For the quarterly period ended
|
Commission file
|
March 31, 2015
|
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)
|
|
|
x
Yes
|
o
No
|
x
Yes
|
o
No
|
Large accelerated filer
x
|
Accelerated filer
o
|
|
|
Non-accelerated filer
(Do not check if a smaller reporting company)
o
|
Smaller reporting company
o
|
o
Yes
|
x
No
|
|
|
Part I - Financial information
|
Page
|
||
Item 1
|
Consolidated Financial Statements – JPMorgan Chase & Co.:
|
|
|
|
Consolidated statements of income (unaudited) for the three months ended March 31, 2015, and 2014
|
74
|
|
|
Consolidated statements of comprehensive income (unaudited) for the three months ended March 31, 2015, and 2014
|
75
|
|
|
Consolidated balance sheets (unaudited) at March 31, 2015, and December 31, 2014
|
76
|
|
|
Consolidated statements of changes in stockholders’ equity (unaudited) for the three months ended March 31, 2015, and 2014
|
77
|
|
|
Consolidated statements of cash flows (unaudited) for the three months ended March 31, 2015, and 2014
|
78
|
|
|
Notes to Consolidated Financial Statements (unaudited)
|
79
|
|
|
Report of Independent Registered Public Accounting Firm
|
154
|
|
|
Consolidated Average Balance Sheets, Interest and Rates (unaudited) for the three months ended March 31, 2015, and 2014
|
155
|
|
|
Glossary of Terms and Line of Business Metrics
|
156
|
|
Item 2
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations:
|
|
|
|
Consolidated Financial Highlights
|
3
|
|
|
Introduction
|
4
|
|
|
Executive Overview
|
5
|
|
|
Consolidated Results of Operations
|
7
|
|
|
Consolidated Balance Sheets Analysis
|
9
|
|
|
Off-Balance Sheet Arrangements
|
11
|
|
|
Consolidated Cash Flows Analysis
|
12
|
|
|
Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures
|
13
|
|
|
Business Segment Results
|
15
|
|
|
Enterprise-Wide Risk Management
|
32
|
|
|
Credit Risk Management
|
33
|
|
|
Market Risk Management
|
49
|
|
|
Country Risk Management
|
53
|
|
|
Operational Risk Management
|
54
|
|
|
Capital Management
|
55
|
|
|
Liquidity Risk Management
|
64
|
|
|
Supervision and Regulation
|
68
|
|
|
Critical Accounting Estimates Used by the Firm
|
69
|
|
|
Accounting and Reporting Developments
|
72
|
|
|
Forward-Looking Statements
|
73
|
|
Item 3
|
Quantitative and Qualitative Disclosures About Market Risk
|
163
|
|
Item 4
|
Controls and Procedures
|
163
|
|
Part II - Other information
|
|
||
Item 1
|
Legal Proceedings
|
163
|
|
Item 1A
|
Risk Factors
|
163
|
|
Item 2
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
163
|
|
Item 3
|
Defaults Upon Senior Securities
|
164
|
|
Item 4
|
Mine Safety Disclosure
|
164
|
|
Item 5
|
Other Information
|
164
|
|
Item 6
|
Exhibits
|
164
|
(unaudited)
As of or for the period ended,
|
|
|
|
|
|
|||||||||||
(in millions, except per share, ratio, headcount data and where
otherwise noted)
|
1Q15
|
|
4Q14
|
|
3Q14
|
|
2Q14
|
|
1Q14
|
|
||||||
Selected income statement data
|
|
|
|
|
|
|||||||||||
Total net revenue
|
$
|
24,066
|
|
$
|
22,750
|
|
$
|
24,469
|
|
$
|
24,678
|
|
$
|
23,215
|
|
|
Total noninterest expense
|
14,883
|
|
15,409
|
|
15,798
|
|
15,431
|
|
14,636
|
|
||||||
Pre-provision profit
|
9,183
|
|
7,341
|
|
8,671
|
|
9,247
|
|
8,579
|
|
||||||
Provision for credit losses
|
959
|
|
840
|
|
757
|
|
692
|
|
850
|
|
||||||
Income before income tax expense
|
8,224
|
|
6,501
|
|
7,914
|
|
8,555
|
|
7,729
|
|
||||||
Income tax expense
|
2,310
|
|
1,570
|
|
2,349
|
|
2,575
|
|
2,460
|
|
||||||
Net income
|
$
|
5,914
|
|
$
|
4,931
|
|
$
|
5,565
|
|
$
|
5,980
|
|
$
|
5,269
|
|
|
Earnings per share data
|
|
|
|
|
|
|||||||||||
Net income:
|
Basic
|
$
|
1.46
|
|
$
|
1.20
|
|
$
|
1.37
|
|
$
|
1.47
|
|
$
|
1.29
|
|
|
Diluted
|
1.45
|
|
1.19
|
|
1.35
|
|
1.46
|
|
1.28
|
|
|||||
Average shares:
|
Basic
|
3,725.3
|
|
3,730.9
|
|
3,755.4
|
|
3,780.6
|
|
3,787.2
|
|
|||||
|
Diluted
|
3,757.5
|
|
3,765.2
|
|
3,788.7
|
|
3,812.5
|
|
3,823.6
|
|
|||||
Market and per common share data
|
|
|
|
|
|
|||||||||||
Market capitalization
|
224,818
|
|
232,472
|
|
225,188
|
|
216,725
|
|
229,770
|
|
||||||
Common shares at period-end
|
3,711.1
|
|
3,714.8
|
|
3,738.2
|
|
3,761.3
|
|
3,784.7
|
|
||||||
Share price
(a)
:
|
|
|
|
|
|
|||||||||||
High
|
$
|
62.96
|
|
$
|
63.49
|
|
$
|
61.85
|
|
$
|
61.29
|
|
$
|
61.48
|
|
|
Low
|
54.27
|
|
54.26
|
|
54.96
|
|
52.97
|
|
54.20
|
|
||||||
Close
|
60.58
|
|
62.58
|
|
60.24
|
|
57.62
|
|
60.71
|
|
||||||
Book value per share
|
57.77
|
|
56.98
|
|
56.41
|
|
55.44
|
|
53.97
|
|
||||||
Tangible book value per share (“TBVPS”)
(b)
|
45.45
|
|
44.60
|
|
44.04
|
|
43.08
|
|
41.65
|
|
||||||
Cash dividends declared per share
|
0.40
|
|
0.40
|
|
0.40
|
|
0.40
|
|
0.38
|
|
||||||
Selected ratios and metrics
|
|
|
|
|
|
|||||||||||
Return on common equity (“ROE”)
|
11
|
%
|
9
|
%
|
10
|
%
|
11
|
%
|
10
|
%
|
||||||
Return on tangible common equity (“ROTCE”)
(b)
|
14
|
|
11
|
|
13
|
|
14
|
|
13
|
|
||||||
Return on assets (“ROA”)
|
0.94
|
|
0.78
|
|
0.90
|
|
0.99
|
|
0.89
|
|
||||||
Overhead ratio
|
62
|
|
68
|
|
65
|
|
63
|
|
63
|
|
||||||
Loans-to-deposits ratio
|
56
|
|
56
|
|
56
|
|
57
|
|
57
|
|
||||||
High quality liquid assets (“HQLA”) (in billions)
(c)
|
$
|
614
|
|
$
|
600
|
|
$
|
572
|
|
$
|
576
|
|
$
|
538
|
|
|
Common equity Tier 1 (“CET1”) capital ratio
(d)
|
10.7
|
%
|
10.2
|
%
|
10.2
|
%
|
9.8
|
%
|
10.9
|
%
|
||||||
Tier 1 capital ratio
(d)
|
12.1
|
|
11.6
|
|
11.5
|
|
11.0
|
|
12.0
|
|
||||||
Total capital ratio
(d)
|
13.7
|
|
13.1
|
|
12.8
|
|
12.5
|
|
14.5
|
|
||||||
Tier 1 leverage ratio
(d)
|
7.5
|
|
7.6
|
|
7.6
|
|
7.6
|
|
7.3
|
|
||||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|||||||||||
Trading assets
|
$
|
398,981
|
|
$
|
398,988
|
|
$
|
410,657
|
|
$
|
392,543
|
|
$
|
375,204
|
|
|
Securities
(e)
|
331,136
|
|
348,004
|
|
366,358
|
|
361,918
|
|
351,850
|
|
||||||
Loans
|
764,185
|
|
757,336
|
|
743,257
|
|
746,983
|
|
730,971
|
|
||||||
Total assets
|
2,577,148
|
|
2,572,773
|
|
2,526,655
|
|
2,519,995
|
|
2,476,650
|
|
||||||
Deposits
|
1,367,887
|
|
1,363,427
|
|
1,334,534
|
|
1,319,751
|
|
1,282,705
|
|
||||||
Long-term debt
(f)
|
280,608
|
|
276,836
|
|
268,721
|
|
269,929
|
|
274,512
|
|
||||||
Common stockholders’ equity
|
214,371
|
|
211,664
|
|
210,876
|
|
208,520
|
|
204,246
|
|
||||||
Total stockholders’ equity
|
235,864
|
|
231,727
|
|
230,939
|
|
226,983
|
|
219,329
|
|
||||||
Headcount
|
241,145
|
|
241,359
|
|
242,388
|
|
245,192
|
|
246,994
|
|
||||||
Credit quality metrics
|
|
|
|
|
|
|||||||||||
Allowance for credit losses
|
$
|
14,658
|
|
$
|
14,807
|
|
$
|
15,526
|
|
$
|
15,974
|
|
$
|
16,485
|
|
|
Allowance for loan losses to total retained loans
|
1.86
|
%
|
1.90
|
%
|
2.02
|
%
|
2.08
|
%
|
2.20
|
%
|
||||||
Allowance for loan losses to retained loans excluding purchased credit-impaired loans
(g)
|
1.52
|
|
1.55
|
|
1.63
|
|
1.69
|
|
1.75
|
|
||||||
Nonperforming assets
|
$
|
7,714
|
|
$
|
7,967
|
|
$
|
8,390
|
|
$
|
9,017
|
|
$
|
9,473
|
|
|
Net charge-offs
|
1,052
|
|
1,218
|
|
1,114
|
|
1,158
|
|
1,269
|
|
||||||
Net charge-off rate
|
0.57
|
%
|
0.65
|
%
|
0.60
|
%
|
0.64
|
%
|
0.71
|
%
|
(a)
|
Share prices shown for JPMorgan Chase’s common stock are from the New York Stock Exchange.
|
(b)
|
TBVPS and ROTCE are non-GAAP financial measures. TBVPS represents the Firm’s tangible common equity divided by common shares at period-end. 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 13–14
.
|
(c)
|
HQLA represents the Firm’s estimate of the amount of assets that qualify for inclusion in the liquidity coverage ratio under the final U.S. rule (“U.S. LCR”) for 1Q15, 4Q14, and 3Q14, and in the Basel III Liquidity Coverage Ratio (“Basel III LCR”) for 2Q14 and 1Q14; for additional information, see HQLA on
page 64
.
|
(d)
|
As of March 31, 2015, December 31, 2014, September 30, 2014, and June 30, 2014, the ratios presented are calculated under Basel III Advanced Transitional. As of March 31, 2014, the ratios presented are calculated under Basel III Standardized Transitional. See Regulatory capital on
pages 55–61
for additional information on Basel III.
|
(e)
|
Included held-to-maturity (“HTM”) securities of $49.3, billion, $49.3 billion, $48.8 billion, $47.8 billion and $47.3 billion at March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively.
|
(f)
|
Included unsecured long-term debt of $209.5 billion, $207.5 billion, $204.7 billion, $205.6 billion and $206.1 billion at March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively.
|
(g)
|
Excludes the impact of residential real estate PCI loans. For further discussion, see Allowance for credit losses on
pages 46–48
.
|
INTRODUCTION
|
EXECUTIVE OVERVIEW
|
Financial performance of JPMorgan Chase
|
|
|
||||||||
(unaudited)
As of or for the period ended,
|
Three months ended March 31,
|
|||||||||
(in millions, except per share data and ratios)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Selected income statement data
|
|
|
|
|
|
|||||
Total net revenue
|
$
|
24,066
|
|
|
$
|
23,215
|
|
|
4
|
%
|
Total noninterest expense
|
14,883
|
|
|
14,636
|
|
|
2
|
|
||
Pre-provision profit
|
9,183
|
|
|
8,579
|
|
|
7
|
|
||
Provision for credit losses
|
959
|
|
|
850
|
|
|
13
|
|
||
Net income
|
5,914
|
|
|
5,269
|
|
|
12
|
|
||
Diluted earnings per share
|
$
|
1.45
|
|
|
$
|
1.28
|
|
|
13
|
|
Return on common equity
|
11
|
%
|
|
10
|
%
|
|
|
|||
Capital ratios
(a)
|
|
|
|
|
|
|||||
CET1
|
10.7
|
|
|
10.9
|
|
|
|
|||
Tier 1 capital
|
12.1
|
|
|
12.0
|
|
|
|
(a)
|
As of March 31, 2015, the ratios presented are calculated under Basel III Advanced Transitional, and as of March 31, 2014, the ratios presented are calculated under Basel III Standardized Transitional. See Regulatory capital on
pages 55–61
for additional information on Basel III.
|
CONSOLIDATED RESULTS OF OPERATIONS
|
Revenue
|
|
|
|
|
|
||||
|
Three months ended March 31,
|
||||||||
(in millions)
|
2015
|
|
|
2014
|
|
|
Change
|
||
Investment banking fees
|
$
|
1,794
|
|
|
$
|
1,420
|
|
|
26%
|
Principal transactions
|
3,655
|
|
|
3,322
|
|
|
10
|
||
Lending- and deposit-related fees
|
1,363
|
|
|
1,405
|
|
|
(3)
|
||
Asset management, administration and commissions
|
3,807
|
|
|
3,836
|
|
|
(1)
|
||
Securities gains
|
52
|
|
|
30
|
|
|
73
|
||
Mortgage fees and related income
|
705
|
|
|
514
|
|
|
37
|
||
Card income
|
1,431
|
|
|
1,408
|
|
|
2
|
||
Other income
(a)
|
582
|
|
|
613
|
|
|
(5)
|
||
Noninterest revenue
|
13,389
|
|
|
12,548
|
|
|
7
|
||
Net interest income
|
10,677
|
|
|
10,667
|
|
|
—
|
||
Total net revenue
|
$
|
24,066
|
|
|
$
|
23,215
|
|
|
4%
|
(a)
|
Included operating lease income of
$469 million
and
$398 million
for the three months ended March 31, 2015 and 2014, respectively.
|
Provision for credit losses
|
|
|
|
|
|||||
|
Three months ended March 31,
|
||||||||
(in millions)
|
2015
|
|
|
2014
|
|
|
Change
|
||
Consumer, excluding credit card
|
$
|
142
|
|
|
$
|
119
|
|
|
19%
|
Credit card
|
789
|
|
|
688
|
|
|
15
|
||
Total consumer
|
931
|
|
|
807
|
|
|
15
|
||
Wholesale
|
28
|
|
|
43
|
|
|
(35)
|
||
Total provision for credit losses
|
$
|
959
|
|
|
$
|
850
|
|
|
13
|
Noninterest expense
|
|
|
|
|
|||||
|
Three months ended March 31,
|
||||||||
(in millions)
|
2015
|
|
|
2014
|
|
|
Change
|
||
Compensation expense
|
$
|
8,043
|
|
|
$
|
7,859
|
|
|
2%
|
Noncompensation expense:
|
|
|
|
|
|
||||
Occupancy
|
933
|
|
|
952
|
|
|
(2)
|
||
Technology, communications and equipment
|
1,491
|
|
|
1,411
|
|
|
6
|
||
Professional and outside services
|
1,634
|
|
|
1,786
|
|
|
(9)
|
||
Marketing
|
591
|
|
|
564
|
|
|
5
|
||
Other expense
(a)(b)
|
2,191
|
|
|
2,064
|
|
|
6
|
||
Total noncompensation expense
|
6,840
|
|
|
6,777
|
|
|
1
|
||
Total noninterest expense
|
$
|
14,883
|
|
|
$
|
14,636
|
|
|
2%
|
(a)
|
Included firmwide legal expense of
$687 million
for the three months ended
March 31, 2015
; legal expense for the three months ended March 31, 2014 was not material.
|
(b)
|
Included Federal Deposit Insurance Corporation-related (“FDIC”) expense of
$318 million
and
$293 million
for the three months ended
March 31, 2015
and
2014
, respectively.
|
Income tax expense
|
|
||||||||
(in millions, except rate)
|
Three months ended March 31,
|
||||||||
2015
|
|
|
2014
|
|
|
Change
|
|||
Income before income tax expense
|
$
|
8,224
|
|
|
$
|
7,729
|
|
|
6%
|
Income tax expense
|
2,310
|
|
|
2,460
|
|
|
(6)
|
||
Effective tax rate
|
28.1
|
%
|
|
31.8
|
%
|
|
|
CONSOLIDATED BALANCE SHEETS ANALYSIS
|
Selected Consolidated Balance Sheets data
|
|
||||||||
(in millions)
|
Mar 31,
2015 |
|
Dec 31,
2014 |
Change
|
|||||
Assets
|
|
|
|
|
|||||
Cash and due from banks
|
$
|
22,821
|
|
|
$
|
27,831
|
|
(18
|
)%
|
Deposits with banks
|
506,383
|
|
|
484,477
|
|
5
|
|
||
Federal funds sold and securities purchased under resale agreements
|
219,344
|
|
|
215,803
|
|
2
|
|
||
Securities borrowed
|
108,376
|
|
|
110,435
|
|
(2
|
)
|
||
Trading assets:
|
|
|
|
|
|||||
Debt and equity instruments
|
317,407
|
|
|
320,013
|
|
(1
|
)
|
||
Derivative receivables
|
81,574
|
|
|
78,975
|
|
3
|
|
||
Securities
|
331,136
|
|
|
348,004
|
|
(5
|
)
|
||
Loans
|
764,185
|
|
|
757,336
|
|
1
|
|
||
Allowance for loan losses
|
(14,065
|
)
|
|
(14,185
|
)
|
(1
|
)
|
||
Loans, net of allowance for loan losses
|
750,120
|
|
|
743,151
|
|
1
|
|
||
Accrued interest and accounts receivable
|
70,006
|
|
|
70,079
|
|
—
|
|
||
Premises and equipment
|
14,963
|
|
|
15,133
|
|
(1
|
)
|
||
Goodwill
|
47,453
|
|
|
47,647
|
|
—
|
|
||
Mortgage servicing rights
|
6,641
|
|
|
7,436
|
|
(11
|
)
|
||
Other intangible assets
|
1,128
|
|
|
1,192
|
|
(5
|
)
|
||
Other assets
|
99,796
|
|
|
102,597
|
|
(3
|
)
|
||
Total assets
|
$
|
2,577,148
|
|
|
$
|
2,572,773
|
|
—
|
|
Liabilities
|
|
|
|
|
|||||
Deposits
|
$
|
1,367,887
|
|
|
$
|
1,363,427
|
|
—
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
196,578
|
|
|
192,101
|
|
2
|
|
||
Commercial paper
|
55,655
|
|
|
66,344
|
|
(16
|
)
|
||
Other borrowed funds
|
29,035
|
|
|
30,222
|
|
(4
|
)
|
||
Trading liabilities:
|
|
|
|
|
|
||||
Debt and equity instruments
|
84,437
|
|
|
81,699
|
|
3
|
|
||
Derivative payables
|
73,836
|
|
|
71,116
|
|
4
|
|
||
Accounts payable and other liabilities
|
202,157
|
|
|
206,939
|
|
(2
|
)
|
||
Beneficial interests issued by consolidated VIEs
|
51,091
|
|
|
52,362
|
|
(2
|
)
|
||
Long-term debt
|
280,608
|
|
|
276,836
|
|
1
|
|
||
Total liabilities
|
2,341,284
|
|
|
2,341,046
|
|
—
|
|
||
Stockholders’ equity
|
235,864
|
|
|
231,727
|
|
2
|
|
||
Total liabilities and stockholders’ equity
|
$
|
2,577,148
|
|
|
$
|
2,572,773
|
|
—
|
%
|
OFF-BALANCE SHEET ARRANGEMENTS
|
CONSOLIDATED CASH FLOWS ANALYSIS
|
(in millions)
|
|
Three months ended March 31,
|
||||||
|
2015
|
|
|
2014
|
|
|||
Net cash provided by/(used in)
|
|
|
|
|
||||
Operating activities
|
|
$
|
14,879
|
|
|
$
|
14,667
|
|
Investing activities
|
|
(24,150
|
)
|
|
(68,410
|
)
|
||
Financing activities
|
|
4,337
|
|
|
40,318
|
|
||
Effect of exchange rate changes on cash
|
|
(76
|
)
|
|
(25
|
)
|
||
Net decrease in cash and due from banks
|
|
$
|
(5,010
|
)
|
|
$
|
(13,450
|
)
|
EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES
|
|
Three months ended March 31,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
(in millions, except ratios)
|
Reported
results
|
|
Fully taxable-equivalent adjustments
(a)
|
|
Managed
basis
|
|
Reported
results
|
|
Fully taxable-equivalent adjustments
(a)
|
|
Managed
basis
|
||||||||||||
Other income
|
$
|
582
|
|
|
$
|
481
|
|
|
$
|
1,063
|
|
|
$
|
613
|
|
|
$
|
412
|
|
|
$
|
1,025
|
|
Total noninterest revenue
|
13,389
|
|
|
481
|
|
|
13,870
|
|
|
12,548
|
|
|
412
|
|
|
12,960
|
|
||||||
Net interest income
|
10,677
|
|
|
273
|
|
|
10,950
|
|
|
10,667
|
|
|
226
|
|
|
10,893
|
|
||||||
Total net revenue
|
24,066
|
|
|
754
|
|
|
24,820
|
|
|
23,215
|
|
|
638
|
|
|
23,853
|
|
||||||
Pre-provision profit
|
9,183
|
|
|
754
|
|
|
9,937
|
|
|
8,579
|
|
|
638
|
|
|
9,217
|
|
||||||
Income before income tax expense
|
8,224
|
|
|
754
|
|
|
8,978
|
|
|
7,729
|
|
|
638
|
|
|
8,367
|
|
||||||
Income tax expense
|
$
|
2,310
|
|
|
$
|
754
|
|
|
$
|
3,064
|
|
|
$
|
2,460
|
|
|
$
|
638
|
|
|
$
|
3,098
|
|
Overhead ratio
|
62
|
%
|
|
NM
|
|
|
60
|
%
|
|
63
|
%
|
|
NM
|
|
|
61
|
%
|
(a)
|
Predominantly recognized in CIB and CB business segments and Corporate.
|
Tangible common equity
|
|
|
|
|
|
||||||||
|
Period-end
|
|
Average
|
||||||||||
|
|
Three months ended
March 31,
|
|||||||||||
(in millions, except per share and ratio data)
|
Mar 31,
2015 |
Dec 31,
2014 |
|
||||||||||
|
2015
|
2014
|
|||||||||||
Common stockholders’ equity
|
$
|
214,371
|
|
$
|
211,664
|
|
|
$
|
212,352
|
|
$
|
201,797
|
|
Less: Goodwill
|
47,453
|
|
47,647
|
|
|
47,491
|
|
48,054
|
|
||||
Less: Certain identifiable intangible assets
|
1,128
|
|
1,192
|
|
|
1,162
|
|
1,548
|
|
||||
Add: Deferred tax liabilities
(a)
|
2,870
|
|
2,853
|
|
|
2,862
|
|
2,944
|
|
||||
Tangible common equity
|
$
|
168,660
|
|
$
|
165,678
|
|
|
$
|
166,561
|
|
$
|
155,139
|
|
|
|
|
|
|
|
||||||||
Return on tangible common equity
|
NA
|
|
NA
|
|
|
14
|
%
|
13
|
%
|
||||
Tangible book value per share
|
$
|
45.45
|
|
$
|
44.60
|
|
|
NA
|
|
NA
|
|
(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
|
|
|
|
||||||
|
Three months ended March 31,
|
||||||||
(in millions, except rates)
|
2015
|
|
2014
|
|
|
Change
|
|||
Net interest income – managed basis
(a)(b)
|
$
|
10,950
|
|
$
|
10,893
|
|
|
1
|
%
|
Less: Market-based net interest income
|
1,259
|
|
1,269
|
|
|
(1
|
)
|
||
Core net interest income
(a)
|
$
|
9,691
|
|
$
|
9,624
|
|
|
1
|
|
|
|
|
|
|
|||||
Average interest-earning assets
|
$
|
2,148,801
|
|
$
|
2,005,646
|
|
|
7
|
|
Less: Average market-based earning assets
|
509,714
|
|
507,499
|
|
|
—
|
|
||
Core average interest-earning assets
|
$
|
1,639,087
|
|
$
|
1,498,147
|
|
|
9
|
%
|
Net interest yield on interest-earning assets – managed basis
|
2.07
|
%
|
2.20
|
%
|
|
|
|||
Net interest yield on market-based
activities
|
1.00
|
|
1.01
|
|
|
|
|||
Core net interest yield on core average interest-earning assets
|
2.40
|
%
|
2.61
|
%
|
|
|
(a)
|
Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.
|
(b)
|
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
13
.
|
BUSINESS SEGMENT RESULTS
|
Three months ended March 31,
|
Total net revenue
|
|
Total Noninterest expense
|
|
Pre-provision profit/(loss)
|
|||||||||||||||||||||
(in millions)
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|||||||||
Consumer & Community Banking
|
$
|
10,704
|
|
$
|
10,534
|
|
2
|
%
|
|
$
|
6,190
|
|
$
|
6,437
|
|
(4
|
)%
|
|
$
|
4,514
|
|
$
|
4,097
|
|
10
|
%
|
Corporate & Investment Bank
|
9,582
|
|
8,842
|
|
8
|
|
|
5,657
|
|
5,604
|
|
1
|
|
|
3,925
|
|
3,238
|
|
21
|
|
||||||
Commercial Banking
|
1,742
|
|
1,678
|
|
4
|
|
|
709
|
|
686
|
|
3
|
|
|
1,033
|
|
992
|
|
4
|
|
||||||
Asset Management
|
3,005
|
|
2,800
|
|
7
|
|
|
2,175
|
|
2,075
|
|
5
|
|
|
830
|
|
725
|
|
14
|
|
||||||
Corporate
|
(213
|
)
|
(1
|
)
|
NM
|
|
152
|
|
(166
|
)
|
NM
|
|
(365
|
)
|
165
|
|
NM
|
|||||||||
Total
|
$
|
24,820
|
|
$
|
23,853
|
|
4
|
%
|
|
$
|
14,883
|
|
$
|
14,636
|
|
2
|
%
|
|
$
|
9,937
|
|
$
|
9,217
|
|
8
|
%
|
Three months ended March 31,
|
Provision for credit losses
|
|
Net income
|
|
Return on common equity
|
||||||||||||||||
(in millions, except ratios)
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
|||||
Consumer & Community Banking
|
$
|
930
|
|
$
|
816
|
|
14%
|
|
$
|
2,219
|
|
$
|
1,981
|
|
12
|
%
|
|
17
|
%
|
15
|
%
|
Corporate & Investment Bank
|
(31
|
)
|
49
|
|
NM
|
|
2,537
|
|
2,125
|
|
19
|
|
|
16
|
|
13
|
|
||||
Commercial Banking
|
61
|
|
5
|
|
NM
|
|
598
|
|
594
|
|
1
|
|
|
17
|
|
17
|
|
||||
Asset Management
|
4
|
|
(9
|
)
|
NM
|
|
502
|
|
454
|
|
11
|
|
|
22
|
|
20
|
|
||||
Corporate
|
(5
|
)
|
(11
|
)
|
55
|
|
58
|
|
115
|
|
(50
|
)
|
|
NM
|
NM
|
||||||
Total
|
$
|
959
|
|
$
|
850
|
|
13%
|
|
$
|
5,914
|
|
$
|
5,269
|
|
12
|
%
|
|
11
|
%
|
10
|
%
|
CONSUMER & COMMUNITY BANKING
|
Selected income statement data
|
|
|
|
|
||||||
|
Three months ended March 31,
|
|||||||||
(in millions, except ratios)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Revenue
|
|
|
|
|
|
|||||
Lending- and deposit-related fees
|
$
|
718
|
|
|
$
|
703
|
|
|
2
|
%
|
Asset management, administration and commissions
|
530
|
|
|
503
|
|
|
5
|
|
||
Mortgage fees and related income
|
704
|
|
|
514
|
|
|
37
|
|
||
Card income
|
1,324
|
|
|
1,348
|
|
|
(2
|
)
|
||
All other income
|
460
|
|
|
366
|
|
|
26
|
|
||
Noninterest revenue
|
3,736
|
|
|
3,434
|
|
|
9
|
|
||
Net interest income
|
6,968
|
|
|
7,100
|
|
|
(2
|
)
|
||
Total net revenue
|
10,704
|
|
|
10,534
|
|
|
2
|
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
930
|
|
|
816
|
|
|
14
|
|
||
|
|
|
|
|
|
|||||
Noninterest expense
|
|
|
|
|
|
|||||
Compensation expense
|
2,530
|
|
|
2,739
|
|
|
(8
|
)
|
||
Noncompensation expense
|
3,660
|
|
|
3,698
|
|
|
(1
|
)
|
||
Total noninterest expense
|
6,190
|
|
|
6,437
|
|
|
(4
|
)
|
||
Income before income tax expense
|
3,584
|
|
|
3,281
|
|
|
9
|
|
||
Income tax expense
|
1,365
|
|
|
1,300
|
|
|
5
|
|
||
Net income
|
$
|
2,219
|
|
|
$
|
1,981
|
|
|
12
|
%
|
|
|
|
|
|
|
|||||
Financial ratios
|
|
|
|
|
|
|||||
Return on common equity
|
17
|
%
|
|
15
|
%
|
|
|
|||
Overhead ratio
|
58
|
|
|
61
|
|
|
|
Selected metrics
|
|
|
|
|
||||||
|
As of or for the three months
ended March 31, |
|||||||||
(in millions, except headcount)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|||||
Total assets
|
$
|
455,624
|
|
|
$
|
441,502
|
|
|
3
|
%
|
Trading assets – loans
(a)
|
6,756
|
|
|
6,869
|
|
|
(2
|
)
|
||
Loans:
|
|
|
|
|
|
|||||
Loans retained
|
398,314
|
|
|
386,314
|
|
|
3
|
|
||
Loans held-for-sale
(b)
|
2,720
|
|
|
542
|
|
|
402
|
|
||
Total loans
|
401,034
|
|
|
386,856
|
|
|
4
|
|
||
Deposits
|
531,027
|
|
|
487,674
|
|
|
9
|
|
||
Equity
(c)
|
51,000
|
|
|
51,000
|
|
|
—
|
|
||
Selected balance sheet data (average)
|
|
|
|
|
|
|||||
Total assets
|
$
|
454,763
|
|
|
$
|
450,424
|
|
|
1
|
|
Trading assets – loans
(a)
|
7,992
|
|
|
7,446
|
|
|
7
|
|
||
Loans:
|
|
|
|
|
|
|||||
Loans retained
|
395,084
|
|
|
388,678
|
|
|
2
|
|
||
Loans held-for-sale
(d)
|
2,984
|
|
|
656
|
|
|
355
|
|
||
Total loans
|
398,068
|
|
|
389,334
|
|
|
2
|
|
||
Deposits
|
512,157
|
|
|
471,581
|
|
|
9
|
|
||
Equity
(c)
|
51,000
|
|
|
51,000
|
|
|
—
|
|
||
|
|
|
|
|
|
|||||
Headcount
|
135,908
|
|
|
145,651
|
|
|
(7
|
)%
|
(a)
|
Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value.
|
(b)
|
Included period-end credit card loans held-for-sale of $2.4 billion and $304 million at
March 31, 2015, and 2014
, respectively.
|
(c)
|
2015 and 2014 includes $5.0 billion and $3.0 billion, respectively, of capital held at the CCB level related to legacy mortgage servicing matters.
|
(d)
|
Included average credit card loans held-for-sale of $2.7 billion and $315 million for the three months ended
March 31, 2015
and 2014, respectively.
|
Selected metrics
|
|
|
|
|
||||||
|
As of or for the three months
ended March 31, |
|||||||||
(in millions, except ratios and where otherwise noted)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Credit data and quality statistics
|
|
|
|
|
|
|||||
Net charge-offs
(a)
|
$
|
1,054
|
|
|
$
|
1,266
|
|
|
(17
|
)%
|
Nonaccrual loans
(b)(c)
|
6,143
|
|
|
7,301
|
|
|
(16
|
)
|
||
Nonperforming assets
(b)(c)
|
6,569
|
|
|
7,932
|
|
|
(17
|
)
|
||
Allowance for loan losses
(a)
|
10,219
|
|
|
11,686
|
|
|
(13
|
)
|
||
Net charge-off rate
(a)
|
1.08
|
%
|
|
1.32
|
%
|
|
|
|||
Net charge-off rate,
excluding PCI loans
|
1.22
|
|
|
1.53
|
|
|
|
|||
Allowance for loan losses to period-end loans retained
|
2.57
|
|
|
3.03
|
|
|
|
|||
Allowance for loan losses to period-end loans retained,
excluding PCI loans
(d)
|
1.97
|
|
|
2.27
|
|
|
|
|||
Allowance for loan losses to nonaccrual loans retained, excluding credit card
(b)(d)
|
57
|
|
|
55
|
|
|
|
|||
Nonaccrual loans to total period-end loans, excluding credit card
|
2.21
|
|
|
2.75
|
|
|
|
|||
Nonaccrual loans to total period-end loans, excluding credit card and PCI loans
(b)
|
2.64
|
|
|
3.42
|
|
|
|
|||
Business metrics
|
|
|
|
|
|
|||||
Number of:
|
|
|
|
|
|
|||||
Branches
|
5,570
|
|
|
5,632
|
|
|
(1
|
)
|
||
ATMs
|
18,298
|
|
|
20,370
|
|
|
(10
|
)
|
||
Active online customers (in thousands)
|
37,696
|
|
|
35,038
|
|
|
8
|
|
||
Active mobile customers (in thousands)
|
19,962
|
|
|
16,405
|
|
|
22
|
|
||
CCB households (in millions)
|
57.4
|
|
|
57.0
|
|
|
1
|
%
|
(a)
|
Net charge-offs and the net charge-off rates excluded $55 million and $61 million of write-offs in the PCI portfolio for the three months ended
March 31, 2015, and 2014
, respectively. These write-offs decreased the allowance for loan losses for PCI loans. For further information on PCI write-offs, see Allowance for Credit Losses on
pages 46–48
.
|
(b)
|
Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.
|
(c)
|
At March 31, 2015 and 2014, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.5 billion and $7.7 billion, respectively, that are 90 or more days past due; (2) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $346 million and $387 million, respectively, that are 90 or more days past due; (3) real estate owned (“REO”) insured by U.S. government agencies of $469 million and $618 million, respectively. These amounts have been excluded based upon the government guarantee.
|
(d)
|
The allowance for loan losses for PCI loans was $3.3 billion and $4.1 billion at March 31, 2015 and 2014, respectively; these amounts were also excluded from the applicable ratios.
|
Selected metrics
|
|
|
|
|
||||||
|
As of or for the three months
ended March 31, |
|||||||||
(in millions, except ratios and where otherwise noted)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Business metrics
|
|
|
|
|
|
|||||
Business banking origination volume
|
$
|
1,540
|
|
|
$
|
1,504
|
|
|
2
|
%
|
Period-end loans
|
21,608
|
|
|
19,589
|
|
|
10
|
|
||
Period-end deposits:
|
|
|
|
|
|
|||||
Checking
|
227,382
|
|
|
199,717
|
|
|
14
|
|
||
Savings
|
267,696
|
|
|
250,292
|
|
|
7
|
|
||
Time and other
|
20,329
|
|
|
25,092
|
|
|
(19
|
)
|
||
Total period-end deposits
|
515,407
|
|
|
475,101
|
|
|
8
|
|
||
Average loans
|
21,317
|
|
|
19,450
|
|
|
10
|
|
||
Average deposits:
|
|
|
|
|
|
|||||
Checking
|
216,312
|
|
|
189,487
|
|
|
14
|
|
||
Savings
|
260,461
|
|
|
243,500
|
|
|
7
|
|
||
Time and other
|
20,837
|
|
|
25,478
|
|
|
(18
|
)
|
||
Total average deposits
|
497,610
|
|
|
458,465
|
|
|
9
|
|
||
Deposit margin
|
1.99
|
%
|
|
2.27
|
%
|
|
|
|||
Average assets
|
$
|
41,774
|
|
|
$
|
38,121
|
|
|
10
|
|
Credit data and quality statistics
|
|
|
|
|
||||||
Net charge-offs
|
$
|
59
|
|
|
$
|
76
|
|
|
(22
|
)
|
Net charge-off rate
|
1.12
|
%
|
|
1.58
|
%
|
|
|
|||
Allowance for loan losses
|
$
|
703
|
|
|
$
|
707
|
|
|
(1
|
)
|
Nonperforming assets
|
274
|
|
|
365
|
|
|
(25
|
)
|
||
Retail branch business metrics
|
|
|
|
|
||||||
Net new investment assets
|
$
|
3,821
|
|
|
$
|
4,241
|
|
|
(10
|
)
|
Client investment assets
|
219,192
|
|
|
195,706
|
|
|
12
|
|
||
% managed accounts
|
40
|
%
|
|
37
|
%
|
|
|
|||
Number of:
|
|
|
|
|
|
|||||
Chase Private Client locations
|
2,573
|
|
|
2,244
|
|
|
15
|
|
||
Personal bankers
|
20,503
|
|
|
22,654
|
|
|
(9
|
)
|
||
Sales specialists
|
3,842
|
|
|
4,817
|
|
|
(20
|
)
|
||
Client advisors
|
3,065
|
|
|
3,062
|
|
|
—
|
|
||
Chase Private Clients
|
358,115
|
|
|
239,665
|
|
|
49
|
|
||
Accounts
(in thousands)
(a)
|
30,755
|
|
|
29,819
|
|
|
3
|
%
|
(a)
|
Includes checking accounts and Chase Liquid
®
cards.
|
Selected financial statement data
|
||||||||||
|
As of or for the three months
ended March 31, |
|||||||||
(in millions, except ratios)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Revenue
|
|
|
|
|
|
|||||
Mortgage fees and related income
(a)
|
$
|
704
|
|
|
$
|
514
|
|
|
37
|
%
|
All other income
|
(11
|
)
|
|
(3
|
)
|
|
(267
|
)
|
||
Noninterest revenue
|
693
|
|
|
511
|
|
|
36
|
|
||
Net interest income
|
1,056
|
|
|
1,087
|
|
|
(3
|
)
|
||
Total net revenue
|
1,749
|
|
|
1,598
|
|
|
9
|
|
||
Provision for credit losses
|
4
|
|
|
(23
|
)
|
|
NM
|
|||
Noninterest expense
|
1,219
|
|
|
1,403
|
|
|
(13
|
)
|
||
Income before income tax expense
|
526
|
|
|
218
|
|
|
141
|
|
||
Net income
|
$
|
326
|
|
|
$
|
132
|
|
|
147
|
|
|
|
|
|
|
|
|||||
Return on common equity
|
7
|
%
|
|
3
|
%
|
|
|
|||
Overhead ratio
|
70
|
|
|
88
|
|
|
|
|||
Equity (period-end and average)
|
$
|
16,000
|
|
|
$
|
18,000
|
|
|
(11
|
)%
|
(a)
|
For further information on mortgage fees and related income, see Note 16.
|
Supplemental information
|
|
|
|
|
||||||
|
For the three months
ended March 31, |
|||||||||
(in millions)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
|
|
|
|
|
|
|||||
Net interest income:
|
|
|
|
|
|
|||||
Mortgage Production and Mortgage Servicing
|
$
|
158
|
|
|
$
|
189
|
|
|
(16
|
)%
|
Real Estate Portfolios
|
898
|
|
|
898
|
|
|
—
|
|
||
Total net interest income
|
$
|
1,056
|
|
|
$
|
1,087
|
|
|
(3
|
)
|
|
|
|
|
|
|
|||||
Noninterest expense:
|
|
|
|
|
|
|||||
Mortgage Production
|
$
|
421
|
|
|
$
|
476
|
|
|
(12
|
)
|
Mortgage Servicing
|
582
|
|
|
581
|
|
|
—
|
|
||
Real Estate Portfolios
|
216
|
|
|
346
|
|
|
(38
|
)
|
||
Total noninterest expense
|
$
|
1,219
|
|
|
$
|
1,403
|
|
|
(13
|
)%
|
Selected balance sheet data
|
|
|
|
|
||||||
|
As of or for the three months
ended March 31, |
|||||||||
(in millions)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Trading assets – loans
(period-end)
(a)
|
$
|
6,756
|
|
|
$
|
6,869
|
|
|
(2
|
)%
|
Trading assets – loans (average)
(a)
|
7,992
|
|
|
7,446
|
|
|
7
|
|
||
|
|
|
|
|
|
|||||
Loans, excluding PCI loans
|
|
|
|
|
||||||
Period-end loans owned
|
|
|
|
|
|
|||||
Home equity
|
49,067
|
|
|
56,131
|
|
|
(13
|
)
|
||
Prime mortgage, including option ARMs
|
91,956
|
|
|
67,048
|
|
|
37
|
|
||
Subprime mortgage
|
4,828
|
|
|
6,869
|
|
|
(30
|
)
|
||
Other
|
454
|
|
|
529
|
|
|
(14
|
)
|
||
Total period-end loans owned
|
146,305
|
|
|
130,577
|
|
|
12
|
|
||
Average loans owned
|
|
|
|
|
|
|||||
Home equity
|
50,007
|
|
|
57,015
|
|
|
(12
|
)
|
||
Prime mortgage, including option ARMs
|
86,111
|
|
|
66,467
|
|
|
30
|
|
||
Subprime mortgage
|
4,968
|
|
|
7,007
|
|
|
(29
|
)
|
||
Other
|
466
|
|
|
540
|
|
|
(14
|
)
|
||
Total average loans owned
|
141,552
|
|
|
131,029
|
|
|
8
|
|
||
|
|
|
|
|
|
|||||
PCI loans
|
|
|
|
|
|
|||||
Period-end loans owned
|
|
|
|
|
|
|||||
Home equity
|
16,638
|
|
|
18,525
|
|
|
(10
|
)
|
||
Prime mortgage
|
9,916
|
|
|
11,658
|
|
|
(15
|
)
|
||
Subprime mortgage
|
3,559
|
|
|
4,062
|
|
|
(12
|
)
|
||
Option ARMs
|
15,243
|
|
|
17,361
|
|
|
(12
|
)
|
||
Total period-end loans owned
|
45,356
|
|
|
51,606
|
|
|
(12
|
)
|
||
Average loans owned
|
|
|
|
|
|
|||||
Home equity
|
16,847
|
|
|
18,719
|
|
|
(10
|
)
|
||
Prime mortgage
|
10,063
|
|
|
11,870
|
|
|
(15
|
)
|
||
Subprime mortgage
|
3,604
|
|
|
4,128
|
|
|
(13
|
)
|
||
Option ARMs
|
15,446
|
|
|
17,687
|
|
|
(13
|
)
|
||
Total average loans owned
|
45,960
|
|
|
52,404
|
|
|
(12
|
)
|
||
|
|
|
|
|
|
|||||
Total Mortgage Banking
|
|
|
|
|
|
|||||
Period-end loans owned
|
|
|
|
|
|
|||||
Home equity
|
65,705
|
|
|
74,656
|
|
|
(12
|
)
|
||
Prime mortgage, including option ARMs
|
117,115
|
|
|
96,067
|
|
|
22
|
|
||
Subprime mortgage
|
8,387
|
|
|
10,931
|
|
|
(23
|
)
|
||
Other
|
454
|
|
|
529
|
|
|
(14
|
)
|
||
Total period-end loans owned
|
191,661
|
|
|
182,183
|
|
|
5
|
|
||
Average loans owned
|
|
|
|
|
|
|||||
Home equity
|
66,854
|
|
|
75,734
|
|
|
(12
|
)
|
||
Prime mortgage, including option ARMs
|
111,620
|
|
|
96,024
|
|
|
16
|
|
||
Subprime mortgage
|
8,572
|
|
|
11,135
|
|
|
(23
|
)
|
||
Other
|
466
|
|
|
540
|
|
|
(14
|
)
|
||
Total average loans owned
|
187,512
|
|
|
183,433
|
|
|
2
|
%
|
(a)
|
Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value.
|
(a)
|
Net charge-offs and the net charge-off rates excluded $55 million and $61 million, write-offs in the PCI portfolio for the three months ended
March 31, 2015
, and
2014
, respectively. These write-offs decreased the allowance for loan losses for PCI loans. For further information on PCI write-offs, see Allowance for Credit Losses on
pages 46–48
.
|
(b)
|
At March 31, 2015, and 2014, excluded mortgage loans insured by U.S. government agencies of $9.2 billion and $8.8 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.
|
(c)
|
The 30+ day delinquency rate for PCI loans was 12.25% and 14.34%, at March 31, 2015, and 2014, respectively.
|
(d)
|
At March 31, 2015, and 2014, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.5 billion and $7.7 billion, respectively, that are 90 or more days past due and (2) real estate owned (“REO”) insured by U.S. government agencies of $469 million and $618 million, respectively. These amounts have been excluded based upon the government guarantee.
|
(e)
|
Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.
|
Business metrics
|
||||||||||
|
As of or for the three months
ended March 31, |
|||||||||
(in billions, except ratios)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Mortgage origination volume by channel
|
|
|
|
|
|
|||||
Retail
|
$
|
8.1
|
|
|
$
|
6.7
|
|
|
21
|
%
|
Correspondent
|
16.6
|
|
|
10.3
|
|
|
61
|
|
||
Total mortgage origination volume
(a)
|
24.7
|
|
|
17.0
|
|
|
45
|
|
||
|
|
|
|
|
|
|||||
Total loans serviced (period-end)
|
924.3
|
|
|
998.1
|
|
|
(7
|
)
|
||
Third-party mortgage loans serviced (period-end)
|
723.5
|
|
|
803.1
|
|
|
(10
|
)
|
||
Third-party mortgage loans serviced (average)
|
737.5
|
|
|
809.3
|
|
|
(9
|
)
|
||
MSR carrying value (period-end)
|
6.6
|
|
|
8.5
|
|
|
(22
|
)%
|
||
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)
|
0.91
|
%
|
|
1.06
|
%
|
|
|
|||
Ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average)
|
0.36
|
|
|
0.37
|
|
|
|
|||
MSR revenue multiple
(b)
|
2.53
|
x
|
|
2.86
|
x
|
|
|
(a)
|
Firmwide mortgage origination volume was $26.6 billion and $18.2 billion for the three months ended
March 31, 2015
, and
2014
, respectively.
|
(b)
|
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).
|
Selected financial statement data
|
||||||||||
|
As of or for the three
months ended March 31 ,
|
|||||||||
(in millions, except ratios)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Revenue
|
|
|
|
|
|
|||||
Card income
|
$
|
920
|
|
|
$
|
972
|
|
|
(5
|
)%
|
All other income
|
374
|
|
|
279
|
|
|
34
|
|
||
Noninterest revenue
|
1,294
|
|
|
1,251
|
|
|
3
|
|
||
Net interest income
|
3,303
|
|
|
3,287
|
|
|
—
|
|
||
Total net revenue
|
4,597
|
|
|
4,538
|
|
|
1
|
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
866
|
|
|
763
|
|
|
13
|
|
||
|
|
|
|
|
|
|||||
Noninterest expense
(a)
|
2,013
|
|
|
1,969
|
|
|
2
|
|
||
Income before income tax expense
|
1,718
|
|
|
1,806
|
|
|
(5
|
)
|
||
Net income
|
$
|
1,065
|
|
|
$
|
1,098
|
|
|
(3
|
)
|
|
|
|
|
|
|
|||||
Return on common equity
|
22
|
%
|
|
23
|
%
|
|
|
|||
Overhead ratio
|
44
|
|
|
43
|
|
|
|
|||
Equity (period-end and average)
|
$
|
18,500
|
|
|
$
|
19,000
|
|
|
(3
|
)%
|
(a)
|
Included operating lease depreciation expense of $326 million, and $274 million as of March 31, 2015 and 2014, respectively.
|
Selected metrics
|
||||||||||
|
As of or for the three
months ended March 31,
|
|||||||||
(in millions, except ratios and where otherwise noted)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|||||
Loans:
|
|
|
|
|
|
|||||
Credit Card
|
$
|
123,257
|
|
|
$
|
121,816
|
|
|
1
|
%
|
Auto
|
55,455
|
|
|
52,952
|
|
|
5
|
|
||
Student
|
9,053
|
|
|
10,316
|
|
|
(12
|
)
|
||
Total loans
|
$
|
187,765
|
|
|
$
|
185,084
|
|
|
1
|
|
Selected balance sheet
data (average)
|
|
|
|
|
|
|||||
Total assets
|
$
|
203,925
|
|
|
$
|
201,771
|
|
|
1
|
|
Loans:
|
|
|
|
|
|
|||||
Credit Card
|
125,025
|
|
|
123,261
|
|
|
1
|
|
||
Auto
|
55,005
|
|
|
52,741
|
|
|
4
|
|
||
Student
|
9,209
|
|
|
10,449
|
|
|
(12
|
)
|
||
Total loans
|
$
|
189,239
|
|
|
$
|
186,451
|
|
|
1
|
|
Business metrics
|
|
|
|
|
|
|||||
Credit Card, excluding Commercial Card
|
|
|
|
|
|
|||||
Sales volume
(in billions)
|
$
|
112.8
|
|
|
$
|
104.5
|
|
|
8
|
|
New accounts opened
|
2.1
|
|
|
2.1
|
|
|
—
|
|
||
Open accounts
|
64.9
|
|
|
65.5
|
|
|
(1
|
)
|
||
Accounts with sales activity
|
32.5
|
|
|
31.0
|
|
|
5
|
|
||
% of accounts acquired online
|
62
|
%
|
|
51
|
%
|
|
|
|||
Commerce Solutions (Chase Paymentech Solutions)
|
|
|
|
|
|
|||||
Merchant processing volume (in billions)
|
$
|
221.2
|
|
|
$
|
195.4
|
|
|
13
|
|
Total transactions
(in billions)
|
9.8
|
|
|
9.1
|
|
|
8
|
|
||
Auto
|
|
|
|
|
|
|||||
Origination volume
(in billions)
|
$
|
7.3
|
|
|
$
|
6.7
|
|
|
9
|
%
|
Selected metrics
|
|||||||||||
|
|
As of or for the three
months ended March 31,
|
|||||||||
(in millions, except ratios)
|
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Credit data and quality statistics
|
|
|
|
|
|
|
|||||
Net charge-offs:
|
|
|
|
|
|
|
|||||
Credit Card
|
|
$
|
789
|
|
|
$
|
888
|
|
|
(11
|
)%
|
Auto
|
|
51
|
|
|
41
|
|
|
24
|
|
||
Student
|
|
51
|
|
|
84
|
|
|
(39
|
)
|
||
Total net charge-offs
|
|
$
|
891
|
|
|
$
|
1,013
|
|
|
(12
|
)
|
Net charge-off rate:
|
|
|
|
|
|
|
|||||
Credit Card
(a)
|
|
2.62
|
%
|
|
2.93
|
%
|
|
|
|||
Auto
|
|
0.38
|
|
|
0.32
|
|
|
|
|||
Student
|
|
2.25
|
|
|
3.26
|
|
|
|
|||
Total net charge-off rate
|
|
1.94
|
|
|
2.21
|
|
|
|
|||
Delinquency rates
|
|
|
|
|
|
|
|||||
30+ day delinquency rate:
|
|
|
|
|
|
|
|||||
Credit Card
(b)
|
|
1.41
|
|
|
1.61
|
|
|
|
|||
Auto
|
|
0.90
|
|
|
0.92
|
|
|
|
|||
Student
(c)
|
|
1.77
|
|
|
2.75
|
|
|
|
|||
Total 30+ day delinquency rate
|
|
1.27
|
|
|
1.47
|
|
|
|
|||
90+ day delinquency rate – Credit Card
(b)
|
|
0.73
|
|
|
0.80
|
|
|
|
|||
Nonperforming assets
(d)
|
|
$
|
385
|
|
|
$
|
271
|
|
|
42
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|||||
Credit Card
|
|
$
|
3,434
|
|
|
$
|
3,591
|
|
|
(4
|
)
|
Auto & Student
|
|
724
|
|
|
903
|
|
|
(20
|
)
|
||
Total allowance for loan losses
|
|
$
|
4,158
|
|
|
$
|
4,494
|
|
|
(7
|
)%
|
Allowance for loan losses to period-end loans:
|
|
|
|
|
|
|
|||||
Credit Card
(b)
|
|
2.84
|
%
|
|
2.96
|
%
|
|
|
|||
Auto & Student
|
|
1.12
|
|
|
1.43
|
|
|
|
|||
Total allowance for loan losses to period-end loans
|
|
2.24
|
|
|
2.43
|
|
|
|
(a)
|
Average credit card loans included loans held-for-sale of $2.7 billion and $315 million for the three months ended
March 31, 2015
and 2014, respectively. These amounts are excluded when calculating the net charge-off rate.
|
(b)
|
Period-end credit card loans included loans held-for-sale of $2.4 billion and $304 million at
March 31, 2015, and 2014
, respectively. These amounts were excluded when calculating delinquency rates and the allowance for loan losses to period-end loans.
|
(c)
|
Excluded student loans insured by U.S. government agencies under the FFELP of $596 million and $687 million at
March 31, 2015, and 2014
, 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 $346 million and $387 million at
March 31, 2015, and 2014
, respectively, that are 90 or more days past due. These amounts have been excluded from nonaccrual loans based upon the government guarantee.
|
CORPORATE & INVESTMENT BANK
|
Selected income statement data
|
|
|
||||||||
|
Three months ended March 31,
|
|||||||||
(in millions, except ratios)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Revenue
|
|
|
|
|
|
|||||
Investment banking fees
|
$
|
1,761
|
|
|
$
|
1,444
|
|
|
22
|
%
|
Principal transactions
(a)
|
3,482
|
|
|
2,886
|
|
|
21
|
|
||
Lending- and deposit-related fees
|
397
|
|
|
444
|
|
|
(11
|
)
|
||
Asset management, administration and commissions
|
1,154
|
|
|
1,179
|
|
|
(2
|
)
|
||
All other income
|
280
|
|
|
273
|
|
|
3
|
|
||
Noninterest revenue
|
7,074
|
|
|
6,226
|
|
|
14
|
|
||
Net interest income
|
2,508
|
|
|
2,616
|
|
|
(4
|
)
|
||
Total net revenue
(a)
|
9,582
|
|
|
8,842
|
|
|
8
|
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
(31
|
)
|
|
49
|
|
|
NM
|
|
||
|
|
|
|
|
|
|||||
Noninterest expense
|
|
|
|
|
|
|||||
Compensation expense
|
3,023
|
|
|
2,870
|
|
|
5
|
|
||
Noncompensation expense
|
2,634
|
|
|
2,734
|
|
|
(4
|
)
|
||
Total noninterest expense
|
5,657
|
|
|
5,604
|
|
|
1
|
|
||
Income before income tax expense
|
3,956
|
|
|
3,189
|
|
|
24
|
|
||
Income tax expense
|
1,419
|
|
|
1,064
|
|
|
33
|
|
||
Net income
|
$
|
2,537
|
|
|
$
|
2,125
|
|
|
19
|
%
|
Financial ratios
|
|
|
|
|
|
|||||
Return on common equity
|
16
|
%
|
|
13
|
%
|
|
|
|||
Overhead ratio
|
59
|
|
|
63
|
|
|
|
|||
Compensation expense as a percentage of total net revenue
|
32
|
|
|
32
|
|
|
|
(a)
|
Included tax-equivalent adjustments, predominantly due to income tax credits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; as well as tax-exempt income from municipal bond investments of $432 million and $368 million for the three months ended
March 31, 2015
and 2014, respectively.
|
Selected income statement data
|
|
|
||||||||
|
Three months ended March 31,
|
|||||||||
(in millions)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Revenue by business
|
|
|
|
|
|
|||||
Advisory
|
$
|
542
|
|
|
$
|
383
|
|
|
42
|
%
|
Equity underwriting
|
399
|
|
|
353
|
|
|
13
|
|
||
Debt underwriting
|
820
|
|
|
708
|
|
|
16
|
|
||
Total investment banking fees
|
1,761
|
|
|
1,444
|
|
|
22
|
|
||
Treasury Services
|
1,012
|
|
|
1,032
|
|
|
(2
|
)
|
||
Lending
|
353
|
|
|
325
|
|
|
9
|
|
||
Total Banking
|
3,126
|
|
|
2,801
|
|
|
12
|
|
||
Fixed Income Markets
|
4,065
|
|
|
3,889
|
|
|
5
|
|
||
Equity Markets
|
1,609
|
|
|
1,315
|
|
|
22
|
|
||
Securities Services
|
934
|
|
|
1,022
|
|
|
(9
|
)
|
||
Credit Adjustments & Other
(a)
|
(152
|
)
|
|
(185
|
)
|
|
18
|
|
||
Total Markets & Investor Services
|
6,456
|
|
|
6,041
|
|
|
7
|
|
||
Total net revenue
|
$
|
9,582
|
|
|
$
|
8,842
|
|
|
8
|
%
|
(a)
|
Consists primarily of credit valuation adjustments (“CVA”) managed by the credit portfolio group, and funding valuation adjustments (“FVA”) and debit valuation adjustments (“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 March 31, |
|||||||||
(in millions, except headcount)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|||||
Assets
|
$
|
854,275
|
|
|
$
|
879,656
|
|
|
(3
|
)%
|
Loans:
|
|
|
|
|
|
|||||
Loans retained
(a)
|
98,625
|
|
|
96,245
|
|
|
2
|
|
||
Loans held-for-sale and loans at fair value
|
3,987
|
|
|
8,421
|
|
|
(53
|
)
|
||
Total loans
|
102,612
|
|
|
104,666
|
|
|
(2
|
)
|
||
Equity
|
62,000
|
|
|
61,000
|
|
|
2
|
|
||
Selected balance sheet data (average)
|
|
|
|
|
|
|||||
Assets
|
$
|
865,327
|
|
|
$
|
851,469
|
|
|
2
|
|
Trading assets-debt and equity instruments
|
312,260
|
|
|
306,140
|
|
|
2
|
|
||
Trading assets-derivative receivables
|
77,353
|
|
|
64,087
|
|
|
21
|
|
||
Loans:
|
|
|
|
|
|
|||||
Loans retained
(a)
|
99,113
|
|
|
95,798
|
|
|
3
|
|
||
Loans held-for-sale and loans at fair value
|
4,061
|
|
|
8,086
|
|
|
(50
|
)
|
||
Total loans
|
103,174
|
|
|
103,884
|
|
|
(1
|
)
|
||
Equity
|
62,000
|
|
|
61,000
|
|
|
2
|
|
||
Headcount
|
50,799
|
|
|
51,837
|
|
|
(2
|
)%
|
(a)
|
Loans retained includes credit portfolio loans, trade finance loans, other held-for-investment loans and overdrafts.
|
Selected metrics
|
|
|
|
|
|
|||||
|
As of or for the three months
ended March 31, |
|||||||||
(in millions, except ratios and where otherwise noted)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Credit data and quality statistics
|
|
|
|
|
|
|||||
Net charge-offs/(recoveries)
|
$
|
(11
|
)
|
|
$
|
(1
|
)
|
|
NM
|
|
Nonperforming assets:
|
|
|
|
|
|
|||||
Nonaccrual loans:
|
|
|
|
|
|
|||||
Nonaccrual loans retained
(a)(b)
|
251
|
|
|
75
|
|
|
235
|
%
|
||
Nonaccrual loans
held-for-sale and loans at fair value
|
12
|
|
|
176
|
|
|
(93
|
)
|
||
Total nonaccrual loans
|
263
|
|
|
251
|
|
|
5
|
|
||
Derivative receivables
|
249
|
|
|
392
|
|
|
(36
|
)
|
||
Assets acquired in loan satisfactions
|
63
|
|
|
110
|
|
|
(43
|
)
|
||
Total nonperforming assets
|
575
|
|
|
753
|
|
|
(24
|
)
|
||
Allowance for credit losses:
|
|
|
|
|
|
|||||
Allowance for loan losses
|
1,047
|
|
|
1,187
|
|
|
(12
|
)
|
||
Allowance for lending-related commitments
|
411
|
|
|
484
|
|
|
(15
|
)
|
||
Total allowance for credit losses
|
1,458
|
|
|
1,671
|
|
|
(13
|
)%
|
||
Net charge-off/(recovery) rate
(a)
|
(0.05
|
)%
|
|
—
|
|
|
|
|||
Allowance for loan losses to period-end loans retained
(a)
|
1.06
|
|
|
1.23
|
|
|
|
|||
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits
(c)
|
1.64
|
|
|
2.18
|
|
|
|
|||
Allowance for loan losses to nonaccrual loans retained
(a)(b)
|
417
|
|
|
1,583
|
|
|
|
|||
Nonaccrual loans to total period-end loans
|
0.26
|
|
|
0.24
|
|
|
|
(a)
|
Loans retained includes credit portfolio loans, trade finance loans, other held-for-investment loans and overdrafts.
|
(b)
|
Allowance for loan losses of $51 million and $13 million were held against these nonaccrual loans at
March 31, 2015
and 2014, 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.
|
Business metrics
|
|
|
|
|
|
|
|||||
As of or for the year ended
December 31,
|
As of or for the three months
ended March 31, |
|
|||||||||
(in millions, except ratios and where otherwise noted)
|
2015
|
|
|
2014
|
|
|
Change
|
|
|||
Assets under custody (“AUC”) by asset class (period-end) (in billions):
|
|
|
|
|
|
|
|||||
Fixed Income
|
$
|
12,256
|
|
|
$
|
12,401
|
|
|
(1)%
|
|
|
Equity
|
6,620
|
|
|
6,998
|
|
|
(5
|
)
|
|
||
Other
(a)
|
1,685
|
|
|
1,736
|
|
|
(3
|
)
|
|
||
Total AUC
|
$
|
20,561
|
|
|
$
|
21,135
|
|
|
(3
|
)
|
|
Client deposits and other third party liabilities (average)
(b)
|
$
|
444,171
|
|
|
$
|
412,551
|
|
|
8
|
|
|
Trade finance loans (period-end)
|
22,853
|
|
|
32,491
|
|
|
(30
|
)%
|
|
(a)
|
Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts.
|
(b)
|
Client deposits and other third party liabilities pertain to the Treasury Services and Securities Services businesses, and include deposits, as well as deposits that are swept to on balance sheet liabilities (e.g., commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements) as part of their client cash management program.
|
(a)
|
Source: Dealogic. Reflects the ranking and share of Global Investment Banking fees
|
(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 revenue 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 per Dealogic 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 March 31, |
|||||||||
(in millions, except where otherwise noted)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Total net revenue
(a)
|
|
|
|
|
|
|||||
Europe/Middle East/Africa
|
$
|
3,496
|
|
|
$
|
3,036
|
|
|
15
|
%
|
Asia/Pacific
|
1,263
|
|
|
1,045
|
|
|
21
|
|
||
Latin America/Caribbean
|
331
|
|
|
276
|
|
|
20
|
|
||
Total international net revenue
|
5,090
|
|
|
4,357
|
|
|
17
|
|
||
North America
|
4,492
|
|
|
4,485
|
|
|
—
|
|
||
Total net revenue
|
$
|
9,582
|
|
|
$
|
8,842
|
|
|
8
|
|
|
|
|
|
|
|
|||||
Loans (period-end)
(a)
|
|
|
|
|
|
|||||
Europe/Middle East/Africa
|
$
|
26,055
|
|
|
$
|
27,878
|
|
|
(7
|
)
|
Asia/Pacific
|
19,038
|
|
|
24,759
|
|
|
(23
|
)
|
||
Latin America/Caribbean
|
8,679
|
|
|
8,589
|
|
|
1
|
|
||
Total international loans
|
53,772
|
|
|
61,226
|
|
|
(12
|
)
|
||
North America
|
44,853
|
|
|
35,019
|
|
|
28
|
|
||
Total loans
|
$
|
98,625
|
|
|
$
|
96,245
|
|
|
2
|
|
|
|
|
|
|
|
|||||
Client deposits and other third-party liabilities (average)
(a)
|
|
|
|
|
|
|||||
Europe/Middle East/Africa
|
$
|
159,437
|
|
|
$
|
146,543
|
|
|
9
|
|
Asia/Pacific
|
70,917
|
|
|
60,918
|
|
|
16
|
|
||
Latin America/Caribbean
|
23,442
|
|
|
22,041
|
|
|
6
|
|
||
Total international
|
$
|
253,796
|
|
|
$
|
229,502
|
|
|
11
|
|
North America
|
190,375
|
|
|
183,049
|
|
|
4
|
|
||
Total client deposits and other third-party liabilities
|
$
|
444,171
|
|
|
$
|
412,551
|
|
|
8
|
|
|
|
|
|
|
|
|||||
AUC (period-end)
(in billions)
(a)
|
|
|
|
|
|
|||||
North America
|
$
|
12,202
|
|
|
$
|
11,508
|
|
|
6
|
|
All other regions
|
8,359
|
|
|
9,627
|
|
|
(13
|
)
|
||
Total AUC
|
$
|
20,561
|
|
|
$
|
21,135
|
|
|
(3
|
)%
|
(a)
|
Total net revenue is based predominantly on the domicile of the client or location of the trading desk, as applicable. Loans outstanding (excluding loans held-for-sale and loans at fair value), client deposits and other third-party liabilities, and AUC are based predominantly on the domicile of the client.
|
COMMERCIAL BANKING
|
Selected income statement data
|
||||||||||
|
Three months ended March 31,
|
|||||||||
(in millions)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Revenue
|
|
|
|
|
|
|||||
Lending- and deposit-related fees
|
$
|
237
|
|
|
$
|
246
|
|
|
(4
|
)%
|
Asset management, administration and commissions
|
24
|
|
|
23
|
|
|
4
|
|
||
All other income
(a)
|
375
|
|
|
289
|
|
|
30
|
|
||
Noninterest revenue
|
636
|
|
|
558
|
|
|
14
|
|
||
Net interest income
|
1,106
|
|
|
1,120
|
|
|
(1
|
)
|
||
Total net revenue
(b)
|
1,742
|
|
|
1,678
|
|
|
4
|
|
||
Provision for credit losses
|
61
|
|
|
5
|
|
|
NM
|
|
||
Noninterest expense
|
|
|
|
|
|
|||||
Compensation expense
|
309
|
|
|
307
|
|
|
1
|
|
||
Noncompensation expense
|
400
|
|
|
379
|
|
|
6
|
|
||
Total noninterest expense
|
709
|
|
|
686
|
|
|
3
|
|
||
Income before income tax expense
|
972
|
|
|
987
|
|
|
(2
|
)
|
||
Income tax expense
|
374
|
|
|
393
|
|
|
(5
|
)
|
||
Net income
|
$
|
598
|
|
|
$
|
594
|
|
|
1
|
%
|
(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
$113 million
and
$104 million
for the
three months ended
March 31, 2015
and
2014
, respectively.
|
Selected metrics
|
||||||||||
|
Three months ended March 31,
|
|||||||||
(in millions, except ratios)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Revenue by product
|
|
|
|
|
|
|||||
Lending
|
$
|
878
|
|
|
$
|
890
|
|
|
(1
|
)%
|
Treasury services
|
589
|
|
|
610
|
|
|
(3
|
)
|
||
Investment banking
|
248
|
|
|
146
|
|
|
70
|
|
||
Other
|
27
|
|
|
32
|
|
|
(16
|
)
|
||
Total Commercial Banking net revenue
|
$
|
1,742
|
|
|
$
|
1,678
|
|
|
4
|
|
|
|
|
|
|
|
|||||
Investment banking revenue, gross
(a)
|
$
|
753
|
|
|
$
|
447
|
|
|
68
|
|
|
|
|
|
|
|
|||||
Revenue by client segment
|
|
|
|
|
|
|||||
Middle Market Banking
(b)
|
$
|
677
|
|
|
$
|
700
|
|
|
(3
|
)
|
Corporate Client Banking
(b)
|
564
|
|
|
462
|
|
|
22
|
|
||
Commercial Term Lending
|
308
|
|
|
314
|
|
|
(2
|
)
|
||
Real Estate Banking
|
116
|
|
|
119
|
|
|
(3
|
)
|
||
Other
|
77
|
|
|
83
|
|
|
(7
|
)
|
||
Total Commercial Banking net revenue
|
$
|
1,742
|
|
|
$
|
1,678
|
|
|
4
|
%
|
|
|
|
|
|
|
|||||
Financial ratios
|
|
|
|
|
|
|||||
Return on common equity
|
17%
|
|
|
17
|
%
|
|
|
|||
Overhead ratio
|
41
|
|
|
41
|
|
|
|
(a)
|
Represents the total revenue from investment banking products sold to CB clients.
|
(b)
|
Effective January 1, 2015, mortgage warehouse lending clients were transferred from Middle Market Banking to Corporate Client Banking. Prior period revenue, period-end loans, and average loans by client segment were revised to conform with the current period presentation.
|
Selected metrics (continued)
|
|
|
||||||
|
As of or for the three months
ended March 31, |
|||||||
(in millions, except headcount)
|
2015
|
|
2014
|
|
Change
|
|||
Selected balance sheet data (period-end)
|
|
|
|
|||||
Total assets
|
$
|
197,931
|
|
$
|
191,389
|
|
3
|
%
|
Loans:
|
|
|
|
|||||
Loans retained
|
153,173
|
|
138,088
|
|
11
|
|
||
Loans held-for-sale and loans at fair value
|
507
|
|
848
|
|
(40
|
)
|
||
Total loans
|
$
|
153,680
|
|
$
|
138,936
|
|
11
|
|
Equity
|
14,000
|
|
14,000
|
|
—
|
|
||
|
|
|
|
|||||
Period-end loans by client segment
|
|
|
|
|||||
Middle Market Banking
(a)
|
$
|
51,071
|
|
$
|
51,006
|
|
—
|
|
Corporate Client Banking
(a)
|
28,379
|
|
21,969
|
|
29
|
|
||
Commercial Term Lending
|
55,824
|
|
49,973
|
|
12
|
|
||
Real Estate Banking
|
13,537
|
|
11,615
|
|
17
|
|
||
Other
|
4,869
|
|
4,373
|
|
11
|
|
||
Total Commercial Banking loans
|
$
|
153,680
|
|
$
|
138,936
|
|
11
|
|
|
|
|
|
|||||
Selected balance sheet data (average)
|
|
|
|
|||||
Total assets
|
$
|
195,927
|
|
$
|
192,748
|
|
2
|
|
Loans:
|
|
|
|
|||||
Loans retained
|
149,731
|
|
136,651
|
|
10
|
|
||
Loans held-for-sale and loans at fair value
|
557
|
|
1,039
|
|
(46
|
)
|
||
Total loans
|
$
|
150,288
|
|
$
|
137,690
|
|
9
|
|
Client deposits and other third-party liabilities
|
210,046
|
|
202,944
|
|
3
|
|
||
Equity
|
14,000
|
|
14,000
|
|
—
|
|
||
|
|
|
|
|||||
Average loans by client segment
|
|
|
|
|||||
Middle Market Banking
(a)
|
$
|
50,538
|
|
$
|
50,673
|
|
—
|
|
Corporate Client Banking
(a)
|
26,653
|
|
21,906
|
|
22
|
|
||
Commercial Term Lending
|
54,754
|
|
49,395
|
|
11
|
|
||
Real Estate Banking
|
13,472
|
|
11,408
|
|
18
|
|
||
Other
|
4,871
|
|
4,308
|
|
13
|
|
||
Total Commercial Banking loans
|
$
|
150,288
|
|
$
|
137,690
|
|
9
|
|
|
|
|
|
|||||
Headcount
|
7,324
|
|
6,976
|
|
5
|
%
|
(a)
|
Effective January 1, 2015, mortgage warehouse lending clients were transferred from Middle Market Banking to Corporate Client Banking. Prior period revenue, period-end loans, and average loans by client segment were revised to conform with the current presentation.
|
Selected metrics (continued)
|
||||||||||
|
As of or for the three months
ended March 31, |
|||||||||
(in millions, except ratios)
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Credit data and quality statistics
|
|
|
|
|
|
|||||
Net charge-offs/(recoveries)
|
$
|
11
|
|
|
$
|
(14
|
)
|
|
NM
|
|
Nonperforming assets
|
|
|
|
|
|
|||||
Nonaccrual loans:
|
|
|
|
|
|
|||||
Nonaccrual loans retained
(a)
|
304
|
|
|
468
|
|
|
(35
|
)%
|
||
Nonaccrual loans held-for-sale and loans at fair value
|
12
|
|
|
17
|
|
|
(29
|
)
|
||
Total nonaccrual loans
|
316
|
|
|
485
|
|
|
(35
|
)
|
||
Assets acquired in loan satisfactions
|
5
|
|
|
20
|
|
|
(75
|
)
|
||
Total nonperforming assets
|
321
|
|
|
505
|
|
|
(36
|
)
|
||
Allowance for credit losses:
|
|
|
|
|
|
|||||
Allowance for loan losses
|
2,519
|
|
|
2,690
|
|
|
(6
|
)
|
||
Allowance for lending-related commitments
|
162
|
|
|
141
|
|
|
15
|
|
||
Total allowance for credit losses
|
2,681
|
|
|
2,831
|
|
|
(5
|
)%
|
||
Net charge-off/(recovery) rate
(b)
|
0.03
|
%
|
|
(0.04
|
)%
|
|
|
|||
Allowance for loan losses to period-end loans
retained
|
1.64
|
|
|
1.95
|
|
|
|
|||
Allowance for loan losses to nonaccrual loans retained
(a)
|
829
|
|
|
575
|
|
|
|
|||
Nonaccrual loans to total period-end loans
|
0.21
|
|
|
0.35
|
|
|
|
(a)
|
Allowance for loan losses of
$29 million
and
$86 million
was held against nonaccrual loans retained at
March 31, 2015
and
2014
, 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
|
||||||||
(in millions, except ratios
and headcount)
|
Three months ended March 31,
|
|||||||
2015
|
|
2014
|
|
Change
|
||||
Revenue
|
|
|
|
|||||
Asset management, administration and commissions
|
$
|
2,229
|
|
$
|
2,100
|
|
6
|
%
|
All other income
|
155
|
|
118
|
|
31
|
|
||
Noninterest revenue
|
2,384
|
|
2,218
|
|
7
|
|
||
Net interest income
|
621
|
|
582
|
|
7
|
|
||
Total net revenue
|
3,005
|
|
2,800
|
|
7
|
|
||
|
|
|
|
|||||
Provision for credit losses
|
4
|
|
(9
|
)
|
NM
|
|
||
|
|
|
|
|||||
Noninterest expense
|
|
|
|
|||||
Compensation expense
|
1,289
|
|
1,256
|
|
3
|
|
||
Noncompensation expense
|
886
|
|
819
|
|
8
|
|
||
Total noninterest expense
|
2,175
|
|
2,075
|
|
5
|
|
||
|
|
|
|
|||||
Income before income tax expense
|
826
|
|
734
|
|
13
|
|
||
Income tax expense
|
324
|
|
280
|
|
16
|
|
||
Net income
|
$
|
502
|
|
$
|
454
|
|
11
|
|
|
|
|
|
|||||
Revenue by line of business
|
|
|
|
|||||
Global Investment Management
|
$
|
1,533
|
|
$
|
1,418
|
|
8
|
|
Global Wealth Management
|
1,472
|
|
1,382
|
|
7
|
|
||
Total net revenue
|
$
|
3,005
|
|
$
|
2,800
|
|
7
|
|
|
|
|
|
|||||
Financial ratios
|
|
|
|
|||||
Return on common equity
|
22
|
%
|
20
|
%
|
|
|||
Overhead ratio
|
72
|
|
74
|
|
|
|||
Pretax margin ratio:
|
|
|
|
|||||
Global Investment Management
|
30
|
|
26
|
|
|
|||
Global Wealth Management
|
25
|
|
26
|
|
|
|||
Asset Management
|
27
|
|
26
|
|
|
|||
|
|
|
|
|||||
Headcount
|
20,095
|
|
20,056
|
|
—
|
|
||
|
|
|
|
|||||
Number of client advisors
|
2,803
|
|
2,925
|
|
(4
|
)%
|
Selected metrics
|
As of or for the three months
ended March 31, |
|||||||
(in millions, except ranking data and ratios)
|
2015
|
|
2014
|
|
Change
|
|||
% of JPM mutual fund assets rated as 4- or 5-star
(a)
|
56
|
%
|
47
|
%
|
|
|||
% of JPM mutual fund assets ranked in 1
st
or 2
nd
quartile:
(b)
|
|
|
|
|||||
1 year
|
75
|
|
65
|
|
|
|||
3 years
|
75
|
|
68
|
|
|
|||
5 years
|
79
|
|
67
|
|
|
|||
|
|
|
|
|||||
Selected balance sheet data (period-end)
|
|
|
|
|||||
Total assets
|
$
|
126,233
|
|
$
|
124,478
|
|
1
|
%
|
Loans
(c)
|
104,165
|
|
96,934
|
|
7
|
|
||
Deposits
|
155,347
|
|
147,760
|
|
5
|
|
||
Equity
|
9,000
|
|
9,000
|
|
—
|
|
||
|
|
|
|
|||||
Selected balance sheet data (average)
|
|
|
|
|||||
Total assets
|
$
|
126,276
|
|
$
|
122,668
|
|
3
|
|
Loans
|
103,286
|
|
95,661
|
|
8
|
|
||
Deposits
|
158,240
|
|
149,432
|
|
6
|
|
||
Equity
|
9,000
|
|
9,000
|
|
—
|
|
||
|
|
|
|
|||||
Credit data and quality statistics
|
|
|
|
|||||
Net charge-offs
|
$
|
3
|
|
$
|
5
|
|
(40
|
)
|
Nonaccrual loans
|
175
|
|
204
|
|
(14
|
)
|
||
Allowance for credit losses:
|
|
|
|
|||||
Allowance for loan losses
|
271
|
|
263
|
|
3
|
|
||
Allowance for lending-related commitments
|
5
|
|
5
|
|
—
|
|
||
Total allowance for credit losses
|
276
|
|
268
|
|
3
|
%
|
||
Net charge-off rate
|
0.01
|
%
|
0.02
|
%
|
|
|||
Allowance for loan losses to period-end loans
|
0.26
|
|
0.27
|
|
|
|||
Allowance for loan losses to nonaccrual loans
|
155
|
|
129
|
|
|
|||
Nonaccrual loans to period-end loans
|
0.17
|
|
0.21
|
|
|
(a)
|
Represents the “overall star rating” derived from Morningstar for the U.S., the U.K., Luxembourg, Hong Kong and Taiwan domiciled funds; and Nomura “star rating” for Japan domiciled funds. Includes only retail open ended mutual funds that have a rating. Excludes money market funds, Undiscovered Managers Fund, and Brazil and India domiciled funds.
|
(b)
|
Quartile ranking sourced from: Lipper for the U.S. and Taiwan domiciled funds; Morningstar for the U.K., Luxembourg and Hong Kong domiciled funds; Nomura for Japan domiciled funds and FundDoctor for South Korea domiciled funds. Includes only retail open ended mutual funds that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil and India domiciled funds.
|
(c)
|
Included
$23.0 billion
and
$19.7 billion
of prime mortgage loans reported in the Consumer, excluding credit card, loan portfolio at
March 31, 2015
and
2014
, respectively. For the same periods, excluded
$2.6 billion
and
$3.4 billion
, respectively, of prime mortgage loans reported in the Chief Investment Office (“CIO”) portfolio within the Corporate segment.
|
Client assets
|
March 31,
|
|||||||
(in billions)
|
2015
|
|
2014
|
|
Change
|
|||
Assets by asset class
|
|
|
|
|||||
Liquidity
|
$
|
454
|
|
$
|
444
|
|
2
|
%
|
Fixed income
|
359
|
|
340
|
|
6
|
|
||
Equity
|
380
|
|
373
|
|
2
|
|
||
Multi-asset and alternatives
|
566
|
|
491
|
|
15
|
|
||
Total assets under management
|
1,759
|
|
1,648
|
|
7
|
|
||
Custody/brokerage/administration/deposits
|
646
|
|
746
|
|
(13
|
)
|
||
Total client assets
|
$
|
2,405
|
|
$
|
2,394
|
|
—
|
|
|
|
|
|
|||||
Memo:
|
|
|
|
|||||
Alternatives client assets
(a)
|
$
|
168
|
|
$
|
160
|
|
5
|
|
|
|
|
|
|||||
Assets by client segment
|
|
|
|
|||||
Private Banking
|
$
|
440
|
|
$
|
377
|
|
17
|
|
Institutional
|
825
|
|
773
|
|
7
|
|
||
Retail
|
494
|
|
498
|
|
(1
|
)
|
||
Total assets under management
|
$
|
1,759
|
|
$
|
1,648
|
|
7
|
|
|
|
|
|
|||||
Private Banking
|
$
|
1,073
|
|
$
|
992
|
|
8
|
|
Institutional
|
833
|
|
773
|
|
8
|
|
||
Retail
|
499
|
|
629
|
|
(21
|
)
|
||
Total client assets
|
$
|
2,405
|
|
$
|
2,394
|
|
—
|
|
(a)
|
Represents assets under management, as well as client balances in brokerage accounts.
|
Client assets (continued)
|
Three months ended
March 31, |
|||||
(in billions)
|
2015
|
|
2014
|
|
||
Assets under management rollforward
|
|
|
||||
Beginning balance
|
$
|
1,744
|
|
$
|
1,598
|
|
Net asset flows:
|
|
|
||||
Liquidity
|
(1
|
)
|
(6
|
)
|
||
Fixed income
|
2
|
|
5
|
|
||
Equity
|
4
|
|
3
|
|
||
Multi-asset and alternatives
|
10
|
|
12
|
|
||
Market/performance/other impacts
|
—
|
|
36
|
|
||
Ending balance, March 31
|
$
|
1,759
|
|
$
|
1,648
|
|
|
|
|
||||
Client assets rollforward
|
|
|
||||
Beginning balance
|
$
|
2,387
|
|
$
|
2,343
|
|
Net asset flows
|
17
|
|
15
|
|
||
Market/performance/other impacts
|
1
|
|
36
|
|
||
Ending balance, March 31
|
$
|
2,405
|
|
$
|
2,394
|
|
International metrics
|
As of or for the three months
ended March 31, |
|||||||
(in billions, except where otherwise noted)
|
2015
|
|
2014
|
|
Change
|
|||
Total net revenue
(in millions)
(a)
|
|
|
|
|||||
Europe/Middle East/Africa
|
$
|
471
|
|
$
|
491
|
|
(4
|
)%
|
Asia/Pacific
|
286
|
|
275
|
|
4
|
|
||
Latin America/Caribbean
|
197
|
|
198
|
|
(1
|
)
|
||
Total international
net revenue
|
954
|
|
964
|
|
(1
|
)
|
||
North America
|
2,051
|
|
1,836
|
|
12
|
|
||
Total net revenue
|
$
|
3,005
|
|
$
|
2,800
|
|
7
|
|
|
|
|
|
|||||
Assets under management
|
|
|
|
|||||
Europe/Middle East/Africa
|
$
|
324
|
|
$
|
310
|
|
5
|
|
Asia/Pacific
|
129
|
|
133
|
|
(3
|
)
|
||
Latin America/Caribbean
|
46
|
|
49
|
|
(6
|
)
|
||
Total international
assets under management
|
499
|
|
492
|
|
1
|
|
||
North America
|
1,260
|
|
1,156
|
|
9
|
|
||
Total assets under management
|
$
|
1,759
|
|
$
|
1,648
|
|
7
|
|
|
|
|
|
|||||
Client assets
|
|
|
|
|||||
Europe/Middle East/Africa
|
$
|
373
|
|
$
|
372
|
|
—
|
|
Asia/Pacific
|
179
|
|
180
|
|
(1
|
)
|
||
Latin America/Caribbean
|
112
|
|
119
|
|
(6
|
)
|
||
Total international
client assets
|
664
|
|
671
|
|
(1
|
)
|
||
North America
|
1,741
|
|
1,723
|
|
1
|
|
||
Total client assets
|
$
|
2,405
|
|
$
|
2,394
|
|
—
|
|
(a)
|
Regional revenue is based on the domicile of the client.
|
CORPORATE
|
Selected income statement data
|
|
|
|
||||||
|
As of or for the three months
ended March 31, |
||||||||
(in millions, except headcount)
|
2015
|
|
2014
|
|
|
Change
|
|
||
Revenue
|
|
|
|
|
|||||
Principal transactions
|
$
|
100
|
|
$
|
350
|
|
|
(71
|
)%
|
Securities gains
|
53
|
|
26
|
|
|
104
|
|
||
All other income
|
(113
|
)
|
148
|
|
|
NM
|
|
||
Noninterest revenue
|
40
|
|
524
|
|
|
(92
|
)
|
||
Net interest income
|
(253
|
)
|
(525
|
)
|
|
52
|
|
||
Total net revenue
(a)
|
(213
|
)
|
(1
|
)
|
|
NM
|
|
||
|
|
|
|
|
|||||
Provision for credit losses
|
(5
|
)
|
(11
|
)
|
|
55
|
|
||
|
|
|
|
|
|||||
Noninterest expense
|
|
|
|
|
|||||
Compensation expense
|
892
|
|
687
|
|
|
30
|
|
||
Noncompensation expense
(b)
|
946
|
|
683
|
|
|
39
|
|
||
Subtotal
|
1,838
|
|
1,370
|
|
|
34
|
|
||
Net expense allocated to other businesses
|
(1,686
|
)
|
(1,536
|
)
|
|
(10
|
)
|
||
Total noninterest expense
|
152
|
|
(166
|
)
|
|
NM
|
|
||
Income/(loss) before income tax expense/(benefit)
|
(360
|
)
|
176
|
|
|
NM
|
|
||
Income tax expense/(benefit)
|
(418
|
)
|
61
|
|
|
NM
|
|
||
Net income
|
$
|
58
|
|
$
|
115
|
|
|
(50
|
)
|
Total net revenue
|
|
|
|
|
|||||
Treasury and CIO
|
(378
|
)
|
(367
|
)
|
|
(3
|
)
|
||
Other Corporate
(c)
|
165
|
|
366
|
|
|
(55
|
)
|
||
Total net revenue
|
$
|
(213
|
)
|
$
|
(1
|
)
|
|
NM
|
|
Net income/(loss)
|
|
|
|
|
|||||
Treasury and CIO
|
(221
|
)
|
(319
|
)
|
|
31
|
|
||
Other Corporate
(c)
|
279
|
|
434
|
|
|
(36
|
)
|
||
Total net income
|
$
|
58
|
|
$
|
115
|
|
|
(50
|
)
|
Total assets (period-end)
|
$
|
943,085
|
|
$
|
839,625
|
|
|
12
|
|
Headcount
|
27,019
|
|
22,474
|
|
|
20
|
%
|
(a)
|
Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of
$203 million
and
$164 million
for the
three months ended
March 31, 2015, and 2014
, respectively.
|
(b)
|
Included legal expense of
$305 million
for the
three months ended
March 31, 2015
; legal expense for the three months ended March 31, 2014 was not material.
|
(c)
|
Effective with the first quarter of 2015, the Firm began including the results of Private Equity in the Other Corporate line within the Corporate segment. Prior period amounts have been revised to conform with the current period presentation. The Corporate segment’s balance sheets and results of operations were not impacted by this reporting change.
|
(a)
|
Average investment securities included held-to-maturity balances of
$49.3 billion
and
$43.9 billion
for the
three months ended
March 31, 2015, and 2014
.
|
(b)
|
Period-end investment securities included held-to-maturity balance of
$49.3 billion
and
$47.3 billion
or the
three months ended
March 31, 2015, and 2014
respectively.
|
(a)
|
For more information on the Firm’s methodologies regarding the valuation of the private equity portfolio, see Note 3 of
JPMorgan Chase’s 2014 Annual Report
.
|
(b)
|
The sale of a portion of the Private Equity business was completed on January 9, 2015.
|
|
|
|
|
|
|
ENTERPRISE-WIDE RISK MANAGEMENT
|
•
|
Acceptance of responsibility, including identification and escalation of risk issues, by all individuals within the Firm;
|
•
|
Ownership of risk management within each line of business and corporate functions; and
|
•
|
Firmwide structures for risk governance.
|
Risk disclosure
|
Form 10-Q page reference
|
Annual Report page reference
|
Enterprise- Wide Risk Management
|
32-68
|
105–160
|
Risk governance
|
|
106–109
|
Credit Risk Management
|
33-48
|
110–130
|
Credit Portfolio
|
|
112
|
Consumer Credit Portfolio
|
34-39
|
113–119
|
Wholesale Credit Portfolio
|
40-45
|
120–127
|
Allowance For Credit Losses
|
46-48
|
128–130
|
Market Risk Management
|
49-52
|
131–136
|
Risk identification and classification
|
|
132
|
Value-at-risk
|
49-51
|
133–135
|
Economic-value stress testing
|
|
135
|
Earnings-at-risk
|
52
|
136
|
Country Risk Management
|
53
|
137–138
|
Model Risk Management
|
|
139
|
Principal Risk Management
|
|
140
|
Operational Risk Management
|
54
|
141–143
|
Operational Risk Capital Measurement
|
|
141–142
|
Cybersecurity
|
54
|
142
|
Business and Technology resiliency
|
|
142–143
|
Legal Risk Management
|
|
144
|
Compliance Risk Management
|
|
144
|
Fiduciary Risk management
|
|
145
|
Reputation Risk Management
|
|
145
|
Capital Management
|
55-63
|
146–155
|
Liquidity Risk Management
|
64-68
|
156–160
|
HQLA
|
64
|
157
|
Funding
|
64-67
|
157–160
|
Credit ratings
|
67-68
|
160
|
CREDIT RISK MANAGEMENT
|
Total credit portfolio
|
|
|
|
|
|||||||||
|
Credit exposure
|
|
Nonperforming
(b)(c)(d)
|
||||||||||
(in millions)
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
||||||||
Loans retained
|
$
|
756,971
|
|
$
|
747,508
|
|
|
$
|
6,921
|
|
$
|
7,017
|
|
Loans held-for-sale
|
4,924
|
|
7,217
|
|
|
20
|
|
95
|
|
||||
Loans at fair value
|
2,290
|
|
2,611
|
|
|
20
|
|
21
|
|
||||
Total loans – reported
|
764,185
|
|
757,336
|
|
|
6,961
|
|
7,133
|
|
||||
Derivative receivables
|
81,574
|
|
78,975
|
|
|
249
|
|
275
|
|
||||
Receivables from customers and other
|
22,777
|
|
29,080
|
|
|
—
|
|
—
|
|
||||
Total credit-related assets
|
868,536
|
|
865,391
|
|
|
7,210
|
|
7,408
|
|
||||
Assets acquired in loan satisfactions
|
|
|
|
|
|
||||||||
Real estate owned
|
NA
|
|
NA
|
|
|
459
|
|
515
|
|
||||
Other
|
NA
|
|
NA
|
|
|
45
|
|
44
|
|
||||
Total
assets acquired in loan satisfactions
|
NA
|
|
NA
|
|
|
504
|
|
559
|
|
||||
Total assets
|
868,536
|
|
865,391
|
|
|
7,714
|
|
7,967
|
|
||||
Lending-related commitments
|
949,166
|
|
950,997
|
|
|
131
|
|
103
|
|
||||
Total credit portfolio
|
$
|
1,817,702
|
|
$
|
1,816,388
|
|
|
$
|
7,845
|
|
$
|
8,070
|
|
Credit portfolio management derivatives notional, net
(a)
|
$
|
(28,557
|
)
|
$
|
(26,703
|
)
|
|
$
|
—
|
|
$
|
—
|
|
Liquid securities and other cash collateral held against derivatives
|
(19,749
|
)
|
(19,604
|
)
|
|
NA
|
|
NA
|
|
(in millions,
except ratios)
|
Three months ended March 31,
|
|||||
2015
|
|
2014
|
|
|||
Net charge-offs
|
$
|
1,052
|
|
$
|
1,269
|
|
Average retained loans
|
|
|
||||
Loans – reported
|
750,036
|
|
720,530
|
|
||
Loans – reported, excluding residential real estate PCI loans
|
704,072
|
|
668,120
|
|
||
Net charge-off rates
|
|
|
||||
Loans – reported
|
0.57
|
%
|
0.71
|
%
|
||
Loans – reported, excluding PCI
|
0.61
|
|
0.77
|
|
(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 45
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
March 31, 2015
, and
December 31, 2014
, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of
$7.5 billion
and
$7.8 billion
, respectively, that are 90 or more days past due; (2) student loans insured by U.S. government agencies under the FFELP of
$346 million
and
$367 million
, respectively, that are 90 or more days past due; and (3) real estate owned (“REO”) insured by U.S. government agencies of
$469 million
and
$462 million
, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”).
|
(d)
|
At
March 31, 2015
, and
December 31, 2014
, total nonaccrual loans represented
0.91%
and
0.94%
, respectively, of total loans.
|
CONSUMER CREDIT PORTFOLIO
|
Consumer credit portfolio
|
|
|
|
|
|
|
Three months ended March 31,
|
|||||||||||||||||||
(in millions, except ratios)
|
Credit exposure
|
|
Nonaccrual
loans
(f)(g)
|
|
Net charge-offs/(recoveries)
(h)
|
|
Average annual net charge-off/(recovery) rate
(h)(i)
|
|||||||||||||||||||
Mar 31,
2015 |
|
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
2015
|
2014
|
|
2015
|
2014
|
|||||||||||||||
Consumer, excluding credit card
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans, excluding PCI loans and loans held-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity – senior lien
|
$
|
15,922
|
|
|
$
|
16,367
|
|
|
$
|
930
|
|
$
|
938
|
|
|
$
|
20
|
|
$
|
27
|
|
|
0.50
|
%
|
0.65
|
%
|
Home equity – junior lien
|
34,968
|
|
|
36,375
|
|
|
1,539
|
|
1,590
|
|
|
71
|
|
139
|
|
|
0.81
|
|
1.41
|
|
||||||
Prime mortgage, including option ARMs
|
117,275
|
|
|
104,921
|
|
|
2,119
|
|
2,190
|
|
|
14
|
|
(3
|
)
|
|
0.05
|
|
(0.01
|
)
|
||||||
Subprime mortgage
|
4,826
|
|
|
5,056
|
|
|
1,010
|
|
1,036
|
|
|
1
|
|
13
|
|
|
0.08
|
|
0.75
|
|
||||||
Auto
(a)
|
55,455
|
|
|
54,536
|
|
|
95
|
|
115
|
|
|
51
|
|
41
|
|
|
0.38
|
|
0.32
|
|
||||||
Business banking
|
20,375
|
|
|
20,058
|
|
|
268
|
|
279
|
|
|
59
|
|
76
|
|
|
1.19
|
|
1.63
|
|
||||||
Student and other
|
10,740
|
|
|
10,970
|
|
|
264
|
|
270
|
|
|
48
|
|
75
|
|
|
1.79
|
|
2.64
|
|
||||||
Total loans, excluding PCI loans and loans held-for-sale
|
259,561
|
|
|
248,283
|
|
|
6,225
|
|
6,418
|
|
|
264
|
|
368
|
|
|
0.42
|
|
0.63
|
|
||||||
Loans – PCI
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
16,638
|
|
|
17,095
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
||||||
Prime mortgage
|
9,916
|
|
|
10,220
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
||||||
Subprime mortgage
|
3,559
|
|
|
3,673
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
||||||
Option ARMs
|
15,243
|
|
|
15,708
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
||||||
Total loans – PCI
|
45,356
|
|
|
46,696
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
|
NA
|
|
NA
|
|
||||||
Total loans – retained
|
304,917
|
|
|
294,979
|
|
|
6,225
|
|
6,418
|
|
|
264
|
|
368
|
|
|
0.36
|
|
0.52
|
|
||||||
Loans held-for-sale
|
298
|
|
(e)
|
395
|
|
(e)
|
16
|
|
91
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Total consumer, excluding credit card loans
|
305,215
|
|
|
295,374
|
|
|
6,241
|
|
6,509
|
|
|
264
|
|
368
|
|
|
0.36
|
|
0.52
|
|
||||||
Lending-related commitments
(b)
|
60,151
|
|
|
58,153
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Receivables from customers
(c)
|
105
|
|
|
108
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total consumer exposure, excluding credit card
|
365,471
|
|
|
353,635
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Credit card
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans retained
(d)
|
120,835
|
|
|
128,027
|
|
|
—
|
|
—
|
|
|
789
|
|
888
|
|
|
2.62
|
|
2.93
|
|
||||||
Loans held-for-sale
|
2,422
|
|
|
3,021
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Total credit card loans
|
123,257
|
|
|
131,048
|
|
|
—
|
|
—
|
|
|
789
|
|
888
|
|
|
2.62
|
|
2.93
|
|
||||||
Lending-related commitments
(b)
|
533,511
|
|
|
525,963
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total credit card exposure
|
656,768
|
|
|
657,011
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total consumer credit portfolio
|
$
|
1,022,239
|
|
|
$
|
1,010,646
|
|
|
$
|
6,241
|
|
$
|
6,509
|
|
|
$
|
1,053
|
|
$
|
1,256
|
|
|
1.01
|
%
|
1.24
|
%
|
Memo: Total consumer credit portfolio, excluding PCI
|
$
|
976,883
|
|
|
$
|
963,950
|
|
|
$
|
6,241
|
|
$
|
6,509
|
|
|
$
|
1,053
|
|
$
|
1,256
|
|
|
1.14
|
%
|
1.42
|
%
|
(a)
|
At
March 31, 2015
, and
December 31, 2014
, excluded operating lease-related assets of
$7.1 billion
and
$6.7 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
March 31, 2015
, and
December 31, 2014
, nonaccrual loans excluded: (1) mortgage loans insured by U.S. government agencies of
$7.5 billion
and
$7.8 billion
, respectively, that are 90 or more days past due; and (2) student loans insured by U.S. government agencies under the FFELP of
$346 million
and
$367 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
$55 million
and
$61 million
of write-offs in the PCI portfolio for the three months ended
March 31, 2015
and
2014
, respectively. These write-offs decreased the allowance for loan losses for PCI loans. See Consumer Credit Portfolio on
pages 113–119
of
JPMorgan Chase
’s
2014
Annual Report
for further details.
|
(i)
|
Average consumer loans held-for-sale were
$3.0 billion
and
$656 million
for the
three months ended
March 31, 2015
and
2014
, respectively. These amounts were excluded when calculating net charge-off rates.
|
Current high-risk seconds
|
|||||||||
(in billions)
|
|
March 31,
2015 |
December 31,
2014 |
||||||
Junior liens subordinate to:
|
|
|
|
|
|
||||
Modified current senior lien
|
|
|
$
|
0.7
|
|
|
$
|
0.7
|
|
Senior lien 30 – 89 days delinquent
|
|
|
0.5
|
|
|
0.5
|
|
||
Senior lien 90 days or more delinquent
(a)
|
|
|
0.5
|
|
|
0.6
|
|
||
Total current high-risk seconds
|
|
|
$
|
1.7
|
|
|
$
|
1.8
|
|
(a)
|
Junior liens subordinate to senior liens that are 90 days or more past due are classified as nonaccrual loans. At both
March 31, 2015
, and
December 31, 2014
, excluded approximately
$50 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
$2.0 billion
and
$2.3 billion
at
March 31, 2015
, and
December 31, 2014
, respectively.
|
(b)
|
Life-to-date (“LTD”) liquidation losses represent both realization of loss upon loan resolution and any principal forgiven upon modification.
|
(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
March 31, 2015
, and
December 31, 2014
of
$1.1 billion
and
$1.2 billion
for prime mortgage, respectively, and
$194 million
for option ARMs,
$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
March 31, 2015
, and
December 31, 2014
,
$4.8 billion
and
$4.9 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
March 31, 2015
, and
December 31, 2014
, nonaccrual loans included
$2.8 billion
and
$2.9 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)
|
March 31,
2015 |
|
December 31,
2014 |
||||
Nonaccrual loans
(b)
|
|
|
|
||||
Residential real estate
|
$
|
5,614
|
|
|
$
|
5,845
|
|
Other consumer
|
627
|
|
|
664
|
|
||
Total nonaccrual loans
|
6,241
|
|
|
6,509
|
|
||
Assets acquired in loan satisfactions
|
|
|
|
||||
Real estate owned
|
390
|
|
|
437
|
|
||
Other
|
37
|
|
|
36
|
|
||
Total assets acquired in loan satisfactions
|
427
|
|
|
473
|
|
||
Total nonperforming assets
|
$
|
6,668
|
|
|
$
|
6,982
|
|
(a)
|
At
March 31, 2015
, and
December 31, 2014
, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of
$7.5 billion
and
$7.8 billion
, respectively, that are 90 or more days past due; (2) student loans insured by U.S. government agencies under the FFELP of
$346 million
and
$367 million
, respectively, that are 90 or more days past due; and (3) real estate owned insured by U.S. government agencies of
$469 million
and
$462 million
, respectively. These amounts have been excluded based upon the government guarantee.
|
(b)
|
Excludes PCI loans that were acquired as part of the Washington Mutual transaction, which are accounted for on a pool basis. Since each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past-due status of the pools, or that of individual loans within the pools, is not meaningful. Because the Firm is recognizing interest income on each pool of loans, they are all considered to be performing.
|
Nonaccrual loans
|
|
|
|||||
Three months ended March 31,
|
|
|
|
||||
(in millions)
|
|
2015
|
|
2014
|
|
||
Beginning balance
|
|
$
|
6,509
|
|
$
|
7,496
|
|
Additions
|
|
980
|
|
1,461
|
|
||
Reductions:
|
|
|
|
||||
Principal payments and other
(a)
|
|
442
|
|
391
|
|
||
Charge-offs
|
|
211
|
|
389
|
|
||
Returned to performing status
|
|
450
|
|
624
|
|
||
Foreclosures and other liquidations
|
|
145
|
|
183
|
|
||
Total reductions
|
|
1,248
|
|
1,587
|
|
||
Net additions/(reductions)
|
|
(268
|
)
|
(126
|
)
|
||
Ending balance
|
|
$
|
6,241
|
|
$
|
7,370
|
|
(a)
|
Other reductions includes loan sales.
|
WHOLESALE CREDIT PORTFOLIO
|
Wholesale credit portfolio
|
|||||||||||||
|
Credit exposure
|
|
Nonperforming
(c)
|
||||||||||
(in millions)
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
||||||||
Loans retained
|
$
|
331,219
|
|
$
|
324,502
|
|
|
$
|
696
|
|
$
|
599
|
|
Loans held-for-sale
|
2,204
|
|
3,801
|
|
|
4
|
|
4
|
|
||||
Loans at fair value
|
2,290
|
|
2,611
|
|
|
20
|
|
21
|
|
||||
Loans – reported
|
335,713
|
|
330,914
|
|
|
720
|
|
624
|
|
||||
Derivative receivables
|
81,574
|
|
78,975
|
|
|
249
|
|
275
|
|
||||
Receivables from customers and other
(a)
|
22,672
|
|
28,972
|
|
|
—
|
|
—
|
|
||||
Total wholesale credit-related assets
|
439,959
|
|
438,861
|
|
|
969
|
|
899
|
|
||||
Lending-related commitments
|
355,504
|
|
366,881
|
|
|
131
|
|
103
|
|
||||
Total wholesale credit exposure
|
$
|
795,463
|
|
$
|
805,742
|
|
|
$
|
1,100
|
|
$
|
1,002
|
|
Credit portfolio management derivatives notional, net
(b)
|
$
|
(28,557
|
)
|
$
|
(26,703
|
)
|
|
$
|
—
|
|
$
|
—
|
|
Liquid securities and other cash collateral held against derivatives
|
(19,749
|
)
|
(19,604
|
)
|
|
NA
|
|
NA
|
|
(a)
|
Receivables from customers and other include
$22.4 billion
and
$28.8 billion
of margin loans at
March 31, 2015
, and
December 31, 2014
, 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 45
, and Note 5.
|
(c)
|
Excludes assets acquired in loan satisfactions.
|
|
Maturity profile
(e)
|
|
Ratings profile
|
|||||||||||||||||||||||
December 31, 2014
|
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
|
$
|
112,411
|
|
$
|
134,277
|
|
$
|
77,814
|
|
$
|
324,502
|
|
|
|
$
|
241,666
|
|
|
$
|
82,836
|
|
$
|
324,502
|
|
74
|
%
|
Derivative receivables
|
|
|
|
78,975
|
|
|
|
|
|
|
78,975
|
|
|
|||||||||||||
Less: Liquid securities and other cash collateral held against derivatives
|
|
|
|
(19,604
|
)
|
|
|
|
|
|
(19,604
|
)
|
|
|||||||||||||
Total derivative receivables, net of all collateral
|
20,032
|
|
16,130
|
|
23,209
|
|
59,371
|
|
|
|
52,150
|
|
|
7,221
|
|
59,371
|
|
88
|
|
|||||||
Lending-related commitments
|
94,635
|
|
262,572
|
|
9,674
|
|
366,881
|
|
|
|
284,288
|
|
|
82,593
|
|
366,881
|
|
77
|
|
|||||||
Subtotal
|
227,078
|
|
412,979
|
|
110,697
|
|
750,754
|
|
|
|
578,104
|
|
|
172,650
|
|
750,754
|
|
77
|
|
|||||||
Loans held-for-sale and loans at fair value
(a)
|
|
|
|
6,412
|
|
|
|
|
|
|
6,412
|
|
|
|||||||||||||
Receivables from customers and other
|
|
|
|
28,972
|
|
|
|
|
|
|
28,972
|
|
|
|||||||||||||
Total exposure – net of liquid securities and other cash collateral held against derivatives
|
|
|
|
$
|
786,138
|
|
|
|
|
|
|
$
|
786,138
|
|
|
|||||||||||
Credit Portfolio Management derivatives net notional by reference entity ratings profile
(b)(c)(d)
|
$
|
(2,050
|
)
|
$
|
(18,653
|
)
|
$
|
(6,000
|
)
|
$
|
(26,703
|
)
|
|
|
$
|
(23,571
|
)
|
|
$
|
(3,132
|
)
|
$
|
(26,703
|
)
|
88
|
%
|
(a)
|
Represents loans held-for-sale, primarily related to syndicated loans and loans transferred from the retained portfolio, and loans at fair value.
|
(b)
|
These derivatives do not qualify for hedge accounting under U.S. GAAP.
|
(c)
|
The notional amounts are presented on a net basis by underlying reference entity and the ratings profile shown is based on the ratings of the reference entity on which protection has been purchased.
|
(d)
|
Predominantly all of the credit derivatives entered into by the Firm where it has purchased protection, including Credit Portfolio Management derivatives, are executed with investment grade counterparties.
|
(e)
|
The maturity profile of retained loans, lending-related commitments and derivative receivables is based on the remaining contractual maturity. Derivative contracts that are in a receivable position at
March 31, 2015
, may become payable prior to maturity based on their cash flow profile or changes in market conditions.
|
|
|
|
|
|
|
|
|
Selected metrics
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
30 days or more past due and accruing
loans |
Net charge-offs/
(recoveries) |
Credit derivative hedges
(e)
|
Liquid securities
and other cash collateral held against derivative receivables |
||||||||||||||||||
|
|
|
|
Noninvestment-grade
|
|||||||||||||||||||||||||
As of or for the three months ended
|
Credit exposure
(d)
|
Investment- grade
|
|
Noncriticized
|
|
Criticized performing
|
Criticized nonperforming
|
||||||||||||||||||||||
March 31, 2015
|
|||||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Top 25 industries
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Real Estate
|
$
|
102,295
|
|
$
|
75,602
|
|
|
$
|
25,102
|
|
|
$
|
1,330
|
|
$
|
261
|
|
$
|
90
|
|
$
|
(12
|
)
|
$
|
(50
|
)
|
$
|
(50
|
)
|
Banks & Finance Cos
|
58,525
|
|
48,286
|
|
|
9,529
|
|
|
643
|
|
67
|
|
10
|
|
(2
|
)
|
(1,281
|
)
|
(8,073
|
)
|
|||||||||
Healthcare
|
46,571
|
|
38,575
|
|
|
7,504
|
|
|
415
|
|
77
|
|
73
|
|
8
|
|
(95
|
)
|
(282
|
)
|
|||||||||
Oil & Gas
|
43,289
|
|
28,966
|
|
|
13,518
|
|
|
729
|
|
76
|
|
19
|
|
—
|
|
(241
|
)
|
(194
|
)
|
|||||||||
Consumer Products
|
36,297
|
|
25,240
|
|
|
10,240
|
|
|
787
|
|
30
|
|
23
|
|
—
|
|
(18
|
)
|
(10
|
)
|
|||||||||
Asset Managers
|
31,756
|
|
27,161
|
|
|
4,554
|
|
|
21
|
|
20
|
|
23
|
|
—
|
|
(6
|
)
|
(4,547
|
)
|
|||||||||
State & Municipal Govt
(b)
|
30,213
|
|
29,296
|
|
|
800
|
|
|
117
|
|
—
|
|
58
|
|
(6
|
)
|
(146
|
)
|
(87
|
)
|
|||||||||
Utilities
|
27,353
|
|
23,495
|
|
|
3,601
|
|
|
257
|
|
—
|
|
15
|
|
—
|
|
(172
|
)
|
(194
|
)
|
|||||||||
Retail & Consumer Services
|
25,096
|
|
17,421
|
|
|
6,707
|
|
|
966
|
|
2
|
|
24
|
|
10
|
|
(75
|
)
|
—
|
|
|||||||||
Technology
|
20,293
|
|
12,587
|
|
|
7,107
|
|
|
579
|
|
20
|
|
1
|
|
—
|
|
(222
|
)
|
—
|
|
|||||||||
Machinery & Equipment Mfg
|
19,398
|
|
11,780
|
|
|
7,282
|
|
|
336
|
|
—
|
|
6
|
|
—
|
|
(132
|
)
|
(31
|
)
|
|||||||||
Chemicals/Plastics
|
18,290
|
|
9,332
|
|
|
8,916
|
|
|
42
|
|
—
|
|
—
|
|
—
|
|
(17
|
)
|
—
|
|
|||||||||
Telecom Services
|
17,879
|
|
7,938
|
|
|
9,412
|
|
|
529
|
|
—
|
|
—
|
|
—
|
|
(722
|
)
|
—
|
|
|||||||||
Central Govt
|
17,665
|
|
17,545
|
|
|
76
|
|
|
44
|
|
—
|
|
—
|
|
—
|
|
(11,813
|
)
|
(2,215
|
)
|
|||||||||
Business Services
|
16,012
|
|
8,105
|
|
|
7,498
|
|
|
395
|
|
14
|
|
12
|
|
—
|
|
(9
|
)
|
—
|
|
|||||||||
Transportation
|
15,711
|
|
11,022
|
|
|
4,628
|
|
|
61
|
|
—
|
|
17
|
|
—
|
|
(34
|
)
|
(241
|
)
|
|||||||||
Metals/Mining
|
14,388
|
|
8,071
|
|
|
5,723
|
|
|
541
|
|
53
|
|
1
|
|
—
|
|
(448
|
)
|
(41
|
)
|
|||||||||
Media
|
14,040
|
|
9,026
|
|
|
4,621
|
|
|
350
|
|
43
|
|
3
|
|
(1
|
)
|
(62
|
)
|
(7
|
)
|
|||||||||
Automotive
|
13,583
|
|
9,330
|
|
|
4,194
|
|
|
59
|
|
—
|
|
—
|
|
(2
|
)
|
(495
|
)
|
—
|
|
|||||||||
Insurance
|
13,238
|
|
10,439
|
|
|
2,592
|
|
|
77
|
|
130
|
|
2
|
|
—
|
|
(73
|
)
|
(2,048
|
)
|
|||||||||
Building Materials/Construction
|
12,133
|
|
5,950
|
|
|
5,855
|
|
|
322
|
|
6
|
|
5
|
|
—
|
|
(94
|
)
|
—
|
|
|||||||||
Securities Firms & Exchanges
|
10,282
|
|
6,999
|
|
|
3,281
|
|
|
—
|
|
2
|
|
—
|
|
—
|
|
(102
|
)
|
(360
|
)
|
|||||||||
Aerospace/Defense
|
7,561
|
|
6,703
|
|
|
834
|
|
|
24
|
|
—
|
|
—
|
|
—
|
|
(131
|
)
|
(2
|
)
|
|||||||||
Agriculture/Paper Mfg
|
7,343
|
|
5,149
|
|
|
2,101
|
|
|
93
|
|
—
|
|
17
|
|
—
|
|
(8
|
)
|
(8
|
)
|
|||||||||
Leisure
|
5,392
|
|
2,743
|
|
|
2,084
|
|
|
446
|
|
119
|
|
2
|
|
8
|
|
(55
|
)
|
(25
|
)
|
|||||||||
All other
(c)
|
143,694
|
|
127,032
|
|
|
15,999
|
|
|
507
|
|
156
|
|
1,165
|
|
(4
|
)
|
(12,056
|
)
|
(1,334
|
)
|
|||||||||
Subtotal
|
$
|
768,297
|
|
$
|
583,793
|
|
|
$
|
173,758
|
|
|
$
|
9,670
|
|
$
|
1,076
|
|
$
|
1,566
|
|
$
|
(1
|
)
|
$
|
(28,557
|
)
|
$
|
(19,749
|
)
|
Loans held-for-sale and loans at fair value
|
4,494
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Receivables from customers and other
|
22,672
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total
|
$
|
795,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected metrics
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
30 days or more past due and accruing
loans |
Net charge-offs/
(recoveries) |
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, 2014
|
|||||||||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Top 25 industries
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate
|
$
|
105,981
|
|
$
|
79,000
|
|
|
$
|
25,372
|
|
|
$
|
1,356
|
|
$
|
253
|
|
$
|
309
|
|
$
|
(9
|
)
|
$
|
(36
|
)
|
$
|
(27
|
)
|
Banks & Finance Cos
|
64,248
|
|
54,639
|
|
|
9,032
|
|
|
508
|
|
69
|
|
46
|
|
(4
|
)
|
(1,232
|
)
|
(9,369
|
)
|
|||||||||
Healthcare
|
56,604
|
|
48,475
|
|
|
7,599
|
|
|
488
|
|
42
|
|
193
|
|
17
|
|
(94
|
)
|
(244
|
)
|
|||||||||
Oil & Gas
|
43,184
|
|
29,284
|
|
|
13,843
|
|
|
56
|
|
1
|
|
15
|
|
2
|
|
(144
|
)
|
(161
|
)
|
|||||||||
Consumer Products
|
35,632
|
|
24,788
|
|
|
10,184
|
|
|
643
|
|
17
|
|
21
|
|
—
|
|
(20
|
)
|
(2
|
)
|
|||||||||
Asset Managers
|
27,671
|
|
24,221
|
|
|
3,392
|
|
|
57
|
|
1
|
|
38
|
|
(12
|
)
|
(9
|
)
|
(4,545
|
)
|
|||||||||
State & Municipal Govt
(b)
|
31,145
|
|
30,220
|
|
|
823
|
|
|
102
|
|
—
|
|
69
|
|
24
|
|
(148
|
)
|
(130
|
)
|
|||||||||
Utilities
|
27,485
|
|
23,572
|
|
|
3,658
|
|
|
255
|
|
—
|
|
198
|
|
(3
|
)
|
(155
|
)
|
(193
|
)
|
|||||||||
Retail & Consumer Services
|
27,463
|
|
17,562
|
|
|
8,900
|
|
|
970
|
|
31
|
|
56
|
|
4
|
|
(47
|
)
|
(1
|
)
|
|||||||||
Technology
|
19,634
|
|
12,835
|
|
|
6,145
|
|
|
634
|
|
20
|
|
24
|
|
(3
|
)
|
(225
|
)
|
—
|
|
|||||||||
Machinery & Equipment Mfg
|
19,374
|
|
11,360
|
|
|
7,766
|
|
|
248
|
|
—
|
|
5
|
|
(2
|
)
|
(157
|
)
|
(19
|
)
|
|||||||||
Chemicals/Plastics
|
12,620
|
|
9,263
|
|
|
3,328
|
|
|
29
|
|
—
|
|
1
|
|
(2
|
)
|
(14
|
)
|
—
|
|
|||||||||
Telecom Services
|
12,954
|
|
8,105
|
|
|
4,293
|
|
|
546
|
|
10
|
|
—
|
|
(2
|
)
|
(813
|
)
|
(6
|
)
|
|||||||||
Central Govt
|
15,978
|
|
15,766
|
|
|
154
|
|
|
58
|
|
—
|
|
—
|
|
—
|
|
(11,297
|
)
|
(1,071
|
)
|
|||||||||
Business Services
|
15,146
|
|
7,696
|
|
|
7,212
|
|
|
223
|
|
15
|
|
10
|
|
5
|
|
(9
|
)
|
—
|
|
|||||||||
Transportation
|
15,853
|
|
11,061
|
|
|
4,708
|
|
|
84
|
|
—
|
|
5
|
|
(3
|
)
|
(34
|
)
|
(107
|
)
|
|||||||||
Metals/Mining
|
14,980
|
|
8,311
|
|
|
6,165
|
|
|
504
|
|
—
|
|
—
|
|
18
|
|
(377
|
)
|
(19
|
)
|
|||||||||
Media
|
14,109
|
|
8,880
|
|
|
4,933
|
|
|
266
|
|
30
|
|
1
|
|
(1
|
)
|
(69
|
)
|
(6
|
)
|
|||||||||
Automotive
|
12,769
|
|
8,081
|
|
|
4,527
|
|
|
161
|
|
—
|
|
1
|
|
(1
|
)
|
(140
|
)
|
—
|
|
|||||||||
Insurance
|
13,417
|
|
10,602
|
|
|
2,573
|
|
|
80
|
|
162
|
|
—
|
|
—
|
|
(52
|
)
|
(2,372
|
)
|
|||||||||
Building Materials/Construction
|
12,444
|
|
6,047
|
|
|
5,723
|
|
|
668
|
|
6
|
|
12
|
|
2
|
|
(104
|
)
|
—
|
|
|||||||||
Securities Firms & Exchanges
|
8,077
|
|
5,728
|
|
|
2,337
|
|
|
10
|
|
2
|
|
20
|
|
4
|
|
(102
|
)
|
(216
|
)
|
|||||||||
Aerospace/Defense
|
5,868
|
|
4,930
|
|
|
914
|
|
|
24
|
|
—
|
|
—
|
|
—
|
|
(71
|
)
|
—
|
|
|||||||||
Agriculture/Paper Mfg
|
6,457
|
|
4,264
|
|
|
2,071
|
|
|
116
|
|
6
|
|
36
|
|
(1
|
)
|
(4
|
)
|
(4
|
)
|
|||||||||
Leisure
|
5,459
|
|
2,845
|
|
|
2,012
|
|
|
478
|
|
124
|
|
6
|
|
—
|
|
(5
|
)
|
(23
|
)
|
|||||||||
All other
(c)
|
145,806
|
|
128,260
|
|
|
16,780
|
|
|
578
|
|
188
|
|
1,235
|
|
(21
|
)
|
(11,345
|
)
|
(1,089
|
)
|
|||||||||
Subtotal
|
$
|
770,358
|
|
$
|
595,795
|
|
|
$
|
164,444
|
|
|
$
|
9,142
|
|
$
|
977
|
|
$
|
2,301
|
|
$
|
12
|
|
$
|
(26,703
|
)
|
$
|
(19,604
|
)
|
Loans held-for-sale and loans at fair value
|
6,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Receivables from customers and other
|
28,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
$
|
805,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The industry rankings presented in the table as of
December 31, 2014
, are based on the industry rankings of the corresponding exposures at
March 31, 2015
, not actual rankings of such exposures at
December 31, 2014
.
|
(b)
|
In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at
March 31, 2015
, and
December 31, 2014
, noted above, the Firm held:
$10.5 billion
and
$10.6 billion
, respectively, of trading securities;
$31.2 billion
and
$30.1 billion
, respectively, of available-for-sale (“AFS”) securities; and
$11.6 billion
and
$10.2 billion
, 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
56%
,
30%
and
6%
, respectively, at
March 31, 2015
, and
56%
,
30%
and
5%
, respectively, at
December 31, 2014
.
|
(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.
|
Derivative receivables
|
|
|
||||
(in millions)
|
Derivative receivables
|
|||||
March 31,
2015 |
December 31,
2014 |
|||||
Interest rate
|
$
|
36,148
|
|
$
|
33,725
|
|
Credit derivatives
|
1,528
|
|
1,838
|
|
||
Foreign exchange
|
25,696
|
|
21,253
|
|
||
Equity
|
7,410
|
|
8,177
|
|
||
Commodity
|
10,792
|
|
13,982
|
|
||
Total, net of cash collateral
|
81,574
|
|
78,975
|
|
||
Liquid securities and other cash collateral held against derivative receivables
|
(19,749
|
)
|
(19,604
|
)
|
||
Total, net of collateral
|
$
|
61,825
|
|
$
|
59,371
|
|
(a)
|
Amounts are presented net, considering the Firm’s net protection purchased or sold with respect to each underlying reference entity or index.
|
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. A write-off of a PCI loan is 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. The asset-specific credit card allowance for loan losses modified in a TDR is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
|
(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 March 31,
|
|||||||||||||||||||
|
Provision for loan losses
|
|
Provision for lending-related commitments
|
|
Total provision for
credit losses
|
|||||||||||||||
(in millions)
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
||||||
Consumer, excluding credit card
|
$
|
141
|
|
$
|
119
|
|
|
$
|
1
|
|
$
|
—
|
|
|
$
|
142
|
|
$
|
119
|
|
Credit card
|
789
|
|
688
|
|
|
—
|
|
—
|
|
|
789
|
|
688
|
|
||||||
Total consumer
|
930
|
|
807
|
|
|
1
|
|
—
|
|
|
931
|
|
807
|
|
||||||
Wholesale
|
58
|
|
110
|
|
|
(30
|
)
|
(67
|
)
|
|
28
|
|
43
|
|
||||||
Total provision for credit losses
|
$
|
988
|
|
$
|
917
|
|
|
$
|
(29
|
)
|
$
|
(67
|
)
|
|
$
|
959
|
|
$
|
850
|
|
MARKET RISK MANAGEMENT
|
Total VaR
|
Three months ended March 31,
|
|
|
|
|
||||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
At March 31,
|
||||||||||||||||||||||||||||
(in millions)
|
Avg.
|
Min
|
Max
|
|
Avg.
|
Min
|
Max
|
|
2015
|
|
2014
|
||||||||||||||||||||||
CIB trading VaR by risk type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed income
|
$
|
35
|
|
|
$
|
31
|
|
|
$
|
42
|
|
|
|
$
|
36
|
|
|
$
|
33
|
|
|
$
|
41
|
|
|
|
$
|
40
|
|
|
$
|
35
|
|
Foreign exchange
|
9
|
|
|
7
|
|
|
12
|
|
|
|
7
|
|
|
4
|
|
|
10
|
|
|
|
9
|
|
|
7
|
|
||||||||
Equities
|
18
|
|
|
14
|
|
|
23
|
|
|
|
14
|
|
|
10
|
|
|
23
|
|
|
|
19
|
|
|
11
|
|
||||||||
Commodities and other
|
8
|
|
|
6
|
|
|
10
|
|
|
|
11
|
|
|
7
|
|
|
14
|
|
|
|
10
|
|
|
9
|
|
||||||||
Diversification benefit to CIB trading VaR
|
(36
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(32
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(42
|
)
|
(a)
|
(29
|
)
|
||||||||
CIB trading VaR
|
34
|
|
|
27
|
|
|
44
|
|
|
|
36
|
|
|
30
|
|
|
47
|
|
|
|
36
|
|
|
33
|
|
||||||||
Credit portfolio VaR
|
18
|
|
|
17
|
|
|
19
|
|
|
|
13
|
|
|
10
|
|
|
17
|
|
|
|
19
|
|
|
12
|
|
||||||||
Diversification benefit to CIB VaR
|
(9
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(7
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(9
|
)
|
(a)
|
(7
|
)
|
||||||||
CIB VaR
|
43
|
|
|
34
|
|
|
53
|
|
|
|
42
|
|
|
34
|
|
|
54
|
|
|
|
46
|
|
|
38
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Mortgage Banking VaR
|
4
|
|
|
2
|
|
|
5
|
|
|
|
5
|
|
|
3
|
|
|
10
|
|
|
|
4
|
|
|
10
|
|
||||||||
Treasury and CIO VaR
|
3
|
|
|
3
|
|
|
4
|
|
|
|
5
|
|
|
4
|
|
|
6
|
|
|
|
4
|
|
|
5
|
|
||||||||
Asset Management VaR
|
3
|
|
|
2
|
|
|
3
|
|
|
|
3
|
|
|
2
|
|
|
4
|
|
|
|
3
|
|
|
3
|
|
||||||||
Diversification benefit to other VaR
|
(4
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(5
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(4
|
)
|
(a)
|
(7
|
)
|
||||||||
Other VaR
|
6
|
|
|
5
|
|
|
7
|
|
|
|
8
|
|
|
5
|
|
|
13
|
|
|
|
7
|
|
|
11
|
|
||||||||
Diversification benefit to CIB and other VaR
|
(6
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(8
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(7
|
)
|
(a)
|
(11
|
)
|
||||||||
Total VaR
|
$
|
43
|
|
|
$
|
34
|
|
|
$
|
54
|
|
|
|
$
|
42
|
|
|
$
|
35
|
|
|
$
|
53
|
|
|
|
$
|
46
|
|
|
$
|
38
|
|
(a)
|
Average portfolio VaR and period-end portfolio VaR were less than the sum of the VaR of the components described above, due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated.
|
(b)
|
Designated as not meaningful (“NM”), because the minimum and maximum may occur on different days for different risk components, and hence it is not meaningful to compute a portfolio-diversification effect.
|
JPMorgan Chase’s 12-month pretax core net interest income sensitivity profiles
|
||||||||||||
(Excludes the impact of trading activities and MSRs)
|
||||||||||||
(in billions)
|
Instantaneous change in rates
|
|
||||||||||
March 31, 2015
|
+200bps
|
+100bps
|
-100bps
|
-200bps
|
||||||||
U.S. dollar
|
$
|
4.7
|
|
|
$
|
2.9
|
|
|
NM
|
(a)
|
NM
|
(a)
|
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, AFS securities, counterparty exposure on derivative and securities financings net of collateral and hedging.
|
(c)
|
Includes single-name and index and tranched credit derivatives for which one or more of the underlying reference entities is in a country listed in the above table.
|
(d)
|
Includes capital invested in local entities and physical commodity inventory.
|
OPERATIONAL RISK MANAGEMENT
|
CAPITAL MANAGEMENT
|
•
|
Regulatory capital
|
•
|
Economic risk capital
|
•
|
Line of business equity
|
|
|
|
|
|
|
|
|
RWA (Denominator)
|
Standardized Approach
|
Basel I with 2.5
(c)
|
|
Basel III Standardized
|
|||
|
|
|
|
|
|
|
|
|
Advanced
Approach
|
Basel III Advanced
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage (Denominator)
|
Tier 1 Leverage
|
Adjusted average assets
(d)
|
|||||
|
|
|
|
|
|
|
|
|
Supplementary leverage
(a)
|
|
|
Adjusted average assets
(d)
+ off-balance sheet exposures
|
|||
|
|
|
|
|
|
|
|
(a)
|
The Firm and its IDI subsidiaries are required to have a minimum SLR of at least 5% and 6%, respectively, both beginning January 1, 2018.
|
(b)
|
Trust preferred securities (“TruPS”) are being phased out from inclusion in Basel III capital commencing January 1, 2014, and continuing through the end of 2021.
|
(c)
|
Defined as Basel III Standardized Transitional for 2014. Beginning January 1, 2015, Basel III Standardized RWA is calculated under the Basel III definition of the Standardized Approach.
|
(d)
|
Adjusted average assets, for purposes of calculating the Tier 1 leverage ratio and the SLR, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital predominantly comprising disallowed goodwill and other intangible assets.
|
March 31, 2015
|
Standardized
|
Advanced
|
Minimum capital ratios
|
|
Well-capitalized ratios
(c)
|
||||
Risk-based capital ratios:
|
|
|
|
|
|
||||
CET1 capital
|
10.8
|
%
|
10.6
|
%
|
9.5
|
%
|
|
6.5
|
%
|
Tier 1 capital
|
12.2
|
|
12.0
|
|
11.0
|
|
|
8.0
|
|
Total capital
|
14.2
|
|
13.4
|
|
13.0
|
|
|
10.0
|
|
Leverage ratio:
|
|
|
|
|
|
||||
Tier 1
(a)
|
7.5
|
|
7.5
|
|
4.0
|
|
|
5.0
|
|
SLR
|
NA
|
|
5.7
|
|
5.0
|
|
(b)
|
NA
|
|
(a)
|
As the Tier 1 leverage ratio is not a risk-based measure of capital, the ratios presented in the table reflect the same calculation.
|
(b)
|
In the case of SLR, the fully phased-in minimum ratio is effective beginning January 1, 2018.
|
(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
|
|
||
(in millions)
|
March 31, 2015
|
||
Total stockholders’ equity
|
$
|
235,864
|
|
Less: Preferred stock
|
21,493
|
|
|
Common stockholders’ equity
|
214,371
|
|
|
Less:
|
|
||
Goodwill
(a)
|
44,708
|
|
|
Other intangible assets
(a)
|
1,003
|
|
|
Other CET1 capital adjustments
|
1,421
|
|
|
CET1 capital
|
167,239
|
|
|
Preferred stock
|
21,493
|
|
|
Less:
|
|
||
Other Tier 1 adjustments
|
20
|
|
|
Total Tier 1 capital
|
$
|
188,712
|
|
Long-term debt and other instruments qualifying as
Tier 2 capital
|
$
|
16,960
|
|
Qualifying allowance for credit losses
|
4,768
|
|
|
Other
|
(37
|
)
|
|
Total Tier 2 capital
|
21,691
|
|
|
|
|
||
Total capital
|
$
|
210,403
|
|
(a)
|
Goodwill and other intangible assets are net of any associated deferred tax liabilities.
|
Three months ended March 31,
(in millions)
|
2015
|
|
|
|
|
||
CET1 capital at December 31, 2014
|
$
|
164,514
|
|
Net income applicable to common equity
|
5,590
|
|
|
Dividends declared on common stock
|
(1,519
|
)
|
|
Net purchase of treasury stock
|
(580
|
)
|
|
Changes in additional paid-in capital
|
(1,025
|
)
|
|
Changes related to AOCI
|
146
|
|
|
Adjustment related to FVA/DVA
|
(78
|
)
|
|
Other
|
191
|
|
|
Increase in CET1 capital
|
2,725
|
|
|
CET1 capital at March 31, 2015
|
$
|
167,239
|
|
|
|
||
Tier 1 capital at December 31, 2014
|
$
|
184,572
|
|
Change in CET1 capital
|
2,725
|
|
|
Net issuance of noncumulative perpetual preferred stock
|
1,430
|
|
|
Other
|
(15
|
)
|
|
Increase in Tier 1 capital
|
4,140
|
|
|
Tier 1 capital at March 31, 2015
|
$
|
188,712
|
|
|
|
||
Tier 2 capital at December 31, 2014
|
$
|
21,684
|
|
Change in long-term debt and other instruments qualifying as Tier 2
|
(544
|
)
|
|
Change in qualifying allowance for credit losses
|
502
|
|
|
Other
|
49
|
|
|
Increase in Tier 2 capital
|
7
|
|
|
Tier 2 capital at March 31, 2015
|
$
|
21,691
|
|
|
|
||
Total capital at March 31, 2015
|
$
|
210,403
|
|
|
Three months ended March 31, 2015
|
|||||||||||
(in billions)
|
Credit risk RWA
|
Market risk RWA
|
Operational
risk
RWA
|
Total RWA
|
||||||||
At December 31, 2014
|
$
|
1,040
|
|
$
|
179
|
|
$
|
400
|
|
$
|
1,619
|
|
Effect of rule changes
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
Model & data changes
(a)
|
(23
|
)
|
(2
|
)
|
—
|
|
(25
|
)
|
||||
Portfolio runoff
(b)
|
(4
|
)
|
(4
|
)
|
—
|
|
(8
|
)
|
||||
Movement in portfolio levels
(c)
|
(11
|
)
|
(2
|
)
|
—
|
|
(13
|
)
|
||||
Changes in RWA
|
(38
|
)
|
(8
|
)
|
—
|
|
(46
|
)
|
||||
March 31, 2015
|
$
|
1,002
|
|
$
|
171
|
|
$
|
400
|
|
$
|
1,573
|
|
(a)
|
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).
|
(b)
|
Portfolio runoff for credit risk RWA reflects lower loan balances in Mortgage Banking and reduced risk from position rolloffs in legacy portfolios, and for market risk RWA reflects reduced risk from position rolloffs in legacy portfolios.
|
(c)
|
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.
|
(in millions, except ratio)
|
March 31, 2015
|
||
Tier 1 Capital
|
$
|
188,712
|
|
|
|
||
Total average assets
|
2,557,010
|
|
|
Less: amounts deducted from Tier 1 capital
|
46,841
|
|
|
Total adjusted average assets
(a)
|
2,510,169
|
|
|
Off-balance sheet exposures
(b)
|
789,922
|
|
|
SLR leverage exposure
|
$
|
3,300,091
|
|
|
|
||
SLR
|
5.7
|
%
|
(a)
|
Adjusted average assets, for purposes of calculating the SLR, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital predominantly comprising disallowed goodwill and other intangible assets.
|
(b)
|
Off-balance sheet exposures are calculated using the average of each of the three month’s period-end balances.
|
(in millions)
|
March 31, 2015
|
||
Transitional CET1 capital
|
$
|
167,142
|
|
AOCI phase-in
(a)
|
1,781
|
|
|
CET1 capital deduction phased-in
(b)
|
(1,004
|
)
|
|
Intangibles deduction phase-in
(c)
|
(602
|
)
|
|
Other adjustments to CET1 capital
(d)
|
(78
|
)
|
|
Fully Phased-In CET1 capital
|
$
|
167,239
|
|
|
|
||
Transitional Additional Tier 1 capital
|
$
|
21,649
|
|
Non-qualifying instruments phase-out
|
(960
|
)
|
|
Tier 1 capital deduction phased-out
(b)
|
1,004
|
|
|
Other adjustments to Tier 1 capital
(d)
|
(220
|
)
|
|
Fully Phased-In Additional Tier 1 capital
|
$
|
21,473
|
|
|
|
||
Fully Phased-In Tier 1 capital
|
$
|
188,712
|
|
|
|
||
Transitional Tier 2 capital
|
$
|
24,575
|
|
Non-qualifying instruments
|
(2,879
|
)
|
|
Other adjustments to Tier 2 capital
(e)
|
(5
|
)
|
|
Fully Phased-In Tier 2 capital
|
$
|
21,691
|
|
|
|
||
Fully Phased-In Total capital
|
$
|
210,403
|
|
|
|
||
Transitional RWA
|
$
|
1,562,570
|
|
Adjustment related to change in risk-weighting
(f)
|
10,634
|
|
|
Fully Phased-In RWA
|
$
|
1,573,204
|
|
(a)
|
Includes the remaining balance of AOCI related to AFS debt securities and defined benefit pension and OPEB plans that will qualify as Basel III CET1 capital upon full phase-in.
|
(b)
|
Predominantly includes regulatory adjustments related to changes in FVA/DVA, as well as CET1 deductions for defined benefit pension plan assets and DTA related to net operating loss carryforwards.
|
(c)
|
Relates to intangible assets, other than goodwill and MSRs, that are required to be deducted from CET1 capital upon full phase-in.
|
(d)
|
Includes minority interest and the Firm’s investments in its own CET1 capital instruments.
|
March 31, 2015
|
Standardized
|
Advanced
|
Minimum capital ratios
(b)
|
Well-capitalized ratios
(c)
|
||||
Risk-based capital ratios:
|
|
|
|
|
||||
CET1 capital
|
10.9
|
%
|
10.7
|
%
|
4.5
|
%
|
6.5
|
%
|
Tier 1 capital
|
12.3
|
|
12.1
|
|
6.0
|
|
8.0
|
|
Total capital
|
14.5
|
|
13.7
|
|
8.0
|
|
10.0
|
|
Leverage ratio:
|
|
|
|
|
||||
Tier 1 leverage
(a)
|
7.5
|
|
7.5
|
|
4.0
|
|
5.0
|
|
(a)
|
As the Tier 1 leverage ratio is a not risk-based measure of capital, the ratios presented in the table reflect the same calculation.
|
(b)
|
Represents the minimum capital ratios for 2015 currently applicable to the Firm under Basel III.
|
(c)
|
Represents the minimum capital ratios for 2015 currently applicable to the Firm under the PCA requirements of the FDICIA.
|
•
|
Integrate firmwide and line of business capital management activities;
|
•
|
Measure performance consistently across all lines of business; and
|
•
|
Provide comparability with peer firms for each of the lines of business
|
Line of business equity
|
|
|
||||||
(in billions)
|
|
March 31, 2015
|
|
December 31, 2014
|
||||
Consumer & Community Banking
|
|
$
|
51.0
|
|
|
$
|
51.0
|
|
Corporate & Investment Bank
|
|
62.0
|
|
|
61.0
|
|
||
Commercial Banking
|
|
14.0
|
|
|
14.0
|
|
||
Asset Management
|
|
9.0
|
|
|
9.0
|
|
||
Corporate
|
|
78.4
|
|
|
76.7
|
|
||
Total common stockholders’ equity
|
|
$
|
214.4
|
|
|
$
|
211.7
|
|
Line of business equity
|
|
Quarterly average
|
||||||||||
(in billions)
|
|
1Q15
|
|
|
4Q14
|
|
|
1Q14
|
|
|||
Consumer & Community Banking
|
|
$
|
51.0
|
|
|
$
|
51.0
|
|
|
$
|
51.0
|
|
Corporate & Investment Bank
|
|
62.0
|
|
|
61.0
|
|
|
61.0
|
|
|||
Commercial Banking
|
|
14.0
|
|
|
14.0
|
|
|
14.0
|
|
|||
Asset Management
|
|
9.0
|
|
|
9.0
|
|
|
9.0
|
|
|||
Corporate
|
|
76.4
|
|
|
76.9
|
|
|
66.8
|
|
|||
Total common stockholders’ equity
|
|
$
|
212.4
|
|
|
$
|
211.9
|
|
|
$
|
201.8
|
|
LIQUIDITY RISK MANAGEMENT
|
(a)
|
Predominantly cash on deposit at central banks.
|
(b)
|
Predominantly includes U.S. agency mortgage-backed securities, U.S. Treasuries, and sovereign bonds.
|
|
March 31, 2015
|
December 31, 2014
|
|
Three months ended March 31,
|
|||||||||
Deposits
|
|
Average
|
|||||||||||
(in millions)
|
|
2015
|
2014
|
||||||||||
Consumer & Community Banking
|
$
|
531,027
|
|
$
|
502,520
|
|
|
$
|
512,157
|
|
$
|
471,581
|
|
Corporate & Investment Bank
|
456,391
|
|
468,423
|
|
|
445,631
|
|
411,222
|
|
||||
Commercial Banking
|
205,076
|
|
213,682
|
|
|
197,405
|
|
188,786
|
|
||||
Asset Management
|
155,347
|
|
155,247
|
|
|
158,240
|
|
149,432
|
|
||||
Corporate
|
20,046
|
|
23,555
|
|
|
23,080
|
|
23,258
|
|
||||
Total Firm
|
$
|
1,367,887
|
|
$
|
1,363,427
|
|
|
$
|
1,336,513
|
|
$
|
1,244,279
|
|
|
March 31, 2015
|
December 31, 2014
|
|
Three months ended March 31,
|
|||||||||
Sources of funds (excluding deposits)
|
|
Average
|
|||||||||||
(in millions)
|
|
2015
|
2014
|
||||||||||
Commercial paper:
|
|
|
|
|
|
||||||||
Wholesale funding
|
$
|
18,270
|
|
$
|
24,052
|
|
|
$
|
21,723
|
|
$
|
19,026
|
|
Client cash management
|
37,385
|
|
42,292
|
|
|
38,290
|
|
39,656
|
|
||||
Total commercial paper
|
$
|
55,655
|
|
$
|
66,344
|
|
|
$
|
60,013
|
|
$
|
58,682
|
|
|
|
|
|
|
|
||||||||
Obligations of Firm-administered multi-seller conduits
(a)
|
$
|
11,770
|
|
$
|
12,047
|
|
|
$
|
11,472
|
|
$
|
13,776
|
|
Other borrowed funds
|
$
|
29,035
|
|
$
|
30,222
|
|
|
$
|
31,443
|
|
$
|
29,432
|
|
|
|
|
|
|
|
||||||||
Securities loaned or sold under agreements to repurchase:
|
|
|
|
|
|
||||||||
Securities sold under agreements to repurchase
|
$
|
172,989
|
|
$
|
167,077
|
|
|
$
|
174,077
|
|
$
|
172,737
|
|
Securities loaned
|
19,477
|
|
21,798
|
|
|
22,597
|
|
22,742
|
|
||||
Total securities loaned or sold under agreements to repurchase
(b)(c)(d)
|
$
|
192,466
|
|
$
|
188,875
|
|
|
$
|
196,674
|
|
$
|
195,479
|
|
|
|
|
|
|
|
||||||||
Total senior notes
|
$
|
145,376
|
|
$
|
142,480
|
|
|
$
|
145,320
|
|
$
|
137,699
|
|
Trust preferred securities
|
5,510
|
|
5,496
|
|
|
5,509
|
|
5,456
|
|
||||
Subordinated debt
|
28,247
|
|
29,472
|
|
|
29,282
|
|
29,404
|
|
||||
Structured notes
|
30,401
|
|
30,021
|
|
|
30,419
|
|
28,940
|
|
||||
Total long-term unsecured funding
|
$
|
209,534
|
|
$
|
207,469
|
|
|
$
|
210,530
|
|
$
|
201,499
|
|
|
|
|
|
|
|
||||||||
Credit card securitization
|
$
|
31,370
|
|
$
|
31,239
|
|
|
$
|
30,600
|
|
$
|
27,557
|
|
Other securitizations
(e)
|
1,943
|
|
2,008
|
|
|
2,006
|
|
3,242
|
|
||||
FHLB advances
|
66,692
|
|
64,994
|
|
|
64,465
|
|
61,304
|
|
||||
Other long-term secured funding
(f)
|
4,382
|
|
4,373
|
|
|
4,323
|
|
6,600
|
|
||||
Total long-term secured funding
|
$
|
104,387
|
|
$
|
102,614
|
|
|
$
|
101,394
|
|
$
|
98,703
|
|
|
|
|
|
|
|
||||||||
Preferred stock
(g)
|
$
|
21,493
|
|
$
|
20,063
|
|
|
$
|
20,825
|
|
$
|
13,556
|
|
Common stockholders’ equity
(g)
|
$
|
214,371
|
|
$
|
211,664
|
|
|
$
|
212,352
|
|
$
|
201,797
|
|
(a)
|
Included in beneficial interests issued by consolidated variable interest entities on the Firm’s Consolidated balance sheets.
|
(b)
|
Excludes federal funds purchased.
|
(c)
|
Excluded long-term structured repurchase agreements of
$3.6 billion
and
$2.7 billion
as of
March 31, 2015
, and December 31, 2014, respectively, and average balance of
$3.0 billion
and
$4.7 billion
for the three months ended
March 31, 2015
and 2014, respectively.
|
(d)
|
Excluded average balance of long-term securities loaned of
$97 million
for the three months ended March 31, 2014. There were no long-term securities loaned for the other periods presented.
|
(e)
|
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.
|
(f)
|
Includes long-term structured notes which are secured.
|
(g)
|
For additional information on preferred stock and common stockholders’ equity see Capital Management on
pages 55–63
and the Consolidated statements of changes in stockholders’ equity on
page 77
; and Note 22 and Note 23 of JPMorgan Chase’s 2014 Annual Report.
|
Long-term unsecured funding
|
Three months ended
March 31,
|
|||||
(in millions)
|
2015
|
2014
|
||||
Issuance
|
|
|
||||
Senior notes issued in the U.S. market
|
$
|
9,885
|
|
$
|
9,487
|
|
Senior notes issued in non-U.S. markets
|
4,242
|
|
3,848
|
|
||
Total senior notes
|
14,127
|
|
13,335
|
|
||
Structured notes
|
6,913
|
|
5,736
|
|
||
Total long-term unsecured funding – issuance
|
$
|
21,040
|
|
$
|
19,071
|
|
|
|
|
||||
Maturities/redemptions
|
|
|
||||
Total senior notes
|
$
|
9,195
|
|
$
|
8,817
|
|
Subordinated debt
|
806
|
|
600
|
|
||
Structured notes
|
5,820
|
|
4,816
|
|
||
Total long-term unsecured funding – maturities/redemptions
|
$
|
15,821
|
|
$
|
14,233
|
|
|
Three months ended March 31,
|
||||||||||||
Long-term secured funding
|
Issuance
|
|
Maturities/Redemptions
|
||||||||||
(in millions)
|
2015
|
2014
|
|
2015
|
2014
|
||||||||
Credit card securitization
|
$
|
2,476
|
|
$
|
1,750
|
|
|
$
|
2,345
|
|
$
|
1,301
|
|
Other securitizations
(a)
|
—
|
|
—
|
|
|
65
|
|
92
|
|
||||
FHLB advances
|
4,700
|
|
1,000
|
|
|
3,001
|
|
1,009
|
|
||||
Other long-term secured funding
|
$
|
124
|
|
$
|
40
|
|
|
$
|
118
|
|
$
|
97
|
|
Total long-term secured funding
|
$
|
7,300
|
|
$
|
2,790
|
|
|
$
|
5,529
|
|
$
|
2,499
|
|
(a)
|
Other securitizations includes securitizations of residential mortgages and student loans.
|
|
JPMorgan Chase & Co.
|
|
JPMorgan Chase Bank, N.A.
Chase Bank USA, N.A.
|
|
J.P. Morgan Securities LLC
|
||||||
March 31, 2015
|
Long-term issuer
|
Short-term issuer
|
Outlook
|
|
Long-term issuer
|
Short-term issuer
|
Outlook
|
|
Long-term issuer
|
Short-term issuer
|
Outlook
|
Moody’s Investor Services
|
A3
|
P-2
|
Stable
|
|
Aa3
|
P-1
|
Stable
|
|
Aa3
|
P-1
|
Stable
|
Standard & Poor’s
|
A
|
A-1
|
Negative
|
|
A+
|
A-1
|
Stable
|
|
A+
|
A-1
|
Stable
|
Fitch Ratings
|
A+
|
F1
|
Stable
|
|
A+
|
F1
|
Stable
|
|
A+
|
F1
|
Stable
|
SUPERVISION AND REGULATION
|
CRITICAL ACCOUNTING ESTIMATES USED BY THE FIRM
|
•
|
For PCI loans, a combined
5%
decline in housing prices and a
1%
increase in unemployment from current levels could imply an increase to modeled credit loss estimates of approximately
$1.0 billion
.
|
•
|
For the residential real estate portfolio, excluding PCI loans, a combined
5%
decline in housing prices and a
1%
increase in unemployment from current levels could
|
•
|
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
$1.8 billion
.
|
•
|
A 100 basis point increase in estimated loss given default for the Firm’s entire wholesale loan portfolio could imply an increase in the Firm’s modeled loss estimates of approximately
$150 million
.
|
March 31, 2015
(in billions, except ratio data)
|
Total assets at fair value
|
Total level 3 assets
|
|||||
Trading debt and equity instruments
|
$
|
317.4
|
|
|
$
|
19.2
|
|
Derivative receivables
|
81.6
|
|
|
12.9
|
|
||
Trading assets
|
399.0
|
|
|
32.1
|
|
||
AFS securities
|
281.9
|
|
|
1.0
|
|
||
Loans
|
2.3
|
|
|
2.2
|
|
||
MSRs
|
6.6
|
|
|
6.6
|
|
||
Private equity investments
(a)
|
3.0
|
|
|
2.3
|
|
||
Other
|
36.2
|
|
|
1.8
|
|
||
Total assets measured
at fair value on a recurring basis
|
729.0
|
|
|
46.0
|
|
||
Total assets measured at fair value on a nonrecurring basis
|
3.5
|
|
|
2.2
|
|
||
Total assets measured
at fair value
|
$
|
732.5
|
|
|
$
|
48.2
|
|
Total Firm assets
|
$
|
2,577.1
|
|
|
|
||
Level 3 assets as a percentage of total Firm assets
|
|
|
1.9
|
%
|
|||
Level 3 assets as a percentage of total Firm assets at fair value
|
|
|
6.6
|
%
|
(a)
|
Private equity instruments represent investments within the Corporate
|
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;
|
•
|
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 consumer businesses;
|
•
|
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 qualified 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;
|
•
|
Ability of the Firm to maintain the security of its financial, accounting, technology, data processing and other operating systems and facilities;
|
|
|
Three months ended March 31,
|
||||||
(in millions, except per share data)
|
|
2015
|
|
2014
|
||||
Revenue
|
|
|
|
|
||||
Investment banking fees
|
|
$
|
1,794
|
|
|
$
|
1,420
|
|
Principal transactions
|
|
3,655
|
|
|
3,322
|
|
||
Lending- and deposit-related fees
|
|
1,363
|
|
|
1,405
|
|
||
Asset management, administration and commissions
|
|
3,807
|
|
|
3,836
|
|
||
Securities gains
(a)
|
|
52
|
|
|
30
|
|
||
Mortgage fees and related income
|
|
705
|
|
|
514
|
|
||
Card income
|
|
1,431
|
|
|
1,408
|
|
||
Other income
|
|
582
|
|
|
613
|
|
||
Noninterest revenue
|
|
13,389
|
|
|
12,548
|
|
||
Interest income
|
|
12,565
|
|
|
12,793
|
|
||
Interest expense
|
|
1,888
|
|
|
2,126
|
|
||
Net interest income
|
|
10,677
|
|
|
10,667
|
|
||
Total net revenue
|
|
24,066
|
|
|
23,215
|
|
||
|
|
|
|
|
||||
Provision for credit losses
|
|
959
|
|
|
850
|
|
||
|
|
|
|
|
||||
Noninterest expense
|
|
|
|
|
||||
Compensation expense
|
|
8,043
|
|
|
7,859
|
|
||
Occupancy expense
|
|
933
|
|
|
952
|
|
||
Technology, communications and equipment expense
|
|
1,491
|
|
|
1,411
|
|
||
Professional and outside services
|
|
1,634
|
|
|
1,786
|
|
||
Marketing
|
|
591
|
|
|
564
|
|
||
Other expense
|
|
2,191
|
|
|
2,064
|
|
||
Total noninterest expense
|
|
14,883
|
|
|
14,636
|
|
||
Income before income tax expense
|
|
8,224
|
|
|
7,729
|
|
||
Income tax expense
|
|
2,310
|
|
|
2,460
|
|
||
Net income
|
|
$
|
5,914
|
|
|
$
|
5,269
|
|
Net income applicable to common stockholders
|
|
$
|
5,452
|
|
|
$
|
4,893
|
|
Net income per common share data
|
|
|
|
|
||||
Basic earnings per share
|
|
$
|
1.46
|
|
|
$
|
1.29
|
|
Diluted earnings per share
|
|
1.45
|
|
|
1.28
|
|
||
|
|
|
|
|
||||
Weighted-average basic shares
|
|
3,725.3
|
|
|
3,787.2
|
|
||
Weighted-average diluted shares
|
|
3,757.5
|
|
|
3,823.6
|
|
||
Cash dividends declared per common share
|
|
$
|
0.40
|
|
|
$
|
0.38
|
|
(a)
|
The Firm recognized other-than-temporary impairment (“OTTI”) losses of
$1 million
and
$3 million
for the three months ended March 31, 2015, and 2014, respectively.
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
||||||
(in millions)
|
|
2015
|
|
2014
|
||||
Net income
|
|
$
|
5,914
|
|
|
$
|
5,269
|
|
Other comprehensive income, after–tax
|
|
|
|
|
||||
Unrealized gains/(losses) on investment securities
|
|
89
|
|
|
994
|
|
||
Translation adjustments, net of hedges
|
|
(10
|
)
|
|
(2
|
)
|
||
Cash flow hedges
|
|
77
|
|
|
59
|
|
||
Defined benefit pension and OPEB plans
|
|
85
|
|
|
26
|
|
||
Total other comprehensive income, after–tax
|
|
241
|
|
|
1,077
|
|
||
Comprehensive income
|
|
$
|
6,155
|
|
|
$
|
6,346
|
|
(in millions, except share data)
|
Mar 31, 2015
|
|
Dec 31, 2014
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
22,821
|
|
|
$
|
27,831
|
|
Deposits with banks
|
506,383
|
|
|
484,477
|
|
||
Federal funds sold and securities purchased under resale agreements (included
$29,299
and $28,585 at fair value)
|
219,344
|
|
|
215,803
|
|
||
Securities borrowed (included
$792
and $992 at fair value)
|
108,376
|
|
|
110,435
|
|
||
Trading assets (included assets pledged of
$129,572
and $125,034)
|
398,981
|
|
|
398,988
|
|
||
Securities (included
$281,872
and $298,752 at fair value and assets pledged of
$30,632
and $24,912)
|
331,136
|
|
|
348,004
|
|
||
Loans (included
$2,290
and $2,611 at fair value)
|
764,185
|
|
|
757,336
|
|
||
Allowance for loan losses
|
(14,065
|
)
|
|
(14,185
|
)
|
||
Loans, net of allowance for loan losses
|
750,120
|
|
|
743,151
|
|
||
Accrued interest and accounts receivable
|
70,006
|
|
|
70,079
|
|
||
Premises and equipment
|
14,963
|
|
|
15,133
|
|
||
Goodwill
|
47,453
|
|
|
47,647
|
|
||
Mortgage servicing rights
|
6,641
|
|
|
7,436
|
|
||
Other intangible assets
|
1,128
|
|
|
1,192
|
|
||
Other assets (included
$9,119
and $11,909 at fair value and assets pledged of
$1,196
and $1,399)
|
99,796
|
|
|
102,597
|
|
||
Total assets
(a)
|
$
|
2,577,148
|
|
|
$
|
2,572,773
|
|
Liabilities
|
|
|
|
||||
Deposits (included
$10,950
and $8,807 at fair value)
|
$
|
1,367,887
|
|
|
$
|
1,363,427
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements (included
$3,628
and $2,979 at fair value)
|
196,578
|
|
|
192,101
|
|
||
Commercial paper
|
55,655
|
|
|
66,344
|
|
||
Other borrowed funds (included
$14,459
and $14,739 at fair value)
|
29,035
|
|
|
30,222
|
|
||
Trading liabilities
|
158,273
|
|
|
152,815
|
|
||
Accounts payable and other liabilities (included
$23
and $26 at fair value)
|
202,157
|
|
|
206,939
|
|
||
Beneficial interests issued by consolidated variable interest entities (included
$1,281
and $2,162 at fair value)
|
51,091
|
|
|
52,362
|
|
||
Long-term debt (included
$30,633
and $30,226 at fair value)
|
280,608
|
|
|
276,836
|
|
||
Total liabilities
(a)
|
2,341,284
|
|
|
2,341,046
|
|
||
Commitments and contingencies (see Notes 21 and 23)
|
|
|
|
|
|
||
Stockholders’ equity
|
|
|
|
||||
Preferred stock ($1 par value; authorized 200,000,000 shares; issued
2,149,250
and 2,006,250 shares)
|
21,493
|
|
|
20,063
|
|
||
Common stock ($1 par value; authorized 9,000,000,000 shares; issued
4,104,933,895
shares)
|
4,105
|
|
|
4,105
|
|
||
Additional paid-in capital
|
92,245
|
|
|
93,270
|
|
||
Retained earnings
|
134,048
|
|
|
129,977
|
|
||
Accumulated other comprehensive income
|
2,430
|
|
|
2,189
|
|
||
Shares held in RSU Trust, at cost (472,953 shares)
|
(21
|
)
|
|
(21
|
)
|
||
Treasury stock, at cost (393,846,744
and 390,144,630 shares)
|
(18,436
|
)
|
|
(17,856
|
)
|
||
Total stockholders’ equity
|
235,864
|
|
|
231,727
|
|
||
Total liabilities and stockholders’ equity
|
$
|
2,577,148
|
|
|
$
|
2,572,773
|
|
(a)
|
The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at
March 31, 2015
, and
December 31, 2014
. The difference between total VIE assets and liabilities represents the Firm’s interests in those entities, which were eliminated in consolidation.
|
(in millions)
|
Mar 31, 2015
|
|
Dec 31, 2014
|
||||
Assets
|
|
|
|
||||
Trading assets
|
$
|
7,703
|
|
|
$
|
9,090
|
|
Loans
|
67,184
|
|
|
68,880
|
|
||
All other assets
|
2,350
|
|
|
1,815
|
|
||
Total assets
|
$
|
77,237
|
|
|
$
|
79,785
|
|
Liabilities
|
|
|
|
||||
Beneficial interests issued by consolidated variable interest entities
|
$
|
51,091
|
|
|
$
|
52,362
|
|
All other liabilities
|
911
|
|
|
949
|
|
||
Total liabilities
|
$
|
52,002
|
|
|
$
|
53,311
|
|
|
|
Three months ended March 31,
|
||||||
(in millions, except per share data)
|
|
2015
|
|
2014
|
||||
Preferred stock
|
|
|
|
|
||||
Balance at January 1
|
|
$
|
20,063
|
|
|
$
|
11,158
|
|
Issuance of preferred stock
|
|
1,430
|
|
|
3,925
|
|
||
Balance at March 31
|
|
21,493
|
|
|
15,083
|
|
||
Common stock
|
|
|
|
|
||||
Balance at January 1 and March 31
|
|
4,105
|
|
|
4,105
|
|
||
Additional paid-in capital
|
|
|
|
|
||||
Balance at January 1
|
|
93,270
|
|
|
93,828
|
|
||
Shares issued and commitments to issue common stock for employee stock-based compensation awards, and related tax effects
|
|
(987
|
)
|
|
(1,179
|
)
|
||
Other
|
|
(38
|
)
|
|
(26
|
)
|
||
Balance at March 31
|
|
92,245
|
|
|
92,623
|
|
||
Retained earnings
|
|
|
|
|
||||
Balance at January 1
|
|
129,977
|
|
|
115,756
|
|
||
Cumulative effect of change in accounting principle
|
|
—
|
|
|
(321
|
)
|
||
Balance at beginning of year, adjusted
|
|
129,977
|
|
|
115,435
|
|
||
Net income
|
|
5,914
|
|
|
5,269
|
|
||
Dividends declared:
|
|
|
|
|
||||
Preferred stock
|
|
(324
|
)
|
|
(227
|
)
|
||
Common stock (
$0.40
and $0.38 per share)
|
|
(1,519
|
)
|
|
(1,485
|
)
|
||
Balance at March 31
|
|
134,048
|
|
|
118,992
|
|
||
Accumulated other comprehensive income
|
|
|
|
|
||||
Balance at January 1
|
|
2,189
|
|
|
1,199
|
|
||
Other comprehensive income
|
|
241
|
|
|
1,077
|
|
||
Balance at March 31
|
|
2,430
|
|
|
2,276
|
|
||
Shares held in RSU Trust, at cost
|
|
|
|
|
||||
Balance at January 1 and March 31
|
|
(21
|
)
|
|
(21
|
)
|
||
Treasury stock, at cost
|
|
|
|
|
||||
Balance at January 1
|
|
(17,856
|
)
|
|
(14,847
|
)
|
||
Purchase of treasury stock
|
|
(1,900
|
)
|
|
(386
|
)
|
||
Reissuance from treasury stock
|
|
1,320
|
|
|
1,504
|
|
||
Balance at March 31
|
|
(18,436
|
)
|
|
(13,729
|
)
|
||
Total stockholders
’
equity
|
|
$
|
235,864
|
|
|
$
|
219,329
|
|
|
Three months ended March 31,
|
||||||
(in millions)
|
2015
|
|
2014
|
||||
Operating activities
|
|
|
|
||||
Net income
|
$
|
5,914
|
|
|
$
|
5,269
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Provision for credit losses
|
959
|
|
|
850
|
|
||
Depreciation and amortization
|
1,181
|
|
|
1,208
|
|
||
Deferred tax expense
|
33
|
|
|
2,832
|
|
||
Investment securities gains
|
(52
|
)
|
|
(30
|
)
|
||
Stock-based compensation
|
565
|
|
|
618
|
|
||
Originations and purchases of loans held-for-sale
|
(8,856
|
)
|
|
(12,926
|
)
|
||
Proceeds from sales, securitizations and paydowns of loans held-for-sale
|
10,646
|
|
|
16,898
|
|
||
Net change in:
|
|
|
|
||||
Trading assets
|
5,450
|
|
|
4,010
|
|
||
Securities borrowed
|
2,057
|
|
|
(10,559
|
)
|
||
Accrued interest and accounts receivable
|
(27
|
)
|
|
(9,090
|
)
|
||
Other assets
|
(10,199
|
)
|
|
13,142
|
|
||
Trading liabilities
|
17,349
|
|
|
(1,951
|
)
|
||
Accounts payable and other liabilities
|
(6,482
|
)
|
|
2,271
|
|
||
Other operating adjustments
|
(3,659
|
)
|
|
2,125
|
|
||
Net cash provided by operating activities
|
14,879
|
|
|
14,667
|
|
||
Investing activities
|
|
|
|
||||
Net change in:
|
|
|
|
||||
Deposits with banks
|
(21,906
|
)
|
|
(56,480
|
)
|
||
Federal funds sold and securities purchased under resale agreements
|
(3,468
|
)
|
|
(17,092
|
)
|
||
Held-to-maturity securities:
|
|
|
|
||||
Proceeds from paydowns and maturities
|
1,379
|
|
|
639
|
|
||
Purchases
|
(1,459
|
)
|
|
(4,649
|
)
|
||
Available-for-sale securities:
|
|
|
|
||||
Proceeds from paydowns and maturities
|
25,221
|
|
|
22,485
|
|
||
Proceeds from sales
|
6,909
|
|
|
10,906
|
|
||
Purchases
|
(21,663
|
)
|
|
(24,775
|
)
|
||
Proceeds from sales and securitizations of loans held-for-investment
|
4,661
|
|
|
4,396
|
|
||
Other changes in loans, net
|
(15,768
|
)
|
|
(3,260
|
)
|
||
Net cash provided by business acquisitions or dispositions
|
1,272
|
|
|
—
|
|
||
All other investing activities, net
|
672
|
|
|
(580
|
)
|
||
Net cash used in investing activities
|
(24,150
|
)
|
|
(68,410
|
)
|
||
Financing activities
|
|
|
|
||||
Net change in:
|
|
|
|
||||
Deposits
|
8,967
|
|
|
(5,320
|
)
|
||
Federal funds purchased and securities loaned or sold under repurchase agreements
|
4,468
|
|
|
36,263
|
|
||
Commercial paper and other borrowed funds
|
(11,885
|
)
|
|
6,486
|
|
||
Beneficial interests issued by consolidated variable interest entities
|
(510
|
)
|
|
(3,246
|
)
|
||
Proceeds from long-term borrowings
|
28,395
|
|
|
22,064
|
|
||
Payments of long-term borrowings
|
(22,183
|
)
|
|
(17,000
|
)
|
||
Excess tax benefits related to stock-based compensation
|
262
|
|
|
339
|
|
||
Proceeds from issuance of preferred stock
|
1,392
|
|
|
3,895
|
|
||
Treasury stock purchased
|
(1,900
|
)
|
|
(386
|
)
|
||
Dividends paid
|
(1,770
|
)
|
|
(1,554
|
)
|
||
All other financing activities, net
|
(899
|
)
|
|
(1,223
|
)
|
||
Net cash provided by financing activities
|
4,337
|
|
|
40,318
|
|
||
Effect of exchange rate changes on cash and due from banks
|
(76
|
)
|
|
(25
|
)
|
||
Net decrease in cash and due from banks
|
(5,010
|
)
|
|
(13,450
|
)
|
||
Cash and due from banks at the beginning of the period
|
27,831
|
|
|
39,771
|
|
||
Cash and due from banks at the end of the period
|
$
|
22,821
|
|
|
$
|
26,321
|
|
Cash interest paid
|
$
|
1,601
|
|
|
$
|
1,092
|
|
Cash income taxes paid, net
|
608
|
|
|
270
|
|
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
|
|
Derivative netting adjustments
|
|
|||||||||||||
March 31, 2015 (in millions)
|
Level 1
|
Level 2
|
|
Level 3
|
|
Total fair value
|
|||||||||||
Federal funds sold and securities purchased under resale agreements
|
$
|
—
|
|
$
|
29,299
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
29,299
|
|
Securities borrowed
|
—
|
|
792
|
|
|
—
|
|
|
—
|
|
792
|
|
|||||
Trading assets:
|
|
|
|
|
|
|
|
||||||||||
Debt instruments:
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||||
U.S. government agencies
(a)
|
—
|
|
23,873
|
|
|
888
|
|
|
—
|
|
24,761
|
|
|||||
Residential – nonagency
|
—
|
|
1,466
|
|
|
449
|
|
|
—
|
|
1,915
|
|
|||||
Commercial – nonagency
|
—
|
|
895
|
|
|
211
|
|
|
—
|
|
1,106
|
|
|||||
Total mortgage-backed securities
|
—
|
|
26,234
|
|
|
1,548
|
|
|
—
|
|
27,782
|
|
|||||
U.S. Treasury and government agencies
(a)
|
19,935
|
|
7,055
|
|
|
—
|
|
|
—
|
|
26,990
|
|
|||||
Obligations of U.S. states and municipalities
|
—
|
|
9,178
|
|
|
1,331
|
|
|
—
|
|
10,509
|
|
|||||
Certificates of deposit, bankers’ acceptances and commercial paper
|
—
|
|
1,570
|
|
|
—
|
|
|
—
|
|
1,570
|
|
|||||
Non-U.S. government debt securities
|
23,883
|
|
32,115
|
|
|
180
|
|
|
—
|
|
56,178
|
|
|||||
Corporate debt securities
|
—
|
|
28,579
|
|
|
2,759
|
|
|
—
|
|
31,338
|
|
|||||
Loans
(b)
|
—
|
|
21,246
|
|
|
10,763
|
|
|
—
|
|
32,009
|
|
|||||
Asset-backed securities
|
—
|
|
2,830
|
|
|
1,233
|
|
|
—
|
|
4,063
|
|
|||||
Total debt instruments
|
43,818
|
|
128,807
|
|
|
17,814
|
|
|
—
|
|
190,439
|
|
|||||
Equity securities
|
111,167
|
|
563
|
|
|
317
|
|
|
—
|
|
112,047
|
|
|||||
Physical commodities
(c)
|
3,881
|
|
1,169
|
|
|
—
|
|
|
—
|
|
5,050
|
|
|||||
Other
|
—
|
|
8,830
|
|
|
1,041
|
|
|
—
|
|
9,871
|
|
|||||
Total debt and equity instruments
(d)
|
158,866
|
|
139,369
|
|
|
19,172
|
|
|
—
|
|
317,407
|
|
|||||
Derivative receivables:
|
|
|
|
|
|
|
|
||||||||||
Interest rate
|
598
|
|
894,227
|
|
|
4,256
|
|
|
(862,933
|
)
|
36,148
|
|
|||||
Credit
|
—
|
|
60,642
|
|
|
2,694
|
|
|
(61,808
|
)
|
1,528
|
|
|||||
Foreign exchange
|
894
|
|
223,859
|
|
|
3,204
|
|
|
(202,261
|
)
|
25,696
|
|
|||||
Equity
|
—
|
|
43,644
|
|
|
2,245
|
|
|
(38,479
|
)
|
7,410
|
|
|||||
Commodity
|
199
|
|
38,537
|
|
|
452
|
|
|
(28,396
|
)
|
10,792
|
|
|||||
Total derivative receivables
(e)
|
1,691
|
|
1,260,909
|
|
|
12,851
|
|
|
(1,193,877
|
)
|
81,574
|
|
|||||
Total trading assets
|
160,557
|
|
1,400,278
|
|
|
32,023
|
|
|
(1,193,877
|
)
|
398,981
|
|
|||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||||
U.S. government agencies
(a)
|
—
|
|
65,556
|
|
|
—
|
|
|
—
|
|
65,556
|
|
|||||
Residential – nonagency
|
—
|
|
42,580
|
|
|
23
|
|
|
—
|
|
42,603
|
|
|||||
Commercial – nonagency
|
—
|
|
22,507
|
|
|
99
|
|
|
—
|
|
22,606
|
|
|||||
Total mortgage-backed securities
|
—
|
|
130,643
|
|
|
122
|
|
|
—
|
|
130,765
|
|
|||||
U.S. Treasury and government agencies
(a)
|
11,915
|
|
50
|
|
|
—
|
|
|
—
|
|
11,965
|
|
|||||
Obligations of U.S. states and municipalities
|
—
|
|
31,199
|
|
|
—
|
|
|
—
|
|
31,199
|
|
|||||
Certificates of deposit
|
—
|
|
1,023
|
|
|
—
|
|
|
—
|
|
1,023
|
|
|||||
Non-U.S. government debt securities
|
22,231
|
|
23,626
|
|
|
—
|
|
|
—
|
|
45,857
|
|
|||||
Corporate debt securities
|
—
|
|
17,191
|
|
|
—
|
|
|
—
|
|
17,191
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||||
Collateralized loan obligations
|
—
|
|
28,913
|
|
|
770
|
|
|
—
|
|
29,683
|
|
|||||
Other
|
—
|
|
11,753
|
|
|
111
|
|
|
—
|
|
11,864
|
|
|||||
Equity securities
|
2,325
|
|
—
|
|
|
—
|
|
|
—
|
|
2,325
|
|
|||||
Total available-for-sale securities
|
36,471
|
|
244,398
|
|
|
1,003
|
|
|
—
|
|
281,872
|
|
|||||
Loans
|
—
|
|
68
|
|
|
2,222
|
|
|
—
|
|
2,290
|
|
|||||
Mortgage servicing rights (“MSRs”)
|
—
|
|
—
|
|
|
6,641
|
|
|
—
|
|
6,641
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
||||||||||
Private equity investments
(f)
|
383
|
|
254
|
|
|
2,314
|
|
|
—
|
|
2,951
|
|
|||||
All other
|
4,026
|
|
326
|
|
|
1,816
|
|
|
—
|
|
6,168
|
|
|||||
Total other assets
|
4,409
|
|
580
|
|
|
4,130
|
|
|
—
|
|
9,119
|
|
|||||
Total assets measured at fair value on a recurring basis
|
$
|
201,437
|
|
$
|
1,675,415
|
|
(g)
|
$
|
46,019
|
|
(g)
|
$
|
(1,193,877
|
)
|
$
|
728,994
|
|
Deposits
|
$
|
—
|
|
$
|
7,610
|
|
|
$
|
3,340
|
|
|
$
|
—
|
|
$
|
10,950
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
—
|
|
3,628
|
|
|
—
|
|
|
—
|
|
3,628
|
|
|||||
Other borrowed funds
|
—
|
|
13,343
|
|
|
1,116
|
|
|
—
|
|
14,459
|
|
|||||
Trading liabilities:
|
|
|
|
|
|
|
|
|
|||||||||
Debt and equity instruments
(d)
|
65,431
|
|
18,924
|
|
|
82
|
|
|
—
|
|
84,437
|
|
|||||
Derivative payables:
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate
|
659
|
|
861,758
|
|
|
3,606
|
|
|
(848,133
|
)
|
17,890
|
|
|||||
Credit
|
—
|
|
60,006
|
|
|
2,419
|
|
|
(61,205
|
)
|
1,220
|
|
|||||
Foreign exchange
|
880
|
|
239,402
|
|
|
2,497
|
|
|
(215,685
|
)
|
27,094
|
|
|||||
Equity
|
—
|
|
47,704
|
|
|
4,990
|
|
|
(39,504
|
)
|
13,190
|
|
|||||
Commodity
|
124
|
|
40,649
|
|
|
1,187
|
|
|
(27,518
|
)
|
14,442
|
|
|||||
Total derivative payables
(e)
|
1,663
|
|
1,249,519
|
|
|
14,699
|
|
|
(1,192,045
|
)
|
73,836
|
|
|||||
Total trading liabilities
|
67,094
|
|
1,268,443
|
|
|
14,781
|
|
|
(1,192,045
|
)
|
158,273
|
|
|||||
Accounts payable and other liabilities
|
—
|
|
—
|
|
|
23
|
|
|
—
|
|
23
|
|
|||||
Beneficial interests issued by consolidated VIEs
|
—
|
|
258
|
|
|
1,023
|
|
|
—
|
|
1,281
|
|
|||||
Long-term debt
|
—
|
|
18,630
|
|
|
12,003
|
|
|
—
|
|
30,633
|
|
|||||
Total liabilities measured at fair value on a recurring basis
|
$
|
67,094
|
|
$
|
1,311,912
|
|
|
$
|
32,286
|
|
|
$
|
(1,192,045
|
)
|
$
|
219,247
|
|
|
Fair value hierarchy
|
|
Derivative netting adjustments
|
|
|
|||||||||||||
December 31, 2014 (in millions)
|
Level 1
|
Level 2
|
|
Level 3
|
|
|
Total fair value
|
|||||||||||
Federal funds sold and securities purchased under resale agreements
|
$
|
—
|
|
$
|
28,585
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,585
|
|
Securities borrowed
|
—
|
|
992
|
|
|
—
|
|
|
—
|
|
|
992
|
|
|||||
Trading assets:
|
|
|
|
|
|
|
|
|
||||||||||
Debt instruments:
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government agencies
(a)
|
14
|
|
31,904
|
|
|
922
|
|
|
—
|
|
|
32,840
|
|
|||||
Residential – nonagency
|
—
|
|
1,381
|
|
|
663
|
|
|
—
|
|
|
2,044
|
|
|||||
Commercial – nonagency
|
—
|
|
927
|
|
|
306
|
|
|
—
|
|
|
1,233
|
|
|||||
Total mortgage-backed securities
|
14
|
|
34,212
|
|
|
1,891
|
|
|
—
|
|
|
36,117
|
|
|||||
U.S. Treasury and government agencies
(a)
|
17,816
|
|
8,460
|
|
|
—
|
|
|
—
|
|
|
26,276
|
|
|||||
Obligations of U.S. states and municipalities
|
—
|
|
9,298
|
|
|
1,273
|
|
|
—
|
|
|
10,571
|
|
|||||
Certificates of deposit, bankers’ acceptances and commercial paper
|
—
|
|
1,429
|
|
|
—
|
|
|
—
|
|
|
1,429
|
|
|||||
Non-U.S. government debt securities
|
25,854
|
|
27,294
|
|
|
302
|
|
|
—
|
|
|
53,450
|
|
|||||
Corporate debt securities
|
—
|
|
28,099
|
|
|
2,989
|
|
|
—
|
|
|
31,088
|
|
|||||
Loans
(b)
|
—
|
|
23,080
|
|
|
13,287
|
|
|
—
|
|
|
36,367
|
|
|||||
Asset-backed securities
|
—
|
|
3,088
|
|
|
1,264
|
|
|
—
|
|
|
4,352
|
|
|||||
Total debt instruments
|
43,684
|
|
134,960
|
|
|
21,006
|
|
|
—
|
|
|
199,650
|
|
|||||
Equity securities
|
104,890
|
|
748
|
|
|
431
|
|
|
—
|
|
|
106,069
|
|
|||||
Physical commodities
(c)
|
2,739
|
|
1,741
|
|
|
2
|
|
|
—
|
|
|
4,482
|
|
|||||
Other
|
—
|
|
8,762
|
|
|
1,050
|
|
|
—
|
|
|
9,812
|
|
|||||
Total debt and equity instruments
(d)
|
151,313
|
|
146,211
|
|
|
22,489
|
|
|
—
|
|
|
320,013
|
|
|||||
Derivative receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate
|
473
|
|
945,635
|
|
(h)
|
4,149
|
|
|
(916,532
|
)
|
(h)
|
33,725
|
|
|||||
Credit
|
—
|
|
73,853
|
|
|
2,989
|
|
|
(75,004
|
)
|
|
1,838
|
|
|||||
Foreign exchange
|
758
|
|
212,153
|
|
(h)
|
2,276
|
|
|
(193,934
|
)
|
(h)
|
21,253
|
|
|||||
Equity
|
—
|
|
39,937
|
|
(h)
|
2,552
|
|
|
(34,312
|
)
|
(h)
|
8,177
|
|
|||||
Commodity
|
247
|
|
42,807
|
|
|
599
|
|
|
(29,671
|
)
|
|
13,982
|
|
|||||
Total derivative receivables
(e)
|
1,478
|
|
1,314,385
|
|
(h)
|
12,565
|
|
|
(1,249,453
|
)
|
(h)
|
78,975
|
|
|||||
Total trading assets
|
152,791
|
|
1,460,596
|
|
(h)
|
35,054
|
|
|
(1,249,453
|
)
|
(h)
|
398,988
|
|
|||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. government agencies
(a)
|
—
|
|
65,319
|
|
|
—
|
|
|
—
|
|
|
65,319
|
|
|||||
Residential – nonagency
|
—
|
|
50,865
|
|
|
30
|
|
|
—
|
|
|
50,895
|
|
|||||
Commercial – nonagency
|
—
|
|
21,009
|
|
|
99
|
|
|
—
|
|
|
21,108
|
|
|||||
Total mortgage-backed securities
|
—
|
|
137,193
|
|
|
129
|
|
|
—
|
|
|
137,322
|
|
|||||
U.S. Treasury and government agencies
(a)
|
13,591
|
|
54
|
|
|
—
|
|
|
—
|
|
|
13,645
|
|
|||||
Obligations of U.S. states and municipalities
|
—
|
|
30,068
|
|
|
—
|
|
|
—
|
|
|
30,068
|
|
|||||
Certificates of deposit
|
—
|
|
1,103
|
|
|
—
|
|
|
—
|
|
|
1,103
|
|
|||||
Non-U.S. government debt securities
|
24,074
|
|
28,669
|
|
|
—
|
|
|
—
|
|
|
52,743
|
|
|||||
Corporate debt securities
|
—
|
|
18,532
|
|
|
—
|
|
|
—
|
|
|
18,532
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Collateralized loan obligations
|
—
|
|
29,402
|
|
|
792
|
|
|
—
|
|
|
30,194
|
|
|||||
Other
|
—
|
|
12,499
|
|
|
116
|
|
|
—
|
|
|
12,615
|
|
|||||
Equity securities
|
2,530
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,530
|
|
|||||
Total available-for-sale securities
|
40,195
|
|
257,520
|
|
|
1,037
|
|
|
—
|
|
|
298,752
|
|
|||||
Loans
|
—
|
|
70
|
|
|
2,541
|
|
|
—
|
|
|
2,611
|
|
|||||
Mortgage servicing rights
|
—
|
|
—
|
|
|
7,436
|
|
|
—
|
|
|
7,436
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
—
|
|
|
|
|||||||
Private equity investments
(f)
|
648
|
|
2,624
|
|
|
2,475
|
|
|
—
|
|
|
5,747
|
|
|||||
All other
|
4,018
|
|
230
|
|
|
1,914
|
|
|
—
|
|
|
6,162
|
|
|||||
Total other assets
|
4,666
|
|
2,854
|
|
|
4,389
|
|
|
—
|
|
|
11,909
|
|
|||||
Total assets measured at fair value on a recurring basis
|
$
|
197,652
|
|
$
|
1,750,617
|
|
(g)(h)
|
$
|
50,457
|
|
(g)
|
$
|
(1,249,453
|
)
|
(h)
|
$
|
749,273
|
|
Deposits
|
$
|
—
|
|
$
|
5,948
|
|
|
$
|
2,859
|
|
|
$
|
—
|
|
|
$
|
8,807
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
—
|
|
2,979
|
|
|
—
|
|
|
—
|
|
|
2,979
|
|
|||||
Other borrowed funds
|
—
|
|
13,286
|
|
|
1,453
|
|
|
—
|
|
|
14,739
|
|
|||||
Trading liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt and equity instruments
(d)
|
62,914
|
|
18,713
|
|
|
72
|
|
|
—
|
|
|
81,699
|
|
|||||
Derivative payables:
|
|
|
|
|
|
|
—
|
|
|
|
||||||||
Interest rate
|
499
|
|
914,357
|
|
(h)
|
3,523
|
|
|
(900,634
|
)
|
(h)
|
17,745
|
|
|||||
Credit
|
—
|
|
73,095
|
|
|
2,800
|
|
|
(74,302
|
)
|
|
1,593
|
|
|||||
Foreign exchange
|
746
|
|
221,066
|
|
(h)
|
2,802
|
|
|
(201,644
|
)
|
(h)
|
22,970
|
|
|||||
Equity
|
—
|
|
41,925
|
|
(h)
|
4,337
|
|
|
(34,522
|
)
|
(h)
|
11,740
|
|
|||||
Commodity
|
141
|
|
44,318
|
|
|
1,164
|
|
|
(28,555
|
)
|
|
17,068
|
|
|||||
Total derivative payables
(e)
|
1,386
|
|
1,294,761
|
|
(h)
|
14,626
|
|
|
(1,239,657
|
)
|
(h)
|
71,116
|
|
|||||
Total trading liabilities
|
64,300
|
|
1,313,474
|
|
(h)
|
14,698
|
|
|
(1,239,657
|
)
|
(h)
|
152,815
|
|
|||||
Accounts payable and other liabilities
|
—
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
|||||
Beneficial interests issued by consolidated VIEs
|
—
|
|
1,016
|
|
|
1,146
|
|
|
—
|
|
|
2,162
|
|
|||||
Long-term debt
|
—
|
|
18,349
|
|
|
11,877
|
|
|
—
|
|
|
30,226
|
|
|||||
Total liabilities measured at fair value on a recurring basis
|
$
|
64,300
|
|
$
|
1,355,052
|
|
(h)
|
$
|
32,059
|
|
|
$
|
(1,239,657
|
)
|
(h)
|
$
|
211,754
|
|
(a)
|
At
March 31, 2015
, and December 31, 2014, included total U.S. government-sponsored enterprise obligations of
$75.2 billion
and
$84.1 billion
, respectively, which were predominantly mortgage-related.
|
(b)
|
At
March 31, 2015
, and December 31, 2014, included within trading loans were
$13.3 billion
and
$17.0 billion
, respectively, of residential first-lien mortgages, and
$4.4 billion
and
$5.8 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
$6.0 billion
and
$7.7 billion
, respectively, and reverse mortgages of
$2.9 billion
and
$3.4 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 identical securities sold but not yet purchased (short positions).
|
(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
$2.3 billion
and
$2.5 billion
at
March 31, 2015
, and December 31, 2014, 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 line of business. The cost basis of the private equity investment portfolio totaled
$4.2 billion
and
$6.0 billion
at
March 31, 2015
, and December 31, 2014, respectively.
|
(g)
|
Includes investments in hedge funds, private equity funds, real estate and other funds that do not have readily determinable fair values. The Firm uses net asset value per share when measuring the fair value of these investments. At
March 31, 2015
, and December 31, 2014, the fair values of these investments were
$1.8 billion
and
$1.8 billion
, respectively, of which
$374 million
and
$337 million
, respectively, were classified in level 2, and
$1.4 billion
and
$1.4 billion
, respectively, in level 3.
|
(h)
|
The 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 its results of operations.
|
(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
$465 million
of credit derivative receivables and
$408 million
of credit derivative payables with underlying commercial mortgage risk have been included in the inputs and ranges provided for commercial mortgage-backed securities (“MBS”) and loans.
|
(c)
|
The unobservable inputs and associated input ranges for approximately
$746 million
of credit derivative receivables and
$654 million
of credit derivative payables with underlying asset-backed securities (“ABS”) 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
March 31, 2015
(in millions)
|
Fair value at January 1, 2015
|
Total realized/unrealized gains/(losses)
|
|
|
|
|
Transfers into and/or out of level 3
(h)
|
Fair value at
March 31, 2015
|
Change in unrealized gains/(losses) related
to financial instruments held at March 31, 2015
|
||||||||||||||||||||||
Purchases
(g)
|
Sales
|
|
Settlements
|
||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Debt instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. government agencies
|
$
|
922
|
|
$
|
(53
|
)
|
|
$
|
74
|
|
$
|
(17
|
)
|
|
$
|
(40
|
)
|
$
|
2
|
|
|
$
|
888
|
|
|
$
|
(52
|
)
|
|
||
Residential – nonagency
|
663
|
|
(10
|
)
|
|
152
|
|
(347
|
)
|
|
(6
|
)
|
(3
|
)
|
|
449
|
|
|
(34
|
)
|
|
||||||||||
Commercial – nonagency
|
306
|
|
(11
|
)
|
|
82
|
|
(151
|
)
|
|
(8
|
)
|
(7
|
)
|
|
211
|
|
|
(16
|
)
|
|
||||||||||
Total mortgage-backed securities
|
1,891
|
|
(74
|
)
|
|
308
|
|
(515
|
)
|
|
(54
|
)
|
(8
|
)
|
|
1,548
|
|
|
(102
|
)
|
|
||||||||||
Obligations of U.S. states and municipalities
|
1,273
|
|
10
|
|
|
144
|
|
(71
|
)
|
|
(25
|
)
|
—
|
|
|
1,331
|
|
|
8
|
|
|
||||||||||
Non-U.S. government debt securities
|
302
|
|
1
|
|
|
101
|
|
(92
|
)
|
|
(31
|
)
|
(101
|
)
|
|
180
|
|
|
1
|
|
|
||||||||||
Corporate debt securities
|
2,989
|
|
(55
|
)
|
|
533
|
|
(496
|
)
|
|
(92
|
)
|
(120
|
)
|
|
2,759
|
|
|
(26
|
)
|
|
||||||||||
Loans
|
13,287
|
|
(285
|
)
|
|
736
|
|
(1,997
|
)
|
|
(469
|
)
|
(509
|
)
|
|
10,763
|
|
|
(275
|
)
|
|
||||||||||
Asset-backed securities
|
1,264
|
|
(37
|
)
|
|
559
|
|
(521
|
)
|
|
32
|
|
(64
|
)
|
|
1,233
|
|
|
(44
|
)
|
|
||||||||||
Total debt instruments
|
21,006
|
|
(440
|
)
|
|
2,381
|
|
(3,692
|
)
|
|
(639
|
)
|
(802
|
)
|
|
17,814
|
|
|
(438
|
)
|
|
||||||||||
Equity securities
|
431
|
|
38
|
|
|
29
|
|
(110
|
)
|
|
(3
|
)
|
(68
|
)
|
|
317
|
|
|
31
|
|
|
||||||||||
Other
|
1,052
|
|
8
|
|
|
661
|
|
(584
|
)
|
|
(79
|
)
|
(17
|
)
|
|
1,041
|
|
|
15
|
|
|
||||||||||
Total trading assets – debt and equity instruments
|
22,489
|
|
(394
|
)
|
(c)
|
3,071
|
|
(4,386
|
)
|
|
(721
|
)
|
(887
|
)
|
|
19,172
|
|
|
(392
|
)
|
(c)
|
||||||||||
Net derivative receivables:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest rate
|
626
|
|
142
|
|
|
309
|
|
(74
|
)
|
|
(255
|
)
|
(98
|
)
|
|
650
|
|
|
308
|
|
|
||||||||||
Credit
|
189
|
|
77
|
|
|
9
|
|
(3
|
)
|
|
19
|
|
(16
|
)
|
|
275
|
|
|
75
|
|
|
||||||||||
Foreign exchange
|
(526
|
)
|
827
|
|
|
5
|
|
(3
|
)
|
|
201
|
|
203
|
|
|
707
|
|
|
779
|
|
|
||||||||||
Equity
|
(1,785
|
)
|
(476
|
)
|
|
208
|
|
(289
|
)
|
|
(355
|
)
|
(48
|
)
|
|
(2,745
|
)
|
|
(484
|
)
|
|
||||||||||
Commodity
|
(565
|
)
|
(40
|
)
|
|
—
|
|
—
|
|
|
(98
|
)
|
(32
|
)
|
|
(735
|
)
|
|
(49
|
)
|
|
||||||||||
Total net derivative receivables
|
(2,061
|
)
|
530
|
|
(c)
|
531
|
|
(369
|
)
|
|
(488
|
)
|
9
|
|
|
(1,848
|
)
|
|
629
|
|
(c)
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed securities
|
908
|
|
(9
|
)
|
|
49
|
|
(43
|
)
|
|
(24
|
)
|
—
|
|
|
881
|
|
|
(4
|
)
|
|
||||||||||
Other
|
129
|
|
—
|
|
|
—
|
|
—
|
|
|
(7
|
)
|
—
|
|
|
122
|
|
|
—
|
|
|
||||||||||
Total available-for-sale securities
|
1,037
|
|
(9
|
)
|
(d)
|
49
|
|
(43
|
)
|
|
(31
|
)
|
—
|
|
|
1,003
|
|
|
(4
|
)
|
(d)
|
||||||||||
Loans
|
2,541
|
|
(205
|
)
|
(c)
|
120
|
|
(83
|
)
|
|
(151
|
)
|
—
|
|
|
2,222
|
|
|
(205
|
)
|
(c)
|
||||||||||
Mortgage servicing rights
|
7,436
|
|
(579
|
)
|
(e)
|
156
|
|
(157
|
)
|
|
(215
|
)
|
—
|
|
|
6,641
|
|
|
(579
|
)
|
(e)
|
||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Private equity investments
|
2,475
|
|
36
|
|
(c)
|
—
|
|
—
|
|
|
(71
|
)
|
(126
|
)
|
|
2,314
|
|
|
21
|
|
(c)
|
||||||||||
All other
|
1,914
|
|
19
|
|
(f)
|
95
|
|
(88
|
)
|
|
(124
|
)
|
—
|
|
|
1,816
|
|
|
2
|
|
(f)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Fair value measurements using significant unobservable inputs
|
|
|
||||||||||||||||||||||||||||
Three months ended
March 31, 2015
(in millions)
|
Fair value at January 1, 2015
|
Total realized/unrealized (gains)/losses
|
|
|
|
|
Transfers into and/or out of level 3
(h)
|
Fair value at
March 31, 2015 |
Change in unrealized (gains)/losses related
to financial instruments held at March 31, 2015 |
||||||||||||||||||||||
Purchases
|
Sales
|
Issuances
|
Settlements
|
||||||||||||||||||||||||||||
Liabilities:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Deposits
|
$
|
2,859
|
|
$
|
92
|
|
(c)
|
$
|
—
|
|
$
|
—
|
|
$
|
775
|
|
$
|
(115
|
)
|
$
|
(271
|
)
|
|
$
|
3,340
|
|
|
$
|
88
|
|
(c)
|
Other borrowed funds
|
1,453
|
|
(119
|
)
|
(c)
|
—
|
|
—
|
|
1,048
|
|
(981
|
)
|
(285
|
)
|
|
1,116
|
|
|
(110
|
)
|
(c)
|
|||||||||
Trading liabilities – debt and equity instruments
|
72
|
|
3
|
|
(c)
|
(108
|
)
|
126
|
|
—
|
|
(9
|
)
|
(2
|
)
|
|
82
|
|
|
2
|
|
(c)
|
|||||||||
Accounts payable and other liabilities
|
26
|
|
—
|
|
(c)
|
—
|
|
—
|
|
—
|
|
(3
|
)
|
—
|
|
|
23
|
|
|
—
|
|
(c)
|
|||||||||
Beneficial interests issued by consolidated VIEs
|
1,146
|
|
(53
|
)
|
(c)
|
—
|
|
—
|
|
2
|
|
(72
|
)
|
—
|
|
|
1,023
|
|
|
(47
|
)
|
(c)
|
|||||||||
Long-term debt
|
11,877
|
|
(105
|
)
|
(c)
|
—
|
|
(12
|
)
|
2,837
|
|
(2,371
|
)
|
(223
|
)
|
|
12,003
|
|
|
(96
|
)
|
(c)
|
|
Fair value measurements using significant unobservable inputs
|
|
|
|||||||||||||||||||||||||||||
Three months ended
March 31, 2014
(in millions)
|
Fair value at January 1, 2014
|
Total realized/unrealized gains/(losses)
|
|
|
|
|
|
Transfers into and/or out of level 3
(h)
|
Fair value at
March 31, 2014 |
Change in unrealized gains/(losses) related
to financial instruments held at March 31, 2014
|
||||||||||||||||||||||
Purchases
(g)
|
|
Sales
|
|
Settlements
|
||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Debt instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. government agencies
|
$
|
1,005
|
|
$
|
3
|
|
|
$
|
331
|
|
|
$
|
(162
|
)
|
|
|
$
|
(27
|
)
|
$
|
—
|
|
|
$
|
1,150
|
|
|
$
|
5
|
|
|
|
Residential – nonagency
|
726
|
|
24
|
|
|
192
|
|
|
(200
|
)
|
|
|
(12
|
)
|
(15
|
)
|
|
715
|
|
|
14
|
|
|
|||||||||
Commercial – nonagency
|
432
|
|
20
|
|
|
321
|
|
|
(294
|
)
|
|
|
(14
|
)
|
—
|
|
|
465
|
|
|
10
|
|
|
|||||||||
Total mortgage-backed securities
|
2,163
|
|
47
|
|
|
844
|
|
|
(656
|
)
|
|
|
(53
|
)
|
(15
|
)
|
|
2,330
|
|
|
29
|
|
|
|||||||||
Obligations of U.S. states and municipalities
|
1,382
|
|
22
|
|
|
—
|
|
|
(185
|
)
|
|
|
—
|
|
—
|
|
|
1,219
|
|
|
9
|
|
|
|||||||||
Non-U.S. government debt securities
|
143
|
|
16
|
|
|
410
|
|
|
(516
|
)
|
|
|
(1
|
)
|
—
|
|
|
52
|
|
|
22
|
|
|
|||||||||
Corporate debt securities
|
5,920
|
|
238
|
|
|
1,197
|
|
|
(1,352
|
)
|
|
|
(841
|
)
|
(289
|
)
|
|
4,873
|
|
|
213
|
|
|
|||||||||
Loans
|
13,455
|
|
319
|
|
|
2,158
|
|
|
(1,794
|
)
|
|
|
(1,546
|
)
|
(71
|
)
|
|
12,521
|
|
|
295
|
|
|
|||||||||
Asset-backed securities
|
1,272
|
|
24
|
|
|
550
|
|
|
(556
|
)
|
|
|
(20
|
)
|
(114
|
)
|
|
1,156
|
|
|
19
|
|
|
|||||||||
Total debt instruments
|
24,335
|
|
666
|
|
|
5,159
|
|
|
(5,059
|
)
|
|
|
(2,461
|
)
|
(489
|
)
|
|
22,151
|
|
|
587
|
|
|
|||||||||
Equity securities
|
885
|
|
81
|
|
|
36
|
|
|
(19
|
)
|
|
|
(9
|
)
|
(89
|
)
|
|
885
|
|
|
70
|
|
|
|||||||||
Physical commodities
|
4
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(1
|
)
|
—
|
|
|
3
|
|
|
—
|
|
|
|||||||||
Other
|
2,000
|
|
(97
|
)
|
|
54
|
|
|
(51
|
)
|
|
|
(28
|
)
|
(594
|
)
|
|
1,284
|
|
|
(19
|
)
|
|
|||||||||
Total trading assets – debt and equity instruments
|
27,224
|
|
650
|
|
(c)
|
5,249
|
|
|
(5,129
|
)
|
|
|
(2,499
|
)
|
(1,172
|
)
|
|
24,323
|
|
|
638
|
|
(c)
|
|||||||||
Net derivative receivables:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Interest rate
|
2,379
|
|
24
|
|
|
48
|
|
|
(43
|
)
|
|
|
(338
|
)
|
20
|
|
|
2,090
|
|
|
(342
|
)
|
|
|||||||||
Credit
|
95
|
|
(115
|
)
|
|
58
|
|
|
—
|
|
|
|
206
|
|
—
|
|
|
244
|
|
|
(97
|
)
|
|
|||||||||
Foreign exchange
|
(1,200
|
)
|
(199
|
)
|
|
61
|
|
|
(16
|
)
|
|
|
49
|
|
23
|
|
|
(1,282
|
)
|
|
(349
|
)
|
|
|||||||||
Equity
|
(1,063
|
)
|
71
|
|
|
801
|
|
|
(1,033
|
)
|
|
125
|
|
39
|
|
|
(1,060
|
)
|
|
582
|
|
|
||||||||||
Commodity
|
115
|
|
(154
|
)
|
|
1
|
|
|
—
|
|
|
|
(42
|
)
|
22
|
|
|
(58
|
)
|
|
(60
|
)
|
|
|||||||||
Total net derivative receivables
|
326
|
|
(373
|
)
|
(c)
|
969
|
|
|
(1,092
|
)
|
|
|
—
|
|
104
|
|
|
(66
|
)
|
|
(266
|
)
|
(c)
|
|||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Asset-backed securities
|
1,088
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
|
(20
|
)
|
63
|
|
|
1,127
|
|
|
(2
|
)
|
|
|||||||||
Other
|
1,234
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
|
(41
|
)
|
—
|
|
|
1,190
|
|
|
(3
|
)
|
|
|||||||||
Total available-for-sale securities
|
2,322
|
|
(5
|
)
|
(d)
|
—
|
|
|
(2
|
)
|
|
|
(61
|
)
|
63
|
|
|
2,317
|
|
|
(5
|
)
|
(d)
|
|||||||||
Loans
|
1,931
|
|
32
|
|
(c)
|
684
|
|
|
(142
|
)
|
|
|
(234
|
)
|
—
|
|
|
2,271
|
|
|
28
|
|
(c)
|
|||||||||
Mortgage servicing rights
|
9,614
|
|
(822
|
)
|
(e)
|
195
|
|
|
(188
|
)
|
|
|
(247
|
)
|
—
|
|
|
8,552
|
|
|
(822
|
)
|
(e)
|
|||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Private equity investments
|
6,474
|
|
96
|
|
(c)
|
87
|
|
|
(1,018
|
)
|
|
|
(304
|
)
|
—
|
|
|
5,335
|
|
|
(3
|
)
|
(c)
|
|||||||||
All other
|
2,589
|
|
(34
|
)
|
(f)
|
73
|
|
|
(37
|
)
|
|
|
(155
|
)
|
—
|
|
|
2,436
|
|
|
(44
|
)
|
(f)
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Fair value measurements using significant unobservable inputs
|
|
|
|||||||||||||||||||||||||||||
Three months ended
March 31, 2014
(in millions)
|
Fair value at January 1, 2014
|
Total realized/unrealized (gains)/losses
|
|
|
|
|
|
Transfers into and/or out of level 3
(h)
|
Fair value at March 31, 2014
|
Change in unrealized (gains)/
losses related
to financial instruments held at March 31, 2014
|
||||||||||||||||||||||
Purchases
|
|
Sales
|
Issuances
|
Settlements
|
||||||||||||||||||||||||||||
Liabilities:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Deposits
|
$
|
2,255
|
|
$
|
37
|
|
(c)
|
$
|
—
|
|
|
$
|
—
|
|
$
|
290
|
|
$
|
(42
|
)
|
$
|
(154
|
)
|
|
$
|
2,386
|
|
|
$
|
28
|
|
(c)
|
Other borrowed funds
|
2,074
|
|
39
|
|
(c)
|
—
|
|
|
—
|
|
1,333
|
|
(2,107
|
)
|
196
|
|
|
1,535
|
|
|
113
|
|
(c)
|
|||||||||
Trading liabilities – debt and equity instruments
|
113
|
|
—
|
|
|
(216
|
)
|
|
208
|
|
—
|
|
(4
|
)
|
—
|
|
|
101
|
|
|
—
|
|
|
|||||||||
Accounts payable and other liabilities
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||||||
Beneficial interests issued by consolidated VIEs
|
1,240
|
|
47
|
|
(c)
|
—
|
|
|
—
|
|
78
|
|
(205
|
)
|
—
|
|
|
1,160
|
|
|
50
|
|
(c)
|
|||||||||
Long-term debt
|
10,008
|
|
102
|
|
(c)
|
—
|
|
|
—
|
|
1,832
|
|
(1,010
|
)
|
271
|
|
|
11,203
|
|
|
129
|
|
(c)
|
(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) was
15%
at March 31, 2015 and December 31, 2014.
|
(c)
|
Predominantly reported in principal transactions revenue, except for changes in fair value for Consumer & Community Banking 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 available-for-sale (“AFS”) 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
$(7) million
and
$(1) million
for the three months ended March 31, 2015 and 2014, respectively. Unrealized gains/(losses) recorded on AFS securities in OCI were
$(2) million
and
$(4) million
for the three months ended March 31, 2015 and 2014, 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 quarterly reporting period in which they occur.
|
•
|
$3.3 billion
decrease in trading assets, debt and equity securities predominantly driven by a decrease in trading loans due to sales and a number of transfers from Level 3 to Level 2 as a result of an increase in observability of certain valuation inputs.
|
•
|
$602 million
of net losses and
$182 million
of net gains on assets and liabilities, respectively, measured at fair value on a recurring basis, none of which were individually significant.
|
•
|
$456 million
and
$225 million
of net losses on assets and liabilities, respectively, measured at fair value on a recurring basis, none of which were individually significant.
|
(in millions)
|
Mar 31, 2015
|
|
Dec 31, 2014
|
||||
Derivative receivables balance
(a)
|
$
|
81,574
|
|
|
$
|
78,975
|
|
Derivative payables balance
(a)
|
73,836
|
|
|
71,116
|
|
||
Derivatives CVA
(b)
|
(2,493
|
)
|
|
(2,674
|
)
|
||
Derivatives DVA and FVA
(b)(c)
|
(521
|
)
|
|
(380
|
)
|
||
Structured notes balance
(a)(d)
|
56,042
|
|
|
53,772
|
|
||
Structured notes DVA and FVA
(b)(e)
|
1,300
|
|
|
1,152
|
|
(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)
|
At March 31, 2015, and December 31, 2014, included derivatives DVA of
$727 million
and
$714 million
, respectively.
|
(d)
|
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
March 31, 2015
, and December 31, 2014, included
$943 million
and
$943 million
, 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.
|
(e)
|
At March 31, 2015, and December 31, 2014 included structured notes DVA of
$1.5 billion
and
$1.4 billion
, respectively.
|
|
Three months ended
March 31,
|
||||||
(in millions)
|
2015
|
|
2014
|
||||
Credit adjustments:
|
|
|
|
||||
Derivatives CVA
|
$
|
181
|
|
|
$
|
(19
|
)
|
Derivatives DVA and FVA
(a)
|
(141
|
)
|
|
(125
|
)
|
||
Structured notes DVA and FVA
(b)
|
148
|
|
|
17
|
|
(a)
|
Included derivatives DVA of
$13 million
and
$(94) million
for the three months ended March 31, 2015 and 2014, respectively.
|
(b)
|
Included structured notes DVA of
$108 million
and
$(115) million
for the three months ended March 31, 2015 and 2014, respectively.
|
•
|
$1.3 billion
related to consumer credit card loans that were reclassified to held-for-sale during the fourth quarter of 2014 subject to a lower of cost or fair value adjustment. These loans were classified as level 3, as they are valued based on the Firm’s internal valuation methodology;
|
•
|
$495 million
related to trade finance loans that were reclassified to held-for-sale during the fourth quarter of 2013 and subject to a lower of cost or fair value adjustment. These loans were classified as level 3 as they are valued based on the indicative pricing received from external investors, with a spread and weighted average of
58
bps.
|
•
|
$186 million
related to residential real estate loans measured at the net realizable value of the underlying collateral (i.e., collateral-dependent loans and other loans charged off in accordance with regulatory guidance). These amounts are classified as level 3 as they are valued using a broker’s price opinion and discounted based upon the Firm’s experience with actual liquidation values. These discounts to the broker price opinions ranged from
8%
to
59%
, with a weighted average of
22%
.
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||||||
|
|
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
|
$
|
22.8
|
|
$
|
22.8
|
|
$
|
—
|
|
$
|
—
|
|
$
|
22.8
|
|
|
$
|
27.8
|
|
$
|
27.8
|
|
$
|
—
|
|
$
|
—
|
|
$
|
27.8
|
|
Deposits with banks
|
506.4
|
|
502.8
|
|
3.6
|
|
—
|
|
506.4
|
|
|
484.5
|
|
480.4
|
|
4.1
|
|
—
|
|
484.5
|
|
||||||||||
Accrued interest and accounts receivable
|
70.0
|
|
—
|
|
70.0
|
|
0.1
|
|
70.1
|
|
|
70.1
|
|
—
|
|
70.0
|
|
0.1
|
|
70.1
|
|
||||||||||
Federal funds sold and securities purchased under resale agreements
|
190.0
|
|
—
|
|
190.0
|
|
—
|
|
190.0
|
|
|
187.2
|
|
—
|
|
187.2
|
|
—
|
|
187.2
|
|
||||||||||
Securities borrowed
|
107.6
|
|
—
|
|
107.6
|
|
—
|
|
107.6
|
|
|
109.4
|
|
—
|
|
109.4
|
|
—
|
|
109.4
|
|
||||||||||
Securities, held-to-maturity
(a)
|
49.3
|
|
—
|
|
51.4
|
|
—
|
|
51.4
|
|
|
49.3
|
|
—
|
|
51.2
|
|
—
|
|
51.2
|
|
||||||||||
Loans, net of allowance for loan losses
(b)
|
747.8
|
|
—
|
|
18.3
|
|
734.4
|
|
752.7
|
|
|
740.5
|
|
—
|
|
21.8
|
|
723.1
|
|
744.9
|
|
||||||||||
Other
|
65.8
|
|
—
|
|
56.5
|
|
13.3
|
|
69.8
|
|
|
64.7
|
|
—
|
|
55.7
|
|
13.3
|
|
69.0
|
|
||||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Deposits
|
$
|
1,356.9
|
|
$
|
—
|
|
$
|
1,356.0
|
|
$
|
1.2
|
|
$
|
1,357.2
|
|
|
$
|
1,354.6
|
|
$
|
—
|
|
$
|
1,353.6
|
|
$
|
1.2
|
|
$
|
1,354.8
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
193.0
|
|
—
|
|
193.0
|
|
—
|
|
193.0
|
|
|
189.1
|
|
—
|
|
189.1
|
|
—
|
|
189.1
|
|
||||||||||
Commercial paper
|
55.7
|
|
—
|
|
55.7
|
|
—
|
|
55.7
|
|
|
66.3
|
|
—
|
|
66.3
|
|
—
|
|
66.3
|
|
||||||||||
Other borrowed funds
|
14.6
|
|
—
|
|
14.6
|
|
—
|
|
14.6
|
|
|
15.5
|
|
|
|
15.5
|
|
—
|
|
15.5
|
|
||||||||||
Accounts payable and other liabilities
|
174.5
|
|
—
|
|
172.0
|
|
2.4
|
|
174.4
|
|
|
176.7
|
|
—
|
|
173.7
|
|
2.9
|
|
176.6
|
|
||||||||||
Beneficial interests issued by consolidated VIEs
|
49.8
|
|
—
|
|
47.9
|
|
2.0
|
|
49.9
|
|
|
50.2
|
|
—
|
|
48.2
|
|
2.0
|
|
50.2
|
|
||||||||||
Long-term debt and junior subordinated deferrable interest debentures
(c)
|
250.0
|
|
—
|
|
255.9
|
|
3.8
|
|
259.7
|
|
|
246.6
|
|
—
|
|
251.6
|
|
3.8
|
|
255.4
|
|
(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 181–184 of JPMorgan Chase’s 2014 Annual Report.
|
(c)
|
Carrying value includes unamortized original issue discount and other valuation adjustments.
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||||||
|
|
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
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1.3
|
|
$
|
1.3
|
|
|
$
|
0.6
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1.6
|
|
$
|
1.6
|
|
(a)
|
Represents the allowance for wholesale lending-related commitments. Excludes the current carrying values of the guarantee liability and the offsetting asset, each of which are recognized at fair value at the inception of guarantees.
|
|
Three months ended March 31,
|
|
|||||||||||||||||||||||
|
2015
|
|
2014
|
|
|||||||||||||||||||||
(in millions)
|
Principal transactions
|
|
All other income
|
Total changes in fair
value recorded
|
|
Principal transactions
|
|
All other income
|
Total changes in fair value recorded
|
||||||||||||||||
Federal funds sold and securities purchased under resale agreements
|
$
|
73
|
|
|
$
|
—
|
|
|
$
|
73
|
|
|
|
$
|
(40
|
)
|
|
$
|
—
|
|
|
$
|
(40
|
)
|
|
Securities borrowed
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt and equity instruments, excluding loans
|
380
|
|
|
—
|
|
|
380
|
|
|
|
230
|
|
|
(2
|
)
|
(c)
|
228
|
|
|
||||||
Loans reported as trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Changes in instrument-specific credit risk
|
152
|
|
|
3
|
|
(c)
|
155
|
|
|
|
363
|
|
|
9
|
|
(c)
|
372
|
|
|
||||||
Other changes in fair value
|
127
|
|
|
280
|
|
(c)
|
407
|
|
|
|
64
|
|
|
292
|
|
(c)
|
356
|
|
|
||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Changes in instrument-specific credit risk
|
1
|
|
|
—
|
|
|
1
|
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
||||||
Other changes in fair value
|
—
|
|
|
—
|
|
|
—
|
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
||||||
Other assets
|
60
|
|
|
6
|
|
(d)
|
66
|
|
|
|
5
|
|
|
(73
|
)
|
(d)
|
(68
|
)
|
|
||||||
Deposits
(a)
|
(125
|
)
|
|
—
|
|
|
(125
|
)
|
|
|
(104
|
)
|
|
—
|
|
|
(104
|
)
|
|
||||||
Federal funds purchased and securities loaned or sold under repurchase agreements
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|
|
(16
|
)
|
|
—
|
|
|
(16
|
)
|
|
||||||
Other borrowed funds
(a)
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|
|
(260
|
)
|
|
—
|
|
|
(260
|
)
|
|
||||||
Trading liabilities
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
|
||||||
Beneficial interests issued by consolidated VIEs
|
18
|
|
|
—
|
|
|
18
|
|
|
|
(89
|
)
|
|
—
|
|
|
(89
|
)
|
|
||||||
Other liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Changes in instrument-specific credit risk
(a)
|
116
|
|
|
—
|
|
|
116
|
|
|
|
(77
|
)
|
|
—
|
|
|
(77
|
)
|
|
||||||
Other changes in fair value
(b)
|
(378
|
)
|
|
—
|
|
|
(378
|
)
|
|
|
(18
|
)
|
|
—
|
|
|
(18
|
)
|
|
(a)
|
Total changes in instrument-specific credit risk (DVA) related to structured notes were
$108 million
and
$(115) million
for the three months ended
March 31, 2015
and 2014, respectively. These totals include such changes for structured notes classified within deposits and other borrowed funds, as well as long-term debt.
|
(b)
|
Structured notes are predominantly financial instruments containing embedded derivatives. Where present, the embedded derivative is the primary driver of risk. Although the risk associated with the structured notes is actively managed, the gains/(losses) reported in this table do not include the income statement impact of the risk management instruments used to manage such risk.
|
(c)
|
Reported in mortgage fees and related income.
|
(d)
|
Reported in other income.
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||
(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
|
$
|
3,718
|
|
|
$
|
858
|
|
$
|
(2,860
|
)
|
|
$
|
3,847
|
|
|
$
|
905
|
|
$
|
(2,942
|
)
|
Loans
|
7
|
|
|
7
|
|
—
|
|
|
7
|
|
|
7
|
|
—
|
|
||||||
Subtotal
|
3,725
|
|
|
865
|
|
(2,860
|
)
|
|
3,854
|
|
|
912
|
|
(2,942
|
)
|
||||||
All other performing loans
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans reported as trading assets
|
32,983
|
|
|
31,151
|
|
(1,832
|
)
|
|
37,608
|
|
|
35,462
|
|
(2,146
|
)
|
||||||
Loans
|
2,111
|
|
|
2,104
|
|
(7
|
)
|
|
2,397
|
|
|
2,389
|
|
(8
|
)
|
||||||
Total loans
|
$
|
38,819
|
|
|
$
|
34,120
|
|
$
|
(4,699
|
)
|
|
$
|
43,859
|
|
|
$
|
38,763
|
|
$
|
(5,096
|
)
|
Long-term debt
|
|
|
|
|
|
|
|
|
|
||||||||||||
Principal-protected debt
|
$
|
14,613
|
|
(c)
|
$
|
15,357
|
|
$
|
744
|
|
|
$
|
14,660
|
|
(c)
|
$
|
15,484
|
|
$
|
824
|
|
Nonprincipal-protected debt
(b)
|
NA
|
|
|
15,276
|
|
NA
|
|
|
NA
|
|
|
14,742
|
|
NA
|
|
||||||
Total long-term debt
|
NA
|
|
|
$
|
30,633
|
|
NA
|
|
|
NA
|
|
|
$
|
30,226
|
|
NA
|
|
||||
Long-term beneficial interests
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nonprincipal-protected debt
(b)
|
NA
|
|
|
$
|
1,281
|
|
NA
|
|
|
NA
|
|
|
$
|
2,162
|
|
NA
|
|
||||
Total long-term beneficial interests
|
NA
|
|
|
$
|
1,281
|
|
NA
|
|
|
NA
|
|
|
$
|
2,162
|
|
NA
|
|
(a)
|
There were
no
performing loans that were ninety days or more past due as of
March 31, 2015
, and
December 31, 2014
, respectively.
|
(b)
|
Remaining contractual principal is not applicable to nonprincipal-protected notes. Unlike principal-protected structured notes, for which the Firm is obligated to return a stated amount of principal at the maturity of the note, nonprincipal-protected structured notes do not obligate the Firm to return a stated amount of principal at maturity, but to return an amount based on the performance of an underlying variable or derivative feature embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal protected notes.
|
(c)
|
Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflected as the remaining contractual principal is the final principal payment at maturity.
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||
(in millions)
|
Long-term debt
|
Other borrowed funds
|
Deposits
|
Total
|
|
Long-term debt
|
Other borrowed funds
|
Deposits
|
Total
|
||||||||||||||||
Risk exposure
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate
|
$
|
10,942
|
|
$
|
154
|
|
$
|
3,216
|
|
$
|
14,312
|
|
|
$
|
10,858
|
|
$
|
460
|
|
$
|
2,119
|
|
$
|
13,437
|
|
Credit
|
4,120
|
|
426
|
|
—
|
|
4,546
|
|
|
4,023
|
|
450
|
|
—
|
|
4,473
|
|
||||||||
Foreign exchange
|
2,113
|
|
242
|
|
18
|
|
2,373
|
|
|
2,150
|
|
211
|
|
17
|
|
2,378
|
|
||||||||
Equity
|
12,430
|
|
12,464
|
|
4,596
|
|
29,490
|
|
|
12,348
|
|
12,412
|
|
4,415
|
|
29,175
|
|
||||||||
Commodity
|
763
|
|
764
|
|
2,851
|
|
4,378
|
|
|
710
|
|
644
|
|
2,012
|
|
3,366
|
|
||||||||
Total structured notes
|
$
|
30,368
|
|
$
|
14,050
|
|
$
|
10,681
|
|
$
|
55,099
|
|
|
$
|
30,089
|
|
$
|
14,177
|
|
$
|
8,563
|
|
$
|
52,829
|
|
|
Notional amounts
(b)
|
|||||
(in billions)
|
March 31, 2015
|
December 31, 2014
|
||||
Interest rate contracts
|
|
|
||||
Swaps
|
$
|
24,446
|
|
$
|
29,734
|
|
Futures and forwards
|
9,572
|
|
10,189
|
|
||
Written options
|
3,618
|
|
3,903
|
|
||
Purchased options
|
3,968
|
|
4,259
|
|
||
Total interest rate contracts
|
41,604
|
|
48,085
|
|
||
Credit derivatives
(a)
|
3,991
|
|
4,249
|
|
||
Foreign exchange contracts
|
|
|
|
|||
Cross-currency swaps
|
3,184
|
|
3,346
|
|
||
Spot, futures and forwards
|
4,809
|
|
4,669
|
|
||
Written options
|
811
|
|
790
|
|
||
Purchased options
|
803
|
|
780
|
|
||
Total foreign exchange contracts
|
9,607
|
|
9,585
|
|
||
Equity contracts
|
|
|
||||
Swaps
|
199
|
|
206
|
|
||
Futures and forwards
|
69
|
|
50
|
|
||
Written options
|
416
|
|
432
|
|
||
Purchased options
|
363
|
|
375
|
|
||
Total equity contracts
|
1,047
|
|
1,063
|
|
||
Commodity contracts
|
|
|
|
|||
Swaps
|
126
|
|
126
|
|
||
Spot, futures and forwards
|
178
|
|
193
|
|
||
Written options
|
180
|
|
181
|
|
||
Purchased options
|
190
|
|
180
|
|
||
Total commodity contracts
|
674
|
|
680
|
|
||
Total derivative notional amounts
|
$
|
56,923
|
|
$
|
63,662
|
|
(a)
|
For more information on volumes and types of credit derivative contracts, see the Credit derivatives discussion on
pages 100–101
of this Note.
|
(b)
|
Represents the sum of gross long and gross short third-party notional derivative contracts.
|
(a)
|
Balances exclude structured notes for which the fair value option has been elected. See Note 4 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.
|
(c)
|
The prior period amounts have been revised to conform with the current period presentation. These revisions had no impact on the Firm's Consolidated balance sheets or its results of operations.
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(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:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
$
|
557,852
|
|
$
|
(528,790
|
)
|
|
$
|
29,062
|
|
|
$
|
542,107
|
|
(c)
|
$
|
(514,914
|
)
|
(c)
|
$
|
27,193
|
|
|
OTC–cleared
|
334,188
|
|
(334,143
|
)
|
|
45
|
|
|
401,656
|
|
|
(401,618
|
)
|
|
38
|
|
|||||||
Exchange-traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total interest rate contracts
|
892,040
|
|
(862,933
|
)
|
|
29,107
|
|
|
943,763
|
|
(c)
|
(916,532
|
)
|
(c)
|
27,231
|
|
|||||||
Credit contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
OTC
|
51,432
|
|
(50,822
|
)
|
|
610
|
|
|
66,636
|
|
|
(65,720
|
)
|
|
916
|
|
|||||||
OTC–cleared
|
11,017
|
|
(10,986
|
)
|
|
31
|
|
|
9,320
|
|
|
(9,284
|
)
|
|
36
|
|
|||||||
Total credit contracts
|
62,449
|
|
(61,808
|
)
|
|
641
|
|
|
75,956
|
|
|
(75,004
|
)
|
|
952
|
|
|||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
220,375
|
|
(202,176
|
)
|
|
18,199
|
|
|
208,803
|
|
(c)
|
(193,900
|
)
|
(c)
|
14,903
|
|
|||||||
OTC–cleared
|
85
|
|
(85
|
)
|
|
—
|
|
|
36
|
|
|
(34
|
)
|
|
2
|
|
|||||||
Exchange-traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total foreign exchange contracts
|
220,460
|
|
(202,261
|
)
|
|
18,199
|
|
|
208,839
|
|
(c)
|
(193,934
|
)
|
(c)
|
14,905
|
|
|||||||
Equity contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
25,632
|
|
(24,554
|
)
|
|
1,078
|
|
|
23,258
|
|
|
(22,826
|
)
|
|
432
|
|
|||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Exchange-traded
(a)
|
16,516
|
|
(13,925
|
)
|
|
2,591
|
|
|
13,840
|
|
(c)
|
(11,486
|
)
|
(c)
|
2,354
|
|
|||||||
Total equity contracts
|
42,148
|
|
(38,479
|
)
|
|
3,669
|
|
|
37,098
|
|
(c)
|
(34,312
|
)
|
(c)
|
2,786
|
|
|||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
19,526
|
|
(10,757
|
)
|
|
8,769
|
|
|
22,555
|
|
|
(14,327
|
)
|
|
8,228
|
|
|||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Exchange-traded
(a)
|
18,501
|
|
(17,639
|
)
|
|
862
|
|
|
19,500
|
|
|
(15,344
|
)
|
|
4,156
|
|
|||||||
Total commodity contracts
|
38,027
|
|
(28,396
|
)
|
|
9,631
|
|
|
42,055
|
|
|
(29,671
|
)
|
|
12,384
|
|
|||||||
Derivative receivables with appropriate legal opinion
|
$
|
1,255,124
|
|
$
|
(1,193,877
|
)
|
(b)
|
$
|
61,247
|
|
|
$
|
1,307,711
|
|
(c)
|
$
|
(1,249,453
|
)
|
(b)(c)
|
$
|
58,258
|
|
|
Derivative receivables where an appropriate legal opinion has not been either sought or obtained
|
20,327
|
|
|
|
20,327
|
|
|
20,717
|
|
|
|
|
20,717
|
|
|||||||||
Total derivative receivables recognized on the Consolidated balance sheets
|
$
|
1,275,451
|
|
|
|
$
|
81,574
|
|
|
$
|
1,328,428
|
|
(c)
|
|
|
$
|
78,975
|
|
(a)
|
Exchange-traded derivative amounts that relate to futures contracts are settled daily.
|
(b)
|
Included cash collateral netted of
$78.2 billion
and
$74.0 billion
at
March 31, 2015
and
December 31, 2014
, respectively.
|
(c)
|
The prior period amounts have been revised to conform with the current period presentation with a corresponding impact to the table below. These revisions had no impact on the Firm's Consolidated balance sheets or its results of operations.
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(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
|
$
|
533,216
|
|
$
|
(518,203
|
)
|
|
$
|
15,013
|
|
|
$
|
515,904
|
|
(c)
|
$
|
(503,384
|
)
|
(c)
|
$
|
12,520
|
|
|
OTC–cleared
|
331,073
|
|
(329,930
|
)
|
|
1,143
|
|
|
398,518
|
|
|
(397,250
|
)
|
|
1,268
|
|
|||||||
Exchange-traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total interest rate contracts
|
864,289
|
|
(848,133
|
)
|
|
16,156
|
|
|
914,422
|
|
(c)
|
(900,634
|
)
|
(c)
|
13,788
|
|
|||||||
Credit contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
50,278
|
|
(50,021
|
)
|
|
257
|
|
|
65,432
|
|
|
(64,904
|
)
|
|
528
|
|
|||||||
OTC–cleared
|
11,184
|
|
(11,184
|
)
|
|
—
|
|
|
9,398
|
|
|
(9,398
|
)
|
|
—
|
|
|||||||
Total credit contracts
|
61,462
|
|
(61,205
|
)
|
|
257
|
|
|
74,830
|
|
|
(74,302
|
)
|
|
528
|
|
|||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
236,193
|
|
(215,560
|
)
|
|
20,633
|
|
|
217,998
|
|
(c)
|
(201,578
|
)
|
(c)
|
16,420
|
|
|||||||
OTC–cleared
|
125
|
|
(125
|
)
|
|
—
|
|
|
66
|
|
|
(66
|
)
|
|
—
|
|
|||||||
Exchange-traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total foreign exchange contracts
|
236,318
|
|
(215,685
|
)
|
|
20,633
|
|
|
218,064
|
|
(c)
|
(201,644
|
)
|
(c)
|
16,420
|
|
|||||||
Equity contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
32,341
|
|
(25,579
|
)
|
|
6,762
|
|
|
27,908
|
|
|
(23,036
|
)
|
|
4,872
|
|
|||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Exchange-traded
(a)
|
15,097
|
|
(13,925
|
)
|
|
1,172
|
|
|
12,864
|
|
(c)
|
(11,486
|
)
|
(c)
|
1,378
|
|
|||||||
Total equity contracts
|
47,438
|
|
(39,504
|
)
|
|
7,934
|
|
|
40,772
|
|
(c)
|
(34,522
|
)
|
(c)
|
6,250
|
|
|||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
22,060
|
|
(9,879
|
)
|
|
12,181
|
|
|
25,129
|
|
|
(13,211
|
)
|
|
11,918
|
|
|||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Exchange-traded
(a)
|
17,933
|
|
(17,639
|
)
|
|
294
|
|
|
18,486
|
|
|
(15,344
|
)
|
|
3,142
|
|
|||||||
Total commodity contracts
|
39,993
|
|
(27,518
|
)
|
|
12,475
|
|
|
43,615
|
|
|
(28,555
|
)
|
|
15,060
|
|
|||||||
Derivative payables with appropriate legal opinions
|
$
|
1,249,500
|
|
$
|
(1,192,045
|
)
|
(b)
|
$
|
57,455
|
|
|
$
|
1,291,703
|
|
(c)
|
$
|
(1,239,657
|
)
|
(b)(c)
|
$
|
52,046
|
|
|
Derivative payables where an appropriate legal opinion has not been either sought or obtained
|
16,381
|
|
|
|
16,381
|
|
|
19,070
|
|
|
|
|
19,070
|
|
|||||||||
Total derivative payables recognized on the Consolidated balance sheets
|
$
|
1,265,881
|
|
|
|
$
|
73,836
|
|
|
$
|
1,310,773
|
|
(c)
|
|
|
$
|
71,116
|
|
(a)
|
Exchange-traded derivative balances that relate to futures contracts are settled daily.
|
(b)
|
Included cash collateral netted of
$76.3 billion
and
$64.2 billion
related to OTC and OTC-cleared derivatives at
March 31, 2015
and
December 31, 2014
, respectively.
|
(c)
|
The prior period amounts have been revised to conform with the current period presentation with a corresponding impact to the table above. These revisions had no impact on the Firm's Consolidated balance sheets or its results of operations.
|
(a)
|
Represents liquid security collateral as well as cash collateral held at third party custodians. For some counterparties, the collateral amounts of financial instruments may exceed the derivative receivables and derivative payables balances. Where this is the case, the total amount reported is limited to the net derivative receivables and net derivative payables balances with that counterparty.
|
(b)
|
Derivative payable collateral relates only to OTC and OTC-cleared derivative instruments. Amounts exclude collateral transferred related to exchange-traded derivative instruments.
|
(c)
|
Net amount represents exposure of counterparties to the Firm.
|
OTC and OTC-cleared derivative payables containing downgrade triggers
|
||||||
(in millions)
|
March 31, 2015
|
December 31, 2014
|
||||
Aggregate fair value of net derivative payables
|
$
|
37,439
|
|
$
|
32,303
|
|
Collateral posted
|
31,256
|
|
27,585
|
|
Liquidity impact of downgrade triggers on OTC and
OTC-cleared derivatives
|
|
|
|
|
|
||||||||
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||
(in millions)
|
Single-notch downgrade
|
Two-notch downgrade
|
|
Single-notch downgrade
|
Two-notch downgrade
|
||||||||
Amount of additional collateral to be posted upon downgrade
(a)
|
$
|
1,037
|
|
$
|
3,750
|
|
|
$
|
1,046
|
|
$
|
3,331
|
|
Amount required to settle contracts with termination triggers upon downgrade
(b)
|
291
|
|
1,144
|
|
|
366
|
|
1,388
|
|
(a)
|
Includes the additional collateral to be posted for initial margin.
|
(b)
|
Amounts represent fair values of derivative payables, and do not reflect collateral posted.
|
|
Gains/(losses) recorded in income
|
|
Income statement impact due to:
|
|||||||||||||
Three months ended March 31, 2015 (in millions)
|
Derivatives
|
Hedged items
|
Total income statement impact
|
|
Hedge ineffectiveness
(d)
|
Excluded components
(e)
|
||||||||||
Contract type
|
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
606
|
|
$
|
(248
|
)
|
$
|
358
|
|
|
$
|
17
|
|
$
|
341
|
|
Foreign exchange
(b)
|
6,475
|
|
(6,459
|
)
|
16
|
|
|
—
|
|
16
|
|
|||||
Commodity
(c)
|
322
|
|
(308
|
)
|
14
|
|
|
(6
|
)
|
20
|
|
|||||
Total
|
$
|
7,403
|
|
$
|
(7,015
|
)
|
$
|
388
|
|
|
$
|
11
|
|
$
|
377
|
|
|
|
|
|
|
|
|
||||||||||
|
Gains/(losses) recorded in income
|
|
Income statement impact due to:
|
|||||||||||||
Three months ended March 31, 2014 (in millions)
|
Derivatives
|
|
Hedged items
|
|
Total income statement impact
|
|
Hedge ineffectiveness
(d)
|
Excluded components
(e)
|
||||||||
Contract type
|
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
743
|
|
$
|
(407
|
)
|
$
|
336
|
|
|
$
|
29
|
|
$
|
307
|
|
Foreign exchange
(b)
|
(398
|
)
|
324
|
|
(74
|
)
|
|
—
|
|
(74
|
)
|
|||||
Commodity
(c)
|
180
|
|
(138
|
)
|
42
|
|
|
15
|
|
27
|
|
|||||
Total
|
$
|
525
|
|
$
|
(221
|
)
|
$
|
304
|
|
|
$
|
44
|
|
$
|
260
|
|
(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.
|
(b)
|
Primarily consists of hedges of the foreign currency risk of long-term debt and AFS securities for changes in spot foreign currency rates. Gains and losses related to the derivatives and the hedged items, due to changes in foreign currency rates, were recorded in principal transactions revenue and net interest income.
|
(c)
|
Consists of overall fair value hedges of physical commodities inventories that are generally carried at the lower of cost or market (market approximates fair value). Gains and losses were recorded in principal transactions revenue.
|
(d)
|
Hedge ineffectiveness is the amount by which the gain or loss on the designated derivative instrument does not exactly offset the gain or loss on the hedged item attributable to the hedged risk.
|
(e)
|
The assessment of hedge effectiveness excludes certain components of the changes in fair values of the derivatives and hedged items such as forward points on foreign exchange forward contracts and time values.
|
|
|
|
|
|
|
|
|
Gains/(losses) recorded in income and other comprehensive income/(loss)
|
||||||||||||||
Three months ended March 31, 2015 (in millions)
|
Derivatives – effective portion reclassified from AOCI to income
|
Hedge ineffectiveness recorded directly in income
(c)
|
Total income statement impact
|
Derivatives – effective portion recorded in OCI
|
Total change
in OCI
for period
|
||||||||||
Contract type
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
(149
|
)
|
$
|
—
|
|
$
|
(149
|
)
|
$
|
3
|
|
$
|
152
|
|
Foreign exchange
(b)
|
(26
|
)
|
—
|
|
(26
|
)
|
(52
|
)
|
(26
|
)
|
|||||
Total
|
$
|
(175
|
)
|
$
|
—
|
|
$
|
(175
|
)
|
$
|
(49
|
)
|
$
|
126
|
|
|
Gains/(losses) recorded in income and other comprehensive income/(loss)
|
||||||||||||||
Three months ended March 31, 2014 (in millions)
|
Derivatives – effective portion reclassified from AOCI to income
|
Hedge ineffectiveness recorded directly in income
(c)
|
Total income statement impact
|
Derivatives – effective portion recorded in OCI
|
Total change
in OCI for period |
||||||||||
Contract type
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
(26
|
)
|
$
|
—
|
|
$
|
(26
|
)
|
$
|
63
|
|
$
|
89
|
|
Foreign exchange
(b)
|
(1
|
)
|
—
|
|
(1
|
)
|
9
|
|
10
|
|
|||||
Total
|
$
|
(27
|
)
|
$
|
—
|
|
$
|
(27
|
)
|
$
|
72
|
|
$
|
99
|
|
(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, and for forecasted transactions that the Firm determined during the three months ended March 31, 2015, were probable of not occurring, in other 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)
|
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)
|
||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||
Three months ended March 31 (in millions)
|
Excluded components recorded directly
in income
(a)
|
Effective portion recorded in OCI
|
|
Excluded components
recorded directly
in income
(a)
|
Effective portion recorded in OCI
|
||||||||||||
Foreign exchange derivatives
|
|
$
|
(99
|
)
|
|
$
|
993
|
|
|
|
$
|
(105
|
)
|
|
$
|
(154
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 assets and 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
|
|||||||||||||
March 31, 2015
(in millions)
|
Protection sold
|
Protection
purchased with
identical underlyings
(b)
|
Net protection (sold)/purchased
(c)
|
|
Other protection purchased
(d)
|
|||||||||
Credit derivatives
|
|
|
|
|
|
|
||||||||
Credit default swaps
|
$
|
(1,923,729
|
)
|
|
$
|
1,950,481
|
|
$
|
26,752
|
|
|
$
|
17,202
|
|
Other credit derivatives
(a)
|
(46,485
|
)
|
|
33,036
|
|
(13,449
|
)
|
|
20,114
|
|
||||
Total credit derivatives
|
(1,970,214
|
)
|
|
1,983,517
|
|
13,303
|
|
|
37,316
|
|
||||
Credit-related notes
|
(20
|
)
|
|
—
|
|
(20
|
)
|
|
4,342
|
|
||||
Total
|
$
|
(1,970,234
|
)
|
|
$
|
1,983,517
|
|
$
|
13,283
|
|
|
$
|
41,658
|
|
|
|
|
|
|
|
|
||||||||
|
Maximum payout/Notional amount
|
|||||||||||||
December 31, 2014 (in millions)
|
Protection sold
|
Protection
purchased with
identical underlyings
(b)
|
Net protection (sold)/purchased
(c)
|
|
Other protection purchased
(d)
|
|||||||||
Credit derivatives
|
|
|
|
|
|
|
||||||||
Credit default swaps
|
$
|
(2,056,982
|
)
|
|
$
|
2,078,096
|
|
$
|
21,114
|
|
|
$
|
18,631
|
|
Other credit derivatives
(a)
|
(43,281
|
)
|
|
32,048
|
|
(11,233
|
)
|
|
19,475
|
|
||||
Total credit derivatives
|
(2,100,263
|
)
|
|
2,110,144
|
|
9,881
|
|
|
38,106
|
|
||||
Credit-related notes
|
(40
|
)
|
|
—
|
|
(40
|
)
|
|
3,704
|
|
||||
Total
|
$
|
(2,100,303
|
)
|
|
$
|
2,110,144
|
|
$
|
9,841
|
|
|
$
|
41,810
|
|
(a)
|
Other credit derivatives predominantly consists of credit swap options.
|
(b)
|
Represents the total notional amount of protection purchased where the underlying reference instrument is identical to the reference instrument on protection sold; the notional amount of protection purchased for each individual identical underlying reference instrument may be greater or lower than the notional amount of protection sold.
|
(c)
|
Does not take into account the fair value of the reference obligation at the time of settlement, which would generally reduce the amount the seller of protection pays to the buyer of protection in determining settlement value.
|
(d)
|
Represents protection purchased by the Firm on referenced instruments (single-name, portfolio or index) where the Firm has not sold any protection on the identical reference instrument.
|
December 31, 2014
(in millions)
|
<1 year
|
|
1–5 years
|
|
>5 years
|
|
Total
notional amount
|
|
Fair value of receivables
(b)
|
|
Fair
value of payables
(b)
|
|
Net fair value
|
||||||||||||||
Risk rating of reference entity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Investment-grade
|
$
|
(323,398
|
)
|
|
$
|
(1,118,293
|
)
|
|
$
|
(79,486
|
)
|
|
$
|
(1,521,177
|
)
|
|
$
|
25,767
|
|
|
$
|
(6,314
|
)
|
|
$
|
19,453
|
|
Noninvestment-grade
|
(157,281
|
)
|
|
(396,798
|
)
|
|
(25,047
|
)
|
|
(579,126
|
)
|
|
20,677
|
|
|
(22,455
|
)
|
|
(1,778
|
)
|
|||||||
Total
|
$
|
(480,679
|
)
|
|
$
|
(1,515,091
|
)
|
|
$
|
(104,533
|
)
|
|
$
|
(2,100,303
|
)
|
|
$
|
46,444
|
|
|
$
|
(28,769
|
)
|
|
$
|
17,675
|
|
(a)
|
The ratings scale is primarily based on external credit ratings defined by S&P and Moody’s.
|
(b)
|
Amounts are shown on a gross basis, before the benefit of legally enforceable master netting agreements and cash collateral received by the Firm.
|
|
Three months ended March 31,
|
||||||
(in millions)
|
2015
|
|
2014
|
||||
Underwriting
|
|
|
|
||||
Equity
|
$
|
399
|
|
|
$
|
353
|
|
Debt
|
853
|
|
|
683
|
|
||
Total underwriting
|
1,252
|
|
|
1,036
|
|
||
Advisory
|
542
|
|
|
384
|
|
||
Total investment banking fees
|
$
|
1,794
|
|
|
$
|
1,420
|
|
|
Three months ended March 31,
|
||||||
(in millions)
|
2015
|
|
2014
|
||||
Trading revenue by instrument type
|
|
|
|
||||
Interest rate
|
$
|
886
|
|
|
$
|
355
|
|
Credit
|
415
|
|
|
526
|
|
||
Foreign exchange
|
844
|
|
|
526
|
|
||
Equity
|
1,048
|
|
|
805
|
|
||
Commodity
(a)
|
339
|
|
|
688
|
|
||
Total trading revenue
|
3,532
|
|
|
2,900
|
|
||
Private equity gains
(b)
|
123
|
|
|
422
|
|
||
Principal transactions
|
$
|
3,655
|
|
|
$
|
3,322
|
|
(a)
|
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.
|
(b)
|
Includes revenue on private equity investments held in the Private Equity business within Corporate, as well as those held in other business segments.
|
|
Three months ended March 31,
|
||||||
(in millions)
|
2015
|
|
2014
|
||||
Asset management fees
|
|
|
|
||||
Investment management fees
(a)
|
$
|
2,274
|
|
|
$
|
2,096
|
|
All other asset management fees
(b)
|
99
|
|
|
123
|
|
||
Total asset management fees
|
2,373
|
|
|
2,219
|
|
||
|
|
|
|
||||
Total administration fees
(c)
|
507
|
|
|
527
|
|
||
|
|
|
|
||||
Commission and other fees
|
|
|
|
||||
Brokerage commissions
|
594
|
|
|
632
|
|
||
All other commissions and fees
|
333
|
|
|
458
|
|
||
Total commissions and fees
|
927
|
|
|
1,090
|
|
||
Total asset management, administration and commissions
|
$
|
3,807
|
|
|
$
|
3,836
|
|
(a)
|
Represents fees earned from managing assets on behalf of Firm clients, including investors in Firm-sponsored funds and owners of separately managed investment accounts.
|
(b)
|
Represents fees for services that are ancillary to investment management services, such as commissions earned on the sales or distribution of mutual funds to clients.
|
(c)
|
Predominantly includes fees for custody, securities lending, funds services and securities clearance.
|
|
Three months ended
March 31, |
|
||||||
(in millions)
|
2015
|
|
2014
|
|
||||
Interest income
|
|
|
|
|
||||
Loans
|
$
|
7,947
|
|
|
$
|
8,039
|
|
|
Taxable securities
|
1,724
|
|
|
1,902
|
|
|
||
Nontaxable securities
(a)
|
398
|
|
|
315
|
|
|
||
Total securities
|
2,122
|
|
|
2,217
|
|
|
||
Trading assets
|
1,734
|
|
|
1,771
|
|
|
||
Federal funds sold and securities purchased under resale agreements
|
396
|
|
|
436
|
|
|
||
Securities borrowed
(b)
|
(120
|
)
|
|
(88
|
)
|
|
||
Deposits with banks
|
341
|
|
|
256
|
|
|
||
Other assets
(c)
|
145
|
|
|
162
|
|
|
||
Total interest income
|
12,565
|
|
|
12,793
|
|
|
||
Interest expense
|
|
|
|
|
||||
Interest-bearing deposits
|
364
|
|
|
426
|
|
|
||
Short-term and other liabilities
(d)
|
332
|
|
|
428
|
|
|
||
Long-term debt
|
1,094
|
|
|
1,167
|
|
|
||
Beneficial interests issued by consolidated VIEs
|
98
|
|
|
105
|
|
|
||
Total interest expense
|
1,888
|
|
|
2,126
|
|
|
||
Net interest income
|
10,677
|
|
|
10,667
|
|
|
||
Provision for credit losses
|
959
|
|
|
850
|
|
|
||
Net interest income after provision for credit losses
|
$
|
9,718
|
|
|
$
|
9,817
|
|
|
(a)
|
Represents securities which are tax exempt for U.S. federal income tax purposes.
|
(b)
|
Negative interest income for the three months ended March 31, 2015, and 2014, is a result of increased client-driven demand for certain securities combined with the impact of low interest rates. This is matched book activity and the negative interest expense on the corresponding securities loaned is recognized in interest expense and reported within short-term and other liabilities.
|
(c)
|
Largely margin loans.
|
(d)
|
Includes brokerage customer payables.
|
|
Pension plans
|
|
|
|
||||||||||||||||
|
U.S.
|
|
Non-U.S.
|
|
OPEB plans
|
|||||||||||||||
Three months ended March 31, (in millions)
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
||||||
Components of net periodic benefit cost
|
|
|
|
|
|
|
|
|
||||||||||||
Benefits earned during the period
|
$
|
85
|
|
$
|
70
|
|
|
$
|
9
|
|
$
|
9
|
|
|
$
|
—
|
|
$
|
—
|
|
Interest cost on benefit obligations
|
125
|
|
134
|
|
|
28
|
|
34
|
|
|
8
|
|
9
|
|
||||||
Expected return on plan assets
|
(232
|
)
|
(246
|
)
|
|
(38
|
)
|
(44
|
)
|
|
(26
|
)
|
(25
|
)
|
||||||
Amortization:
|
|
|
|
|
|
|
|
|
||||||||||||
Net (gain)/loss
|
62
|
|
6
|
|
|
9
|
|
12
|
|
|
—
|
|
—
|
|
||||||
Prior service cost/(credit)
|
(9
|
)
|
(10
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Net periodic defined benefit cost
|
31
|
|
(46
|
)
|
|
8
|
|
11
|
|
|
(18
|
)
|
(16
|
)
|
||||||
Other defined benefit pension plans
(a)
|
3
|
|
3
|
|
|
5
|
|
2
|
|
|
NA
|
|
NA
|
|
||||||
Total defined benefit plans
|
34
|
|
(43
|
)
|
|
13
|
|
13
|
|
|
(18
|
)
|
(16
|
)
|
||||||
Total defined contribution plans
|
89
|
|
108
|
|
|
83
|
|
80
|
|
|
NA
|
|
NA
|
|
||||||
Total pension and OPEB cost included in compensation expense
|
$
|
123
|
|
$
|
65
|
|
|
$
|
96
|
|
$
|
93
|
|
|
$
|
(18
|
)
|
$
|
(16
|
)
|
(a)
|
Includes various defined benefit pension plans which are individually immaterial.
|
|
Three months ended
March 31,
|
||||||
(in millions)
|
2015
|
|
2014
|
||||
Cost of prior grants of restricted stock units (“RSUs”) and stock appreciation rights (“SARs”) that are amortized over their applicable vesting periods
|
$
|
292
|
|
|
$
|
410
|
|
Accrual of estimated costs of stock awards to be granted in future periods including those to full-career eligible employees
|
273
|
|
|
208
|
|
||
Total noncash compensation expense related to employee stock-based incentive plans
|
$
|
565
|
|
|
$
|
618
|
|
|
Three months ended March 31,
|
||||||
(in millions)
|
2015
|
|
2014
|
||||
Compensation expense
|
$
|
8,043
|
|
|
$
|
7,859
|
|
Noncompensation expense:
|
|
|
|
||||
Occupancy expense
|
933
|
|
|
952
|
|
||
Technology, communications and equipment expense
|
1,491
|
|
|
1,411
|
|
||
Professional and outside services
|
1,634
|
|
|
1,786
|
|
||
Marketing
|
591
|
|
|
564
|
|
||
Other expense
(a)(b)
|
2,191
|
|
|
2,064
|
|
||
Total noncompensation expense
|
6,840
|
|
|
6,777
|
|
||
Total noninterest expense
|
$
|
14,883
|
|
|
$
|
14,636
|
|
(a)
|
Included firmwide legal expense of
$687 million
for the
three months ended
March 31, 2015. Firmwide legal expense was not material for the three months ended March 31, 2014.
|
(b)
|
Included Federal Deposit Insurance Corporation-related (“FDIC”) expense of
$318 million
and
$293 million
for the
three months ended
March 31, 2015, and 2014
, respectively.
|
|
Three months
ended March 31,
|
|||||
(in millions)
|
2015
|
2014
|
||||
Realized gains
|
$
|
92
|
|
$
|
148
|
|
Realized losses
|
(39
|
)
|
(115
|
)
|
||
OTTI losses
|
(1
|
)
|
(3
|
)
|
||
Net securities gains
|
$
|
52
|
|
$
|
30
|
|
|
|
|
||||
OTTI losses
|
|
|
||||
Credit-related losses recognized in income
|
(1
|
)
|
—
|
|
||
Securities the Firm intends to sell
|
—
|
|
(3
|
)
|
||
Total OTTI losses recognized in income
|
$
|
(1
|
)
|
$
|
(3
|
)
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||
(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)
|
$
|
63,165
|
|
$
|
2,443
|
|
$
|
52
|
|
|
$
|
65,556
|
|
|
$
|
63,089
|
|
$
|
2,302
|
|
$
|
72
|
|
|
$
|
65,319
|
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Prime and Alt-A
|
6,433
|
|
83
|
|
22
|
|
|
6,494
|
|
|
5,595
|
|
78
|
|
29
|
|
|
5,644
|
|
||||||||
Subprime
|
633
|
|
13
|
|
—
|
|
|
646
|
|
|
677
|
|
14
|
|
—
|
|
|
691
|
|
||||||||
Non-U.S.
|
34,555
|
|
909
|
|
1
|
|
|
35,463
|
|
|
43,550
|
|
1,010
|
|
—
|
|
|
44,560
|
|
||||||||
Commercial
|
22,157
|
|
461
|
|
12
|
|
|
22,606
|
|
|
20,687
|
|
438
|
|
17
|
|
|
21,108
|
|
||||||||
Total mortgage-backed securities
|
126,943
|
|
3,909
|
|
87
|
|
|
130,765
|
|
|
133,598
|
|
3,842
|
|
118
|
|
|
137,322
|
|
||||||||
U.S. Treasury and government agencies
(a)
|
11,952
|
|
29
|
|
16
|
|
|
11,965
|
|
|
13,603
|
|
56
|
|
14
|
|
|
13,645
|
|
||||||||
Obligations of U.S. states and municipalities
|
28,922
|
|
2,302
|
|
25
|
|
|
31,199
|
|
|
27,841
|
|
2,243
|
|
16
|
|
|
30,068
|
|
||||||||
Certificates of deposit
|
1,021
|
|
3
|
|
1
|
|
|
1,023
|
|
|
1,103
|
|
1
|
|
1
|
|
|
1,103
|
|
||||||||
Non-U.S. government debt securities
|
44,543
|
|
1,330
|
|
16
|
|
|
45,857
|
|
|
51,492
|
|
1,272
|
|
21
|
|
|
52,743
|
|
||||||||
Corporate debt securities
|
16,850
|
|
369
|
|
28
|
|
|
17,191
|
|
|
18,158
|
|
398
|
|
24
|
|
|
18,532
|
|
||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Collateralized loan obligations
|
29,664
|
|
131
|
|
112
|
|
|
29,683
|
|
|
30,229
|
|
147
|
|
182
|
|
|
30,194
|
|
||||||||
Other
|
11,713
|
|
157
|
|
6
|
|
|
11,864
|
|
|
12,442
|
|
184
|
|
11
|
|
|
12,615
|
|
||||||||
Total available-for-sale debt securities
|
271,608
|
|
8,230
|
|
291
|
|
|
279,547
|
|
|
288,466
|
|
8,143
|
|
387
|
|
|
296,222
|
|
||||||||
Available-for-sale equity securities
|
2,309
|
|
16
|
|
—
|
|
|
2,325
|
|
|
2,513
|
|
17
|
|
—
|
|
|
2,530
|
|
||||||||
Total available-for-sale securities
|
$
|
273,917
|
|
$
|
8,246
|
|
$
|
291
|
|
|
$
|
281,872
|
|
|
$
|
290,979
|
|
$
|
8,160
|
|
$
|
387
|
|
|
$
|
298,752
|
|
Total held-to-maturity securities
(b)
|
$
|
49,264
|
|
$
|
2,118
|
|
$
|
12
|
|
|
$
|
51,370
|
|
|
$
|
49,252
|
|
$
|
1,902
|
|
$
|
—
|
|
|
$
|
51,154
|
|
(a)
|
Included total U.S. government-sponsored enterprise obligations with fair values of
$55.0 billion
and
$59.3 billion
at March 31, 2015, and
December 31, 2014
, respectively.
|
(b)
|
As of March 31, 2015, consists of MBS issued by U. S. government-sponsored enterprises with an amortized cost of
$34.2 billion
, MBS issued by U.S. government agencies with an amortized cost of
$3.4 billion
and obligations of U.S. states and municipalities with an amortized cost of
$11.6 billion
. As of December 31, 2014, consists of MBS issued by U.S. government-sponsored enterprises with an amortized cost of
$35.3 billion
, MBS issued by U.S. government agencies with an amortized cost of
$3.7 billion
and obligations of U.S. states and municipalities with an amortized cost of
$10.2 billion
.
|
|
Securities with gross unrealized losses
|
||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
|
||||||||||||||
March 31, 2015 (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
|
$
|
858
|
|
$
|
23
|
|
|
$
|
2,994
|
|
$
|
29
|
|
$
|
3,852
|
|
$
|
52
|
|
Residential:
|
|
|
|
|
|
|
|
||||||||||||
Prime and Alt-A
|
914
|
|
7
|
|
|
436
|
|
15
|
|
1,350
|
|
22
|
|
||||||
Subprime
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Non-U.S.
|
597
|
|
1
|
|
|
—
|
|
—
|
|
597
|
|
1
|
|
||||||
Commercial
|
4,726
|
|
12
|
|
|
—
|
|
—
|
|
4,726
|
|
12
|
|
||||||
Total mortgage-backed securities
|
7,095
|
|
43
|
|
|
3,430
|
|
44
|
|
10,525
|
|
87
|
|
||||||
U.S. Treasury and government agencies
|
6,941
|
|
16
|
|
|
—
|
|
—
|
|
6,941
|
|
16
|
|
||||||
Obligations of U.S. states and municipalities
|
1,729
|
|
22
|
|
|
172
|
|
3
|
|
1,901
|
|
25
|
|
||||||
Certificates of deposit
|
740
|
|
1
|
|
|
—
|
|
—
|
|
740
|
|
1
|
|
||||||
Non-U.S. government debt securities
|
2,018
|
|
7
|
|
|
721
|
|
9
|
|
2,739
|
|
16
|
|
||||||
Corporate debt securities
|
2,028
|
|
26
|
|
|
241
|
|
2
|
|
2,269
|
|
28
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||||||
Collateralized loan obligations
|
9,803
|
|
28
|
|
|
9,886
|
|
84
|
|
19,689
|
|
112
|
|
||||||
Other
|
2,400
|
|
6
|
|
|
—
|
|
—
|
|
2,400
|
|
6
|
|
||||||
Total available-for-sale debt securities
|
32,754
|
|
149
|
|
|
14,450
|
|
142
|
|
47,204
|
|
291
|
|
||||||
Available-for-sale equity securities
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Held-to-maturity securities
|
878
|
|
12
|
|
|
—
|
|
—
|
|
878
|
|
12
|
|
||||||
Total securities with gross unrealized losses
|
$
|
33,632
|
|
$
|
161
|
|
|
$
|
14,450
|
|
$
|
142
|
|
$
|
48,082
|
|
$
|
303
|
|
|
Securities with gross unrealized losses
|
||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
|
||||||||||||||
December 31, 2014 (in millions)
|
Fair value
|
Gross unrealized losses
|
|
Fair value
|
Gross unrealized losses
|
Total fair value
|
Total gross unrealized losses
|
||||||||||||
Available-for-sale debt securities
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agencies
|
$
|
1,118
|
|
$
|
5
|
|
|
$
|
4,989
|
|
$
|
67
|
|
$
|
6,107
|
|
$
|
72
|
|
Residential:
|
|
|
|
|
|
|
|
||||||||||||
Prime and Alt-A
|
1,840
|
|
10
|
|
|
405
|
|
19
|
|
2,245
|
|
29
|
|
||||||
Subprime
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Non-U.S.
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Commercial
|
4,803
|
|
15
|
|
|
92
|
|
2
|
|
4,895
|
|
17
|
|
||||||
Total mortgage-backed securities
|
7,761
|
|
30
|
|
|
5,486
|
|
88
|
|
13,247
|
|
118
|
|
||||||
U.S. Treasury and government agencies
|
8,412
|
|
14
|
|
|
—
|
|
—
|
|
8,412
|
|
14
|
|
||||||
Obligations of U.S. states and municipalities
|
1,405
|
|
15
|
|
|
130
|
|
1
|
|
1,535
|
|
16
|
|
||||||
Certificates of deposit
|
1,050
|
|
1
|
|
|
—
|
|
—
|
|
1,050
|
|
1
|
|
||||||
Non-U.S. government debt securities
|
4,433
|
|
4
|
|
|
906
|
|
17
|
|
5,339
|
|
21
|
|
||||||
Corporate debt securities
|
2,492
|
|
22
|
|
|
80
|
|
2
|
|
2,572
|
|
24
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||||||
Collateralized loan obligations
|
13,909
|
|
76
|
|
|
9,012
|
|
106
|
|
22,921
|
|
182
|
|
||||||
Other
|
2,258
|
|
11
|
|
|
—
|
|
—
|
|
2,258
|
|
11
|
|
||||||
Total available-for-sale debt securities
|
41,720
|
|
173
|
|
|
15,614
|
|
214
|
|
57,334
|
|
387
|
|
||||||
Available-for-sale equity securities
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Held-to-maturity securities
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Total securities with gross unrealized losses
|
$
|
41,720
|
|
$
|
173
|
|
|
$
|
15,614
|
|
$
|
214
|
|
$
|
57,334
|
|
$
|
387
|
|
|
Three months ended March 31,
|
|||||
(in millions)
|
2015
|
|
2014
|
|
||
Balance, beginning of period
|
$
|
3
|
|
$
|
1
|
|
Additions:
|
|
|
||||
Newly credit-impaired securities
|
1
|
|
—
|
|
||
Balance, end of period
|
$
|
4
|
|
$
|
1
|
|
By remaining maturity
March 31, 2015
(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
|
$
|
876
|
|
$
|
13,327
|
|
$
|
5,423
|
|
$
|
107,317
|
|
$
|
126,943
|
|
Fair value
|
882
|
|
13,628
|
|
5,635
|
|
110,620
|
|
130,765
|
|
|||||
Average yield
(b)
|
2.38
|
%
|
1.73
|
%
|
3.28
|
%
|
3.03
|
%
|
2.90
|
%
|
|||||
U.S. Treasury and government agencies
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
600
|
|
$
|
—
|
|
$
|
10,169
|
|
$
|
1,183
|
|
$
|
11,952
|
|
Fair value
|
603
|
|
—
|
|
10,162
|
|
1,200
|
|
11,965
|
|
|||||
Average yield
(b)
|
1.54
|
%
|
—
|
%
|
0.21
|
%
|
0.38
|
%
|
0.29
|
%
|
|||||
Obligations of U.S. states and municipalities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
55
|
|
$
|
516
|
|
$
|
1,468
|
|
$
|
26,883
|
|
$
|
28,922
|
|
Fair value
|
55
|
|
533
|
|
1,551
|
|
29,060
|
|
31,199
|
|
|||||
Average yield
(b)
|
2.96
|
%
|
5.05
|
%
|
4.88
|
%
|
6.68
|
%
|
6.56
|
%
|
|||||
Certificates of deposit
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
969
|
|
$
|
52
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,021
|
|
Fair value
|
970
|
|
53
|
|
—
|
|
—
|
|
1,023
|
|
|||||
Average yield
(b)
|
3.00
|
%
|
3.28
|
%
|
—
|
%
|
—
|
%
|
3.02
|
%
|
|||||
Non-U.S. government debt securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
10,455
|
|
$
|
13,934
|
|
$
|
17,842
|
|
$
|
2,312
|
|
$
|
44,543
|
|
Fair value
|
10,481
|
|
14,282
|
|
18,598
|
|
2,496
|
|
45,857
|
|
|||||
Average yield
(b)
|
3.24
|
%
|
1.81
|
%
|
1.07
|
%
|
0.99
|
%
|
1.81
|
%
|
|||||
Corporate debt securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
3,661
|
|
$
|
8,991
|
|
$
|
4,066
|
|
$
|
132
|
|
$
|
16,850
|
|
Fair value
|
3,684
|
|
9,208
|
|
4,165
|
|
134
|
|
17,191
|
|
|||||
Average yield
(b)
|
2.20
|
%
|
2.28
|
%
|
2.60
|
%
|
4.26
|
%
|
2.36
|
%
|
|||||
Asset-backed securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
—
|
|
$
|
1,689
|
|
$
|
18,859
|
|
$
|
20,829
|
|
$
|
41,377
|
|
Fair value
|
—
|
|
1,700
|
|
18,935
|
|
20,912
|
|
41,547
|
|
|||||
Average yield
(b)
|
—
|
%
|
1.62
|
%
|
1.73
|
%
|
1.77
|
%
|
1.74
|
%
|
|||||
Total available-for-sale debt securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
16,616
|
|
$
|
38,509
|
|
$
|
57,827
|
|
$
|
158,656
|
|
$
|
271,608
|
|
Fair value
|
16,675
|
|
39,404
|
|
59,046
|
|
164,422
|
|
279,547
|
|
|||||
Average yield
(b)
|
2.89
|
%
|
1.93
|
%
|
1.55
|
%
|
3.44
|
%
|
2.79
|
%
|
|||||
Available-for-sale equity securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2,309
|
|
$
|
2,309
|
|
Fair value
|
—
|
|
—
|
|
—
|
|
2,325
|
|
2,325
|
|
|||||
Average yield
(b)
|
—
|
%
|
—
|
%
|
—
|
%
|
0.24
|
%
|
0.24
|
%
|
|||||
Total available-for-sale securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
16,616
|
|
$
|
38,509
|
|
$
|
57,827
|
|
$
|
160,965
|
|
$
|
273,917
|
|
Fair value
|
16,675
|
|
39,404
|
|
59,046
|
|
166,747
|
|
281,872
|
|
|||||
Average yield
(b)
|
2.89
|
%
|
1.93
|
%
|
1.55
|
%
|
3.39
|
%
|
2.76
|
%
|
|||||
Total held-to-maturity securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
—
|
|
$
|
53
|
|
$
|
603
|
|
$
|
48,608
|
|
$
|
49,264
|
|
Fair value
|
—
|
|
53
|
|
634
|
|
50,683
|
|
51,370
|
|
|||||
Average yield
(b)
|
—
|
|
4.39
|
%
|
4.94
|
%
|
4.01
|
%
|
4.02%
|
|
(a)
|
U.S. government-sponsored enterprises were the only issuers whose securities exceeded
10%
of
JPMorgan Chase
’s total stockholders’ equity at March 31, 2015.
|
(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, is approximately
five years
for agency residential mortgage-backed securities,
three years
for agency residential collateralized mortgage obligations and
five years
for U.S. nonagency residential collateralized mortgage obligations.
|
|
March 31, 2015
|
|
|
December 31, 2014
|
|
|||||||||||||||||
(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
|
$
|
372,595
|
|
$
|
(159,758
|
)
|
$
|
212,837
|
|
|
|
$
|
347,142
|
|
|
$
|
(142,719
|
)
|
$
|
204,423
|
|
|
Securities purchased under resale agreements where an appropriate legal opinion has not been either sought or obtained
|
6,127
|
|
|
6,127
|
|
|
|
10,598
|
|
|
|
10,598
|
|
|
||||||||
Total securities purchased under resale agreements
|
$
|
378,722
|
|
$
|
(159,758
|
)
|
$
|
218,964
|
|
(a)
|
|
$
|
357,740
|
|
|
$
|
(142,719
|
)
|
$
|
215,021
|
|
(a)
|
Securities borrowed
|
$
|
108,376
|
|
NA
|
|
$
|
108,376
|
|
(b)(c)
|
|
$
|
110,435
|
|
|
NA
|
|
$
|
110,435
|
|
(b)(c)
|
(a)
|
At
March 31, 2015
, and
December 31, 2014
, included securities purchased under resale agreements of
$29.3 billion
and
$28.6 billion
, respectively, accounted for at fair value.
|
(b)
|
At
March 31, 2015
, and
December 31, 2014
, included securities borrowed of
$792 million
and
$992 million
, respectively, accounted for at fair value.
|
(c)
|
Included
$23.6 billion
and
$27.7 billion
at
March 31, 2015
, and
December 31, 2014
, respectively, of securities borrowed where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement.
|
|
March 31, 2015
|
|
December 31, 2014
|
|
||||||||||||||||||||||||||
|
|
|
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
|
$
|
212,837
|
|
|
$
|
(209,548
|
)
|
$
|
(207
|
)
|
$
|
3,082
|
|
|
$
|
204,423
|
|
|
$
|
(201,375
|
)
|
|
$
|
(246
|
)
|
|
$
|
2,802
|
|
|
Securities borrowed
|
$
|
84,744
|
|
|
$
|
(81,603
|
)
|
$
|
—
|
|
$
|
3,141
|
|
|
$
|
82,748
|
|
|
$
|
(80,338
|
)
|
|
$
|
—
|
|
|
$
|
2,410
|
|
|
(a)
|
For some counterparties, the sum of the financial instruments and cash collateral not nettable on the Consolidated balance sheets may exceed the net asset balance. Where this is the case the total amounts reported in these two columns are limited to the balance of the net reverse repurchase agreement or securities borrowed asset with that counterparty. As a result a net exposure amount is reported even though the Firm, on an aggregate basis for its securities purchased under resale agreements and securities borrowed, has received securities collateral with a total fair value that is greater than the funds provided to counterparties.
|
(b)
|
Includes financial instrument collateral received, repurchase liabilities and securities loaned liabilities with an appropriate legal opinion with respect to the master netting agreement; these amounts are not presented net on the Consolidated balance sheets because other U.S. GAAP netting criteria are not met.
|
|
March 31, 2015
|
|
|
December 31, 2014
|
|
||||||||||||||||||
(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
|
$
|
318,721
|
|
$
|
(159,758
|
)
|
$
|
158,963
|
|
|
|
$
|
290,529
|
|
|
$
|
(142,719
|
)
|
|
$
|
147,810
|
|
|
Securities sold under repurchase agreements where an appropriate legal opinion has not been either sought or obtained
(a)
|
17,654
|
|
|
17,654
|
|
|
|
21,996
|
|
|
|
|
21,996
|
|
|
||||||||
Total securities sold under repurchase agreements
|
$
|
336,375
|
|
$
|
(159,758
|
)
|
$
|
176,617
|
|
(c)
|
|
$
|
312,525
|
|
|
$
|
(142,719
|
)
|
|
$
|
169,806
|
|
(c)
|
Securities loaned
(b)
|
$
|
25,179
|
|
NA
|
|
$
|
25,179
|
|
(d)(e)
|
|
$
|
25,927
|
|
|
NA
|
|
|
$
|
25,927
|
|
(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 lending transactions of
$5.7 billion
and
$4.1 billion
at
March 31, 2015
, and
December 31, 2014
, respectively, where the Firm is acting as lender. These amounts are presented within other liabilities in the Consolidated balance sheets.
|
(c)
|
At
March 31, 2015
, and
December 31, 2014
, included securities sold under repurchase agreements of
$3.6 billion
and
$3.0 billion
, respectively, accounted for at fair value.
|
(d)
|
There were
no
securities loaned accounted for at fair value as of
March 31, 2015
and
December 31, 2014
.
|
(e)
|
Included
$30 million
and
$271 million
at
March 31, 2015
, and
December 31, 2014
, respectively, of securities loaned where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement.
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||||
|
|
|
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
|
$
|
158,963
|
|
|
$
|
(157,232
|
)
|
$
|
(362
|
)
|
$
|
1,369
|
|
|
$
|
147,810
|
|
|
$
|
(145,732
|
)
|
|
$
|
(497
|
)
|
|
$
|
1,581
|
|
Securities loaned
|
$
|
25,149
|
|
|
$
|
(24,866
|
)
|
$
|
—
|
|
$
|
283
|
|
|
$
|
25,656
|
|
|
$
|
(25,287
|
)
|
|
$
|
—
|
|
|
$
|
369
|
|
(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.
|
•
|
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, prime mortgage and home equity loans held in AM and prime mortgage loans held in Corporate.
|
(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, AM and Corporate. Excludes prime mortgage and home equity loans held in AM and prime mortgage loans held in Corporate. Classes are internally defined and may not align with regulatory definitions.
|
(d)
|
Other primarily includes loans to SPEs and loans to private banking clients. See Note 1 of
JPMorgan Chase
’s
2014
Annual Report
for additional information on special-purpose entities (“SPEs”).
|
March 31, 2015
|
Consumer, excluding credit card
|
Credit card
(a)
|
Wholesale
|
Total
|
|
||||||||
(in millions)
|
|
||||||||||||
Retained
|
$
|
304,917
|
|
$
|
120,835
|
|
$
|
331,219
|
|
$
|
756,971
|
|
(b)
|
Held-for-sale
|
298
|
|
2,422
|
|
2,204
|
|
4,924
|
|
|
||||
At fair value
|
—
|
|
—
|
|
2,290
|
|
2,290
|
|
|
||||
Total
|
$
|
305,215
|
|
$
|
123,257
|
|
$
|
335,713
|
|
$
|
764,185
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2014
|
Consumer, excluding credit card
|
Credit card
(a)
|
Wholesale
|
Total
|
|
||||||||
(in millions)
|
|
||||||||||||
Retained
|
$
|
294,979
|
|
$
|
128,027
|
|
$
|
324,502
|
|
$
|
747,508
|
|
(b)
|
Held-for-sale
|
395
|
|
3,021
|
|
3,801
|
|
7,217
|
|
|
||||
At fair value
|
—
|
|
—
|
|
2,611
|
|
2,611
|
|
|
||||
Total
|
$
|
295,374
|
|
$
|
131,048
|
|
$
|
330,914
|
|
$
|
757,336
|
|
|
(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
$1.2 billion
and
$1.3 billion
at
March 31, 2015
, and
December 31, 2014
, respectively.
|
|
|
2015
|
|
2014
|
||||||||||||||||||||||||
Three months ended March 31, (in millions)
|
|
Consumer, excluding credit card
|
|
Credit card
|
Wholesale
|
Total
|
|
Consumer, excluding credit card
|
|
Credit card
|
Wholesale
|
Total
|
||||||||||||||||
Purchases
|
|
$
|
1,608
|
|
(a)(b)
|
$
|
—
|
|
$
|
208
|
|
$
|
1,816
|
|
|
$
|
1,582
|
|
(a)(b)
|
$
|
—
|
|
$
|
121
|
|
$
|
1,703
|
|
Sales
|
|
1,736
|
|
|
177
|
|
2,449
|
|
4,362
|
|
|
891
|
|
|
—
|
|
2,356
|
|
3,247
|
|
||||||||
Retained loans reclassified to held-for-sale
|
|
18
|
|
|
—
|
|
320
|
|
338
|
|
|
—
|
|
|
—
|
|
297
|
|
297
|
|
(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
$11.2 billion
and
$1.7 billion
for the three months ended
March 31, 2015
and
2014
,
respectively.
|
|
Three months ended March 31,
|
|||||
(in millions)
|
2015
|
2014
|
||||
Net gains/(losses) on sales of loans (including lower of cost or fair value adjustments)
(a)
|
|
|
||||
Consumer, excluding credit card
|
$
|
91
|
|
$
|
42
|
|
Credit card
|
16
|
|
—
|
|
||
Wholesale
|
(6
|
)
|
24
|
|
||
Total net gains/(losses) on sales of loans (including lower of cost or fair value adjustments)
|
$
|
101
|
|
$
|
66
|
|
(a)
|
Excludes sales related to loans accounted for at fair value.
|
(in millions)
|
March 31,
2015 |
December 31,
2014 |
||||
Residential real estate –
excluding PCI
|
|
|
||||
Home equity:
|
|
|
||||
Senior lien
|
$
|
15,922
|
|
$
|
16,367
|
|
Junior lien
|
34,968
|
|
36,375
|
|
||
Mortgages:
|
|
|
||||
Prime, including option ARMs
|
117,275
|
|
104,921
|
|
||
Subprime
|
4,826
|
|
5,056
|
|
||
Other consumer loans
|
|
|
||||
Auto
|
55,455
|
|
54,536
|
|
||
Business banking
|
20,375
|
|
20,058
|
|
||
Student and other
|
10,740
|
|
10,970
|
|
||
Residential real estate – PCI
|
|
|
||||
Home equity
|
16,638
|
|
17,095
|
|
||
Prime mortgage
|
9,916
|
|
10,220
|
|
||
Subprime mortgage
|
3,559
|
|
3,673
|
|
||
Option ARMs
|
15,243
|
|
15,708
|
|
||
Total retained loans
|
$
|
304,917
|
|
$
|
294,979
|
|
(a)
|
Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included
$3.0 billion
and
$2.6 billion
;
30
–
149
days past due included
$3.0 billion
and
$3.5 billion
; and
150
or more days past due included
$6.1 billion
and
$6.0 billion
at
March 31, 2015
, and
December 31, 2014
, respectively.
|
(b)
|
At
March 31, 2015
, and
December 31, 2014
, Prime, including option ARMs loans excluded mortgage loans insured by U.S. government agencies of
$9.0 billion
and
$9.5 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, were 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
March 31, 2015
, and
December 31, 2014
, these balances included
$4.0 billion
and
$4.2 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. There were
no
loans not insured by U.S. government agencies that are
90
or more days past due and still accruing at
March 31, 2015
and
December 31, 2014
.
|
(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 loan-to-value (“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 both
March 31, 2015
, and
December 31, 2014
, included mortgage loans insured by U.S. government agencies of
$12.1 billion
.
|
|
|
Delinquencies
|
|
|
|
Total 30+ day delinquency rate
|
|||||||||||||
March 31, 2015
|
|
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)
|
|
$
|
191
|
|
|
$
|
60
|
|
|
$
|
134
|
|
|
$
|
23,335
|
|
|
1.65
|
%
|
Beyond the revolving period
|
|
108
|
|
|
41
|
|
|
110
|
|
|
8,654
|
|
|
2.99
|
|
||||
HELOANs
|
|
52
|
|
|
17
|
|
|
20
|
|
|
2,979
|
|
|
2.99
|
|
||||
Total
|
|
$
|
351
|
|
|
$
|
118
|
|
|
$
|
264
|
|
|
$
|
34,968
|
|
|
2.10
|
%
|
|
|
Delinquencies
|
|
|
|
Total 30+ day delinquency rate
|
|||||||||||||
December 31, 2014
|
|
30–89 days past due
|
|
90–149 days past due
|
|
150+ days
past due
|
|
Total loans
|
|
||||||||||
(in millions, except ratios)
|
|
|
|
|
|
||||||||||||||
HELOCs:
(a)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Within the revolving period
(b)
|
|
$
|
233
|
|
|
$
|
69
|
|
|
$
|
141
|
|
|
$
|
25,252
|
|
|
1.75
|
%
|
Beyond the revolving period
|
|
108
|
|
|
37
|
|
|
107
|
|
|
7,979
|
|
|
3.16
|
|
||||
HELOANs
|
|
66
|
|
|
20
|
|
|
19
|
|
|
3,144
|
|
|
3.34
|
|
||||
Total
|
|
$
|
407
|
|
|
$
|
126
|
|
|
$
|
267
|
|
|
$
|
36,375
|
|
|
2.20
|
%
|
(a)
|
These HELOCs are predominantly revolving loans for a
10
-year period, after which time the HELOC converts to a loan with a
20
-year amortization period, but also include HELOCs originated by Washington Mutual that require interest-only payments beyond the revolving period.
|
(b)
|
The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are experiencing financial difficulty or when the collateral does not support the loan amount.
|
|
Home equity
|
|
Mortgages
|
|
Total residential
real estate
– excluding PCI
|
|||||||||||||||||||||||||||||
(in millions)
|
Senior lien
|
|
Junior lien
|
|
Prime, including
option ARMs
|
|
Subprime
|
|
||||||||||||||||||||||||||
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|||||||||||||||||||||
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
With an allowance
|
$
|
553
|
|
$
|
552
|
|
|
$
|
724
|
|
$
|
722
|
|
|
$
|
4,596
|
|
$
|
4,949
|
|
|
$
|
2,092
|
|
$
|
2,239
|
|
|
$
|
7,965
|
|
$
|
8,462
|
|
Without an allowance
(a)
|
534
|
|
549
|
|
|
569
|
|
582
|
|
|
1,142
|
|
1,196
|
|
|
613
|
|
639
|
|
|
2,858
|
|
2,966
|
|
||||||||||
Total impaired loans
(b)(c)
|
$
|
1,087
|
|
$
|
1,101
|
|
|
$
|
1,293
|
|
$
|
1,304
|
|
|
$
|
5,738
|
|
$
|
6,145
|
|
|
$
|
2,705
|
|
$
|
2,878
|
|
|
$
|
10,823
|
|
$
|
11,428
|
|
Allowance for loan losses related to impaired loans
|
$
|
85
|
|
$
|
84
|
|
|
$
|
145
|
|
$
|
147
|
|
|
$
|
120
|
|
$
|
127
|
|
|
$
|
63
|
|
$
|
64
|
|
|
$
|
413
|
|
$
|
422
|
|
Unpaid principal balance of impaired loans
(d)
|
1,426
|
|
1,451
|
|
|
2,546
|
|
2,603
|
|
|
7,331
|
|
7,813
|
|
|
3,968
|
|
4,200
|
|
|
15,271
|
|
16,067
|
|
||||||||||
Impaired loans on nonaccrual status
(e)
|
623
|
|
628
|
|
|
620
|
|
632
|
|
|
1,517
|
|
1,559
|
|
|
898
|
|
931
|
|
|
3,658
|
|
3,750
|
|
(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. At
March 31, 2015
, Chapter 7 residential real estate loans included approximately
18%
of senior lien home equity,
11%
of junior lien home equity,
23%
of prime mortgages, including option ARMs, and
15%
of subprime mortgages that were
30 days
or more past due.
|
(b)
|
At
March 31, 2015
, and
December 31, 2014
,
$4.8 billion
and
$4.9 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
March 31, 2015
, and
December 31, 2014
. 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
March 31, 2015
, and
December 31, 2014
, nonaccrual loans included
$2.8 billion
and
$2.9 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
2014
Annual Report
.
|
Three months ended March 31,
|
Average impaired loans
|
|
Interest income on
impaired loans
(a)
|
|
Interest income on impaired
loans on a cash basis
(a)
|
|||||||||||||||
(in millions)
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
||||||||||||
Home equity
|
|
|
|
|
|
|
|
|
||||||||||||
Senior lien
|
$
|
1,095
|
|
$
|
1,143
|
|
|
$
|
13
|
|
$
|
14
|
|
|
$
|
9
|
|
$
|
9
|
|
Junior lien
|
1,298
|
|
1,321
|
|
|
20
|
|
21
|
|
|
13
|
|
14
|
|
||||||
Mortgages
|
|
|
|
|
|
|
|
|
||||||||||||
Prime, including option ARMs
|
6,054
|
|
6,956
|
|
|
59
|
|
68
|
|
|
12
|
|
13
|
|
||||||
Subprime
|
2,822
|
|
3,667
|
|
|
37
|
|
49
|
|
|
11
|
|
13
|
|
||||||
Total residential real estate – excluding PCI
|
$
|
11,269
|
|
$
|
13,087
|
|
|
$
|
129
|
|
$
|
152
|
|
|
$
|
45
|
|
$
|
49
|
|
(a)
|
Generally, interest income on loans modified in TDRs is recognized on a cash basis until such time as the borrower has made a minimum of
six
payments under the new terms.
|
Three months ended March 31,
|
Home equity
|
|
Mortgages
|
|
Total residential
real estate -
excluding PCI
|
|||||||||||||||||||
Senior lien
|
|
Junior lien
|
|
Prime, including option ARMs
|
|
Subprime
|
|
|||||||||||||||||
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|||||||||||
Number of loans approved for a trial modification
|
356
|
|
201
|
|
|
154
|
|
184
|
|
|
245
|
|
255
|
|
|
422
|
|
499
|
|
|
1,177
|
|
1,139
|
|
Number of loans permanently modified
|
262
|
|
295
|
|
|
508
|
|
958
|
|
|
361
|
|
531
|
|
|
489
|
|
767
|
|
|
1,620
|
|
2,551
|
|
Concession granted:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate reduction
|
75
|
%
|
65
|
%
|
|
77
|
%
|
84
|
%
|
|
64
|
%
|
60
|
%
|
|
71
|
%
|
60
|
%
|
|
72
|
%
|
70
|
%
|
Term or payment extension
|
81
|
|
80
|
|
|
86
|
|
83
|
|
|
84
|
|
88
|
|
|
81
|
|
72
|
|
|
83
|
|
80
|
|
Principal and/or interest deferred
|
31
|
|
15
|
|
|
28
|
|
21
|
|
|
37
|
|
33
|
|
|
26
|
|
20
|
|
|
30
|
|
22
|
|
Principal forgiveness
|
8
|
|
30
|
|
|
4
|
|
28
|
|
|
28
|
|
31
|
|
|
32
|
|
41
|
|
|
18
|
|
32
|
|
Other
(b)
|
—
|
|
1
|
|
|
—
|
|
—
|
|
|
8
|
|
17
|
|
|
11
|
|
13
|
|
|
5
|
|
7
|
|
(a)
|
Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages exceeds
100%
because predominantly all of the modifications include more than one type of concession. A significant portion of trial modifications include interest rate reductions and/or term or payment extensions.
|
(b)
|
Represents variable interest rate to fixed interest rate modifications.
|
Three months ended March 31,
(in millions, except weighted-average data and number of loans) |
Home equity
|
|
Mortgages
|
|
Total residential real estate – excluding PCI
|
|||||||||||||||||||||||||||||
Senior lien
|
|
Junior lien
|
|
Prime, including option ARMs
|
|
Subprime
|
|
|||||||||||||||||||||||||||
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|||||||||||||||||||||
Weighted-average interest rate of loans with interest rate reductions – before TDR
|
6.11
|
%
|
6.67
|
%
|
|
4.97
|
%
|
4.75
|
%
|
|
5.03
|
%
|
5.22
|
%
|
|
6.80
|
%
|
7.57
|
%
|
|
5.68
|
%
|
5.91
|
%
|
||||||||||
Weighted-average interest rate of loans with interest rate reductions – after TDR
|
2.72
|
|
3.02
|
|
|
2.21
|
|
1.81
|
|
|
2.38
|
|
2.76
|
|
|
3.22
|
|
3.41
|
|
|
2.64
|
|
2.77
|
|
||||||||||
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR
|
18
|
|
18
|
|
|
18
|
|
20
|
|
|
25
|
|
24
|
|
|
24
|
|
25
|
|
|
23
|
|
23
|
|
||||||||||
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR
|
31
|
|
31
|
|
|
34
|
|
35
|
|
|
38
|
|
37
|
|
|
36
|
|
36
|
|
|
36
|
|
36
|
|
||||||||||
Charge-offs recognized upon permanent modification
|
$
|
—
|
|
$
|
1
|
|
|
$
|
1
|
|
$
|
14
|
|
|
$
|
1
|
|
$
|
2
|
|
|
$
|
1
|
|
$
|
1
|
|
|
$
|
3
|
|
$
|
18
|
|
Principal deferred
|
3
|
|
1
|
|
|
3
|
|
3
|
|
|
11
|
|
13
|
|
|
7
|
|
7
|
|
|
24
|
|
24
|
|
||||||||||
Principal forgiven
|
1
|
|
3
|
|
|
—
|
|
11
|
|
|
9
|
|
17
|
|
|
10
|
|
21
|
|
|
20
|
|
52
|
|
||||||||||
Balance of loans that redefaulted within one year of permanent modification
(a)
|
$
|
3
|
|
$
|
6
|
|
|
$
|
2
|
|
$
|
3
|
|
|
$
|
18
|
|
$
|
30
|
|
|
$
|
17
|
|
$
|
18
|
|
|
$
|
40
|
|
$
|
57
|
|
(a)
|
Represents loans permanently modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within
one year
of the modification. The dollar amounts presented represent the balance of such loans at the end of the reporting period in which such loans defaulted. For residential real estate loans modified in TDRs, payment default is deemed to occur when the loan becomes
two
contractual payments past due. In the event that a modified loan redefaults, it is probable that the loan will ultimately be liquidated through foreclosure or another similar type of liquidation transaction. Redefaults of loans modified within the last
12 months
may not be representative of ultimate redefault levels.
|
(in millions, except ratios)
|
Auto
|
|
Business banking
|
|
Student and other
|
|
Total other consumer
|
|
|||||||||||||||||||||||
Mar 31,
2015 |
|
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
|
Dec 31,
2014 |
|
Mar 31,
2015 |
|
Dec 31,
2014 |
|
|||||||||||||||||
Loan delinquency
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
$
|
54,956
|
|
|
$
|
53,866
|
|
|
$
|
20,038
|
|
$
|
19,710
|
|
|
$
|
9,968
|
|
|
$
|
10,080
|
|
|
$
|
84,962
|
|
|
$
|
83,656
|
|
|
30–119 days past due
|
492
|
|
|
663
|
|
|
199
|
|
208
|
|
|
466
|
|
|
576
|
|
|
1,157
|
|
|
1,447
|
|
|
||||||||
120 or more days past due
|
7
|
|
|
7
|
|
|
138
|
|
140
|
|
|
306
|
|
|
314
|
|
|
451
|
|
|
461
|
|
|
||||||||
Total retained loans
|
$
|
55,455
|
|
|
$
|
54,536
|
|
|
$
|
20,375
|
|
$
|
20,058
|
|
|
$
|
10,740
|
|
|
$
|
10,970
|
|
|
$
|
86,570
|
|
|
$
|
85,564
|
|
|
% of 30+ days past due to total retained loans
|
0.90
|
%
|
|
1.23
|
%
|
|
1.65
|
%
|
1.73
|
%
|
|
1.64
|
%
|
(d)
|
2.15
|
%
|
(d)
|
1.17
|
%
|
(d)
|
1.47
|
%
|
(d)
|
||||||||
90 or more days past due and still accruing
(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
346
|
|
|
$
|
367
|
|
|
$
|
346
|
|
|
$
|
367
|
|
|
Nonaccrual loans
|
95
|
|
|
115
|
|
|
268
|
|
279
|
|
|
264
|
|
|
270
|
|
|
627
|
|
|
664
|
|
|
||||||||
Geographic region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
California
|
$
|
6,469
|
|
|
$
|
6,294
|
|
|
$
|
3,059
|
|
$
|
3,008
|
|
|
$
|
1,128
|
|
|
$
|
1,143
|
|
|
$
|
10,656
|
|
|
$
|
10,445
|
|
|
New York
|
3,703
|
|
|
3,662
|
|
|
3,171
|
|
3,187
|
|
|
1,235
|
|
|
1,259
|
|
|
8,109
|
|
|
8,108
|
|
|
||||||||
Illinois
|
3,365
|
|
|
3,175
|
|
|
1,387
|
|
1,373
|
|
|
716
|
|
|
729
|
|
|
5,468
|
|
|
5,277
|
|
|
||||||||
Florida
|
2,428
|
|
|
2,301
|
|
|
861
|
|
827
|
|
|
521
|
|
|
521
|
|
|
3,810
|
|
|
3,649
|
|
|
||||||||
Texas
|
5,804
|
|
|
5,608
|
|
|
2,610
|
|
2,626
|
|
|
849
|
|
|
868
|
|
|
9,263
|
|
|
9,102
|
|
|
||||||||
New Jersey
|
1,947
|
|
|
1,945
|
|
|
530
|
|
451
|
|
|
391
|
|
|
378
|
|
|
2,868
|
|
|
2,774
|
|
|
||||||||
Arizona
|
1,879
|
|
|
2,003
|
|
|
1,148
|
|
1,083
|
|
|
234
|
|
|
239
|
|
|
3,261
|
|
|
3,325
|
|
|
||||||||
Washington
|
1,042
|
|
|
1,019
|
|
|
274
|
|
258
|
|
|
224
|
|
|
235
|
|
|
1,540
|
|
|
1,512
|
|
|
||||||||
Michigan
|
1,634
|
|
|
1,633
|
|
|
1,344
|
|
1,375
|
|
|
453
|
|
|
466
|
|
|
3,431
|
|
|
3,474
|
|
|
||||||||
Ohio
|
2,261
|
|
|
2,157
|
|
|
1,455
|
|
1,354
|
|
|
607
|
|
|
629
|
|
|
4,323
|
|
|
4,140
|
|
|
||||||||
All other
|
24,923
|
|
|
24,739
|
|
|
4,536
|
|
4,516
|
|
|
4,382
|
|
|
4,503
|
|
|
33,841
|
|
|
33,758
|
|
|
||||||||
Total retained loans
|
$
|
55,455
|
|
|
$
|
54,536
|
|
|
$
|
20,375
|
|
$
|
20,058
|
|
|
$
|
10,740
|
|
|
$
|
10,970
|
|
|
$
|
86,570
|
|
|
$
|
85,564
|
|
|
Loans by risk ratings
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Noncriticized
|
$
|
10,061
|
|
|
$
|
9,822
|
|
|
$
|
14,842
|
|
$
|
14,619
|
|
|
NA
|
|
NA
|
|
$
|
24,903
|
|
|
$
|
24,441
|
|
|
||||
Criticized performing
|
83
|
|
|
35
|
|
|
714
|
|
708
|
|
|
NA
|
|
NA
|
|
797
|
|
|
743
|
|
|
||||||||||
Criticized nonaccrual
|
—
|
|
|
—
|
|
|
212
|
|
213
|
|
|
NA
|
|
NA
|
|
212
|
|
|
213
|
|
|
(a)
|
Individual delinquency classifications included loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) as follows: current included
$4.2 billion
and
$4.3 billion
;
30
-
119 days
past due included
$317 million
and
$364 million
; and
120
or more days past due included
$279 million
and
$290 million
at
March 31, 2015
, and
December 31, 2014
, respectively.
|
(b)
|
These amounts represent student loans, which are insured by U.S. government agencies under the FFELP. These amounts were accruing as reimbursement of insured amounts is proceeding normally.
|
(c)
|
For risk-rated business banking and auto loans, the primary credit quality indicator is the risk rating of the loan, including whether the loans are considered to be criticized and/or nonaccrual.
|
(d)
|
March 31, 2015
, and
December 31, 2014
, excluded loans
30 days
or more past due and still accruing, which are insured by U.S. government agencies under the FFELP, of
$596 million
and
$654 million
, respectively. These amounts were excluded as reimbursement of insured amounts is proceeding normally.
|
(in millions)
|
March 31,
2015 |
December 31,
2014 |
||||
Impaired loans
|
|
|
||||
With an allowance
|
$
|
557
|
|
$
|
557
|
|
Without an allowance
(a)
|
34
|
|
35
|
|
||
Total impaired loans
(b)(c)
|
$
|
591
|
|
$
|
592
|
|
Allowance for loan losses related to
impaired loans
|
$
|
124
|
|
$
|
117
|
|
Unpaid principal balance of impaired loans
(d)
|
711
|
|
719
|
|
||
Impaired loans on nonaccrual status
|
464
|
|
456
|
|
(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)
|
Other consumer average impaired loans were
$587 million
and
$600 million
for the three months ended
March 31, 2015
and
2014
, respectively. The related interest income on impaired loans, including those on a cash basis, was not material for the
three months ended
March 31, 2015
and
2014
.
|
(d)
|
Represents the contractual amount of principal owed at
March 31, 2015
, and
December 31, 2014
. 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.
|
(in millions)
|
March 31,
2015 |
December 31,
2014 |
|||||
Loans modified in TDRs
(a)(b)
|
$
|
428
|
|
|
$
|
442
|
|
TDRs on nonaccrual status
|
301
|
|
|
306
|
|
(a)
|
The impact of these modifications was not material to the Firm for the three months ended
March 31, 2015
and
2014
.
|
(b)
|
Additional commitments to lend to borrowers whose loans have been modified in TDRs as of
March 31, 2015
, and
December 31, 2014
, were immaterial.
|
(in millions, except ratios)
|
Home equity
|
|
Prime mortgage
|
|
Subprime mortgage
|
|
Option ARMs
|
|
Total PCI
|
|||||||||||||||||||||||||
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|||||||||||||||||||||
Carrying value
(a)
|
$
|
16,638
|
|
$
|
17,095
|
|
|
$
|
9,916
|
|
$
|
10,220
|
|
|
$
|
3,559
|
|
$
|
3,673
|
|
|
$
|
15,243
|
|
$
|
15,708
|
|
|
$
|
45,356
|
|
$
|
46,696
|
|
Related allowance for loan losses
(b)
|
1,758
|
|
1,758
|
|
|
1,138
|
|
1,193
|
|
|
180
|
|
180
|
|
|
194
|
|
194
|
|
|
3,270
|
|
3,325
|
|
||||||||||
Loan delinquency (based on unpaid principal balance)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Current
|
$
|
15,903
|
|
$
|
16,295
|
|
|
$
|
8,722
|
|
$
|
8,912
|
|
|
$
|
3,521
|
|
$
|
3,565
|
|
|
$
|
13,506
|
|
$
|
13,814
|
|
|
$
|
41,652
|
|
$
|
42,586
|
|
30–149 days past due
|
368
|
|
445
|
|
|
444
|
|
500
|
|
|
460
|
|
536
|
|
|
795
|
|
858
|
|
|
2,067
|
|
2,339
|
|
||||||||||
150 or more days past due
|
815
|
|
1,000
|
|
|
777
|
|
837
|
|
|
509
|
|
551
|
|
|
1,645
|
|
1,824
|
|
|
3,746
|
|
4,212
|
|
||||||||||
Total loans
|
$
|
17,086
|
|
$
|
17,740
|
|
|
$
|
9,943
|
|
$
|
10,249
|
|
|
$
|
4,490
|
|
$
|
4,652
|
|
|
$
|
15,946
|
|
$
|
16,496
|
|
|
$
|
47,465
|
|
$
|
49,137
|
|
% of 30+ days past due to total loans
|
6.92
|
%
|
8.15
|
%
|
|
12.28
|
%
|
13.05
|
%
|
|
21.58
|
%
|
23.37
|
%
|
|
15.30
|
%
|
16.26
|
%
|
|
12.25
|
%
|
13.33
|
%
|
||||||||||
Current estimated LTV ratios (based on unpaid principal balance)
(c)(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Greater than 125% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
$
|
423
|
|
$
|
513
|
|
|
$
|
34
|
|
$
|
45
|
|
|
$
|
27
|
|
$
|
34
|
|
|
$
|
72
|
|
$
|
89
|
|
|
$
|
556
|
|
$
|
681
|
|
Less than 660
|
217
|
|
273
|
|
|
68
|
|
97
|
|
|
125
|
|
160
|
|
|
113
|
|
150
|
|
|
523
|
|
680
|
|
||||||||||
101% to 125% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
1,985
|
|
2,245
|
|
|
373
|
|
456
|
|
|
180
|
|
215
|
|
|
471
|
|
575
|
|
|
3,009
|
|
3,491
|
|
||||||||||
Less than 660
|
928
|
|
1,073
|
|
|
337
|
|
402
|
|
|
430
|
|
509
|
|
|
634
|
|
771
|
|
|
2,329
|
|
2,755
|
|
||||||||||
80% to 100% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
3,995
|
|
4,171
|
|
|
1,924
|
|
2,154
|
|
|
482
|
|
519
|
|
|
2,198
|
|
2,418
|
|
|
8,599
|
|
9,262
|
|
||||||||||
Less than 660
|
1,590
|
|
1,647
|
|
|
1,184
|
|
1,316
|
|
|
954
|
|
1,006
|
|
|
1,784
|
|
1,996
|
|
|
5,512
|
|
5,965
|
|
||||||||||
Lower than 80% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
5,923
|
|
5,824
|
|
|
3,821
|
|
3,663
|
|
|
760
|
|
719
|
|
|
6,750
|
|
6,593
|
|
|
17,254
|
|
16,799
|
|
||||||||||
Less than 660
|
2,025
|
|
1,994
|
|
|
2,202
|
|
2,116
|
|
|
1,532
|
|
1,490
|
|
|
3,924
|
|
3,904
|
|
|
9,683
|
|
9,504
|
|
||||||||||
Total unpaid principal balance
|
$
|
17,086
|
|
$
|
17,740
|
|
|
$
|
9,943
|
|
$
|
10,249
|
|
|
$
|
4,490
|
|
$
|
4,652
|
|
|
$
|
15,946
|
|
$
|
16,496
|
|
|
$
|
47,465
|
|
$
|
49,137
|
|
Geographic region (based on unpaid principal balance)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
California
|
$
|
10,267
|
|
$
|
10,671
|
|
|
$
|
5,811
|
|
$
|
5,965
|
|
|
$
|
1,108
|
|
$
|
1,138
|
|
|
$
|
8,935
|
|
$
|
9,190
|
|
|
$
|
26,121
|
|
$
|
26,964
|
|
New York
|
855
|
|
876
|
|
|
648
|
|
672
|
|
|
440
|
|
463
|
|
|
895
|
|
933
|
|
|
2,838
|
|
2,944
|
|
||||||||||
Illinois
|
393
|
|
405
|
|
|
290
|
|
301
|
|
|
219
|
|
229
|
|
|
371
|
|
397
|
|
|
1,273
|
|
1,332
|
|
||||||||||
Florida
|
1,630
|
|
1,696
|
|
|
657
|
|
689
|
|
|
416
|
|
432
|
|
|
1,370
|
|
1,440
|
|
|
4,073
|
|
4,257
|
|
||||||||||
Texas
|
261
|
|
273
|
|
|
90
|
|
92
|
|
|
270
|
|
281
|
|
|
84
|
|
85
|
|
|
705
|
|
731
|
|
||||||||||
New Jersey
|
338
|
|
348
|
|
|
261
|
|
279
|
|
|
155
|
|
165
|
|
|
527
|
|
553
|
|
|
1,281
|
|
1,345
|
|
||||||||||
Arizona
|
312
|
|
323
|
|
|
164
|
|
167
|
|
|
84
|
|
85
|
|
|
223
|
|
227
|
|
|
783
|
|
802
|
|
||||||||||
Washington
|
926
|
|
959
|
|
|
217
|
|
225
|
|
|
91
|
|
95
|
|
|
379
|
|
395
|
|
|
1,613
|
|
1,674
|
|
||||||||||
Michigan
|
50
|
|
53
|
|
|
162
|
|
166
|
|
|
125
|
|
130
|
|
|
176
|
|
182
|
|
|
513
|
|
531
|
|
||||||||||
Ohio
|
19
|
|
20
|
|
|
47
|
|
48
|
|
|
70
|
|
72
|
|
|
66
|
|
69
|
|
|
202
|
|
209
|
|
||||||||||
All other
|
2,035
|
|
2,116
|
|
|
1,596
|
|
1,645
|
|
|
1,512
|
|
1,562
|
|
|
2,920
|
|
3,025
|
|
|
8,063
|
|
8,348
|
|
||||||||||
Total unpaid principal balance
|
$
|
17,086
|
|
$
|
17,740
|
|
|
$
|
9,943
|
|
$
|
10,249
|
|
|
$
|
4,490
|
|
$
|
4,652
|
|
|
$
|
15,946
|
|
$
|
16,496
|
|
|
$
|
47,465
|
|
$
|
49,137
|
|
(a)
|
Carrying value includes the effect of fair value adjustments that were applied to the consumer PCI portfolio at the date of acquisition.
|
(b)
|
Management concluded as part of the Firm’s regular assessment of the PCI loan pools that it was probable that higher expected credit losses would result in a decrease in expected cash flows. As a result, an allowance for loan losses for impairment of these pools has been recognized.
|
(c)
|
Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property.
|
(d)
|
Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
|
|
|
Delinquencies
|
|
|
|
Total 30+ day delinquency rate
|
|||||||||||||
March 31, 2015
|
|
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)
|
|
$
|
118
|
|
|
$
|
39
|
|
|
$
|
236
|
|
|
$
|
8,373
|
|
|
4.69
|
%
|
Beyond the revolving period
(c)
|
|
72
|
|
|
21
|
|
|
154
|
|
|
4,741
|
|
|
5.21
|
|
||||
HELOANs
|
|
16
|
|
|
5
|
|
|
21
|
|
|
713
|
|
|
5.89
|
|
||||
Total
|
|
$
|
206
|
|
|
$
|
65
|
|
|
$
|
411
|
|
|
$
|
13,827
|
|
|
4.93
|
%
|
|
|
Delinquencies
|
|
|
|
Total 30+ day delinquency rate
|
|||||||||||||
December 31, 2014
|
|
30–89 days past due
|
|
90–149 days past due
|
|
150+ days
past due
|
|
Total loans
|
|
||||||||||
(in millions, except ratios)
|
|
|
|
|
|
||||||||||||||
HELOCs:
(a)
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Within the revolving period
(b)
|
|
$
|
155
|
|
|
$
|
50
|
|
|
$
|
371
|
|
|
$
|
8,972
|
|
|
6.42
|
%
|
Beyond the revolving period
(c)
|
|
76
|
|
|
24
|
|
|
166
|
|
|
4,143
|
|
|
6.42
|
|
||||
HELOANs
|
|
20
|
|
|
7
|
|
|
38
|
|
|
736
|
|
|
8.83
|
|
||||
Total
|
|
$
|
251
|
|
|
$
|
81
|
|
|
$
|
575
|
|
|
$
|
13,851
|
|
|
6.55
|
%
|
(a)
|
In general, these HELOCs are revolving loans for a
10
-year period, after which time the HELOC converts to an interest-only loan with a balloon payment at the end of the loan’s term.
|
(b)
|
Substantially all undrawn HELOCs within the revolving period have been closed.
|
(c)
|
Includes loans modified into fixed rate amortizing loans.
|
(in millions, except ratios)
|
Total PCI
|
|||||
Three months ended March 31,
|
||||||
2015
|
2014
|
|||||
Beginning balance
|
$
|
14,592
|
|
$
|
16,167
|
|
Accretion into interest income
|
(436
|
)
|
(514
|
)
|
||
Changes in interest rates on variable-rate loans
|
6
|
|
(21
|
)
|
||
Other changes in expected cash flows
(a)
|
(128
|
)
|
150
|
|
||
Balance at March 31
|
$
|
14,034
|
|
$
|
15,782
|
|
Accretable yield percentage
|
4.14
|
%
|
4.32
|
%
|
(a)
|
Other changes in expected cash flows may vary from period to period as the Firm continues to refine its cash flow model and periodically updates model assumptions. For the
three months ended
March 31, 2015
and
2014
, other changes in expected cash flows were driven by changes in prepayment assumptions.
|
(in millions, except ratios)
|
March 31,
2015 |
December 31,
2014 |
||||
Loan delinquency
|
|
|
||||
Current and less than 30 days
past due and still accruing
|
$
|
119,132
|
|
$
|
126,189
|
|
30–89 days past due and still accruing
|
826
|
|
943
|
|
||
90 or more days past due and still accruing
|
877
|
|
895
|
|
||
Nonaccrual loans
|
—
|
|
—
|
|
||
Total retained credit card loans
|
$
|
120,835
|
|
$
|
128,027
|
|
Loan delinquency ratios
|
|
|
||||
% of 30+ days past due to total retained loans
|
1.41
|
%
|
1.44
|
%
|
||
% of 90+ days past due to total retained loans
|
0.73
|
|
0.70
|
|
||
Credit card loans by geographic region
|
|
|
||||
California
|
$
|
17,133
|
|
$
|
17,940
|
|
Texas
|
10,605
|
|
11,088
|
|
||
New York
|
10,414
|
|
10,940
|
|
||
Florida
|
7,126
|
|
7,398
|
|
||
Illinois
|
7,058
|
|
7,497
|
|
||
New Jersey
|
5,427
|
|
5,750
|
|
||
Ohio
|
4,389
|
|
4,707
|
|
||
Pennsylvania
|
4,197
|
|
4,489
|
|
||
Michigan
|
3,340
|
|
3,552
|
|
||
Virginia
|
2,958
|
|
3,263
|
|
||
All other
|
48,188
|
|
51,403
|
|
||
Total retained credit card loans
|
$
|
120,835
|
|
$
|
128,027
|
|
Percentage of portfolio based on carrying value with estimated refreshed FICO scores
|
|
|
||||
Equal to or greater than 660
|
85.2
|
%
|
85.7
|
%
|
||
Less than 660
|
14.8
|
|
14.3
|
|
(in millions)
|
March 31,
2015 |
December 31,
2014 |
||||
Impaired credit card loans with an allowance
(a)(b)
|
|
|
||||
Credit card loans with modified payment terms
(c)
|
$
|
1,627
|
|
$
|
1,775
|
|
Modified credit card loans that have reverted to pre-modification payment terms
(d)
|
225
|
|
254
|
|
||
Total impaired credit card loans
(e)
|
$
|
1,852
|
|
$
|
2,029
|
|
Allowance for loan losses related to impaired credit card loans
|
$
|
458
|
|
$
|
500
|
|
(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 March 31,
|
|||||
(in millions)
|
2015
|
2014
|
||||
Average impaired
credit card loans
|
$
|
1,940
|
|
$
|
2,938
|
|
Interest income on
impaired credit card loans
|
23
|
|
36
|
|
(in millions, except
weighted-average data)
|
Three months
ended March 31, |
|||||
2015
|
2014
|
|||||
Weighted-average interest rate of loans – before TDR
|
15.16
|
%
|
15.03
|
%
|
||
Weighted-average interest rate of loans – after TDR
|
4.29
|
|
4.43
|
|
||
Loans that redefaulted within one year of modification
(a)
|
$
|
22
|
|
$
|
34
|
|
(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)
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
||||||||||||||||||||||||
Loans by risk ratings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Investment-grade
|
$
|
66,973
|
|
$
|
63,069
|
|
|
$
|
64,382
|
|
$
|
61,006
|
|
|
$
|
28,091
|
|
$
|
27,111
|
|
|
$
|
8,718
|
|
$
|
8,393
|
|
|
$
|
80,709
|
|
$
|
82,087
|
|
|
$
|
248,873
|
|
$
|
241,666
|
|
Noninvestment-grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Noncriticized
|
43,838
|
|
44,117
|
|
|
16,470
|
|
16,541
|
|
|
7,037
|
|
7,085
|
|
|
332
|
|
300
|
|
|
9,613
|
|
10,075
|
|
|
77,290
|
|
78,118
|
|
||||||||||||
Criticized performing
|
2,581
|
|
2,251
|
|
|
1,296
|
|
1,313
|
|
|
303
|
|
316
|
|
|
8
|
|
3
|
|
|
172
|
|
236
|
|
|
4,360
|
|
4,119
|
|
||||||||||||
Criticized nonaccrual
|
332
|
|
188
|
|
|
259
|
|
253
|
|
|
15
|
|
18
|
|
|
—
|
|
—
|
|
|
90
|
|
140
|
|
|
696
|
|
599
|
|
||||||||||||
Total noninvestment-
grade
|
46,751
|
|
46,556
|
|
|
18,025
|
|
18,107
|
|
|
7,355
|
|
7,419
|
|
|
340
|
|
303
|
|
|
9,875
|
|
10,451
|
|
|
82,346
|
|
82,836
|
|
||||||||||||
Total retained loans
|
$
|
113,724
|
|
$
|
109,625
|
|
|
$
|
82,407
|
|
$
|
79,113
|
|
|
$
|
35,446
|
|
$
|
34,530
|
|
|
$
|
9,058
|
|
$
|
8,696
|
|
|
$
|
90,584
|
|
$
|
92,538
|
|
|
$
|
331,219
|
|
$
|
324,502
|
|
% of total criticized to
total retained loans
|
2.56
|
%
|
2.22
|
%
|
|
1.89
|
%
|
1.98
|
%
|
|
0.90
|
%
|
0.97
|
%
|
|
0.09
|
%
|
0.03
|
%
|
|
0.29
|
%
|
0.41
|
%
|
|
1.53
|
%
|
1.45
|
%
|
||||||||||||
% of nonaccrual loans
to total retained loans
|
0.29
|
|
0.17
|
|
|
0.31
|
|
0.32
|
|
|
0.04
|
|
0.05
|
|
|
—
|
|
—
|
|
|
0.10
|
|
0.15
|
|
|
0.21
|
|
0.18
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Loans by geographic
distribution
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total non-U.S.
|
$
|
33,627
|
|
$
|
33,739
|
|
|
$
|
2,274
|
|
$
|
2,099
|
|
|
$
|
19,450
|
|
$
|
20,944
|
|
|
$
|
1,153
|
|
$
|
1,122
|
|
|
$
|
42,366
|
|
$
|
42,961
|
|
|
$
|
98,870
|
|
$
|
100,865
|
|
Total U.S.
|
80,097
|
|
75,886
|
|
|
80,133
|
|
77,014
|
|
|
15,996
|
|
13,586
|
|
|
7,905
|
|
7,574
|
|
|
48,218
|
|
49,577
|
|
|
232,349
|
|
223,637
|
|
||||||||||||
Total retained loans
|
$
|
113,724
|
|
$
|
109,625
|
|
|
$
|
82,407
|
|
$
|
79,113
|
|
|
$
|
35,446
|
|
$
|
34,530
|
|
|
$
|
9,058
|
|
$
|
8,696
|
|
|
$
|
90,584
|
|
$
|
92,538
|
|
|
$
|
331,219
|
|
$
|
324,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Loan delinquency
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Current and less than
30 days past due and
still accruing
|
$
|
113,177
|
|
$
|
108,857
|
|
|
$
|
82,058
|
|
$
|
78,552
|
|
|
$
|
35,397
|
|
$
|
34,408
|
|
|
$
|
9,000
|
|
$
|
8,627
|
|
|
$
|
89,334
|
|
$
|
91,168
|
|
|
$
|
328,966
|
|
$
|
321,612
|
|
30–89 days past due
and still accruing
|
215
|
|
566
|
|
|
84
|
|
275
|
|
|
34
|
|
104
|
|
|
58
|
|
69
|
|
|
1,098
|
|
1,201
|
|
|
1,489
|
|
2,215
|
|
||||||||||||
90 or more days
past due and
still accruing
(c)
|
—
|
|
14
|
|
|
6
|
|
33
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
62
|
|
29
|
|
|
68
|
|
76
|
|
||||||||||||
Criticized nonaccrual
|
332
|
|
188
|
|
|
259
|
|
253
|
|
|
15
|
|
18
|
|
|
—
|
|
—
|
|
|
90
|
|
140
|
|
|
696
|
|
599
|
|
||||||||||||
Total retained loans
|
$
|
113,724
|
|
$
|
109,625
|
|
|
$
|
82,407
|
|
$
|
79,113
|
|
|
$
|
35,446
|
|
$
|
34,530
|
|
|
$
|
9,058
|
|
$
|
8,696
|
|
|
$
|
90,584
|
|
$
|
92,538
|
|
|
$
|
331,219
|
|
$
|
324,502
|
|
(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
2014
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
2014
Annual Report
for additional information on SPEs.
|
(in millions, except ratios)
|
Multifamily
|
|
Commercial lessors
|
|
Commercial construction and development
|
|
Other
|
|
Total real estate loans
|
|||||||||||||||||||||||||
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|||||||||||||||||||||
Real estate retained loans
|
$
|
53,319
|
|
$
|
51,049
|
|
|
$
|
17,394
|
|
$
|
17,438
|
|
|
$
|
4,542
|
|
$
|
4,264
|
|
|
$
|
7,152
|
|
$
|
6,362
|
|
|
$
|
82,407
|
|
$
|
79,113
|
|
Criticized exposure
|
665
|
|
652
|
|
|
796
|
|
841
|
|
|
28
|
|
42
|
|
|
66
|
|
31
|
|
|
1,555
|
|
1,566
|
|
||||||||||
% of criticized exposure to
total real estate retained loans
|
1.25
|
%
|
1.28
|
%
|
|
4.58
|
%
|
4.82
|
%
|
|
0.62
|
%
|
0.98
|
%
|
|
0.92
|
%
|
0.49
|
%
|
|
1.89
|
%
|
1.98
|
%
|
||||||||||
Criticized nonaccrual
|
$
|
127
|
|
$
|
126
|
|
|
$
|
88
|
|
$
|
110
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
44
|
|
$
|
17
|
|
|
$
|
259
|
|
$
|
253
|
|
% of criticized nonaccrual to
total real estate retained loans
|
0.24
|
%
|
0.25
|
%
|
|
0.51
|
%
|
0.63
|
%
|
|
—
|
%
|
—
|
%
|
|
0.62
|
%
|
0.27
|
%
|
|
0.31
|
%
|
0.32
|
%
|
(in millions)
|
Commercial
and industrial
|
|
Real estate
|
|
Financial
institutions
|
|
Government
agencies
|
|
Other
|
|
Total
retained loans
|
|||||||||||||||||||||||||||||||
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
|
Dec 31,
2014 |
|||||||||||||||||||||||||
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
With an allowance
|
$
|
306
|
|
$
|
174
|
|
|
$
|
155
|
|
$
|
193
|
|
|
$
|
12
|
|
$
|
15
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
64
|
|
$
|
89
|
|
|
$
|
537
|
|
|
$
|
471
|
|
Without an allowance
(a)
|
39
|
|
24
|
|
|
138
|
|
87
|
|
|
2
|
|
3
|
|
|
—
|
|
—
|
|
|
27
|
|
52
|
|
|
206
|
|
|
166
|
|
||||||||||||
Total
impaired loans
|
$
|
345
|
|
$
|
198
|
|
|
$
|
293
|
|
$
|
280
|
|
|
$
|
14
|
|
$
|
18
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
91
|
|
$
|
141
|
|
|
$
|
743
|
|
(c)
|
$
|
637
|
|
Allowance for loan losses related to impaired loans
|
$
|
57
|
|
$
|
34
|
|
|
$
|
18
|
|
$
|
36
|
|
|
$
|
4
|
|
$
|
4
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
36
|
|
$
|
13
|
|
|
$
|
115
|
|
|
$
|
87
|
|
Unpaid principal balance of impaired loans
(b)
|
378
|
|
266
|
|
|
421
|
|
345
|
|
|
15
|
|
22
|
|
|
—
|
|
—
|
|
|
95
|
|
202
|
|
|
909
|
|
|
835
|
|
(a)
|
When the discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, the loan does not require an allowance. This typically occurs when the impaired loans have been partially charged-off and/or there have been interest payments received and applied to the loan balance.
|
(b)
|
Represents the contractual amount of principal owed at
March 31, 2015
, and
December 31, 2014
. 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 March 31,
|
|||||
(in millions)
|
2015
|
2014
|
||||
Commercial and industrial
|
$
|
251
|
|
$
|
291
|
|
Real estate
|
268
|
|
355
|
|
||
Financial institutions
|
16
|
|
22
|
|
||
Government agencies
|
—
|
|
—
|
|
||
Other
|
107
|
|
169
|
|
||
Total
(a)
|
$
|
642
|
|
$
|
837
|
|
(a)
|
The related interest income on accruing impaired loans and interest income recognized on a cash basis were not material for the three months ended
March 31, 2015
and
2014
.
|
|
2015
|
|
2014
|
||||||||||||||||||||||||||
Three months ended March 31, (in millions)
|
Consumer, excluding credit card
|
|
Credit card
|
|
Wholesale
|
Total
|
|
Consumer, excluding credit card
|
|
Credit card
|
|
Wholesale
|
Total
|
||||||||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance at January 1,
|
$
|
7,050
|
|
|
$
|
3,439
|
|
|
$
|
3,696
|
|
$
|
14,185
|
|
|
8,456
|
|
|
$
|
3,795
|
|
|
$
|
4,013
|
|
$
|
16,264
|
|
|
Gross charge-offs
|
440
|
|
|
883
|
|
|
29
|
|
1,352
|
|
|
569
|
|
|
995
|
|
|
68
|
|
1,632
|
|
||||||||
Gross recoveries
|
(176
|
)
|
|
(94
|
)
|
|
(30
|
)
|
(300
|
)
|
|
(201
|
)
|
|
(107
|
)
|
|
(55
|
)
|
(363
|
)
|
||||||||
Net charge-offs/(recoveries)
|
264
|
|
|
789
|
|
|
(1
|
)
|
1,052
|
|
|
368
|
|
|
888
|
|
|
13
|
|
1,269
|
|
||||||||
Write-offs of PCI loans
(a)
|
55
|
|
|
—
|
|
|
—
|
|
55
|
|
|
61
|
|
|
—
|
|
|
—
|
|
61
|
|
||||||||
Provision for loan losses
|
141
|
|
|
789
|
|
|
58
|
|
988
|
|
|
119
|
|
|
688
|
|
|
110
|
|
917
|
|
||||||||
Other
|
—
|
|
|
(5
|
)
|
|
4
|
|
(1
|
)
|
|
1
|
|
|
(4
|
)
|
|
(1
|
)
|
(4
|
)
|
||||||||
Ending balance at March 31,
|
$
|
6,872
|
|
|
$
|
3,434
|
|
|
$
|
3,759
|
|
$
|
14,065
|
|
|
$
|
8,147
|
|
|
$
|
3,591
|
|
|
$
|
4,109
|
|
$
|
15,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses by impairment methodology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific
(b)
|
$
|
537
|
|
|
$
|
458
|
|
(c)
|
$
|
115
|
|
$
|
1,110
|
|
|
$
|
607
|
|
|
$
|
606
|
|
(c)
|
$
|
144
|
|
$
|
1,357
|
|
Formula-based
|
3,065
|
|
|
2,976
|
|
|
3,644
|
|
9,685
|
|
|
3,443
|
|
|
2,985
|
|
|
3,965
|
|
10,393
|
|
||||||||
PCI
|
3,270
|
|
|
—
|
|
|
—
|
|
3,270
|
|
|
4,097
|
|
|
—
|
|
|
—
|
|
4,097
|
|
||||||||
Total allowance for loan losses
|
$
|
6,872
|
|
|
$
|
3,434
|
|
|
$
|
3,759
|
|
$
|
14,065
|
|
|
$
|
8,147
|
|
|
$
|
3,591
|
|
|
$
|
4,109
|
|
$
|
15,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans by impairment methodology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific
|
$
|
11,414
|
|
|
$
|
1,852
|
|
|
$
|
743
|
|
$
|
14,009
|
|
|
$
|
13,546
|
|
|
$
|
2,768
|
|
|
$
|
763
|
|
$
|
17,077
|
|
Formula-based
|
248,147
|
|
|
118,983
|
|
|
330,472
|
|
697,602
|
|
|
222,778
|
|
|
118,744
|
|
|
310,949
|
|
652,471
|
|
||||||||
PCI
|
45,356
|
|
|
—
|
|
|
4
|
|
45,360
|
|
|
51,606
|
|
|
—
|
|
|
6
|
|
51,612
|
|
||||||||
Total retained loans
|
$
|
304,917
|
|
|
$
|
120,835
|
|
|
$
|
331,219
|
|
$
|
756,971
|
|
|
$
|
287,930
|
|
|
$
|
121,512
|
|
|
$
|
311,718
|
|
$
|
721,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired collateral-dependent loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net charge-offs
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
1
|
|
$
|
17
|
|
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
51
|
|
Loans measured at fair value of collateral less cost to sell
|
2,912
|
|
|
—
|
|
|
269
|
|
3,181
|
|
|
3,333
|
|
|
—
|
|
|
331
|
|
3,664
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for lending-related commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance at January 1,
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
609
|
|
$
|
622
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
697
|
|
$
|
705
|
|
Provision for lending-related commitments
|
1
|
|
|
—
|
|
|
(30
|
)
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
(67
|
)
|
(67
|
)
|
||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Ending balance at March 31,
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
579
|
|
$
|
593
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
630
|
|
$
|
638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for lending-related commitments by impairment methodology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55
|
|
$
|
55
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30
|
|
$
|
30
|
|
Formula-based
|
14
|
|
|
—
|
|
|
524
|
|
538
|
|
|
8
|
|
|
—
|
|
|
600
|
|
608
|
|
||||||||
Total allowance for lending-related commitments
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
579
|
|
$
|
593
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
630
|
|
$
|
638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Lending-related commitments by impairment methodology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Asset-specific
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
131
|
|
$
|
131
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
95
|
|
$
|
95
|
|
Formula-based
|
60,151
|
|
|
533,511
|
|
|
355,373
|
|
949,035
|
|
|
56,541
|
|
|
535,614
|
|
|
353,797
|
|
945,952
|
|
||||||||
Total lending-related commitments
|
$
|
60,151
|
|
|
$
|
533,511
|
|
|
$
|
355,504
|
|
$
|
949,166
|
|
|
$
|
56,541
|
|
|
$
|
535,614
|
|
|
$
|
353,892
|
|
$
|
946,047
|
|
(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. A write-off of a PCI loan is 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
|
127
|
|
Mortgage securitization trusts
|
Servicing and securitization of both originated and purchased residential mortgages
|
127-129
|
CIB
|
Mortgage and other securitization trusts
|
Securitization of both originated and purchased residential and commercial mortgages, and student loans
|
127-129
|
|
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
|
129
|
|
Municipal bond vehicles
|
|
129-130
|
|
Credit-related note and asset swap vehicles
|
|
130
|
|
Principal amount outstanding
|
|
JPMorgan Chase interest in securitized assets in nonconsolidated VIEs
(c)(d)(e)
|
||||||||||||||||
March 31, 2015
(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
|
$
|
95.5
|
|
$
|
2.0
|
|
$
|
77.4
|
|
|
$
|
0.6
|
|
$
|
1.6
|
|
$
|
2.2
|
|
Subprime
|
26.4
|
|
0.1
|
|
24.6
|
|
|
0.1
|
|
—
|
|
0.1
|
|
||||||
Commercial and other
(b)
|
130.5
|
|
0.2
|
|
93.3
|
|
|
0.3
|
|
3.5
|
|
3.8
|
|
||||||
Total
|
$
|
252.4
|
|
$
|
2.3
|
|
$
|
195.3
|
|
|
$
|
1.0
|
|
$
|
5.1
|
|
$
|
6.1
|
|
|
Principal amount outstanding
|
|
JPMorgan Chase interest in securitized assets in nonconsolidated VIEs
(c)(d)(e)
|
||||||||||||||||
December 31, 2014
(a)
(in billions)
|
Total assets held by securitization VIEs
|
Assets
held in consolidated securitization VIEs
|
Assets held in nonconsolidated securitization VIEs with continuing involvement
|
|
Trading assets
|
AFS securities
|
Total interests held by
JPMorgan
Chase
|
||||||||||||
Securitization-related
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
||||||||||||
Prime/Alt-A and Option ARMs
|
$
|
96.3
|
|
$
|
2.7
|
|
$
|
78.3
|
|
|
$
|
0.5
|
|
$
|
0.7
|
|
$
|
1.2
|
|
Subprime
|
28.4
|
|
0.8
|
|
25.7
|
|
|
0.1
|
|
—
|
|
0.1
|
|
||||||
Commercial and other
(b)
|
129.6
|
|
0.2
|
|
94.4
|
|
|
0.4
|
|
3.5
|
|
3.9
|
|
||||||
Total
|
$
|
254.3
|
|
$
|
3.7
|
|
$
|
198.4
|
|
|
$
|
1.0
|
|
$
|
4.2
|
|
$
|
5.2
|
|
(a)
|
Excludes U.S. government agency securitizations. See
page 132
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 loan 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
$28 million
and
$129 million
, respectively, at
March 31, 2015
, and
$136 million
and
$34 million
, respectively, at
December 31, 2014
, which the Firm purchased in connection with CIB’s secondary market-making activities.
|
(d)
|
Includes interests held in re-securitization transactions.
|
(e)
|
As of
March 31, 2015
, and
December 31, 2014
,
83%
and
77%
, respectively, of the Firm’s retained securitization interests, which are carried at fair value, were risk-rated “A” or better, on an S&P-equivalent basis. The retained interests in prime residential mortgages consisted of
$2.1 billion
and
$1.1 billion
of investment-grade and
$125 million
and
$185 million
of noninvestment-grade retained interests at
March 31, 2015
, and
December 31, 2014
, respectively. The retained interests in commercial and other securitizations trusts consisted of
$3.7 billion
and
$3.7 billion
of investment-grade and
$113 million
and
$194 million
of noninvestment-grade retained interests at
March 31, 2015
, and
December 31, 2014
, respectively.
|
(in billions)
|
Fair value of assets held by VIEs
|
Liquidity facilities
|
Excess/(deficit)
(a)
|
Maximum exposure
|
||||||||
Nonconsolidated municipal bond vehicles
|
|
|
|
|
||||||||
March 31, 2015
|
$
|
11.5
|
|
$
|
6.3
|
|
$
|
5.2
|
|
$
|
6.3
|
|
December 31, 2014
|
11.5
|
|
6.3
|
|
5.2
|
|
6.3
|
|
|
Ratings profile of VIE assets
(b)
|
Fair value of assets held by VIEs
|
Wt. avg. expected life of assets (years)
|
|||||||||||||||||
|
Investment-grade
|
|
Noninvestment- grade
|
|||||||||||||||||
(in billions, except where otherwise noted)
|
AAA to AAA-
|
AA+ to AA-
|
A+ to A-
|
BBB+ to BBB-
|
|
BB+ and below
|
||||||||||||||
March 31, 2015
|
$
|
2.7
|
|
$
|
8.4
|
|
$
|
0.4
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
11.5
|
|
4.9
|
December 31, 2014
|
2.7
|
|
8.4
|
|
0.4
|
|
—
|
|
|
—
|
|
11.5
|
|
4.9
|
(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
|
|||||||||||||||||||
March 31, 2015
(in billions)
(a)
|
Trading assets
|
Loans
|
Other
(c)
|
Total
assets
(d)
|
|
Beneficial interests in
VIE assets
(e)
|
Other
(f)
|
Total
liabilities
|
||||||||||||||
VIE program type
|
|
|
|
|
|
|
|
|
||||||||||||||
Firm-sponsored credit card trusts
|
$
|
—
|
|
$
|
47.9
|
|
$
|
0.8
|
|
$
|
48.7
|
|
|
$
|
31.4
|
|
$
|
—
|
|
$
|
31.4
|
|
Firm-administered multi-seller conduits
|
—
|
|
16.5
|
|
—
|
|
16.5
|
|
|
11.8
|
|
—
|
|
11.8
|
|
|||||||
Municipal bond vehicles
|
5.2
|
|
—
|
|
—
|
|
5.2
|
|
|
4.7
|
|
—
|
|
4.7
|
|
|||||||
Mortgage securitization entities
(b)
|
2.1
|
|
0.7
|
|
0.1
|
|
2.9
|
|
|
1.1
|
|
0.8
|
|
1.9
|
|
|||||||
Student loan securitization entities
|
0.1
|
|
2.1
|
|
0.1
|
|
2.3
|
|
|
2.0
|
|
—
|
|
2.0
|
|
|||||||
Other
|
0.3
|
|
—
|
|
1.4
|
|
1.7
|
|
|
0.1
|
|
0.1
|
|
0.2
|
|
|||||||
Total
|
$
|
7.7
|
|
$
|
67.2
|
|
$
|
2.4
|
|
$
|
77.3
|
|
|
$
|
51.1
|
|
$
|
0.9
|
|
$
|
52.0
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Assets
|
|
Liabilities
|
|||||||||||||||||||
December 31, 2014 (in billions)
(a)
|
Trading assets
|
Loans
|
Other
(c)
|
Total
assets
(d)
|
|
Beneficial interests in
VIE assets
(e)
|
Other
(f)
|
Total
liabilities
|
||||||||||||||
VIE program type
|
|
|
|
|
|
|
|
|
||||||||||||||
Firm-sponsored credit card trusts
|
$
|
—
|
|
$
|
48.3
|
|
$
|
0.7
|
|
$
|
49.0
|
|
|
$
|
31.2
|
|
$
|
—
|
|
$
|
31.2
|
|
Firm-administered multi-seller conduits
|
—
|
|
17.7
|
|
0.1
|
|
17.8
|
|
|
12.0
|
|
—
|
|
12.0
|
|
|||||||
Municipal bond vehicles
|
5.3
|
|
—
|
|
—
|
|
5.3
|
|
|
4.9
|
|
—
|
|
4.9
|
|
|||||||
Mortgage securitization entities
(b)
|
3.3
|
|
0.7
|
|
—
|
|
4.0
|
|
|
2.1
|
|
0.8
|
|
2.9
|
|
|||||||
Student loan securitization entities
|
0.2
|
|
2.2
|
|
—
|
|
2.4
|
|
|
2.1
|
|
—
|
|
2.1
|
|
|||||||
Other
|
0.3
|
|
—
|
|
1.0
|
|
1.3
|
|
|
0.1
|
|
0.1
|
|
0.2
|
|
|||||||
Total
|
$
|
9.1
|
|
$
|
68.9
|
|
$
|
1.8
|
|
$
|
79.8
|
|
|
$
|
52.4
|
|
$
|
0.9
|
|
$
|
53.3
|
|
(a)
|
Excludes intercompany transactions which were eliminated in consolidation.
|
(b)
|
Includes residential and commercial mortgage securitizations as well as re-securitizations.
|
(c)
|
Includes assets classified as cash, AFS securities, and other assets within the Consolidated balance sheets.
|
(d)
|
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.
|
(e)
|
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
$34.7 billion
and
$35.4 billion
at
March 31, 2015
, and
December 31, 2014
respectively. The maturities of the long-term beneficial interests as of March 31, 2015, were as follows:
$9.0 billion
under one year,
$21.1 billion
between one and five years, and
$4.6 billion
over five years, all respectively.
|
(f)
|
Includes liabilities classified as accounts payable and other liabilities in the Consolidated balance sheets.
|
|
Three months ended March 31,
|
||||||||||||
|
2015
|
|
2014
|
||||||||||
(in millions)
(a)
|
Residential mortgage
(d)
|
Commercial and other
(e)
|
|
Residential mortgage
(d)
|
Commercial and other
(e)
|
||||||||
Principal securitized
|
$
|
1,312
|
|
$
|
3,375
|
|
|
$
|
356
|
|
$
|
2,027
|
|
All cash flows during the period:
|
|
|
|
|
|
||||||||
Proceeds from new securitizations
(b)
|
$
|
1,317
|
|
$
|
3,369
|
|
|
$
|
351
|
|
$
|
2,044
|
|
Servicing fees collected
|
146
|
|
1
|
|
|
139
|
|
1
|
|
||||
Purchases of previously transferred financial assets (or the underlying collateral)
(c)
|
—
|
|
—
|
|
|
3
|
|
—
|
|
||||
Cash flows received on interests
|
70
|
|
79
|
|
|
44
|
|
62
|
|
(a)
|
Excludes re-securitization transactions.
|
(b)
|
For the three months ended
March 31, 2015
,
$1.3 billion
of proceeds from residential mortgage securitizations were received as securities classified in level 2 of the fair value hierarchy. For the three months ended
March 31, 2015
,
$3.4 billion
of proceeds from commercial mortgage securitizations were received as securities classified in level 2 of the fair value hierarchy. For the three months ended
March 31, 2014
,
$330 million
and
$21 million
of proceeds from residential mortgage securitizations were received as securities classified in level 2 and 3 of the fair value hierarchy, respectively. For the three months ended
March 31, 2014
,
$2.0 billion
of proceeds from commercial mortgage securitizations were received as securities classified in level 2 of the fair value hierarchy.
|
(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
|
(e)
|
Includes commercial and student loan securitizations.
|
|
Three months
ended March 31,
|
|||||
(in millions)
|
2015
|
2014
|
||||
Carrying value of loans sold
(a)
|
$
|
12,139
|
|
$
|
13,920
|
|
Proceeds received from loan sales as cash
|
51
|
|
39
|
|
||
Proceeds from loans sales as securities
(b)
|
12,029
|
|
13,735
|
|
||
Total proceeds received from loan sales
(c)
|
$
|
12,080
|
|
$
|
13,774
|
|
Gains on loan sales
(d)
|
$
|
91
|
|
$
|
37
|
|
(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 loan sales include the value of MSRs.
|
(d)
|
The carrying value of the loans accounted for at fair value approximated the total proceeds received upon loan sale.
|
|
|
|
|
|
|
|
|
|
Liquidation losses
|
|||||||||||||||
|
Securitized assets
|
|
90 days past due
|
|
Three months ended March 31,
|
|||||||||||||||
(in millions)
|
Mar 31,
2015 |
Dec 31,
2014 |
|
Mar 31,
2015 |
Dec 31,
2014 |
|
2015
|
2014
|
||||||||||||
Securitized loans
(a)
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
||||||||||||
Prime / Alt-A & Option ARMs
|
$
|
77,349
|
|
$
|
78,294
|
|
|
$
|
10,572
|
|
$
|
11,363
|
|
|
$
|
462
|
|
$
|
659
|
|
Subprime
|
24,601
|
|
25,659
|
|
|
6,150
|
|
6,473
|
|
|
354
|
|
739
|
|
||||||
Commercial and other
|
93,330
|
|
94,438
|
|
|
1,502
|
|
1,522
|
|
|
99
|
|
234
|
|
||||||
Total loans securitized
(b)
|
$
|
195,280
|
|
$
|
198,391
|
|
|
$
|
18,224
|
|
$
|
19,358
|
|
|
$
|
915
|
|
$
|
1,632
|
|
(a)
|
Total assets held in securitization-related SPEs were
$252.4 billion
and
$254.3 billion
, respectively, at March 31, 2015 and December 31, 2014. The
$195.3 billion
and
$198.4 billion
, respectively, of loans securitized at March 31, 2015 and December 31, 2014, excluded:
$54.8 billion
and
$52.2 billion
, respectively, of securitized loans in which the Firm has no continuing involvement, and
$2.3 billion
and
$3.7 billion
, respectively, of loan securitizations consolidated on the Firm’s Consolidated balance sheets at March 31, 2015 and December 31, 2014.
|
(b)
|
Includes securitized loans that were previously recorded at fair value and classified as trading assets.
|
(in millions)
|
March 31,
2015 |
December 31,
2014 |
||||
Consumer & Community Banking
|
$
|
30,874
|
|
$
|
30,941
|
|
Corporate & Investment Bank
|
6,776
|
|
6,780
|
|
||
Commercial Banking
|
2,861
|
|
2,861
|
|
||
Asset Management
|
6,942
|
|
6,964
|
|
||
Corporate
|
—
|
|
101
|
|
||
Total goodwill
|
$
|
47,453
|
|
$
|
47,647
|
|
|
Three months ended March 31,
|
|||||
(in millions)
|
2015
|
2014
|
||||
Balance at beginning of period
|
$
|
47,647
|
|
$
|
48,081
|
|
Changes during the period from:
|
|
|
||||
Business combinations
|
8
|
|
9
|
|
||
Dispositions
(a)
|
(101
|
)
|
—
|
|
||
Other
(b)
|
(101
|
)
|
(25
|
)
|
||
Balance at March 31,
|
$
|
47,453
|
|
$
|
48,065
|
|
(a)
|
Represents Private Equity goodwill which was disposed of as part of the Private Equity sale completed in January 2015.
|
(b)
|
Includes foreign currency translation adjustments and other tax-related adjustments.
|
(a)
|
For the
three months ended
March 31, 2014
, predominantly represents excess MSRs transferred to agency-sponsored trusts in exchange for stripped mortgage-backed securities (“SMBS”). In each transaction, a portion of the SMBS was acquired by third parties at the transaction date; the Firm acquired and has retained the remaining balance of those SMBS as trading securities. Also includes sales of MSRs for the
three months ended
March 31, 2015
and
2014
.
|
(b)
|
Included changes related to commercial real estate of
$(2) million
for each of the
three months ended
March 31, 2015
, and
2014
, respectively.
|
(c)
|
Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.
|
(d)
|
Represents changes in prepayments other than those attributable to changes in market interest rates.
|
(e)
|
Included
$9 million
and
$16 million
related to commercial real estate at
March 31, 2015
and
2014
, respectively.
|
(f)
|
Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest to a trust, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm’s credit risk associated with these 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.
|
(g)
|
For the three months ended March 31, 2014, the decrease was primarily related to higher capital allocated to the Mortgage Servicing business, which, in turn, resulted in an increase in the option adjusted spread (“OAS”). The resulting OAS assumption continues to be consistent with capital and return requirements that the Firm believes a market participant would consider, taking into account factors such as the current operating risk environment and regulatory and economic capital requirements.
|
|
|
Three months ended March 31,
|
||||||
(in millions)
|
|
2015
|
|
2014
|
||||
CCB mortgage fees and related income
|
|
|
|
|
||||
Net production revenue
|
|
$
|
237
|
|
|
$
|
289
|
|
Net mortgage servicing revenue
|
|
|
|
|
||||
Operating revenue:
|
|
|
|
|
||||
Loan servicing revenue
|
|
749
|
|
|
870
|
|
||
Changes in MSR asset fair value due to collection/realization of expected cash flows
|
|
(214
|
)
|
|
(245
|
)
|
||
Total operating revenue
|
|
535
|
|
|
625
|
|
||
Risk management:
|
|
|
|
|
||||
Changes in MSR asset fair value due to market interest rates and other
(a)
|
|
(476
|
)
|
|
(362
|
)
|
||
Other changes in MSR asset fair value due to other inputs and assumptions in model
(b)
|
|
(102
|
)
|
|
(460
|
)
|
||
Change in derivative fair value and other
|
|
510
|
|
|
422
|
|
||
Total risk management
|
|
(68
|
)
|
|
(400
|
)
|
||
Total CCB net mortgage servicing revenue
|
|
467
|
|
|
225
|
|
||
All other
|
|
1
|
|
|
—
|
|
||
Mortgage fees and related income
|
|
$
|
705
|
|
|
$
|
514
|
|
(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)
|
Mar 31,
2015 |
|
Dec 31,
2014 |
|||||
Weighted-average prepayment speed assumption (“CPR”)
|
10.99
|
%
|
|
9.80
|
%
|
|||
Impact on fair value of 10% adverse change
|
$
|
(423
|
)
|
|
$
|
(337
|
)
|
|
Impact on fair value of 20% adverse change
|
(738
|
)
|
|
(652
|
)
|
|||
Weighted-average option adjusted spread
|
9.79
|
%
|
|
9.43
|
%
|
|||
Impact on fair value of 100 basis points adverse change
|
$
|
(254
|
)
|
|
$
|
(300
|
)
|
|
Impact on fair value of 200 basis points adverse change
|
(489
|
)
|
|
(578
|
)
|
(in millions)
|
March 31, 2015
|
|
December 31, 2014
|
||||
U.S. offices
|
|
|
|
||||
Noninterest-bearing
|
$
|
441,245
|
|
|
$
|
437,558
|
|
Interest-bearing:
|
|
|
|
||||
Demand
(a)
|
83,043
|
|
|
90,319
|
|
||
Savings
(b)
|
478,922
|
|
|
466,730
|
|
||
Time (included
$8,589
and $7,501 at fair value)
(c)
|
82,263
|
|
|
86,301
|
|
||
Total interest-bearing deposits
|
644,228
|
|
|
643,350
|
|
||
Total deposits in U.S. offices
|
1,085,473
|
|
|
1,080,908
|
|
||
Non-U.S. offices
|
|
|
|
||||
Noninterest-bearing
|
18,484
|
|
|
19,078
|
|
||
Interest-bearing:
|
|
|
|
||||
Demand
|
216,815
|
|
|
217,011
|
|
||
Savings
|
1,999
|
|
|
2,673
|
|
||
Time (included
$2,361
and $1,306 at fair value)
(c)
|
45,116
|
|
|
43,757
|
|
||
Total interest-bearing deposits
|
263,930
|
|
|
263,441
|
|
||
Total deposits in non-U.S. offices
|
282,414
|
|
|
282,519
|
|
||
Total deposits
|
$
|
1,367,887
|
|
|
$
|
1,363,427
|
|
(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 2014
Annual Report
.
|
(in millions, except per share amounts)
|
Three months ended March 31,
|
|||||
2015
|
2014
|
|||||
Basic earnings per share
|
|
|
||||
Net income
|
$
|
5,914
|
|
$
|
5,269
|
|
Less: Preferred stock dividends
|
324
|
|
227
|
|
||
Net income applicable to common equity
|
5,590
|
|
5,042
|
|
||
Less: Dividends and undistributed earnings allocated to participating securities
|
138
|
|
149
|
|
||
Net income applicable to common stockholders
|
$
|
5,452
|
|
$
|
4,893
|
|
|
|
|
||||
Total weighted-average basic shares outstanding
|
3,725.3
|
|
3,787.2
|
|
||
Net income per share
|
$
|
1.46
|
|
$
|
1.29
|
|
|
|
|
||||
Diluted earnings per share
|
|
|
||||
Net income applicable to common stockholders
|
$
|
5,452
|
|
$
|
4,893
|
|
Total weighted-average basic shares outstanding
|
3,725.3
|
|
3,787.2
|
|
||
Add: Employee stock options, SARs and
warrants
(a)
|
32.2
|
|
36.4
|
|
||
Total weighted-average diluted shares outstanding
(b)
|
3,757.5
|
|
3,823.6
|
|
||
Net income per share
|
$
|
1.45
|
|
$
|
1.28
|
|
(a)
|
Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans. The aggregate number of shares issuable upon the exercise of such options was
1 million
for each of the
three months ended
March 31, 2015
and
2014
, respectively.
|
(b)
|
Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.
|
As of or for the three months ended
March 31, 2015 |
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, 2015
|
|
$
|
4,773
|
|
|
|
|
$
|
(147
|
)
|
|
|
|
$
|
(95
|
)
|
|
|
|
$
|
(2,342
|
)
|
|
|
|
$
|
2,189
|
|
|
Net change
|
|
89
|
|
|
|
|
(10
|
)
|
|
|
|
77
|
|
|
|
|
85
|
|
|
|
|
241
|
|
|
|||||
Balance at March 31, 2015
|
|
$
|
4,862
|
|
|
|
|
$
|
(157
|
)
|
|
|
|
$
|
(18
|
)
|
|
|
|
$
|
(2,257
|
)
|
|
|
|
$
|
2,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of or for the three months ended
March 31, 2014 |
Unrealized gains/(losses) on investment securities
(a)
|
|
Translation adjustments, net of hedges
|
|
Cash flow hedges
|
|
Defined benefit pension and OPEB plans
|
|
Accumulated other comprehensive income/(loss)
|
||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||
Balance at January 1, 2014
|
|
$
|
2,798
|
|
|
|
|
$
|
(136
|
)
|
|
|
|
$
|
(139
|
)
|
|
|
|
$
|
(1,324
|
)
|
|
|
|
$
|
1,199
|
|
|
Net change
|
|
994
|
|
|
|
|
(2
|
)
|
|
|
|
59
|
|
|
|
|
26
|
|
|
|
|
1,077
|
|
|
|||||
Balance at March 31, 2014
|
|
$
|
3,792
|
|
|
|
|
$
|
(138
|
)
|
|
|
|
$
|
(80
|
)
|
|
|
|
$
|
(1,298
|
)
|
|
|
|
$
|
2,276
|
|
|
(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.
|
|
2015
|
|
2014
|
||||||||||||||||||||
Three months ended March 31, (in millions)
|
Pretax
|
|
Tax effect
|
|
After-tax
|
|
Pretax
|
|
Tax effect
|
|
After-tax
|
||||||||||||
Unrealized gains/(losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized gains/(losses) arising during the period
|
$
|
225
|
|
|
$
|
(104
|
)
|
|
$
|
121
|
|
|
$
|
1,621
|
|
|
$
|
(609
|
)
|
|
$
|
1,012
|
|
Reclassification adjustment for realized (gains)/losses included in
net income
(a)
|
(52
|
)
|
|
20
|
|
|
(32
|
)
|
|
(30
|
)
|
|
12
|
|
|
(18
|
)
|
||||||
Net change
|
173
|
|
|
(84
|
)
|
|
89
|
|
|
1,591
|
|
|
(597
|
)
|
|
994
|
|
||||||
Translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Translation
(b)
|
(1,000
|
)
|
|
378
|
|
|
(622
|
)
|
|
154
|
|
|
(63
|
)
|
|
91
|
|
||||||
Hedges
(b)
|
993
|
|
|
(381
|
)
|
|
612
|
|
|
(154
|
)
|
|
61
|
|
|
(93
|
)
|
||||||
Net change
|
(7
|
)
|
|
(3
|
)
|
|
(10
|
)
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized gains/(losses) arising during the period
|
(49
|
)
|
|
18
|
|
|
(31
|
)
|
|
72
|
|
|
(30
|
)
|
|
42
|
|
||||||
Reclassification adjustment for realized (gains)/losses included in
net income
(c)
|
175
|
|
|
(67
|
)
|
|
108
|
|
|
27
|
|
|
(10
|
)
|
|
17
|
|
||||||
Net change
|
126
|
|
|
(49
|
)
|
|
77
|
|
|
99
|
|
|
(40
|
)
|
|
59
|
|
||||||
Defined benefit pension and OPEB plans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net gains/(losses) arising during the period
|
60
|
|
|
(24
|
)
|
|
36
|
|
|
69
|
|
|
(26
|
)
|
|
43
|
|
||||||
Reclassification adjustments included in net income
(d)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of net loss
|
71
|
|
|
(27
|
)
|
|
44
|
|
|
18
|
|
|
(8
|
)
|
|
10
|
|
||||||
Prior service costs/(credits)
|
(9
|
)
|
|
3
|
|
|
(6
|
)
|
|
(10
|
)
|
|
4
|
|
|
(6
|
)
|
||||||
Foreign exchange and other
|
33
|
|
|
(22
|
)
|
|
11
|
|
|
(4
|
)
|
|
(17
|
)
|
|
(21
|
)
|
||||||
Net change
|
155
|
|
|
(70
|
)
|
|
85
|
|
|
73
|
|
|
(47
|
)
|
|
26
|
|
||||||
Total other comprehensive income/(loss)
|
$
|
447
|
|
|
$
|
(206
|
)
|
|
$
|
241
|
|
|
$
|
1,763
|
|
|
$
|
(686
|
)
|
|
$
|
1,077
|
|
(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/expense in the Consolidated statements of income. The amounts were not material for the periods presented.
|
(c)
|
The pretax amounts are predominantly recorded in net interest income in the Consolidated statements of income. In the first quarter of 2015, the Firm reclassified approximately
$150 million
of net losses from AOCI to other income because the Firm determined that it is probable that the forecasted interest payment cash flows will not occur. For additional information, see Note 5.
|
(d)
|
The pretax amount is reported in compensation expense in the Consolidated statements of income.
|
|
JPMorgan Chase & Co.
(e)
|
||||||||||||||
|
Basel III Standardized Transitional
|
|
Basel III Advanced Transitional
|
||||||||||||
(in millions, except ratios)
|
Mar 31,
2015 |
|
Dec 31,
2014 |
|
Mar 31,
2015 |
|
Dec 31,
2014 |
||||||||
Regulatory capital
|
|
|
|
|
|
|
|
||||||||
CET1 capital
|
$
|
167,142
|
|
|
$
|
164,426
|
|
|
$
|
167,142
|
|
|
$
|
164,426
|
|
Tier 1 capital
(a)
|
188,791
|
|
|
186,294
|
|
|
188,791
|
|
|
186,294
|
|
||||
Total capital
|
223,256
|
|
|
221,225
|
|
|
213,366
|
|
|
210,684
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Risk-weighted
|
1,536,688
|
|
|
1,472,602
|
|
|
1,562,570
|
|
|
1,608,240
|
|
||||
Adjusted
average
(b)
|
2,510,897
|
|
|
2,465,414
|
|
|
2,510,897
|
|
|
2,465,414
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Capital ratios
(c)
|
|
|
|
|
|
|
|
||||||||
CET1
|
10.9
|
%
|
|
11.2
|
%
|
|
10.7
|
%
|
|
10.2
|
%
|
||||
Tier 1
(a)
|
12.3
|
|
|
12.7
|
|
|
12.1
|
|
|
11.6
|
|
||||
Total
|
14.5
|
|
|
15.0
|
|
|
13.7
|
|
|
13.1
|
|
||||
Tier 1 leverage
(d)
|
7.5
|
|
|
7.6
|
|
|
7.5
|
|
|
7.6
|
|
|
JPMorgan Chase Bank, N.A.
(e)
|
||||||||||||||
|
Basel III Standardized Transitional
|
|
Basel III Advanced Transitional
|
||||||||||||
(in millions, except ratios)
|
Mar 31,
2015 |
|
Dec 31,
2014 |
|
Mar 31,
2015 |
|
Dec 31,
2014 |
||||||||
Regulatory capital
|
|
|
|
|
|
|
|
||||||||
CET1 capital
|
$
|
161,912
|
|
|
$
|
156,567
|
|
|
$
|
161,912
|
|
|
$
|
156,567
|
|
Tier 1 capital
(a)
|
161,986
|
|
|
156,891
|
|
|
161,986
|
|
|
156,891
|
|
||||
Total capital
|
178,185
|
|
|
173,328
|
|
|
171,232
|
|
|
166,331
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Risk-weighted
|
1,275,482
|
|
|
1,230,358
|
|
|
1,304,984
|
|
|
1,330,175
|
|
||||
Adjusted
average (b) |
2,033,143
|
|
|
1,968,131
|
|
|
2,033,143
|
|
|
1,968,131
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Capital ratios
(c)
|
|
|
|
|
|
|
|
||||||||
CET1
|
12.7
|
%
|
|
12.7
|
%
|
|
12.4
|
%
|
|
11.8
|
%
|
||||
Tier 1
(a)
|
12.7
|
|
|
12.8
|
|
|
12.4
|
|
|
11.8
|
|
||||
Total
|
14.0
|
|
|
14.1
|
|
|
13.1
|
|
|
12.5
|
|
||||
Tier 1 leverage
(d)
|
8.0
|
|
|
8.0
|
|
|
8.0
|
|
|
8.0
|
|
|
Chase Bank USA, N.A.
(e)
|
||||||||||||||
|
Basel III Standardized Transitional
|
|
Basel III Advanced Transitional
|
||||||||||||
(in millions,
except ratios)
|
Mar 31,
2015 |
|
Dec 31,
2014 |
|
Mar 31,
2015 |
|
Dec 31,
2014 |
||||||||
Regulatory capital
|
|
|
|
|
|
|
|
||||||||
CET1 capital
|
$
|
14,832
|
|
|
$
|
14,556
|
|
|
$
|
14,832
|
|
|
$
|
14,556
|
|
Tier 1 capital
(a)
|
14,832
|
|
|
14,556
|
|
|
14,832
|
|
|
14,556
|
|
||||
Total capital
|
20,750
|
|
|
20,517
|
|
|
19,482
|
|
|
19,206
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Risk-weighted
|
99,974
|
|
|
103,468
|
|
|
156,300
|
|
|
157,565
|
|
||||
Adjusted
average (b) |
125,782
|
|
|
128,111
|
|
|
125,782
|
|
|
128,111
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Capital ratios
(c)
|
|
|
|
|
|
|
|
||||||||
CET1
|
14.8
|
%
|
|
14.1
|
%
|
|
9.5
|
%
|
|
9.2
|
%
|
||||
Tier 1
(a)
|
14.8
|
|
|
14.1
|
|
|
9.5
|
|
|
9.2
|
|
||||
Total
|
20.8
|
|
|
19.8
|
|
|
12.5
|
|
|
12.2
|
|
||||
Tier 1 leverage
(d)
|
11.8
|
|
|
11.4
|
|
|
11.8
|
|
|
11.4
|
|
(a)
|
At
March 31, 2015
, trust preferred securities included in Basel III Tier 1 capital were
$960 million
and
$150 million
for
JPMorgan Chase
and JPMorgan Chase Bank, N.A., respectively. At
March 31, 2015
, Chase Bank USA, N.A. had
no
trust preferred securities.
|
(b)
|
Adjusted average assets, for purposes of calculating the Tier 1 leverage ratio, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 Capital predominantly comprising disallowed goodwill and other intangible assets.
|
(c)
|
For each risk-based capital ratio, the capital adequacy of the Firm and its national bank subsidiaries are evaluated against the Basel III approach, Standardized or Advanced, resulting in the lower ratio.
|
(d)
|
As the Tier 1 leverage ratio is not a risk-based measure of capital, the ratios presented in the table reflect the same calculation.
|
(e)
|
Asset and capital amounts for
JPMorgan Chase
’s national 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 nontaxable business combinations and from tax-deductible goodwill. The Firm had deferred tax liabilities resulting from nontaxable business combinations totaling
$125 million
and
$130 million
at
March 31, 2015
, and
December 31, 2014
, respectively; and deferred tax liabilities resulting from tax-deductible goodwill of
$2.7 billion
at both
March 31, 2015
, and
December 31, 2014
.
|
|
Minimum capital ratios
(a)
|
|
Well-capitalized ratios
(a)
|
|
||
Capital ratios
|
|
|
|
|
||
CET1
|
4.5
|
%
|
|
6.5
|
%
|
|
Tier 1
|
6.0
|
|
|
8.0
|
|
|
Total
|
8.0
|
|
|
10.0
|
|
|
Tier 1 leverage
|
4.0
|
|
|
5.0
|
|
(b)
|
(a)
|
As defined by the regulations issued by the Federal Reserve, OCC and FDIC.
|
(b)
|
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.
|
(a)
|
Includes certain commitments to purchase loans from correspondents.
|
(b)
|
Predominantly all consumer lending-related commitments are in the U.S.
|
(c)
|
At
March 31, 2015
, and
December 31, 2014
, reflects the contractual amount net of risk participations totaling
$284 million
and
$243 million
, respectively, for other unfunded commitments to extend credit;
$12.7 billion
and
$13.0 billion
, respectively, for standby letters of credit and other financial guarantees; and
$424 million
and
$469 million
, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations.
|
(d)
|
At
March 31, 2015
, and
December 31, 2014
, included credit enhancements and bond and commercial paper liquidity commitments to U.S. states and municipalities, hospitals and other non-profit entities of
$14.4 billion
and
$14.8 billion
, respectively, within other unfunded commitments to extend credit; and
$12.5 billion
and
$13.3 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
March 31, 2015
, and
December 31, 2014
, included unissued standby letters of credit commitments of
$44.8 billion
and
$45.6 billion
, respectively.
|
(f)
|
At
March 31, 2015
, and
December 31, 2014
, the U.S. portion of the contractual amount of total wholesale lending-related commitments was
77%
and
73%
, respectively.
|
(g)
|
Effective January 1, 2015, the Firm no longer includes within its disclosure of wholesale lending-related commitments the unused amount of advised uncommitted lines of credit as it is within the Firm’s discretion whether or not to make a loan under these lines, and the Firm’s approval is generally required prior to funding. Prior period amounts have been revised to conform with the current period presentation.
|
(h)
|
At
March 31, 2015
, and
December 31, 2014
, collateral held by the Firm in support of securities lending indemnification agreements was
$192.6 billion
and
$177.1 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.
|
(i)
|
At
March 31, 2015
, and
December 31, 2014
, included unfunded commitments of
$142 million
and
$147 million
, respectively, to third-party private equity funds; and
$861 million
and
$961 million
, at
March 31, 2015
, and
December 31, 2014
, respectively, to other equity investments. These commitments included
$162 million
and
$150 million
, respectively, related to investments that are generally fair valued at net asset value as discussed in Note 3. In addition, at
March 31, 2015
, and
December 31, 2014
, included letters of credit hedged by derivative transactions and managed on a market risk basis of
$4.4 billion
and
$4.5 billion
, respectively.
|
(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.
|
|
March 31, 2015
|
|
December 31, 2014
|
||||||||||||||
(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)
|
|
$
|
64,311
|
|
|
$
|
3,381
|
|
|
|
$
|
66,856
|
|
|
$
|
3,476
|
|
Noninvestment-grade
(a)
|
|
22,750
|
|
|
869
|
|
|
|
23,018
|
|
|
855
|
|
||||
Total contractual amount
|
|
$
|
87,061
|
|
|
$
|
4,250
|
|
|
|
$
|
89,874
|
|
|
$
|
4,331
|
|
Allowance for lending-related commitments
|
|
$
|
230
|
|
|
$
|
1
|
|
|
|
$
|
234
|
|
|
$
|
1
|
|
Commitments with collateral
|
|
38,290
|
|
|
1,274
|
|
|
|
39,726
|
|
|
1,509
|
|
(a)
|
The ratings scale is based on the Firm’s internal ratings which generally correspond to ratings as defined by S&P and Moody’s.
|
(a)
|
Presented net of third-party recoveries and include principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants, and certain related expense. Make-whole settlements were
$2 million
for each of the three months ended
March 31, 2015
and
2014
.
|
(b)
|
Included a provision related to new loan sales of
$1 million
for each of the three months ended
March 31, 2015
and
2014
.
|
As of or for the three months ended March 31,
(in millions, except ratios)
|
Corporate
|
|
Reconciling Items
(b)
|
|
Total
|
|||||||||||||||
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|||||||||||||
Noninterest revenue
|
$
|
40
|
|
$
|
524
|
|
|
$
|
(481
|
)
|
$
|
(412
|
)
|
|
$
|
13,389
|
|
$
|
12,548
|
|
Net interest income
|
(253
|
)
|
(525
|
)
|
|
(273
|
)
|
(226
|
)
|
|
10,677
|
|
10,667
|
|
||||||
Total net revenue
|
(213
|
)
|
(1
|
)
|
|
(754
|
)
|
(638
|
)
|
|
24,066
|
|
23,215
|
|
||||||
Provision for credit losses
|
(5
|
)
|
(11
|
)
|
|
—
|
|
—
|
|
|
959
|
|
850
|
|
||||||
Noninterest expense
|
152
|
|
(166
|
)
|
|
—
|
|
—
|
|
|
14,883
|
|
14,636
|
|
||||||
Income/(loss) before income tax expense/(benefit)
|
(360
|
)
|
176
|
|
|
(754
|
)
|
(638
|
)
|
|
8,224
|
|
7,729
|
|
||||||
Income tax expense/(benefit)
|
(418
|
)
|
61
|
|
|
(754
|
)
|
(638
|
)
|
|
2,310
|
|
2,460
|
|
||||||
Net income
|
$
|
58
|
|
$
|
115
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
5,914
|
|
$
|
5,269
|
|
Average common equity
|
$
|
76,352
|
|
$
|
66,797
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
212,352
|
|
$
|
201,797
|
|
Total assets
|
943,085
|
|
839,625
|
|
|
NA
|
|
NA
|
|
|
2,577,148
|
|
2,476,650
|
|
||||||
Return on common equity
|
NM
|
|
NM
|
|
|
NM
|
|
NM
|
|
|
11
|
%
|
10
|
%
|
||||||
Overhead ratio
|
NM
|
|
NM
|
|
|
NM
|
|
NM
|
|
|
62
|
|
63
|
|
(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 March 31, 2015
|
|
Three months ended March 31, 2014
|
||||||||||||||||||
|
Average
balance
|
Interest
(d)
|
|
Rate
(annualized)
|
|
Average
balance
|
Interest
(d)
|
|
Rate
(annualized)
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits with banks
|
$
|
480,182
|
|
$
|
341
|
|
|
0.29
|
%
|
|
|
$
|
319,130
|
|
$
|
256
|
|
|
0.33
|
%
|
|
Federal funds sold and securities purchased under resale agreements
|
217,546
|
|
396
|
|
|
0.74
|
|
|
|
245,389
|
|
436
|
|
|
0.72
|
|
|
||||
Securities borrowed
|
111,197
|
|
(120
|
)
|
(e)
|
(0.44
|
)
|
|
|
118,227
|
|
(88
|
)
|
(e)
|
(0.30
|
)
|
|
||||
Trading assets – debt instruments
|
210,069
|
|
1,755
|
|
|
3.39
|
|
|
|
202,387
|
|
1,791
|
|
|
3.59
|
|
|
||||
Taxable securities
|
295,049
|
|
1,724
|
|
|
2.37
|
|
|
|
317,954
|
|
1,902
|
|
|
2.43
|
|
|
||||
Nontaxable securities
(a)
|
39,918
|
|
603
|
|
|
6.13
|
|
|
|
30,817
|
|
479
|
|
|
6.30
|
|
|
||||
Total securities
|
334,967
|
|
2,327
|
|
|
2.82
|
|
(f)
|
|
348,771
|
|
2,381
|
|
|
2.77
|
|
(f)
|
||||
Loans
|
757,638
|
|
7,994
|
|
|
4.28
|
|
|
|
730,312
|
|
8,081
|
|
|
4.49
|
|
|
||||
Other assets
(b)
|
37,202
|
|
145
|
|
|
1.59
|
|
|
|
41,430
|
|
162
|
|
|
1.58
|
|
|
||||
Total interest-earning assets
|
2,148,801
|
|
12,838
|
|
|
2.42
|
|
|
|
2,005,646
|
|
13,019
|
|
|
2.63
|
|
|
||||
Allowance for loan losses
|
(14,057
|
)
|
|
|
|
|
|
(16,168
|
)
|
|
|
|
|
||||||||
Cash and due from banks
|
24,725
|
|
|
|
|
|
|
27,743
|
|
|
|
|
|
||||||||
Trading assets – equity instruments
|
112,118
|
|
|
|
|
|
|
112,525
|
|
|
|
|
|
||||||||
Trading assets – derivative receivables
|
83,901
|
|
|
|
|
|
|
64,820
|
|
|
|
|
|
||||||||
Goodwill
|
47,491
|
|
|
|
|
|
|
48,054
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
6,827
|
|
|
|
|
|
|
9,227
|
|
|
|
|
|
||||||||
Other intangible assets
|
1,162
|
|
|
|
|
|
|
1,548
|
|
|
|
|
|
||||||||
Other assets
|
146,042
|
|
|
|
|
|
|
149,309
|
|
|
|
|
|
||||||||
Total assets
|
$
|
2,557,010
|
|
|
|
|
|
|
$
|
2,402,704
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits
|
$
|
904,325
|
|
$
|
364
|
|
|
0.16
|
%
|
|
|
$
|
866,759
|
|
$
|
426
|
|
|
0.20
|
%
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
200,236
|
|
142
|
|
|
0.29
|
|
|
|
200,918
|
|
162
|
|
|
0.33
|
|
|
||||
Commercial paper
|
60,013
|
|
34
|
|
|
0.23
|
|
|
|
58,682
|
|
33
|
|
|
0.23
|
|
|
||||
Trading liabilities – debt, short-term and other liabilities
(c)(g)
|
223,361
|
|
156
|
|
|
0.28
|
|
|
|
214,810
|
|
233
|
|
|
0.44
|
|
|
||||
Beneficial interests issued by consolidated VIEs
|
50,718
|
|
98
|
|
|
0.79
|
|
|
|
49,058
|
|
105
|
|
|
0.87
|
|
|
||||
Long-term debt
|
279,318
|
|
1,094
|
|
|
1.59
|
|
|
|
269,403
|
|
1,167
|
|
|
1.76
|
|
|
||||
Total interest-bearing liabilities
|
1,717,971
|
|
1,888
|
|
|
0.45
|
|
|
|
1,659,630
|
|
2,126
|
|
|
0.52
|
|
|
||||
Noninterest-bearing deposits
|
432,188
|
|
|
|
|
|
|
377,520
|
|
|
|
|
|
||||||||
Trading liabilities – equity instruments
(g)
|
18,210
|
|
|
|
|
|
|
16,432
|
|
|
|
|
|
||||||||
Trading liabilities – derivative payables
|
76,049
|
|
|
|
|
|
|
53,143
|
|
|
|
|
|
||||||||
All other liabilities, including the allowance for lending-related commitments
|
79,415
|
|
|
|
|
|
|
80,626
|
|
|
|
|
|
||||||||
Total liabilities
|
2,323,833
|
|
|
|
|
|
|
2,187,351
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock
|
20,825
|
|
|
|
|
|
|
13,556
|
|
|
|
|
|
||||||||
Common stockholders’ equity
|
212,352
|
|
|
|
|
|
|
201,797
|
|
|
|
|
|
||||||||
Total stockholders’ equity
|
233,177
|
|
|
|
|
|
|
215,353
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
2,557,010
|
|
|
|
|
|
|
$
|
2,402,704
|
|
|
|
|
|
||||||
Interest rate spread
|
|
|
|
1.97
|
%
|
|
|
|
|
|
2.11
|
%
|
|
||||||||
Net interest income and net yield on interest-earning assets
|
|
$
|
10,950
|
|
|
2.07
|
|
|
|
|
$
|
10,893
|
|
|
2.20
|
|
|
(a)
|
Represents securities which are tax exempt for U.S. federal income tax purposes.
|
(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)
|
Negative interest income and yield is a result of increased client-driven demand for certain securities combined with the impact of low interest rates; this is matched book activity and the negative interest expense on the corresponding securities loaned is recognized in interest expense and reported within trading liabilities - debt, short-term and other liabilities.
|
(f)
|
For the three months ended March 31, 2015 and 2014, the annualized rates for securities, based on amortized cost, were 2.89% and 2.82%, respectively; this does not give effect to changes in fair value that are reflected in accumulated other comprehensive income/(loss).
|
(g)
|
Included trading liabilities - debt and equity instruments of $84,185 and $85,337 for the three months ended March 31, 2015 and 2014, respectively.
|
GLOSSARY OF TERMS
|
•
|
All wholesale nonaccrual loans
|
•
|
All TDRs (both wholesale and consumer), including ones that have returned to accrual status
|
LINE OF BUSINESS METRICS
|
•
|
Actual gross income earned from servicing third-party mortgage loans, such as contractually specified servicing fees and ancillary income; and
|
•
|
The change in the fair value of the MSR asset due to the collection or realization of expected cash flows.
|
|
|
Three months ended March 31,
|
|||||
(in millions)
|
|
2015
|
2014
|
||||
Total shares of common stock repurchased
|
|
32.5
|
|
6.7
|
|
||
Aggregate common stock repurchases
|
|
$
|
1,900
|
|
$
|
386
|
|
Three months ended March 31, 2015
|
|
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)
(a)
|
|||||||
January
|
|
13,680,080
|
|
|
$
|
57.58
|
|
|
$
|
788
|
|
|
$
|
3,096
|
|
February
|
|
10,536,837
|
|
|
57.26
|
|
|
603
|
|
|
2,493
|
|
|||
March
|
|
8,314,377
|
|
|
61.20
|
|
|
509
|
|
|
1,984
|
|
|||
First quarter
|
|
32,531,294
|
|
|
$
|
58.40
|
|
|
$
|
1,900
|
|
|
$
|
1,984
|
|
(a)
|
Excludes commissions cost.
|
10.1
|
Long-Term Incentive Plan Terms & Conditions for restricted stock units for Operating Committee members (U.S., E.U. and U.K.), dated as of January 20, 2015
(b)
|
15
|
Letter re: Unaudited Interim Financial Information
(b)
|
31.1
|
Certification
(b)
|
31.2
|
Certification
(b)
|
32
|
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(c)
|
101.INS XBRL
|
Instance Document
(b)(d)
|
101.SCH XBRL
|
Taxonomy Extension Schema Document
(b)
|
101.CAL XBRL
|
Taxonomy Extension Calculation Linkbase Document
(b)
|
101.LAB XBRL
|
Taxonomy Extension Label Linkbase Document
(b)
|
101.PRE XBRL
|
Taxonomy Extension Presentation Linkbase Document
(b)
|
101.DEF XBRL
|
Taxonomy Extension Definition Linkbase Document
(b)
|
(a)
|
This exhibit is a management contract or compensatory plan or arrangement.
|
(b)
|
Filed herewith.
|
(c)
|
Furnished herewith. This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
|
(d)
|
Pursuant to Rule 405 of Regulation S-T, includes the following financial information included in the Firm’s
Quarterly Report on Form 10-Q
for the quarterly period ended
March 31, 2015
, formatted in XBRL (eXtensible Business Reporting Language) interactive data files: (i) the Consolidated statements of income (unaudited) for the
three months ended
March 31, 2015
and
2014
, (ii) the Consolidated statements of comprehensive income (unaudited) for the
three months ended
March 31, 2015
and
2014
, (iii) the Consolidated balance sheets (unaudited) as of
March 31, 2015
, and
December 31, 2014
, (iv) the Consolidated statements of changes in stockholders’ equity (unaudited) for the
three months ended
March 31, 2015
and
2014
, (v) the Consolidated statements of cash flows (unaudited) for the
three months ended
March 31, 2015
and
2014
, and (vi) the Notes to Consolidated Financial Statements (unaudited).
|
JPMorgan Chase & Co.
|
(Registrant)
|
By:
|
/s/ Mark W. O’Donovan
|
|
Mark W. O’Donovan
|
|
Managing Director and Corporate Controller
|
|
(Principal Accounting Officer)
|
Date:
|
May 5, 2015
|
Exhibit No.
|
|
Description of Exhibit
|
|
|
|
10.1
|
|
Long-Term Incentive Plan Terms & Conditions for restricted stock units for Operating Committee members
(U.S., E.U. and U.K.), dated as of January 20, 2015
|
|
|
|
15
|
|
Letter re: Unaudited Interim Financial Information
|
|
|
|
31.1
|
|
Certification
|
|
|
|
31.2
|
|
Certification
|
|
|
|
32
|
|
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002†
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
†
|
|
This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
|
Award Agreement
|
These terms and conditions are made part of the Award Agreement dated as of January 20, 2015 (“Grant Date”) awarding restricted stock units pursuant to the terms of the JPMorgan Chase & Co. Long-Term Incentive Plan (“Plan”). To the extent the terms of the Award Agreement (all references to which will include these terms and conditions) conflict with the Plan, the Plan will govern. The Award Agreement, the Plan and Prospectus supersede any other agreement, whether written or oral, that may have been entered into by the Firm and you relating to this award.
This award was granted on the Grant Date subject to the Award Agreement.
Unless you decline by the deadline and in the manner specified in the Award Agreement, you will have agreed to be bound by these terms and conditions, effective as of the Grant Date.
If you decline the award, it will be cancelled as of the Grant Date.
Capitalized terms that are not defined in “
Definitions
” below or elsewhere in the Award Agreement will have the same meaning as set forth in the Plan.
JPMorgan Chase & Co. will be referred to throughout the Award Agreement as “JPMorgan Chase,” and together with its subsidiaries as the “Firm.”
|
Form and Purpose of Award
|
Each restricted stock unit represents a non-transferable right to receive one share of Common Stock as of the applicable vesting date as set forth in your Award Agreement.
The purpose of this award is to motivate your future performance for services to be provided during the vesting period and to align your interests with those of the Firm and its shareholders.
|
Dividend
Equivalents
|
If dividends are paid on Common Stock while restricted stock units under this award are outstanding, you will be paid an amount equal to the dividend paid on one share of Common Stock, multiplied by the number of restricted stock units outstanding under this award.
|
Protection-Based Vesting
|
This award is intended and expected to vest on the applicable vesting date, provided that you are continuously employed by the Firm through such vesting date, or you meet the requirements for continued vesting described under the subsections “–Job Elimination,” “–Full Career Eligibility,” “–Government Office” or “–Disability.” However, vesting is subject to these terms and conditions (including, but not limited to, sections captioned “
Recapture Provisions
” and “Remedies” and the following protection-based vesting provisions).
Up to a total of fifty percent of your award (“At Risk restricted stock units”) may be cancelled under (i) and (ii):
(i) The Chief Executive Officer of JPMorgan Chase (“CEO”) determines in his or her sole discretion that cancellation of all or
portion of the At Risk restricted stock units is appropriate in light of any one or a combination of the following factors:
• Your performance in relation to the priorities for your position, or the Firm’s performance in relation to the priorities for which you share responsibility as a member of the Operating Committee, have been unsatisfactory for a sustained period of time. Among the factors the CEO may consider in assessing performance are net income, net revenue, return on equity, earnings per share and capital ratios of the Firm, both on an absolute basis and, as appropriate, relative to peer firms.
• For any calendar year ending during the vesting period, JPMorgan Chase’s annual pre-provision net income reported at the Firm level is negative.
• Awards granted to participants in a Line of Business, for which you exercise, or during the vesting period exercised, direct or indirect responsibility, were in whole or in part cancelled because the Line of Business did not meet its annual Line of Business Financial Threshold.
(ii) To the extent that the full number of At Risk restricted stock units have not been cancelled pursuant to the circumstances described in (i) above, then any remaining At Risk restricted stock units scheduled to vest on January 13, 2018 will be cancelled if, for the three calendar years preceding that date, the Firm does not meet the Firmwide Financial Threshold, unless the CEO determines in his or her sole discretion that it is appropriate that some or all of such At Risk restricted stock units should vest with respect to a particular individual or individuals due to extraordinary circumstances.
In the event that your employment terminates due to “Job Elimination,” ”Full Career Eligibility,” Government Office” or “Disability” entitling you to continued vesting in your award, the cancellation circumstances described in (i) and (ii) above will continue to apply to your At Risk restricted stock units.
Any determination above with respect to protection-based vesting provisions is subject to ratification by the Compensation and Management Development Committee of the Board of Directors of JPMorgan Chase (“Committee”). In the case of an award to the CEO, all such determinations shall be made by the Committee.
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Vesting Period
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The period from the Grant Date to the last vesting date is the “vesting period.” (See “Administrative Provision–Amendment” pursuant to which the Firm may extend the vesting period and “No Ownership Rights” pursuant to which the Firm may place restrictions on delivered shares of Common Stock following a vesting date.)
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Bonus Recoupment
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In consideration of the grant of this award, you agree that you are subject to the JPMorgan Chase Bonus Recoupment Policy or successor policy as in effect from time to time
as it applies both to the cash incentive compensation awarded to you for performance year 2014 and to this award. You can access this policy as currently in effect through the following link:
For the avoidance of doubt, nothing in these terms and conditions in any way limits the rights of the Firm under the JPMorgan Chase Bonus Recoupment Policy (or successor policy).
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Non-
Disparagement
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You will not, either during your employment with the Firm or thereafter, make or encourage others to make any public statement or release any information in verbal, written, electronic or any other form, that is intended to, or reasonably could be foreseen to, disparage, embarrass or criticize the Firm or its employees, officers, directors or shareholders as a group. This shall not preclude you from reporting to the Firm’s management or directors or to the government or a regulator conduct you believe to be in violation of the law or the Firm’s Code of Conduct or responding truthfully to questions or requests for information to the government, a regulator or in a court of law in connection with a legal or regulatory investigation or proceeding.
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Cooperation
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You will cooperate fully with and provide full and accurate information to the Firm and its counsel with respect to any matter (including any audit, tax proceeding, litigation, investigation or governmental proceeding) with respect to which you may have knowledge or information, subject to reimbursement for actual, appropriate and reasonable out-of-pocket expenses incurred by you.
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Compliance with Award Agreement
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You will provide the Firm with any information reasonably requested to determine compliance with the Award Agreement, and you authorize the Firm to disclose the terms of the Award Agreement to any third party who might be affected thereby, including your prospective employer.
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Notice Period
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If you are subject to a notice period or become subject to a notice period after the Grant Date, whether by contract or by policy, that requires you to provide advance written notice of your intention to terminate your employment (“Notice Period”), then as consideration for this award and continued employment, you will provide the Firm with the necessary advance written notice that applies to you, as specified by such contract or policy.
After receipt of your notice, the Firm may choose to have you continue to provide services during the applicable Notice Period or may place you on a paid leave for all or part of the applicable Notice Period. During the Notice Period, you shall continue to devote your full time and loyalty to the Firm by providing services in a cooperative and professional manner and not perform any services for any other employer and shall receive your base salary and certain benefits until your employment terminates. You and the Firm may mutually agree to waive or modify the length of the Notice Period.
Regardless of whether a Notice Period applies to you, you must comply with the 90-day advance notice period described under the section captioned “Termination of Employment–Full Career Eligibility” in the event you wish to terminate employment under the Full Career Eligibility provision.
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Remedies
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Cancellation
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In addition to the cancellation provisions described under the sections captioned “
Bonus Recoupment
,” “
Protection-Based Vesting
,” “
Termination of Employment
” and “
Recapture Provisions,
” your outstanding restricted stock units under this award may be cancelled if the Firm in its sole discretion determines that:
• you have failed to comply with any of the advance notice/cooperation requirements or employment restrictions applicable to your termination of employment, or
• you have failed to return the required forms specified under the section captioned “
Release/Certification
” within the specified deadline, including the certification required immediately prior to a vesting date under Full Career Eligibility and Disability, or
• you have violated any of the provisions as set forth above in the section captioned “
Your Obligations
.”
To the extent provided under “
Administrative Provisions
—Amendment” below, JPMorgan Chase reserves the right to suspend vesting of this award and/or distribution of shares under this award, including, without limitation, during any period that JPMorgan Chase is evaluating whether this award is subject to cancellation and/or recovery and/or whether the conditions for distributions of shares under this award are satisfied. See also “
Administrative Provisions
—No Ownership Rights.”
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Recovery
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In addition, you may be required to pay the Firm up to an amount equal to the Fair Market Value (determined as of the applicable vesting date) of the gross number of shares of Common Stock previously distributed under this award as follows:
•
Payment may be required with respect to any shares distributed within three years prior to a notice-of-recovery under this section
, if the Firm in its sole discretion determines that:
o you committed a fraudulent act, or engaged in knowing and willful misconduct related to your employment;
o you violated any of the provisions as set forth above in the section captioned “
Your Obligations
”, or
o you violated the employment restrictions set forth in the subsection Full Career Eligibility following the termination of your employment.
•
In addition, payment may be required with respect to any shares distributed within one year prior to notice-of-recovery under this section
, if the Firm in its sole discretion determines appropriate pursuant to the provisions in the section above captioned “
Recapture Provisions
.”
Notice-of-recovery under this section is a written (including electronic) notice from the Firm to you either requiring payment under this section or stating that JPMorgan Chase is evaluating requiring payment under this section. Without limiting the foregoing, notice-of-recovery will be deemed provided if the Firm makes a good faith attempt to provide written (including electronic) notice at your last known address maintained in the Firm’s employment records. For the avoidance of doubt, a notice-of-recovery that the Firm is evaluating requiring payment under this section shall preserve JPMorgan Chase’s rights to require payment as set forth above in all respects and the Firm shall be under no obligation to complete its evaluation other than as the Firm may determine in its sole discretion.
For purposes of this section, shares distributed under this award include shares withheld for tax purposes. However, it is the Firm’s intention that you only be required to pay the amounts under this section with respect to shares that are or may be retained by you following a determination of tax liability and that you will not be required to pay amounts with respect to shares representing irrevocable tax withholdings or tax payments previously made (whether by you or the Firm) that you will not be able to recover, recapture or reclaim (including as a tax credit, refund or other benefit). Accordingly, JPMorgan Chase will not require you to pay any amount that the Firm or its nominee in his or her sole discretion determines is represented by such withholdings or tax payments.
Payment may be made in shares of Common Stock or in cash. You agree that this repayment will be a recovery of shares to which you were not entitled under the terms and conditions of your Award Agreement and is not to be construed in any manner as a penalty. You also acknowledge that a violation or attempted violation of the obligations set forth herein will cause immediate and irreparable damage to the Firm, and therefore agree that the Firm shall be entitled as a matter of right to an injunction, from any court of competent jurisdiction, restraining any violation or further violation of such obligations; such right to an injunction, however, shall be cumulative and in addition to whatever other remedies the Firm may have under law or equity.
Nothing in the section in any way limits your obligations under “Bonus Recoupment”.
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Administrative Provisions
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Withholding Taxes:
The Firm, in its sole discretion, may (i) retain from each distribution the number of shares of Common Stock required to satisfy applicable tax obligations (including, to the extent legally permissible, recovery by the Firm of fringe benefit taxes) or (ii) implement any other desirable or necessary procedures, so that appropriate withholding and other taxes are paid to the competent authorities with respect to the vested shares, dividend equivalents and the award. This may include but is not limited to (i) a market sale of a number of such shares on your behalf substantially equal to the withholding or other taxes, (ii) to the extent required by law, withhold from cash compensation, an amount equal to any withholding obligation with respect to the award, vested shares, and/or dividend equivalents, and (iii) retaining vested shares or dividend equivalents until you pay any taxes associated with the award, vested shares and/or the dividend equivalents directly to the competent authorities. For United States tax purposes, dividend equivalents are treated as wages and subject to tax withholding when paid.
Right to Set Off:
The Firm may, to the maximum extent permitted by applicable law (including Section 409A of the Code), retain for itself funds or the Common Stock resulting from any vesting of this award to satisfy any obligation or debt that you owe to the Firm. Notwithstanding any account agreement with the Firm to the contrary, the Firm will not recoup or recover any amount owed from any funds or unrestricted securities held in your name and maintained at the Firm pursuant to such account agreement to satisfy any obligation or debt or obligation owed by you under this award without your consent. This restriction on the Firm does not apply to accounts described and authorized in “No Ownership Rights” described below.
No Ownership Rights
: Restricted stock units do not convey the rights of ownership of Common Stock and do not carry voting rights. No shares of Common Stock will be issued to you until after the restricted stock units have vested and any applicable restrictions have lapsed. Shares will be issued in accordance with JPMorgan Chase’s procedures for issuing stock. By accepting this award, you authorize the Firm, in its discretion, to establish on your behalf a brokerage account in your name with the Firm and deliver to that brokerage account any vested shares derived from the award and, for avoidance of doubt, you further agree that it shall apply to prior unvested awards.
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With respect to any applicable vesting date, JPMorgan Chase may impose for any reason, as of such vesting date for such period as it may specify in its sole discretion, such restrictions on the Common Stock to be issued to you as it may deem appropriate, including, but not limited to, restricting the sale, transfer, pledge, assignment or encumbrance of such shares of Common Stock. By accepting this award, you acknowledge that during such specified period should there be a determination that the cancellation or recovery provisions of this Award (See “
Bonus Recoupment
,” “
Protection-Based Vesting
,” “
Termination of Employment
,” “
Recapture Provisions”
and “
Remedies”
) apply, then you agree that any shares subject to such restrictions (notwithstanding the limitation set forth set forth in the Right to Set Off section above) may be cancelled in whole or part. See also Amendment section permitting suspension of vesting.
Binding Agreement
: The Award Agreement will be binding upon any successor in interest to JPMorgan Chase, by merger or otherwise.
Not a Contract of Employment
: Nothing contained in the Award Agreement constitutes a contract of employment or continued employment. Employment is “at-will” and may be terminated by either you or JPMorgan Chase for any reason at any time. This award does not confer any right or entitlement to, nor does the award impose any obligation on the Firm to provide, the same or any similar award in the future and its value is not compensation for purposes of determining severance.
Section 409A Compliance
: To the extent that Section 409A of the Code is applicable to this award, distributions of shares and cash hereunder are intended to comply with Section 409A of the Code, and the Award Agreement, including these terms and conditions, shall be interpreted in a manner consistent with such intent.
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Notwithstanding anything herein to the contrary, if you (i) are subject to taxation under the Code, (ii) are a specified employee as defined in the JPMorgan Chase 2005 Deferred Compensation Plan and (iii) have incurred a separation from service (as defined in that Plan) and if any units/shares under this award represent deferred compensation as defined in Section 409A and such shares are distributable to you as a result of your separation from service, then those shares will be delivered to you on first business day of the first calendar month after the expiration of six full months from date of your separation from service. Further, if your award is not subject to a substantial risk of forfeiture as defined by regulations issued under Section 409A of the Code, then the remainder of each calendar year immediately following (i) each vesting date shall be a payment date for purposes of distributing the vested
portion of the award and (ii) each date that JPMorgan Chase specifies for payment of dividends declared on its Common Stock, shall be the payment date(s) for purposes of distributing dividend equivalent payments.
Change in Outstanding Shares
: In the event of any change in the outstanding shares of Common Stock by reason of any stock dividend or split, recapitalization, issuance of a new class of common stock, merger, consolidation, spin-off, combination or exchange of shares or other similar corporate change, or any distributions to stockholders of Common Stock other than regular cash dividends, the Committee will make an equitable substitution or proportionate adjustment, in the number or kind of shares of Common Stock or other securities issued or reserved for issuance pursuant to the Plan and to any restricted stock units outstanding under this award for such corporate events.
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Interpretation/Administration
: The Committee has sole and complete authority to interpret and administer this Award Agreement, including, without limitation, the power to (i) interpret the Plan and the terms of this Award Agreement; (ii) determine the reason for termination of employment; (iii) determine application of the post-employment obligations and cancellation and recovery provisions; (iv) decide all claims arising with respect to this award; and (v) delegate such authority as it deems appropriate. Any determination contemplated hereunder by the Committee, the Firm, the Director of Human Resources or their respective delegates or nominees shall be binding on all parties.
Notwithstanding anything herein to the contrary, the determinations of the Director of Human Resources, the Firm, the Committee and their respective delegates and nominees under the Plan and the Award Agreements are not required to be uniform. By way of clarification, the Committee, the Firm, the Director of Human Resources and their respective delegates and nominees shall be entitled to make non-uniform and selective determinations and modifications under Award Agreements and the Plan.
Amendment
: The Committee or its nominee reserves the right to amend this Award Agreement in any manner, at any time and for any reason; provided, however, that no such amendment shall materially adversely affect your rights under this Award Agreement without your consent except to the extent that the Committee or its delegate considers advisable to (x) comply with applicable laws or changes in or interpretation of applicable laws, regulatory requirements and accounting rules or standards and/or (y) make a change in a scheduled vesting date or impose the restrictions described above under “No Ownership Rights,” in either case, to the extent permitted by Section 409A of the Code. This Award Agreement may not be amended except in writing signed by the Director of Human Resources of JPMorgan Chase.
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Severability
: If any portion of the Award Agreement is determined by the Firm to be unenforceable in any jurisdiction, any court or arbitrator of competent jurisdiction or the Director of Human Resources may reform the relevant provisions (e.g., as to length of service, time, geographical area or scope) to the extent the Firm (or court/arbitrator) considers necessary to make the provision enforceable under applicable law.
Accelerated Distribution for Ethics or Conflict Reasons Resulting From Employment by a Government Entity
: Upon receipt of satisfactory evidence that applicable United States federal, state, local, foreign or supranational ethics or conflict of interest laws or regulations require you to divest your interest in JPMorgan Chase restricted stock units, the Firm may accelerate the distribution of all or part of your outstanding award effective on or before the required divesture date; provided that no accelerated distribution shall occur if the Firm determines that such acceleration will violate Section 409A of the Code. If you have voluntarily terminated your employment and have satisfied the requirements of the “Government Office” section of this award, acceleration shall apply (to extent required) to the percentage of your outstanding award that would continue to vest under that section. In the case of a termination of employment where the award is outstanding as a result of “Job Elimination” or “Full Career Eligibility”, then acceleration shall apply, to the extent required, to the full outstanding award. Notwithstanding accelerated distribution pursuant to the foregoing, you will remain subject to the applicable terms of your Award Agreement as if your award had remained outstanding for the duration of the original vesting period and shares had been distributed as scheduled as of each applicable vesting date, including, but not limited to, repayment obligations set forth in “Remedies” and employment restrictions in the case of “Full Career Eligibility” or “Government Office.”
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Use of Personal Data:
By accepting this award, you have acknowledged that the Firm may use your personal data for purposes of (i) determining your compensation, (ii) payroll activities, including, but not limited to, tax withholding and regulatory reporting, (iii) registration of shares and units, (iv) establishing brokerage account on your behalf, and (v) all other lawful purposes related to your employment and this award and that the Firm may provide such data to third party vendors with whom it has contracted to provide such services. You may terminate this authorization at any time except with respect to tax and regulatory reporting. In such case, your award will be cancelled.
Governing Law
: This award shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflict of law principles.
Choice of Forum
: By accepting this award, you agree that to the extent not otherwise subject to arbitration under an arbitration agreement between you and the Firm, any dispute arising directly or indirectly in connection with this award or the Plan shall be submitted to arbitration in accordance with the rules of the American Arbitration Association if so elected by the Firm in its sole discretion. In the event such a dispute is not subject to arbitration for any reason, you agree to accept the exclusive jurisdiction and venue of the United States District Court for the Southern District of New York with respect to any judicial proceeding in connection with this award or the Plan. You waive, to the fullest extent permitted by law, any objection to personal jurisdiction or to the laying of venue of such dispute and further agree not to commence any action arising out of or relating to this award or the Plan in any other forum.
Waiver of Jury Trial/Class Claims:
By accepting this award, you agree, with respect to any claim brought in connection with your employment with the Firm in any forum (i) to waive the right to a jury trial and (ii) that any judicial proceeding or arbitration claim will be brought on an individual basis, and you hereby waive any right to submit, initiate, or participate in a representative capacity or as a plaintiff, claimant or member in a class action, collective action, or other representative or joint action.
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Litigation:
By accepting any award, you agree that
in any action or proceeding by the Firm (other than a derivative suit in the right of the Firm) to enforce the terms and conditions of this Award Agreement where the Firm is the prevailing party, the Firm shall be entitled to recover from you its reasonable attorney fees and expenses incurred in such action or proceeding. In addition, you agree that you are not entitled to, and agree not to seek, advancement of attorney fees and indemnification under the Firm’s By-Laws in the event of such a suit by the Firm.
Nontransferability:
Neither this award or any other outstanding awards of restricted stock units, nor your interests or rights in any such awards, shall be assigned, pledged, transferred, hypothecated or subject to any lien. An award may be transferred following your death by will, the laws of descent or by a beneficiary designation on file with the Firm.
Outstanding Awards:
The Administrative provisions set forth above shall apply to any award of restricted stock units outstanding as of the date hereof, and such awards are hereby amended.
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Definitions
|
“
Cause
” means a determination by the Firm that your employment terminated as a result of your (i) violation of any law, rule or regulation (including rules of self-regulatory bodies) related to the Firm’s business, (ii) indictment or conviction of a felony, (iii) commission of a fraudulent act, (iv) violation of the JPMorgan Code of Conduct or other Firm policies or misconduct related to your duties to the Firm (other than immaterial and inadvertent violations or misconduct), (v) grossly inadequate performance of the duties associated with your position or job function or failure to follow reasonable directives of your manager, or (vi) any act or failure to act that is injurious to the interests of the Firm or its relationship with a customer, client or an employee.
“
Financial Services Company
” means a business enterprise that employs you in any capacity (such as an employee, contractor, consultant, advisor, or self-employed individual, whether paid or unpaid) and engages in:
• commercial or retail banking, including, but not limited to, commercial, institutional and personal trust, custody and/or lending and processing services, originating and servicing mortgages, issuing and servicing credit cards,
• insurance, including but not limited to, guaranteeing against loss, harm, damage, illness, disability or death, providing and issuing annuities, acting as principal, agent or broker for purpose of the forgoing,
• financial, investment or economic advisory services, including but not limited to, investment banking services (such as advising on mergers or dispositions, underwriting, dealing in, or making a market in securities or other similar activities), brokerage services, investment management services, asset management services, and hedge funds,
• issuing, trading or selling instruments representing interests in pools of assets or in derivatives instruments,
• advising on, or investing in, private equity or real estate, or
• any similar activities that the Director of Human Resources or nominee determines in his or her sole discretion constitute financial services.
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“
Firmwide Financial Threshold
” means a Cumulative Return on Tangible Common Equity for 2015, 2016 and 2017 of not less than 15%. Cumulative Return on Tangible Common Equity means (i) the sum of the Firm’s reported net income for all three years, divided by (ii) reported year-end tangible equity averaged over the three years.
“
Government Office
” means (i) a full-time position in an elected or appointed office in local, state, or federal government (including equivalent positions outside the U.S. or in a supranational organization), not reasonably anticipated to be a full-career position, or (ii) conducting a bona fide full-time campaign for such an elective public office after formally filing for candidacy, where it is customary and reasonably necessary to campaign full-time for the office.
“
Line of Business
” means a business unit of the Firm (or one or more business units designated below under the definition “Line of Business Financial Threshold” of the Corporate & Investment Bank). All Corporate Functions (including the functions of the Chief Investment Office) are considered a single Line of Business.
“
Line of Business Financial Threshold
” means the financial threshold set forth below: for the following units:
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•
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At least 60 days’ advance written notice of your intention to resign to accept or pursue a Government Office, during which period you must perform in a cooperative and professional manner services requested by the Firm and not provide services for any other employer. The Firm may elect to shorten this notice period at the Firm’s discretion.
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•
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Confirmation, in a form satisfactory to the Firm, that vesting in this award pursuant to this provision would not violate any applicable law, regulation or rule.
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•
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Documentation in a form satisfactory to the Firm that your resignation is for the purpose of accepting a Government Office or becoming a candidate for a Government Office.
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•
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50% if you have at least 3 but less than 4 years of continuous service,
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•
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75% if you have at least 4 but less than 5 years of continuous service, or
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•
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100% if you have 5 or more years of continuous service.
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•
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You must remain in a non-elective Government Office for two or more years after your employment with the Firm terminates; or
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•
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In the case of resignation from the Firm to campaign for an elective Government Office, your name must be on the primary or final public ballot for the election. (If you are not elected, see below for employment restrictions.)
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Award Agreement
|
These terms and conditions are made part of the Award Agreement dated as of January 20, 2015 (“Grant Date”) awarding restricted stock units pursuant to the terms of the JPMorgan Chase & Co. Long-Term Incentive Plan (“Plan”). To the extent the terms of the Award Agreement (all references to which will include these terms and conditions) conflict with the Plan, the Plan will govern. The Award Agreement, the Plan and Prospectus supersede any other agreement, whether written or oral, that may have been entered into by the Firm and you relating to this award.
This award was granted on the Grant Date subject to the Award Agreement.
Unless you decline by the deadline and in the manner specified in the Award Agreement, you will have agreed to be bound by these terms and conditions, effective as of the Grant Date.
If you decline the award, it will be cancelled as of the Grant Date.
Capitalized terms that are not defined in “
Definitions
” below or elsewhere in the Award Agreement will have the same meaning as set forth in the Plan.
JPMorgan Chase & Co. will be referred to throughout the Award Agreement as “JPMorgan Chase,” and together with its subsidiaries as the “Firm.”
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Form and Purpose of Award
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Each restricted stock unit represents a non-transferable right to receive one share of Common Stock as of the applicable vesting date as set forth in your Award Agreement.
The purpose of this award is to motivate your future performance for services to be provided during the vesting period and to align your interests with those of the Firm and its shareholders.
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Dividend Equivalents
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If dividends are paid on Common Stock while restricted stock units under this award are outstanding, you will be paid an amount equal to the dividend paid on one share of Common Stock, multiplied by the number of restricted stock units outstanding under this award.
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Protection-Based Vesting
|
This award is intended and expected to vest on the applicable vesting date, provided that you are continuously employed by the Firm through such vesting date, or you meet the requirements for continued vesting described under the subsections “–Job Elimination,” “–Full Career Eligibility,” “–Government Office” or “–Disability.” However, vesting is subject to these terms and conditions (including, but not limited to, sections captioned “
Recapture Provisions
” and “Remedies” and the following protection-based vesting provisions).
Up to a total of fifty percent of your award (“At Risk restricted stock units”) may be cancelled under (i) and (ii):
(i) The Chief Executive Officer of JPMorgan Chase (“CEO”) determines in his or her sole discretion that cancellation of all or
portion of the At Risk restricted stock units is appropriate in light of any one or a combination of the following factors:
• Your performance in relation to the priorities for your position, or the Firm’s performance in relation to the priorities for which you share responsibility as a member of the Operating Committee, have been unsatisfactory for a sustained period of time. Among the factors the CEO may consider in assessing performance are net income, net revenue, return on equity, earnings per share and capital ratios of the Firm, both on an absolute basis and, as appropriate, relative to peer firms.
• For any calendar year ending during the vesting period, JPMorgan Chase’s annual pre-provision net income reported at the Firm level is negative.
• Awards granted to participants in a Line of Business, for which you exercise, or during the vesting period exercised, direct or indirect responsibility, were in whole or in part cancelled because the Line of Business did not meet its annual Line of Business Financial Threshold.
(ii) To the extent that the full number of At Risk restricted stock units have not been cancelled pursuant to the circumstances described in (i) above, then any remaining At Risk restricted stock units scheduled to vest on January 13, 2018 will be cancelled if, for the three calendar years preceding that date, the Firm does not meet the Firmwide Financial Threshold, unless the CEO determines in his or her sole discretion that it is appropriate that some or all of such At Risk restricted stock units should vest with respect to a particular individual or individuals due to extraordinary circumstances.
In the event that your employment terminates due to “Job Elimination,” ”Full Career Eligibility,” Government Office” or “Disability” entitling you to continued vesting in your award, the cancellation circumstances described in (i) and (ii) above will continue to apply to your At Risk restricted stock units.
Any determination above with respect to protection-based vesting provisions is subject to ratification by the Compensation and Management Development Committee of the Board of Directors of JPMorgan Chase (“Committee”). In the case of an award to the CEO, all such determinations shall be made by the Committee.
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Remedies
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Cancellation
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In addition to the cancellation provisions described under the sections captioned “
Bonus Recoupment
,” “
Protection-Based Vesting
,” “
Termination of Employment
” and “
Recapture Provisions,
” your outstanding restricted stock units under this award may be cancelled if the Firm in its sole discretion determines that:
• you have failed to comply with any of the advance notice/cooperation requirements or employment restrictions applicable to your termination of employment, or
• you have failed to return the required forms specified under the section captioned “
Release/Certification
” within the specified deadline, including the certification required immediately prior to a vesting date under Full Career Eligibility and Disability, or
• you have violated any of the provisions as set forth above in the section captioned “
Your Obligations
.”
To the extent provided under “
Administrative Provisions
—Amendment” below, JPMorgan Chase reserves the right to suspend vesting of this award and/or distribution of shares under this award, including, without limitation, during any period that JPMorgan Chase is evaluating whether this award is subject to cancellation and/or recovery and/or whether the conditions for distributions of shares under this award are satisfied. See also “
Administrative Provisions
—No Ownership Rights.”
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Recovery
|
In addition, you may be required to pay the Firm up to an amount equal to the Fair Market Value (determined as of the applicable vesting date) of the gross number of shares of Common Stock previously distributed under this award as follows:
•
Payment may be required with respect to any shares distributed within three years prior to a notice-of-recovery under this section
, if the Firm in its sole discretion determines that:
o you committed a fraudulent act, or engaged in knowing and willful misconduct related to your employment;
o you violated any of the provisions as set forth above in the section captioned “
Your Obligations
”, or
o you violated the employment restrictions set forth in the subsection Full Career Eligibility following the termination of your employment.
•
In addition, payment may be required with respect to any shares distributed within one year prior to notice-of-recovery under this section
, if the Firm in its sole discretion determines appropriate pursuant to the provisions in the section above captioned “
Recapture Provisions
.”
Notice-of-recovery under this section is a written (including electronic) notice from the Firm to you either requiring payment under this section or stating that JPMorgan Chase is evaluating requiring payment under this section. Without limiting the foregoing, notice-of-recovery will be deemed provided if the Firm makes a good faith attempt to provide written (including electronic) notice at your last known address maintained in the Firm’s employment records. For the avoidance of doubt, a notice-of-recovery that the Firm is evaluating requiring payment under this section shall preserve JPMorgan Chase’s rights to require payment as set forth above in all respects and the Firm shall be under no obligation to complete its evaluation other than as the Firm may determine in its sole discretion.
For purposes of this section, shares distributed under this award include shares withheld for tax purposes. However, it is the Firm’s intention that you only be required to pay the amounts under this section with respect to shares that are or may be retained by you following a determination of tax liability and that you will not be required to pay amounts with respect to shares representing irrevocable tax withholdings or tax payments previously made (whether by you or the Firm) that you will not be able to recover, recapture or reclaim (including as a tax credit, refund or other benefit). Accordingly, JPMorgan Chase will not require you to pay any amount that the Firm or its nominee in his or her sole discretion determines is represented by such withholdings or tax payments.
Payment may be made in shares of Common Stock or in cash. You agree that this repayment will be a recovery of shares to which you were not entitled under the terms and conditions of your Award Agreement and is not to be construed in any manner as a penalty. You also acknowledge that a violation or attempted violation of the obligations set forth herein will cause immediate and irreparable damage to the Firm, and therefore agree that the Firm shall be entitled as a matter of right to an injunction, from any court of competent jurisdiction, restraining any violation or further violation of such obligations; such right to an injunction, however, shall be cumulative and in addition to whatever other remedies the Firm may have under law or equity.
Nothing in the section in any way limits your obligations under “Bonus Recoupment”.
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Administrative Provisions
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Withholding Taxes:
The Firm, in its sole discretion, may (i) retain from each distribution the number of shares of Common Stock required to satisfy applicable tax obligations (including, to the extent legally permissible, recovery by the Firm of fringe benefit taxes) or (ii) implement any other desirable or necessary procedures, so that appropriate withholding and other taxes are paid to the competent authorities with respect to the vested shares, dividend equivalents and the award. This may include but is not limited to (i) a market sale of a number of such shares on your behalf substantially equal to the withholding or other taxes, (ii) to the extent required by law, withhold from cash compensation, an amount equal to any withholding obligation with respect to the award, vested shares, and/or dividend equivalents, and (iii) retaining vested shares or dividend equivalents until you pay any taxes associated with the award, vested shares and/or the dividend equivalents directly to the competent authorities. For United States tax purposes, dividend equivalents are treated as wages and subject to tax withholding when paid.
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Right to Set Off:
The Firm may, to the maximum extent permitted by applicable law (including Section 409A of the Code), retain for itself funds or the Common Stock resulting from any vesting of this award to satisfy any obligation or debt that you owe to the Firm. Notwithstanding any account agreement with the Firm to the contrary, the Firm will not recoup or recover any amount owed from any funds or unrestricted securities held in your name and maintained at the Firm pursuant to such account agreement to satisfy any obligation or debt or obligation owed by you under this award without your consent. This restriction on the Firm does not apply to accounts described and authorized in “No Ownership Rights” described below.
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No Ownership Rights
: Restricted stock units do not convey the rights of ownership of Common Stock and do not carry voting rights. No shares of Common Stock will be issued to you until after the restricted stock units have vested and any applicable restrictions have lapsed. Shares will be issued in accordance with JPMorgan Chase’s procedures for issuing stock. By accepting this award, you authorize the Firm, in its discretion, to establish on your behalf a brokerage account in your name with the Firm and deliver to that brokerage account any vested shares derived from the award and, for avoidance of doubt, you further agree that it shall apply to prior unvested awards.
With respect to any applicable vesting date, JPMorgan Chase may impose for any reason, as of such vesting date for such period as it may specify in its sole discretion, such restrictions on the Common Stock to be issued to you as it may deem appropriate, including, but not limited to, restricting the sale, transfer, pledge, assignment or encumbrance of such shares of Common Stock. By accepting this award, you acknowledge that during such specified period should there be a determination that the cancellation or recovery provisions of this Award (See “
Bonus Recoupment
,” “
Protection-Based Vesting
,” “
Termination of Employment
,” “
Recapture Provisions”
and “
Remedies”
) apply, then you agree that any shares subject to such restrictions (notwithstanding the limitation set forth set forth in the Right to Set Off section above) may be cancelled in whole or part. See also Amendment section permitting suspension of vesting.
Binding Agreement
: The Award Agreement will be binding upon any successor in interest to JPMorgan Chase, by merger or otherwise.
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Not a Contract of Employment
: Nothing contained in the Award Agreement constitutes a contract of employment or continued employment. Employment is “at-will” and may be terminated by either you or JPMorgan Chase for any reason at any time. This award does not confer any right or entitlement to, nor does the award impose any obligation on the Firm to provide, the same or any similar award in the future and its value is not compensation for purposes of determining severance.
Section 409A Compliance
: To the extent that Section 409A of the Code is applicable to this award, distributions of shares and cash hereunder are intended to comply with Section 409A of the Code, and the Award Agreement, including these terms and conditions, shall be interpreted in a manner consistent with such intent.
Notwithstanding anything herein to the contrary, if you (i) are subject to taxation under the Code, (ii) are a specified employee as defined in the JPMorgan Chase 2005 Deferred Compensation Plan and (iii) have incurred a separation from service (as defined in that Plan) and if any units/shares under this award represent deferred compensation as defined in Section 409A and such shares are distributable to you as a result of your separation from service, then those shares will be delivered to you on first business day of the first calendar month after the expiration of six full months from date of your separation from service. Further, if your award is not subject to a substantial risk of forfeiture as defined by regulations issued under Section 409A of the Code, then the remainder of each calendar year immediately following (i) each vesting date shall be a payment date for purposes of distributing the vested
portion of the award and (ii) each date that JPMorgan Chase specifies for payment of dividends declared on its Common Stock, shall be the payment date(s) for purposes of distributing dividend equivalent payments.
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Change in Outstanding Shares
: In the event of any change in the outstanding shares of Common Stock by reason of any stock dividend or split, recapitalization, issuance of a new class of common stock, merger, consolidation, spin-off, combination or exchange of shares or other similar corporate change, or any distributions to stockholders of Common Stock other than regular cash dividends, the Committee will make an equitable substitution or proportionate adjustment, in the number or kind of shares of Common Stock or other securities issued or reserved for issuance pursuant to the Plan and to any restricted stock units outstanding under this award for such corporate events.
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Interpretation/Administration
: The Committee has sole and complete authority to interpret and administer this Award Agreement, including, without limitation, the power to (i) interpret the Plan and the terms of this Award Agreement; (ii) determine the reason for termination of employment; (iii) determine application of the post-employment obligations and cancellation and recovery provisions; (iv) decide all claims arising with respect to this award; and (v) delegate such authority as it deems appropriate. Any determination contemplated hereunder by the Committee, the Firm, the Director of Human Resources or their respective delegates or nominees shall be binding on all parties.
Notwithstanding anything herein to the contrary, the determinations of the Director of Human Resources, the Firm, the Committee and their respective delegates and nominees under the Plan and the Award Agreements are not required to be uniform. By way of clarification, the Committee, the Firm, the Director of Human Resources and their respective delegates and nominees shall be entitled to make non-uniform and selective determinations and modifications under Award Agreements and the Plan.
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Amendment
: The Committee or its nominee reserves the right to amend this Award Agreement in any manner, at any time and for any reason; provided, however, that no such amendment shall materially adversely affect your rights under this Award Agreement without your consent except to the extent that the Committee or its delegate considers advisable to (x) comply with applicable laws or changes in or interpretation of applicable laws, regulatory requirements and accounting rules or standards and/or (y) make a change in a scheduled vesting date or impose the restrictions described above under “No Ownership Rights,” in either case, to the extent permitted by Section 409A of the Code. This Award Agreement may not be amended except in writing signed by the Director of Human Resources of JPMorgan Chase.
Severability
: If any portion of the Award Agreement is determined by the Firm to be unenforceable in any jurisdiction, any court or arbitrator of competent jurisdiction or the Director of Human Resources may reform the relevant provisions (e.g., as to length of service, time, geographical area or scope) to the extent the Firm (or court/arbitrator) considers necessary to make the provision enforceable under applicable law.
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Accelerated Distribution for Ethics or Conflict Reasons Resulting From Employment by a Government Entity
:
Upon receipt of satisfactory evidence that applicable United States federal, state, local, foreign or supranational ethics or conflict of interest laws or regulations require you to divest your interest in JPMorgan Chase restricted stock units, the Firm may accelerate the distribution of all or part of your outstanding award effective on or before the required divesture date; provided that no accelerated distribution shall occur if the Firm determines that such acceleration will violate Section 409A of the Code. If you have voluntarily terminated your employment and have satisfied the requirements of the “Government Office” section of this award, acceleration shall apply (to extent required) to the percentage of your outstanding award that would continue to vest under that section. In the case of a termination of employment where the award is outstanding as a result of “Job Elimination” or “Full Career Eligibility”, then acceleration shall apply, to the extent required, to the full outstanding award. Notwithstanding accelerated distribution pursuant to the foregoing, you will remain subject to the applicable terms of your Award Agreement as if your award had remained outstanding for the duration of the original vesting period and shares had been distributed as scheduled as of each applicable vesting date, including, but not limited to, repayment obligations set forth in “Remedies” and employment restrictions in the case of “Full Career Eligibility” or “Government Office.”
Use of Personal Data:
By accepting this award, you have acknowledged that the Firm may use your personal data for purposes of (i) determining your compensation, (ii) payroll activities, including, but not limited to, tax withholding and regulatory reporting, (iii) registration of shares and units, (iv) establishing brokerage account on your behalf, and (v) all other lawful purposes related to your employment and this award and that the Firm may provide such data to third party vendors with whom it has contracted to provide such services. You may terminate this authorization at any time except with respect to tax and regulatory reporting. In such case, your award will be cancelled.
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Governing Law
: This award shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflict of law principles.
Choice of Forum
: By accepting this award, you agree that to the extent not otherwise subject to arbitration under an arbitration agreement between you and the Firm, any dispute arising directly or indirectly in connection with this award or the Plan shall be submitted to arbitration in accordance with the rules of the American Arbitration Association if so elected by the Firm in its sole discretion. In the event such a dispute is not subject to arbitration for any reason, you agree to accept the exclusive jurisdiction and venue of the United States District Court for the Southern District of New York with respect to any judicial proceeding in connection with this award or the Plan. You waive, to the fullest extent permitted by law, any objection to personal jurisdiction or to the laying of venue of such dispute and further agree not to commence any action arising out of or relating to this award or the Plan in any other forum.
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Waiver of Jury Trial/Class Claims:
By accepting this award, you agree, with respect to any claim brought in connection with your employment with the Firm in any forum (i) to waive the right to a jury trial and (ii) that any judicial proceeding or arbitration claim will be brought on an individual basis, and you hereby waive any right to submit, initiate, or participate in a representative capacity or as a plaintiff, claimant or member in a class action, collective action, or other representative or joint action.
Litigation:
By accepting any award, you agree that
in any action or proceeding by the Firm (other than a derivative suit in the right of the Firm) to enforce the terms and conditions of this Award Agreement where the Firm is the prevailing party, the Firm shall be entitled to recover from you its reasonable attorney fees and expenses incurred in such action or proceeding. In addition, you agree that you are not entitled to, and agree not to seek, advancement of attorney fees and indemnification under the Firm’s By-Laws in the event of such a suit by the Firm.
Nontransferability:
Neither this award or any other outstanding awards of restricted stock units, nor your interests or rights in any such awards, shall be assigned, pledged, transferred, hypothecated or subject to any lien. An award may be transferred following your death by will, the laws of descent or by a beneficiary designation on file with the Firm.
Outstanding Awards:
The Administrative provisions set forth above shall apply to any award of restricted stock units outstanding as of the date hereof, and such awards are hereby amended.
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Definitions
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“
Cause
” means a determination by the Firm that your employment terminated as a result of your (i) violation of any law, rule or regulation (including rules of self-regulatory bodies) related to the Firm’s business, (ii) indictment or conviction of a felony, (iii) commission of a fraudulent act, (iv) violation of the JPMorgan Code of Conduct or other Firm policies or misconduct related to your duties to the Firm (other than immaterial and inadvertent violations or misconduct), (v) grossly inadequate performance of the duties associated with your position or job function or failure to follow reasonable directives of your manager, or (vi) any act or failure to act that is injurious to the interests of the Firm or its relationship with a customer, client or an employee.
“
Financial Services Company
” means a business enterprise that employs you in any capacity (such as an employee, contractor, consultant, advisor, or self-employed individual, whether paid or unpaid) and engages in:
• commercial or retail banking, including, but not limited to, commercial, institutional and personal trust, custody and/or lending and processing services, originating and servicing mortgages, issuing and servicing credit cards,
• insurance, including but not limited to, guaranteeing against loss, harm, damage, illness, disability or death, providing and issuing annuities, acting as principal, agent or broker for purpose of the forgoing,
• financial, investment or economic advisory services, including but not limited to, investment banking services (such as advising on mergers or dispositions, underwriting, dealing in, or making a market in securities or other similar activities), brokerage services, investment management services, asset management services, and hedge funds,
• issuing, trading or selling instruments representing interests in pools of assets or in derivatives instruments,
• advising on, or investing in, private equity or real estate, or
• any similar activities that the Director of Human Resources or nominee determines in his or her sole discretion constitute financial services.
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“
Firmwide Financial Threshold
” means a Cumulative Return on Tangible Common Equity for 2015, 2016 and 2017 of not less than 15%. Cumulative Return on Tangible Common Equity means (i) the sum of the Firm’s reported net income for all three years, divided by (ii) reported year-end tangible equity averaged over the three years.
“
Government Office
” means (i) a full-time position in an elected or appointed office in local, state, or federal government (including equivalent positions outside the U.S. or in a supranational organization), not reasonably anticipated to be a full-career position, or (ii) conducting a bona fide full-time campaign for such an elective public office after formally filing for candidacy, where it is customary and reasonably necessary to campaign full-time for the office.
“
Line of Business
” means a business unit of the Firm (or one or more business units designated below under the definition “Line of Business Financial Threshold” of the Corporate & Investment Bank). All Corporate Functions (including the functions of the Chief Investment Office) are considered a single Line of Business.
“
Line of Business Financial Threshold
” means the financial threshold set forth below: for the following units:
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•
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At least 60 days’ advance written notice of your intention to resign to accept or pursue a Government Office, during which period you must perform in a cooperative and professional manner services requested by the Firm and not provide services for any other employer. The Firm may elect to shorten this notice period at the Firm’s discretion.
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•
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Confirmation, in a form satisfactory to the Firm, that vesting in this award pursuant to this provision would not violate any applicable law, regulation or rule.
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•
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Documentation in a form satisfactory to the Firm that your resignation is for the purpose of accepting a Government Office or becoming a candidate for a Government Office.
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•
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50% if you have at least 3 but less than 4 years of continuous service,
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•
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75% if you have at least 4 but less than 5 years of continuous service, or
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•
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100% if you have 5 or more years of continuous service.
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•
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You must remain in a non-elective Government Office for two or more years after your employment with the Firm terminates; or
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•
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In the case of resignation from the Firm to campaign for an elective Government Office, your name must be on the primary or final public ballot for the election. (If you are not elected, see below for employment restrictions.)
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Award Agreement
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These terms and conditions are made part of the Award Agreement dated as of January 20, 2015 (“Grant Date”) awarding restricted stock units pursuant to the terms of the JPMorgan Chase & Co. Long-Term Incentive Plan (“Plan”). To the extent the terms of the Award Agreement (all references to which will include these terms and conditions) conflict with the Plan, the Plan will govern. The Award Agreement, the Plan and Prospectus supersede any other agreement, whether written or oral, that may have been entered into by the Firm and you relating to this award.
This award was granted on the Grant Date subject to the Award Agreement.
Unless you decline by the deadline and in the manner specified in the Award Agreement, you will have agreed to be bound by these terms and conditions, effective as of the Grant Date.
If you decline the award, it will be cancelled as of the Grant Date.
Capitalized terms that are not defined in “
Definitions
” below or elsewhere in the Award Agreement will have the same meaning as set forth in the Plan.
JPMorgan Chase & Co. will be referred to throughout the Award Agreement as “JPMorgan Chase,” and together with its subsidiaries as the “Firm.”
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Form and Purpose of Award
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Each restricted stock unit represents a non-transferable right to require JPMorgan Chase to transfer one share of Common Stock or (at JPMorgan Chase’s option) to pay the amount of the Fair Market Value thereof following the applicable vesting date as set forth in your Award Agreement. Such transfer or payment is hereinafter referred to as a “distribution” and words to a similar effect, such as distributed, should be construed accordingly. Whether the distribution is made in Common Stock or in cash shall be determined by the Firm and if not so determined before the time of the actual distribution shall be made in Common Stock. To the extent which a payment is made not in Common Stock but in cash, the amount of such cash shall be the Fair Market Value of the Common Stock not transferred, calculated at the applicable vesting date.
The purpose of this award is to motivate your future performance for services to be provided during the vesting period and to align your interests with those of the Firm and its shareholders.
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Dividend Equivalents
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If dividends are paid on Common Stock while restricted stock units under this award are outstanding, you will be paid an amount equal to the dividend paid on one share of Common Stock, multiplied by the number of restricted stock units outstanding under this award.
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Protection-Based Vesting
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This award is intended and expected to vest on the applicable vesting date, provided that you are continuously employed by the Firm through such vesting date, or you meet the requirements for continued vesting described under the subsections “–Job Elimination,” “–Full Career Eligibility,” “–Government Office” or “–Disability.” However, vesting is subject to these terms and conditions (including, but not limited to, sections captioned “
Recapture Provisions
” and “Remedies” and the following protection-based vesting provisions).
Up to a total of fifty percent of your award (“At Risk restricted stock units”) may be cancelled under (i) and (ii):
(i) The Chief Executive Officer of JPMorgan Chase (“CEO”) determines in his or her sole discretion that cancellation of all
or portion of the At Risk restricted stock units is appropriate in light of any one or a combination of the following factors:
• Your performance in relation to the priorities for your position, or the Firm’s performance in relation to the priorities for which you share responsibility as a member of the Operating Committee, have been unsatisfactory for a sustained period of time. Among the factors the CEO may consider in assessing performance are net income, net revenue, return on equity, earnings per share and capital ratios of the Firm, both on an absolute basis and, as appropriate, relative to peer firms.
• For any calendar year ending during the vesting period, JPMorgan Chase’s annual pre-provision net income reported at the Firm level is negative.
• Awards granted to participants in a Line of Business, for which you exercise, or during the vesting period exercised, direct or indirect responsibility, were in whole or in part cancelled because the Line of Business did not meet its annual Line of Business Financial Threshold.
(ii) To the extent that the full number of At Risk restricted stock units have not been cancelled pursuant to the circumstances described in (i) above, then any remaining At Risk restricted stock units scheduled to vest on January 13, 2018 will be cancelled if, for the three calendar years preceding that date, the Firm does not meet the Firmwide Financial Threshold, unless the CEO determines in his or her sole discretion that it is appropriate that some or all of such At Risk restricted stock units should vest with respect to a particular individual or individuals due to extraordinary circumstances.
In the event that your employment terminates due to “Job Elimination,” ”Full Career Eligibility,” Government Office” or “Disability” entitling you to continued vesting in your award, the cancellation circumstances described in (i) and (ii) above will continue to apply to your At Risk restricted stock units.
Any determination above with respect to protection-based vesting provisions is subject to ratification by the Compensation and Management Development Committee of the Board of Directors of JPMorgan Chase (“Committee”). In the case of an award to the CEO, all such determinations shall be made by the Committee.
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Vesting Period
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The period from the Grant Date to the last vesting date is the “vesting period.” (See “Administrative Provision–Amendment” pursuant to which the Firm may extend the vesting period and “No Ownership Rights” pursuant to which the Firm may place restrictions on delivered shares of Common Stock following a vesting date.)
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Holding Requirement
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As of each vesting date, you shall be entitled to a distribution equal to the Fair Market Value of the number of restricted stock units vesting on such date, less the number being withheld to satisfy tax withholding obligations. You agree that the distribution made to you will be held in an account in your name with restrictions preventing you from transferring, assigning, selling, pledging or otherwise encumbering such distribution for a six month period commencing with the vesting date. Such restrictions shall lapse in event of your death.
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Bonus Recoupment
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In consideration of the grant of this award, you agree that you are subject to the JPMorgan Chase Bonus Recoupment Policy or successor policy as in effect from time to time
as it applies both to the cash incentive compensation awarded to you for performance year 2014 and to this award. You can access this policy as currently in effect through the following link:
For the avoidance of doubt, nothing in these terms and conditions in any way limits the rights of the Firm under the JPMorgan Chase Bonus Recoupment Policy (or successor policy).
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UK Clawback Policy for Identified Staff
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In consideration of grant of this award, and without prejudice to any other provision of this Award Agreement, you agree that you are subject to the JPMorgan Chase Clawback Policy for Identified Staff or successor policy as in effect from time to time as it applies both to the cash incentive compensation awarded to you for performance year 2014 and to this award. You can access this policy as currently in effect in My Rewards through the following link: [redacted]
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Government Office
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Government Office:
In the event that you voluntarily terminate your employment with the Firm to accept a Government Office or become a candidate for an elective Government Office, as described at the end of these terms and conditions under the section captioned “
Government Office
.”
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Disability
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Disability
:
In the event that
• your employment with the Firm terminates because (i) you are unable to return to work while you are receiving benefits under the JPMorgan Chase Long Term Disability Plan, or for non-U.S. employees, under the equivalent JPMorgan Chase-sponsored local country plan (in either case, “LTD Plan”), or (ii) if you are not covered by a LTD Plan, you are unable to return to work due to a long-term disability that would qualify for benefits under the applicable LTD Plan, as determined by the Firm or a third-party designated by the Firm; provided that you (x) request in writing continued vesting due to such disability within 30 days of the date your employment terminates, and (y) provide any requested supporting documentation and (z) receive the Firm’s written consent to such treatment,
and
• you satisfy the Release/Certification Requirements set forth below.
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Release/
Certification
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To qualify for continued vesting after termination of your employment under any of the foregoing circumstances:
• you must timely execute and deliver a release of claims in favor of the Firm, having such form and terms as the Firm shall specify,
• with respect to Full Career Eligibility, prior to the termination of your employment, you must confirm with management that you meet the eligibility criteria (including providing at least 90 days advance written notification), advise
that you are seeking to be treated as an individual eligible for Full Career Eligibility, and receive written consent to such continued vesting,
• with respect to Disability, you must satisfy the notice and documentation described above and receive written consent to such continued vesting,
and
• except in the case of a Job Elimination, it is your responsibility to take the appropriate steps to certify to the Firm prior to each vesting date on the authorized form of the Firm that you have complied with the employment restrictions applicable to you (as described herein) from your date of termination of employment through the applicable vesting date and in all cases, otherwise complied with all other terms of the Award Agreement. (See “
Your Obligations
” below.)
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Death
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If you die while you are eligible to vest in restricted stock units under this award, the restricted stock units will immediately vest and will be distributed
in shares of Common Stock (after applicable tax withholding) to your designated beneficiary on file with the Firm’s Stock Administration Department, or if no beneficiary has been designated or survives you, then to your estate. Any shares will be distributed by the later of the end of the calendar year in which you die or the 15
th
day of the third month following your date of death.
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Your Obligations
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In consideration of the grant of this award, you agree to comply with and be bound by the obligations set forth below next to the subsections captioned “–Non-Solicitation of Employees and Customers,” “–Confidential Information,” “–Non-Disparagement,” “–Cooperation,” “–Compliance with Award Agreement,” and “–Notice Period.”
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Non-Solicitation of Employees and Customers
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During your employment by the Firm and for one year following the termination of your employment, or if longer, during the vesting period, if you continue to vest after your employment with the Firm terminates, you will not directly or indirectly, whether on your own behalf or on behalf of any other party, without the prior written consent of the Director of Human Resources: (i) solicit, induce or encourage any of the Firm’s then current employees to leave the Firm or to apply for employment elsewhere, (ii) hire any employee or former employee who was employed by the Firm at the date your employment terminated, unless the individual’s employment terminated because his or her job was eliminated, or the individual’s employment with the Firm has been terminated for more than six months, (iii) to the fullest extent enforceable under applicable law, solicit or induce or attempt to induce to leave the Firm, or divert or attempt to divert from doing business with the Firm, any then current customers, suppliers or other persons or entities that were serviced by you or whose names became known to you by virtue of your employment with the Firm, or otherwise interfere with the relationship between the Firm and such customers, suppliers or other persons or entities. This does not apply to publicly known institutional customers that you service after your employment with the Firm without the use of the Firm’s confidential or proprietary information.
These restrictions do not apply to authorized actions you take in the normal course of your employment with the Firm, such as employment decisions with respect to employees you supervise or business referrals in accordance with the Firm’s policies.
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Recovery
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In addition, you may be required to pay the Firm up to an amount equal to the Fair Market Value (determined as of the applicable vesting date) of the gross number of shares of Common Stock (or cash in lieu of shares) previously distributed under this award as follows:
•
Payment may be required with respect to any shares or cash distributed within three years prior to a notice-of-recovery under this section
, if the Firm in its sole discretion determines that:
o you committed a fraudulent act, or engaged in knowing and willful misconduct related to your employment;
o you violated any of the provisions as set forth above in the section captioned “
Your Obligations
”, or
o you violated the employment restrictions set forth in the subsection Full Career Eligibility following the termination of your employment.
•
In addition, payment may be required with respect to any shares or cash distributed within one year prior to notice-of-recovery under this section
, if the Firm in its sole discretion determines appropriate pursuant to the provisions in the section above captioned “
Recapture Provisions
.”
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Notice-of-recovery under this section is a written (including electronic) notice from the Firm to you either requiring payment under this section or stating that JPMorgan Chase is evaluating requiring payment under this section. Without limiting the foregoing, notice-of-recovery will be deemed provided if the Firm makes a good faith attempt to provide written (including electronic) notice at your last known address maintained in the Firm’s employment records. For the avoidance of doubt, a notice-of-recovery that the Firm is evaluating requiring payment under this section shall preserve JPMorgan Chase’s rights to require payment as set forth above in all respects and the Firm shall be under no obligation to complete its evaluation other than as the Firm may determine in its sole discretion.
For purposes of this section, shares or cash distributed under this award include shares or other amounts withheld for tax purposes. However, it is the Firm’s intention that you only be required to pay the amounts under this section with respect to shares or cash that are or may be retained by you following a determination of tax liability and that you will not be required to pay amounts with respect to shares or other amounts representing irrevocable tax withholdings or tax payments previously made (whether by you or the Firm) that you will not be able to recover, recapture or reclaim (including as a tax credit, refund or other benefit). Accordingly, JPMorgan Chase will not require you to pay any amount that the Firm or its nominee in his or her sole discretion determines is represented by such withholdings or tax payments.
Payment may be made in shares of Common Stock (if shares are distributed) or in cash. You agree that this repayment will be a recovery of a distribution to which you were not entitled under the terms and conditions of your Award Agreement and is not to be construed in any manner as a penalty. You also acknowledge that a violation or attempted violation of the obligations set forth herein will cause immediate and irreparable damage to the Firm, and therefore agree that the Firm shall be entitled as a matter of right to an injunction, from any court of competent jurisdiction, restraining any violation or further violation of such obligations; such right to an injunction, however, shall be cumulative and in addition to whatever other remedies the Firm may have under law or equity.
Nothing in the section in any way limits your obligations under “Bonus Recoupment” and “UK Clawback Policy for Identified Staff.”
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Administrative Provisions
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Withholding Taxes:
The Firm, in its sole discretion, may (i) retain from each distribution the amount required to satisfy applicable tax obligations (including, to the extent legally permissible, recovery by the Firm of fringe benefit taxes) or (ii) implement any other desirable or necessary procedures, so that appropriate withholding and other taxes are paid to the competent authorities with respect to the distribution, dividend equivalents and the award. This may include but is not limited to (i) a market sale of a number of such shares on your behalf substantially equal to the withholding or other taxes, (ii) to the extent required by law, withhold from cash compensation, an amount equal to any withholding obligation with respect to the award, the distribution, and/or dividend equivalents, and (iii) retaining vested shares, vested cash or dividend equivalents until you pay any taxes associated with the award, the distribution, vested cash and/or the dividend equivalents directly to the competent authorities. For United States tax purposes, dividend equivalents are treated as wages and subject to tax withholding when paid.
Right to Set Off:
The Firm may, to the maximum extent permitted by applicable law (including Section 409A of the Code), retain for itself funds or the Common Stock resulting from any vesting of this award to satisfy any obligation or debt that you owe to the Firm. Notwithstanding any account agreement with the Firm to the contrary, the Firm will not recoup or recover any amount owed from any funds or unrestricted securities held in your name and maintained at the Firm pursuant to such account agreement to satisfy any obligation or debt or obligation owed by you under this award without your consent. This restriction on the Firm does not apply to accounts described and authorized in “No Ownership Rights” described below.
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No Ownership Rights
: Restricted stock units do not convey the rights of ownership of Common Stock and do not carry voting rights. No distribution will be made to you until after the restricted stock units have vested and any applicable restrictions have lapsed. Shares will be issued in accordance with JPMorgan Chase’s procedures for issuing stock. By accepting this award, you authorize the Firm, in its discretion, to establish on your behalf a brokerage account in your name with the Firm and deliver to that brokerage account any vested shares derived from the award and, for avoidance of doubt, you further agree that it shall apply to prior unvested awards.
Binding Agreement
: The Award Agreement will be binding upon any successor in interest to JPMorgan Chase, by merger or otherwise.
Not a Contract of Employment
: Nothing contained in the Award Agreement constitutes a contract of employment or continued employment. Employment is “at-will” and may be terminated by either you or JPMorgan Chase for any reason at any time. This award does not confer any right or entitlement to, nor does the award impose any obligation on the Firm to provide, the same or any similar award in the future and its value is not compensation for purposes of determining severance.
Section 409A Compliance
: To the extent that Section 409A of the Code is applicable to this award, distributions of shares and cash hereunder are intended to comply with Section 409A of the Code, and the Award Agreement, including these terms and conditions, shall be interpreted in a manner consistent with such intent.
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Notwithstanding anything herein to the contrary, if you (i) are subject to taxation under the Code, (ii) are a specified employee as defined in the JPMorgan Chase 2005 Deferred Compensation Plan and (iii) have incurred a separation from service (as defined in that Plan) and if any distribution under this award represents deferred compensation as defined in Section 409A and such amounts are distributable to you as a result of your separation from service, then those amounts will be delivered to you on first business day of the first calendar month after the expiration of six full months from date of your separation from service. Further, if your award is not subject to a substantial risk of forfeiture as defined by regulations issued under Section 409A of the Code, then the remainder of each calendar year immediately following (i) each vesting date shall be a payment date for purposes of distributing the vested
portion of the award and (ii) each date that JPMorgan Chase specifies for payment of dividends declared on its Common Stock, shall be the payment date(s) for purposes of distributing dividend equivalent payments.
Change in Outstanding Shares
: In the event of any change in the outstanding shares of Common Stock by reason of any stock dividend or split, recapitalization, issuance of a new class of common stock, merger, consolidation, spin-off, combination or exchange of shares or other similar corporate change, or any distributions to stockholders of Common Stock other than regular cash dividends, the Committee will make an equitable substitution or proportionate adjustment, in the number or kind of shares of Common Stock or other securities issued or reserved for issuance pursuant to the Plan and to any restricted stock units outstanding under this award for such corporate events.
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Interpretation/Administration
: The Committee has sole and complete authority to interpret and administer this Award Agreement, including, without limitation, the power to (i) interpret the Plan and the terms of this Award Agreement; (ii) determine the reason for termination of employment; (iii) determine application of the post-employment obligations and cancellation and recovery provisions; (iv) decide all claims arising with respect to this award; and (v) delegate such authority as it deems appropriate. Any determination contemplated hereunder by the Committee, the Firm, the Director of Human Resources or their respective delegates or nominees shall be binding on all parties.
Notwithstanding anything herein to the contrary, the determinations of the Director of Human Resources, the Firm, the Committee and their respective delegates and nominees under the Plan and the Award Agreements are not required to be uniform. By way of clarification, the Committee, the Firm, the Director of Human Resources and their respective delegates and nominees shall be entitled to make non-uniform and selective determinations and modifications under Award Agreements and the Plan.
Amendment
: The Committee or its nominee reserves the right to amend this Award Agreement in any manner, at any time and for any reason; provided, however, that no such amendment shall materially adversely affect your rights under this Award Agreement without your consent except to the extent that the Committee or its delegate considers advisable to (x) comply with applicable laws or changes in or interpretation of applicable laws, regulatory requirements and accounting rules or standards and/or (y) make a change in a scheduled vesting date or impose the restrictions described above under “No Ownership Rights,” in either case, to the extent permitted by Section 409A of the Code. This Award Agreement may not be amended except in writing signed by the Director of Human Resources of JPMorgan Chase.
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Severability
: If any portion of the Award Agreement is determined by the Firm to be unenforceable in any jurisdiction, any court or arbitrator of competent jurisdiction or the Director of Human Resources may reform the relevant provisions (e.g., as to length of service, time, geographical area or scope) to the extent the Firm (or court/arbitrator) considers necessary to make the provision enforceable under applicable law.
Accelerated Distribution for Ethics or Conflict Reasons Resulting From Employment by a Government Entity
: Upon receipt of satisfactory evidence that applicable United States federal, state, local, foreign or supranational ethics or conflict of interest laws or regulations require you to divest your interest in JPMorgan Chase restricted stock units, the Firm may accelerate the distribution of all or part of your outstanding award effective on or before the required divesture date; provided that no accelerated distribution shall occur if the Firm determines that such acceleration will violate Section 409A of the Code. If you have voluntarily terminated your employment and have satisfied the requirements of the “Government Office” section of this award, acceleration shall apply (to extent required) to the percentage of your outstanding award that would continue to vest under that section. In the case of a termination of employment where the award is outstanding as a result of “Job Elimination” or “Full Career Eligibility”, then acceleration shall apply, to the extent required, to the full outstanding award. Notwithstanding accelerated distribution pursuant to the foregoing, you will remain subject to the applicable terms of your Award Agreement as if your award had remained outstanding for the duration of the original vesting period and shares had been distributed as scheduled as of each applicable vesting date, including, but not limited to, repayment obligations set forth in “Remedies” and employment restrictions in the case of “Full Career Eligibility” or “Government Office.”
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Use of Personal Data:
By accepting this award, you have acknowledged that the Firm may use your personal data for purposes of (i) determining your compensation, (ii) payroll activities, including, but not limited to, tax withholding and regulatory reporting, (iii) registration of shares and units, (iv) establishing brokerage account on your behalf, and (v) all other lawful purposes related to your employment and this award and that the Firm may provide such data to third party vendors with whom it has contracted to provide such services. You may terminate this authorization at any time except with respect to tax and regulatory reporting. In such case, your award will be cancelled.
Governing Law
: This award shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflict of law principles.
Choice of Forum
: By accepting this award, you agree that to the extent not otherwise subject to arbitration under an arbitration agreement between you and the Firm, any dispute arising directly or indirectly in connection with this award or the Plan shall be submitted to arbitration in accordance with the rules of the American Arbitration Association if so elected by the Firm in its sole discretion. In the event such a dispute is not subject to arbitration for any reason, you agree to accept the exclusive jurisdiction and venue of the United States District Court for the Southern District of New York with respect to any judicial proceeding in connection with this award or the Plan. You waive, to the fullest extent permitted by law, any objection to personal jurisdiction or to the laying of venue of such dispute and further agree not to commence any action arising out of or relating to this award or the Plan in any other forum.
Waiver of Jury Trial/Class Claims:
By accepting this award, you agree, with respect to any claim brought in connection with your employment with the Firm in any forum (i) to waive the right to a jury trial and (ii) that any judicial proceeding or arbitration claim will be brought on an individual basis, and you hereby waive any right to submit, initiate, or participate in a representative capacity or as a plaintiff, claimant or member in a class action, collective action, or other representative or joint action.
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Litigation:
By accepting any award, you agree that
in any action or proceeding by the Firm (other than a derivative suit in the right of the Firm) to enforce the terms and conditions of this Award Agreement where the Firm is the prevailing party, the Firm shall be entitled to recover from you its reasonable attorney fees and expenses incurred in such action or proceeding. In addition, you agree that you are not entitled to, and agree not to seek, advancement of attorney fees and indemnification under the Firm’s By-Laws in the event of such a suit by the Firm.
Nontransferability:
Neither this award or any other outstanding awards of restricted stock units, nor your interests or rights in any such awards, shall be assigned, pledged, transferred, hypothecated or subject to any lien. An award may be transferred following your death by will, the laws of descent or by a beneficiary designation on file with the Firm.
Outstanding Awards:
The Administrative provisions set forth above shall apply to any award of restricted stock units outstanding as of the date hereof, and such awards are hereby amended.
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Definitions
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“
Cause
” means a determination by the Firm that your employment terminated as a result of your (i) violation of any law, rule or regulation (including rules of self-regulatory bodies) related to the Firm’s business, (ii) indictment or conviction of a felony, (iii) commission of a fraudulent act, (iv) violation of the JPMorgan Code of Conduct or other Firm policies or misconduct related to your duties to the Firm (other than immaterial and inadvertent violations or misconduct), (v) grossly inadequate performance of the duties associated with your position or job function or failure to follow reasonable directives of your manager, or (vi) any act or failure to act that is injurious to the interests of the Firm or its relationship with a customer, client or an employee.
“
Financial Services Company
” means a business enterprise that employs you in any capacity (such as an employee, contractor, consultant, advisor, or self-employed individual, whether paid or unpaid) and engages in:
• commercial or retail banking, including, but not limited to, commercial, institutional and personal trust, custody and/or lending and processing services, originating and servicing mortgages, issuing and servicing credit cards,
• insurance, including but not limited to, guaranteeing against loss, harm, damage, illness, disability or death, providing and issuing annuities, acting as principal, agent or broker for purpose of the forgoing,
• financial, investment or economic advisory services, including but not limited to, investment banking services (such as advising on mergers or dispositions, underwriting, dealing in, or making a market in securities or other similar activities), brokerage services, investment management services, asset management services, and hedge funds,
• issuing, trading or selling instruments representing interests in pools of assets or in derivatives instruments,
• advising on, or investing in, private equity or real estate, or
• any similar activities that the Director of Human Resources or nominee determines in his or her sole discretion constitute financial services.
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“
Firmwide Financial Threshold
” means a Cumulative Return on Tangible Common Equity for 2015, 2016 and 2017 of not less than 15%. Cumulative Return on Tangible Common Equity means (i) the sum of the Firm’s reported net income for all three years, divided by (ii) reported year-end tangible equity averaged over the three years.
“
Government Office
” means (i) a full-time position in an elected or appointed office in local, state, or federal government (including equivalent positions outside the U.S. or in a supranational organization), not reasonably anticipated to be a full-career position, or (ii) conducting a bona fide full-time campaign for such an elective public office after formally filing for candidacy, where it is customary and reasonably necessary to campaign full-time for the office.
“
Line of Business
” means a business unit of the Firm (or one or more business units designated below under the definition “Line of Business Financial Threshold” of the Corporate & Investment Bank). All Corporate Functions (including the functions of the Chief Investment Office) are considered a single Line of Business.
“
Line of Business Financial Threshold
” means the financial threshold set forth below: for the following units:.
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“Not-for-Profit Organization”
means an entity exempt from tax under state law and under Section 501(c)(3) of the Code. Section 501(c)(3) only includes entities organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, or to foster national or international amateur sports competition or for the prevention of cruelty to children or animals.
“Recognized Service”
means the period of service as an employee set forth in the Firm’s applicable service-related policies.
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•
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At least 60 days’ advance written notice of your intention to resign to accept or pursue a Government Office, during which period you must perform in a cooperative and professional manner services requested by the Firm and not provide services for any other employer. The Firm may elect to shorten this notice period at the Firm’s discretion.
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•
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Confirmation, in a form satisfactory to the Firm, that vesting in this award pursuant to this provision would not violate any applicable law, regulation or rule.
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•
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Documentation in a form satisfactory to the Firm that your resignation is for the purpose of accepting a Government Office or becoming a candidate for a Government Office.
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•
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50% if you have at least 3 but less than 4 years of continuous service,
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•
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75% if you have at least 4 but less than 5 years of continuous service, or
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•
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100% if you have 5 or more years of continuous service.
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•
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You must remain in a non-elective Government Office for two or more years after your employment with the Firm terminates; or
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•
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In the case of resignation from the Firm to campaign for an elective Government Office, your name must be on the primary or final public ballot for the election. (If you are not elected, see below for employment restrictions.)
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1.
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I have reviewed this quarterly report on Form 10-Q of JPMorgan Chase & Co.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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1.
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I have reviewed this quarterly report on Form 10-Q of JPMorgan Chase & Co.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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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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May 5, 2015
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By:
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/s/
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James Dimon
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James Dimon
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Chairman and Chief Executive Officer
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Date:
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May 5, 2015
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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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