For the quarterly period ended
|
Commission file
|
June 30, 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 and six months ended June 30, 2014 and 2013
|
90
|
|
|
Consolidated statements of comprehensive income (unaudited) for the three and six months ended June 30, 2014 and 2013
|
91
|
|
|
Consolidated balance sheets (unaudited) at June 30, 2014, and December 31, 2013
|
92
|
|
|
Consolidated statements of changes in stockholders’ equity (unaudited) for the six months ended June 30, 2014 and 2013
|
93
|
|
|
Consolidated statements of cash flows (unaudited) for the six months ended June 30, 2014 and 2013
|
94
|
|
|
Notes to Consolidated Financial Statements (unaudited)
|
95
|
|
|
Report of Independent Registered Public Accounting Firm
|
183
|
|
|
Consolidated Average Balance Sheets, Interest and Rates (unaudited) for the three and six months ended June 30, 2014 and 2013
|
184
|
|
|
Glossary of Terms and Line of Business Metrics
|
186
|
|
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
|
|
|
Consolidated Balance Sheet Analysis
|
13
|
|
|
Off-Balance Sheet Arrangements
|
15
|
|
|
Consolidated Cash Flows Analysis
|
16
|
|
|
Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures
|
17
|
|
|
Business Segment Results
|
19
|
|
|
Enterprise-Wide Risk Management
|
50
|
|
|
Credit Risk Management
|
51
|
|
|
Market Risk Management
|
69
|
|
|
Country Risk Management
|
72
|
|
|
Operational Risk Management
|
73
|
|
|
Capital Management
|
74
|
|
|
Liquidity Risk Management
|
81
|
|
|
Supervision and Regulation
|
85
|
|
|
Critical Accounting Estimates Used by the Firm
|
86
|
|
|
Accounting and Reporting Developments
|
88
|
|
|
Forward-Looking Statements
|
89
|
|
Item 3
|
Quantitative and Qualitative Disclosures About Market Risk
|
191
|
|
Item 4
|
Controls and Procedures
|
191
|
|
Part II - Other information
|
|
||
Item 1
|
Legal Proceedings
|
192
|
|
Item 1A
|
Risk Factors
|
192
|
|
Item 2
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
192
|
|
Item 3
|
Defaults Upon Senior Securities
|
193
|
|
Item 4
|
Mine Safety Disclosure
|
193
|
|
Item 5
|
Other Information
|
193
|
|
Item 6
|
Exhibits
|
193
|
(unaudited)
As of or for the period ended,
|
|
|
|
|
|
Six months ended June 30,
|
|||||||||||||||
(in millions, except per share, ratio, headcount data and where otherwise noted)
|
2Q14
|
1Q14
|
4Q13
|
3Q13
|
2Q13
|
2014
|
2013
|
||||||||||||||
Selected income statement data
|
|
|
|
|
|
|
|
||||||||||||||
Total net revenue
|
$
|
24,454
|
|
$
|
22,993
|
|
$
|
23,156
|
|
$
|
23,117
|
|
$
|
25,211
|
|
$
|
47,447
|
|
$
|
50,333
|
|
Total noninterest expense
|
15,431
|
|
14,636
|
|
15,552
|
|
23,626
|
|
15,866
|
|
30,067
|
|
31,289
|
|
|||||||
Pre-provision profit/(loss)
|
9,023
|
|
8,357
|
|
7,604
|
|
(509
|
)
|
9,345
|
|
17,380
|
|
19,044
|
|
|||||||
Provision for credit losses
|
692
|
|
850
|
|
104
|
|
(543
|
)
|
47
|
|
1,542
|
|
664
|
|
|||||||
Income before income tax expense
|
8,331
|
|
7,507
|
|
7,500
|
|
34
|
|
9,298
|
|
15,838
|
|
18,380
|
|
|||||||
Income tax expense
|
2,346
|
|
2,233
|
|
2,222
|
|
414
|
|
2,802
|
|
4,579
|
|
5,355
|
|
|||||||
Net income/(loss)
|
$
|
5,985
|
|
$
|
5,274
|
|
$
|
5,278
|
|
$
|
(380
|
)
|
$
|
6,496
|
|
$
|
11,259
|
|
$
|
13,025
|
|
Per common share data
|
|
|
|
|
|
|
|
||||||||||||||
Net income/(loss) per share: Basic
|
$
|
1.47
|
|
$
|
1.29
|
|
$
|
1.31
|
|
$
|
(0.17
|
)
|
$
|
1.61
|
|
$
|
2.77
|
|
$
|
3.22
|
|
Diluted
|
1.46
|
|
1.28
|
|
1.30
|
|
(0.17
|
)
|
1.60
|
|
2.74
|
|
3.19
|
|
|||||||
Cash dividends declared per share
|
0.40
|
|
0.38
|
|
0.38
|
|
0.38
|
|
0.38
|
|
0.78
|
|
0.68
|
|
|||||||
Book value per share
|
55.53
|
|
54.05
|
|
53.25
|
|
52.01
|
|
52.48
|
|
55.53
|
|
52.48
|
|
|||||||
Tangible book value per share (“TBVPS”)
(a)
|
43.17
|
|
41.73
|
|
40.81
|
|
39.51
|
|
39.97
|
|
43.17
|
|
39.97
|
|
|||||||
Common shares outstanding
|
|
|
|
|
|
|
|
||||||||||||||
Average: Basic
|
3,780.6
|
|
3,787.2
|
|
3,762.1
|
|
3,767.0
|
|
3,782.4
|
|
3,783.9
|
|
3,800.3
|
|
|||||||
Diluted
|
3,812.5
|
|
3,823.6
|
|
3,797.1
|
|
3,767.0
|
|
3,814.3
|
|
3,818.1
|
|
3,830.6
|
|
|||||||
Common shares at period-end
|
3,761.3
|
|
3,784.7
|
|
3,756.1
|
|
3,759.2
|
|
3,769.0
|
|
3,761.3
|
|
3,769.0
|
|
|||||||
Share price
(b)
|
|
|
|
|
|
|
|
||||||||||||||
High
|
$
|
61.29
|
|
$
|
61.48
|
|
$
|
58.55
|
|
$
|
56.93
|
|
$
|
55.90
|
|
$
|
61.48
|
|
$
|
55.90
|
|
Low
|
52.97
|
|
54.20
|
|
50.25
|
|
50.06
|
|
46.05
|
|
52.97
|
|
44.20
|
|
|||||||
Close
|
57.62
|
|
60.71
|
|
58.48
|
|
51.69
|
|
52.79
|
|
57.62
|
|
52.79
|
|
|||||||
Market capitalization
|
216,725
|
|
229,700
|
|
219,657
|
|
194,312
|
|
198,966
|
|
216,725
|
|
198,966
|
|
|||||||
Selected ratios and metrics
|
|
|
|
|
|
|
|
||||||||||||||
Return on common equity (“ROE”)
|
11
|
%
|
10
|
%
|
10
|
%
|
(1
|
)%
|
13
|
%
|
11
|
%
|
13
|
%
|
|||||||
Return on tangible common equity (“ROTCE”)
(a)
|
14
|
|
13
|
|
14
|
|
(2
|
)
|
17
|
|
14
|
|
17
|
|
|||||||
Return on assets (“ROA”)
|
0.99
|
|
0.89
|
|
0.87
|
|
(0.06
|
)
|
1.09
|
|
0.94
|
|
1.11
|
|
|||||||
Overhead ratio
|
63
|
|
64
|
|
67
|
|
102
|
|
63
|
|
63
|
|
62
|
|
|||||||
Loans-to-deposits ratio
|
57
|
|
57
|
|
57
|
|
57
|
|
60
|
|
57
|
|
60
|
|
|||||||
High quality liquid assets (“HQLA”) (in billions)
(c)
|
$
|
576
|
|
$
|
538
|
|
$
|
522
|
|
$
|
538
|
|
$
|
454
|
|
$
|
576
|
|
$
|
454
|
|
Common equity tier 1 (“CET1”) capital ratio
(d)
|
9.8
|
%
|
10.9
|
%
|
10.7%
|
|
10.5
|
%
|
10.4
|
%
|
9.8
|
%
|
10.4
|
%
|
|||||||
Tier 1 capital ratio
(d)
|
11.1
|
|
12.1
|
|
11.9
|
|
11.7
|
|
11.6
|
|
11.1
|
|
11.6
|
|
|||||||
Total capital ratio
(d)
|
12.5
|
|
14.5
|
|
14.4
|
|
14.3
|
|
14.1
|
|
12.5
|
|
14.1
|
|
|||||||
Tier 1 leverage ratio
(d)
|
7.6
|
|
7.4
|
|
7.1
|
|
6.9
|
|
7.0
|
|
7.6
|
|
7.0
|
|
|||||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|
|
||||||||||||||
Trading assets
|
$
|
392,543
|
|
$
|
375,204
|
|
$
|
374,664
|
|
$
|
383,348
|
|
$
|
401,470
|
|
$
|
392,543
|
|
$
|
401,470
|
|
Securities
(e)
|
361,918
|
|
351,850
|
|
354,003
|
|
356,556
|
|
354,725
|
|
361,918
|
|
354,725
|
|
|||||||
Loans
|
746,983
|
|
730,971
|
|
738,418
|
|
728,679
|
|
725,586
|
|
746,983
|
|
725,586
|
|
|||||||
Total assets
|
2,520,336
|
|
2,476,986
|
|
2,415,689
|
|
2,463,309
|
|
2,439,494
|
|
2,520,336
|
|
2,439,494
|
|
|||||||
Deposits
|
1,319,751
|
|
1,282,705
|
|
1,287,765
|
|
1,281,102
|
|
1,202,950
|
|
1,319,751
|
|
1,202,950
|
|
|||||||
Long-term debt
(f)
|
269,929
|
|
274,512
|
|
267,889
|
|
263,372
|
|
266,212
|
|
269,929
|
|
266,212
|
|
|||||||
Common stockholders’ equity
|
208,851
|
|
204,572
|
|
200,020
|
|
195,512
|
|
197,781
|
|
208,851
|
|
197,781
|
|
|||||||
Total stockholders’ equity
|
227,314
|
|
219,655
|
|
211,178
|
|
206,670
|
|
209,239
|
|
227,314
|
|
209,239
|
|
|||||||
Headcount
|
245,192
|
|
246,994
|
|
251,196
|
|
255,041
|
|
254,063
|
|
245,192
|
|
254,063
|
|
|||||||
Credit quality metrics
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for credit losses
|
$
|
15,974
|
|
$
|
16,485
|
|
$
|
16,969
|
|
$
|
18,248
|
|
$
|
20,137
|
|
$
|
15,974
|
|
$
|
20,137
|
|
Allowance for loan losses to total retained loans
|
2.08
|
%
|
2.20
|
%
|
2.25%
|
|
2.43
|
%
|
2.69
|
%
|
2.08
|
%
|
2.69
|
%
|
|||||||
Allowance for loan losses to retained loans excluding purchased credit-impaired loans
(g)
|
1.69
|
|
1.75
|
|
1.80
|
|
1.89
|
|
2.06
|
|
1.69
|
|
2.06
|
|
|||||||
Nonperforming assets
|
$
|
9,017
|
|
$
|
9,473
|
|
$
|
9,706
|
|
$
|
10,380
|
|
$
|
11,041
|
|
$
|
9,017
|
|
$
|
11,041
|
|
Net charge-offs
|
1,158
|
|
1,269
|
|
1,328
|
|
1,346
|
|
1,403
|
|
2,427
|
|
3,128
|
|
|||||||
Net charge-off rate
|
0.64
|
%
|
0.71
|
%
|
0.73%
|
|
0.74
|
%
|
0.78
|
%
|
0.68
|
%
|
0.88
|
%
|
(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 17–18
.
|
(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)
|
HQLA is the estimated amount of assets that qualify for inclusion in the Basel III liquidity coverage ratio; see HQLA on
page 84
.
|
(d)
|
Basel III Transitional rules became effective on January 1, 2014; all prior period data is based on Basel I rules. As of June 30, 2014, the ratios presented are calculated under the Basel III Advanced Transitional Approach. CET1 capital under Basel III replaced Tier 1 common capital under Basel I. Prior to Basel III becoming effective on January 1, 2014, Tier 1 common capital under Basel I was a non-GAAP financial measure. See Regulatory capital on
pages 74–78
for additional information on Basel III and non-GAAP financial measures of regulatory capital.
|
(e)
|
Included held-to-maturity (“HTM”) securities of $47.8 billion, $47.3 billion, $24.0 billion and $4.5 billion at June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013, respectively. Held-to-maturity balance at June 30, 2013 was not material.
|
(f)
|
Included unsecured long-term debt of $205.6 billion, $206.1 billion, $199.4 billion, $199.2 billion and $199.1 billion at June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and June 30, 2013, respectively.
|
(g)
|
Excludes the impact of residential real estate purchased credit-impaired (“PCI”) loans. For further discussion, see Allowance for credit losses on
pages 66–68
.
|
INTRODUCTION
|
EXECUTIVE OVERVIEW
|
(a)
|
Basel III Transitional rules became effective on January 1, 2014; all prior period data is based on Basel I rules. As of June 30, 2014, the ratios presented are calculated under the Basel III Advanced Transitional Approach. CET1 capital under Basel III replaced Tier 1 common capital under Basel I. Prior to Basel III becoming effective on January 1, 2014, Tier 1 common capital under Basel I was a non-GAAP financial measure. See Regulatory capital on
pages 74–78
for additional information on Basel III and non-GAAP financial measures of regulatory capital.
|
(a)
|
Firmwide adjusted expense, a non-GAAP financial measure, excludes total Firmwide legal expenses and foreclosure-related matters. Management believes this information helps investors understand the effect of these items on reported results and provides an alternate presentation of the Firm’s performance.
|
(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 June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in millions)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
|
|||||||||
Investment banking fees
|
$
|
1,751
|
|
|
$
|
1,717
|
|
|
2
|
%
|
|
$
|
3,171
|
|
|
$
|
3,162
|
|
|
—
|
|
Principal transactions
|
2,908
|
|
|
3,760
|
|
|
(23
|
)
|
|
6,230
|
|
|
7,521
|
|
|
(17
|
)
|
||||
Lending- and deposit-related fees
|
1,463
|
|
|
1,489
|
|
|
(2
|
)
|
|
2,868
|
|
|
2,957
|
|
|
(3
|
)
|
||||
Asset management, administration and commissions
|
4,007
|
|
|
3,865
|
|
|
4
|
|
|
7,843
|
|
|
7,464
|
|
|
5
|
|
||||
Securities gains
|
12
|
|
|
124
|
|
|
(90
|
)
|
|
42
|
|
|
633
|
|
|
(93
|
)
|
||||
Mortgage fees and related income
|
1,291
|
|
|
1,823
|
|
|
(29
|
)
|
|
1,805
|
|
|
3,275
|
|
|
(45
|
)
|
||||
Card income
|
1,549
|
|
|
1,503
|
|
|
3
|
|
|
2,957
|
|
|
2,922
|
|
|
1
|
|
||||
Other income
(a)
|
675
|
|
|
226
|
|
|
199
|
|
|
1,066
|
|
|
762
|
|
|
40
|
|
||||
Noninterest revenue
|
13,656
|
|
|
14,507
|
|
|
(6
|
)
|
|
25,982
|
|
|
28,696
|
|
|
(9
|
)
|
||||
Net interest income
|
10,798
|
|
|
10,704
|
|
|
1
|
|
|
21,465
|
|
|
21,637
|
|
|
(1
|
)
|
||||
Total net revenue
|
$
|
24,454
|
|
|
$
|
25,211
|
|
|
(3
|
)%
|
|
$
|
47,447
|
|
|
$
|
50,333
|
|
|
(6
|
)%
|
(a)
|
Included operating lease income of
$422 million
and
$363 million
for the three months ended
June 30, 2014 and 2013
, respectively, and
$820 million
and
$712 million
for the six months ended
June 30, 2014 and 2013
, respectively.
|
Provision for credit losses
|
|
|
|
|
|||||||||||||||||
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in millions)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Consumer, excluding credit card
|
$
|
(37
|
)
|
|
$
|
(493
|
)
|
|
92
|
%
|
|
$
|
82
|
|
|
$
|
(530
|
)
|
|
NM
|
|
Credit card
|
885
|
|
|
464
|
|
|
91
|
|
|
1,573
|
|
|
1,046
|
|
|
50
|
%
|
||||
Total consumer
|
848
|
|
|
(29
|
)
|
|
NM
|
|
|
1,655
|
|
|
516
|
|
|
221
|
|
||||
Wholesale
|
(156
|
)
|
|
76
|
|
|
NM
|
|
|
(113
|
)
|
|
148
|
|
|
NM
|
|
||||
Total provision for credit losses
|
$
|
692
|
|
|
$
|
47
|
|
|
NM
|
|
|
$
|
1,542
|
|
|
$
|
664
|
|
|
132
|
%
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in millions)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Compensation expense
|
$
|
7,610
|
|
|
$
|
8,019
|
|
|
(5
|
)%
|
|
$
|
15,469
|
|
|
$
|
16,433
|
|
|
(6
|
)%
|
Noncompensation expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Occupancy
|
973
|
|
|
904
|
|
|
8
|
|
|
1,925
|
|
|
1,805
|
|
|
7
|
|
||||
Technology, communications and equipment
|
1,433
|
|
|
1,361
|
|
|
5
|
|
|
2,844
|
|
|
2,693
|
|
|
6
|
|
||||
Professional and outside services
|
1,932
|
|
|
1,901
|
|
|
2
|
|
|
3,718
|
|
|
3,635
|
|
|
2
|
|
||||
Marketing
|
650
|
|
|
578
|
|
|
12
|
|
|
1,214
|
|
|
1,167
|
|
|
4
|
|
||||
Other expense
(a)(b)
|
2,701
|
|
|
2,951
|
|
|
(8
|
)
|
|
4,634
|
|
|
5,252
|
|
|
(12
|
)
|
||||
Amortization of intangibles
|
132
|
|
|
152
|
|
|
(13
|
)
|
|
263
|
|
|
304
|
|
|
(13
|
)
|
||||
Total noncompensation expense
|
7,821
|
|
|
7,847
|
|
|
—
|
|
|
14,598
|
|
|
14,856
|
|
|
(2
|
)
|
||||
Total noninterest expense
|
$
|
15,431
|
|
|
$
|
15,866
|
|
|
(3
|
)%
|
|
$
|
30,067
|
|
|
$
|
31,289
|
|
|
(4
|
)%
|
(a)
|
Included firmwide legal expense of
$669 million
and
$678 million
for the three months ended
June 30, 2014
and 2013, respectively, and
$707 million
and
$1.0 billion
for the six months ended
June 30, 2014
and 2013, respectively.
|
(b)
|
Included FDIC-related expense of
$266 million
and
$392 million
for the three months ended
June 30, 2014
and 2013, respectively, and
$559 million
and
$771 million
for the six months ended
June 30, 2014
and 2013, respectively.
|
Income tax expense
|
|
|
|
|
|
|
|
||||||||||||||
(in millions, except rate)
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
|||||||||||
Income before income tax expense
|
$
|
8,331
|
|
|
$
|
9,298
|
|
|
(10
|
)%
|
|
$
|
15,838
|
|
|
$
|
18,380
|
|
|
(14
|
)%
|
Income tax expense
|
2,346
|
|
|
2,802
|
|
|
(16
|
)
|
|
4,579
|
|
|
5,355
|
|
|
(14
|
)
|
||||
Effective tax rate
|
28.2
|
%
|
|
30.1
|
%
|
|
|
|
28.9
|
%
|
|
29.1
|
%
|
|
|
|
CONSOLIDATED BALANCE SHEETS ANALYSIS
|
Selected Consolidated Balance Sheets data
|
|
||||||||
(in millions)
|
Jun 30,
2014 |
|
Dec 31,
2013 |
Change
|
|||||
Assets
|
|
|
|
|
|||||
Cash and due from banks
|
$
|
27,523
|
|
|
$
|
39,771
|
|
(31
|
)%
|
Deposits with banks
|
393,909
|
|
|
316,051
|
|
25
|
|
||
Federal funds sold and securities purchased under resale agreements
|
248,149
|
|
|
248,116
|
|
—
|
|
||
Securities borrowed
|
113,967
|
|
|
111,465
|
|
2
|
|
||
Trading assets:
|
|
|
|
|
|||||
Debt and equity instruments
|
330,165
|
|
|
308,905
|
|
7
|
|
||
Derivative receivables
|
62,378
|
|
|
65,759
|
|
(5
|
)
|
||
Securities
|
361,918
|
|
|
354,003
|
|
2
|
|
||
Loans
|
746,983
|
|
|
738,418
|
|
1
|
|
||
Allowance for loan losses
|
15,326
|
|
|
16,264
|
|
(6
|
)
|
||
Loans, net of allowance for loan losses
|
731,657
|
|
|
722,154
|
|
1
|
|
||
Accrued interest and accounts receivable
|
77,096
|
|
|
65,160
|
|
18
|
|
||
Premises and equipment
|
15,216
|
|
|
14,891
|
|
2
|
|
||
Goodwill
|
48,110
|
|
|
48,081
|
|
—
|
|
||
Mortgage servicing rights
|
8,347
|
|
|
9,614
|
|
(13
|
)
|
||
Other intangible assets
|
1,339
|
|
|
1,618
|
|
(17
|
)
|
||
Other assets
|
100,562
|
|
|
110,101
|
|
(9
|
)
|
||
Total assets
|
$
|
2,520,336
|
|
|
$
|
2,415,689
|
|
4
|
|
Liabilities
|
|
|
|
|
|||||
Deposits
|
$
|
1,319,751
|
|
|
$
|
1,287,765
|
|
2
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
216,561
|
|
|
181,163
|
|
20
|
|
||
Commercial paper
|
63,804
|
|
|
57,848
|
|
10
|
|
||
Other borrowed funds
|
34,713
|
|
|
27,994
|
|
24
|
|
||
Trading liabilities:
|
|
|
|
|
|
||||
Debt and equity instruments
|
87,861
|
|
|
80,430
|
|
9
|
|
||
Derivative payables
|
50,795
|
|
|
57,314
|
|
(11
|
)
|
||
Accounts payable and other liabilities
|
203,885
|
|
|
194,491
|
|
5
|
|
||
Beneficial interests issued by consolidated VIEs
|
45,723
|
|
|
49,617
|
|
(8
|
)
|
||
Long-term debt
|
269,929
|
|
|
267,889
|
|
1
|
|
||
Total liabilities
|
2,293,022
|
|
|
2,204,511
|
|
4
|
|
||
Stockholders’ equity
|
227,314
|
|
|
211,178
|
|
8
|
|
||
Total liabilities and stockholders’ equity
|
$
|
2,520,336
|
|
|
$
|
2,415,689
|
|
4
|
%
|
OFF-BALANCE SHEET ARRANGEMENTS
|
CONSOLIDATED CASH FLOWS ANALYSIS
|
(in millions)
|
|
Six months ended June 30,
|
||||||
|
2014
|
|
2013
|
|||||
Net cash provided by/(used in)
|
|
|
|
|
||||
Operating activities
|
|
$
|
10,296
|
|
|
$
|
88,484
|
|
Investing activities
|
|
(97,938
|
)
|
|
(142,245
|
)
|
||
Financing activities
|
|
75,436
|
|
|
30,108
|
|
||
Effect of exchange rate changes on cash
|
|
(42
|
)
|
|
(856
|
)
|
||
Net decrease in cash and due from banks
|
|
$
|
(12,248
|
)
|
|
$
|
(24,509
|
)
|
EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES
|
|
Three months ended June 30,
|
||||||||||||||||||||||
|
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
|
$
|
675
|
|
|
$
|
651
|
|
|
$
|
1,326
|
|
|
$
|
226
|
|
|
$
|
582
|
|
|
$
|
808
|
|
Total noninterest revenue
|
13,656
|
|
|
651
|
|
|
14,307
|
|
|
14,507
|
|
|
582
|
|
|
15,089
|
|
||||||
Net interest income
|
10,798
|
|
|
244
|
|
|
11,042
|
|
|
10,704
|
|
|
165
|
|
|
10,869
|
|
||||||
Total net revenue
|
24,454
|
|
|
895
|
|
|
25,349
|
|
|
25,211
|
|
|
747
|
|
|
25,958
|
|
||||||
Pre-provision profit/(loss)
|
9,023
|
|
|
895
|
|
|
9,918
|
|
|
9,345
|
|
|
747
|
|
|
10,092
|
|
||||||
Income before income tax expense
|
8,331
|
|
|
895
|
|
|
9,226
|
|
|
9,298
|
|
|
747
|
|
|
10,045
|
|
||||||
Income tax expense
|
$
|
2,346
|
|
|
$
|
895
|
|
|
$
|
3,241
|
|
|
$
|
2,802
|
|
|
$
|
747
|
|
|
$
|
3,549
|
|
Overhead ratio
|
63
|
%
|
|
NM
|
|
|
61
|
%
|
|
63
|
%
|
|
NM
|
|
|
61
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six months ended June 30,
|
||||||||||||||||||||||
|
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
|
$
|
1,066
|
|
|
$
|
1,295
|
|
|
$
|
2,361
|
|
|
$
|
762
|
|
|
$
|
1,146
|
|
|
$
|
1,908
|
|
Total noninterest revenue
|
25,982
|
|
|
1,295
|
|
|
27,277
|
|
|
28,696
|
|
|
1,146
|
|
|
29,842
|
|
||||||
Net interest income
|
21,465
|
|
|
470
|
|
|
21,935
|
|
|
21,637
|
|
|
327
|
|
|
21,964
|
|
||||||
Total net revenue
|
47,447
|
|
|
1,765
|
|
|
49,212
|
|
|
50,333
|
|
|
1,473
|
|
|
51,806
|
|
||||||
Pre-provision profit
|
17,380
|
|
|
1,765
|
|
|
19,145
|
|
|
19,044
|
|
|
1,473
|
|
|
20,517
|
|
||||||
Income before income tax expense
|
15,838
|
|
|
1,765
|
|
|
17,603
|
|
|
18,380
|
|
|
1,473
|
|
|
19,853
|
|
||||||
Income tax expense
|
$
|
4,579
|
|
|
$
|
1,765
|
|
|
$
|
6,344
|
|
|
$
|
5,355
|
|
|
$
|
1,473
|
|
|
$
|
6,828
|
|
Overhead ratio
|
63
|
%
|
|
NM
|
|
|
61
|
%
|
|
62
|
%
|
|
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 June 30,
|
|
Six months ended June 30,
|
||||||||||||
2014
|
|
2013
|
|
2014
|
|
2013
|
|||||||||
Common stockholders’ equity
|
$
|
206,159
|
|
|
$
|
197,283
|
|
|
$
|
203,989
|
|
|
$
|
196,016
|
|
Less: Goodwill
|
48,084
|
|
|
48,078
|
|
|
48,069
|
|
|
48,123
|
|
||||
Less: Certain identifiable intangible assets
|
1,416
|
|
|
2,026
|
|
|
1,482
|
|
|
2,093
|
|
||||
Add: Deferred tax liabilities
(a)
|
2,952
|
|
|
2,869
|
|
|
2,948
|
|
|
2,849
|
|
||||
Tangible common equity
|
$
|
159,611
|
|
|
$
|
150,048
|
|
|
$
|
157,386
|
|
|
$
|
148,649
|
|
|
|
|
|
|
|
|
|
||||||||
Return on tangible common equity
|
14
|
%
|
|
17
|
%
|
|
14
|
%
|
|
17
|
%
|
||||
Tangible book value per share
|
$
|
43.17
|
|
|
$
|
39.97
|
|
|
$
|
43.17
|
|
|
$
|
39.97
|
|
(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 June 30,
|
|
Six months ended June 30,
|
||||||||||||||||
(in millions, except rates)
|
2014
|
2013
|
|
Change
|
|
2014
|
2013
|
|
Change
|
||||||||||
Net interest income – managed basis
(b)(c)
|
$
|
11,042
|
|
$
|
10,869
|
|
|
2
|
%
|
|
$
|
21,935
|
|
$
|
21,964
|
|
|
—
|
|
Less: Market-based net interest income
|
1,030
|
|
1,345
|
|
|
(23
|
)
|
|
2,086
|
|
2,777
|
|
|
(25
|
)
|
||||
Core net interest income
(b)
|
$
|
10,012
|
|
$
|
9,524
|
|
|
5
|
|
|
$
|
19,849
|
|
$
|
19,187
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average interest-earning assets
|
$
|
2,023,945
|
|
$
|
1,980,466
|
|
|
2
|
|
|
$
|
2,014,846
|
|
$
|
1,938,508
|
|
|
4
|
|
Less: Average market-based earning assets
|
502,413
|
|
512,631
|
|
|
(2
|
)
|
|
504,942
|
|
510,796
|
|
|
(1
|
)
|
||||
Core average interest-earning assets
|
$
|
1,521,532
|
|
$
|
1,467,835
|
|
|
4
|
%
|
|
$
|
1,509,904
|
|
$
|
1,427,712
|
|
|
6
|
%
|
Net interest yield on interest-earning assets – managed basis
|
2.19
|
%
|
2.20
|
%
|
|
|
|
2.20
|
%
|
2.28
|
%
|
|
|
||||||
Net interest yield on market-based
activities
|
0.82
|
|
1.05
|
|
|
|
|
0.83
|
|
1.10
|
|
|
|
||||||
Core net interest yield on core average interest-earning assets
|
2.64
|
%
|
2.60
|
%
|
|
|
|
2.65
|
%
|
2.71
|
%
|
|
|
(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
17
.
|
BUSINESS SEGMENT RESULTS
|
Three months ended June 30,
|
Total net revenue
|
|
Total Noninterest expense
|
|
Pre-provision profit/(loss)
|
|||||||||||||||||||||
(in millions)
|
2014
|
2013
|
Change
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
||||||||||||||
Consumer & Community Banking
|
$
|
11,431
|
|
$
|
12,015
|
|
(5
|
)%
|
|
$
|
6,456
|
|
$
|
6,864
|
|
(6
|
)%
|
|
$
|
4,975
|
|
$
|
5,151
|
|
(3
|
)%
|
Corporate & Investment Bank
|
8,991
|
|
9,876
|
|
(9
|
)
|
|
6,058
|
|
5,742
|
|
6
|
|
|
2,933
|
|
4,134
|
|
(29
|
)
|
||||||
Commercial Banking
|
1,701
|
|
1,728
|
|
(2
|
)
|
|
675
|
|
652
|
|
4
|
|
|
1,026
|
|
1,076
|
|
(5
|
)
|
||||||
Asset Management
|
2,956
|
|
2,725
|
|
8
|
|
|
2,062
|
|
1,892
|
|
9
|
|
|
894
|
|
833
|
|
7
|
|
||||||
Corporate/Private Equity
|
270
|
|
(386
|
)
|
NM
|
|
|
180
|
|
716
|
|
(75
|
)
|
|
90
|
|
(1,102
|
)
|
NM
|
|
||||||
Total
|
$
|
25,349
|
|
$
|
25,958
|
|
(2
|
)%
|
|
$
|
15,431
|
|
$
|
15,866
|
|
(3
|
)%
|
|
$
|
9,918
|
|
$
|
10,092
|
|
(2
|
)%
|
Three months ended June 30,
|
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
|
$
|
852
|
|
$
|
(19
|
)
|
NM
|
|
|
$
|
2,443
|
|
$
|
3,089
|
|
(21
|
)%
|
|
19
|
%
|
27
|
%
|
Corporate & Investment Bank
|
(84
|
)
|
(6
|
)
|
NM
|
|
|
1,963
|
|
2,838
|
|
(31
|
)
|
|
13
|
|
20
|
|
||||
Commercial Banking
|
(67
|
)
|
44
|
|
NM
|
|
|
658
|
|
621
|
|
6
|
|
|
19
|
|
18
|
|
||||
Asset Management
|
1
|
|
23
|
|
(96
|
)%
|
|
552
|
|
500
|
|
10
|
|
|
25
|
|
22
|
|
||||
Corporate/Private Equity
|
(10
|
)
|
5
|
|
NM
|
|
|
369
|
|
(552
|
)
|
NM
|
|
|
NM
|
|
NM
|
|
||||
Total
|
$
|
692
|
|
$
|
47
|
|
NM
|
|
|
$
|
5,985
|
|
$
|
6,496
|
|
(8
|
)%
|
|
11
|
%
|
13
|
%
|
Six months ended June 30,
|
Total net revenue
|
|
Total Noninterest expense
|
|
Pre-provision profit/(loss)
|
|||||||||||||||||||||
(in millions)
|
2014
|
2013
|
Change
|
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
||||||||||||||
Consumer & Community Banking
|
$
|
21,891
|
|
$
|
23,630
|
|
(7
|
)%
|
|
$
|
12,893
|
|
$
|
13,654
|
|
(6
|
)%
|
|
$
|
8,998
|
|
$
|
9,976
|
|
(10
|
)%
|
Corporate & Investment Bank
|
17,597
|
|
20,016
|
|
(12
|
)
|
|
11,662
|
|
11,853
|
|
(2
|
)
|
|
5,935
|
|
8,163
|
|
(27
|
)
|
||||||
Commercial Banking
|
3,352
|
|
3,401
|
|
(1
|
)
|
|
1,361
|
|
1,296
|
|
5
|
|
|
1,991
|
|
2,105
|
|
(5
|
)
|
||||||
Asset Management
|
5,734
|
|
5,378
|
|
7
|
|
|
4,137
|
|
3,768
|
|
10
|
|
|
1,597
|
|
1,610
|
|
(1
|
)
|
||||||
Corporate/Private Equity
|
638
|
|
(619
|
)
|
NM
|
|
|
14
|
|
718
|
|
(98
|
)
|
|
624
|
|
(1,337
|
)
|
NM
|
|
||||||
Total
|
$
|
49,212
|
|
$
|
51,806
|
|
(5
|
)%
|
|
$
|
30,067
|
|
$
|
31,289
|
|
(4
|
)%
|
|
$
|
19,145
|
|
$
|
20,517
|
|
(7
|
)%
|
Six months ended June 30,
|
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
|
$
|
1,668
|
|
$
|
530
|
|
215
|
%
|
|
$
|
4,379
|
|
$
|
5,675
|
|
(23
|
)%
|
|
17
|
%
|
25
|
%
|
Corporate & Investment Bank
|
(35
|
)
|
5
|
|
NM
|
|
|
3,942
|
|
5,448
|
|
(28
|
)
|
|
13
|
|
19
|
|
||||
Commercial Banking
|
(62
|
)
|
83
|
|
NM
|
|
|
1,236
|
|
1,217
|
|
2
|
|
|
18
|
|
18
|
|
||||
Asset Management
|
(8
|
)
|
44
|
|
NM
|
|
|
993
|
|
987
|
|
1
|
|
|
22
|
|
22
|
|
||||
Corporate/Private Equity
|
(21
|
)
|
2
|
|
NM
|
|
|
709
|
|
(302
|
)
|
NM
|
|
|
NM
|
|
NM
|
|
||||
Total
|
$
|
1,542
|
|
$
|
664
|
|
132
|
%
|
|
$
|
11,259
|
|
$
|
13,025
|
|
(14
|
)%
|
|
11
|
%
|
13
|
%
|
CONSUMER & COMMUNITY BANKING
|
Selected income statement data
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|||||||||||||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
|
Change
|
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Lending- and deposit-related fees
|
$
|
750
|
|
|
$
|
727
|
|
|
3
|
%
|
|
$
|
1,453
|
|
|
$
|
1,450
|
|
|
|
—
|
|
Asset management, administration and commissions
|
521
|
|
|
561
|
|
|
(7
|
)
|
|
1,024
|
|
|
1,094
|
|
|
|
(6
|
)
|
||||
Mortgage fees and related income
|
1,290
|
|
|
1,819
|
|
|
(29
|
)
|
|
1,804
|
|
|
3,269
|
|
|
|
(45
|
)
|
||||
Card income
|
1,486
|
|
|
1,445
|
|
|
3
|
|
|
2,834
|
|
|
2,807
|
|
|
|
1
|
|
||||
All other income
|
421
|
|
|
369
|
|
|
14
|
|
|
787
|
|
|
707
|
|
|
|
11
|
|
||||
Noninterest revenue
|
4,468
|
|
|
4,921
|
|
|
(9
|
)
|
|
7,902
|
|
|
9,327
|
|
|
|
(15
|
)
|
||||
Net interest income
|
6,963
|
|
|
7,094
|
|
|
(2
|
)
|
|
13,989
|
|
|
14,303
|
|
|
|
(2
|
)
|
||||
Total net revenue
|
11,431
|
|
|
12,015
|
|
|
(5
|
)
|
|
21,891
|
|
|
23,630
|
|
|
|
(7
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for credit losses
|
852
|
|
|
(19
|
)
|
|
NM
|
|
|
1,668
|
|
|
530
|
|
|
|
215
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation expense
|
2,637
|
|
|
2,966
|
|
|
(11
|
)
|
|
5,376
|
|
|
5,972
|
|
|
|
(10
|
)
|
||||
Noncompensation expense
|
3,725
|
|
|
3,789
|
|
|
(2
|
)
|
|
7,329
|
|
|
7,465
|
|
|
|
(2
|
)
|
||||
Amortization of intangibles
|
94
|
|
|
109
|
|
|
(14
|
)
|
|
188
|
|
|
217
|
|
|
|
(13
|
)
|
||||
Total noninterest expense
|
6,456
|
|
|
6,864
|
|
|
(6
|
)
|
|
12,893
|
|
|
13,654
|
|
|
|
(6
|
)
|
||||
Income before income tax expense
|
4,123
|
|
|
5,170
|
|
|
(20
|
)
|
|
7,330
|
|
|
9,446
|
|
|
|
(22
|
)
|
||||
Income tax expense
|
1,680
|
|
|
2,081
|
|
|
(19
|
)
|
|
2,951
|
|
|
3,771
|
|
|
|
(22
|
)
|
||||
Net income
|
$
|
2,443
|
|
|
$
|
3,089
|
|
|
(21
|
)%
|
|
$
|
4,379
|
|
|
$
|
5,675
|
|
|
|
(23
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on common equity
|
19
|
%
|
|
27
|
%
|
|
|
|
17
|
%
|
|
25
|
%
|
|
|
|
||||||
Overhead ratio
|
56
|
|
|
57
|
|
|
|
|
59
|
|
|
58
|
|
|
|
|
Selected metrics
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
As of or for the three months
ended June 30, |
|
As of or for the six months
ended June 30, |
||||||||||||||||||
(in millions, except headcount)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
447,277
|
|
|
$
|
460,642
|
|
|
(3
|
)%
|
|
$
|
447,277
|
|
|
$
|
460,642
|
|
|
(3
|
)%
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans retained
|
390,211
|
|
|
392,067
|
|
|
—
|
|
|
390,211
|
|
|
392,067
|
|
|
—
|
|
||||
Loans held-for-sale and loans at fair value
(a)
|
8,881
|
|
|
15,274
|
|
|
(42
|
)
|
|
8,881
|
|
|
15,274
|
|
|
(42
|
)
|
||||
Total loans
|
399,092
|
|
|
407,341
|
|
|
(2
|
)
|
|
399,092
|
|
|
407,341
|
|
|
(2
|
)
|
||||
Deposits
|
488,681
|
|
|
456,814
|
|
|
7
|
|
|
488,681
|
|
|
456,814
|
|
|
7
|
|
||||
Equity
(b)
|
51,000
|
|
|
46,000
|
|
|
11
|
|
|
51,000
|
|
|
46,000
|
|
|
11
|
|
||||
Selected balance sheet data (average)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
443,204
|
|
|
$
|
457,644
|
|
|
(3
|
)
|
|
$
|
446,794
|
|
|
$
|
460,569
|
|
|
(3
|
)
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans retained
|
388,252
|
|
|
392,935
|
|
|
(1
|
)
|
|
388,464
|
|
|
395,014
|
|
|
(2
|
)
|
||||
Loans held-for-sale and loans at fair value
(a)
|
7,303
|
|
|
18,199
|
|
|
(60
|
)
|
|
7,700
|
|
|
19,682
|
|
|
(61
|
)
|
||||
Total loans
|
395,555
|
|
|
411,134
|
|
|
(4
|
)
|
|
396,164
|
|
|
414,696
|
|
|
(4
|
)
|
||||
Deposits
|
486,064
|
|
|
453,586
|
|
|
7
|
|
|
478,862
|
|
|
447,494
|
|
|
7
|
|
||||
Equity
(b)
|
51,000
|
|
|
46,000
|
|
|
11
|
|
|
51,000
|
|
|
46,000
|
|
|
11
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Headcount
|
141,688
|
|
|
157,886
|
|
|
(10
|
)%
|
|
141,688
|
|
|
157,886
|
|
|
(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 June 30, |
|
As of or for the six months
ended June 30, |
||||||||||||||||||
(in millions, except ratios and where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Credit data and quality statistics
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs
(a)
|
$
|
1,208
|
|
|
$
|
1,481
|
|
|
(18
|
)%
|
|
$
|
2,474
|
|
|
$
|
3,180
|
|
|
(22
|
)%
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans retained
|
6,840
|
|
|
8,540
|
|
|
(20
|
)
|
|
6,840
|
|
|
8,540
|
|
|
(20
|
)
|
||||
Nonaccrual loans held-for-sale and loans at fair value
|
202
|
|
|
41
|
|
|
393
|
|
|
202
|
|
|
41
|
|
|
393
|
|
||||
Total nonaccrual loans
(b)(c)(d)
|
7,042
|
|
|
8,581
|
|
|
(18
|
)
|
|
7,042
|
|
|
8,581
|
|
|
(18
|
)
|
||||
Nonperforming assets
(b)(c)(d)
|
7,594
|
|
|
9,212
|
|
|
(18
|
)
|
|
7,594
|
|
|
9,212
|
|
|
(18
|
)
|
||||
Allowance for loan losses
(a)
|
11,284
|
|
|
15,095
|
|
|
(25
|
)
|
|
11,284
|
|
|
15,095
|
|
|
(25
|
)
|
||||
Net charge-off rate
(a)(e)
|
1.25
|
%
|
|
1.51
|
%
|
|
|
|
1.28
|
%
|
|
1.62
|
%
|
|
|
||||||
Net charge-off rate,
excluding PCI loans
(e)
|
1.44
|
|
|
1.77
|
|
|
|
|
1.48
|
|
|
1.90
|
|
|
|
||||||
Allowance for loan losses to period-end loans retained
|
2.89
|
|
|
3.85
|
|
|
|
|
2.89
|
|
|
3.85
|
|
|
|
||||||
Allowance for loan losses to period-end loans retained,
excluding PCI loans
(f)
|
2.22
|
|
|
2.80
|
|
|
|
|
2.22
|
|
|
2.80
|
|
|
|
||||||
Allowance for loan losses to nonaccrual loans retained, excluding credit card
(b)(f)
|
58
|
|
|
58
|
|
|
|
|
58
|
|
|
58
|
|
|
|
||||||
Nonaccrual loans to total period-end loans, excluding credit card
|
2.58
|
|
|
3.03
|
|
|
|
|
2.58
|
|
|
3.03
|
|
|
|
||||||
Nonaccrual loans to total period-end loans, excluding credit card and PCI loans
(b)
|
3.16
|
|
|
3.79
|
|
|
|
|
3.16
|
|
|
3.79
|
|
|
|
||||||
Business metrics
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Branches
|
5,636
|
|
|
5,657
|
|
|
—
|
|
|
5,636
|
|
|
5,657
|
|
|
—
|
|
||||
ATMs
(g)
|
20,394
|
|
|
19,852
|
|
|
3
|
|
|
20,394
|
|
|
19,852
|
|
|
3
|
|
||||
Active online customers (in thousands)
|
35,105
|
|
|
32,245
|
|
|
9
|
|
|
35,105
|
|
|
32,245
|
|
|
9
|
|
||||
Active mobile customers (in thousands)
|
17,201
|
|
|
14,013
|
|
|
23
|
%
|
|
17,201
|
|
|
14,013
|
|
|
23
|
%
|
(a)
|
Net charge-offs and the net charge-off rates excluded $48 million and $109 million of write-offs in the PCI portfolio for the three and six months ended June 30, 2014, respectively. 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 June 30, 2014 and 2013, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $8.1 billion and $10.1 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 $1.8 billion, respectively; and (3) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $316 million and $488 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 $3.7 billion and $5.7 billion at June 30, 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 financial statement data
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
As of or for the three months
ended June 30, |
|
As of or for the six months
ended June 30, |
||||||||||||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Lending- and deposit-related fees
|
$
|
747
|
|
|
$
|
717
|
|
|
4
|
%
|
|
$
|
1,438
|
|
|
$
|
1,428
|
|
|
1
|
%
|
Asset management, administration and commissions
|
507
|
|
|
454
|
|
|
12
|
|
|
990
|
|
|
880
|
|
|
13
|
|
||||
Card income
|
406
|
|
|
378
|
|
|
7
|
|
|
782
|
|
|
727
|
|
|
8
|
|
||||
All other income
|
162
|
|
|
124
|
|
|
31
|
|
|
284
|
|
|
243
|
|
|
17
|
|
||||
Noninterest revenue
|
1,822
|
|
|
1,673
|
|
|
9
|
|
|
3,494
|
|
|
3,278
|
|
|
7
|
|
||||
Net interest income
|
2,770
|
|
|
2,614
|
|
|
6
|
|
|
5,478
|
|
|
5,186
|
|
|
6
|
|
||||
Total net revenue
|
4,592
|
|
|
4,287
|
|
|
7
|
|
|
8,972
|
|
|
8,464
|
|
|
6
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for credit losses
|
66
|
|
|
74
|
|
|
(11
|
)
|
|
142
|
|
|
135
|
|
|
5
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest expense
|
3,026
|
|
|
3,042
|
|
|
(1
|
)
|
|
6,091
|
|
|
6,083
|
|
|
—
|
|
||||
Income before income tax expense
|
1,500
|
|
|
1,171
|
|
|
28
|
|
|
2,739
|
|
|
2,246
|
|
|
22
|
|
||||
Net income
|
$
|
894
|
|
|
$
|
698
|
|
|
28
|
|
|
$
|
1,634
|
|
|
$
|
1,339
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on common equity
|
33
|
%
|
|
25
|
%
|
|
|
|
30%
|
|
|
25
|
%
|
|
|
||||||
Overhead ratio
|
66
|
|
|
71
|
|
|
|
|
68
|
|
|
72
|
|
|
|
||||||
Equity (period-end and average)
|
$
|
11,000
|
|
|
$
|
11,000
|
|
|
—
|
%
|
|
$
|
11,000
|
|
|
$
|
11,000
|
|
|
—
|
|
Selected metrics
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
As of or for the three months
ended June 30, |
|
As of or for the six months
ended June 30, |
||||||||||||||||||
(in millions, except ratios and where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Business metrics
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Business banking origination volume
|
$
|
1,917
|
|
|
$
|
1,317
|
|
|
46
|
%
|
|
$
|
3,421
|
|
|
$
|
2,551
|
|
|
34
|
%
|
Period-end loans
|
20,276
|
|
|
18,950
|
|
|
7
|
|
|
20,276
|
|
|
18,950
|
|
|
7
|
|
||||
Period-end deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Checking
|
200,560
|
|
|
179,801
|
|
|
12
|
|
|
200,560
|
|
|
179,801
|
|
|
12
|
|
||||
Savings
|
249,175
|
|
|
228,879
|
|
|
9
|
|
|
249,175
|
|
|
228,879
|
|
|
9
|
|
||||
Time and other
|
24,421
|
|
|
29,255
|
|
|
(17
|
)
|
|
24,421
|
|
|
29,255
|
|
|
(17
|
)
|
||||
Total period-end deposits
|
474,156
|
|
|
437,935
|
|
|
8
|
|
|
474,156
|
|
|
437,935
|
|
|
8
|
|
||||
Average loans
|
19,928
|
|
|
18,758
|
|
|
6
|
|
|
19,691
|
|
|
18,734
|
|
|
5
|
|
||||
Average deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Checking
|
197,490
|
|
|
175,496
|
|
|
13
|
|
|
193,511
|
|
|
172,115
|
|
|
12
|
|
||||
Savings
|
249,240
|
|
|
227,453
|
|
|
10
|
|
|
246,386
|
|
|
224,440
|
|
|
10
|
|
||||
Time and other
|
24,832
|
|
|
29,840
|
|
|
(17
|
)
|
|
25,153
|
|
|
30,432
|
|
|
(17
|
)
|
||||
Total average deposits
|
471,562
|
|
|
432,789
|
|
|
9
|
|
|
465,050
|
|
|
426,987
|
|
|
9
|
|
||||
Deposit margin
|
2.23
|
%
|
|
2.31
|
%
|
|
|
|
2.25
|
%
|
|
2.34
|
%
|
|
|
||||||
Average assets
|
$
|
37,810
|
|
|
$
|
37,250
|
|
|
2
|
|
|
$
|
37,964
|
|
|
$
|
36,779
|
|
|
3
|
|
Credit data and quality statistics
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net charge-offs
|
$
|
69
|
|
|
$
|
74
|
|
|
(7
|
)
|
|
$
|
145
|
|
|
$
|
135
|
|
|
7
|
|
Net charge-off rate
|
1.39
|
%
|
|
1.58
|
%
|
|
|
|
1.48
|
%
|
|
1.45
|
%
|
|
|
||||||
Allowance for loan losses
|
$
|
703
|
|
|
$
|
697
|
|
|
1
|
|
|
$
|
703
|
|
|
$
|
697
|
|
|
1
|
|
Nonperforming assets
|
335
|
|
|
461
|
|
|
(27
|
)
|
|
335
|
|
|
461
|
|
|
(27
|
)
|
||||
Retail branch business metrics
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net new investment assets
|
$
|
4,324
|
|
|
$
|
4,269
|
|
|
1
|
|
|
$
|
8,565
|
|
|
$
|
9,201
|
|
|
(7
|
)
|
Client investment assets
|
205,206
|
|
|
171,925
|
|
|
19
|
|
|
205,206
|
|
|
171,925
|
|
|
19
|
|
||||
% managed accounts
|
38
|
%
|
|
33
|
%
|
|
|
|
38
|
%
|
|
33
|
%
|
|
|
||||||
Number of:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Chase Private Client locations
|
2,408
|
|
|
1,691
|
|
|
42
|
|
|
2,408
|
|
|
1,691
|
|
|
42
|
|
||||
Personal bankers
|
21,728
|
|
|
22,825
|
|
|
(5
|
)
|
|
21,728
|
|
|
22,825
|
|
|
(5
|
)
|
||||
Sales specialists
|
4,405
|
|
|
6,326
|
|
|
(30
|
)
|
|
4,405
|
|
|
6,326
|
|
|
(30
|
)
|
||||
Client advisors
|
3,075
|
|
|
3,024
|
|
|
2
|
|
|
3,075
|
|
|
3,024
|
|
|
2
|
|
||||
Chase Private Clients
|
262,965
|
|
|
165,331
|
|
|
59
|
|
|
262,965
|
|
|
165,331
|
|
|
59
|
|
||||
Accounts (in thousands)
(a)
|
30,144
|
|
|
28,937
|
|
|
4
|
|
|
30,144
|
|
|
28,937
|
|
|
4
|
|
||||
Households (in millions)
|
25.5
|
|
|
24.7
|
|
|
3
|
%
|
|
25.5
|
|
|
24.7
|
|
|
3
|
%
|
(a)
|
Includes checking accounts and Chase Liquid
®
cards.
|
Selected financial statement data
|
|
|
|
|
|
|
|||||||||||||||
|
As of or for the three months
ended June 30, |
|
As of or for the six months
ended June 30, |
||||||||||||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage fees and related income
|
$
|
1,290
|
|
|
$
|
1,819
|
|
|
(29
|
)%
|
|
$
|
1,804
|
|
|
$
|
3,269
|
|
|
(45
|
)%
|
All other income
|
(17
|
)
|
|
101
|
|
|
NM
|
|
|
(20
|
)
|
|
194
|
|
|
NM
|
|||||
Noninterest revenue
|
1,273
|
|
|
1,920
|
|
|
(34
|
)
|
|
1,784
|
|
|
3,463
|
|
|
(48
|
)
|
||||
Net interest income
|
1,013
|
|
|
1,138
|
|
|
(11
|
)
|
|
2,071
|
|
|
2,313
|
|
|
(10
|
)
|
||||
Total net revenue
|
2,286
|
|
|
3,058
|
|
|
(25
|
)
|
|
3,855
|
|
|
5,776
|
|
|
(33
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for credit losses
|
(188
|
)
|
|
(657
|
)
|
|
71
|
|
|
(211
|
)
|
|
(855
|
)
|
|
75
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest expense
|
1,306
|
|
|
1,834
|
|
|
(29
|
)
|
|
2,709
|
|
|
3,640
|
|
|
(26
|
)
|
||||
Income before income tax expense
|
1,168
|
|
|
1,881
|
|
|
(38
|
)
|
|
1,357
|
|
|
2,991
|
|
|
(55
|
)
|
||||
Net income
|
$
|
709
|
|
|
$
|
1,142
|
|
|
(38
|
)
|
|
$
|
823
|
|
|
$
|
1,815
|
|
|
(55
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on common equity
|
16
|
%
|
|
23
|
%
|
|
|
|
9
|
%
|
|
19
|
%
|
|
|
||||||
Overhead ratio
|
57
|
|
|
60
|
|
|
|
|
70
|
|
|
63
|
|
|
|
||||||
Equity (period-end and average)
|
$
|
18,000
|
|
|
$
|
19,500
|
|
|
(8
|
)%
|
|
$
|
18,000
|
|
|
$
|
19,500
|
|
|
(8
|
)%
|
Functional results
|
|
|
|
|
|
|
|||||||||||||||
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Mortgage Production
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production revenue and other income
(a)
|
$
|
251
|
|
|
$
|
1,120
|
|
|
(78
|
)%
|
|
$
|
453
|
|
|
$
|
2,152
|
|
|
(79
|
)%
|
Production-related net interest income
(a)
|
88
|
|
|
166
|
|
|
(47
|
)
|
|
178
|
|
|
352
|
|
|
(49
|
)
|
||||
Production-related revenue, excluding repurchase (losses)/benefits
|
339
|
|
|
1,286
|
|
|
(74
|
)
|
|
631
|
|
|
2,504
|
|
|
(75
|
)
|
||||
Production expense
(b)
|
413
|
|
|
720
|
|
|
(43
|
)
|
|
891
|
|
|
1,430
|
|
|
(38
|
)
|
||||
Income, excluding repurchase (losses)/benefits
|
(74
|
)
|
|
566
|
|
|
NM
|
|
|
(260
|
)
|
|
1,074
|
|
|
NM
|
|
||||
Repurchase (losses)/benefits
|
137
|
|
|
16
|
|
|
NM
|
|
|
265
|
|
|
(65
|
)
|
|
NM
|
|
||||
Income before income tax expense
|
63
|
|
|
582
|
|
|
(89
|
)
|
|
5
|
|
|
1,009
|
|
|
(100
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage Servicing
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loan servicing revenue and other income
(a)
|
864
|
|
|
1,024
|
|
|
(16
|
)
|
|
1,735
|
|
|
2,033
|
|
|
(15
|
)
|
||||
Servicing-related net interest income
(a)
|
66
|
|
|
31
|
|
|
113
|
|
|
153
|
|
|
58
|
|
|
164
|
|
||||
Servicing-related revenue
|
930
|
|
|
1,055
|
|
|
(12
|
)
|
|
1,888
|
|
|
2,091
|
|
|
(10
|
)
|
||||
Changes in MSR asset fair value due to collection/realization of expected cash flows
|
(237
|
)
|
|
(285
|
)
|
|
17
|
|
|
(482
|
)
|
|
(543
|
)
|
|
11
|
|
||||
Default servicing expense
|
340
|
|
|
475
|
|
|
(28
|
)
|
|
704
|
|
|
972
|
|
|
(28
|
)
|
||||
Core servicing expense
(b)
|
212
|
|
|
240
|
|
|
(12
|
)
|
|
430
|
|
|
480
|
|
|
(10
|
)
|
||||
Income, excluding MSR risk management
|
141
|
|
|
55
|
|
|
156
|
|
|
272
|
|
|
96
|
|
|
183
|
|
||||
MSR risk management, including related net interest income/(expense)
|
338
|
|
|
78
|
|
|
333
|
|
|
(63
|
)
|
|
(64
|
)
|
|
2
|
|
||||
Income before income tax expense
|
479
|
|
|
133
|
|
|
260
|
|
|
209
|
|
|
32
|
|
|
NM
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real Estate Portfolios
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest revenue
|
(79
|
)
|
|
(34
|
)
|
|
(132
|
)
|
|
(124
|
)
|
|
(51
|
)
|
|
(143
|
)
|
||||
Net interest income
|
858
|
|
|
942
|
|
|
(9
|
)
|
|
1,740
|
|
|
1,904
|
|
|
(9
|
)
|
||||
Total net revenue
|
779
|
|
|
908
|
|
|
(14
|
)
|
|
1,616
|
|
|
1,853
|
|
|
(13
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for credit losses
|
(189
|
)
|
|
(662
|
)
|
|
71
|
|
|
(215
|
)
|
|
(864
|
)
|
|
75
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest expense
|
342
|
|
|
404
|
|
|
(15
|
)
|
|
688
|
|
|
767
|
|
|
(10
|
)
|
||||
Income before income tax expense
|
626
|
|
|
1,166
|
|
|
(46
|
)
|
|
1,143
|
|
|
1,950
|
|
|
(41
|
)
|
||||
Mortgage Banking income before income tax expense
|
$
|
1,168
|
|
|
$
|
1,881
|
|
|
(38
|
)
|
|
$
|
1,357
|
|
|
$
|
2,991
|
|
|
(55
|
)
|
Mortgage Banking net income
|
$
|
709
|
|
|
$
|
1,142
|
|
|
(38
|
)%
|
|
$
|
823
|
|
|
$
|
1,815
|
|
|
(55
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Overhead ratios
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage Production
|
87
|
%
|
|
55
|
%
|
|
|
|
99
|
%
|
|
58
|
%
|
|
|
||||||
Mortgage Servicing
|
53
|
|
|
84
|
|
|
|
|
84
|
|
|
98
|
|
|
|
||||||
Real Estate Portfolios
|
44
|
|
|
44
|
|
|
|
|
43
|
|
|
41
|
|
|
|
(a)
|
Prior periods were revised to conform with the current presentation.
|
(b)
|
Includes provision for credit losses.
|
(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 June 30, 2014 and 2013, excluded mortgage loans insured by U.S. government agencies of $9.6 billion and $11.2 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 which summarizes loan delinquency information.
|
(d)
|
At June 30, 2014 and 2013, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $8.1 billion and $10.1 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 $1.8 billion, respectively. These amounts have been excluded from nonaccrual loans based upon the government guarantee. For further discussion, see Note 13 which summarizes loan delinquency information.
|
Selected metrics
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of or for the three
months ended June 30,
|
|
As of or for the six
months ended June 30,
|
||||||||||||||||||
(in billions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Business metrics
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage origination volume by channel
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail
|
$
|
7.2
|
|
|
$
|
23.3
|
|
|
(69
|
)%
|
|
$
|
13.9
|
|
|
$
|
49.5
|
|
|
(72
|
)%
|
Correspondent
(a)
|
9.6
|
|
|
25.7
|
|
|
(63
|
)
|
|
19.9
|
|
|
52.2
|
|
|
(62
|
)
|
||||
Total mortgage origination volume
(b)
|
$
|
16.8
|
|
|
$
|
49.0
|
|
|
(66
|
)
|
|
$
|
33.8
|
|
|
$
|
101.7
|
|
|
(67
|
)
|
Mortgage application volume by channel
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail
|
$
|
15.7
|
|
|
$
|
36.8
|
|
|
(57
|
)
|
|
$
|
30.3
|
|
|
$
|
71.5
|
|
|
(58
|
)
|
Correspondent
(a)
|
14.4
|
|
|
28.2
|
|
|
(49
|
)
|
|
25.9
|
|
|
54.0
|
|
|
(52
|
)
|
||||
Total mortgage application volume
|
$
|
30.1
|
|
|
$
|
65.0
|
|
|
(54
|
)
|
|
$
|
56.2
|
|
|
$
|
125.5
|
|
|
(55
|
)
|
Third-party mortgage loans serviced (period-end)
|
$
|
786.2
|
|
|
$
|
832.0
|
|
|
(6
|
)
|
|
$
|
786.2
|
|
|
$
|
832.0
|
|
|
(6
|
)
|
Third-party mortgage loans serviced (average)
|
794.7
|
|
|
840.6
|
|
|
(5
|
)
|
|
802.0
|
|
|
847.4
|
|
|
(5
|
)
|
||||
MSR carrying value (period-end)
|
8.3
|
|
|
9.3
|
|
|
(11
|
)%
|
|
8.3
|
|
|
9.3
|
|
|
(11
|
)%
|
||||
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)
|
1.06
|
%
|
|
1.12
|
%
|
|
|
|
1.06
|
%
|
|
1.12
|
%
|
|
|
||||||
Ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average)
|
0.35
|
|
|
0.41
|
|
|
|
|
0.36
|
|
|
0.42
|
|
|
|
||||||
MSR revenue multiple
(c)
|
3.03
|
x
|
|
2.73
|
x
|
|
|
|
2.94
|
x
|
|
2.67
|
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 $18.0 billion and $52.0 billion for the three months ended June 30, 2014 and 2013, respectively, and $36.2 billion and $107.1 billion for the six months ended June 30, 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 June 30,
|
|
As of or for the six
months ended June 30,
|
||||||||||||||||||
(in millions)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Loans, excluding PCI
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Period-end loans owned:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
$
|
54,485
|
|
|
$
|
62,326
|
|
|
(13
|
)%
|
|
$
|
54,485
|
|
|
$
|
62,326
|
|
|
(13
|
)%
|
Prime mortgage, including option ARMs
|
54,709
|
|
|
44,003
|
|
|
24
|
|
|
54,709
|
|
|
44,003
|
|
|
24
|
|
||||
Subprime mortgage
|
6,636
|
|
|
7,703
|
|
|
(14
|
)
|
|
6,636
|
|
|
7,703
|
|
|
(14
|
)
|
||||
Other
|
510
|
|
|
589
|
|
|
(13
|
)
|
|
510
|
|
|
589
|
|
|
(13
|
)
|
||||
Total period-end loans owned
|
$
|
116,340
|
|
|
$
|
114,621
|
|
|
1
|
|
|
$
|
116,340
|
|
|
$
|
114,621
|
|
|
1
|
|
Average loans owned:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
$
|
55,329
|
|
|
$
|
63,593
|
|
|
(13
|
)
|
|
$
|
56,167
|
|
|
$
|
64,856
|
|
|
(13
|
)
|
Prime mortgage, including option ARMs
|
53,132
|
|
|
43,007
|
|
|
24
|
|
|
51,940
|
|
|
42,411
|
|
|
22
|
|
||||
Subprime mortgage
|
6,754
|
|
|
7,840
|
|
|
(14
|
)
|
|
6,880
|
|
|
7,989
|
|
|
(14
|
)
|
||||
Other
|
520
|
|
|
597
|
|
|
(13
|
)
|
|
530
|
|
|
608
|
|
|
(13
|
)
|
||||
Total average loans owned
|
$
|
115,735
|
|
|
$
|
115,037
|
|
|
1
|
|
|
$
|
115,517
|
|
|
$
|
115,864
|
|
|
—
|
|
PCI loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Period-end loans owned:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
$
|
18,070
|
|
|
$
|
19,992
|
|
|
(10
|
)
|
|
$
|
18,070
|
|
|
$
|
19,992
|
|
|
(10
|
)
|
Prime mortgage
|
11,302
|
|
|
12,976
|
|
|
(13
|
)
|
|
11,302
|
|
|
12,976
|
|
|
(13
|
)
|
||||
Subprime mortgage
|
3,947
|
|
|
4,448
|
|
|
(11
|
)
|
|
3,947
|
|
|
4,448
|
|
|
(11
|
)
|
||||
Option ARMs
|
16,799
|
|
|
19,320
|
|
|
(13
|
)
|
|
16,799
|
|
|
19,320
|
|
|
(13
|
)
|
||||
Total period-end loans owned
|
$
|
50,118
|
|
|
$
|
56,736
|
|
|
(12
|
)
|
|
$
|
50,118
|
|
|
$
|
56,736
|
|
|
(12
|
)
|
Average loans owned:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
$
|
18,295
|
|
|
$
|
20,245
|
|
|
(10
|
)
|
|
$
|
18,506
|
|
|
$
|
20,494
|
|
|
(10
|
)
|
Prime mortgage
|
11,487
|
|
|
13,152
|
|
|
(13
|
)
|
|
11,677
|
|
|
13,337
|
|
|
(12
|
)
|
||||
Subprime mortgage
|
4,001
|
|
|
4,488
|
|
|
(11
|
)
|
|
4,064
|
|
|
4,538
|
|
|
(10
|
)
|
||||
Option ARMs
|
17,074
|
|
|
19,618
|
|
|
(13
|
)
|
|
17,379
|
|
|
19,920
|
|
|
(13
|
)
|
||||
Total average loans owned
|
$
|
50,857
|
|
|
$
|
57,503
|
|
|
(12
|
)
|
|
$
|
51,626
|
|
|
$
|
58,289
|
|
|
(11
|
)
|
Total Real Estate Portfolios
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Period-end loans owned:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
$
|
72,555
|
|
|
$
|
82,318
|
|
|
(12
|
)
|
|
$
|
72,555
|
|
|
$
|
82,318
|
|
|
(12
|
)
|
Prime mortgage, including option ARMs
|
82,810
|
|
|
76,299
|
|
|
9
|
|
|
82,810
|
|
|
76,299
|
|
|
9
|
|
||||
Subprime mortgage
|
10,583
|
|
|
12,151
|
|
|
(13
|
)
|
|
10,583
|
|
|
12,151
|
|
|
(13
|
)
|
||||
Other
|
510
|
|
|
589
|
|
|
(13
|
)
|
|
510
|
|
|
589
|
|
|
(13
|
)
|
||||
Total period-end loans owned
|
$
|
166,458
|
|
|
$
|
171,357
|
|
|
(3
|
)
|
|
$
|
166,458
|
|
|
$
|
171,357
|
|
|
(3
|
)
|
Average loans owned:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
$
|
73,624
|
|
|
$
|
83,838
|
|
|
(12
|
)
|
|
$
|
74,673
|
|
|
$
|
85,350
|
|
|
(13
|
)
|
Prime mortgage, including option ARMs
|
81,693
|
|
|
75,777
|
|
|
8
|
|
|
80,996
|
|
|
75,668
|
|
|
7
|
|
||||
Subprime mortgage
|
10,755
|
|
|
12,328
|
|
|
(13
|
)
|
|
10,944
|
|
|
12,527
|
|
|
(13
|
)
|
||||
Other
|
520
|
|
|
597
|
|
|
(13
|
)
|
|
530
|
|
|
608
|
|
|
(13
|
)
|
||||
Total average loans owned
|
$
|
166,592
|
|
|
$
|
172,540
|
|
|
(3
|
)
|
|
$
|
167,143
|
|
|
$
|
174,153
|
|
|
(4
|
)
|
Average assets
|
$
|
163,583
|
|
|
$
|
163,593
|
|
|
—
|
|
|
$
|
164,110
|
|
|
$
|
164,975
|
|
|
(1
|
)
|
Home equity origination volume
|
802
|
|
|
499
|
|
|
61
|
%
|
|
1,457
|
|
|
901
|
|
|
62
|
%
|
(a)
|
Net charge-offs and the net charge-off rates excluded $48 million and $109 million of write-offs in the PCI portfolio for the three and six months ended June 30, 2014, respectively. 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 14.08% and 17.92% at June 30, 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 June 30 ,
|
|
As of or for the six
months ended June 30,
|
||||||||||||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Card income
|
$
|
1,080
|
|
|
$
|
1,067
|
|
|
1
|
%
|
|
$
|
2,052
|
|
|
$
|
2,080
|
|
|
(1
|
)%
|
All other income
|
293
|
|
|
261
|
|
|
12
|
|
|
572
|
|
|
506
|
|
|
13
|
|
||||
Noninterest revenue
|
1,373
|
|
|
1,328
|
|
|
3
|
|
|
2,624
|
|
|
2,586
|
|
|
1
|
|
||||
Net interest income
|
3,180
|
|
|
3,342
|
|
|
(5
|
)
|
|
6,440
|
|
|
6,804
|
|
|
(5
|
)
|
||||
Total net revenue
|
4,553
|
|
|
4,670
|
|
|
(3
|
)
|
|
9,064
|
|
|
9,390
|
|
|
(3
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for credit losses
|
974
|
|
|
564
|
|
|
73
|
|
|
1,737
|
|
|
1,250
|
|
|
39
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest expense
|
2,124
|
|
|
1,988
|
|
|
7
|
|
|
4,093
|
|
|
3,931
|
|
|
4
|
|
||||
Income before income tax expense
|
1,455
|
|
|
2,118
|
|
|
(31
|
)
|
|
3,234
|
|
|
4,209
|
|
|
(23
|
)
|
||||
Net income
|
$
|
840
|
|
|
$
|
1,249
|
|
|
(33
|
)
|
|
$
|
1,922
|
|
|
$
|
2,521
|
|
|
(24
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on common equity
|
18
|
%
|
|
32
|
%
|
|
|
|
20
|
%
|
|
33
|
%
|
|
|
||||||
Overhead ratio
|
47
|
|
|
43
|
|
|
|
|
45
|
|
|
42
|
|
|
|
||||||
Equity (period-end and average)
|
$
|
19,000
|
|
|
$
|
15,500
|
|
|
23
|
%
|
|
$
|
19,000
|
|
|
$
|
15,500
|
|
|
23
|
%
|
Selected metrics
|
|
|
|
|
|
|
|||||||||||||||
|
As of or for the three
months ended June 30,
|
|
As of or for the six
months ended June 30,
|
||||||||||||||||||
(in millions, except ratios and where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Card
|
$
|
126,129
|
|
|
$
|
124,288
|
|
|
1
|
%
|
|
$
|
126,129
|
|
|
$
|
124,288
|
|
|
1
|
%
|
Auto
|
53,042
|
|
|
50,865
|
|
|
4
|
|
|
53,042
|
|
|
50,865
|
|
|
4
|
|
||||
Student
|
9,992
|
|
|
11,040
|
|
|
(9
|
)
|
|
9,992
|
|
|
11,040
|
|
|
(9
|
)
|
||||
Total loans
|
$
|
189,163
|
|
|
$
|
186,193
|
|
|
2
|
|
|
$
|
189,163
|
|
|
$
|
186,193
|
|
|
2
|
|
Selected balance sheet
data (average)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
200,710
|
|
|
$
|
196,921
|
|
|
2
|
|
|
$
|
201,238
|
|
|
$
|
196,778
|
|
|
2
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Card
|
123,679
|
|
|
122,855
|
|
|
1
|
|
|
123,471
|
|
|
123,208
|
|
|
—
|
|
||||
Auto
|
52,818
|
|
|
50,677
|
|
|
4
|
|
|
52,780
|
|
|
50,362
|
|
|
5
|
|
||||
Student
|
10,155
|
|
|
11,172
|
|
|
(9
|
)
|
|
10,301
|
|
|
11,315
|
|
|
(9
|
)
|
||||
Total loans
|
$
|
186,652
|
|
|
$
|
184,704
|
|
|
1
|
|
|
$
|
186,552
|
|
|
$
|
184,885
|
|
|
1
|
|
Business metrics
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Card, excluding Commercial Card
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales volume (in billions)
|
$
|
118.0
|
|
|
$
|
105.2
|
|
|
12
|
|
|
$
|
222.5
|
|
|
$
|
199.9
|
|
|
11
|
|
New accounts opened
|
2.1
|
|
|
1.5
|
|
|
40
|
|
|
4.2
|
|
|
3.2
|
|
|
31
|
|
||||
Open accounts
|
65.8
|
|
|
64.8
|
|
|
2
|
|
|
65.8
|
|
|
64.8
|
|
|
2
|
|
||||
Accounts with sales activity
|
31.8
|
|
|
30.0
|
|
|
6
|
|
|
31.8
|
|
|
30.0
|
|
|
6
|
|
||||
% of accounts acquired online
|
54
|
%
|
|
53
|
%
|
|
|
|
53
|
%
|
|
52
|
%
|
|
|
||||||
Merchant Services (Chase Paymentech Solutions)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchant processing volume (in billions)
|
$
|
209.0
|
|
|
$
|
185.0
|
|
|
13
|
|
|
$
|
404.4
|
|
|
$
|
360.8
|
|
|
12
|
|
Total transactions (in billions)
|
9.3
|
|
|
8.8
|
|
|
6
|
|
|
18.4
|
|
|
17.1
|
|
|
8
|
|
||||
Auto
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Origination volume (in billions)
|
$
|
7.1
|
|
|
$
|
6.8
|
|
|
4
|
%
|
|
$
|
13.8
|
|
|
$
|
13.3
|
|
|
4
|
%
|
Selected metrics
|
|
|
|
|
|
|
||||||||||||||||
|
|
As of or for the three
months ended June 30,
|
|
As of or for the six
months ended June 30,
|
||||||||||||||||||
(in millions, except ratios)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Credit data and quality statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Card
|
|
$
|
885
|
|
|
$
|
1,014
|
|
|
(13
|
)%
|
|
$
|
1,773
|
|
|
$
|
2,096
|
|
|
(15
|
)%
|
Auto
|
|
29
|
|
|
23
|
|
|
26
|
|
|
70
|
|
|
63
|
|
|
11
|
|
||||
Student
|
|
113
|
|
|
77
|
|
|
47
|
|
|
197
|
|
|
141
|
|
|
40
|
|
||||
Total net charge-offs
|
|
$
|
1,027
|
|
|
$
|
1,114
|
|
|
(8
|
)
|
|
$
|
2,040
|
|
|
$
|
2,300
|
|
|
(11
|
)
|
Net charge-off rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Card
(a)
|
|
2.88
|
%
|
|
3.31
|
%
|
|
|
|
2.90
|
%
|
|
3.43
|
%
|
|
|
||||||
Auto
|
|
0.22
|
|
|
0.18
|
|
|
|
|
0.27
|
|
|
0.25
|
|
|
|
||||||
Student
|
|
4.46
|
|
|
2.76
|
|
|
|
|
3.86
|
|
|
2.51
|
|
|
|
||||||
Total net charge-off rate
|
|
2.21
|
|
|
2.42
|
|
|
|
|
2.21
|
|
|
2.51
|
|
|
|
||||||
Delinquency rates
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
30+ day delinquency rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Card
(b)
|
|
1.41
|
|
|
1.69
|
|
|
|
|
1.41
|
|
|
1.69
|
|
|
|
||||||
Auto
|
|
0.93
|
|
|
0.95
|
|
|
|
|
0.93
|
|
|
0.95
|
|
|
|
||||||
Student
(c)
|
|
2.67
|
|
|
2.23
|
|
|
|
|
2.67
|
|
|
2.23
|
|
|
|
||||||
Total 30+ day delinquency rate
|
|
1.34
|
|
|
1.52
|
|
|
|
|
1.34
|
|
|
1.52
|
|
|
|
||||||
90+ day delinquency rate – Credit Card
(b)
|
|
0.69
|
|
|
0.82
|
|
|
|
|
0.69
|
|
|
0.82
|
|
|
|
||||||
Nonperforming assets
(d)
|
|
$
|
301
|
|
|
$
|
243
|
|
|
24
|
|
|
$
|
301
|
|
|
$
|
243
|
|
|
24
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Card
|
|
$
|
3,594
|
|
|
$
|
4,445
|
|
|
(19
|
)
|
|
$
|
3,594
|
|
|
$
|
4,445
|
|
|
(19
|
)
|
Auto & Student
|
|
850
|
|
|
954
|
|
|
(11
|
)
|
|
850
|
|
|
954
|
|
|
(11
|
)
|
||||
Total allowance for loan losses
|
|
$
|
4,444
|
|
|
$
|
5,399
|
|
|
(18
|
)%
|
|
$
|
4,444
|
|
|
$
|
5,399
|
|
|
(18
|
)%
|
Allowance for loan losses to period-end loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Card
(b)
|
|
2.86
|
%
|
|
3.58
|
%
|
|
|
|
2.86
|
%
|
|
3.58
|
%
|
|
|
||||||
Auto & Student
|
|
1.35
|
|
|
1.54
|
|
|
|
|
1.35
|
|
|
1.54
|
|
|
|
||||||
Total allowance for loan losses to period-end loans
|
|
2.36
|
|
|
2.90
|
|
|
|
|
2.36
|
|
|
2.90
|
|
|
|
(a)
|
Average credit card loans included loans held-for-sale of $405 million for the three months ended June 30, 2014 and $360 million for the six months ended June 30, 2014. These amounts are excluded when calculating the net charge-off rate. There were no loans held-for-sale for the three and six months ended June 30, 2013.
|
(b)
|
Period-end credit card loans included loans held-for-sale of $508 million at June 30, 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 June 30, 2013.
|
(c)
|
Excluded student loans insured by U.S. government agencies under the FFELP of $630 million and $812 million at June 30, 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 $316 million and $488 million at June 30, 2014 and 2013, respectively, that are 90 or more days past due. These amounts have been excluded from nonac
crual loans based upon the government guarantee.
|
CORPORATE & INVESTMENT BANK
|
Selected income statement data
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment banking fees
|
$
|
1,773
|
|
|
$
|
1,717
|
|
|
3
|
%
|
|
$
|
3,217
|
|
|
$
|
3,150
|
|
|
2
|
%
|
Principal transactions
(a)
|
2,782
|
|
|
3,288
|
|
|
(15
|
)
|
|
5,668
|
|
|
7,249
|
|
|
(22
|
)
|
||||
Lending- and deposit-related fees
|
449
|
|
|
486
|
|
|
(8
|
)
|
|
893
|
|
|
959
|
|
|
(7
|
)
|
||||
Asset management, administration and commissions
|
1,186
|
|
|
1,289
|
|
|
(8
|
)
|
|
2,365
|
|
|
2,456
|
|
|
(4
|
)
|
||||
All other income
|
341
|
|
|
391
|
|
|
(13
|
)
|
|
624
|
|
|
714
|
|
|
(13
|
)
|
||||
Noninterest revenue
|
6,531
|
|
|
7,171
|
|
|
(9
|
)
|
|
12,767
|
|
|
14,528
|
|
|
(12
|
)
|
||||
Net interest income
|
2,460
|
|
|
2,705
|
|
|
(9
|
)
|
|
4,830
|
|
|
5,488
|
|
|
(12
|
)
|
||||
Total net revenue
(b)
|
8,991
|
|
|
9,876
|
|
|
(9
|
)
|
|
17,597
|
|
|
20,016
|
|
|
(12
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for credit losses
|
(84
|
)
|
|
(6
|
)
|
|
NM
|
|
(35
|
)
|
|
5
|
|
|
NM
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation expense
|
2,757
|
|
|
2,988
|
|
|
(8
|
)
|
|
5,627
|
|
|
6,364
|
|
|
(12
|
)
|
||||
Noncompensation expense
|
3,301
|
|
|
2,754
|
|
|
20
|
|
|
6,035
|
|
|
5,489
|
|
|
10
|
|
||||
Total noninterest expense
|
6,058
|
|
|
5,742
|
|
|
6
|
|
|
11,662
|
|
|
11,853
|
|
|
(2
|
)
|
||||
Income before income tax expense
|
3,017
|
|
|
4,140
|
|
|
(27
|
)
|
|
5,970
|
|
|
8,158
|
|
|
(27
|
)
|
||||
Income tax expense
|
1,054
|
|
|
1,302
|
|
|
(19
|
)
|
|
2,028
|
|
|
2,710
|
|
|
(25
|
)
|
||||
Net income
|
$
|
1,963
|
|
|
$
|
2,838
|
|
|
(31
|
)%
|
|
$
|
3,942
|
|
|
$
|
5,448
|
|
|
(28
|
)%
|
Financial ratios
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on common equity
(c)
|
13
|
%
|
|
20
|
%
|
|
|
|
13
|
%
|
|
19
|
%
|
|
|
||||||
Overhead ratio
(d)
|
67
|
|
|
58
|
|
|
|
|
66
|
|
|
59
|
|
|
|
||||||
Compensation expense as a percentage of total net revenue
(e)
|
31
|
|
|
30
|
|
|
|
|
32
|
|
|
32
|
|
|
|
(a)
|
Included FVA (effective fourth quarter 2013) and DVA on OTC derivatives and structured notes, measured at fair value. Net FVA and DVA gains were $173 million for the three months ended
June 30, 2014
, and $143 million for the six months ended June 30, 2014. DVA gains were
$355 million
for the three months ended
June 30, 2013
, and $481 million for the six months ended June 30, 2013. Results are presented net of associated hedging activities.
|
(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 $606 million and $550 million for the three months ended
June 30, 2014
and 2013, respectively, and $1.2 billion and $1.1 billion for the six months ended June 30, 2014 and 2013, respectively.
|
(c)
|
Return on equity excluding DVA, a non-GAAP financial measure, was 19% and 18% for the three and six months ended June 30, 2013, respectively.
|
(d)
|
Overhead ratio excluding DVA, a non-GAAP financial measure, was 60% and 61% for the three and six months ended June 30, 2013.
|
(e)
|
Compensation expense as a percentage of total net revenue excluding DVA, a non-GAAP financial measure, was 31% and 33% for the three and six months ended June 30, 2013.
|
Selected income statement data
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in millions)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Revenue by business
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Advisory
|
$
|
397
|
|
|
$
|
304
|
|
|
31
|
%
|
|
$
|
780
|
|
|
$
|
559
|
|
|
40
|
%
|
Equity underwriting
|
477
|
|
|
457
|
|
|
4
|
|
|
830
|
|
|
730
|
|
|
14
|
|
||||
Debt underwriting
|
899
|
|
|
956
|
|
|
(6
|
)
|
|
1,607
|
|
|
1,861
|
|
|
(14
|
)
|
||||
Total investment banking fees
|
1,773
|
|
|
1,717
|
|
|
3
|
|
|
3,217
|
|
|
3,150
|
|
|
2
|
|
||||
Treasury Services
|
1,012
|
|
|
1,051
|
|
|
(4
|
)
|
|
2,021
|
|
|
2,095
|
|
|
(4
|
)
|
||||
Lending
|
297
|
|
|
373
|
|
|
(20
|
)
|
|
581
|
|
|
871
|
|
|
(33
|
)
|
||||
Total Banking
|
3,082
|
|
|
3,141
|
|
|
(2
|
)
|
|
5,819
|
|
|
6,116
|
|
|
(5
|
)
|
||||
Fixed Income Markets
|
3,482
|
|
|
4,078
|
|
|
(15
|
)
|
|
7,242
|
|
|
8,830
|
|
|
(18
|
)
|
||||
Equity Markets
|
1,165
|
|
|
1,296
|
|
|
(10
|
)
|
|
2,460
|
|
|
2,636
|
|
|
(7
|
)
|
||||
Securities Services
|
1,137
|
|
|
1,087
|
|
|
5
|
|
|
2,148
|
|
|
2,061
|
|
|
4
|
|
||||
Credit Adjustments & Other
(a)
|
125
|
|
|
274
|
|
|
(54
|
)
|
|
(72
|
)
|
|
373
|
|
|
NM
|
|||||
Total Markets & Investor Services
|
5,909
|
|
|
6,735
|
|
|
(12
|
)
|
|
11,778
|
|
|
13,900
|
|
|
(15
|
)
|
||||
Total net revenue
|
$
|
8,991
|
|
|
$
|
9,876
|
|
|
(9
|
)%
|
|
$
|
17,597
|
|
|
$
|
20,016
|
|
|
(12
|
)%
|
(a)
|
Consists primarily of credit valuation adjustments (“CVA”) managed by the credit portfolio group, and FVA (effective fourth quarter 2013) and DVA on OTC derivatives and structured notes. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.
|
Selected metrics
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
As of or for the three months
ended June 30, |
|
As of or for the six months
ended June 30, |
||||||||||||||||||
(in millions, except headcount)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
$
|
873,288
|
|
|
$
|
873,527
|
|
|
—
|
|
|
$
|
873,288
|
|
|
$
|
873,527
|
|
|
—
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans retained
(a)
|
99,733
|
|
|
106,248
|
|
|
(6
|
)
|
|
99,733
|
|
|
106,248
|
|
|
(6
|
)
|
||||
Loans held-for-sale and loans at fair value
|
9,048
|
|
|
4,564
|
|
|
98
|
|
|
9,048
|
|
|
4,564
|
|
|
98
|
|
||||
Total loans
|
108,781
|
|
|
110,812
|
|
|
(2
|
)
|
|
108,781
|
|
|
110,812
|
|
|
(2
|
)
|
||||
Equity
|
61,000
|
|
|
56,500
|
|
|
8
|
|
|
61,000
|
|
|
56,500
|
|
|
8
|
|
||||
Selected balance sheet data (average)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
$
|
846,142
|
|
|
$
|
878,801
|
|
|
(4
|
)
|
|
$
|
848,791
|
|
|
$
|
874,657
|
|
|
(3
|
)
|
Trading assets-debt and equity instruments
|
317,054
|
|
|
336,118
|
|
|
(6
|
)
|
|
311,627
|
|
|
339,203
|
|
|
(8
|
)
|
||||
Trading assets-derivative receivables
|
59,560
|
|
|
72,036
|
|
|
(17
|
)
|
|
61,811
|
|
|
71,576
|
|
|
(14
|
)
|
||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans retained
(a)
|
96,750
|
|
|
107,654
|
|
|
(10
|
)
|
|
96,277
|
|
|
107,226
|
|
|
(10
|
)
|
||||
Loans held-for-sale and loans at fair value
|
8,891
|
|
|
5,950
|
|
|
49
|
|
|
8,491
|
|
|
5,604
|
|
|
52
|
|
||||
Total loans
|
105,641
|
|
|
113,604
|
|
|
(7
|
)
|
|
104,768
|
|
|
112,830
|
|
|
(7
|
)
|
||||
Equity
|
61,000
|
|
|
56,500
|
|
|
8
|
|
|
61,000
|
|
|
56,500
|
|
|
8
|
|
||||
Headcount
|
51,729
|
|
|
51,771
|
|
|
—
|
|
|
51,729
|
|
|
51,771
|
|
|
—
|
|
(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 June 30, |
|
As of or for the six months
ended June 30, |
||||||||||||||||||
(in millions, except ratios and where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Credit data and quality statistics
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs/(recoveries)
|
$
|
(4
|
)
|
|
$
|
(82
|
)
|
|
95
|
%
|
|
$
|
(5
|
)
|
|
$
|
(63
|
)
|
|
92
|
%
|
Nonperforming assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans retained
(a)(b)
|
111
|
|
|
227
|
|
|
(51
|
)
|
|
111
|
|
|
227
|
|
|
(51
|
)
|
||||
Nonaccrual loans
held-for-sale and loans at fair value
|
167
|
|
|
293
|
|
|
(43
|
)
|
|
167
|
|
|
293
|
|
|
(43
|
)
|
||||
Total nonaccrual loans
|
278
|
|
|
520
|
|
|
(47
|
)
|
|
278
|
|
|
520
|
|
|
(47
|
)
|
||||
Derivative receivables
|
361
|
|
|
448
|
|
|
(19
|
)
|
|
361
|
|
|
448
|
|
|
(19
|
)
|
||||
Assets acquired in loan satisfactions
|
106
|
|
|
46
|
|
|
130
|
|
|
106
|
|
|
46
|
|
|
130
|
|
||||
Total nonperforming assets
|
745
|
|
|
1,014
|
|
|
(27
|
)
|
|
745
|
|
|
1,014
|
|
|
(27
|
)
|
||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
1,112
|
|
|
1,287
|
|
|
(14
|
)
|
|
1,112
|
|
|
1,287
|
|
|
(14
|
)
|
||||
Allowance for lending-related commitments
|
479
|
|
|
556
|
|
|
(14
|
)
|
|
479
|
|
|
556
|
|
|
(14
|
)
|
||||
Total allowance for credit losses
|
1,591
|
|
|
1,843
|
|
|
(14
|
)
|
|
1,591
|
|
|
1,843
|
|
|
(14
|
)
|
||||
Net charge-off/(recovery) rate
(a)
|
(0.02
|
)%
|
|
(0.31
|
)%
|
|
|
|
(0.01
|
)%
|
|
(0.12
|
)%
|
|
|
||||||
Allowance for loan losses to period-end loans retained
(a)
|
1.11
|
|
|
1.21
|
|
|
|
|
1.11
|
|
|
1.21
|
|
|
|
||||||
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits
(c)
|
1.80
|
|
|
2.35
|
|
|
|
|
1.80
|
|
|
2.35
|
|
|
|
||||||
Allowance for loan losses to nonaccrual loans retained
(a)(b)
|
1,002
|
|
|
567
|
|
|
|
|
1,002
|
|
|
567
|
|
|
|
||||||
Nonaccrual loans to total period-end loans
|
0.26
|
|
|
0.47
|
|
|
|
|
0.26
|
|
|
0.47
|
|
|
|
||||||
Business metrics
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets under custody (“AUC”) by asset class (period-end)
(in billions):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed Income
|
$
|
12,579
|
|
|
$
|
11,421
|
|
|
10
|
|
|
$
|
12,579
|
|
|
$
|
11,421
|
|
|
10
|
|
Equity
|
7,275
|
|
|
5,961
|
|
|
22
|
|
|
7,275
|
|
|
5,961
|
|
|
22
|
|
||||
Other
(d)
|
1,805
|
|
|
1,547
|
|
|
17
|
|
|
1,805
|
|
|
1,547
|
|
|
17
|
|
||||
Total AUC
|
$
|
21,659
|
|
|
$
|
18,929
|
|
|
14
|
|
|
$
|
21,659
|
|
|
$
|
18,929
|
|
|
14
|
|
Client deposits and other third party liabilities (average)
|
$
|
403,268
|
|
|
$
|
369,108
|
|
|
9
|
|
|
$
|
407,884
|
|
|
$
|
363,218
|
|
|
12
|
|
Trade finance loans (period-end)
|
28,291
|
|
|
36,375
|
|
|
(22
|
)%
|
|
28,291
|
|
|
36,375
|
|
|
(22
|
)%
|
(a)
|
Loans retained includes credit portfolio loans, trade finance loans, other held-for-investment loans and overdrafts.
|
(b)
|
Allowance for loan losses of $22 million and $70 million were held against these nonaccrual loans at
June 30, 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.
|
League table results – wallet
(a)
|
|
|
|
|
|
||||||
|
Six months ended
June 30, 2014 |
|
Full-year 2013
|
||||||||
|
Share
|
Rank
|
|
Share
|
Rank
|
||||||
Debt, equity and equity-related
|
|
|
|
|
|
|
|
|
|||
Global
|
7.4
|
%
|
|
#1
|
|
|
8.3
|
%
|
|
#1
|
|
U.S.
|
10.6
|
|
|
1
|
|
|
11.4
|
|
|
1
|
|
Long-term debt
(b)
|
|
|
|
|
|
|
|
|
|||
Global
|
8.0
|
|
|
1
|
|
|
8.2
|
|
|
1
|
|
U.S.
|
11.7
|
|
|
1
|
|
|
11.6
|
|
|
1
|
|
Equity and equity-related
|
|
|
|
|
|
|
|
|
|||
Global
(c)
|
6.9
|
|
|
3
|
|
|
8.4
|
|
|
2
|
|
U.S.
|
9.3
|
|
|
4
|
|
|
11.4
|
|
|
1
|
|
M&A
(d)
|
|
|
|
|
|
|
|
|
|||
Global
|
8.8
|
|
|
2
|
|
|
7.7
|
|
|
2
|
|
U.S.
|
10.8
|
|
|
2
|
|
|
8.8
|
|
|
2
|
|
Loan syndications
|
|
|
|
|
|
|
|
|
|||
Global
|
9.6
|
|
|
1
|
|
|
9.9
|
|
|
1
|
|
U.S.
|
12.9
|
|
|
1
|
|
|
13.9
|
|
|
1
|
|
Global investment banking fees
(e)
|
8.2
|
|
|
1
|
|
|
8.5
|
|
|
1
|
|
League table results – volumes
(f)
|
|
|
|
|
|
||||||
|
Six months ended
June 30, 2014 |
|
Full-year 2013
|
||||||||
|
Share
|
Rank
|
|
Share
|
Rank
|
||||||
Debt, equity and equity-related
|
|
|
|
|
|
|
|
|
|||
Global
|
6.8
|
%
|
|
#1
|
|
|
7.3
|
%
|
|
#1
|
|
U.S.
|
11.8
|
|
|
1
|
|
|
11.9
|
|
|
1
|
|
Long-term debt
(b)
|
|
|
|
|
|
|
|
|
|||
Global
|
6.7
|
|
|
1
|
|
|
7.2
|
|
|
1
|
|
U.S.
|
11.3
|
|
|
1
|
|
|
11.7
|
|
|
1
|
|
Equity and
equity-related
|
|
|
|
|
|
|
|
|
|||
Global
(c)
|
7.3
|
|
|
2
|
|
|
8.2
|
|
|
2
|
|
U.S.
|
10.4
|
|
|
4
|
|
|
12.1
|
|
|
2
|
|
M&A announced
(d)
|
|
|
|
|
|
|
|
|
|||
Global
|
21.5
|
|
|
4
|
|
|
23.1
|
|
|
2
|
|
U.S.
|
29.6
|
|
|
4
|
|
|
35.3
|
|
|
2
|
|
Loan syndications
|
|
|
|
|
|
|
|
|
|||
Global
|
10.4
|
|
|
1
|
|
|
9.9
|
|
|
1
|
|
U.S.
|
18.6
|
|
|
1
|
|
|
17.6
|
|
|
1
|
|
(a)
|
Source: Dealogic. Reflects the ranking of fees and revenue wallet share.
|
(b)
|
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.
|
(c)
|
Global equity and equity-related rankings include rights offerings and Chinese A-Shares.
|
(d)
|
M&A and Announced M&A rankings reflect the removal of any withdrawn transactions. U.S. M&A wallet represents wallet from client parents based in the U.S. U.S. announced M&A volumes represents any U.S. involvement ranking.
|
(e)
|
Global investment banking fees rankings exclude money market, short-term debt and shelf deals.
|
(f)
|
Source: Dealogic. 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.
|
International metrics
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
As of or for the three months
ended June 30, |
|
As of or for the six months
ended June 30, |
||||||||||||||||||
(in millions, except where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Total net revenue
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Europe/Middle East/Africa
|
$
|
3,335
|
|
|
$
|
2,955
|
|
|
13
|
%
|
|
$
|
6,354
|
|
|
$
|
6,338
|
|
|
—
|
|
Asia/Pacific
|
1,105
|
|
|
1,403
|
|
|
(21
|
)
|
|
2,131
|
|
|
2,568
|
|
|
(17
|
)
|
||||
Latin America/Caribbean
|
284
|
|
|
397
|
|
|
(28
|
)
|
|
554
|
|
|
797
|
|
|
(30
|
)
|
||||
Total international net revenue
|
4,724
|
|
|
4,755
|
|
|
(1
|
)
|
|
9,039
|
|
|
9,703
|
|
|
(7
|
)
|
||||
North America
|
4,267
|
|
|
5,121
|
|
|
(17
|
)
|
|
8,558
|
|
|
10,313
|
|
|
(17
|
)
|
||||
Total net revenue
|
$
|
8,991
|
|
|
$
|
9,876
|
|
|
(9
|
)
|
|
$
|
17,597
|
|
|
$
|
20,016
|
|
|
(12
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans (period-end)
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Europe/Middle East/Africa
|
$
|
29,831
|
|
|
$
|
32,685
|
|
|
(9
|
)
|
|
$
|
29,831
|
|
|
$
|
32,685
|
|
|
(9
|
)
|
Asia/Pacific
|
25,004
|
|
|
26,616
|
|
|
(6
|
)
|
|
25,004
|
|
|
26,616
|
|
|
(6
|
)
|
||||
Latin America/Caribbean
|
8,811
|
|
|
10,434
|
|
|
(16
|
)
|
|
8,811
|
|
|
10,434
|
|
|
(16
|
)
|
||||
Total international loans
|
63,646
|
|
|
69,735
|
|
|
(9
|
)
|
|
63,646
|
|
|
69,735
|
|
|
(9
|
)
|
||||
North America
|
36,087
|
|
|
36,513
|
|
|
(1
|
)
|
|
36,087
|
|
|
36,513
|
|
|
(1
|
)
|
||||
Total loans
|
$
|
99,733
|
|
|
$
|
106,248
|
|
|
(6
|
)
|
|
$
|
99,733
|
|
|
$
|
106,248
|
|
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Client deposits and other third-party liabilities (average)
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Europe/Middle East/Africa
|
$
|
147,859
|
|
|
$
|
139,801
|
|
|
6
|
|
|
$
|
147,205
|
|
|
$
|
137,085
|
|
|
7
|
|
Asia/Pacific
|
65,387
|
|
|
51,666
|
|
|
27
|
|
|
63,165
|
|
|
51,830
|
|
|
22
|
|
||||
Latin America/Caribbean
|
23,619
|
|
|
15,012
|
|
|
57
|
|
|
22,834
|
|
|
13,604
|
|
|
68
|
|
||||
Total international
|
$
|
236,865
|
|
|
$
|
206,479
|
|
|
15
|
|
|
$
|
233,204
|
|
|
$
|
202,519
|
|
|
15
|
|
North America
|
166,403
|
|
|
162,629
|
|
|
2
|
|
|
174,680
|
|
|
160,699
|
|
|
9
|
|
||||
Total client deposits and other third-party liabilities
|
$
|
403,268
|
|
|
$
|
369,108
|
|
|
9
|
|
|
$
|
407,884
|
|
|
$
|
363,218
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
AUC (period-end) (in billions)
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
$
|
11,764
|
|
|
$
|
10,672
|
|
|
10
|
|
|
$
|
11,764
|
|
|
$
|
10,672
|
|
|
10
|
|
All other regions
|
9,895
|
|
|
8,257
|
|
|
20
|
|
|
9,895
|
|
|
8,257
|
|
|
20
|
|
||||
Total AUC
|
$
|
21,659
|
|
|
$
|
18,929
|
|
|
14
|
%
|
|
$
|
21,659
|
|
|
$
|
18,929
|
|
|
14
|
%
|
(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 June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Lending- and deposit-related fees
|
$
|
252
|
|
|
$
|
265
|
|
|
(5
|
)%
|
|
$
|
498
|
|
|
$
|
524
|
|
|
(5
|
)%
|
Asset management, administration and commissions
|
26
|
|
|
30
|
|
|
(13
|
)
|
|
49
|
|
|
62
|
|
|
(21
|
)
|
||||
All other income
(a)
|
299
|
|
|
256
|
|
|
17
|
|
|
588
|
|
|
500
|
|
|
18
|
|
||||
Noninterest revenue
|
577
|
|
|
551
|
|
|
5
|
|
|
1,135
|
|
|
1,086
|
|
|
5
|
|
||||
Net interest income
|
1,124
|
|
|
1,177
|
|
|
(5
|
)
|
|
2,217
|
|
|
2,315
|
|
|
(4
|
)
|
||||
Total net revenue
(b)
|
1,701
|
|
|
1,728
|
|
|
(2
|
)
|
|
3,352
|
|
|
3,401
|
|
|
(1
|
)
|
||||
Provision for credit losses
|
(67
|
)
|
|
44
|
|
|
NM
|
|
(62
|
)
|
|
83
|
|
|
NM
|
||||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation expense
|
292
|
|
|
286
|
|
|
2
|
|
|
599
|
|
|
575
|
|
|
4
|
|
||||
Noncompensation expense
|
378
|
|
|
361
|
|
|
5
|
|
|
752
|
|
|
709
|
|
|
6
|
|
||||
Amortization of intangibles
|
5
|
|
|
5
|
|
|
—
|
|
|
10
|
|
|
12
|
|
|
(17
|
)
|
||||
Total noninterest expense
|
675
|
|
|
652
|
|
|
4
|
|
|
1,361
|
|
|
1,296
|
|
|
5
|
|
||||
Income before income tax expense
|
1,093
|
|
|
1,032
|
|
|
6
|
|
|
2,053
|
|
|
2,022
|
|
|
2
|
|
||||
Income tax expense
|
435
|
|
|
411
|
|
|
6
|
|
|
817
|
|
|
805
|
|
|
1
|
|
||||
Net income
|
$
|
658
|
|
|
$
|
621
|
|
|
6
|
|
|
$
|
1,236
|
|
|
$
|
1,217
|
|
|
2
|
|
Revenue by product
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Lending
|
$
|
877
|
|
|
$
|
971
|
|
|
(10
|
)
|
|
$
|
1,740
|
|
|
$
|
1,895
|
|
|
(8
|
)
|
Treasury services
|
627
|
|
|
607
|
|
|
3
|
|
|
1,237
|
|
|
1,212
|
|
|
2
|
|
||||
Investment banking
|
166
|
|
|
132
|
|
|
26
|
|
|
312
|
|
|
250
|
|
|
25
|
|
||||
Other
|
31
|
|
|
18
|
|
|
72
|
|
|
63
|
|
|
44
|
|
|
43
|
|
||||
Total Commercial Banking net revenue
|
$
|
1,701
|
|
|
$
|
1,728
|
|
|
(2
|
)
|
|
$
|
3,352
|
|
|
$
|
3,401
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment banking revenue, gross
(c)
|
$
|
481
|
|
|
$
|
385
|
|
|
25
|
|
|
$
|
928
|
|
|
$
|
726
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue by client segment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Middle Market Banking
|
$
|
709
|
|
|
$
|
777
|
|
|
(9
|
)
|
|
$
|
1,407
|
|
|
$
|
1,530
|
|
|
(8
|
)
|
Corporate Client Banking
|
477
|
|
|
444
|
|
|
7
|
|
|
923
|
|
|
877
|
|
|
5
|
|
||||
Commercial Term Lending
|
307
|
|
|
315
|
|
|
(3
|
)
|
|
615
|
|
|
606
|
|
|
1
|
|
||||
Real Estate Banking
|
129
|
|
|
113
|
|
|
14
|
|
|
245
|
|
|
225
|
|
|
9
|
|
||||
Other
|
79
|
|
|
79
|
|
|
—
|
|
|
162
|
|
|
163
|
|
|
(1
|
)
|
||||
Total Commercial Banking net revenue
|
$
|
1,701
|
|
|
$
|
1,728
|
|
|
(2
|
)%
|
|
$
|
3,352
|
|
|
$
|
3,401
|
|
|
(1
|
)%
|
Financial ratios
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on common equity
|
19%
|
|
|
18
|
%
|
|
|
|
18
|
%
|
|
18
|
%
|
|
|
||||||
Overhead ratio
|
40
|
|
|
38
|
|
|
|
|
41
|
|
|
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
$105 million
and
$90 million
for the
three months ended
June 30, 2014
and
2013
, respectively, and
$209 million
and
$183 million
for the
six months ended
June 30, 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 June 30, |
|
As of or for the six months
ended June 30, |
||||||||||||||||||
(in millions, except headcount)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
192,523
|
|
|
$
|
184,124
|
|
|
5
|
%
|
|
$
|
192,523
|
|
|
$
|
184,124
|
|
|
5
|
%
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans retained
|
141,181
|
|
|
130,487
|
|
|
8
|
|
|
141,181
|
|
|
130,487
|
|
|
8
|
|
||||
Loans held-for-sale and loans at fair value
|
1,094
|
|
|
430
|
|
|
154
|
|
|
1,094
|
|
|
430
|
|
|
154
|
|
||||
Total loans
|
$
|
142,275
|
|
|
$
|
130,917
|
|
|
9
|
|
|
$
|
142,275
|
|
|
$
|
130,917
|
|
|
9
|
|
Equity
|
14,000
|
|
|
13,500
|
|
|
4
|
|
|
14,000
|
|
|
13,500
|
|
|
4
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Period-end loans by client segment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Middle Market Banking
|
$
|
53,247
|
|
|
$
|
52,053
|
|
|
2
|
|
|
$
|
53,247
|
|
|
$
|
52,053
|
|
|
2
|
|
Corporate Client Banking
|
21,585
|
|
|
19,933
|
|
|
8
|
|
|
21,585
|
|
|
19,933
|
|
|
8
|
|
||||
Commercial Term Lending
|
50,986
|
|
|
45,865
|
|
|
11
|
|
|
50,986
|
|
|
45,865
|
|
|
11
|
|
||||
Real Estate Banking
|
11,903
|
|
|
9,395
|
|
|
27
|
|
|
11,903
|
|
|
9,395
|
|
|
27
|
|
||||
Other
|
4,554
|
|
|
3,671
|
|
|
24
|
|
|
4,554
|
|
|
3,671
|
|
|
24
|
|
||||
Total Commercial Banking loans
|
$
|
142,275
|
|
|
$
|
130,917
|
|
|
9
|
|
|
$
|
142,275
|
|
|
$
|
130,917
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selected balance sheet data (average)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
192,363
|
|
|
$
|
184,951
|
|
|
4
|
|
|
$
|
192,554
|
|
|
$
|
183,792
|
|
|
5
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans retained
|
139,848
|
|
|
130,338
|
|
|
7
|
|
|
138,259
|
|
|
129,419
|
|
|
7
|
|
||||
Loans held-for-sale and loans at fair value
|
982
|
|
|
1,251
|
|
|
(22
|
)
|
|
1,010
|
|
|
1,027
|
|
|
(2
|
)
|
||||
Total loans
|
$
|
140,830
|
|
|
$
|
131,589
|
|
|
7
|
|
|
$
|
139,269
|
|
|
$
|
130,446
|
|
|
7
|
|
Client deposits and other third-party liabilities
|
199,979
|
|
|
195,232
|
|
|
2
|
|
|
201,453
|
|
|
195,598
|
|
|
3
|
|
||||
Equity
|
14,000
|
|
|
13,500
|
|
|
4
|
|
|
14,000
|
|
|
13,500
|
|
|
4
|
|
||||
Average loans by client segment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Middle Market Banking
|
$
|
52,763
|
|
|
$
|
52,205
|
|
|
1
|
|
|
$
|
52,255
|
|
|
$
|
52,110
|
|
|
—
|
|
Corporate Client Banking
|
21,435
|
|
|
21,344
|
|
|
—
|
|
|
21,138
|
|
|
21,203
|
|
|
—
|
|
||||
Commercial Term Lending
|
50,451
|
|
|
45,087
|
|
|
12
|
|
|
49,926
|
|
|
44,469
|
|
|
12
|
|
||||
Real Estate Banking
|
11,724
|
|
|
9,277
|
|
|
26
|
|
|
11,567
|
|
|
8,979
|
|
|
29
|
|
||||
Other
|
4,457
|
|
|
3,676
|
|
|
21
|
|
|
4,383
|
|
|
3,685
|
|
|
19
|
|
||||
Total Commercial Banking loans
|
$
|
140,830
|
|
|
$
|
131,589
|
|
|
7
|
|
|
$
|
139,269
|
|
|
$
|
130,446
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Headcount
|
7,155
|
|
|
6,660
|
|
|
7
|
%
|
|
7,155
|
|
|
6,660
|
|
|
7
|
%
|
Selected metrics
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of or for the three months
ended June 30, |
|
As of or for the six months
ended June 30, |
||||||||||||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Credit data and quality statistics
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs/(recoveries)
|
$
|
(26
|
)
|
|
$
|
9
|
|
|
NM
|
|
$
|
(40
|
)
|
|
$
|
2
|
|
|
NM
|
||
Nonperforming assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans retained
(a)
|
429
|
|
|
505
|
|
|
(15
|
)%
|
|
429
|
|
|
505
|
|
|
(15
|
)
|
||||
Nonaccrual loans held-for-sale and loans at fair value
|
17
|
|
|
8
|
|
|
113
|
|
|
17
|
|
|
8
|
|
|
113
|
|
||||
Total nonaccrual loans
|
446
|
|
|
513
|
|
|
(13
|
)
|
|
446
|
|
|
513
|
|
|
(13
|
)
|
||||
Assets acquired in loan satisfactions
|
12
|
|
|
30
|
|
|
(60
|
)
|
|
12
|
|
|
30
|
|
|
(60
|
)
|
||||
Total nonperforming assets
|
458
|
|
|
543
|
|
|
(16
|
)
|
|
458
|
|
|
543
|
|
|
(16
|
)
|
||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
2,637
|
|
|
2,691
|
|
|
(2
|
)
|
|
2,637
|
|
|
2,691
|
|
|
(2
|
)
|
||||
Allowance for lending-related commitments
|
155
|
|
|
183
|
|
|
(15
|
)
|
|
155
|
|
|
183
|
|
|
(15
|
)
|
||||
Total allowance for credit losses
|
2,792
|
|
|
2,874
|
|
|
(3
|
)%
|
|
2,792
|
|
|
2,874
|
|
|
(3
|
)%
|
||||
Net charge-off/(recovery) rate
(b)
|
(0.07
|
)%
|
|
0.03
|
%
|
|
|
|
(0.06
|
)%
|
|
—
|
|
|
|
||||||
Allowance for loan losses to period-end loans
retained
|
1.87
|
|
|
2.06
|
|
|
|
|
1.87
|
|
|
2.06
|
|
|
|
||||||
Allowance for loan losses to nonaccrual loans retained
(a)
|
615
|
|
|
533
|
|
|
|
|
615
|
|
|
533
|
|
|
|
||||||
Nonaccrual loans to total period-end loans
|
0.31
|
|
|
0.39
|
|
|
|
|
0.31
|
|
|
0.39
|
|
|
|
(a)
|
Allowance for loan losses of
$75 million
and
$79 million
was held against nonaccrual loans retained at
June 30, 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 June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in millions, except ratios)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset management, administration and commissions
|
$
|
2,242
|
|
|
$
|
2,018
|
|
|
11
|
%
|
|
$
|
4,342
|
|
|
$
|
3,901
|
|
|
11
|
%
|
All other income
|
138
|
|
|
138
|
|
|
—
|
|
|
256
|
|
|
349
|
|
|
(27
|
)
|
||||
Noninterest revenue
|
2,380
|
|
|
2,156
|
|
|
10
|
|
|
4,598
|
|
|
4,250
|
|
|
8
|
|
||||
Net interest income
|
576
|
|
|
569
|
|
|
1
|
|
|
1,136
|
|
|
1,128
|
|
|
1
|
|
||||
Total net revenue
|
2,956
|
|
|
2,725
|
|
|
8
|
|
|
5,734
|
|
|
5,378
|
|
|
7
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for credit losses
|
1
|
|
|
23
|
|
|
(96
|
)
|
|
(8
|
)
|
|
44
|
|
|
NM
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation expense
|
1,231
|
|
|
1,155
|
|
|
7
|
|
|
2,487
|
|
|
2,325
|
|
|
7
|
|
||||
Noncompensation expense
|
811
|
|
|
716
|
|
|
13
|
|
|
1,610
|
|
|
1,400
|
|
|
15
|
|
||||
Amortization of intangibles
|
20
|
|
|
21
|
|
|
(5
|
)
|
|
40
|
|
|
43
|
|
|
(7
|
)
|
||||
Total noninterest expense
|
2,062
|
|
|
1,892
|
|
|
9
|
|
|
4,137
|
|
|
3,768
|
|
|
10
|
|
||||
Income before income tax expense
|
893
|
|
|
810
|
|
|
10
|
|
|
1,605
|
|
|
1,566
|
|
|
2
|
|
||||
Income tax expense
|
341
|
|
|
310
|
|
|
10
|
|
|
612
|
|
|
579
|
|
|
6
|
|
||||
Net income
|
$
|
552
|
|
|
$
|
500
|
|
|
10
|
|
|
$
|
993
|
|
|
$
|
987
|
|
|
1
|
|
Revenue by client segment
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Private Banking
|
$
|
1,556
|
|
|
$
|
1,479
|
|
|
5
|
|
|
$
|
3,065
|
|
|
$
|
2,925
|
|
|
5
|
|
Institutional
|
571
|
|
|
568
|
|
|
1
|
|
|
1,071
|
|
|
1,135
|
|
|
(6
|
)
|
||||
Retail
|
829
|
|
|
678
|
|
|
22
|
|
|
1,598
|
|
|
1,318
|
|
|
21
|
|
||||
Total net revenue
|
$
|
2,956
|
|
|
$
|
2,725
|
|
|
8
|
%
|
|
$
|
5,734
|
|
|
$
|
5,378
|
|
|
7
|
%
|
Financial ratios
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on common equity
|
25
|
%
|
|
22
|
%
|
|
|
|
22
|
%
|
|
22
|
%
|
|
|
||||||
Overhead ratio
|
70
|
|
|
69
|
|
|
|
|
72
|
|
|
70
|
|
|
|
||||||
Pretax margin ratio
|
30
|
|
|
30
|
|
|
|
|
28
|
|
|
29
|
|
|
|
(a)
|
Effective January 1, 2014, prior period amounts were reclassified to conform with current period presentation.
|
Selected metrics
|
As of or for the three months
ended June 30, |
|
As of or for the six months
ended June 30, |
||||||||||||||||||
(in millions, except headcount, ranking data and where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Number of:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Client advisors
|
2,828
|
|
|
2,804
|
|
|
1
|
%
|
|
2,828
|
|
|
2,804
|
|
|
1
|
%
|
||||
% of customer assets in 4 & 5 Star Funds
(a)
|
51
|
%
|
|
52
|
%
|
|
|
|
51
|
%
|
|
52
|
%
|
|
|
||||||
% of AUM in 1
st
and 2
nd
quartiles:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
1 year
|
48
|
|
|
73
|
|
|
|
|
48
|
|
|
73
|
|
|
|
||||||
3 years
|
67
|
|
|
77
|
|
|
|
|
67
|
|
|
77
|
|
|
|
||||||
5 years
|
69
|
|
|
76
|
|
|
|
|
69
|
|
|
76
|
|
|
|
||||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
128,362
|
|
|
$
|
115,157
|
|
|
11
|
|
|
$
|
128,362
|
|
|
$
|
115,157
|
|
|
11
|
|
Loans
(c)
|
100,907
|
|
|
86,043
|
|
|
17
|
|
|
100,907
|
|
|
86,043
|
|
|
17
|
|
||||
Deposits
|
145,655
|
|
|
137,289
|
|
|
6
|
|
|
145,655
|
|
|
137,289
|
|
|
6
|
|
||||
Equity
|
9,000
|
|
|
9,000
|
|
|
—
|
|
|
9,000
|
|
|
9,000
|
|
|
—
|
|
||||
Selected balance sheet data (average)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
125,492
|
|
|
$
|
111,431
|
|
|
13
|
|
|
$
|
124,088
|
|
|
$
|
109,681
|
|
|
13
|
|
Loans
|
98,695
|
|
|
83,621
|
|
|
18
|
|
|
97,186
|
|
|
81,821
|
|
|
19
|
|
||||
Deposits
|
147,747
|
|
|
136,577
|
|
|
8
|
|
|
148,585
|
|
|
138,001
|
|
|
8
|
|
||||
Equity
|
9,000
|
|
|
9,000
|
|
|
—
|
|
|
9,000
|
|
|
9,000
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Headcount
|
20,322
|
|
|
19,026
|
|
|
7
|
%
|
|
20,322
|
|
|
19,026
|
|
|
7
|
%
|
(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
$20.4 billion
and
$14.8 billion
of prime mortgage loans reported in the Consumer, excluding credit card, loan portfolio at
June 30, 2014
and
2013
, respectively. For the same periods, excluded
$3.2 billion
and
$4.8 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 June 30, |
|
As of or for the six months
ended June 30, |
||||||||||||||||||
(in millions, except ratios and where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Credit data and quality statistics
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs
|
$
|
(13
|
)
|
|
$
|
4
|
|
|
NM
|
|
$
|
(8
|
)
|
|
$
|
27
|
|
|
NM
|
||
Nonaccrual loans
|
182
|
|
|
244
|
|
|
(25
|
)%
|
|
182
|
|
|
244
|
|
|
(25
|
)%
|
||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
276
|
|
|
270
|
|
|
2
|
|
|
276
|
|
|
270
|
|
|
2
|
|
||||
Allowance for lending-related commitments
|
5
|
|
|
6
|
|
|
(17
|
)
|
|
5
|
|
|
6
|
|
|
(17
|
)
|
||||
Total allowance for credit losses
|
281
|
|
|
276
|
|
|
2
|
|
|
281
|
|
|
276
|
|
|
2
|
|
||||
Net charge-off rate
|
(0.05
|
)%
|
|
0.02
|
%
|
|
|
|
(0.02
|
)%
|
|
0.07
|
%
|
|
|
||||||
Allowance for loan losses to period-end loans
|
0.27
|
|
|
0.31
|
|
|
|
|
0.27
|
|
|
0.31
|
|
|
|
||||||
Allowance for loan losses to nonaccrual loans
|
152
|
|
|
111
|
|
|
|
|
152
|
|
|
111
|
|
|
|
||||||
Nonaccrual loans to period-end loans
|
0.18
|
|
|
0.28
|
|
|
|
|
0.18
|
|
|
0.28
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
AM firmwide disclosures
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total net revenue
|
$
|
3,606
|
|
|
$
|
3,226
|
|
|
12
|
|
|
$
|
6,993
|
|
|
$
|
6,338
|
|
|
10
|
|
Client assets (in billions)
(b)
|
2,680
|
|
|
2,323
|
|
|
15
|
|
|
2,680
|
|
|
2,323
|
|
|
15
|
|
||||
Number of client advisors
|
5,904
|
|
|
5,828
|
|
|
1
|
%
|
|
5,904
|
|
|
5,828
|
|
|
1
|
%
|
(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
|
June 30,
|
|||||||||
(in billions)
|
2014
|
|
2013
|
|
Change
|
|||||
Assets by asset class
|
|
|
|
|
|
|||||
Liquidity
|
$
|
435
|
|
|
$
|
431
|
|
|
1
|
%
|
Fixed income
|
367
|
|
|
325
|
|
|
13
|
|
||
Equity
|
390
|
|
|
316
|
|
|
23
|
|
||
Multi-asset and alternatives
|
515
|
|
|
398
|
|
|
29
|
|
||
Total assets under management
|
1,707
|
|
|
1,470
|
|
|
16
|
|
||
Custody/brokerage/administration/deposits
|
766
|
|
|
687
|
|
|
11
|
|
||
Total client assets
|
$
|
2,473
|
|
|
$
|
2,157
|
|
|
15
|
|
|
|
|
|
|
|
|||||
Memo:
|
|
|
|
|
|
|||||
Alternative client assets
(a)
|
$
|
163
|
|
|
$
|
147
|
|
|
11
|
|
|
|
|
|
|
|
|||||
Assets by client segment
|
|
|
|
|
|
|||||
Private Banking
|
$
|
383
|
|
|
$
|
340
|
|
|
13
|
|
Institutional
|
798
|
|
|
723
|
|
|
10
|
|
||
Retail
|
526
|
|
|
407
|
|
|
29
|
|
||
Total assets under management
|
$
|
1,707
|
|
|
$
|
1,470
|
|
|
16
|
|
Private Banking
|
$
|
1,012
|
|
|
$
|
910
|
|
|
11
|
|
Institutional
|
798
|
|
|
723
|
|
|
10
|
|
||
Retail
|
663
|
|
|
524
|
|
|
27
|
|
||
Total client assets
|
$
|
2,473
|
|
|
$
|
2,157
|
|
|
15
|
|
Mutual fund assets by asset class
|
|
|
|
|
|
|||||
Liquidity
|
$
|
377
|
|
|
$
|
379
|
|
|
(1
|
)
|
Fixed income
|
147
|
|
|
139
|
|
|
6
|
|
||
Equity
|
214
|
|
|
164
|
|
|
30
|
|
||
Multi-asset and alternatives
|
120
|
|
|
60
|
|
|
100
|
|
||
Total mutual fund assets
|
$
|
858
|
|
|
$
|
742
|
|
|
16
|
%
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in billions)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Assets under management rollforward
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
1,648
|
|
|
$
|
1,483
|
|
|
$
|
1,598
|
|
|
$
|
1,426
|
|
Net asset flows:
|
|
|
|
|
|
|
|
||||||||
Liquidity
|
(11
|
)
|
|
(22
|
)
|
|
(17
|
)
|
|
(24
|
)
|
||||
Fixed income
|
20
|
|
|
4
|
|
|
25
|
|
|
6
|
|
||||
Equity
|
—
|
|
|
7
|
|
|
3
|
|
|
22
|
|
||||
Multi-asset and alternatives
|
14
|
|
|
14
|
|
|
26
|
|
|
27
|
|
||||
Market/performance/other impacts
|
36
|
|
|
(16
|
)
|
|
72
|
|
|
13
|
|
||||
Ending balance, June 30
|
$
|
1,707
|
|
|
$
|
1,470
|
|
|
$
|
1,707
|
|
|
$
|
1,470
|
|
Client assets rollforward
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
2,394
|
|
|
$
|
2,171
|
|
|
$
|
2,343
|
|
|
$
|
2,095
|
|
Net asset flows
|
21
|
|
|
(4
|
)
|
|
36
|
|
|
16
|
|
||||
Market/performance/other impacts
|
58
|
|
|
(10
|
)
|
|
94
|
|
|
46
|
|
||||
Ending balance, June 30
|
$
|
2,473
|
|
|
$
|
2,157
|
|
|
$
|
2,473
|
|
|
$
|
2,157
|
|
International metrics
|
As of or for the three months
ended June 30, |
|
As of or for the six months
ended June 30, |
||||||||||||||||||
(in billions, except where otherwise noted)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Total net revenue
(in millions)
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Europe/Middle East/Africa
|
$
|
518
|
|
|
$
|
435
|
|
|
19
|
%
|
|
$
|
995
|
|
|
$
|
872
|
|
|
14
|
%
|
Asia/Pacific
|
289
|
|
|
291
|
|
|
(1
|
)
|
|
565
|
|
|
568
|
|
|
(1
|
)
|
||||
Latin America/Caribbean
|
214
|
|
|
230
|
|
|
(7
|
)
|
|
413
|
|
|
436
|
|
|
(5
|
)
|
||||
North America
|
1,935
|
|
|
1,769
|
|
|
9
|
|
|
3,761
|
|
|
3,502
|
|
|
7
|
|
||||
Total net revenue
|
$
|
2,956
|
|
|
$
|
2,725
|
|
|
8
|
|
|
$
|
5,734
|
|
|
$
|
5,378
|
|
|
7
|
|
Assets under management
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Europe/Middle East/Africa
|
$
|
327
|
|
|
$
|
261
|
|
|
25
|
|
|
$
|
327
|
|
|
$
|
261
|
|
|
25
|
|
Asia/Pacific
|
138
|
|
|
124
|
|
|
11
|
|
|
138
|
|
|
124
|
|
|
11
|
|
||||
Latin America/Caribbean
|
48
|
|
|
40
|
|
|
20
|
|
|
48
|
|
|
40
|
|
|
20
|
|
||||
North America
|
1,194
|
|
|
1,045
|
|
|
14
|
|
|
1,194
|
|
|
1,045
|
|
|
14
|
|
||||
Total assets under management
|
$
|
1,707
|
|
|
$
|
1,470
|
|
|
16
|
|
|
$
|
1,707
|
|
|
$
|
1,470
|
|
|
16
|
|
Client assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Europe/Middle East/Africa
|
$
|
393
|
|
|
$
|
317
|
|
|
24
|
|
|
$
|
393
|
|
|
$
|
317
|
|
|
24
|
|
Asia/Pacific
|
186
|
|
|
171
|
|
|
9
|
|
|
186
|
|
|
171
|
|
|
9
|
|
||||
Latin America/Caribbean
|
119
|
|
|
105
|
|
|
13
|
|
|
119
|
|
|
105
|
|
|
13
|
|
||||
North America
|
1,775
|
|
|
1,564
|
|
|
13
|
|
|
1,775
|
|
|
1,564
|
|
|
13
|
|
||||
Total client assets
|
$
|
2,473
|
|
|
$
|
2,157
|
|
|
15
|
%
|
|
$
|
2,473
|
|
|
$
|
2,157
|
|
|
15
|
%
|
CORPORATE/PRIVATE EQUITY
|
Selected income statement data
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
As of or for the three months
ended June 30, |
|
As of or for the six months
ended June 30, |
|||||||||||||||||
(in millions, except headcount)
|
2014
|
|
2013
|
|
|
Change
|
|
|
2014
|
|
|
2013
|
|
|
Change
|
|||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Principal transactions
|
$
|
28
|
|
$
|
393
|
|
|
(93
|
)%
|
|
$
|
378
|
|
|
$
|
131
|
|
|
189
|
%
|
Securities gains
|
11
|
|
124
|
|
|
(91
|
)
|
|
37
|
|
|
633
|
|
|
(94
|
)
|
||||
All other income
|
312
|
|
(227
|
)
|
|
NM
|
|
|
460
|
|
|
(113
|
)
|
|
NM
|
|||||
Noninterest revenue
|
351
|
|
290
|
|
|
21
|
|
|
875
|
|
|
651
|
|
|
34
|
|
||||
Net interest income
|
(81
|
)
|
(676
|
)
|
|
88
|
|
|
(237
|
)
|
|
(1,270
|
)
|
|
81
|
|
||||
Total net revenue
(a)
|
270
|
|
(386
|
)
|
|
NM
|
|
|
638
|
|
|
(619
|
)
|
|
NM
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for credit losses
|
(10
|
)
|
5
|
|
|
NM
|
|
|
(21
|
)
|
|
2
|
|
|
NM
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation expense
|
693
|
|
624
|
|
|
11
|
|
|
1,380
|
|
|
1,197
|
|
|
15
|
|
||||
Noncompensation expense
(b)
|
1,091
|
|
1,345
|
|
|
(19
|
)
|
|
1,774
|
|
|
1,987
|
|
|
(11
|
)
|
||||
Subtotal
|
1,784
|
|
1,969
|
|
|
(9
|
)
|
|
3,154
|
|
|
3,184
|
|
|
(1
|
)
|
||||
Net expense allocated to other businesses
|
(1,604
|
)
|
(1,253
|
)
|
|
(28
|
)
|
|
(3,140
|
)
|
|
(2,466
|
)
|
|
(27
|
)
|
||||
Total noninterest expense
|
180
|
|
716
|
|
|
(75
|
)
|
|
14
|
|
|
718
|
|
|
(98
|
)
|
||||
Income/(loss) before income tax expense/(benefit)
|
100
|
|
(1,107
|
)
|
|
NM
|
|
645
|
|
|
(1,339
|
)
|
|
NM
|
|
|||||
Income tax expense/(benefit)
|
(269
|
)
|
(555
|
)
|
|
52
|
|
|
(64
|
)
|
|
(1,037
|
)
|
|
94
|
|
||||
Net income/(loss)
|
$
|
369
|
|
$
|
(552
|
)
|
|
NM
|
|
$
|
709
|
|
|
$
|
(302
|
)
|
|
NM
|
|
|
Total net revenue
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Private equity
|
$
|
36
|
|
$
|
410
|
|
|
(91
|
)
|
|
$
|
399
|
|
|
$
|
134
|
|
|
198
|
|
Treasury and CIO
|
87
|
|
(648
|
)
|
|
NM
|
|
|
89
|
|
|
(535
|
)
|
|
NM
|
|
||||
Other Corporate
|
147
|
|
(148
|
)
|
|
NM
|
|
|
150
|
|
|
(218
|
)
|
|
NM
|
|
||||
Total net revenue
|
$
|
270
|
|
$
|
(386
|
)
|
|
NM
|
|
|
$
|
638
|
|
|
$
|
(619
|
)
|
|
NM
|
|
Net income/(loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Private equity
|
$
|
7
|
|
$
|
212
|
|
|
(97
|
)
|
|
$
|
222
|
|
|
$
|
30
|
|
|
NM
|
|
Treasury and CIO
|
(46
|
)
|
(429
|
)
|
|
89
|
|
|
(140
|
)
|
|
(405
|
)
|
|
65
|
|
||||
Other Corporate
|
408
|
|
(335
|
)
|
|
NM
|
|
|
627
|
|
|
73
|
|
|
NM
|
|
||||
Total net income/(loss)
|
$
|
369
|
|
$
|
(552
|
)
|
|
NM
|
|
|
$
|
709
|
|
|
$
|
(302
|
)
|
|
NM
|
|
Total assets (period-end)
|
$
|
878,886
|
|
$
|
806,044
|
|
|
9
|
|
|
$
|
878,886
|
|
|
$
|
806,044
|
|
|
9
|
|
Headcount
|
24,298
|
|
18,720
|
|
|
30
|
%
|
|
24,298
|
|
|
18,720
|
|
|
30
|
%
|
(a)
|
Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of
$180 million
and $
105 million
for the three months ended June 30, 2014 and 2013, respectively, and
$344 million
and
$208 million
for the six months ended June 30, 2014 and 2013, respectively.
|
(b)
|
Included legal expense of
$227 million
and
$603 million
for the three months ended June 30, 2014 and 2013, respectively, and
$225 million
and
$595 million
for the six months ended June 30, 2014 and 2013.
|
(a)
|
Average investment securities included held-to-maturity balances of
$47.5 billion
for the three months ended June 30, 2014 and
$45.7 billion
for the six months ended June 30, 2014. Held-to-maturity average balances for the three and six months ended June 30, 2013 were not material.
|
(b)
|
Period-end investment securities included held-to-maturity balance of
$47.8 billion
at June 30, 2014. Held-to-maturity balance at June 30, 2013, was not material.
|
Private Equity Portfolio
|
|
|
|
|
|
|
|||||||||||||||
Selected income statement and balance sheet data
|
|
|
|
|
|
|
|||||||||||||||
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
(in millions)
|
2014
|
|
|
2013
|
|
|
Change
|
|
|
2014
|
|
|
2013
|
|
|
Change
|
|
||||
Private equity gains/(losses)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized gains/(losses)
|
$
|
513
|
|
|
$
|
40
|
|
|
NM
|
|
|
$
|
972
|
|
|
$
|
88
|
|
|
NM
|
|
Unrealized gains/(losses)
(a)
|
(467
|
)
|
|
375
|
|
|
NM
|
|
|
(527
|
)
|
|
48
|
|
|
NM
|
|
||||
Total direct investments
|
46
|
|
|
415
|
|
|
(89
|
)%
|
|
445
|
|
|
136
|
|
|
227
|
%
|
||||
Third-party fund investments
|
19
|
|
|
24
|
|
|
(21
|
)
|
|
18
|
|
|
44
|
|
|
(59
|
)
|
||||
Total private equity gains/(losses)
(b)
|
$
|
65
|
|
|
$
|
439
|
|
|
(85
|
)%
|
|
$
|
463
|
|
|
$
|
180
|
|
|
157
|
%
|
(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 methodologies regarding the valuation of the private equity portfolio, see Note 3 of JPMorgan Chase’s 2013 Annual Report.
|
(b)
|
Unfunded commitments to third-party private equity funds were
$130 million
and
$215 million
at June 30, 2014, and December 31, 2013, respectively.
|
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
|
50
|
113–116
|
Risk governance
|
|
114-116
|
Credit Risk Management
|
51-68
|
117–141
|
Credit Portfolio
|
|
119
|
Consumer Credit Portfolio
|
52-59
|
120-129
|
Wholesale Credit Portfolio
|
60-65
|
130-138
|
Community Reinvestment Act Exposure
|
66
|
138
|
Allowance For Credit Losses
|
66-68
|
139-141
|
Market Risk Management
|
69-71
|
142-148
|
Risk identification and classification
|
|
142-143
|
Value-at-risk
|
69-71
|
144-146
|
Economic-value stress testing
|
|
147
|
Earnings-at-risk
|
71
|
147-148
|
Risk monitoring and control: Limits
|
|
148
|
Country Risk Management
|
72
|
149-152
|
Model risk
|
|
153
|
Principal Risk Management
|
|
154
|
Operational Risk Management
|
73
|
155-157
|
Operational Risk Capital Measurement
|
73
|
|
Cybersecurity
|
73
|
156
|
Business resiliency
|
|
157
|
Legal Risk, Regulatory Risk, and Compliance Risk Management
|
|
158
|
Fiduciary Risk management
|
|
159
|
Reputation Risk Management
|
|
159
|
Capital Management
|
74-80
|
160-167
|
Liquidity Risk Management
|
81-85
|
168-173
|
Funding
|
81-84
|
168-172
|
HQLA
|
84
|
172
|
Contingency funding plan
|
85
|
172
|
Credit ratings
|
85
|
173
|
CREDIT RISK MANAGEMENT
|
Total credit portfolio
|
|
|
|
|
|||||||||
|
Credit exposure
|
|
Nonperforming
(b)(c)(d)
|
||||||||||
(in millions)
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
||||||||
Loans retained
|
$
|
735,369
|
|
$
|
724,177
|
|
|
$
|
7,634
|
|
$
|
8,317
|
|
Loans held-for-sale
|
7,311
|
|
12,230
|
|
|
176
|
|
26
|
|
||||
Loans at fair value
|
4,303
|
|
2,011
|
|
|
171
|
|
197
|
|
||||
Total loans – reported
|
746,983
|
|
738,418
|
|
|
7,981
|
|
8,540
|
|
||||
Derivative receivables
|
62,378
|
|
65,759
|
|
|
361
|
|
415
|
|
||||
Receivables from customers and other
|
31,732
|
|
26,883
|
|
|
—
|
|
—
|
|
||||
Total credit-related assets
|
841,093
|
|
831,060
|
|
|
8,342
|
|
8,955
|
|
||||
Assets acquired in loan satisfactions
|
|
|
|
|
|
||||||||
Real estate owned
|
NA
|
|
NA
|
|
|
638
|
|
710
|
|
||||
Other
|
NA
|
|
NA
|
|
|
37
|
|
41
|
|
||||
Total
assets acquired in loan satisfactions
|
NA
|
|
NA
|
|
|
675
|
|
751
|
|
||||
Total assets
|
841,093
|
|
831,060
|
|
|
9,017
|
|
9,706
|
|
||||
Lending-related commitments
|
1,041,373
|
|
1,031,672
|
|
|
122
|
|
206
|
|
||||
Total credit portfolio
|
$
|
1,882,466
|
|
$
|
1,862,732
|
|
|
$
|
9,139
|
|
$
|
9,912
|
|
Credit portfolio management derivatives notional, net
(a)
|
$
|
(34,971
|
)
|
$
|
(27,996
|
)
|
|
$
|
—
|
|
$
|
(5
|
)
|
Liquid securities and other cash collateral held against derivatives
|
(13,240
|
)
|
(14,435
|
)
|
|
NA
|
|
NA
|
|
(in millions,
except ratios)
|
Three months
ended June 30, |
|
Six months
ended June 30, |
||||||||||
2014
|
2013
|
|
2014
|
2013
|
|||||||||
Net charge-offs
|
$
|
1,158
|
|
$
|
1,403
|
|
|
$
|
2,427
|
|
$
|
3,128
|
|
Average retained loans
|
|
|
|
|
|
||||||||
Loans – reported
|
727,030
|
|
720,290
|
|
|
723,798
|
|
719,684
|
|
||||
Loans – reported, excluding residential real estate PCI loans
|
676,168
|
|
662,776
|
|
|
672,166
|
|
661,382
|
|
||||
Net charge-off rates
|
|
|
|
|
|
||||||||
Loans – reported
|
0.64
|
%
|
0.78
|
%
|
|
0.68
|
%
|
0.88
|
%
|
||||
Loans – reported, excluding PCI
|
0.69
|
|
0.85
|
|
|
0.73
|
|
0.95
|
|
(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 65
and Note 5.
|
(b)
|
Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.
|
(c)
|
At
June 30, 2014
, and
December 31, 2013
, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of
$8.1 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
$316 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
June 30, 2014
, and
December 31, 2013
, total nonaccrual loans represented
1.07%
and
1.16%
, respectively, of total loans.
|
CONSUMER CREDIT PORTFOLIO
|
Consumer credit portfolio
|
|
|
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|||||||||||||||||||||||||||||
(in millions, except ratios)
|
Credit exposure
|
|
Nonaccrual
loans
(f)(g)
|
|
Net charge-offs/(recoveries)
(h)
|
|
Average annual net charge-off/(recovery) rate
(h)(i)
|
|
Net charge-offs/(recoveries)
(h)
|
|
Average annual net charge-off/(recovery) rate
(h)(i)
|
|||||||||||||||||||||||||||
Jun 30,
2014 |
|
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|||||||||||||||||||||
Consumer, excluding credit card
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Loans, excluding PCI loans and loans held-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Home equity – senior lien
|
$
|
16,222
|
|
|
$
|
17,113
|
|
|
$
|
909
|
|
$
|
932
|
|
|
$
|
19
|
|
$
|
32
|
|
|
0.46
|
%
|
0.69
|
%
|
|
$
|
46
|
|
$
|
75
|
|
|
0.55
|
%
|
0.80
|
%
|
Home equity – junior lien
|
38,263
|
|
|
40,750
|
|
|
1,671
|
|
1,876
|
|
|
106
|
|
204
|
|
|
1.09
|
|
1.82
|
|
|
245
|
|
494
|
|
|
1.25
|
|
2.17
|
|
||||||||
Prime mortgage, including option ARMs
|
93,239
|
|
|
87,162
|
|
|
2,455
|
|
2,666
|
|
|
(6
|
)
|
22
|
|
|
(0.03
|
)
|
0.11
|
|
|
(9
|
)
|
72
|
|
|
(0.02
|
)
|
0.19
|
|
||||||||
Subprime mortgage
|
6,552
|
|
|
7,104
|
|
|
1,273
|
|
1,390
|
|
|
(5
|
)
|
33
|
|
|
(0.30
|
)
|
1.69
|
|
|
8
|
|
100
|
|
|
0.23
|
|
2.52
|
|
||||||||
Auto
(a)
|
53,042
|
|
|
52,757
|
|
|
103
|
|
161
|
|
|
29
|
|
23
|
|
|
0.22
|
|
0.18
|
|
|
70
|
|
63
|
|
|
0.27
|
|
0.25
|
|
||||||||
Business banking
|
19,453
|
|
|
18,951
|
|
|
326
|
|
385
|
|
|
69
|
|
74
|
|
|
1.44
|
|
1.59
|
|
|
145
|
|
135
|
|
|
1.53
|
|
1.46
|
|
||||||||
Student and other
|
11,325
|
|
|
11,557
|
|
|
170
|
|
86
|
|
|
105
|
|
68
|
|
|
3.70
|
|
2.30
|
|
|
180
|
|
125
|
|
|
3.17
|
|
2.11
|
|
||||||||
Total loans, excluding PCI loans and loans held-for-sale
|
238,096
|
|
|
235,394
|
|
|
6,907
|
|
7,496
|
|
|
317
|
|
456
|
|
|
0.54
|
|
0.79
|
|
|
685
|
|
1,064
|
|
|
0.58
|
|
0.92
|
|
||||||||
Loans – PCI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Home equity
|
18,070
|
|
|
18,927
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
NA
|
|
NA
|
|
NA
|
|
|
NA
|
NA
|
||||||||||||
Prime mortgage
|
11,302
|
|
|
12,038
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
NA
|
|
NA
|
|
NA
|
|
|
NA
|
NA
|
||||||||||||
Subprime mortgage
|
3,947
|
|
|
4,175
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
NA
|
|
NA
|
|
NA
|
|
|
NA
|
NA
|
||||||||||||
Option ARMs
|
16,799
|
|
|
17,915
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
NA
|
|
NA
|
|
NA
|
|
|
NA
|
NA
|
||||||||||||
Total loans – PCI
|
50,118
|
|
|
53,055
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
NA
|
|
NA
|
|
NA
|
|
|
NA
|
NA
|
||||||||||||
Total loans – retained
|
288,214
|
|
|
288,449
|
|
|
6,907
|
|
7,496
|
|
|
317
|
|
456
|
|
|
0.44
|
|
0.63
|
|
|
685
|
|
1,064
|
|
|
0.48
|
|
0.74
|
|
||||||||
Loans held-for-sale
|
964
|
|
(e)
|
614
|
|
(e)
|
163
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Total consumer, excluding
credit card loans
|
289,178
|
|
|
289,063
|
|
|
7,070
|
|
7,496
|
|
|
317
|
|
456
|
|
|
0.44
|
|
0.63
|
|
|
685
|
|
1,064
|
|
|
0.48
|
|
0.74
|
|
||||||||
Lending-related commitments
(b)
|
56,410
|
|
|
56,057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Receivables from customers
(c)
|
104
|
|
|
139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total consumer exposure, excluding credit card
|
345,692
|
|
|
345,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Credit card
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Loans retained
(d)
|
125,621
|
|
|
127,465
|
|
|
—
|
|
—
|
|
|
885
|
|
1,014
|
|
|
2.88
|
|
3.31
|
|
|
1,773
|
|
2,096
|
|
|
2.90
|
|
3.43
|
|
||||||||
Loans held-for-sale
|
508
|
|
|
326
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Total credit card loans
|
126,129
|
|
|
127,791
|
|
|
—
|
|
—
|
|
|
885
|
|
1,014
|
|
|
2.88
|
|
3.31
|
|
|
1,773
|
|
2,096
|
|
|
2.90
|
|
3.43
|
|
||||||||
Lending-related commitments
(c)
|
533,688
|
|
|
529,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total credit card exposure
|
659,817
|
|
|
657,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total consumer credit portfolio
|
$
|
1,005,509
|
|
|
$
|
1,002,433
|
|
|
$
|
7,070
|
|
$
|
7,496
|
|
|
$
|
1,202
|
|
$
|
1,470
|
|
|
1.17
|
%
|
1.43
|
%
|
|
$
|
2,458
|
|
$
|
3,160
|
|
|
1.20
|
%
|
1.54
|
%
|
Memo: Total consumer credit portfolio, excluding PCI
|
$
|
955,391
|
|
|
$
|
949,378
|
|
|
$
|
7,070
|
|
$
|
7,496
|
|
|
$
|
1,202
|
|
$
|
1,470
|
|
|
1.34
|
%
|
1.66
|
%
|
|
$
|
2,458
|
|
$
|
3,160
|
|
|
1.38
|
%
|
1.79
|
%
|
(a)
|
At
June 30, 2014
, and
December 31, 2013
, excluded operating lease-related assets of
$6.1 billion
and
$5.5 billion
, respectively.
|
(b)
|
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.
|
(c)
|
Receivables from customers represent margin loans to retail brokerage customers, and are included in accrued interest and accounts receivable on the Consolidated Balance Sheets.
|
(d)
|
Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income.
|
(e)
|
Predominantly represents prime mortgage loans held-for-sale.
|
(f)
|
At
June 30, 2014
, and
December 31, 2013
, nonaccrual loans excluded: (1) mortgage loans insured by U.S. government agencies of
$8.1 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
$316 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 the net charge-off rates excluded
$48 million
and
$109 million
of write-offs in the PCI portfolio for the three and six months ended
June 30, 2014
, respectively. These write-offs decreased the allowance for loan losses for PCI loans. 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
$710 million
and
$8 million
for the
three months ended
June 30, 2014
, and 2013, respectively, and
$683 million
and
$4 million
, for the six months ended
June 30, 2014
, and 2013, respectively. These amounts were excluded when calculating net charge-off rates.
|
Current high risk junior liens
|
|||||||||
(in billions)
|
|
June 30,
2014 |
December 31,
2013 |
||||||
Junior liens subordinate to:
|
|
|
|
|
|
||||
Modified current senior lien
|
|
|
$
|
0.7
|
|
|
$
|
0.9
|
|
Senior lien 30 – 89 days delinquent
|
|
|
0.6
|
|
|
0.6
|
|
||
Senior lien 90 days or more delinquent
(a)
|
|
|
0.6
|
|
|
0.8
|
|
||
Total current high risk junior liens
|
|
|
$
|
1.9
|
|
|
$
|
2.3
|
|
(a)
|
Junior liens subordinate to senior liens that are 90 days or more past due are classified as nonaccrual loans. At
June 30, 2014
, and
December 31, 2013
, excluded approximately
$100 million
of junior liens that are performing but not current, which were 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 plus additional principal losses recognized subsequent to acquisition through the provision and allowance for loan losses. The remaining nonaccretable difference for principal losses was
$3.3 billion
and
$3.8 billion
at
June 30, 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
$162 million
and
$53 million
of write-offs of prime mortgages at
June 30, 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 at
June 30, 2014
, and
December 31, 2013
of
$1.6 billion
and
$1.7 billion
for prime mortgage, respectively,
$194 million
and
$494 million
for option ARMs, respectively, and
$1.8 billion
for home equity and
$180 million
for subprime mortgage for both periods.
|
(a)
|
Amounts represent the carrying value of modified residential real estate loans.
|
(b)
|
At
June 30, 2014
, and
December 31, 2013
,
$6.7 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
|
(c)
|
Amounts represent the unpaid principal balance of modified PCI loans.
|
(d)
|
As of
June 30, 2014
, and
December 31, 2013
, nonaccrual loans included
$3.1 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.
|
Nonperforming assets
(a)
|
|
|
|
||||
(in millions)
|
June 30,
2014 |
|
December 31,
2013 |
||||
Nonaccrual loans
(b)
|
|
|
|
||||
Residential real estate
|
$
|
6,471
|
|
|
$
|
6,864
|
|
Other consumer
|
599
|
|
|
632
|
|
||
Total nonaccrual loans
|
7,070
|
|
|
7,496
|
|
||
Assets acquired in loan satisfactions
|
|
|
|
||||
Real estate owned
|
515
|
|
|
614
|
|
||
Other
|
37
|
|
|
41
|
|
||
Total assets acquired in loan satisfactions
|
552
|
|
|
655
|
|
||
Total nonperforming assets
|
$
|
7,622
|
|
|
$
|
8,151
|
|
(a)
|
At
June 30, 2014
, and
December 31, 2013
, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of
$8.1 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
$316 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
|
|
|
|||||
Six months ended June 30,
|
|
|
|
||||
(in millions)
|
|
2014
|
2013
|
||||
Beginning balance
|
|
$
|
7,496
|
|
$
|
9,174
|
|
Additions
|
|
2,656
|
|
3,942
|
|
||
Reductions:
|
|
|
|
||||
Principal payments and other
(a)
|
|
780
|
|
689
|
|
||
Charge-offs
|
|
752
|
|
1,012
|
|
||
Returned to performing status
|
|
1,227
|
|
2,250
|
|
||
Foreclosures and other liquidations
|
|
323
|
|
589
|
|
||
Total reductions
|
|
3,082
|
|
4,540
|
|
||
Net additions/(reductions)
|
|
(426
|
)
|
(598
|
)
|
||
Ending balance
|
|
$
|
7,070
|
|
$
|
8,576
|
|
(a)
|
Other reductions includes loan sales.
|
WHOLESALE CREDIT PORTFOLIO
|
Wholesale credit portfolio
|
|||||||||||||
|
Credit exposure
|
|
Nonperforming
(c)
|
||||||||||
(in millions)
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
||||||||
Loans retained
|
$
|
321,534
|
|
$
|
308,263
|
|
|
$
|
727
|
|
$
|
821
|
|
Loans held-for-sale
|
5,839
|
|
11,290
|
|
|
13
|
|
26
|
|
||||
Loans at fair value
|
4,303
|
|
2,011
|
|
|
171
|
|
197
|
|
||||
Loans – reported
|
331,676
|
|
321,564
|
|
|
911
|
|
1,044
|
|
||||
Derivative receivables
|
62,378
|
|
65,759
|
|
|
361
|
|
415
|
|
||||
Receivables from customers and other
(a)
|
31,628
|
|
26,744
|
|
|
—
|
|
—
|
|
||||
Total wholesale credit-related assets
|
425,682
|
|
414,067
|
|
|
1,272
|
|
1,459
|
|
||||
Lending-related commitments
|
451,275
|
|
446,232
|
|
|
122
|
|
206
|
|
||||
Total wholesale credit exposure
|
$
|
876,957
|
|
$
|
860,299
|
|
|
$
|
1,394
|
|
$
|
1,665
|
|
Credit portfolio management derivatives notional, net
(b)
|
$
|
(34,971
|
)
|
$
|
(27,996
|
)
|
|
$
|
—
|
|
$
|
(5
|
)
|
Liquid securities and other cash collateral held against derivatives
|
(13,240
|
)
|
(14,435
|
)
|
|
NA
|
|
NA
|
|
(a)
|
Receivables from customers and other include
$31.5 billion
and
$26.5 billion
of margin loans at
June 30, 2014
, and
December 31, 2013
, respectively, 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 65
, and Note 5.
|
(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
June 30, 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 manage-ment credit derivative hedges
(e)
|
Liquid securities
and other cash collateral held against derivative
receivables |
||||||||||||||||||
|
|
|
|
Noninvestment-grade
|
|||||||||||||||||||||||||
As of or for the six months ended
|
Credit exposure
(d)
|
Investment- grade
|
|
Noncriticized
|
|
Criticized performing
|
Criticized nonperforming
|
||||||||||||||||||||||
June 30, 2014
|
|||||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Top 25 industries
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Real Estate
|
$
|
93,793
|
|
$
|
67,890
|
|
|
$
|
23,727
|
|
|
$
|
1,887
|
|
$
|
289
|
|
$
|
147
|
|
$
|
(15
|
)
|
$
|
(61
|
)
|
$
|
(29
|
)
|
Banks & Finance Cos
|
60,209
|
|
50,322
|
|
|
9,262
|
|
|
551
|
|
74
|
|
23
|
|
(7
|
)
|
(2,288
|
)
|
(5,550
|
)
|
|||||||||
Oil & Gas
|
48,211
|
|
33,357
|
|
|
14,489
|
|
|
325
|
|
40
|
|
77
|
|
—
|
|
(214
|
)
|
(110
|
)
|
|||||||||
Healthcare
|
46,716
|
|
38,679
|
|
|
7,338
|
|
|
677
|
|
22
|
|
1
|
|
—
|
|
(117
|
)
|
(240
|
)
|
|||||||||
Consumer Products
|
40,021
|
|
23,798
|
|
|
15,516
|
|
|
700
|
|
7
|
|
38
|
|
—
|
|
(46
|
)
|
—
|
|
|||||||||
Asset Managers
|
34,455
|
|
28,100
|
|
|
6,350
|
|
|
5
|
|
—
|
|
17
|
|
(12
|
)
|
(8
|
)
|
(2,906
|
)
|
|||||||||
State & Municipal Govt
(b)
|
33,440
|
|
32,698
|
|
|
664
|
|
|
78
|
|
—
|
|
71
|
|
24
|
|
(151
|
)
|
(104
|
)
|
|||||||||
Utilities
|
28,308
|
|
24,966
|
|
|
3,051
|
|
|
260
|
|
31
|
|
—
|
|
—
|
|
(376
|
)
|
(205
|
)
|
|||||||||
Retail & Consumer Services
|
26,112
|
|
16,663
|
|
|
8,219
|
|
|
1,185
|
|
45
|
|
26
|
|
4
|
|
(99
|
)
|
—
|
|
|||||||||
Central Govt
|
22,478
|
|
22,050
|
|
|
374
|
|
|
54
|
|
—
|
|
—
|
|
—
|
|
(11,488
|
)
|
(1,534
|
)
|
|||||||||
Technology
|
20,547
|
|
13,227
|
|
|
6,693
|
|
|
607
|
|
20
|
|
—
|
|
—
|
|
(290
|
)
|
—
|
|
|||||||||
Machinery & Equipment Mfg
|
20,083
|
|
11,832
|
|
|
7,951
|
|
|
300
|
|
—
|
|
7
|
|
(2
|
)
|
(161
|
)
|
(2
|
)
|
|||||||||
Transportation
|
16,406
|
|
11,319
|
|
|
4,986
|
|
|
78
|
|
23
|
|
5
|
|
(3
|
)
|
(74
|
)
|
(73
|
)
|
|||||||||
Metals/Mining
|
16,365
|
|
8,660
|
|
|
6,622
|
|
|
1,081
|
|
2
|
|
8
|
|
18
|
|
(440
|
)
|
(4
|
)
|
|||||||||
Business Services
|
14,538
|
|
7,385
|
|
|
6,849
|
|
|
279
|
|
25
|
|
14
|
|
1
|
|
(10
|
)
|
(1
|
)
|
|||||||||
Media
|
14,172
|
|
8,386
|
|
|
5,426
|
|
|
334
|
|
26
|
|
1
|
|
(10
|
)
|
(75
|
)
|
(6
|
)
|
|||||||||
Telecom Services
|
14,019
|
|
8,258
|
|
|
5,602
|
|
|
149
|
|
10
|
|
—
|
|
—
|
|
(609
|
)
|
(8
|
)
|
|||||||||
Building Materials/Construction
|
13,376
|
|
6,259
|
|
|
6,410
|
|
|
700
|
|
7
|
|
24
|
|
—
|
|
(142
|
)
|
—
|
|
|||||||||
Insurance
|
12,663
|
|
10,060
|
|
|
2,314
|
|
|
84
|
|
205
|
|
—
|
|
—
|
|
—
|
|
(1,677
|
)
|
|||||||||
Automotive
|
12,496
|
|
8,000
|
|
|
4,365
|
|
|
131
|
|
—
|
|
1
|
|
—
|
|
(371
|
)
|
—
|
|
|||||||||
Chemicals/Plastics
|
12,064
|
|
8,227
|
|
|
3,719
|
|
|
118
|
|
—
|
|
11
|
|
(2
|
)
|
(11
|
)
|
—
|
|
|||||||||
Securities Firms & Exchanges
|
11,856
|
|
9,871
|
|
|
1,970
|
|
|
12
|
|
3
|
|
12
|
|
4
|
|
(4,984
|
)
|
(277
|
)
|
|||||||||
Agriculture/Paper Mfg
|
7,319
|
|
4,743
|
|
|
2,419
|
|
|
154
|
|
3
|
|
41
|
|
—
|
|
(4
|
)
|
(7
|
)
|
|||||||||
Aerospace/Defense
|
5,877
|
|
5,002
|
|
|
851
|
|
|
24
|
|
—
|
|
1
|
|
—
|
|
(67
|
)
|
(1
|
)
|
|||||||||
Leisure
|
5,469
|
|
2,924
|
|
|
1,906
|
|
|
484
|
|
155
|
|
4
|
|
—
|
|
(5
|
)
|
(19
|
)
|
|||||||||
All other
(c)
|
204,194
|
|
183,313
|
|
|
19,873
|
|
|
785
|
|
223
|
|
1,039
|
|
(31
|
)
|
(12,880
|
)
|
(487
|
)
|
|||||||||
Subtotal
|
$
|
835,187
|
|
$
|
645,989
|
|
|
$
|
176,946
|
|
|
$
|
11,042
|
|
$
|
1,210
|
|
$
|
1,568
|
|
$
|
(31
|
)
|
$
|
(34,971
|
)
|
$
|
(13,240
|
)
|
Loans held-for-sale and loans at fair value
|
10,142
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Receivables from customers and other
|
31,628
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total
|
$
|
876,957
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected metrics
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
30 days or more past due and accruing loans
|
Full year net charge-offs/
(recoveries)
|
Credit portfolio manage- ment 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
|
)
|
|||||||||
Asset Managers
|
33,506
|
|
26,991
|
|
|
6,477
|
|
|
38
|
|
—
|
|
217
|
|
(7
|
)
|
(5
|
)
|
(3,191
|
)
|
|||||||||
State & Municipal Govt
(b)
|
35,666
|
|
34,563
|
|
|
826
|
|
|
157
|
|
120
|
|
40
|
|
1
|
|
(161
|
)
|
(144
|
)
|
|||||||||
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
|
)
|
|||||||||
Transportation
|
13,975
|
|
9,683
|
|
|
4,165
|
|
|
100
|
|
27
|
|
10
|
|
8
|
|
(68
|
)
|
—
|
|
|||||||||
Metals/Mining
|
17,434
|
|
9,266
|
|
|
7,508
|
|
|
594
|
|
66
|
|
1
|
|
16
|
|
(621
|
)
|
(36
|
)
|
|||||||||
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
|
)
|
|||||||||
Telecom Services
|
13,906
|
|
9,130
|
|
|
4,284
|
|
|
482
|
|
10
|
|
—
|
|
7
|
|
(272
|
)
|
(8
|
)
|
|||||||||
Building Materials/Construction
|
12,901
|
|
5,701
|
|
|
6,354
|
|
|
839
|
|
7
|
|
15
|
|
3
|
|
(132
|
)
|
—
|
|
|||||||||
Insurance
|
13,761
|
|
10,681
|
|
|
2,757
|
|
|
84
|
|
239
|
|
—
|
|
(2
|
)
|
(98
|
)
|
(1,935
|
)
|
|||||||||
Automotive
|
12,532
|
|
7,881
|
|
|
4,490
|
|
|
159
|
|
2
|
|
3
|
|
(3
|
)
|
(472
|
)
|
—
|
|
|||||||||
Chemicals/Plastics
|
10,637
|
|
7,189
|
|
|
3,211
|
|
|
222
|
|
15
|
|
—
|
|
—
|
|
(13
|
)
|
(83
|
)
|
|||||||||
Securities Firms & Exchanges
|
10,035
|
|
4,208
|
|
(f)
|
5,806
|
|
(f)
|
14
|
|
7
|
|
1
|
|
(68
|
)
|
(4,169
|
)
|
(175
|
)
|
|||||||||
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
June 30, 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
June 30, 2014
, and
December 31, 2013
, noted above, the Firm held:
$7.5 billion
and
$7.9 billion
, respectively, of trading securities;
$28.1 billion
and
$29.5 billion
, respectively, of AFS securities; and
$8.3 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.
|
(c)
|
All other includes: individuals, private education and civic organizations; SPEs; and holding companies, representing approximately
66%
,
20%
and
5%
, respectively, at
June 30, 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 June 30, |
|
Six months
ended June 30, |
||||||||||
2014
|
2013
|
|
2014
|
2013
|
|||||||||
Loans – reported
|
|
|
|
|
|
||||||||
Average loans retained
|
$
|
315,415
|
|
$
|
308,277
|
|
|
$
|
312,244
|
|
$
|
306,110
|
|
Gross
charge-offs
|
9
|
|
50
|
|
|
77
|
|
116
|
|
||||
Gross recoveries
|
(53
|
)
|
(117
|
)
|
|
(108
|
)
|
(148
|
)
|
||||
Net
recoveries
|
(44
|
)
|
(67
|
)
|
|
(31
|
)
|
(32
|
)
|
||||
Net recovery rate
|
(0.06
|
)%
|
(0.09
|
)%
|
|
(0.02
|
)%
|
(0.02
|
)%
|
Derivative receivables
|
|
|
||||
(in millions)
|
Derivative receivables
|
|||||
June 30,
2014 |
December 31,
2013 |
|||||
Interest rate
|
$
|
28,829
|
|
$
|
25,782
|
|
Credit derivatives
|
2,964
|
|
1,516
|
|
||
Foreign exchange
|
11,625
|
|
16,790
|
|
||
Equity
|
9,377
|
|
12,227
|
|
||
Commodity
|
9,583
|
|
9,444
|
|
||
Total, net of cash collateral
|
62,378
|
|
65,759
|
|
||
Liquid securities and other cash collateral held against derivative receivables
|
(13,240
|
)
|
(14,435
|
)
|
||
Total, net of collateral
|
$
|
49,138
|
|
$
|
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 allowance for lending-related commitments is reported in other liabilities on the Consolidated Balance Sheets.
|
(d)
|
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 June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||||||||||||||||||||||
|
Provision for loan losses
|
|
Provision for lending-related commitments
|
|
Total provision for credit losses
|
|
Provision for loan losses
|
|
Provision for lending-related commitments
|
|
Total provision for credit losses
|
||||||||||||||||||||||||||||||
(in millions)
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
||||||||||||
Consumer, excluding credit card
|
$
|
(38
|
)
|
$
|
(494
|
)
|
|
$
|
1
|
|
$
|
1
|
|
|
$
|
(37
|
)
|
$
|
(493
|
)
|
|
$
|
81
|
|
$
|
(531
|
)
|
|
$
|
1
|
|
$
|
1
|
|
|
$
|
82
|
|
$
|
(530
|
)
|
Credit card
|
885
|
|
464
|
|
|
—
|
|
—
|
|
|
885
|
|
464
|
|
|
1,573
|
|
1,046
|
|
|
—
|
|
—
|
|
|
1,573
|
|
1,046
|
|
||||||||||||
Total consumer
|
847
|
|
(30
|
)
|
|
1
|
|
1
|
|
|
848
|
|
(29
|
)
|
|
1,654
|
|
515
|
|
|
1
|
|
1
|
|
|
1,655
|
|
516
|
|
||||||||||||
Wholesale
|
(165
|
)
|
40
|
|
|
9
|
|
36
|
|
|
(156
|
)
|
76
|
|
|
(55
|
)
|
64
|
|
|
(58
|
)
|
84
|
|
|
(113
|
)
|
148
|
|
||||||||||||
Total provision for credit losses
|
$
|
682
|
|
$
|
10
|
|
|
$
|
10
|
|
$
|
37
|
|
|
$
|
692
|
|
$
|
47
|
|
|
$
|
1,599
|
|
$
|
579
|
|
|
$
|
(57
|
)
|
$
|
85
|
|
|
$
|
1,542
|
|
$
|
664
|
|
MARKET RISK MANAGEMENT
|
Total VaR
|
Three months ended June 30,
|
|
|
|
|
|
Six months ended June 30,
|
||||||||||||||||||||||||||||||||||
|
2014
|
|
2013
|
|
At June 30,
|
Average
|
|||||||||||||||||||||||||||||||||||
(in millions)
|
Avg.
|
Min
|
Max
|
|
Avg.
|
Min
|
Max
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||||||||||||
CIB trading VaR by risk type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Fixed income
|
$
|
38
|
|
|
$
|
31
|
|
|
$
|
45
|
|
|
|
$
|
35
|
|
|
$
|
23
|
|
|
$
|
49
|
|
|
|
$
|
34
|
|
|
$
|
44
|
|
|
$
|
37
|
|
|
$
|
45
|
|
Foreign exchange
|
8
|
|
|
5
|
|
|
13
|
|
|
|
7
|
|
|
5
|
|
|
11
|
|
|
|
6
|
|
|
5
|
|
|
7
|
|
|
7
|
|
||||||||||
Equities
|
14
|
|
(c)
|
10
|
|
|
21
|
|
|
|
14
|
|
|
10
|
|
|
21
|
|
|
|
15
|
|
|
18
|
|
|
14
|
|
(c)
|
14
|
|
||||||||||
Commodities and other
|
9
|
|
|
7
|
|
|
14
|
|
|
|
13
|
|
|
11
|
|
|
17
|
|
|
|
9
|
|
|
12
|
|
|
10
|
|
|
14
|
|
||||||||||
Diversification benefit to CIB trading VaR
|
(30
|
)
|
(a)(c)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(33
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(30
|
)
|
(a)
|
(32
|
)
|
(a)
|
(30
|
)
|
(a)(c)
|
(34
|
)
|
||||||||||
CIB trading VaR
|
39
|
|
(c)
|
28
|
|
|
49
|
|
|
|
36
|
|
|
21
|
|
|
49
|
|
|
|
34
|
|
|
47
|
|
|
38
|
|
|
46
|
|
||||||||||
Credit portfolio VaR
|
10
|
|
|
8
|
|
|
12
|
|
|
|
13
|
|
|
11
|
|
|
16
|
|
|
|
9
|
|
|
13
|
|
|
12
|
|
|
14
|
|
||||||||||
Diversification benefit to CIB VaR
|
(6
|
)
|
(a)(c)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(9
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(5
|
)
|
(a)
|
(8
|
)
|
(a)
|
(7
|
)
|
(a)
|
(9
|
)
|
||||||||||
CIB VaR
|
43
|
|
|
34
|
|
|
56
|
|
|
|
40
|
|
|
25
|
|
|
54
|
|
|
|
38
|
|
|
52
|
|
|
43
|
|
|
51
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Mortgage Banking VaR
|
20
|
|
|
3
|
|
|
28
|
|
|
|
15
|
|
|
8
|
|
|
21
|
|
|
|
3
|
|
|
13
|
|
|
13
|
|
|
17
|
|
||||||||||
Treasury and CIO VaR
|
5
|
|
|
4
|
|
|
5
|
|
|
|
5
|
|
|
4
|
|
|
7
|
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
8
|
|
||||||||||
Asset Management VaR
|
3
|
|
|
3
|
|
|
4
|
|
|
|
5
|
|
|
4
|
|
|
5
|
|
|
|
4
|
|
|
5
|
|
|
3
|
|
|
5
|
|
||||||||||
Diversification benefit to other VaR
|
(8
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(10
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(5
|
)
|
(a)
|
(10
|
)
|
(a)
|
(7
|
)
|
(a)
|
(12
|
)
|
||||||||||
Other VaR
|
20
|
|
|
7
|
|
|
27
|
|
|
|
15
|
|
|
9
|
|
|
22
|
|
|
|
7
|
|
|
13
|
|
|
14
|
|
|
18
|
|
||||||||||
Diversification benefit to CIB and other VaR
|
(8
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(10
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(5
|
)
|
(a)
|
(9
|
)
|
(a)
|
(8
|
)
|
(a)
|
(10
|
)
|
||||||||||
Total VaR
|
$
|
55
|
|
|
$
|
38
|
|
|
$
|
70
|
|
|
|
$
|
45
|
|
|
$
|
29
|
|
|
$
|
61
|
|
|
|
$
|
40
|
|
|
$
|
56
|
|
|
$
|
49
|
|
|
$
|
59
|
|
(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.
|
(c)
|
These amounts have been updated from those included in the June 30, 2014 earnings supplement.
|
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
|
||||||||
June 30, 2014
|
$
|
4,635
|
|
|
$
|
2,798
|
|
|
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
|
•
|
Internal losses,
|
•
|
External losses,
|
•
|
Scenario analysis, and
|
•
|
Business environment and internal control factors (“BEICF”).
|
CAPITAL MANAGEMENT
|
•
|
Regulatory capital
|
•
|
Economic risk capital
|
•
|
Line of business equity
|
|
|
|
|
|
|
|
|
RWA (Denominator)
|
Standardized Approach
|
Basel I with 2.5
|
|
Basel III Standardized
|
|||
|
|
|
|
|
|
|
|
|
Advanced
Approach
|
Basel III Advanced
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage (Denominator)
|
Leverage
|
Adjusted average assets
(c)
|
|||||
|
|
|
|
|
|
|
|
|
Supplementary leverage
(a)
|
|
|
|
Adjusted average assets
(c)
+ certain off-balance sheet exposures
|
||
|
|
|
|
|
|
|
|
(a)
|
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.
|
(b)
|
Trust preferred securities (“TruPS”) are to be phased out from inclusion in Basel III Capital commencing January 1, 2014, through the end of 2021.
|
(c)
|
Adjusted average assets, for purposes of calculating the leverage ratio and SLR, includes 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.
|
|
|
Basel III Advanced Fully Phased-In
|
|
|
|
|||
|
|
June 30, 2014
|
|
Fully phased-in minimum capital ratios
(b)
|
Fully phased-in well-capitalized ratios
(c)
|
|||
Risk-based capital ratios:
|
|
|
|
|
|
|||
CET1 capital
|
|
9.8
|
%
|
|
9.5
|
%
|
6.5
|
%
|
Tier 1 capital
|
|
10.9
|
|
|
11.0
|
|
8.0
|
|
Total capital
|
|
12.2
|
|
|
13.0
|
|
10.0
|
|
Leverage ratio:
|
|
|
|
|
|
|||
Tier 1
|
|
7.6
|
|
|
4.0
|
|
5.0
|
|
SLR
|
|
5.4
|
|
(a)
|
3.0
|
|
5.0
|
|
(a)
|
Reflects the U.S. Final Leverage Ratio NPR issued on April 8, 2014.
|
(b)
|
Represents the minimum capital ratios applicable to the Firm under fully phased-in Basel III rules.
|
(c)
|
Represents the minimum Basel III Fully Phased-In capital ratios applicable to the Firm under the PCA requirements of FDICIA.
|
Risk-based capital components and assets
|
|||
|
Basel III Advanced
Fully Phased-In
|
||
(in millions)
|
June 30, 2014
|
|
|
Total stockholders’ equity
|
$
|
227,314
|
|
Less: Preferred stock
|
18,463
|
|
|
Common stockholders’ equity
|
208,851
|
|
|
Less:
|
|
||
Goodwill
(a)
|
45,286
|
|
|
Other intangible assets
(a)
|
1,194
|
|
|
Other CET1 capital adjustments
|
1,772
|
|
|
CET1 capital
|
160,599
|
|
|
Preferred stock
|
18,463
|
|
|
Less:
|
|
||
Other additional Tier 1 adjustments
|
137
|
|
|
Total Tier 1 capital
|
178,925
|
|
|
Long-term debt and other instruments qualifying as Tier 2
|
15,316
|
|
|
Qualifying allowance for credit losses
|
5,270
|
|
|
Other
|
(77
|
)
|
|
Total Tier 2 capital
|
20,509
|
|
|
Total qualifying capital
|
$
|
199,434
|
|
Credit risk RWA
|
$
|
1,063,270
|
|
Market risk RWA
|
177,507
|
|
|
Operational risk RWA
|
400,000
|
|
|
Total RWA
|
$
|
1,640,777
|
|
SLR leverage exposure
|
$
|
3,319,183
|
|
(a)
|
Goodwill and other intangible assets are net of any associated deferred tax liabilities.
|
Six months ended June 30, (in millions)
|
2014
|
||
Basel I CET1 capital at December 31, 2013
|
$
|
148,887
|
|
Effect of rule changes
(a)
|
2,315
|
|
|
Basel III Advanced Fully Phased-In CET1 capital at December 31, 2013
|
151,202
|
|
|
Net income applicable to common equity
|
10,764
|
|
|
Dividends declared on common stock
|
(3,023
|
)
|
|
Net purchase of treasury stock
|
(200
|
)
|
|
Changes in capital surplus
|
(949
|
)
|
|
Changes related to AOCI
|
2,112
|
|
|
Adjustment related to FVA/DVA on structured notes and OTC derivatives
|
614
|
|
|
Other
|
79
|
|
|
Increase in CET1 capital
|
9,397
|
|
|
Basel III Advanced Fully Phased-In CET1 capital at June 30, 2014
|
$
|
160,599
|
|
|
|
||
Basel I Tier 1 capital at December 31, 2013
|
$
|
165,663
|
|
Effect of rule changes
(b)
|
(3,295
|
)
|
|
Basel III Advanced Fully Phased-In Tier 1 capital at December 31, 2013
|
162,368
|
|
|
Change in CET1 capital
|
9,397
|
|
|
Net issuance of noncumulative perpetual preferred stock
|
7,305
|
|
|
Other
|
(145
|
)
|
|
Increase in Tier 1 capital
|
16,557
|
|
|
Basel III Advanced Fully Phased-In Tier 1 capital at June 30, 2014
|
$
|
178,925
|
|
|
|
||
Basel I Tier 2 capital at December 31, 2013
|
$
|
33,623
|
|
Effect of rule changes
(c)
|
(11,644
|
)
|
|
Basel III Advanced Fully Phased-In Tier 2 capital at December 31, 2013
|
21,979
|
|
|
Change in long-term debt and other instruments qualifying as Tier 2
|
(1,379
|
)
|
|
Change in allowance for credit losses
|
(721
|
)
|
|
Other
|
630
|
|
|
Decrease in Tier 2 capital
|
(1,470
|
)
|
|
Basel III Advanced Fully Phased-In Tier 2 capital at June 30, 2014
|
$
|
20,509
|
|
Basel III Advanced Fully Phased-In Total capital at June 30, 2014
|
$
|
199,434
|
|
(a)
|
Predominantly represents: (1) the addition of certain exposures, which were deducted from capital under Basel I, that are risk-weighted under Basel III; (2) adjustments related to AOCI for AFS securities and defined benefit pension and OPEB plans; and (3) a deduction for deferred tax assets related to net operating loss and foreign tax credit carryforwards.
|
(b)
|
Predominantly represents the exclusion of TruPS from Tier 1 capital under Basel III.
|
(c)
|
Predominantly represents a change in the calculation of qualifying allowance for credit losses under Basel III.
|
|
Six Months ended June 30, 2014
|
||||||||||||||
(in billions)
|
Credit risk RWA
|
|
Market risk RWA
|
|
Operational risk RWA
|
|
Total RWA
|
||||||||
Basel I RWA at December 31, 2013
|
$
|
1,223
|
|
|
$
|
165
|
|
|
NA
|
|
|
$
|
1,388
|
|
|
Effect of rule changes
(a)
|
(168
|
)
|
|
(4
|
)
|
|
375
|
|
|
203
|
|
||||
Basel III Advanced Fully Phased-In RWA at December 31, 2013
|
1,055
|
|
|
161
|
|
|
375
|
|
|
1,591
|
|
||||
Model & data changes
(b)
|
49
|
|
|
39
|
|
|
25
|
|
|
113
|
|
||||
Portfolio runoff
(c)
|
(10
|
)
|
|
(19
|
)
|
|
—
|
|
|
(29
|
)
|
||||
Movement in portfolio levels
(d)
|
(31
|
)
|
|
(3
|
)
|
|
—
|
|
|
(34
|
)
|
||||
Increase in RWA
|
8
|
|
|
17
|
|
|
25
|
|
|
50
|
|
||||
Basel III Advanced Fully Phased-In RWA at June 30, 2014
|
$
|
1,063
|
|
|
$
|
178
|
|
|
$
|
400
|
|
|
$
|
1,641
|
|
(a)
|
Effect of rule changes refers to movements in levels of RWA as a result of changing to calculating RWA under the Basel III Advanced Fully Phased-In rules. See Regulatory capital on
pages 74–78
for additional information on the calculation of RWA under Basel III.
|
(b)
|
Model & data changes refer to movements in levels of 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 in legacy portfolios.
|
(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.
|
June 30, 2014
(in millions, except ratios)
|
|
||
Estimated Basel III Fully Phased-In CET1 capital
|
$
|
160,599
|
|
Adjustments related to AOCI
(a)
|
(2,860
|
)
|
|
Adjustment for deferred tax assets related to net operating loss and foreign tax credit carryforwards
|
572
|
|
|
All other adjustments
(b)
|
1,775
|
|
|
Basel III Transitional CET1 capital
|
$
|
160,086
|
|
Basel III Advanced Transitional RWA
(c)
|
$
|
1,626,427
|
|
(a)
|
Includes the remaining balance of AOCI related to AFS securities and employee benefit plans that will qualify as Basel III CET1 capital upon full phase-in but are not included in Basel III Transitional CET1 capital.
|
(b)
|
Predominantly includes identified intangible assets and DVA/FVA on structured notes and OTC derivatives related to the Firm’s own credit quality that will no longer qualify as Basel III CET1 capital upon full
|
(c)
|
The difference between the calculation of the Firm’s Basel III Advanced Fully Phased-In RWA and its Basel III Advanced Transitional RWA is predominantly due to a change in the risk-weighting of MSRs.
|
|
June 30, 2014
|
|
|
|
|
|||||
|
Basel III Standardized Transitional
|
Basel III Advanced Transitional
|
|
Minimum capital ratios
(b)
|
Well-capitalized ratios
(c)
|
|
||||
Risk-based capital ratios
(a)
:
|
|
|
|
|
|
|
||||
CET1 capital
|
11.0
|
%
|
9.8
|
%
|
|
4.0
|
%
|
NA
|
|
(d)
|
Tier 1 capital
|
12.3
|
|
11.1
|
|
|
5.5
|
|
6.0
|
%
|
|
Total capital
|
14.7
|
|
12.5
|
|
|
8.0
|
|
10.0
|
|
|
Leverage ratio:
|
|
|
|
|
|
|
||||
Tier 1 leverage
|
7.6
|
|
7.6
|
|
|
4.0
|
|
5.0
|
|
|
(a)
|
The lower of the Standardized Transitional or Advanced Transitional ratio represents the Collins Floor.
|
(b)
|
Represents the minimum capital ratios for 2014 currently applicable to the Firm under Basel III.
|
(c)
|
Represents the minimum capital ratios for 2014 currently applicable to the Firm under the PCA requirements of the FDICIA.
|
(d)
|
In addition to the 2014 well-capitalized standards, beginning January 1, 2015, Basel III Transitional CET1 capital, and the Basel III Standardized Transitional and the Basel III Advanced Transitional CET1 capital ratios become relevant capital measures under the prompt corrective action requirements defined by the regulations.
|
Line of business equity
|
|
|
||||||
(in billions)
|
|
June 30, 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
|
|
73.9
|
|
|
75.0
|
|
||
Total common stockholders’ equity
|
|
$
|
208.9
|
|
|
$
|
200.0
|
|
Line of business equity
|
|
Quarterly average
|
||||||||||
(in billions)
|
|
2Q14
|
|
|
4Q13
|
|
|
2Q13
|
|
|||
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
|
|
71.2
|
|
|
71.4
|
|
|
72.3
|
|
|||
Total common stockholders’ equity
|
|
$
|
206.2
|
|
|
$
|
196.4
|
|
|
$
|
197.3
|
|
LIQUIDITY RISK MANAGEMENT
|
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||
Deposits
|
June 30,
|
December 31,
|
|
Average
|
|
Average
|
||||||||||||||
(in millions)
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
||||||||||||
Consumer & Community Banking
|
$
|
488,681
|
|
$
|
464,412
|
|
|
$
|
486,064
|
|
$
|
453,586
|
|
|
$
|
478,862
|
|
$
|
447,494
|
|
Corporate & Investment Bank
|
463,898
|
|
446,237
|
|
|
402,532
|
|
370,189
|
|
|
406,853
|
|
363,369
|
|
||||||
Commercial Banking
|
202,966
|
|
206,127
|
|
|
186,369
|
|
181,844
|
|
|
187,571
|
|
182,020
|
|
||||||
Asset Management
|
145,655
|
|
146,183
|
|
|
147,747
|
|
136,577
|
|
|
148,585
|
|
138,001
|
|
||||||
Corporate/Private Equity
|
18,551
|
|
24,806
|
|
|
21,287
|
|
31,437
|
|
|
22,268
|
|
27,907
|
|
||||||
Total Firm
|
$
|
1,319,751
|
|
$
|
1,287,765
|
|
|
$
|
1,243,999
|
|
$
|
1,173,633
|
|
|
$
|
1,244,139
|
|
$
|
1,158,791
|
|
|
June 30, 2014
|
December 31, 2013
|
|
Three months ended June 30,
|
|
Six months ended
June 30,
|
||||||||||||||
Sources of funds (excluding deposits)
|
|
Average
|
|
Average
|
||||||||||||||||
(in millions)
|
|
2014
|
2013
|
|
2014
|
2013
|
||||||||||||||
Commercial paper:
|
|
|
|
|
|
|
|
|
||||||||||||
Wholesale funding
|
$
|
18,445
|
|
$
|
17,249
|
|
|
$
|
18,559
|
|
$
|
19,352
|
|
|
$
|
18,791
|
|
$
|
18,426
|
|
Client cash management
|
45,359
|
|
40,599
|
|
|
41,201
|
|
35,039
|
|
|
40,433
|
|
35,315
|
|
||||||
Total commercial paper
|
$
|
63,804
|
|
$
|
57,848
|
|
|
$
|
59,760
|
|
$
|
54,391
|
|
|
$
|
59,224
|
|
$
|
53,741
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other borrowed funds
|
$
|
34,713
|
|
$
|
27,994
|
|
|
$
|
32,720
|
|
$
|
33,618
|
|
|
$
|
31,085
|
|
$
|
30,600
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities loaned or sold under agreements to repurchase:
|
|
|
|
|
|
|
|
|
||||||||||||
Securities sold under agreements to repurchase
|
$
|
192,541
|
|
$
|
155,808
|
|
|
$
|
184,724
|
|
$
|
231,358
|
|
|
$
|
178,520
|
|
$
|
225,355
|
|
Securities loaned
|
20,501
|
|
19,509
|
|
|
23,631
|
|
28,346
|
|
|
23,189
|
|
27,591
|
|
||||||
Total securities loaned or sold under agreements to repurchase
(a)(b)(c)
|
$
|
213,042
|
|
$
|
175,317
|
|
|
$
|
208,355
|
|
$
|
259,704
|
|
|
$
|
201,709
|
|
$
|
252,946
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total senior notes
|
$
|
140,015
|
|
$
|
135,754
|
|
|
$
|
139,722
|
|
$
|
140,573
|
|
|
$
|
138,716
|
|
$
|
138,119
|
|
Trust preferred securities
|
5,474
|
|
5,445
|
|
|
5,468
|
|
7,472
|
|
|
5,462
|
|
8,922
|
|
||||||
Subordinated debt
|
29,200
|
|
29,578
|
|
|
29,053
|
|
27,426
|
|
|
29,227
|
|
26,956
|
|
||||||
Structured notes
|
30,878
|
|
28,603
|
|
|
30,403
|
|
29,666
|
|
|
29,676
|
|
29,959
|
|
||||||
Total long-term unsecured funding
|
$
|
205,567
|
|
$
|
199,380
|
|
|
$
|
204,646
|
|
$
|
205,137
|
|
|
$
|
203,081
|
|
$
|
203,956
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Credit card securitization
|
$
|
28,439
|
|
$
|
26,580
|
|
|
$
|
29,377
|
|
$
|
28,447
|
|
|
$
|
28,472
|
|
$
|
28,391
|
|
Other securitizations
(d)
|
3,068
|
|
3,253
|
|
|
3,151
|
|
3,563
|
|
|
3,196
|
|
3,614
|
|
||||||
FHLB advances
|
60,385
|
|
61,876
|
|
|
61,189
|
|
59,463
|
|
|
61,246
|
|
52,438
|
|
||||||
Other long-term secured funding
(e)
|
3,977
|
|
6,633
|
|
|
5,359
|
|
6,196
|
|
|
5,976
|
|
6,212
|
|
||||||
Total long-term secured funding
|
$
|
95,869
|
|
$
|
98,342
|
|
|
$
|
99,076
|
|
$
|
97,669
|
|
|
$
|
98,890
|
|
$
|
90,655
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Preferred stock
(f)
|
$
|
18,463
|
|
$
|
11,158
|
|
|
$
|
15,763
|
|
$
|
11,095
|
|
|
$
|
14,666
|
|
$
|
10,355
|
|
Common stockholders’ equity
(f)
|
$
|
208,851
|
|
$
|
200,020
|
|
|
$
|
206,159
|
|
$
|
197,283
|
|
|
$
|
203,989
|
|
$
|
196,016
|
|
(a)
|
Excludes federal funds purchased.
|
(b)
|
Excluded long-term structured repurchase agreements of
$2.4 billion
and
$4.6 billion
as of
June 30, 2014
, and December 31, 2013, respectively, and average balance of
$3.7 billion
and
$3.3 billion
for the three months ended
June 30, 2014
and 2013, respectively, and
$4.4 billion
and
$3.3 billion
for the six months ended June 30, 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, or for the three months ended,
June 30, 2014
. Excluded average balance of
$453 million
for the three months ended June 30, 2013, and
$48 million
and
$454 million
for the six months ended June 30, 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 74–80
and the Consolidated Statements of Changes in Stockholders’ Equity on
page 93
of this Form 10-Q, and Note 22 and Note 23 of JPMorgan Chase’s 2013 Annual Report.
|
Long-term unsecured funding
|
Three months
ended June 30, |
Six months
ended June 30, |
||||||||||
(in millions)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Issuance
|
|
|
|
|
||||||||
Senior notes issued in the U.S. market
|
$
|
3,991
|
|
$
|
5,434
|
|
$
|
13,478
|
|
$
|
18,832
|
|
Senior notes issued in non-U.S. markets
|
1,618
|
|
5,419
|
|
5,466
|
|
6,774
|
|
||||
Total senior notes
|
5,609
|
|
10,853
|
|
18,944
|
|
25,606
|
|
||||
Subordinated debt
|
—
|
|
1,989
|
|
—
|
|
1,989
|
|
||||
Structured notes
|
4,569
|
|
4,619
|
|
10,305
|
|
9,664
|
|
||||
Total long-term unsecured funding – issuance
|
$
|
10,178
|
|
$
|
17,461
|
|
$
|
29,249
|
|
$
|
37,259
|
|
|
|
|
|
|
||||||||
Maturities/redemptions
|
|
|
|
|
||||||||
Total senior notes
|
$
|
8,583
|
|
$
|
9,506
|
|
$
|
17,400
|
|
$
|
13,513
|
|
Trust preferred securities
|
—
|
|
5,052
|
|
—
|
|
5,052
|
|
||||
Subordinated debt
|
—
|
|
—
|
|
600
|
|
2,417
|
|
||||
Structured notes
|
4,034
|
|
4,668
|
|
8,850
|
|
9,478
|
|
||||
Total long-term unsecured funding – maturities/redemptions
|
$
|
12,617
|
|
$
|
19,226
|
|
$
|
26,850
|
|
$
|
30,460
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||||||||
Long-term secured funding
|
Issuance
|
|
Maturities/Redemptions
|
|
Issuance
|
|
Maturities/Redemptions
|
||||||||||||||||||||
(in millions)
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
||||||||||||||||
Credit card securitization
|
$
|
3,800
|
|
$
|
2,860
|
|
|
$
|
2,473
|
|
$
|
2,147
|
|
|
$
|
5,550
|
|
$
|
4,760
|
|
|
$
|
3,774
|
|
$
|
6,265
|
|
Other securitizations
(a)
|
—
|
|
—
|
|
|
93
|
|
119
|
|
|
—
|
|
—
|
|
|
185
|
|
220
|
|
||||||||
FHLB advances
|
—
|
|
4,850
|
|
|
1,481
|
|
2
|
|
|
1,000
|
|
19,550
|
|
|
2,490
|
|
706
|
|
||||||||
Other long-term secured funding
|
$
|
293
|
|
$
|
69
|
|
|
$
|
2,899
|
|
$
|
23
|
|
|
$
|
333
|
|
$
|
195
|
|
|
$
|
2,996
|
|
$
|
116
|
|
Total long-term secured funding
|
$
|
4,093
|
|
$
|
7,779
|
|
|
$
|
6,946
|
|
$
|
2,291
|
|
|
$
|
6,883
|
|
$
|
24,505
|
|
|
$
|
9,445
|
|
$
|
7,307
|
|
(a)
|
Other securitizations includes securitizations of residential mortgages and student loans.
|
(in billions)
|
June 30, 2014
|
||
HQLA
(a)
|
|
||
Eligible cash
(b)
|
$
|
348
|
|
Eligible securities
(c)
|
228
|
|
|
Total HQLA
|
$
|
576
|
|
(a)
|
HQLA under the proposed U.S. LCR is estimated to be lower than the total HQLA shown 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
|
||||||
June 30, 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
|
•
|
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
$2.0 billion
.
|
June 30, 2014
(in billions, except ratio data)
|
Total assets at fair value
|
Total level 3 assets
|
|||||
Trading debt and equity instruments
|
$
|
330.2
|
|
|
$
|
25.8
|
|
Derivative receivables
|
62.3
|
|
|
12.5
|
|
||
Trading assets
|
392.5
|
|
|
38.3
|
|
||
AFS securities
|
314.1
|
|
|
1.8
|
|
||
Loans
|
4.3
|
|
|
4.2
|
|
||
MSRs
|
8.3
|
|
|
8.3
|
|
||
Private equity investments
|
5.5
|
|
|
4.9
|
|
||
Other
|
37.4
|
|
|
2.9
|
|
||
Total assets measured
at fair value on a recurring basis
|
762.1
|
|
|
60.4
|
|
||
Total assets measured at fair value on a nonrecurring basis
|
3.4
|
|
|
2.8
|
|
||
Total assets measured
at fair value
|
$
|
765.5
|
|
|
$
|
63.2
|
|
Total Firm assets
|
$
|
2,520.3
|
|
|
|
||
Level 3 assets as a percentage of total Firm assets
|
|
|
2.5
|
%
|
|||
Level 3 assets as a percentage of total Firm assets at fair value
|
|
|
8.3
|
%
|
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
June 30,
|
|
Six months ended
June 30,
|
||||||||||||
(in millions, except per share data)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Revenue
|
|
|
|
|
|
|
|
|
||||||||
Investment banking fees
|
|
$
|
1,751
|
|
|
$
|
1,717
|
|
|
$
|
3,171
|
|
|
$
|
3,162
|
|
Principal transactions
|
|
2,908
|
|
|
3,760
|
|
|
6,230
|
|
|
7,521
|
|
||||
Lending- and deposit-related fees
|
|
1,463
|
|
|
1,489
|
|
|
2,868
|
|
|
2,957
|
|
||||
Asset management, administration and commissions
|
|
4,007
|
|
|
3,865
|
|
|
7,843
|
|
|
7,464
|
|
||||
Securities gains
(a)
|
|
12
|
|
|
124
|
|
|
42
|
|
|
633
|
|
||||
Mortgage fees and related income
|
|
1,291
|
|
|
1,823
|
|
|
1,805
|
|
|
3,275
|
|
||||
Credit card income
|
|
1,549
|
|
|
1,503
|
|
|
2,957
|
|
|
2,922
|
|
||||
Other income
|
|
675
|
|
|
226
|
|
|
1,066
|
|
|
762
|
|
||||
Noninterest revenue
|
|
13,656
|
|
|
14,507
|
|
|
25,982
|
|
|
28,696
|
|
||||
Interest income
|
|
12,861
|
|
|
13,072
|
|
|
25,654
|
|
|
26,437
|
|
||||
Interest expense
|
|
2,063
|
|
|
2,368
|
|
|
4,189
|
|
|
4,800
|
|
||||
Net interest income
|
|
10,798
|
|
|
10,704
|
|
|
21,465
|
|
|
21,637
|
|
||||
Total net revenue
|
|
24,454
|
|
|
25,211
|
|
|
47,447
|
|
|
50,333
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Provision for credit losses
|
|
692
|
|
|
47
|
|
|
1,542
|
|
|
664
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Noninterest expense
|
|
|
|
|
|
|
|
|
||||||||
Compensation expense
|
|
7,610
|
|
|
8,019
|
|
|
15,469
|
|
|
16,433
|
|
||||
Occupancy expense
|
|
973
|
|
|
904
|
|
|
1,925
|
|
|
1,805
|
|
||||
Technology, communications and equipment expense
|
|
1,433
|
|
|
1,361
|
|
|
2,844
|
|
|
2,693
|
|
||||
Professional and outside services
|
|
1,932
|
|
|
1,901
|
|
|
3,718
|
|
|
3,635
|
|
||||
Marketing
|
|
650
|
|
|
578
|
|
|
1,214
|
|
|
1,167
|
|
||||
Other expense
|
|
2,701
|
|
|
2,951
|
|
|
4,634
|
|
|
5,252
|
|
||||
Amortization of intangibles
|
|
132
|
|
|
152
|
|
|
263
|
|
|
304
|
|
||||
Total noninterest expense
|
|
15,431
|
|
|
15,866
|
|
|
30,067
|
|
|
31,289
|
|
||||
Income before income tax expense
|
|
8,331
|
|
|
9,298
|
|
|
15,838
|
|
|
18,380
|
|
||||
Income tax expense
|
|
2,346
|
|
|
2,802
|
|
|
4,579
|
|
|
5,355
|
|
||||
Net income
|
|
$
|
5,985
|
|
|
$
|
6,496
|
|
|
$
|
11,259
|
|
|
$
|
13,025
|
|
Net income applicable to common stockholders
|
|
$
|
5,573
|
|
|
$
|
6,101
|
|
|
$
|
10,470
|
|
|
$
|
12,232
|
|
Net income per common share data
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
|
$
|
1.47
|
|
|
$
|
1.61
|
|
|
$
|
2.77
|
|
|
$
|
3.22
|
|
Diluted earnings per share
|
|
1.46
|
|
|
1.60
|
|
|
2.74
|
|
|
3.19
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average basic shares
|
|
3,780.6
|
|
|
3,782.4
|
|
|
3,783.9
|
|
|
3,800.3
|
|
||||
Weighted-average diluted shares
|
|
3,812.5
|
|
|
3,814.3
|
|
|
3,818.1
|
|
|
3,830.6
|
|
||||
Cash dividends declared per common share
|
|
$
|
0.40
|
|
|
$
|
0.38
|
|
|
$
|
0.78
|
|
|
$
|
0.68
|
|
(a)
|
The Firm recognized other-than-temporary impairment (“OTTI”) losses related to securities the Firm intends to sell of
$2 million
for the six months ended June 30, 2014; the Firm did not recognize OTTI losses for the three months ended June 30, 2014. The Firm recognized OTTI losses of
$6 million
for the three and six months ended June 30, 2013.
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
||||||||||||
(in millions)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Net income
|
|
$
|
5,985
|
|
|
$
|
6,496
|
|
|
$
|
11,259
|
|
|
$
|
13,025
|
|
Other comprehensive income/(loss), after-tax
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gains/(losses) on investment securities
|
|
1,075
|
|
|
(3,091
|
)
|
|
2,069
|
|
|
(3,731
|
)
|
||||
Translation adjustments, net of hedges
|
|
12
|
|
|
(38
|
)
|
|
10
|
|
|
(51
|
)
|
||||
Cash flow hedges
|
|
68
|
|
|
(290
|
)
|
|
127
|
|
|
(352
|
)
|
||||
Defined benefit pension and OPEB plans
|
|
7
|
|
|
64
|
|
|
33
|
|
|
168
|
|
||||
Total other comprehensive income/(loss), after-tax
|
|
1,162
|
|
|
(3,355
|
)
|
|
2,239
|
|
|
(3,966
|
)
|
||||
Comprehensive income
|
|
$
|
7,147
|
|
|
$
|
3,141
|
|
|
$
|
13,498
|
|
|
$
|
9,059
|
|
(in millions, except share data)
|
Jun 30, 2014
|
|
Dec 31, 2013
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
27,523
|
|
|
$
|
39,771
|
|
Deposits with banks
|
393,909
|
|
|
316,051
|
|
||
Federal funds sold and securities purchased under resale agreements (included
$27,837
and $25,135 at fair value)
|
248,149
|
|
|
248,116
|
|
||
Securities borrowed (included
$2,134
and $3,739 at fair value)
|
113,967
|
|
|
111,465
|
|
||
Trading assets (included assets pledged of
$128,995
and $106,299)
|
392,543
|
|
|
374,664
|
|
||
Securities (included
$314,069
and $329,977 at fair value and assets pledged of
$33,449
and $23,446)
|
361,918
|
|
|
354,003
|
|
||
Loans (included
$4,303
and $2,011 at fair value)
|
746,983
|
|
|
738,418
|
|
||
Allowance for loan losses
|
(15,326
|
)
|
|
(16,264
|
)
|
||
Loans, net of allowance for loan losses
|
731,657
|
|
|
722,154
|
|
||
Accrued interest and accounts receivable
|
77,096
|
|
|
65,160
|
|
||
Premises and equipment
|
15,216
|
|
|
14,891
|
|
||
Goodwill
|
48,110
|
|
|
48,081
|
|
||
Mortgage servicing rights
|
8,347
|
|
|
9,614
|
|
||
Other intangible assets
|
1,339
|
|
|
1,618
|
|
||
Other assets (included
$12,893
and $15,187 at fair value and assets pledged of
$386
and $2,066)
|
100,562
|
|
|
110,101
|
|
||
Total assets
(a)
|
$
|
2,520,336
|
|
|
$
|
2,415,689
|
|
Liabilities
|
|
|
|
||||
Deposits (included
$7,922
and $6,624 at fair value)
|
$
|
1,319,751
|
|
|
$
|
1,287,765
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements (included
$2,630
and $5,426 at fair value)
|
216,561
|
|
|
181,163
|
|
||
Commercial paper
|
63,804
|
|
|
57,848
|
|
||
Other borrowed funds (included
$15,403
and $13,306 at fair value)
|
34,713
|
|
|
27,994
|
|
||
Trading liabilities
|
138,656
|
|
|
137,744
|
|
||
Accounts payable and other liabilities (included
$45
and $25 at fair value)
|
203,885
|
|
|
194,491
|
|
||
Beneficial interests issued by consolidated variable interest entities (included
$2,094
and $1,996 at fair value)
|
45,723
|
|
|
49,617
|
|
||
Long-term debt (included
$31,142
and $28,878 at fair value)
|
269,929
|
|
|
267,889
|
|
||
Total liabilities
(a)
|
2,293,022
|
|
|
2,204,511
|
|
||
Commitments and contingencies (see Notes 21 and 23)
|
|
|
|
||||
Stockholders’ equity
|
|
|
|
||||
Preferred stock ($1 par value; authorized 200,000,000 shares; issued
1,846,250
and 1,115,750 shares)
|
18,463
|
|
|
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
|
92,879
|
|
|
93,828
|
|
||
Retained earnings
|
123,497
|
|
|
115,756
|
|
||
Accumulated other comprehensive income/(loss)
|
3,438
|
|
|
1,199
|
|
||
Shares held in RSU Trust, at cost (472,953
and 476,642 shares)
|
(21
|
)
|
|
(21
|
)
|
||
Treasury stock, at cost (343,652,985
and 348,825,583 shares)
|
(15,047
|
)
|
|
(14,847
|
)
|
||
Total stockholders’ equity
|
227,314
|
|
|
211,178
|
|
||
Total liabilities and stockholders’ equity
|
$
|
2,520,336
|
|
|
$
|
2,415,689
|
|
(a)
|
The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at
June 30, 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)
|
Jun 30, 2014
|
|
Dec 31, 2013
|
||||
Assets
|
|
|
|
||||
Trading assets
|
$
|
6,006
|
|
|
$
|
6,366
|
|
Loans
|
64,598
|
|
|
70,072
|
|
||
All other assets
|
2,048
|
|
|
2,168
|
|
||
Total assets
|
$
|
72,652
|
|
|
$
|
78,606
|
|
Liabilities
|
|
|
|
||||
Beneficial interests issued by consolidated variable interest entities
|
$
|
45,723
|
|
|
$
|
49,617
|
|
All other liabilities
|
1,027
|
|
|
1,061
|
|
||
Total liabilities
|
$
|
46,750
|
|
|
$
|
50,678
|
|
|
|
Six months ended June 30,
|
||||||
(in millions, except per share data)
|
|
2014
|
|
2013
|
||||
Preferred stock
|
|
|
|
|
||||
Balance at January 1
|
|
$
|
11,158
|
|
|
$
|
9,058
|
|
Issuance of preferred stock
|
|
7,305
|
|
|
2,400
|
|
||
Balance at June 30
|
|
18,463
|
|
|
11,458
|
|
||
Common stock
|
|
|
|
|
||||
Balance at January 1 and June 30
|
|
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
|
|
(901
|
)
|
|
(1,164
|
)
|
||
Other
|
|
(48
|
)
|
|
(24
|
)
|
||
Balance at June 30
|
|
92,879
|
|
|
93,416
|
|
||
Retained earnings
|
|
|
|
|
||||
Balance at January 1
|
|
115,756
|
|
|
104,223
|
|
||
Net income
|
|
11,259
|
|
|
13,025
|
|
||
Dividends declared:
|
|
|
|
|
||||
Preferred stock
|
|
(495
|
)
|
|
(386
|
)
|
||
Common stock (
$0.78
and $0.68 per share)
|
|
(3,023
|
)
|
|
(2,646
|
)
|
||
Balance at June 30
|
|
123,497
|
|
|
114,216
|
|
||
Accumulated other comprehensive income
|
|
|
|
|
||||
Balance at January 1
|
|
1,199
|
|
|
4,102
|
|
||
Other comprehensive income/(loss)
|
|
2,239
|
|
|
(3,966
|
)
|
||
Balance at June 30
|
|
3,438
|
|
|
136
|
|
||
Shares held in RSU Trust, at cost
|
|
|
|
|
||||
Balance at January 1 and June 30
|
|
(21
|
)
|
|
(21
|
)
|
||
Treasury stock, at cost
|
|
|
|
|
||||
Balance at January 1
|
|
(14,847
|
)
|
|
(12,002
|
)
|
||
Purchase of treasury stock
|
|
(1,761
|
)
|
|
(3,750
|
)
|
||
Reissuance from treasury stock
|
|
1,561
|
|
|
1,681
|
|
||
Balance at June 30
|
|
(15,047
|
)
|
|
(14,071
|
)
|
||
Total stockholders
’
equity
|
|
$
|
227,314
|
|
|
$
|
209,239
|
|
|
Six months ended June 30,
|
||||||
(in millions)
|
2014
|
|
2013
|
||||
Operating activities
|
|
|
|
||||
Net income
|
$
|
11,259
|
|
|
$
|
13,025
|
|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
|
|
|
||||
Provision for credit losses
|
1,542
|
|
|
664
|
|
||
Depreciation and amortization
|
2,163
|
|
|
2,105
|
|
||
Amortization of intangibles
|
263
|
|
|
304
|
|
||
Deferred tax expense
|
2,467
|
|
|
2,167
|
|
||
Investment securities gains
|
(42
|
)
|
|
(633
|
)
|
||
Stock-based compensation
|
1,142
|
|
|
1,227
|
|
||
Originations and purchases of loans held-for-sale
|
(34,940
|
)
|
|
(44,974
|
)
|
||
Proceeds from sales, securitizations and paydowns of loans held-for-sale
|
38,853
|
|
|
46,924
|
|
||
Net change in:
|
|
|
|
||||
Trading assets
|
(14,764
|
)
|
|
68,142
|
|
||
Securities borrowed
|
(2,507
|
)
|
|
1,877
|
|
||
Accrued interest and accounts receivable
|
(11,220
|
)
|
|
(19,483
|
)
|
||
Other assets
|
17,214
|
|
|
(7,250
|
)
|
||
Trading liabilities
|
(7,140
|
)
|
|
8,194
|
|
||
Accounts payable and other liabilities
|
1,736
|
|
|
19,768
|
|
||
Other operating adjustments
|
4,270
|
|
|
(3,573
|
)
|
||
Net cash provided by operating activities
|
10,296
|
|
|
88,484
|
|
||
Investing activities
|
|
|
|
||||
Net change in:
|
|
|
|
||||
Deposits with banks
|
(77,858
|
)
|
|
(189,630
|
)
|
||
Federal funds sold and securities purchased under resale agreements
|
(1,427
|
)
|
|
43,431
|
|
||
Held-to-maturity securities:
|
|
|
|
||||
Proceeds from paydowns and maturities
|
1,667
|
|
|
1
|
|
||
Purchases
|
(6,312
|
)
|
|
—
|
|
||
Available-for-sale securities:
|
|
|
|
||||
Proceeds from paydowns and maturities
|
41,248
|
|
|
52,646
|
|
||
Proceeds from sales
|
14,976
|
|
|
38,053
|
|
||
Purchases
|
(54,227
|
)
|
|
(87,180
|
)
|
||
Proceeds from sales and securitizations of loans held-for-investment
|
9,170
|
|
|
6,087
|
|
||
Other changes in loans, net
|
(24,730
|
)
|
|
(3,785
|
)
|
||
Net cash used in business acquisitions or dispositions
|
(19
|
)
|
|
(45
|
)
|
||
All other investing activities, net
|
(426
|
)
|
|
(1,823
|
)
|
||
Net cash used in investing activities
|
(97,938
|
)
|
|
(142,245
|
)
|
||
Financing activities
|
|
|
|
||||
Net change in:
|
|
|
|
||||
Deposits
|
33,419
|
|
|
(6,299
|
)
|
||
Federal funds purchased and securities loaned or sold under repurchase agreements
|
35,364
|
|
|
18,904
|
|
||
Commercial paper and other borrowed funds
|
11,119
|
|
|
4,927
|
|
||
Beneficial interests issued by consolidated variable interest entities
|
(5,665
|
)
|
|
(6,230
|
)
|
||
Proceeds from long-term borrowings and trust preferred securities
|
36,469
|
|
|
62,016
|
|
||
Payments of long-term borrowings and trust preferred securities
|
(36,628
|
)
|
|
(38,111
|
)
|
||
Excess tax benefits related to stock-based compensation
|
357
|
|
|
88
|
|
||
Proceeds from issuance of preferred stock
|
7,249
|
|
|
2,376
|
|
||
Treasury stock purchased
|
(1,761
|
)
|
|
(3,750
|
)
|
||
Dividends paid
|
(3,360
|
)
|
|
(2,727
|
)
|
||
All other financing activities, net
|
(1,127
|
)
|
|
(1,086
|
)
|
||
Net cash provided by financing activities
|
75,436
|
|
|
30,108
|
|
||
Effect of exchange rate changes on cash and due from banks
|
(42
|
)
|
|
(856
|
)
|
||
Net decrease in cash and due from banks
|
(12,248
|
)
|
|
(24,509
|
)
|
||
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
|
$
|
27,523
|
|
|
$
|
29,214
|
|
Cash interest paid
|
$
|
4,007
|
|
|
$
|
4,735
|
|
Cash income taxes (refunded)/paid, net
|
(739
|
)
|
|
2,684
|
|
See Glossary of Terms 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
|
|
|||||||||||||
June 30, 2014 (in millions)
|
Level 1
|
Level 2
|
|
Level 3
|
|
Total fair value
|
|||||||||||
Federal funds sold and securities purchased under resale agreements
|
$
|
—
|
|
$
|
27,837
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
27,837
|
|
Securities borrowed
|
—
|
|
2,134
|
|
|
—
|
|
|
—
|
|
2,134
|
|
|||||
Trading assets:
|
|
|
|
|
|
|
|
||||||||||
Debt instruments:
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||||
U.S. government agencies
(a)
|
9
|
|
25,682
|
|
|
1,125
|
|
|
—
|
|
26,816
|
|
|||||
Residential – nonagency
|
—
|
|
1,622
|
|
|
543
|
|
|
—
|
|
2,165
|
|
|||||
Commercial – nonagency
|
—
|
|
1,265
|
|
|
327
|
|
|
—
|
|
1,592
|
|
|||||
Total mortgage-backed securities
|
9
|
|
28,569
|
|
|
1,995
|
|
|
—
|
|
30,573
|
|
|||||
U.S. Treasury and government agencies
(a)
|
27,221
|
|
6,893
|
|
|
—
|
|
|
—
|
|
34,114
|
|
|||||
Obligations of U.S. states and municipalities
|
—
|
|
6,413
|
|
|
1,079
|
|
|
—
|
|
7,492
|
|
|||||
Certificates of deposit, bankers’ acceptances and commercial paper
|
—
|
|
1,918
|
|
|
—
|
|
|
—
|
|
1,918
|
|
|||||
Non-U.S. government debt securities
|
28,957
|
|
25,865
|
|
|
128
|
|
|
—
|
|
54,950
|
|
|||||
Corporate debt securities
|
—
|
|
27,357
|
|
|
4,793
|
|
|
—
|
|
32,150
|
|
|||||
Loans
(b)
|
—
|
|
19,669
|
|
|
13,521
|
|
|
—
|
|
33,190
|
|
|||||
Asset-backed securities
|
—
|
|
3,090
|
|
|
1,216
|
|
|
—
|
|
4,306
|
|
|||||
Total debt instruments
|
56,187
|
|
119,774
|
|
|
22,732
|
|
|
—
|
|
198,693
|
|
|||||
Equity securities
|
112,284
|
|
846
|
|
|
704
|
|
|
—
|
|
113,834
|
|
|||||
Physical commodities
(c)
|
5,337
|
|
4,212
|
|
|
3
|
|
|
—
|
|
9,552
|
|
|||||
Other
|
—
|
|
5,745
|
|
|
2,341
|
|
|
—
|
|
8,086
|
|
|||||
Total debt and equity instruments
(d)
|
173,808
|
|
130,577
|
|
|
25,780
|
|
|
—
|
|
330,165
|
|
|||||
Derivative receivables:
|
|
|
|
|
|
|
|
||||||||||
Interest rate
|
496
|
|
815,033
|
|
|
4,772
|
|
|
(791,472
|
)
|
28,829
|
|
|||||
Credit
|
—
|
|
78,004
|
|
|
3,048
|
|
|
(78,088
|
)
|
2,964
|
|
|||||
Foreign exchange
|
464
|
|
111,149
|
|
|
1,638
|
|
|
(101,626
|
)
|
11,625
|
|
|||||
Equity
|
—
|
|
47,293
|
|
|
2,501
|
|
|
(40,417
|
)
|
9,377
|
|
|||||
Commodity
|
210
|
|
35,344
|
|
|
572
|
|
|
(26,543
|
)
|
9,583
|
|
|||||
Total derivative receivables
(e)
|
1,170
|
|
1,086,823
|
|
|
12,531
|
|
|
(1,038,146
|
)
|
62,378
|
|
|||||
Total trading assets
|
174,978
|
|
1,217,400
|
|
|
38,311
|
|
|
(1,038,146
|
)
|
392,543
|
|
|||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||||
U.S. government agencies
(a)
|
—
|
|
64,512
|
|
|
—
|
|
|
—
|
|
64,512
|
|
|||||
Residential – nonagency
|
—
|
|
58,139
|
|
|
100
|
|
|
—
|
|
58,239
|
|
|||||
Commercial – nonagency
|
—
|
|
17,999
|
|
|
414
|
|
|
—
|
|
18,413
|
|
|||||
Total mortgage-backed securities
|
—
|
|
140,650
|
|
|
514
|
|
|
—
|
|
141,164
|
|
|||||
U.S. Treasury and government agencies
(a)
|
19,230
|
|
129
|
|
|
—
|
|
|
—
|
|
19,359
|
|
|||||
Obligations of U.S. states and municipalities
|
—
|
|
28,086
|
|
|
—
|
|
|
—
|
|
28,086
|
|
|||||
Certificates of deposit
|
—
|
|
1,410
|
|
|
—
|
|
|
—
|
|
1,410
|
|
|||||
Non-U.S. government debt securities
|
26,024
|
|
31,821
|
|
|
—
|
|
|
—
|
|
57,845
|
|
|||||
Corporate debt securities
|
—
|
|
21,356
|
|
|
—
|
|
|
—
|
|
21,356
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||||
Collateralized loan obligations
|
—
|
|
27,652
|
|
|
798
|
|
|
—
|
|
28,450
|
|
|||||
Other
|
—
|
|
12,584
|
|
|
524
|
|
|
—
|
|
13,108
|
|
|||||
Equity securities
|
3,291
|
|
—
|
|
|
—
|
|
|
—
|
|
3,291
|
|
|||||
Total available-for-sale securities
|
48,545
|
|
263,688
|
|
|
1,836
|
|
|
—
|
|
314,069
|
|
|||||
Loans
|
—
|
|
76
|
|
|
4,227
|
|
|
—
|
|
4,303
|
|
|||||
Mortgage servicing rights
|
—
|
|
—
|
|
|
8,347
|
|
|
—
|
|
8,347
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
||||||||||
Private equity investments
(f)
|
339
|
|
318
|
|
|
4,883
|
|
|
—
|
|
5,540
|
|
|||||
All other
|
4,280
|
|
297
|
|
|
2,776
|
|
|
—
|
|
7,353
|
|
|||||
Total other assets
|
4,619
|
|
615
|
|
|
7,659
|
|
|
—
|
|
12,893
|
|
|||||
Total assets measured at fair value on a recurring basis
|
$
|
228,142
|
|
$
|
1,511,750
|
|
(g)
|
$
|
60,380
|
|
(g)
|
$
|
(1,038,146
|
)
|
$
|
762,126
|
|
Deposits
|
$
|
—
|
|
$
|
5,084
|
|
|
$
|
2,838
|
|
|
$
|
—
|
|
$
|
7,922
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
—
|
|
2,630
|
|
|
—
|
|
|
—
|
|
2,630
|
|
|||||
Other borrowed funds
|
—
|
|
13,865
|
|
|
1,538
|
|
|
—
|
|
15,403
|
|
|||||
Trading liabilities:
|
|
|
|
|
|
|
|
|
|||||||||
Debt and equity instruments
(d)
|
69,704
|
|
18,077
|
|
|
80
|
|
|
—
|
|
87,861
|
|
|||||
Derivative payables:
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate
|
612
|
|
783,367
|
|
|
3,239
|
|
|
(772,129
|
)
|
15,089
|
|
|||||
Credit
|
—
|
|
76,642
|
|
|
2,914
|
|
|
(76,724
|
)
|
2,832
|
|
|||||
Foreign exchange
|
481
|
|
111,371
|
|
|
2,832
|
|
|
(103,002
|
)
|
11,682
|
|
|||||
Equity
|
—
|
|
48,817
|
|
|
4,707
|
|
|
(42,500
|
)
|
11,024
|
|
|||||
Commodity
|
121
|
|
36,046
|
|
|
694
|
|
|
(26,693
|
)
|
10,168
|
|
|||||
Total derivative payables
(e)
|
1,214
|
|
1,056,243
|
|
|
14,386
|
|
|
(1,021,048
|
)
|
50,795
|
|
|||||
Total trading liabilities
|
70,918
|
|
1,074,320
|
|
|
14,466
|
|
|
(1,021,048
|
)
|
138,656
|
|
|||||
Accounts payable and other liabilities
|
—
|
|
—
|
|
|
45
|
|
|
—
|
|
45
|
|
|||||
Beneficial interests issued by consolidated VIEs
|
—
|
|
1,032
|
|
|
1,062
|
|
|
—
|
|
2,094
|
|
|||||
Long-term debt
|
—
|
|
19,396
|
|
|
11,746
|
|
|
—
|
|
31,142
|
|
|||||
Total liabilities measured at fair value on a recurring basis
|
$
|
70,918
|
|
$
|
1,116,327
|
|
|
$
|
31,695
|
|
|
$
|
(1,021,048
|
)
|
$
|
197,892
|
|
|
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
June 30, 2014
, and December 31, 2013, included total U.S. government-sponsored enterprise obligations of
$80.6 billion
and
$91.5 billion
, respectively, which were predominantly mortgage-related.
|
(b)
|
At
June 30, 2014
, and December 31, 2013, included within trading loans were
$15.5 billion
and
$14.8 billion
, respectively, of residential first-lien mortgages, and
$4.4 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
$6.6 billion
and
$6.0 billion
, respectively, and reverse mortgages of
$3.7 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
$4.2 billion
and
$7.6 billion
at
June 30, 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
$6.3 billion
and
$8.0 billion
at
June 30, 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
June 30, 2014
, and December 31, 2013, the fair values of these investments were
$2.2 billion
and
$3.2 billion
, respectively, of which
$590 million
and
$899 million
, respectively, were classified in level 2, and
$1.6 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
$389 million
of credit derivative receivables and
$342 million
of credit derivative payables with underlying commercial 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
$1.1 billion
of credit derivative receivables and
$972 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)
|
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.
|
(e)
|
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 June 30, 2014
(in millions)
|
Fair value at April 1, 2014
|
Total realized/unrealized gains/(losses)
|
|
|
|
|
Transfers into and/or out of level 3
(h)
|
Fair value at
June 30, 2014
|
Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2014
|
||||||||||||||||||||||
Purchases
(g)
|
Sales
|
|
Settlements
|
||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Debt instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. government agencies
|
$
|
1,150
|
|
$
|
27
|
|
|
$
|
12
|
|
$
|
(12
|
)
|
|
$
|
(33
|
)
|
$
|
(19
|
)
|
|
$
|
1,125
|
|
|
$
|
28
|
|
|
||
Residential – nonagency
|
715
|
|
67
|
|
|
181
|
|
(314
|
)
|
|
(12
|
)
|
(94
|
)
|
|
543
|
|
|
21
|
|
|
||||||||||
Commercial – nonagency
|
465
|
|
8
|
|
|
260
|
|
(187
|
)
|
|
(34
|
)
|
(185
|
)
|
|
327
|
|
|
—
|
|
|
||||||||||
Total mortgage-backed securities
|
2,330
|
|
102
|
|
|
453
|
|
(513
|
)
|
|
(79
|
)
|
(298
|
)
|
|
1,995
|
|
|
49
|
|
|
||||||||||
Obligations of U.S. states and municipalities
|
1,219
|
|
(35
|
)
|
|
—
|
|
(105
|
)
|
|
—
|
|
|
|
|
1,079
|
|
|
(44
|
)
|
|
||||||||||
Non-U.S. government debt securities
|
52
|
|
3
|
|
|
25
|
|
(3
|
)
|
|
(1
|
)
|
52
|
|
|
128
|
|
|
3
|
|
|
||||||||||
Corporate debt securities
|
4,873
|
|
130
|
|
|
1,163
|
|
(663
|
)
|
|
(823
|
)
|
113
|
|
|
4,793
|
|
|
74
|
|
|
||||||||||
Loans
|
12,521
|
|
372
|
|
|
3,129
|
|
(1,108
|
)
|
|
(1,172
|
)
|
(221
|
)
|
|
13,521
|
|
|
376
|
|
|
||||||||||
Asset-backed securities
|
1,156
|
|
46
|
|
|
807
|
|
(776
|
)
|
|
(151
|
)
|
134
|
|
|
1,216
|
|
|
32
|
|
|
||||||||||
Total debt instruments
|
22,151
|
|
618
|
|
|
5,577
|
|
(3,168
|
)
|
|
(2,226
|
)
|
(220
|
)
|
|
22,732
|
|
|
490
|
|
|
||||||||||
Equity securities
|
885
|
|
18
|
|
|
49
|
|
(56
|
)
|
|
(25
|
)
|
(167
|
)
|
|
704
|
|
|
83
|
|
|
||||||||||
Physical commodities
|
3
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
3
|
|
|
—
|
|
|
||||||||||
Other
|
1,284
|
|
266
|
|
|
656
|
|
(127
|
)
|
|
(67
|
)
|
329
|
|
|
2,341
|
|
|
173
|
|
|
||||||||||
Total trading assets – debt and equity instruments
|
24,323
|
|
902
|
|
(c)
|
6,282
|
|
(3,351
|
)
|
|
(2,318
|
)
|
(58
|
)
|
|
25,780
|
|
|
746
|
|
(c)
|
||||||||||
Net derivative receivables:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest rate
|
2,090
|
|
2
|
|
|
50
|
|
(63
|
)
|
|
(427
|
)
|
(119
|
)
|
|
1,533
|
|
|
(49
|
)
|
|
||||||||||
Credit
|
244
|
|
(124
|
)
|
|
164
|
|
(21
|
)
|
|
(79
|
)
|
(50
|
)
|
|
134
|
|
|
(91
|
)
|
|
||||||||||
Foreign exchange
|
(1,282
|
)
|
(143
|
)
|
|
33
|
|
(3
|
)
|
|
206
|
|
(5
|
)
|
|
(1,194
|
)
|
|
(141
|
)
|
|
||||||||||
Equity
|
(1,060
|
)
|
(774
|
)
|
|
46
|
|
(521
|
)
|
|
327
|
|
(224
|
)
|
|
(2,206
|
)
|
|
(204
|
)
|
|
||||||||||
Commodity
|
(58
|
)
|
(18
|
)
|
|
—
|
|
—
|
|
|
29
|
|
(75
|
)
|
|
(122
|
)
|
|
16
|
|
|
||||||||||
Total net derivative receivables
|
(66
|
)
|
(1,057
|
)
|
(c)
|
293
|
|
(608
|
)
|
|
56
|
|
(473
|
)
|
|
(1,855
|
)
|
|
(469
|
)
|
(c)
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed securities
|
1,127
|
|
(9
|
)
|
|
225
|
|
—
|
|
|
(21
|
)
|
—
|
|
|
1,322
|
|
|
(9
|
)
|
|
||||||||||
Other
|
1,190
|
|
1
|
|
|
122
|
|
—
|
|
|
(27
|
)
|
(772
|
)
|
|
514
|
|
|
2
|
|
|
||||||||||
Total available-for-sale securities
|
2,317
|
|
(8
|
)
|
(d)
|
347
|
|
—
|
|
|
(48
|
)
|
(772
|
)
|
|
1,836
|
|
|
(7
|
)
|
(d)
|
||||||||||
Loans
|
2,271
|
|
40
|
|
(c)
|
2,396
|
|
—
|
|
|
(480
|
)
|
—
|
|
|
4,227
|
|
|
21
|
|
(c)
|
||||||||||
Mortgage servicing rights
|
8,552
|
|
(149
|
)
|
(e)
|
181
|
|
2
|
|
|
(239
|
)
|
—
|
|
|
8,347
|
|
|
(149
|
)
|
(e)
|
||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Private equity investments
|
5,335
|
|
168
|
|
(c)
|
22
|
|
(469
|
)
|
|
(132
|
)
|
(41
|
)
|
|
4,883
|
|
|
131
|
|
(c)
|
||||||||||
All other
|
2,984
|
|
47
|
|
(f)
|
62
|
|
(117
|
)
|
|
(200
|
)
|
—
|
|
|
2,776
|
|
|
47
|
|
(f)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Fair value measurements using significant unobservable inputs
|
|
|
||||||||||||||||||||||||||||
Three months ended June 30, 2014
(in millions)
|
Fair value at April 1, 2014
|
Total realized/unrealized (gains)/losses
|
|
|
|
|
Transfers into and/or out of level 3
(h)
|
Fair value at
June 30, 2014
|
Change in unrealized (gains)/losses related
to financial instruments held at June 30, 2014
|
||||||||||||||||||||||
Purchases
|
Sales
|
Issuances
|
Settlements
|
||||||||||||||||||||||||||||
Liabilities:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Deposits
|
$
|
2,386
|
|
$
|
74
|
|
(c)
|
$
|
—
|
|
$
|
—
|
|
$
|
519
|
|
$
|
(24
|
)
|
$
|
(117
|
)
|
|
$
|
2,838
|
|
|
$
|
63
|
|
(c)
|
Other borrowed funds
|
1,535
|
|
(132
|
)
|
(c)
|
—
|
|
—
|
|
1,343
|
|
(1,380
|
)
|
172
|
|
|
1,538
|
|
|
(30
|
)
|
(c)
|
|||||||||
Trading liabilities – debt and equity instruments
|
101
|
|
(4
|
)
|
(c)
|
(46
|
)
|
71
|
|
—
|
|
(4
|
)
|
(38
|
)
|
|
80
|
|
|
1
|
|
(c)
|
|||||||||
Accounts payable and other liabilities
|
18
|
|
27
|
|
(c)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
45
|
|
|
27
|
|
(c)
|
|||||||||
Beneficial interests issued by consolidated VIEs
|
1,160
|
|
54
|
|
(c)
|
—
|
|
—
|
|
4
|
|
(54
|
)
|
(102
|
)
|
|
1,062
|
|
|
58
|
|
(c)
|
|||||||||
Long-term debt
|
11,203
|
|
437
|
|
(c)
|
—
|
|
—
|
|
1,912
|
|
(1,369
|
)
|
(437
|
)
|
|
11,746
|
|
|
410
|
|
(c)
|
|
Fair value measurements using significant unobservable inputs
|
|
|
|||||||||||||||||||||||||||||
Three months ended June 30, 2013
(in millions)
|
Fair value at April 1, 2013
|
Total realized/unrealized gains/(losses)
|
|
|
|
|
|
Transfers into and/or out of level 3
(h)
|
Fair value at
June 30, 2013 |
Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2013
|
||||||||||||||||||||||
Purchases
(g)
|
|
Sales
|
|
Settlements
|
||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Debt instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. government agencies
|
$
|
819
|
|
$
|
106
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
|
$
|
(26
|
)
|
$
|
—
|
|
|
$
|
901
|
|
|
$
|
114
|
|
|
|
Residential – nonagency
|
633
|
|
203
|
|
|
135
|
|
|
(336
|
)
|
|
|
(20
|
)
|
—
|
|
|
615
|
|
|
135
|
|
|
|||||||||
Commercial – nonagency
|
1,151
|
|
(39
|
)
|
|
302
|
|
|
(113
|
)
|
|
|
(30
|
)
|
—
|
|
|
1,271
|
|
|
(49
|
)
|
|
|||||||||
Total mortgage-backed securities
|
2,603
|
|
270
|
|
|
439
|
|
|
(449
|
)
|
|
|
(76
|
)
|
—
|
|
|
2,787
|
|
|
200
|
|
|
|||||||||
Obligations of U.S. states and municipalities
|
1,432
|
|
(23
|
)
|
|
52
|
|
|
(37
|
)
|
|
|
(203
|
)
|
—
|
|
|
1,221
|
|
|
(22
|
)
|
|
|||||||||
Non-U.S. government debt securities
|
85
|
|
9
|
|
|
333
|
|
|
(397
|
)
|
|
|
(4
|
)
|
110
|
|
|
136
|
|
|
11
|
|
|
|||||||||
Corporate debt securities
|
4,852
|
|
(41
|
)
|
|
2,251
|
|
|
(955
|
)
|
|
|
(822
|
)
|
450
|
|
|
5,735
|
|
|
28
|
|
|
|||||||||
Loans
|
10,032
|
|
41
|
|
|
3,782
|
|
|
(2,265
|
)
|
|
|
(688
|
)
|
38
|
|
|
10,940
|
|
|
21
|
|
|
|||||||||
Asset-backed securities
|
1,579
|
|
95
|
|
|
444
|
|
|
(557
|
)
|
|
|
(12
|
)
|
(121
|
)
|
|
1,428
|
|
|
56
|
|
|
|||||||||
Total debt instruments
|
20,583
|
|
351
|
|
|
7,301
|
|
|
(4,660
|
)
|
|
|
(1,805
|
)
|
477
|
|
|
22,247
|
|
|
294
|
|
|
|||||||||
Equity securities
|
1,172
|
|
(10
|
)
|
|
111
|
|
|
(57
|
)
|
|
|
(56
|
)
|
(121
|
)
|
|
1,039
|
|
|
(8
|
)
|
|
|||||||||
Physical commodities
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
16
|
|
|
16
|
|
|
—
|
|
|
|||||||||
Other
|
948
|
|
43
|
|
|
54
|
|
|
(18
|
)
|
|
|
(52
|
)
|
130
|
|
|
1,105
|
|
|
38
|
|
|
|||||||||
Total trading assets – debt and equity instruments
|
22,703
|
|
384
|
|
(c)
|
7,466
|
|
|
(4,735
|
)
|
|
|
(1,913
|
)
|
502
|
|
|
24,407
|
|
|
324
|
|
(c)
|
|||||||||
Net derivative receivables:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate
|
2,791
|
|
125
|
|
|
46
|
|
|
(63
|
)
|
|
|
(989
|
)
|
191
|
|
|
2,101
|
|
|
156
|
|
|
|||||||||
Credit
|
1,317
|
|
(335
|
)
|
|
3
|
|
|
(1
|
)
|
|
|
(76
|
)
|
13
|
|
|
921
|
|
|
(360
|
)
|
|
|||||||||
Foreign exchange
|
(1,516
|
)
|
161
|
|
|
8
|
|
|
—
|
|
|
|
137
|
|
(8
|
)
|
|
(1,218
|
)
|
|
71
|
|
|
|||||||||
Equity
|
(1,000
|
)
|
(323
|
)
|
(i)
|
465
|
|
(i)
|
(568
|
)
|
(i)
|
(588
|
)
|
(277
|
)
|
|
(2,291
|
)
|
|
654
|
|
|
||||||||||
Commodity
|
182
|
|
295
|
|
|
—
|
|
|
—
|
|
|
|
(412
|
)
|
6
|
|
|
71
|
|
|
63
|
|
|
|||||||||
Total net derivative receivables
|
1,774
|
|
(77
|
)
|
(c)
|
522
|
|
|
(632
|
)
|
|
|
(1,928
|
)
|
(75
|
)
|
|
(416
|
)
|
|
584
|
|
(c)
|
|||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Asset-backed securities
|
1,130
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(5
|
)
|
—
|
|
|
1,125
|
|
|
—
|
|
|
|||||||||
Other
|
837
|
|
—
|
|
|
7
|
|
|
—
|
|
|
|
(20
|
)
|
—
|
|
|
824
|
|
|
—
|
|
|
|||||||||
Total available-for-sale securities
|
1,967
|
|
—
|
|
(d)
|
7
|
|
|
—
|
|
|
|
(25
|
)
|
—
|
|
|
1,949
|
|
|
—
|
|
(d)
|
|||||||||
Loans
|
2,064
|
|
6
|
|
(c)
|
103
|
|
|
(7
|
)
|
|
|
(323
|
)
|
—
|
|
|
1,843
|
|
|
9
|
|
(c)
|
|||||||||
Mortgage servicing rights
|
7,949
|
|
1,038
|
|
(e)
|
655
|
|
|
(19
|
)
|
|
|
(288
|
)
|
—
|
|
|
9,335
|
|
|
1,038
|
|
(e)
|
|||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Private equity investments
|
6,831
|
|
434
|
|
(c)
|
122
|
|
|
(7
|
)
|
|
|
(275
|
)
|
—
|
|
|
7,105
|
|
|
206
|
|
(c)
|
|||||||||
All other
|
3,985
|
|
1
|
|
(f)
|
83
|
|
|
(292
|
)
|
|
|
(97
|
)
|
—
|
|
|
3,680
|
|
|
(11
|
)
|
(f)
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Fair value measurements using significant unobservable inputs
|
|
|
|||||||||||||||||||||||||||||
Three months ended June 30, 2013
(in millions)
|
Fair value at April 1, 2013
|
Total realized/unrealized (gains)/losses
|
|
|
|
|
|
Transfers into and/or out of level 3
(h)
|
Fair value at
June 30, 2013 |
Change in unrealized (gains)/
losses related
to financial instruments held at June 30, 2013
|
||||||||||||||||||||||
Purchases
|
|
Sales
|
Issuances
|
Settlements
|
||||||||||||||||||||||||||||
Liabilities:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Deposits
|
$
|
2,015
|
|
$
|
(110
|
)
|
(c)
|
$
|
—
|
|
|
$
|
—
|
|
$
|
316
|
|
$
|
(44
|
)
|
$
|
13
|
|
|
$
|
2,190
|
|
|
$
|
(110
|
)
|
(c)
|
Other borrowed funds
|
2,137
|
|
(243
|
)
|
(c)
|
—
|
|
|
—
|
|
2,389
|
|
(1,695
|
)
|
85
|
|
|
2,673
|
|
|
33
|
|
(c)
|
|||||||||
Trading liabilities – debt and equity instruments
|
251
|
|
(60
|
)
|
(c)
|
(374
|
)
|
|
454
|
|
—
|
|
(21
|
)
|
(146
|
)
|
|
104
|
|
|
(48
|
)
|
(c)
|
|||||||||
Accounts payable and other liabilities
|
33
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
|
32
|
|
|
—
|
|
|
|||||||||
Beneficial interests issued by consolidated VIEs
|
818
|
|
59
|
|
(c)
|
—
|
|
|
—
|
|
30
|
|
(44
|
)
|
—
|
|
|
863
|
|
|
54
|
|
(c)
|
|||||||||
Long-term debt
|
9,084
|
|
(430
|
)
|
(c)
|
—
|
|
|
—
|
|
1,878
|
|
(1,246
|
)
|
(84
|
)
|
|
9,202
|
|
|
(292
|
)
|
(c)
|
|
Fair value measurements using significant unobservable inputs
|
|
|
||||||||||||||||||||||||||||
Six months ended
June 30, 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
June 30, 2014 |
Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2014
|
||||||||||||||||||||||
Purchases
(g)
|
Sales
|
|
Settlements
|
||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Debt instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. government agencies
|
$
|
1,005
|
|
$
|
30
|
|
|
$
|
343
|
|
$
|
(174
|
)
|
|
$
|
(60
|
)
|
$
|
(19
|
)
|
|
$
|
1,125
|
|
|
$
|
32
|
|
|
||
Residential – nonagency
|
726
|
|
91
|
|
|
373
|
|
(514
|
)
|
|
(24
|
)
|
(109
|
)
|
|
543
|
|
|
29
|
|
|
||||||||||
Commercial – nonagency
|
432
|
|
28
|
|
|
581
|
|
(481
|
)
|
|
(48
|
)
|
(185
|
)
|
|
327
|
|
|
4
|
|
|
||||||||||
Total mortgage-backed securities
|
2,163
|
|
149
|
|
|
1,297
|
|
(1,169
|
)
|
|
(132
|
)
|
(313
|
)
|
|
1,995
|
|
|
65
|
|
|
||||||||||
Obligations of U.S. states and municipalities
|
1,382
|
|
(13
|
)
|
|
—
|
|
(290
|
)
|
|
—
|
|
—
|
|
|
1,079
|
|
|
7
|
|
|
||||||||||
Non-U.S. government debt securities
|
143
|
|
19
|
|
|
435
|
|
(519
|
)
|
|
(2
|
)
|
52
|
|
|
128
|
|
|
24
|
|
|
||||||||||
Corporate debt securities
|
5,920
|
|
368
|
|
|
2,360
|
|
(2,015
|
)
|
|
(1,664
|
)
|
(176
|
)
|
|
4,793
|
|
|
280
|
|
|
||||||||||
Loans
|
13,455
|
|
691
|
|
|
5,287
|
|
(2,902
|
)
|
|
(2,718
|
)
|
(292
|
)
|
|
13,521
|
|
|
882
|
|
|
||||||||||
Asset-backed securities
|
1,272
|
|
70
|
|
|
1,357
|
|
(1,332
|
)
|
|
(171
|
)
|
20
|
|
|
1,216
|
|
|
43
|
|
|
||||||||||
Total debt instruments
|
24,335
|
|
1,284
|
|
|
10,736
|
|
(8,227
|
)
|
|
(4,687
|
)
|
(709
|
)
|
|
22,732
|
|
|
1,301
|
|
|
||||||||||
Equity securities
|
885
|
|
99
|
|
|
85
|
|
(75
|
)
|
|
(34
|
)
|
(256
|
)
|
|
704
|
|
|
147
|
|
|
||||||||||
Physical commodities
|
4
|
|
—
|
|
|
—
|
|
—
|
|
|
(1
|
)
|
—
|
|
|
3
|
|
|
—
|
|
|
||||||||||
Other
|
2,000
|
|
169
|
|
|
710
|
|
(178
|
)
|
|
(95
|
)
|
(265
|
)
|
|
2,341
|
|
|
146
|
|
|
||||||||||
Total trading assets – debt and equity instruments
|
27,224
|
|
1,552
|
|
(c)
|
11,531
|
|
(8,480
|
)
|
|
(4,817
|
)
|
(1,230
|
)
|
|
25,780
|
|
|
1,594
|
|
(c)
|
||||||||||
Net derivative receivables:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest rate
|
2,379
|
|
26
|
|
|
98
|
|
(106
|
)
|
|
(765
|
)
|
(99
|
)
|
|
1,533
|
|
|
(690
|
)
|
|
||||||||||
Credit
|
95
|
|
(239
|
)
|
|
222
|
|
(21
|
)
|
|
127
|
|
(50
|
)
|
|
134
|
|
|
(186
|
)
|
|
||||||||||
Foreign exchange
|
(1,200
|
)
|
(342
|
)
|
|
94
|
|
(19
|
)
|
|
255
|
|
18
|
|
|
(1,194
|
)
|
|
(291
|
)
|
|
||||||||||
Equity
|
(1,063
|
)
|
(703
|
)
|
|
847
|
|
(1,554
|
)
|
|
452
|
|
(185
|
)
|
|
(2,206
|
)
|
|
343
|
|
|
||||||||||
Commodity
|
115
|
|
(172
|
)
|
|
1
|
|
—
|
|
|
(13
|
)
|
(53
|
)
|
|
(122
|
)
|
|
(156
|
)
|
|
||||||||||
Total net derivative receivables
|
326
|
|
(1,430
|
)
|
(c)
|
1,262
|
|
(1,700
|
)
|
|
56
|
|
(369
|
)
|
|
(1,855
|
)
|
|
(980
|
)
|
(c)
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed securities
|
1,088
|
|
(11
|
)
|
|
225
|
|
(2
|
)
|
|
(41
|
)
|
63
|
|
|
1,322
|
|
|
(11
|
)
|
|
||||||||||
Other
|
1,234
|
|
(2
|
)
|
|
122
|
|
—
|
|
|
(68
|
)
|
(772
|
)
|
|
514
|
|
|
(1
|
)
|
|
||||||||||
Total available-for-sale securities
|
2,322
|
|
(13
|
)
|
(d)
|
347
|
|
(2
|
)
|
|
(109
|
)
|
(709
|
)
|
|
1,836
|
|
|
(12
|
)
|
(d)
|
||||||||||
Loans
|
1,931
|
|
72
|
|
(c)
|
3,080
|
|
(142
|
)
|
|
(714
|
)
|
—
|
|
|
4,227
|
|
|
47
|
|
(c)
|
||||||||||
Mortgage servicing rights
|
9,614
|
|
(971
|
)
|
(e)
|
376
|
|
(186
|
)
|
|
(486
|
)
|
—
|
|
|
8,347
|
|
|
(971
|
)
|
(e)
|
||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Private equity investments
|
6,474
|
|
264
|
|
(c)
|
109
|
|
(1,487
|
)
|
|
(436
|
)
|
(41
|
)
|
|
4,883
|
|
|
119
|
|
(c)
|
||||||||||
All other
|
3,176
|
|
(26
|
)
|
(f)
|
135
|
|
(154
|
)
|
|
(355
|
)
|
—
|
|
|
2,776
|
|
|
(26
|
)
|
(f)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Fair value measurements using significant unobservable inputs
|
|
|
||||||||||||||||||||||||||||
Six months ended
June 30, 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
June 30, 2014 |
Change in unrealized (gains)/losses related
to financial instruments held at June 30, 2014
|
||||||||||||||||||||||
Purchases
|
Sales
|
Issuances
|
Settlements
|
||||||||||||||||||||||||||||
Liabilities:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Deposits
|
$
|
2,255
|
|
$
|
111
|
|
(c)
|
$
|
—
|
|
$
|
—
|
|
$
|
809
|
|
$
|
(66
|
)
|
$
|
(271
|
)
|
|
$
|
2,838
|
|
|
$
|
98
|
|
(c)
|
Other borrowed funds
|
2,074
|
|
(93
|
)
|
(c)
|
—
|
|
—
|
|
2,676
|
|
(3,487
|
)
|
368
|
|
|
1,538
|
|
|
84
|
|
(c)
|
|||||||||
Trading liabilities – debt and equity instruments
|
113
|
|
(4
|
)
|
(c)
|
(262
|
)
|
279
|
|
—
|
|
(8
|
)
|
(38
|
)
|
|
80
|
|
|
1
|
|
(c)
|
|||||||||
Accounts payable and other liabilities
|
25
|
|
27
|
|
(c)
|
—
|
|
—
|
|
—
|
|
(7
|
)
|
—
|
|
|
45
|
|
|
27
|
|
(c)
|
|||||||||
Beneficial interests issued by consolidated VIEs
|
1,240
|
|
101
|
|
(c)
|
—
|
|
—
|
|
82
|
|
(259
|
)
|
(102
|
)
|
|
1,062
|
|
|
88
|
|
(c)
|
|||||||||
Long-term debt
|
10,008
|
|
539
|
|
(c)
|
—
|
|
—
|
|
3,744
|
|
(2,379
|
)
|
(166
|
)
|
|
11,746
|
|
|
585
|
|
(c)
|
|
Fair value measurements using significant unobservable inputs
|
|
|
|||||||||||||||||||||||||||||
Six months ended
June 30, 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
June 30, 2013 |
Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2013
|
||||||||||||||||||||||
Purchases
(g)
|
|
Sales
|
|
Settlements
|
||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Debt instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. government agencies
|
$
|
498
|
|
$
|
140
|
|
|
$
|
393
|
|
|
$
|
(79
|
)
|
|
|
$
|
(51
|
)
|
$
|
—
|
|
|
$
|
901
|
|
|
$
|
153
|
|
|
|
Residential – nonagency
|
663
|
|
312
|
|
|
434
|
|
|
(740
|
)
|
|
|
(49
|
)
|
(5
|
)
|
|
615
|
|
|
177
|
|
|
|||||||||
Commercial – nonagency
|
1,207
|
|
(125
|
)
|
|
439
|
|
|
(178
|
)
|
|
|
(72
|
)
|
—
|
|
|
1,271
|
|
|
(142
|
)
|
|
|||||||||
Total mortgage-backed securities
|
2,368
|
|
327
|
|
|
1,266
|
|
|
(997
|
)
|
|
|
(172
|
)
|
(5
|
)
|
|
2,787
|
|
|
188
|
|
|
|||||||||
Obligations of U.S. states and municipalities
|
1,436
|
|
18
|
|
|
53
|
|
|
(83
|
)
|
|
|
(203
|
)
|
—
|
|
|
1,221
|
|
|
17
|
|
|
|||||||||
Non-U.S. government debt securities
|
67
|
|
11
|
|
|
634
|
|
|
(682
|
)
|
|
|
(4
|
)
|
110
|
|
|
136
|
|
|
11
|
|
|
|||||||||
Corporate debt securities
|
5,308
|
|
(124
|
)
|
|
5,178
|
|
|
(3,518
|
)
|
|
|
(1,447
|
)
|
338
|
|
|
5,735
|
|
|
30
|
|
|
|||||||||
Loans
|
10,787
|
|
(131
|
)
|
|
5,408
|
|
|
(3,750
|
)
|
|
|
(1,391
|
)
|
17
|
|
|
10,940
|
|
|
(229
|
)
|
|
|||||||||
Asset-backed securities
|
3,696
|
|
159
|
|
|
1,040
|
|
|
(1,534
|
)
|
|
|
(147
|
)
|
(1,786
|
)
|
|
1,428
|
|
|
74
|
|
|
|||||||||
Total debt instruments
|
23,662
|
|
260
|
|
|
13,579
|
|
|
(10,564
|
)
|
|
|
(3,364
|
)
|
(1,326
|
)
|
|
22,247
|
|
|
91
|
|
|
|||||||||
Equity securities
|
1,114
|
|
(9
|
)
|
|
204
|
|
|
(148
|
)
|
|
|
(65
|
)
|
(57
|
)
|
|
1,039
|
|
|
(28
|
)
|
|
|||||||||
Physical commodities
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
16
|
|
|
16
|
|
|
—
|
|
|
|||||||||
Other
|
863
|
|
87
|
|
|
126
|
|
|
(20
|
)
|
|
|
(81
|
)
|
130
|
|
|
1,105
|
|
|
139
|
|
|
|||||||||
Total trading assets – debt and equity instruments
|
25,639
|
|
338
|
|
(c)
|
13,909
|
|
|
(10,732
|
)
|
|
|
(3,510
|
)
|
(1,237
|
)
|
|
24,407
|
|
|
202
|
|
(c)
|
|||||||||
Net derivative receivables:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate
|
3,322
|
|
431
|
|
|
115
|
|
|
(125
|
)
|
|
|
(1,847
|
)
|
205
|
|
|
2,101
|
|
|
45
|
|
|
|||||||||
Credit
|
1,873
|
|
(824
|
)
|
|
50
|
|
|
(1
|
)
|
|
|
(189
|
)
|
12
|
|
|
921
|
|
|
(836
|
)
|
|
|||||||||
Foreign exchange
|
(1,750
|
)
|
45
|
|
|
(7
|
)
|
|
(3
|
)
|
|
|
513
|
|
(16
|
)
|
|
(1,218
|
)
|
|
(5
|
)
|
|
|||||||||
Equity
|
(1,806
|
)
|
539
|
|
(i)
|
536
|
|
(i)
|
(647
|
)
|
(i)
|
(810
|
)
|
(103
|
)
|
|
(2,291
|
)
|
|
604
|
|
|
||||||||||
Commodity
|
254
|
|
653
|
|
|
11
|
|
|
(3
|
)
|
|
|
(854
|
)
|
10
|
|
|
71
|
|
|
240
|
|
|
|||||||||
Total net derivative receivables
|
1,893
|
|
844
|
|
(c)
|
705
|
|
|
(779
|
)
|
|
|
(3,187
|
)
|
108
|
|
|
(416
|
)
|
|
48
|
|
(c)
|
|||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Asset-backed securities
|
28,024
|
|
5
|
|
|
400
|
|
|
—
|
|
|
|
(44
|
)
|
(27,260
|
)
|
|
1,125
|
|
|
5
|
|
|
|||||||||
Other
|
892
|
|
(9
|
)
|
|
7
|
|
|
(13
|
)
|
|
|
(53
|
)
|
—
|
|
|
824
|
|
|
3
|
|
|
|||||||||
Total available-for-sale securities
|
28,916
|
|
(4
|
)
|
(d)
|
407
|
|
|
(13
|
)
|
|
|
(97
|
)
|
(27,260
|
)
|
|
1,949
|
|
|
8
|
|
(d)
|
|||||||||
Loans
|
2,282
|
|
(29
|
)
|
(c)
|
328
|
|
|
(56
|
)
|
|
|
(682
|
)
|
—
|
|
|
1,843
|
|
|
(43
|
)
|
(c)
|
|||||||||
Mortgage servicing rights
|
7,614
|
|
1,347
|
|
(e)
|
1,339
|
|
|
(418
|
)
|
|
|
(547
|
)
|
—
|
|
|
9,335
|
|
|
1,347
|
|
(e)
|
|||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Private equity investments
|
7,181
|
|
165
|
|
(c)
|
203
|
|
|
(103
|
)
|
|
|
(341
|
)
|
—
|
|
|
7,105
|
|
|
(188
|
)
|
(c)
|
|||||||||
All other
|
4,258
|
|
(25
|
)
|
(f)
|
135
|
|
|
(295
|
)
|
|
|
(393
|
)
|
—
|
|
|
3,680
|
|
|
(41
|
)
|
(f)
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Fair value measurements using significant unobservable inputs
|
|
|
|||||||||||||||||||||||||||||
Six months ended
June 30, 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
June 30, 2013 |
Change in unrealized (gains)/losses related
to financial instruments held at June 30, 2013
|
||||||||||||||||||||||
Purchases
|
|
Sales
|
Issuances
|
Settlements
|
||||||||||||||||||||||||||||
Liabilities:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Deposits
|
$
|
1,983
|
|
$
|
(105
|
)
|
(c)
|
$
|
—
|
|
|
$
|
—
|
|
$
|
612
|
|
$
|
(157
|
)
|
$
|
(143
|
)
|
|
$
|
2,190
|
|
|
$
|
(97
|
)
|
(c)
|
Other borrowed funds
|
1,619
|
|
(269
|
)
|
(c)
|
—
|
|
|
—
|
|
4,151
|
|
(2,919
|
)
|
91
|
|
|
2,673
|
|
|
74
|
|
(c)
|
|||||||||
Trading liabilities – debt and equity instruments
|
205
|
|
(68
|
)
|
(c)
|
(1,859
|
)
|
|
2,006
|
|
—
|
|
(34
|
)
|
(146
|
)
|
|
104
|
|
|
(78
|
)
|
(c)
|
|||||||||
Accounts payable and other liabilities
|
36
|
|
1
|
|
(f)
|
—
|
|
|
—
|
|
—
|
|
(5
|
)
|
—
|
|
|
32
|
|
|
1
|
|
(f)
|
|||||||||
Beneficial interests issued by consolidated VIEs
|
925
|
|
25
|
|
(c)
|
—
|
|
|
—
|
|
51
|
|
(138
|
)
|
—
|
|
|
863
|
|
|
26
|
|
(c)
|
|||||||||
Long-term debt
|
8,476
|
|
(905
|
)
|
(c)
|
—
|
|
|
—
|
|
3,733
|
|
(1,603
|
)
|
(499
|
)
|
|
9,202
|
|
|
(321
|
)
|
(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
16%
and
18%
at June 30, 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
$(11) million
and
$3 million
for the three months ended June 30, 2014 and 2013, and
$(12) million
and
$(15) million
for the six months ended June 30, 2014 and 2013, respectively. Unrealized gains/(losses) recorded on AFS securities in OCI were
$3 million
and
$(3) million
for the three months ended June 30, 2014 and 2013 and
$(1) million
and
$11 million
for the six months ended June 30, 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 Sheets or its results of operations.
|
•
|
$4.9 billion
decrease in derivative receivables, largely driven by client-driven market-making activity and a transfer of equity derivative receivables from level 3 to level 2 due to increase in observability of certain equity options;
|
•
|
$2.0 billion
increase in loans due to originations;
|
•
|
$1.5 billion
increase in trading assets - debt and equity instruments largely driven by trading loans purchases and new client-driven financing transactions;
|
•
|
$6.0 billion
decrease in derivative receivable, predominantly driven by equity derivative receivables due to maturities and a transfer from level 3 to level 2 as a result of increase in observability of certain equity options;
|
•
|
$2.3 billion
increase in loans due to originations;
|
•
|
$1.6 billion
decrease in private equity investments, driven by sales of investments.
|
•
|
$1.4 billion
decrease in trading assets - debt and equity instruments, largely driven by net sales and maturities of corporate debt securities.
|
•
|
$1.3 million
decrease in MSRs. For further discussion of the change, refer to Note 16;
|
•
|
$1.1 billion
net losses on derivatives, largely due to client-driven market-making activities in equity derivatives.
|
•
|
$1.0 billion
of gains on MSRs. For further discussion of the change, refer to Note 16.
|
•
|
$1.6 billion
of net gains in trading assets - debt and equity instruments, largely driven by client-driven activities in corporate debt and trading loans;
|
•
|
$1.4 billion
of net losses on derivatives, largely driven by foreign exchange derivatives due to fluctuations in foreign exchange rates and client-driven market-making activities in equity derivatives.
|
•
|
$1.0 billion
of losses on MSRs. For further discussion of the change, refer to Note 16.
|
•
|
$1.3 billion
of gains on MSRs. For further discussion of the change, refer to Note 16.
|
•
|
$(905) million
of gains on long-term debt, due to market movements.
|
(in millions)
|
Jun 30, 2014
|
|
Dec 31, 2013
|
||||
Derivative receivables balance
(a)
|
$
|
62,378
|
|
|
$
|
65,759
|
|
Derivative payables balance
(a)
|
50,795
|
|
|
57,314
|
|
||
Derivatives CVA
(b)(c)
|
(2,099
|
)
|
|
(2,352
|
)
|
||
Derivatives DVA and FVA
(b)(d)
|
(483
|
)
|
|
(322
|
)
|
||
Structured notes balance
(a)(e)
|
54,467
|
|
|
48,808
|
|
||
Structured notes DVA and FVA
(b)(f)
|
1,131
|
|
|
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 June 30, 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 that are measured at fair value based on the Firm’s election under the fair value option. At
June 30, 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 also been elected. For further information on these elections, see Note 4.
|
(f)
|
At June 30, 2014, and December 31, 2013 included structured notes DVA of
$1.4 billion
and
$1.4 billion
, respectively.
|
|
Three months ended June 30,
|
|
Six months
ended June 30,
|
||||||||||||
(in millions)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Credit adjustments:
|
|
|
|
|
|
|
|
||||||||
Derivative CVA
(a)
|
$
|
272
|
|
|
$
|
549
|
|
|
$
|
253
|
|
|
$
|
881
|
|
Derivative DVA and FVA
(b)
|
(36
|
)
|
|
104
|
|
|
(161
|
)
|
|
99
|
|
||||
Structured note DVA and FVA
(c)
|
162
|
|
|
251
|
|
|
179
|
|
|
382
|
|
(a)
|
Derivatives CVA includes results managed by the credit portfolio group and other businesses.
|
(b)
|
Included derivatives DVA of
$(1) million
and
$104 million
for the three months ended June 30, 2014 and 2013 and
$(95) million
and
$99 million
for the six months ended June 30, 2014 and 2013, respectively.
|
(c)
|
Included structured notes DVA of
$134 million
and
$251 million
for the three months ended June 30, 2014 and 2013 and
$19 million
and
$382 million
for the six months ended June 30, 2014 and 2013, respectively.
|
|
June 30, 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
|
$
|
27.5
|
|
$
|
27.5
|
|
$
|
—
|
|
$
|
—
|
|
$
|
27.5
|
|
|
$
|
39.8
|
|
$
|
39.8
|
|
$
|
—
|
|
$
|
—
|
|
$
|
39.8
|
|
Deposits with banks
|
393.9
|
|
387.3
|
|
6.6
|
|
—
|
|
393.9
|
|
|
316.1
|
|
309.7
|
|
6.4
|
|
—
|
|
316.1
|
|
||||||||||
Accrued interest and accounts receivable
|
77.1
|
|
—
|
|
76.9
|
|
0.2
|
|
77.1
|
|
|
65.2
|
|
—
|
|
64.9
|
|
0.3
|
|
65.2
|
|
||||||||||
Federal funds sold and securities purchased under resale agreements
|
220.3
|
|
—
|
|
220.3
|
|
—
|
|
220.3
|
|
|
223.0
|
|
—
|
|
223.0
|
|
—
|
|
223.0
|
|
||||||||||
Securities borrowed
|
111.8
|
|
—
|
|
111.8
|
|
—
|
|
111.8
|
|
|
107.7
|
|
—
|
|
107.7
|
|
—
|
|
107.7
|
|
||||||||||
Securities, held-to-maturity
(a)
|
47.8
|
|
—
|
|
49.2
|
|
—
|
|
49.2
|
|
|
24.0
|
|
—
|
|
23.7
|
|
—
|
|
23.7
|
|
||||||||||
Loans, net of allowance for loan losses
(b)
|
727.4
|
|
—
|
|
18.2
|
|
713.5
|
|
731.7
|
|
|
720.1
|
|
—
|
|
23.0
|
|
697.2
|
|
720.2
|
|
||||||||||
Other
(c)
|
52.8
|
|
—
|
|
49.8
|
|
6.7
|
|
56.5
|
|
|
58.2
|
|
—
|
|
54.5
|
|
7.4
|
|
61.9
|
|
||||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Deposits
|
$
|
1,311.8
|
|
$
|
—
|
|
$
|
1,310.9
|
|
$
|
1.2
|
|
$
|
1,312.1
|
|
|
$
|
1,281.1
|
|
$
|
—
|
|
$
|
1,280.3
|
|
$
|
1.2
|
|
$
|
1,281.5
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
213.9
|
|
—
|
|
213.9
|
|
—
|
|
213.9
|
|
|
175.7
|
|
—
|
|
175.7
|
|
—
|
|
175.7
|
|
||||||||||
Commercial paper
|
63.8
|
|
—
|
|
63.8
|
|
—
|
|
63.8
|
|
|
57.8
|
|
—
|
|
57.8
|
|
—
|
|
57.8
|
|
||||||||||
Other borrowed funds
|
19.3
|
|
|
|
19.3
|
|
—
|
|
19.3
|
|
|
14.7
|
|
—
|
|
14.7
|
|
—
|
|
14.7
|
|
||||||||||
Accounts payable and other liabilities
|
175.2
|
|
—
|
|
172.5
|
|
2.6
|
|
175.1
|
|
|
160.2
|
|
—
|
|
158.2
|
|
1.8
|
|
160.0
|
|
||||||||||
Beneficial interests issued by consolidated VIEs
|
43.6
|
|
—
|
|
40.6
|
|
3.0
|
|
43.6
|
|
|
47.6
|
|
—
|
|
44.3
|
|
3.2
|
|
47.5
|
|
||||||||||
Long-term debt and junior subordinated deferrable interest debentures
(d)
|
238.8
|
|
—
|
|
242.7
|
|
3.4
|
|
246.1
|
|
|
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 96–109
of this Note.
|
(c)
|
Current period numbers have been updated to include certain nonmarketable equity securities. Prior period amounts have been revised to conform to the current presentation.
|
(d)
|
Carrying value includes unamortized original issue discount and other valuation adjustments.
|
|
June 30, 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
|
|
$
|
—
|
|
$
|
—
|
|
$
|
0.8
|
|
$
|
0.8
|
|
|
$
|
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 June 30,
|
Six months ended June 30,
|
|||||||||||||
(in millions)
|
|
2014
|
|
|
2013
|
2014
|
|
2013
|
||||||||
Trading assets – debt and equity instruments
|
|
$
|
325,426
|
|
|
|
$
|
357,285
|
|
$
|
320,197
|
|
|
$
|
363,952
|
|
Trading assets – derivative receivables
|
|
60,830
|
|
|
|
75,310
|
|
62,814
|
|
|
75,115
|
|
||||
Trading liabilities – debt and equity instruments
(a)
|
|
85,123
|
|
|
|
75,671
|
|
85,230
|
|
|
73,103
|
|
||||
Trading liabilities – derivative payables
|
|
49,487
|
|
|
|
66,246
|
|
51,305
|
|
|
67,458
|
|
(a)
|
Primarily represent securities sold, not yet purchased.
|
|
Three months ended June 30,
|
||||||||||||||||||||
|
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
|
$
|
96
|
|
$
|
—
|
|
|
$
|
96
|
|
|
$
|
(287
|
)
|
$
|
—
|
|
|
$
|
(287
|
)
|
Securities borrowed
|
(2
|
)
|
—
|
|
|
(2
|
)
|
|
(8
|
)
|
—
|
|
|
(8
|
)
|
||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt and equity instruments, excluding loans
|
245
|
|
3
|
|
(b)
|
248
|
|
|
(14
|
)
|
4
|
|
(b)
|
(10
|
)
|
||||||
Loans reported as trading assets:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Changes in instrument-specific credit risk
|
391
|
|
3
|
|
(b)
|
394
|
|
|
211
|
|
26
|
|
(b)
|
237
|
|
||||||
Other changes in fair value
|
38
|
|
400
|
|
(b)
|
438
|
|
|
(94
|
)
|
253
|
|
(b)
|
159
|
|
||||||
Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Changes in instrument-specific credit risk
|
20
|
|
—
|
|
|
20
|
|
|
(1
|
)
|
—
|
|
|
(1
|
)
|
||||||
Other changes in fair value
|
24
|
|
—
|
|
|
24
|
|
|
21
|
|
—
|
|
|
21
|
|
||||||
Other assets
|
7
|
|
(30
|
)
|
(c)
|
(23
|
)
|
|
22
|
|
(20
|
)
|
(c)
|
2
|
|
||||||
Deposits
(a)
|
(107
|
)
|
—
|
|
|
(107
|
)
|
|
219
|
|
—
|
|
|
219
|
|
||||||
Federal funds purchased and securities loaned or sold under repurchase agreements
|
(18
|
)
|
—
|
|
|
(18
|
)
|
|
41
|
|
—
|
|
|
41
|
|
||||||
Other borrowed funds
(a)
|
(911
|
)
|
—
|
|
|
(911
|
)
|
|
734
|
|
—
|
|
|
734
|
|
||||||
Trading liabilities
|
(3
|
)
|
—
|
|
|
(3
|
)
|
|
(14
|
)
|
—
|
|
|
(14
|
)
|
||||||
Beneficial interests issued by consolidated VIEs
|
(48
|
)
|
—
|
|
|
(48
|
)
|
|
(69
|
)
|
—
|
|
|
(69
|
)
|
||||||
Other liabilities
|
(27
|
)
|
—
|
|
|
(27
|
)
|
|
—
|
|
—
|
|
|
—
|
|
||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Changes in instrument-specific credit risk
(a)
|
82
|
|
—
|
|
|
82
|
|
|
159
|
|
—
|
|
|
159
|
|
||||||
Other changes in fair value
|
(773
|
)
|
—
|
|
|
(773
|
)
|
|
1,000
|
|
—
|
|
|
1,000
|
|
|
Six months ended June 30,
|
||||||||||||||||||||
|
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
|
$
|
56
|
|
$
|
—
|
|
|
$
|
56
|
|
|
$
|
(358
|
)
|
$
|
—
|
|
|
$
|
(358
|
)
|
Securities borrowed
|
(5
|
)
|
—
|
|
|
(5
|
)
|
|
18
|
|
—
|
|
|
18
|
|
||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt and equity instruments, excluding loans
|
475
|
|
1
|
|
(b)
|
476
|
|
|
242
|
|
7
|
|
(b)
|
249
|
|
||||||
Loans reported as trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Changes in instrument-specific credit risk
|
754
|
|
12
|
|
(b)
|
766
|
|
|
539
|
|
38
|
|
(b)
|
577
|
|
||||||
Other changes in fair value
|
102
|
|
692
|
|
(b)
|
794
|
|
|
(78
|
)
|
1,205
|
|
(b)
|
1,127
|
|
||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Changes in instrument-specific credit risk
|
28
|
|
—
|
|
|
28
|
|
|
(6
|
)
|
—
|
|
|
(6
|
)
|
||||||
Other changes in fair value
|
31
|
|
—
|
|
|
31
|
|
|
21
|
|
—
|
|
|
21
|
|
||||||
Other assets
|
12
|
|
(142
|
)
|
(c)
|
(130
|
)
|
|
21
|
|
(89
|
)
|
(c)
|
(68
|
)
|
||||||
Deposits
(a)
|
(211
|
)
|
—
|
|
|
(211
|
)
|
|
297
|
|
—
|
|
|
297
|
|
||||||
Federal funds purchased and securities loaned or sold under repurchase agreements
|
(34
|
)
|
—
|
|
|
(34
|
)
|
|
45
|
|
—
|
|
|
45
|
|
||||||
Other borrowed funds
(a)
|
(1,171
|
)
|
—
|
|
|
(1,171
|
)
|
|
380
|
|
—
|
|
|
380
|
|
||||||
Trading liabilities
|
(9
|
)
|
—
|
|
|
(9
|
)
|
|
(32
|
)
|
—
|
|
|
(32
|
)
|
||||||
Beneficial interests issued by consolidated VIEs
|
(137
|
)
|
—
|
|
|
(137
|
)
|
|
(97
|
)
|
—
|
|
|
(97
|
)
|
||||||
Other liabilities
|
(27
|
)
|
—
|
|
|
(27
|
)
|
|
—
|
|
(1
|
)
|
(c)
|
(1
|
)
|
||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Changes in instrument-specific credit risk
(a)
|
5
|
|
—
|
|
|
5
|
|
|
192
|
|
—
|
|
|
192
|
|
||||||
Other changes in fair value
(b)
|
(791
|
)
|
—
|
|
|
(791
|
)
|
|
969
|
|
—
|
|
|
969
|
|
(a)
|
Total changes in instrument-specific credit risk (DVA) related to structured notes were
$134 million
and
$251 million
for the three months ended
June 30, 2014
and 2013 and
$19 million
and
$382 million
for the six months ended
June 30, 2014
and 2013, respectively. These totals include such changes 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.
|
|
June 30, 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
|
$
|
4,462
|
|
|
$
|
1,270
|
|
$
|
(3,192
|
)
|
|
$
|
5,156
|
|
|
$
|
1,491
|
|
$
|
(3,665
|
)
|
Loans
|
214
|
|
|
154
|
|
(60
|
)
|
|
209
|
|
|
154
|
|
(55
|
)
|
||||||
Subtotal
|
4,676
|
|
|
1,424
|
|
(3,252
|
)
|
|
5,365
|
|
|
1,645
|
|
(3,720
|
)
|
||||||
All other performing loans
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans reported as trading assets
|
35,185
|
|
|
31,920
|
|
(3,265
|
)
|
|
33,069
|
|
|
29,295
|
|
(3,774
|
)
|
||||||
Loans
|
3,934
|
|
|
3,877
|
|
(57
|
)
|
|
1,618
|
|
|
1,563
|
|
(55
|
)
|
||||||
Total loans
|
$
|
43,795
|
|
|
$
|
37,221
|
|
$
|
(6,574
|
)
|
|
$
|
40,052
|
|
|
$
|
32,503
|
|
$
|
(7,549
|
)
|
Long-term debt
|
|
|
|
|
|
|
|
|
|
||||||||||||
Principal-protected debt
|
$
|
15,634
|
|
(c)
|
$
|
15,882
|
|
$
|
248
|
|
|
$
|
15,797
|
|
(c)
|
$
|
15,909
|
|
$
|
112
|
|
Nonprincipal-protected debt
(b)
|
NA
|
|
|
15,260
|
|
NA
|
|
|
NA
|
|
|
12,969
|
|
NA
|
|
||||||
Total long-term debt
|
NA
|
|
|
$
|
31,142
|
|
NA
|
|
|
NA
|
|
|
$
|
28,878
|
|
NA
|
|
||||
Long-term beneficial interests
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nonprincipal-protected debt
(b)
|
NA
|
|
|
$
|
2,094
|
|
NA
|
|
|
NA
|
|
|
$
|
1,996
|
|
NA
|
|
||||
Total long-term beneficial interests
|
NA
|
|
|
$
|
2,094
|
|
NA
|
|
|
NA
|
|
|
$
|
1,996
|
|
NA
|
|
(a)
|
There were no performing loans that were ninety days or more past due as of
June 30, 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.
|
|
June 30, 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
|
$
|
10,505
|
|
$
|
461
|
|
$
|
1,735
|
|
$
|
12,701
|
|
|
$
|
9,516
|
|
$
|
615
|
|
$
|
1,270
|
|
$
|
11,401
|
|
Credit
|
4,429
|
|
124
|
|
—
|
|
4,553
|
|
|
4,248
|
|
13
|
|
—
|
|
4,261
|
|
||||||||
Foreign exchange
|
2,307
|
|
136
|
|
16
|
|
2,459
|
|
|
2,321
|
|
194
|
|
27
|
|
2,542
|
|
||||||||
Equity
|
12,512
|
|
13,510
|
|
4,184
|
|
30,206
|
|
|
11,082
|
|
11,936
|
|
3,736
|
|
26,754
|
|
||||||||
Commodity
|
1,154
|
|
589
|
|
1,570
|
|
3,313
|
|
|
1,260
|
|
310
|
|
1,133
|
|
2,703
|
|
||||||||
Total structured notes
|
$
|
30,907
|
|
$
|
14,820
|
|
$
|
7,505
|
|
$
|
53,232
|
|
|
$
|
28,427
|
|
$
|
13,068
|
|
$
|
6,166
|
|
$
|
47,661
|
|
|
Notional amounts
(c)
|
|||||
(in billions)
|
June 30,
2014
|
December 31, 2013
|
||||
Interest rate contracts
|
|
|
||||
Swaps
|
$
|
30,929
|
|
$
|
35,221
|
|
Futures and forwards
|
12,556
|
|
11,251
|
|
||
Written options
(a)
|
4,305
|
|
4,046
|
|
||
Purchased options
|
4,704
|
|
4,187
|
|
||
Total interest rate contracts
|
52,494
|
|
54,705
|
|
||
Credit derivatives
(a)(b)
|
5,100
|
|
5,331
|
|
||
Foreign exchange contracts
|
|
|
|
|||
Cross-currency swaps
|
3,680
|
|
3,488
|
|
||
Spot, futures and forwards
|
4,310
|
|
3,773
|
|
||
Written options
|
725
|
|
659
|
|
||
Purchased options
|
716
|
|
652
|
|
||
Total foreign exchange contracts
|
9,431
|
|
8,572
|
|
||
Equity contracts
|
|
|
||||
Swaps
(a)
|
198
|
|
187
|
|
||
Futures and forwards
(a)
|
46
|
|
50
|
|
||
Written options
|
474
|
|
425
|
|
||
Purchased options
|
391
|
|
380
|
|
||
Total equity contracts
|
1,109
|
|
1,042
|
|
||
Commodity contracts
|
|
|
|
|||
Swaps
|
130
|
|
124
|
|
||
Spot, futures and forwards
|
218
|
|
234
|
|
||
Written options
|
200
|
|
202
|
|
||
Purchased options
|
196
|
|
203
|
|
||
Total commodity contracts
|
744
|
|
763
|
|
||
Total derivative notional amounts
|
$
|
68,878
|
|
$
|
70,413
|
|
(a)
|
The prior period amount has been revised. This revision had no impact on the Firm’s Consolidated Balance Sheets or its results of operations.
|
(b)
|
For more information on volumes and types of credit derivative contracts, see the Credit derivatives discussion on
page 123
of this Note.
|
(c)
|
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 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.
|
|
June 30, 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”)
|
$
|
498,230
|
|
$
|
(475,647
|
)
|
|
$
|
22,583
|
|
|
$
|
486,449
|
|
$
|
(466,493
|
)
|
|
$
|
19,956
|
|
OTC–cleared
|
316,030
|
|
(315,825
|
)
|
|
205
|
|
|
362,426
|
|
(362,404
|
)
|
|
22
|
|
||||||
Exchange traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
||||||
Total interest rate contracts
|
814,260
|
|
(791,472
|
)
|
|
22,788
|
|
|
848,875
|
|
(828,897
|
)
|
|
19,978
|
|
||||||
Credit contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
OTC
|
69,143
|
|
(68,041
|
)
|
|
1,102
|
|
|
66,269
|
|
(65,725
|
)
|
|
544
|
|
||||||
OTC–cleared
|
11,422
|
|
(10,047
|
)
|
|
1,375
|
|
|
16,841
|
|
(16,279
|
)
|
|
562
|
|
||||||
Total credit contracts
|
80,565
|
|
(78,088
|
)
|
|
2,477
|
|
|
83,110
|
|
(82,004
|
)
|
|
1,106
|
|
||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
|
|
||||||||||||
OTC
|
110,256
|
|
(101,578
|
)
|
|
8,678
|
|
|
148,953
|
|
(136,763
|
)
|
|
12,190
|
|
||||||
OTC–cleared
|
48
|
|
(48
|
)
|
|
—
|
|
|
46
|
|
(46
|
)
|
|
—
|
|
||||||
Exchange traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
||||||
Total foreign exchange contracts
|
110,304
|
|
(101,626
|
)
|
|
8,678
|
|
|
148,999
|
|
(136,809
|
)
|
|
12,190
|
|
||||||
Equity contracts:
|
|
|
|
|
|
|
|
|
|
||||||||||||
OTC
|
23,441
|
|
(23,026
|
)
|
|
415
|
|
|
31,870
|
|
(29,289
|
)
|
|
2,581
|
|
||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
||||||
Exchange traded
(a)
|
20,052
|
|
(17,391
|
)
|
|
2,661
|
|
|
17,732
|
|
(11,415
|
)
|
|
6,317
|
|
||||||
Total equity contracts
|
43,493
|
|
(40,417
|
)
|
|
3,076
|
|
|
49,602
|
|
(40,704
|
)
|
|
8,898
|
|
||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
|
||||||||||||
OTC
|
21,951
|
|
(14,860
|
)
|
|
7,091
|
|
|
21,619
|
|
(15,082
|
)
|
|
6,537
|
|
||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
||||||
Exchange traded
(a)
|
13,414
|
|
(11,683
|
)
|
|
1,731
|
|
|
12,528
|
|
(11,212
|
)
|
|
1,316
|
|
||||||
Total commodity contracts
|
35,365
|
|
(26,543
|
)
|
|
8,822
|
|
|
34,147
|
|
(26,294
|
)
|
|
7,853
|
|
||||||
Derivative receivables with appropriate legal opinion
|
$
|
1,083,987
|
|
$
|
(1,038,146
|
)
|
(b)
|
$
|
45,841
|
|
|
$
|
1,164,733
|
|
$
|
(1,114,708
|
)
|
(b)
|
$
|
50,025
|
|
Derivative receivables where an appropriate legal opinion has not been either sought or obtained
|
16,537
|
|
|
|
16,537
|
|
|
15,734
|
|
|
|
15,734
|
|
||||||||
Total derivative receivables recognized on the Consolidated Balance Sheets
|
$
|
1,100,524
|
|
|
|
$
|
62,378
|
|
|
$
|
1,180,467
|
|
|
|
$
|
65,759
|
|
(a)
|
Exchange traded derivative amounts that relate to futures contracts are settled daily.
|
(b)
|
Included cash collateral netted of
$62.0 billion
and
$63.9 billion
at June 30, 2014, and December 31, 2013, respectively.
|
|
June 30, 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
|
$
|
472,544
|
|
$
|
(461,345
|
)
|
|
$
|
11,199
|
|
|
$
|
467,850
|
|
$
|
(458,081
|
)
|
|
$
|
9,769
|
|
OTC–cleared
|
311,744
|
|
(310,784
|
)
|
|
960
|
|
|
354,698
|
|
(353,990
|
)
|
|
708
|
|
||||||
Exchange traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
||||||
Total interest rate contracts
|
784,288
|
|
(772,129
|
)
|
|
12,159
|
|
|
822,548
|
|
(812,071
|
)
|
|
10,477
|
|
||||||
Credit contracts:
|
|
|
|
|
|
|
|
|
|
||||||||||||
OTC
|
67,182
|
|
(65,923
|
)
|
|
1,259
|
|
|
65,223
|
|
(63,671
|
)
|
|
1,552
|
|
||||||
OTC–cleared
|
11,910
|
|
(10,801
|
)
|
|
1,109
|
|
|
16,506
|
|
(16,450
|
)
|
|
56
|
|
||||||
Total credit contracts
|
79,092
|
|
(76,724
|
)
|
|
2,368
|
|
|
81,729
|
|
(80,121
|
)
|
|
1,608
|
|
||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
|
|
||||||||||||
OTC
|
110,876
|
|
(102,961
|
)
|
|
7,915
|
|
|
155,110
|
|
(144,119
|
)
|
|
10,991
|
|
||||||
OTC–cleared
|
41
|
|
(41
|
)
|
|
—
|
|
|
61
|
|
(59
|
)
|
|
2
|
|
||||||
Exchange traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
||||||
Total foreign exchange contracts
|
110,917
|
|
(103,002
|
)
|
|
7,915
|
|
|
155,171
|
|
(144,178
|
)
|
|
10,993
|
|
||||||
Equity contracts:
|
|
|
|
|
|
|
|
|
|
||||||||||||
OTC
|
29,222
|
|
(25,109
|
)
|
|
4,113
|
|
|
33,295
|
|
(28,520
|
)
|
|
4,775
|
|
||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
||||||
Exchange traded
(a)
|
18,257
|
|
(17,391
|
)
|
|
866
|
|
|
17,349
|
|
(11,415
|
)
|
|
5,934
|
|
||||||
Total equity contracts
|
47,479
|
|
(42,500
|
)
|
|
4,979
|
|
|
50,644
|
|
(39,935
|
)
|
|
10,709
|
|
||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
|
||||||||||||
OTC
|
20,689
|
|
(15,010
|
)
|
|
5,679
|
|
|
21,993
|
|
(15,318
|
)
|
|
6,675
|
|
||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
||||||
Exchange traded
(a)
|
13,177
|
|
(11,683
|
)
|
|
1,494
|
|
|
12,367
|
|
(11,212
|
)
|
|
1,155
|
|
||||||
Total commodity contracts
|
33,866
|
|
(26,693
|
)
|
|
7,173
|
|
|
34,360
|
|
(26,530
|
)
|
|
7,830
|
|
||||||
Derivative payables with appropriate legal opinions
|
$
|
1,055,642
|
|
$
|
(1,021,048
|
)
|
(b)
|
$
|
34,594
|
|
|
$
|
1,144,452
|
|
$
|
(1,102,835
|
)
|
(b)
|
$
|
41,617
|
|
Derivative payables where an appropriate legal opinion has not been either sought or obtained
|
16,201
|
|
|
|
16,201
|
|
|
15,697
|
|
|
|
15,697
|
|
||||||||
Total derivative payables recognized on the Consolidated Balance Sheets
|
$
|
1,071,843
|
|
|
|
$
|
50,795
|
|
|
$
|
1,160,149
|
|
|
|
$
|
57,314
|
|
(a)
|
Exchange traded derivative balances that relate to futures contracts are settled daily.
|
(b)
|
Included cash collateral netted of
$44.9 billion
and
$52.1 billion
related to OTC and OTC-cleared derivatives at June 30, 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.
|
Liquidity impact of downgrade triggers on OTC and
OTC-cleared derivatives
|
|
|
|
|
|
||||||||
|
June 30, 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)
|
$
|
929
|
|
$
|
3,337
|
|
|
$
|
952
|
|
$
|
3,244
|
|
Amount required to settle contracts with termination triggers upon downgrade
(b)
|
578
|
|
920
|
|
|
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 June 30, 2014 (in millions)
|
Derivatives
|
Hedged items
|
Total income statement impact
|
|
Hedge ineffectiveness
(e)
|
Excluded components
(f)
|
||||||||||
Contract type
|
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
578
|
|
$
|
(261
|
)
|
$
|
317
|
|
|
$
|
43
|
|
$
|
274
|
|
Foreign exchange
(b)
|
(388
|
)
|
307
|
|
(81
|
)
|
|
—
|
|
(81
|
)
|
|||||
Commodity
(c)
|
(561
|
)
|
652
|
|
91
|
|
|
13
|
|
78
|
|
|||||
Total
|
$
|
(371
|
)
|
$
|
698
|
|
$
|
327
|
|
|
$
|
56
|
|
$
|
271
|
|
|
|
|
|
|
|
|
||||||||||
|
Gains/(losses) recorded in income
|
|
Income statement impact due to:
|
|||||||||||||
Three months ended June 30, 2013 (in millions)
|
Derivatives
|
|
Hedged items
|
|
Total income statement impact
|
|
Hedge ineffectiveness
(e)
|
Excluded components
(f)
|
||||||||
Contract type
|
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
(2,107
|
)
|
$
|
2,434
|
|
$
|
327
|
|
|
$
|
(60
|
)
|
$
|
387
|
|
Foreign exchange
(b)
|
280
|
|
(368
|
)
|
(88
|
)
|
|
—
|
|
(88
|
)
|
|||||
Commodity
(c)(d)
|
457
|
|
(1,087
|
)
|
(630
|
)
|
|
6
|
|
(636
|
)
|
|||||
Total
|
$
|
(1,370
|
)
|
$
|
979
|
|
$
|
(391
|
)
|
|
$
|
(54
|
)
|
$
|
(337
|
)
|
|
Gains/(losses) recorded in income
|
|
Income statement impact due to:
|
|||||||||||||
Six months ended June 30, 2014 (in millions)
|
Derivatives
|
Hedged items
|
Total income statement impact
|
|
Hedge ineffectiveness
(e)
|
Excluded components
(f)
|
||||||||||
Contract type
|
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
1,321
|
|
$
|
(668
|
)
|
$
|
653
|
|
|
$
|
72
|
|
$
|
581
|
|
Foreign exchange
(b)
|
(786
|
)
|
631
|
|
(155
|
)
|
|
—
|
|
(155
|
)
|
|||||
Commodity
(c)
|
(381
|
)
|
514
|
|
133
|
|
|
28
|
|
105
|
|
|||||
Total
|
$
|
154
|
|
$
|
477
|
|
$
|
631
|
|
|
$
|
100
|
|
$
|
531
|
|
|
|
|
|
|
|
|
||||||||||
|
Gains/(losses) recorded in income
|
|
Income statement impact due to:
|
|||||||||||||
Six months ended June 30, 2013 (in millions)
|
Derivatives
|
|
Hedged items
|
|
Total income statement impact
|
|
Hedge ineffectiveness
(e)
|
Excluded components
(f)
|
||||||||
Contract type
|
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
(2,606
|
)
|
$
|
3,309
|
|
$
|
703
|
|
|
$
|
(100
|
)
|
$
|
803
|
|
Foreign exchange
(b)
|
4,033
|
|
(4,120
|
)
|
(87
|
)
|
|
—
|
|
(87
|
)
|
|||||
Commodity
(c)(d)
|
1,208
|
|
(1,812
|
)
|
(604
|
)
|
|
(12
|
)
|
(592
|
)
|
|||||
Total
|
$
|
2,635
|
|
$
|
(2,623
|
)
|
$
|
12
|
|
|
$
|
(112
|
)
|
$
|
124
|
|
(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)
|
The prior period amounts have been revised. This revision had no impact on the Firm’s Consolidated Balance Sheets or its results of operations.
|
(e)
|
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.
|
(f)
|
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 June 30, 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)
|
$
|
(10
|
)
|
$
|
—
|
|
$
|
(10
|
)
|
$
|
71
|
|
$
|
81
|
|
Foreign exchange
(b)
|
39
|
|
—
|
|
39
|
|
72
|
|
33
|
|
|||||
Total
|
$
|
29
|
|
$
|
—
|
|
$
|
29
|
|
$
|
143
|
|
$
|
114
|
|
|
Gains/(losses) recorded in income and other comprehensive income/(loss)
(c)
|
||||||||||||||
Three months ended June 30, 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)
|
$
|
(14
|
)
|
$
|
—
|
|
$
|
(14
|
)
|
$
|
(500
|
)
|
$
|
(486
|
)
|
Foreign exchange
(b)
|
(20
|
)
|
—
|
|
(20
|
)
|
(12
|
)
|
8
|
|
|||||
Total
|
$
|
(34
|
)
|
$
|
—
|
|
$
|
(34
|
)
|
$
|
(512
|
)
|
$
|
(478
|
)
|
|
Gains/(losses) recorded in income and other comprehensive income/(loss)
(c)
|
||||||||||||||
Six months ended June 30, 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)
|
$
|
(36
|
)
|
$
|
—
|
|
$
|
(36
|
)
|
$
|
134
|
|
$
|
170
|
|
Foreign exchange
(b)
|
38
|
|
—
|
|
38
|
|
81
|
|
43
|
|
|||||
Total
|
$
|
2
|
|
$
|
—
|
|
$
|
2
|
|
$
|
215
|
|
$
|
213
|
|
|
Gains/(losses) recorded in income and other comprehensive income/(loss)
(c)
|
||||||||||||||
Six months ended June 30, 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)
|
$
|
(41
|
)
|
$
|
—
|
|
$
|
(41
|
)
|
$
|
(526
|
)
|
$
|
(485
|
)
|
Foreign exchange
(b)
|
(22
|
)
|
—
|
|
(22
|
)
|
(116
|
)
|
(94
|
)
|
|||||
Total
|
$
|
(63
|
)
|
$
|
—
|
|
$
|
(63
|
)
|
$
|
(642
|
)
|
$
|
(579
|
)
|
(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 and six months ended
June 30, 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 June 30,
(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
|
|
$
|
(122
|
)
|
|
$
|
(208
|
)
|
|
|
$
|
(85
|
)
|
|
$
|
571
|
|
|
Gains/(losses) recorded in income and
other comprehensive income/(loss)
|
||||||||||||||||
|
2014
|
|
2013
|
||||||||||||||
Six months ended June 30,
(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
|
|
$
|
(227
|
)
|
|
$
|
(362
|
)
|
|
|
$
|
(162
|
)
|
|
$
|
991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives gains/(losses)
recorded in income
|
|||||||||||
|
Three months ended June 30,
|
Six months
ended June 30,
|
||||||||||
(in millions)
|
2014
|
2013
|
2014
|
2013
|
||||||||
Contract type
|
|
|
|
|
||||||||
Interest rate
(a)
|
$
|
589
|
|
$
|
269
|
|
$
|
1,107
|
|
$
|
727
|
|
Credit
(b)
|
(24
|
)
|
(8
|
)
|
(41
|
)
|
(39
|
)
|
||||
Foreign exchange
(c)
|
(3
|
)
|
—
|
|
(3
|
)
|
1
|
|
||||
Commodity
(d)
|
(21
|
)
|
40
|
|
162
|
|
74
|
|
||||
Total
|
$
|
541
|
|
$
|
301
|
|
$
|
1,225
|
|
$
|
763
|
|
(a)
|
Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in the mortgage pipeline, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. 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 hedges of the foreign exchange risk of specified foreign currency-denominated liabilities. Gains and losses were recorded in principal transactions revenue.
|
(d)
|
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
|
|
|||||||||||||
June 30, 2014
(in millions)
|
Protection sold
|
Protection
purchased with
identical underlyings
(c)
|
Net protection (sold)/purchased
(d)
|
|
Other protection purchased
(e)
|
|
|||||||||
Credit derivatives
|
|
|
|
|
|
|
|
||||||||
Credit default swaps
|
$
|
(2,370,387
|
)
|
|
$
|
2,573,221
|
|
$
|
202,834
|
|
|
$
|
19,406
|
|
|
Other credit derivatives
(a)
|
(63,840
|
)
|
|
48,135
|
|
(15,705
|
)
|
|
24,692
|
|
|
||||
Total credit derivatives
|
(2,434,227
|
)
|
|
2,621,356
|
|
187,129
|
|
|
44,098
|
|
|
||||
Credit-related notes
|
(114
|
)
|
|
—
|
|
(114
|
)
|
|
2,892
|
|
|
||||
Total
|
$
|
(2,434,341
|
)
|
|
$
|
2,621,356
|
|
$
|
187,015
|
|
|
$
|
46,990
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Maximum payout/Notional amount
|
|
|||||||||||||
December 31, 2013 (in millions)
|
Protection sold
|
Protection
purchased with
identical underlyings
(c)
|
Net protection (sold)/purchased
(d)
|
|
Other protection purchased
(e)
|
|
|||||||||
Credit derivatives
|
|
|
|
|
|
|
|
||||||||
Credit default swaps
|
$
|
(2,601,581
|
)
|
|
$
|
2,610,198
|
|
$
|
8,617
|
|
|
$
|
8,722
|
|
|
Other credit derivatives
(a)
|
(44,137
|
)
|
(b)
|
45,921
|
|
1,784
|
|
(b)
|
20,480
|
|
(b)
|
||||
Total credit derivatives
|
(2,645,718
|
)
|
|
2,656,119
|
|
10,401
|
|
|
29,202
|
|
|
||||
Credit-related notes
|
(130
|
)
|
|
—
|
|
(130
|
)
|
|
2,720
|
|
|
||||
Total
|
$
|
(2,645,848
|
)
|
|
$
|
2,656,119
|
|
$
|
10,271
|
|
|
$
|
31,922
|
|
|
(a)
|
Other credit derivatives predominantly consists of credit swap options.
|
(b)
|
The prior period amounts have been revised. This revision had no impact on the Firm’s Consolidated Balance Sheets or its results of operations.
|
(c)
|
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.
|
(d)
|
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.
|
(e)
|
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
(c)
|
|
Fair value of payables
(c)
|
|
Net fair value
|
|
||||||||||||||
Risk rating of reference entity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Investment-grade
|
$
|
(368,712
|
)
|
(b)
|
$
|
(1,469,773
|
)
|
(b)
|
$
|
(93,209
|
)
|
(b)
|
$
|
(1,931,694
|
)
|
(b)
|
$
|
31,730
|
|
(b)
|
$
|
(5,664
|
)
|
(b)
|
$
|
26,066
|
|
(b)
|
Noninvestment-grade
|
(140,540
|
)
|
|
(544,671
|
)
|
|
(28,943
|
)
|
|
(714,154
|
)
|
|
27,426
|
|
|
(16,674
|
)
|
|
10,752
|
|
|
|||||||
Total
|
$
|
(509,252
|
)
|
|
$
|
(2,014,444
|
)
|
|
$
|
(122,152
|
)
|
|
$
|
(2,645,848
|
)
|
|
$
|
59,156
|
|
|
$
|
(22,338
|
)
|
|
$
|
36,818
|
|
|
(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)
|
The prior period amounts have been revised. This revision had no impact on the Firm’s Consolidated Balance Sheets or its results of operations.
|
(c)
|
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 June 30,
|
|
Six months ended
June 30,
|
||||||||||||
(in millions)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Underwriting
|
|
|
|
|
|
|
|
||||||||
Equity
|
$
|
477
|
|
|
$
|
457
|
|
|
$
|
830
|
|
|
$
|
730
|
|
Debt
|
876
|
|
|
956
|
|
|
1,559
|
|
|
1,873
|
|
||||
Total underwriting
|
1,353
|
|
|
1,413
|
|
|
2,389
|
|
|
2,603
|
|
||||
Advisory
|
398
|
|
|
304
|
|
|
782
|
|
|
559
|
|
||||
Total investment banking fees
|
$
|
1,751
|
|
|
$
|
1,717
|
|
|
$
|
3,171
|
|
|
$
|
3,162
|
|
|
Three months ended June 30,
|
|
Six months ended
June 30,
|
||||||||||||
(in millions)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Trading revenue
by instrument type
(a)
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
$
|
626
|
|
|
$
|
434
|
|
|
$
|
981
|
|
|
$
|
884
|
|
Credit
|
603
|
|
|
701
|
|
|
1,129
|
|
|
2,002
|
|
||||
Foreign exchange
|
342
|
|
|
701
|
|
|
868
|
|
|
1,202
|
|
||||
Equity
|
759
|
|
|
897
|
|
|
1,564
|
|
|
1,986
|
|
||||
Commodity
(b)
|
347
|
|
|
547
|
|
|
1,035
|
|
|
1,239
|
|
||||
Total trading revenue
|
2,677
|
|
|
3,280
|
|
|
5,577
|
|
|
7,313
|
|
||||
Private equity
gains/(losses)
(c)
|
231
|
|
|
480
|
|
|
653
|
|
|
208
|
|
||||
Principal transactions
|
$
|
2,908
|
|
|
$
|
3,760
|
|
|
$
|
6,230
|
|
|
$
|
7,521
|
|
(a)
|
Prior to the second quarter of 2014, trading revenue was presented by major underlying type of risk exposure, generally determined based upon the business primarily responsible for managing that risk exposure. Prior period amounts have been revised to conform with the current period presentation. This revision had no impact on the Firm’s Consolidated Balance Sheets or results of operations.
|
(b)
|
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.
|
(c)
|
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 June 30,
|
|
Six months ended
June 30,
|
||||||||||||
(in millions)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Asset management fees
|
|
|
|
|
|
|
|
||||||||
Investment management fees
(a)
|
$
|
2,260
|
|
|
$
|
1,948
|
|
|
$
|
4,356
|
|
|
$
|
3,773
|
|
All other asset management fees
(b)
|
131
|
|
|
139
|
|
|
254
|
|
|
263
|
|
||||
Total asset management fees
|
2,391
|
|
|
2,087
|
|
|
4,610
|
|
|
4,036
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total administration fees
(c)
|
564
|
|
|
548
|
|
|
1,091
|
|
|
1,075
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Commission and other fees
|
|
|
|
|
|
|
|
||||||||
Brokerage commissions
|
567
|
|
|
625
|
|
|
1,199
|
|
|
1,205
|
|
||||
All other commissions and fees
|
485
|
|
|
605
|
|
|
943
|
|
|
1,148
|
|
||||
Total commissions and fees
|
1,052
|
|
|
1,230
|
|
|
2,142
|
|
|
2,353
|
|
||||
Total asset management, administration and commissions
|
$
|
4,007
|
|
|
$
|
3,865
|
|
|
$
|
7,843
|
|
|
$
|
7,464
|
|
(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 June 30,
|
|
Six months
ended June 30,
|
|
||||||||||||
(in millions)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
||||||||
Interest income
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
8,039
|
|
|
$
|
8,341
|
|
|
$
|
16,078
|
|
|
$
|
16,854
|
|
|
Taxable securities
|
1,940
|
|
|
1,581
|
|
|
3,840
|
|
|
3,288
|
|
|
||||
Tax-exempt securities
|
337
|
|
|
197
|
|
|
654
|
|
|
380
|
|
|
||||
Total securities
|
2,277
|
|
|
1,778
|
|
|
4,494
|
|
|
3,668
|
|
|
||||
Trading assets
|
1,827
|
|
|
2,124
|
|
(d)
|
3,598
|
|
|
4,335
|
|
(d)
|
||||
Federal funds sold and securities purchased under resale agreements
|
398
|
|
|
490
|
|
|
834
|
|
|
1,004
|
|
|
||||
Securities borrowed
(a)
|
(131
|
)
|
|
(30
|
)
|
|
(219
|
)
|
|
(36
|
)
|
|
||||
Deposits with banks
|
279
|
|
|
222
|
|
|
535
|
|
|
385
|
|
|
||||
Other assets
(b)
|
172
|
|
|
147
|
|
|
334
|
|
|
227
|
|
|
||||
Total interest income
|
12,861
|
|
|
13,072
|
|
(d)
|
25,654
|
|
|
26,437
|
|
(d)
|
||||
Interest expense
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing deposits
|
417
|
|
|
539
|
|
|
843
|
|
|
1,084
|
|
|
||||
Short-term and other liabilities
(c)
|
455
|
|
|
442
|
|
(d)
|
883
|
|
|
900
|
|
(d)
|
||||
Long-term debt
|
1,086
|
|
|
1,261
|
|
|
2,253
|
|
|
2,556
|
|
|
||||
Beneficial interests issued by consolidated VIEs
|
105
|
|
|
126
|
|
|
210
|
|
|
260
|
|
|
||||
Total interest expense
|
2,063
|
|
|
2,368
|
|
(d)
|
4,189
|
|
|
4,800
|
|
(d)
|
||||
Net interest income
|
10,798
|
|
|
10,704
|
|
|
21,465
|
|
|
21,637
|
|
|
||||
Provision for credit losses
|
692
|
|
|
47
|
|
|
1,542
|
|
|
664
|
|
|
||||
Net interest income after provision for credit losses
|
$
|
10,106
|
|
|
$
|
10,657
|
|
|
$
|
19,923
|
|
|
$
|
20,973
|
|
|
(a)
|
Negative interest income for the three and six months ended June 30, 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.
|
(b)
|
Largely margin loans.
|
(c)
|
Includes brokerage customer payables.
|
(d)
|
Effective January 1,2014, 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 June 30, (in millions)
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
||||||
Components of net periodic benefit cost
|
|
|
|
|
|
|
|
|
||||||||||||
Benefits earned during the period
|
$
|
70
|
|
$
|
79
|
|
|
$
|
8
|
|
$
|
8
|
|
|
$
|
—
|
|
$
|
—
|
|
Interest cost on benefit obligations
|
134
|
|
111
|
|
|
36
|
|
30
|
|
|
9
|
|
9
|
|
||||||
Expected return on plan assets
|
(246
|
)
|
(238
|
)
|
|
(45
|
)
|
(34
|
)
|
|
(25
|
)
|
(24
|
)
|
||||||
Amortization:
|
|
|
|
|
|
|
|
|
||||||||||||
Net (gain)/loss
|
7
|
|
67
|
|
|
12
|
|
12
|
|
|
—
|
|
—
|
|
||||||
Prior service cost/(credit)
|
(12
|
)
|
(11
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Net periodic defined benefit cost
|
(47
|
)
|
8
|
|
|
11
|
|
16
|
|
|
(16
|
)
|
(15
|
)
|
||||||
Other defined benefit pension plans
(a)
|
4
|
|
4
|
|
|
1
|
|
4
|
|
|
NA
|
|
NA
|
|
||||||
Total defined benefit plans
|
(43
|
)
|
12
|
|
|
12
|
|
20
|
|
|
(16
|
)
|
(15
|
)
|
||||||
Total defined contribution plans
|
110
|
|
115
|
|
|
87
|
|
80
|
|
|
NA
|
|
NA
|
|
||||||
Total pension and OPEB cost included in compensation expense
|
$
|
67
|
|
$
|
127
|
|
|
$
|
99
|
|
$
|
100
|
|
|
$
|
(16
|
)
|
$
|
(15
|
)
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
Pension plans
|
|
|
|
||||||||||||||||
|
U.S.
|
|
Non-U.S.
|
|
OPEB plans
|
|||||||||||||||
Six months ended June 30, (in millions)
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
||||||
Components of net periodic benefit cost
|
|
|
|
|
|
|
|
|
||||||||||||
Benefits earned during the period
|
$
|
140
|
|
$
|
157
|
|
|
$
|
17
|
|
$
|
17
|
|
|
$
|
—
|
|
$
|
—
|
|
Interest cost on benefit obligations
|
268
|
|
223
|
|
|
70
|
|
60
|
|
|
18
|
|
18
|
|
||||||
Expected return on plan assets
|
(492
|
)
|
(477
|
)
|
|
(89
|
)
|
(68
|
)
|
|
(50
|
)
|
(46
|
)
|
||||||
Amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net (gain)/loss
|
13
|
|
135
|
|
|
24
|
|
24
|
|
|
—
|
|
1
|
|
||||||
Prior service cost/(credit)
|
(22
|
)
|
(21
|
)
|
|
—
|
|
(1
|
)
|
|
—
|
|
—
|
|
||||||
Net periodic defined benefit cost
|
(93
|
)
|
17
|
|
|
22
|
|
32
|
|
|
(32
|
)
|
(27
|
)
|
||||||
Other defined benefit pension plans
(a)
|
7
|
|
7
|
|
|
3
|
|
6
|
|
|
NA
|
|
NA
|
|
||||||
Total defined benefit plans
|
(86
|
)
|
24
|
|
|
25
|
|
38
|
|
|
(32
|
)
|
(27
|
)
|
||||||
Total defined contribution plans
|
218
|
|
220
|
|
|
167
|
|
159
|
|
|
NA
|
|
NA
|
|
||||||
Total pension and OPEB cost included in compensation expense
|
$
|
132
|
|
$
|
244
|
|
|
$
|
192
|
|
$
|
197
|
|
|
$
|
(32
|
)
|
$
|
(27
|
)
|
(a)
|
Includes various defined benefit pension plans which are individually immaterial.
|
|
Three months ended June 30,
|
|
Six months
ended June 30,
|
||||||||||||
(in millions)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Cost of prior grants of restricted stock units (“RSUs”) and stock appreciation rights (“SARs”) that are amortized over their applicable vesting periods
|
$
|
335
|
|
|
$
|
372
|
|
|
$
|
745
|
|
|
$
|
756
|
|
Accrual of estimated costs of stock awards to be granted in future periods including those to full-career eligible employees
|
189
|
|
|
214
|
|
|
397
|
|
|
471
|
|
||||
Total noncash compensation expense related to employee stock-based incentive plans
|
$
|
524
|
|
|
$
|
586
|
|
|
$
|
1,142
|
|
|
$
|
1,227
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Compensation expense
|
$
|
7,610
|
|
|
$
|
8,019
|
|
|
$
|
15,469
|
|
|
$
|
16,433
|
|
Noncompensation expense:
|
|
|
|
|
|
|
|
||||||||
Occupancy expense
|
973
|
|
|
904
|
|
|
1,925
|
|
|
1,805
|
|
||||
Technology, communications and equipment expense
|
1,433
|
|
|
1,361
|
|
|
2,844
|
|
|
2,693
|
|
||||
Professional and outside services
|
1,932
|
|
|
1,901
|
|
|
3,718
|
|
|
3,635
|
|
||||
Marketing
|
650
|
|
|
578
|
|
|
1,214
|
|
|
1,167
|
|
||||
Other expense
(a)(b)
|
2,701
|
|
|
2,951
|
|
|
4,634
|
|
|
5,252
|
|
||||
Amortization of intangibles
|
132
|
|
|
152
|
|
|
263
|
|
|
304
|
|
||||
Total noncompensation expense
|
7,821
|
|
|
7,847
|
|
|
14,598
|
|
|
14,856
|
|
||||
Total noninterest expense
|
$
|
15,431
|
|
|
$
|
15,866
|
|
|
$
|
30,067
|
|
|
$
|
31,289
|
|
(a)
|
Included firmwide legal expense of
$669 million
and
$678 million
for the three months ended June 30, 2014 and 2013 respectively, and
$707 million
and
$1.0 billion
for the six months ended June 30, 2014 and 2013.
|
(b)
|
Included FDIC-related expense of
$266 million
and
$392 million
for the three months ended June 30, 2014 and 2013, respectively, and
$559 million
and
$771 million
for the six months ended June 30, 2014 and 2013.
|
|
Three months
ended June 30,
|
|
Six months
ended June 30,
|
|||||||||||
(in millions)
|
2014
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
||||
Realized gains
|
$
|
76
|
|
$
|
143
|
|
|
$
|
224
|
|
|
$
|
664
|
|
Realized losses
|
(64
|
)
|
(13
|
)
|
|
(180
|
)
|
|
(25
|
)
|
||||
Net realized gains
(a)
|
12
|
|
130
|
|
|
44
|
|
|
639
|
|
||||
OTTI losses:
|
|
|
|
|
|
|
||||||||
Securities the Firm intends to sell
|
—
|
|
(6
|
)
|
|
(2
|
)
|
(b)
|
(6
|
)
|
||||
Total OTTI losses recognized in income
|
—
|
|
(6
|
)
|
|
(2
|
)
|
|
(6
|
)
|
||||
Net securities gains
|
$
|
12
|
|
$
|
124
|
|
|
$
|
42
|
|
|
$
|
633
|
|
(a)
|
Total proceeds from securities sold were within approximately
1%
and
1%
of amortized cost for the three and six months ended June 30, 2014, respectively and
1%
and
3%
of amortized cost for the three and six months ended June 30, 2013.
|
(b)
|
Excludes realized losses of
$1 million
for the six months ended June 30, 2014 that had been previously reported as an OTTI loss due to the intention to sell the securities.
|
|
June 30, 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)
|
$
|
62,353
|
|
$
|
2,328
|
|
$
|
169
|
|
|
$
|
64,512
|
|
|
$
|
76,428
|
|
$
|
2,364
|
|
$
|
977
|
|
|
$
|
77,815
|
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Prime and Alt-A
|
3,487
|
|
75
|
|
27
|
|
|
3,535
|
|
|
2,744
|
|
61
|
|
27
|
|
|
2,778
|
|
||||||||
Subprime
|
815
|
|
20
|
|
—
|
|
|
835
|
|
|
908
|
|
23
|
|
1
|
|
|
930
|
|
||||||||
Non-U.S.
|
52,466
|
|
1,403
|
|
—
|
|
|
53,869
|
|
|
57,448
|
|
1,314
|
|
1
|
|
|
58,761
|
|
||||||||
Commercial
|
17,816
|
|
601
|
|
4
|
|
|
18,413
|
|
|
15,891
|
|
560
|
|
26
|
|
|
16,425
|
|
||||||||
Total mortgage-backed securities
|
136,937
|
|
4,427
|
|
200
|
|
|
141,164
|
|
|
153,419
|
|
4,322
|
|
1,032
|
|
|
156,709
|
|
||||||||
U.S. Treasury and government agencies
(a)
|
19,279
|
|
82
|
|
2
|
|
|
19,359
|
|
|
21,310
|
|
385
|
|
306
|
|
|
21,389
|
|
||||||||
Obligations of U.S. states and municipalities
|
26,480
|
|
1,694
|
|
88
|
|
|
28,086
|
|
|
29,741
|
|
707
|
|
987
|
|
|
29,461
|
|
||||||||
Certificates of deposit
|
1,411
|
|
1
|
|
2
|
|
|
1,410
|
|
|
1,041
|
|
1
|
|
1
|
|
|
1,041
|
|
||||||||
Non-U.S. government debt securities
|
56,727
|
|
1,170
|
|
52
|
|
|
57,845
|
|
|
55,507
|
|
863
|
|
122
|
|
|
56,248
|
|
||||||||
Corporate debt securities
|
20,779
|
|
590
|
|
13
|
|
|
21,356
|
|
|
21,043
|
|
498
|
|
29
|
|
|
21,512
|
|
||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Collateralized loan obligations
|
28,299
|
|
224
|
|
73
|
|
|
28,450
|
|
|
28,130
|
|
236
|
|
136
|
|
|
28,230
|
|
||||||||
Other
|
12,890
|
|
218
|
|
—
|
|
|
13,108
|
|
|
12,062
|
|
186
|
|
3
|
|
|
12,245
|
|
||||||||
Total available-for-sale debt securities
|
302,802
|
|
8,406
|
|
430
|
|
|
310,778
|
|
|
322,253
|
|
7,198
|
|
2,616
|
|
|
326,835
|
|
||||||||
Available-for-sale equity securities
|
3,278
|
|
13
|
|
—
|
|
|
3,291
|
|
|
3,125
|
|
17
|
|
—
|
|
|
3,142
|
|
||||||||
Total available-for-sale securities
|
$
|
306,080
|
|
$
|
8,419
|
|
$
|
430
|
|
|
$
|
314,069
|
|
|
$
|
325,378
|
|
$
|
7,215
|
|
$
|
2,616
|
|
|
$
|
329,977
|
|
Total held-to-maturity securities
(b)
|
$
|
47,849
|
|
$
|
1,314
|
|
$
|
—
|
|
|
$
|
49,163
|
|
|
$
|
24,026
|
|
$
|
22
|
|
$
|
317
|
|
|
$
|
23,731
|
|
(a)
|
Included total U.S. government-sponsored enterprise obligations with fair values of
$58.2 billion
and
$67.0 billion
at June 30, 2014, and
December 31, 2013
, respectively.
|
(b)
|
As of June 30, 2014, consists of MBS issued by U. S. government-sponsored enterprises with an amortized cost of
$35.4 billion
, MBS issued by U.S. government agencies with an amortized cost of
$4.1 billion
and obligations of U.S. states and municipalities with an amortized cost of
$8.3 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
|
|
|
||||||||||||||
June 30, 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
|
$
|
1,354
|
|
$
|
17
|
|
|
$
|
7,131
|
|
$
|
152
|
|
$
|
8,485
|
|
$
|
169
|
|
Residential:
|
|
|
|
|
|
|
|
||||||||||||
Prime and Alt-A
|
536
|
|
2
|
|
|
462
|
|
25
|
|
998
|
|
27
|
|
||||||
Subprime
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Non-U.S.
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Commercial
|
—
|
|
—
|
|
|
165
|
|
4
|
|
165
|
|
4
|
|
||||||
Total mortgage-backed securities
|
1,890
|
|
19
|
|
|
7,758
|
|
181
|
|
9,648
|
|
200
|
|
||||||
U.S. Treasury and government agencies
|
—
|
|
—
|
|
|
1,994
|
|
2
|
|
1,994
|
|
2
|
|
||||||
Obligations of U.S. states and municipalities
|
3,574
|
|
75
|
|
|
556
|
|
13
|
|
4,130
|
|
88
|
|
||||||
Certificates of deposit
|
1,276
|
|
2
|
|
|
—
|
|
—
|
|
1,276
|
|
2
|
|
||||||
Non-U.S. government debt securities
|
8,925
|
|
18
|
|
|
1,481
|
|
34
|
|
10,406
|
|
52
|
|
||||||
Corporate debt securities
|
2,193
|
|
8
|
|
|
337
|
|
5
|
|
2,530
|
|
13
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||||||
Collateralized loan obligations
|
9,052
|
|
28
|
|
|
5,102
|
|
45
|
|
14,154
|
|
73
|
|
||||||
Other
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Total available-for-sale debt securities
|
26,910
|
|
150
|
|
|
17,228
|
|
280
|
|
44,138
|
|
430
|
|
||||||
Available-for-sale equity securities
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Held-to-maturity securities
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Total securities with gross unrealized losses
|
$
|
26,910
|
|
$
|
150
|
|
|
$
|
17,228
|
|
$
|
280
|
|
$
|
44,138
|
|
$
|
430
|
|
|
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
|
|
|
Three months ended June 30,
|
|
Six months
ended June 30,
|
||||||||||
(in millions)
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
||||
Balance, beginning of period
|
$
|
1
|
|
$
|
519
|
|
|
$
|
1
|
|
$
|
522
|
|
Reductions:
|
|
|
|
|
|
||||||||
Sales and redemptions of credit-impaired securities
|
—
|
|
—
|
|
|
—
|
|
(3
|
)
|
||||
Balance, end of period
|
$
|
1
|
|
$
|
519
|
|
|
$
|
1
|
|
$
|
519
|
|
|
|
|
By remaining maturity
June 30, 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
|
$
|
677
|
|
$
|
18,314
|
|
$
|
9,278
|
|
$
|
108,668
|
|
$
|
136,937
|
|
Fair value
|
683
|
|
18,811
|
|
9,538
|
|
112,132
|
|
141,164
|
|
|||||
Average yield
(b)
|
2.50
|
%
|
1.69
|
%
|
2.67
|
%
|
3.07
|
%
|
2.86
|
%
|
|||||
U.S. Treasury and government agencies
(a)
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
12,418
|
|
$
|
3,998
|
|
$
|
1,887
|
|
$
|
976
|
|
$
|
19,279
|
|
Fair value
|
12,430
|
|
4,007
|
|
1,890
|
|
1,032
|
|
19,359
|
|
|||||
Average yield
(b)
|
0.27
|
%
|
0.51
|
%
|
0.30
|
%
|
0.72
|
%
|
0.34
|
%
|
|||||
Obligations of U.S. states and municipalities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
60
|
|
$
|
467
|
|
$
|
1,407
|
|
$
|
24,546
|
|
$
|
26,480
|
|
Fair value
|
60
|
|
491
|
|
1,467
|
|
26,068
|
|
28,086
|
|
|||||
Average yield
(b)
|
2.61
|
%
|
4.40
|
%
|
4.28
|
%
|
6.82
|
%
|
6.63
|
%
|
|||||
Certificates of deposit
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
1,359
|
|
$
|
52
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,411
|
|
Fair value
|
1,357
|
|
53
|
|
—
|
|
—
|
|
1,410
|
|
|||||
Average yield
(b)
|
2.67
|
%
|
3.28
|
%
|
—
|
%
|
—
|
%
|
2.69
|
%
|
|||||
Non-U.S. government debt securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
11,946
|
|
$
|
15,186
|
|
$
|
25,380
|
|
$
|
4,215
|
|
$
|
56,727
|
|
Fair value
|
11,976
|
|
15,419
|
|
26,066
|
|
4,384
|
|
57,845
|
|
|||||
Average yield
(b)
|
3.52
|
%
|
2.51
|
%
|
1.25
|
%
|
1.20
|
%
|
2.06
|
%
|
|||||
Corporate debt securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
3,692
|
|
$
|
10,843
|
|
$
|
6,244
|
|
$
|
—
|
|
$
|
20,779
|
|
Fair value
|
3,707
|
|
11,139
|
|
6,510
|
|
—
|
|
21,356
|
|
|||||
Average yield
(b)
|
2.15
|
%
|
2.35
|
%
|
2.47
|
%
|
—
|
%
|
2.35
|
%
|
|||||
Asset-backed securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
15
|
|
$
|
3,382
|
|
$
|
17,523
|
|
$
|
20,269
|
|
$
|
41,189
|
|
Fair value
|
15
|
|
3,408
|
|
17,653
|
|
20,482
|
|
41,558
|
|
|||||
Average yield
(b)
|
2.15
|
%
|
2.10
|
%
|
1.79
|
%
|
1.80
|
%
|
1.82
|
%
|
|||||
Total available-for-sale debt securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
30,167
|
|
$
|
52,242
|
|
$
|
61,719
|
|
$
|
158,674
|
|
$
|
302,802
|
|
Fair value
|
30,228
|
|
53,328
|
|
63,124
|
|
164,098
|
|
310,778
|
|
|||||
Average yield
(b)
|
1.95
|
%
|
2.02
|
%
|
1.78
|
%
|
3.42
|
%
|
2.70
|
%
|
|||||
Available-for-sale equity securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,278
|
|
$
|
3,278
|
|
Fair value
|
—
|
|
—
|
|
—
|
|
3,291
|
|
3,291
|
|
|||||
Average yield
(b)
|
—
|
%
|
—
|
%
|
—
|
%
|
0.18
|
%
|
0.18
|
%
|
|||||
Total available-for-sale securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
30,167
|
|
$
|
52,242
|
|
$
|
61,719
|
|
$
|
161,952
|
|
$
|
306,080
|
|
Fair value
|
30,228
|
|
53,328
|
|
63,124
|
|
167,389
|
|
314,069
|
|
|||||
Average yield
(b)
|
1.95
|
%
|
2.02
|
%
|
1.78
|
%
|
3.36
|
%
|
2.67
|
%
|
|||||
Total held-to-maturity securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
—
|
|
$
|
56
|
|
$
|
346
|
|
$
|
47,447
|
|
$
|
47,849
|
|
Fair value
|
—
|
|
56
|
|
358
|
|
48,749
|
|
49,163
|
|
|||||
Average yield
(b)
|
—
|
%
|
4.28
|
%
|
4.75
|
%
|
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 June 30, 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,
three years
for agency residential collateralized mortgage obligations and
four years
for nonagency residential collateralized mortgage obligations.
|
|
June 30, 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
|
$
|
365,647
|
|
$
|
(124,143
|
)
|
$
|
241,504
|
|
|
|
$
|
354,814
|
|
$
|
(115,408
|
)
|
$
|
239,406
|
|
|
Securities purchased under resale agreements where an appropriate legal opinion has not been either sought or obtained
|
6,318
|
|
|
6,318
|
|
|
|
8,279
|
|
|
8,279
|
|
|
||||||||
Total securities purchased under resale agreements
|
$
|
371,965
|
|
$
|
(124,143
|
)
|
$
|
247,822
|
|
(a)
|
|
$
|
363,093
|
|
$
|
(115,408
|
)
|
$
|
247,685
|
|
(a)
|
Securities borrowed
|
$
|
113,967
|
|
NA
|
|
$
|
113,967
|
|
(b)(c)
|
|
$
|
111,465
|
|
NA
|
|
$
|
111,465
|
|
(b)(c)
|
(a)
|
At
June 30, 2014
, and
December 31, 2013
, included securities purchased under resale agreements of
$27.8 billion
and
$25.1 billion
, respectively, accounted for at fair value.
|
(b)
|
At
June 30, 2014
, and
December 31, 2013
, included securities borrowed of
$2.1 billion
and
$3.7 billion
, respectively, accounted for at fair value.
|
(c)
|
Included
$27.2 billion
and
$26.9 billion
at
June 30, 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.
|
|
June 30, 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
|
$
|
241,504
|
|
|
$
|
(238,035
|
)
|
$
|
(192
|
)
|
$
|
3,277
|
|
|
$
|
239,406
|
|
|
$
|
(234,495
|
)
|
$
|
(98
|
)
|
$
|
4,813
|
|
Securities borrowed
|
$
|
86,802
|
|
|
$
|
(84,106
|
)
|
$
|
—
|
|
$
|
2,696
|
|
|
$
|
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.
|
|
June 30, 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
|
$
|
300,208
|
|
$
|
(124,143
|
)
|
$
|
176,065
|
|
|
|
$
|
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)
|
18,910
|
|
|
18,910
|
|
|
|
18,143
|
|
(f)
|
|
18,143
|
|
(f)
|
||||||||
Total securities sold under repurchase agreements
|
$
|
319,118
|
|
$
|
(124,143
|
)
|
$
|
194,975
|
|
(c)
|
|
$
|
275,773
|
|
|
$
|
(115,408
|
)
|
$
|
160,365
|
|
(c)
|
Securities loaned
(b)
|
$
|
26,206
|
|
NA
|
|
$
|
26,206
|
|
(d)(e)
|
|
$
|
25,769
|
|
|
NA
|
|
$
|
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
June 30, 2014
, and
December 31, 2013
, respectively, when acting as lender and as presented within other liabilities in the Consolidated Balance Sheets.
|
(c)
|
At
June 30, 2014
, and
December 31, 2013
, included securities sold under repurchase agreements of
$2.6 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
June 30, 2014
.
|
(e)
|
Included
$472 million
and
$397 million
at
June 30, 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.
|
|
June 30, 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
|
$
|
176,065
|
|
|
$
|
(173,730
|
)
|
$
|
(345
|
)
|
$
|
1,990
|
|
|
$
|
142,222
|
|
(d)
|
$
|
(139,051
|
)
|
(d)
|
$
|
(450
|
)
|
$
|
2,721
|
|
Securities loaned
|
$
|
25,734
|
|
|
$
|
(25,390
|
)
|
$
|
—
|
|
$
|
344
|
|
|
$
|
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
special-purpose entities (“SPEs”)
and loans to private banking clients. See Note 1 of
JPMorgan Chase
’s
2013
Annual Report
for additional information on SPEs.
|
June 30, 2014
|
Consumer, excluding credit card
|
Credit card
(a)
|
Wholesale
|
Total
|
|
||||||||
(in millions)
|
|
||||||||||||
Retained
|
$
|
288,214
|
|
$
|
125,621
|
|
$
|
321,534
|
|
$
|
735,369
|
|
(b)
|
Held-for-sale
|
964
|
|
508
|
|
5,839
|
|
7,311
|
|
|
||||
At fair value
|
—
|
|
—
|
|
4,303
|
|
4,303
|
|
|
||||
Total
|
$
|
289,178
|
|
$
|
126,129
|
|
$
|
331,676
|
|
$
|
746,983
|
|
|
|
|
|
|
|
|
||||||||
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
$1.9 billion
at both
June 30, 2014
, and
December 31, 2013
.
|
|
|
2014
|
|
2013
|
||||||||||||||||||||||||
Three months ended
June 30,
(in millions)
|
|
Consumer, excluding credit card
|
|
Credit card
|
Wholesale
|
Total
|
|
Consumer, excluding credit card
|
|
Credit card
|
Wholesale
|
Total
|
||||||||||||||||
Purchases
|
|
$
|
2,167
|
|
(a)(b)
|
$
|
—
|
|
$
|
156
|
|
$
|
2,323
|
|
|
$
|
1,590
|
|
(a)(b)
|
$
|
328
|
|
$
|
191
|
|
$
|
2,109
|
|
Sales
|
|
1,352
|
|
|
—
|
|
2,323
|
|
3,675
|
|
|
1,233
|
|
|
—
|
|
1,425
|
|
2,658
|
|
||||||||
Retained loans reclassified to held-for-sale
|
|
802
|
|
|
215
|
|
212
|
|
1,229
|
|
|
708
|
|
|
—
|
|
677
|
|
1,385
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2014
|
|
2013
|
||||||||||||||||||||||||
Six months ended
June 30,
(in millions) |
|
Consumer, excluding credit card
|
|
Credit card
|
Wholesale
|
Total
|
|
Consumer, excluding credit card
|
|
Credit card
|
Wholesale
|
Total
|
||||||||||||||||
Purchases
|
|
$
|
3,749
|
|
(a)(b)
|
$
|
—
|
|
$
|
277
|
|
$
|
4,026
|
|
|
$
|
4,215
|
|
(a)(b)
|
$
|
328
|
|
$
|
286
|
|
$
|
4,829
|
|
Sales
|
|
2,243
|
|
|
—
|
|
4,679
|
|
6,922
|
|
|
2,662
|
|
|
—
|
|
2,578
|
|
5,240
|
|
||||||||
Retained loans reclassified to held-for-sale
|
|
802
|
|
|
215
|
|
509
|
|
1,526
|
|
|
708
|
|
|
—
|
|
1,021
|
|
1,729
|
|
(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
$2.4 billion
and
$1.3 billion
for the three months ended
June 30, 2014
and
2013
,
respectively, and
$4.1 billion
and
$2.2 billion
for the
six months ended
June 30, 2014
and
2013
, respectively.
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
||||||||||
(in millions)
|
2014
|
2013
|
|
2014
|
2013
|
||||||||
Net gains/(losses) on sales of loans (including lower of cost or fair value adjustments)
(a)
|
|
|
|
|
|
||||||||
Consumer, excluding credit card
|
$
|
84
|
|
$
|
112
|
|
|
$
|
126
|
|
$
|
256
|
|
Credit card
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Wholesale
|
3
|
|
(14
|
)
|
|
27
|
|
(7
|
)
|
||||
Total net gains/(losses) on sales of loans (including lower of cost or fair value adjustments)
|
$
|
87
|
|
$
|
98
|
|
|
$
|
153
|
|
$
|
249
|
|
(a)
|
Excludes sales related to loans accounted for at fair value.
|
(in millions)
|
June 30,
2014 |
December 31,
2013 |
||||
Residential real estate –
excluding PCI
|
|
|
||||
Home equity:
|
|
|
||||
Senior lien
|
$
|
16,222
|
|
$
|
17,113
|
|
Junior lien
|
38,263
|
|
40,750
|
|
||
Mortgages:
|
|
|
||||
Prime, including option ARMs
|
93,239
|
|
87,162
|
|
||
Subprime
|
6,552
|
|
7,104
|
|
||
Other consumer loans
|
|
|
||||
Auto
|
53,042
|
|
52,757
|
|
||
Business banking
|
19,453
|
|
18,951
|
|
||
Student and other
|
11,325
|
|
11,557
|
|
||
Residential real estate – PCI
|
|
|
||||
Home equity
|
18,070
|
|
18,927
|
|
||
Prime mortgage
|
11,302
|
|
12,038
|
|
||
Subprime mortgage
|
3,947
|
|
4,175
|
|
||
Option ARMs
|
16,799
|
|
17,915
|
|
||
Total retained loans
|
$
|
288,214
|
|
$
|
288,449
|
|
(a)
|
Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included
$4.6 billion
and
$4.7 billion
;
30
–
149
days past due included
$2.9 billion
and
$2.4 billion
; and
150
or more days past due included
$6.0 billion
and
$6.6 billion
at
June 30, 2014
, and
December 31, 2013
, respectively.
|
(b)
|
At
June 30, 2014
, and
December 31, 2013
, Prime, including option ARMs loans excluded mortgage loans insured by U.S. government agencies of
$8.8 billion
and
$9.0 billion
, respectively. These amounts have been excluded from nonaccrual loans based upon the government guarantee.
|
(c)
|
These balances, which are
90 days
or more past due but insured by U.S. government agencies, are excluded from nonaccrual loans. In predominantly 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
June 30, 2014
, and
December 31, 2013
, these balances included
$4.3 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.
|
(d)
|
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.
|
(e)
|
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.
|
(f)
|
Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
|
(g)
|
At
June 30, 2014
, and
December 31, 2013
, included mortgage loans insured by U.S. government agencies of
$13.5 billion
and
$13.7 billion
, respectively.
|
|
|
Delinquencies
|
|
|
|
Total 30+ day delinquency rate
|
|||||||||||||
June 30, 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)
|
|
$
|
254
|
|
|
$
|
85
|
|
|
$
|
144
|
|
|
$
|
28,300
|
|
|
1.71
|
%
|
Beyond the revolving period
|
|
77
|
|
|
24
|
|
|
74
|
|
|
6,443
|
|
|
2.72
|
|
||||
HELOANs
|
|
65
|
|
|
21
|
|
|
16
|
|
|
3,520
|
|
|
2.90
|
|
||||
Total
|
|
$
|
396
|
|
|
$
|
130
|
|
|
$
|
234
|
|
|
$
|
38,263
|
|
|
1.99
|
%
|
|
|
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
|
|
||||||||||||||||||||||||||
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|||||||||||||||||||||
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
With an allowance
|
$
|
556
|
|
$
|
567
|
|
|
$
|
724
|
|
$
|
727
|
|
|
$
|
5,443
|
|
$
|
5,871
|
|
|
$
|
2,724
|
|
$
|
2,989
|
|
|
$
|
9,447
|
|
$
|
10,154
|
|
Without an allowance
(a)
|
563
|
|
579
|
|
|
586
|
|
592
|
|
|
1,275
|
|
1,133
|
|
|
754
|
|
709
|
|
|
3,178
|
|
3,013
|
|
||||||||||
Total impaired loans
(b)(c)
|
$
|
1,119
|
|
$
|
1,146
|
|
|
$
|
1,310
|
|
$
|
1,319
|
|
|
$
|
6,718
|
|
$
|
7,004
|
|
|
$
|
3,478
|
|
$
|
3,698
|
|
|
$
|
12,625
|
|
$
|
13,167
|
|
Allowance for loan losses related to impaired loans
|
$
|
97
|
|
$
|
94
|
|
|
$
|
170
|
|
$
|
162
|
|
|
$
|
139
|
|
$
|
144
|
|
|
$
|
87
|
|
$
|
94
|
|
|
$
|
493
|
|
$
|
494
|
|
Unpaid principal balance of impaired loans
(d)
|
1,480
|
|
1,515
|
|
|
2,635
|
|
2,625
|
|
|
8,582
|
|
8,990
|
|
|
5,069
|
|
5,461
|
|
|
17,766
|
|
18,591
|
|
||||||||||
Impaired loans on nonaccrual status
(e)
|
629
|
|
641
|
|
|
641
|
|
666
|
|
|
1,703
|
|
1,737
|
|
|
1,078
|
|
1,127
|
|
|
4,051
|
|
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
June 30, 2014
, and
December 31, 2013
,
$6.7 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)
|
Predominantly all residential real estate impaired loans, excluding PCI loans, are in the U.S.
|
(d)
|
Represents the contractual amount of principal owed at
June 30, 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.
|
(e)
|
As of
June 30, 2014
, and
December 31, 2013
, nonaccrual loans included
$3.1 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 of
JPMorgan Chase
’s
2013
Annual Report
.
|
Three months ended June 30,
|
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
|
$
|
1,128
|
|
$
|
1,158
|
|
|
$
|
14
|
|
$
|
14
|
|
|
$
|
10
|
|
$
|
10
|
|
Junior lien
|
1,316
|
|
1,296
|
|
|
20
|
|
21
|
|
|
13
|
|
14
|
|
||||||
Mortgages
|
|
|
|
|
|
|
|
|
||||||||||||
Prime, including option ARMs
|
6,823
|
|
7,219
|
|
|
66
|
|
70
|
|
|
14
|
|
15
|
|
||||||
Subprime
|
3,578
|
|
3,833
|
|
|
47
|
|
50
|
|
|
13
|
|
14
|
|
||||||
Total residential real estate – excluding PCI
|
$
|
12,845
|
|
$
|
13,506
|
|
|
$
|
147
|
|
$
|
155
|
|
|
$
|
50
|
|
$
|
53
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Six months ended June 30,
|
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
|
$
|
1,135
|
|
$
|
1,149
|
|
|
$
|
28
|
|
$
|
29
|
|
|
$
|
19
|
|
$
|
20
|
|
Junior lien
|
1,318
|
|
1,284
|
|
|
41
|
|
41
|
|
|
27
|
|
27
|
|
||||||
Mortgages
|
|
|
|
|
|
|
|
|
||||||||||||
Prime, including option ARMs
|
6,889
|
|
7,203
|
|
|
134
|
|
139
|
|
|
27
|
|
29
|
|
||||||
Subprime
|
3,623
|
|
3,830
|
|
|
96
|
|
100
|
|
|
26
|
|
29
|
|
||||||
Total residential real estate – excluding PCI
|
$
|
12,965
|
|
$
|
13,466
|
|
|
$
|
299
|
|
$
|
309
|
|
|
$
|
99
|
|
$
|
105
|
|
(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
June 30, (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
|
$
|
1,136
|
|
$
|
1,155
|
|
|
$
|
1,319
|
|
$
|
1,286
|
|
|
$
|
6,894
|
|
$
|
7,223
|
|
|
$
|
3,625
|
|
$
|
3,843
|
|
|
$
|
12,974
|
|
$
|
13,507
|
|
New TDRs
|
20
|
|
39
|
|
|
46
|
|
94
|
|
|
52
|
|
318
|
|
|
25
|
|
89
|
|
|
143
|
|
540
|
|
||||||||||
Charge-offs post-modification
(a)
|
(5
|
)
|
(8
|
)
|
|
(11
|
)
|
(24
|
)
|
|
(4
|
)
|
(14
|
)
|
|
(11
|
)
|
(27
|
)
|
|
(31
|
)
|
(73
|
)
|
||||||||||
Foreclosures and other liquidations (e.g., short sales)
|
(5
|
)
|
(5
|
)
|
|
(4
|
)
|
(7
|
)
|
|
(16
|
)
|
(39
|
)
|
|
(9
|
)
|
(19
|
)
|
|
(34
|
)
|
(70
|
)
|
||||||||||
Principal payments and other
|
(27
|
)
|
(21
|
)
|
|
(40
|
)
|
(34
|
)
|
|
(208
|
)
|
(185
|
)
|
|
(152
|
)
|
(61
|
)
|
|
(427
|
)
|
(301
|
)
|
||||||||||
Ending balance of TDRs
|
$
|
1,119
|
|
$
|
1,160
|
|
|
$
|
1,310
|
|
$
|
1,315
|
|
|
$
|
6,718
|
|
$
|
7,303
|
|
|
$
|
3,478
|
|
$
|
3,825
|
|
|
$
|
12,625
|
|
$
|
13,603
|
|
Permanent modifications
|
$
|
1,083
|
|
$
|
1,117
|
|
|
$
|
1,306
|
|
$
|
1,309
|
|
|
$
|
6,625
|
|
$
|
7,035
|
|
|
$
|
3,404
|
|
$
|
3,676
|
|
|
$
|
12,418
|
|
$
|
13,137
|
|
Trial modifications
|
$
|
36
|
|
$
|
43
|
|
|
$
|
4
|
|
$
|
6
|
|
|
$
|
93
|
|
$
|
268
|
|
|
$
|
74
|
|
$
|
149
|
|
|
$
|
207
|
|
$
|
466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Six months ended
June 30, (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
|
47
|
|
140
|
|
|
104
|
|
229
|
|
|
119
|
|
628
|
|
|
53
|
|
217
|
|
|
323
|
|
1,214
|
|
||||||||||
Charge-offs post-modification
(a)
|
(11
|
)
|
(18
|
)
|
|
(30
|
)
|
(57
|
)
|
|
(11
|
)
|
(33
|
)
|
|
(33
|
)
|
(65
|
)
|
|
(85
|
)
|
(173
|
)
|
||||||||||
Foreclosures and other liquidations (e.g., short sales)
|
(11
|
)
|
(9
|
)
|
|
(6
|
)
|
(11
|
)
|
|
(44
|
)
|
(74
|
)
|
|
(21
|
)
|
(38
|
)
|
|
(82
|
)
|
(132
|
)
|
||||||||||
Principal payments and other
|
(52
|
)
|
(45
|
)
|
|
(77
|
)
|
(69
|
)
|
|
(350
|
)
|
(336
|
)
|
|
(219
|
)
|
(101
|
)
|
|
(698
|
)
|
(551
|
)
|
||||||||||
Ending balance of TDRs
|
$
|
1,119
|
|
$
|
1,160
|
|
|
$
|
1,310
|
|
$
|
1,315
|
|
|
$
|
6,718
|
|
$
|
7,303
|
|
|
$
|
3,478
|
|
$
|
3,825
|
|
|
$
|
12,625
|
|
$
|
13,603
|
|
Permanent modifications
|
$
|
1,083
|
|
$
|
1,117
|
|
|
$
|
1,306
|
|
$
|
1,309
|
|
|
$
|
6,625
|
|
$
|
7,035
|
|
|
$
|
3,404
|
|
$
|
3,676
|
|
|
$
|
12,418
|
|
$
|
13,137
|
|
Trial modifications
|
$
|
36
|
|
$
|
43
|
|
|
$
|
4
|
|
$
|
6
|
|
|
$
|
93
|
|
$
|
268
|
|
|
$
|
74
|
|
$
|
149
|
|
|
$
|
207
|
|
$
|
466
|
|
(a)
|
Includes charge-offs on unsuccessful trial modifications.
|
Three months ended June 30,
|
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
|
218
|
|
562
|
|
|
157
|
|
172
|
|
|
261
|
|
856
|
|
|
529
|
|
1,123
|
|
|
1,165
|
|
2,713
|
|
Number of loans permanently modified
|
226
|
|
405
|
|
|
699
|
|
1,353
|
|
|
386
|
|
1,137
|
|
|
493
|
|
1,458
|
|
|
1,804
|
|
4,353
|
|
Concession granted:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate reduction
|
64
|
%
|
70
|
%
|
|
88
|
%
|
85
|
%
|
|
65
|
%
|
73
|
%
|
|
68
|
%
|
72
|
%
|
|
75
|
%
|
76
|
%
|
Term or payment extension
|
86
|
|
73
|
|
|
83
|
|
76
|
|
|
79
|
|
69
|
|
|
71
|
|
53
|
|
|
79
|
|
66
|
|
Principal and/or interest deferred
|
12
|
|
11
|
|
|
22
|
|
25
|
|
|
30
|
|
29
|
|
|
15
|
|
12
|
|
|
20
|
|
20
|
|
Principal forgiveness
|
30
|
|
37
|
|
|
29
|
|
33
|
|
|
22
|
|
39
|
|
|
35
|
|
46
|
|
|
29
|
|
39
|
|
Other
(b)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
18
|
|
24
|
|
|
9
|
|
13
|
|
|
6
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six months ended June 30,
|
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
|
419
|
|
1,062
|
|
|
341
|
|
368
|
|
|
516
|
|
1,832
|
|
|
1,028
|
|
2,612
|
|
|
2,304
|
|
5,874
|
|
Number of loans permanently modified
|
521
|
|
950
|
|
|
1,657
|
|
2,669
|
|
|
917
|
|
2,613
|
|
|
1,260
|
|
3,147
|
|
|
4,355
|
|
9,379
|
|
Concession granted:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate reduction
|
65
|
%
|
72
|
%
|
|
86
|
%
|
88
|
%
|
|
62
|
%
|
74
|
%
|
|
63
|
%
|
71
|
%
|
|
72
|
%
|
77
|
%
|
Term or payment extension
|
83
|
|
73
|
|
|
83
|
|
77
|
|
|
84
|
|
69
|
|
|
72
|
|
51
|
|
|
80
|
|
66
|
|
Principal and/or interest deferred
|
14
|
|
10
|
|
|
22
|
|
24
|
|
|
32
|
|
28
|
|
|
18
|
|
11
|
|
|
22
|
|
19
|
|
Principal forgiveness
|
30
|
|
38
|
|
|
28
|
|
36
|
|
|
27
|
|
40
|
|
|
38
|
|
52
|
|
|
31
|
|
43
|
|
Other
(b)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
17
|
|
24
|
|
|
12
|
|
15
|
|
|
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 June 30,
(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
|
6.58
|
%
|
6.78
|
%
|
|
4.94
|
%
|
5.10
|
%
|
|
5.17
|
%
|
5.09
|
%
|
|
7.28
|
%
|
7.26
|
%
|
|
5.82
|
%
|
5.76
|
%
|
||||||||||
Weighted-average interest rate of loans with interest rate reductions – after TDR
|
2.93
|
|
3.34
|
|
|
2.04
|
|
2.28
|
|
|
2.54
|
|
2.78
|
|
|
3.47
|
|
3.50
|
|
|
2.72
|
|
2.94
|
|
||||||||||
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR
|
17
|
|
17
|
|
|
19
|
|
19
|
|
|
25
|
|
25
|
|
|
24
|
|
24
|
|
|
23
|
|
24
|
|
||||||||||
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR
|
29
|
|
31
|
|
|
34
|
|
34
|
|
|
37
|
|
37
|
|
|
35
|
|
35
|
|
|
35
|
|
36
|
|
||||||||||
Charge-offs recognized upon permanent modification
|
$
|
—
|
|
$
|
2
|
|
|
$
|
8
|
|
$
|
23
|
|
|
$
|
2
|
|
$
|
6
|
|
|
$
|
—
|
|
$
|
3
|
|
|
$
|
10
|
|
$
|
34
|
|
Principal deferred
|
1
|
|
1
|
|
|
3
|
|
7
|
|
|
10
|
|
32
|
|
|
4
|
|
11
|
|
|
18
|
|
51
|
|
||||||||||
Principal forgiven
|
3
|
|
7
|
|
|
6
|
|
13
|
|
|
8
|
|
57
|
|
|
11
|
|
55
|
|
|
28
|
|
132
|
|
||||||||||
Number of loans that redefaulted within one year of permanent modification
(a)
|
67
|
|
95
|
|
|
195
|
|
248
|
|
|
163
|
|
189
|
|
|
269
|
|
317
|
|
|
694
|
|
849
|
|
||||||||||
Balance of loans that redefaulted within one year of permanent modification
(a)
|
$
|
4
|
|
$
|
7
|
|
|
$
|
3
|
|
$
|
6
|
|
|
$
|
44
|
|
$
|
54
|
|
|
$
|
28
|
|
$
|
31
|
|
|
$
|
79
|
|
$
|
98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Six months ended June 30,
(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
|
6.63
|
%
|
6.53
|
%
|
|
4.83
|
%
|
5.14
|
%
|
|
5.20
|
%
|
5.37
|
%
|
|
7.44
|
%
|
7.48
|
%
|
|
5.88
|
%
|
5.99
|
%
|
||||||||||
Weighted-average interest rate of loans with interest rate reductions – after TDR
|
2.98
|
|
3.44
|
|
|
1.91
|
|
2.22
|
|
|
2.67
|
|
2.83
|
|
|
3.43
|
|
3.54
|
|
|
2.75
|
|
2.98
|
|
||||||||||
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR
|
18
|
|
18
|
|
|
19
|
|
19
|
|
|
24
|
|
24
|
|
|
24
|
|
24
|
|
|
23
|
|
23
|
|
||||||||||
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR
|
30
|
|
31
|
|
|
35
|
|
34
|
|
|
37
|
|
37
|
|
|
36
|
|
34
|
|
|
36
|
|
35
|
|
||||||||||
Charge-offs recognized upon permanent modification
|
$
|
1
|
|
$
|
4
|
|
|
$
|
22
|
|
$
|
42
|
|
|
$
|
4
|
|
$
|
11
|
|
|
$
|
1
|
|
$
|
6
|
|
|
$
|
28
|
|
$
|
63
|
|
Principal deferred
|
2
|
|
3
|
|
|
6
|
|
14
|
|
|
23
|
|
67
|
|
|
11
|
|
21
|
|
|
42
|
|
105
|
|
||||||||||
Principal forgiven
|
6
|
|
17
|
|
|
17
|
|
29
|
|
|
25
|
|
130
|
|
|
32
|
|
139
|
|
|
80
|
|
315
|
|
||||||||||
Number of loans that redefaulted within one year of permanent modification
(a)
|
133
|
|
226
|
|
|
388
|
|
594
|
|
|
285
|
|
397
|
|
|
436
|
|
629
|
|
|
1,242
|
|
1,846
|
|
||||||||||
Balance of loans that redefaulted within one year of permanent modification
(a)
|
$
|
10
|
|
$
|
17
|
|
|
$
|
6
|
|
$
|
13
|
|
|
$
|
70
|
|
$
|
104
|
|
|
$
|
43
|
|
$
|
63
|
|
|
$
|
129
|
|
$
|
197
|
|
(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
|
|
|||||||||||||||||||||||
Jun 30,
2014 |
|
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
|
Dec 31,
2013 |
|
Jun 30,
2014 |
|
Dec 31,
2013 |
|
|||||||||||||||||
Loan delinquency
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
$
|
52,549
|
|
|
$
|
52,152
|
|
|
$
|
19,097
|
|
$
|
18,511
|
|
|
$
|
10,411
|
|
|
$
|
10,529
|
|
|
$
|
82,057
|
|
|
$
|
81,192
|
|
|
30–119 days past due
|
489
|
|
|
599
|
|
|
204
|
|
280
|
|
|
621
|
|
|
660
|
|
|
1,314
|
|
|
1,539
|
|
|
||||||||
120 or more days past due
|
4
|
|
|
6
|
|
|
152
|
|
160
|
|
|
293
|
|
|
368
|
|
|
449
|
|
|
534
|
|
|
||||||||
Total retained loans
|
$
|
53,042
|
|
|
$
|
52,757
|
|
|
$
|
19,453
|
|
$
|
18,951
|
|
|
$
|
11,325
|
|
|
$
|
11,557
|
|
|
$
|
83,820
|
|
|
$
|
83,265
|
|
|
% of 30+ days past due to total retained loans
|
0.93
|
%
|
|
1.15
|
%
|
|
1.83
|
%
|
2.32
|
%
|
|
2.51
|
%
|
(d)
|
2.52
|
%
|
(d)
|
1.35
|
%
|
(d)
|
1.60
|
%
|
(d)
|
||||||||
90 or more days past due and still accruing
(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
316
|
|
|
$
|
428
|
|
|
$
|
316
|
|
|
$
|
428
|
|
|
Nonaccrual loans
|
103
|
|
|
161
|
|
|
326
|
|
385
|
|
|
170
|
|
|
86
|
|
|
599
|
|
|
632
|
|
|
||||||||
Geographic region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
California
|
$
|
5,957
|
|
|
$
|
5,615
|
|
|
$
|
2,740
|
|
$
|
2,374
|
|
|
$
|
1,124
|
|
|
$
|
1,112
|
|
|
$
|
9,821
|
|
|
$
|
9,101
|
|
|
New York
|
3,689
|
|
|
3,898
|
|
|
3,128
|
|
3,084
|
|
|
1,248
|
|
|
1,218
|
|
|
8,065
|
|
|
8,200
|
|
|
||||||||
Illinois
|
2,966
|
|
|
2,917
|
|
|
1,296
|
|
1,341
|
|
|
750
|
|
|
740
|
|
|
5,012
|
|
|
4,998
|
|
|
||||||||
Florida
|
2,094
|
|
|
2,012
|
|
|
708
|
|
646
|
|
|
536
|
|
|
539
|
|
|
3,338
|
|
|
3,197
|
|
|
||||||||
Texas
|
5,310
|
|
|
5,310
|
|
|
2,592
|
|
2,646
|
|
|
870
|
|
|
878
|
|
|
8,772
|
|
|
8,834
|
|
|
||||||||
New Jersey
|
1,942
|
|
|
2,014
|
|
|
407
|
|
392
|
|
|
390
|
|
|
397
|
|
|
2,739
|
|
|
2,803
|
|
|
||||||||
Arizona
|
1,949
|
|
|
1,855
|
|
|
981
|
|
1,046
|
|
|
253
|
|
|
252
|
|
|
3,183
|
|
|
3,153
|
|
|
||||||||
Washington
|
1,001
|
|
|
950
|
|
|
238
|
|
234
|
|
|
235
|
|
|
227
|
|
|
1,474
|
|
|
1,411
|
|
|
||||||||
Michigan
|
1,771
|
|
|
1,902
|
|
|
1,363
|
|
1,383
|
|
|
489
|
|
|
513
|
|
|
3,623
|
|
|
3,798
|
|
|
||||||||
Ohio
|
2,148
|
|
|
2,229
|
|
|
1,304
|
|
1,316
|
|
|
670
|
|
|
708
|
|
|
4,122
|
|
|
4,253
|
|
|
||||||||
All other
|
24,215
|
|
|
24,055
|
|
|
4,696
|
|
4,489
|
|
|
4,760
|
|
|
4,973
|
|
|
33,671
|
|
|
33,517
|
|
|
||||||||
Total retained loans
|
$
|
53,042
|
|
|
$
|
52,757
|
|
|
$
|
19,453
|
|
$
|
18,951
|
|
|
$
|
11,325
|
|
|
$
|
11,557
|
|
|
$
|
83,820
|
|
|
$
|
83,265
|
|
|
Loans by risk ratings
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Noncriticized
|
$
|
9,269
|
|
|
$
|
9,968
|
|
|
$
|
14,065
|
|
$
|
13,622
|
|
|
NA
|
|
|
NA
|
|
|
$
|
23,334
|
|
|
$
|
23,590
|
|
|
||
Criticized performing
|
34
|
|
|
54
|
|
|
740
|
|
711
|
|
|
NA
|
|
|
NA
|
|
|
774
|
|
|
765
|
|
|
||||||||
Criticized nonaccrual
|
—
|
|
|
38
|
|
|
271
|
|
316
|
|
|
NA
|
|
|
NA
|
|
|
271
|
|
|
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
$4.7 billion
and
$4.9 billion
;
30
-
119 days
past due included
$359 million
and
$387 million
; and
120
or more days past due included
$271 million
and
$350 million
at
June 30, 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)
|
June 30, 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
$630 million
and
$737 million
, respectively. These amounts were excluded based upon the government guarantee.
|
(in millions)
|
Auto
|
|
Business banking
|
|
Total other consumer
(d)
|
|||||||||||||||
June 30,
2014 |
December 31,
2013 |
|
June 30,
2014 |
December 31,
2013 |
|
June 30,
2014 |
December 31,
2013 |
|||||||||||||
Impaired loans
|
|
|
|
|
|
|
|
|
||||||||||||
With an allowance
|
$
|
51
|
|
$
|
96
|
|
|
$
|
414
|
|
$
|
475
|
|
|
$
|
465
|
|
$
|
571
|
|
Without an allowance
(a)
|
38
|
|
47
|
|
|
—
|
|
—
|
|
|
38
|
|
47
|
|
||||||
Total impaired loans
(b)
|
$
|
89
|
|
$
|
143
|
|
|
$
|
414
|
|
$
|
475
|
|
|
$
|
503
|
|
$
|
618
|
|
Allowance for loan losses related to
impaired loans
|
$
|
8
|
|
$
|
13
|
|
|
$
|
79
|
|
$
|
94
|
|
|
$
|
87
|
|
$
|
107
|
|
Unpaid principal balance of impaired loans
(c)
|
169
|
|
235
|
|
|
480
|
|
553
|
|
|
649
|
|
788
|
|
||||||
Impaired loans on nonaccrual status
|
63
|
|
113
|
|
|
277
|
|
328
|
|
|
340
|
|
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)
|
Predominantly all other consumer impaired loans are in the U.S.
|
(c)
|
Represents the contractual amount of principal owed at
June 30, 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.
|
(d)
|
Excludes
$63 million
of impaired student loans with a related allowance for loan losses of
$18 million
, all of which were on nonaccrual status, at
June 30, 2014
. There were
no
impaired student and other loans at
December 31, 2013
.
|
(in millions)
|
Average impaired loans
(a)(b)
|
|||||||||||||||
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||
2014
|
2013
|
|
2014
|
2013
|
||||||||||||
Auto
|
$
|
103
|
|
|
$
|
129
|
|
|
|
$
|
119
|
|
|
$
|
137
|
|
Business banking
|
487
|
|
|
528
|
|
|
|
475
|
|
|
536
|
|
||||
Total other consumer
|
$
|
590
|
|
|
$
|
657
|
|
|
|
$
|
594
|
|
|
$
|
673
|
|
(a)
|
The related interest income on impaired loans, including those on a cash basis, was not material for the three and
six months ended
June 30, 2014
and
2013
.
|
(b)
|
Excludes impaired student loans for the three and six months ended
June 30, 2014
.
|
(in millions)
|
Auto
|
|
Business banking
|
|
Total other consumer
(c)
|
||||||||||||||||||
June 30,
2014 |
December 31,
2013 |
|
June 30,
2014 |
December 31,
2013 |
|
June 30,
2014 |
December 31,
2013 |
||||||||||||||||
Loans modified in TDRs
(a)(b)
|
$
|
89
|
|
|
$
|
107
|
|
|
$
|
234
|
|
|
$
|
271
|
|
|
$
|
323
|
|
|
$
|
378
|
|
TDRs on nonaccrual status
|
63
|
|
|
77
|
|
|
97
|
|
|
124
|
|
|
160
|
|
|
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
June 30, 2014
, and
December 31, 2013
, were immaterial.
|
(c)
|
Excludes impaired student loans modified in TDRs at
June 30, 2014
.
|
Three months ended June 30,
(in millions) |
Auto
|
|
Business banking
|
|
Total other consumer
(a)
|
|||||||||||||||
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|||||||||||||
Beginning balance of TDRs
|
$
|
97
|
|
$
|
140
|
|
|
$
|
249
|
|
$
|
341
|
|
|
$
|
346
|
|
$
|
481
|
|
New TDRs
|
17
|
|
22
|
|
|
16
|
|
18
|
|
|
33
|
|
40
|
|
||||||
Charge-offs post-modification
|
—
|
|
(2
|
)
|
|
(2
|
)
|
—
|
|
|
(2
|
)
|
(2
|
)
|
||||||
Foreclosures and other liquidations
|
(2
|
)
|
—
|
|
|
(1
|
)
|
—
|
|
|
(3
|
)
|
—
|
|
||||||
Principal payments and other
|
(23
|
)
|
(36
|
)
|
|
(28
|
)
|
(35
|
)
|
|
(51
|
)
|
(71
|
)
|
||||||
E
nding balance of TDRs
|
$
|
89
|
|
$
|
124
|
|
|
$
|
234
|
|
$
|
324
|
|
|
$
|
323
|
|
$
|
448
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Six months ended June 30,
(in millions) |
Auto
|
|
Business banking
|
|
Total other consumer
(a)
|
|||||||||||||||
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|||||||||||||
Beginning balance of TDRs
|
$
|
107
|
|
$
|
150
|
|
|
$
|
271
|
|
$
|
352
|
|
|
$
|
378
|
|
$
|
502
|
|
New TDRs
|
37
|
|
42
|
|
|
24
|
|
40
|
|
|
61
|
|
82
|
|
||||||
Charge-offs post-modification
|
—
|
|
(5
|
)
|
|
(2
|
)
|
(2
|
)
|
|
(2
|
)
|
(7
|
)
|
||||||
Foreclosures and other liquidations
|
(5
|
)
|
—
|
|
|
(1
|
)
|
—
|
|
|
(6
|
)
|
—
|
|
||||||
Principal payments and other
|
(50
|
)
|
(63
|
)
|
|
(58
|
)
|
(66
|
)
|
|
(108
|
)
|
(129
|
)
|
||||||
E
nding balance of TDRs
|
$
|
89
|
|
$
|
124
|
|
|
$
|
234
|
|
$
|
324
|
|
|
$
|
323
|
|
$
|
448
|
|
(a)
|
Excludes student loans modified in TDRs during the three and six months ended
June 30, 2014
.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||
Auto
|
|
Business banking
|
|
Auto
|
|
Business banking
|
|||||||||||||
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|||||||||
Weighted-average interest rate of loans with interest rate reductions – before TDR
|
12.02
|
%
|
13.46
|
%
|
|
7.11
|
%
|
7.58
|
%
|
|
13.10
|
%
|
13.19
|
%
|
|
7.35
|
%
|
7.94
|
%
|
Weighted-average interest rate of loans with interest rate reductions – after TDR
|
4.98
|
|
4.82
|
|
|
6.04
|
|
6.16
|
|
|
4.97
|
|
4.94
|
|
|
6.28
|
|
5.84
|
|
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR
|
NM
|
|
NM
|
|
|
3.1
|
|
1.6
|
|
|
NM
|
|
NM
|
|
|
2.6
|
|
1.5
|
|
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR
|
NM
|
|
NM
|
|
|
4.6
|
|
3.8
|
|
|
NM
|
|
NM
|
|
|
4.3
|
|
3.1
|
|
(in millions, except ratios)
|
Home equity
|
|
Prime mortgage
|
|
Subprime mortgage
|
|
Option ARMs
|
|
Total PCI
|
|||||||||||||||||||||||||
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|||||||||||||||||||||
Carrying value
(a)
|
$
|
18,070
|
|
$
|
18,927
|
|
|
$
|
11,302
|
|
$
|
12,038
|
|
|
$
|
3,947
|
|
$
|
4,175
|
|
|
$
|
16,799
|
|
$
|
17,915
|
|
|
$
|
50,118
|
|
$
|
53,055
|
|
Related allowance for loan losses
(b)
|
1,758
|
|
1,758
|
|
|
1,617
|
|
1,726
|
|
|
180
|
|
180
|
|
|
194
|
|
494
|
|
|
3,749
|
|
4,158
|
|
||||||||||
Loan delinquency (based on unpaid principal balance)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Current
|
$
|
17,317
|
|
$
|
18,135
|
|
|
$
|
9,563
|
|
$
|
10,118
|
|
|
$
|
3,828
|
|
$
|
4,012
|
|
|
$
|
14,725
|
|
$
|
15,501
|
|
|
$
|
45,433
|
|
$
|
47,766
|
|
30–149 days past due
|
465
|
|
583
|
|
|
538
|
|
589
|
|
|
591
|
|
662
|
|
|
930
|
|
1,006
|
|
|
2,524
|
|
2,840
|
|
||||||||||
150 or more days past due
|
1,067
|
|
1,112
|
|
|
986
|
|
1,169
|
|
|
683
|
|
797
|
|
|
2,183
|
|
2,716
|
|
|
4,919
|
|
5,794
|
|
||||||||||
Total loans
|
$
|
18,849
|
|
$
|
19,830
|
|
|
$
|
11,087
|
|
$
|
11,876
|
|
|
$
|
5,102
|
|
$
|
5,471
|
|
|
$
|
17,838
|
|
$
|
19,223
|
|
|
$
|
52,876
|
|
$
|
56,400
|
|
% of 30+ days past due to total loans
|
8.13
|
%
|
8.55
|
%
|
|
13.75
|
%
|
14.80
|
%
|
|
24.97
|
%
|
26.67
|
%
|
|
17.45
|
%
|
19.36
|
%
|
|
14.08
|
%
|
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
|
$
|
772
|
|
$
|
1,168
|
|
|
$
|
118
|
|
$
|
240
|
|
|
$
|
74
|
|
$
|
115
|
|
|
$
|
156
|
|
$
|
301
|
|
|
$
|
1,120
|
|
$
|
1,824
|
|
Less than 660
|
411
|
|
662
|
|
|
158
|
|
290
|
|
|
274
|
|
459
|
|
|
309
|
|
575
|
|
|
1,152
|
|
1,986
|
|
||||||||||
101% to 125% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
2,568
|
|
3,248
|
|
|
715
|
|
1,017
|
|
|
249
|
|
316
|
|
|
784
|
|
1,164
|
|
|
4,316
|
|
5,745
|
|
||||||||||
Less than 660
|
1,189
|
|
1,541
|
|
|
552
|
|
884
|
|
|
688
|
|
919
|
|
|
1,052
|
|
1,563
|
|
|
3,481
|
|
4,907
|
|
||||||||||
80% to 100% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
4,365
|
|
4,473
|
|
|
2,400
|
|
2,787
|
|
|
552
|
|
544
|
|
|
2,741
|
|
3,311
|
|
|
10,058
|
|
11,115
|
|
||||||||||
Less than 660
|
1,758
|
|
1,782
|
|
|
1,537
|
|
1,699
|
|
|
1,131
|
|
1,197
|
|
|
2,339
|
|
2,769
|
|
|
6,765
|
|
7,447
|
|
||||||||||
Lower than 80% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
5,739
|
|
5,077
|
|
|
3,425
|
|
2,897
|
|
|
641
|
|
521
|
|
|
6,410
|
|
5,671
|
|
|
16,215
|
|
14,166
|
|
||||||||||
Less than 660
|
2,047
|
|
1,879
|
|
|
2,182
|
|
2,062
|
|
|
1,493
|
|
1,400
|
|
|
4,047
|
|
3,869
|
|
|
9,769
|
|
9,210
|
|
||||||||||
Total unpaid principal balance
|
$
|
18,849
|
|
$
|
19,830
|
|
|
$
|
11,087
|
|
$
|
11,876
|
|
|
$
|
5,102
|
|
$
|
5,471
|
|
|
$
|
17,838
|
|
$
|
19,223
|
|
|
$
|
52,876
|
|
$
|
56,400
|
|
Geographic region (based on unpaid principal balance)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
California
|
$
|
11,341
|
|
$
|
11,937
|
|
|
$
|
6,393
|
|
$
|
6,845
|
|
|
$
|
1,218
|
|
$
|
1,293
|
|
|
$
|
9,814
|
|
$
|
10,419
|
|
|
$
|
28,766
|
|
$
|
30,494
|
|
New York
|
922
|
|
962
|
|
|
748
|
|
807
|
|
|
514
|
|
563
|
|
|
1,048
|
|
1,196
|
|
|
3,232
|
|
3,528
|
|
||||||||||
Illinois
|
429
|
|
451
|
|
|
324
|
|
353
|
|
|
258
|
|
283
|
|
|
445
|
|
481
|
|
|
1,456
|
|
1,568
|
|
||||||||||
Florida
|
1,786
|
|
1,865
|
|
|
772
|
|
826
|
|
|
494
|
|
526
|
|
|
1,631
|
|
1,817
|
|
|
4,683
|
|
5,034
|
|
||||||||||
Texas
|
302
|
|
327
|
|
|
100
|
|
106
|
|
|
305
|
|
328
|
|
|
91
|
|
100
|
|
|
798
|
|
861
|
|
||||||||||
New Jersey
|
362
|
|
381
|
|
|
316
|
|
334
|
|
|
187
|
|
213
|
|
|
614
|
|
701
|
|
|
1,479
|
|
1,629
|
|
||||||||||
Arizona
|
343
|
|
361
|
|
|
179
|
|
187
|
|
|
90
|
|
95
|
|
|
245
|
|
264
|
|
|
857
|
|
907
|
|
||||||||||
Washington
|
1,020
|
|
1,072
|
|
|
244
|
|
266
|
|
|
103
|
|
112
|
|
|
428
|
|
463
|
|
|
1,795
|
|
1,913
|
|
||||||||||
Michigan
|
58
|
|
62
|
|
|
177
|
|
189
|
|
|
139
|
|
145
|
|
|
193
|
|
206
|
|
|
567
|
|
602
|
|
||||||||||
Ohio
|
21
|
|
23
|
|
|
50
|
|
55
|
|
|
79
|
|
84
|
|
|
72
|
|
75
|
|
|
222
|
|
237
|
|
||||||||||
All other
|
2,265
|
|
2,389
|
|
|
1,784
|
|
1,908
|
|
|
1,715
|
|
1,829
|
|
|
3,257
|
|
3,501
|
|
|
9,021
|
|
9,627
|
|
||||||||||
Total unpaid principal balance
|
$
|
18,849
|
|
$
|
19,830
|
|
|
$
|
11,087
|
|
$
|
11,876
|
|
|
$
|
5,102
|
|
$
|
5,471
|
|
|
$
|
17,838
|
|
$
|
19,223
|
|
|
$
|
52,876
|
|
$
|
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
|
|||||||||||||
June 30, 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)
|
|
$
|
174
|
|
|
$
|
60
|
|
|
$
|
467
|
|
|
$
|
10,802
|
|
|
6.49
|
%
|
Beyond the revolving period
(c)
|
|
60
|
|
|
20
|
|
|
120
|
|
|
3,146
|
|
|
6.36
|
|
||||
HELOANs
|
|
20
|
|
|
8
|
|
|
40
|
|
|
812
|
|
|
8.37
|
|
||||
Total
|
|
$
|
254
|
|
|
$
|
88
|
|
|
$
|
627
|
|
|
$
|
14,760
|
|
|
6.57
|
%
|
|
|
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 June 30,
|
|
Six months ended June 30,
|
|||||||||||
2014
|
2013
|
|
2014
|
2013
|
|||||||||
Beginning balance
|
$
|
15,782
|
|
$
|
19,464
|
|
|
$
|
16,167
|
|
$
|
18,457
|
|
Accretion into interest income
|
(495
|
)
|
(565
|
)
|
|
(1,009
|
)
|
(1,138
|
)
|
||||
Changes in interest rates on variable-rate loans
|
(45
|
)
|
49
|
|
|
(66
|
)
|
(110
|
)
|
||||
Other changes in expected cash flows
(a)
|
33
|
|
(342
|
)
|
|
183
|
|
1,397
|
|
||||
Balance at June 30
|
$
|
15,275
|
|
$
|
18,606
|
|
|
$
|
15,275
|
|
$
|
18,606
|
|
Accretable yield percentage
|
4.24
|
%
|
4.38
|
%
|
|
4.28
|
%
|
4.36
|
%
|
(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 and
six months ended
June 30, 2014
, and for the three months ended
June 30, 2013
, other changes in expected cash flows were driven by changes in prepayment assumptions. For the
six months ended
June 30, 2013
, other changes in expected cash flows were due to refining the expected interest cash flows on HELOCs with balloon payments, partially offset by changes in prepayment assumptions.
|
(in millions, except ratios)
|
June 30,
2014 |
December 31,
2013 |
||||
Loan delinquency
|
|
|
||||
Current and less than 30 days
past due and still accruing
|
$
|
123,849
|
|
$
|
125,335
|
|
30–89 days past due and still accruing
|
910
|
|
1,108
|
|
||
90 or more days past due and still accruing
|
862
|
|
1,022
|
|
||
Nonaccrual loans
|
—
|
|
—
|
|
||
Total retained credit card loans
|
$
|
125,621
|
|
$
|
127,465
|
|
Loan delinquency ratios
|
|
|
||||
% of 30+ days past due to total retained loans
|
1.41
|
%
|
1.67
|
%
|
||
% of 90+ days past due to total retained loans
|
0.69
|
|
0.80
|
|
||
Credit card loans by geographic region
|
|
|
||||
California
|
$
|
17,040
|
|
$
|
17,194
|
|
Texas
|
10,464
|
|
10,400
|
|
||
New York
|
10,425
|
|
10,497
|
|
||
Illinois
|
7,313
|
|
7,412
|
|
||
Florida
|
7,039
|
|
7,178
|
|
||
New Jersey
|
5,516
|
|
5,554
|
|
||
Ohio
|
4,736
|
|
4,881
|
|
||
Pennsylvania
|
4,347
|
|
4,462
|
|
||
Michigan
|
3,502
|
|
3,618
|
|
||
Virginia
|
3,172
|
|
3,239
|
|
||
All other
|
52,067
|
|
53,030
|
|
||
Total retained credit card loans
|
$
|
125,621
|
|
$
|
127,465
|
|
Percentage of portfolio based on carrying value with estimated refreshed FICO scores
|
|
|
||||
Equal to or greater than 660
|
86.2
|
%
|
85.1
|
%
|
||
Less than 660
|
13.8
|
|
14.9
|
|
(in millions)
|
June 30,
2014 |
December 31,
2013 |
||||
Impaired credit card loans with an allowance
(a)(b)
|
|
|
||||
Credit card loans with modified payment terms
(c)
|
$
|
2,173
|
|
$
|
2,746
|
|
Modified credit card loans that have reverted to pre-modification payment terms
(d)
|
294
|
|
369
|
|
||
Total impaired credit card loans
(e)
|
$
|
2,467
|
|
$
|
3,115
|
|
Allowance for loan losses related to impaired credit card loans
|
$
|
583
|
|
$
|
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.
|
(e)
|
Predominantly all impaired credit card loans are in the U.S.
|
|
Three months ended June 30,
|
|
Six months
ended June 30,
|
||||||||||
(in millions)
|
2014
|
2013
|
|
2014
|
2013
|
||||||||
Average impaired credit card loans
|
$
|
2,617
|
|
$
|
4,070
|
|
|
$
|
2,776
|
|
$
|
4,294
|
|
Interest income on impaired credit card loans
|
32
|
|
52
|
|
|
68
|
|
110
|
|
(in millions, except weighted-average data)
|
Three months
ended June 30, |
|
Six months
ended June 30,
|
||||||||||
2014
|
2013
|
|
2014
|
2013
|
|||||||||
Weighted-average interest rate of loans – before TDR
|
15.05
|
%
|
15.38
|
%
|
|
15.04
|
%
|
15.44
|
%
|
||||
Weighted-average interest rate of loans – after TDR
|
4.33
|
|
4.27
|
|
|
4.36
|
|
4.88
|
|
||||
Loans that redefaulted within one year of modification
(a)
|
$
|
29
|
|
$
|
41
|
|
|
$
|
63
|
|
$
|
85
|
|
(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
|
|
Financial
institutions |
|
Government agencies
|
|
Other
(d)
|
|
Total
retained loans |
||||||||||||||||||||||||||||||
(in millions,
except ratios)
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
||||||||||||||||||||||||
Loans by risk ratings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Investment-grade
|
$
|
58,802
|
|
$
|
57,690
|
|
|
$
|
56,282
|
|
$
|
52,195
|
|
|
$
|
30,736
|
|
$
|
26,712
|
|
|
$
|
9,362
|
|
$
|
9,979
|
|
|
$
|
80,509
|
|
$
|
79,494
|
|
|
$
|
235,691
|
|
$
|
226,070
|
|
Noninvestment-grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Noncriticized
|
46,668
|
|
43,477
|
|
|
15,215
|
|
14,381
|
|
|
8,048
|
|
6,674
|
|
|
280
|
|
440
|
|
|
9,776
|
|
10,992
|
|
|
79,987
|
|
75,964
|
|
||||||||||||
Criticized performing
|
2,625
|
|
2,385
|
|
|
1,841
|
|
2,229
|
|
|
235
|
|
272
|
|
|
3
|
|
42
|
|
|
425
|
|
480
|
|
|
5,129
|
|
5,408
|
|
||||||||||||
Criticized nonaccrual
|
256
|
|
294
|
|
|
288
|
|
346
|
|
|
21
|
|
25
|
|
|
—
|
|
1
|
|
|
162
|
|
155
|
|
|
727
|
|
821
|
|
||||||||||||
Total noninvestment-
grade
|
49,549
|
|
46,156
|
|
|
17,344
|
|
16,956
|
|
|
8,304
|
|
6,971
|
|
|
283
|
|
483
|
|
|
10,363
|
|
11,627
|
|
|
85,843
|
|
82,193
|
|
||||||||||||
Total retained loans
|
$
|
108,351
|
|
$
|
103,846
|
|
|
$
|
73,626
|
|
$
|
69,151
|
|
|
$
|
39,040
|
|
$
|
33,683
|
|
|
$
|
9,645
|
|
$
|
10,462
|
|
|
$
|
90,872
|
|
$
|
91,121
|
|
|
$
|
321,534
|
|
$
|
308,263
|
|
% of total criticized to
total retained loans
|
2.66
|
%
|
2.58
|
%
|
|
2.89
|
%
|
3.72
|
%
|
|
0.66
|
%
|
0.88
|
%
|
|
0.03
|
%
|
0.41
|
%
|
|
0.65
|
%
|
0.70
|
%
|
|
1.82
|
%
|
2.02
|
%
|
||||||||||||
% of nonaccrual loans
to total retained loans
|
0.24
|
|
0.28
|
|
|
0.39
|
|
0.50
|
|
|
0.05
|
|
0.07
|
|
|
—
|
|
0.01
|
|
|
0.18
|
|
0.17
|
|
|
0.23
|
|
0.27
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Loans by geographic
distribution
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total non-U.S.
|
$
|
35,397
|
|
$
|
34,440
|
|
|
$
|
2,765
|
|
$
|
1,369
|
|
|
$
|
25,531
|
|
$
|
22,726
|
|
|
$
|
1,421
|
|
$
|
2,146
|
|
|
$
|
44,589
|
|
$
|
43,376
|
|
|
$
|
109,703
|
|
$
|
104,057
|
|
Total U.S.
|
72,954
|
|
69,406
|
|
|
70,861
|
|
67,782
|
|
|
13,509
|
|
10,957
|
|
|
8,224
|
|
8,316
|
|
|
46,283
|
|
47,745
|
|
|
211,831
|
|
204,206
|
|
||||||||||||
Total retained loans
|
$
|
108,351
|
|
$
|
103,846
|
|
|
$
|
73,626
|
|
$
|
69,151
|
|
|
$
|
39,040
|
|
$
|
33,683
|
|
|
$
|
9,645
|
|
$
|
10,462
|
|
|
$
|
90,872
|
|
$
|
91,121
|
|
|
$
|
321,534
|
|
$
|
308,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Loan delinquency
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Current and less than
30 days past due and
still accruing
|
$
|
107,836
|
|
$
|
103,357
|
|
|
$
|
73,191
|
|
$
|
68,627
|
|
|
$
|
38,967
|
|
$
|
33,426
|
|
|
$
|
9,574
|
|
$
|
10,421
|
|
|
$
|
89,671
|
|
$
|
89,717
|
|
|
$
|
319,239
|
|
$
|
305,548
|
|
30–89 days past due
and still accruing
|
233
|
|
181
|
|
|
125
|
|
164
|
|
|
50
|
|
226
|
|
|
18
|
|
40
|
|
|
1,032
|
|
1,233
|
|
|
1,458
|
|
1,844
|
|
||||||||||||
90 or more days
past due and
still accruing
(c)
|
26
|
|
14
|
|
|
22
|
|
14
|
|
|
2
|
|
6
|
|
|
53
|
|
—
|
|
|
7
|
|
16
|
|
|
110
|
|
50
|
|
||||||||||||
Criticized nonaccrual
|
256
|
|
294
|
|
|
288
|
|
346
|
|
|
21
|
|
25
|
|
|
—
|
|
1
|
|
|
162
|
|
155
|
|
|
727
|
|
821
|
|
||||||||||||
Total retained loans
|
$
|
108,351
|
|
$
|
103,846
|
|
|
$
|
73,626
|
|
$
|
69,151
|
|
|
$
|
39,040
|
|
$
|
33,683
|
|
|
$
|
9,645
|
|
$
|
10,462
|
|
|
$
|
90,872
|
|
$
|
91,121
|
|
|
$
|
321,534
|
|
$
|
308,263
|
|
(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 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 of
JPMorgan Chase
’s
2013
Annual Report
for additional information on SPEs.
|
(in millions, except ratios)
|
Multifamily
|
|
Commercial lessors
|
|
Commercial construction and development
|
|
Other
|
|
Total real estate loans
|
|||||||||||||||||||||||||
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|||||||||||||||||||||
Real estate retained loans
|
$
|
46,711
|
|
$
|
44,389
|
|
|
$
|
16,833
|
|
$
|
15,949
|
|
|
$
|
3,944
|
|
$
|
3,674
|
|
|
$
|
6,138
|
|
$
|
5,139
|
|
|
$
|
73,626
|
|
$
|
69,151
|
|
Criticized exposure
|
935
|
|
1,142
|
|
|
1,124
|
|
1,323
|
|
|
48
|
|
81
|
|
|
22
|
|
29
|
|
|
2,129
|
|
2,575
|
|
||||||||||
% of criticized exposure to
total real estate retained loans
|
2.00
|
%
|
2.57
|
%
|
|
6.68
|
%
|
8.30
|
%
|
|
1.22
|
%
|
2.20
|
%
|
|
0.36
|
%
|
0.56
|
%
|
|
2.89
|
%
|
3.72
|
%
|
||||||||||
Criticized nonaccrual
|
$
|
159
|
|
$
|
191
|
|
|
$
|
127
|
|
$
|
143
|
|
|
$
|
—
|
|
$
|
3
|
|
|
$
|
2
|
|
$
|
9
|
|
|
$
|
288
|
|
$
|
346
|
|
% of criticized nonaccrual to
total real estate retained loans
|
0.34
|
%
|
0.43
|
%
|
|
0.75
|
%
|
0.90
|
%
|
|
—
|
%
|
0.08
|
%
|
|
0.03
|
%
|
0.18
|
%
|
|
0.39
|
%
|
0.50
|
%
|
(in millions)
|
Commercial
and industrial
|
|
Real estate
|
|
Financial
institutions
|
|
Government
agencies
|
|
Other
|
|
Total
retained loans
|
|
|||||||||||||||||||||||||||||||
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
|
Dec 31,
2013 |
|
|||||||||||||||||||||||||
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
With an allowance
|
$
|
232
|
|
$
|
236
|
|
|
$
|
200
|
|
$
|
258
|
|
|
$
|
5
|
|
$
|
17
|
|
|
$
|
—
|
|
$
|
1
|
|
|
$
|
104
|
|
$
|
85
|
|
|
$
|
541
|
|
|
$
|
597
|
|
|
Without an allowance
(a)
|
32
|
|
58
|
|
|
89
|
|
109
|
|
|
8
|
|
8
|
|
|
—
|
|
—
|
|
|
62
|
|
73
|
|
|
191
|
|
|
248
|
|
|
||||||||||||
Total
impaired loans
|
$
|
264
|
|
$
|
294
|
|
|
$
|
289
|
|
$
|
367
|
|
|
$
|
13
|
|
$
|
25
|
|
|
$
|
—
|
|
$
|
1
|
|
|
$
|
166
|
|
$
|
158
|
|
|
$
|
732
|
|
(c)
|
$
|
845
|
|
(c)
|
Allowance for loan losses related to impaired loans
|
$
|
60
|
|
$
|
75
|
|
|
$
|
43
|
|
$
|
63
|
|
|
$
|
11
|
|
$
|
16
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
24
|
|
$
|
27
|
|
|
$
|
138
|
|
|
$
|
181
|
|
|
Unpaid principal balance of impaired
loans
(b)
|
325
|
|
448
|
|
|
366
|
|
454
|
|
|
12
|
|
24
|
|
|
—
|
|
1
|
|
|
251
|
|
241
|
|
|
954
|
|
|
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
June 30, 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.
|
(c)
|
Based upon the domicile of the borrower, predominantly all wholesale impaired loans are in the U.S.
|
|
Three months
ended June 30, |
|
Six months
ended June 30, |
||||||||||
(in millions)
|
2014
|
2013
|
|
2014
|
2013
|
||||||||
Commercial and industrial
|
$
|
249
|
|
$
|
387
|
|
|
$
|
270
|
|
$
|
496
|
|
Real estate
|
306
|
|
518
|
|
|
330
|
|
526
|
|
||||
Financial institutions
|
19
|
|
11
|
|
|
21
|
|
9
|
|
||||
Government agencies
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Other
|
159
|
|
226
|
|
|
164
|
|
225
|
|
||||
Total
(a)
|
$
|
733
|
|
$
|
1,142
|
|
|
$
|
785
|
|
$
|
1,256
|
|
(a)
|
The related interest income on accruing impaired loans and interest income recognized on a cash basis were not material for the three and six months ended
June 30, 2014
and
2013
.
|
Three months ended June 30,
(in millions) |
|
Commercial and industrial
|
|
Real estate
|
|
Other
(b)
|
|
Total
|
||||||||||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|||||||||||||||||
Beginning balance of TDRs
|
|
$
|
84
|
|
|
$
|
254
|
|
|
$
|
78
|
|
|
$
|
124
|
|
|
$
|
31
|
|
|
$
|
43
|
|
|
$
|
193
|
|
|
$
|
421
|
|
New TDRs
|
|
25
|
|
|
$
|
27
|
|
|
—
|
|
|
10
|
|
|
3
|
|
|
15
|
|
|
28
|
|
|
52
|
|
|||||||
Increases to existing TDRs
|
|
10
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
1
|
|
||||||||
Charge-offs post-modification
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Sales and other
(a)
|
|
(9
|
)
|
|
(173
|
)
|
|
(4
|
)
|
|
(23
|
)
|
|
(12
|
)
|
|
(24
|
)
|
|
(25
|
)
|
|
(220
|
)
|
||||||||
Ending balance of TDRs
|
|
$
|
110
|
|
|
$
|
109
|
|
|
$
|
74
|
|
|
$
|
111
|
|
|
$
|
22
|
|
|
$
|
34
|
|
|
$
|
206
|
|
|
$
|
254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Six months ended June 30,
(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
|
|
48
|
|
|
$
|
41
|
|
|
10
|
|
|
41
|
|
|
3
|
|
|
37
|
|
|
61
|
|
|
119
|
|
|||||||
Increases to existing TDRs
|
|
11
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
4
|
|
||||||||
Charge-offs post-modification
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(4
|
)
|
||||||||
Sales and other
(a)
|
|
(26
|
)
|
|
(510
|
)
|
|
(24
|
)
|
|
(26
|
)
|
|
(13
|
)
|
|
(25
|
)
|
|
(63
|
)
|
|
(561
|
)
|
||||||||
Ending balance of TDRs
|
|
$
|
110
|
|
|
$
|
109
|
|
|
$
|
74
|
|
|
$
|
111
|
|
|
$
|
22
|
|
|
$
|
34
|
|
|
$
|
206
|
|
|
$
|
254
|
|
TDRs on nonaccrual status
|
|
$
|
110
|
|
|
$
|
102
|
|
|
$
|
67
|
|
|
$
|
82
|
|
|
$
|
19
|
|
|
$
|
27
|
|
|
$
|
196
|
|
|
$
|
211
|
|
Additional commitments to lend to borrowers whose loans have been modified in TDRs
|
|
145
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
145
|
|
|
23
|
|
(a)
|
Sales and other are largely sales and paydowns.
|
(b)
|
Includes loans to Financial institutions, Government agencies and Other.
|
|
2014
|
|
2013
|
||||||||||||||||||||||||||
Six months ended June 30,
(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
|
1,084
|
|
|
1,982
|
|
|
77
|
|
3,143
|
|
|
1,458
|
|
|
2,414
|
|
|
116
|
|
3,988
|
|
||||||||
Gross recoveries
|
(399
|
)
|
|
(209
|
)
|
|
(108
|
)
|
(716
|
)
|
|
(394
|
)
|
|
(318
|
)
|
|
(148
|
)
|
(860
|
)
|
||||||||
Net charge-offs/(recoveries)
|
685
|
|
|
1,773
|
|
|
(31
|
)
|
2,427
|
|
|
1,064
|
|
|
2,096
|
|
|
(32
|
)
|
3,128
|
|
||||||||
Write-offs of PCI loans
(a)
|
109
|
|
|
—
|
|
|
—
|
|
109
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Provision for loan losses
|
81
|
|
|
1,573
|
|
|
(55
|
)
|
1,599
|
|
|
(531
|
)
|
|
1,046
|
|
|
64
|
|
579
|
|
||||||||
Other
|
—
|
|
|
(1
|
)
|
|
—
|
|
(1
|
)
|
|
(6
|
)
|
|
(6
|
)
|
|
9
|
|
(3
|
)
|
||||||||
Ending balance at June 30,
|
$
|
7,743
|
|
|
$
|
3,594
|
|
|
$
|
3,989
|
|
$
|
15,326
|
|
|
$
|
10,691
|
|
|
$
|
4,445
|
|
|
$
|
4,248
|
|
$
|
19,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses by impairment methodology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific
(b)
|
$
|
598
|
|
|
$
|
583
|
|
(c)
|
$
|
138
|
|
$
|
1,319
|
|
|
$
|
713
|
|
|
$
|
1,227
|
|
(c)
|
$
|
228
|
|
$
|
2,168
|
|
Formula-based
|
3,396
|
|
|
3,011
|
|
|
3,851
|
|
10,258
|
|
|
4,267
|
|
|
3,218
|
|
|
4,020
|
|
11,505
|
|
||||||||
PCI
|
3,749
|
|
|
—
|
|
|
—
|
|
3,749
|
|
|
5,711
|
|
|
—
|
|
|
—
|
|
5,711
|
|
||||||||
Total allowance for loan losses
|
$
|
7,743
|
|
|
$
|
3,594
|
|
|
$
|
3,989
|
|
$
|
15,326
|
|
|
$
|
10,691
|
|
|
$
|
4,445
|
|
|
$
|
4,248
|
|
$
|
19,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans by impairment methodology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific
|
$
|
13,191
|
|
|
$
|
2,467
|
|
|
$
|
732
|
|
$
|
16,390
|
|
|
$
|
14,251
|
|
|
$
|
3,857
|
|
|
$
|
1,032
|
|
$
|
19,140
|
|
Formula-based
|
224,905
|
|
|
123,154
|
|
|
320,797
|
|
668,856
|
|
|
216,401
|
|
|
120,431
|
|
|
307,164
|
|
643,996
|
|
||||||||
PCI
|
50,118
|
|
|
—
|
|
|
5
|
|
50,123
|
|
|
56,736
|
|
|
—
|
|
|
12
|
|
56,748
|
|
||||||||
Total retained loans
|
$
|
288,214
|
|
|
$
|
125,621
|
|
|
$
|
321,534
|
|
$
|
735,369
|
|
|
$
|
287,388
|
|
|
$
|
124,288
|
|
|
$
|
308,208
|
|
$
|
719,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired collateral-dependent loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net charge-offs/(recoveries)
|
$
|
81
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
$
|
76
|
|
|
$
|
132
|
|
|
$
|
—
|
|
|
$
|
10
|
|
$
|
142
|
|
Loans measured at fair value of collateral less cost to sell
|
3,250
|
|
|
—
|
|
|
321
|
|
3,571
|
|
|
3,152
|
|
|
—
|
|
|
394
|
|
3,546
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for lending-related commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance at January 1,
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
697
|
|
$
|
705
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
661
|
|
$
|
668
|
|
Provision for lending-related commitments
|
1
|
|
|
—
|
|
|
(58
|
)
|
(57
|
)
|
|
1
|
|
|
—
|
|
|
84
|
|
85
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Ending balance at June 30,
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
639
|
|
$
|
648
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
745
|
|
$
|
753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for lending-related commitments by impairment methodology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
43
|
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
79
|
|
$
|
79
|
|
Formula-based
|
9
|
|
|
—
|
|
|
596
|
|
605
|
|
|
8
|
|
|
—
|
|
|
666
|
|
674
|
|
||||||||
Total allowance for lending-related commitments
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
639
|
|
$
|
648
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
745
|
|
$
|
753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Lending-related commitments by impairment methodology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
122
|
|
$
|
122
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
283
|
|
$
|
283
|
|
Formula-based
|
56,410
|
|
|
533,688
|
|
|
451,153
|
|
1,041,251
|
|
|
62,303
|
|
|
532,359
|
|
|
445,189
|
|
1,039,851
|
|
||||||||
Total lending-related commitments
|
$
|
56,410
|
|
|
$
|
533,688
|
|
|
$
|
451,275
|
|
$
|
1,041,373
|
|
|
$
|
62,303
|
|
|
$
|
532,359
|
|
|
$
|
445,472
|
|
$
|
1,040,134
|
|
(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
|
154
|
|
Mortgage securitization trusts
|
Securitization of both originated and purchased residential mortgages
|
154-156
|
|
Other securitization trusts
|
Securitization of originated student loans
|
154-156
|
CIB
|
Mortgage and other securitization trusts
|
Securitization of both originated and purchased residential and commercial mortgages, automobile and student loans
|
154-156
|
|
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
|
156
|
|
Municipal bond vehicles
|
|
156-157
|
|
Credit-related note and asset swap vehicles
|
|
157
|
|
Principal amount outstanding
|
|
JPMorgan Chase interest in securitized assets in nonconsolidated VIEs
(c)(d)(e)
|
||||||||||||||||
June 30, 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
|
$
|
101.7
|
|
$
|
2.4
|
|
$
|
85.2
|
|
|
$
|
0.4
|
|
$
|
0.3
|
|
$
|
0.7
|
|
Subprime
|
29.8
|
|
1.9
|
|
26.0
|
|
|
0.1
|
|
—
|
|
0.1
|
|
||||||
Commercial and other
(b)
|
126.9
|
|
0.2
|
|
94.2
|
|
|
0.5
|
|
3.3
|
|
3.8
|
|
||||||
Total
|
$
|
258.4
|
|
$
|
4.5
|
|
$
|
205.4
|
|
|
$
|
1.0
|
|
$
|
3.6
|
|
$
|
4.6
|
|
|
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 the GSEs, loans in securitization transactions pursuant to Ginnie Mae guidelines, and other third-party-sponsored securitization entities on
pages 159–160
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 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 for further information on derivatives); senior and subordinated securities of
$105 million
and
$55 million
, respectively, at June 30, 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 June 30, 2014, and December 31, 2013,
69%
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
$437 million
and
$551 million
of investment-grade and
$238 million
and
$260 million
of noninvestment-grade retained interests at June 30, 2014, and December 31, 2013, respectively. The retained interests in commercial and other securitizations trusts consisted of
$3.6 billion
and
$3.9 billion
of investment-grade and
$124 million
and
$80 million
of noninvestment-grade retained interests at June 30, 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
|
|
|
|
|
||||||||
June 30, 2014
|
$
|
11.5
|
|
$
|
6.4
|
|
$
|
5.1
|
|
$
|
6.4
|
|
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
|
||||||||||||||
June 30, 2014
|
$
|
2.7
|
|
$
|
8.6
|
|
$
|
0.2
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
11.5
|
|
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.
|
|
Assets
|
|
Liabilities
|
|||||||||||||||||||
June 30, 2014
(in billions)
(a)
|
Trading assets
|
Loans
|
Other
(d)
|
Total
assets
(e)
|
|
Beneficial interests in
VIE assets
(f)
|
Other
(g)
|
Total
liabilities
|
||||||||||||||
VIE program type
|
|
|
|
|
|
|
|
|
||||||||||||||
Firm-sponsored credit card trusts
|
$
|
—
|
|
$
|
43.7
|
|
$
|
0.7
|
|
$
|
44.4
|
|
|
$
|
28.4
|
|
$
|
—
|
|
$
|
28.4
|
|
Firm-administered multi-seller conduits
|
—
|
|
17.0
|
|
0.2
|
|
17.2
|
|
|
9.6
|
|
—
|
|
9.6
|
|
|||||||
Municipal bond vehicles
|
3.0
|
|
—
|
|
—
|
|
3.0
|
|
|
2.5
|
|
—
|
|
2.5
|
|
|||||||
Mortgage securitization entities
(b)
|
2.3
|
|
1.6
|
|
—
|
|
3.9
|
|
|
2.9
|
|
0.8
|
|
3.7
|
|
|||||||
Other
(c)
|
0.7
|
|
2.3
|
|
1.1
|
|
4.1
|
|
|
2.3
|
|
0.2
|
|
2.5
|
|
|||||||
Total
|
$
|
6.0
|
|
$
|
64.6
|
|
$
|
2.0
|
|
$
|
72.6
|
|
|
$
|
45.7
|
|
$
|
1.0
|
|
$
|
46.7
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Assets
|
|
Liabilities
|
|||||||||||||||||||
December 31, 2013 (in billions)
(a)
|
Trading assets
|
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
$2.5 billion
of student loan securitization entities as of June 30, 2014, and December 31, 2013.
|
(d)
|
Includes assets classified as cash, 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
$33.6 billion
and
$31.8 billion
at June 30, 2014, and December 31, 2013, respectively. The maturities of the long-term beneficial interests as of June 30, 2014, were as follows:
$6.5 billion
under one year,
$19.1 billion
between one and five years, and
$8.0 billion
over five years, all respectively.
|
(g)
|
Includes liabilities classified as accounts payable and other liabilities in the Consolidated Balance Sheets.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||||||
(in millions, except rates)
(a)
|
Residential mortgage
(d)
|
Commercial and other
(e)
|
|
Residential mortgage
(d)
|
Commercial and other
(e)
|
|
Residential mortgage
(d)
|
Commercial and other
(e)
|
|
Residential mortgage
(d)
|
Commercial and other
(e)
|
||||||||||||||||
Principal securitized
|
$
|
304
|
|
$
|
2,612
|
|
|
$
|
443
|
|
$
|
3,078
|
|
|
$
|
660
|
|
$
|
4,639
|
|
|
$
|
1,059
|
|
$
|
5,284
|
|
All cash flows during the period:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Proceeds from new securitizations
(b)
|
$
|
312
|
|
$
|
2,664
|
|
|
$
|
446
|
|
$
|
3,149
|
|
|
$
|
663
|
|
$
|
4,708
|
|
|
$
|
1,080
|
|
$
|
5,426
|
|
Servicing fees collected
|
137
|
|
1
|
|
|
158
|
|
2
|
|
|
276
|
|
2
|
|
|
285
|
|
3
|
|
||||||||
Purchases of previously transferred financial assets (or the underlying collateral)
(c)
|
64
|
|
—
|
|
|
19
|
|
—
|
|
|
67
|
|
—
|
|
|
271
|
|
—
|
|
||||||||
Cash flows received on interests
|
41
|
|
397
|
|
|
30
|
|
78
|
|
|
85
|
|
459
|
|
|
55
|
|
142
|
|
(a)
|
Excludes re-securitization transactions.
|
(b)
|
For the three and six months ended June 30, 2014,
$312 million
and
$642 million
of proceeds from residential mortgage securitizations were received as securities classified in level 2 and
zero
and
$21 million
of proceeds classified as level 3 of the fair value hierarchy, respectively. For the three and six months ended June 30, 2014,
$2.3 billion
and
$4.3 billion
, respectively, of proceeds from commercial mortgage securitizations were received as securities classified in level 2 and
$130 million
of proceeds classified as level 3 of the fair value hierarchy, and
$280 million
of proceeds from commercial mortgage securitization were received as cash. For the three and six months ended June 30, 2013,
$446 million
and
$1.1 billion
, respectively, of proceeds from residential mortgage securitizations were received as securities classified in level 2 of the fair value hierarchy. For the three and six months ended June 30, 2013,
$3.1 billion
and
$5.2 billion
, respectively, of proceeds from commercial mortgage securitizations were received as securities classified in level 2 of the fair value hierarchy, and
zero
and
$207 million
, respectively, of proceeds from commercial mortgage securitizations were received as cash. All loans transferred into securitization vehicles during the three and six months ended June 30, 2014 and 2013, were classified as trading assets; changes in fair value were recorded in principal transactions revenue, and there were no significant gains or losses associated with the securitization activity.
|
(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 certain loan securitization transactions entered into with Ginnie Mae, Fannie Mae and Freddie Mac.
|
(e)
|
Includes commercial and student loan securitizations.
|
|
Three months
ended June 30,
|
|
Six months
ended June 30,
|
||||||||||
(in millions)
|
2014
|
2013
|
|
2014
|
2013
|
||||||||
Carrying value of loans sold
(a)
|
$
|
12,603
|
|
$
|
48,045
|
|
|
$
|
26,523
|
|
$
|
102,925
|
|
Proceeds received from loan sales as cash
|
50
|
|
295
|
|
|
89
|
|
461
|
|
||||
Proceeds from loans sales as securities
(b)
|
12,461
|
|
47,223
|
|
|
26,196
|
|
101,392
|
|
||||
Total proceeds received from loan sales
(c)
|
$
|
12,511
|
|
$
|
47,518
|
|
|
$
|
26,285
|
|
$
|
101,853
|
|
Gains on loan sales
(d)
|
$
|
82
|
|
$
|
112
|
|
|
$
|
119
|
|
$
|
250
|
|
(a)
|
Predominantly to the GSEs and in securitization transactions pursuant to Ginnie Mae guidelines.
|
(b)
|
Predominantly includes securities from the GSEs and Ginnie Mae 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 June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||||
(in millions)
|
Jun 30,
2014 |
Dec 31,
2013 |
|
Jun 30,
2014 |
Dec 31,
2013 |
|
2014
|
2013
|
|
2014
|
2013
|
||||||||||||||||
Securitized loans
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Prime / Alt-A & Option ARMs
|
$
|
85,193
|
|
$
|
90,381
|
|
|
$
|
13,158
|
|
$
|
14,882
|
|
|
$
|
598
|
|
$
|
1,310
|
|
|
$
|
1,257
|
|
$
|
2,959
|
|
Subprime
|
25,998
|
|
28,008
|
|
|
6,762
|
|
7,726
|
|
|
464
|
|
756
|
|
|
1,203
|
|
1,539
|
|
||||||||
Commercial and other
|
94,192
|
|
98,018
|
|
|
1,198
|
|
2,350
|
|
|
408
|
|
184
|
|
|
642
|
|
330
|
|
||||||||
Total loans securitized
(b)
|
$
|
205,383
|
|
$
|
216,407
|
|
|
$
|
21,118
|
|
$
|
24,958
|
|
|
$
|
1,470
|
|
$
|
2,250
|
|
|
$
|
3,102
|
|
$
|
4,828
|
|
(a)
|
Total assets held in securitization-related SPEs were
$258.4 billion
and
$271.7 billion
, respectively, at June 30, 2014, and December 31, 2013. The
$205.4 billion
and
$216.4 billion
, respectively, of loans securitized at June 30, 2014, and December 31, 2013, excluded:
$48.5 billion
and
$50.8 billion
, respectively, of securitized loans in which the Firm has no continuing involvement, and
$4.5 billion
of loan securitizations consolidated on the Firm’s Consolidated Balance Sheets at June 30, 2014, and December 31, 2013.
|
(b)
|
Includes securitized loans that were previously recorded at fair value and classified as trading assets.
|
(in millions)
|
June 30, 2014
|
December 31, 2013
|
||||
Goodwill
|
$
|
48,110
|
|
$
|
48,081
|
|
Mortgage servicing rights
|
8,347
|
|
9,614
|
|
||
Other intangible assets:
|
|
|
||||
Purchased credit card relationships
|
$
|
41
|
|
$
|
131
|
|
Other credit card-related intangibles
|
146
|
|
173
|
|
||
Core deposit intangibles
|
74
|
|
159
|
|
||
Other intangibles
|
1,078
|
|
1,155
|
|
||
Total other intangible assets
|
$
|
1,339
|
|
$
|
1,618
|
|
(in millions)
|
June 30, 2014
|
December 31, 2013
|
||||
Consumer & Community Banking
|
$
|
30,999
|
|
$
|
30,985
|
|
Corporate & Investment Bank
|
6,893
|
|
6,888
|
|
||
Commercial Banking
|
2,862
|
|
2,862
|
|
||
Asset Management
|
6,979
|
|
6,969
|
|
||
Corporate/Private Equity
|
377
|
|
377
|
|
||
Total goodwill
|
$
|
48,110
|
|
$
|
48,081
|
|
|
Three months
ended June 30, |
|
Six months
ended June 30, |
||||||||||
(in millions)
|
2014
|
2013
|
|
2014
|
2013
|
||||||||
Balance at beginning of period
(a)
|
$
|
48,065
|
|
$
|
48,067
|
|
|
$
|
48,081
|
|
$
|
48,175
|
|
Changes during the period from:
|
|
|
|
|
|
||||||||
Business combinations
|
9
|
|
11
|
|
|
18
|
|
36
|
|
||||
Dispositions
|
—
|
|
(5
|
)
|
|
—
|
|
(5
|
)
|
||||
Other
(b)
|
36
|
|
(16
|
)
|
|
11
|
|
(149
|
)
|
||||
Balance at June 30,
(a)
|
$
|
48,110
|
|
$
|
48,057
|
|
|
$
|
48,110
|
|
$
|
48,057
|
|
(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.
|
|
As of or for the three months
ended June 30, |
|
As of or for the six months
ended June 30, |
|
||||||||||||
(in millions, except where otherwise noted)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
||||||||
Fair value at beginning of period
|
$
|
8,552
|
|
|
$
|
7,949
|
|
|
$
|
9,614
|
|
|
$
|
7,614
|
|
|
MSR activity:
|
|
|
|
|
|
|
|
|
||||||||
Originations of MSRs
|
178
|
|
|
652
|
|
|
370
|
|
|
1,342
|
|
|
||||
Purchase of MSRs
|
3
|
|
|
3
|
|
|
6
|
|
|
(3
|
)
|
|
||||
Disposition of MSRs
|
2
|
|
|
(19
|
)
|
|
(186
|
)
|
(f)
|
(418
|
)
|
(f)
|
||||
Net additions
|
183
|
|
|
636
|
|
|
190
|
|
|
921
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Changes due to collection/realization of expected cash flows
(a)
|
(239
|
)
|
|
(288
|
)
|
|
(486
|
)
|
|
(547
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Changes in valuation due to inputs and assumptions:
|
|
|
|
|
|
|
|
|
||||||||
Changes due to market interest rates and other
(b)
|
(369
|
)
|
|
1,074
|
|
|
(731
|
)
|
|
1,620
|
|
|
||||
Changes in valuation due to other inputs and assumptions:
|
|
|
|
|
|
|
|
|
||||||||
Projected cash flows (e.g., cost to service)
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
290
|
|
(h)
|
||||
Discount rates
|
(10
|
)
|
|
—
|
|
|
(459
|
)
|
(g)
|
(78
|
)
|
|
||||
Prepayment model changes and other
(c)
|
230
|
|
|
(36
|
)
|
|
230
|
|
|
(485
|
)
|
(i)
|
||||
Total changes in valuation due to other inputs and assumptions
|
220
|
|
|
(36
|
)
|
|
(240
|
)
|
|
(273
|
)
|
|
||||
Total changes in valuation due to inputs and assumptions
(a)
|
(149
|
)
|
|
1,038
|
|
|
(971
|
)
|
|
1,347
|
|
|
||||
Fair value at June 30,
(d)
|
$
|
8,347
|
|
|
$
|
9,335
|
|
|
$
|
8,347
|
|
|
$
|
9,335
|
|
|
Change in unrealized gains/(losses) included in income related to MSRs
held at June 30,
|
$
|
(149
|
)
|
|
$
|
1,038
|
|
|
$
|
(971
|
)
|
|
$
|
1,347
|
|
|
Contractual service fees, late fees and other ancillary fees included in income
|
$
|
731
|
|
|
$
|
835
|
|
|
$
|
1,488
|
|
|
$
|
1,704
|
|
|
Third-party mortgage loans serviced at June 30, (in billions)
|
$
|
791
|
|
|
$
|
839
|
|
|
$
|
791
|
|
|
$
|
839
|
|
|
Net servicer advances at June 30, (in billions)
(e)
|
$
|
8.8
|
|
|
$
|
10.1
|
|
|
$
|
8.8
|
|
|
$
|
10.1
|
|
|
(a)
|
Included changes related to commercial real estate of
$(2) million
for the
three months ended
June 30, 2014
, and
$(4) million
and
$(2) million
for the
six months ended
June 30, 2014
and
2013
, respectively.
|
(b)
|
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.
|
(c)
|
Represents changes in prepayments other than those attributable to changes in market interest rates.
|
(d)
|
Included
$14 million
and
$21 million
related to commercial real estate at
June 30, 2014
and
2013
, respectively.
|
(e)
|
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 recoverable servicer 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. Servicer advances are recognized net of an allowance for unrecoverable advances.
|
(f)
|
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 and six months ended
June 30, 2014
and
2013
.
|
(g)
|
For the
six months ended
June 30, 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
six months ended
June 30, 2013
, the increase was driven by the inclusion in the MSR valuation model of servicing fees receivable on certain delinquent loans.
|
(i)
|
For the
six months ended
June 30, 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 June 30, |
|
Six months
ended June 30, |
|
||||||||||||
(in millions)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
||||||||
CCB mortgage fees and related income
|
|
|
|
|
|
|
|
|
|
||||||||
Net production revenue:
|
|
|
|
|
|
|
|
|
|
||||||||
Production revenue
|
|
$
|
186
|
|
|
$
|
1,064
|
|
|
$
|
347
|
|
|
$
|
2,059
|
|
|
Repurchase (losses)/benefits
|
|
137
|
|
|
16
|
|
|
265
|
|
|
(65
|
)
|
|
||||
Net production revenue
|
|
323
|
|
|
1,080
|
|
|
612
|
|
|
1,994
|
|
|
||||
Net mortgage servicing revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating revenue:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loan servicing revenue
|
|
867
|
|
|
945
|
|
|
1,737
|
|
|
1,881
|
|
|
||||
Changes in MSR asset fair value due to collection/realization of expected
cash flows
|
|
(237
|
)
|
|
(285
|
)
|
|
(482
|
)
|
|
(543
|
)
|
|
||||
Total operating revenue
|
|
630
|
|
|
660
|
|
|
1,255
|
|
|
1,338
|
|
|
||||
Risk management:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Changes in MSR asset fair value due to market interest rates and other
(a)
|
|
(368
|
)
|
|
1,072
|
|
|
(730
|
)
|
|
1,618
|
|
|
||||
Other changes in MSR asset fair value due to other inputs and assumptions in
model
(b)
|
|
220
|
|
|
(36
|
)
|
|
(240
|
)
|
|
(273
|
)
|
|
||||
Change in derivative fair value and other
|
|
485
|
|
|
(957
|
)
|
|
907
|
|
|
(1,408
|
)
|
|
||||
Total risk management
|
|
337
|
|
|
79
|
|
|
(63
|
)
|
|
(63
|
)
|
|
||||
Total CCB net mortgage servicing revenue
|
|
967
|
|
|
739
|
|
|
1,192
|
|
|
1,275
|
|
|
||||
All other
|
|
1
|
|
|
4
|
|
|
1
|
|
|
6
|
|
|
||||
Mortgage fees and related income
|
|
$
|
1,291
|
|
|
$
|
1,823
|
|
|
$
|
1,805
|
|
|
$
|
3,275
|
|
|
(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)
|
Jun 30,
2014 |
|
Dec 31,
2013 |
|||||
Weighted-average prepayment speed assumption (“CPR”)
|
8.56
|
%
|
|
8.07
|
%
|
|||
Impact on fair value of 10% adverse change
|
$
|
(363
|
)
|
|
$
|
(362
|
)
|
|
Impact on fair value of 20% adverse change
|
(704
|
)
|
|
(705
|
)
|
|||
Weighted-average option adjusted spread
|
9.14
|
%
|
|
7.77
|
%
|
|||
Impact on fair value of 100 basis points adverse change
|
$
|
(343
|
)
|
|
$
|
(389
|
)
|
|
Impact on fair value of 200 basis points adverse change
|
(660
|
)
|
|
(750
|
)
|
|
|
June 30, 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
|
|
$
|
3,499
|
|
$
|
41
|
|
|
$
|
3,540
|
|
$
|
3,409
|
|
$
|
131
|
|
Other credit card-related intangibles
|
|
542
|
|
396
|
|
146
|
|
|
542
|
|
369
|
|
173
|
|
||||||
Core deposit intangibles
|
|
4,131
|
|
4,057
|
|
74
|
|
|
4,133
|
|
3,974
|
|
159
|
|
||||||
Other intangibles
(b)
|
|
2,257
|
|
1,179
|
|
1,078
|
|
|
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 June 30,
|
|
Six months ended June 30,
|
||||||||||
(in millions)
|
|
2014
|
2013
|
|
2014
|
2013
|
||||||||
Purchased credit card relationships
|
|
$
|
45
|
|
$
|
52
|
|
|
$
|
90
|
|
$
|
105
|
|
Other credit card-related intangibles
|
|
14
|
|
15
|
|
|
27
|
|
29
|
|
||||
Core deposit intangibles
|
|
42
|
|
50
|
|
|
85
|
|
100
|
|
||||
Other intangibles
|
|
31
|
|
35
|
|
|
61
|
|
70
|
|
||||
Total amortization expense
|
|
$
|
132
|
|
$
|
152
|
|
|
$
|
263
|
|
$
|
304
|
|
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
|
|
$
|
111
|
|
$
|
360
|
|
2015
|
12
|
|
39
|
|
26
|
|
93
|
|
170
|
|
|||||
2016
|
9
|
|
34
|
|
14
|
|
75
|
|
132
|
|
|||||
2017
|
5
|
|
29
|
|
7
|
|
59
|
|
100
|
|
|||||
2018
|
3
|
|
20
|
|
5
|
|
53
|
|
81
|
|
(a)
|
Includes
$90 million
,
$27 million
,
$85 million
and
$61 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
six months ended
June 30, 2014
.
|
(in millions)
|
June 30, 2014
|
|
December 31, 2013
|
||||
U.S. offices
|
|
|
|
||||
Noninterest-bearing
|
$
|
417,607
|
|
|
$
|
389,863
|
|
Interest-bearing:
|
|
|
|
||||
Demand
(a)
|
81,449
|
|
|
84,631
|
|
||
Savings
(b)
|
457,111
|
|
|
450,405
|
|
||
Time (included
$6,856
and $5,995 at fair value)
(c)
|
85,221
|
|
|
91,356
|
|
||
Total interest-bearing deposits
|
623,781
|
|
|
626,392
|
|
||
Total deposits in U.S. offices
|
1,041,388
|
|
|
1,016,255
|
|
||
Non-U.S. offices
|
|
|
|
||||
Noninterest-bearing
|
17,757
|
|
|
17,611
|
|
||
Interest-bearing:
|
|
|
|
||||
Demand
|
219,911
|
|
|
214,391
|
|
||
Savings
|
1,687
|
|
|
1,083
|
|
||
Time (included
$1,066
and $629 at fair value)
(c)
|
39,008
|
|
|
38,425
|
|
||
Total interest-bearing deposits
|
260,606
|
|
|
253,899
|
|
||
Total deposits in non-U.S. offices
|
278,363
|
|
|
271,510
|
|
||
Total deposits
|
$
|
1,319,751
|
|
|
$
|
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 of JPMorgan Chase’s 2013
Annual Report
.
|
(in millions, except per share amounts)
|
Three months
ended June 30, |
|
Six months
ended June 30, |
||||||||||
2014
|
2013
|
|
2014
|
2013
|
|||||||||
Basic earnings per share
|
|
|
|
|
|
||||||||
Net income
|
$
|
5,985
|
|
$
|
6,496
|
|
|
$
|
11,259
|
|
$
|
13,025
|
|
Less: Preferred stock dividends
|
268
|
|
204
|
|
|
495
|
|
386
|
|
||||
Net income applicable to common equity
|
5,717
|
|
6,292
|
|
|
10,764
|
|
12,639
|
|
||||
Less: Dividends and undistributed earnings allocated to participating securities
|
144
|
|
191
|
|
|
294
|
|
407
|
|
||||
Net income applicable to
common stockholders
|
$
|
5,573
|
|
$
|
6,101
|
|
|
$
|
10,470
|
|
$
|
12,232
|
|
|
|
|
|
|
|
||||||||
Total weighted-average
basic shares outstanding
|
3,780.6
|
|
3,782.4
|
|
|
3,783.9
|
|
3,800.3
|
|
||||
Net income per share
|
$
|
1.47
|
|
$
|
1.61
|
|
|
$
|
2.77
|
|
$
|
3.22
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share
|
|
|
|
|
|
||||||||
Net income applicable to
common stockholders
|
$
|
5,573
|
|
$
|
6,101
|
|
|
$
|
10,470
|
|
$
|
12,232
|
|
Total weighted-average
basic shares outstanding
|
3,780.6
|
|
3,782.4
|
|
|
3,783.9
|
|
3,800.3
|
|
||||
Add: Employee stock options,
SARs and
warrants
(a)
|
31.9
|
|
31.9
|
|
|
34.2
|
|
30.3
|
|
||||
Total weighted-average
diluted shares outstanding
(b)
|
3,812.5
|
|
3,814.3
|
|
|
3,818.1
|
|
3,830.6
|
|
||||
Net income per share
|
$
|
1.46
|
|
$
|
1.60
|
|
|
$
|
2.74
|
|
$
|
3.19
|
|
(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
8 million
for the
three months ended
June 30, 2014
and
2013
, respectively, and
1 million
and
11 million
for the
six months ended
June 30, 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
June 30, 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 April 1, 2014
|
|
$
|
3,792
|
|
|
|
|
$
|
(138
|
)
|
|
|
|
$
|
(80
|
)
|
|
|
|
$
|
(1,298
|
)
|
|
|
|
$
|
2,276
|
|
|
Net change
|
|
1,075
|
|
(b)
|
|
|
12
|
|
|
|
|
68
|
|
|
|
|
7
|
|
|
|
|
1,162
|
|
|
|||||
Balance at June 30, 2014
|
|
$
|
4,867
|
|
|
|
|
$
|
(126
|
)
|
|
|
|
$
|
(12
|
)
|
|
|
|
$
|
(1,291
|
)
|
|
|
|
$
|
3,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of or for the three months ended
June 30, 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 April 1, 2013
|
|
$
|
6,228
|
|
|
|
|
$
|
(108
|
)
|
|
|
|
$
|
58
|
|
|
|
|
$
|
(2,687
|
)
|
|
|
|
$
|
3,491
|
|
|
Net change
|
|
(3,091
|
)
|
(c)
|
|
|
(38
|
)
|
|
|
|
(290
|
)
|
|
|
|
64
|
|
|
|
|
(3,355
|
)
|
|
|||||
Balance at June 30, 2013
|
|
$
|
3,137
|
|
|
|
|
$
|
(146
|
)
|
|
|
|
$
|
(232
|
)
|
|
|
|
$
|
(2,623
|
)
|
|
|
|
$
|
136
|
|
|
As of or for the six months ended
June 30, 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
|
|
2,069
|
|
(b)
|
|
|
10
|
|
|
|
|
127
|
|
|
|
|
33
|
|
|
|
|
2,239
|
|
|
|||||
Balance at June 30, 2014
|
|
$
|
4,867
|
|
|
|
|
$
|
(126
|
)
|
|
|
|
$
|
(12
|
)
|
|
|
|
$
|
(1,291
|
)
|
|
|
|
$
|
3,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of or for the six months ended
June 30, 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
|
|
(3,731
|
)
|
(c)
|
|
|
(51
|
)
|
|
|
|
(352
|
)
|
|
|
|
168
|
|
|
|
|
(3,966
|
)
|
|
|||||
Balance at June 30, 2013
|
|
$
|
3,137
|
|
|
|
|
$
|
(146
|
)
|
|
|
|
$
|
(232
|
)
|
|
|
|
$
|
(2,623
|
)
|
|
|
|
$
|
136
|
|
|
(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 and six months ended
June 30, 2014
, was primarily due to higher market valuations of obligations of U.S. states and municipalities and U.S. mortgage-backed securities in the Firm’s AFS investment securities portfolio.
|
(c)
|
The net change for the three and six months ended June 30, 2013, was primarily related to the decline in fair value of U.S. government agency issued MBS and obligations of U.S. states and municipalities due to market changes, as well as net realized gains.
|
|
2014
|
|
2013
|
||||||||||||||||||||
Three months ended June 30, (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
|
$
|
1,778
|
|
|
$
|
(695
|
)
|
|
$
|
1,083
|
|
|
$
|
(4,947
|
)
|
|
$
|
1,931
|
|
|
$
|
(3,016
|
)
|
Reclassification adjustment for realized (gains)/losses included in
net income
(a)
|
(12
|
)
|
|
4
|
|
|
(8
|
)
|
|
(124
|
)
|
|
49
|
|
|
(75
|
)
|
||||||
Net change
|
1,766
|
|
|
(691
|
)
|
|
1,075
|
|
|
(5,071
|
)
|
|
1,980
|
|
|
(3,091
|
)
|
||||||
Translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Translation
(b)
|
218
|
|
|
(79
|
)
|
|
139
|
|
|
(607
|
)
|
|
223
|
|
|
(384
|
)
|
||||||
Hedges
(b)
|
(208
|
)
|
|
81
|
|
|
(127
|
)
|
|
571
|
|
|
(225
|
)
|
|
346
|
|
||||||
Net change
|
10
|
|
|
2
|
|
|
12
|
|
|
(36
|
)
|
|
(2
|
)
|
|
(38
|
)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized gains/(losses) arising during the period
|
143
|
|
|
(57
|
)
|
|
86
|
|
|
(512
|
)
|
|
201
|
|
|
(311
|
)
|
||||||
Reclassification adjustment for realized (gains)/losses included in
net income
(c)
|
(29
|
)
|
|
11
|
|
|
(18
|
)
|
|
34
|
|
|
(13
|
)
|
|
21
|
|
||||||
Net change
|
114
|
|
|
(46
|
)
|
|
68
|
|
|
(478
|
)
|
|
188
|
|
|
(290
|
)
|
||||||
Defined benefit pension and OPEB plans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net gains/(losses) arising during the period
|
19
|
|
|
(8
|
)
|
|
11
|
|
|
37
|
|
|
(15
|
)
|
|
22
|
|
||||||
Reclassification adjustments included in net income
(d)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of net loss
|
19
|
|
|
(7
|
)
|
|
12
|
|
|
79
|
|
|
(31
|
)
|
|
48
|
|
||||||
Prior service costs/(credits)
|
(12
|
)
|
|
5
|
|
|
(7
|
)
|
|
(11
|
)
|
|
5
|
|
|
(6
|
)
|
||||||
Foreign exchange and other
|
(15
|
)
|
|
6
|
|
|
(9
|
)
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
||||||
Net change
|
11
|
|
|
(4
|
)
|
|
7
|
|
|
104
|
|
|
(40
|
)
|
|
64
|
|
||||||
Total other comprehensive income/(loss)
|
$
|
1,901
|
|
|
$
|
(739
|
)
|
|
$
|
1,162
|
|
|
$
|
(5,481
|
)
|
|
$
|
2,126
|
|
|
$
|
(3,355
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
2014
|
|
2013
|
||||||||||||||||||||
Six months ended June 30, (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
|
$
|
3,399
|
|
|
$
|
(1,304
|
)
|
|
$
|
2,095
|
|
|
$
|
(5,462
|
)
|
|
$
|
2,116
|
|
|
$
|
(3,346
|
)
|
Reclassification adjustment for realized (gains)/losses included in
net income
(a)
|
(42
|
)
|
|
16
|
|
|
(26
|
)
|
|
(633
|
)
|
|
248
|
|
|
(385
|
)
|
||||||
Net change
|
3,357
|
|
|
(1,288
|
)
|
|
2,069
|
|
|
(6,095
|
)
|
|
2,364
|
|
|
(3,731
|
)
|
||||||
Translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Translation
(b)
|
372
|
|
|
(142
|
)
|
|
230
|
|
|
(1,034
|
)
|
|
381
|
|
|
(653
|
)
|
||||||
Hedges
(b)
|
(362
|
)
|
|
142
|
|
|
(220
|
)
|
|
991
|
|
|
(389
|
)
|
|
602
|
|
||||||
Net change
|
10
|
|
|
—
|
|
|
10
|
|
|
(43
|
)
|
|
(8
|
)
|
|
(51
|
)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized gains/(losses) arising during the period
|
215
|
|
|
(87
|
)
|
|
128
|
|
|
(642
|
)
|
|
252
|
|
|
(390
|
)
|
||||||
Reclassification adjustment for realized (gains)/losses included in
net income
(c)
|
(2
|
)
|
|
1
|
|
|
(1
|
)
|
|
63
|
|
|
(25
|
)
|
|
38
|
|
||||||
Net change
|
213
|
|
|
(86
|
)
|
|
127
|
|
|
(579
|
)
|
|
227
|
|
|
(352
|
)
|
||||||
Defined benefit pension and OPEB plans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net gains/(losses) arising during the period
|
88
|
|
|
(34
|
)
|
|
54
|
|
|
85
|
|
|
(25
|
)
|
|
60
|
|
||||||
Reclassification adjustments included in net income
(d)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of net loss
|
37
|
|
|
(15
|
)
|
|
22
|
|
|
160
|
|
|
(62
|
)
|
|
98
|
|
||||||
Prior service costs/(credits)
|
(22
|
)
|
|
9
|
|
|
(13
|
)
|
|
(22
|
)
|
|
9
|
|
|
(13
|
)
|
||||||
Foreign exchange and other
|
(19
|
)
|
|
(11
|
)
|
|
(30
|
)
|
|
36
|
|
|
(13
|
)
|
|
23
|
|
||||||
Net change
|
84
|
|
|
(51
|
)
|
|
33
|
|
|
259
|
|
|
(91
|
)
|
|
168
|
|
||||||
Total other comprehensive income/(loss)
|
$
|
3,664
|
|
|
$
|
(1,425
|
)
|
|
$
|
2,239
|
|
|
$
|
(6,458
|
)
|
|
$
|
2,492
|
|
|
$
|
(3,966
|
)
|
(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 and six months ended
June 30, 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)
|
||||||||||
|
Basel III Standardized Transitional
|
|
Basel III Advanced Transitional
|
|
Basel I
|
||||||
(in millions,
except ratios)
|
Jun 30,
2014 |
|
Jun 30,
2014 |
|
Dec 31,
2013 |
||||||
Regulatory capital
|
|
|
|
|
|
||||||
CET1 capital
|
$
|
160,086
|
|
|
$
|
160,086
|
|
|
NA
|
||
Tier 1 capital
(a)
|
179,884
|
|
|
179,884
|
|
|
$
|
165,663
|
|
||
Total capital
|
213,780
|
|
|
203,076
|
|
|
199,286
|
|
|||
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
||||||
Risk-weighted
|
1,458,620
|
|
|
1,626,427
|
|
|
1,387,863
|
|
|||
Adjusted average
(b)
|
2,374,025
|
|
|
2,374,025
|
|
|
2,343,713
|
|
|||
|
|
|
|
|
|
||||||
Capital ratios
(c)
|
|
|
|
|
|
||||||
CET1
|
11.0
|
%
|
|
9.8
|
%
|
|
NA
|
|
|||
Tier 1
(a)
|
12.3
|
|
|
11.1
|
|
|
11.9
|
%
|
|||
Total
|
14.7
|
|
|
12.5
|
|
|
14.4
|
|
|||
Tier 1 leverage
|
7.6
|
|
|
7.6
|
|
|
7.1
|
|
|
JPMorgan Chase Bank, N.A.
(d)
|
||||||||||
|
Basel III Standardized Transitional
|
|
Basel III Advanced Transitional
|
|
Basel I
|
||||||
(in millions,
except ratios)
|
Jun 30,
2014 |
|
Jun 30,
2014 |
|
Dec 31,
2013 |
||||||
Regulatory capital
|
|
|
|
|
|
||||||
CET1 capital
|
$
|
149,961
|
|
|
$
|
149,961
|
|
|
NA
|
||
Tier 1 capital
(a)
|
149,961
|
|
|
149,961
|
|
|
$
|
139,727
|
|
||
Total capital
|
168,636
|
|
|
160,749
|
|
|
165,496
|
|
|||
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
||||||
Risk-weighted
|
1,241,565
|
|
|
1,349,140
|
|
|
1,171,574
|
|
|||
Adjusted average
(b)
|
1,895,540
|
|
|
1,895,540
|
|
|
1,900,770
|
|
|||
|
|
|
|
|
|
||||||
Capital ratios
(c)
|
|
|
|
|
|
||||||
CET1
|
12.1
|
%
|
|
11.1
|
%
|
|
NA
|
||||
Tier 1
(a)
|
12.1
|
|
|
11.1
|
|
|
11.9
|
%
|
|||
Total
|
13.6
|
|
|
11.9
|
|
|
14.1
|
|
|||
Tier 1 leverage
|
7.9
|
|
|
7.9
|
|
|
7.4
|
|
|
Chase Bank USA, N.A.
(d)
|
||||||||||
|
Basel III Standardized Transitional
|
|
Basel III Advanced Transitional
|
|
Basel I
|
||||||
(in millions,
except ratios)
|
Jun 30,
2014 |
|
Jun 30,
2014 |
|
Dec 31,
2013 |
||||||
Regulatory capital
|
|
|
|
|
|
||||||
CET1 capital
|
$
|
13,626
|
|
|
$
|
13,626
|
|
|
NA
|
||
Tier 1 capital
(a)
|
13,626
|
|
|
13,626
|
|
|
$
|
12,956
|
|
||
Total capital
|
19,526
|
|
|
18,276
|
|
|
16,389
|
|
|||
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
||||||
Risk-weighted
|
98,509
|
|
|
154,964
|
|
|
100,990
|
|
|||
Adjusted average
(b)
|
114,031
|
|
|
114,031
|
|
|
109,731
|
|
|||
|
|
|
|
|
|
||||||
Capital ratios
(c)
|
|
|
|
|
|
||||||
CET1
|
13.8
|
%
|
|
8.8
|
%
|
|
NA
|
||||
Tier 1
(a)
|
13.8
|
|
|
8.8
|
|
|
12.8
|
%
|
|||
Total
|
19.8
|
|
|
11.8
|
|
|
16.2
|
|
|||
Tier 1 leverage
|
12.0
|
|
|
12.0
|
|
|
11.8
|
|
(a)
|
At June 30, 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 June 30, 2014, Chase Bank USA, N.A. had
no
trust preferred securities.
|
(b)
|
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.
|
(c)
|
Beginning April 1, 2014, the lower ratio represents the Collins Floor.
|
(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.
|
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
$145 million
and
$192 million
at June 30, 2014, and December 31, 2013, respectively; and deferred tax liabilities resulting from tax-deductible goodwill of
$2.8 billion
at both June 30, 2014, and December 31, 2013.
|
|
|
Well-capitalized ratios
(b)
|
|
Minimum capital ratios
(b)
|
||
Capital ratios
|
|
|
|
|
||
CET1
|
|
NA
|
|
|
4.0
|
%
|
Tier 1
|
|
6.0
|
%
|
|
5.5
|
|
Total
|
|
10.0
|
|
|
8.0
|
|
Tier 1 leverage
|
|
5.0
|
|
(a)
|
4.0
|
|
(a)
|
Represents requirements for bank 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.
|
(b)
|
As defined by the regulations issued by the Federal Reserve, OCC and FDIC. In addition to the 2014 well-capitalized standards, beginning January 1, 2015, Basel III Transitional CET1 capital and the Basel III Standardized Transitional and the Basel III Advanced Transitional CET1 capital ratios become relevant capital measures under the prompt corrective action requirements defined by the regulations.
|
(a)
|
Predominantly all consumer, excluding credit card, lending-related commitments contractual amounts are in the U.S.
|
(b)
|
Predominantly all credit card lending-related commitments contractual amounts are in the U.S.
|
(c)
|
At
June 30, 2014
, and
December 31, 2013
, reflects the contractual amount net of risk participations totaling
$184 million
and
$476 million
, respectively, for other unfunded commitments to extend credit;
$14.3 billion
and
$14.8 billion
, respectively, for standby letters of credit and other financial guarantees; and
$538 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.
|
(d)
|
At
June 30, 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
$17.0 billion
and
$18.9 billion
, respectively, within other unfunded commitments to extend credit; and
$15.2 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
.
|
(e)
|
At
June 30, 2014
, and
December 31, 2013
, included unissued standby letters of credit commitments of
$44.8 billion
and
$42.8 billion
, respectively.
|
(f)
|
At June 30, 2014, and December 31, 2013, the U.S. portion of the contractual amount of total wholesale lending-related commitments was
67%
and
68%
, respectively.
|
(g)
|
At
June 30, 2014
, and
December 31, 2013
, collateral held by the Firm in support of securities lending indemnification agreements was
$216.3 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.
|
(h)
|
At
June 30, 2014
, and
December 31, 2013
, the amount of commitments related to forward-starting reverse repurchase agreements and securities borrowing agreements were
$40.7 billion
and
$9.9 billion
, respectively. Commitments related to unsettled reverse repurchase agreements and securities borrowing agreements with regular-way settlement periods were
$33.5 billion
and
$28.3 billion
, at
June 30, 2014
, and
December 31, 2013
, respectively.
|
(i)
|
At
June 30, 2014
, and
December 31, 2013
, included unfunded commitments of
$130 million
and
$215 million
, respectively, to third-party private equity funds; and
$691 million
and
$1.9 billion
, at
June 30, 2014
, and
December 31, 2013
, to other equity investments. These commitments included
$111 million
and
$184 million
, respectively, related to investments that are generally fair valued at net asset value as discussed in Note 3. In addition, at both
June 30, 2014
, and
December 31, 2013
, included letters of credit hedged by derivative transactions and managed on a market risk basis of
$4.5 billion
.
|
(j)
|
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.
|
|
June 30, 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)
|
|
$
|
68,440
|
|
|
$
|
3,551
|
|
|
|
$
|
69,109
|
|
|
$
|
3,939
|
|
Noninvestment-grade
(a)
|
|
23,289
|
|
|
967
|
|
|
|
23,614
|
|
|
1,081
|
|
||||
Total contractual amount
|
|
$
|
91,729
|
|
|
$
|
4,518
|
|
|
|
$
|
92,723
|
|
|
$
|
5,020
|
|
Allowance for lending-related commitments
|
|
$
|
228
|
|
|
$
|
1
|
|
|
|
$
|
263
|
|
|
$
|
2
|
|
Commitments with collateral
|
|
40,331
|
|
|
1,718
|
|
|
|
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)
|
On October 25, 2013, the Firm announced that it had reached a
$1.1 billion
agreement with the FHFA to resolve, other than certain limited types of exposures, outstanding and future mortgage repurchase demands associated with loans sold to the GSEs from 2000 to 2008.
|
(b)
|
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
$1 million
and
$133 million
for the three months ended June 30, 2014 and 2013, respectively and
$3 million
and
$254 million
for the
six months ended
June 30, 2014
and
2013
, respectively.
|
(c)
|
Included a provision related to new loan sales of
$1 million
and
$6 million
for the three months ended
June 30, 2014
and
2013
, respectively, and
$2 million
and
$14 million
for the
six months ended
June 30, 2014
and
2013
, respectively.
|
As of or for the three months ended June 30,
(in millions, except ratios)
|
Corporate/Private Equity
|
|
Reconciling Items
(b)
|
|
Total
|
|||||||||||||||
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|||||||||||||
Noninterest revenue
|
$
|
351
|
|
$
|
290
|
|
|
$
|
(651
|
)
|
$
|
(582
|
)
|
|
$
|
13,656
|
|
$
|
14,507
|
|
Net interest income
|
(81
|
)
|
(676
|
)
|
|
(244
|
)
|
(165
|
)
|
|
10,798
|
|
10,704
|
|
||||||
Total net revenue
|
270
|
|
(386
|
)
|
|
(895
|
)
|
(747
|
)
|
|
24,454
|
|
25,211
|
|
||||||
Provision for credit losses
|
(10
|
)
|
5
|
|
|
—
|
|
—
|
|
|
692
|
|
47
|
|
||||||
Noninterest expense
|
180
|
|
716
|
|
|
—
|
|
—
|
|
|
15,431
|
|
15,866
|
|
||||||
Income/(loss) before income tax expense/(benefit)
|
100
|
|
(1,107
|
)
|
|
(895
|
)
|
(747
|
)
|
|
8,331
|
|
9,298
|
|
||||||
Income tax expense/(benefit)
|
(269
|
)
|
(555
|
)
|
|
(895
|
)
|
(747
|
)
|
|
2,346
|
|
2,802
|
|
||||||
Net income/(loss)
|
$
|
369
|
|
$
|
(552
|
)
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
5,985
|
|
$
|
6,496
|
|
Average common equity
|
$
|
71,159
|
|
$
|
72,283
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
206,159
|
|
$
|
197,283
|
|
Total assets
|
878,886
|
|
806,044
|
|
|
NA
|
|
NA
|
|
|
2,520,336
|
|
2,439,494
|
|
||||||
Return on average common equity
|
NM
|
|
NM
|
|
|
NM
|
|
NM
|
|
|
11
|
%
|
13
|
%
|
||||||
Overhead ratio
|
NM
|
|
NM
|
|
|
NM
|
|
NM
|
|
|
63
|
|
63
|
|
As of or for the six months ended June 30,
(in millions, except ratios)
|
Corporate/Private Equity
|
|
Reconciling Items
(b)
|
|
Total
|
|||||||||||||||
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
|||||||||||||
Noninterest revenue
|
$
|
875
|
|
$
|
651
|
|
|
$
|
(1,295
|
)
|
$
|
(1,146
|
)
|
|
$
|
25,982
|
|
$
|
28,696
|
|
Net interest income
|
(237
|
)
|
(1,270
|
)
|
|
(470
|
)
|
(327
|
)
|
|
21,465
|
|
21,637
|
|
||||||
Total net revenue
|
638
|
|
(619
|
)
|
|
(1,765
|
)
|
(1,473
|
)
|
|
47,447
|
|
50,333
|
|
||||||
Provision for credit losses
|
(21
|
)
|
2
|
|
|
—
|
|
—
|
|
|
1,542
|
|
664
|
|
||||||
Noninterest expense
|
14
|
|
718
|
|
|
—
|
|
—
|
|
|
30,067
|
|
31,289
|
|
||||||
Income/(loss) before income tax expense/(benefit)
|
645
|
|
(1,339
|
)
|
|
(1,765
|
)
|
(1,473
|
)
|
|
15,838
|
|
18,380
|
|
||||||
Income tax expense/(benefit)
|
(64
|
)
|
(1,037
|
)
|
|
(1,765
|
)
|
(1,473
|
)
|
|
4,579
|
|
5,355
|
|
||||||
Net income/(loss)
|
$
|
709
|
|
$
|
(302
|
)
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
11,259
|
|
$
|
13,025
|
|
Average common equity
|
$
|
68,989
|
|
$
|
71,016
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
203,989
|
|
$
|
196,016
|
|
Total assets
|
878,886
|
|
806,044
|
|
|
NA
|
|
NA
|
|
|
2,520,336
|
|
2,439,494
|
|
||||||
Return on average common equity
|
NM
|
|
NM
|
|
|
NM
|
|
NM
|
|
|
11
|
%
|
13
|
%
|
||||||
Overhead ratio
|
NM
|
|
NM
|
|
|
NM
|
|
NM
|
|
|
63
|
|
62
|
|
(a)
|
Managed basis starts with the reported U.S. GAAP results and includes certain reclassifications 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.
|
JPMorgan Chase & Co.
|
|||||||||||||||||||||
Consolidated average balance sheets, interest and rates
|
|||||||||||||||||||||
(Taxable-equivalent interest and rates; in millions, except rates)
|
|||||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
Three months ended June 30, 2014
|
|
Three months ended June 30, 2013
|
||||||||||||||||||
|
Average
balance
|
Interest
(d)
|
|
Rate
(annualized)
|
|
Average
balance
|
Interest
(d)
|
|
Rate
(annualized)
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits with banks
|
$
|
334,953
|
|
$
|
279
|
|
|
0.33
|
%
|
|
|
$
|
265,821
|
|
$
|
222
|
|
|
0.34
|
%
|
|
Federal funds sold and securities purchased under resale agreements
|
237,440
|
|
398
|
|
|
0.67
|
|
|
|
231,972
|
|
490
|
|
|
0.85
|
|
|
||||
Securities borrowed
(a)
|
114,905
|
|
(131
|
)
|
|
(0.46
|
)
|
|
|
115,194
|
|
(30
|
)
|
|
(0.11
|
)
|
|
||||
Trading assets – debt instruments
|
204,242
|
|
1,846
|
|
|
3.62
|
|
|
|
240,952
|
|
2,145
|
|
(f)
|
3.57
|
|
(f)
|
||||
Securities
|
353,278
|
|
2,457
|
|
|
2.79
|
|
(e)
|
|
359,108
|
|
1,882
|
|
|
2.10
|
|
(e)
|
||||
Loans
|
737,613
|
|
8,084
|
|
|
4.40
|
|
|
|
727,499
|
|
8,381
|
|
|
4.62
|
|
|
||||
Other assets
(b)
|
41,514
|
|
172
|
|
|
1.66
|
|
|
|
39,920
|
|
147
|
|
|
1.48
|
|
|
||||
Total interest-earning assets
|
2,023,945
|
|
13,105
|
|
|
2.60
|
|
|
|
1,980,466
|
|
13,237
|
|
(f)
|
2.68
|
|
(f)
|
||||
Allowance for loan losses
|
(15,729
|
)
|
|
|
|
|
|
(20,775
|
)
|
|
|
|
|
||||||||
Cash and due from banks
|
26,294
|
|
|
|
|
|
|
39,700
|
|
|
|
|
|
||||||||
Trading assets – equity instruments
|
121,184
|
|
|
|
|
|
|
116,333
|
|
|
|
|
|
||||||||
Trading assets – derivative receivables
|
60,830
|
|
|
|
|
|
|
75,310
|
|
|
|
|
|
||||||||
Goodwill
|
48,084
|
|
|
|
|
|
|
48,078
|
|
|
|
|
|
||||||||
Other intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage servicing rights
|
8,298
|
|
|
|
|
|
|
8,229
|
|
|
|
|
|
||||||||
Purchased credit card relationships
|
63
|
|
|
|
|
|
|
239
|
|
|
|
|
|
||||||||
Other intangibles
|
1,354
|
|
|
|
|
|
|
1,787
|
|
|
|
|
|
||||||||
Other assets
|
146,313
|
|
|
|
|
|
|
150,603
|
|
|
|
|
|
||||||||
Total assets
|
$
|
2,420,636
|
|
|
|
|
|
|
$
|
2,399,970
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits
|
$
|
863,163
|
|
$
|
417
|
|
|
0.19
|
%
|
|
|
$
|
810,096
|
|
$
|
539
|
|
|
0.27
|
%
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
212,555
|
|
160
|
|
|
0.30
|
|
|
|
264,240
|
|
159
|
|
|
0.24
|
|
|
||||
Commercial paper
|
59,760
|
|
34
|
|
|
0.23
|
|
|
|
54,391
|
|
29
|
|
|
0.21
|
|
|
||||
Trading liabilities – debt, short-term and other liabilities
(c)
|
221,001
|
|
261
|
|
|
0.48
|
|
|
|
201,668
|
|
254
|
|
(f)
|
0.50
|
|
(f)
|
||||
Beneficial interests issued by consolidated VIEs
|
47,407
|
|
105
|
|
|
0.89
|
|
|
|
56,742
|
|
126
|
|
|
0.89
|
|
|
||||
Long-term debt
|
271,194
|
|
1,086
|
|
|
1.61
|
|
|
|
270,796
|
|
1,261
|
|
|
1.87
|
|
|
||||
Total interest-bearing liabilities
|
1,675,080
|
|
2,063
|
|
|
0.49
|
|
|
|
1,657,933
|
|
2,368
|
|
(f)
|
0.57
|
|
(f)
|
||||
Noninterest-bearing deposits
|
380,836
|
|
|
|
|
|
|
363,537
|
|
|
|
|
|
||||||||
Trading liabilities – equity instruments
|
15,505
|
|
|
|
|
|
|
13,737
|
|
|
|
|
|
||||||||
Trading liabilities – derivative payables
|
49,487
|
|
|
|
|
|
|
66,246
|
|
|
|
|
|
||||||||
All other liabilities, including the allowance for lending-related commitments
|
77,806
|
|
|
|
|
|
|
90,139
|
|
|
|
|
|
||||||||
Total liabilities
|
2,198,714
|
|
|
|
|
|
|
2,191,592
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock
|
15,763
|
|
|
|
|
|
|
11,095
|
|
|
|
|
|
||||||||
Common stockholders’ equity
|
206,159
|
|
|
|
|
|
|
197,283
|
|
|
|
|
|
||||||||
Total stockholders’ equity
|
221,922
|
|
|
|
|
|
|
208,378
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
2,420,636
|
|
|
|
|
|
|
$
|
2,399,970
|
|
|
|
|
|
||||||
Interest rate spread
|
|
|
|
2.11
|
%
|
|
|
|
|
|
2.11
|
%
|
|
||||||||
Net interest income and net yield on interest-earning assets
|
|
$
|
11,042
|
|
|
2.19
|
|
|
|
|
$
|
10,869
|
|
|
2.20
|
|
|
(a)
|
Negative interest income and yield 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 trading liabilities - debt, short-term and other liabilities.
|
(b)
|
Includes margin loans.
|
(c)
|
Includes brokerage customer payables.
|
(d)
|
Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.
|
(e)
|
For the three months ended June 30, 2014 and 2013, the annualized rates for Securities, based on amortized cost, were 2.85% and 2.16%, respectively; this does not give effect to changes in fair value that are reflected in accumulated other comprehensive income/(loss).
|
(f)
|
Effective January 1, 2014, prior period amounts have been reclassified to conform with the current period presentation.
|
JPMorgan Chase & Co.
|
|||||||||||||||||||||
Consolidated average balance sheets, interest and rates
|
|||||||||||||||||||||
(Taxable-equivalent interest and rates; in millions, except rates)
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Six months ended June 30, 2014
|
|
Six months ended June 30, 2013
|
||||||||||||||||||
|
Average
balance |
Interest
(d)
|
|
Rate
(annualized) |
|
Average
balance |
Interest
(d)
|
|
Rate
(annualized) |
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits with banks
|
$
|
327,085
|
|
$
|
535
|
|
|
0.33
|
%
|
|
|
$
|
211,705
|
|
$
|
385
|
|
|
0.37
|
%
|
|
Federal funds sold and securities purchased under resale agreements
|
241,395
|
|
834
|
|
|
0.70
|
|
|
|
231,699
|
|
1,004
|
|
|
0.87
|
|
|
||||
Securities borrowed
(a)
|
116,556
|
|
(219
|
)
|
|
(0.38
|
)
|
|
|
117,751
|
|
(36
|
)
|
|
(0.06
|
)
|
|
||||
Trading assets – debt instruments
|
203,319
|
|
3,637
|
|
|
3.61
|
|
|
|
245,700
|
|
4,380
|
|
(f)
|
3.59
|
|
(f)
|
||||
Securities
|
351,037
|
|
4,839
|
|
|
2.78
|
|
(e)
|
|
363,864
|
|
3,869
|
|
|
2.14
|
|
(e)
|
||||
Loans
|
733,982
|
|
16,164
|
|
|
4.44
|
|
|
|
726,318
|
|
16,935
|
|
|
4.70
|
|
|
||||
Other assets
(b)
|
41,472
|
|
334
|
|
|
1.62
|
|
|
|
41,471
|
|
227
|
|
|
1.10
|
|
|
||||
Total interest-earning assets
|
2,014,846
|
|
26,124
|
|
|
2.61
|
|
|
|
1,938,508
|
|
26,764
|
|
(f)
|
2.78
|
|
(f)
|
||||
Allowance for loan losses
|
(15,948
|
)
|
|
|
|
|
|
(21,315
|
)
|
|
|
|
|
||||||||
Cash and due from banks
|
27,014
|
|
|
|
|
|
|
43,246
|
|
|
|
|
|
||||||||
Trading assets – equity instruments
|
116,878
|
|
|
|
|
|
|
118,252
|
|
|
|
|
|
||||||||
Trading assets – derivative receivables
|
62,814
|
|
|
|
|
|
|
75,115
|
|
|
|
|
|
||||||||
Goodwill
|
48,069
|
|
|
|
|
|
|
48,123
|
|
|
|
|
|
||||||||
Other intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage servicing rights
|
8,760
|
|
|
|
|
|
|
8,188
|
|
|
|
|
|
||||||||
Purchased credit card relationships
|
86
|
|
|
|
|
|
|
253
|
|
|
|
|
|
||||||||
Other intangibles
|
1,397
|
|
|
|
|
|
|
1,840
|
|
|
|
|
|
||||||||
Other assets
|
147,804
|
|
|
|
|
|
|
149,005
|
|
|
|
|
|
||||||||
Total assets
|
$
|
2,411,720
|
|
|
|
|
|
|
$
|
2,361,215
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits
|
$
|
864,952
|
|
$
|
843
|
|
|
0.20
|
%
|
|
|
$
|
799,045
|
|
$
|
1,084
|
|
|
0.27
|
%
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
206,769
|
|
322
|
|
|
0.31
|
|
|
|
257,571
|
|
326
|
|
|
0.25
|
|
|
||||
Commercial paper
|
59,224
|
|
67
|
|
|
0.23
|
|
|
|
53,741
|
|
55
|
|
|
0.21
|
|
|
||||
Trading liabilities – debt, short-term and other liabilities
(c)
|
217,922
|
|
494
|
|
|
0.46
|
|
|
|
193,293
|
|
519
|
|
(f)
|
0.54
|
|
(f)
|
||||
Beneficial interests issued by consolidated VIEs
|
48,228
|
|
210
|
|
|
0.88
|
|
|
|
58,531
|
|
260
|
|
|
0.90
|
|
|
||||
Long-term debt
|
270,303
|
|
2,253
|
|
|
1.68
|
|
|
|
262,606
|
|
2,556
|
|
|
1.96
|
|
|
||||
Total interest-bearing liabilities
|
1,667,398
|
|
4,189
|
|
|
0.51
|
|
|
|
1,624,787
|
|
4,800
|
|
(f)
|
0.60
|
|
(f)
|
||||
Noninterest-bearing deposits
|
379,187
|
|
|
|
|
|
|
359,746
|
|
|
|
|
|
||||||||
Trading liabilities – equity instruments
|
15,966
|
|
|
|
|
|
|
13,471
|
|
|
|
|
|
||||||||
Trading liabilities – derivative payables
|
51,305
|
|
|
|
|
|
|
67,458
|
|
|
|
|
|
||||||||
All other liabilities, including the allowance for lending-related commitments
|
79,209
|
|
|
|
|
|
|
89,382
|
|
|
|
|
|
||||||||
Total liabilities
|
2,193,065
|
|
|
|
|
|
|
2,154,844
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock
|
14,666
|
|
|
|
|
|
|
10,355
|
|
|
|
|
|
||||||||
Common stockholders’ equity
|
203,989
|
|
|
|
|
|
|
196,016
|
|
|
|
|
|
||||||||
Total stockholders’ equity
|
218,655
|
|
|
|
|
|
|
206,371
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
2,411,720
|
|
|
|
|
|
|
$
|
2,361,215
|
|
|
|
|
|
||||||
Interest rate spread
|
|
|
|
2.10
|
%
|
|
|
|
|
|
2.18
|
%
|
|
||||||||
Net interest income and net yield on interest-earning assets
|
|
$
|
21,935
|
|
|
2.20
|
|
|
|
|
$
|
21,964
|
|
|
2.28
|
|
|
(a)
|
Negative interest income and yield 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 trading liabilities - debt, short-term and other liabilities.
|
(b)
|
Includes margin loans.
|
(c)
|
Includes brokerage customer payables.
|
(d)
|
Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.
|
(e)
|
For the six months ended June 30, 2014 and 2013, the annualized rates for Securities, based on amortized cost, were 2.83% and 2.20%, respectively; this does not give effect to changes in fair value that are reflected in accumulated other comprehensive income/(loss).
|
(f)
|
Effective January 1, 2014, prior period amounts have been reclassified to conform with the current period presentation.
|
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.
|
Six months ended June 30, 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)
|
|||||||
First quarter
|
|
6,733,494
|
|
|
$
|
57.31
|
|
|
$
|
386
|
|
|
$
|
8,258
|
|
April
|
|
1,987,971
|
|
|
57.33
|
|
|
114
|
|
|
8,144
|
|
|||
May
|
|
12,470,413
|
|
|
54.11
|
|
|
675
|
|
|
7,469
|
|
|||
June
|
|
10,310,877
|
|
|
56.90
|
|
|
586
|
|
|
6,883
|
|
|||
Second quarter
|
|
24,769,261
|
|
|
55.53
|
|
|
1,375
|
|
|
6,883
|
|
|||
Year-to-date
|
|
31,502,755
|
|
|
$
|
55.91
|
|
|
$
|
1,761
|
|
|
$
|
6,883
|
|
(a)
|
Excludes commissions cost.
|
(b)
|
The amount authorized by the Board of Directors excludes commissions cost.
|
Six months ended
June 30, 2014 |
Total shares of common stock
repurchased
|
|
Average price
paid per share of common stock
|
|||
First quarter
|
1,245
|
|
|
$
|
57.99
|
|
Second quarter
|
—
|
|
|
—
|
|
|
Year-to-date
|
1,245
|
|
|
$
|
57.99
|
|
|
10.1
|
Terms and Conditions of Fixed Allowance (UK)
(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
June 30, 2014
, formatted in XBRL (eXtensible Business Reporting Language) interactive data files: (i) the Consolidated statements of income (unaudited) for the three and six months ended
June 30, 2014
and
2013
, (ii) the Consolidated statements of comprehensive income (unaudited) for the three and six months ended
June 30, 2014
and
2013
, (iii) the Consolidated balance sheets (unaudited) as of
June 30, 2014
, and
December 31, 2013
, (iv) the Consolidated statements of changes in stockholders’ equity (unaudited) for the
six months ended
June 30, 2014
and
2013
, (v) the Consolidated statements of cash flows (unaudited) for the
six months ended
June 30, 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:
|
August 4, 2014
|
Exhibit No.
|
|
Description of Exhibit
|
|
|
|
10.1
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Terms and Conditions of Fixed Allowance (UK)
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15
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Letter re: Unaudited Interim Financial Information
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31.1
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Certification
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31.2
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Certification
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32
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Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002†
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101.INS
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XBRL Instance Document
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101.SCH
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XBRL Taxonomy Extension Schema Document
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document
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†
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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.
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1.1
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With effect from 1 January 2014 or, if later, the date your employment with the Company or assignment to the UK commenced, you are eligible to receive a fixed allowance (the
Allowance
) subject to the payment terms set out below. The annual amount of the Allowance has been communicated to you separately.
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1.2
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The Allowance will be payable in cash and subject to all applicable statutory deductions, including income tax and social security contributions (and, if you are on an expatriate assignment, any applicable hypothetical tax deductions). The Company may also decide in its absolute discretion at any time to pay all or part of the Allowance other than in cash, for example in the common stock of JPMorgan Chase & Co and/or impose additional time vesting requirements on any such stock.
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1.3
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The Allowance will be payable in two (2) equal instalments (each an
Instalment
)
in the next available payroll after the end of the second quarter (in respect of the period from 1 January to 30 June) and fourth quarter (in respect of the period from 1 July to 31 December) of the Company’s financial year (each a
Payment Period
). In the case of any Instalment due to you in respect of the Payment Period from 1 January 2014 to 30 June 2014, this shall be payable in the August 2014 payroll or, if later, the next available payroll after you confirm your acceptance of these terms and conditions in the format required by the Company.
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1.4
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In order to be eligible for and to receive an Instalment of the Allowance you must be in employment on the last day of the Payment Period (the
Relevant Date
). You will not be eligible to receive any part of an Instalment if, on or before the Relevant Date for that Instalment, your employment has been terminated (with or without notice) by you or by the Company. If you are under notice of termination of your employment on a Relevant Date (whether the notice was given or received) the Instalment will be pro-rated to reflect the period for which you worked prior to the date notice was given or received as a proportion of the total period to which the Instalment relates.
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1.5
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The Company has the express right to suspend eligibility to and payment of any Instalment in the event that you are the subject of a disciplinary investigation or procedure which, may lead to a formal disciplinary sanction, such suspension to last until a reasonable period following the conclusion of that investigation or procedure.
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1.6
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In the event that, following a disciplinary investigation or procedure of which you are the subject, your employment is terminated, the Company has the express right to determine that you will not be entitled to the payment of any Instalment that was suspended under 1.5 above.
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1.7
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The Company reserves the right to review from time to time the terms of the Allowance (including the quantum of the Allowance). In undertaking such a review, the Company would not take account of your personal performance but may take account of such other factors as it thinks fit including but not limited to:
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(a)
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changes in the Company’s regulatory obligations;
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(b)
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changes in the external labour market;
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(c)
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the Company’s compensation philosophy and business strategy;
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(d)
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any change in the size and/or scope of your role, responsibilities or experience including if you cease to be Identified Staff / Code Staff; and
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(e)
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you starting or ending an expatriate assignment.
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1.8
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Payment of the Allowance for any period does not guarantee the payment or level of the Allowance in any subsequent period and accordingly the Company may reduce or withdraw completely the Allowance following any review in accordance with these terms and conditions.
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1.9
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The Allowance shall not be taken into account for any other purpose, including sickness or severance pay, pension, life assurance cover, permanent health insurance or personal accident cover (in each case whether discretionary or otherwise) and any references to salary in any policy or other document shall not include the Allowance.
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1.10
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For the avoidance of doubt, the Allowance is part of your fixed compensation and paid in addition to your salary (or, if applicable, any Foreign Assignment Pay which you may receive if you are on expatriate assignment). The Allowance is not calculated, paid, referable to, nor will it be adjusted to reward your personal performance.
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1.11
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In the event of any conflict between the terms of your employment contract (and/or, if applicable, any assignment letter if you are on expatriate assignment) and these terms and conditions, these terms and conditions shall prevail.
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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:
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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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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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August 4, 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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August 4, 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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