
|
||||||
Total securities with gross unrealized losses
|
$
|
70,184
|
|
$
|
834
|
|
|
$
|
5,156
|
|
$
|
206
|
|
$
|
75,340
|
|
$
|
1,040
|
|
|
Securities with gross unrealized losses
|
||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
|
||||||||||||||
December 31, 2013 (in millions)
|
Fair value
|
Gross unrealized losses
|
|
Fair value
|
Gross unrealized losses
|
Total fair value
|
Total gross unrealized losses
|
||||||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agencies
|
$
|
20,293
|
|
$
|
895
|
|
|
$
|
1,150
|
|
$
|
82
|
|
$
|
21,443
|
|
$
|
977
|
|
Residential:
|
|
|
|
|
|
|
|
||||||||||||
Prime and Alt-A
|
1,061
|
|
27
|
|
|
—
|
|
—
|
|
1,061
|
|
27
|
|
||||||
Subprime
|
152
|
|
1
|
|
|
—
|
|
—
|
|
152
|
|
1
|
|
||||||
Non-U.S.
|
—
|
|
—
|
|
|
158
|
|
1
|
|
158
|
|
1
|
|
||||||
Commercial
|
3,980
|
|
26
|
|
|
—
|
|
—
|
|
3,980
|
|
26
|
|
||||||
Total mortgage-backed securities
|
25,486
|
|
949
|
|
|
1,308
|
|
83
|
|
26,794
|
|
1,032
|
|
||||||
U.S. Treasury and government agencies
|
6,293
|
|
250
|
|
|
237
|
|
56
|
|
6,530
|
|
306
|
|
||||||
Obligations of U.S. states and municipalities
|
15,387
|
|
975
|
|
|
55
|
|
12
|
|
15,442
|
|
987
|
|
||||||
Certificates of deposit
|
988
|
|
1
|
|
|
—
|
|
—
|
|
988
|
|
1
|
|
||||||
Non-U.S. government debt securities
|
11,286
|
|
110
|
|
|
821
|
|
12
|
|
12,107
|
|
122
|
|
||||||
Corporate debt securities
|
1,580
|
|
21
|
|
|
505
|
|
8
|
|
2,085
|
|
29
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||||||
Collateralized loan obligations
|
18,369
|
|
129
|
|
|
393
|
|
7
|
|
18,762
|
|
136
|
|
||||||
Other
|
1,114
|
|
3
|
|
|
—
|
|
—
|
|
1,114
|
|
3
|
|
||||||
Total available-for-sale debt securities
|
80,503
|
|
2,438
|
|
|
3,319
|
|
178
|
|
83,822
|
|
2,616
|
|
||||||
Available-for-sale equity securities
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Held-to-maturity securities
|
$
|
20,745
|
|
$
|
317
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
20,745
|
|
$
|
317
|
|
Total securities with gross unrealized losses
|
$
|
101,248
|
|
$
|
2,755
|
|
|
$
|
3,319
|
|
$
|
178
|
|
$
|
104,567
|
|
$
|
2,933
|
|
|
|
|
|
|
|
By remaining maturity
March 31, 2014
(in millions)
|
Due in one
year or less
|
Due after one year through five years
|
Due after five years through 10 years
|
Due after
10 years
(c)
|
Total
|
||||||||||
Available-for-sale debt securities
|
|
|
|
|
|
||||||||||
Mortgage-backed securities
(a)
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
700
|
|
$
|
14,103
|
|
$
|
5,971
|
|
$
|
114,139
|
|
$
|
134,913
|
|
Fair value
|
707
|
|
14,639
|
|
6,055
|
|
116,932
|
|
138,333
|
|
|||||
Average yield
(b)
|
2.31
|
%
|
2.09
|
%
|
2.87
|
%
|
2.93
|
%
|
2.83
|
%
|
|||||
U.S. Treasury and government agencies
(a)
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
9,759
|
|
$
|
7,495
|
|
$
|
1,443
|
|
$
|
929
|
|
$
|
19,626
|
|
Fair value
|
9,774
|
|
7,503
|
|
1,449
|
|
985
|
|
19,711
|
|
|||||
Average yield
(b)
|
0.39
|
%
|
0.38
|
%
|
0.38
|
%
|
0.77
|
%
|
0.40
|
%
|
|||||
Obligations of U.S. states and municipalities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
51
|
|
$
|
426
|
|
$
|
1,311
|
|
$
|
23,497
|
|
$
|
25,285
|
|
Fair value
|
52
|
|
449
|
|
1,354
|
|
24,364
|
|
26,219
|
|
|||||
Average yield
(b)
|
3.28
|
%
|
5.16
|
%
|
4.44
|
%
|
6.82
|
%
|
6.66
|
%
|
|||||
Certificates of deposit
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
1,458
|
|
$
|
51
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,509
|
|
Fair value
|
1,459
|
|
52
|
|
—
|
|
—
|
|
1,511
|
|
|||||
Average yield
(b)
|
6.44
|
%
|
3.28
|
%
|
—
|
%
|
—
|
%
|
6.33
|
%
|
|||||
Non-U.S. government debt securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
11,575
|
|
$
|
14,056
|
|
$
|
25,796
|
|
$
|
3,052
|
|
$
|
54,479
|
|
Fair value
|
11,617
|
|
14,238
|
|
26,361
|
|
3,185
|
|
55,401
|
|
|||||
Average yield
(b)
|
3.10
|
%
|
2.49
|
%
|
1.37
|
%
|
1.46
|
%
|
2.03
|
%
|
|||||
Corporate debt securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
4,229
|
|
$
|
10,231
|
|
$
|
5,827
|
|
$
|
—
|
|
$
|
20,287
|
|
Fair value
|
4,245
|
|
10,545
|
|
6,024
|
|
—
|
|
20,814
|
|
|||||
Average yield
(b)
|
1.85
|
%
|
2.49
|
%
|
2.55
|
%
|
—
|
%
|
2.38
|
%
|
|||||
Asset-backed securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
31
|
|
$
|
2,409
|
|
$
|
16,038
|
|
$
|
20,755
|
|
$
|
39,233
|
|
Fair value
|
31
|
|
2,433
|
|
16,149
|
|
20,923
|
|
39,536
|
|
|||||
Average yield
(b)
|
2.15
|
%
|
2.05
|
%
|
1.83
|
%
|
1.80
|
%
|
1.82
|
%
|
|||||
Total available-for-sale debt securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
27,803
|
|
$
|
48,771
|
|
$
|
56,386
|
|
$
|
162,372
|
|
$
|
295,332
|
|
Fair value
|
27,885
|
|
49,859
|
|
57,392
|
|
166,389
|
|
301,525
|
|
|||||
Average yield
(b)
|
2.12
|
%
|
2.05
|
%
|
1.83
|
%
|
3.30
|
%
|
2.70
|
%
|
|||||
Available-for-sale equity securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,040
|
|
$
|
3,040
|
|
Fair value
|
—
|
|
—
|
|
—
|
|
3,054
|
|
3,054
|
|
|||||
Average yield
(b)
|
—
|
%
|
—
|
%
|
—
|
%
|
0.17
|
%
|
0.17
|
%
|
|||||
Total available-for-sale securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
27,803
|
|
$
|
48,771
|
|
$
|
56,386
|
|
$
|
165,412
|
|
$
|
298,372
|
|
Fair value
|
27,885
|
|
49,859
|
|
57,392
|
|
169,443
|
|
304,579
|
|
|||||
Average yield
(b)
|
2.12
|
%
|
2.05
|
%
|
1.83
|
%
|
3.25
|
%
|
2.68
|
%
|
|||||
Total held-to-maturity securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
—
|
|
$
|
57
|
|
$
|
325
|
|
$
|
46,889
|
|
$
|
47,271
|
|
Fair value
|
—
|
|
57
|
|
331
|
|
47,171
|
|
47,559
|
|
|||||
Average yield
(b)
|
—
|
%
|
4.13
|
%
|
4.70
|
%
|
3.91
|
%
|
3.92
|
%
|
(a)
|
U.S. government-sponsored enterprises were the only issuers whose securities exceeded
10%
of
JPMorgan Chase
’s total stockholders’ equity at March 31, 2014.
|
(b)
|
Average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable. The effective yield excludes unscheduled principal prepayments; and accordingly, actual maturities of securities may differ from their contractual or expected maturities as certain securities may be prepaid.
|
(c)
|
Includes securities with no stated maturity. Substantially all of the Firm’s residential mortgage-backed securities and collateralized mortgage obligations are due in
10 years
or more, based on contractual maturity. The estimated duration, which reflects anticipated future prepayments based on a consensus of dealers in the market, is approximately
six years
for agency residential mortgage-backed securities,
two years
for agency residential collateralized mortgage obligations and
four years
for nonagency residential collateralized mortgage obligations.
|
|
March 31, 2014
|
|
|
December 31, 2013
|
|
||||||||||||||||
(in millions)
|
Gross asset balance
|
Amounts netted on the Consolidated Balance Sheets
|
Net asset balance
|
|
|
Gross asset balance
|
Amounts netted on the Consolidated Balance Sheets
|
Net asset balance
|
|
||||||||||||
Securities purchased under resale agreements
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities purchased under resale agreements with an appropriate legal opinion
|
$
|
363,466
|
|
$
|
(107,766
|
)
|
$
|
255,700
|
|
|
|
$
|
354,814
|
|
$
|
(115,408
|
)
|
$
|
239,406
|
|
|
Securities purchased under resale agreements where an appropriate legal opinion has not been either sought or obtained
|
9,041
|
|
|
9,041
|
|
|
|
8,279
|
|
|
8,279
|
|
|
||||||||
Total securities purchased under resale agreements
|
$
|
372,507
|
|
$
|
(107,766
|
)
|
$
|
264,741
|
|
(a)
|
|
$
|
363,093
|
|
$
|
(115,408
|
)
|
$
|
247,685
|
|
(a)
|
Securities borrowed
|
$
|
122,021
|
|
N/A
|
|
$
|
122,021
|
|
(b)(c)
|
|
$
|
111,465
|
|
N/A
|
|
$
|
111,465
|
|
(b)(c)
|
(a)
|
At
March 31, 2014
, and
December 31, 2013
, included securities purchased under resale agreements of
$25.7 billion
and
$25.1 billion
, respectively, accounted for at fair value.
|
(b)
|
At
March 31, 2014
, and
December 31, 2013
, included securities borrowed of
$2.4 billion
and
$3.7 billion
, respectively, accounted for at fair value.
|
(c)
|
Included
$25.3 billion
and
$26.9 billion
at
March 31, 2014
, and
December 31, 2013
, respectively, of securities borrowed where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement.
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||
|
|
|
Amounts not nettable on the Consolidated Balance Sheets
(a)
|
|
|
|
|
Amounts not nettable on the Consolidated Balance Sheets
(a)
|
|
||||||||||||||||||
(in millions)
|
Net asset balance
|
|
Financial instruments
(b)
|
Cash collateral
|
Net exposure
|
|
Net asset balance
|
|
Financial instruments
(b)
|
Cash collateral
|
Net exposure
|
||||||||||||||||
Securities purchased under resale agreements with an appropriate legal opinion
|
$
|
255,700
|
|
|
$
|
(252,551
|
)
|
$
|
(122
|
)
|
$
|
3,027
|
|
|
$
|
239,406
|
|
|
$
|
(234,495
|
)
|
$
|
(98
|
)
|
$
|
4,813
|
|
Securities borrowed
|
$
|
96,747
|
|
|
$
|
(94,488
|
)
|
$
|
—
|
|
$
|
2,259
|
|
|
$
|
84,531
|
|
|
$
|
(81,127
|
)
|
$
|
—
|
|
$
|
3,404
|
|
(a)
|
For some counterparties, the sum of the financial instruments and cash collateral not nettable on the Consolidated Balance Sheets may exceed the net asset balance. Where this is the case the total amounts reported in these two columns are limited to the balance of the net reverse repurchase agreement or securities borrowed asset with that counterparty. As a result a net exposure amount is reported even though the Firm, on an aggregate basis for its securities purchased under resale agreements and securities borrowed, has received securities collateral with a total fair value that is greater than the funds provided to counterparties.
|
(b)
|
Includes financial instrument collateral received, repurchase liabilities and securities loaned liabilities with an appropriate legal opinion with respect to the master netting agreement; these amounts are not presented net on the Consolidated Balance Sheets because other U.S. GAAP netting criteria are not met.
|
|
March 31, 2014
|
|
|
December 31, 2013
|
|
|||||||||||||||||
(in millions)
|
Gross liability balance
|
Amounts netted on the Consolidated Balance Sheets
|
Net liability balance
|
|
|
Gross liability balance
|
|
Amounts netted on the Consolidated Balance Sheets
|
Net liability balance
|
|
||||||||||||
Securities sold under repurchase agreements
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities sold under repurchase agreements with an appropriate legal opinion
|
$
|
283,402
|
|
$
|
(107,766
|
)
|
$
|
175,636
|
|
|
|
$
|
257,630
|
|
(f)
|
$
|
(115,408
|
)
|
$
|
142,222
|
|
(f)
|
Securities sold under repurchase agreements where an appropriate legal opinion has not been either sought or obtained
(a)
|
17,674
|
|
|
17,674
|
|
|
|
18,143
|
|
(f)
|
|
18,143
|
|
(f)
|
||||||||
Total securities sold under repurchase agreements
|
$
|
301,076
|
|
$
|
(107,766
|
)
|
$
|
193,310
|
|
(c)
|
|
$
|
275,773
|
|
|
$
|
(115,408
|
)
|
$
|
160,365
|
|
(c)
|
Securities loaned
(b)
|
$
|
29,029
|
|
N/A
|
|
$
|
29,029
|
|
(d)(e)
|
|
$
|
25,769
|
|
|
N/A
|
|
$
|
25,769
|
|
(d)(e)
|
(a)
|
Includes repurchase agreements that are not subject to a master netting agreement but do provide rights to collateral.
|
(b)
|
Included securities-for-securities borrow vs. pledge transactions of
$5.7 billion
and
$5.8 billion
at
March 31, 2014
, and
December 31, 2013
, respectively, when acting as lender and as presented within other liabilities in the Consolidated Balance Sheets.
|
(c)
|
At
March 31, 2014
, and
December 31, 2013
, included securities sold under repurchase agreements of
$4.9 billion
and
$4.9 billion
, respectively, accounted for at fair value.
|
(d)
|
At
December 31, 2013
, included securities loaned of
$483 million
accounted for at fair value; there were no securities loaned accounted for at fair value as of
March 31, 2014
.
|
(e)
|
Included
$144 million
and
$397 million
at
March 31, 2014
, and
December 31, 2013
, respectively, of securities loaned where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement.
|
(f)
|
The prior period amounts have been revised with a corresponding impact in the table below. This revision had no impact on the Firm’s Consolidated Balance Sheets or its results of operations.
|
|
March 31, 2014
|
|
December 31, 2013
|
|||||||||||||||||||||||||
|
|
|
Amounts not nettable on the Consolidated balance sheets
(a)
|
|
|
|
|
Amounts not nettable on the Consolidated balance sheets
(a)
|
|
|||||||||||||||||||
(in millions)
|
Net liability balance
|
|
Financial instruments
(b)
|
Cash collateral
|
Net amount
(c)
|
|
Net liability balance
|
|
Financial instruments
(b)
|
|
Cash collateral
|
Net amount
(c)
|
||||||||||||||||
Securities sold under repurchase agreements with an appropriate legal opinion
|
$
|
175,636
|
|
|
$
|
(173,554
|
)
|
$
|
(361
|
)
|
$
|
1,721
|
|
|
$
|
142,222
|
|
(d)
|
$
|
(139,051
|
)
|
(d)
|
$
|
(450
|
)
|
$
|
2,721
|
|
Securities loaned
|
$
|
28,885
|
|
|
$
|
(28,663
|
)
|
$
|
—
|
|
$
|
222
|
|
|
$
|
25,372
|
|
|
$
|
(25,125
|
)
|
|
$
|
—
|
|
$
|
247
|
|
(a)
|
For some counterparties the sum of the financial instruments and cash collateral not nettable on the Consolidated Balance Sheets may exceed the net liability balance. Where this is the case the total amounts reported in these two columns are limited to the balance of the net repurchase agreement or securities loaned liability with that counterparty.
|
(b)
|
Includes financial instrument collateral transferred, reverse repurchase assets and securities borrowed assets with an appropriate legal opinion with respect to the master netting agreement; these amounts are not presented net on the Consolidated Balance Sheets because other U.S. GAAP netting criteria are not met.
|
(c)
|
Net amount represents exposure of counterparties to the Firm.
|
(d)
|
The prior period amounts have been revised with a corresponding impact in the table above. This revision had no impact on the Firm’s Consolidated Balance Sheets or its results of operations.
|
•
|
Originated or purchased loans held-for-investment (i.e., “retained”), other than purchased credit-impaired (“PCI”) loans
|
•
|
Loans held-for-sale
|
•
|
Loans at fair value
|
•
|
PCI loans held-for-investment
|
Consumer, excluding
credit card
(a)
|
|
Credit card
|
|
Wholesale
(c)
|
Residential real estate – excluding PCI
• Home equity – senior lien
• Home equity – junior lien
• Prime mortgage, including
option ARMs
• Subprime mortgage
Other consumer loans
• Auto
(b)
• Business banking
(b)
• Student and other
Residential real estate – PCI
• Home equity
• Prime mortgage
• Subprime mortgage
• Option ARMs
|
|
• Credit card loans
|
|
• Commercial and industrial
• Real estate
• Financial institutions
• Government agencies
• Other
(d)
|
(a)
|
Includes loans held in CCB, and prime mortgage loans held in the AM business segment and in Corporate/Private Equity.
|
(b)
|
Includes certain business banking and auto dealer risk-rated loans that apply the wholesale methodology for determining the allowance for loan losses; these loans are managed by CCB, and therefore, for consistency in presentation, are included with the other consumer loan classes.
|
(c)
|
Includes loans held in CIB, CB and AM business segments and in Corporate/Private Equity. Classes are internally defined and may not align with regulatory definitions.
|
(d)
|
Other primarily includes loans to SPEs and loans to private banking clients. See Note 1 on
pages 189–191
of
JPMorgan Chase
’s
2013
Annual Report
for additional information on SPEs.
|
March 31, 2014
|
Consumer, excluding credit card
|
Credit card
(a)
|
Wholesale
|
Total
|
|
||||||||
(in millions)
|
|
||||||||||||
Retained
|
$
|
287,930
|
|
$
|
121,512
|
|
$
|
311,718
|
|
$
|
721,160
|
|
(b)
|
Held-for-sale
|
238
|
|
304
|
|
6,920
|
|
7,462
|
|
|
||||
At fair value
|
—
|
|
—
|
|
2,349
|
|
2,349
|
|
|
||||
Total
|
$
|
288,168
|
|
$
|
121,816
|
|
$
|
320,987
|
|
$
|
730,971
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2013
|
Consumer, excluding credit card
|
Credit card
(a)
|
Wholesale
|
Total
|
|
||||||||
(in millions)
|
|
||||||||||||
Retained
|
$
|
288,449
|
|
$
|
127,465
|
|
$
|
308,263
|
|
$
|
724,177
|
|
(b)
|
Held-for-sale
|
614
|
|
326
|
|
11,290
|
|
12,230
|
|
|
||||
At fair value
|
—
|
|
—
|
|
2,011
|
|
2,011
|
|
|
||||
Total
|
$
|
289,063
|
|
$
|
127,791
|
|
$
|
321,564
|
|
$
|
738,418
|
|
|
(a)
|
Includes billed finance charges and fees net of an allowance for uncollectible amounts.
|
(b)
|
Loans (other than PCI loans and those for which the fair value option has been elected) are presented net of unearned income, unamortized discounts and premiums, and net deferred loan costs of
$1.8 billion
and
$1.9 billion
at
March 31, 2014
, and
December 31, 2013
, respectively.
|
|
|
2014
|
|
2013
|
||||||||||||||||||||||||
Three months ended
March 31, (in millions) |
|
Consumer, excluding credit card
|
|
Credit card
|
Wholesale
|
Total
|
|
Consumer, excluding credit card
|
|
Credit card
|
Wholesale
|
Total
|
||||||||||||||||
Purchases
|
|
$
|
1,582
|
|
(a)(b)
|
$
|
—
|
|
$
|
121
|
|
$
|
1,703
|
|
|
$
|
2,625
|
|
(a)(b)
|
$
|
—
|
|
$
|
95
|
|
$
|
2,720
|
|
Sales
|
|
891
|
|
|
—
|
|
2,356
|
|
3,247
|
|
|
1,429
|
|
|
—
|
|
1,153
|
|
2,582
|
|
||||||||
Retained loans reclassified to held-for-sale
|
|
—
|
|
|
—
|
|
297
|
|
297
|
|
|
—
|
|
|
—
|
|
344
|
|
344
|
|
(a)
|
Purchases predominantly represent the Firm’s voluntary repurchase of certain delinquent loans from loan pools as permitted by Ginnie Mae guidelines. The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with applicable requirements of Ginnie Mae, the Federal Housing Administration (“FHA”), Rural Housing Services (“RHS”) and/or the U.S. Department of Veterans Affairs (“VA”).
|
(b)
|
Excluded retained loans purchased from correspondents that were originated in accordance with the Firm’s underwriting standards. Such purchases were
$1.7 billion
and
$957 million
for the
three months ended
March 31, 2014
and
2013
, respectively.
|
|
Three months ended March 31,
|
|||||
(in millions)
|
2014
|
2013
|
||||
Net gains/(losses) on sales of loans (including lower of cost or fair value adjustments)
(a)
|
|
|
||||
Consumer, excluding credit card
|
$
|
42
|
|
$
|
144
|
|
Credit card
|
—
|
|
—
|
|
||
Wholesale
|
24
|
|
7
|
|
||
Total net gains/(losses) on sales of loans (including lower of cost or fair value adjustments)
|
$
|
66
|
|
$
|
151
|
|
(a)
|
Excludes sales related to loans accounted for at fair value.
|
(in millions)
|
March 31,
2014 |
December 31,
2013 |
||||
Residential real estate –
excluding PCI
|
|
|
||||
Home equity:
|
|
|
||||
Senior lien
|
$
|
16,635
|
|
$
|
17,113
|
|
Junior lien
|
39,496
|
|
40,750
|
|
||
Mortgages:
|
|
|
||||
Prime, including option ARMs
|
89,938
|
|
87,162
|
|
||
Subprime
|
6,869
|
|
7,104
|
|
||
Other consumer loans
|
|
|
||||
Auto
|
52,952
|
|
52,757
|
|
||
Business banking
|
18,992
|
|
18,951
|
|
||
Student and other
|
11,442
|
|
11,557
|
|
||
Residential real estate – PCI
|
|
|
||||
Home equity
|
18,525
|
|
18,927
|
|
||
Prime mortgage
|
11,658
|
|
12,038
|
|
||
Subprime mortgage
|
4,062
|
|
4,175
|
|
||
Option ARMs
|
17,361
|
|
17,915
|
|
||
Total retained loans
|
$
|
287,930
|
|
$
|
288,449
|
|
Residential real estate – excluding PCI loans
|
|
||||||||||||||||||
|
Home equity
|
|
|||||||||||||||||
(in millions, except ratios)
|
Senior lien
|
|
|
Junior lien
|
|
||||||||||||||
March 31,
2014 |
|
|
December 31,
2013 |
|
|
March 31,
2014 |
|
|
December 31,
2013 |
|
|||||||||
Loan delinquency
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Current
|
$
|
16,039
|
|
|
|
$
|
16,470
|
|
|
|
$
|
38,704
|
|
|
|
$
|
39,864
|
|
|
30–149 days past due
|
250
|
|
|
|
298
|
|
|
|
566
|
|
|
|
662
|
|
|
||||
150 or more days past due
|
346
|
|
|
|
345
|
|
|
|
226
|
|
|
|
224
|
|
|
||||
Total retained loans
|
$
|
16,635
|
|
|
|
$
|
17,113
|
|
|
|
$
|
39,496
|
|
|
|
$
|
40,750
|
|
|
% of 30+ days past due to total retained loans
|
3.58
|
%
|
|
|
3.76
|
%
|
|
|
2.01
|
%
|
|
|
2.17
|
%
|
|
||||
90 or more days past due and still accruing
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
90 or more days past due and government guarantee
d
(b)
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
||||
Nonaccrual loans
|
920
|
|
|
|
932
|
|
|
|
1,806
|
|
|
|
1,876
|
|
|
||||
Current estimated LTV ratios
(c)(d)(e)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Greater than 125% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equal to or greater than 660
|
$
|
26
|
|
|
|
$
|
40
|
|
|
|
$
|
798
|
|
|
|
$
|
1,101
|
|
|
Less than 660
|
16
|
|
|
|
22
|
|
|
|
256
|
|
|
|
346
|
|
|
||||
101% to 125% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equal to or greater than 660
|
167
|
|
|
|
212
|
|
|
|
4,045
|
|
|
|
4,645
|
|
|
||||
Less than 660
|
88
|
|
|
|
107
|
|
|
|
1,230
|
|
|
|
1,407
|
|
|
||||
80% to 100% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equal to or greater than 660
|
747
|
|
|
|
858
|
|
|
|
7,649
|
|
|
|
7,995
|
|
|
||||
Less than 660
|
299
|
|
|
|
326
|
|
|
|
2,116
|
|
|
|
2,128
|
|
|
||||
Less than 80% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equal to or greater than 660
|
12,934
|
|
|
|
13,186
|
|
|
|
19,899
|
|
|
|
19,732
|
|
|
||||
Less than 660
|
2,358
|
|
|
|
2,362
|
|
|
|
3,503
|
|
|
|
3,396
|
|
|
||||
U.S. government-guaranteed
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
||||
Total retained loans
|
$
|
16,635
|
|
|
|
$
|
17,113
|
|
|
|
$
|
39,496
|
|
|
|
$
|
40,750
|
|
|
Geographic region
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
California
|
$
|
2,339
|
|
|
|
$
|
2,397
|
|
|
|
$
|
8,976
|
|
|
|
$
|
9,240
|
|
|
New York
|
2,671
|
|
|
|
2,732
|
|
|
|
8,187
|
|
|
|
8,429
|
|
|
||||
Illinois
|
1,218
|
|
|
|
1,248
|
|
|
|
2,737
|
|
|
|
2,815
|
|
|
||||
Florida
|
828
|
|
|
|
847
|
|
|
|
2,096
|
|
|
|
2,167
|
|
|
||||
Texas
|
1,961
|
|
|
|
2,044
|
|
|
|
1,151
|
|
|
|
1,199
|
|
|
||||
New Jersey
|
618
|
|
|
|
630
|
|
|
|
2,375
|
|
|
|
2,442
|
|
|
||||
Arizona
|
985
|
|
|
|
1,019
|
|
|
|
1,764
|
|
|
|
1,827
|
|
|
||||
Washington
|
543
|
|
|
|
555
|
|
|
|
1,338
|
|
|
|
1,378
|
|
|
||||
Michigan
|
776
|
|
|
|
799
|
|
|
|
942
|
|
|
|
976
|
|
|
||||
Ohio
|
1,258
|
|
|
|
1,298
|
|
|
|
869
|
|
|
|
907
|
|
|
||||
All other
(f)
|
3,438
|
|
|
|
3,544
|
|
|
|
9,061
|
|
|
|
9,370
|
|
|
||||
Total retained loans
|
$
|
16,635
|
|
|
|
$
|
17,113
|
|
|
|
$
|
39,496
|
|
|
|
$
|
40,750
|
|
|
(a)
|
Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included
$5.1 billion
and
$4.7 billion
;
30
–
149
days past due included
$2.1 billion
and
$2.4 billion
; and
150
or more days past due included
$6.5 billion
and
$6.6 billion
at
March 31, 2014
, and
December 31, 2013
, respectively.
|
(b)
|
These balances, which are
90 days
or more past due but insured by U.S. government agencies, are excluded from nonaccrual loans. In predominately all cases,
100%
of the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing guidelines. These amounts have been excluded from nonaccrual loans based upon the government guarantee. At
March 31, 2014
, and
December 31, 2013
, these balances included
$4.5 billion
and
$4.7 billion
, respectively, of loans that are no longer accruing interest because interest has been curtailed by the U.S. government agencies although, in predominantly all cases,
100%
of the principal is still insured. For the remaining balance, interest is being accrued at the guaranteed reimbursement rate.
|
(c)
|
Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates.
|
(d)
|
Junior lien represents combined LTV, which considers all available lien positions, as well as unused lines, related to the property. All other products are presented without consideration of subordinate liens on the property.
|
(e)
|
Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
|
(f)
|
At both
March 31, 2014
, and
December 31, 2013
, included mortgage loans insured by U.S. government agencies of
$13.7 billion
.
|
(g)
|
At
March 31, 2014
, and
December 31, 2013
, excluded mortgage loans insured by U.S. government agencies of
$8.6 billion
and
$9.0 billion
, respectively. These amounts have been excluded from nonaccrual loans based upon the government guarantee.
|
Mortgages
|
|
|
|
|
|
||||||||||||||||||||||||
Prime, including option ARMs
|
|
|
Subprime
|
|
|
Total residential real estate – excluding PCI
|
|
|
|||||||||||||||||||||
March 31,
2014 |
|
|
December 31,
2013 |
|
|
March 31,
2014 |
|
|
December 31,
2013 |
|
|
March 31,
2014 |
|
|
December 31,
2013 |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
$
|
79,492
|
|
|
|
$
|
76,108
|
|
|
|
$
|
5,837
|
|
|
|
$
|
5,956
|
|
|
|
$
|
140,072
|
|
|
|
$
|
138,398
|
|
|
|
2,787
|
|
|
|
3,155
|
|
|
|
571
|
|
|
|
646
|
|
|
|
4,174
|
|
|
|
4,761
|
|
|
|
||||||
7,659
|
|
|
|
7,899
|
|
|
|
461
|
|
|
|
502
|
|
|
|
8,692
|
|
|
|
8,970
|
|
|
|
||||||
$
|
89,938
|
|
|
|
$
|
87,162
|
|
|
|
$
|
6,869
|
|
|
|
$
|
7,104
|
|
|
|
$
|
152,938
|
|
|
|
$
|
152,129
|
|
|
|
2.04
|
%
|
(g)
|
|
2.32
|
%
|
(g)
|
|
15.02
|
%
|
|
|
16.16
|
%
|
|
|
2.78
|
%
|
(g)
|
|
3.09
|
%
|
(g)
|
|
||||||
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
7,533
|
|
|
|
7,823
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,533
|
|
|
|
7,823
|
|
|
|
||||||
2,650
|
|
|
|
2,666
|
|
|
|
1,397
|
|
|
|
1,390
|
|
|
|
6,773
|
|
|
|
6,864
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
$
|
1,102
|
|
|
|
$
|
1,084
|
|
|
|
$
|
30
|
|
|
|
$
|
52
|
|
|
|
$
|
1,956
|
|
|
|
$
|
2,277
|
|
|
|
246
|
|
|
|
303
|
|
|
|
146
|
|
|
|
197
|
|
|
|
664
|
|
|
|
868
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
1,149
|
|
|
|
1,433
|
|
|
|
212
|
|
|
|
249
|
|
|
|
5,573
|
|
|
|
6,539
|
|
|
|
||||||
538
|
|
|
|
687
|
|
|
|
510
|
|
|
|
597
|
|
|
|
2,366
|
|
|
|
2,798
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
4,189
|
|
|
|
4,528
|
|
|
|
589
|
|
|
|
614
|
|
|
|
13,174
|
|
|
|
13,995
|
|
|
|
||||||
1,379
|
|
|
|
1,579
|
|
|
|
1,065
|
|
|
|
1,141
|
|
|
|
4,859
|
|
|
|
5,174
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
62,297
|
|
|
|
58,477
|
|
|
|
1,998
|
|
|
|
1,961
|
|
|
|
97,128
|
|
|
|
93,356
|
|
|
|
||||||
5,307
|
|
|
|
5,359
|
|
|
|
2,319
|
|
|
|
2,293
|
|
|
|
13,487
|
|
|
|
13,410
|
|
|
|
||||||
13,731
|
|
|
|
13,712
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13,731
|
|
|
|
13,712
|
|
|
|
||||||
$
|
89,938
|
|
|
|
$
|
87,162
|
|
|
|
$
|
6,869
|
|
|
|
$
|
7,104
|
|
|
|
$
|
152,938
|
|
|
|
$
|
152,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
$
|
22,861
|
|
|
|
$
|
21,876
|
|
|
|
$
|
1,041
|
|
|
|
$
|
1,069
|
|
|
|
$
|
35,217
|
|
|
|
$
|
34,582
|
|
|
|
14,522
|
|
|
|
14,085
|
|
|
|
908
|
|
|
|
942
|
|
|
|
26,288
|
|
|
|
26,188
|
|
|
|
||||||
5,427
|
|
|
|
5,216
|
|
|
|
270
|
|
|
|
280
|
|
|
|
9,652
|
|
|
|
9,559
|
|
|
|
||||||
4,673
|
|
|
|
4,598
|
|
|
|
855
|
|
|
|
885
|
|
|
|
8,452
|
|
|
|
8,497
|
|
|
|
||||||
3,763
|
|
|
|
3,565
|
|
|
|
212
|
|
|
|
220
|
|
|
|
7,087
|
|
|
|
7,028
|
|
|
|
||||||
2,758
|
|
|
|
2,679
|
|
|
|
323
|
|
|
|
339
|
|
|
|
6,074
|
|
|
|
6,090
|
|
|
|
||||||
1,449
|
|
|
|
1,385
|
|
|
|
141
|
|
|
|
144
|
|
|
|
4,339
|
|
|
|
4,375
|
|
|
|
||||||
2,010
|
|
|
|
1,951
|
|
|
|
146
|
|
|
|
150
|
|
|
|
4,037
|
|
|
|
4,034
|
|
|
|
||||||
1,029
|
|
|
|
998
|
|
|
|
172
|
|
|
|
178
|
|
|
|
2,919
|
|
|
|
2,951
|
|
|
|
||||||
483
|
|
|
|
466
|
|
|
|
156
|
|
|
|
161
|
|
|
|
2,766
|
|
|
|
2,832
|
|
|
|
||||||
30,963
|
|
|
|
30,343
|
|
|
|
2,645
|
|
|
|
2,736
|
|
|
|
46,107
|
|
|
|
45,993
|
|
|
|
||||||
$
|
89,938
|
|
|
|
$
|
87,162
|
|
|
|
$
|
6,869
|
|
|
|
$
|
7,104
|
|
|
|
$
|
152,938
|
|
|
|
$
|
152,129
|
|
|
|
|
|
Delinquencies
|
|
|
|
Total 30+ day delinquency rate
|
|||||||||||||
March 31, 2014
|
|
30–89 days past due
|
|
90–149 days past due
|
|
150+ days
past due
|
|
Total loans
|
|
||||||||||
(in millions, except ratios)
|
|
|
|
|
|
||||||||||||||
HELOCs:
(a)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Within the revolving period
(b)
|
|
$
|
282
|
|
|
$
|
96
|
|
|
$
|
154
|
|
|
$
|
30,208
|
|
|
1.76
|
%
|
Beyond the revolving period
|
|
67
|
|
|
32
|
|
|
56
|
|
|
5,560
|
|
|
2.79
|
|
||||
HELOANs
|
|
66
|
|
|
23
|
|
|
16
|
|
|
3,728
|
|
|
2.82
|
|
||||
Total
|
|
$
|
415
|
|
|
$
|
151
|
|
|
$
|
226
|
|
|
$
|
39,496
|
|
|
2.01
|
%
|
|
|
Delinquencies
|
|
|
|
Total 30+ day delinquency rate
|
|||||||||||||
December 31, 2013
|
|
30–89 days past due
|
|
90–149 days past due
|
|
150+ days
past due
|
|
Total loans
|
|
||||||||||
(in millions, except ratios)
|
|
|
|
|
|
||||||||||||||
HELOCs:
(a)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Within the revolving period
(b)
|
|
$
|
341
|
|
|
$
|
104
|
|
|
$
|
162
|
|
|
$
|
31,848
|
|
|
1.91
|
%
|
Beyond the revolving period
|
|
84
|
|
|
21
|
|
|
46
|
|
|
4,980
|
|
|
3.03
|
|
||||
HELOANs
|
|
86
|
|
|
26
|
|
|
16
|
|
|
3,922
|
|
|
3.26
|
|
||||
Total
|
|
$
|
511
|
|
|
$
|
151
|
|
|
$
|
224
|
|
|
$
|
40,750
|
|
|
2.17
|
%
|
|
Home equity
|
|
Mortgages
|
|
Total residential
real estate
– excluding PCI
|
|||||||||||||||||||||||||||||
(in millions)
|
Senior lien
|
|
Junior lien
|
|
Prime, including
option ARMs
|
|
Subprime
|
|
||||||||||||||||||||||||||
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|||||||||||||||||||||
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
With an allowance
|
$
|
561
|
|
$
|
567
|
|
|
$
|
729
|
|
$
|
727
|
|
|
$
|
5,596
|
|
$
|
5,871
|
|
|
$
|
2,838
|
|
$
|
2,989
|
|
|
$
|
9,724
|
|
$
|
10,154
|
|
Without an allowance
(a)
|
575
|
|
579
|
|
|
590
|
|
592
|
|
|
1,298
|
|
1,133
|
|
|
787
|
|
709
|
|
|
3,250
|
|
3,013
|
|
||||||||||
Total impaired loans
(b)
|
$
|
1,136
|
|
$
|
1,146
|
|
|
$
|
1,319
|
|
$
|
1,319
|
|
|
$
|
6,894
|
|
$
|
7,004
|
|
|
$
|
3,625
|
|
$
|
3,698
|
|
|
$
|
12,974
|
|
$
|
13,167
|
|
Allowance for loan losses related to impaired loans
|
$
|
99
|
|
$
|
94
|
|
|
$
|
173
|
|
$
|
162
|
|
|
$
|
140
|
|
$
|
144
|
|
|
$
|
91
|
|
$
|
94
|
|
|
$
|
503
|
|
$
|
494
|
|
Unpaid principal balance of impaired loans
(c)
|
1,503
|
|
1,515
|
|
|
2,646
|
|
2,625
|
|
|
8,832
|
|
8,990
|
|
|
5,340
|
|
5,461
|
|
|
18,321
|
|
18,591
|
|
||||||||||
Impaired loans on nonaccrual status
(d)
|
636
|
|
641
|
|
|
663
|
|
666
|
|
|
1,796
|
|
1,737
|
|
|
1,167
|
|
1,127
|
|
|
4,262
|
|
4,171
|
|
(a)
|
Represents collateral-dependent residential mortgage loans that are charged off to the fair value of the underlying collateral less cost to sell. The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower (“Chapter 7 loans”) as collateral-dependent nonaccrual TDRs, regardless of their delinquency status.
|
(b)
|
At
March 31, 2014
, and
December 31, 2013
,
$7.4 billion
and
$7.6 billion
, respectively, of loans modified subsequent to repurchase from Government National Mortgage Association (“Ginnie Mae”) in accordance with the standards of the appropriate government agency (i.e., FHA, VA, RHS) are not included in the table above. When such loans perform subsequent to modification in accordance with Ginnie Mae guidelines, they are generally sold back into Ginnie Mae loan pools. Modified loans that do not re-perform become subject to foreclosure.
|
(c)
|
Represents the contractual amount of principal owed at
March 31, 2014
, and
December 31, 2013
. The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs, net deferred loan fees or costs; and unamortized discounts or premiums on purchased loans.
|
(d)
|
As of
March 31, 2014
, and
December 31, 2013
, nonaccrual loans included
$3.2 billion
and
$3.0 billion
, respectively, of TDRs for which the borrowers were less than
90 days
past due. For additional information about loans modified in a TDR that are on nonaccrual status refer to the Loan accounting framework in Note 14 on
pages 258–283
of
JPMorgan Chase
’s
2013
Annual Report
.
|
Three months ended March 31,
|
Average impaired loans
|
|
Interest income on
impaired loans (a) |
|
Interest income on impaired
loans on a cash basis (a) |
|||||||||||||||
(in millions)
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
||||||||||||
Home equity
|
|
|
|
|
|
|
|
|
||||||||||||
Senior lien
|
$
|
1,143
|
|
$
|
1,139
|
|
|
$
|
14
|
|
$
|
15
|
|
|
$
|
9
|
|
$
|
10
|
|
Junior lien
|
1,321
|
|
1,272
|
|
|
21
|
|
20
|
|
|
14
|
|
13
|
|
||||||
Mortgages
|
|
|
|
|
|
|
|
|
||||||||||||
Prime, including option ARMs
|
6,956
|
|
7,187
|
|
|
68
|
|
69
|
|
|
13
|
|
14
|
|
||||||
Subprime
|
3,667
|
|
3,827
|
|
|
49
|
|
50
|
|
|
13
|
|
15
|
|
||||||
Total residential real estate – excluding PCI
|
$
|
13,087
|
|
$
|
13,425
|
|
|
$
|
152
|
|
$
|
154
|
|
|
$
|
49
|
|
$
|
52
|
|
(a)
|
Generally, interest income on loans modified in TDRs is recognized on a cash basis until such time as the borrower has made a minimum of
six
payments under the new terms.
|
Three months ended
March 31, (in millions) |
Home equity
|
|
Mortgages
|
|
Total residential
real estate – excluding PCI
|
|||||||||||||||||||||||||||||
Senior lien
|
|
Junior lien
|
|
Prime, including option ARMs
|
|
Subprime
|
|
|||||||||||||||||||||||||||
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|||||||||||||||||||||
Beginning balance of TDRs
|
$
|
1,146
|
|
$
|
1,092
|
|
|
$
|
1,319
|
|
$
|
1,223
|
|
|
$
|
7,004
|
|
$
|
7,118
|
|
|
$
|
3,698
|
|
$
|
3,812
|
|
|
$
|
13,167
|
|
$
|
13,245
|
|
New TDRs
|
27
|
|
101
|
|
|
58
|
|
135
|
|
|
67
|
|
310
|
|
|
28
|
|
128
|
|
|
180
|
|
674
|
|
||||||||||
Charge-offs post-modification
(a)
|
(6
|
)
|
(10
|
)
|
|
(19
|
)
|
(33
|
)
|
|
(7
|
)
|
(19
|
)
|
|
(22
|
)
|
(38
|
)
|
|
(54
|
)
|
(100
|
)
|
||||||||||
Foreclosures and other liquidations (e.g., short sales)
|
(6
|
)
|
(4
|
)
|
|
(2
|
)
|
(4
|
)
|
|
(28
|
)
|
(35
|
)
|
|
(12
|
)
|
(19
|
)
|
|
(48
|
)
|
(62
|
)
|
||||||||||
Principal payments and other
|
(25
|
)
|
(24
|
)
|
|
(37
|
)
|
(35
|
)
|
|
(142
|
)
|
(151
|
)
|
|
(67
|
)
|
(40
|
)
|
|
(271
|
)
|
(250
|
)
|
||||||||||
Ending balance of TDRs
|
$
|
1,136
|
|
$
|
1,155
|
|
|
$
|
1,319
|
|
$
|
1,286
|
|
|
$
|
6,894
|
|
$
|
7,223
|
|
|
$
|
3,625
|
|
$
|
3,843
|
|
|
$
|
12,974
|
|
$
|
13,507
|
|
Permanent modifications
|
$
|
1,100
|
|
$
|
1,116
|
|
|
$
|
1,315
|
|
$
|
1,281
|
|
|
$
|
6,773
|
|
$
|
6,958
|
|
|
$
|
3,540
|
|
$
|
3,686
|
|
|
$
|
12,728
|
|
$
|
13,041
|
|
Trial modifications
|
$
|
36
|
|
$
|
39
|
|
|
$
|
4
|
|
$
|
5
|
|
|
$
|
121
|
|
$
|
265
|
|
|
$
|
85
|
|
$
|
157
|
|
|
$
|
246
|
|
$
|
466
|
|
(a)
|
Includes charge-offs on unsuccessful trial modifications.
|
Three months ended March 31,
|
Home equity
|
|
Mortgages
|
|
Total residential
real estate -
excluding PCI
|
|||||||||||||||||||
Senior lien
|
|
Junior lien
|
|
Prime, including option ARMs
|
|
Subprime
|
|
|||||||||||||||||
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|||||||||||
Number of loans approved for a trial modification
|
281
|
|
500
|
|
|
343
|
|
196
|
|
|
395
|
|
976
|
|
|
685
|
|
1,489
|
|
|
1,704
|
|
3,161
|
|
Number of loans permanently modified
|
295
|
|
545
|
|
|
958
|
|
1,316
|
|
|
531
|
|
1,476
|
|
|
767
|
|
1,689
|
|
|
2,551
|
|
5,026
|
|
Concession granted:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate reduction
|
65
|
%
|
73
|
%
|
|
84
|
%
|
90
|
%
|
|
60
|
%
|
75
|
%
|
|
60
|
%
|
69
|
%
|
|
70
|
%
|
77
|
%
|
Term or payment extension
|
80
|
|
73
|
|
|
83
|
|
78
|
|
|
88
|
|
69
|
|
|
72
|
|
50
|
|
|
80
|
|
65
|
|
Principal and/or interest deferred
|
15
|
|
10
|
|
|
21
|
|
23
|
|
|
33
|
|
27
|
|
|
20
|
|
11
|
|
|
22
|
|
19
|
|
Principal forgiveness
|
30
|
|
39
|
|
|
28
|
|
40
|
|
|
31
|
|
41
|
|
|
41
|
|
56
|
|
|
32
|
|
46
|
|
Other
(b)
|
1
|
|
—
|
|
|
—
|
|
—
|
|
|
17
|
|
24
|
|
|
13
|
|
16
|
|
|
7
|
|
12
|
|
(a)
|
Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages exceeds
100%
because predominantly all of the modifications include more than one type of concession. A significant portion of trial modifications include interest rate reductions and/or term or payment extensions.
|
(b)
|
Represents variable interest rate to fixed interest rate modifications.
|
Three months ended March 31,
(in millions, except weighted-average data and number of loans) |
Home equity
|
|
Mortgages
|
|
Total residential real estate – excluding PCI
|
|||||||||||||||||||||||||||||
Senior lien
|
|
Junior lien
|
|
Prime, including option ARMs
|
|
Subprime
|
|
|||||||||||||||||||||||||||
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|||||||||||||||||||||
Weighted-average interest rate of loans with interest rate reductions – before TDR
|
6.67
|
%
|
6.37
|
%
|
|
4.75
|
%
|
5.19
|
%
|
|
5.22
|
%
|
5.64
|
%
|
|
7.57
|
%
|
7.69
|
%
|
|
5.91
|
%
|
6.20
|
%
|
||||||||||
Weighted-average interest rate of loans with interest rate reductions – after TDR
|
3.02
|
|
3.51
|
|
|
1.81
|
|
2.16
|
|
|
2.76
|
|
2.87
|
|
|
3.41
|
|
3.58
|
|
|
2.77
|
|
3.03
|
|
||||||||||
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR
|
18
|
|
19
|
|
|
20
|
|
19
|
|
|
24
|
|
24
|
|
|
25
|
|
23
|
|
|
23
|
|
23
|
|
||||||||||
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR
|
31
|
|
31
|
|
|
35
|
|
33
|
|
|
37
|
|
36
|
|
|
36
|
|
34
|
|
|
36
|
|
35
|
|
||||||||||
Charge-offs recognized upon permanent modification
|
$
|
1
|
|
$
|
2
|
|
|
$
|
14
|
|
$
|
19
|
|
|
$
|
2
|
|
$
|
5
|
|
|
$
|
1
|
|
$
|
3
|
|
|
$
|
18
|
|
$
|
29
|
|
Principal deferred
|
1
|
|
2
|
|
|
3
|
|
7
|
|
|
13
|
|
35
|
|
|
7
|
|
10
|
|
|
24
|
|
54
|
|
||||||||||
Principal forgiven
|
3
|
|
10
|
|
|
11
|
|
16
|
|
|
17
|
|
73
|
|
|
21
|
|
84
|
|
|
52
|
|
183
|
|
||||||||||
Number of loans that redefaulted within one year of permanent modification
(a)
|
72
|
|
147
|
|
|
222
|
|
380
|
|
|
140
|
|
234
|
|
|
195
|
|
368
|
|
|
629
|
|
1,129
|
|
||||||||||
Balance of loans that redefaulted within one year of permanent modification
(a)
|
$
|
6
|
|
$
|
11
|
|
|
$
|
3
|
|
$
|
7
|
|
|
$
|
30
|
|
$
|
54
|
|
|
$
|
18
|
|
$
|
37
|
|
|
$
|
57
|
|
$
|
109
|
|
(a)
|
Represents loans permanently modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within
one year
of the modification. The dollar amounts presented represent the balance of such loans at the end of the reporting period in which such loans defaulted. For residential real estate loans modified in TDRs, payment default is deemed to occur when the loan becomes
two
contractual payments past due. In the event that a modified loan redefaults, it is probable that the loan will ultimately be liquidated through foreclosure or another similar type of liquidation transaction. Redefaults of loans modified within the last
12 months
may not be representative of ultimate redefault levels.
|
(in millions, except ratios)
|
Auto
|
|
Business banking
|
|
Student and other
|
|
Total other consumer
|
|
|||||||||||||||||||||||
Mar 31,
2014 |
|
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
|
Dec 31,
2013 |
|
Mar 31,
2014 |
|
Dec 31,
2013 |
|
|||||||||||||||||
Loan delinquency
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
$
|
52,467
|
|
|
$
|
52,152
|
|
|
$
|
18,605
|
|
$
|
18,511
|
|
|
$
|
10,458
|
|
|
$
|
10,529
|
|
|
$
|
81,530
|
|
|
$
|
81,192
|
|
|
30–119 days past due
|
447
|
|
|
599
|
|
|
226
|
|
280
|
|
|
653
|
|
|
660
|
|
|
1,326
|
|
|
1,539
|
|
|
||||||||
120 or more days past due
|
38
|
|
|
6
|
|
|
161
|
|
160
|
|
|
331
|
|
|
368
|
|
|
530
|
|
|
534
|
|
|
||||||||
Total retained loans
|
$
|
52,952
|
|
|
$
|
52,757
|
|
|
$
|
18,992
|
|
$
|
18,951
|
|
|
$
|
11,442
|
|
|
$
|
11,557
|
|
|
$
|
83,386
|
|
|
$
|
83,265
|
|
|
% of 30+ days past due to total retained loans
|
0.92
|
%
|
|
1.15
|
%
|
|
2.04
|
%
|
2.32
|
%
|
|
2.60
|
%
|
(d)
|
2.52
|
%
|
(d)
|
1.40
|
%
|
(d)
|
1.60
|
%
|
(d)
|
||||||||
90 or more days past due and still accruing
(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
387
|
|
|
$
|
428
|
|
|
$
|
387
|
|
|
$
|
428
|
|
|
Nonaccrual loans
|
137
|
|
|
161
|
|
|
356
|
|
385
|
|
|
104
|
|
|
86
|
|
|
597
|
|
|
632
|
|
|
||||||||
Geographic region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
California
|
$
|
5,763
|
|
|
$
|
5,615
|
|
|
$
|
2,494
|
|
$
|
2,374
|
|
|
$
|
1,112
|
|
|
$
|
1,112
|
|
|
$
|
9,369
|
|
|
$
|
9,101
|
|
|
New York
|
3,849
|
|
|
3,898
|
|
|
3,071
|
|
3,084
|
|
|
1,227
|
|
|
1,218
|
|
|
8,147
|
|
|
8,200
|
|
|
||||||||
Illinois
|
3,003
|
|
|
2,917
|
|
|
1,345
|
|
1,341
|
|
|
744
|
|
|
740
|
|
|
5,092
|
|
|
4,998
|
|
|
||||||||
Florida
|
2,051
|
|
|
2,012
|
|
|
679
|
|
646
|
|
|
537
|
|
|
539
|
|
|
3,267
|
|
|
3,197
|
|
|
||||||||
Texas
|
5,250
|
|
|
5,310
|
|
|
2,578
|
|
2,646
|
|
|
870
|
|
|
878
|
|
|
8,698
|
|
|
8,834
|
|
|
||||||||
New Jersey
|
1,954
|
|
|
2,014
|
|
|
395
|
|
392
|
|
|
396
|
|
|
397
|
|
|
2,745
|
|
|
2,803
|
|
|
||||||||
Arizona
|
1,885
|
|
|
1,855
|
|
|
1,030
|
|
1,046
|
|
|
254
|
|
|
252
|
|
|
3,169
|
|
|
3,153
|
|
|
||||||||
Washington
|
984
|
|
|
950
|
|
|
235
|
|
234
|
|
|
223
|
|
|
227
|
|
|
1,442
|
|
|
1,411
|
|
|
||||||||
Michigan
|
1,855
|
|
|
1,902
|
|
|
1,383
|
|
1,383
|
|
|
502
|
|
|
513
|
|
|
3,740
|
|
|
3,798
|
|
|
||||||||
Ohio
|
2,193
|
|
|
2,229
|
|
|
1,303
|
|
1,316
|
|
|
692
|
|
|
708
|
|
|
4,188
|
|
|
4,253
|
|
|
||||||||
All other
|
24,165
|
|
|
24,055
|
|
|
4,479
|
|
4,489
|
|
|
4,885
|
|
|
4,973
|
|
|
33,529
|
|
|
33,517
|
|
|
||||||||
Total retained loans
|
$
|
52,952
|
|
|
$
|
52,757
|
|
|
$
|
18,992
|
|
$
|
18,951
|
|
|
$
|
11,442
|
|
|
$
|
11,557
|
|
|
$
|
83,386
|
|
|
$
|
83,265
|
|
|
Loans by risk ratings
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Noncriticized
|
$
|
9,680
|
|
|
$
|
9,968
|
|
|
$
|
13,693
|
|
$
|
13,622
|
|
|
NA
|
|
|
NA
|
|
|
$
|
23,373
|
|
|
$
|
23,590
|
|
|
||
Criticized performing
|
80
|
|
|
54
|
|
|
725
|
|
711
|
|
|
NA
|
|
|
NA
|
|
|
805
|
|
|
765
|
|
|
||||||||
Criticized nonaccrual
|
32
|
|
|
38
|
|
|
295
|
|
316
|
|
|
NA
|
|
|
NA
|
|
|
327
|
|
|
354
|
|
|
(a)
|
Individual delinquency classifications included loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) as follows: current included
$4.8 billion
and
$4.9 billion
;
30
-
119 days
past due included
$375 million
and
$387 million
; and
120
or more days past due included
$312 million
and
$350 million
at
March 31, 2014
, and
December 31, 2013
, respectively.
|
(b)
|
These amounts represent student loans, which are insured by U.S. government agencies under the FFELP. These amounts were accruing based upon the government guarantee.
|
(c)
|
For risk-rated business banking and auto loans, the primary credit quality indicator is the risk rating of the loan, including whether the loans are considered to be criticized and/or nonaccrual.
|
(d)
|
March 31, 2014
, and
December 31, 2013
, excluded loans
30 days
or more past due and still accruing, which are insured by U.S. government agencies under the FFELP, of
$687 million
and
$737 million
, respectively. These amounts were excluded based upon the government guarantee.
|
(in millions)
|
Auto
|
|
Business banking
|
|
Total other consumer
(c)
|
|||||||||||||||
March 31,
2014 |
December 31,
2013 |
|
March 31,
2014 |
December 31,
2013 |
|
March 31,
2014 |
December 31,
2013 |
|||||||||||||
Impaired loans
|
|
|
|
|
|
|
|
|
||||||||||||
With an allowance
|
$
|
86
|
|
$
|
96
|
|
|
$
|
443
|
|
$
|
475
|
|
|
$
|
529
|
|
$
|
571
|
|
Without an allowance
(a)
|
43
|
|
47
|
|
|
—
|
|
—
|
|
|
43
|
|
47
|
|
||||||
Total impaired loans
|
$
|
129
|
|
$
|
143
|
|
|
$
|
443
|
|
$
|
475
|
|
|
$
|
572
|
|
$
|
618
|
|
Allowance for loan losses related to
impaired loans
|
$
|
12
|
|
$
|
13
|
|
|
$
|
92
|
|
$
|
94
|
|
|
$
|
104
|
|
$
|
107
|
|
Unpaid principal balance of impaired loans
(b)
|
216
|
|
235
|
|
|
517
|
|
553
|
|
|
733
|
|
788
|
|
||||||
Impaired loans on nonaccrual status
|
102
|
|
113
|
|
|
303
|
|
328
|
|
|
405
|
|
441
|
|
(a)
|
When discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, the loan does not require an allowance. This typically occurs when the impaired loans have been partially charged off and/or there have been interest payments received and applied to the loan balance.
|
(b)
|
Represents the contractual amount of principal owed at
March 31, 2014
, and
December 31, 2013
. The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs; interest payments received and applied to the principal balance; net deferred loan fees or costs; and unamortized discounts or premiums on purchased loans.
|
(c)
|
There were no impaired student and other loans at
March 31, 2014
, and
December 31, 2013
.
|
(in millions)
|
Average impaired loans
(b)
|
|||||
Three months ended March 31,
|
||||||
2014
|
2013
|
|||||
Auto
|
$
|
136
|
|
$
|
144
|
|
Business banking
|
464
|
|
543
|
|
||
Total other consumer
(a)
|
$
|
600
|
|
$
|
687
|
|
(a)
|
There were no impaired student and other loans for the
three months ended
March 31, 2014
and
2013
.
|
(b)
|
The related interest income on impaired loans, including those on a cash basis, was not material for the
three months ended
March 31, 2014
and
2013
.
|
(in millions)
|
Auto
|
|
Business banking
|
|
Total other consumer
(c)
|
|||||||||||||||
March 31,
2014 |
December 31,
2013 |
|
March 31,
2014 |
December 31,
2013 |
|
March 31,
2014 |
December 31,
2013 |
|||||||||||||
Loans modified in TDRs
(a)(b)
|
$
|
97
|
|
$
|
107
|
|
|
$
|
249
|
|
$
|
271
|
|
|
$
|
346
|
|
$
|
378
|
|
TDRs on nonaccrual status
|
70
|
|
77
|
|
|
109
|
|
124
|
|
|
179
|
|
201
|
|
(a)
|
These modifications generally provided interest rate concessions to the borrower or term or payment extensions.
|
(b)
|
Additional commitments to lend to borrowers whose loans have been modified in TDRs as of
March 31, 2014
, and
December 31, 2013
, were immaterial.
|
(c)
|
There were no student and other loans modified in TDRs at
March 31, 2014
, and
December 31, 2013
.
|
Three months ended March 31,
(in millions) |
Auto
|
|
Business banking
|
|
Total other consumer
|
|||||||||||||||
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|||||||||||||
Beginning balance of TDRs
|
$
|
107
|
|
$
|
150
|
|
|
$
|
271
|
|
$
|
352
|
|
|
$
|
378
|
|
$
|
502
|
|
New TDRs
|
20
|
|
20
|
|
|
8
|
|
22
|
|
|
28
|
|
42
|
|
||||||
Charge-offs post-modification
|
—
|
|
(3
|
)
|
|
—
|
|
(2
|
)
|
|
—
|
|
(5
|
)
|
||||||
Foreclosures and other liquidations
|
(3
|
)
|
—
|
|
|
—
|
|
—
|
|
|
(3
|
)
|
—
|
|
||||||
Principal payments and other
|
(27
|
)
|
(27
|
)
|
|
(30
|
)
|
(31
|
)
|
|
(57
|
)
|
(58
|
)
|
||||||
E
nding balance of TDRs
|
$
|
97
|
|
$
|
140
|
|
|
$
|
249
|
|
$
|
341
|
|
|
$
|
346
|
|
$
|
481
|
|
|
Three months ended March 31,
|
||||||||
Auto
|
|
Business banking
|
|||||||
2014
|
2013
|
|
2014
|
2013
|
|||||
Weighted-average interest rate of loans with interest rate reductions – before TDR
|
14.26
|
%
|
12.97
|
%
|
|
7.71
|
%
|
8.34
|
%
|
Weighted-average interest rate of loans with interest rate reductions – after TDR
|
4.96
|
|
5.04
|
|
|
6.65
|
|
5.48
|
|
Weighted-average remaining contractual term (in years) of loans
with term or payment extensions – before TDR
|
NM
|
|
NM
|
|
|
1.5
|
|
1.4
|
|
Weighted-average remaining contractual term (in years) of loans
with term or payment extensions – after TDR
|
NM
|
|
NM
|
|
|
3.7
|
|
2.6
|
|
(in millions, except ratios)
|
Home equity
|
|
Prime mortgage
|
|
Subprime mortgage
|
|
Option ARMs
|
|
Total PCI
|
|||||||||||||||||||||||||
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|||||||||||||||||||||
Carrying value
(a)
|
$
|
18,525
|
|
$
|
18,927
|
|
|
$
|
11,658
|
|
$
|
12,038
|
|
|
$
|
4,062
|
|
$
|
4,175
|
|
|
$
|
17,361
|
|
$
|
17,915
|
|
|
$
|
51,606
|
|
$
|
53,055
|
|
Related allowance for loan losses
(b)
|
1,758
|
|
1,758
|
|
|
1,665
|
|
1,726
|
|
|
180
|
|
180
|
|
|
494
|
|
494
|
|
|
4,097
|
|
4,158
|
|
||||||||||
Loan delinquency (based on unpaid principal balance)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Current
|
$
|
17,781
|
|
$
|
18,135
|
|
|
$
|
9,857
|
|
$
|
10,118
|
|
|
$
|
3,990
|
|
$
|
4,012
|
|
|
$
|
15,168
|
|
$
|
15,501
|
|
|
$
|
46,796
|
|
$
|
47,766
|
|
30–149 days past due
|
480
|
|
583
|
|
|
571
|
|
589
|
|
|
570
|
|
662
|
|
|
969
|
|
1,006
|
|
|
2,590
|
|
2,840
|
|
||||||||||
150 or more days past due
|
1,107
|
|
1,112
|
|
|
1,043
|
|
1,169
|
|
|
724
|
|
797
|
|
|
2,368
|
|
2,716
|
|
|
5,242
|
|
5,794
|
|
||||||||||
Total loans
|
$
|
19,368
|
|
$
|
19,830
|
|
|
$
|
11,471
|
|
$
|
11,876
|
|
|
$
|
5,284
|
|
$
|
5,471
|
|
|
$
|
18,505
|
|
$
|
19,223
|
|
|
$
|
54,628
|
|
$
|
56,400
|
|
% of 30+ days past due to total loans
|
8.19
|
%
|
8.55
|
%
|
|
14.07
|
%
|
14.80
|
%
|
|
24.49
|
%
|
26.67
|
%
|
|
18.03
|
%
|
19.36
|
%
|
|
14.34
|
%
|
15.31
|
%
|
||||||||||
Current estimated LTV ratios (based on unpaid principal balance)
(c)(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Greater than 125% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
$
|
941
|
|
$
|
1,168
|
|
|
$
|
173
|
|
$
|
240
|
|
|
$
|
94
|
|
$
|
115
|
|
|
$
|
219
|
|
$
|
301
|
|
|
$
|
1,427
|
|
$
|
1,824
|
|
Less than 660
|
549
|
|
662
|
|
|
218
|
|
290
|
|
|
364
|
|
459
|
|
|
400
|
|
575
|
|
|
1,531
|
|
1,986
|
|
||||||||||
101% to 125% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
2,886
|
|
3,248
|
|
|
833
|
|
1,017
|
|
|
282
|
|
316
|
|
|
949
|
|
1,164
|
|
|
4,950
|
|
5,745
|
|
||||||||||
Less than 660
|
1,371
|
|
1,541
|
|
|
666
|
|
884
|
|
|
789
|
|
919
|
|
|
1,155
|
|
1,563
|
|
|
3,981
|
|
4,907
|
|
||||||||||
80% to 100% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
4,456
|
|
4,473
|
|
|
2,626
|
|
2,787
|
|
|
556
|
|
544
|
|
|
3,046
|
|
3,311
|
|
|
10,684
|
|
11,115
|
|
||||||||||
Less than 660
|
1,789
|
|
1,782
|
|
|
1,544
|
|
1,699
|
|
|
1,158
|
|
1,197
|
|
|
2,454
|
|
2,769
|
|
|
6,945
|
|
7,447
|
|
||||||||||
Lower than 80% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
5,386
|
|
5,077
|
|
|
3,270
|
|
2,897
|
|
|
577
|
|
521
|
|
|
6,262
|
|
5,671
|
|
|
15,495
|
|
14,166
|
|
||||||||||
Less than 660
|
1,990
|
|
1,879
|
|
|
2,141
|
|
2,062
|
|
|
1,464
|
|
1,400
|
|
|
4,020
|
|
3,869
|
|
|
9,615
|
|
9,210
|
|
||||||||||
Total unpaid principal balance
|
$
|
19,368
|
|
$
|
19,830
|
|
|
$
|
11,471
|
|
$
|
11,876
|
|
|
$
|
5,284
|
|
$
|
5,471
|
|
|
$
|
18,505
|
|
$
|
19,223
|
|
|
$
|
54,628
|
|
$
|
56,400
|
|
Geographic region (based on unpaid principal balance)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
California
|
$
|
11,658
|
|
$
|
11,937
|
|
|
$
|
6,645
|
|
$
|
6,845
|
|
|
$
|
1,265
|
|
$
|
1,293
|
|
|
$
|
10,121
|
|
$
|
10,419
|
|
|
$
|
29,689
|
|
$
|
30,494
|
|
New York
|
942
|
|
962
|
|
|
763
|
|
807
|
|
|
535
|
|
563
|
|
|
1,113
|
|
1,196
|
|
|
3,353
|
|
3,528
|
|
||||||||||
Illinois
|
440
|
|
451
|
|
|
337
|
|
353
|
|
|
269
|
|
283
|
|
|
464
|
|
481
|
|
|
1,510
|
|
1,568
|
|
||||||||||
Florida
|
1,829
|
|
1,865
|
|
|
781
|
|
826
|
|
|
506
|
|
526
|
|
|
1,710
|
|
1,817
|
|
|
4,826
|
|
5,034
|
|
||||||||||
Texas
|
315
|
|
327
|
|
|
103
|
|
106
|
|
|
316
|
|
328
|
|
|
96
|
|
100
|
|
|
830
|
|
861
|
|
||||||||||
New Jersey
|
372
|
|
381
|
|
|
319
|
|
334
|
|
|
194
|
|
213
|
|
|
641
|
|
701
|
|
|
1,526
|
|
1,629
|
|
||||||||||
Arizona
|
351
|
|
361
|
|
|
184
|
|
187
|
|
|
93
|
|
95
|
|
|
251
|
|
264
|
|
|
879
|
|
907
|
|
||||||||||
Washington
|
1,049
|
|
1,072
|
|
|
254
|
|
266
|
|
|
108
|
|
112
|
|
|
442
|
|
463
|
|
|
1,853
|
|
1,913
|
|
||||||||||
Michigan
|
60
|
|
62
|
|
|
184
|
|
189
|
|
|
142
|
|
145
|
|
|
199
|
|
206
|
|
|
585
|
|
602
|
|
||||||||||
Ohio
|
22
|
|
23
|
|
|
51
|
|
55
|
|
|
82
|
|
84
|
|
|
73
|
|
75
|
|
|
228
|
|
237
|
|
||||||||||
All other
|
2,330
|
|
2,389
|
|
|
1,850
|
|
1,908
|
|
|
1,774
|
|
1,829
|
|
|
3,395
|
|
3,501
|
|
|
9,349
|
|
9,627
|
|
||||||||||
Total unpaid principal balance
|
$
|
19,368
|
|
$
|
19,830
|
|
|
$
|
11,471
|
|
$
|
11,876
|
|
|
$
|
5,284
|
|
$
|
5,471
|
|
|
$
|
18,505
|
|
$
|
19,223
|
|
|
$
|
54,628
|
|
$
|
56,400
|
|
(a)
|
Carrying value includes the effect of fair value adjustments that were applied to the consumer PCI portfolio at the date of acquisition.
|
(b)
|
Management concluded as part of the Firm’s regular assessment of the PCI loan pools that it was probable that higher expected credit losses would result in a decrease in expected cash flows. As a result, an allowance for loan losses for impairment of these pools has been recognized.
|
(c)
|
Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property.
|
(d)
|
Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
|
|
|
Delinquencies
|
|
|
|
Total 30+ day delinquency rate
|
|||||||||||||
March 31, 2014
|
|
30–89 days past due
|
|
90–149 days past due
|
|
150+ days past due
|
|
Total loans
|
|
||||||||||
(in millions, except ratios)
|
|
|
|
|
|
||||||||||||||
HELOCs:
(a)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Within the revolving period
(b)
|
|
$
|
184
|
|
|
$
|
76
|
|
|
$
|
513
|
|
|
$
|
11,696
|
|
|
6.61
|
%
|
Beyond the revolving period
(c)
|
|
52
|
|
|
19
|
|
|
101
|
|
|
2,647
|
|
|
6.50
|
|
||||
HELOANs
|
|
21
|
|
|
8
|
|
|
41
|
|
|
852
|
|
|
8.22
|
|
||||
Total
|
|
$
|
257
|
|
|
$
|
103
|
|
|
$
|
655
|
|
|
$
|
15,195
|
|
|
6.68
|
%
|
|
|
Delinquencies
|
|
|
|
Total 30+ day delinquency rate
|
|||||||||||||
December 31, 2013
|
|
30–89 days past due
|
|
90–149 days past due
|
|
150+ days past due
|
|
Total loans
|
|
||||||||||
(in millions, except ratios)
|
|
|
|
|
|
||||||||||||||
HELOCs:
(a)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Within the revolving period
(b)
|
|
$
|
243
|
|
|
$
|
88
|
|
|
$
|
526
|
|
|
$
|
12,670
|
|
|
6.76
|
%
|
Beyond the revolving period
(c)
|
|
54
|
|
|
21
|
|
|
82
|
|
|
2,336
|
|
|
6.72
|
|
||||
HELOANs
|
|
24
|
|
|
11
|
|
|
39
|
|
|
908
|
|
|
8.15
|
|
||||
Total
|
|
$
|
321
|
|
|
$
|
120
|
|
|
$
|
647
|
|
|
$
|
15,914
|
|
|
6.84
|
%
|
(a)
|
In general, these HELOCs are revolving loans for a
10
-year period, after which time the HELOC converts to an interest-only loan with a balloon payment at the end of the loan’s term.
|
(b)
|
Substantially all undrawn HELOCs within the revolving period have been closed.
|
(c)
|
Includes loans modified into fixed rate amortizing loans.
|
(in millions, except ratios)
|
Total PCI
|
|||||
Three months ended March 31,
|
||||||
2014
|
2013
|
|||||
Beginning balance
|
$
|
16,167
|
|
$
|
18,457
|
|
Accretion into interest income
|
(514
|
)
|
(573
|
)
|
||
Changes in interest rates on variable-rate loans
|
(21
|
)
|
(159
|
)
|
||
Other changes in expected cash flows
(a)
|
150
|
|
1,739
|
|
||
Balance at March 31
|
$
|
15,782
|
|
$
|
19,464
|
|
Accretable yield percentage
|
4.32
|
%
|
4.35
|
%
|
(a)
|
Other changes in expected cash flows may vary from period to period as the Firm continues to refine its cash flow model and periodically updates model assumptions. For the
three months ended
March 31, 2014
, other changes in expected cash flows were driven by changes in prepayment assumptions. For the
three months ended
March 31, 2013
, other changes in expected cash flows were due to refining the expected interest cash flows on HELOCs with balloon payments; these incremental interest cash flows will not have a significant impact on the accretable yield percentage.
|
(in millions, except ratios)
|
March 31,
2014 |
December 31,
2013 |
||||
Loan delinquency
|
|
|
||||
Current and less than 30 days
past due and still accruing
|
$
|
119,560
|
|
$
|
125,335
|
|
30–89 days past due and still accruing
|
976
|
|
1,108
|
|
||
90 or more days past due and still accruing
|
976
|
|
1,022
|
|
||
Nonaccrual loans
|
—
|
|
—
|
|
||
Total retained credit card loans
|
$
|
121,512
|
|
$
|
127,465
|
|
Loan delinquency ratios
|
|
|
||||
% of 30+ days past due to total retained loans
|
1.61
|
%
|
1.67
|
%
|
||
% of 90+ days past due to total retained loans
|
0.80
|
|
0.80
|
|
||
Credit card loans by
geographic region
|
|
|
||||
California
|
$
|
16,425
|
|
$
|
17,194
|
|
New York
|
10,024
|
|
10,497
|
|
||
Texas
|
10,073
|
|
10,400
|
|
||
Illinois
|
7,021
|
|
7,412
|
|
||
Florida
|
6,896
|
|
7,178
|
|
||
New Jersey
|
5,282
|
|
5,554
|
|
||
Ohio
|
4,582
|
|
4,881
|
|
||
Pennsylvania
|
4,216
|
|
4,462
|
|
||
Michigan
|
3,398
|
|
3,618
|
|
||
Virginia
|
3,036
|
|
3,239
|
|
||
All other
|
50,559
|
|
53,030
|
|
||
Total retained credit card loans
|
$
|
121,512
|
|
$
|
127,465
|
|
Percentage of portfolio based on carrying value with estimated refreshed FICO scores
|
|
|
||||
Equal to or greater than 660
|
83.7
|
%
|
85.1
|
%
|
||
Less than 660
|
16.3
|
|
14.9
|
|
(in millions)
|
March 31,
2014 |
December 31,
2013 |
||||
Impaired credit card loans with an allowance
(a)(b)
|
|
|
||||
Credit card loans with modified payment terms
(c)
|
$
|
2,441
|
|
$
|
2,746
|
|
Modified credit card loans that have reverted to pre-modification payment terms
(d)
|
327
|
|
369
|
|
||
Total impaired credit card loans
|
$
|
2,768
|
|
$
|
3,115
|
|
Allowance for loan losses related to impaired credit card loans
|
$
|
606
|
|
$
|
971
|
|
(a)
|
The carrying value and the unpaid principal balance are the same for credit card impaired loans.
|
(b)
|
There were no impaired loans without an allowance.
|
(c)
|
Represents credit card loans outstanding to borrowers enrolled in a credit card modification program as of the date presented.
|
(d)
|
Represents credit card loans that were modified in TDRs but that have subsequently reverted back to the loans’ pre-modification payment terms. At
March 31, 2014
, and
December 31, 2013
,
$200 million
and
$226 million
, respectively, of loans have reverted back to the pre-modification payment terms of the loans due to noncompliance with the terms of the modified loans. The remaining
$127 million
and
$143 million
at
March 31, 2014
, and
December 31, 2013
, respectively, of these loans are to borrowers who have successfully completed a short-term modification program. The Firm continues to report these loans as TDRs since the borrowers’ credit lines remain closed.
|
|
Three months
ended March 31, |
|||||
(in millions)
|
2014
|
2013
|
||||
Average impaired credit card loans
|
$
|
2,938
|
|
$
|
4,521
|
|
Interest income on impaired credit card loans
|
36
|
|
58
|
|
(in millions, except weighted-average data)
|
Three months
ended March 31, |
|||||
2014
|
2013
|
|||||
Weighted-average interest rate of loans – before TDR
|
15.03
|
%
|
15.49
|
%
|
||
Weighted-average interest rate of loans – after TDR
|
4.43
|
|
4.67
|
|
||
Loans that redefaulted within one year of modification
(a)
|
$
|
34
|
|
$
|
44
|
|
(a)
|
Represents loans modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within
one year
of the modification. The amounts presented represent the balance of such loans as of the end of the quarter in which they defaulted.
|
|
Commercial
and industrial
|
|
Real estate
|
||||||||||||
(in millions, except ratios)
|
March 31,
2014 |
|
December 31,
2013 |
|
March 31,
2014 |
|
December 31,
2013 |
||||||||
Loans by risk ratings
|
|
|
|
|
|
|
|
||||||||
Investment-grade
|
$
|
59,942
|
|
|
$
|
57,690
|
|
|
$
|
53,804
|
|
|
$
|
52,195
|
|
Noninvestment-grade:
|
|
|
|
|
|
|
|
||||||||
Noncriticized
|
44,350
|
|
|
43,477
|
|
|
14,741
|
|
|
14,381
|
|
||||
Criticized performing
|
2,642
|
|
|
2,385
|
|
|
1,939
|
|
|
2,229
|
|
||||
Criticized nonaccrual
|
239
|
|
|
294
|
|
|
317
|
|
|
346
|
|
||||
Total noninvestment-grade
|
47,231
|
|
|
46,156
|
|
|
16,997
|
|
|
16,956
|
|
||||
Total retained loans
|
$
|
107,173
|
|
|
$
|
103,846
|
|
|
$
|
70,801
|
|
|
$
|
69,151
|
|
% of total criticized to total retained loans
|
2.69
|
%
|
|
2.58
|
%
|
|
3.19
|
%
|
|
3.72
|
%
|
||||
% of nonaccrual loans to total retained loans
|
0.22
|
|
|
0.28
|
|
|
0.45
|
|
|
0.50
|
|
||||
Loans by geographic distribution
(a)
|
|
|
|
|
|
|
|
||||||||
Total non-U.S.
|
$
|
35,671
|
|
|
$
|
34,440
|
|
|
$
|
1,581
|
|
|
$
|
1,369
|
|
Total U.S.
|
71,502
|
|
|
69,406
|
|
|
69,220
|
|
|
67,782
|
|
||||
Total retained loans
|
$
|
107,173
|
|
|
$
|
103,846
|
|
|
$
|
70,801
|
|
|
$
|
69,151
|
|
|
|
|
|
|
|
|
|
||||||||
Loan delinquency
(b)
|
|
|
|
|
|
|
|
||||||||
Current and less than 30 days past due and still accruing
|
$
|
106,665
|
|
|
$
|
103,357
|
|
|
$
|
70,385
|
|
|
$
|
68,627
|
|
30–89 days past due and still accruing
|
230
|
|
|
181
|
|
|
97
|
|
|
164
|
|
||||
90 or more days past due and still accruing
(c)
|
39
|
|
|
14
|
|
|
2
|
|
|
14
|
|
||||
Criticized nonaccrual
|
239
|
|
|
294
|
|
|
317
|
|
|
346
|
|
||||
Total retained loans
|
$
|
107,173
|
|
|
$
|
103,846
|
|
|
$
|
70,801
|
|
|
$
|
69,151
|
|
(a)
|
The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.
|
(b)
|
The credit quality of wholesale loans is assessed primarily through ongoing review and monitoring of an obligor’s ability to meet contractual obligations rather than relying on the past due status, which is generally a lagging indicator of credit quality. For a discussion of more significant risk factors, see Note 14 on
page 279
of
JPMorgan Chase
’s
2013
Annual Report
.
|
(c)
|
Represents loans that are considered well-collateralized and therefore still accruing interest.
|
(d)
|
Other primarily includes loans to SPEs and loans to private banking clients. See Note 1 on
pages 189–191
of
JPMorgan Chase
’s
2013
Annual Report
for additional information on SPEs.
|
(in millions, except ratios)
|
Multifamily
|
|
Commercial lessors
|
|
||||||||||||
March 31,
2014 |
|
December 31,
2013 |
|
March 31,
2014 |
|
December 31,
2013 |
|
|||||||||
Real estate retained loans
|
$
|
45,607
|
|
|
$
|
44,389
|
|
|
$
|
16,354
|
|
|
$
|
15,949
|
|
|
Criticized exposure
|
1,016
|
|
|
1,142
|
|
|
1,168
|
|
|
1,323
|
|
|
||||
% of criticized exposure to total real estate retained loans
|
2.23
|
%
|
|
2.57
|
%
|
|
7.14
|
%
|
|
8.30
|
%
|
|
||||
Criticized nonaccrual
|
$
|
172
|
|
|
$
|
191
|
|
|
$
|
141
|
|
|
$
|
143
|
|
|
% of criticized nonaccrual to total real estate retained loans
|
0.38
|
%
|
|
0.43
|
%
|
|
0.86
|
%
|
|
0.90
|
%
|
|
Financial
institutions
|
|
Government agencies
|
|
Other
(d)
|
|
Total
retained loans
|
|
||||||||||||||||||||||||
March 31,
2014 |
|
December 31,
2013 |
|
March 31,
2014 |
|
December 31,
2013 |
|
March 31,
2014 |
|
December 31,
2013 |
|
March 31,
2014 |
|
December 31,
2013 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
$
|
29,194
|
|
|
$
|
26,712
|
|
|
$
|
9,119
|
|
|
$
|
9,979
|
|
|
$
|
76,794
|
|
|
$
|
79,494
|
|
|
$
|
228,853
|
|
|
$
|
226,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
8,017
|
|
|
6,674
|
|
|
388
|
|
|
440
|
|
|
9,246
|
|
|
10,992
|
|
|
76,742
|
|
|
75,964
|
|
|
||||||||
347
|
|
|
272
|
|
|
3
|
|
|
42
|
|
|
439
|
|
|
480
|
|
|
5,370
|
|
|
5,408
|
|
|
||||||||
22
|
|
|
25
|
|
|
—
|
|
|
1
|
|
|
175
|
|
|
155
|
|
|
753
|
|
|
821
|
|
|
||||||||
8,386
|
|
|
6,971
|
|
|
391
|
|
|
483
|
|
|
9,860
|
|
|
11,627
|
|
|
82,865
|
|
|
82,193
|
|
|
||||||||
$
|
37,580
|
|
|
$
|
33,683
|
|
|
$
|
9,510
|
|
|
$
|
10,462
|
|
|
$
|
86,654
|
|
|
$
|
91,121
|
|
|
$
|
311,718
|
|
|
$
|
308,263
|
|
|
0.98
|
%
|
|
0.88
|
%
|
|
0.03
|
%
|
|
0.41
|
%
|
|
0.71
|
%
|
|
0.70
|
%
|
|
1.96
|
%
|
|
2.02
|
%
|
|
||||||||
0.06
|
|
|
0.07
|
|
|
—
|
|
|
0.01
|
|
|
0.20
|
|
|
0.17
|
|
|
0.24
|
|
|
0.27
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
$
|
23,769
|
|
|
$
|
22,726
|
|
|
$
|
1,401
|
|
|
$
|
2,146
|
|
|
$
|
43,679
|
|
|
$
|
43,376
|
|
|
$
|
106,101
|
|
|
$
|
104,057
|
|
|
13,811
|
|
|
10,957
|
|
|
8,109
|
|
|
8,316
|
|
|
42,975
|
|
|
47,745
|
|
|
205,617
|
|
|
204,206
|
|
|
||||||||
$
|
37,580
|
|
|
$
|
33,683
|
|
|
$
|
9,510
|
|
|
$
|
10,462
|
|
|
$
|
86,654
|
|
|
$
|
91,121
|
|
|
$
|
311,718
|
|
|
$
|
308,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
$
|
37,482
|
|
|
$
|
33,426
|
|
|
$
|
9,492
|
|
|
$
|
10,421
|
|
|
$
|
85,414
|
|
|
$
|
89,717
|
|
|
$
|
309,438
|
|
|
$
|
305,548
|
|
|
76
|
|
|
226
|
|
|
18
|
|
|
40
|
|
|
1,019
|
|
|
1,233
|
|
|
1,440
|
|
|
1,844
|
|
|
||||||||
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
16
|
|
|
87
|
|
|
50
|
|
|
||||||||
22
|
|
|
25
|
|
|
—
|
|
|
1
|
|
|
175
|
|
|
155
|
|
|
753
|
|
|
821
|
|
|
||||||||
$
|
37,580
|
|
|
$
|
33,683
|
|
|
$
|
9,510
|
|
|
$
|
10,462
|
|
|
$
|
86,654
|
|
|
$
|
91,121
|
|
|
$
|
311,718
|
|
|
$
|
308,263
|
|
|
Commercial construction and development
|
|
Other
|
|
Total real estate loans
|
|
||||||||||||||||||
March 31,
2014 |
|
December 31,
2013 |
|
March 31,
2014 |
|
December 31,
2013 |
|
March 31,
2014 |
|
December 31,
2013 |
|
||||||||||||
$
|
3,839
|
|
|
$
|
3,674
|
|
|
$
|
5,001
|
|
|
$
|
5,139
|
|
|
$
|
70,801
|
|
|
$
|
69,151
|
|
|
49
|
|
|
81
|
|
|
23
|
|
|
29
|
|
|
2,256
|
|
|
2,575
|
|
|
||||||
1.28
|
%
|
|
2.20
|
%
|
|
0.46
|
%
|
|
0.56
|
%
|
|
3.19
|
%
|
|
3.72
|
%
|
|
||||||
$
|
1
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
9
|
|
|
$
|
317
|
|
|
$
|
346
|
|
|
0.03
|
%
|
|
0.08
|
%
|
|
0.06
|
%
|
|
0.18
|
%
|
|
0.45
|
%
|
|
0.50
|
%
|
|
(in millions)
|
Commercial
and industrial
|
|
Real estate
|
|
Financial
institutions
|
|
Government
agencies
|
|
Other
|
|
Total
retained loans
|
||||||||||||||||||||||||||||||
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|
Mar 31,
2014 |
Dec 31,
2013 |
|||||||||||||||||||||||||
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
With an allowance
|
$
|
207
|
|
$
|
236
|
|
|
$
|
239
|
|
$
|
258
|
|
|
$
|
8
|
|
$
|
17
|
|
|
$
|
—
|
|
$
|
1
|
|
|
$
|
102
|
|
$
|
85
|
|
|
$
|
556
|
|
$
|
597
|
|
Without an allowance
(a)
|
45
|
|
58
|
|
|
81
|
|
109
|
|
|
6
|
|
8
|
|
|
—
|
|
—
|
|
|
75
|
|
73
|
|
|
207
|
|
248
|
|
||||||||||||
Total
impaired loans
|
$
|
252
|
|
$
|
294
|
|
|
$
|
320
|
|
$
|
367
|
|
|
$
|
14
|
|
$
|
25
|
|
|
$
|
—
|
|
$
|
1
|
|
|
$
|
177
|
|
$
|
158
|
|
|
$
|
763
|
|
$
|
845
|
|
Allowance for loan losses related to impaired loans
|
$
|
51
|
|
$
|
75
|
|
|
$
|
57
|
|
$
|
63
|
|
|
$
|
12
|
|
$
|
16
|
|
|
$
|
1
|
|
$
|
—
|
|
|
$
|
23
|
|
$
|
27
|
|
|
$
|
144
|
|
$
|
181
|
|
Unpaid principal balance of impaired loans
(b)
|
374
|
|
448
|
|
|
398
|
|
454
|
|
|
14
|
|
24
|
|
|
—
|
|
1
|
|
|
260
|
|
241
|
|
|
1,046
|
|
1,168
|
|
(a)
|
When the discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, the loan does not require an allowance. This typically occurs when the impaired loans have been partially charged-off and/or there have been interest payments received and applied to the loan balance.
|
(b)
|
Represents the contractual amount of principal owed at
March 31, 2014
, and
December 31, 2013
. The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs; interest payments received and applied to the carrying value; net deferred loan fees or costs; and unamortized discount or premiums on purchased loans.
|
|
Three months
ended March 31, |
|||||
(in millions)
|
2014
|
2013
|
||||
Commercial and industrial
|
$
|
291
|
|
$
|
606
|
|
Real estate
|
355
|
|
532
|
|
||
Financial institutions
|
22
|
|
8
|
|
||
Government agencies
|
—
|
|
—
|
|
||
Other
|
169
|
|
223
|
|
||
Total
(a)
|
$
|
837
|
|
$
|
1,369
|
|
(a)
|
The related interest income on accruing impaired loans and interest income recognized on a cash basis were not material for the
three months ended
March 31, 2014
and
2013
.
|
Three months ended March 31,
(in millions) |
|
Commercial and industrial
|
|
Real estate
|
|
Other
(b)
|
|
Total
|
||||||||||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|||||||||||||||||
Beginning balance of TDRs
|
|
$
|
77
|
|
|
$
|
575
|
|
|
$
|
88
|
|
|
$
|
99
|
|
|
$
|
33
|
|
|
$
|
22
|
|
|
$
|
198
|
|
|
$
|
696
|
|
New TDRs
|
|
23
|
|
|
$
|
14
|
|
|
10
|
|
|
31
|
|
|
—
|
|
|
22
|
|
|
33
|
|
|
67
|
|
|||||||
Increases to existing TDRs
|
|
1
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
3
|
|
||||||||
Charge-offs post-modification
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(4
|
)
|
||||||||
Sales and other
(a)
|
|
(17
|
)
|
|
(337
|
)
|
|
(20
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(38
|
)
|
|
(341
|
)
|
||||||||
Ending balance of TDRs
|
|
$
|
84
|
|
|
$
|
254
|
|
|
$
|
78
|
|
|
$
|
124
|
|
|
$
|
31
|
|
|
$
|
43
|
|
|
$
|
193
|
|
|
$
|
421
|
|
TDRs on nonaccrual status
|
|
$
|
79
|
|
|
$
|
200
|
|
|
$
|
70
|
|
|
$
|
114
|
|
|
$
|
28
|
|
|
$
|
43
|
|
|
$
|
177
|
|
|
$
|
357
|
|
Additional commitments to lend to borrowers whose loans have been modified in TDRs
|
|
69
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|
18
|
|
(a)
|
Sales and other are largely sales and paydowns.
|
(b)
|
Includes loans to Financial institutions, Government agencies and Other.
|
|
2014
|
|
2013
|
||||||||||||||||||||||||||
Three months ended March 31,
(in millions) |
Consumer, excluding credit card
|
|
Credit card
|
|
Wholesale
|
Total
|
|
Consumer, excluding credit card
|
|
Credit card
|
|
Wholesale
|
Total
|
||||||||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance at January 1,
|
$
|
8,456
|
|
|
$
|
3,795
|
|
|
$
|
4,013
|
|
$
|
16,264
|
|
|
$
|
12,292
|
|
|
$
|
5,501
|
|
|
$
|
4,143
|
|
$
|
21,936
|
|
Gross charge-offs
|
569
|
|
|
995
|
|
|
68
|
|
1,632
|
|
|
792
|
|
|
1,248
|
|
|
66
|
|
2,106
|
|
||||||||
Gross recoveries
|
(201
|
)
|
|
(107
|
)
|
|
(55
|
)
|
(363
|
)
|
|
(184
|
)
|
|
(166
|
)
|
|
(31
|
)
|
(381
|
)
|
||||||||
Net charge-offs
|
368
|
|
|
888
|
|
|
13
|
|
1,269
|
|
|
608
|
|
|
1,082
|
|
|
35
|
|
1,725
|
|
||||||||
Write-offs of PCI loans
(a)
|
61
|
|
|
—
|
|
|
—
|
|
61
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Provision for loan losses
|
119
|
|
|
688
|
|
|
110
|
|
917
|
|
|
(37
|
)
|
|
582
|
|
|
24
|
|
569
|
|
||||||||
Other
|
1
|
|
|
(4
|
)
|
|
(1
|
)
|
(4
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
5
|
|
—
|
|
||||||||
Ending balance at March 31,
|
$
|
8,147
|
|
|
$
|
3,591
|
|
|
$
|
4,109
|
|
$
|
15,847
|
|
|
$
|
11,645
|
|
|
$
|
4,998
|
|
|
$
|
4,137
|
|
$
|
20,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses by impairment methodology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific
(b)
|
$
|
607
|
|
|
$
|
606
|
|
(c)
|
$
|
144
|
|
$
|
1,357
|
|
|
$
|
771
|
|
|
$
|
1,434
|
|
(c)
|
$
|
228
|
|
$
|
2,433
|
|
Formula-based
|
3,443
|
|
|
2,985
|
|
|
3,965
|
|
10,393
|
|
|
5,163
|
|
|
3,564
|
|
|
3,909
|
|
12,636
|
|
||||||||
PCI
|
4,097
|
|
|
—
|
|
|
—
|
|
4,097
|
|
|
5,711
|
|
|
—
|
|
|
—
|
|
5,711
|
|
||||||||
Total allowance for loan losses
|
$
|
8,147
|
|
|
$
|
3,591
|
|
|
$
|
4,109
|
|
$
|
15,847
|
|
|
$
|
11,645
|
|
|
$
|
4,998
|
|
|
$
|
4,137
|
|
$
|
20,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans by impairment methodology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific
|
$
|
13,546
|
|
|
$
|
2,768
|
|
|
$
|
763
|
|
$
|
17,077
|
|
|
$
|
14,189
|
|
|
$
|
4,287
|
|
|
$
|
1,302
|
|
$
|
19,778
|
|
Formula-based
|
222,778
|
|
|
118,744
|
|
|
310,949
|
|
652,471
|
|
|
217,456
|
|
|
117,578
|
|
|
309,271
|
|
644,305
|
|
||||||||
PCI
|
51,606
|
|
|
—
|
|
|
6
|
|
51,612
|
|
|
58,437
|
|
|
—
|
|
|
9
|
|
58,446
|
|
||||||||
Total retained loans
|
$
|
287,930
|
|
|
$
|
121,512
|
|
|
$
|
311,718
|
|
$
|
721,160
|
|
|
$
|
290,082
|
|
|
$
|
121,865
|
|
|
$
|
310,582
|
|
$
|
722,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired collateral-dependent loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net charge-offs
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
51
|
|
|
$
|
78
|
|
|
$
|
—
|
|
|
$
|
6
|
|
$
|
84
|
|
Loans measured at fair value of collateral less cost to sell
|
3,333
|
|
|
—
|
|
|
331
|
|
3,664
|
|
|
3,153
|
|
|
—
|
|
|
432
|
|
3,585
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for lending-related commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance at January 1,
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
697
|
|
$
|
705
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
661
|
|
$
|
668
|
|
Provision for lending-related commitments
|
—
|
|
|
—
|
|
|
(67
|
)
|
(67
|
)
|
|
—
|
|
|
—
|
|
|
48
|
|
48
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Ending balance at March 31,
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
630
|
|
$
|
638
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
709
|
|
$
|
716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for lending-related commitments by impairment methodology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30
|
|
$
|
30
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
82
|
|
$
|
82
|
|
Formula-based
|
8
|
|
|
—
|
|
|
600
|
|
608
|
|
|
7
|
|
|
—
|
|
|
627
|
|
634
|
|
||||||||
Total allowance for lending-related commitments
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
630
|
|
$
|
638
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
709
|
|
$
|
716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Lending-related commitments by impairment methodology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
95
|
|
$
|
95
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
244
|
|
$
|
244
|
|
Formula-based
|
56,541
|
|
|
535,614
|
|
|
456,436
|
|
1,048,591
|
|
|
60,874
|
|
|
537,455
|
|
|
435,037
|
|
1,033,366
|
|
||||||||
Total lending-related commitments
|
$
|
56,541
|
|
|
$
|
535,614
|
|
|
$
|
456,531
|
|
$
|
1,048,686
|
|
|
$
|
60,874
|
|
|
$
|
537,455
|
|
|
$
|
435,281
|
|
$
|
1,033,610
|
|
(a)
|
Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. Any write-offs of PCI loans are recognized when the underlying loan is removed from a pool (e.g., upon liquidation).
|
(b)
|
Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a TDR.
|
(c)
|
The asset-specific credit card allowance for loan losses is related to loans that have been modified in a TDR; such allowance is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
|
Line-of-Business
|
Transaction Type
|
Activity
|
Form 10-Q page reference
|
CCB
|
Credit card securitization trusts
|
Securitization of both originated and purchased credit card receivables
|
141
|
|
Other securitization trusts
|
Securitization of originated student loans
|
141-143
|
|
Mortgage securitization trusts
|
Securitization of both originated and purchased residential mortgages
|
141-143
|
CIB
|
Mortgage and other securitization trusts
|
Securitization of both originated and purchased residential and commercial mortgages, automobile and student loans
|
141-143
|
|
Multi-seller conduits
Investor intermediation activities:
|
Assist clients in accessing the financial markets in a cost-efficient manner and structures transactions to meet investor needs
|
143
|
|
Municipal bond vehicles
|
|
143-144
|
|
Credit-related note and asset swap vehicles
|
|
144
|
|
Principal amount outstanding
|
|
JPMorgan Chase interest in securitized assets in nonconsolidated VIEs
(c)(d)(e)
|
||||||||||||||||
March 31, 2014
(a)
(in billions)
|
Total assets held by securitization VIEs
|
Assets
held in consolidated securitization VIEs
|
Assets held in nonconsolidated securitization VIEs with continuing involvement
|
|
Trading assets
|
AFS securities
|
Total interests held by JPMorgan Chase
|
||||||||||||
Securitization-related
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
||||||||||||
Prime/Alt-A and Option ARMs
|
$
|
105.9
|
|
$
|
2.5
|
|
$
|
87.5
|
|
|
$
|
0.5
|
|
$
|
0.3
|
|
$
|
0.8
|
|
Subprime
|
30.9
|
|
2.0
|
|
26.7
|
|
|
0.1
|
|
—
|
|
0.1
|
|
||||||
Commercial and other
(b)
|
128.5
|
|
—
|
|
86.7
|
|
|
0.5
|
|
3.5
|
|
4.0
|
|
||||||
Total
|
$
|
265.3
|
|
$
|
4.5
|
|
$
|
200.9
|
|
|
$
|
1.1
|
|
$
|
3.8
|
|
$
|
4.9
|
|
|
Principal amount outstanding
|
|
JPMorgan Chase interest in securitized assets in nonconsolidated VIEs
(c)(d)(e)
|
||||||||||||||||
December 31, 2013
(a)
(in billions)
|
Total assets held by securitization VIEs
|
Assets held in consolidated securitization VIEs
|
Assets held in nonconsolidated securitization VIEs with continuing involvement
|
|
Trading assets
|
AFS securities
|
Total interests held by JPMorgan Chase
|
||||||||||||
Securitization-related
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
||||||||||||
Prime/Alt-A and Option ARMs
|
$
|
109.2
|
|
$
|
3.2
|
|
$
|
90.4
|
|
|
$
|
0.5
|
|
$
|
0.3
|
|
$
|
0.8
|
|
Subprime
|
32.1
|
|
1.3
|
|
28.0
|
|
|
0.1
|
|
—
|
|
0.1
|
|
||||||
Commercial and other
(b)
|
130.4
|
|
—
|
|
98.0
|
|
|
0.5
|
|
3.5
|
|
4.0
|
|
||||||
Total
|
$
|
271.7
|
|
$
|
4.5
|
|
$
|
216.4
|
|
|
$
|
1.1
|
|
$
|
3.8
|
|
$
|
4.9
|
|
(a)
|
Excludes U.S. government agency securitizations. See Loans and excess mortgage servicing rights sold to agencies and other third-party-sponsored securitization entities on
pages 146–147
of this Note for information on the Firm’s loan sales to U.S. government agencies.
|
(b)
|
Consists of securities backed by commercial loans (predominantly real estate) and non-mortgage-related consumer receivables purchased from third parties. The Firm generally does not retain a residual interest in its sponsored commercial mortgage securitization transactions.
|
(c)
|
The table above excludes the following: retained servicing (see Note 16 on
pages 148–151
of this Form 10-Q for a discussion of MSRs); securities retained from loans sales to U.S. government agencies; interest rate and foreign exchange derivatives primarily used to manage interest rate and foreign exchange risks of securitization entities (See Note 5 on
pages 100–109
of this Form 10-Q for further information on derivatives); senior and subordinated securities of
$156 million
and
$77 million
, respectively, at March 31, 2014, and
$151 million
and
$30 million
, respectively, at December 31, 2013, which the Firm purchased in connection with CIB’s secondary market-making activities.
|
(d)
|
Includes interests held in re-securitization transactions.
|
(e)
|
As of March 31, 2014, and December 31, 2013,
68%
and
69%
, respectively, of the Firm’s retained securitization interests, which are carried at fair value, were risk-rated “A” or better, on an S&P-equivalent basis. The retained interests in prime residential mortgages consisted of
$528 million
and
$551 million
of investment-grade and
$226 million
and
$260 million
of noninvestment-grade retained interests at March 31, 2014, and December 31, 2013, respectively. The retained interests in commercial and other securitizations trusts consisted of
$3.9 billion
and
$3.9 billion
of investment-grade and
$86 million
and
$80 million
of noninvestment-grade retained interests at March 31, 2014, and December 31, 2013, respectively.
|
(in billions)
|
Fair value of assets held by VIEs
|
Liquidity facilities
|
Excess/(deficit)
(a)
|
Maximum exposure
|
||||||||
Nonconsolidated municipal bond vehicles
|
|
|
|
|
||||||||
March 31, 2014
|
$
|
11.8
|
|
$
|
6.6
|
|
$
|
5.2
|
|
$
|
6.6
|
|
December 31, 2013
|
11.8
|
|
6.9
|
|
4.9
|
|
6.9
|
|
|
Ratings profile of VIE assets
(b)
|
Fair value of assets held by VIEs
|
Wt. avg. expected life of assets (years)
|
|||||||||||||||||
|
Investment-grade
|
|
Noninvestment- grade
|
|||||||||||||||||
(in billions, except where otherwise noted)
|
AAA to AAA-
|
AA+ to AA-
|
A+ to A-
|
BBB+ to BBB-
|
|
BB+ and below
|
||||||||||||||
March 31, 2014
|
$
|
2.9
|
|
$
|
8.7
|
|
$
|
0.2
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
11.8
|
|
5.1
|
December 31, 2013
|
2.7
|
|
8.9
|
|
0.2
|
|
—
|
|
|
—
|
|
11.8
|
|
7.2
|
(a)
|
Represents the excess/(deficit) of the fair values of municipal bond assets available to repay the liquidity facilities, if drawn.
|
(b)
|
The ratings scale is presented on an S&P-equivalent basis.
|
March 31, 2014
(in billions)
|
Net derivative receivables
|
Total
exposure
|
Par value of collateral held by VIEs
(a)
|
||||||
Credit-related notes
|
|
|
|
||||||
Static structure
|
$
|
0.1
|
|
$
|
0.1
|
|
$
|
3.8
|
|
Managed structure
|
—
|
|
—
|
|
3.5
|
|
|||
Total credit-related notes
|
0.1
|
|
0.1
|
|
7.3
|
|
|||
Asset swaps
|
0.6
|
|
0.6
|
|
7.7
|
|
|||
Total
|
$
|
0.7
|
|
$
|
0.7
|
|
$
|
15.0
|
|
|
|
|
|
||||||
December 31, 2013
(in billions)
|
Net derivative receivables
|
Total
exposure
|
Par value of collateral held by VIEs
(a)
|
||||||
Credit-related notes
|
|
|
|
||||||
Static structure
|
$
|
—
|
|
$
|
—
|
|
$
|
4.8
|
|
Managed structure
|
—
|
|
—
|
|
3.9
|
|
|||
Total credit-related notes
|
—
|
|
—
|
|
8.7
|
|
|||
Asset swaps
|
0.4
|
|
0.4
|
|
7.7
|
|
|||
Total
|
$
|
0.4
|
|
$
|
0.4
|
|
$
|
16.4
|
|
(a)
|
The Firm’s maximum exposure arises through the derivatives executed with the VIEs; the exposure varies over time with changes in the fair value of the derivatives. The Firm relies on the collateral held by the VIEs to pay any amounts due under the derivatives; the vehicles are structured at inception so that the par value of the collateral is expected to be sufficient to pay amounts due under the derivative contracts.
|
|
Assets
|
|
Liabilities
|
|||||||||||||||||||
March 31, 2014
(in billions)
(a)
|
Trading assets –
debt and equity instruments |
Loans
|
Other
(d)
|
Total
assets
(e)
|
|
Beneficial interests in
VIE assets
(f)
|
Other
(g)
|
Total
liabilities
|
||||||||||||||
VIE program type
|
|
|
|
|
|
|
|
|
||||||||||||||
Firm-sponsored credit card trusts
|
$
|
—
|
|
$
|
43.5
|
|
$
|
0.7
|
|
$
|
44.2
|
|
|
$
|
27.0
|
|
$
|
—
|
|
$
|
27.0
|
|
Firm-administered multi-seller conduits
|
—
|
|
16.6
|
|
0.1
|
|
16.7
|
|
|
12.0
|
|
—
|
|
12.0
|
|
|||||||
Municipal bond vehicles
|
3.1
|
|
—
|
|
—
|
|
3.1
|
|
|
2.6
|
|
—
|
|
2.6
|
|
|||||||
Mortgage securitization entities
(b)
|
2.3
|
|
1.6
|
|
—
|
|
3.9
|
|
|
2.9
|
|
0.9
|
|
3.8
|
|
|||||||
Other
(c)
|
0.8
|
|
2.4
|
|
1.0
|
|
4.2
|
|
|
2.3
|
|
0.1
|
|
2.4
|
|
|||||||
Total
|
$
|
6.2
|
|
$
|
64.1
|
|
$
|
1.8
|
|
$
|
72.1
|
|
|
$
|
46.8
|
|
$
|
1.0
|
|
$
|
47.8
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Assets
|
|
Liabilities
|
|||||||||||||||||||
December 31, 2013 (in billions)
(a)
|
Trading assets –
debt and equity instruments |
Loans
|
Other
(d)
|
Total
assets
(e)
|
|
Beneficial interests in
VIE assets
(f)
|
Other
(g)
|
Total
liabilities
|
||||||||||||||
VIE program type
|
|
|
|
|
|
|
|
|
||||||||||||||
Firm-sponsored credit card trusts
|
$
|
—
|
|
$
|
46.9
|
|
$
|
1.1
|
|
$
|
48.0
|
|
|
$
|
26.6
|
|
$
|
—
|
|
$
|
26.6
|
|
Firm-administered multi-seller conduits
|
—
|
|
19.0
|
|
0.1
|
|
19.1
|
|
|
14.9
|
|
—
|
|
14.9
|
|
|||||||
Municipal bond vehicles
|
3.4
|
|
—
|
|
—
|
|
3.4
|
|
|
2.9
|
|
—
|
|
2.9
|
|
|||||||
Mortgage securitization entities
(b)
|
2.3
|
|
1.7
|
|
—
|
|
4.0
|
|
|
2.9
|
|
0.9
|
|
3.8
|
|
|||||||
Other
(c)
|
0.7
|
|
2.5
|
|
1.0
|
|
4.2
|
|
|
2.3
|
|
0.2
|
|
2.5
|
|
|||||||
Total
|
$
|
6.4
|
|
$
|
70.1
|
|
$
|
2.2
|
|
$
|
78.7
|
|
|
$
|
49.6
|
|
$
|
1.1
|
|
$
|
50.7
|
|
(a)
|
Excludes intercompany transactions which were eliminated in consolidation.
|
(b)
|
Includes residential and commercial mortgage securitizations as well as re-securitizations.
|
(c)
|
Primarily comprises student loan securitization entities. The Firm consolidated
$2.4 billion
and
$2.5 billion
of student loan securitization entities as of March 31, 2014, and December 31, 2013, respectively.
|
(d)
|
Includes assets classified as cash, derivative receivables, AFS securities, and other assets within the Consolidated Balance Sheets.
|
(e)
|
The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The difference between total assets and total liabilities recognized for consolidated VIEs represents the Firm’s interest in the consolidated VIEs for each program type.
|
(f)
|
The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified in the line item on the Consolidated Balance Sheets titled, “Beneficial interests issued by consolidated variable interest entities.” The holders of these beneficial interests do not have recourse to the general credit of
JPMorgan Chase
. Included in beneficial interests in VIE assets are long-term beneficial interests of
$32.2 billion
and
$31.8 billion
at March 31, 2014, and December 31, 2013, respectively. The maturities of the long-term beneficial interests as of March 31, 2014, were as follows:
$4.8 billion
under one year,
$20.0 billion
between one and five years, and
$7.4 billion
over five years, all respectively.
|
(g)
|
Includes liabilities classified as accounts payable and other liabilities in the Consolidated Balance Sheets.
|
|
Three months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
||||||||||
(in millions, except rates)
(a)
|
Residential mortgage
(d)
|
Commercial and other
(e)
|
|
Residential mortgage
(d)
|
Commercial and other
(e)
|
||||||||
Principal securitized
|
$
|
356
|
|
$
|
2,027
|
|
|
$
|
616
|
|
$
|
2,206
|
|
All cash flows during the period:
|
|
|
|
|
|
||||||||
Proceeds from new securitizations
(b)
|
$
|
351
|
|
$
|
2,044
|
|
|
$
|
634
|
|
$
|
2,277
|
|
Servicing fees collected
|
139
|
|
1
|
|
|
127
|
|
1
|
|
||||
Purchases of previously transferred financial assets (or the underlying collateral)
(c)
|
3
|
|
—
|
|
|
252
|
|
—
|
|
||||
Cash flows received on interests
|
44
|
|
62
|
|
|
25
|
|
64
|
|
(a)
|
Excludes re-securitization transactions.
|
(b)
|
For the three months ended March 31, 2014,
$330 million
and
$21 million
of proceeds from residential mortgage securitizations were received as securities classified in levels 2 and 3 of the fair value hierarchy, respectively. For the three months ended March 31, 2014,
$2.0 billion
of proceeds from commercial mortgage securitizations were received as securities classified in level 2 of the fair value hierarchy. For the three months ended March 31, 2013,
$634 million
of proceeds from residential mortgage securitizations were received as securities classified in level 2 of the fair value hierarchy. For the three months ended March 31, 2013,
$2.1 billion
of commercial mortgage securitizations were received as securities classified in level 2 of the fair value hierarchy and
$207 million
of proceeds from commercial mortgage securitizations were received as cash.
|
(c)
|
Includes cash paid by the Firm to reacquire assets from off–balance sheet, nonconsolidated entities – for example, loan repurchases due to representation and warranties and servicer clean-up calls.
|
(d)
|
Includes prime, Alt-A, subprime, and option ARMs. Excludes sales for which the Firm did not securitize the loan (including loans sold to Ginnie Mae, Fannie Mae and Freddie Mac).
|
(e)
|
Includes commercial and student loan securitizations.
|
|
Three months ended
March 31,
|
|||||
(in millions)
|
2014
|
2013
|
||||
Carrying value of loans sold
(a)
|
$
|
13,920
|
|
$
|
54,880
|
|
Proceeds received from loan sales as cash
|
39
|
|
166
|
|
||
Proceeds from loans sales as securities
(b)
|
13,735
|
|
54,169
|
|
||
Total proceeds received from loan sales
(c)
|
$
|
13,774
|
|
$
|
54,335
|
|
Gains on loan sales
(d)
|
37
|
|
138
|
|
(a)
|
Predominantly to U.S. government agencies.
|
(b)
|
Predominantly includes securities from U.S. government agencies that are generally sold shortly after receipt.
|
(c)
|
Excludes the value of MSRs retained upon the sale of loans. Gains on loans sales include the value of MSRs.
|
(d)
|
The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale.
|
|
|
|
|
|
|
|
|
|
Liquidation losses
|
|||||||||||||||
|
Securitized assets
|
|
90 days past due
|
|
Three months ended March 31,
|
|||||||||||||||
(in millions)
|
March 31, 2014
|
December 31, 2013
|
|
March 31, 2014
|
December 31, 2013
|
|
2014
|
2013
|
||||||||||||
Securitized loans
(a)
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
||||||||||||
Prime / Alt-A & Option ARMs
|
$
|
87,491
|
|
$
|
90,381
|
|
|
$
|
14,117
|
|
$
|
14,882
|
|
|
$
|
659
|
|
$
|
1,649
|
|
Subprime
|
26,667
|
|
28,008
|
|
|
6,936
|
|
7,726
|
|
|
739
|
|
783
|
|
||||||
Commercial and other
|
86,714
|
|
98,018
|
|
|
611
|
|
2,350
|
|
|
234
|
|
146
|
|
||||||
Total loans securitized
(b)
|
$
|
200,872
|
|
$
|
216,407
|
|
|
$
|
21,664
|
|
$
|
24,958
|
|
|
$
|
1,632
|
|
$
|
2,578
|
|
(a)
|
Total assets held in securitization-related SPEs were
$265.3 billion
and
$271.7 billion
, respectively, at March 31, 2014, and December 31, 2013. The
$200.9 billion
and
$216.4 billion
, respectively, of loans securitized at March 31, 2014, and December 31, 2013, excluded:
$59.9 billion
and
$50.8 billion
, respectively, of securitized loans in which the Firm has no continuing involvement, and
$4.5 billion
and
$4.5 billion
, respectively, of loan securitizations consolidated on the Firm’s Consolidated Balance Sheets at March 31, 2014, and December 31, 2013.
|
(b)
|
Includes securitized loans that were previously recorded at fair value and classified as trading assets.
|
(in millions)
|
March 31, 2014
|
December 31, 2013
|
||||
Goodwill
|
$
|
48,065
|
|
$
|
48,081
|
|
Mortgage servicing rights
|
8,552
|
|
9,614
|
|
||
Other intangible assets:
|
|
|
||||
Purchased credit card relationships
|
$
|
86
|
|
$
|
131
|
|
Other credit card-related intangibles
|
159
|
|
173
|
|
||
Core deposit intangibles
|
116
|
|
159
|
|
||
Other intangibles
|
1,128
|
|
1,155
|
|
||
Total other intangible assets
|
$
|
1,489
|
|
$
|
1,618
|
|
(in millions)
|
March 31, 2014
|
December 31, 2013
|
||||
Consumer & Community Banking
|
$
|
30,960
|
|
$
|
30,985
|
|
Corporate & Investment Bank
|
6,891
|
|
6,888
|
|
||
Commercial Banking
|
2,862
|
|
2,862
|
|
||
Asset Management
|
6,975
|
|
6,969
|
|
||
Corporate/Private Equity
|
377
|
|
377
|
|
||
Total goodwill
|
$
|
48,065
|
|
$
|
48,081
|
|
|
|
Three months ended March 31,
|
||||||
(in millions)
|
|
2014
|
|
2013
|
||||
Balance at beginning of period
(a)
|
|
$
|
48,081
|
|
|
$
|
48,175
|
|
Changes during the period from:
|
|
|
|
|
||||
Business combinations
|
|
9
|
|
|
25
|
|
||
Dispositions
|
|
—
|
|
|
—
|
|
||
Other
(b)
|
|
(25
|
)
|
|
(133
|
)
|
||
Balance at March 31,
(a)
|
|
$
|
48,065
|
|
|
$
|
48,067
|
|
(a)
|
Reflects gross goodwill balances as the Firm has not recognized any impairment losses to date.
|
(b)
|
Includes foreign currency translation adjustments and other tax-related adjustments.
|
(a)
|
Predominantly represents excess mortgage servicing rights transferred to agency-sponsored trusts in exchange for stripped mortgage-backed securities (“SMBS”). In each transaction, a portion of the SMBS was acquired by third parties at the transaction date; the Firm acquired and has retained the remaining balance of those SMBS as trading securities. Also includes sales of MSRs for the
three months ended
March 31, 2014
and
2013
.
|
(b)
|
Included changes related to commercial real estate of
$(2) million
and
$(2) million
for the
three months ended
March 31, 2014
and
2013
, respectively.
|
(c)
|
Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.
|
(d)
|
Represents changes in prepayments other than those attributable to changes in market interest rates.
|
(e)
|
Included
$16 million
and
$21 million
related to commercial real estate at
March 31, 2014
and
2013
, respectively.
|
(f)
|
Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest to a trust, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm’s credit risk associated with these advances is minimal because reimbursement of the advances is typically senior to all cash payments to investors. In addition, the Firm maintains the right to stop payment to investors if the collateral is insufficient to cover the advance. However, certain of these servicer advances may not be recoverable if they were not made in accordance with applicable rules and agreements.
|
(g)
|
For the
three months ended
March 31, 2014
, the decrease was primarily related to higher capital allocated to the Mortgage Servicing business, which, in turn, resulted in an increase in the option adjusted spread (“OAS”). The resulting OAS assumption continues to be consistent with capital and return requirements that the Firm believes a market participant would consider, taking into account factors such as the current operating risk environment and regulatory and economic capital requirements.
|
(h)
|
For the
three months ended
March 31, 2013
, the increase was driven by the inclusion in the MSR valuation model of servicing fees receivable on certain delinquent loans.
|
(i)
|
For the
three months ended
March 31, 2013
, the decrease was driven by changes in the inputs and assumptions used to derive prepayment speeds, primarily increases in home prices.
|
|
|
Three months
ended March 31, |
||||||
(in millions)
|
|
2014
|
|
2013
|
||||
CCB mortgage fees and related income
|
|
|
|
|
||||
Net production revenue:
|
|
|
|
|
||||
Production revenue
|
|
$
|
161
|
|
|
$
|
995
|
|
Repurchase losses
|
|
128
|
|
|
(81
|
)
|
||
Net production revenue
|
|
289
|
|
|
914
|
|
||
Net mortgage servicing revenue
|
|
|
|
|
|
|
||
Operating revenue:
|
|
|
|
|
|
|
||
Loan servicing revenue
|
|
870
|
|
|
936
|
|
||
Changes in MSR asset fair value due to collection/realization of expected cash flows
|
|
(245
|
)
|
|
(258
|
)
|
||
Total operating revenue
|
|
625
|
|
|
678
|
|
||
Risk management:
|
|
|
|
|
|
|
||
Changes in MSR asset fair value due to market interest rates and other
(a)
|
|
(362
|
)
|
|
546
|
|
||
Other changes in MSR asset fair value due to other inputs and assumptions in model
(b)
|
|
(460
|
)
|
|
(237
|
)
|
||
Change in derivative fair value and other
|
|
422
|
|
|
(451
|
)
|
||
Total risk management
|
|
(400
|
)
|
|
(142
|
)
|
||
Total CCB net mortgage servicing revenue
|
|
225
|
|
|
536
|
|
||
All other
|
|
—
|
|
|
2
|
|
||
Mortgage fees and related income
|
|
$
|
514
|
|
|
$
|
1,452
|
|
(a)
|
Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.
|
(b)
|
Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices).
|
(in millions, except rates)
|
March 31, 2014
|
|
December 31, 2013
|
|||||
Weighted-average prepayment speed assumption (“CPR”)
|
8.35
|
%
|
|
8.07
|
%
|
|||
Impact on fair value of 10% adverse change
|
$
|
(370
|
)
|
|
$
|
(362
|
)
|
|
Impact on fair value of 20% adverse change
|
(718
|
)
|
|
(705
|
)
|
|||
Weighted-average option adjusted spread
|
9.05
|
%
|
|
7.77
|
%
|
|||
Impact on fair value of 100 basis points adverse change
|
$
|
(364
|
)
|
|
$
|
(389
|
)
|
|
Impact on fair value of 200 basis points adverse change
|
(700
|
)
|
|
(750
|
)
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||
(in millions)
|
|
Gross amount
(a)
|
Accumulated amortization
(a)
|
Net carrying value
|
|
Gross
amount
|
Accumulated amortization
|
Net carrying value
|
||||||||||||
Purchased credit card relationships
|
|
$
|
3,540
|
|
$
|
3,454
|
|
$
|
86
|
|
|
$
|
3,540
|
|
$
|
3,409
|
|
$
|
131
|
|
Other credit card-related intangibles
|
|
541
|
|
382
|
|
159
|
|
|
542
|
|
369
|
|
173
|
|
||||||
Core deposit intangibles
|
|
4,131
|
|
4,015
|
|
116
|
|
|
4,133
|
|
3,974
|
|
159
|
|
||||||
Other intangibles
(b)
|
|
2,276
|
|
1,148
|
|
1,128
|
|
|
2,374
|
|
1,219
|
|
1,155
|
|
(a)
|
The decrease in the gross amount and accumulated amortization from
December 31, 2013
, was due to the removal of fully amortized assets.
|
(b)
|
Includes intangible assets of approximately
$600 million
consisting primarily of asset management advisory contracts, which were determined to have an indefinite life and are not amortized.
|
|
|
Three months ended March 31,
|
|||||
(in millions)
|
|
2014
|
2013
|
||||
Purchased credit card relationships
|
|
$
|
45
|
|
$
|
53
|
|
Other credit card-related intangibles
|
|
13
|
|
14
|
|
||
Core deposit intangibles
|
|
43
|
|
50
|
|
||
Other intangibles
|
|
30
|
|
35
|
|
||
Total amortization expense
|
|
$
|
131
|
|
$
|
152
|
|
For the year (in millions)
|
Purchased credit card relationships
|
Other credit
card-related intangibles
|
Core deposit intangibles
|
Other
intangibles
|
Total
|
||||||||||
2014
(a)
|
$
|
96
|
|
$
|
51
|
|
$
|
102
|
|
$
|
110
|
|
$
|
359
|
|
2015
|
12
|
|
39
|
|
26
|
|
92
|
|
169
|
|
|||||
2016
|
9
|
|
34
|
|
14
|
|
81
|
|
138
|
|
|||||
2017
|
5
|
|
28
|
|
7
|
|
58
|
|
98
|
|
|||||
2018
|
3
|
|
20
|
|
5
|
|
52
|
|
80
|
|
(a)
|
Includes
$45 million
,
$13 million
,
$43 million
and
$30 million
of amortization expense related to purchased credit card relationships, other credit card-related intangibles, core deposit intangibles and other intangibles, respectively, recognized during the
three months ended
March 31, 2014
.
|
(in millions)
|
March 31, 2014
|
|
December 31, 2013
|
||||
U.S. offices
|
|
|
|
||||
Noninterest-bearing
|
$
|
384,503
|
|
|
$
|
389,863
|
|
Interest-bearing:
|
|
|
|
||||
Demand
(a)
|
71,346
|
|
|
84,631
|
|
||
Savings
(b)
|
464,769
|
|
|
450,405
|
|
||
Time (included
$6,579
and $5,995 at fair value)
(c)
|
89,526
|
|
|
91,356
|
|
||
Total interest-bearing deposits
|
625,641
|
|
|
626,392
|
|
||
Total deposits in U.S. offices
|
1,010,144
|
|
|
1,016,255
|
|
||
Non-U.S. offices
|
|
|
|
||||
Noninterest-bearing
|
13,590
|
|
|
17,611
|
|
||
Interest-bearing:
|
|
|
|
||||
Demand
|
217,159
|
|
|
214,391
|
|
||
Savings
|
1,522
|
|
|
1,083
|
|
||
Time (included
$869
and $629 at fair value)
(c)
|
40,290
|
|
|
38,425
|
|
||
Total interest-bearing deposits
|
258,971
|
|
|
253,899
|
|
||
Total deposits in non-U.S. offices
|
272,561
|
|
|
271,510
|
|
||
Total deposits
|
$
|
1,282,705
|
|
|
$
|
1,287,765
|
|
(a)
|
Includes Negotiable Order of Withdrawal (“NOW”) accounts, and certain trust accounts.
|
(b)
|
Includes Money Market Deposit Accounts (“MMDAs”).
|
(c)
|
Includes structured notes classified as deposits for which the fair value option has been elected. For further discussion, see Note 4 on pages 215–218 of JPMorgan Chase’s 2013
Annual Report
.
|
(in millions, except per share amounts)
|
Three months ended March 31,
|
|||||
2014
|
2013
|
|||||
Basic earnings per share
|
|
|
||||
Net income
|
$
|
5,274
|
|
$
|
6,529
|
|
Less: Preferred stock dividends
|
227
|
|
182
|
|
||
Net income applicable to common equity
|
5,047
|
|
6,347
|
|
||
Less: Dividends and undistributed earnings allocated to participating securities
|
149
|
|
216
|
|
||
Net income applicable to
common stockholders
|
$
|
4,898
|
|
$
|
6,131
|
|
Total weighted-average
basic shares outstanding
|
3,787.2
|
|
3,818.2
|
|
||
Net income per share
|
$
|
1.29
|
|
$
|
1.61
|
|
|
|
|
||||
Diluted earnings per share
|
|
|
||||
Net income applicable to
common stockholders
|
$
|
4,898
|
|
$
|
6,131
|
|
Total weighted-average
basic shares outstanding
|
3,787.2
|
|
3,818.2
|
|
||
Add: Employee stock options,
SARs and warrants
(a)
|
36.4
|
|
28.8
|
|
||
Total weighted-average
diluted shares outstanding
(b)
|
3,823.6
|
|
3,847.0
|
|
||
Net income per share
|
$
|
1.28
|
|
$
|
1.59
|
|
(a)
|
Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans and the warrants originally issued in 2008 under the U.S. Treasury’s Capital Purchase Program to purchase shares of the Firm’s common stock. The aggregate number of shares issuable upon the exercise of such options and warrants was
1 million
and
13 million
for the
three months ended
March 31, 2014
and
2013
, respectively.
|
(b)
|
Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.
|
As of or for the three months ended
March 31, 2014
|
Unrealized gains/(losses) on investment securities
(a)
|
|
Translation adjustments, net of hedges
|
|
Cash flow hedges
|
|
Defined benefit pension and OPEB plans
|
|
Accumulated other comprehensive income/(loss)
|
|
||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||||||
Balance at January 1, 2014
|
|
$
|
2,798
|
|
|
|
|
$
|
(136
|
)
|
|
|
|
$
|
(139
|
)
|
|
|
|
$
|
(1,324
|
)
|
|
|
|
$
|
1,199
|
|
|
|
Net change
|
|
994
|
|
(b)
|
|
|
(2
|
)
|
|
|
|
59
|
|
|
|
|
26
|
|
|
|
|
1,077
|
|
|
|
|||||
Balance at March 31, 2014
|
|
$
|
3,792
|
|
|
|
|
$
|
(138
|
)
|
|
|
|
$
|
(80
|
)
|
|
|
|
$
|
(1,298
|
)
|
|
|
|
$
|
2,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of or for the three months ended
March 31, 2013
|
Unrealized gains/(losses) on investment
securities
(a)
|
|
Translation adjustments, net of hedges
|
|
Cash flow hedges
|
|
Defined benefit pension and OPEB plans
|
|
Accumulated other comprehensive income/(loss)
|
|
||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||||||
Balance at January 1, 2013
|
|
$
|
6,868
|
|
|
|
|
$
|
(95
|
)
|
|
|
|
$
|
120
|
|
|
|
|
$
|
(2,791
|
)
|
|
|
|
$
|
4,102
|
|
|
|
Net change
|
|
(640
|
)
|
(c)
|
|
|
(13
|
)
|
|
|
|
(62
|
)
|
|
|
|
104
|
|
|
|
|
(611
|
)
|
|
|
|||||
Balance at March 31, 2013
|
|
$
|
6,228
|
|
|
|
|
$
|
(108
|
)
|
|
|
|
$
|
58
|
|
|
|
|
$
|
(2,687
|
)
|
|
|
|
$
|
3,491
|
|
|
|
(a)
|
Represents the after-tax difference between the fair value and amortized cost of securities accounted for as AFS; including, as of the date of transfer during the first quarter of 2014,
$9 million
of net unrealized losses related to AFS securities that were transferred to HTM. Subsequent to transfer, includes any net unamortized unrealized gains and losses related to the transferred securities.
|
(b)
|
The net change for the three months ended March 31, 2014, was primarily related to higher market valuations of obligations of U.S. states and municipalities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
||||||||||||||||||||
Three months ended March 31, (in millions)
|
Pretax
|
|
Tax effect
|
|
After-tax
|
|
Pretax
|
|
Tax effect
|
|
After-tax
|
||||||||||||
Unrealized gains/(losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized gains/(losses) arising during the period
|
$
|
1,621
|
|
|
$
|
(609
|
)
|
|
$
|
1,012
|
|
|
$
|
(515
|
)
|
|
$
|
185
|
|
|
$
|
(330
|
)
|
Reclassification adjustment for realized (gains)/losses included in net income
(a)
|
(30
|
)
|
|
12
|
|
|
(18
|
)
|
|
(509
|
)
|
|
199
|
|
|
(310
|
)
|
||||||
Net change
|
1,591
|
|
|
(597
|
)
|
|
994
|
|
|
(1,024
|
)
|
|
384
|
|
|
(640
|
)
|
||||||
Translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Translation
(b)
|
154
|
|
|
(63
|
)
|
|
91
|
|
|
(427
|
)
|
|
158
|
|
|
(269
|
)
|
||||||
Hedges
(b)
|
(154
|
)
|
|
61
|
|
|
(93
|
)
|
|
420
|
|
|
(164
|
)
|
|
256
|
|
||||||
Net change
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(7
|
)
|
|
(6
|
)
|
|
(13
|
)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized gains/(losses) arising during the period
|
72
|
|
|
(30
|
)
|
|
42
|
|
|
(130
|
)
|
|
51
|
|
|
(79
|
)
|
||||||
Reclassification adjustment for realized (gains)/losses included in net income
(c)
|
27
|
|
|
(10
|
)
|
|
17
|
|
|
29
|
|
|
(12
|
)
|
|
17
|
|
||||||
Net change
|
99
|
|
|
(40
|
)
|
|
59
|
|
|
(101
|
)
|
|
39
|
|
|
(62
|
)
|
||||||
Defined benefit pension and OPEB plans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net gains/(losses) arising during the period
|
69
|
|
|
(26
|
)
|
|
43
|
|
|
48
|
|
|
(10
|
)
|
|
38
|
|
||||||
Reclassification adjustments included in net income
(d)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of net loss
|
18
|
|
|
(8
|
)
|
|
10
|
|
|
81
|
|
|
(31
|
)
|
|
50
|
|
||||||
Prior service costs/(credits)
|
(10
|
)
|
|
4
|
|
|
(6
|
)
|
|
(11
|
)
|
|
4
|
|
|
(7
|
)
|
||||||
Foreign exchange and other
|
(4
|
)
|
|
(17
|
)
|
|
(21
|
)
|
|
37
|
|
|
(14
|
)
|
|
23
|
|
||||||
Net change
|
73
|
|
|
(47
|
)
|
|
26
|
|
|
155
|
|
|
(51
|
)
|
|
104
|
|
||||||
Total other comprehensive income/(loss)
|
$
|
1,763
|
|
|
$
|
(686
|
)
|
|
$
|
1,077
|
|
|
$
|
(977
|
)
|
|
$
|
366
|
|
|
$
|
(611
|
)
|
(a)
|
The pretax amount is reported in securities gains in the Consolidated Statements of Income.
|
(b)
|
Reclassifications of pretax realized gains/(losses) on translation adjustments and related hedges are reported in other income in the Consolidated Statements of Income. The amounts were not material for the three months ended March 31, 2014 and 2013.
|
(c)
|
The pretax amount is reported in the same line as the hedged items, which are predominantly recorded in net interest income in the Consolidated Statements of Income.
|
(d)
|
The pretax amount is reported in compensation expense in the Consolidated Statements of Income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JPMorgan Chase & Co.
(d)
|
JPMorgan Chase Bank, N.A.
(d)
|
Chase Bank USA, N.A.
(d)
|
Well-capitalized ratios
(e)
|
|
Minimum capital ratios
(e)
|
|
||||||||||||||||||||
|
Basel III Standardized Transitional
|
|
Basel I
|
Basel III Standardized Transitional
|
|
Basel I
|
Basel III Standardized Transitional
|
|
Basel I
|
|
|
||||||||||||||||
(in millions, except ratios)
|
March 31, 2014
|
|
December 31, 2013
|
March 31, 2014
|
|
December 31, 2013
|
March 31, 2014
|
|
December 31, 2013
|
|
|
||||||||||||||||
Regulatory capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Tier 1 common capital
|
$
|
156,874
|
|
|
N/A
|
|
$
|
145,021
|
|
|
N/A
|
|
$
|
13,545
|
|
|
N/A
|
|
|
|
|
|
|||||
Tier 1 capital
(a)
|
173,431
|
|
|
$
|
165,663
|
|
145,033
|
|
|
$
|
139,727
|
|
13,545
|
|
|
$
|
12,956
|
|
|
|
|
|
|||||
Total capital
|
208,430
|
|
|
199,286
|
|
164,542
|
|
|
165,496
|
|
19,413
|
|
|
16,389
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Risk-weighted
(b)
|
$
|
1,438,354
|
|
|
$
|
1,387,863
|
|
$
|
1,201,279
|
|
|
$
|
1,171,574
|
|
$
|
95,796
|
|
|
$
|
100,990
|
|
|
|
|
|
||
Adjusted average
(c)
|
2,355,690
|
|
|
2,343,713
|
|
1,889,491
|
|
|
1,900,770
|
|
111,374
|
|
|
109,731
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Capital ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Tier 1 common
|
10.9
|
%
|
|
N/A
|
|
12.1
|
%
|
|
N/A
|
|
14.1
|
%
|
|
N/A
|
|
N/A
|
|
|
4.0
|
%
|
|
||||||
Tier 1
(a)
|
12.1
|
|
|
11.9
|
%
|
12.1
|
|
|
11.9
|
%
|
14.1
|
|
|
12.8
|
%
|
6.0
|
%
|
|
5.5
|
|
|
||||||
Total
|
14.5
|
|
|
14.4
|
|
13.7
|
|
|
14.1
|
|
20.3
|
|
|
16.2
|
|
10.0
|
|
|
8.0
|
|
|
||||||
Tier 1 leverage
|
7.4
|
|
|
7.1
|
|
7.7
|
|
|
7.4
|
|
12.2
|
|
|
11.8
|
|
5.0
|
|
(f)
|
4.0
|
|
|
(a)
|
At March 31, 2014, trust preferred securities included in Basel III Tier 1 capital were
$2.7 billion
and
$300 million
for
JPMorgan Chase
and JPMorgan Chase Bank, N.A., respectively. At March 31, 2014, Chase Bank USA, N.A. had
no
trust preferred securities.
|
(b)
|
Included off–balance sheet RWA at March 31, 2014, of
$329.4 billion
,
$323.7 billion
and
$14 million
, and at December 31, 2013, of
$315.9 billion
,
$304.0 billion
and
$14 million
, for
JPMorgan Chase
,
JPMorgan Chase Bank, N.A.
and Chase Bank USA, N.A., respectively.
|
(c)
|
Adjusted average assets, for purposes of calculating the leverage ratio, include total quarterly average assets adjusted for unrealized gains/(losses) on securities, less deductions for disallowed goodwill and other intangible assets, investments in certain subsidiaries, and the total adjusted carrying value of nonfinancial equity investments that are subject to deductions from Tier 1 capital.
|
(d)
|
Asset and capital amounts for
JPMorgan Chase
’s banking subsidiaries reflect intercompany transactions; whereas the respective amounts for
JPMorgan Chase
reflect the elimination of intercompany transactions.
|
(e)
|
As defined by the regulations issued by the Federal Reserve, OCC and FDIC. Beginning January 1, 2015, Basel III Transitional Tier 1 common and the Basel III Standardized Transitional Tier 1 common ratio become relevant capital measures under the prompt corrective action requirements as defined by the regulations.
|
(f)
|
Represents requirements for banking subsidiaries pursuant to regulations issued under the FDIC Improvement Act. There is no Tier 1 leverage component in the definition of a well-capitalized bank holding company.
|
Note:
|
Rating agencies allow measures of capital to be adjusted upward for deferred tax liabilities, which have resulted from both non-taxable business combinations and from tax-deductible goodwill. The Firm had deferred tax liabilities resulting from non-taxable business combinations totaling
$167 million
and
$192 million
at March 31, 2014, and December 31, 2013, respectively; and deferred tax liabilities resulting from tax-deductible goodwill of
$2.8 billion
at both March 31, 2014, and December 31, 2013.
|
(a)
|
At
March 31, 2014
, and
December 31, 2013
, reflects the contractual amount net of risk participations totaling
$365 million
and
$476 million
, respectively, for other unfunded commitments to extend credit;
$14.5 billion
and
$14.8 billion
, respectively, for standby letters of credit and other financial guarantees; and
$842 million
and
$622 million
, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations.
|
(b)
|
At
March 31, 2014
, and
December 31, 2013
, included credit enhancements and bond and commercial paper liquidity commitments to U.S. states and municipalities, hospitals and other non-profit entities of
$18.5 billion
and
$18.9 billion
, respectively, within other unfunded commitments to extend credit; and
$16.2 billion
and
$17.2 billion
, respectively, within standby letters of credit and other financial guarantees. Other unfunded commitments to extend credit also include liquidity facilities to nonconsolidated municipal bond VIEs; for further information, see Note 15 on
pages 141–147
of this Form 10-Q
.
|
(c)
|
At
March 31, 2014
, and
December 31, 2013
, included unissued standby letters of credit commitments of
$43.1 billion
and
$42.8 billion
, respectively.
|
(d)
|
At
March 31, 2014
, and
December 31, 2013
, collateral held by the Firm in support of securities lending indemnification agreements was
$228.4 billion
and
$176.4 billion
, respectively. Securities lending collateral comprises primarily cash and securities issued by governments that are members of the Organisation for Economic Co-operation and Development (“OECD”) and U.S. government agencies.
|
(e)
|
At
March 31, 2014
, and
December 31, 2013
, the amount of commitments related to forward-starting reverse repurchase agreements and securities borrowing agreements were
$27.1 billion
and
$9.9 billion
, respectively. Commitments related to unsettled reverse repurchase agreements and securities borrowing agreements with regular-way settlement periods were
$41.3 billion
and
$28.3 billion
, at
March 31, 2014
, and
December 31, 2013
, respectively.
|
(f)
|
At
March 31, 2014
, and
December 31, 2013
, included unfunded commitments of
$160 million
and
$215 million
, respectively, to third-party private equity funds; and
$1.9 billion
, at both
March 31, 2014
, and
December 31, 2013
, to other equity investments. These commitments included
$119 million
and
$184 million
, respectively, related to investments that are generally fair valued at net asset value as discussed in Note 3 on
pages 86–97
of
this Form 10-Q
. In addition, at
March 31, 2014
, and
December 31, 2013
, included letters of credit hedged by derivative transactions and managed on a market risk basis of
$4.4 billion
and
$4.5 billion
, respectively.
|
(g)
|
For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability; for derivative-related products, the carrying value represents the fair value.
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||
(in millions)
|
Standby letters of
credit and other financial guarantees
|
Other letters
of credit
|
|
Standby letters of
credit and other financial guarantees
|
Other letters
of credit
|
||||||||||||
Investment-grade
(a)
|
|
$
|
67,270
|
|
|
$
|
3,779
|
|
|
|
$
|
69,109
|
|
|
$
|
3,939
|
|
Noninvestment-grade
(a)
|
|
22,991
|
|
|
861
|
|
|
|
23,614
|
|
|
1,081
|
|
||||
Total contractual amount
|
|
$
|
90,261
|
|
|
$
|
4,640
|
|
|
|
$
|
92,723
|
|
|
$
|
5,020
|
|
Allowance for lending-related commitments
|
|
$
|
235
|
|
|
$
|
1
|
|
|
|
$
|
263
|
|
|
$
|
2
|
|
Commitments with collateral
|
|
40,160
|
|
|
1,543
|
|
|
|
40,410
|
|
|
1,473
|
|
(a)
|
The ratings scale is based on the Firm’s internal ratings which generally correspond to ratings as defined by S&P and Moody’s.
|
(a)
|
Presented net of third-party recoveries and include principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants, and certain related expense. Make-whole settlements were
$2 million
and
$121 million
for the
three months ended
March 31, 2014
and
2013
, respectively.
|
(b)
|
Included a provision related to new loan sales of
$1 million
and
$8 million
for the
three months ended
March 31, 2014
and
2013
, respectively.
|
As of or for the three months ended March 31,
(in millions, except ratios)
|
Corporate/Private Equity
|
|
Reconciling Items
(b)
|
|
Total
|
|||||||||||||||
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|||||||||||||
Noninterest revenue
|
$
|
524
|
|
$
|
361
|
|
|
$
|
(644
|
)
|
$
|
(564
|
)
|
|
$
|
12,326
|
|
$
|
14,189
|
|
Net interest income
|
(156
|
)
|
(594
|
)
|
|
(226
|
)
|
(162
|
)
|
|
10,667
|
|
10,933
|
|
||||||
Total net revenue
|
368
|
|
(233
|
)
|
|
(870
|
)
|
(726
|
)
|
|
22,993
|
|
25,122
|
|
||||||
Provision for credit losses
|
(11
|
)
|
(3
|
)
|
|
—
|
|
—
|
|
|
850
|
|
617
|
|
||||||
Noninterest expense
|
(166
|
)
|
2
|
|
|
—
|
|
—
|
|
|
14,636
|
|
15,423
|
|
||||||
Income/(loss) before income tax expense/(benefit)
|
545
|
|
(232
|
)
|
|
(870
|
)
|
(726
|
)
|
|
7,507
|
|
9,082
|
|
||||||
Income tax expense/(benefit)
|
205
|
|
(482
|
)
|
|
(870
|
)
|
(726
|
)
|
|
2,233
|
|
2,553
|
|
||||||
Net income/(loss)
|
$
|
340
|
|
$
|
250
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
5,274
|
|
$
|
6,529
|
|
Average common equity
|
$
|
66,797
|
|
$
|
69,733
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
201,797
|
|
$
|
194,733
|
|
Total assets
|
839,625
|
|
763,765
|
|
|
NA
|
|
NA
|
|
|
2,476,986
|
|
2,389,349
|
|
||||||
Return on average common equity
|
NM
|
|
NM
|
|
|
NM
|
|
NM
|
|
|
10
|
%
|
13
|
%
|
||||||
Overhead ratio
|
NM
|
|
NM
|
|
|
NM
|
|
NM
|
|
|
64
|
|
61
|
|
(a)
|
Managed basis starts with the reported U.S. GAAP results and includes certain reclassifications as discussed below that do not have any impact on net income as reported by the lines of business or by the Firm as a whole.
|
(b)
|
Segment managed results reflect revenue on a FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These FTE adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results.
|
GLOSSARY OF TERMS
|
LINE OF BUSINESS METRICS
|
•
|
Actual gross income earned from servicing third-party mortgage loans, such as contractually specified servicing fees and ancillary income; and
|
•
|
The change in the fair value of the MSR asset due to the collection or realization of expected cash flows.
|
|
|
Three months ended March 31,
|
||||||
(in millions)
|
|
2014
|
|
2013
|
||||
Total shares of common stock repurchased
|
|
7
|
|
|
54
|
|
||
Aggregate common stock repurchases
|
|
$
|
400
|
|
|
$
|
2,600
|
|
Three months ended March 31, 2014
|
|
Total shares of common stock repurchased
|
|
Average price paid per share of common stock
(a)
|
|
Aggregate repurchases of common equity (in millions)
(a)
|
|
Dollar value
of remaining
authorized
repurchase
(in millions)
(b)
|
|
|||||||
January
|
|
1,772,650
|
|
|
$
|
56.96
|
|
|
$
|
101
|
|
|
$
|
8,543
|
|
|
February
|
|
2,611,105
|
|
|
56.66
|
|
|
148
|
|
|
8,395
|
|
|
|||
March
|
|
2,349,739
|
|
|
58.29
|
|
|
137
|
|
|
8,258
|
|
|
|||
First quarter
|
|
6,733,494
|
|
|
$
|
57.31
|
|
|
$
|
386
|
|
|
$
|
8,258
|
|
|
(a)
|
Excludes commissions cost.
|
(b)
|
The amount authorized by the Board of Directors excludes commissions cost.
|
Three months ended
March 31, 2014 |
Total shares of common stock
repurchased
|
|
Average price
paid per share of common stock
|
|||
January
|
—
|
|
|
$
|
—
|
|
February
|
1,245
|
|
|
57.99
|
|
|
March
|
—
|
|
|
—
|
|
|
First quarter
|
1,245
|
|
|
$
|
57.99
|
|
|
10.1
|
Long-Term Incentive Plan Terms & Conditions for
restricted stock units for Operating Committee members, dated as of January 22, 2014
.
(a)(b)
|
15
|
Letter re: Unaudited Interim Financial Information
(b)
|
31.1
|
Certification
(b)
|
31.2
|
Certification
(b)
|
32
|
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(c)
|
101.INS XBRL
|
Instance Document
(b)(d)
|
101.SCH XBRL
|
Taxonomy Extension Schema Document
(b)
|
101.CAL XBRL
|
Taxonomy Extension Calculation Linkbase Document
(b)
|
101.LAB XBRL
|
Taxonomy Extension Label Linkbase Document
(b)
|
101.PRE XBRL
|
Taxonomy Extension Presentation Linkbase Document
(b)
|
101.DEF XBRL
|
Taxonomy Extension Definition Linkbase Document
(b)
|
(a)
|
This exhibit is a management contract or compensatory plan or arrangement.
|
(b)
|
Filed herewith.
|
(c)
|
Furnished herewith. This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
|
(d)
|
Pursuant to Rule 405 of Regulation S-T, includes the following financial information included in the Firm’s
Quarterly Report on Form 10-Q
for the quarterly period ended
March 31, 2014
, formatted in XBRL (eXtensible Business Reporting Language) interactive data files: (i) the Consolidated statements of income (unaudited) for the
three months ended
March 31, 2014
and
2013
, (ii) the Consolidated statements of comprehensive income (unaudited) for the
three months ended
March 31, 2014
and
2013
, (iii) the Consolidated balance sheets (unaudited) as of
March 31, 2014
, and
December 31, 2013
, (iv) the Consolidated statements of changes in stockholders’ equity (unaudited) for the
three months ended
March 31, 2014
and
2013
, (v) the Consolidated statements of cash flows (unaudited) for the
three months ended
March 31, 2014
and
2013
, and (vi) the Notes to Consolidated Financial Statements (unaudited).
|
JPMorgan Chase & Co.
|
(Registrant)
|
By:
|
/s/ Mark W. O’Donovan
|
|
Mark W. O’Donovan
|
|
Managing Director and Corporate Controller
|
|
(Principal Accounting Officer)
|
Date:
|
May 2, 2014
|
Exhibit No.
|
|
Description of Exhibit
|
|
|
|
10.1
|
|
Long-Term Incentive Plan Terms & Conditions for restricted stock units for Operating Committee members, dated as of January 22, 2014
|
|
|
|
15
|
|
Letter re: Unaudited Interim Financial Information
|
|
|
|
31.1
|
|
Certification
|
|
|
|
31.2
|
|
Certification
|
|
|
|
32
|
|
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002†
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
†
|
|
This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
|
Award
|
These terms and conditions are made part of the Award Agreement dated as of January 22, 2014 (“Grant
|
Agreement
|
Date") a
warding restricted stock units pursuant to the terms of the JPMorgan Chase & Co. Long-Term Incentive Plan (“Plan”). To the extent the terms of the Award Agreement (all references to which will include these terms and conditions) conflict with the Plan, the Plan will govern. The Award Agreement, the Plan and Prospectus supersede any other agreement, whether written or oral, that may have been entered into by the Firm and you relating to this award.
|
Form and
|
Each restricted stock unit represents a non-transferable right to receive one share of Common Stock as of
|
Purpose of Award
|
the a
pplicable vesting date as set forth in your Award Agreement.
|
|
The purpose of this award is to motivate your future performance for services to be provided during the vesting period and to align your interests with those of the Firm and its shareholders.
|
Dividend
|
If dividends are paid on Common Stock while restricted stock units under this award are outstanding, you
|
Equivalents
|
will be pa
id an amount equal to the dividend paid on one share of Common Stock, multiplied by the number of restricted stock units outstanding under this award.
|
Protection-
|
This award is intended and expected to vest on the applicable vesting date, provided that you are
|
Based Vesting
|
continuously em
ployed by the Firm through such vesting date, or you meet the requirements for continued vesting described under the captions “Job Elimination,” “Full Career Eligibility,” “Government Office” and “Disability.” However, vesting is subject to the sections of these terms and conditions captioned “
Bonus Recoupment
” and “
Recapture Provisions
” and the following protection-based vesting provisions.
|
•
|
Your performance in relation to the priorities for your position, or the Firm’s performance in relation to the priorities for which you share responsibility as a member of the Operating Committee, have been unsatisfactory for a sustained period of time. Among the factors the CEO may consider in assessing performance are net income, net revenue, return on equity, earnings per share and capital ratios of the Firm, both on an absolute basis and, as appropriate, relative to peer firms.
|
•
|
For any calendar year ending during the vesting period, JPMorgan Chase’s annual pre-provision net income reported at the Firm level is negative.
|
•
|
Awards granted to participants in a Line of Business, for which you exercise, or during the vesting period exercised, direct or indirect responsibility, were in whole or in part cancelled because the Line of Business did not meet its annual Line of Business Financial Threshold.
|
Vesting Period
|
The period from the Grant Date to the last vesting date is the “vesting period.” (See “Administrative Provision--No Ownership Rights” pursuant to which the Firm may place restrictions on delivered shares of Common Stock following a vesting date.)
|
Bonus
|
In consideration of the grant of this award, you agree that you are subject to the JPMorgan Chase Bonus
|
Recoupment
|
Recoupment Policy or successor policy as in effect from time to time
as it applies both to the cash incentive compensation awarded to you for performance year 2013 and to this award. You can access this policy through the following link:
|
Ø
Full Career Eligibility
|
Full Career Eligibility
:
In the event that
• you voluntarily terminate your employment with the Firm, have completed at least five years of continuous service with the Firm immediately preceding your termination date, and the sum of your age and Recognized Service (as defined below) on your date of termination equals or exceeds 60,
and
• you provide at least 90 days advance written notice to the Firm of your intention to voluntarily terminate your employment under this provision, during which notice period you provide such services as requested by the Firm in a cooperative and professional manner and you do not perform any services for any other employer,
and
• the Firm determines prior to the date your employment terminates that continued vesting is appropriate, which determination will be based on your performance and conduct (before and after providing notice),
and
• from your date of termination of employment through the applicable vesting date, you do not (i) perform services in any capacity (including self-employment) for a Financial Services Company (as defined below) or (ii) work in your profession (whether or not for a Financial Services Company); provided that you may work for a government, education or Not-for-Profit Organization (as defined below),
and
•
you satisfy the Release/Certification Requirements set forth below.
After receipt of such advance written notice, the Firm may choose to have you continue to provide services during such 90-day period or shorten the length of the 90-day period at the Firm’s discretion, but to a date no earlier than the date you would otherwise meet the age and service requirements.
Additional advance notice requirements may apply for employees subject to notice period policies. (See “Notice Period” below.)
|
Ø
Government Office
|
Government Office:
In the event that you voluntarily terminate your employment with the Firm to accept a Government Office or become a candidate for an elective Government Office, as described at the end of these terms and conditions under the section captioned “
Government Office
.”
|
Ø
Disability
|
Disability
:
In the event that
• your employment with the Firm terminates because (i) you are unable to return to work while you are receiving benefits under the JPMorgan Chase Long Term Disability Plan, or for non-U.S. employees, under the equivalent JPMorgan Chase-sponsored local country plan (in either case, “LTD Plan”), or (ii) if you are not covered by a LTD Plan, you are unable to return to work due to a long-term disability that would qualify for benefits under the applicable LTD Plan, as determined by the Firm or a third-party designated by the Firm; provided that you (x) request in writing continued vesting due to such disability within 30 days of the date your employment terminates, and (y) provide any requested supporting documentation and (z) receive the Firm’s written consent to such treatment,
and
• you satisfy the Release/Certification Requirements set forth below.
|
Release/
Certification
|
To qualify for continued vesting after termination of your employment under any of the foregoing circumstances:
• you must timely execute and deliver a release of claims in favor of the Firm, having such form and terms as the Firm shall specify,
• with respect to Full Career Eligibility, prior to the termination of your employment, you must confirm with management that you meet the eligibility criteria (including providing at least 90 days advance written notification), advise
that you are seeking to be treated as an individual eligible for Full Career Eligibility, and receive written consent to such continued vesting,
• with respect to Disability, you must satisfy the notice and documentation described above and receive written consent to such continued vesting,
and
• except in the case of a Job Elimination, it is your responsibility to take the appropriate steps to certify to the Firm prior to each vesting date on the authorized form of the Firm that you have complied with the employment restrictions applicable to you (as described herein) from your date of termination of employment through the applicable vesting date and in all cases, otherwise complied with all other terms of the Award Agreement. (See “
Your Obligations
” below.)
|
Administrative Provisions
|
Withholding Taxes:
The Firm, in its sole discretion, may (i) retain from each distribution the number of shares of Common Stock required to satisfy applicable tax obligations (including, to the extent legally permissible, recovery by the Firm of fringe benefit taxes) or (ii) implement any other desirable or necessary procedures, so that appropriate withholding and other taxes are paid to the competent authorities with respect to the vested shares, dividend equivalents and the award. This may include but is not limited to (i) a market sale of a number of such shares on your behalf substantially equal to the withholding or other taxes, (ii) to the extent required by law, withhold from cash compensation, an amount equal to any withholding obligation with respect to the award, vested shares, and/or dividend equivalents, and (iii) retaining vested shares or dividend equivalents until you pay any taxes associated with the award, vested shares and/or the dividend equivalents directly to the competent authorities. For United States tax purposes, dividend equivalents are treated as wages and subject to tax withholding when paid.
Right to Set Off:
The Firm may, to the maximum extent permitted by applicable law (including Section 409A of the Code), retain for itself funds or the Common Stock resulting from any vesting of this award to satisfy any obligation or debt that you owe to the Firm. Notwithstanding any account agreement with the Firm to the contrary, the Firm will not recoup or recover any amount owed from any funds or securities held in your name and maintained at the Firm pursuant to such account agreement to satisfy any obligation or debt or obligation owed by you under this award without your consent.
No Ownership Rights
: Restricted stock units do not convey the rights of ownership of Common Stock and do not carry voting rights. No shares of Common Stock will be issued to you until after the restricted stock units have vested and any applicable restrictions have lapsed. Shares will be issued in accordance with JPMorgan Chase’s procedures for issuing stock. By accepting this award, you authorize the Firm, in its discretion, to establish on your behalf a brokerage account in your name with the Firm and deliver to that brokerage account any vested shares derived from the award and, for avoidance of doubt, you further agree that it shall apply to prior unvested awards.
Prior to any vesting date, JPMorgan Chase may impose for any reason, as of such vesting date for such period as it may specify in its sole discretion, such restrictions on the Common Stock to be issued to you as it may deem appropriate, including, but not limited to, restricting the sale, transfer, pledge, assignment or encumbrance of such shares of Common Stock. By accepting this award, you acknowledge that during such specified period should there be a determination that the cancellation or recovery provisions of this Award (See
Protection-Based Vesting
,
Termination of Employment
,
Recapture Provisions
and
Remedies
) apply, then you agree that any shares subject to such restrictions (notwithstanding the limitation set forth set forth in the Right to Set Off section above) may be cancelled in whole or part. See also Amendment section permitting suspension of vesting.
Binding Agreement
: The Award Agreement will be binding upon any successor in interest to JPMorgan Chase, by merger or otherwise.
Not a Contract of Employment
: Nothing contained in the Award Agreement constitutes a contract of employment or continued employment. Employment is “at-will” and may be terminated by either you or JPMorgan Chase for any reason at any time. This award does not confer any right or entitlement to, nor does the award impose any obligation on the Firm to provide, the same or any similar award in the future and its value is not compensation for purposes of determining severance.
Section 409A Compliance
: To the extent that Section 409A of the Code is applicable to this award, distributions of shares and cash hereunder are intended to comply with Section 409A of the Code, and the Agreement Award, including these terms and conditions, shall be interpreted in a manner consistent with such intent.
Notwithstanding anything herein to the contrary, if you (i) are subject to taxation under the Code, (ii) are a specified employee as defined in the JPMorgan Chase 2005 Deferred Compensation Plan and (iii) have incurred a separation from service (as defined In that Plan) and if any units/shares under this award represent deferred compensation as defined in Section 409A and such shares are distributable to you as a result your separation from service, then those shares will be delivered to you on first business day of the first calendar month after the expiration of six full months from date of your separation from service. Further, if your award is not subject to a substantial risk of forfeiture as defined by regulations issued under Section 409A of the Code, then the remainder of each calendar year immediately following (i) each vesting date shall be a payment date for purposes of distributing the vested
portion of the award and (ii) each date that JPMorgan Chase specifies for payment of dividends declared on its Common Stock, shall be the payment date(s) for purposes of distributing dividend equivalent payments.
|
|
Change in Outstanding Shares:
In the event of any change in the outstanding shares of Common Stock by reason of any stock dividend or split, recapitalization, issuance of a new class of common stock, merger, consolidation, spin-off, combination or exchange of shares or other similar corporate change, or any distributions to stockholders of Common Stock other than regular cash dividends, the Committee will make an equitable substitution or proportionate adjustment, in the number or kind of shares of Common Stock or other securities issued or reserved for issuance pursuant to the Plan and to any restricted stock units outstanding under this award for such corporate events.
|
|
Interpretation/Administration:
The Committee has sole and complete authority to interpret and administer this Award Agreement, including, without limitation, the power to (i) interpret the Plan and the terms of this Award Agreement; (ii) determine the reason for termination of employment; (iii) determine application of the post-employment obligations and cancellation and recovery provisions; (iv) decide all claims arising with respect to this award; and (v) delegate such authority as it deems appropriate. Any determination by such Committee or its delegate shall be binding on all parties.
Notwithstanding anything herein to the contrary, the Firm’s and the Committee’s determinations under the Plan and the Award Agreements are not required to be uniform. By way of clarification, the Committee and the Firm shall be entitled to make non-uniform and selective determinations and modifications under Award Agreements and the Plan.
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Amendment:
The Committee or its delegate reserves the right to amend this Award Agreement in any manner, at any time and for any reason; provided, however, that no such amendment shall materially adversely affect your rights under this Award Agreement without your consent except to the extent that the Committee or its delegate considers advisable to (x) comply with applicable laws or changes in or interpretation of applicable laws, regulatory requirements and accounting rules or standards and (y) make a change in a scheduled vesting date or impose the restrictions described above under “No Ownership Rights,” in either case, to the extent permitted by Section 409A of the Code. This Award Agreement may not be amended except in writing signed by the Director of Human Resources of JPMorgan Chase.
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Severability:
If any portion of the Award Agreement is determined by the Firm to be unenforceable in any jurisdiction, any court or arbitrator of competent jurisdiction or the Director of Human Resources may reform the relevant provisions (e.g., as to length of service, time, geographical area or scope) to the extent the Firm (or court/arbitrator) considers necessary to make the provision enforceable under applicable law.
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Accelerated Distribution for Ethics or Conflict Reasons Resulting From Employment by a Government Entity:
Upon receipt of satisfactory evidence that applicable United States federal, state, local, foreign or supranational ethics or conflict of interest laws or regulations require you to divest your interest in JPMorgan Chase restricted stock units, the Firm may accelerate the distribution of all or part of your outstanding award effective on or before the required divesture date; provided that no accelerated distribution shall occur if the Firm determines that such acceleration will violate Section 409A of the Code. If you have voluntarily terminated your employment and have satisfied the requirements of the “Government Office” section of this award, acceleration shall apply (to extent required) to the percentage of your outstanding award that would continue to vest under that section. In the case of a termination of employment where the award is outstanding as a result of “Job Elimination” or “Full Career Eligibility”, then acceleration shall apply, to the extent required, to the full outstanding award. Notwithstanding accelerated distribution pursuant to the foregoing, you will remain subject to the applicable terms of your Award Agreement as if your award had remained outstanding for the duration of the original vesting period, including, but not limited to, repayment obligations and employment restrictions in the case of “Full Career Eligibility” or “Government Office.”
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Use of Personal Data:
By accepting this award, you have acknowledged that the Firm may use your personal data for purposes of (i) determining your compensation, (ii) payroll activities, including, but not limited to, tax withholding and regulatory reporting, (iii) registration of shares and units, (iv) establishing brokerage account on your behalf, and (v) all other lawful purposes related to your employment and this award and that the Firm may provide such data to third party vendors with whom it has contracted to provide such services. You may terminate this authorization at any time except with respect to tax and regulatory reporting. In such case, your award will be cancelled.
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Governing Law:
This award shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflict of law principles.
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Choice of Forum:
By accepting this award, you agree that to the extent not otherwise subject to arbitration under an arbitration agreement between you and the Firm, any dispute arising directly or indirectly in connection with this award or the Plan shall be submitted to arbitration in accordance with the rules of the American Arbitration Association if so elected by the Firm in its sole discretion. In the event such a dispute is not subject to arbitration for any reason, you agree to accept the exclusive jurisdiction and venue of the United States District Court for the Southern District of New York with respect to any judicial proceeding in connection with this award or the Plan. You waive, to the fullest extent permitted by law, any objection to personal jurisdiction or to the laying of venue of such dispute and further agree not to commence any action arising out of or relating to this award or the Plan in any other forum.
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Waiver of Jury Trial/Class Claims:
By accepting this award, you agree, with respect to any claim brought in connection with your employment with the Firm in any forum (i) to waive the right to a jury trial and (ii) that any judicial proceeding or arbitration claim will be brought on an individual basis, and you hereby waive any right to submit, initiate, or participate in a representative capacity or as a plaintiff, claimant or member in a class action, collective action, or other representative or joint action.
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Litigation:
By accepting any award, you agree that in any action or proceeding by the Firm (other than a derivative suit in the right of the Firm) to enforce the terms and conditions of this Award Agreement where the Firm is the prevailing party, the Firm shall be entitled to recover from you its reasonable attorney fees and expenses incurred in such action or proceeding. In addition, you agree that you are not entitled to, and agree not to seek, advancement of attorney fees and indemnification under the Firm’s By-Laws in the event of such a suit by the Firm.
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Nontransferability:
Neither this award or any other outstanding awards of restricted stock units, nor your interests or rights in any such awards, shall be assigned, pledged, transferred, hypothecated or subject to any lien. An award may be transferred following your death by will, the laws of descent or by a beneficiary designation on file with the Firm.
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Outstanding Awards:
The Administrative provisions set forth above shall apply to any award of restricted stock units outstanding as of the date hereof, and such awards are hereby amended.
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Definitions
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“Cause”
means a determination by the Firm that your employment terminated as a result of your (i) violation of any law, rule or regulation (including rules of self-regulatory bodies) related to the Firm’s business, (ii) indictment or conviction of a felony, (iii) commission of a fraudulent act, (iv) violation of the JPMorgan Code of Conduct or other Firm policies or misconduct related to your duties to the Firm (other than immaterial and inadvertent violations or misconduct), (v) inadequate performance of the duties associated with your position or job function or failure to follow reasonable directives of your manager, or (vi) any act or failure to act that is injurious to the interests of the Firm or its relationship with a customer, client or an employee.
“Financial Services Company”
means a business enterprise that employs you in any capacity (such as an employee, contractor, consultant, advisor, or self-employed individual, whether paid or unpaid) and engages in:
• commercial or retail banking, including, but not limited to, commercial, institutional and personal trust, custody and/or lending and processing services, originating and servicing mortgages, issuing and servicing credit cards,
• insurance, including but not limited to, guaranteeing against loss, harm, damage, illness, disability or death, providing and issuing annuities, acting as principal, agent or broker for purpose of the forgoing,
• financial, investment or economic advisory services, including but not limited to, investment banking services (such as advising on mergers or dispositions, underwriting, dealing in, or making a market in securities or other similar activities), brokerage services, investment management services, asset management services, and hedge funds,
• issuing, trading or selling instruments representing interests in pools of assets or in derivatives instruments;
• advising on, or investing in, private equity or real estate, or
• any similar activities that JPMorgan Chase determines in its sole discretion constitute financial services.
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“
Firmwide Financial Threshold
” means a Cumulative Return on Tangible Common Equity for 2013, 2014 and 2015 of not less than 15%. Cumulative Return on Tangible Common Equity means (i) the sum of the Firm’s reported net income for all three years, divided by (ii) reported year-end tangible equity averaged over the three years.
“
Government Office
” means (i) a full-time position in an elected or appointed office in local, state, or federal government (including equivalent positions outside the U.S. or in a supranational organization), not reasonably anticipated to be a full-career position, or (ii) conducting a bona fide full-time campaign for such an elective public office after formally filing for candidacy, where it is customary and reasonably necessary to campaign full-time for the office.
“
Line of Business
” means a business unit of the Firm (or one or more business units designated below under the definition “Line of Business Financial Threshold” of the Corporate Investment Bank). All Corporate Functions (including the functions of the Chief Investment Office) are considered a single Line of Business.
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Asset Management
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Annual negative pre-provision net income
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Card Services
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Annual negative pre-tax, pre-loan loss reserve income
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Commercial Bank
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Annual negative pre-provision net income including loan charge-offs
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Corporate Investment Bank
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Annual negative pre-provision net income for CIB overall and/or annual negative allocated product revenues (excluding DVA) for:
n
Global FX, Global rates, Rates Exotics & Hybrids, Public Finance
n
Securitized Products
n
Credit Trading and Syndicate, Credit Exotics & Hybrids
n
Global Emerging Markets, GSOG
n
Commodities
n
Equities
n
Global Banking
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Consumer Banking Business
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Annual negative pre-provision net income
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Corporate Functions (including Chief Investment Office)
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Annual negative pre-provision net income reported at the Firm level
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Home Lending
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Annual negative pre-provision net income excluding losses from liquidating portfolios and MSR Trading
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•
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At least 60 days’ advance written notice of your intention to resign to accept or pursue a Government Office, during which period you must perform in a cooperative and professional manner services requested by the Firm and not provide services for any other employer. The Firm may elect to shorten this notice period at the Firm’s discretion.
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•
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Confirmation, in a form satisfactory to the Firm, that vesting in this award pursuant to this provision would not violate any applicable law, regulation or rule.
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•
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Documentation in a form satisfactory to the Firm that your resignation is for the purpose of accepting a Government Office or becoming a candidate for a Government Office.
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•
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50% if you have at least 3 but less than 4 years of continuous service,
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•
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75% if you have at least 4 but less than 5 years of continuous service, or
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•
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100% if you have 5 or more years of continuous service.
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•
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You must remain in a non-elective Government Office for two or more years after your employment with the Firm terminates.
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•
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In the case of resignation from the Firm to campaign for an elective Government Office, your name must be on the primary or final public ballot for the election. (If you are not elected, see below for employment restrictions.)
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1.
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I have reviewed this quarterly report on Form 10-Q of JPMorgan Chase & Co.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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1.
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I have reviewed this quarterly report on Form 10-Q of JPMorgan Chase & Co.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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1.
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of JPMorgan Chase & Co.
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Date:
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May 2, 2014
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By:
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/s/
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James Dimon
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James Dimon
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Chairman and Chief Executive Officer
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Date:
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May 2, 2014
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By:
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/s/
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Marianne Lake
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Marianne Lake
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Executive Vice President and Chief Financial Officer
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