For the fiscal year ended
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Commission file
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December 31, 2015
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number 1-5805
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Delaware
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13-2624428
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. employer
identification no.)
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270 Park Avenue, New York, New York
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10017
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(Address of principal executive offices)
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(Zip code)
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Title of each class
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Name of each exchange on which registered
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Common stock
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The New York Stock Exchange
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The London Stock Exchange
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Warrants, each to purchase one share of Common Stock
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The New York Stock Exchange
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Depositary Shares, each representing a one-four hundredth interest in a share of 5.50% Non-Cumulative Preferred Stock, Series O
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The New York Stock Exchange
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Depositary Shares, each representing a one-four hundredth interest in a share of 5.45% Non-Cumulative Preferred Stock, Series P
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The New York Stock Exchange
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Depositary Shares, each representing a one-four hundredth interest in a share of 6.70% Non-Cumulative Preferred Stock, Series T
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The New York Stock Exchange
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Depositary Shares, each representing a one-four hundredth interest in a share of 6.30% Non-Cumulative Preferred Stock, Series W
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The New York Stock Exchange
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Depositary Shares, each representing a one-four hundredth interest in a share of 6.125% Non-Cumulative Preferred Stock, Series Y
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The New York Stock Exchange
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Depositary Shares, each representing a one-four hundredth interest in a share of 6.10% Non-Cumulative Preferred Stock, Series AA
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The New York Stock Exchange
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Depositary Shares, each representing a one-four hundredth interest in a share of 6.15% Non-Cumulative Preferred Stock, Series BB
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The New York Stock Exchange
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Alerian MLP Index ETNs due May 24, 2024
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NYSE Arca, Inc.
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x
Large accelerated filer
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o
Accelerated filer
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o
Non-accelerated filer
(Do not check if a smaller reporting company)
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o
Smaller reporting company
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Page
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1
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1
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1
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316–320
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66, 309, 316
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321
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112–129, 242–261,
322–327 |
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130–132, 262–265,
328–329 |
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278,330
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331
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8–18
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18
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19
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19
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19
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20
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20
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20
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23
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23
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23
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23
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24–27
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1
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2
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3
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4
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5
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6
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7
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8
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9
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10
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11
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12
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13
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14
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15
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16
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17
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18
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December 31, 2015
(in millions)
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Approximate square footage
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United States
(a)
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New York City, New York
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270 Park Ave, New York, New York
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1.3
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All other New York City locations
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9.0
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Total New York City, New York
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10.3
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Other U.S. locations
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Columbus/Westerville, Ohio
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3.7
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Chicago, Illinois
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3.4
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Wilmington/Newark, Delaware
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2.2
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Houston, Texas
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2.2
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Dallas/Fort Worth, Texas
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2.0
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Phoenix/Tempe, Arizona
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1.8
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Jersey City, New Jersey
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1.6
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All other U.S. locations
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37.1
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Total United States
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64.3
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Europe, the Middle East and Africa (“EMEA”)
(b)
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25 Bank Street, London, U.K.
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1.4
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All other U.K. locations
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3.2
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All other EMEA locations
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0.9
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Total EMEA
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5.5
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Asia Pacific, Latin America and Canada
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India
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2.3
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All other locations
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3.9
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Total Asia Pacific, Latin America and Canada
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6.2
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Total
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76.0
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(a)
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At December 31, 2015, the Firm owned or leased 5,413 retail branches in 23 states.
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(b)
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In 2008, JPMorgan Chase acquired a 999-year leasehold interest in land at London’s Canary Wharf. JPMorgan Chase has a building agreement in place through October 30, 2016, to develop the Canary Wharf site for future use.
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19
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Year ended December 31, 2015
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Total shares of common stock repurchased
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Average price paid per share of common stock
(b)
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Aggregate repurchases of common equity (in millions)
(b)
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Dollar value
of remaining
authorized
repurchase
(in millions)
(b)
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|||||||
First quarter
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32,531,294
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$
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58.40
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$
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1,900
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$
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1,984
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(a)
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Second quarter
(a)
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19,129,714
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65.32
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1,249
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5,180
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Third quarter
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19,100,389
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65.30
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1,248
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3,932
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October
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9,247,060
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61.42
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567
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3,365
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November
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4,511,071
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66.44
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300
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3,065
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December
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5,321,146
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66.12
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352
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2,713
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Fourth quarter
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19,079,277
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63.92
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1,219
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2,713
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Year-to-date
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89,840,674
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$
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62.51
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$
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5,616
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$
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2,713
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(c)
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(a)
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The unused portion under the prior Board authorization was canceled when the $6.4 billion program was authorized. Repurchases during the second quarter included $29 million under the prior program.
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(b)
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Excludes commissions cost.
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(c)
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Dollar value remaining under the $6.4 billion program.
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20
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21
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Age
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Name
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(at December 31, 2015)
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Positions and offices
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James Dimon
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59
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Chairman of the Board, Chief Executive Officer and President.
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Ashley Bacon
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46
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Chief Risk Officer since June 2013. He had been Deputy Chief Risk Officer since June 2012, prior to which he had been Global Head of Market Risk for the Investment Bank (now part of Corporate & Investment Bank).
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Stephen M. Cutler
(a)
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54
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Vice Chairman since January 1, 2016, prior to which he had been General Counsel.
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John L. Donnelly
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59
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Head of Human Resources.
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Mary Callahan Erdoes
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48
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Chief Executive Officer of Asset Management.
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Stacey Friedman
(a)
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47
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General Counsel since January 1, 2016, prior to which she was Deputy General Counsel since July 2015 and General Counsel for the Corporate & Investment Bank since August 2012. Prior to joining JPMorgan Chase in 2012, she was a partner at the law firm of Sullivan & Cromwell LLP.
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Marianne Lake
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46
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Chief Financial Officer since January 1, 2013, prior to which she had been Chief Financial Officer of Consumer & Community Banking since 2009.
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Douglas B. Petno
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50
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Chief Executive Officer of Commercial Banking since January 2012. He had been Chief Operating Officer of Commercial Banking since October 2010, prior to which he had been Global Head of Natural Resources in the Investment Bank (now part of Corporate & Investment Bank).
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Daniel E. Pinto
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53
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Chief Executive Officer of the Corporate & Investment Bank since March 2014 and Chief Executive Officer of Europe, the Middle East and Africa since June 2011. He had been Co-Chief Executive Officer of the Corporate & Investment Bank from July 2012 until March 2014, prior to which he had been head or co-head of the Global Fixed Income business from November 2009 until July 2012.
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Gordon A. Smith
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57
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Chief Executive Officer of Consumer & Community Banking since December 2012 prior to which he had been Co-Chief Executive Officer since July 2012. He had been Chief Executive Officer of Card Services since 2007 and of the Auto Finance and Student Lending businesses since 2011.
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Matthew E. Zames
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45
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Chief Operating Officer since April 2013 and head of Mortgage Banking Capital Markets since January 2012. He had been Co-Chief Operating Officer from July 2012 until April 2013. He had been Chief Investment Officer from May until September 2012, co-head of the Global Fixed Income business from November 2009 until May 2012 and co-head of Mortgage Banking Capital Markets from July 2011 until January 2012, prior to which he had served in a number of senior Investment Banking Fixed Income management roles.
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22
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December 31, 2015
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Number of shares to be issued upon exercise of outstanding options/stock appreciation rights
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Weighted-average
exercise price of
outstanding
options/stock appreciation rights
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Number of shares remaining available for future issuance under stock compensation plans
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Plan category
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Employee stock-based incentive plans approved by shareholders
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43,466,314
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$
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43.51
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93,491,401
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(a)
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Total
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43,466,314
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$
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43.51
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93,491,401
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(a)
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Represents future shares available under the shareholder-approved Long-Term Incentive Plan, as amended and restated effective May 19, 2015.
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23
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1
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Financial statements
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The Consolidated Financial Statements, the Notes thereto and the report of the Independent Registered Public Accounting Firm thereon listed in Item 8 are set forth commencing on page 176.
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2
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Financial statement schedules
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3
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Exhibits
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3.1
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Restated Certificate of Incorporation of JPMorgan Chase & Co., effective April 5, 2006 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed April 7, 2006).
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3.2
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Amendment to the Restated Certificate of Incorporation of JPMorgan Chase & Co., effective June 7, 2013 (incorporated by reference to Appendix F to the Proxy Statement on Schedule 14A of JPMorgan Chase & Co. (File No. 1-5805) filed April 10, 2013).
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3.3
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Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series I (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed April 24, 2008).
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3.4
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Certificate of Designations for 5.50% Non-Cumulative Preferred Stock, Series O (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed August 27, 2012).
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3.5
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Certificate of Designations for 5.45% Non-Cumulative Preferred Stock, Series P (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed February 5, 2013).
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3.6
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Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series Q (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed April 23, 2013).
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3.7
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Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series R (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed July 29, 2013).
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3.8
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Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series S (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed January 22, 2014).
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3.9
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Certificate of Designations for 6.70% Non-Cumulative Preferred Stock, Series T (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed January 30, 2014).
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3.10
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Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series U (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed on March 10, 2014).
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3.11
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Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series V (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed on June 9, 2014).
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3.12
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Certificate of Designations for 6.30% Non-Cumulative Preferred Stock, Series W (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed on June 23, 2014).
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3.13
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Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series X (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed on September 23, 2014).
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3.14
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Certificate of Designations for 6.125% Non-Cumulative Preferred Stock, Series Y (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed February 17, 2015).
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3.15
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Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series Z (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed April 21, 2015).
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3.16
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Certificate of Designations for 6.10% Non-Cumulative Preferred Stock, Series AA (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed June 4, 2015).
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3.17
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Certificate of Designations for 6.15% Non-Cumulative Preferred Stock, Series BB (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed July 29, 2015).
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24
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10.3
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2005 Deferred Compensation Program of JPMorgan Chase & Co., restated effective as of December 31, 2008 (incorporated by reference to Exhibit 10.4 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2008).
(a)
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10.4
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JPMorgan Chase & Co. Long-Term Incentive Plan as amended and restated effective May 19, 2015 (incorporated by reference to Appendix C of the Schedule 14A of JPMorgan Chase & Co. (File No. 1-5805) filed April 8, 2015).
(a)
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10.5
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Key Executive Performance Plan of JPMorgan Chase & Co., as amended and restated effective January 1, 2014 (incorporated by reference to Appendix G of the Schedule 14A of JPMorgan Chase & Co. (File No. 1-5805) filed April 10, 2013).
(a)
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10.6
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Excess Retirement Plan of JPMorgan Chase & Co., restated and amended as of December 31, 2008, as amended (incorporated by reference to Exhibit 10.7 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2009).
(a)
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10.7
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1995 Stock Incentive Plan of J.P. Morgan & Co. Incorporated and Affiliated Companies, as amended, dated December 11, 1996 (incorporated by reference to Exhibit 10.8 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2008).
(a)
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10.8
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Executive Retirement Plan of JPMorgan Chase & Co., as amended and restated December 31, 2008 (incorporated by reference to Exhibit 10.9 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2008).
(a)
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10.9
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Bank One Corporation Stock Performance Plan, as amended and restated effective February 20, 2001 (incorporated by reference to Exhibit 10.12 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2008).
(a)
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10.10
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Bank One Corporation Supplemental Savings and Investment Plan, as amended and restated effective December 31, 2008 (incorporated by reference to Exhibit 10.13 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2008).
(a)
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10.11
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Banc One Corporation Revised and Restated 1995 Stock Incentive Plan, effective April 17, 1995 (incorporated by reference to Exhibit 10.15 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2008).
(a)
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25
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10.12
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Form of JPMorgan Chase & Co. Long-Term Incentive Plan Award Agreement of January 22, 2008 stock appreciation rights (incorporated by reference to Exhibit 10.25 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2007).
(a)
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10.13
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Form of JPMorgan Chase & Co. Long-Term Incentive Plan Award Agreement of January 22, 2008 stock appreciation rights for James Dimon (incorporated by reference to Exhibit 10.27 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2007).
(a)
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10.14
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Form of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for stock appreciation rights, dated as of January 20, 2009 (incorporated by reference to Exhibit 10.20 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2008).
(a)
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10.15
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Form of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for Operating Committee member stock appreciation rights, dated as of January 20, 2009 (incorporated by reference to Exhibit 10.21 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2008).
(a)
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10.16
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Form of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for Operating Committee member stock appreciation rights, dated as of February 3, 2010 (incorporated by reference to Exhibit 10.23 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2009).
(a)
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10.17
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Forms of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for stock appreciation rights and restricted stock units, dated as of January 18, 2012 (incorporated by reference to Exhibit 10.25 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2011).
(a)
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10.18
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Forms of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for stock appreciation rights and restricted stock units for Operating Committee members, dated as of January 17, 2013 (incorporated by reference to Exhibit 10.23 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2012).
(a)
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10.19
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Form of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for restricted stock units for Operating Committee members, dated as of January 22, 2014 (incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q of JPMorgan Chase & Co. (File No. 1-5805) for the quarter ended March 31, 2014).
(a)
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10.20
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Forms of JPMorgan Chase & Co. 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 (incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q of JPMorgan Chase & Co. (File No. 1-5805) for the quarter ended March 31, 2015).
(a)
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10.21
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Form of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for restricted stock units for Operating Committee members, dated as of January 19, 2016.
(a)(b)
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10.22
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Form of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for performance share units for Operating Committee members, dated as of January 19, 2016.
(a)(b)
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10.23
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Form of JPMorgan Chase & Co. Terms and Conditions of Fixed Allowance (UK) (incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q of JPMorgan Chase & Co. (File No. 1-5805) for the quarter ended June 30, 2014).
(a)
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10.24
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Form of JPMorgan Chase & Co. Performance-Based Incentive Compensation Plan, effective as of January 1, 2006, as amended (incorporated by reference to Exhibit 10.27 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2009).
(a)
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10.25
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Plea Agreement dated May 20, 2015 between JPMorgan Chase & Co. and the U.S. Department of Justice (incorporated by reference to Exhibit 99.3 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed May 20, 2015).
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12.1
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Computation of ratio of earnings to fixed charges.
(b)
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12.2
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Computation of ratio of earnings to fixed charges and preferred stock dividend requirements.
(b)
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21
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List of subsidiaries of JPMorgan Chase & Co.
(b)
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22.1
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Annual Report on Form 11-K of The JPMorgan Chase 401(k) Savings Plan for the year ended December 31, 2015 (to be filed pursuant to Rule 15d-21 under the Securities Exchange Act of 1934).
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23
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Consent of independent registered public accounting firm.
(b)
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31.1
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Certification.
(b)
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31.2
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Certification.
(b)
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32
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Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(c)
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26
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101.INS
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XBRL Instance Document.
(b)(d)
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
Document.
(b)
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
(b)
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
(b)
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
(b)
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation 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 Annual Report on Form 10-K for the year ended
December 31, 2015
, formatted in XBRL (eXtensible Business Reporting Language) interactive data files: (i) the Consolidated statements of income for the years ended
December 31, 2015
,
2014
and
2013
, (ii) the Consolidated statements of comprehensive income for the years ended
December 31, 2015
,
2014
and
2013
, (iii) the Consolidated balance sheets as of
December 31, 2015
and
2014
, (iv) the Consolidated statements of changes in stockholders’ equity for the years ended
December 31, 2015
,
2014
and
2013
, (v) the Consolidated statements of cash flows for the years ended
December 31, 2015
,
2014
and
2013
, and (vi) the Notes to Consolidated Financial Statements.
|
|
|
27
|
Financial:
|
|
|
|
|
||
|
|
|
|
|
|
|
66
|
|
|
Audited financial statements:
|
|||
|
|
|
|
|
|
|
67
|
|
|
174
|
|
||
|
|
|
|
|
|
|
Management’s discussion and analysis:
|
|
175
|
|
|||
|
|
|
|
|
|
|
68
|
|
|
176
|
|
||
|
|
|
|
|
|
|
69
|
|
|
181
|
|
||
|
|
|
|
|
|
|
72
|
|
|
|
|||
|
|
|
|
|
|
|
75
|
|
|
|
|
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
80
|
|
|
Supplementary information:
|
|||
|
|
|
|
|
|
|
83
|
|
|
309
|
|
||
|
|
|
|
|
|
|
107
|
|
|
311
|
|
||
|
|
|
|
|
|
|
112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
65
|
(unaudited)
As of or for the year ended December 31,
|
|
|
|
|
|
|
||||||||||
(in millions, except per share, ratio, headcount data and where otherwise noted)
|
|
2015
|
2014
|
2013
|
2012
|
2011
|
||||||||||
Selected income statement data
|
|
|
|
|
|
|
||||||||||
Total net revenue
|
|
$
|
93,543
|
|
$
|
95,112
|
|
$
|
97,367
|
|
$
|
97,680
|
|
$
|
97,843
|
|
Total noninterest expense
|
|
59,014
|
|
61,274
|
|
70,467
|
|
64,729
|
|
62,911
|
|
|||||
Pre-provision profit
|
|
34,529
|
|
33,838
|
|
26,900
|
|
32,951
|
|
34,932
|
|
|||||
Provision for credit losses
|
|
3,827
|
|
3,139
|
|
225
|
|
3,385
|
|
7,574
|
|
|||||
Income before income tax expense
|
|
30,702
|
|
30,699
|
|
26,675
|
|
29,566
|
|
27,358
|
|
|||||
Income tax expense
|
|
6,260
|
|
8,954
|
|
8,789
|
|
8,307
|
|
8,402
|
|
|||||
Net income
|
|
$
|
24,442
|
|
$
|
21,745
|
|
$
|
17,886
|
|
$
|
21,259
|
|
$
|
18,956
|
|
Earnings per share data
|
|
|
|
|
|
|
||||||||||
Net income: Basic
|
|
$
|
6.05
|
|
$
|
5.33
|
|
$
|
4.38
|
|
$
|
5.21
|
|
$
|
4.50
|
|
Diluted
|
|
6.00
|
|
5.29
|
|
4.34
|
|
5.19
|
|
4.48
|
|
|||||
Average shares: Basic
|
|
3,700.4
|
|
3,763.5
|
|
3,782.4
|
|
3,809.4
|
|
3,900.4
|
|
|||||
Diluted
|
|
3,732.8
|
|
3,797.5
|
|
3,814.9
|
|
3,822.2
|
|
3,920.3
|
|
|||||
Market and per common share data
|
|
|
|
|
|
|
||||||||||
Market capitalization
|
|
$
|
241,899
|
|
$
|
232,472
|
|
$
|
219,657
|
|
$
|
167,260
|
|
$
|
125,442
|
|
Common shares at period-end
|
|
3,663.5
|
|
3,714.8
|
|
3,756.1
|
|
3,804.0
|
|
3,772.7
|
|
|||||
Share price
(a)
|
|
|
|
|
|
|
||||||||||
High
|
|
$
|
70.61
|
|
$
|
63.49
|
|
$
|
58.55
|
|
$
|
46.49
|
|
$
|
48.36
|
|
Low
|
|
50.07
|
|
52.97
|
|
44.20
|
|
30.83
|
|
27.85
|
|
|||||
Close
|
|
66.03
|
|
62.58
|
|
58.48
|
|
43.97
|
|
33.25
|
|
|||||
Book value per share
|
|
60.46
|
|
56.98
|
|
53.17
|
|
51.19
|
|
46.52
|
|
|||||
Tangible book value per share (“TBVPS”)
(b)
|
|
48.13
|
|
44.60
|
|
40.72
|
|
38.68
|
|
33.62
|
|
|||||
Cash dividends declared per share
|
|
1.72
|
|
1.58
|
|
1.44
|
|
1.20
|
|
1.00
|
|
|||||
Selected ratios and metrics
|
|
|
|
|
|
|
||||||||||
Return on common equity (“ROE”)
|
|
11
|
%
|
10
|
%
|
9
|
%
|
11
|
%
|
11
|
%
|
|||||
Return on tangible common equity (“ROTCE”)
(b)
|
|
13
|
|
13
|
|
11
|
|
15
|
|
15
|
|
|||||
Return on assets (“ROA”)
|
|
0.99
|
|
0.89
|
|
0.75
|
|
0.94
|
|
0.86
|
|
|||||
Overhead ratio
|
|
63
|
|
64
|
|
72
|
|
66
|
|
64
|
|
|||||
Loans-to-deposits ratio
|
|
65
|
|
56
|
|
57
|
|
61
|
|
64
|
|
|||||
High quality liquid assets (“HQLA“) (in billions)
(c)
|
|
$
|
496
|
|
$
|
600
|
|
$
|
522
|
|
341
|
|
NA
|
|
||
Common equity tier 1 (“CET1”) capital ratio
(d)
|
|
11.8
|
%
|
10.2
|
%
|
10.7
|
%
|
11.0
|
%
|
10.0
|
%
|
|||||
Tier 1 capital ratio
(d)
|
|
13.5
|
|
11.6
|
|
11.9
|
|
12.6
|
|
12.3
|
|
|||||
Total capital ratio
(d)
|
|
15.1
|
|
13.1
|
|
14.3
|
|
15.2
|
|
15.3
|
|
|||||
Tier 1 leverage ratio
(d)
|
|
8.5
|
|
7.6
|
|
7.1
|
|
7.1
|
|
6.8
|
|
|||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|
||||||||||
Trading assets
|
|
$
|
343,839
|
|
$
|
398,988
|
|
$
|
374,664
|
|
$
|
450,028
|
|
$
|
443,963
|
|
Securities
|
|
290,827
|
|
348,004
|
|
354,003
|
|
371,152
|
|
364,793
|
|
|||||
Loans
|
|
837,299
|
|
757,336
|
|
738,418
|
|
733,796
|
|
723,720
|
|
|||||
Core Loans
|
|
732,093
|
|
628,785
|
|
583,751
|
|
555,351
|
|
518,095
|
|
|||||
Total assets
|
|
2,351,698
|
|
2,572,274
|
|
2,414,879
|
|
2,358,323
|
|
2,264,976
|
|
|||||
Deposits
|
|
1,279,715
|
|
1,363,427
|
|
1,287,765
|
|
1,193,593
|
|
1,127,806
|
|
|||||
Long-term debt
(e)
|
|
288,651
|
|
276,379
|
|
267,446
|
|
248,521
|
|
255,962
|
|
|||||
Common stockholders’ equity
|
|
221,505
|
|
211,664
|
|
199,699
|
|
194,727
|
|
175,514
|
|
|||||
Total stockholders’ equity
|
|
247,573
|
|
231,727
|
|
210,857
|
|
203,785
|
|
183,314
|
|
|||||
Headcount
|
|
234,598
|
|
241,359
|
|
251,196
|
|
258,753
|
|
259,940
|
|
|||||
Credit quality metrics
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses
|
|
$
|
14,341
|
|
$
|
14,807
|
|
$
|
16,969
|
|
$
|
22,604
|
|
$
|
28,282
|
|
Allowance for loan losses to total retained loans
|
|
1.63
|
%
|
1.90
|
%
|
2.25
|
%
|
3.02
|
%
|
3.84
|
%
|
|||||
Allowance for loan losses to retained loans excluding purchased credit-impaired loans
(f)
|
|
1.37
|
|
1.55
|
|
1.80
|
|
2.43
|
|
3.35
|
|
|||||
Nonperforming assets
|
|
$
|
7,034
|
|
$
|
7,967
|
|
$
|
9,706
|
|
$
|
11,906
|
|
$
|
11,315
|
|
Net charge-offs
|
|
4,086
|
|
4,759
|
|
5,802
|
|
9,063
|
|
12,237
|
|
|||||
Net charge-off rate
|
|
0.52
|
%
|
0.65
|
%
|
0.81
|
%
|
1.26
|
%
|
1.78
|
%
|
(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. For further discussion of these measures, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on
pages 80–82
.
|
(c)
|
HQLA represents the amount of assets that qualify for inclusion in the liquidity coverage ratio under the final U.S. rule (“U.S. LCR”) for December 31, 2015 and the Firm’s estimated amount for December 31, 2014 prior to the effective date of the final rule, and under the Basel III liquidity coverage ratio (“Basel III LCR”) for prior periods. The Firm did not begin estimating HQLA until December 31, 2012. For additional information, see HQLA on
page 160
.
|
(d)
|
Basel III Transitional rules became effective on January 1, 2014; prior period data is based on Basel I rules. As of December 31, 2014 the ratios presented are calculated under the Basel III Advanced Transitional Approach. CET1 capital under Basel III replaced Tier 1 common capital under Basel I. Prior to Basel III becoming effective on January 1, 2014, Tier 1 common capital under Basel I was a non-GAAP financial measure
. See Capital Management on
pages 149–158
for additional information on Basel III and non-GAAP financial measures of regulatory capital.
|
(e)
|
Included unsecured long-term debt of $211.8 billion, $207.0 billion, $198.9 billion, $200.1 billion and $230.5 billion respectively, as of December 31, of each year presented.
|
(f)
|
Excluded the impact of residential real estate purchased credit-impaired (“PCI”) loans, a non-GAAP financial measure. For further discussion of these measures, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on
pages 80–82
. For further discussion, see Allowance for credit losses on
pages 130–132
.
|
66
|
|
JPMorgan Chase & Co./2015 Annual Report
|
December 31,
(in dollars)
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
||||||||||||
JPMorgan Chase
|
$
|
100.00
|
|
|
$
|
80.03
|
|
|
$
|
108.98
|
|
|
$
|
148.98
|
|
|
$
|
163.71
|
|
|
$
|
177.40
|
|
KBW Bank Index
|
100.00
|
|
|
76.82
|
|
|
102.19
|
|
|
140.77
|
|
|
153.96
|
|
|
154.71
|
|
||||||
S&P Financial Index
|
100.00
|
|
|
82.94
|
|
|
106.78
|
|
|
144.79
|
|
|
166.76
|
|
|
164.15
|
|
||||||
S&P 500 Index
|
100.00
|
|
|
102.11
|
|
|
118.44
|
|
|
156.78
|
|
|
178.22
|
|
|
180.67
|
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
67
|
INTRODUCTION
|
68
|
|
JPMorgan Chase & Co./2015 Annual Report
|
EXECUTIVE OVERVIEW
|
Financial performance of JPMorgan Chase
|
|
|
||||||||
Year ended December 31,
|
|
|||||||||
(in millions, except per share data and ratios)
|
2015
|
|
2014
|
|
Change
|
|||||
Selected income statement data
|
|
|
|
|
|
|||||
Total net revenue
|
$
|
93,543
|
|
|
$
|
95,112
|
|
|
(2
|
)%
|
Total noninterest expense
|
59,014
|
|
|
61,274
|
|
|
(4
|
)
|
||
Pre-provision profit
|
34,529
|
|
|
33,838
|
|
|
2
|
|
||
Provision for credit losses
|
3,827
|
|
|
3,139
|
|
|
22
|
|
||
Net income
|
24,442
|
|
|
21,745
|
|
|
12
|
|
||
Diluted earnings per share
|
6.00
|
|
|
5.29
|
|
|
13
|
|
||
Return on common equity
|
11
|
%
|
|
10
|
%
|
|
|
|||
Capital ratios
(a)
|
|
|
|
|
|
|||||
CET1
|
11.8
|
|
|
10.2
|
|
|
|
|||
Tier 1 capital
|
13.5
|
|
|
11.6
|
|
|
|
(a)
|
Ratios presented are calculated under the transitional Basel III rules and represent the Collins Floor. See Capital Management on
pages 149–158
for additional information on Basel III.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
69
|
70
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
71
|
CONSOLIDATED RESULTS OF OPERATIONS
|
Revenue
|
|
|
|
|
|
||||||
Year ended December 31,
|
|
|
|
|
|
||||||
(in millions)
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Investment banking fees
|
$
|
6,751
|
|
|
$
|
6,542
|
|
|
$
|
6,354
|
|
Principal transactions
|
10,408
|
|
|
10,531
|
|
|
10,141
|
|
|||
Lending- and deposit-related fees
|
5,694
|
|
|
5,801
|
|
|
5,945
|
|
|||
Asset management, administration and commissions
|
15,509
|
|
|
15,931
|
|
|
15,106
|
|
|||
Securities gains
|
202
|
|
|
77
|
|
|
667
|
|
|||
Mortgage fees and related income
|
2,513
|
|
|
3,563
|
|
|
5,205
|
|
|||
Card income
|
5,924
|
|
|
6,020
|
|
|
6,022
|
|
|||
Other income
(a)
|
3,032
|
|
|
3,013
|
|
|
4,608
|
|
|||
Noninterest revenue
|
50,033
|
|
|
51,478
|
|
|
54,048
|
|
|||
Net interest income
|
43,510
|
|
|
43,634
|
|
|
43,319
|
|
|||
Total net revenue
|
$
|
93,543
|
|
|
$
|
95,112
|
|
|
$
|
97,367
|
|
(a)
|
Included operating lease income of
$2.1 billion
,
$1.7 billion
and
$1.5 billion
for the years ended
December 31, 2015
,
2014
and
2013
, respectively.
|
72
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Provision for credit losses
|
|
|
|
|
|||||||
Year ended December 31,
|
|
|
|
|
|
||||||
(in millions)
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Consumer, excluding credit card
|
$
|
(81
|
)
|
|
$
|
419
|
|
|
$
|
(1,871
|
)
|
Credit card
|
3,122
|
|
|
3,079
|
|
|
2,179
|
|
|||
Total consumer
|
3,041
|
|
|
3,498
|
|
|
308
|
|
|||
Wholesale
|
786
|
|
|
(359
|
)
|
|
(83
|
)
|
|||
Total provision for credit losses
|
$
|
3,827
|
|
|
$
|
3,139
|
|
|
$
|
225
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
73
|
Noninterest expense
|
|
|
|
|
|||||||
Year ended December 31,
|
|
||||||||||
(in millions)
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Compensation expense
|
$
|
29,750
|
|
|
$
|
30,160
|
|
|
$
|
30,810
|
|
Noncompensation expense:
|
|
|
|
|
|
||||||
Occupancy
|
3,768
|
|
|
3,909
|
|
|
3,693
|
|
|||
Technology, communications and equipment
|
6,193
|
|
|
5,804
|
|
|
5,425
|
|
|||
Professional and outside services
|
7,002
|
|
|
7,705
|
|
|
7,641
|
|
|||
Marketing
|
2,708
|
|
|
2,550
|
|
|
2,500
|
|
|||
Other
(a)(b)
|
9,593
|
|
|
11,146
|
|
|
20,398
|
|
|||
Total noncompensation expense
|
29,264
|
|
|
31,114
|
|
|
39,657
|
|
|||
Total noninterest expense
|
$
|
59,014
|
|
|
$
|
61,274
|
|
|
$
|
70,467
|
|
(a)
|
Included legal expense of
$3.0 billion
,
$2.9 billion
and
$11.1 billion
for the years ended December 31, 2015, 2014 and 2013, respectively.
|
(b)
|
Included Federal Deposit Insurance Corporation (“FDIC”)-related expense of
$1.2 billion
,
$1.0 billion
and
$1.5 billion
for the years ended December 31, 2015, 2014 and 2013, respectively.
|
Income tax expense
|
|
|
|
|
|
||||||
Year ended December 31,
(in millions, except rate)
|
|
|
|
|
|
||||||
2015
|
|
2014
|
|
2013
|
|||||||
Income before income tax expense
|
$
|
30,702
|
|
|
$
|
30,699
|
|
|
$
|
26,675
|
|
Income tax expense
|
6,260
|
|
|
8,954
|
|
|
8,789
|
|
|||
Effective tax rate
|
20.4
|
%
|
|
29.2
|
%
|
|
32.9
|
%
|
74
|
|
JPMorgan Chase & Co./2015 Annual Report
|
CONSOLIDATED BALANCE SHEETS ANALYSIS
|
Selected Consolidated balance sheets data
|
|
|||||||
December 31, (in millions)
|
2015
|
2014
|
Change
|
|||||
Assets
|
|
|
|
|||||
Cash and due from banks
|
$
|
20,490
|
|
$
|
27,831
|
|
(26
|
)%
|
Deposits with banks
|
340,015
|
|
484,477
|
|
(30
|
)
|
||
Federal funds sold and securities purchased under resale agreements
|
212,575
|
|
215,803
|
|
(1
|
)
|
||
Securities borrowed
|
98,721
|
|
110,435
|
|
(11
|
)
|
||
Trading assets:
|
|
|
|
|||||
Debt and equity instruments
|
284,162
|
|
320,013
|
|
(11
|
)
|
||
Derivative receivables
|
59,677
|
|
78,975
|
|
(24
|
)
|
||
Securities
|
290,827
|
|
348,004
|
|
(16
|
)
|
||
Loans
|
837,299
|
|
757,336
|
|
11
|
|
||
Allowance for loan losses
|
(13,555
|
)
|
(14,185
|
)
|
(4
|
)
|
||
Loans, net of allowance for loan losses
|
823,744
|
|
743,151
|
|
11
|
|
||
Accrued interest and accounts receivable
|
46,605
|
|
70,079
|
|
(33
|
)
|
||
Premises and equipment
|
14,362
|
|
15,133
|
|
(5
|
)
|
||
Goodwill
|
47,325
|
|
47,647
|
|
(1
|
)
|
||
Mortgage servicing rights
|
6,608
|
|
7,436
|
|
(11
|
)
|
||
Other intangible assets
|
1,015
|
|
1,192
|
|
(15
|
)
|
||
Other assets
|
105,572
|
|
102,098
|
|
3
|
|
||
Total assets
|
$
|
2,351,698
|
|
$
|
2,572,274
|
|
(9
|
)%
|
|
|
|
|
|||||
Liabilities
|
|
|
|
|||||
Deposits
|
$
|
1,279,715
|
|
$
|
1,363,427
|
|
(6
|
)
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
152,678
|
|
192,101
|
|
(21
|
)
|
||
Commercial paper
|
15,562
|
|
66,344
|
|
(77
|
)
|
||
Other borrowed funds
|
21,105
|
|
30,222
|
|
(30
|
)
|
||
Trading liabilities:
|
|
|
|
|||||
Debt and equity instruments
|
74,107
|
|
81,699
|
|
(9
|
)
|
||
Derivative payables
|
52,790
|
|
71,116
|
|
(26
|
)
|
||
Accounts payable and other liabilities
|
177,638
|
|
206,939
|
|
(14
|
)
|
||
Beneficial interests issued by consolidated variable interest entities (“VIEs”)
|
41,879
|
|
52,320
|
|
(20
|
)
|
||
Long-term debt
|
288,651
|
|
276,379
|
|
4
|
|
||
Total liabilities
|
2,104,125
|
|
2,340,547
|
|
(10
|
)
|
||
Stockholders’ equity
|
247,573
|
|
231,727
|
|
7
|
|
||
Total liabilities and stockholders’ equity
|
$
|
2,351,698
|
|
$
|
2,572,274
|
|
(9
|
)%
|
JPMorgan Chase & Co./2015 Annual Report
|
|
75
|
76
|
|
JPMorgan Chase & Co./2015 Annual Report
|
OFF-BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL CASH OBLIGATIONS
|
JPMorgan Chase & Co./2015 Annual Report
|
|
77
|
Contractual cash obligations
|
|
|
|
|
|
|||||||||||||
By remaining maturity at December 31,
(in millions)
|
2015
|
2014
|
||||||||||||||||
2016
|
2017-2018
|
2019-2020
|
After 2020
|
Total
|
Total
|
|||||||||||||
On-balance sheet obligations
|
|
|
|
|
|
|
||||||||||||
Deposits
(a)
|
$
|
1,262,865
|
|
$
|
5,166
|
|
$
|
3,553
|
|
$
|
4,555
|
|
$
|
1,276,139
|
|
$
|
1,361,597
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
151,433
|
|
811
|
|
3
|
|
491
|
|
152,738
|
|
192,128
|
|
||||||
Commercial paper
|
15,562
|
|
—
|
|
—
|
|
—
|
|
15,562
|
|
66,344
|
|
||||||
Other borrowed funds
(a)
|
11,331
|
|
—
|
|
—
|
|
—
|
|
11,331
|
|
15,734
|
|
||||||
Beneficial interests issued by consolidated VIEs
|
16,389
|
|
18,480
|
|
3,093
|
|
3,130
|
|
41,092
|
|
50,200
|
|
||||||
Long-term debt
(a)
|
45,972
|
|
82,293
|
|
59,669
|
|
92,272
|
|
280,206
|
|
262,888
|
|
||||||
Other
(b)
|
3,659
|
|
1,201
|
|
1,024
|
|
2,488
|
|
8,372
|
|
8,355
|
|
||||||
Total on-balance sheet obligations
|
1,507,211
|
|
107,951
|
|
67,342
|
|
102,936
|
|
1,785,440
|
|
1,957,246
|
|
||||||
Off-balance sheet obligations
|
|
|
|
|
|
|
||||||||||||
Unsettled reverse repurchase and securities borrowing agreements
(c)
|
42,482
|
|
—
|
|
—
|
|
—
|
|
42,482
|
|
40,993
|
|
||||||
Contractual interest payments
(d)
|
8,787
|
|
9,461
|
|
6,693
|
|
21,208
|
|
46,149
|
|
48,038
|
|
||||||
Operating leases
(e)
|
1,668
|
|
3,094
|
|
2,388
|
|
4,679
|
|
11,829
|
|
12,441
|
|
||||||
Equity investment commitments
(f)
|
387
|
|
—
|
|
75
|
|
459
|
|
921
|
|
1,108
|
|
||||||
Contractual purchases and capital expenditures
|
1,266
|
|
886
|
|
276
|
|
170
|
|
2,598
|
|
2,832
|
|
||||||
Obligations under affinity and co-brand programs
|
98
|
|
275
|
|
80
|
|
43
|
|
496
|
|
2,303
|
|
||||||
Total off-balance sheet obligations
|
54,688
|
|
13,716
|
|
9,512
|
|
26,559
|
|
104,475
|
|
107,715
|
|
||||||
Total contractual cash obligations
|
$
|
1,561,899
|
|
$
|
121,667
|
|
$
|
76,854
|
|
$
|
129,495
|
|
$
|
1,889,915
|
|
$
|
2,064,961
|
|
(a)
|
Excludes structured notes on which the Firm is not obligated to return a stated amount of principal at the maturity of the notes, but is obligated to return an amount based on the performance of the structured notes.
|
(b)
|
Primarily includes dividends declared on preferred and common stock, deferred annuity contracts, pension and postretirement obligations and insurance liabilities.
|
(c)
|
For further information, refer to unsettled reverse repurchase and securities borrowing agreements in Note 29.
|
(d)
|
Includes accrued interest and future contractual interest obligations. Excludes interest related to structured notes for which the Firm’s payment obligation is based on the performance of certain benchmarks.
|
(e)
|
Includes noncancelable operating leases for premises and equipment used primarily for banking purposes and for energy-related tolling service agreements. Excludes the benefit of noncancelable sublease rentals of
$1.9 billion
and $
2.2 billion
at
December 31, 2015
and
2014
, respectively.
|
(f)
|
At
December 31, 2015
and
2014
, included unfunded commitments of
$50 million
and
$147 million
, respectively, to third-party private equity funds, and
$871 million
and
$961 million
of unfunded commitments, respectively, to other equity investments.
|
78
|
|
JPMorgan Chase & Co./2015 Annual Report
|
CONSOLIDATED CASH FLOWS ANALYSIS
|
(in millions)
|
|
Year ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
|||||||
Net cash provided by/(used in)
|
|
|
|
|
|
|
||||||
Operating activities
|
|
$
|
73,466
|
|
|
$
|
36,593
|
|
|
$
|
107,953
|
|
Investing activities
|
|
106,980
|
|
|
(165,636
|
)
|
|
(150,501
|
)
|
|||
Financing activities
|
|
(187,511
|
)
|
|
118,228
|
|
|
28,324
|
|
|||
Effect of exchange rate changes on cash
|
|
(276
|
)
|
|
(1,125
|
)
|
|
272
|
|
|||
Net decrease in cash and due from banks
|
|
$
|
(7,341
|
)
|
|
$
|
(11,940
|
)
|
|
$
|
(13,952
|
)
|
JPMorgan Chase & Co./2015 Annual Report
|
|
79
|
EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||||||||
Year ended
December 31,
(in millions, except ratios)
|
Reported
Results
|
|
Fully taxable-equivalent adjustments
(a)
|
|
Managed
basis
|
|
Reported
Results
|
|
Fully taxable-equivalent adjustments
(a)
|
|
Managed
basis
|
|
Reported
Results
|
|
Fully taxable-equivalent adjustments
(a)
|
|
Managed
basis
|
||||||||||||
Other income
|
$
|
3,032
|
|
|
$
|
1,980
|
|
|
$
|
5,012
|
|
|
$
|
3,013
|
|
|
$
|
1,788
|
|
|
$
|
4,801
|
|
|
$4,608
|
|
$1,660
|
|
$6,268
|
Total noninterest revenue
|
50,033
|
|
|
1,980
|
|
|
52,013
|
|
|
51,478
|
|
|
1,788
|
|
|
53,266
|
|
|
54,048
|
|
1,660
|
|
55,708
|
||||||
Net interest income
|
43,510
|
|
|
1,110
|
|
|
44,620
|
|
|
43,634
|
|
|
985
|
|
|
44,619
|
|
|
43,319
|
|
697
|
|
44,016
|
||||||
Total net revenue
|
93,543
|
|
|
3,090
|
|
|
96,633
|
|
|
95,112
|
|
|
2,773
|
|
|
97,885
|
|
|
97,367
|
|
2,357
|
|
99,724
|
||||||
Pre-provision profit
|
34,529
|
|
|
3,090
|
|
|
37,619
|
|
|
33,838
|
|
|
2,773
|
|
|
36,611
|
|
|
26,900
|
|
2,357
|
|
29,257
|
||||||
Income before income tax expense
|
30,702
|
|
|
3,090
|
|
|
33,792
|
|
|
30,699
|
|
|
2,773
|
|
|
33,472
|
|
|
26,675
|
|
2,357
|
|
29,032
|
||||||
Income tax expense
|
6,260
|
|
|
3,090
|
|
|
9,350
|
|
|
8,954
|
|
|
2,773
|
|
|
11,727
|
|
|
8,789
|
|
2,357
|
|
11,146
|
||||||
Overhead ratio
|
63
|
%
|
|
NM
|
|
|
61
|
%
|
|
64
|
%
|
|
NM
|
|
|
63
|
%
|
|
72%
|
|
NM
|
|
71%
|
(a)
|
Predominantly recognized in CIB and CB business segments and Corporate
|
80
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Calculation of certain U.S. GAAP and non-GAAP financial measures
|
||||
Certain U.S. GAAP and non-GAAP financial measures are calculated as follows:
|
||||
Book value per share (“BVPS”)
Common stockholders’ equity at period-end /
Common shares at period-end
|
||||
Overhead ratio
Total noninterest expense / Total net revenue
|
||||
Return on assets (“ROA”)
Reported net income / Total average assets
|
||||
Return on common equity (“ROE”)
Net income* / Average common stockholders’ equity
|
||||
Return on tangible common equity (“ROTCE”)
Net income* / Average tangible common equity
|
||||
Tangible book value per share (“TBVPS”)
Tangible common equity at period-end / Common shares at period-end
|
||||
* Represents net income applicable to common equity
|
Tangible common equity
|
|
|
|
|
|
|
||||||||||
|
Period-end
|
|
Average
|
|||||||||||||
|
Dec 31,
2015 |
Dec 31,
2014 |
|
Year ended December 31,
|
||||||||||||
(in millions, except per share and ratio data)
|
|
2015
|
2014
|
2013
|
||||||||||||
Common stockholders’ equity
|
$
|
221,505
|
|
$
|
211,664
|
|
|
$
|
215,690
|
|
$
|
207,400
|
|
$
|
196,409
|
|
Less: Goodwill
|
47,325
|
|
47,647
|
|
|
47,445
|
|
48,029
|
|
48,102
|
|
|||||
Less: Certain identifiable intangible assets
|
1,015
|
|
1,192
|
|
|
1,092
|
|
1,378
|
|
1,950
|
|
|||||
Add: Deferred tax liabilities
(a)
|
3,148
|
|
2,853
|
|
|
2,964
|
|
2,950
|
|
2,885
|
|
|||||
Tangible common equity
|
$
|
176,313
|
|
$
|
165,678
|
|
|
$
|
170,117
|
|
$
|
160,943
|
|
$
|
149,242
|
|
|
|
|
|
|
|
|
||||||||||
Return on tangible common equity
|
NA
|
|
NA
|
|
|
13
|
%
|
13
|
%
|
11
|
%
|
|||||
Tangible book value per share
|
$
|
48.13
|
|
$
|
44.60
|
|
|
NA
|
NA
|
N/A
|
(a)
|
Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating TCE.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
81
|
Year ended December 31,
(in millions, except rates)
|
2015
|
2014
|
2013
|
||||||
Net interest income – managed basis
(a)(b)
|
$
|
44,620
|
|
$
|
44,619
|
|
$
|
44,016
|
|
Less: Markets-based net interest income
|
4,813
|
|
5,552
|
|
5,492
|
|
|||
Net interest income excluding markets
(a)
|
$
|
39,807
|
|
$
|
39,067
|
|
$
|
38,524
|
|
Average interest-earning assets
|
$
|
2,088,242
|
|
$
|
2,049,093
|
|
$
|
1,970,231
|
|
Less: Average markets-based interest-earning assets
|
493,225
|
|
510,261
|
|
504,218
|
|
|||
Average interest-earning assets excluding markets
|
$
|
1,595,017
|
|
$
|
1,538,832
|
|
$
|
1,466,013
|
|
Net interest yield on average interest-earning assets – managed basis
|
2.14
|
%
|
2.18
|
%
|
2.23
|
%
|
|||
Net interest yield on average markets-based interest-earning assets
|
0.97
|
|
1.09
|
|
1.09
|
|
|||
Net interest yield on average interest-earning assets excluding markets
|
2.50
|
%
|
2.54
|
%
|
2.63
|
%
|
(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
80
.
|
82
|
|
JPMorgan Chase & Co./2015 Annual Report
|
BUSINESS SEGMENT RESULTS
|
JPMorgan Chase
|
|||||||||||||
|
|||||||||||||
Consumer Businesses
|
|
Wholesale Businesses
|
|||||||||||
|
|||||||||||||
Consumer & Community Banking
|
|
Corporate & Investment Bank
|
|
Commercial Banking
|
|
Asset Management
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer &
Business
Banking
|
|
Mortgage
Banking
|
|
Card, Commerce Solutions & Auto
|
|
Banking
|
|
Markets & Investor Services
|
|
• Middle Market Banking
|
|
• Global Investment Management
|
|
• Consumer Banking/Chase Wealth Management
• Business Banking
|
• Mortgage Production
• Mortgage Servicing
• Real Estate Portfolios
|
• Card Services
– Credit Card
– Commerce Solutions
• Auto & Student
|
• Investment Banking
• Treasury Services
• Lending
|
• Fixed
Income
Markets
|
• Corporate Client Banking
|
• Global Wealth Management
|
|||||||
• Equity Markets
• Securities Services
• Credit Adjustments & Other
|
• Commercial Term Lending
|
||||||||||||
• Real Estate Banking
|
|||||||||||||
JPMorgan Chase & Co./2015 Annual Report
|
|
83
|
Year ended December 31,
|
Total net revenue
|
|
Total noninterest expense
|
|
Pre-provision profit/(loss)
|
||||||||||||||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2013
|
|
|
2015
|
|
2014
|
|
2013
|
|
|
2015
|
|
2014
|
|
2013
|
|
|||||||||
Consumer & Community Banking
|
$
|
43,820
|
|
$
|
44,368
|
|
$
|
46,537
|
|
|
$
|
24,909
|
|
$
|
25,609
|
|
$
|
27,842
|
|
|
$
|
18,911
|
|
$
|
18,759
|
|
$
|
18,695
|
|
Corporate & Investment Bank
|
33,542
|
|
34,595
|
|
34,712
|
|
|
21,361
|
|
23,273
|
|
21,744
|
|
|
12,181
|
|
11,322
|
|
12,968
|
|
|||||||||
Commercial Banking
|
6,885
|
|
6,882
|
|
7,092
|
|
|
2,881
|
|
2,695
|
|
2,610
|
|
|
4,004
|
|
4,187
|
|
4,482
|
|
|||||||||
Asset Management
|
12,119
|
|
12,028
|
|
11,405
|
|
|
8,886
|
|
8,538
|
|
8,016
|
|
|
3,233
|
|
3,490
|
|
3,389
|
|
|||||||||
Corporate
|
267
|
|
12
|
|
(22
|
)
|
|
977
|
|
1,159
|
|
10,255
|
|
|
(710
|
)
|
(1,147
|
)
|
(10,277
|
)
|
|||||||||
Total
|
$
|
96,633
|
|
$
|
97,885
|
|
$
|
99,724
|
|
|
$
|
59,014
|
|
$
|
61,274
|
|
$
|
70,467
|
|
|
$
|
37,619
|
|
$
|
36,611
|
|
$
|
29,257
|
|
Year ended December 31,
|
Provision for credit losses
|
|
Net income/(loss)
|
|
Return on equity
|
|||||||||||||||||||||
(in millions, except ratios)
|
2015
|
|
2014
|
|
2013
|
|
|
2015
|
|
2014
|
|
2013
|
|
|
2015
|
|
2014
|
|
2013
|
|
||||||
Consumer & Community Banking
|
$
|
3,059
|
|
$
|
3,520
|
|
$
|
335
|
|
|
$
|
9,789
|
|
$
|
9,185
|
|
$
|
11,061
|
|
|
18
|
%
|
18
|
%
|
23
|
%
|
Corporate & Investment Bank
|
332
|
|
(161
|
)
|
(232
|
)
|
|
8,090
|
|
6,908
|
|
8,850
|
|
|
12
|
|
10
|
|
15
|
|
||||||
Commercial Banking
|
442
|
|
(189
|
)
|
85
|
|
|
2,191
|
|
2,635
|
|
2,648
|
|
|
15
|
|
18
|
|
19
|
|
||||||
Asset Management
|
4
|
|
4
|
|
65
|
|
|
1,935
|
|
2,153
|
|
2,083
|
|
|
21
|
|
23
|
|
23
|
|
||||||
Corporate
|
(10
|
)
|
(35
|
)
|
(28
|
)
|
|
2,437
|
|
864
|
|
(6,756
|
)
|
|
NM
|
|
NM
|
|
NM
|
|
||||||
Total
|
$
|
3,827
|
|
$
|
3,139
|
|
$
|
225
|
|
|
$
|
24,442
|
|
$
|
21,745
|
|
$
|
17,886
|
|
|
11%
|
|
10
|
%
|
9
|
%
|
84
|
|
JPMorgan Chase & Co./2015 Annual Report
|
CONSUMER & COMMUNITY BANKING
|
Consumer & Community Banking serves consumers and businesses through personal service at bank branches and through ATMs, online, mobile and telephone banking. CCB is organized into Consumer & Business Banking (including Consumer Banking/Chase Wealth Management and Business Banking), Mortgage Banking (including Mortgage Production, Mortgage Servicing and Real Estate Portfolios) and Card, Commerce Solutions & Auto (“Card”). Consumer & Business Banking offers deposit and investment products and services to consumers, and lending, deposit, and cash management and payment solutions to small businesses. Mortgage Banking includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card issues credit cards to consumers and small businesses, offers payment processing services to merchants, and provides auto loans and leases and student loan services.
|
Selected income statement data
|
|
|
|
|
|||||||
Year ended December 31,
|
|
||||||||||
(in millions, except ratios)
|
2015
|
|
2014
|
|
2013
|
||||||
Revenue
|
|
|
|
|
|
||||||
Lending- and deposit-related fees
|
$
|
3,137
|
|
|
$
|
3,039
|
|
|
$
|
2,983
|
|
Asset management, administration and commissions
|
2,172
|
|
|
2,096
|
|
|
2,116
|
|
|||
Mortgage fees and related income
|
2,511
|
|
|
3,560
|
|
|
5,195
|
|
|||
Card income
|
5,491
|
|
|
5,779
|
|
|
5,785
|
|
|||
All other income
|
2,281
|
|
|
1,463
|
|
|
1,473
|
|
|||
Noninterest revenue
|
15,592
|
|
|
15,937
|
|
|
17,552
|
|
|||
Net interest income
|
28,228
|
|
|
28,431
|
|
|
28,985
|
|
|||
Total net revenue
|
43,820
|
|
|
44,368
|
|
|
46,537
|
|
|||
|
|
|
|
|
|
||||||
Provision for credit losses
|
3,059
|
|
|
3,520
|
|
|
335
|
|
|||
|
|
|
|
|
|
||||||
Noninterest expense
|
|
|
|
|
|
||||||
Compensation expense
|
9,770
|
|
|
10,538
|
|
|
11,686
|
|
|||
Noncompensation expense
|
15,139
|
|
|
15,071
|
|
|
16,156
|
|
|||
Total noninterest expense
|
24,909
|
|
|
25,609
|
|
|
27,842
|
|
|||
Income before income tax expense
|
15,852
|
|
|
15,239
|
|
|
18,360
|
|
|||
Income tax expense
|
6,063
|
|
|
6,054
|
|
|
7,299
|
|
|||
Net income
|
$
|
9,789
|
|
|
$
|
9,185
|
|
|
$
|
11,061
|
|
|
|
|
|
|
|
||||||
Financial ratios
|
|
|
|
|
|
||||||
Return on common equity
|
18
|
%
|
|
18
|
%
|
|
23
|
%
|
|||
Overhead ratio
|
57
|
|
|
58
|
|
|
60
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
85
|
Selected metrics
|
|
|
|
|
|||||||
As of or for the year ended December 31,
|
|
|
|
|
|
||||||
(in millions, except headcount)
|
2015
|
|
2014
|
|
2013
|
||||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
||||||
Total assets
|
$
|
502,652
|
|
|
$
|
455,634
|
|
|
$
|
452,929
|
|
Trading assets – loans
(a)
|
5,953
|
|
|
8,423
|
|
|
6,832
|
|
|||
Loans:
|
|
|
|
|
|
||||||
Loans retained
|
445,316
|
|
|
396,288
|
|
|
393,351
|
|
|||
Loans held-for-sale
(b)
|
542
|
|
|
3,416
|
|
|
940
|
|
|||
Total loans
|
445,858
|
|
|
399,704
|
|
|
394,291
|
|
|||
Core loans
|
341,881
|
|
|
273,494
|
|
|
246,751
|
|
|||
Deposits
|
557,645
|
|
|
502,520
|
|
|
464,412
|
|
|||
Equity
(c)
|
51,000
|
|
|
51,000
|
|
|
46,000
|
|
|||
Selected balance sheet data (average)
|
|
|
|
|
|
||||||
Total assets
|
$
|
472,972
|
|
|
$
|
447,750
|
|
|
$
|
456,468
|
|
Trading assets – loans
(a)
|
7,484
|
|
|
8,040
|
|
|
15,603
|
|
|||
Loans:
|
|
|
|
|
|
||||||
Loans retained
|
414,518
|
|
|
389,967
|
|
|
392,797
|
|
|||
Loans held-for-sale
(d)
|
2,062
|
|
|
917
|
|
|
209
|
|
|||
Total loans
|
$
|
416,580
|
|
|
$
|
390,884
|
|
|
$
|
393,006
|
|
Core loans
|
301,700
|
|
|
253,803
|
|
|
234,135
|
|
|||
Deposits
|
530,938
|
|
|
486,919
|
|
|
453,304
|
|
|||
Equity
(c)
|
51,000
|
|
|
51,000
|
|
|
46,000
|
|
|||
|
|
|
|
|
|
||||||
Headcount
|
127,094
|
|
|
137,186
|
|
|
151,333
|
|
(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 $76 million, $3.0 billion and $326 million at December 31, 2015, 2014 and 2013, respectively. These amounts were excluded when calculating delinquency rates and the allowance for loan losses to period-end loans.
|
(c)
|
Equity is allocated to the sub-business segments with $5.0 billion and $3.0 billion of capital in 2015 and 2014, respectively, held at the CCB level related to legacy mortgage servicing matters.
|
(d)
|
Included average credit card loans held-for-sale of $1.6 billion, $509 million and $95 million for the years ended December 31, 2015, 2014 and 2013, respectively. These amounts are excluded when calculating the net charge-off rate.
|
Selected metrics
|
|
|
|||||||
As of or for the year ended December 31,
|
|
|
|
||||||
(in millions, except ratios and where otherwise noted)
|
2015
|
2014
|
2013
|
||||||
Credit data and quality statistics
|
|
|
|||||||
Net charge-offs
(a)
|
$
|
4,084
|
|
$
|
4,773
|
|
$
|
5,826
|
|
Nonaccrual loans
(b)(c)
|
5,313
|
|
6,401
|
|
7,455
|
|
|||
Nonperforming assets
(b)(c)
|
5,635
|
|
6,872
|
|
8,109
|
|
|||
Allowance for loan losses
(a)
|
9,165
|
|
10,404
|
|
12,201
|
|
|||
Net charge-off rate
(a)
|
0.99
|
%
|
1.22
|
%
|
1.48
|
%
|
|||
Net charge-off rate,
excluding PCI loans
|
1.10
|
|
1.40
|
|
1.73
|
|
|||
Allowance for loan losses to period-end loans retained
|
2.06
|
|
2.63
|
|
3.10
|
|
|||
Allowance for loan losses to period-end loans retained,
excluding PCI loans
(d)
|
1.59
|
|
2.02
|
|
2.36
|
|
|||
Allowance for loan losses to nonaccrual loans retained, excluding credit card
(b)(d)
|
57
|
|
58
|
|
57
|
|
|||
Nonaccrual loans to total period-end loans, excluding
credit card
|
1.69
|
|
2.38
|
|
2.80
|
|
|||
Nonaccrual loans to total period-end loans, excluding credit card and PCI loans
(b)
|
1.94
|
|
2.88
|
|
3.49
|
|
|||
Business metrics
|
|
|
|
||||||
Number of:
|
|
|
|
||||||
Branches
|
5,413
|
|
5,602
|
|
5,630
|
|
|||
ATMs
|
17,777
|
|
18,056
|
|
20,290
|
|
|||
Active online customers (in thousands)
(e)
|
39,242
|
|
36,396
|
|
33,742
|
|
|||
Active mobile customers (in thousands)
|
22,810
|
|
19,084
|
|
15,629
|
|
|||
CCB households (in millions)
|
57.8
|
|
57.2
|
|
56.7
|
|
(a)
|
Net charge-offs and the net charge-off rates excluded
$208 million
,
$533 million
, and $53 million of write-offs in the PCI portfolio for the years ended December 31, 2015, 2014 and 2013, 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
|
(b)
|
Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as all of the pools are performing.
|
(c)
|
At December 31, 2015, 2014 and 2013, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $6.3 billion, $7.8 billion and $8.4 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 $290 million, $367 million and $428 million respectively, that are 90 or more days past due; (3) real estate owned (“REO”) insured by U.S. government agencies of $343 million, $462 million and $2.0 billion, respectively. These amounts have been excluded based upon the government guarantee.
|
(d)
|
The allowance for loan losses for PCI loans of $2.7 billion, $3.3 billion and $4.2 billion at December 31, 2015, 2014, and 2013, respectively; these amounts were also excluded from the applicable ratios.
|
(e)
|
Users of all internet browsers and mobile platforms (mobile smartphone, tablet and SMS) who have logged in within the past 90 days.
|
86
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Selected income statement data
|
|
|
|
|
|||||||
As of or for the year ended December 31,
|
|
||||||||||
(in millions, except ratios)
|
2015
|
|
2014
|
|
2013
|
||||||
Revenue
|
|
|
|
|
|
||||||
Lending- and deposit-related fees
|
$
|
3,112
|
|
|
$
|
3,010
|
|
|
$
|
2,942
|
|
Asset management, administration and commissions
|
2,097
|
|
|
2,025
|
|
|
1,815
|
|
|||
Card income
|
1,721
|
|
|
1,605
|
|
|
1,495
|
|
|||
All other income
|
611
|
|
|
534
|
|
|
492
|
|
|||
Noninterest revenue
|
7,541
|
|
|
7,174
|
|
|
6,744
|
|
|||
Net interest income
|
10,442
|
|
|
11,052
|
|
|
10,668
|
|
|||
Total net revenue
|
17,983
|
|
|
18,226
|
|
|
17,412
|
|
|||
|
|
|
|
|
|
||||||
Provision for credit losses
|
254
|
|
|
305
|
|
|
347
|
|
|||
|
|
|
|
|
|
||||||
Noninterest expense
|
11,916
|
|
|
12,149
|
|
|
12,162
|
|
|||
Income before income tax expense
|
5,813
|
|
|
5,772
|
|
|
4,903
|
|
|||
Net income
|
$
|
3,581
|
|
|
$
|
3,443
|
|
|
$
|
2,943
|
|
Return on common equity
|
30
|
%
|
|
31
|
%
|
|
26
|
%
|
|||
Overhead ratio
|
66
|
|
|
67
|
|
|
70
|
|
|||
Equity (period-end and average)
|
$
|
11,500
|
|
|
$
|
11,000
|
|
|
$
|
11,000
|
|
(a)
|
Includes checking accounts and Chase Liquid
®
cards.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
87
|
Selected Financial statement data
|
|||||||||||
As of or for the year ended December 31,
|
|
|
|
|
|
||||||
(in millions, except ratios)
|
2015
|
|
2014
|
|
2013
|
||||||
Revenue
|
|
|
|
|
|
||||||
Mortgage fees and related income
(a)
|
$
|
2,511
|
|
|
$
|
3,560
|
|
|
$
|
5,195
|
|
All other income
|
(65
|
)
|
|
37
|
|
|
283
|
|
|||
Noninterest revenue
|
2,446
|
|
|
3,597
|
|
|
5,478
|
|
|||
Net interest income
|
4,371
|
|
|
4,229
|
|
|
4,758
|
|
|||
Total net revenue
|
6,817
|
|
|
7,826
|
|
|
10,236
|
|
|||
|
|
|
|
|
|
||||||
Provision for credit losses
|
(690
|
)
|
|
(217
|
)
|
|
(2,681
|
)
|
|||
|
|
|
|
|
|
||||||
Noninterest expense
|
4,607
|
|
|
5,284
|
|
|
7,602
|
|
|||
Income before income tax expense
|
2,900
|
|
|
2,759
|
|
|
5,315
|
|
|||
Net income
|
$
|
1,778
|
|
|
$
|
1,668
|
|
|
$
|
3,211
|
|
|
|
|
|
|
|
||||||
Return on common equity
|
10
|
%
|
|
9
|
%
|
|
16
|
%
|
|||
Overhead ratio
|
68
|
|
|
68
|
|
|
74
|
|
|||
Equity (period-end and average)
|
$
|
16,000
|
|
|
$
|
18,000
|
|
|
$
|
19,500
|
|
(a)
|
For further information on mortgage fees and related income, see Note 17.
|
Supplemental information
|
|
|
|
|
|||||||
For the year ended December 31,
|
|
|
|
|
|
||||||
(in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Net interest income:
|
|
|
|
|
|
||||||
Mortgage Production and Mortgage Servicing
|
$
|
575
|
|
|
$
|
736
|
|
|
$
|
887
|
|
Real Estate Portfolios
|
3,796
|
|
|
3,493
|
|
|
3,871
|
|
|||
Total net interest income
|
$
|
4,371
|
|
|
$
|
4,229
|
|
|
$
|
4,758
|
|
|
|
|
|
|
|
||||||
Noninterest expense:
|
|
|
|
|
|
||||||
Mortgage Production
|
$
|
1,491
|
|
|
$
|
1,644
|
|
|
3,083
|
|
|
Mortgage Servicing
|
2,041
|
|
|
2,267
|
|
|
2,966
|
|
|||
Real Estate Portfolios
|
1,075
|
|
|
1,373
|
|
|
1,553
|
|
|||
Total noninterest expense
|
$
|
4,607
|
|
|
$
|
5,284
|
|
|
$
|
7,602
|
|
88
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Selected balance sheet data
|
|
|
|
|
|||||||
As of or for the year ended December 31,
|
|
|
|
|
|
||||||
(in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Trading assets – loans (period-end)
(a)
|
$
|
5,953
|
|
|
$
|
8,423
|
|
|
$
|
6,832
|
|
Trading assets – loans (average)
(a)
|
7,484
|
|
|
8,040
|
|
|
15,603
|
|
|||
|
|
|
|
|
|
||||||
Loans, excluding PCI loans
|
|
|
|
|
|||||||
Period-end loans owned
|
|
|
|
|
|
||||||
Home equity
|
43,745
|
|
|
50,899
|
|
|
57,863
|
|
|||
Prime mortgage, including option adjustable rate mortgages (“ARMs”)
|
134,361
|
|
|
80,414
|
|
|
65,213
|
|
|||
Subprime mortgage
|
3,732
|
|
|
5,083
|
|
|
7,104
|
|
|||
Other
|
398
|
|
|
477
|
|
|
551
|
|
|||
Total period-end loans owned
|
182,236
|
|
|
136,873
|
|
|
130,731
|
|
|||
Average loans owned
|
|
|
|
|
|
||||||
Home equity
|
47,216
|
|
|
54,410
|
|
|
62,369
|
|
|||
Prime mortgage, including option ARMs
|
107,723
|
|
|
71,491
|
|
|
61,597
|
|
|||
Subprime mortgage
|
4,434
|
|
|
6,257
|
|
|
7,687
|
|
|||
Other
|
436
|
|
|
511
|
|
|
588
|
|
|||
Total average loans owned
|
159,809
|
|
|
132,669
|
|
|
132,241
|
|
|||
|
|
|
|
|
|
||||||
PCI loans
|
|
|
|
|
|
||||||
Period-end loans owned
|
|
|
|
|
|
||||||
Home equity
|
14,989
|
|
|
17,095
|
|
|
18,927
|
|
|||
Prime mortgage
|
8,893
|
|
|
10,220
|
|
|
12,038
|
|
|||
Subprime mortgage
|
3,263
|
|
|
3,673
|
|
|
4,175
|
|
|||
Option ARMs
|
13,853
|
|
|
15,708
|
|
|
17,915
|
|
|||
Total period-end loans owned
|
40,998
|
|
|
46,696
|
|
|
53,055
|
|
|||
Average loans owned
|
|
|
|
|
|
||||||
Home equity
|
16,045
|
|
|
18,030
|
|
|
19,950
|
|
|||
Prime mortgage
|
9,548
|
|
|
11,257
|
|
|
12,909
|
|
|||
Subprime mortgage
|
3,442
|
|
|
3,921
|
|
|
4,416
|
|
|||
Option ARMs
|
14,711
|
|
|
16,794
|
|
|
19,236
|
|
|||
Total average loans owned
|
43,746
|
|
|
50,002
|
|
|
56,511
|
|
|||
|
|
|
|
|
|
||||||
Total Mortgage Banking
|
|
|
|
|
|
||||||
Period-end loans owned
|
|
|
|
|
|
||||||
Home equity
|
58,734
|
|
|
67,994
|
|
|
76,790
|
|
|||
Prime mortgage, including option ARMs
|
157,107
|
|
|
106,342
|
|
|
95,166
|
|
|||
Subprime mortgage
|
6,995
|
|
|
8,756
|
|
|
11,279
|
|
|||
Other
|
398
|
|
|
477
|
|
|
551
|
|
|||
Total period-end loans owned
|
223,234
|
|
|
183,569
|
|
|
183,786
|
|
|||
Average loans owned
|
|
|
|
|
|
||||||
Home equity
|
63,261
|
|
|
72,440
|
|
|
82,319
|
|
|||
Prime mortgage, including option ARMs
|
131,982
|
|
|
99,542
|
|
|
93,742
|
|
|||
Subprime mortgage
|
7,876
|
|
|
10,178
|
|
|
12,103
|
|
|||
Other
|
436
|
|
|
511
|
|
|
588
|
|
|||
Total average loans owned
|
203,555
|
|
|
182,671
|
|
|
188,752
|
|
(a)
|
Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value.
|
Credit data and quality statistics
|
|
|
|
|
|||||||
As of or for the year ended December 31,
|
|
|
|
|
|
||||||
(in millions, except ratios)
|
2015
|
|
|
2014
|
|
|
2013
|
||||
Net charge-offs/(recoveries), excluding PCI loans
(a)
|
|
|
|
|
|
||||||
Home equity
|
$
|
283
|
|
|
$
|
473
|
|
|
$
|
966
|
|
Prime mortgage, including option ARMs
|
48
|
|
|
28
|
|
|
53
|
|
|||
Subprime mortgage
|
(53
|
)
|
|
(27
|
)
|
|
90
|
|
|||
Other
|
7
|
|
|
9
|
|
|
10
|
|
|||
Total net charge-offs/(recoveries), excluding PCI loans
|
285
|
|
|
483
|
|
|
1,119
|
|
|||
Net charge-off/(recovery) rate, excluding PCI loans
|
|
|
|
|
|
||||||
Home equity
|
0.60
|
%
|
|
0.87
|
%
|
|
1.55
|
%
|
|||
Prime mortgage, including option ARMs
|
0.04
|
|
|
0.04
|
|
|
0.09
|
|
|||
Subprime mortgage
|
(1.22
|
)
|
|
(0.43
|
)
|
|
1.17
|
|
|||
Other
|
1.61
|
|
|
1.76
|
|
|
1.70
|
|
|||
Total net charge-off/(recovery) rate, excluding PCI loans
|
0.18
|
|
|
0.37
|
|
|
0.85
|
|
|||
Net charge-off/(recovery) rate – reported
(a)
|
|
|
|
|
|
||||||
Home equity
|
0.45
|
|
|
0.65
|
|
|
1.17
|
|
|||
Prime mortgage, including option ARMs
|
0.04
|
|
|
0.03
|
|
|
0.06
|
|
|||
Subprime mortgage
|
(0.68
|
)
|
|
(0.27
|
)
|
|
0.74
|
|
|||
Other
|
1.61
|
|
|
1.76
|
|
|
1.70
|
|
|||
Total net charge-off/(recovery) rate – reported
|
0.14
|
|
|
0.27
|
|
|
0.59
|
|
|||
|
|
|
|
|
|
||||||
30+ day delinquency rate, excluding PCI loans
(b)(c)
|
1.57
|
|
|
2.61
|
|
|
3.55
|
|
|||
Allowance for loan losses, excluding PCI loans
|
$
|
1,588
|
|
|
$
|
2,188
|
|
|
$
|
2,588
|
|
Allowance for PCI loans
(a)
|
2,742
|
|
|
3,325
|
|
|
4,158
|
|
|||
Allowance for loan losses
|
4,330
|
|
|
5,513
|
|
|
6,746
|
|
|||
Nonperforming assets
(d)(e)
|
4,971
|
|
|
6,175
|
|
|
7,438
|
|
|||
Allowance for loan losses to period-end loans retained
|
1.94
|
%
|
|
3.01
|
%
|
|
3.68
|
%
|
|||
Allowance for loan losses to period-end loans retained, excluding PCI loans
|
0.87
|
|
|
1.60
|
|
|
1.99
|
|
(a)
|
Net charge-offs and the net charge-off rates excluded $208 million, $533 million and $53 million of write-offs in the PCI portfolio for the years ended
December 31, 2015
,
2014
and 2013, 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 130–132
.
|
(b)
|
At
December 31, 2015
,
2014
and 2013, excluded mortgage loans insured by U.S. government agencies of $8.4 billion $9.7 billion and $9.6 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 14 which summarizes loan delinquency information.
|
(c)
|
The 30+ day delinquency rate for PCI loans was 11.21%, 13.33% and 15.31% at
December 31, 2015
,
2014
and 2013, respectively.
|
(d)
|
At
December 31, 2015
,
2014
and 2013, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $6.3 billion, $7.8 billion and $8.4 billion, respectively, that are 90 or more days past due and (2) REO insured by U.S. government agencies of $343 million, $462 million and $2.0 billion, 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 all of the pools are performing.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
89
|
Business metrics
|
|
|
|
|
|
|||||
As of or for the year ended December 31,
|
|
|
|
|
|
|||||
(in billions, except ratios)
|
2015
|
|
|
2014
|
|
|
2013
|
|||
Mortgage origination volume by channel
|
|
|
|
|
|
|||||
Retail
|
$
|
36.1
|
|
|
$
|
29.5
|
|
|
77.0
|
|
Correspondent
|
70.3
|
|
|
48.5
|
|
|
88.5
|
|
||
Total mortgage origination volume
(a)
|
106.4
|
|
|
78.0
|
|
|
165.5
|
|
||
|
|
|
|
|
|
|||||
Total loans serviced (period-end)
|
910.1
|
|
|
948.8
|
|
|
1,017.2
|
|
||
Third-party mortgage loans serviced (period-end)
|
674.0
|
|
|
751.5
|
|
|
815.5
|
|
||
Third-party mortgage loans serviced (average)
|
715.4
|
|
|
784.6
|
|
|
837.3
|
|
||
MSR carrying value (period-end)
|
6.6
|
|
|
7.4
|
|
|
9.6
|
|
||
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)
|
0.98
|
%
|
|
0.98
|
%
|
|
1.18
|
%
|
||
Ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average)
|
0.35
|
|
|
0.36
|
|
|
0.40
|
|
||
MSR revenue multiple
(b)
|
2.80
|
x
|
|
2.72
|
x
|
|
2.95x
|
|
(a)
|
Firmwide mortgage origination volume was $115.2 billion, $83.3 billion and $176.4. billion for the years ended
December 31, 2015
,
2014
and 2013, respectively.
|
(b)
|
Represents the ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) divided by the ratio of loan servicing-related revenue to third-party mortgage loans serviced (average).
|
90
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Selected income statement data
|
|||||||||||
As of or for the year
ended December 31,
(in millions, except ratios)
|
2015
|
|
2014
|
|
2013
|
||||||
Revenue
|
|
|
|
|
|
||||||
Card income
|
$
|
3,769
|
|
|
$
|
4,173
|
|
|
$
|
4,289
|
|
All other income
|
1,836
|
|
|
993
|
|
|
1,041
|
|
|||
Noninterest revenue
|
5,605
|
|
|
5,166
|
|
|
5,330
|
|
|||
Net interest income
|
13,415
|
|
|
13,150
|
|
|
13,559
|
|
|||
Total net revenue
|
19,020
|
|
|
18,316
|
|
|
18,889
|
|
|||
|
|
|
|
|
|
||||||
Provision for credit losses
|
3,495
|
|
|
3,432
|
|
|
2,669
|
|
|||
|
|
|
|
|
|
||||||
Noninterest expense
(a)
|
8,386
|
|
|
8,176
|
|
|
8,078
|
|
|||
Income before income tax expense
|
7,139
|
|
|
6,708
|
|
|
8,142
|
|
|||
Net income
|
$
|
4,430
|
|
|
$
|
4,074
|
|
|
$
|
4,907
|
|
|
|
|
|
|
|
||||||
Return on common equity
|
23
|
%
|
|
21
|
%
|
|
31
|
%
|
|||
Overhead ratio
|
44
|
|
|
45
|
|
|
43
|
|
|||
Equity (period-end and average)
|
$
|
18,500
|
|
|
$
|
19,000
|
|
|
$
|
15,500
|
|
(a)
|
Included operating lease depreciation expense of $1.4 billion, $1.2 billion and $972 million for the years ended December 31, 2015, 2014 and 2013, respectively.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
91
|
Selected metrics
|
|||||||||||
As of or for the year
ended December 31,
(in millions, except ratios and where otherwise noted)
|
2015
|
|
2014
|
|
2013
|
||||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
||||||
Loans:
|
|
|
|
|
|
||||||
Credit Card
|
$
|
131,463
|
|
|
$
|
131,048
|
|
|
$
|
127,791
|
|
Auto
|
60,255
|
|
|
54,536
|
|
|
52,757
|
|
|||
Student
|
8,176
|
|
|
9,351
|
|
|
10,541
|
|
|||
Total loans
|
$
|
199,894
|
|
|
$
|
194,935
|
|
|
$
|
191,089
|
|
Auto operating lease assets
|
9,182
|
|
|
6,690
|
|
|
5,512
|
|
|||
Selected balance sheet
data (average)
|
|
|
|
|
|
||||||
Total assets
|
$
|
206,765
|
|
|
$
|
202,609
|
|
|
$
|
198,265
|
|
Loans:
|
|
|
|
|
|
||||||
Credit Card
|
125,881
|
|
|
125,113
|
|
|
123,613
|
|
|||
Auto
|
56,487
|
|
|
52,961
|
|
|
50,748
|
|
|||
Student
|
8,763
|
|
|
9,987
|
|
|
11,049
|
|
|||
Total loans
|
$
|
191,131
|
|
|
$
|
188,061
|
|
|
$
|
185,410
|
|
Auto operating lease assets
|
7,807
|
|
|
6,106
|
|
|
5,102
|
|
|||
Business metrics
|
|
|
|
|
|
||||||
Credit Card, excluding Commercial Card
|
|
|
|
|
|
||||||
Sales volume (in billions)
|
$
|
495.9
|
|
|
$
|
465.6
|
|
|
$
|
419.5
|
|
New accounts opened
|
8.7
|
|
|
8.8
|
|
|
7.3
|
|
|||
Open accounts
|
59.3
|
|
|
64.6
|
|
|
65.3
|
|
|||
Accounts with sales activity
|
33.8
|
|
|
34.0
|
|
|
32.3
|
|
|||
% of accounts acquired online
|
67
|
%
|
|
56
|
%
|
|
55
|
%
|
|||
Commerce Solutions
|
|
|
|
|
|
||||||
Merchant processing volume (in billions)
|
$
|
949.3
|
|
|
$
|
847.9
|
|
|
$
|
750.1
|
|
Total transactions (in billions)
|
42.0
|
|
|
38.1
|
|
|
35.6
|
|
|||
Auto
|
|
|
|
|
|
||||||
Loan and lease origination volume (in billions)
|
32.4
|
|
|
27.5
|
|
|
26.1
|
|
The following are brief descriptions of selected business metrics within Card, Commerce Solutions & Auto.
|
Card Services
includes the Credit Card and Commerce Solutions businesses.
|
Commerce Solutions
is a business that primarily processes transactions for merchants.
|
Total transactions
– Number of transactions and authorizations processed for merchants.
|
Sales volume
– Dollar amount of cardmember purchases, net of returns.
|
Open accounts
– Cardmember accounts with charging privileges.
|
Accounts with sales activity
–
represents the number of cardmember accounts with a sales transaction within the past month.
|
Auto origination volume
– Dollar amount of auto loans and leases originated.
|
92
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Selected metrics
|
||||||||||||
As of or for the year
ended December 31,
(in millions, except ratios) |
|
2015
|
|
2014
|
|
2013
|
||||||
Credit data and quality statistics
|
|
|
|
|
|
|
||||||
Net charge-offs:
|
|
|
|
|
|
|
||||||
Credit Card
|
|
$
|
3,122
|
|
|
$
|
3,429
|
|
|
$
|
3,879
|
|
Auto
|
|
214
|
|
|
181
|
|
|
158
|
|
|||
Student
|
|
210
|
|
|
375
|
|
|
333
|
|
|||
Total net charge-offs
|
|
$
|
3,546
|
|
|
$
|
3,985
|
|
|
$
|
4,370
|
|
Net charge-off rate:
|
|
|
|
|
|
|
||||||
Credit Card
(a)
|
|
2.51
|
%
|
|
2.75
|
%
|
|
3.14
|
%
|
|||
Auto
|
|
0.38
|
|
|
0.34
|
|
|
0.31
|
|
|||
Student
|
|
2.40
|
|
|
3.75
|
|
|
3.01
|
|
|||
Total net charge-off rate
|
|
1.87
|
|
|
2.12
|
|
|
2.36
|
|
|||
Delinquency rates
|
|
|
|
|
|
|
||||||
30+ day delinquency rate:
|
|
|
|
|
|
|
||||||
Credit Card
(b)
|
|
1.43
|
|
|
1.44
|
|
|
1.67
|
|
|||
Auto
|
|
1.35
|
|
|
1.23
|
|
|
1.15
|
|
|||
Student
(c)
|
|
1.81
|
|
|
2.35
|
|
|
2.56
|
|
|||
Total 30+ day delinquency rate
|
|
1.42
|
|
|
1.42
|
|
|
1.58
|
|
|||
90+ day delinquency rate – Credit Card
(b)
|
|
0.72
|
|
|
0.70
|
|
|
0.80
|
|
|||
Nonperforming assets
(d)
|
|
$
|
394
|
|
|
$
|
411
|
|
|
$
|
280
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
||||||
Credit Card
|
|
$
|
3,434
|
|
|
$
|
3,439
|
|
|
$
|
3,795
|
|
Auto & Student
|
|
698
|
|
|
749
|
|
|
953
|
|
|||
Total allowance for loan losses
|
|
$
|
4,132
|
|
|
$
|
4,188
|
|
|
$
|
4,748
|
|
Allowance for loan losses to period-end loans:
|
|
|
|
|
|
|
||||||
Credit Card
(b)
|
|
2.61
|
%
|
|
2.69
|
%
|
|
2.98
|
%
|
|||
Auto & Student
|
|
1.02
|
|
|
1.17
|
|
|
1.51
|
|
|||
Total allowance for loan losses to period-end loans
|
|
2.07
|
|
|
2.18
|
|
|
2.49
|
|
(a)
|
Average credit card loans included loans held-for-sale of $1.6 billion, $509 million and $95 million for the years ended December 31, 2015, 2014 and 2013, respectively. These amounts are excluded when calculating the net charge-off rate.
|
(b)
|
Period-end credit card loans included loans held-for-sale of $76 million,$3.0 billion and $326 million at December 31, 2015, 2014 and 2013, 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 $526 million, $654 million and $737 million at December 31, 2015, 2014 and 2013, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
|
(d)
|
Nonperforming assets excluded student loans insured by U.S. government agencies under the FFELP of $290 million, $367 million and $428 million at December 31, 2015, 2014 and 2013, respectively, that are 90 or more days past due. These amounts have been excluded from nonaccrual loans based upon the government guarantee.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
93
|
CORPORATE & INVESTMENT BANK
|
The Corporate & Investment Bank, which consists of Banking and Markets & Investor Services, offers a broad suite of investment banking, market-making, prime brokerage, and treasury and securities products and services to a global client base of corporations, investors, financial institutions, government and municipal entities. Banking offers a full range of investment banking products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, as well as loan origination and syndication. Banking also includes Treasury Services, which provides transaction services, consisting of cash management and liquidity solutions. Markets & Investor Services is a global market-maker in cash securities and derivative instruments, and also offers sophisticated risk management solutions, prime brokerage, and research. Markets & Investor Services also includes Securities Services, a leading global custodian which provides custody, fund accounting and administration, and securities lending products principally for asset managers, insurance companies and public and private investment funds.
|
Selected income statement data
|
|
|
|||||||||
Year ended December 31,
|
|
||||||||||
(in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Revenue
|
|
|
|
|
|
||||||
Investment banking fees
|
$
|
6,736
|
|
|
$
|
6,570
|
|
|
$
|
6,331
|
|
Principal transactions
(a)
|
9,905
|
|
|
8,947
|
|
|
9,289
|
|
|||
Lending- and deposit-related fees
|
1,573
|
|
|
1,742
|
|
|
1,884
|
|
|||
Asset management, administration and commissions
|
4,467
|
|
|
4,687
|
|
|
4,713
|
|
|||
All other income
|
1,012
|
|
|
1,474
|
|
|
1,519
|
|
|||
Noninterest revenue
|
23,693
|
|
|
23,420
|
|
|
23,736
|
|
|||
Net interest income
|
9,849
|
|
|
11,175
|
|
|
10,976
|
|
|||
Total net revenue
(b)
|
33,542
|
|
|
34,595
|
|
|
34,712
|
|
|||
|
|
|
|
|
|
||||||
Provision for credit losses
|
332
|
|
|
(161
|
)
|
|
(232
|
)
|
|||
|
|
|
|
|
|
||||||
Noninterest expense
|
|
|
|
|
|
||||||
Compensation expense
|
9,973
|
|
|
10,449
|
|
|
10,835
|
|
|||
Noncompensation expense
|
11,388
|
|
|
12,824
|
|
|
10,909
|
|
|||
Total noninterest expense
|
21,361
|
|
|
23,273
|
|
|
21,744
|
|
|||
Income before income tax expense
|
11,849
|
|
|
11,483
|
|
|
13,200
|
|
|||
Income tax expense
|
3,759
|
|
|
4,575
|
|
|
4,350
|
|
|||
Net income
|
$
|
8,090
|
|
|
$
|
6,908
|
|
|
$
|
8,850
|
|
(a)
|
Included FVA and debt valuation adjustment (“DVA”) on OTC derivatives and structured notes, measured at fair value. FVA and
DVA gains/(losses) were $687 million and $468 million and $(1.9) billion for the years ended
December 31, 2015
, 2014 and 2013, respectively.
|
(b)
|
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 $1.7 billion, $1.6 billion and $1.5 billion for the years ended December 31, 2015, 2014 and 2013, respectively.
|
Selected income statement data
|
|
|
|||||||||
Year ended December 31,
|
|
||||||||||
(in millions, except ratios)
|
2015
|
|
2014
|
|
2013
|
||||||
Financial ratios
|
|
|
|
|
|
||||||
Return on common equity
|
12
|
%
|
|
10
|
%
|
|
15
|
%
|
|||
Overhead ratio
|
64
|
|
|
67
|
|
|
63
|
|
|||
Compensation expense as
percentage of total net
revenue
|
30
|
|
|
30
|
|
|
31
|
|
|||
Revenue by business
|
|
|
|
|
|
||||||
Investment banking
(a)
|
6,376
|
|
|
6,122
|
|
|
5,922
|
|
|||
Treasury Services
(b)
|
3,631
|
|
|
3,728
|
|
|
3,693
|
|
|||
Lending
(b)
|
1,461
|
|
|
1,547
|
|
|
2,147
|
|
|||
Total Banking
(a)
|
11,468
|
|
|
11,397
|
|
|
11,762
|
|
|||
Fixed Income Markets
(a)
|
12,592
|
|
|
14,075
|
|
|
15,976
|
|
|||
Equity Markets
(a)
|
5,694
|
|
|
5,044
|
|
|
4,994
|
|
|||
Securities Services
|
3,777
|
|
|
4,351
|
|
|
4,100
|
|
|||
Credit Adjustments & Other
(c)
|
11
|
|
|
(272
|
)
|
|
(2,120
|
)
|
|||
Total Markets & Investor
Service
(a)
|
22,074
|
|
|
23,198
|
|
|
22,950
|
|
|||
Total net revenue
|
$
|
33,542
|
|
|
$
|
34,595
|
|
|
$
|
34,712
|
|
(a)
|
Effective in 2015, Investment banking revenue (formerly Investment banking fees) incorporates all revenue associated with investment banking activities, and is reported net of investment banking revenue shared with other lines of business; previously such shared revenue had been reported in Fixed Income Markets and Equity Markets. Prior period amounts have been revised to conform with the current period presentation.
|
(b)
|
Effective in 2015, Trade Finance revenue was transferred from Treasury Services to Lending. Prior period amounts have been revised to conform with the current period presentation.
|
(c)
|
Consists primarily of credit valuation adjustments (“CVA”) managed by the credit portfolio group, and FVA and DVA on OTC derivatives and structured notes. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.
|
94
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
95
|
Selected metrics
|
|
|
|
|
|||||||
As of or for the year ended
December 31,
(in millions, except headcount)
|
|
||||||||||
2015
|
|
2014
|
|
2013
|
|||||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
||||||
Assets
|
$
|
748,691
|
|
|
$
|
861,466
|
|
|
$
|
843,248
|
|
Loans:
|
|
|
|
|
|
||||||
Loans retained
(a)
|
106,908
|
|
|
96,409
|
|
|
95,627
|
|
|||
Loans held-for-sale and loans at fair value
|
3,698
|
|
|
5,567
|
|
|
11,913
|
|
|||
Total loans
|
110,606
|
|
|
101,976
|
|
|
107,540
|
|
|||
Core Loans
|
110,084
|
|
|
100,772
|
|
|
101,376
|
|
|||
Equity
|
62,000
|
|
|
61,000
|
|
|
56,500
|
|
|||
Selected balance sheet data (average)
|
|
|
|
|
|
||||||
Assets
|
$
|
824,208
|
|
|
$
|
854,712
|
|
|
$
|
859,071
|
|
Trading assets-debt and equity instruments
|
302,514
|
|
|
317,535
|
|
|
321,585
|
|
|||
Trading assets-derivative receivables
|
67,263
|
|
|
64,833
|
|
|
70,353
|
|
|||
Loans:
|
|
|
|
|
|
||||||
Loans retained
(a)
|
98,331
|
|
|
95,764
|
|
|
104,864
|
|
|||
Loans held-for-sale and loans at fair value
|
4,572
|
|
|
7,599
|
|
|
5,158
|
|
|||
Total loans
|
102,903
|
|
|
103,363
|
|
|
110,022
|
|
|||
Core Loans
|
99,231
|
|
|
102,604
|
|
|
108,199
|
|
|||
Equity
|
62,000
|
|
|
61,000
|
|
|
56,500
|
|
|||
|
|
|
|
|
|
||||||
Headcount
(b)
|
49,067
|
|
|
50,965
|
|
|
52,082
|
|
(a)
|
Loans retained includes credit portfolio loans, loans held by consolidated Firm-administered multi-seller conduits, trade finance loans, other held-for-investment loans and overdrafts.
|
(b)
|
Effective in 2015, certain technology staff were transferred from CIB to CB; previously-reported headcount has been revised to conform with the current period presentation. As the related expense for these staff is not material, prior period expenses have not been revised. Prior to 2015, compensation expense related to this headcount was recorded in the CIB, with an allocation to CB (reported in noncompensation expense); commencing with 2015, such expense is recorded as compensation expense in CB and accordingly total noninterest expense related to this headcount in both CB and CIB remains unchanged.
|
Selected metrics
|
|
|
|
|
|
||||||
As of or for the year ended
December 31,
(in millions, except ratios)
|
|
||||||||||
2015
|
|
2014
|
|
2013
|
|||||||
Credit data and quality statistics
|
|
|
|
|
|
||||||
Net charge-offs/(recoveries)
|
$
|
(19
|
)
|
|
$
|
(12
|
)
|
|
$
|
(78
|
)
|
Nonperforming assets:
|
|
|
|
|
|
||||||
Nonaccrual loans:
|
|
|
|
|
|
||||||
Nonaccrual loans retained
(a)
|
428
|
|
|
110
|
|
|
163
|
|
|||
Nonaccrual loans
held-for-sale and loans at fair value
|
10
|
|
|
11
|
|
|
180
|
|
|||
Total nonaccrual loans
|
438
|
|
|
121
|
|
|
343
|
|
|||
Derivative receivables
|
204
|
|
|
275
|
|
|
415
|
|
|||
Assets acquired in loan satisfactions
|
62
|
|
|
67
|
|
|
80
|
|
|||
Total nonperforming assets
|
704
|
|
|
463
|
|
|
838
|
|
|||
Allowance for credit losses:
|
|
|
|
|
|
||||||
Allowance for loan losses
|
1,258
|
|
|
1,034
|
|
|
1,096
|
|
|||
Allowance for lending-related commitments
|
569
|
|
|
439
|
|
|
525
|
|
|||
Total allowance for credit losses
|
1,827
|
|
|
1,473
|
|
|
1,621
|
|
|||
Net charge-off/(recovery) rate
|
(0.02
|
)%
|
|
(0.01
|
)%
|
|
0.07
|
%
|
|||
Allowance for loan losses to period-end loans
retained
|
1.18
|
|
|
1.07
|
|
|
1.15
|
|
|||
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits
(b)
|
1.88
|
|
|
1.82
|
|
|
2.02
|
|
|||
Allowance for loan losses to nonaccrual loans
retained
(a)
|
294
|
|
|
940
|
|
|
672
|
|
|||
Nonaccrual loans to total period-end loans
|
0.40
|
|
|
0.12
|
|
|
0.32
|
|
(a)
|
Allowance for loan losses of $177 million, $18 million and $51 million were held against these nonaccrual loans at December 31, 2015, 2014 and 2013, respectively.
|
(b)
|
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
|
|
|
|
|
|
||||||
|
Year ended December 31,
|
||||||||||
(in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Advisory
|
$
|
2,133
|
|
|
$
|
1,627
|
|
|
$
|
1,315
|
|
Equity underwriting
|
1,434
|
|
|
1,571
|
|
|
1,499
|
|
|||
Debt underwriting
|
3,169
|
|
|
3,372
|
|
|
3,517
|
|
|||
Total investment banking fees
|
$
|
6,736
|
|
|
$
|
6,570
|
|
|
$
|
6,331
|
|
96
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Business metrics
|
|
|
|
|
|||||||
As of or for the year ended
December 31,
(in millions, except where otherwise noted)
|
2015
|
|
2014
|
|
2013
|
||||||
Market risk-related revenue – trading loss days
(a)
|
9
|
|
|
9
|
|
|
0
|
|
|||
Assets under custody (“AUC”) by asset class (period-end) in billions:
|
|
|
|
|
|
||||||
Fixed Income
|
$
|
12,042
|
|
|
$
|
12,328
|
|
|
$
|
11,903
|
|
Equity
|
6,194
|
|
|
6,524
|
|
|
6,913
|
|
|||
Other
(b)
|
1,707
|
|
|
1,697
|
|
|
1,669
|
|
|||
Total AUC
|
$
|
19,943
|
|
|
$
|
20,549
|
|
|
$
|
20,485
|
|
Client deposits and other third party liabilities (average)
(c)
|
$
|
395,297
|
|
|
$
|
417,369
|
|
|
$
|
383,667
|
|
Trade finance loans (period-end)
|
19,255
|
|
|
25,713
|
|
|
30,752
|
|
(a)
|
Market risk-related revenue is defined as the change in value of: principal transactions revenue; trading-related net interest income; brokerage commissions, underwriting fees or other revenue; and revenue from syndicated lending facilities that the Firm intends to distribute; gains and losses from DVA and FVA are excluded. Market risk-related revenue–trading loss days represent the number of days for which the CIB posted losses under this measure. The loss days determined under this measure differ from the loss days that are determined based on the disclosure of market risk-related gains and losses for the Firm in the value-at-risk (“VaR”) back-testing discussion on pages 135–137.
|
(b)
|
Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts.
|
(c)
|
Client deposits and other third party liabilities pertain to the Treasury Services and Securities Services businesses.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
97
|
International metrics
|
|
|
|
|
|||||||
Year ended December 31,
|
|
||||||||||
(in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Total net revenue
(a)
|
|
|
|
|
|
||||||
Europe/Middle East/Africa
|
$
|
10,894
|
|
|
$
|
11,598
|
|
|
$
|
10,689
|
|
Asia/Pacific
|
4,901
|
|
|
4,698
|
|
|
4,736
|
|
|||
Latin America/Caribbean
|
1,096
|
|
|
1,179
|
|
|
1,340
|
|
|||
Total international net revenue
|
16,891
|
|
|
17,475
|
|
|
16,765
|
|
|||
North America
|
16,651
|
|
|
17,120
|
|
|
17,947
|
|
|||
Total net revenue
|
$
|
33,542
|
|
|
$
|
34,595
|
|
|
$
|
34,712
|
|
|
|
|
|
|
|
||||||
Loans (period-end)
(a)
|
|
|
|
|
|
||||||
Europe/Middle East/Africa
|
$
|
24,622
|
|
|
$
|
27,155
|
|
|
$
|
29,392
|
|
Asia/Pacific
|
17,108
|
|
|
19,992
|
|
|
22,151
|
|
|||
Latin America/Caribbean
|
8,609
|
|
|
8,950
|
|
|
8,362
|
|
|||
Total international loans
|
50,339
|
|
|
56,097
|
|
|
59,905
|
|
|||
North America
|
56,569
|
|
|
40,312
|
|
|
35,722
|
|
|||
Total loans
|
$
|
106,908
|
|
|
$
|
96,409
|
|
|
$
|
95,627
|
|
|
|
|
|
|
|
||||||
Client deposits and other third-party liabilities (average)
(a)
|
|
|
|
|
|
||||||
Europe/Middle East/Africa
|
$
|
141,062
|
|
|
$
|
152,712
|
|
|
$
|
143,807
|
|
Asia/Pacific
|
67,111
|
|
|
66,933
|
|
|
54,428
|
|
|||
Latin America/Caribbean
|
23,070
|
|
|
22,360
|
|
|
15,301
|
|
|||
Total international
|
$
|
231,243
|
|
|
$
|
242,005
|
|
|
$
|
213,536
|
|
North America
|
164,054
|
|
|
175,364
|
|
|
170,131
|
|
|||
Total client deposits and other third-party liabilities
|
$
|
395,297
|
|
|
$
|
417,369
|
|
|
$
|
383,667
|
|
|
|
|
|
|
|
||||||
AUC (period-end) (in billions)
(a)
|
|
|
|
|
|
||||||
North America
|
$
|
12,034
|
|
|
$
|
11,987
|
|
|
$
|
11,299
|
|
All other regions
|
7,909
|
|
|
8,562
|
|
|
9,186
|
|
|||
Total AUC
|
$
|
19,943
|
|
|
$
|
20,549
|
|
|
$
|
20,485
|
|
(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.
|
98
|
|
JPMorgan Chase & Co./2015 Annual Report
|
COMMERCIAL BANKING
|
Commercial Banking delivers extensive industry knowledge, local
expertise and dedicated service to U.S. and U.S. multinational clients, including corporations, municipalities, financial institutions and nonprofit entities with annual revenue generally ranging from $20 million to $2 billion. In addition, CB provides financing to real estate investors and owners. Partnering with the Firm’s other businesses, CB provides comprehensive financial solutions, including lending, treasury services, investment banking and asset management to meet its clients’ domestic and international financial needs.
|
Selected income statement data
|
|
|
|
|
|||||||
Year ended December 31,
(in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Revenue
|
|
|
|
|
|
||||||
Lending- and deposit-related fees
|
$
|
944
|
|
|
$
|
978
|
|
|
$
|
1,033
|
|
Asset management, administration and commissions
|
88
|
|
|
92
|
|
|
116
|
|
|||
All other income
(a)
|
1,333
|
|
|
1,279
|
|
|
1,149
|
|
|||
Noninterest revenue
|
2,365
|
|
|
2,349
|
|
|
2,298
|
|
|||
Net interest income
|
4,520
|
|
|
4,533
|
|
|
4,794
|
|
|||
Total net revenue
(b)
|
6,885
|
|
|
6,882
|
|
|
7,092
|
|
|||
|
|
|
|
|
|
||||||
Provision for credit losses
|
442
|
|
|
(189
|
)
|
|
85
|
|
|||
|
|
|
|
|
|
||||||
Noninterest expense
|
|
|
|
|
|
||||||
Compensation expense
|
1,238
|
|
|
1,203
|
|
|
1,115
|
|
|||
Noncompensation expense
|
1,643
|
|
|
1,492
|
|
|
1,495
|
|
|||
Total noninterest expense
|
2,881
|
|
|
2,695
|
|
|
2,610
|
|
|||
|
|
|
|
|
|
||||||
Income before income tax expense
|
3,562
|
|
|
4,376
|
|
|
4,397
|
|
|||
Income tax expense
|
1,371
|
|
|
1,741
|
|
|
1,749
|
|
|||
Net income
|
$
|
2,191
|
|
|
$
|
2,635
|
|
|
$
|
2,648
|
|
(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 activities of
$493 million
,
$462 million
and
$407 million
for the years ended
December 31, 2015
,
2014
and
2013
, respectively.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
99
|
CB product revenue consists of the following:
|
||||
Lending
includes a variety of financing alternatives, which are primarily provided on a secured basis; collateral includes receivables, inventory, equipment, real estate or other assets. Products include term loans, revolving lines of credit, bridge financing, asset-based structures, leases, and standby letters of credit.
|
||||
Treasury services
includes revenue from a broad range of products and services that enable CB clients to manage payments and receipts, as well as invest and manage funds.
|
||||
Investment banking
includes revenue from a range of products providing CB clients with sophisticated capital-raising alternatives, as well as balance sheet and risk management tools through advisory, equity underwriting, and loan syndications. Revenue from Fixed Income and Equity Markets products used by CB clients is also included. Investment banking revenue, gross, represents total revenue related to investment banking products sold to CB clients.
|
||||
Other
product revenue primarily includes tax-equivalent adjustments generated from Community Development Banking activities and certain income derived from principal transactions.
|
CB is divided into four primary client segments: Middle Market Banking, Corporate Client Banking, Commercial Term Lending, and Real Estate Banking.
|
||||
Middle Market Banking
covers corporate, municipal and nonprofit clients, with annual revenue generally ranging between $20 million and $500 million.
|
||||
Corporate Client Banking
covers clients with annual revenue generally ranging between $500 million and $2 billion and focuses on clients that have broader investment banking needs.
|
||||
Commercial Term Lending
primarily provides term financing to real estate investors/owners for multifamily properties as well as office, retail and industrial properties.
|
||||
Real Estate Banking
provides full-service banking to investors and developers of institutional-grade real estate investment properties.
|
||||
Other
primarily includes lending and investment-related activities within the Community Development Banking business.
|
Selected metrics
|
|
|
|
|
|||||||
Year ended December 31,
(in millions, except ratios)
|
2015
|
|
2014
|
|
2013
|
||||||
Revenue by product
|
|
|
|
|
|
||||||
Lending
(a)
|
$
|
3,429
|
|
|
$
|
3,358
|
|
|
$
|
3,730
|
|
Treasury services
(a)
|
2,581
|
|
|
2,681
|
|
|
2,649
|
|
|||
Investment banking
|
730
|
|
|
684
|
|
|
575
|
|
|||
Other
(a)
|
145
|
|
|
159
|
|
|
138
|
|
|||
Total Commercial Banking net revenue
|
$
|
6,885
|
|
|
$
|
6,882
|
|
|
$
|
7,092
|
|
|
|
|
|
|
|
||||||
Investment banking revenue, gross
|
$
|
2,179
|
|
|
$
|
1,986
|
|
|
$
|
1,676
|
|
|
|
|
|
|
|
||||||
Revenue by client segment
|
|
|
|
|
|
||||||
Middle Market Banking
(b)
|
$
|
2,742
|
|
|
$
|
2,791
|
|
|
$
|
3,015
|
|
Corporate Client Banking
(b)
|
2,012
|
|
|
1,982
|
|
|
1,911
|
|
|||
Commercial Term Lending
|
1,275
|
|
|
1,252
|
|
|
1,239
|
|
|||
Real Estate Banking
|
494
|
|
|
495
|
|
|
561
|
|
|||
Other
|
362
|
|
|
362
|
|
|
366
|
|
|||
Total Commercial Banking net revenue
|
$
|
6,885
|
|
|
$
|
6,882
|
|
|
$
|
7,092
|
|
|
|
|
|
|
|
||||||
Financial ratios
|
|
|
|
|
|
||||||
Return on common equity
|
15
|
%
|
|
18
|
%
|
|
19
|
%
|
|||
Overhead ratio
|
42
|
|
|
39
|
|
|
37
|
|
(a)
|
Effective in 2015, Commercial Card and Chase Commerce Solutions product revenue was transferred from Lending and Other, respectively, to Treasury Services. Prior period amounts were revised to conform with the current period presentation.
|
(b)
|
Effective in 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.
|
100
|
|
JPMorgan Chase & Co./2015 Annual Report
|
(a)
|
Effective in 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.
|
(b)
|
Effective in 2015, certain technology staff were transferred from CIB to CB; previously-reported headcount has been revised to conform with the current period presentation. As the related expense for these staff is not material, prior period expenses have not been revised. Prior to 2015, compensation expense related to this headcount was recorded in the CIB, with an allocation to CB (reported in noncompensation expense); commencing with 2015, such expense is recorded as compensation expense in CB and accordingly total noninterest expense related to this headcount in both CB and CIB remains unchanged.
|
Selected metrics (continued)
|
|
|
|
|
|||||||
As of or for the year ended December 31, (in millions, except ratios)
|
2015
|
|
2014
|
|
2013
|
||||||
Credit data and quality statistics
|
|
|
|
|
|
||||||
Net charge-offs/(recoveries)
|
$
|
21
|
|
|
$
|
(7
|
)
|
|
$
|
43
|
|
Nonperforming assets
|
|
|
|
|
|
||||||
Nonaccrual loans:
|
|
|
|
|
|
||||||
Nonaccrual loans retained
(a)
|
375
|
|
|
317
|
|
|
471
|
|
|||
Nonaccrual loans held-for-sale and loans at fair value
|
18
|
|
|
14
|
|
|
43
|
|
|||
Total nonaccrual loans
|
393
|
|
|
331
|
|
|
514
|
|
|||
|
|
|
|
|
|
||||||
Assets acquired in loan satisfactions
|
8
|
|
|
10
|
|
|
15
|
|
|||
Total nonperforming assets
|
401
|
|
|
341
|
|
|
529
|
|
|||
Allowance for credit losses:
|
|
|
|
|
|
||||||
Allowance for loan losses
|
2,855
|
|
|
2,466
|
|
|
2,669
|
|
|||
Allowance for lending-related commitments
|
198
|
|
|
165
|
|
|
142
|
|
|||
Total allowance for credit losses
|
3,053
|
|
|
2,631
|
|
|
2,811
|
|
|||
|
|
|
|
|
|
||||||
Net charge-off/(recovery) rate
(b)
|
0.01
|
%
|
|
—
|
|
|
0.03
|
%
|
|||
Allowance for loan losses to period-end loans
retained
|
1.71
|
|
|
1.67
|
|
|
1.97
|
|
|||
Allowance for loan losses to nonaccrual loans retained
(a)
|
761
|
|
|
778
|
|
|
567
|
|
|||
Nonaccrual loans to period-end total loans
|
0.23
|
|
|
0.22
|
|
|
0.37
|
|
(a)
|
An allowance for loan losses of
$64 million
,
$45 million
and
$81 million
was held against nonaccrual loans retained at
December 31, 2015
,
2014
and
2013
, respectively.
|
(b)
|
Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
101
|
ASSET MANAGEMENT
|
Asset Management, with client assets of $2.4 trillion, is a global leader in investment and wealth management. AM clients include institutions, high-net-worth individuals and retail investors in many major markets throughout the world. AM offers investment management across most major asset classes including equities, fixed income, alternatives and money market funds. AM also offers multi-asset investment management, providing solutions for a broad range of clients’ investment needs. For Global Wealth Management clients, AM also provides retirement products and services, brokerage and banking services including trusts and estates, loans, mortgages and deposits. The majority of AM’s client assets are in actively managed portfolios.
|
Selected income statement data
|
|
|
|||||||
Year ended December 31,
(in millions, except ratios
and headcount)
|
2015
|
2014
|
2013
|
||||||
Revenue
|
|
|
|
||||||
Asset management, administration and commissions
|
$
|
9,175
|
|
$
|
9,024
|
|
$
|
8,232
|
|
All other income
|
388
|
|
564
|
|
797
|
|
|||
Noninterest revenue
|
9,563
|
|
9,588
|
|
9,029
|
|
|||
Net interest income
|
2,556
|
|
2,440
|
|
2,376
|
|
|||
Total net revenue
|
12,119
|
|
12,028
|
|
11,405
|
|
|||
|
|
|
|
||||||
Provision for credit losses
|
4
|
|
4
|
|
65
|
|
|||
|
|
|
|
||||||
Noninterest expense
|
|
|
|
||||||
Compensation expense
|
5,113
|
|
5,082
|
|
4,875
|
|
|||
Noncompensation expense
|
3,773
|
|
3,456
|
|
3,141
|
|
|||
Total noninterest expense
|
8,886
|
|
8,538
|
|
8,016
|
|
|||
|
|
|
|
||||||
Income before income tax expense
|
3,229
|
|
3,486
|
|
3,324
|
|
|||
Income tax expense
|
1,294
|
|
1,333
|
|
1,241
|
|
|||
Net income
|
$
|
1,935
|
|
$
|
2,153
|
|
$
|
2,083
|
|
|
|
|
|
||||||
Revenue by line of business
|
|
|
|
||||||
Global Investment Management
|
$
|
6,301
|
|
$
|
6,327
|
|
$
|
5,951
|
|
Global Wealth Management
|
5,818
|
|
5,701
|
|
5,454
|
|
|||
Total net revenue
|
$
|
12,119
|
|
$
|
12,028
|
|
$
|
11,405
|
|
|
|
|
|
||||||
Financial ratios
|
|
|
|
||||||
Return on common equity
|
21
|
%
|
23
|
%
|
23
|
%
|
|||
Overhead ratio
|
73
|
|
71
|
|
70
|
|
|||
Pretax margin ratio:
|
|
|
|
||||||
Global Investment Management
|
31
|
|
31
|
|
32
|
|
|||
Global Wealth Management
|
22
|
|
27
|
|
26
|
|
|||
Asset Management
|
27
|
|
29
|
|
29
|
|
|||
|
|
|
|
||||||
Headcount
|
20,975
|
|
19,735
|
|
20,048
|
|
|||
|
|
|
|
||||||
Number of client advisors
|
2,778
|
|
2,836
|
2,962
|
|
102
|
|
JPMorgan Chase & Co./2015 Annual Report
|
AM’s lines of business consist of the following:
|
||||
Global Investment Management
provides comprehensive global investment services, including asset management, pension analytics, asset-liability management and active risk-budgeting strategies.
|
||||
Global Wealth Management
offers investment advice and wealth management, including investment management, capital markets and risk management, tax and estate planning, banking, lending and specialty-wealth advisory services.
|
AM’s client segments consist of the following:
|
||||
Private Banking
clients include high- and ultra-high-net-worth individuals, families, money managers, business owners and small corporations worldwide.
|
||||
Institutional
clients include both corporate and public institutions, endowments, foundations, nonprofit organizations and governments worldwide.
|
||||
Retail
clients include financial intermediaries and individual investors.
|
J.P. Morgan Asset Management has two high-level measures of its overall fund performance.
|
||||
•
Percentage of mutual fund assets under management in funds rated 4- or 5-star:
Mutual fund rating services rank funds based on their risk-adjusted performance over various periods. A 5-star rating is the best rating and represents the top 10% of industry-wide ranked funds. A 4-star rating represents the next 22.5% of industry-wide ranked funds. A 3-star rating represents the next 35% of industry-wide ranked funds. A 2-star rating represents the next 22.5% of industry-wide ranked funds. A 1-star rating is the worst rating and represents the bottom 10% of industry-wide ranked funds. The
“
overall Morningstar rating
”
is derived from a weighted average of the performance associated with a fund’s three-, five- and ten-year (if applicable) Morningstar Rating metrics. For U.S. domiciled funds, separate star ratings are given at the individual share class level. The Nomura
“
star rating
”
is based on three-year risk-adjusted performance only. Funds with fewer than three years of history are not rated and hence excluded from this analysis. All ratings, the assigned peer categories and the asset values used to derive this analysis are sourced from these fund rating providers mentioned in footnote (a). The data providers re-denominate the asset values into U.S. dollars. This % of AUM is based on star ratings at the share class level for U.S. domiciled funds, and at a
“
primary share class
”
level to represent the star rating of all other funds except for Japan where Nomura provides ratings at the fund level. The “primary share class”, as defined by Morningstar, denotes the share class recommended as being the best proxy for the portfolio and in most cases will be the most retail version (based upon annual management charge, minimum investment, currency and other factors). The performance data could have been different if all funds/accounts would have been included. Past performance is not indicative of future results.
|
||||
•
Percentage of mutual fund assets under management in funds ranked in the 1st or 2nd quartile (one, three and five years)
: All quartile rankings, the assigned peer categories and the asset values used to derive this analysis are sourced from the fund ranking providers mentioned in footnote (b). Quartile rankings are done on the net-of-fee absolute return of each fund. The data providers re-denominate the asset values into U.S. dollars. This % of AUM is based on fund performance and associated peer rankings at the share class level for U.S. domiciled funds, at a
“
primary share class” level to represent the quartile ranking of
the
U.K., Luxembourg and Hong Kong funds and at the fund level for all other funds. The
“
primary share class
”
, as defined by Morningstar, denotes the share class recommended as being the best proxy for the portfolio and in most cases will be the most retail version (based upon annual management charge, minimum investment, currency and other factors). Where peer group rankings given for a fund are in more than one “primary share class” territory both rankings are included to reflect local market competitiveness (applies to “Offshore Territories” and “HK SFC Authorized” funds only). The performance data could have been different if all funds/accounts would have been included. Past performance is not indicative of future results.
|
Selected metrics
|
|
|
|
||||||
As of or for the year ended December 31,
(in millions, except ranking data and ratios)
|
2015
|
2014
|
2013
|
||||||
% of JPM mutual fund assets rated as 4- or 5-star
(a)
|
53
|
%
|
52
|
%
|
49
|
%
|
|||
% of JPM mutual fund assets ranked in 1
st
or 2
nd
quartile:
(b)
|
|
|
|
||||||
1 year
|
62
|
|
72
|
|
68
|
|
|||
3 years
|
78
|
|
72
|
|
68
|
|
|||
5 years
|
80
|
|
76
|
|
69
|
|
|||
|
|
|
|
||||||
Selected balance sheet data (period-end)
|
|
|
|
||||||
Total assets
|
$
|
131,451
|
|
$
|
128,701
|
|
$
|
122,414
|
|
Loans
(c)
|
111,007
|
|
104,279
|
|
95,445
|
|
|||
Core loans
|
111,007
|
|
104,279
|
|
95,445
|
|
|||
Deposits
|
146,766
|
|
155,247
|
|
146,183
|
|
|||
Equity
|
9,000
|
|
9,000
|
|
9,000
|
|
|||
|
|
|
|
||||||
Selected balance sheet data (average)
|
|
|
|
||||||
Total assets
|
$
|
129,743
|
|
$
|
126,440
|
|
$
|
113,198
|
|
Loans
|
107,418
|
|
99,805
|
|
86,066
|
|
|||
Core loans
|
107,418
|
|
99,805
|
|
86,066
|
|
|||
Deposits
|
149,525
|
|
150,121
|
139,707
|
|
||||
Equity
|
9,000
|
|
9,000
|
|
9,000
|
|
|||
|
|
|
|
||||||
Credit data and quality statistics
|
|
|
|
||||||
Net charge-offs
|
$
|
12
|
|
$
|
6
|
|
$
|
40
|
|
Nonaccrual loans
|
218
|
|
218
|
|
167
|
|
|||
Allowance for credit losses:
|
|
|
|
||||||
Allowance for loan losses
|
266
|
|
271
|
|
278
|
|
|||
Allowance for lending-related commitments
|
5
|
|
5
|
|
5
|
|
|||
Total allowance for credit losses
|
271
|
|
276
|
|
283
|
|
|||
Net charge-off rate
|
0.01
|
%
|
0.01
|
%
|
0.05
|
%
|
|||
Allowance for loan losses to period-end loans
|
0.24
|
|
0.26
|
|
0.29
|
|
|||
Allowance for loan losses to nonaccrual loans
|
122
|
|
124
|
|
166
|
|
|||
Nonaccrual loans to period-end loans
|
0.20
|
|
0.21
|
|
0.17
|
|
(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 Global Investment Management 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 Global Investment Management 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
$26.6 billion
,
$22.1 billion
and
$18.9 billion
of prime mortgage loans reported in the Consumer, excluding credit card, loan portfolio at
December 31, 2015
,
2014
and
2013
, respectively.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
103
|
Client assets
|
|
|
|||||||
December 31,
(in billions)
|
2015
|
|
2014
|
|
2013
|
||||
Assets by asset class
|
|
|
|
||||||
Liquidity
|
$
|
464
|
|
$
|
461
|
|
$
|
451
|
|
Fixed income
|
342
|
|
359
|
|
330
|
|
|||
Equity
|
353
|
|
375
|
|
370
|
|
|||
Multi-asset and alternatives
|
564
|
|
549
|
|
447
|
|
|||
Total assets under management
|
1,723
|
|
1,744
|
|
1,598
|
|
|||
Custody/brokerage/
administration/deposits
|
627
|
|
643
|
|
745
|
|
|||
Total client assets
|
$
|
2,350
|
|
$
|
2,387
|
|
$
|
2,343
|
|
|
|
|
|
||||||
Memo:
|
|
|
|
||||||
Alternatives client assets
(a)
|
172
|
|
166
|
|
158
|
|
|||
|
|
|
|
||||||
Assets by client segment
|
|
|
|
||||||
Private Banking
|
$
|
437
|
|
$
|
428
|
|
$
|
361
|
|
Institutional
|
816
|
|
827
|
|
777
|
|
|||
Retail
|
470
|
|
489
|
|
460
|
|
|||
Total assets under management
|
$
|
1,723
|
|
$
|
1,744
|
|
$
|
1,598
|
|
|
|
|
|
||||||
Private Banking
|
$
|
1,050
|
|
$
|
1,057
|
|
$
|
977
|
|
Institutional
|
824
|
|
835
|
|
777
|
|
|||
Retail
|
476
|
|
495
|
|
589
|
|
|||
Total client assets
|
$
|
2,350
|
|
$
|
2,387
|
|
$
|
2,343
|
|
(a)
|
Represents assets under management, as well as client balances in brokerage accounts.
|
Client assets (continued)
|
|
|
|
||||||
Year ended December 31,
(in billions)
|
2015
|
2014
|
2013
|
||||||
Assets under management rollforward
|
|
|
|
||||||
Beginning balance
|
$
|
1,744
|
|
$
|
1,598
|
|
$
|
1,426
|
|
Net asset flows:
|
|
|
|
||||||
Liquidity
|
(1
|
)
|
18
|
|
(4
|
)
|
|||
Fixed income
|
(7
|
)
|
33
|
|
8
|
|
|||
Equity
|
1
|
|
5
|
|
34
|
|
|||
Multi-asset and alternatives
|
22
|
|
42
|
|
48
|
|
|||
Market/performance/other impacts
|
(36
|
)
|
48
|
|
86
|
|
|||
Ending balance, December 31
|
$
|
1,723
|
|
$
|
1,744
|
|
$
|
1,598
|
|
|
|
|
|
||||||
Client assets rollforward
|
|
|
|
||||||
Beginning balance
|
$
|
2,387
|
|
$
|
2,343
|
|
$
|
2,095
|
|
Net asset flows
|
27
|
|
118
|
|
80
|
|
|||
Market/performance/other impacts
|
(64
|
)
|
(74
|
)
|
168
|
|
|||
Ending balance, December 31
|
$
|
2,350
|
|
$
|
2,387
|
|
$
|
2,343
|
|
International metrics
|
|||||||||
Year ended December 31,
(in billions, except where otherwise noted)
|
2015
|
2014
|
2013
|
||||||
Total net revenue
(in millions)
(a)
|
|
|
|
||||||
Europe/Middle East/Africa
|
$
|
1,946
|
|
$
|
2,080
|
|
$
|
1,881
|
|
Asia/Pacific
|
1,130
|
|
1,199
|
|
1,133
|
|
|||
Latin America/Caribbean
|
795
|
|
841
|
|
879
|
|
|||
Total international net revenue
|
3,871
|
|
4,120
|
|
3,893
|
|
|||
|
|
|
|
||||||
North America
|
8,248
|
|
7,908
|
|
7,512
|
|
|||
Total net revenue
|
$
|
12,119
|
|
$
|
12,028
|
|
$
|
11,405
|
|
|
|
|
|
||||||
Assets under management
|
|
|
|
||||||
Europe/Middle East/Africa
|
$
|
302
|
|
$
|
329
|
|
$
|
305
|
|
Asia/Pacific
|
123
|
|
126
|
|
132
|
|
|||
Latin America/Caribbean
|
45
|
|
46
|
|
47
|
|
|||
Total international assets under management
|
470
|
|
501
|
|
484
|
|
|||
|
|
|
|
||||||
North America
|
1,253
|
|
1,243
|
|
1,114
|
|
|||
Total assets under management
|
$
|
1,723
|
|
$
|
1,744
|
|
$
|
1,598
|
|
|
|
|
|
||||||
Client assets
|
|
|
|
||||||
Europe/Middle East/Africa
|
$
|
351
|
|
$
|
391
|
|
$
|
367
|
|
Asia/Pacific
|
173
|
|
174
|
|
180
|
|
|||
Latin America/Caribbean
|
110
|
|
115
|
|
117
|
|
|||
Total international client assets
|
634
|
|
680
|
|
664
|
|
|||
|
|
|
|
||||||
North America
|
1,716
|
|
1,707
|
|
1,679
|
|
|||
Total client assets
|
$
|
2,350
|
|
$
|
2,387
|
|
$
|
2,343
|
|
(a)
|
Regional revenue is based on the domicile of the client.
|
104
|
|
JPMorgan Chase & Co./2015 Annual Report
|
CORPORATE
|
The Corporate segment consists of Treasury and Chief Investment Office (“CIO”) and Other Corporate, which includes corporate staff units and expense that is centrally managed. Treasury and CIO are predominantly responsible for measuring, monitoring, reporting and managing the Firm’s liquidity, funding and structural interest rate and foreign exchange risks, as well as executing the Firm’s capital plan. The major Other Corporate units include Real Estate, Enterprise Technology, Legal, Compliance, Finance, Human Resources, Internal Audit, Risk Management, Oversight & Control, Corporate Responsibility and various Other Corporate groups. Other centrally managed expense includes the Firm’s occupancy and pension-related expenses that are subject to allocation to the businesses.
|
Selected income statement data
|
|
|
|
|
|||||||
Year ended December 31,
(in millions, except headcount)
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Revenue
|
|
|
|
|
|
||||||
Principal transactions
|
$
|
41
|
|
|
$
|
1,197
|
|
|
$
|
563
|
|
Securities gains
|
190
|
|
|
71
|
|
|
666
|
|
|||
All other income
|
569
|
|
|
704
|
|
|
1,864
|
|
|||
Noninterest revenue
|
800
|
|
|
1,972
|
|
|
3,093
|
|
|||
Net interest income
(a)
|
(533
|
)
|
|
(1,960
|
)
|
|
(3,115
|
)
|
|||
Total net revenue
|
267
|
|
|
12
|
|
|
(22
|
)
|
|||
|
|
|
|
|
|
||||||
Provision for credit losses
|
(10
|
)
|
|
(35
|
)
|
|
(28
|
)
|
|||
|
|
|
|
|
|
||||||
Noninterest expense
(b)
|
977
|
|
|
1,159
|
|
|
10,255
|
|
|||
Loss before income tax benefit
|
(700
|
)
|
|
(1,112
|
)
|
|
(10,249
|
)
|
|||
Income tax benefit
|
(3,137
|
)
|
|
(1,976
|
)
|
|
(3,493
|
)
|
|||
Net income/(loss)
|
$
|
2,437
|
|
|
$
|
864
|
|
|
$
|
(6,756
|
)
|
Total net revenue
|
|
|
|
|
|
||||||
Treasury and CIO
|
(493
|
)
|
|
(1,317
|
)
|
|
(2,068
|
)
|
|||
Other Corporate
(c)
|
760
|
|
|
1,329
|
|
|
2,046
|
|
|||
Total net revenue
|
$
|
267
|
|
|
$
|
12
|
|
|
$
|
(22
|
)
|
Net income/(loss)
|
|
|
|
|
|
||||||
Treasury and CIO
|
(235
|
)
|
|
(1,165
|
)
|
|
(1,454
|
)
|
|||
Other Corporate
(c)
|
2,672
|
|
|
2,029
|
|
|
(5,302
|
)
|
|||
Total net income/(loss)
|
$
|
2,437
|
|
|
$
|
864
|
|
|
$
|
(6,756
|
)
|
|
|
|
|
|
|
||||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
||||||
Total assets (period-end)
|
$
|
768,204
|
|
|
$
|
931,206
|
|
|
$
|
805,506
|
|
Loans
|
2,187
|
|
|
2,871
|
|
|
4,004
|
|
|||
Core loans
(d)
|
2,182
|
|
|
2,848
|
|
|
3,958
|
|
|||
Headcount
|
29,617
|
|
|
26,047
|
|
|
20,717
|
|
(a)
|
Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of
$839 million
,
$730 million
and
$480 million
for the years ended
December 31, 2015
,
2014
and
2013
, respectively.
|
(b)
|
Included legal expense of
$832 million
,
$821 million
and
$10.2 billion
for the years ended
December 31, 2015
,
2014
and
2013
, respectively.
|
(c)
|
Effective in 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.
|
(d)
|
Average core loans were $2.5 billion, $3.3 billion and $5.2 billion for the years ended December 31, 2015, 2014 and 2013, respectively.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
105
|
(a)
|
Average investment securities included held-to-maturity balances of $50.0 billion and $47.2 billion for the years ended December 31, 2015 and 2014 respectively. The held-to-maturity balance for full year 2013 was not material.
|
(b)
|
Period-end investment securities included held-to-maturity securities of
$49.1 billion
,
$49.3 billion
,
$24.0 billion
at December 31, 2015, 2014 and 2013, respectively.
|
December 31, (in millions)
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Carrying value
|
$
|
2,103
|
|
|
$
|
5,866
|
|
|
$
|
7,868
|
|
Cost
|
3,798
|
|
|
6,281
|
|
|
8,491
|
|
(a)
|
For more information on the Firm’s methodologies regarding the valuation of the Private Equity portfolio, see Note 3. For information on the sale of a portion of the Private Equity business completed on January 9, 2015, see Note 2.
|
106
|
|
JPMorgan Chase & Co./2015 Annual Report
|
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 of the lines of business and corporate functions; and
|
•
|
Firmwide structures for risk governance.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
107
|
Risk
|
Definition
|
Select risk management metrics
|
Page
references
|
Capital risk
|
The risk the Firm has an insufficient level and composition of capital to support the Firm’s business activities and associated risks during normal economic environments and stressed conditions.
|
Risk-based capital ratios; supplementary leverage ratio; stress
|
149–158
|
Compliance risk
|
The risk of failure to comply with applicable laws, rules, and regulations.
|
Various metrics related to market conduct, Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”), employee compliance, fiduciary, privacy and information risk
|
147
|
Country risk
|
The risk that a sovereign event or action alters the value or terms of contractual obligations of obligors, counterparties and issuers or adversely affects markets related to a particular country.
|
Default exposure at 0% recovery; stress; risk ratings; ratings based capital limits
|
140–141
|
Credit risk
|
The risk of loss arising from the default of a customer, client or counterparty.
|
Total exposure; industry, geographic and customer concentrations; risk ratings; delinquencies; loss experience; stress
|
112–132
|
Legal risk
|
The risk of loss or imposition of damages, fines, penalties or other liability arising from failure to comply with a contractual obligation or to comply with laws or regulations to which the Firm is subject.
|
Not applicable
|
146
|
Liquidity risk
|
The risk that the Firm will be unable to meet its contractual and contingent obligations or that it does not have the appropriate amount, composition and tenor of funding and liquidity to support its assets.
|
LCR; stress
|
159–164
|
Market risk
|
The risk of loss arising from potential adverse changes in the value of the Firm’s assets and liabilities resulting from changes in market variables such as interest rates, foreign exchange rates, equity prices, commodity prices, implied volatilities or credit spreads.
|
VaR, stress, sensitivities
|
133–139
|
Model risk
|
The risk of the potential for adverse consequences from decisions based on incorrect or misused model outputs and reports.
|
Model status, model tier
|
142
|
Non-U.S. dollar foreign exchange (“FX”) risk
|
The risk that changes in foreign exchange rates affect the value of the Firm’s assets or liabilities or future results.
|
FX net open position (“NOP”)
|
139
|
Operational risk
|
The risk of loss resulting from inadequate or failed processes or systems, human factors, or due to external events that are neither market nor credit-related.
|
Firm-specific loss experience; industry loss experience; business environment and internal control factors (“BEICF”); key risk indicators; key control indicators; operating metrics
|
144–146
|
Principal risk
|
The risk of an adverse change in the value of privately-held financial assets and instruments, typically representing an ownership or junior capital position that have unique risks due to their illiquidity or for which there is less observable market or valuation data.
|
Carrying value, stress
|
143
|
Reputation risk
|
The risk that an action, transaction, investment or event will reduce trust in the Firm’s integrity or competence by our various constituents, including clients, counterparties, investors, regulators, employees and the broader public.
|
Not applicable
|
148
|
Structural interest rate risk
|
The risk resulting from the Firm’s traditional banking activities (both on- and off-balance sheet positions) arising from the extension of loans and credit facilities, taking deposits and issuing debt (collectively referred to as “non-trading activities”), and also the impact from the CIO investment securities portfolio and other related CIO and Treasury activities.
|
Earnings-at-risk
|
138-139
|
108
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
109
|
110
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
111
|
CREDIT RISK MANAGEMENT
|
•
|
Establishing a comprehensive credit risk policy framework
|
•
|
Monitoring and managing credit risk across all portfolio segments, including transaction and exposure approval
|
•
|
Setting industry concentration limits and establishing underwriting guidelines
|
•
|
Assigning and managing credit authorities in connection with the approval of all credit exposure
|
•
|
Managing criticized exposures and delinquent loans
|
•
|
Determining the allowance for credit losses and ensuring appropriate credit risk-based capital management
|
112
|
|
JPMorgan Chase & Co./2015 Annual Report
|
•
|
Loan underwriting and credit approval process
|
•
|
Loan syndications and participations
|
•
|
Loan sales and securitizations
|
•
|
Credit derivatives
|
•
|
Master netting agreements
|
•
|
Collateral and other risk-reduction techniques
|
•
|
Independently assessing and validating the changing risk grades assigned to exposures; and
|
•
|
Evaluating the effectiveness of business units’ risk ratings, including the accuracy and consistency of risk grades, the timeliness of risk grade changes and the justification of risk grades in credit memoranda.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
113
|
CREDIT PORTFOLIO
|
Total credit portfolio
|
|
|
|
|
|||||||||
December 31,
(in millions)
|
Credit exposure
|
|
Nonperforming
(b)(c)
|
||||||||||
2015
|
2014
|
|
2015
|
2014
|
|||||||||
Loans retained
|
$
|
832,792
|
|
$
|
747,508
|
|
|
$
|
6,303
|
|
$
|
7,017
|
|
Loans held-for-sale
|
1,646
|
|
7,217
|
|
|
101
|
|
95
|
|
||||
Loans at fair value
|
2,861
|
|
2,611
|
|
|
25
|
|
21
|
|
||||
Total loans – reported
|
837,299
|
|
757,336
|
|
|
6,429
|
|
7,133
|
|
||||
Derivative receivables
|
59,677
|
|
78,975
|
|
|
204
|
|
275
|
|
||||
Receivables from customers and other
|
13,497
|
|
29,080
|
|
|
—
|
|
—
|
|
||||
Total credit-related assets
|
910,473
|
|
865,391
|
|
|
6,633
|
|
7,408
|
|
||||
Assets acquired in loan satisfactions
|
|
|
|
|
|
||||||||
Real estate owned
|
NA
|
|
NA
|
|
|
347
|
|
515
|
|
||||
Other
|
NA
|
|
NA
|
|
|
54
|
|
44
|
|
||||
Total
assets acquired in loan satisfactions
|
NA
|
|
NA
|
|
|
401
|
|
559
|
|
||||
Total assets
|
910,473
|
|
865,391
|
|
|
7,034
|
|
7,967
|
|
||||
Lending-related commitments
|
940,395
|
|
950,997
|
|
|
193
|
|
103
|
|
||||
Total credit portfolio
|
$
|
1,850,868
|
|
$
|
1,816,388
|
|
|
$
|
7,227
|
|
$
|
8,070
|
|
Credit derivatives used in credit portfolio management activities
(a)
|
$
|
(20,681
|
)
|
$
|
(26,703
|
)
|
|
$
|
(9
|
)
|
$
|
—
|
|
Liquid securities and other cash collateral held against derivatives
|
(16,580
|
)
|
(19,604
|
)
|
|
NA
|
|
NA
|
|
Year ended December 31,
(in millions, except ratios)
|
|
2015
|
2014
|
||||
Net charge-offs
|
|
$
|
4,086
|
|
$
|
4,759
|
|
Average retained loans
|
|
|
|
||||
Loans – reported
|
|
780,293
|
|
729,876
|
|
||
Loans – reported, excluding
residential real estate PCI loans
|
|
736,543
|
|
679,869
|
|
||
Net charge-off rates
|
|
|
|
||||
Loans – reported
|
|
0.52
|
%
|
0.65
|
%
|
||
Loans – reported, excluding PCI
|
|
0.55
|
|
0.70
|
|
(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 129
and Note 6.
|
(b)
|
Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as each of the pools is performing.
|
(c)
|
At
December 31, 2015
and
2014
, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of
$6.3 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
$290 million
and
$367 million
, respectively, that are 90 or more days past due; and (3) REO insured by U.S. government agencies of
$343 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”).
|
114
|
|
JPMorgan Chase & Co./2015 Annual Report
|
CONSUMER CREDIT PORTFOLIO
|
Consumer credit portfolio
|
||||||||||||||||||||||||||
As of or for the year ended December 31,
(in millions, except ratios)
|
Credit exposure
|
|
Nonaccrual loans
(g)(h)
|
|
Net charge-offs/(recoveries)
(i)
|
|
Average annual net charge-off/(recovery) rate
(i)(j)
|
|||||||||||||||||||
2015
|
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|||||||||||||||
Consumer, excluding credit card
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans, excluding PCI loans and loans held-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity – senior lien
|
$
|
14,848
|
|
|
$
|
16,367
|
|
|
$
|
867
|
|
$
|
938
|
|
|
$
|
69
|
|
$
|
82
|
|
|
0.43
|
%
|
0.50
|
%
|
Home equity – junior lien
|
30,711
|
|
|
36,375
|
|
|
1,324
|
|
1,590
|
|
|
222
|
|
391
|
|
|
0.67
|
|
1.03
|
|
||||||
Prime mortgage, including option ARMs
|
162,549
|
|
|
104,921
|
|
|
1,752
|
|
2,190
|
|
|
49
|
|
39
|
|
|
0.04
|
|
0.04
|
|
||||||
Subprime mortgage
|
3,690
|
|
|
5,056
|
|
|
751
|
|
1,036
|
|
|
(53
|
)
|
(27
|
)
|
|
(1.22
|
)
|
(0.43
|
)
|
||||||
Auto
(a)
|
60,255
|
|
|
54,536
|
|
|
116
|
|
115
|
|
|
214
|
|
181
|
|
|
0.38
|
|
0.34
|
|
||||||
Business banking
|
21,208
|
|
|
20,058
|
|
|
263
|
|
279
|
|
|
253
|
|
305
|
|
|
1.23
|
|
1.58
|
|
||||||
Student and other
|
10,096
|
|
|
10,970
|
|
|
242
|
|
270
|
|
|
200
|
|
347
|
|
|
1.89
|
|
3.07
|
|
||||||
Total loans, excluding PCI loans and loans held-for-sale
|
303,357
|
|
|
248,283
|
|
|
5,315
|
|
6,418
|
|
|
954
|
|
1,318
|
|
|
0.35
|
|
0.55
|
|
||||||
Loans – PCI
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
14,989
|
|
|
17,095
|
|
|
—
|
|
NA
|
|
|
—
|
|
NA
|
|
|
—
|
|
NA
|
|
||||||
Prime mortgage
|
8,893
|
|
|
10,220
|
|
|
—
|
|
NA
|
|
|
—
|
|
NA
|
|
|
—
|
|
NA
|
|
||||||
Subprime mortgage
|
3,263
|
|
|
3,673
|
|
|
—
|
|
NA
|
|
|
—
|
|
NA
|
|
|
—
|
|
NA
|
|
||||||
Option ARMs
(b)
|
13,853
|
|
|
15,708
|
|
|
—
|
|
NA
|
|
|
—
|
|
NA
|
|
|
—
|
|
NA
|
|
||||||
Total loans – PCI
|
40,998
|
|
|
46,696
|
|
|
—
|
|
NA
|
|
|
—
|
|
NA
|
|
|
—
|
|
NA
|
|
||||||
Total loans – retained
|
344,355
|
|
|
294,979
|
|
|
5,315
|
|
6,418
|
|
|
954
|
|
1,318
|
|
|
0.30
|
|
0.46
|
|
||||||
Loans held-for-sale
|
466
|
|
(f)
|
395
|
|
(f)
|
98
|
|
91
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Total consumer, excluding credit card loans
|
344,821
|
|
|
295,374
|
|
|
5,413
|
|
6,509
|
|
|
954
|
|
1,318
|
|
|
0.30
|
|
0.46
|
|
||||||
Lending-related commitments
(c)
|
58,478
|
|
|
58,153
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Receivables from customers
(d)
|
125
|
|
|
108
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total consumer exposure, excluding credit card
|
403,424
|
|
|
353,635
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Credit Card
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans retained
(e)
|
131,387
|
|
|
128,027
|
|
|
—
|
|
—
|
|
|
3,122
|
|
3,429
|
|
|
2.51
|
|
2.75
|
|
||||||
Loans held-for-sale
|
76
|
|
|
3,021
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Total credit card loans
|
131,463
|
|
|
131,048
|
|
|
—
|
|
—
|
|
|
3,122
|
|
3,429
|
|
|
2.51
|
|
2.75
|
|
||||||
Lending-related commitments
(c)
|
515,518
|
|
|
525,963
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total credit card exposure
|
646,981
|
|
|
657,011
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total consumer credit portfolio
|
$
|
1,050,405
|
|
|
$
|
1,010,646
|
|
|
$
|
5,413
|
|
$
|
6,509
|
|
|
$
|
4,076
|
|
$
|
4,747
|
|
|
0.92
|
%
|
1.15
|
%
|
Memo: Total consumer credit portfolio, excluding PCI
|
$
|
1,009,407
|
|
|
$
|
963,950
|
|
|
$
|
5,413
|
|
$
|
6,509
|
|
|
$
|
4,076
|
|
$
|
4,747
|
|
|
1.02
|
%
|
1.30
|
%
|
(a)
|
At
December 31, 2015
and
2014
, excluded operating lease assets of
$9.2 billion
and
$6.7 billion
, respectively.
|
(b)
|
At
December 31, 2015
and
2014
, approximately
64%
and
57%
of the PCI option ARMs portfolio has been modified into fixed-rate, fully amortizing loans, respectively.
|
(c)
|
Credit card and home equity lending-related commitments represent the total available lines of credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit would be used at the same time. For credit card and home equity commitments (if certain conditions are met), the Firm can reduce or cancel these lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice.
|
(d)
|
Receivables from customers represent margin loans to retail brokerage customers, and are included in Accrued interest and accounts receivable on the Consolidated balance sheets.
|
(e)
|
Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income.
|
(f)
|
Predominantly represents prime mortgage loans held-for-sale.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
115
|
(g)
|
At
December 31, 2015
and
2014
, nonaccrual loans excluded: (1) mortgage loans insured by U.S. government agencies of
$6.3 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
$290 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, credit card loans are generally exempt from being placed on nonaccrual status, as permitted by regulatory guidance.
|
(h)
|
Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as each of the pools is performing.
|
(i)
|
Net charge-offs and net charge-off rates excluded
$208 million
and
$533 million
of write-offs of prime mortgages in the PCI portfolio for the years ended
December 31, 2015
and
2014
. These write-offs decreased the allowance for loan losses for PCI loans. See Allowance for Credit Losses on
pages 130–132
for further details.
|
(j)
|
Average consumer loans held-for-sale were
$2.1 billion
and
$917 million
, respectively, for the years ended
December 31, 2015
and
2014
. These amounts were excluded when calculating net charge-off rates.
|
116
|
|
JPMorgan Chase & Co./2015 Annual Report
|
(a)
|
Junior liens subordinate to senior liens that are 90 days or more past due are classified as nonaccrual loans. At
December 31, 2015
and
2014
, excluded approximately
$25 million
and
$50 million
, respectively, of junior liens that are performing but not current, which were placed on nonaccrual in accordance with the regulatory guidance.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
117
|
Summary of lifetime principal loss estimates
|
|||||||||||||||
December 31, (in billions)
|
Lifetime loss estimates
(a)
|
|
LTD liquidation losses
(b)
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Home equity
|
$
|
14.5
|
|
|
$
|
14.6
|
|
|
$
|
12.7
|
|
|
$
|
12.4
|
|
Prime mortgage
|
4.0
|
|
|
3.8
|
|
|
3.7
|
|
|
3.5
|
|
||||
Subprime mortgage
|
3.3
|
|
|
3.3
|
|
|
3.0
|
|
|
2.8
|
|
||||
Option ARMs
|
10.0
|
|
|
9.9
|
|
|
9.5
|
|
|
9.3
|
|
||||
Total
|
$
|
31.8
|
|
|
$
|
31.6
|
|
|
$
|
28.9
|
|
|
$
|
28.0
|
|
(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
$1.5 billion
and
$2.3 billion
at
December 31, 2015
and
2014
, respectively.
|
(b)
|
Life-to-date (“LTD”) liquidation losses represent both realization of loss upon loan resolution and any principal forgiven upon modification.
|
118
|
|
JPMorgan Chase & Co./2015 Annual Report
|
LTV ratios and ratios of carrying values to current estimated collateral values – PCI loans
|
|
|
|
|
|
||||||||||||||||||||
|
|
2015
|
|
2014
|
|
||||||||||||||||||||
December 31,
(in millions,
except ratios)
|
|
Unpaid principal balance
|
Current estimated
LTV ratio
(a)(b)
|
Net carrying value
(d)
|
Ratio of net
carrying value
to current estimated
collateral value
(b)(d)
|
|
Unpaid principal
balance
|
Current estimated
LTV ratio
(a)(b)
|
Net carrying value
(d)
|
Ratio of net
carrying value
to current estimated
collateral value
(b)(d)
|
|
||||||||||||||
Home equity
|
|
$
|
15,342
|
|
73
|
%
|
(c)
|
$
|
13,281
|
|
68
|
%
|
(e)
|
$
|
17,740
|
|
78
|
%
|
(c)
|
$
|
15,337
|
|
73
|
%
|
(e)
|
Prime mortgage
|
|
8,919
|
|
66
|
|
|
7,908
|
|
58
|
|
|
10,249
|
|
71
|
|
|
9,027
|
|
63
|
|
|
||||
Subprime mortgage
|
|
4,051
|
|
73
|
|
|
3,263
|
|
59
|
|
|
4,652
|
|
79
|
|
|
3,493
|
|
59
|
|
|
||||
Option ARMs
|
|
14,353
|
|
64
|
|
|
13,804
|
|
62
|
|
|
16,496
|
|
69
|
|
|
15,514
|
|
65
|
|
|
(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)
|
Effective
December 31, 2015
, the current estimated LTV ratios and the ratios of net carrying value to current estimated collateral value reflect updates to the nationally recognized home price index valuation estimates incorporated into the Firm’s home valuation models. The prior period ratios have been revised to conform with these updates in the home price index.
|
(c)
|
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.
|
(d)
|
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
December 31, 2015
and
2014
of
$985 million
and
$1.2 billion
for prime mortgage,
$49 million
and
$194 million
for option ARMs,
$1.7 billion
and $1.8 billion for home equity, respectively, and $180 million for subprime mortgage at
December 31, 2014
. There was no allowance for loan losses for subprime mortgage at
December 31, 2015
.
|
(e)
|
The current period ratio has been updated to include the effect of any outstanding senior lien related to a property for which the Firm holds the junior home equity lien. The prior period ratio has been revised to conform with the current presentation.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
119
|
(a)
|
Amounts represent the carrying value of modified residential real estate loans.
|
(b)
|
At
December 31, 2015
and
2014
,
$3.8 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 of loans in securitization transactions with Ginnie Mae, see Note 16.
|
(c)
|
Amounts represent the unpaid principal balance of modified PCI loans.
|
(d)
|
As of
December 31, 2015
and
2014
, nonaccrual loans included
$2.5 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 14.
|
Nonperforming assets
(a)
|
|
|
|
||||
December 31, (in millions)
|
2015
|
|
2014
|
||||
Nonaccrual loans
(b)
|
|
|
|
||||
Residential real estate
|
$
|
4,792
|
|
|
$
|
5,845
|
|
Other consumer
|
621
|
|
|
664
|
|
||
Total nonaccrual loans
|
5,413
|
|
|
6,509
|
|
||
Assets acquired in loan satisfactions
|
|
|
|
||||
Real estate owned
|
277
|
|
|
437
|
|
||
Other
|
48
|
|
|
36
|
|
||
Total assets acquired in loan satisfactions
|
325
|
|
|
473
|
|
||
Total nonperforming assets
|
$
|
5,738
|
|
|
$
|
6,982
|
|
(a)
|
At
December 31, 2015
and
2014
, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of
$6.3 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
$290 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
$343 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, each pool is considered to be performing.
|
Nonaccrual loans
|
|
|
|||||
Year ended December 31,
|
|
|
|
||||
(in millions)
|
|
2015
|
2014
|
||||
Beginning balance
|
|
$
|
6,509
|
|
$
|
7,496
|
|
Additions
|
|
3,662
|
|
4,905
|
|
||
Reductions:
|
|
|
|
||||
Principal payments and other
(a)
|
|
1,668
|
|
1,859
|
|
||
Charge-offs
|
|
800
|
|
1,306
|
|
||
Returned to performing status
|
|
1,725
|
|
2,083
|
|
||
Foreclosures and other liquidations
|
|
565
|
|
644
|
|
||
Total reductions
|
|
4,758
|
|
5,892
|
|
||
Net additions/(reductions)
|
|
(1,096
|
)
|
(987
|
)
|
||
Ending balance
|
|
$
|
5,413
|
|
$
|
6,509
|
|
(a)
|
Other reductions includes loan sales.
|
120
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
121
|
WHOLESALE CREDIT PORTFOLIO
|
Wholesale credit portfolio
|
|||||||||||||
December 31,
|
Credit exposure
|
|
Nonperforming
(c)
|
||||||||||
(in millions)
|
2015
|
2014
|
|
2015
|
2014
|
||||||||
Loans retained
|
$
|
357,050
|
|
$
|
324,502
|
|
|
$
|
988
|
|
$
|
599
|
|
Loans held-for-sale
|
1,104
|
|
3,801
|
|
|
3
|
|
4
|
|
||||
Loans at fair value
|
2,861
|
|
2,611
|
|
|
25
|
|
21
|
|
||||
Loans – reported
|
361,015
|
|
330,914
|
|
|
1,016
|
|
624
|
|
||||
Derivative receivables
|
59,677
|
|
78,975
|
|
|
204
|
|
275
|
|
||||
Receivables from customers and other
(a)
|
13,372
|
|
28,972
|
|
|
—
|
|
—
|
|
||||
Total wholesale credit-related assets
|
434,064
|
|
438,861
|
|
|
1,220
|
|
899
|
|
||||
Lending-related commitments
|
366,399
|
|
366,881
|
|
|
193
|
|
103
|
|
||||
Total wholesale credit exposure
|
$
|
800,463
|
|
$
|
805,742
|
|
|
$
|
1,413
|
|
$
|
1,002
|
|
Credit derivatives used
in credit portfolio management activities
(b)
|
$
|
(20,681
|
)
|
$
|
(26,703
|
)
|
|
$
|
(9
|
)
|
$
|
—
|
|
Liquid securities and other cash collateral held against derivatives
|
(16,580
|
)
|
(19,604
|
)
|
|
NA
|
|
NA
|
|
(a)
|
Receivables from customers and other include
$13.3 billion
and
$28.8 billion
of margin loans at
December 31, 2015
and
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 129
, and Note 6.
|
(c)
|
Excludes assets acquired in loan satisfactions.
|
122
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
Maturity profile
(e)
|
|
Ratings profile
|
|||||||||||||||||||||||
|
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
|
|||||||||||||||
December 31, 2014
(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
|
|
|
50,815
|
|
(f)
|
8,556
|
|
(f)
|
59,371
|
|
86
|
|
|||||||
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
|
|
|
576,769
|
|
|
173,985
|
|
|
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 derivatives used in credit portfolio management activities 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 quality 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 derivatives used in credit portfolio management activities, are executed with investment grade counterparties.
|
(e)
|
The maturity profile of retained loans, lending-related commitments and derivative receivables is based on remaining contractual maturity. Derivative contracts that are in a receivable position at
December 31, 2015
, may become a payable prior to maturity based on their cash flow profile or changes in market conditions.
|
(f)
|
Prior period amounts have been revised to conform with current period presentation.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
123
|
124
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
Selected metrics
|
|||||||||||||||||||||
|
|
|
|
|
|
30 days or more past due and accruing
loans |
Net charge-offs/
(recoveries)
|
Credit derivative hedges
(f)
|
Liquid securities
and other cash collateral held against derivative
receivables |
||||||||||||||||||
|
|
|
Noninvestment-grade
|
||||||||||||||||||||||||
|
Credit
exposure
(e)
|
Investment-
grade
|
Noncriticized
|
Criticized performing
|
Criticized
nonperforming
|
||||||||||||||||||||||
As of or for the year ended
December 31, 2014
(in millions)
|
|||||||||||||||||||||||||||
Real Estate
|
$
|
105,975
|
|
$
|
78,996
|
|
$
|
25,370
|
|
$
|
1,356
|
|
$
|
253
|
|
$
|
309
|
|
$
|
(9
|
)
|
$
|
(36
|
)
|
$
|
(27
|
)
|
Consumer & Retail
|
83,663
|
|
52,872
|
|
28,289
|
|
2,315
|
|
187
|
|
92
|
|
9
|
|
(81
|
)
|
(26
|
)
|
|||||||||
Technology, Media &
Telecommunications |
46,655
|
|
29,792
|
|
15,358
|
|
1,446
|
|
59
|
|
25
|
|
(5
|
)
|
(1,107
|
)
|
(13
|
)
|
|||||||||
Industrials
|
47,859
|
|
29,246
|
|
17,483
|
|
1,117
|
|
13
|
|
58
|
|
(1
|
)
|
(338
|
)
|
(24
|
)
|
|||||||||
Healthcare
|
56,516
|
|
48,402
|
|
7,584
|
|
488
|
|
42
|
|
193
|
|
16
|
|
(94
|
)
|
(244
|
)
|
|||||||||
Banks & Finance Cos
|
55,098
|
|
45,962
|
|
8,611
|
|
508
|
|
17
|
|
46
|
|
(4
|
)
|
(1,232
|
)
|
(9,369
|
)
|
|||||||||
Oil & Gas
|
43,148
|
|
29,260
|
|
13,831
|
|
56
|
|
1
|
|
15
|
|
2
|
|
(144
|
)
|
(161
|
)
|
|||||||||
Utilities
|
27,441
|
|
23,533
|
|
3,653
|
|
255
|
|
—
|
|
198
|
|
(3
|
)
|
(155
|
)
|
(193
|
)
|
|||||||||
State & Municipal Govt
(b)
|
31,068
|
|
30,147
|
|
819
|
|
102
|
|
—
|
|
69
|
|
24
|
|
(148
|
)
|
(130
|
)
|
|||||||||
Asset Managers
|
27,488
|
|
24,054
|
|
3,376
|
|
57
|
|
1
|
|
38
|
|
(12
|
)
|
(9
|
)
|
(4,545
|
)
|
|||||||||
Transportation
|
20,619
|
|
13,751
|
|
6,703
|
|
165
|
|
—
|
|
5
|
|
(12
|
)
|
(42
|
)
|
(279
|
)
|
|||||||||
Central Govt
|
19,881
|
|
19,647
|
|
176
|
|
58
|
|
—
|
|
—
|
|
—
|
|
(11,342
|
)
|
(1,161
|
)
|
|||||||||
Chemicals & Plastics
|
12,612
|
|
9,256
|
|
3,327
|
|
29
|
|
—
|
|
1
|
|
(2
|
)
|
(14
|
)
|
—
|
|
|||||||||
Metals & Mining
|
14,969
|
|
8,304
|
|
6,161
|
|
504
|
|
—
|
|
—
|
|
18
|
|
(377
|
)
|
(19
|
)
|
|||||||||
Automotive
|
12,754
|
|
8,071
|
|
4,522
|
|
161
|
|
—
|
|
1
|
|
(1
|
)
|
(140
|
)
|
—
|
|
|||||||||
Insurance
|
13,350
|
|
10,550
|
|
2,558
|
|
80
|
|
162
|
|
—
|
|
—
|
|
(52
|
)
|
(2,372
|
)
|
|||||||||
Financial Markets Infrastructure
|
11,986
|
|
11,487
|
|
499
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4
|
)
|
|||||||||
Securities Firms
|
4,801
|
|
2,491
|
|
2,245
|
|
10
|
|
55
|
|
20
|
|
4
|
|
(102
|
)
|
(212
|
)
|
|||||||||
All other
(c)
|
134,475
|
|
118,639
|
|
15,214
|
|
435
|
|
187
|
|
1,231
|
|
(12
|
)
|
(11,290
|
)
|
(825
|
)
|
|||||||||
Subtotal
|
$
|
770,358
|
|
$
|
594,460
|
|
$
|
165,779
|
|
$
|
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 interests in purchased receivables
|
28,972
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total
(d)
|
$
|
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
December 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
December 31, 2015
and
2014
, noted above, the Firm held:
$7.6 billion
and
$10.6 billion
, respectively, of trading securities;
$33.6 billion
and
$30.1 billion
, respectively, of available-for-sale (“AFS”) securities; and
$12.8 billion
and
$10.2 billion
, respectively, of held-to-maturity (“HTM”) securities, issued by U.S. state and municipal governments. For further information, see Note 3 and Note 12.
|
(c)
|
All other includes: individuals; SPEs; holding companies; and private education and civic organizations, representing approximately 54%, 37%, 5% and 4%, respectively, at
December 31, 2015
, and 55%, 33%, 6% and 6%, respectively, at
December 31, 2014
.
|
(d)
|
Excludes cash placed with banks of $351.0 billion and $501.5 billion, at
December 31, 2015
and
2014
, respectively, placed with various central banks, predominantly Federal Reserve Banks.
|
(e)
|
Credit exposure is net of risk participations and excludes the benefit of “Credit derivatives used in credit portfolio management activities” held against derivative receivables or loans and “Liquid securities and other cash collateral held against derivative receivables”.
|
(f)
|
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.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
125
|
•
|
Real Estate:
Exposure to this industry increased by
$10.9 billion
, or
10%
, in
2015
to
$116.9 billion
. The increase was largely driven by growth in multifamily exposure in Commercial Banking. The credit quality of this industry remained stable as the investment-grade portion of the exposures was 75% for 2015 and 2014. The ratio of nonaccrual retained loans to total retained loans decreased to
0.25%
at December 31, 2015 from
0.32%
at December 31, 2014. For further information on commercial real estate loans, see Note 14.
|
•
|
Oil & Gas:
Exposure to the Oil & Gas industry was approximately 5.3% and 5.4% of the Firm’s total wholesale exposure as of December 31, 2015 and 2014, respectively. Exposure to this industry decreased by $1.1 billion in 2015 to $42.1 billion; of the $42.1 billion, $13.3 billion was drawn at year-end. As of December 31, 2015, approximately $24 billion of the exposure was investment-grade, of which $4 billion was drawn, and approximately $18 billion of the exposure was high yield, of which $9 billion was drawn. As of December 31, 2015, $23.5 billion of the portfolio was concentrated in the Exploration & Production and Oilfield Services sub-sectors, 36% of which exposure was drawn. Exposure to other sub-sectors, including Integrated oil and gas firms, Midstream/Oil Pipeline companies, and Refineries, is predominantly investment-grade. As of December 31, 2015, secured lending, which largely consists of reserve-based lending to the Oil & Gas industry, was $12.3 billion, 44% of which exposure was drawn.
|
•
|
Metals & Mining:
Exposure to the Metals & Mining industry was approximately 1.8% and 1.9% of the Firm’s total wholesale exposure as of December 31, 2015 and 2014, respectively. Exposure to the Metals & Mining industry decreased by $920 million in 2015 to $14.0 billion, of which $4.6 billion was drawn. The portfolio largely consists of exposure in North America, and 59% is concentrated in the Steel and Diversified Mining sub-sectors. Approximately 46% of the exposure in the Metals & Mining portfolio was investment-grade as of December 31, 2015, a decrease from 55% as of December 31, 2014, due to downgrades.
|
Wholesale net charge-offs
|
||||||
Year ended December 31,
(in millions, except ratios)
|
2015
|
2014
|
||||
Loans – reported
|
|
|
||||
Average loans retained
|
$
|
337,407
|
|
$
|
316,060
|
|
Gross charge-offs
|
95
|
|
151
|
|
||
Gross recoveries
|
(85
|
)
|
(139
|
)
|
||
Net charge-offs
|
10
|
|
12
|
|
||
Net charge-off rate
|
—
|
%
|
—
|
%
|
126
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Derivative receivables
|
|
|
||||
December 31, (in millions)
|
2015
|
2014
|
||||
Interest rate
|
$
|
26,363
|
|
$
|
33,725
|
|
Credit derivatives
|
1,423
|
|
1,838
|
|
||
Foreign exchange
|
17,177
|
|
21,253
|
|
||
Equity
|
5,529
|
|
8,177
|
|
||
Commodity
|
9,185
|
|
13,982
|
|
||
Total, net of cash collateral
|
59,677
|
|
78,975
|
|
||
Liquid securities and other cash collateral held against derivative receivables
|
(16,580
|
)
|
(19,604
|
)
|
||
Total, net of all collateral
|
$
|
43,097
|
|
$
|
59,371
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
127
|
128
|
|
JPMorgan Chase & Co./2015 Annual Report
|
(a)
|
Prior period amounts have been revised to conform with current period presentation.
|
(a)
|
Amounts are presented net, considering the Firm’s net protection purchased or sold with respect to each underlying reference entity or index.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
129
|
ALLOWANCE FOR CREDIT LOSSES
|
130
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Note:
|
In the table above, the financial measures which exclude the impact of PCI loans are non-GAAP financial measures. For additional information, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on
pages 80–82
.
|
(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). During the fourth quarter of 2014, the Firm recorded a $291 million adjustment to reduce the PCI allowance and the recorded investment in the Firm’s PCI loan portfolio, primarily reflecting the cumulative effect of interest forgiveness modifications. This adjustment had no impact to the Firm’s Consolidated statements of income.
|
(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.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
131
|
Year ended December 31,
|
Provision for loan losses
|
|
Provision for
lending-related commitments
|
|
Total provision for credit losses
|
||||||||||||||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
|
|
2015
|
|
2014
|
|
2013
|
|
||||||||||
Consumer, excluding credit card
|
$
|
(82
|
)
|
$
|
414
|
|
$
|
(1,872
|
)
|
|
$
|
1
|
|
$
|
5
|
|
$
|
1
|
|
|
$
|
(81
|
)
|
$
|
419
|
|
$
|
(1,871
|
)
|
Credit card
|
3,122
|
|
3,079
|
|
2,179
|
|
|
—
|
|
—
|
|
—
|
|
|
3,122
|
|
3,079
|
|
2,179
|
|
|||||||||
Total consumer
|
3,040
|
|
3,493
|
|
307
|
|
|
1
|
|
5
|
|
1
|
|
|
3,041
|
|
3,498
|
|
308
|
|
|||||||||
Wholesale
|
623
|
|
(269
|
)
|
(119
|
)
|
|
163
|
|
(90
|
)
|
36
|
|
|
786
|
|
(359
|
)
|
(83
|
)
|
|||||||||
Total
|
$
|
3,663
|
|
$
|
3,224
|
|
$
|
188
|
|
|
$
|
164
|
|
$
|
(85
|
)
|
$
|
37
|
|
|
$
|
3,827
|
|
$
|
3,139
|
|
$
|
225
|
|
132
|
|
JPMorgan Chase & Co./2015 Annual Report
|
MARKET RISK MANAGEMENT
|
•
|
Establishment of a market risk policy framework
|
•
|
Independent measurement, monitoring and control of line of business and firmwide market risk
|
•
|
Definition, approval and monitoring of limits
|
•
|
Performance of stress testing and qualitative risk assessments
|
•
|
VaR
|
•
|
Economic-value stress testing
|
•
|
Nonstatistical risk measures
|
•
|
Loss advisories
|
•
|
Profit and loss drawdowns
|
•
|
Earnings-at-risk
|
JPMorgan Chase & Co./2015 Annual Report
|
|
133
|
(a)
|
Market risk measurement for derivatives generally incorporates the impact of DVA and FVA; market risk measurement for structured notes generally excludes the impact of FVA and DVA.
|
134
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
135
|
Total VaR
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
As of or for the year ended December 31,
|
2015
|
|
2014
|
|
At December 31,
|
|||||||||||||||||||||||||||||
(in millions)
|
Avg.
|
Min
|
Max
|
|
Avg.
|
Min
|
Max
|
|
2015
|
2014
|
||||||||||||||||||||||||
CIB trading VaR by risk type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed income
|
$
|
42
|
|
|
$
|
31
|
|
|
$
|
60
|
|
|
|
$
|
34
|
|
|
$
|
23
|
|
|
$
|
45
|
|
|
|
$
|
37
|
|
|
$
|
34
|
|
|
Foreign exchange
|
9
|
|
|
6
|
|
|
16
|
|
|
|
8
|
|
|
4
|
|
|
25
|
|
|
|
6
|
|
|
8
|
|
|
||||||||
Equities
|
18
|
|
|
11
|
|
|
26
|
|
|
|
15
|
|
|
10
|
|
|
23
|
|
|
|
21
|
|
|
22
|
|
|
||||||||
Commodities and other
|
10
|
|
|
6
|
|
|
14
|
|
|
|
8
|
|
|
5
|
|
|
14
|
|
|
|
10
|
|
|
6
|
|
|
||||||||
Diversification benefit to CIB trading VaR
|
(35
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(30
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(28
|
)
|
(a)
|
(32
|
)
|
(a)
|
||||||||
CIB trading VaR
|
44
|
|
|
27
|
|
|
68
|
|
|
|
35
|
|
|
24
|
|
|
49
|
|
|
|
46
|
|
|
38
|
|
|
||||||||
Credit portfolio VaR
|
14
|
|
|
10
|
|
|
20
|
|
|
|
13
|
|
|
8
|
|
|
18
|
|
|
|
10
|
|
|
16
|
|
|
||||||||
Diversification benefit to CIB VaR
|
(9
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(8
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(10
|
)
|
(a)
|
(9
|
)
|
(a)
|
||||||||
CIB VaR
|
49
|
|
|
34
|
|
|
71
|
|
|
|
40
|
|
|
29
|
|
|
56
|
|
|
|
46
|
|
|
45
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Mortgage Banking VaR
|
4
|
|
|
2
|
|
|
8
|
|
|
|
7
|
|
|
2
|
|
|
28
|
|
|
|
4
|
|
|
3
|
|
|
||||||||
Treasury and CIO VaR
|
4
|
|
|
3
|
|
|
7
|
|
|
|
4
|
|
|
3
|
|
|
6
|
|
|
|
5
|
|
|
4
|
|
|
||||||||
Asset Management VaR
|
3
|
|
|
2
|
|
|
4
|
|
|
|
3
|
|
|
2
|
|
|
4
|
|
|
|
3
|
|
|
2
|
|
|
||||||||
Diversification benefit to other VaR
|
(3
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(4
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(4
|
)
|
(a)
|
(3
|
)
|
(a)
|
||||||||
Other VaR
|
8
|
|
|
5
|
|
|
12
|
|
|
|
10
|
|
|
5
|
|
|
27
|
|
|
|
8
|
|
|
6
|
|
|
||||||||
Diversification benefit to CIB and other VaR
|
(10
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(7
|
)
|
(a)
|
NM
|
|
(b)
|
NM
|
|
(b)
|
|
(9
|
)
|
(a)
|
(5
|
)
|
(a)
|
||||||||
Total VaR
|
$
|
47
|
|
|
$
|
34
|
|
|
$
|
67
|
|
|
|
$
|
43
|
|
|
$
|
30
|
|
|
$
|
70
|
|
|
|
$
|
45
|
|
|
$
|
46
|
|
|
(a)
|
Average portfolio VaR and period-end portfolio VaR were less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that risks are not perfectly correlated.
|
(b)
|
Designated as not meaningful (“NM”), because the minimum and maximum may occur on different days for distinct risk components, and hence it is not meaningful to compute a portfolio-diversification effect.
|
136
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
137
|
•
|
Differences in the timing among the maturity or repricing of assets, liabilities and off-balance sheet instruments
|
•
|
Differences in the amounts of assets, liabilities and off-balance sheet instruments that are repricing at the same time
|
•
|
Differences in the amounts by which short-term and long-term market interest rates change (for example, changes in the slope of the yield curve)
|
•
|
The impact of changes in the maturity of various assets, liabilities or off-balance sheet instruments as interest rates change
|
138
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase’s 12-month pretax net interest income sensitivity profiles
|
||||||||||||
(Excludes the impact of CIB’s markets-based activities and MSRs)
|
||||||||||||
(in billions)
|
Instantaneous change in rates
|
|
||||||||||
December 31, 2015
|
+200 bps
|
+100 bps
|
-100 bps
|
-200 bps
|
||||||||
U.S. dollar
|
$
|
5.2
|
|
|
$
|
3.1
|
|
|
NM
|
(a)
|
NM
|
(a)
|
(a)
|
Downward 100- and 200-basis-points parallel shocks result in a federal funds target rate of zero and negative three- and six-month U.S. Treasury rates. The earnings-at-risk results of such a low probability scenario are not meaningful.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
139
|
COUNTRY RISK MANAGEMENT
|
•
|
Developing guidelines and policies consistent with a comprehensive country risk framework
|
•
|
Assigning sovereign ratings and assessing country risks
|
•
|
Measuring and monitoring country risk exposure and stress across the Firm
|
•
|
Managing country limits and reporting trends and limit breaches to senior management
|
•
|
Developing surveillance tools for early identification of potential country risk concerns
|
•
|
Providing country risk scenario analysis
|
•
|
Lending exposures are measured at the total committed amount (funded and unfunded), net of the allowance for credit losses and cash and marketable securities collateral received
|
•
|
Securities financing exposures are measured at their receivable balance, net of collateral received
|
•
|
Debt and equity securities are measured at the fair value of all positions, including both long and short positions
|
•
|
Counterparty exposure on derivative receivables is measured at the derivative’s fair value, net of the fair value of the related collateral. Counterparty exposure on derivatives can change significantly because of market movements
|
•
|
Credit derivatives protection purchased and sold is reported based on the underlying reference entity and is measured at the notional amount of protection purchased or sold, net of the fair value of the recognized derivative receivable or payable. Credit derivatives protection purchased and sold in the Firm’s market-making activities is measured on a net basis, as such activities often result in selling and purchasing protection related to the same underlying reference entity; this reflects the manner in which the Firm manages these exposures
|
140
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Top 20 country exposures
|
|
|
|
||||||||||
|
December 31, 2015
|
||||||||||||
(in billions)
|
|
Lending
(a)
|
Trading and investing
(b)(c)
|
Other
(d)
|
Total exposure
|
||||||||
United Kingdom
|
|
$
|
23.8
|
|
$
|
21.8
|
|
$
|
1.1
|
|
$
|
46.7
|
|
Germany
|
|
13.8
|
|
16.7
|
|
0.2
|
|
30.7
|
|
||||
France
|
|
14.2
|
|
11.9
|
|
0.1
|
|
26.2
|
|
||||
Japan
|
|
12.9
|
|
7.8
|
|
0.4
|
|
21.1
|
|
||||
China
|
|
10.3
|
|
7.2
|
|
1.0
|
|
18.5
|
|
||||
Canada
|
|
13.9
|
|
2.9
|
|
0.3
|
|
17.1
|
|
||||
Australia
|
|
7.7
|
|
5.9
|
|
—
|
|
13.6
|
|
||||
Netherlands
|
|
5.0
|
|
6.0
|
|
1.4
|
|
12.4
|
|
||||
India
|
|
6.1
|
|
5.6
|
|
0.4
|
|
12.1
|
|
||||
Brazil
|
|
6.2
|
|
4.9
|
|
—
|
|
11.1
|
|
||||
Switzerland
|
|
6.7
|
|
0.9
|
|
1.9
|
|
9.5
|
|
||||
Korea
|
|
4.3
|
|
3.3
|
|
0.1
|
|
7.7
|
|
||||
Hong Kong
|
|
2.8
|
|
2.6
|
|
1.4
|
|
6.8
|
|
||||
Italy
|
|
2.8
|
|
3.8
|
|
0.2
|
|
6.8
|
|
||||
Luxembourg
|
|
6.4
|
|
0.1
|
|
—
|
|
6.5
|
|
||||
Spain
|
|
3.2
|
|
2.1
|
|
0.1
|
|
5.4
|
|
||||
Singapore
|
|
2.4
|
|
1.3
|
|
0.7
|
|
4.4
|
|
||||
Sweden
|
|
1.7
|
|
2.5
|
|
—
|
|
4.2
|
|
||||
Mexico
|
|
2.9
|
|
1.3
|
|
—
|
|
4.2
|
|
||||
Belgium
|
|
1.7
|
|
2.3
|
|
—
|
|
4.0
|
|
(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 unused 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 reference entity (“single-name”), 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.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
141
|
MODEL RISK MANAGEMENT
|
142
|
|
JPMorgan Chase & Co./2015 Annual Report
|
PRINCIPAL RISK MANAGEMENT
|
JPMorgan Chase & Co./2015 Annual Report
|
|
143
|
OPERATIONAL RISK MANAGEMENT
|
144
|
|
JPMorgan Chase & Co./2015 Annual Report
|
•
|
Internal losses,
|
•
|
External losses,
|
•
|
Scenario analysis, and
|
•
|
Business environment and internal control factors.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
145
|
LEGAL RISK MANAGEMENT
|
146
|
|
JPMorgan Chase & Co./2015 Annual Report
|
COMPLIANCE RISK MANAGEMENT
|
JPMorgan Chase & Co./2015 Annual Report
|
|
147
|
REPUTATION RISK MANAGEMENT
|
148
|
|
JPMorgan Chase & Co./2015 Annual Report
|
CAPITAL MANAGEMENT
|
•
|
Cover all material risks underlying the Firm’s business activities;
|
•
|
Maintain “well-capitalized” status and meet regulatory capital requirements;
|
•
|
Retain flexibility to take advantage of future investment opportunities;
|
•
|
Maintain sufficient capital in order to continue to build and invest in its businesses through the cycle and in stressed environments; and
|
•
|
Distribute excess capital to shareholders while balancing the other objectives stated above.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
149
|
|
Transitional
|
Fully Phased-In
|
|
|||||||||||||||||||
December 31, 2015
(in millions, except ratios)
|
Standardized
|
|
Advanced
|
|
Minimum capital ratios
(c)
|
|
Standardized
|
|
Advanced
|
|
Minimum capital ratios
(d)
|
|
||||||||||
Risk-based capital metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CET1 capital
|
$
|
175,398
|
|
|
$
|
175,398
|
|
|
|
|
$
|
173,189
|
|
|
$
|
173,189
|
|
|
|
|
||
Tier 1 capital
|
200,482
|
|
|
200,482
|
|
|
|
|
199,047
|
|
|
199,047
|
|
|
|
|
||||||
Total capital
|
234,413
|
|
|
224,616
|
|
|
|
|
229,976
|
|
|
220,179
|
|
|
|
|
||||||
Risk-weighted assets
|
1,465,262
|
|
(b)
|
1,485,336
|
|
|
|
|
1,474,870
|
|
|
1,495,520
|
|
|
|
|
||||||
CET1 capital ratio
|
12.0
|
%
|
|
11.8
|
%
|
|
4.5
|
%
|
|
11.7
|
%
|
|
11.6
|
%
|
|
10.5
|
%
|
|
||||
Tier 1 capital ratio
|
13.7
|
|
|
13.5
|
|
|
6.0
|
|
|
13.5
|
|
|
13.3
|
|
|
12.0
|
|
|
||||
Total capital ratio
|
16.0
|
|
|
15.1
|
|
|
8.0
|
|
|
15.6
|
|
|
14.7
|
|
|
14.0
|
|
|
||||
Leverage-based capital metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted average assets
|
2,361,177
|
|
|
2,361,177
|
|
|
|
|
2,360,499
|
|
|
2,360,499
|
|
|
|
|
||||||
Tier 1 leverage ratio
(a)
|
8.5
|
%
|
|
8.5
|
%
|
|
4.0
|
|
|
8.4
|
%
|
|
8.4
|
%
|
|
4.0
|
|
|
||||
SLR leverage exposure
|
NA
|
|
|
$
|
3,079,797
|
|
|
|
|
NA
|
|
|
$
|
3,079,119
|
|
|
|
|
||||
SLR
|
NA
|
|
|
6.5
|
%
|
|
NA
|
|
|
NA
|
|
|
6.5
|
%
|
|
5.0
|
|
(e)
|
|
Transitional
|
Fully Phased-In
|
|
|||||||||||||||||||
December 31, 2014
(in millions, except ratios)
|
Standardized
|
|
Advanced
|
|
Minimum capital ratios
(c)
|
|
Standardized
|
|
Advanced
|
|
Minimum capital ratios
(d)
|
|
||||||||||
Risk-based capital metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CET1 capital
|
$
|
164,426
|
|
|
$
|
164,426
|
|
|
|
|
$
|
164,514
|
|
|
$
|
164,514
|
|
|
|
|
||
Tier 1 capital
|
186,263
|
|
|
186,263
|
|
|
|
|
184,572
|
|
|
184,572
|
|
|
|
|
||||||
Total capital
|
221,117
|
|
|
210,576
|
|
|
|
|
216,719
|
|
|
206,179
|
|
|
|
|
||||||
Risk-weighted assets
|
1,472,602
|
|
(b)
|
1,608,240
|
|
|
|
|
1,561,145
|
|
|
1,619,287
|
|
|
|
|
||||||
CET1 capital ratio
|
11.2
|
%
|
|
10.2
|
%
|
|
4.5
|
%
|
|
10.5
|
%
|
|
10.2
|
%
|
|
9.5
|
%
|
|
||||
Tier 1 capital ratio
|
12.6
|
|
|
11.6
|
|
|
6.0
|
|
|
11.8
|
|
|
11.4
|
|
|
11.0
|
|
|
||||
Total capital ratio
|
15.0
|
|
|
13.1
|
|
|
8.0
|
|
|
13.9
|
|
|
12.7
|
|
|
13.0
|
|
|
||||
Leverage-based capital metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted average assets
|
2,464,915
|
|
|
2,464,915
|
|
|
|
|
2,463,902
|
|
|
2,463,902
|
|
|
|
|
||||||
Tier 1 leverage ratio
(a)
|
7.6
|
%
|
|
7.6
|
%
|
|
4.0
|
|
|
7.5
|
%
|
|
7.5
|
%
|
|
4.0
|
|
|
||||
SLR leverage exposure
|
NA
|
|
|
NA
|
|
|
|
|
NA
|
|
|
$
|
3,320,404
|
|
|
|
|
|||||
SLR
|
NA
|
|
|
NA
|
|
|
NA
|
|
|
NA
|
|
|
5.6
|
%
|
|
5.0
|
|
(e)
|
(a)
|
The Tier 1 leverage ratio is not a risk-based measure of capital. This ratio is calculated by dividing Tier 1 capital by adjusted average assets.
|
(b)
|
Effective January 1, 2015, the Basel III Standardized RWA is calculated under the Basel III definition of the Standardized approach. Prior periods were based on Basel I (inclusive of Basel 2.5).
|
(c)
|
Represents the transitional minimum capital ratios applicable to the Firm under Basel III as of December 31, 2015 and 2014.
|
(d)
|
Represents the minimum capital ratios applicable to the Firm on a fully phased-in Basel III basis. At December 31, 2015, the ratios include the Firm’s estimate of its Fully Phased-In U.S. GSIB surcharge of 3.5%, based on the final U.S. GSIB rule published by the Federal Reserve on July 20, 2015. At December 31, 2014, the ratios included the Firm’s GSIB surcharge of 2.5% which was published in November 2014 by the Financial Stability Board and calculated under the Basel Committee on Banking Supervisions Final GSIB rule. The minimum capital ratios will be fully phased-in effective January 1, 2019. For additional information on the GSIB surcharge, see page 152.
|
(e)
|
In the case of the SLR, the fully phased-in minimum ratio is effective beginning January 1, 2018.
|
150
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
151
|
152
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Capital components
|
|
||
(in millions)
|
December 31, 2015
|
||
Total stockholders’ equity
|
$
|
247,573
|
|
Less: Preferred stock
|
26,068
|
|
|
Common stockholders’ equity
|
221,505
|
|
|
Less:
|
|
||
Goodwill
|
47,325
|
|
|
Other intangible assets
|
1,015
|
|
|
Add:
|
|
||
Deferred tax liabilities
(a)
|
3,148
|
|
|
Less: Other CET1 capital adjustments
|
3,124
|
|
|
Standardized/Advanced CET1 capital
|
173,189
|
|
|
Preferred stock
|
26,068
|
|
|
Less:
|
|
||
Other Tier 1 adjustments
|
210
|
|
|
Standardized/Advanced Tier 1 capital
|
$
|
199,047
|
|
Long-term debt and other instruments qualifying as
Tier 2 capital |
$
|
16,679
|
|
Qualifying allowance for credit losses
|
14,341
|
|
|
Other
|
(91
|
)
|
|
Standardized Fully Phased-In Tier 2 capital
|
$
|
30,929
|
|
Standardized Fully Phased-in Total capital
|
$
|
229,976
|
|
Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital
|
(9,797
|
)
|
|
Advanced Fully Phased-In Tier 2 capital
|
$
|
21,132
|
|
Advanced Fully Phased-In Total capital
|
$
|
220,179
|
|
(a)
|
Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating TCE.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
153
|
(in millions)
|
December 31, 2015
|
||
Transitional CET1 capital
|
$
|
175,398
|
|
AOCI phase-in
(a)
|
427
|
|
|
CET1 capital deduction phase-in
(b)
|
(2,005
|
)
|
|
Intangible assets deduction phase-in
(c)
|
(546
|
)
|
|
Other adjustments to CET1 capital
(d)
|
(85
|
)
|
|
Fully Phased-In CET1 capital
|
$
|
173,189
|
|
(a)
|
Includes the remaining balance of AOCI related to AFS debt securities and defined benefit pension and other postretirement employee benefit (“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 deferred tax assets related to net operating loss and tax credit 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.
|
Year Ended December 31, (in millions)
|
2015
|
|
|
Standardized/Advanced CET1 capital at December 31, 2014
|
$
|
164,514
|
|
Net income applicable to common equity
|
22,927
|
|
|
Dividends declared on common stock
|
(6,484
|
)
|
|
Net purchase of treasury stock
|
(3,835
|
)
|
|
Changes in additional paid-in capital
|
(770
|
)
|
|
Changes related to AOCI
|
(2,116
|
)
|
|
Adjustment related to FVA/DVA
|
(454
|
)
|
|
Other
|
(593
|
)
|
|
Increase in Standardized/Advanced CET1 capital
|
8,675
|
|
|
Standardized/Advanced CET1 capital at December 31, 2015
|
$
|
173,189
|
|
|
|
||
Standardized/Advanced Tier 1 capital at December 31, 2014
|
$
|
184,572
|
|
Change in CET1 capital
|
8,675
|
|
|
Net issuance of noncumulative perpetual preferred stock
|
6,005
|
|
|
Other
|
(205
|
)
|
|
Increase in Standardized/Advanced Tier 1 capital
|
14,475
|
|
|
Standardized/Advanced Tier 1 capital at December 31, 2015
|
$
|
199,047
|
|
|
|
||
Standardized Tier 2 capital at December 31, 2014
|
$
|
32,147
|
|
Change in long-term debt and other instruments qualifying as Tier 2
|
(748
|
)
|
|
Change in qualifying allowance for credit losses
|
(466
|
)
|
|
Other
|
(4
|
)
|
|
Increase in Standardized Tier 2 capital
|
(1,218
|
)
|
|
Standardized Tier 2 capital at December 31, 2015
|
$
|
30,929
|
|
Standardized Total capital at December 31, 2015
|
$
|
229,976
|
|
Advanced Tier 2 capital at December 31, 2014
|
$
|
21,607
|
|
Change in long-term debt and other instruments qualifying as Tier 2
|
(748
|
)
|
|
Change in qualifying allowance for credit losses
|
277
|
|
|
Other
|
(4
|
)
|
|
Increase in Advanced Tier 2 capital
|
(475
|
)
|
|
Advanced Tier 2 capital at December 31, 2015
|
$
|
21,132
|
|
Advanced Total capital at December 31, 2015
|
$
|
220,179
|
|
154
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
Standardized
|
|
Advanced
|
|||||||||||||||||||
Year ended December 31, 2015
(in billions)
|
Credit risk RWA
|
Market risk RWA
|
Total RWA
|
|
Credit risk RWA
|
Market risk RWA
|
Operational risk
RWA
|
Total RWA
|
||||||||||||||
December 31, 2014
|
$
|
1,381
|
|
$
|
180
|
|
$
|
1,561
|
|
|
$
|
1,040
|
|
$
|
179
|
|
$
|
400
|
|
$
|
1,619
|
|
Model & data changes
(a)
|
(17
|
)
|
(15
|
)
|
(32
|
)
|
|
(38
|
)
|
(15
|
)
|
—
|
|
(53
|
)
|
|||||||
Portfolio runoff
(b)
|
(13
|
)
|
(8
|
)
|
(21
|
)
|
|
(21
|
)
|
(8
|
)
|
—
|
|
(29
|
)
|
|||||||
Movement in portfolio levels
(c)
|
(18
|
)
|
(15
|
)
|
(33
|
)
|
|
(27
|
)
|
(14
|
)
|
—
|
|
(41
|
)
|
|||||||
Changes in RWA
|
(48
|
)
|
(38
|
)
|
(86
|
)
|
|
(86
|
)
|
(37
|
)
|
—
|
|
(123
|
)
|
|||||||
December 31, 2015
|
$
|
1,333
|
|
$
|
142
|
|
$
|
1,475
|
|
|
$
|
954
|
|
$
|
142
|
|
$
|
400
|
|
$
|
1,496
|
|
(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 reduced risk from position rolloffs in legacy portfolios in Mortgage Banking, (primarily under the Advanced framework) and Broker Dealer Services (primarily under the Standardized framework); and for market risk RWA reflects reduced risk from position rolloffs in legacy portfolios in the wholesale businesses.
|
(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)
|
December 31, 2015
|
||
Fully Phased-in Tier 1 Capital
|
$
|
199,047
|
|
Total average assets
|
2,408,253
|
|
|
Less: amounts deducted from Tier 1 capital
|
47,754
|
|
|
Total adjusted average assets
(a)
|
2,360,499
|
|
|
Off-balance sheet exposures
(b)
|
718,620
|
|
|
SLR leverage exposure
|
$
|
3,079,119
|
|
SLR
|
6.5
|
%
|
(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 goodwill and other intangible assets.
|
(b)
|
Off-balance sheet exposures are calculated as the average of the three month-end spot balances in the reporting quarter.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
155
|
•
|
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
|
|
Yearly average
|
||||||||||
Year ended December 31,
(in billions)
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Consumer & Community Banking
|
|
$
|
51.0
|
|
|
$
|
51.0
|
|
|
$
|
46.0
|
|
Corporate & Investment Bank
|
|
62.0
|
|
|
61.0
|
|
|
56.5
|
|
|||
Commercial Banking
|
|
14.0
|
|
|
14.0
|
|
|
13.5
|
|
|||
Asset Management
|
|
9.0
|
|
|
9.0
|
|
|
9.0
|
|
|||
Corporate
|
|
79.7
|
|
|
72.4
|
|
|
71.4
|
|
|||
Total common stockholders’ equity
|
|
$
|
215.7
|
|
|
$
|
207.4
|
|
|
$
|
196.4
|
|
Line of business equity
|
January 1,
2016
|
|
December 31,
|
||||||||
(in billions)
|
|
2015
|
|
2014
|
|||||||
Consumer & Community Banking
|
$
|
51.0
|
|
|
$
|
51.0
|
|
|
$
|
51.0
|
|
Corporate & Investment Bank
|
64.0
|
|
|
62.0
|
|
|
61.0
|
|
|||
Commercial Banking
|
16.0
|
|
|
14.0
|
|
|
14.0
|
|
|||
Asset Management
|
9.0
|
|
|
9.0
|
|
|
9.0
|
|
|||
Corporate
|
81.5
|
|
|
85.5
|
|
|
76.7
|
|
|||
Total common stockholders’ equity
|
$
|
221.5
|
|
|
$
|
221.5
|
|
|
$
|
211.7
|
|
156
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Year ended December 31,
|
2015
|
|
|
2014
|
|
|
2013
|
|
Common dividend payout ratio
|
28
|
%
|
|
29
|
%
|
|
33
|
%
|
Year ended December 31, (in millions)
|
|
2015
|
|
2014
|
|
2013
|
||||||
Total number of shares of common stock repurchased
|
|
89.8
|
|
|
82.3
|
|
|
96.1
|
|
|||
Aggregate purchase price of common stock repurchases
|
|
$
|
5,616
|
|
|
$
|
4,760
|
|
|
$
|
4,789
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
157
|
158
|
|
JPMorgan Chase & Co./2015 Annual Report
|
LIQUIDITY RISK MANAGEMENT
|
•
|
Establishing and monitoring limits, indicators, and thresholds, including liquidity appetite tolerances;
|
•
|
Defining, monitoring, and reporting internal firmwide and legal entity stress tests, and monitoring and reporting regulatory defined stress testing;
|
•
|
Monitoring and reporting liquidity positions, balance sheet variances and funding activities;
|
•
|
Conducting ad hoc analysis to identify potential emerging liquidity risks.
|
•
|
Analyzing and understanding the liquidity characteristics of the Firm, lines of business and legal entities’ assets and liabilities, taking into account legal, regulatory, and operational restrictions;
|
•
|
Defining and monitoring firmwide and legal entity liquidity strategies, policies, guidelines, and contingency funding plans;
|
•
|
Managing liquidity within approved liquidity risk appetite tolerances and limits;
|
•
|
Setting transfer pricing in accordance with underlying liquidity characteristics of balance sheet assets and liabilities as well as certain off-balance sheet items.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
159
|
(in billions)
|
December 31, 2015
|
|
||
HQLA
|
|
|
||
Eligible cash
(a)
|
|
$
|
304
|
|
Eligible securities
(b)
|
|
192
|
|
|
Total HQLA
|
|
$
|
496
|
|
(a)
|
Cash on deposit at central banks.
|
(b)
|
Predominantly includes U.S. agency mortgage-backed securities, U.S. Treasuries, and sovereign bonds net of applicable haircuts under U.S. LCR rules.
|
160
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Deposits
|
|
|
Year ended December 31,
|
||||||||||
As of or for the period ended December 31,
|
|
|
|
Average
|
|||||||||
(in millions)
|
2015
|
2014
|
|
2015
|
2014
|
||||||||
Consumer & Community Banking
|
$
|
557,645
|
|
$
|
502,520
|
|
|
$
|
530,938
|
|
$
|
486,919
|
|
Corporate & Investment Bank
|
395,228
|
|
468,423
|
|
|
414,064
|
|
417,517
|
|
||||
Commercial Banking
|
172,470
|
|
213,682
|
|
|
184,132
|
|
190,425
|
|
||||
Asset Management
|
146,766
|
|
155,247
|
|
|
149,525
|
|
150,121
|
|
||||
Corporate
|
7,606
|
|
23,555
|
|
|
17,129
|
|
19,319
|
|
||||
Total Firm
|
$
|
1,279,715
|
|
$
|
1,363,427
|
|
|
$
|
1,295,788
|
|
$
|
1,264,301
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
161
|
Sources of funds (excluding deposits)
|
2015
|
2014
|
|
|
|||||||||
As of or for the year ended December 31,
|
|
Average
|
|||||||||||
(in millions)
|
|
2015
|
2014
|
||||||||||
Commercial paper:
|
|
|
|
|
|
||||||||
Wholesale funding
|
$
|
15,562
|
|
$
|
24,052
|
|
|
$
|
19,340
|
|
$
|
19,442
|
|
Client cash management
|
—
|
|
42,292
|
|
|
18,800
|
|
40,474
|
|
||||
Total commercial paper
|
$
|
15,562
|
|
$
|
66,344
|
|
|
$
|
38,140
|
|
$
|
59,916
|
|
|
|
|
|
|
|
||||||||
Obligations of Firm-administered multi-seller conduits
(a)
|
$
|
8,724
|
|
$
|
12,047
|
|
|
$
|
11,961
|
|
$
|
10,427
|
|
|
|
|
|
|
|
||||||||
Other borrowed funds
|
$
|
21,105
|
|
$
|
30,222
|
|
|
$
|
28,816
|
|
$
|
31,721
|
|
|
|
|
|
|
|
||||||||
Securities loaned or sold under agreements to repurchase:
|
|
|
|
|
|
||||||||
Securities sold under agreements to repurchase
|
$
|
129,598
|
|
$
|
167,077
|
|
|
$
|
168,163
|
|
$
|
181,186
|
|
Securities loaned
|
18,174
|
|
21,798
|
|
|
19,493
|
|
22,586
|
|
||||
Total securities loaned or sold under agreements to repurchase
(b)(c)(d)
|
$
|
147,772
|
|
$
|
188,875
|
|
|
$
|
187,656
|
|
$
|
203,772
|
|
|
|
|
|
|
|
||||||||
Senior notes
|
$
|
149,964
|
|
$
|
142,169
|
|
|
$
|
147,498
|
|
$
|
139,388
|
|
Trust preferred securities
|
3,969
|
|
5,435
|
|
|
4,341
|
|
5,408
|
|
||||
Subordinated debt
|
25,027
|
|
29,387
|
|
|
27,310
|
|
29,009
|
|
||||
Structured notes
|
32,813
|
|
30,021
|
|
|
31,309
|
|
30,311
|
|
||||
Total long-term unsecured funding
|
$
|
211,773
|
|
$
|
207,012
|
|
|
$
|
210,458
|
|
$
|
204,116
|
|
|
|
|
|
|
|
||||||||
Credit card securitization
(a)
|
27,906
|
|
31,197
|
|
|
30,382
|
|
28,892
|
|
||||
Other securitizations
(e)
|
1,760
|
|
2,008
|
|
|
1,909
|
|
2,734
|
|
||||
FHLB advances
|
71,581
|
|
64,994
|
|
|
70,150
|
|
60,667
|
|
||||
Other long-term secured funding
(f)
|
5,297
|
|
4,373
|
|
|
4,332
|
|
5,031
|
|
||||
Total long-term secured funding
|
$
|
106,544
|
|
$
|
102,572
|
|
|
$
|
106,773
|
|
$
|
97,324
|
|
|
|
|
|
|
|
||||||||
Preferred stock
(g)
|
$
|
26,068
|
|
$
|
20,063
|
|
|
24,040
|
|
$
|
17,018
|
|
|
Common stockholders’ equity
(g)
|
$
|
221,505
|
|
$
|
211,664
|
|
|
215,690
|
|
$
|
207,400
|
|
(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
$4.2 billion
and
$2.7 billion
as of December 31, 2015 and 2014, respectively, and average balances of
$3.9 billion
and
$4.2 billion
for the years ended December 31, 2015 and 2014, respectively.
|
(d)
|
Excluded average long-term securities loaned of
$24 million
as of December 31, 2014. There was no balance 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, which 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 149–158
, Consolidated statements of changes in stockholders’ equity, Note 22 and Note 23.
|
162
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Long-term unsecured funding
|
|
|||||
Year ended December 31,
(in millions)
|
2015
|
2014
|
||||
Issuance
|
|
|
||||
Senior notes issued in the U.S. market
|
$
|
19,212
|
|
$
|
16,322
|
|
Senior notes issued in non-U.S. markets
|
10,188
|
|
11,193
|
|
||
Total senior notes
|
29,400
|
|
27,515
|
|
||
Subordinated debt
|
3,210
|
|
4,956
|
|
||
Structured notes
|
22,165
|
|
19,806
|
|
||
Total long-term unsecured funding – issuance
|
$
|
54,775
|
|
$
|
52,277
|
|
|
|
|
||||
Maturities/redemptions
|
|
|
||||
Senior notes
|
$
|
18,454
|
|
$
|
21,169
|
|
Trust preferred securities
|
1,500
|
|
—
|
|
||
Subordinated debt
|
6,908
|
|
4,487
|
|
||
Structured notes
|
18,099
|
|
18,554
|
|
||
Total long-term unsecured funding – maturities/redemptions
|
$
|
44,961
|
|
$
|
44,210
|
|
Long-term secured funding
|
|
|
|
|
|||||||||
Year ended
December 31,
|
Issuance
|
|
Maturities/Redemptions
|
||||||||||
(in millions)
|
2015
|
2014
|
|
2015
|
2014
|
||||||||
Credit card securitization
|
$
|
6,807
|
|
$
|
8,327
|
|
|
$
|
10,130
|
|
$
|
3,774
|
|
Other securitizations
(a)
|
—
|
|
—
|
|
|
248
|
|
309
|
|
||||
FHLB advances
|
16,550
|
|
15,200
|
|
|
9,960
|
|
12,079
|
|
||||
Other long-term secured funding
|
1,105
|
|
802
|
|
|
383
|
|
3,076
|
|
||||
Total long-term secured funding
|
$
|
24,462
|
|
$
|
24,329
|
|
|
$
|
20,721
|
|
$
|
19,238
|
|
(a)
|
Other securitizations includes securitizations of residential mortgages and student loans.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
163
|
|
JPMorgan Chase & Co.
|
|
JPMorgan Chase Bank, N.A.
Chase Bank USA, N.A.
|
|
J.P. Morgan Securities LLC
|
||||||
December 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 Investors Service
|
A3
|
P-2
|
Stable
|
|
Aa3
|
P-1
|
Stable
|
|
Aa3
|
P-1
|
Stable
|
Standard & Poor’s
|
A-
|
A-2
|
Stable
|
|
A+
|
A-1
|
Stable
|
|
A+
|
A-1
|
Stable
|
Fitch Ratings
|
A+
|
F1
|
Stable
|
|
AA-
|
F1+
|
Stable
|
|
AA-
|
F1+
|
Stable
|
164
|
|
JPMorgan Chase & Co./2015 Annual Report
|
CRITICAL ACCOUNTING ESTIMATES USED BY THE FIRM
|
JPMorgan Chase & Co./2015 Annual Report
|
|
165
|
166
|
|
JPMorgan Chase & Co./2015 Annual Report
|
•
|
For PCI loans, a combined
5%
decline in housing prices and a
1%
increase in unemployment rates from current levels could imply an increase to modeled credit loss estimates of approximately
$700 million
.
|
•
|
For the residential real estate portfolio, excluding PCI loans, a combined
5%
decline in housing prices and a
1%
increase in unemployment rates from current levels could imply an increase to modeled annual loss estimates of approximately
$125 million
.
|
•
|
A
50
basis point deterioration in forecasted credit card loss rates could imply an increase to modeled annualized credit card loan loss estimates of approximately
$600 million
.
|
•
|
An increase in PD factors consistent with a one-notch downgrade in the Firm’s internal risk ratings for its entire wholesale loan portfolio could imply an increase in the Firm’s modeled loss estimates of approximately
$2.1 billion
.
|
•
|
A 100 basis point increase in estimated LGD for the Firm’s entire wholesale loan portfolio could imply an increase in the Firm’s modeled loss estimates of approximately
$175 million
.
|
December 31, 2015
(in billions, except ratio data)
|
Total assets at fair value
|
Total level 3 assets
|
|||||
Trading debt and equity instruments
|
$
|
284.1
|
|
|
$
|
11.9
|
|
Derivative receivables
(a)
|
59.7
|
|
|
7.9
|
|
||
Trading assets
|
343.8
|
|
|
19.8
|
|
||
AFS securities
|
241.8
|
|
|
0.8
|
|
||
Loans
|
2.9
|
|
|
1.5
|
|
||
MSRs
|
6.6
|
|
|
6.6
|
|
||
Private equity investments
(b)
|
1.9
|
|
|
1.7
|
|
||
Other
|
28.0
|
|
|
0.8
|
|
||
Total assets measured
at fair value on a recurring basis
|
625.0
|
|
|
31.2
|
|
||
Total assets measured at fair value on a nonrecurring basis
|
1.7
|
|
|
1.0
|
|
||
Total assets measured
at fair value
|
$
|
626.7
|
|
|
$
|
32.2
|
|
Total Firm assets
|
$
|
2,351.7
|
|
|
|
||
Level 3 assets as a percentage of total Firm assets
(a)
|
|
|
1.4
|
%
|
|||
Level 3 assets as a percentage of total Firm assets at fair value
(a)
|
|
|
5.1
|
%
|
(a)
|
For purposes of table above, the derivative receivables total reflects the impact of netting adjustments; however, the
$7.9 billion
of derivative receivables classified as level 3 does not reflect the netting adjustment as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset. However, if the Firm were to net such balances within level 3, the reduction in the level 3 derivative receivables balance would be $546 million at December 31, 2015; this is exclusive of the netting benefit associated with cash collateral, which would further reduce the level 3 balances.
|
(b)
|
Private equity instruments represent investments within the Corporate line of business.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
167
|
168
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
169
|
ACCOUNTING AND REPORTING DEVELOPMENTS
|
Financial Accounting Standards Board (“FASB
”
) Standards Adopted during 2015
|
||||
|
|
|
|
|
Standard
|
|
Summary of guidance
|
|
Effects on financial statements
|
Simplifying the presentation of debt issuance costs
|
|
• Requires that unamortized debt issuance costs be presented as a reduction of the applicable liability rather than as an asset.
• Does not impact the amortization method for these costs.
|
|
• Adopted October 1, 2015.
• There was no material impact on the Firm’s Consolidated balance sheets, and no impact on the Firm’s Consolidated results of operations.
• For further information, see Note 1.
(a)
|
Disclosures for investments in certain entities that calculate net asset value per share (or its equivalent)
|
|
• Removes the requirement to categorize investments measured under the net asset value (“NAV”) practical expedient from the fair value hierarchy.
• Limits disclosures required for investments that are eligible to be measured using the NAV practical expedient to investments for which the entity has elected the practical expedient.
|
|
• Adopted April 1, 2015.
• The application of this guidance only affected the disclosures related to these investments and had no impact on the Firm’s Consolidated balance sheets or results of operations.
• For further information, see Note 3.
(a)
|
Repurchase agreements and similar transactions
|
|
• Amends the accounting for certain secured financing transactions.
• Requires enhanced disclosures with respect to transactions recognized as sales in which exposure to the derecognized assets is retained through a separate agreement with the counterparty.
• Requires enhanced disclosures with respect to the types of financial assets pledged in secured financing transactions and the remaining contractual maturity of the secured financing transactions.
|
|
• Accounting amendments adopted January 1, 2015.
• Disclosure enhancements adopted April 1, 2015.
• There was no material impact on the Firm’s Consolidated Financial Statements.
• For further information, see Note 6 and Note 13.
|
Reporting discontinued operations and disclosures of disposals of components of an entity
|
|
• Changes the criteria for determining whether a disposition qualifies for discontinued operations presentation.
• Requires enhanced disclosures about discontinued operations and significant dispositions that do not qualify to be presented as discontinued operations.
|
|
• Adopted January 1, 2015.
• There was no material impact on the Firm’s
Consolidated Financial Statements.
|
Investments in qualified affordable housing projects
|
|
• Applies to accounting for investments in affordable housing projects that qualify for the low-income housing tax credit.
• Replaces the effective yield method and allows companies to make an accounting policy election to amortize the initial cost of its investments in proportion to the tax credits and other benefits received if certain criteria are met, and to present the amortization as a component of income tax expense.
|
|
• Adopted January 1, 2015.
• For further information, see Note 1.
(a)
|
170
|
|
JPMorgan Chase & Co./2015 Annual Report
|
FASB Standards Issued but not yet Adopted
|
||||
|
|
|
|
|
Standard
|
|
Summary of guidance
|
|
Effects on financial statements
|
Amendments to the consolidation analysis
Issued February 2015
|
|
• Eliminates the deferral issued by the FASB in February 2010 of certain VIE-related accounting requirements for certain investment funds, including mutual funds, private equity funds and hedge funds.
• Amends the evaluation of fees paid to a decision maker or a service provider, and exempts certain money market funds from consolidation.
|
|
• Required effective date January 1, 2016.
• Will not have a material impact on the Firm’s Consolidated Financial Statements.
|
Measuring the financial assets and financial liabilities of a consolidated collateralized financing entity
Issued August 2014
|
|
• Provides an alternative for consolidated financing VIEs to elect: (1) to measure their financial assets and liabilities separately under existing U.S. GAAP for fair value measurement with any differences in such fair values reflected in earnings; or (2) to measure both their financial assets and liabilities using the more observable of the fair value of the financial assets or the fair value of the financial liabilities.
|
|
• Required effective date January 1, 2016.
• Will not have a material impact on the Firm’s Consolidated Financial Statements.
|
Revenue recognition – revenue from contracts with customers
Issued May 2014
|
|
• Requires that revenue from contracts with customers be recognized upon transfer of control of a good or service in the amount of consideration expected to be received.
• Changes the accounting for certain contract costs, including whether they may be offset against revenue in the statements of income, and requires additional disclosures about revenue and contract costs.
•
May be adopted using a full retrospective approach or a modified, cumulative effect-type approach wherein the guidance is applied only to existing contracts as of the date of initial application, and to new contracts transacted after that date.
|
|
• Required effective date January 1, 2018.
(a)
• Because the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other U.S. GAAP, the Firm does not expect the new revenue recognition guidance to have a material impact on the elements of its statements of income most closely associated with financial instruments, including Securities Gains, Interest Income and Interest Expense.
• The Firm plans to adopt the revenue recognition guidance in the first quarter of 2018 and is currently evaluating the potential impact on the Consolidated Financial statements and its selection of transition method.
|
Recognition and measurement of financial assets and financial liabilities
Issued January 2016
|
|
• Requires that certain equity instruments be measured at fair value, with changes in fair value recognized in earnings.
• For financial liabilities where the fair value option has been elected, the portion of the total change in fair value caused by changes in Firm’s own credit risk is required to be presented separately in Other comprehensive income (“OCI”).
• Generally requires a cumulative-effective adjustment to its retained earnings as of the beginning of the reporting period of adoption.
|
|
• Required effective date January 1, 2018.
(b)
• Adoption of the DVA guidance as of January 1, 2016, would result in a reclassification from retained earnings to AOCI, reflecting the cumulative change in value to change in the Firm’s credit spread subsequent to the issuance of each liability. The amount of this reclassification would be immaterial as of January 1, 2016.
• The Firm is evaluating the potential impact of the remaining guidance on the Consolidated Financial Statements.
|
(a)
|
Early adoption is permitted.
|
(b)
|
Early adoption is permitted for the requirement to report changes in fair value due to the Firm’s own credit risk in OCI, and the Firm is planning to early adopt this guidance during 2016.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
171
|
NONEXCHANGE-TRADED COMMODITY DERIVATIVE CONTRACTS AT FAIR VALUE
|
Year ended December 31, 2015
(in millions)
|
Asset position
|
|
Liability position
|
||||
Net fair value of contracts outstanding at January 1, 2015
|
$
|
9,826
|
|
|
$
|
13,926
|
|
Effect of legally enforceable master netting agreements
|
14,327
|
|
|
13,211
|
|
||
Gross fair value of contracts outstanding at January 1, 2015
|
24,153
|
|
|
27,137
|
|
||
Contracts realized or otherwise settled
|
(13,419
|
)
|
|
(12,583
|
)
|
||
Fair value of new contracts
|
3,704
|
|
|
5,027
|
|
||
Changes in fair values attributable to changes in valuation techniques and assumptions
|
—
|
|
|
—
|
|
||
Other changes in fair value
|
1,428
|
|
|
(1,300
|
)
|
||
Gross fair value of contracts outstanding at December 31, 2015
|
15,866
|
|
|
18,281
|
|
||
Effect of legally enforceable master netting agreements
|
(6,772
|
)
|
|
(6,256
|
)
|
||
Net fair value of contracts outstanding at December 31, 2015
|
$
|
9,094
|
|
|
$
|
12,025
|
|
December 31, 2015 (in millions)
|
Asset position
|
|
Liability position
|
||||
Maturity less than 1 year
|
$
|
8,487
|
|
|
$
|
9,242
|
|
Maturity 1–3 years
|
5,636
|
|
|
6,148
|
|
||
Maturity 4–5 years
|
1,122
|
|
|
1,931
|
|
||
Maturity in excess of 5 years
|
621
|
|
|
960
|
|
||
Gross fair value of contracts outstanding at December 31, 2015
|
15,866
|
|
|
18,281
|
|
||
Effect of legally enforceable master netting agreements
|
(6,772
|
)
|
|
(6,256
|
)
|
||
Net fair value of contracts outstanding at December 31, 2015
|
$
|
9,094
|
|
|
$
|
12,025
|
|
172
|
|
JPMorgan Chase & Co./2015 Annual Report
|
FORWARD-LOOKING STATEMENTS
|
•
|
Local, regional and global business, economic and political conditions and geopolitical events;
|
•
|
Changes in laws and regulatory requirements, including
|
•
|
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 businesses;
|
•
|
Acceptance of the Firm’s new and existing products and services by the marketplace and the ability of the Firm to innovate and 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 and the Firm’s ability to deal effectively with disruptions caused by the foregoing;
|
•
|
Ability of the Firm to maintain the security of its financial, accounting, technology, data processing and other operating systems and facilities; and
|
•
|
Ability of the Firm to effectively defend itself against cyberattacks and other attempts by unauthorized parties to access information of the Firm or its customers or to disrupt the Firm’s systems; and
|
•
|
The other risks and uncertainties detailed in Part I, Item 1A: Risk Factors in the Firm’s Annual Report on Form 10-K for the year ended December 31, 2015.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
173
|
174
|
|
JPMorgan Chase & Co./2015 Annual Report
|
PricewaterhouseCoopers LLP
300 Madison Avenue
New York, NY 10017
|
JPMorgan Chase & Co./2015 Annual Report
|
|
175
|
Year ended December 31, (in millions, except per share data)
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Revenue
|
|
|
|
|
|
|
||||||
Investment banking fees
|
|
$
|
6,751
|
|
|
$
|
6,542
|
|
|
$
|
6,354
|
|
Principal transactions
|
|
10,408
|
|
|
10,531
|
|
|
10,141
|
|
|||
Lending- and deposit-related fees
|
|
5,694
|
|
|
5,801
|
|
|
5,945
|
|
|||
Asset management, administration and commissions
|
|
15,509
|
|
|
15,931
|
|
|
15,106
|
|
|||
Securities gains
(a)
|
|
202
|
|
|
77
|
|
|
667
|
|
|||
Mortgage fees and related income
|
|
2,513
|
|
|
3,563
|
|
|
5,205
|
|
|||
Card income
|
|
5,924
|
|
|
6,020
|
|
|
6,022
|
|
|||
Other income
|
|
3,032
|
|
|
3,013
|
|
|
4,608
|
|
|||
Noninterest revenue
|
|
50,033
|
|
|
51,478
|
|
|
54,048
|
|
|||
Interest income
|
|
50,973
|
|
|
51,531
|
|
|
52,669
|
|
|||
Interest expense
|
|
7,463
|
|
|
7,897
|
|
|
9,350
|
|
|||
Net interest income
|
|
43,510
|
|
|
43,634
|
|
|
43,319
|
|
|||
Total net revenue
|
|
93,543
|
|
|
95,112
|
|
|
97,367
|
|
|||
|
|
|
|
|
|
|
||||||
Provision for credit losses
|
|
3,827
|
|
|
3,139
|
|
|
225
|
|
|||
|
|
|
|
|
|
|
||||||
Noninterest expense
|
|
|
|
|
|
|
||||||
Compensation expense
|
|
29,750
|
|
|
30,160
|
|
|
30,810
|
|
|||
Occupancy expense
|
|
3,768
|
|
|
3,909
|
|
|
3,693
|
|
|||
Technology, communications and equipment expense
|
|
6,193
|
|
|
5,804
|
|
|
5,425
|
|
|||
Professional and outside services
|
|
7,002
|
|
|
7,705
|
|
|
7,641
|
|
|||
Marketing
|
|
2,708
|
|
|
2,550
|
|
|
2,500
|
|
|||
Other expense
|
|
9,593
|
|
|
11,146
|
|
|
20,398
|
|
|||
Total noninterest expense
|
|
59,014
|
|
|
61,274
|
|
|
70,467
|
|
|||
Income before income tax expense
|
|
30,702
|
|
|
30,699
|
|
|
26,675
|
|
|||
Income tax expense
|
|
6,260
|
|
|
8,954
|
|
|
8,789
|
|
|||
Net income
|
|
$
|
24,442
|
|
|
$
|
21,745
|
|
|
$
|
17,886
|
|
Net income applicable to common stockholders
|
|
$
|
22,406
|
|
|
$
|
20,077
|
|
|
$
|
16,557
|
|
Net income per common share data
|
|
|
|
|
|
|
||||||
Basic earnings per share
|
|
$
|
6.05
|
|
|
$
|
5.33
|
|
|
$
|
4.38
|
|
Diluted earnings per share
|
|
6.00
|
|
|
5.29
|
|
|
4.34
|
|
|||
|
|
|
|
|
|
|
||||||
Weighted-average basic shares
|
|
3,700.4
|
|
|
3,763.5
|
|
|
3,782.4
|
|
|||
Weighted-average diluted shares
|
|
3,732.8
|
|
|
3,797.5
|
|
|
3,814.9
|
|
|||
Cash dividends declared per common share
|
|
$
|
1.72
|
|
|
$
|
1.58
|
|
|
$
|
1.44
|
|
(a)
|
The Firm recognized other-than-temporary impairment (“OTTI”) losses of
$22 million
,
$4 million
, and
$21 million
for the years ended
December 31, 2015
,
2014
and
2013
, respectively.
|
176
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Year ended December 31, (in millions)
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Net income
|
|
$
|
24,442
|
|
|
$
|
21,745
|
|
|
$
|
17,886
|
|
Other comprehensive income/(loss), after–tax
|
|
|
|
|
|
|
||||||
Unrealized gains/(losses) on investment securities
|
|
(2,144
|
)
|
|
1,975
|
|
|
(4,070
|
)
|
|||
Translation adjustments, net of hedges
|
|
(15
|
)
|
|
(11
|
)
|
|
(41
|
)
|
|||
Cash flow hedges
|
|
51
|
|
|
44
|
|
|
(259
|
)
|
|||
Defined benefit pension and OPEB plans
|
|
111
|
|
|
(1,018
|
)
|
|
1,467
|
|
|||
Total other comprehensive income/(loss), after–tax
|
|
(1,997
|
)
|
|
990
|
|
|
(2,903
|
)
|
|||
Comprehensive income
|
|
$
|
22,445
|
|
|
$
|
22,735
|
|
|
$
|
14,983
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
177
|
December 31, (in millions, except share data)
|
2015
|
|
2014
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
20,490
|
|
|
$
|
27,831
|
|
Deposits with banks
|
340,015
|
|
|
484,477
|
|
||
Federal funds sold and securities purchased under resale agreements (included
$23,141
and $28,585 at fair value)
|
212,575
|
|
|
215,803
|
|
||
Securities borrowed (included
$395
and $992 at fair value)
|
98,721
|
|
|
110,435
|
|
||
Trading assets (included assets pledged of
$115,284
and $125,034)
|
343,839
|
|
|
398,988
|
|
||
Securities (included
$241,754
and $298,752 at fair value and assets pledged of
$14,883
and $24,912)
|
290,827
|
|
|
348,004
|
|
||
Loans (included
$2,861
and $2,611 at fair value)
|
837,299
|
|
|
757,336
|
|
||
Allowance for loan losses
|
(13,555
|
)
|
|
(14,185
|
)
|
||
Loans, net of allowance for loan losses
|
823,744
|
|
|
743,151
|
|
||
Accrued interest and accounts receivable
|
46,605
|
|
|
70,079
|
|
||
Premises and equipment
|
14,362
|
|
|
15,133
|
|
||
Goodwill
|
47,325
|
|
|
47,647
|
|
||
Mortgage servicing rights
|
6,608
|
|
|
7,436
|
|
||
Other intangible assets
|
1,015
|
|
|
1,192
|
|
||
Other assets (included
$7,604
and $11,909 at fair value and assets pledged of
$1,286
and $1,399)
|
105,572
|
|
|
102,098
|
|
||
Total assets
(a)
|
$
|
2,351,698
|
|
|
$
|
2,572,274
|
|
Liabilities
|
|
|
|
||||
Deposits (included
$12,516
and $8,807 at fair value)
|
$
|
1,279,715
|
|
|
$
|
1,363,427
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements (included
$3,526
and $2,979
at fair value)
|
152,678
|
|
|
192,101
|
|
||
Commercial paper
|
15,562
|
|
|
66,344
|
|
||
Other borrowed funds (included
$9,911
and $14,739 at fair value)
|
21,105
|
|
|
30,222
|
|
||
Trading liabilities
|
126,897
|
|
|
152,815
|
|
||
Accounts payable and other liabilities (included
$4,401
and $4,155 at fair value)
|
177,638
|
|
|
206,939
|
|
||
Beneficial interests issued by consolidated variable interest entities (included
$787
and $2,162 at fair value)
|
41,879
|
|
|
52,320
|
|
||
Long-term debt (included
$33,065
and $30,226
at fair value)
|
288,651
|
|
|
276,379
|
|
||
Total liabilities
(a)
|
2,104,125
|
|
|
2,340,547
|
|
||
Commitments and contingencies (see Notes 29, 30 and 31)
|
|
|
|
|
|
||
Stockholders’ equity
|
|
|
|
||||
Preferred stock ($1 par value; authorized
200,000,000 shares: issued
2,606,750
and 2,006,250 shares)
|
26,068
|
|
|
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
|
92,500
|
|
|
93,270
|
|
||
Retained earnings
|
146,420
|
|
|
129,977
|
|
||
Accumulated other comprehensive income
|
192
|
|
|
2,189
|
|
||
Shares held in restricted stock units (“RSU”) trust, at cost (
472,953
shares)
|
(21
|
)
|
|
(21
|
)
|
||
Treasury stock, at cost (
441,459,392
and 390,144,630 shares)
|
(21,691
|
)
|
|
(17,856
|
)
|
||
Total stockholders’ equity
|
247,573
|
|
|
231,727
|
|
||
Total liabilities and stockholders’ equity
|
$
|
2,351,698
|
|
|
$
|
2,572,274
|
|
(a)
|
The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at
December 31, 2015
and
2014
. The difference between total VIE assets and liabilities represents the Firm’s interests in those entities, which were eliminated in consolidation.
|
December 31, (in millions)
|
2015
|
|
2014
|
||||
Assets
|
|
|
|
||||
Trading assets
|
$
|
3,736
|
|
|
$
|
9,090
|
|
Loans
|
75,104
|
|
|
68,880
|
|
||
All other assets
|
2,765
|
|
|
1,815
|
|
||
Total assets
|
$
|
81,605
|
|
|
$
|
79,785
|
|
Liabilities
|
|
|
|
||||
Beneficial interests issued by consolidated variable interest entities
|
$
|
41,879
|
|
|
$
|
52,320
|
|
All other liabilities
|
809
|
|
|
949
|
|
||
Total liabilities
|
$
|
42,688
|
|
|
$
|
53,269
|
|
178
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Year ended December 31, (in millions, except per share data)
|
|
2015
|
|
2014
|
|
2013
|
||||||
Preferred stock
|
|
|
|
|
|
|
||||||
Balance at January 1
|
|
$
|
20,063
|
|
|
$
|
11,158
|
|
|
$
|
9,058
|
|
Issuance of preferred stock
|
|
6,005
|
|
|
8,905
|
|
|
3,900
|
|
|||
Redemption of preferred stock
|
|
—
|
|
|
—
|
|
|
(1,800
|
)
|
|||
Balance at December 31
|
|
26,068
|
|
|
20,063
|
|
|
11,158
|
|
|||
Common stock
|
|
|
|
|
|
|
||||||
Balance at January 1 and December 31
|
|
4,105
|
|
|
4,105
|
|
|
4,105
|
|
|||
Additional paid-in capital
|
|
|
|
|
|
|
||||||
Balance at January 1
|
|
93,270
|
|
|
93,828
|
|
|
94,604
|
|
|||
Shares issued and commitments to issue common stock for employee stock-based compensation awards, and related tax effects
|
|
(436
|
)
|
|
(508
|
)
|
|
(752
|
)
|
|||
Other
|
|
(334
|
)
|
|
(50
|
)
|
|
(24
|
)
|
|||
Balance at December 31
|
|
92,500
|
|
|
93,270
|
|
|
93,828
|
|
|||
Retained earnings
|
|
|
|
|
|
|
||||||
Balance at January 1
|
|
129,977
|
|
|
115,435
|
|
|
104,223
|
|
|||
Cumulative effect of change in accounting principle
|
|
—
|
|
|
—
|
|
|
(284
|
)
|
|||
Balance at beginning of year, adjusted
|
|
129,977
|
|
|
115,435
|
|
|
103,939
|
|
|||
Net income
|
|
24,442
|
|
|
21,745
|
|
|
17,886
|
|
|||
Dividends declared:
|
|
|
|
|
|
|
||||||
Preferred stock
|
|
(1,515
|
)
|
|
(1,125
|
)
|
|
(805
|
)
|
|||
Common stock (
$1.72
, $1.58 and $1.44 per share for 2015, 2014 and 2013, respectively)
|
|
(6,484
|
)
|
|
(6,078
|
)
|
|
(5,585
|
)
|
|||
Balance at December 31
|
|
146,420
|
|
|
129,977
|
|
|
115,435
|
|
|||
Accumulated other comprehensive income
|
|
|
|
|
|
|
||||||
Balance at January 1
|
|
2,189
|
|
|
1,199
|
|
|
4,102
|
|
|||
Other comprehensive income/(loss)
|
|
(1,997
|
)
|
|
990
|
|
|
(2,903
|
)
|
|||
Balance at December 31
|
|
192
|
|
|
2,189
|
|
|
1,199
|
|
|||
Shares held in RSU Trust, at cost
|
|
|
|
|
|
|
||||||
Balance at January 1 and December 31
|
|
(21
|
)
|
|
(21
|
)
|
|
(21
|
)
|
|||
Treasury stock, at cost
|
|
|
|
|
|
|
||||||
Balance at January 1
|
|
(17,856
|
)
|
|
(14,847
|
)
|
|
(12,002
|
)
|
|||
Purchase of treasury stock
|
|
(5,616
|
)
|
|
(4,760
|
)
|
|
(4,789
|
)
|
|||
Reissuance from treasury stock
|
|
1,781
|
|
|
1,751
|
|
|
1,944
|
|
|||
Balance at December 31
|
|
(21,691
|
)
|
|
(17,856
|
)
|
|
(14,847
|
)
|
|||
Total stockholders
’
equity
|
|
$
|
247,573
|
|
|
$
|
231,727
|
|
|
$
|
210,857
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
179
|
Year ended December 31, (in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
24,442
|
|
|
$
|
21,745
|
|
|
$
|
17,886
|
|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
|
|
|
|
|
||||||
Provision for credit losses
|
3,827
|
|
|
3,139
|
|
|
225
|
|
|||
Depreciation and amortization
|
4,940
|
|
|
4,759
|
|
|
5,306
|
|
|||
Deferred tax expense
|
1,333
|
|
|
4,362
|
|
|
8,139
|
|
|||
Other
|
1,785
|
|
|
2,113
|
|
|
1,552
|
|
|||
Originations and purchases of loans held-for-sale
|
(48,109
|
)
|
|
(67,525
|
)
|
|
(75,928
|
)
|
|||
Proceeds from sales, securitizations and paydowns of loans held-for-sale
|
49,363
|
|
|
71,407
|
|
|
73,566
|
|
|||
Net change in:
|
|
|
|
|
|
||||||
Trading assets
|
62,212
|
|
|
(24,814
|
)
|
|
89,110
|
|
|||
Securities borrowed
|
12,165
|
|
|
1,020
|
|
|
7,562
|
|
|||
Accrued interest and accounts receivable
|
22,664
|
|
|
(3,637
|
)
|
|
(2,340
|
)
|
|||
Other assets
|
(3,701
|
)
|
|
(9,166
|
)
|
|
526
|
|
|||
Trading liabilities
|
(28,972
|
)
|
|
26,818
|
|
|
(9,772
|
)
|
|||
Accounts payable and other liabilities
|
(23,361
|
)
|
|
6,058
|
|
|
(5,750
|
)
|
|||
Other operating adjustments
|
(5,122
|
)
|
|
314
|
|
|
(2,129
|
)
|
|||
Net cash provided by operating activities
|
73,466
|
|
|
36,593
|
|
|
107,953
|
|
|||
Investing activities
|
|
|
|
|
|
||||||
Net change in:
|
|
|
|
|
|
||||||
Deposits with banks
|
144,462
|
|
|
(168,426
|
)
|
|
(194,363
|
)
|
|||
Federal funds sold and securities purchased under resale agreements
|
3,190
|
|
|
30,848
|
|
|
47,726
|
|
|||
Held-to-maturity securities:
|
|
|
|
|
|
||||||
Proceeds from paydowns and maturities
|
6,099
|
|
|
4,169
|
|
|
189
|
|
|||
Purchases
|
(6,204
|
)
|
|
(10,345
|
)
|
|
(24,214
|
)
|
|||
Available-for-sale securities:
|
|
|
|
|
|
||||||
Proceeds from paydowns and maturities
|
76,448
|
|
|
90,664
|
|
|
89,631
|
|
|||
Proceeds from sales
|
40,444
|
|
|
38,411
|
|
|
73,312
|
|
|||
Purchases
|
(70,804
|
)
|
|
(121,504
|
)
|
|
(130,266
|
)
|
|||
Proceeds from sales and securitizations of loans held-for-investment
|
18,604
|
|
|
20,115
|
|
|
12,033
|
|
|||
Other changes in loans, net
|
(108,962
|
)
|
|
(51,749
|
)
|
|
(23,721
|
)
|
|||
All other investing activities, net
|
3,703
|
|
|
2,181
|
|
|
(828
|
)
|
|||
Net cash provided by/(used in) investing activities
|
106,980
|
|
|
(165,636
|
)
|
|
(150,501
|
)
|
|||
Financing activities
|
|
|
|
|
|
||||||
Net change in:
|
|
|
|
|
|
||||||
Deposits
|
(88,678
|
)
|
|
89,346
|
|
|
81,476
|
|
|||
Federal funds purchased and securities loaned or sold under repurchase agreements
|
(39,415
|
)
|
|
10,905
|
|
|
(58,867
|
)
|
|||
Commercial paper and other borrowed funds
|
(57,828
|
)
|
|
9,242
|
|
|
2,784
|
|
|||
Beneficial interests issued by consolidated variable interest entities
|
(5,632
|
)
|
|
(834
|
)
|
|
(10,433
|
)
|
|||
Proceeds from long-term borrowings
|
79,611
|
|
|
78,515
|
|
|
83,546
|
|
|||
Payments of long-term borrowings
|
(67,247
|
)
|
|
(65,275
|
)
|
|
(60,497
|
)
|
|||
Proceeds from issuance of preferred stock
|
5,893
|
|
|
8,847
|
|
|
3,873
|
|
|||
Redemption of preferred stock
|
—
|
|
|
—
|
|
|
(1,800
|
)
|
|||
Treasury stock and warrants repurchased
|
(5,616
|
)
|
|
(4,760
|
)
|
|
(4,789
|
)
|
|||
Dividends paid
|
(7,873
|
)
|
|
(6,990
|
)
|
|
(6,056
|
)
|
|||
All other financing activities, net
|
(726
|
)
|
|
(768
|
)
|
|
(913
|
)
|
|||
Net cash provided by/(used in) financing activities
|
(187,511
|
)
|
|
118,228
|
|
|
28,324
|
|
|||
Effect of exchange rate changes on cash and due from banks
|
(276
|
)
|
|
(1,125
|
)
|
|
272
|
|
|||
Net decrease in cash and due from banks
|
(7,341
|
)
|
|
(11,940
|
)
|
|
(13,952
|
)
|
|||
Cash and due from banks at the beginning of the period
|
27,831
|
|
|
39,771
|
|
|
53,723
|
|
|||
Cash and due from banks at the end of the period
|
$
|
20,490
|
|
|
$
|
27,831
|
|
|
$
|
39,771
|
|
Cash interest paid
|
$
|
7,220
|
|
|
$
|
8,194
|
|
|
$
|
9,573
|
|
Cash income taxes paid, net
|
9,423
|
|
|
1,392
|
|
|
3,502
|
|
180
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
181
|
182
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Fair value measurement
|
Note 3
|
|
Page 184
|
Fair value option
|
Note 4
|
|
Page 203
|
Derivative instruments
|
Note 6
|
|
Page 208
|
Noninterest revenue
|
Note 7
|
|
Page 221
|
Interest income and interest expense
|
Note 8
|
|
Page 223
|
Pension and other postretirement employee benefit plans
|
Note 9
|
|
Page 223
|
Employee stock-based incentives
|
Note 10
|
|
Page 231
|
Securities
|
Note 12
|
|
Page 233
|
Securities financing activities
|
Note 13
|
|
Page 238
|
Loans
|
Note 14
|
|
Page 242
|
Allowance for credit losses
|
Note 15
|
|
Page 262
|
Variable interest entities
|
Note 16
|
|
Page 266
|
Goodwill and other intangible assets
|
Note 17
|
|
Page 274
|
Premises and equipment
|
Note 18
|
|
Page 278
|
Long-term debt
|
Note 21
|
|
Page 279
|
Income taxes
|
Note 26
|
|
Page 285
|
Off–balance sheet lending-related financial instruments, guarantees and other commitments
|
Note 29
|
|
Page 290
|
Litigation
|
Note 31
|
|
Page 297
|
JPMorgan Chase & Co./2015 Annual Report
|
|
183
|
•
|
Liquidity valuation adjustments are considered where an observable external price or valuation parameter exists but is of lower reliability, potentially due to lower market activity. Liquidity valuation adjustments are applied and determined based on current market conditions. Factors that may be considered in determining the liquidity adjustment include analysis of: (1) the estimated bid-offer spread for the instrument being traded; (2) alternative pricing points for similar instruments in active markets; and (3) the range of reasonable values that the price or parameter could take.
|
•
|
The Firm
manages certain portfolios of financial instruments on the basis of net open risk exposure and, as permitted by U.S. GAAP, has elected to estimate the fair value of such portfolios on the basis of a transfer of the entire net open risk position in an orderly transaction. Where this is the case, valuation adjustments may be necessary to reflect the cost of exiting a larger-than-normal market-size net open risk position. Where applied, such adjustments are based on factors that a relevant market participant would consider in the transfer of the net open risk position, including the size of the adverse market move that is likely to occur during the period required to reduce the net open risk position to a normal market-size.
|
184
|
|
JPMorgan Chase & Co./2015 Annual Report
|
•
|
Unobservable parameter valuation adjustments may be made when positions are valued using prices or input parameters to valuation models that are unobservable due to a lack of market activity or because they cannot be implied from observable market data. Such prices or parameters must be estimated and are, therefore, subject to management judgment. Unobservable parameter valuation adjustments are applied to reflect the uncertainty inherent in the resulting valuation estimate.
|
•
|
Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
•
|
Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
|
•
|
Level 3 – one or more inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
185
|
186
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Product/instrument
|
Valuation methodology, inputs and assumptions
|
Classifications in the valuation hierarchy
|
Investment and trading securities
|
Quoted market prices are used where available.
|
Level 1
|
|
In the absence of quoted market prices, securities are valued based on:
|
Level 2 or 3
|
|
• Observable market prices for similar securities
|
|
|
•
Relevant broker quotes
|
|
|
•
Discounted cash flows
|
|
|
In addition, the following inputs to discounted cash flows are used for the following products:
|
|
|
Mortgage- and asset-backed securities specific inputs:
|
|
|
•
Collateral characteristics
|
|
|
• Deal-specific payment and loss allocations
|
|
|
• Current market assumptions related to yield, prepayment speed, conditional default rates and loss severity
|
|
|
Collateralized loan obligations (“CLOs”), specific inputs:
|
|
|
•
Collateral characteristics
|
|
|
•
Deal-specific payment and loss allocations
|
|
|
•
Expected prepayment speed, conditional default rates, loss severity
|
|
|
•
Credit spreads
|
|
|
• Credit rating data
|
|
Physical commodities
|
Valued using observable market prices or data
|
Predominantly Level 1 and 2
|
Derivatives
|
Exchange-traded derivatives that are actively traded and valued using the exchange price.
|
Level 1
|
|
Derivatives that are valued using models such as the Black-Scholes option pricing model, simulation models, or a combination of models, that use observable or unobservable valuation inputs (e.g., plain vanilla options and interest rate and credit default swaps). Inputs include:
|
Level 2 or 3
|
|
|
|
|
||
|
•
Contractual terms including the period to maturity
|
|
|
•
Readily observable parameters including interest rates and volatility
|
|
|
•
Credit quality of the counterparty and of the Firm
|
|
|
•
Market funding levels
|
|
|
•
Correlation levels
|
|
|
In addition, the following specific inputs are used for the following derivatives that are valued based on models with significant unobservable inputs:
|
|
|
Structured credit derivatives specific inputs include:
|
|
|
•
CDS spreads and recovery rates
|
|
|
•
Credit correlation between the underlying debt instruments (levels are modeled on a transaction basis and calibrated to liquid benchmark tranche indices)
|
|
|
|
|
|
|
|
|
•
Actual transactions, where available, are used to regularly recalibrate unobservable parameters
|
|
|
|
|
|
Certain long-dated equity option specific inputs include:
|
|
|
•
Long-dated equity volatilities
|
|
|
Certain interest rate and foreign exchange (“FX
”
) exotic options specific inputs include:
|
|
|
•
Interest rate correlation
|
|
|
•
Interest rate spread volatility
|
|
|
•
Foreign exchange correlation
|
|
|
•
Correlation between interest rates and foreign exchange rates
|
|
|
•
Parameters describing the evolution of underlying interest rates
|
|
|
Certain commodity derivatives specific inputs include:
|
|
|
•
Commodity volatility
|
|
|
• Forward commodity price
|
|
|
Additionally, adjustments are made to reflect counterparty credit quality (credit valuation adjustments or “CVA”), the Firm’s own creditworthiness (debit valuation adjustments or “DVA”), and funding valuation adjustment (“FVA”) to incorporate the impact of funding. See page 200 of this Note.
|
|
|
|
|
|
|
|
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
187
|
Product/instrument
|
Valuation methodology, inputs and assumptions
|
Classification in the valuation hierarchy
|
|
Mortgage servicing rights (“MSRs”)
|
See Mortgage servicing rights in Note 17.
|
Level 3
|
|
|
|||
Private equity direct investments
|
Private equity direct investments
|
Level 2 or 3
|
|
|
Fair value is estimated using all available information and considering the range of potential inputs, including:
|
|
|
|
• Transaction prices
|
|
|
|
• Trading multiples of comparable public companies
|
|
|
|
• Operating performance of the underlying portfolio company
|
|
|
|
• Additional available inputs relevant to the investment
|
|
|
|
• Adjustments as required, since comparable public companies are not identical to the company being valued, and for company-specific issues and lack of liquidity
|
|
|
|
Public investments held in the Private Equity portfolio
|
Level 1 or 2
|
|
|
• Valued using observable market prices less adjustments for relevant restrictions, where applicable
|
|
|
|
|
||
Fund investments (i.e., mutual/collective investment funds, private equity funds, hedge funds, and real estate funds)
|
Net asset value (“NAV”)
|
|
|
• NAV is validated by sufficient level of observable activity (i.e., purchases and sales)
|
Level 1
|
||
|
|||
• Adjustments to the NAV as required, for restrictions on redemption (e.g., lock up periods or withdrawal limitations) or where observable activity is limited
|
Level 2 or 3
(a)
|
||
|
|
||
Beneficial interests issued by consolidated VIEs
|
Valued using observable market information, where available
|
Level 2 or 3
|
|
In the absence of observable market information, valuations are based on the fair value of the underlying assets held by the VIE
|
|
||
Long-term debt, not carried at fair value
|
Valuations are based on discounted cash flows, which consider:
|
Predominantly level 2
|
|
•
Market rates for respective maturity
|
|||
|
• The Firm’s own creditworthiness (DVA). See page 200 of
this Note.
|
||
Structured notes (included in deposits, other borrowed funds and long-term debt)
|
• Valuations are based on discounted cash flow analyses that consider the embedded derivative and the terms and payment structure of the note.
• The embedded derivative features are considered using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that use observable or unobservable valuation inputs, depending on the embedded derivative. The specific inputs used vary according to the nature of the embedded derivative features, as described in the discussion above regarding derivative valuation. Adjustments are then made to this base valuation to reflect the Firm’s own creditworthiness (DVA) and to incorporate the impact of funding (FVA). See page 200 of this Note.
|
Level 2 or 3
|
|
(a)
|
Excludes certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient.
|
188
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
189
|
|
Fair value hierarchy
|
|
|
|
|
|||||||||||||
December 31, 2014 (in millions)
|
Level 1
|
Level 2
|
|
Level 3
|
|
Derivative netting adjustments
|
|
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
|
|
624
|
|
|
431
|
|
|
—
|
|
|
105,945
|
|
|||||
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
|
|
146,087
|
|
|
22,489
|
|
|
—
|
|
|
319,889
|
|
|||||
Derivative receivables:
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate
|
473
|
|
945,635
|
|
(g)
|
4,149
|
|
|
(916,532
|
)
|
(g)
|
33,725
|
|
|||||
Credit
|
—
|
|
73,853
|
|
|
2,989
|
|
|
(75,004
|
)
|
|
1,838
|
|
|||||
Foreign exchange
|
758
|
|
212,153
|
|
(g)
|
2,276
|
|
|
(193,934
|
)
|
(g)
|
21,253
|
|
|||||
Equity
|
—
|
|
39,937
|
|
(g)
|
2,552
|
|
|
(34,312
|
)
|
(g)
|
8,177
|
|
|||||
Commodity
|
247
|
|
42,807
|
|
|
599
|
|
|
(29,671
|
)
|
|
13,982
|
|
|||||
Total derivative receivables
(e)
|
1,478
|
|
1,314,385
|
|
(g)
|
12,565
|
|
|
(1,249,453
|
)
|
(g)
|
78,975
|
|
|||||
Total trading assets
|
152,791
|
|
1,460,472
|
|
(g)
|
35,054
|
|
|
(1,249,453
|
)
|
(g)
|
398,864
|
|
|||||
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
|
|
|
2,225
|
|
|
—
|
|
|
5,497
|
|
|||||
All other
|
4,018
|
|
17
|
|
|
959
|
|
|
—
|
|
|
4,994
|
|
|||||
Total other assets
|
4,666
|
|
2,641
|
|
|
3,184
|
|
|
—
|
|
|
10,491
|
|
|||||
Total assets measured at fair value on a recurring basis
|
$
|
197,652
|
|
$
|
1,750,280
|
|
(g)
|
$
|
49,252
|
|
|
$
|
(1,249,453
|
)
|
(g)
|
$
|
747,731
|
|
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
|
|
(g)
|
3,523
|
|
|
(900,634
|
)
|
(g)
|
17,745
|
|
|||||
Credit
|
—
|
|
73,095
|
|
|
2,800
|
|
|
(74,302
|
)
|
|
1,593
|
|
|||||
Foreign exchange
|
746
|
|
221,066
|
|
(g)
|
2,802
|
|
|
(201,644
|
)
|
(g)
|
22,970
|
|
|||||
Equity
|
—
|
|
41,925
|
|
(g)
|
4,337
|
|
|
(34,522
|
)
|
(g)
|
11,740
|
|
|||||
Commodity
|
141
|
|
44,318
|
|
|
1,164
|
|
|
(28,555
|
)
|
|
17,068
|
|
|||||
Total derivative payables
(e)
|
1,386
|
|
1,294,761
|
|
(g)
|
14,626
|
|
|
(1,239,657
|
)
|
(g)
|
71,116
|
|
|||||
Total trading liabilities
|
64,300
|
|
1,313,474
|
|
(g)
|
14,698
|
|
|
(1,239,657
|
)
|
(g)
|
152,815
|
|
|||||
Accounts payable and other liabilities
(g)
|
4,129
|
|
—
|
|
|
26
|
|
|
—
|
|
|
4,155
|
|
|||||
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
|
$
|
68,429
|
|
$
|
1,355,052
|
|
(g)
|
$
|
32,059
|
|
|
$
|
(1,239,657
|
)
|
(g)
|
$
|
215,883
|
|
190
|
|
JPMorgan Chase & Co./2015 Annual Report
|
(a)
|
At
December 31, 2015
and
2014
, included total U.S. government-sponsored enterprise obligations of
$67.0 billion
and
$84.1 billion
, respectively, which were predominantly mortgage-related.
|
(b)
|
At
December 31, 2015
and
2014
, included within trading loans were
$11.8 billion
and
$17.0 billion
, respectively, of residential first-lien mortgages, and
$4.3 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
$5.3 billion
and
$7.7 billion
, respectively, and reverse mortgages of
$2.5 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 approximates fair value for the Firm’s physical commodities inventories. When fair value hedging has been applied (or when market is below cost), the carrying value of physical commodities approximates fair value, because under fair value hedge accounting, the cost basis is adjusted for changes in fair value. For a further discussion of the Firm’s hedge accounting relationships, see Note 6. To provide consistent fair value disclosure information, all physical commodities inventories have been included in each period presented.
|
(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. 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
$546 million
and
$2.5 billion
at
December 31, 2015
and
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
$3.5 billion
and
$6.0 billion
at
December 31, 2015
and
2014
, respectively.
|
(g)
|
Certain prior period amounts (including the corresponding fair value parenthetical disclosure for accounts payable and other liabilities on the Consolidated balance sheets) were revised to conform with the current period presentation.
|
•
|
$3.1 billion
of long-term debt and
$1.0 billion
of deposits driven by an increase in observability on certain structured notes with embedded interest rate and FX derivatives and a reduction of the significance in the unobservable inputs for certain structured notes with embedded equity derivatives
|
•
|
$2.1 billion
of gross equity derivatives for both receivables and payables as a result of an increase in observability and a decrease in the significance in unobservable inputs; partially offset by transfers into level 3 resulting in net transfers of approximately
$1.2 billion
for both receivables and payables
|
•
|
$2.8 billion
of trading loans driven by an increase in observability of certain collateralized financing transactions; and
$2.4 billion
of corporate debt driven by a decrease in the significance in the unobservable inputs and an increase in observability for certain structured products
|
•
|
$4.3 billion
and
$4.4 billion
of gross equity derivative receivables and payables, respectively, due to increased observability of certain equity option valuation inputs
|
•
|
$2.7 billion
of trading loans,
$2.6 billion
of margin loans,
$2.3 billion
of private equity investments,
$2.0 billion
of corporate debt, and
$1.3 billion
of long-term debt, based on increased liquidity and price transparency
|
•
|
Certain highly rated CLOs, including
$27.4 billion
held in the Firm
’
s available-for-sale (“AFS”) securities portfolio and
$1.4 billion
held in the trading portfolio, based on increased liquidity and price transparency;
|
•
|
$1.3 billion
of long-term debt, largely driven by an increase in observability of certain equity structured notes.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
191
|
192
|
|
JPMorgan Chase & Co./2015 Annual Report
|
(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
$349 million
of credit derivative receivables and
$310 million
of credit derivative payables with underlying commercial mortgage risk have been included in the inputs and ranges provided for commercial mortgage-backed securities and loans.
|
(c)
|
The unobservable inputs and associated input ranges for approximately
$434 million
of credit derivative receivables and
$401 million
of credit derivative payables with underlying asset-backed securities risk have been included in the inputs and ranges provided for corporate debt securities, obligations of U.S. states and municipalities and other.
|
(d)
|
Long-term debt, other borrowed funds and deposits include structured notes issued by the Firm that are predominantly financial instruments containing embedded derivatives. The estimation of the fair value of structured notes is predominantly based on the derivative features embedded within the instruments. The significant unobservable inputs are broadly consistent with those presented for derivative receivables.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
193
|
194
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
195
|
|
Fair value measurements using significant unobservable inputs
|
|
|
|||||||||||||||||||||||||||
Year ended
December 31, 2015
(in millions)
|
Fair value at January 1, 2015
|
Total realized/unrealized gains/(losses)
|
|
|
|
|
Transfers into and/or out of level 3
(i)
|
Fair value at Dec. 31, 2015
|
|
Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2015
|
||||||||||||||||||||
Purchases
(g)
|
Sales
|
|
Settlements
(h)
|
|||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Debt instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. government agencies
|
$
|
922
|
|
$
|
(28
|
)
|
|
$
|
327
|
|
$
|
(303
|
)
|
|
$
|
(132
|
)
|
$
|
(71
|
)
|
$
|
715
|
|
|
$
|
(27
|
)
|
|
||
Residential – nonagency
|
663
|
|
130
|
|
|
253
|
|
(611
|
)
|
|
(23
|
)
|
(218
|
)
|
194
|
|
|
4
|
|
|
||||||||||
Commercial – nonagency
|
306
|
|
(14
|
)
|
|
246
|
|
(262
|
)
|
|
(22
|
)
|
(139
|
)
|
115
|
|
|
(5
|
)
|
|
||||||||||
Total mortgage-backed securities
|
1,891
|
|
88
|
|
|
826
|
|
(1,176
|
)
|
|
(177
|
)
|
(428
|
)
|
1,024
|
|
|
(28
|
)
|
|
||||||||||
Obligations of U.S. states and municipalities
|
1,273
|
|
14
|
|
|
352
|
|
(133
|
)
|
|
(27
|
)
|
(828
|
)
|
651
|
|
|
(1
|
)
|
|
||||||||||
Non-U.S. government debt securities
|
302
|
|
9
|
|
|
205
|
|
(123
|
)
|
|
(64
|
)
|
(255
|
)
|
74
|
|
|
(16
|
)
|
|
||||||||||
Corporate debt securities
|
2,989
|
|
(77
|
)
|
|
1,171
|
|
(1,038
|
)
|
|
(125
|
)
|
(2,184
|
)
|
736
|
|
|
2
|
|
|
||||||||||
Loans
|
13,287
|
|
(174
|
)
|
|
3,532
|
|
(4,661
|
)
|
|
(3,112
|
)
|
(2,268
|
)
|
6,604
|
|
|
(181
|
)
|
|
||||||||||
Asset-backed securities
|
1,264
|
|
(41
|
)
|
|
1,920
|
|
(1,229
|
)
|
|
(35
|
)
|
(47
|
)
|
1,832
|
|
|
(32
|
)
|
|
||||||||||
Total debt instruments
|
21,006
|
|
(181
|
)
|
|
8,006
|
|
(8,360
|
)
|
|
(3,540
|
)
|
(6,010
|
)
|
10,921
|
|
|
(256
|
)
|
|
||||||||||
Equity securities
|
431
|
|
96
|
|
|
89
|
|
(193
|
)
|
|
(26
|
)
|
(132
|
)
|
265
|
|
|
82
|
|
|
||||||||||
Physical commodities
|
2
|
|
(2
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
||||||||||
Other
|
1,050
|
|
119
|
|
|
1,581
|
|
(1,313
|
)
|
|
192
|
|
(885
|
)
|
744
|
|
|
85
|
|
|
||||||||||
Total trading assets – debt and equity instruments
|
22,489
|
|
32
|
|
(c)
|
9,676
|
|
(9,866
|
)
|
|
(3,374
|
)
|
(7,027
|
)
|
11,930
|
|
|
(89
|
)
|
(c)
|
||||||||||
Net derivative receivables:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest rate
|
626
|
|
962
|
|
|
513
|
|
(173
|
)
|
|
(732
|
)
|
(320
|
)
|
876
|
|
|
263
|
|
|
||||||||||
Credit
|
189
|
|
118
|
|
|
129
|
|
(136
|
)
|
|
165
|
|
84
|
|
549
|
|
|
260
|
|
|
||||||||||
Foreign exchange
|
(526
|
)
|
657
|
|
|
19
|
|
(149
|
)
|
|
(296
|
)
|
(430
|
)
|
(725
|
)
|
|
49
|
|
|
||||||||||
Equity
|
(1,785
|
)
|
731
|
|
|
890
|
|
(1,262
|
)
|
|
(158
|
)
|
70
|
|
(1,514
|
)
|
|
5
|
|
|
||||||||||
Commodity
|
(565
|
)
|
(856
|
)
|
|
1
|
|
(24
|
)
|
|
512
|
|
(3
|
)
|
(935
|
)
|
|
(41
|
)
|
|
||||||||||
Total net derivative receivables
|
(2,061
|
)
|
1,612
|
|
(c)
|
1,552
|
|
(1,744
|
)
|
|
(509
|
)
|
(599
|
)
|
(1,749
|
)
|
|
536
|
|
(c)
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed securities
|
908
|
|
(32
|
)
|
|
51
|
|
(43
|
)
|
|
(61
|
)
|
—
|
|
823
|
|
|
(28
|
)
|
|
||||||||||
Other
|
129
|
|
—
|
|
|
—
|
|
—
|
|
|
(29
|
)
|
(99
|
)
|
1
|
|
|
—
|
|
|
||||||||||
Total available-for-sale securities
|
1,037
|
|
(32
|
)
|
(d)
|
51
|
|
(43
|
)
|
|
(90
|
)
|
(99
|
)
|
824
|
|
|
(28
|
)
|
(d)
|
||||||||||
Loans
|
2,541
|
|
(133
|
)
|
(c)
|
1,290
|
|
(92
|
)
|
|
(1,241
|
)
|
(847
|
)
|
1,518
|
|
|
(32
|
)
|
(c)
|
||||||||||
Mortgage servicing rights
|
7,436
|
|
(405
|
)
|
(e)
|
985
|
|
(486
|
)
|
|
(922
|
)
|
—
|
|
6,608
|
|
|
(405
|
)
|
(e)
|
||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Private equity investments
|
2,225
|
|
(120
|
)
|
(c)
|
281
|
|
(362
|
)
|
|
(187
|
)
|
(180
|
)
|
1,657
|
|
|
(304
|
)
|
(c)
|
||||||||||
All other
|
959
|
|
91
|
|
(f)
|
65
|
|
(147
|
)
|
|
(224
|
)
|
—
|
|
744
|
|
|
15
|
|
(f)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Fair value measurements using significant unobservable inputs
|
|
|
|||||||||||||||||||||||||||
Year ended
December 31, 2015
(in millions)
|
Fair value at January 1, 2015
|
Total realized/unrealized (gains)/losses
|
|
|
|
|
Transfers into and/or out of level 3
(i)
|
Fair value at Dec. 31, 2015
|
|
Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2015
|
||||||||||||||||||||
Purchases
(g)
|
Sales
|
Issuances
|
Settlements
(h)
|
|||||||||||||||||||||||||||
Liabilities:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Deposits
|
$
|
2,859
|
|
$
|
(39
|
)
|
(c)
|
$
|
—
|
|
$
|
—
|
|
$
|
1,993
|
|
$
|
(850
|
)
|
$
|
(1,013
|
)
|
$
|
2,950
|
|
|
$
|
(29
|
)
|
(c)
|
Other borrowed funds
|
1,453
|
|
(697
|
)
|
(c)
|
—
|
|
—
|
|
3,334
|
|
(2,963
|
)
|
(488
|
)
|
639
|
|
|
(57
|
)
|
(c)
|
|||||||||
Trading liabilities – debt and equity instruments
|
72
|
|
15
|
|
(c)
|
(163
|
)
|
160
|
|
—
|
|
(17
|
)
|
(4
|
)
|
63
|
|
|
(4
|
)
|
(c)
|
|||||||||
Accounts payable and other liabilities
|
26
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(7
|
)
|
—
|
|
19
|
|
|
—
|
|
|
|||||||||
Beneficial interests issued by consolidated VIEs
|
1,146
|
|
(82
|
)
|
(c)
|
—
|
|
—
|
|
286
|
|
(574
|
)
|
(227
|
)
|
549
|
|
|
(63
|
)
|
(c)
|
|||||||||
Long-term debt
|
11,877
|
|
(480
|
)
|
(c)
|
(58
|
)
|
—
|
|
9,359
|
|
(6,299
|
)
|
(2,786
|
)
|
11,613
|
|
|
385
|
|
(c)
|
196
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
Fair value measurements using significant unobservable inputs
|
|
|
|||||||||||||||||||||||||||||
Year ended
December 31, 2014
(in millions)
|
Fair value at January 1, 2014
|
Total realized/unrealized gains/(losses)
|
|
|
|
|
|
|
Transfers into and/or out of level 3
(i)
|
Fair value at
Dec. 31, 2014
|
Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2014
|
|||||||||||||||||||||
Purchases
(g)
|
|
Sales
|
|
|
Settlements
(h)
|
|||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Debt instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. government agencies
|
$
|
1,005
|
|
$
|
(97
|
)
|
|
$
|
351
|
|
|
$
|
(186
|
)
|
|
|
$
|
(121
|
)
|
$
|
(30
|
)
|
$
|
922
|
|
|
$
|
(92
|
)
|
|
||
Residential – nonagency
|
726
|
|
66
|
|
|
827
|
|
|
(761
|
)
|
|
|
(41
|
)
|
(154
|
)
|
663
|
|
|
(15
|
)
|
|
||||||||||
Commercial – nonagency
|
432
|
|
17
|
|
|
980
|
|
|
(914
|
)
|
|
|
(60
|
)
|
(149
|
)
|
306
|
|
|
(12
|
)
|
|
||||||||||
Total mortgage-backed securities
|
2,163
|
|
(14
|
)
|
|
2,158
|
|
|
(1,861
|
)
|
|
|
(222
|
)
|
(333
|
)
|
1,891
|
|
|
(119
|
)
|
|
||||||||||
Obligations of U.S. states and municipalities
|
1,382
|
|
90
|
|
|
298
|
|
|
(358
|
)
|
|
|
(139
|
)
|
—
|
|
1,273
|
|
|
(27
|
)
|
|
||||||||||
Non-U.S. government debt securities
|
143
|
|
24
|
|
|
719
|
|
|
(617
|
)
|
|
|
(3
|
)
|
36
|
|
302
|
|
|
10
|
|
|
||||||||||
Corporate debt securities
|
5,920
|
|
210
|
|
|
5,854
|
|
|
(3,372
|
)
|
|
|
(4,531
|
)
|
(1,092
|
)
|
2,989
|
|
|
379
|
|
|
||||||||||
Loans
|
13,455
|
|
387
|
|
|
13,551
|
|
|
(7,917
|
)
|
|
|
(4,623
|
)
|
(1,566
|
)
|
13,287
|
|
|
123
|
|
|
||||||||||
Asset-backed securities
|
1,272
|
|
19
|
|
|
2,240
|
|
|
(2,126
|
)
|
|
|
(283
|
)
|
142
|
|
1,264
|
|
|
(30
|
)
|
|
||||||||||
Total debt instruments
|
24,335
|
|
716
|
|
|
24,820
|
|
|
(16,251
|
)
|
|
|
(9,801
|
)
|
(2,813
|
)
|
21,006
|
|
|
336
|
|
|
||||||||||
Equity securities
|
867
|
|
113
|
|
|
248
|
|
|
(259
|
)
|
|
|
(286
|
)
|
(252
|
)
|
431
|
|
|
46
|
|
|
||||||||||
Physical commodities
|
4
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
|
(1
|
)
|
—
|
|
2
|
|
|
—
|
|
|
||||||||||
Other
|
2,000
|
|
239
|
|
|
1,426
|
|
|
(276
|
)
|
|
|
(201
|
)
|
(2,138
|
)
|
1,050
|
|
|
329
|
|
|
||||||||||
Total trading assets – debt and equity instruments
|
27,206
|
|
1,067
|
|
(c)
|
26,494
|
|
|
(16,786
|
)
|
|
|
(10,289
|
)
|
(5,203
|
)
|
22,489
|
|
|
711
|
|
(c)
|
||||||||||
Net derivative receivables:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest rate
|
2,379
|
|
184
|
|
|
198
|
|
|
(256
|
)
|
|
|
(1,771
|
)
|
(108
|
)
|
626
|
|
|
(853
|
)
|
|
||||||||||
Credit
|
95
|
|
(149
|
)
|
|
272
|
|
|
(47
|
)
|
|
|
92
|
|
(74
|
)
|
189
|
|
|
(107
|
)
|
|
||||||||||
Foreign exchange
|
(1,200
|
)
|
(137
|
)
|
|
139
|
|
|
(27
|
)
|
|
|
668
|
|
31
|
|
(526
|
)
|
|
(62
|
)
|
|
||||||||||
Equity
|
(1,063
|
)
|
154
|
|
|
2,044
|
|
|
(2,863
|
)
|
|
|
10
|
|
(67
|
)
|
(1,785
|
)
|
|
583
|
|
|
||||||||||
Commodity
|
115
|
|
(465
|
)
|
|
1
|
|
|
(113
|
)
|
|
|
(109
|
)
|
6
|
|
(565
|
)
|
|
(186
|
)
|
|
||||||||||
Total net derivative receivables
|
326
|
|
(413
|
)
|
(c)
|
2,654
|
|
|
(3,306
|
)
|
|
|
(1,110
|
)
|
(212
|
)
|
(2,061
|
)
|
|
(625
|
)
|
(c)
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed securities
|
1,088
|
|
(41
|
)
|
|
275
|
|
|
(2
|
)
|
|
|
(101
|
)
|
(311
|
)
|
908
|
|
|
(40
|
)
|
|
||||||||||
Other
|
1,234
|
|
(19
|
)
|
|
122
|
|
|
—
|
|
|
|
(223
|
)
|
(985
|
)
|
129
|
|
|
(2
|
)
|
|
||||||||||
Total available-for-sale securities
|
2,322
|
|
(60
|
)
|
(d)
|
397
|
|
|
(2
|
)
|
|
|
(324
|
)
|
(1,296
|
)
|
1,037
|
|
|
(42
|
)
|
(d)
|
||||||||||
Loans
|
1,931
|
|
(254
|
)
|
(c)
|
3,258
|
|
|
(845
|
)
|
|
|
(1,549
|
)
|
—
|
|
2,541
|
|
|
(234
|
)
|
(c)
|
||||||||||
Mortgage servicing rights
|
9,614
|
|
(1,826
|
)
|
(e)
|
768
|
|
|
(209
|
)
|
|
|
(911
|
)
|
—
|
|
7,436
|
|
|
(1,826
|
)
|
(e)
|
||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Private equity investments
|
5,816
|
|
400
|
|
(c)
|
145
|
|
|
(1,967
|
)
|
|
|
(197
|
)
|
(1,972
|
)
|
2,225
|
|
|
33
|
|
(c)
|
||||||||||
All other
|
1,382
|
|
83
|
|
(f)
|
10
|
|
|
(357
|
)
|
|
|
(159
|
)
|
—
|
|
959
|
|
|
59
|
|
(f)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Fair value measurements using significant unobservable inputs
|
|
|
|||||||||||||||||||||||||||||
Year ended
December 31, 2014
(in millions)
|
Fair value at January 1, 2014
|
Total realized/unrealized (gains)/losses
|
|
|
|
|
|
|
Transfers into and/or out of level 3
(i)
|
Fair value at Dec. 31, 2014
|
Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2014
|
|||||||||||||||||||||
Purchases
(g)
|
|
Sales
|
|
Issuances
|
Settlements
(h)
|
|||||||||||||||||||||||||||
Liabilities:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Deposits
|
$
|
2,255
|
|
$
|
149
|
|
(c)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,578
|
|
$
|
(197
|
)
|
$
|
(926
|
)
|
$
|
2,859
|
|
|
$
|
130
|
|
(c)
|
Other borrowed funds
|
2,074
|
|
(596
|
)
|
(c)
|
—
|
|
|
—
|
|
|
5,377
|
|
(6,127
|
)
|
725
|
|
1,453
|
|
|
(415
|
)
|
(c)
|
|||||||||
Trading liabilities – debt and equity instruments
|
113
|
|
(5
|
)
|
(c)
|
(305
|
)
|
|
323
|
|
|
—
|
|
(5
|
)
|
(49
|
)
|
72
|
|
|
2
|
|
(c)
|
|||||||||
Accounts payable and other liabilities
|
—
|
|
27
|
|
(c)
|
—
|
|
|
—
|
|
|
—
|
|
(1
|
)
|
—
|
|
26
|
|
|
—
|
|
|
|||||||||
Beneficial interests issued by consolidated VIEs
|
1,240
|
|
(4
|
)
|
(c)
|
—
|
|
|
—
|
|
|
775
|
|
(763
|
)
|
(102
|
)
|
1,146
|
|
|
(22
|
)
|
(c)
|
|||||||||
Long-term debt
|
10,008
|
|
(40
|
)
|
(c)
|
—
|
|
|
—
|
|
|
7,421
|
|
(5,231
|
)
|
(281
|
)
|
11,877
|
|
|
(9
|
)
|
(c)
|
JPMorgan Chase & Co./2015 Annual Report
|
|
197
|
|
Fair value measurements using significant unobservable inputs
|
|
|
|||||||||||||||||||||||||||||
Year ended
December 31, 2013
(in millions)
|
Fair value at January 1, 2013
|
Total realized/unrealized gains/(losses)
|
|
|
|
|
|
|
Transfers into and/or out of level 3
(i)
|
Fair value at
Dec. 31, 2013
|
Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2013
|
|||||||||||||||||||||
Purchases
(g)
|
|
Sales
|
|
|
Settlements
(h)
|
|||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Debt instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
U.S. government agencies
|
$
|
498
|
|
$
|
169
|
|
|
$
|
819
|
|
|
$
|
(381
|
)
|
|
|
$
|
(100
|
)
|
$
|
—
|
|
$
|
1,005
|
|
|
$
|
200
|
|
|
||
Residential – nonagency
|
663
|
|
407
|
|
|
780
|
|
|
(1,028
|
)
|
|
|
(91
|
)
|
(5
|
)
|
726
|
|
|
205
|
|
|
||||||||||
Commercial – nonagency
|
1,207
|
|
114
|
|
|
841
|
|
|
(1,522
|
)
|
|
|
(208
|
)
|
—
|
|
432
|
|
|
(4
|
)
|
|
||||||||||
Total mortgage-backed securities
|
2,368
|
|
690
|
|
|
2,440
|
|
|
(2,931
|
)
|
|
|
(399
|
)
|
(5
|
)
|
2,163
|
|
|
401
|
|
|
||||||||||
Obligations of U.S. states and municipalities
|
1,436
|
|
71
|
|
|
472
|
|
|
(251
|
)
|
|
|
(346
|
)
|
—
|
|
1,382
|
|
|
18
|
|
|
||||||||||
Non-U.S. government debt securities
|
67
|
|
4
|
|
|
1,449
|
|
|
(1,479
|
)
|
|
|
(8
|
)
|
110
|
|
143
|
|
|
(1
|
)
|
|
||||||||||
Corporate debt securities
|
5,308
|
|
103
|
|
|
7,602
|
|
|
(5,975
|
)
|
|
|
(1,882
|
)
|
764
|
|
5,920
|
|
|
466
|
|
|
||||||||||
Loans
|
10,787
|
|
665
|
|
|
10,411
|
|
|
(7,431
|
)
|
|
|
(685
|
)
|
(292
|
)
|
13,455
|
|
|
315
|
|
|
||||||||||
Asset-backed securities
|
3,696
|
|
191
|
|
|
1,912
|
|
|
(2,379
|
)
|
|
|
(292
|
)
|
(1,856
|
)
|
1,272
|
|
|
105
|
|
|
||||||||||
Total debt instruments
|
23,662
|
|
1,724
|
|
|
24,286
|
|
|
(20,446
|
)
|
|
|
(3,612
|
)
|
(1,279
|
)
|
24,335
|
|
|
1,304
|
|
|
||||||||||
Equity securities
|
1,092
|
|
(37
|
)
|
|
328
|
|
|
(266
|
)
|
|
|
(135
|
)
|
(115
|
)
|
867
|
|
|
46
|
|
|
||||||||||
Physical commodities
|
—
|
|
(4
|
)
|
|
—
|
|
|
(8
|
)
|
|
|
—
|
|
16
|
|
4
|
|
|
(4
|
)
|
|
||||||||||
Other
|
863
|
|
558
|
|
|
659
|
|
|
(95
|
)
|
|
|
(120
|
)
|
135
|
|
2,000
|
|
|
1,074
|
|
|
||||||||||
Total trading assets – debt and equity instruments
|
25,617
|
|
2,241
|
|
(c)
|
25,273
|
|
|
(20,815
|
)
|
|
|
(3,867
|
)
|
(1,243
|
)
|
27,206
|
|
|
2,420
|
|
(c)
|
||||||||||
Net derivative receivables:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest rate
|
3,322
|
|
1,358
|
|
|
344
|
|
|
(220
|
)
|
|
|
(2,391
|
)
|
(34
|
)
|
2,379
|
|
|
107
|
|
|
||||||||||
Credit
|
1,873
|
|
(1,697
|
)
|
|
115
|
|
|
(12
|
)
|
|
|
(357
|
)
|
173
|
|
95
|
|
|
(1,449
|
)
|
|
||||||||||
Foreign exchange
|
(1,750
|
)
|
(101
|
)
|
|
3
|
|
|
(4
|
)
|
|
|
683
|
|
(31
|
)
|
(1,200
|
)
|
|
(110
|
)
|
|
||||||||||
Equity
|
(1,806
|
)
|
2,528
|
|
|
1,305
|
|
|
(2,111
|
)
|
|
|
(1,353
|
)
|
374
|
|
(1,063
|
)
|
|
872
|
|
|
||||||||||
Commodity
|
254
|
|
816
|
|
|
105
|
|
|
(3
|
)
|
|
|
(1,107
|
)
|
50
|
|
115
|
|
|
410
|
|
|
||||||||||
Total net derivative receivables
|
1,893
|
|
2,904
|
|
(c)
|
1,872
|
|
|
(2,350
|
)
|
|
|
(4,525
|
)
|
532
|
|
326
|
|
|
(170
|
)
|
(c)
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed securities
|
28,024
|
|
4
|
|
|
579
|
|
|
(57
|
)
|
|
|
(57
|
)
|
(27,405
|
)
|
1,088
|
|
|
4
|
|
|
||||||||||
Other
|
892
|
|
26
|
|
|
508
|
|
|
(216
|
)
|
|
|
(6
|
)
|
30
|
|
1,234
|
|
|
25
|
|
|
||||||||||
Total available-for-sale securities
|
28,916
|
|
30
|
|
(d)
|
1,087
|
|
|
(273
|
)
|
|
|
(63
|
)
|
(27,375
|
)
|
2,322
|
|
|
29
|
|
(d)
|
||||||||||
Loans
|
2,282
|
|
81
|
|
(c)
|
1,065
|
|
|
(191
|
)
|
|
|
(1,306
|
)
|
—
|
|
1,931
|
|
|
(21
|
)
|
(c)
|
||||||||||
Mortgage servicing rights
|
7,614
|
|
1,612
|
|
(e)
|
2,215
|
|
|
(725
|
)
|
|
|
(1,102
|
)
|
—
|
|
9,614
|
|
|
1,612
|
|
(e)
|
||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Private equity investments
|
5,590
|
|
824
|
|
(c)
|
537
|
|
|
(1,080
|
)
|
|
|
140
|
|
(195
|
)
|
5,816
|
|
|
42
|
|
(c)
|
||||||||||
All other
|
2,122
|
|
(17
|
)
|
(f)
|
49
|
|
|
(427
|
)
|
|
|
(345
|
)
|
—
|
|
1,382
|
|
|
(64
|
)
|
(f)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Fair value measurements using significant unobservable inputs
|
|
|
|||||||||||||||||||||||||||||
Year ended
December 31, 2013
(in millions)
|
Fair value at January 1, 2013
|
Total realized/unrealized (gains)/losses
|
|
|
|
|
|
|
Transfers into and/or out of level 3
(i)
|
Fair value at Dec. 31, 2013
|
Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2013
|
|||||||||||||||||||||
Purchases
(g)
|
|
Sales
|
|
Issuances
|
Settlements
(h)
|
|||||||||||||||||||||||||||
Liabilities:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Deposits
|
$
|
1,983
|
|
$
|
(82
|
)
|
(c)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,248
|
|
$
|
(222
|
)
|
$
|
(672
|
)
|
$
|
2,255
|
|
|
$
|
(88
|
)
|
(c)
|
Other borrowed funds
|
1,619
|
|
(177
|
)
|
(c)
|
—
|
|
|
—
|
|
|
7,108
|
|
(6,845
|
)
|
369
|
|
2,074
|
|
|
291
|
|
(c)
|
|||||||||
Trading liabilities – debt and equity instruments
|
205
|
|
(83
|
)
|
(c)
|
(2,418
|
)
|
|
2,594
|
|
|
—
|
|
(54
|
)
|
(131
|
)
|
113
|
|
|
(100
|
)
|
(c)
|
|||||||||
Accounts payable and other liabilities
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
|||||||||
Beneficial interests issued by consolidated VIEs
|
925
|
|
174
|
|
(c)
|
—
|
|
|
—
|
|
|
353
|
|
(212
|
)
|
—
|
|
1,240
|
|
|
167
|
|
(c)
|
|||||||||
Long-term debt
|
8,476
|
|
(435
|
)
|
(c)
|
—
|
|
|
—
|
|
|
6,830
|
|
(4,362
|
)
|
(501
|
)
|
10,008
|
|
|
(85
|
)
|
(c)
|
198
|
|
JPMorgan Chase & Co./2015 Annual Report
|
(a)
|
All level 3 derivatives are presented on a net basis, irrespective of underlying counterparty.
|
(b)
|
Level 3 liabilities as a percentage of total Firm liabilities accounted for at fair value (including liabilities measured at fair value on a nonrecurring basis) were
13%
,
15%
and
18%
at
December 31, 2015
,
2014
and
2013
, respectively.
|
(c)
|
Predominantly reported in principal transactions revenue, except for changes in fair value for CCB mortgage loans, lending-related commitments originated with the intent to sell, and mortgage loan purchase commitments, which are reported in mortgage fees and related income.
|
(d)
|
Realized gains/(losses) on 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
,
$(43) million
, and
$17 million
for the years ended
December 31, 2015
,
2014
and
2013
, respectively. Unrealized gains/(losses) recorded on AFS securities in OCI were
$(25) million
,
$(16) million
and
$13 million
for the years ended
December 31, 2015
,
2014
and
2013
, respectively.
|
(e)
|
Changes in fair value for CCB MSRs are reported in mortgage fees and related income.
|
(f)
|
Predominantly reported in other income.
|
(g)
|
Loan originations are included in purchases.
|
(h)
|
Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications, and deconsolidations associated with beneficial interests in VIEs.
|
(i)
|
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.
|
•
|
$10.6 billion
decrease in trading assets — debt and equity instruments was driven by a decrease of
$6.7 billion
in trading loans due to sales, maturities and transfers from level 3 to level 2 as a result of an increase in observability of certain valuation inputs and a
$2.3 billion
decrease in corporate debt securities due to transfers from level 3 to level 2 as a result of an increase in observability of certain valuation inputs
|
•
|
$4.6 billion
decrease in gross derivative receivables was driven by a
$3.9 billion
decrease in equity, interest rate and foreign exchange derivative receivables due to market movements and transfers from level 3 to level 2 as a result of an increase in observability of certain valuation inputs
|
•
|
$1.6 billion
of net gains in interest rate, foreign exchange and equity derivative receivables largely due to market movements; partially offset by loss in commodity derivatives due to market movements
|
•
|
$1.3 billion
of net gains in liabilities due to market movements
|
•
|
$1.8 billion
of losses on MSRs. For further discussion of the change, refer to Note 17
|
•
|
$1.1 billion
of net gains on trading assets — debt and equity instruments, largely driven by market movements and client-driven financing transactions
|
•
|
$2.9 billion
of net gains on derivatives, largely driven by
$2.5 billion
of gains on equity derivatives, primarily related to client-driven market-making activity and a rise in equity markets; and
$1.4 billion
of gains, predominantly on interest rate lock and mortgage loan purchase commitments; partially offset by
$1.7 billion
of losses on credit derivatives from the impact of tightening reference entity credit spreads
|
•
|
$2.2 billion
of net gains on trading assets — debt and equity instruments, largely driven by market making and credit spread tightening in nonagency mortgage-backed securities and trading loans, and the impact of market movements on client-driven financing transactions
|
•
|
$1.6 billion
of net gains on MSRs. For further discussion of the change, refer to Note 17
|
JPMorgan Chase & Co./2015 Annual Report
|
|
199
|
•
|
CVA is taken to reflect the credit quality of a counterparty in the valuation of derivatives. Derivatives are generally valued using models that use as their basis observable market parameters. These market parameters may not consider counterparty non-performance risk. Therefore, an adjustment may be necessary to reflect the credit quality of each derivative counterparty to arrive at fair value.
|
•
|
DVA is taken to reflect the credit quality of the Firm in the valuation of liabilities measured at fair value. The DVA calculation methodology is generally consistent with the CVA methodology described above and incorporates JPMorgan Chase’s credit spreads as observed through the CDS market to estimate the probability of default and loss given default as a result of a systemic event affecting the Firm. Structured notes DVA is estimated using the current fair value of the structured note as the exposure amount, and is otherwise consistent with the derivative DVA methodology.
|
•
|
FVA is taken to incorporate the impact of funding in the Firm’s valuation estimates where there is evidence that a market participant in the principal market would incorporate it in a transfer of the instrument. For collateralized derivatives, the fair value is estimated by discounting expected future cash flows at the relevant overnight indexed swap (“OIS”) rate given the underlying collateral agreement with the counterparty. For uncollateralized (including partially collateralized) over-the-counter (“OTC”) derivatives and structured notes, effective in 2013, the Firm implemented a FVA framework to incorporate the impact of funding into its
|
Year ended December 31,
(in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Credit adjustments:
|
|
|
|
|
|
||||||
Derivatives CVA
|
$
|
620
|
|
|
$
|
(322
|
)
|
|
$
|
1,886
|
|
Derivatives DVA and FVA
(a)
|
73
|
|
|
(58
|
)
|
|
(1,152
|
)
|
|||
Structured notes DVA and FVA
(b)
|
754
|
|
|
200
|
|
|
(760
|
)
|
(a)
|
Included derivatives DVA of
$(6) million
,
$(1) million
and
$(115) million
for the years ended
December 31, 2015
,
2014
and
2013
, respectively.
|
(b)
|
Included structured notes DVA of
$171 million
,
$20 million
and
$(337) million
for the years ended
December 31, 2015
,
2014
and
2013
, respectively.
|
200
|
|
JPMorgan Chase & Co./2015 Annual Report
|
•
|
$556 million
related to residential real estate loans carried 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
4%
to
59%
, with a weighted average of
22%
.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
201
|
|
December 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
|
$
|
20.5
|
|
$
|
20.5
|
|
$
|
—
|
|
$
|
—
|
|
$
|
20.5
|
|
|
$
|
27.8
|
|
$
|
27.8
|
|
$
|
—
|
|
$
|
—
|
|
$
|
27.8
|
|
Deposits with banks
|
340.0
|
|
335.9
|
|
4.1
|
|
—
|
|
340.0
|
|
|
484.5
|
|
480.4
|
|
4.1
|
|
—
|
|
484.5
|
|
||||||||||
Accrued interest and accounts receivable
|
46.6
|
|
—
|
|
46.4
|
|
0.2
|
|
46.6
|
|
|
70.1
|
|
—
|
|
70.0
|
|
0.1
|
|
70.1
|
|
||||||||||
Federal funds sold and securities purchased under resale agreements
|
189.5
|
|
—
|
|
189.5
|
|
—
|
|
189.5
|
|
|
187.2
|
|
—
|
|
187.2
|
|
—
|
|
187.2
|
|
||||||||||
Securities borrowed
|
98.3
|
|
—
|
|
98.3
|
|
—
|
|
98.3
|
|
|
109.4
|
|
—
|
|
109.4
|
|
—
|
|
109.4
|
|
||||||||||
Securities, held-to-maturity
(a)
|
49.1
|
|
—
|
|
50.6
|
|
—
|
|
50.6
|
|
|
49.3
|
|
—
|
|
51.2
|
|
—
|
|
51.2
|
|
||||||||||
Loans, net of allowance for loan losses
(b)
|
820.8
|
|
—
|
|
25.4
|
|
802.7
|
|
828.1
|
|
|
740.5
|
|
—
|
|
21.8
|
|
723.1
|
|
744.9
|
|
||||||||||
Other
|
66.0
|
|
0.1
|
|
56.3
|
|
14.3
|
|
70.7
|
|
|
64.7
|
|
—
|
|
55.7
|
|
13.3
|
|
69.0
|
|
||||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Deposits
|
$
|
1,267.2
|
|
$
|
—
|
|
$
|
1,266.1
|
|
$
|
1.2
|
|
$
|
1,267.3
|
|
|
$
|
1,354.6
|
|
$
|
—
|
|
$
|
1,353.6
|
|
$
|
1.2
|
|
$
|
1,354.8
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
149.2
|
|
—
|
|
149.2
|
|
—
|
|
149.2
|
|
|
189.1
|
|
—
|
|
189.1
|
|
—
|
|
189.1
|
|
||||||||||
Commercial paper
|
15.6
|
|
—
|
|
15.6
|
|
—
|
|
15.6
|
|
|
66.3
|
|
—
|
|
66.3
|
|
—
|
|
66.3
|
|
||||||||||
Other borrowed funds
|
11.2
|
|
—
|
|
11.2
|
|
—
|
|
11.2
|
|
|
15.5
|
|
|
|
15.5
|
|
—
|
|
15.5
|
|
||||||||||
Accounts payable and other liabilities
(c)
|
144.6
|
|
—
|
|
141.7
|
|
2.8
|
|
144.5
|
|
|
172.6
|
|
—
|
|
169.6
|
|
2.9
|
|
172.5
|
|
||||||||||
Beneficial interests issued by consolidated VIEs
(d)
|
41.1
|
|
—
|
|
40.2
|
|
0.9
|
|
41.1
|
|
|
50.2
|
|
—
|
|
48.2
|
|
2.0
|
|
50.2
|
|
||||||||||
Long-term debt and junior subordinated deferrable interest debentures
(e)
|
255.6
|
|
—
|
|
257.4
|
|
4.3
|
|
261.7
|
|
|
246.2
|
|
—
|
|
251.2
|
|
3.8
|
|
255.0
|
|
(a)
|
Carrying value reflects 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 185–188
.
|
(c)
|
Certain prior period amounts have been revised to conform with the current presentation.
|
(d)
|
Carrying value reflects unamortized issuance costs.
|
(e)
|
Carrying value reflects unamortized premiums and discounts, issuance costs, and other valuation adjustments.
|
202
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
December 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
|
$
|
0.8
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3.0
|
|
$
|
3.0
|
|
|
$
|
0.6
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1.6
|
|
$
|
1.6
|
|
(a)
|
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.
|
•
|
Mitigate income statement volatility caused by the differences in the measurement basis of elected instruments (e.g. certain instruments elected were previously accounted for on an accrual basis) while the associated risk management arrangements are accounted for on a fair value basis;
|
•
|
Eliminate the complexities of applying certain accounting models (e.g., hedge accounting or bifurcation accounting for hybrid instruments); and/or
|
•
|
Better reflect those instruments that are managed on a fair value basis.
|
•
|
Loans purchased or originated as part of securitization warehousing activity, subject to bifurcation accounting, or managed on a fair value basis.
|
•
|
Certain
securities financing arrangements with an embedded derivative and/or a maturity of greater than one year.
|
•
|
Owned beneficial interests in securitized financial assets that contain embedded credit derivatives, which would otherwise be required to be separately accounted for as a derivative instrument.
|
•
|
Certain investments that receive tax credits and other equity investments acquired as part of the Washington Mutual transaction.
|
•
|
Structured notes issued as part of
CIB’s
client-driven activities. (Structured notes are predominantly financial instruments that contain embedded derivatives.)
|
•
|
Certain long-term beneficial interests issued by
CIB’s
consolidated securitization trusts where the underlying assets are carried at fair value.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
203
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||||||||
December 31, (in millions)
|
Principal transactions
|
All other income
|
Total changes in fair value recorded
|
|
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
|
$
|
(38
|
)
|
$
|
—
|
|
|
$
|
(38
|
)
|
|
$
|
(15
|
)
|
$
|
—
|
|
|
$
|
(15
|
)
|
|
$
|
(454
|
)
|
$
|
—
|
|
|
$
|
(454
|
)
|
Securities borrowed
|
(6
|
)
|
—
|
|
|
(6
|
)
|
|
(10
|
)
|
—
|
|
|
(10
|
)
|
|
10
|
|
—
|
|
|
10
|
|
|||||||||
Trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Debt and equity instruments, excluding loans
|
756
|
|
(10
|
)
|
(d)
|
746
|
|
|
639
|
|
—
|
|
|
639
|
|
|
582
|
|
7
|
|
(c)
|
589
|
|
|||||||||
Loans reported as trading assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Changes in instrument-specific credit risk
|
138
|
|
41
|
|
(c)
|
179
|
|
|
885
|
|
29
|
|
(c)
|
914
|
|
|
1,161
|
|
23
|
|
(c)
|
1,184
|
|
|||||||||
Other changes in fair value
|
232
|
|
818
|
|
(c)
|
1,050
|
|
|
352
|
|
1,353
|
|
(c)
|
1,705
|
|
|
(133
|
)
|
1,833
|
|
(c)
|
1,700
|
|
|||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Changes in instrument-specific credit risk
|
35
|
|
—
|
|
|
35
|
|
|
40
|
|
—
|
|
|
40
|
|
|
36
|
|
—
|
|
|
36
|
|
|||||||||
Other changes in fair value
|
4
|
|
—
|
|
|
4
|
|
|
34
|
|
—
|
|
|
34
|
|
|
17
|
|
—
|
|
|
17
|
|
|||||||||
Other assets
|
79
|
|
(1
|
)
|
(d)
|
78
|
|
|
24
|
|
6
|
|
(d)
|
30
|
|
|
32
|
|
86
|
|
(d)
|
118
|
|
|||||||||
Deposits
(a)
|
93
|
|
—
|
|
|
93
|
|
|
(287
|
)
|
—
|
|
|
(287
|
)
|
|
260
|
|
—
|
|
|
260
|
|
|||||||||
Federal funds purchased and securities loaned or sold under repurchase agreements
|
8
|
|
—
|
|
|
8
|
|
|
(33
|
)
|
—
|
|
|
(33
|
)
|
|
73
|
|
—
|
|
|
73
|
|
|||||||||
Other borrowed funds
(a)
|
1,996
|
|
—
|
|
|
1,996
|
|
|
(891
|
)
|
—
|
|
|
(891
|
)
|
|
(399
|
)
|
—
|
|
|
(399
|
)
|
|||||||||
Trading liabilities
|
(20
|
)
|
—
|
|
|
(20
|
)
|
|
(17
|
)
|
—
|
|
|
(17
|
)
|
|
(46
|
)
|
—
|
|
|
(46
|
)
|
|||||||||
Beneficial interests issued by consolidated VIEs
|
49
|
|
—
|
|
|
49
|
|
|
(233
|
)
|
—
|
|
|
(233
|
)
|
|
(278
|
)
|
—
|
|
|
(278
|
)
|
|||||||||
Other liabilities
|
—
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
—
|
|
|
(27
|
)
|
|
—
|
|
—
|
|
|
—
|
|
|||||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Changes in instrument-specific credit risk
(a)
|
300
|
|
—
|
|
|
300
|
|
|
101
|
|
—
|
|
|
101
|
|
|
(271
|
)
|
—
|
|
|
(271
|
)
|
|||||||||
Other changes in fair value
(b)
|
1,088
|
|
—
|
|
|
1,088
|
|
|
(615
|
)
|
—
|
|
|
(615
|
)
|
|
1,280
|
|
—
|
|
|
1,280
|
|
(a)
|
Total changes in instrument-specific credit risk (DVA) related to structured notes were
$171 million
,
$20 million
and
$(337) million
for the years ended
December 31, 2015
,
2014
and
2013
, respectively. These totals include such changes for structured notes classified within deposits and other borrowed funds, as well as long-term debt.
|
(b)
|
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.
|
204
|
|
JPMorgan Chase & Co./2015 Annual Report
|
•
|
Loans and lending-related commitments: For floating-rate instruments, all changes in value are attributed to instrument-specific credit risk. For fixed-rate instruments, an allocation of the changes in value for the period is made between those changes in value that are interest rate-related and changes in value that are credit-related. Allocations are generally based on an analysis of borrower-specific credit spread and recovery information, where available, or benchmarking to similar entities or industries.
|
•
|
Long-term debt: Changes in value attributable to instrument-specific credit risk were derived principally from observable changes in
the Firm’s
credit spread.
|
•
|
Resale and repurchase agreements, securities borrowed agreements and securities lending agreements: Generally, for these types of agreements, there is a requirement that collateral be maintained with a market value equal to or in excess of the principal amount loaned; as a result, there would be no adjustment or an immaterial adjustment for instrument-specific credit risk related to these agreements.
|
|
2015
|
|
2014
|
||||||||||||||||||
December 31, (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
|
$
|
3,484
|
|
|
$
|
631
|
|
$
|
(2,853
|
)
|
|
$
|
3,847
|
|
|
$
|
905
|
|
$
|
(2,942
|
)
|
Loans
|
7
|
|
|
7
|
|
—
|
|
|
7
|
|
|
7
|
|
—
|
|
||||||
Subtotal
|
3,491
|
|
|
638
|
|
(2,853
|
)
|
|
3,854
|
|
|
912
|
|
(2,942
|
)
|
||||||
All other performing loans
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans reported as trading assets
|
30,780
|
|
|
28,184
|
|
(2,596
|
)
|
|
37,608
|
|
|
35,462
|
|
(2,146
|
)
|
||||||
Loans
|
2,771
|
|
|
2,752
|
|
(19
|
)
|
|
2,397
|
|
|
2,389
|
|
(8
|
)
|
||||||
Total loans
|
$
|
37,042
|
|
|
$
|
31,574
|
|
$
|
(5,468
|
)
|
|
$
|
43,859
|
|
|
$
|
38,763
|
|
$
|
(5,096
|
)
|
Long-term debt
|
|
|
|
|
|
|
|
|
|
||||||||||||
Principal-protected debt
|
$
|
17,910
|
|
(c)
|
$
|
16,611
|
|
$
|
(1,299
|
)
|
|
$
|
14,660
|
|
(c)
|
$
|
15,484
|
|
$
|
824
|
|
Nonprincipal-protected debt
(b)
|
NA
|
|
|
16,454
|
|
NA
|
|
|
NA
|
|
|
14,742
|
|
NA
|
|
||||||
Total long-term debt
|
NA
|
|
|
$
|
33,065
|
|
NA
|
|
|
NA
|
|
|
$
|
30,226
|
|
NA
|
|
||||
Long-term beneficial interests
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nonprincipal-protected debt
|
NA
|
|
|
$
|
787
|
|
NA
|
|
|
NA
|
|
|
$
|
2,162
|
|
NA
|
|
||||
Total long-term beneficial interests
|
NA
|
|
|
$
|
787
|
|
NA
|
|
|
NA
|
|
|
$
|
2,162
|
|
NA
|
|
(a)
|
There were
no
performing loans that were ninety days or more past due as of
December 31, 2015
and
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 reflects the contractual principal payment at maturity or, if applicable, the contractual principal payment at the Firm’s next call date.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
205
|
|
December 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
|
$
|
12,531
|
|
$
|
58
|
|
$
|
3,340
|
|
$
|
15,929
|
|
|
$
|
10,858
|
|
$
|
460
|
|
$
|
2,119
|
|
$
|
13,437
|
|
Credit
|
3,195
|
|
547
|
|
—
|
|
3,742
|
|
|
4,023
|
|
450
|
|
—
|
|
4,473
|
|
||||||||
Foreign exchange
|
1,765
|
|
77
|
|
11
|
|
1,853
|
|
|
2,150
|
|
211
|
|
17
|
|
2,378
|
|
||||||||
Equity
|
14,293
|
|
8,447
|
|
4,993
|
|
27,733
|
|
|
12,348
|
|
12,412
|
|
4,415
|
|
29,175
|
|
||||||||
Commodity
|
640
|
|
50
|
|
1,981
|
|
2,671
|
|
|
710
|
|
644
|
|
2,012
|
|
3,366
|
|
||||||||
Total structured notes
|
$
|
32,424
|
|
$
|
9,179
|
|
$
|
10,325
|
|
$
|
51,928
|
|
|
$
|
30,089
|
|
$
|
14,177
|
|
$
|
8,563
|
|
$
|
52,829
|
|
206
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
2015
|
|
2014
|
||||||||||||||||||||||
|
Credit exposure
|
On-balance sheet
|
Off-balance sheet
(f)
|
|
Credit exposure
|
On-balance sheet
|
Off-balance sheet
(f)(g)
|
||||||||||||||||||
December 31, (in millions)
|
Loans
|
Derivatives
|
|
Loans
|
Derivatives
|
||||||||||||||||||||
Total consumer, excluding credit card
|
$
|
403,424
|
|
$
|
344,821
|
|
$
|
—
|
|
$
|
58,478
|
|
|
$
|
353,635
|
|
$
|
295,374
|
|
$
|
—
|
|
$
|
58,153
|
|
Total credit card
|
646,981
|
|
131,463
|
|
—
|
|
515,518
|
|
|
657,011
|
|
131,048
|
|
—
|
|
525,963
|
|
||||||||
Total consumer
|
1,050,405
|
|
476,284
|
|
—
|
|
573,996
|
|
|
1,010,646
|
|
426,422
|
|
—
|
|
584,116
|
|
||||||||
Wholesale-related
(a)
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Real Estate
|
116,857
|
|
92,820
|
|
312
|
|
23,725
|
|
|
105,975
|
|
79,113
|
|
327
|
|
26,535
|
|
||||||||
Consumer & Retail
|
85,460
|
|
27,175
|
|
1,573
|
|
56,712
|
|
|
83,663
|
|
25,094
|
|
1,845
|
|
56,724
|
|
||||||||
Technology, Media & Telecommunications
|
57,382
|
|
11,079
|
|
1,032
|
|
45,271
|
|
|
46,655
|
|
11,362
|
|
2,190
|
|
33,103
|
|
||||||||
Industrials
|
54,386
|
|
16,791
|
|
1,428
|
|
36,167
|
|
|
47,859
|
|
16,040
|
|
1,303
|
|
30,516
|
|
||||||||
Healthcare
|
46,053
|
|
16,965
|
|
2,751
|
|
26,337
|
|
|
56,516
|
|
13,794
|
|
4,542
|
|
38,180
|
|
||||||||
Banks & Finance Cos
|
43,398
|
|
20,401
|
|
10,218
|
|
12,779
|
|
|
55,098
|
|
23,367
|
|
15,706
|
|
16,025
|
|
||||||||
Oil & Gas
|
42,077
|
|
13,343
|
|
1,902
|
|
26,832
|
|
|
43,148
|
|
15,616
|
|
1,836
|
|
25,696
|
|
||||||||
Utilities
|
30,853
|
|
5,294
|
|
1,689
|
|
23,870
|
|
|
27,441
|
|
4,844
|
|
2,272
|
|
20,325
|
|
||||||||
State & Municipal Govt
|
29,114
|
|
9,626
|
|
3,287
|
|
16,201
|
|
|
31,068
|
|
7,593
|
|
4,002
|
|
19,473
|
|
||||||||
Asset Managers
|
23,815
|
|
6,703
|
|
7,733
|
|
9,379
|
|
|
27,488
|
|
8,043
|
|
9,386
|
|
10,059
|
|
||||||||
Transportation
|
19,227
|
|
9,157
|
|
1,575
|
|
8,495
|
|
|
20,619
|
|
10,381
|
|
2,247
|
|
7,991
|
|
||||||||
Central Govt
|
17,968
|
|
2,000
|
|
13,240
|
|
2,728
|
|
|
19,881
|
|
1,103
|
|
15,527
|
|
3,251
|
|
||||||||
Chemicals & Plastics
|
15,232
|
|
4,033
|
|
369
|
|
10,830
|
|
|
12,612
|
|
3,087
|
|
410
|
|
9,115
|
|
||||||||
Metals & Mining
|
14,049
|
|
4,622
|
|
607
|
|
8,820
|
|
|
14,969
|
|
5,628
|
|
589
|
|
8,752
|
|
||||||||
Automotive
|
13,864
|
|
4,473
|
|
1,350
|
|
8,041
|
|
|
12,754
|
|
3,779
|
|
766
|
|
8,209
|
|
||||||||
Insurance
|
11,889
|
|
1,094
|
|
1,992
|
|
8,803
|
|
|
13,350
|
|
1,175
|
|
3,474
|
|
8,701
|
|
||||||||
Financial Markets Infrastructure
|
7,973
|
|
724
|
|
2,602
|
|
4,647
|
|
|
11,986
|
|
928
|
|
6,789
|
|
4,269
|
|
||||||||
Securities Firms
|
4,412
|
|
861
|
|
1,424
|
|
2,127
|
|
|
4,801
|
|
1,025
|
|
1,351
|
|
2,425
|
|
||||||||
All other
(b)
|
149,117
|
|
109,889
|
|
4,593
|
|
34,635
|
|
|
134,475
|
|
92,530
|
|
4,413
|
|
37,532
|
|
||||||||
Subtotal
|
783,126
|
|
357,050
|
|
59,677
|
|
366,399
|
|
|
770,358
|
|
324,502
|
|
78,975
|
|
366,881
|
|
||||||||
Loans held-for-sale and loans at fair value
|
3,965
|
|
3,965
|
|
—
|
|
—
|
|
|
6,412
|
|
6,412
|
|
—
|
|
—
|
|
||||||||
Receivables from customers and other
(c)
|
13,372
|
|
—
|
|
—
|
|
—
|
|
|
28,972
|
|
—
|
|
—
|
|
—
|
|
||||||||
Total wholesale-related
|
800,463
|
|
361,015
|
|
59,677
|
|
366,399
|
|
|
805,742
|
|
330,914
|
|
78,975
|
|
366,881
|
|
||||||||
Total exposure
(d)(e)
|
$
|
1,850,868
|
|
$
|
837,299
|
|
$
|
59,677
|
|
$
|
940,395
|
|
|
$
|
1,816,388
|
|
$
|
757,336
|
|
$
|
78,975
|
|
$
|
950,997
|
|
(a)
|
Effective in the fourth quarter 2015, the Firm realigned its wholesale industry divisions in order to better monitor and manage industry concentrations. Prior period amounts have been revised to conform with current period presentation. For additional information, see Wholesale credit portfolio on
pages 122–129
.
|
(b)
|
All other includes: individuals; SPEs; holding companies; and private education and civic organizations. For more information on exposures to SPEs, see Note 16.
|
(c)
|
Primarily consists of margin loans to prime brokerage customers that are generally over-collateralized through a pledge of assets maintained in clients’ brokerage accounts and are subject to daily minimum collateral requirements. As a result of the Firm’s credit risk mitigation practices, the Firm did not hold any reserves for credit impairment on these receivables.
|
(d)
|
For further information regarding on–balance sheet credit concentrations by major product and/or geography, see Note 6 and Note 14. For information regarding concentrations of off–balance sheet lending-related financial instruments by major product, see Note 29.
|
(e)
|
Excludes cash placed with banks of
$351.0 billion
and
$501.5 billion
, at
December 31, 2015
and
2014
, respectively, placed with various central banks, predominantly Federal Reserve Banks.
|
(f)
|
Represents lending-related financial instruments.
|
(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.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
207
|
208
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
209
|
210
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
Notional amounts
(b)
|
||||||
December 31, (in billions)
|
2015
|
|
2014
|
||||
Interest rate contracts
|
|
|
|
||||
Swaps
|
$
|
24,162
|
|
|
$
|
29,734
|
|
Futures and forwards
|
5,167
|
|
|
10,189
|
|
||
Written options
|
3,506
|
|
|
3,903
|
|
||
Purchased options
|
3,896
|
|
|
4,259
|
|
||
Total interest rate contracts
|
36,731
|
|
|
48,085
|
|
||
Credit derivatives
(a)
|
2,900
|
|
|
4,249
|
|
||
Foreign exchange contracts
|
|
|
|
|
|||
Cross-currency swaps
|
3,199
|
|
|
3,346
|
|
||
Spot, futures and forwards
|
5,028
|
|
|
4,669
|
|
||
Written options
|
690
|
|
|
790
|
|
||
Purchased options
|
706
|
|
|
780
|
|
||
Total foreign exchange contracts
|
9,623
|
|
|
9,585
|
|
||
Equity contracts
|
|
|
|
||||
Swaps
|
232
|
|
|
206
|
|
||
Futures and forwards
|
43
|
|
|
50
|
|
||
Written options
|
395
|
|
|
432
|
|
||
Purchased options
|
326
|
|
|
375
|
|
||
Total equity contracts
|
996
|
|
|
1,063
|
|
||
Commodity contracts
|
|
|
|
|
|||
Swaps
|
83
|
|
|
126
|
|
||
Spot, futures and forwards
|
99
|
|
|
193
|
|
||
Written options
|
115
|
|
|
181
|
|
||
Purchased options
|
112
|
|
|
180
|
|
||
Total commodity contracts
|
409
|
|
|
680
|
|
||
Total derivative notional amounts
|
$
|
50,659
|
|
|
$
|
63,662
|
|
(a)
|
For more information on volumes and types of credit derivative contracts, see the Credit derivatives discussion on
pages 218–220
of this Note.
|
(b)
|
Represents the sum of gross long and gross short third-party notional derivative contracts.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
211
|
(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 Firm’s Consolidated balance sheets or its results of operations.
|
212
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
2015
|
|
2014
|
||||||||||||||||||||
December 31, (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
|
$
|
417,386
|
|
$
|
(396,506
|
)
|
|
$
|
20,880
|
|
|
$
|
542,107
|
|
(c)
|
$
|
(514,914
|
)
|
(c)
|
$
|
27,193
|
|
|
OTC–cleared
|
246,750
|
|
(246,742
|
)
|
|
8
|
|
|
401,656
|
|
|
(401,618
|
)
|
|
38
|
|
|||||||
Exchange-traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total interest rate contracts
|
664,136
|
|
(643,248
|
)
|
|
20,888
|
|
|
943,763
|
|
(c)
|
(916,532
|
)
|
(c)
|
27,231
|
|
|||||||
Credit contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
44,082
|
|
(43,182
|
)
|
|
900
|
|
|
66,636
|
|
|
(65,720
|
)
|
|
916
|
|
|||||||
OTC–cleared
|
6,866
|
|
(6,863
|
)
|
|
3
|
|
|
9,320
|
|
|
(9,284
|
)
|
|
36
|
|
|||||||
Total credit contracts
|
50,948
|
|
(50,045
|
)
|
|
903
|
|
|
75,956
|
|
|
(75,004
|
)
|
|
952
|
|
|||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
175,060
|
|
(162,377
|
)
|
|
12,683
|
|
|
208,803
|
|
(c)
|
(193,900
|
)
|
(c)
|
14,903
|
|
|||||||
OTC–cleared
|
323
|
|
(321
|
)
|
|
2
|
|
|
36
|
|
|
(34
|
)
|
|
2
|
|
|||||||
Exchange-traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total foreign exchange contracts
|
175,383
|
|
(162,698
|
)
|
|
12,685
|
|
|
208,839
|
|
(c)
|
(193,934
|
)
|
(c)
|
14,905
|
|
|||||||
Equity contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
20,690
|
|
(20,439
|
)
|
|
251
|
|
|
23,258
|
|
|
(22,826
|
)
|
|
432
|
|
|||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Exchange-traded
(a)
|
12,285
|
|
(9,891
|
)
|
|
2,394
|
|
|
13,840
|
|
(c)
|
(11,486
|
)
|
(c)
|
2,354
|
|
|||||||
Total equity contracts
|
32,975
|
|
(30,330
|
)
|
|
2,645
|
|
|
37,098
|
|
(c)
|
(34,312
|
)
|
(c)
|
2,786
|
|
|||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
15,001
|
|
(6,772
|
)
|
|
8,229
|
|
|
22,555
|
|
|
(14,327
|
)
|
|
8,228
|
|
|||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Exchange-traded
(a)
|
9,199
|
|
(9,108
|
)
|
|
91
|
|
|
19,500
|
|
|
(15,344
|
)
|
|
4,156
|
|
|||||||
Total commodity contracts
|
24,200
|
|
(15,880
|
)
|
|
8,320
|
|
|
42,055
|
|
|
(29,671
|
)
|
|
12,384
|
|
|||||||
Derivative receivables with appropriate legal opinion
|
$
|
947,642
|
|
$
|
(902,201
|
)
|
(b)
|
$
|
45,441
|
|
|
$
|
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
|
14,236
|
|
|
|
14,236
|
|
|
20,717
|
|
|
|
|
20,717
|
|
|||||||||
Total derivative receivables recognized on the Consolidated balance sheets
|
$
|
961,878
|
|
|
|
$
|
59,677
|
|
|
$
|
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
$73.7 billion
and
$74.0 billion
at December 31, 2015, and 2014, respectively.
|
(c)
|
The prior period amounts have been revised to conform with the current period presentation. These revisions had no impact on Firm’s Consolidated balance sheets or its results of operations.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
213
|
|
2015
|
|
2014
|
||||||||||||||||||||
December 31, (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
|
$
|
393,709
|
|
$
|
(384,576
|
)
|
|
$
|
9,133
|
|
|
$
|
515,904
|
|
(c)
|
$
|
(503,384
|
)
|
(c)
|
$
|
12,520
|
|
|
OTC–cleared
|
240,398
|
|
(240,369
|
)
|
|
29
|
|
|
398,518
|
|
|
(397,250
|
)
|
|
1,268
|
|
|||||||
Exchange-traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total interest rate contracts
|
634,107
|
|
(624,945
|
)
|
|
9,162
|
|
|
914,422
|
|
(c)
|
(900,634
|
)
|
(c)
|
13,788
|
|
|||||||
Credit contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
44,379
|
|
(43,019
|
)
|
|
1,360
|
|
|
65,432
|
|
|
(64,904
|
)
|
|
528
|
|
|||||||
OTC–cleared
|
5,969
|
|
(5,969
|
)
|
|
—
|
|
|
9,398
|
|
|
(9,398
|
)
|
|
—
|
|
|||||||
Total credit contracts
|
50,348
|
|
(48,988
|
)
|
|
1,360
|
|
|
74,830
|
|
|
(74,302
|
)
|
|
528
|
|
|||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
185,178
|
|
(170,830
|
)
|
|
14,348
|
|
|
217,998
|
|
(c)
|
(201,578
|
)
|
(c)
|
16,420
|
|
|||||||
OTC–cleared
|
301
|
|
(301
|
)
|
|
—
|
|
|
66
|
|
|
(66
|
)
|
|
—
|
|
|||||||
Exchange-traded
(a)
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total foreign exchange contracts
|
185,479
|
|
(171,131
|
)
|
|
14,348
|
|
|
218,064
|
|
(c)
|
(201,644
|
)
|
(c)
|
16,420
|
|
|||||||
Equity contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
23,458
|
|
(19,589
|
)
|
|
3,869
|
|
|
27,908
|
|
|
(23,036
|
)
|
|
4,872
|
|
|||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Exchange-traded
(a)
|
10,998
|
|
(9,891
|
)
|
|
1,107
|
|
|
12,864
|
|
(c)
|
(11,486
|
)
|
(c)
|
1,378
|
|
|||||||
Total equity contracts
|
34,456
|
|
(29,480
|
)
|
|
4,976
|
|
|
40,772
|
|
(c)
|
(34,522
|
)
|
(c)
|
6,250
|
|
|||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTC
|
16,953
|
|
(6,256
|
)
|
|
10,697
|
|
|
25,129
|
|
|
(13,211
|
)
|
|
11,918
|
|
|||||||
OTC–cleared
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Exchange-traded
(a)
|
9,374
|
|
(9,322
|
)
|
|
52
|
|
|
18,486
|
|
|
(15,344
|
)
|
|
3,142
|
|
|||||||
Total commodity contracts
|
26,327
|
|
(15,578
|
)
|
|
10,749
|
|
|
43,615
|
|
|
(28,555
|
)
|
|
15,060
|
|
|||||||
Derivative payables with appropriate legal opinions
|
$
|
930,717
|
|
$
|
(890,122
|
)
|
(b)
|
$
|
40,595
|
|
|
$
|
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
|
12,195
|
|
|
|
12,195
|
|
|
19,070
|
|
|
|
|
19,070
|
|
|||||||||
Total derivative payables recognized on the Consolidated balance sheets
|
$
|
942,912
|
|
|
|
$
|
52,790
|
|
|
$
|
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
$61.6 billion
and
$64.2 billion
related to OTC and OTC-cleared derivatives at December 31, 2015, and 2014, respectively.
|
(c)
|
The prior period amounts have been revised to conform with the current period presentation. These revisions had no impact on Firm’s Consolidated balance sheets or its results of operations.
|
214
|
|
JPMorgan Chase & Co./2015 Annual Report
|
(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 payables 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
|
||||||
December 31, (in millions)
|
2015
|
2014
|
||||
Aggregate fair value of net derivative payables
|
$
|
22,328
|
|
$
|
32,303
|
|
Collateral posted
|
18,942
|
|
27,585
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
215
|
Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives
|
|||||||||||||
|
2015
|
|
2014
|
||||||||||
December 31, (in millions)
|
Single-notch downgrade
|
Two-notch downgrade
|
|
Single-notch downgrade
|
Two-notch downgrade
|
||||||||
Amount of additional collateral to be posted upon downgrade
(a)
|
$
|
807
|
|
$
|
3,028
|
|
|
$
|
1,046
|
|
$
|
3,331
|
|
Amount required to settle contracts with termination triggers upon downgrade
(b)
|
271
|
|
1,093
|
|
|
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:
|
||||||||||||||||
Year ended December 31, 2015 (in millions)
|
Derivatives
|
Hedged items
|
Total income statement impact
|
|
Hedge ineffectiveness
(d)
|
Excluded components
(e)
|
|||||||||||||
Contract type
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
38
|
|
|
$
|
911
|
|
|
$
|
949
|
|
|
$
|
3
|
|
|
$
|
946
|
|
Foreign exchange
(b)
|
6,030
|
|
|
(6,006
|
)
|
|
24
|
|
|
—
|
|
|
24
|
|
|||||
Commodity
(c)
|
1,153
|
|
|
(1,142
|
)
|
|
11
|
|
|
(13
|
)
|
|
24
|
|
|||||
Total
|
$
|
7,221
|
|
|
$
|
(6,237
|
)
|
|
$
|
984
|
|
|
$
|
(10
|
)
|
|
$
|
994
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Gains/(losses) recorded in income
|
|
Income statement impact due to:
|
||||||||||||||||
Year ended December 31, 2014 (in millions)
|
Derivatives
|
Hedged items
|
Total income statement impact
|
|
Hedge ineffectiveness
(d)
|
Excluded components
(e)
|
|||||||||||||
Contract type
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
2,106
|
|
|
$
|
(801
|
)
|
|
$
|
1,305
|
|
|
$
|
131
|
|
|
$
|
1,174
|
|
Foreign exchange
(b)
|
8,279
|
|
|
(8,532
|
)
|
|
(253
|
)
|
|
—
|
|
|
(253
|
)
|
|||||
Commodity
(c)
|
49
|
|
|
145
|
|
|
194
|
|
|
42
|
|
|
152
|
|
|||||
Total
|
$
|
10,434
|
|
|
$
|
(9,188
|
)
|
|
$
|
1,246
|
|
|
$
|
173
|
|
|
$
|
1,073
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Gains/(losses) recorded in income
|
|
Income statement impact due to:
|
||||||||||||||||
Year ended December 31, 2013 (in millions)
|
Derivatives
|
Hedged items
|
Total income statement impact
|
|
Hedge ineffectiveness
(d)
|
Excluded components
(e)
|
|||||||||||||
Contract type
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate
(a)
|
$
|
(3,469
|
)
|
|
$
|
4,851
|
|
|
$
|
1,382
|
|
|
$
|
(132
|
)
|
|
$
|
1,514
|
|
Foreign exchange
(b)
|
(1,096
|
)
|
|
864
|
|
|
(232
|
)
|
|
—
|
|
|
(232
|
)
|
|||||
Commodity
(c)
|
485
|
|
|
(1,304
|
)
|
|
(819
|
)
|
|
38
|
|
|
(857
|
)
|
|||||
Total
|
$
|
(4,080
|
)
|
|
$
|
4,411
|
|
|
$
|
331
|
|
|
$
|
(94
|
)
|
|
$
|
425
|
|
(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 primarily in principal transactions revenue and net interest income.
|
216
|
|
JPMorgan Chase & Co./2015 Annual Report
|
(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)
|
|
||||||||||||||||||||
Year ended December 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)
|
|
$
|
(99
|
)
|
|
|
$
|
—
|
|
|
|
$
|
(99
|
)
|
|
$
|
(44
|
)
|
|
$
|
55
|
|
|
Foreign exchange
(b)
|
|
(81
|
)
|
|
|
—
|
|
|
|
(81
|
)
|
|
(53
|
)
|
|
28
|
|
|
|||||
Total
|
|
$
|
(180
|
)
|
|
|
$
|
—
|
|
|
|
$
|
(180
|
)
|
|
$
|
(97
|
)
|
|
$
|
83
|
|
|
|
|
Gains/(losses) recorded in income and other comprehensive income/(loss)
|
|
||||||||||||||||||||
Year ended December 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)
|
|
$
|
(54
|
)
|
|
|
$
|
—
|
|
|
|
$
|
(54
|
)
|
|
$
|
189
|
|
|
$
|
243
|
|
|
Foreign exchange
(b)
|
|
78
|
|
|
|
—
|
|
|
|
78
|
|
|
(91
|
)
|
|
(169
|
)
|
|
|||||
Total
|
|
$
|
24
|
|
|
|
$
|
—
|
|
|
|
$
|
24
|
|
|
$
|
98
|
|
|
$
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Gains/(losses) recorded in income and other comprehensive income/(loss)
|
|
||||||||||||||||||||
Year ended December 31, 2013
(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)
|
|
$
|
(108
|
)
|
|
|
$
|
—
|
|
|
|
$
|
(108
|
)
|
|
$
|
(565
|
)
|
|
$
|
(457
|
)
|
|
Foreign exchange
(b)
|
|
7
|
|
|
|
—
|
|
|
|
7
|
|
|
40
|
|
|
33
|
|
|
|||||
Total
|
|
$
|
(101
|
)
|
|
|
$
|
—
|
|
|
|
$
|
(101
|
)
|
|
$
|
(525
|
)
|
|
$
|
(424
|
)
|
|
(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 the forecasted transactions that the Firm determined during the year ended December 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.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
217
|
|
Gains/(losses) recorded in income and other comprehensive income/(loss)
|
|||||||
|
2015
|
|
2014
|
|
2013
|
|||
Year ended December 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
|
|
Excluded components recorded directly in income
(a)
|
Effective portion recorded in OCI
|
Foreign exchange derivatives
|
$(379)
|
$1,885
|
|
$(448)
|
$1,698
|
|
$(383)
|
$773
|
(a)
|
Certain components of hedging derivatives are permitted to be excluded from the assessment of hedge effectiveness, such as forward points on foreign exchange forward contracts. Amounts related to excluded components are recorded in other income. The Firm measures the ineffectiveness of net investment hedge accounting relationships based on changes in spot foreign currency rates and, therefore, there was no significant ineffectiveness for net investment hedge accounting relationships during
2015
,
2014
and
2013
.
|
(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.
|
218
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
219
|
|
Maximum payout/Notional amount
|
|
||||||||||||||
|
Protection sold
|
|
Protection purchased with identical underlyings
(b)
|
Net protection (sold)/purchased
(c)
|
Other protection purchased
(d)
|
|
||||||||||
December 31, 2015
(in millions)
|
|
|||||||||||||||
Credit derivatives
|
|
|
|
|
|
|
|
|
||||||||
Credit default swaps
|
$
|
(1,386,071
|
)
|
|
|
$
|
1,402,201
|
|
|
$
|
16,130
|
|
$
|
12,011
|
|
|
Other credit derivatives
(a)
|
(42,738
|
)
|
|
|
38,158
|
|
|
(4,580
|
)
|
18,792
|
|
|
||||
Total credit derivatives
|
(1,428,809
|
)
|
|
|
1,440,359
|
|
|
11,550
|
|
30,803
|
|
|
||||
Credit-related notes
|
(30
|
)
|
|
|
—
|
|
|
(30
|
)
|
4,715
|
|
|
||||
Total
|
$
|
(1,428,839
|
)
|
|
|
$
|
1,440,359
|
|
|
$
|
11,520
|
|
$
|
35,518
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Maximum payout/Notional amount
|
|
||||||||||||||
|
Protection sold
|
|
Protection purchased with identical underlyings
(b)
|
Net protection (sold)/purchased
(c)
|
Other protection purchased
(d)
|
|
||||||||||
December 31, 2014 (in millions)
|
|
|||||||||||||||
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 Investors Service (“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.
|
220
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Year ended December 31,
(in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Underwriting
|
|
|
|
|
|
||||||
Equity
|
$
|
1,408
|
|
|
$
|
1,571
|
|
|
$
|
1,499
|
|
Debt
|
3,232
|
|
|
3,340
|
|
|
3,537
|
|
|||
Total underwriting
|
4,640
|
|
|
4,911
|
|
|
5,036
|
|
|||
Advisory
|
2,111
|
|
|
1,631
|
|
|
1,318
|
|
|||
Total investment banking fees
|
$
|
6,751
|
|
|
$
|
6,542
|
|
|
$
|
6,354
|
|
Year ended December 31,
(in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Trading revenue by instrument type
|
|
|
|
|
|
||||||
Interest rate
|
$
|
1,933
|
|
|
$
|
1,362
|
|
|
$
|
284
|
|
Credit
|
1,735
|
|
|
1,880
|
|
|
2,654
|
|
|||
Foreign exchange
|
2,557
|
|
|
1,556
|
|
|
1,801
|
|
|||
Equity
|
2,990
|
|
|
2,563
|
|
|
2,517
|
|
|||
Commodity
(a)
|
842
|
|
|
1,663
|
|
|
2,083
|
|
|||
Total trading revenue
|
10,057
|
|
|
9,024
|
|
|
9,339
|
|
|||
Private equity gains
(b)
|
351
|
|
|
1,507
|
|
|
802
|
|
|||
Principal transactions
|
$
|
10,408
|
|
|
$
|
10,531
|
|
|
$
|
10,141
|
|
(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 6.
|
(b)
|
Includes revenue on private equity investments held in the Private Equity business within Corporate, as well as those held in other business segments.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
221
|
Year ended December 31,
(in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Asset management fees
|
|
|
|
|
|
||||||
Investment management fees
(a)
|
$
|
9,403
|
|
|
$
|
9,169
|
|
|
$
|
8,044
|
|
All other asset management fees
(b)
|
352
|
|
|
477
|
|
|
505
|
|
|||
Total asset management fees
|
9,755
|
|
|
9,646
|
|
|
8,549
|
|
|||
|
|
|
|
|
|
||||||
Total administration fees
(c)
|
2,015
|
|
|
2,179
|
|
|
2,101
|
|
|||
|
|
|
|
|
|
||||||
Commissions and other fees
|
|
|
|
|
|
||||||
Brokerage commissions
|
2,304
|
|
|
2,270
|
|
|
2,321
|
|
|||
All other commissions and fees
|
1,435
|
|
|
1,836
|
|
|
2,135
|
|
|||
Total commissions and fees
|
3,739
|
|
|
4,106
|
|
|
4,456
|
|
|||
Total asset management, administration and commissions
|
$
|
15,509
|
|
|
$
|
15,931
|
|
|
$
|
15,106
|
|
(a)
|
Represents fees earned from managing assets on behalf of the Firm’s 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.
|
Year ended December 31, (in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Operating lease income
|
$
|
2,081
|
|
|
$
|
1,699
|
|
|
$
|
1,472
|
|
Gain from sale of Visa B shares
|
—
|
|
|
—
|
|
|
1,310
|
|
222
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Year ended December 31,
(in millions)
|
2015
|
2014
|
2013
|
||||||
Interest Income
|
|
|
|
||||||
Loans
|
$
|
33,134
|
|
$
|
32,218
|
|
$
|
33,489
|
|
Taxable securities
|
6,550
|
|
7,617
|
|
6,916
|
|
|||
Non taxable securities
(a)
|
1,706
|
|
1,423
|
|
896
|
|
|||
Total securities
|
8,256
|
|
9,040
|
|
7,812
|
|
|||
Trading assets
|
6,621
|
|
7,312
|
|
8,099
|
|
|||
Federal funds sold and securities purchased under resale agreements
|
1,592
|
|
1,642
|
|
1,940
|
|
|||
Securities borrowed
(b)
|
(532
|
)
|
(501
|
)
|
(127
|
)
|
|||
Deposits with banks
|
1,250
|
|
1,157
|
|
918
|
|
|||
Other assets
(c)
|
652
|
|
663
|
|
538
|
|
|||
Total interest income
|
$
|
50,973
|
|
$
|
51,531
|
|
$
|
52,669
|
|
Interest expense
|
|
|
|
||||||
Interest bearing deposits
|
$
|
1,252
|
|
$
|
1,633
|
|
$
|
2,067
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
609
|
|
604
|
|
582
|
|
|||
Commercial paper
|
110
|
|
134
|
|
112
|
|
|||
Trading liabilities - debt, short-term and other liabilities
|
622
|
|
712
|
|
1,104
|
|
|||
Long-term debt
|
4,435
|
|
4,409
|
|
5,007
|
|
|||
Beneficial interest issued by consolidated VIEs
|
435
|
|
405
|
|
478
|
|
|||
Total interest expense
|
$
|
7,463
|
|
$
|
7,897
|
|
$
|
9,350
|
|
Net interest income
|
$
|
43,510
|
|
$
|
43,634
|
|
$
|
43,319
|
|
Provision for credit losses
|
3,827
|
|
3,139
|
|
225
|
|
|||
Net interest income after provision for credit losses
|
$
|
39,683
|
|
$
|
40,495
|
|
$
|
43,094
|
|
(a)
|
Represents securities which are tax exempt for U.S. federal income tax purposes.
|
(b)
|
Negative interest income for the years ended December 31, 2015, 2014 and 2013, 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.
|
(c)
|
Largely margin loans.
|
(d)
|
Includes brokerage customer payables.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
223
|
|
Defined benefit pension plans
|
|
|
||||||||||||||||||||
As of or for the year ended December 31,
|
U.S.
|
|
Non-U.S.
|
|
OPEB plans
(d)
|
||||||||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||
Change in benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Benefit obligation, beginning of year
|
$
|
(12,536
|
)
|
|
$
|
(10,776
|
)
|
|
$
|
(3,640
|
)
|
|
$
|
(3,433
|
)
|
|
$
|
(842
|
)
|
|
$
|
(826
|
)
|
Benefits earned during the year
|
(340
|
)
|
|
(281
|
)
|
|
(37
|
)
|
|
(33
|
)
|
|
(1
|
)
|
|
—
|
|
||||||
Interest cost on benefit obligations
|
(498
|
)
|
|
(534
|
)
|
|
(112
|
)
|
|
(137
|
)
|
|
(31
|
)
|
|
(38
|
)
|
||||||
Plan amendments
|
—
|
|
|
(53
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Special termination benefits
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||||
Curtailments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
Employee contributions
|
NA
|
|
|
NA
|
|
|
(7
|
)
|
|
(7
|
)
|
|
(25
|
)
|
|
(62
|
)
|
||||||
Net gain/(loss)
|
702
|
|
|
(1,669
|
)
|
|
146
|
|
|
(408
|
)
|
|
71
|
|
|
(58
|
)
|
||||||
Benefits paid
|
760
|
|
|
777
|
|
|
120
|
|
|
119
|
|
|
88
|
|
|
145
|
|
||||||
Expected Medicare Part D subsidy receipts
|
NA
|
|
|
NA
|
|
|
NA
|
|
|
NA
|
|
|
(6
|
)
|
|
(2
|
)
|
||||||
Foreign exchange impact and other
|
—
|
|
|
—
|
|
|
184
|
|
|
260
|
|
|
2
|
|
|
2
|
|
||||||
Benefit obligation, end of year
|
$
|
(11,912
|
)
|
|
$
|
(12,536
|
)
|
|
$
|
(3,347
|
)
|
|
$
|
(3,640
|
)
|
|
$
|
(744
|
)
|
|
$
|
(842
|
)
|
Change in plan assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value of plan assets, beginning of year
|
$
|
14,623
|
|
|
$
|
14,354
|
|
|
$
|
3,718
|
|
|
$
|
3,532
|
|
|
$
|
1,903
|
|
|
$
|
1,757
|
|
Actual return on plan assets
|
231
|
|
|
1,010
|
|
|
52
|
|
|
518
|
|
|
13
|
|
|
159
|
|
||||||
Firm contributions
|
31
|
|
|
36
|
|
|
45
|
|
|
46
|
|
|
2
|
|
|
3
|
|
||||||
Employee contributions
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
||||||
Benefits paid
|
(760
|
)
|
|
(777
|
)
|
|
(120
|
)
|
|
(119
|
)
|
|
(63
|
)
|
|
(16
|
)
|
||||||
Foreign exchange impact and other
|
—
|
|
|
—
|
|
|
(191
|
)
|
|
(266
|
)
|
|
—
|
|
|
—
|
|
||||||
Fair value of plan assets, end of year
|
$
|
14,125
|
|
|
$
|
14,623
|
|
(b)(c)
|
$
|
3,511
|
|
|
$
|
3,718
|
|
|
$
|
1,855
|
|
|
$
|
1,903
|
|
Net funded status
(a)
|
$
|
2,213
|
|
|
$
|
2,087
|
|
|
$
|
164
|
|
|
$
|
78
|
|
|
$
|
1,111
|
|
|
$
|
1,061
|
|
Accumulated benefit obligation, end of year
|
$
|
(11,774
|
)
|
|
$
|
(12,375
|
)
|
|
$
|
(3,322
|
)
|
|
$
|
(3,615
|
)
|
|
NA
|
|
|
NA
|
|
(a)
|
Represents plans with an aggregate overfunded balance of
$4.1 billion
and
$3.9 billion
at
December 31, 2015
and
2014
, respectively, and plans with an aggregate underfunded balance of
$636 million
and
$708 million
at
December 31, 2015
and
2014
, respectively.
|
(b)
|
At
December 31, 2015
and
2014
, approximately
$533 million
and
$336 million
, respectively, of U.S. plan assets included participation rights under participating annuity contracts.
|
(c)
|
At
December 31, 2015
and
2014
, defined benefit pension plan amounts not measured at fair value included
$74 million
and
$106 million
, respectively, of accrued receivables, and
$123 million
and
$257 million
, respectively, of accrued liabilities, for U.S. plans.
|
(d)
|
Includes an unfunded accumulated postretirement benefit obligation of
$32 million
and
$37 million
at
December 31, 2015
and
2014
, respectively, for the U.K. plan.
|
224
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
Defined benefit pension plans
|
|
|
||||||||||||||||||||
December 31,
|
U.S.
|
|
Non-U.S.
|
|
OPEB plans
|
||||||||||||||||||
(in millions)
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
||||||
Net gain/(loss)
|
$
|
(3,096
|
)
|
|
$
|
(3,346
|
)
|
|
$
|
(513
|
)
|
|
$
|
(628
|
)
|
|
$
|
109
|
|
|
$
|
130
|
|
Prior service credit/(cost)
|
68
|
|
|
102
|
|
|
9
|
|
|
11
|
|
|
—
|
|
|
—
|
|
||||||
Accumulated other comprehensive income/(loss), pretax, end of year
|
$
|
(3,028
|
)
|
|
$
|
(3,244
|
)
|
|
$
|
(504
|
)
|
|
$
|
(617
|
)
|
|
$
|
109
|
|
|
$
|
130
|
|
|
Pension plans
|
|
|
|
|
||||||||||||||||||||||||||
|
U.S.
|
|
Non-U.S.
|
|
OPEB plans
|
||||||||||||||||||||||||||
Year ended December 31, (in millions)
|
2015
|
|
2014
|
|
2013
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2015
|
|
2014
|
|
2013
|
|
|||||||||
Components of net periodic benefit cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Benefits earned during the year
|
$
|
340
|
|
$
|
281
|
|
$
|
314
|
|
|
$
|
37
|
|
|
$
|
33
|
|
|
$
|
34
|
|
|
$
|
1
|
|
$
|
—
|
|
$
|
1
|
|
Interest cost on benefit obligations
|
498
|
|
534
|
|
447
|
|
|
112
|
|
|
137
|
|
|
125
|
|
|
31
|
|
38
|
|
35
|
|
|||||||||
Expected return on plan assets
|
(929
|
)
|
(985
|
)
|
(956
|
)
|
|
(150
|
)
|
|
(172
|
)
|
|
(142
|
)
|
|
(106
|
)
|
(101
|
)
|
(92
|
)
|
|||||||||
Amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net (gain)/loss
|
247
|
|
25
|
|
271
|
|
|
35
|
|
|
47
|
|
|
49
|
|
|
—
|
|
—
|
|
1
|
|
|||||||||
Prior service cost/(credit)
|
(34
|
)
|
(41
|
)
|
(41
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
(1
|
)
|
—
|
|
|||||||||
Special termination benefits
|
—
|
|
—
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Net periodic defined benefit cost
|
122
|
|
(186
|
)
|
35
|
|
|
33
|
|
|
43
|
|
|
64
|
|
|
(74
|
)
|
(64
|
)
|
(55
|
)
|
|||||||||
Other defined benefit pension plans
(a)
|
14
|
|
14
|
|
15
|
|
|
10
|
|
|
6
|
|
|
14
|
|
|
NA
|
|
NA
|
|
NA
|
|
|||||||||
Total defined benefit plans
|
136
|
|
(172
|
)
|
50
|
|
|
43
|
|
|
49
|
|
|
78
|
|
|
(74
|
)
|
(64
|
)
|
(55
|
)
|
|||||||||
Total defined contribution plans
|
449
|
|
438
|
|
447
|
|
|
320
|
|
|
329
|
|
|
321
|
|
|
NA
|
|
NA
|
|
NA
|
|
|||||||||
Total pension and OPEB cost included in compensation expense
|
$
|
585
|
|
$
|
266
|
|
$
|
497
|
|
|
$
|
363
|
|
|
$
|
378
|
|
|
$
|
399
|
|
|
$
|
(74
|
)
|
$
|
(64
|
)
|
$
|
(55
|
)
|
Changes in plan assets and benefit obligations recognized in other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net (gain)/loss arising during the year
|
$
|
(3
|
)
|
$
|
1,645
|
|
$
|
(1,817
|
)
|
|
$
|
(47
|
)
|
|
$
|
57
|
|
|
$
|
19
|
|
|
$
|
21
|
|
$
|
(5
|
)
|
$
|
(257
|
)
|
Prior service credit arising during the year
|
—
|
|
53
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Amortization of net loss
|
(247
|
)
|
(25
|
)
|
(271
|
)
|
|
(35
|
)
|
|
(47
|
)
|
|
(49
|
)
|
|
—
|
|
—
|
|
(1
|
)
|
|||||||||
Amortization of prior service (cost)/credit
|
34
|
|
41
|
|
41
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
—
|
|
1
|
|
—
|
|
|||||||||
Foreign exchange impact and other
|
—
|
|
—
|
|
—
|
|
|
(33
|
)
|
(a)
|
(39
|
)
|
(a)
|
14
|
|
(a)
|
—
|
|
—
|
|
—
|
|
|||||||||
Total recognized in other comprehensive income
|
$
|
(216
|
)
|
$
|
1,714
|
|
$
|
(2,047
|
)
|
|
$
|
(113
|
)
|
|
$
|
(27
|
)
|
|
$
|
(14
|
)
|
|
$
|
21
|
|
$
|
(4
|
)
|
$
|
(258
|
)
|
Total recognized in net periodic benefit cost and other comprehensive income
|
$
|
(94
|
)
|
$
|
1,528
|
|
$
|
(2,012
|
)
|
|
$
|
(80
|
)
|
|
$
|
16
|
|
|
$
|
50
|
|
|
$
|
(53
|
)
|
$
|
(68
|
)
|
$
|
(313
|
)
|
(a)
|
Includes various defined benefit pension plans which are individually immaterial.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
225
|
|
|
Defined benefit pension plans
|
|
OPEB plans
|
||||||||||||
(in millions)
|
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
||||||||
Net loss/(gain)
|
|
$
|
231
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Prior service cost/(credit)
|
|
(34
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
197
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
U.S.
|
|
Non-U.S.
|
|||||||||||
Year ended December 31,
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2015
|
|
2014
|
|
2013
|
Actual rate of return:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Defined benefit pension plans
|
0.88
|
%
|
|
7.29
|
%
|
|
15.95
|
%
|
|
(0.48) – 4.92%
|
|
5.62 – 17.69%
|
|
3.74 – 23.80%
|
OPEB plans
|
1.16
|
|
|
9.84
|
|
|
13.88
|
|
|
NA
|
|
NA
|
|
NA
|
226
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Year ended December 31, 2015
(in millions)
|
1-Percentage point increase
|
|
1-Percentage point decrease
|
||||
Effect on accumulated postretirement benefit obligation
|
$
|
8
|
|
|
$
|
(7
|
)
|
JPMorgan Chase & Co./2015 Annual Report
|
|
227
|
|
Defined benefit pension plans
|
|
|
||||||||||||||||||||||
|
U.S.
|
|
Non-U.S.
|
|
OPEB plans
(c)
|
||||||||||||||||||||
|
Target
|
|
% of plan assets
|
|
Target
|
|
% of plan assets
|
|
Target
|
|
% of plan assets
|
||||||||||||||
December 31,
|
Allocation
|
|
2015
|
|
|
2014
|
|
|
Allocation
|
|
2015
|
|
|
2014
|
|
|
Allocation
|
|
2015
|
|
|
2014
|
|
||
Asset category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt securities
(a)
|
0-80%
|
|
32
|
%
|
|
31
|
%
|
|
59
|
%
|
|
60
|
%
|
|
61
|
%
|
|
30-70%
|
|
|
50
|
%
|
|
50
|
%
|
Equity securities
|
0-85
|
|
48
|
|
|
46
|
|
|
40
|
|
|
38
|
|
|
38
|
|
|
30-70
|
|
|
50
|
|
|
50
|
|
Real estate
|
0-10
|
|
4
|
|
|
4
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Alternatives
(b)
|
0-35
|
|
16
|
|
|
19
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
100%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
(a)
|
Debt securities primarily include corporate debt, U.S. federal, state, local and non-U.S. government, and mortgage-backed securities.
|
(b)
|
Alternatives primarily include limited partnerships.
|
(c)
|
Represents the U.S. OPEB plan only, as the U.K. OPEB plan is unfunded.
|
228
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
U.S. defined benefit pension plans
|
|
Non-U.S. defined benefit pension plans
(g)
|
||||||||||||||||||||||||
December 31, 2014
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total fair value
|
|
Level 1
|
|
Level 2
|
|
Total fair value
|
||||||||||||||
Cash and cash equivalents
|
$
|
87
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
87
|
|
|
$
|
128
|
|
|
$
|
1
|
|
|
$
|
129
|
|
Equity securities
|
5,286
|
|
|
20
|
|
|
4
|
|
|
5,310
|
|
|
1,019
|
|
|
169
|
|
|
1,188
|
|
|||||||
Common/collective trust funds
(a)
|
345
|
|
|
—
|
|
|
—
|
|
|
345
|
|
|
112
|
|
|
—
|
|
|
112
|
|
|||||||
Limited partnerships
(b)
|
70
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Corporate debt securities
(c)
|
—
|
|
|
1,454
|
|
|
9
|
|
|
1,463
|
|
|
—
|
|
|
724
|
|
|
724
|
|
|||||||
U.S. federal, state, local and non-U.S. government debt securities
|
446
|
|
|
161
|
|
|
—
|
|
|
607
|
|
|
235
|
|
|
540
|
|
|
775
|
|
|||||||
Mortgage-backed securities
|
1
|
|
|
73
|
|
|
1
|
|
|
75
|
|
|
2
|
|
|
77
|
|
|
79
|
|
|||||||
Derivative receivables
|
—
|
|
|
114
|
|
|
—
|
|
|
114
|
|
|
—
|
|
|
258
|
|
|
258
|
|
|||||||
Other
(d)
|
2,031
|
|
|
27
|
|
|
337
|
|
|
2,395
|
|
|
283
|
|
|
58
|
|
|
341
|
|
|||||||
Total assets measured at fair value
|
$
|
8,266
|
|
|
$
|
1,849
|
|
|
$
|
351
|
|
|
$
|
10,466
|
|
(e)
|
$
|
1,779
|
|
|
$
|
1,827
|
|
|
$
|
3,606
|
|
Derivative payables
|
$
|
—
|
|
|
$
|
(23
|
)
|
|
$
|
—
|
|
|
$
|
(23
|
)
|
|
$
|
—
|
|
|
$
|
(139
|
)
|
|
$
|
(139
|
)
|
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
(23
|
)
|
|
$
|
—
|
|
|
$
|
(23
|
)
|
(f)
|
$
|
—
|
|
|
$
|
(139
|
)
|
|
$
|
(139
|
)
|
(a)
|
At
December 31, 2015
and
2014
, common/collective trust funds primarily included a mix of short-term investment funds, domestic and international equity investments (including index) and real estate funds.
|
(b)
|
Unfunded commitments to purchase limited partnership investments for the plans were
$895 million
and
$1.2 billion
for 2015 and 2014, respectively.
|
(c)
|
Corporate debt securities include debt securities of U.S. and non-U.S. corporations.
|
(d)
|
Other consists of money markets funds, exchange-traded funds and participating and non-participating annuity contracts. Money markets funds and exchange-traded funds are primarily classified within level 1 of the fair value hierarchy given they are valued using market observable prices. Participating and non-participating annuity contracts are classified within level 3 of the fair value hierarchy due to lack of market mechanisms for transferring each policy and surrender restrictions.
|
(e)
|
At
December 31, 2015
and
2014
, excluded U.S. defined benefit pension plan receivables for investments sold and dividends and interest receivables of
$74 million
and
$106 million
, respectively.
|
(f)
|
At
December 31, 2015
and
2014
, excluded
$106 million
and
$241 million
, respectively, of U.S. defined benefit pension plan payables for investments purchased; and
$17 million
and
$16 million
, respectively, of other liabilities.
|
(g)
|
There were
zero
assets or liabilities classified as level 3 for the non-U.S. defined benefit pension plans as of December 31, 2015 and 2014.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
229
|
Changes in level 3 fair value measurements using significant unobservable inputs
|
|
|
|
|
||||||||||||||||||||
Year ended December 31, 2015
(in millions)
|
|
Fair value, January 1, 2015
|
|
Actual return on plan assets
|
|
Purchases, sales and settlements, net
|
|
Transfers in and/or out of level 3
|
|
Fair value, December 31, 2015
|
||||||||||||||
Realized gains/(losses)
|
|
Unrealized gains/(losses)
|
||||||||||||||||||||||
U.S. defined benefit pension plans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equities
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Corporate debt securities
|
|
9
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
2
|
|
||||||
Mortgage-backed securities
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Other
|
|
337
|
|
|
—
|
|
|
197
|
|
|
—
|
|
|
—
|
|
|
534
|
|
||||||
Total U.S. defined benefit pension plans
|
|
$
|
351
|
|
|
$
|
—
|
|
|
$
|
195
|
|
|
$
|
(7
|
)
|
|
$
|
—
|
|
|
$
|
539
|
|
OPEB plans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
COLI
|
|
$
|
1,903
|
|
|
$
|
—
|
|
|
$
|
(48
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,855
|
|
Total OPEB plans
|
|
$
|
1,903
|
|
|
$
|
—
|
|
|
$
|
(48
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,855
|
|
Year ended December 31, 2014
(in millions)
|
|
Fair value, January 1, 2014
|
|
Actual return on plan assets
|
|
Purchases, sales and settlements, net
|
|
Transfers in and/or out of level 3
|
|
Fair value, December 31, 2014
|
||||||||||||||
Realized gains/(losses)
|
|
Unrealized gains/(losses)
|
||||||||||||||||||||||
U.S. defined benefit pension plans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equities
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Corporate debt securities
|
|
7
|
|
|
(2
|
)
|
|
2
|
|
|
4
|
|
|
(2
|
)
|
|
9
|
|
||||||
Mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Other
|
|
430
|
|
|
—
|
|
|
(93
|
)
|
|
—
|
|
|
—
|
|
|
337
|
|
||||||
Total U.S. defined benefit pension plans
|
|
$
|
441
|
|
|
$
|
(2
|
)
|
|
$
|
(91
|
)
|
|
$
|
5
|
|
|
$
|
(2
|
)
|
|
$
|
351
|
|
OPEB plans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
COLI
|
|
$
|
1,749
|
|
|
$
|
—
|
|
|
$
|
154
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,903
|
|
Total OPEB plans
|
|
$
|
1,749
|
|
|
$
|
—
|
|
|
$
|
154
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,903
|
|
Year ended December 31, 2013
(in millions)
|
|
Fair value, January 1, 2013
|
|
Actual return on plan assets
|
|
Purchases, sales and settlements, net
|
|
Transfers in and/or out of level 3
|
|
Fair value, December 31, 2013
|
||||||||||||||
Realized gains/(losses)
|
|
Unrealized gains/(losses)
|
||||||||||||||||||||||
U.S. defined benefit pension plans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equities
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Corporate debt securities
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
7
|
|
||||||
Mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
|
420
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
430
|
|
||||||
Total U.S. defined benefit pension plans
|
|
$
|
425
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
441
|
|
OPEB plans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
COLI
|
|
$
|
1,554
|
|
|
$
|
—
|
|
|
$
|
195
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,749
|
|
Total OPEB plans
|
|
$
|
1,554
|
|
|
$
|
—
|
|
|
$
|
195
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,749
|
|
Year ended December 31,
(in millions)
|
|
U.S. defined benefit pension plans
|
|
Non-U.S. defined benefit pension plans
|
|
OPEB before Medicare Part D subsidy
|
|
Medicare Part D subsidy
|
||||||||
2016
|
|
$
|
762
|
|
|
$
|
107
|
|
|
$
|
68
|
|
|
$
|
1
|
|
2017
|
|
798
|
|
|
110
|
|
|
66
|
|
|
1
|
|
||||
2018
|
|
927
|
|
|
119
|
|
|
63
|
|
|
1
|
|
||||
2019
|
|
966
|
|
|
123
|
|
|
61
|
|
|
1
|
|
||||
2020
|
|
1,009
|
|
|
129
|
|
|
59
|
|
|
1
|
|
||||
Years 2021–2025
|
|
4,409
|
|
|
722
|
|
|
259
|
|
|
4
|
|
230
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
231
|
|
|
RSUs
|
|
Options/SARs
|
||||||||||||||
Year ended December 31, 2015
|
|
Number of
shares
|
Weighted-average grant
date fair value
|
|
Number of awards
|
|
Weighted-average exercise price
|
|
Weighted-average remaining contractual life
(in years)
|
Aggregate intrinsic value
|
||||||||
(in thousands, except weighted-average data, and where otherwise stated)
|
|
|
|
|||||||||||||||
Outstanding, January 1
|
|
100,568
|
|
$
|
47.81
|
|
|
59,195
|
|
|
$
|
45.00
|
|
|
|
|
||
Granted
|
|
36,096
|
|
56.31
|
|
|
107
|
|
|
64.41
|
|
|
|
|
||||
Exercised or vested
|
|
(47,709
|
)
|
41.64
|
|
|
(14,313
|
)
|
|
40.44
|
|
|
|
|
||||
Forfeited
|
|
(3,648
|
)
|
54.17
|
|
|
(943
|
)
|
|
43.04
|
|
|
|
|
||||
Canceled
|
|
NA
|
|
NA
|
|
|
(580
|
)
|
|
278.93
|
|
|
|
|
||||
Outstanding, December 31
|
|
85,307
|
|
$
|
54.60
|
|
|
43,466
|
|
|
$
|
43.51
|
|
|
4.6
|
$
|
1,109,411
|
|
Exercisable, December 31
|
|
NA
|
|
NA
|
|
|
31,853
|
|
|
43.85
|
|
|
4.0
|
832,929
|
|
Year ended December 31, (in millions)
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Cost of prior grants of RSUs and SARs that are amortized over their applicable vesting periods
|
|
$
|
1,109
|
|
|
$
|
1,371
|
|
|
$
|
1,440
|
|
Accrual of estimated costs of stock-based awards to be granted in future periods including those to full-career eligible employees
|
|
878
|
|
|
819
|
|
|
779
|
|
|||
Total noncash compensation expense related to employee stock-based incentive plans
|
|
$
|
1,987
|
|
|
$
|
2,190
|
|
|
$
|
2,219
|
|
Year ended December 31, (in millions)
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Cash received for options exercised
|
|
$
|
20
|
|
|
$
|
63
|
|
|
$
|
166
|
|
Tax benefit realized
(a)
|
|
64
|
|
|
104
|
|
|
42
|
|
(a)
|
The tax benefit realized from dividends or dividend equivalents paid on equity-classified share-based payment awards that are charged to retained earnings are recorded as an increase to additional paid-in capital and included in the pool of excess tax benefits available to absorb tax deficiencies on share-based payment awards.
|
Year ended December 31,
|
|
2013
|
|
Weighted-average annualized valuation assumptions
|
|
|
|
Risk-free interest rate
|
|
1.18
|
%
|
Expected dividend yield
|
|
2.66
|
|
Expected common stock price volatility
|
|
28
|
|
Expected life (in years)
|
|
6.6
|
232
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Year ended December 31,
(in millions)
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Legal expense
|
$
|
2,969
|
|
|
$
|
2,883
|
|
|
$
|
11,143
|
|
Federal Deposit Insurance Corporation-related (“FDIC”) expense
|
1,227
|
|
|
1,037
|
|
|
1,496
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
233
|
|
2015
|
|
2014
|
||||||||||||||||||||||||
December 31, (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)
|
$
|
53,689
|
|
$
|
1,483
|
|
$
|
106
|
|
|
$
|
55,066
|
|
|
$
|
63,089
|
|
$
|
2,302
|
|
$
|
72
|
|
|
$
|
65,319
|
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Prime and Alt-A
|
7,462
|
|
40
|
|
57
|
|
|
7,445
|
|
|
5,595
|
|
78
|
|
29
|
|
|
5,644
|
|
||||||||
Subprime
|
210
|
|
7
|
|
—
|
|
|
217
|
|
|
677
|
|
14
|
|
—
|
|
|
691
|
|
||||||||
Non-U.S.
|
19,629
|
|
341
|
|
13
|
|
|
19,957
|
|
|
43,550
|
|
1,010
|
|
—
|
|
|
44,560
|
|
||||||||
Commercial
|
22,990
|
|
150
|
|
243
|
|
|
22,897
|
|
|
20,687
|
|
438
|
|
17
|
|
|
21,108
|
|
||||||||
Total mortgage-backed securities
|
103,980
|
|
2,021
|
|
419
|
|
|
105,582
|
|
|
133,598
|
|
3,842
|
|
118
|
|
|
137,322
|
|
||||||||
U.S. Treasury and government agencies
(a)
|
11,202
|
|
—
|
|
166
|
|
|
11,036
|
|
|
13,603
|
|
56
|
|
14
|
|
|
13,645
|
|
||||||||
Obligations of U.S. states and municipalities
|
31,328
|
|
2,245
|
|
23
|
|
|
33,550
|
|
|
27,841
|
|
2,243
|
|
16
|
|
|
30,068
|
|
||||||||
Certificates of deposit
|
282
|
|
1
|
|
—
|
|
|
283
|
|
|
1,103
|
|
1
|
|
1
|
|
|
1,103
|
|
||||||||
Non-U.S. government debt securities
|
35,864
|
|
853
|
|
41
|
|
|
36,676
|
|
|
51,492
|
|
1,272
|
|
21
|
|
|
52,743
|
|
||||||||
Corporate debt securities
|
12,464
|
|
142
|
|
170
|
|
|
12,436
|
|
|
18,158
|
|
398
|
|
24
|
|
|
18,532
|
|
||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Collateralized loan obligations
|
31,146
|
|
52
|
|
191
|
|
|
31,007
|
|
|
30,229
|
|
147
|
|
182
|
|
|
30,194
|
|
||||||||
Other
|
9,125
|
|
72
|
|
100
|
|
|
9,097
|
|
|
12,442
|
|
184
|
|
11
|
|
|
12,615
|
|
||||||||
Total available-for-sale debt securities
|
235,391
|
|
5,386
|
|
1,110
|
|
|
239,667
|
|
|
288,466
|
|
8,143
|
|
387
|
|
|
296,222
|
|
||||||||
Available-for-sale equity securities
|
2,067
|
|
20
|
|
—
|
|
|
2,087
|
|
|
2,513
|
|
17
|
|
—
|
|
|
2,530
|
|
||||||||
Total available-for-sale securities
|
237,458
|
|
5,406
|
|
1,110
|
|
|
241,754
|
|
|
290,979
|
|
8,160
|
|
387
|
|
|
298,752
|
|
||||||||
Total held-to-maturity securities
(b)
|
$
|
49,073
|
|
$
|
1,560
|
|
$
|
46
|
|
|
$
|
50,587
|
|
|
$
|
49,252
|
|
$
|
1,902
|
|
$
|
—
|
|
|
$
|
51,154
|
|
(a)
|
Includes total U.S. government-sponsored enterprise obligations with fair values of
$42.3 billion
and
$59.3 billion
at
December 31, 2015
and
2014
, respectively, which were predominantly mortgage-related.
|
(b)
|
As of December 31, 2015, consists of mortgage backed securities (“MBS”) issued by U.S. government-sponsored enterprises with an amortized cost of
$30.8 billion
, MBS issued by U.S. government agencies with an amortized cost of
$5.5 billion
and obligations of U.S. states and municipalities with an amortized cost of
$12.8 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
.
|
234
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
Securities with gross unrealized losses
|
||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
|
||||||||||||||
December 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
|
$
|
13,002
|
|
$
|
95
|
|
|
$
|
697
|
|
$
|
11
|
|
$
|
13,699
|
|
$
|
106
|
|
Residential:
|
|
|
|
|
|
|
|
||||||||||||
Prime and Alt-A
|
5,147
|
|
51
|
|
|
238
|
|
6
|
|
5,385
|
|
57
|
|
||||||
Subprime
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Non-U.S.
|
2,021
|
|
12
|
|
|
167
|
|
1
|
|
2,188
|
|
13
|
|
||||||
Commercial
|
13,779
|
|
239
|
|
|
658
|
|
4
|
|
14,437
|
|
243
|
|
||||||
Total mortgage-backed securities
|
33,949
|
|
397
|
|
|
1,760
|
|
22
|
|
35,709
|
|
419
|
|
||||||
U.S. Treasury and government agencies
|
10,998
|
|
166
|
|
|
—
|
|
—
|
|
10,998
|
|
166
|
|
||||||
Obligations of U.S. states and municipalities
|
1,676
|
|
18
|
|
|
205
|
|
5
|
|
1,881
|
|
23
|
|
||||||
Certificates of deposit
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Non-U.S. government debt securities
|
3,267
|
|
26
|
|
|
367
|
|
15
|
|
3,634
|
|
41
|
|
||||||
Corporate debt securities
|
3,198
|
|
125
|
|
|
848
|
|
45
|
|
4,046
|
|
170
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
||||||||||||
Collateralized loan obligations
|
15,340
|
|
67
|
|
|
10,692
|
|
124
|
|
26,032
|
|
191
|
|
||||||
Other
|
4,284
|
|
60
|
|
|
1,005
|
|
40
|
|
5,289
|
|
100
|
|
||||||
Total available-for-sale debt securities
|
72,712
|
|
859
|
|
|
14,877
|
|
251
|
|
87,589
|
|
1,110
|
|
||||||
Available-for-sale equity securities
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Held-to-maturity securities
|
3,763
|
|
46
|
|
|
—
|
|
—
|
|
3,763
|
|
46
|
|
||||||
Total securities with gross unrealized losses
|
$
|
76,475
|
|
$
|
905
|
|
|
$
|
14,877
|
|
$
|
251
|
|
$
|
91,352
|
|
$
|
1,156
|
|
|
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
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
235
|
Year ended December 31,
(in millions)
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Realized gains
|
$
|
351
|
|
|
$
|
314
|
|
|
$
|
1,302
|
|
Realized losses
|
(127
|
)
|
|
(233
|
)
|
|
(614
|
)
|
|||
OTTI losses
|
(22
|
)
|
|
(4
|
)
|
|
(21
|
)
|
|||
Net securities gains
|
202
|
|
|
77
|
|
|
667
|
|
|||
|
|
|
|
|
|
||||||
OTTI losses
|
|
|
|
|
|
||||||
Credit losses recognized in income
|
(1
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|||
Securities the Firm intends to sell
(a)
|
(21
|
)
|
|
(2
|
)
|
|
(20
|
)
|
|||
Total OTTI losses recognized in income
|
$
|
(22
|
)
|
|
$
|
(4
|
)
|
|
$
|
(21
|
)
|
(a)
|
Excludes realized losses on securities sold of
$5 million
,
$3 million
and
$12 million
for the years ended December 31, 2015, 2014 and 2013, respectively that had been previously reported as an OTTI loss due to the intention to sell the securities.
|
Year ended December 31, (in millions)
|
2015
|
|
2014
|
|
2013
|
|
|||
Balance, beginning of period
|
$
|
3
|
|
$
|
1
|
|
$
|
522
|
|
Additions:
|
|
|
|
||||||
Newly credit-impaired securities
|
1
|
|
2
|
|
1
|
|
|||
Losses reclassified from other comprehensive income on previously credit-impaired securities
|
—
|
|
—
|
|
—
|
|
|||
Reductions:
|
|
|
|
||||||
Sales and redemptions of credit-impaired securities
|
—
|
|
—
|
|
(522
|
)
|
|||
Balance, end of period
|
$
|
4
|
|
$
|
3
|
|
$
|
1
|
|
236
|
|
JPMorgan Chase & Co./2015 Annual Report
|
By remaining maturity
December 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
|
$
|
2,415
|
|
$
|
9,728
|
|
$
|
6,562
|
|
$
|
85,275
|
|
$
|
103,980
|
|
Fair value
|
2,421
|
|
9,886
|
|
6,756
|
|
86,519
|
|
105,582
|
|
|||||
Average yield
(b)
|
1.48
|
%
|
1.86
|
%
|
3.15
|
%
|
3.08
|
%
|
2.93
|
%
|
|||||
U.S. Treasury and government agencies
(a)
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
—
|
|
$
|
—
|
|
$
|
10,069
|
|
$
|
1,133
|
|
$
|
11,202
|
|
Fair value
|
—
|
|
—
|
|
9,932
|
|
1,104
|
|
11,036
|
|
|||||
Average yield
(b)
|
—
|
%
|
—
|
%
|
0.31
|
%
|
0.48
|
%
|
0.33
|
%
|
|||||
Obligations of U.S. states and municipalities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
184
|
|
$
|
754
|
|
$
|
1,520
|
|
$
|
28,870
|
|
$
|
31,328
|
|
Fair value
|
187
|
|
774
|
|
1,600
|
|
30,989
|
|
33,550
|
|
|||||
Average yield
(b)
|
5.21
|
%
|
3.50
|
%
|
5.57
|
%
|
6.68
|
%
|
6.54
|
%
|
|||||
Certificates of deposit
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
230
|
|
$
|
52
|
|
$
|
—
|
|
$
|
—
|
|
$
|
282
|
|
Fair value
|
231
|
|
52
|
|
—
|
|
—
|
|
283
|
|
|||||
Average yield
(b)
|
8.66
|
%
|
3.28
|
%
|
—
|
%
|
—
|
%
|
7.68
|
%
|
|||||
Non-U.S. government debt securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
6,126
|
|
$
|
11,177
|
|
$
|
16,575
|
|
$
|
1,986
|
|
$
|
35,864
|
|
Fair value
|
6,422
|
|
11,429
|
|
16,747
|
|
2,078
|
|
36,676
|
|
|||||
Average yield
(b)
|
3.11
|
%
|
1.84
|
%
|
1.06
|
%
|
0.67
|
%
|
1.63
|
%
|
|||||
Corporate debt securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
2,761
|
|
$
|
7,175
|
|
$
|
2,385
|
|
$
|
143
|
|
$
|
12,464
|
|
Fair value
|
2,776
|
|
7,179
|
|
2,347
|
|
134
|
|
12,436
|
|
|||||
Average yield
(b)
|
2.87
|
%
|
2.32
|
%
|
3.09
|
%
|
4.46
|
%
|
2.61
|
%
|
|||||
Asset-backed securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
39
|
|
$
|
442
|
|
$
|
20,501
|
|
$
|
19,289
|
|
$
|
40,271
|
|
Fair value
|
40
|
|
449
|
|
20,421
|
|
19,194
|
|
40,104
|
|
|||||
Average yield
(b)
|
0.71
|
%
|
1.72
|
%
|
1.79
|
%
|
1.84
|
%
|
1.81
|
%
|
|||||
Total available-for-sale debt securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
11,755
|
|
$
|
29,328
|
|
$
|
57,612
|
|
$
|
136,696
|
|
$
|
235,391
|
|
Fair value
|
12,077
|
|
29,769
|
|
57,803
|
|
140,018
|
|
239,667
|
|
|||||
Average yield
(b)
|
2.85
|
%
|
2.00
|
%
|
1.63
|
%
|
3.61
|
%
|
2.89
|
%
|
|||||
Available-for-sale equity securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2,067
|
|
$
|
2,067
|
|
Fair value
|
—
|
|
—
|
|
—
|
|
2,087
|
|
2,087
|
|
|||||
Average yield
(b)
|
—
|
%
|
—
|
%
|
—
|
%
|
0.30
|
%
|
0.30
|
%
|
|||||
Total available-for-sale securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
11,755
|
|
$
|
29,328
|
|
$
|
57,612
|
|
$
|
138,763
|
|
$
|
237,458
|
|
Fair value
|
12,077
|
|
29,769
|
|
57,803
|
|
142,105
|
|
241,754
|
|
|||||
Average yield
(b)
|
2.85
|
%
|
2.00
|
%
|
1.63
|
%
|
3.56
|
%
|
2.87
|
%
|
|||||
Total held-to-maturity securities
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
51
|
|
$
|
—
|
|
$
|
931
|
|
$
|
48,091
|
|
$
|
49,073
|
|
Fair value
|
50
|
|
—
|
|
976
|
|
49,561
|
|
50,587
|
|
|||||
Average yield
(b)
|
4.42
|
%
|
—
|
%
|
5.01
|
%
|
3.98
|
%
|
4.00
|
%
|
(a)
|
U.S. government-sponsored enterprises were the only issuers whose securities exceeded
10%
of
JPMorgan Chase
’s total stockholders’ equity at
December 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 weighted-average life, which reflects anticipated future prepayments, is approximately
five years
for agency residential mortgage-backed securities,
two years
for agency residential collateralized mortgage obligations and
four years
for nonagency residential collateralized mortgage obligations.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
237
|
238
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
2015
|
|
|
2014
|
|
||||||||||||||||
December 31, (in millions)
|
Gross asset balance
|
Amounts netted on the Consolidated balance sheets
|
Net asset balance
|
|
|
Gross asset balance
|
Amounts netted on the Consolidated balance sheets
|
Net asset balance
|
|
||||||||||||
Securities purchased under resale agreements
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities purchased under resale agreements with an appropriate legal opinion
|
$
|
365,805
|
|
$
|
(156,258
|
)
|
$
|
209,547
|
|
|
|
$
|
347,142
|
|
$
|
(142,719
|
)
|
$
|
204,423
|
|
|
Securities purchased under resale agreements where an appropriate legal opinion has not been either sought or obtained
|
2,343
|
|
|
2,343
|
|
|
|
10,598
|
|
|
10,598
|
|
|
||||||||
Total securities purchased under resale agreements
|
$
|
368,148
|
|
$
|
(156,258
|
)
|
$
|
211,890
|
|
(a)
|
|
$
|
357,740
|
|
$
|
(142,719
|
)
|
$
|
215,021
|
|
(a)
|
Securities borrowed
|
$
|
98,721
|
|
NA
|
|
$
|
98,721
|
|
(b)(c)
|
|
$
|
110,435
|
|
NA
|
|
$
|
110,435
|
|
(b)(c)
|
(a)
|
At
December 31, 2015
and
2014
, included securities purchased under resale agreements of
$23.1 billion
and
$28.6 billion
, respectively, accounted for at fair value.
|
(b)
|
At
December 31, 2015
and
2014
, included securities borrowed of
$395 million
and
$992 million
, respectively, accounted for at fair value.
|
(c)
|
Included
$31.3 billion
and
$35.3 billion
at
December 31, 2015
and
2014
, respectively, of securities borrowed where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement.
|
|
2015
|
|
2014
|
||||||||||||||||||||||||
|
|
|
Amounts not nettable on the Consolidated balance sheets
(a)
|
|
|
|
|
Amounts not nettable on the Consolidated balance sheets
(a)
|
|
||||||||||||||||||
December 31, (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
|
$
|
209,547
|
|
|
$
|
(206,423
|
)
|
$
|
(351
|
)
|
$
|
2,773
|
|
|
$
|
204,423
|
|
|
$
|
(201,375
|
)
|
$
|
(246
|
)
|
$
|
2,802
|
|
Securities borrowed
|
$
|
67,453
|
|
|
$
|
(65,081
|
)
|
$
|
—
|
|
$
|
2,372
|
|
|
$
|
75,113
|
|
|
$
|
(72,730
|
)
|
$
|
—
|
|
$
|
2,383
|
|
(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.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
239
|
|
2015
|
|
2014
|
|
|||||||||||||||||
December 31, (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
|
$
|
277,415
|
|
$
|
(156,258
|
)
|
$
|
121,157
|
|
|
$
|
290,529
|
|
|
$
|
(142,719
|
)
|
$
|
147,810
|
|
|
Securities sold under repurchase agreements where an appropriate legal opinion has not been either sought or obtained
(a)
|
12,629
|
|
|
12,629
|
|
|
21,996
|
|
|
|
21,996
|
|
|
||||||||
Total securities sold under repurchase agreements
|
$
|
290,044
|
|
$
|
(156,258
|
)
|
$
|
133,786
|
|
(c)
|
$
|
312,525
|
|
|
$
|
(142,719
|
)
|
$
|
169,806
|
|
(c)
|
Securities loaned
(b)
|
$
|
22,556
|
|
NA
|
|
$
|
22,556
|
|
(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
$4.4 billion
and
$4.1 billion
at
December 31, 2015
and
2014
, respectively, accounted for at fair value, where the Firm is acting as lender. These amounts are presented within other liabilities in the Consolidated balance sheets.
|
(c)
|
At
December 31, 2015
and
2014
, included securities sold under repurchase agreements of
$3.5 billion
and
$3.0 billion
, respectively, accounted for at fair value.
|
(d)
|
There were no securities loaned accounted for at fair value at
December 31, 2015
and 2014, respectively.
|
(e)
|
Included
$45 million
and
$271 million
at
December 31, 2015
and
2014
, respectively, of securities loaned where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement.
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||
|
|
|
Amounts not nettable on the Consolidated balance sheets
(a)
|
|
|
|
|
Amounts not nettable on
the Consolidated balance sheets
(a)
|
|
|||||||||||||||||||
December 31, (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
|
$
|
121,157
|
|
|
$
|
(117,825
|
)
|
$
|
(1,007
|
)
|
$
|
2,325
|
|
|
$
|
147,810
|
|
|
$
|
(145,732
|
)
|
|
$
|
(497
|
)
|
$
|
1,581
|
|
Securities loaned
|
$
|
22,511
|
|
|
$
|
(22,245
|
)
|
$
|
—
|
|
$
|
266
|
|
|
$
|
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.
|
240
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
Gross liability balance
|
|||||
December 31, 2015 (in millions)
|
Securities sold under repurchase agreements
|
Securities loaned
|
||||
Mortgage-backed securities
|
$
|
12,790
|
|
$
|
—
|
|
U.S. Treasury and government agencies
|
154,377
|
|
5
|
|
||
Obligations of U.S. states and municipalities
|
1,316
|
|
—
|
|
||
Non-U.S. government debt
|
80,162
|
|
4,426
|
|
||
Corporate debt securities
|
21,286
|
|
78
|
|
||
Asset-backed securities
|
4,394
|
|
—
|
|
||
Equity securities
|
15,719
|
|
18,047
|
|
||
Total
|
$
|
290,044
|
|
$
|
22,556
|
|
|
Remaining contractual maturity of the agreements
|
||||||||||||||
|
Overnight and continuous
|
|
|
Greater than
90 days
|
|
||||||||||
December 31, 2015 (in millions)
|
Up to 30 days
|
30 – 90 days
|
Total
|
||||||||||||
Total securities sold under repurchase agreements
|
$
|
114,595
|
|
$
|
100,082
|
|
$
|
29,955
|
|
$
|
45,412
|
|
$
|
290,044
|
|
Total securities loaned
|
8,320
|
|
708
|
|
793
|
|
12,735
|
|
22,556
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
241
|
•
|
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
|
•
|
A charge-off is recognized when a loan is modified in a troubled debt restructuring (“TDR”) if the loan is determined to be collateral-dependent. A loan is considered to be collateral-dependent when repayment of the loan is expected to be provided solely by the underlying collateral, rather than by cash flows from the borrower’s operations, income or other resources.
|
•
|
Loans to borrowers who have experienced an event (e.g., bankruptcy) that suggests a loss is either known or highly certain are subject to accelerated charge-off standards. Residential real estate and auto loans are charged off when the loan becomes
60 days
past due, or sooner if the loan is determined to be collateral-
|
242
|
|
JPMorgan Chase & Co./2015 Annual Report
|
•
|
Auto loans are written down to net realizable value upon repossession of the automobile and after a redemption period (i.e., the period during which a borrower may cure the loan) has passed.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
243
|
244
|
|
JPMorgan Chase & Co./2015 Annual Report
|
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)
|
Includes loans to: individuals; SPEs; holding companies; and private education and civic organizations. For more information on exposures to SPEs, see Note 16.
|
December 31, 2015
|
Consumer, excluding credit card
|
Credit card
(a)
|
Wholesale
|
Total
|
|
|||||||||||||||
(in millions)
|
|
|||||||||||||||||||
Retained
|
|
$
|
344,355
|
|
|
|
$
|
131,387
|
|
|
|
$
|
357,050
|
|
|
|
$
|
832,792
|
|
(b)
|
Held-for-sale
|
|
466
|
|
|
|
76
|
|
|
|
1,104
|
|
|
|
1,646
|
|
|
||||
At fair value
|
|
—
|
|
|
|
—
|
|
|
|
2,861
|
|
|
|
2,861
|
|
|
||||
Total
|
|
$
|
344,821
|
|
|
|
$
|
131,463
|
|
|
|
$
|
361,015
|
|
|
|
$
|
837,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
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. These amounts were not material as of
December 31, 2015
and
2014
.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
245
|
|
|
|
2015
|
|||||||||||||||||
Year ended December 31,
(in millions) |
|
Consumer, excluding
credit card
|
Credit card
|
Wholesale
|
Total
|
|||||||||||||||
Purchases
|
|
|
$
|
5,279
|
|
(a)(b)
|
|
$
|
—
|
|
|
|
$
|
2,154
|
|
|
|
$
|
7,433
|
|
Sales
|
|
|
5,099
|
|
|
|
—
|
|
|
|
9,188
|
|
|
|
14,287
|
|
||||
Retained loans reclassified to held-for-sale
|
|
|
1,514
|
|
|
|
79
|
|
|
|
642
|
|
|
|
2,235
|
|
|
|
|
2014
|
|||||||||||||||||
Year ended December 31,
(in millions) |
|
Consumer, excluding
credit card
|
Credit card
|
Wholesale
|
Total
|
|||||||||||||||
Purchases
|
|
|
$
|
7,434
|
|
(a)(b)
|
|
$
|
—
|
|
|
|
$
|
885
|
|
|
|
$
|
8,319
|
|
Sales
|
|
|
6,655
|
|
|
|
—
|
|
(c)
|
|
7,381
|
|
|
|
14,036
|
|
||||
Retained loans reclassified to held-for-sale
|
|
|
1,190
|
|
|
|
3,039
|
|
|
|
581
|
|
|
|
4,810
|
|
|
|
|
2013
|
|||||||||||||||||
Year ended December 31,
(in millions) |
|
Consumer, excluding
credit card
|
Credit card
|
Wholesale
|
Total
|
|||||||||||||||
Purchases
|
|
|
$
|
7,616
|
|
(a)(b)
|
|
$
|
328
|
|
|
|
$
|
697
|
|
|
|
$
|
8,641
|
|
Sales
|
|
|
4,845
|
|
|
|
—
|
|
|
|
4,232
|
|
|
|
9,077
|
|
||||
Retained loans reclassified to held-for-sale
|
|
|
1,261
|
|
|
|
309
|
|
|
|
5,641
|
|
|
|
7,211
|
|
(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)
|
Excludes purchases of retained loans sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards. Such purchases were
$50.3 billion
,
$15.1 billion
and
$5.7 billion
for the
years ended
December 31, 2015
,
2014
and
2013
, respectively.
|
(c)
|
Prior period amounts have been revised to conform with current period presentation.
|
(a)
|
Excludes sales related to loans accounted for at fair value.
|
246
|
|
JPMorgan Chase & Co./2015 Annual Report
|
•
|
For residential real estate loans, including both non-PCI and PCI portfolios, the current estimated LTV ratio, or the combined LTV ratio in the case of junior lien loans, is an indicator of the potential loss severity in the event of default. Additionally, LTV or combined LTV can provide
|
•
|
For scored auto, scored business banking and student loans, geographic distribution is an indicator of the credit performance of the portfolio. Similar to residential real estate loans, geographic distribution provides insights into the portfolio performance based on regional economic activity and events.
|
•
|
Risk-rated business banking and auto loans are similar to wholesale loans in that the primary credit quality indicators are the risk rating that is assigned to the loan and whether the loans are considered to be criticized and/or nonaccrual. Risk ratings are reviewed on a regular and ongoing basis by Credit Risk Management and are adjusted as necessary for updated information about borrowers’ ability to fulfill their obligations. For further information about risk-rated wholesale loan credit quality indicators, see
pages 259–260
of this Note.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
247
|
Residential real estate – excluding PCI loans
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Home equity
(i)
|
|
Mortgages
|
|
|
|||||||||||||||||||||||||||||
December 31,
(in millions, except ratios)
|
Senior lien
|
|
Junior lien
|
|
Prime, including option ARMs
(i)
|
|
Subprime
|
|
Total residential real estate – excluding PCI
|
|||||||||||||||||||||||||
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|||||||||||||||||||||
Loan delinquency
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Current
|
$
|
14,278
|
|
$
|
15,730
|
|
|
$
|
30,021
|
|
$
|
35,575
|
|
|
$
|
153,323
|
|
$
|
93,951
|
|
|
$
|
3,140
|
|
$
|
4,296
|
|
|
$
|
200,762
|
|
$
|
149,552
|
|
30–149 days past due
|
238
|
|
275
|
|
|
470
|
|
533
|
|
|
3,666
|
|
4,091
|
|
|
376
|
|
489
|
|
|
4,750
|
|
5,388
|
|
||||||||||
150 or more days past due
|
332
|
|
362
|
|
|
220
|
|
267
|
|
|
5,560
|
|
6,879
|
|
|
174
|
|
271
|
|
|
6,286
|
|
7,779
|
|
||||||||||
Total retained loans
|
$
|
14,848
|
|
$
|
16,367
|
|
|
$
|
30,711
|
|
$
|
36,375
|
|
|
$
|
162,549
|
|
$
|
104,921
|
|
|
$
|
3,690
|
|
$
|
5,056
|
|
|
$
|
211,798
|
|
$
|
162,719
|
|
% of 30+ days past due to total retained loans
(b)
|
3.84
|
%
|
3.89
|
%
|
|
2.25
|
%
|
2.20
|
%
|
|
0.71
|
%
|
1.42
|
%
|
|
14.91
|
%
|
15.03
|
%
|
|
1.40
|
%
|
2.27
|
%
|
||||||||||
90 or more days past due and government guarantee
d
(c)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
6,056
|
|
7,544
|
|
|
—
|
|
—
|
|
|
6,056
|
|
7,544
|
|
||||||||||
Nonaccrual loans
|
867
|
|
938
|
|
|
1,324
|
|
1,590
|
|
|
1,752
|
|
2,190
|
|
|
751
|
|
1,036
|
|
|
4,694
|
|
5,754
|
|
||||||||||
Current estimated LTV ratios
(d)(e)(f)(g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Greater than 125% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
$
|
42
|
|
$
|
37
|
|
|
$
|
123
|
|
$
|
252
|
|
|
$
|
56
|
|
$
|
97
|
|
|
$
|
2
|
|
$
|
4
|
|
|
$
|
223
|
|
$
|
390
|
|
Less than 660
|
3
|
|
6
|
|
|
29
|
|
65
|
|
|
65
|
|
72
|
|
|
12
|
|
28
|
|
|
109
|
|
171
|
|
||||||||||
101% to 125% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
50
|
|
83
|
|
|
1,294
|
|
2,105
|
|
|
249
|
|
478
|
|
|
25
|
|
76
|
|
|
1,618
|
|
2,742
|
|
||||||||||
Less than 660
|
23
|
|
40
|
|
|
411
|
|
651
|
|
|
190
|
|
282
|
|
|
101
|
|
207
|
|
|
725
|
|
1,180
|
|
||||||||||
80% to 100% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
311
|
|
466
|
|
|
4,226
|
|
5,849
|
|
|
3,013
|
|
2,686
|
|
|
146
|
|
382
|
|
|
7,696
|
|
9,383
|
|
||||||||||
Less than 660
|
142
|
|
206
|
|
|
1,267
|
|
1,647
|
|
|
597
|
|
838
|
|
|
399
|
|
703
|
|
|
2,405
|
|
3,394
|
|
||||||||||
Less than 80% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
11,721
|
|
12,588
|
|
|
17,927
|
|
19,435
|
|
|
140,942
|
|
82,350
|
|
|
1,299
|
|
1,624
|
|
|
171,889
|
|
115,997
|
|
||||||||||
Less than 660
|
1,942
|
|
2,184
|
|
|
2,992
|
|
3,326
|
|
|
5,280
|
|
4,872
|
|
|
1,517
|
|
1,795
|
|
|
11,731
|
|
12,177
|
|
||||||||||
No FICO/LTV available
|
614
|
|
757
|
|
|
2,442
|
|
3,045
|
|
|
1,469
|
|
1,136
|
|
|
189
|
|
237
|
|
|
4,714
|
|
5,175
|
|
||||||||||
U.S. government-guaranteed
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
10,688
|
|
12,110
|
|
|
—
|
|
—
|
|
|
10,688
|
|
12,110
|
|
||||||||||
Total retained loans
|
$
|
14,848
|
|
$
|
16,367
|
|
|
$
|
30,711
|
|
$
|
36,375
|
|
|
$
|
162,549
|
|
$
|
104,921
|
|
|
$
|
3,690
|
|
$
|
5,056
|
|
|
$
|
211,798
|
|
$
|
162,719
|
|
Geographic region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
California
|
$
|
2,072
|
|
$
|
2,232
|
|
|
$
|
6,873
|
|
$
|
8,144
|
|
|
$
|
46,745
|
|
$
|
28,133
|
|
|
$
|
518
|
|
$
|
718
|
|
|
$
|
56,208
|
|
$
|
39,227
|
|
New York
|
2,583
|
|
2,805
|
|
|
6,564
|
|
7,685
|
|
|
20,941
|
|
16,550
|
|
|
521
|
|
677
|
|
|
30,609
|
|
27,717
|
|
||||||||||
Illinois
|
1,189
|
|
1,306
|
|
|
2,231
|
|
2,605
|
|
|
11,379
|
|
6,654
|
|
|
145
|
|
207
|
|
|
14,944
|
|
10,772
|
|
||||||||||
Texas
|
1,581
|
|
1,845
|
|
|
951
|
|
1,087
|
|
|
8,986
|
|
4,935
|
|
|
142
|
|
177
|
|
|
11,660
|
|
8,044
|
|
||||||||||
Florida
|
797
|
|
861
|
|
|
1,612
|
|
1,923
|
|
|
6,763
|
|
5,106
|
|
|
414
|
|
632
|
|
|
9,586
|
|
8,522
|
|
||||||||||
New Jersey
|
647
|
|
654
|
|
|
1,943
|
|
2,233
|
|
|
5,395
|
|
3,361
|
|
|
172
|
|
227
|
|
|
8,157
|
|
6,475
|
|
||||||||||
Washington
|
442
|
|
506
|
|
|
1,009
|
|
1,216
|
|
|
4,097
|
|
2,410
|
|
|
79
|
|
109
|
|
|
5,627
|
|
4,241
|
|
||||||||||
Arizona
|
815
|
|
927
|
|
|
1,328
|
|
1,595
|
|
|
3,081
|
|
1,805
|
|
|
74
|
|
112
|
|
|
5,298
|
|
4,439
|
|
||||||||||
Michigan
|
650
|
|
736
|
|
|
700
|
|
848
|
|
|
1,866
|
|
1,203
|
|
|
79
|
|
121
|
|
|
3,295
|
|
2,908
|
|
||||||||||
Ohio
|
1,014
|
|
1,150
|
|
|
638
|
|
778
|
|
|
1,166
|
|
615
|
|
|
81
|
|
112
|
|
|
2,899
|
|
2,655
|
|
||||||||||
All other
(h)
|
3,058
|
|
3,345
|
|
|
6,862
|
|
8,261
|
|
|
52,130
|
|
34,149
|
|
|
1,465
|
|
1,964
|
|
|
63,515
|
|
47,719
|
|
||||||||||
Total retained loans
|
$
|
14,848
|
|
$
|
16,367
|
|
|
$
|
30,711
|
|
$
|
36,375
|
|
|
$
|
162,549
|
|
$
|
104,921
|
|
|
$
|
3,690
|
|
$
|
5,056
|
|
|
$
|
211,798
|
|
$
|
162,719
|
|
(a)
|
Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included
$2.6 billion
and
$2.6 billion
;
30
–
149
days past due included
$3.2 billion
and
$3.5 billion
; and
150
or more days past due included
$4.9 billion
and
$6.0 billion
at
December 31, 2015
and
2014
, respectively.
|
(b)
|
At
December 31, 2015
and
2014
, Prime, including option ARMs loans excluded mortgage loans insured by U.S. government agencies of
$8.1 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, were excluded from nonaccrual loans as the loans are guaranteed by U.S government agencies. Typically the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing guidelines. At
December 31, 2015
and
2014
, these balances included
$3.4 billion
and
$4.2 billion
, respectively, of loans that are no longer accruing interest based on the agreed-upon servicing guidelines. For the remaining balance, interest is being accrued at the guaranteed reimbursement rate. There were no loans not guaranteed by U.S. government agencies that are 90 or more days past due and still accruing at December 31, 2015 and 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. Effective December 31, 2015, the current estimated LTV ratios reflect updates to the nationally recognized home price index valuation estimates incorporated into the Firm’s home valuation models. The prior period ratios have been revised to conform with these updates in the home price index.
|
(e)
|
Junior lien represents combined LTV, which considers all available lien positions, as well as unused lines, related to the property. All other products are presented without consideration of subordinate liens on the property.
|
(f)
|
Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
|
(g)
|
The current period current estimated LTV ratios disclosures have been updated to reflect where either the FICO score or estimated property value is unavailable. The prior period amounts have been revised to conform with the current presentation.
|
(h)
|
At
December 31, 2015
and
2014
, included mortgage loans insured by U.S. government agencies of
$10.7 billion
and
$12.1 billion
, respectively.
|
(i)
|
Includes residential real estate loans to private banking clients in AM, for which the primary credit quality indicators are the borrower’s financial position and LTV.
|
248
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
|
Total loans
|
|
Total 30+ day delinquency rate
|
|||||||
December 31,
|
|
2015
|
2014
|
|
2015
|
2014
|
|||||
(in millions, except ratios)
|
|
|
|||||||||
HELOCs:
(a)
|
|
|
|
|
|
|
|||||
Within the revolving period
(b)
|
|
$
|
17,050
|
|
25,252
|
|
|
1.57
|
%
|
1.75
|
%
|
Beyond the revolving period
|
|
11,252
|
|
7,979
|
|
|
3.10
|
|
3.16
|
|
|
HELOANs
|
|
2,409
|
|
3,144
|
|
|
3.03
|
|
3.34
|
|
|
Total
|
|
$
|
30,711
|
|
36,375
|
|
|
2.25
|
%
|
2.20
|
%
|
|
Home equity
|
|
Mortgages
|
|
Total residential
real estate
– excluding PCI
|
|||||||||||||||||||||||||||||
December 31,
(in millions)
|
Senior lien
|
|
Junior lien
|
|
Prime, including
option ARMs
|
|
Subprime
|
|
||||||||||||||||||||||||||
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|||||||||||||||||||||
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
With an allowance
|
$
|
557
|
|
$
|
552
|
|
|
$
|
736
|
|
$
|
722
|
|
|
$
|
3,850
|
|
$
|
4,949
|
|
|
$
|
1,393
|
|
$
|
2,239
|
|
|
$
|
6,536
|
|
$
|
8,462
|
|
Without an allowance
(a)
|
491
|
|
549
|
|
|
574
|
|
582
|
|
|
976
|
|
1,196
|
|
|
471
|
|
639
|
|
|
2,512
|
|
2,966
|
|
||||||||||
Total impaired loans
(b)(c)
|
$
|
1,048
|
|
$
|
1,101
|
|
|
$
|
1,310
|
|
$
|
1,304
|
|
|
$
|
4,826
|
|
$
|
6,145
|
|
|
$
|
1,864
|
|
$
|
2,878
|
|
|
$
|
9,048
|
|
$
|
11,428
|
|
Allowance for loan losses related to impaired loans
|
$
|
53
|
|
$
|
84
|
|
|
$
|
85
|
|
$
|
147
|
|
|
$
|
93
|
|
$
|
127
|
|
|
$
|
15
|
|
$
|
64
|
|
|
$
|
246
|
|
$
|
422
|
|
Unpaid principal balance of impaired loans
(d)
|
1,370
|
|
1,451
|
|
|
2,590
|
|
2,603
|
|
|
6,225
|
|
7,813
|
|
|
2,857
|
|
4,200
|
|
|
13,042
|
|
16,067
|
|
||||||||||
Impaired loans on nonaccrual status
(e)
|
581
|
|
628
|
|
|
639
|
|
632
|
|
|
1,287
|
|
1,559
|
|
|
670
|
|
931
|
|
|
3,177
|
|
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
December 31, 2015
, Chapter 7 residential real estate loans included approximately
17%
of senior lien home equity,
9%
of junior lien home equity,
18%
of prime mortgages, including option ARMs, and
15%
of subprime mortgages that were
30 days
or more past due.
|
(b)
|
At
December 31, 2015
and
2014
,
$3.8 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
December 31, 2015
and
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
December 31, 2015
and
2014
, nonaccrual loans included
$2.5 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 on
pages 242–244
of this Note.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
249
|
Year ended December 31,
|
Average impaired loans
|
|
Interest income on
impaired loans
(a)
|
|
Interest income on impaired
loans on a cash basis
(a)
|
||||||||||||||||||||||||
(in millions)
|
2015
|
2014
|
2013
|
|
2015
|
2014
|
2013
|
|
2015
|
2014
|
2013
|
||||||||||||||||||
Home equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Senior lien
|
$
|
1,077
|
|
$
|
1,122
|
|
$
|
1,151
|
|
|
$
|
51
|
|
$
|
55
|
|
$
|
59
|
|
|
$
|
35
|
|
$
|
37
|
|
$
|
40
|
|
Junior lien
|
1,292
|
|
1,313
|
|
1,297
|
|
|
77
|
|
82
|
|
82
|
|
|
50
|
|
53
|
|
55
|
|
|||||||||
Mortgages
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Prime, including option ARMs
|
5,397
|
|
6,730
|
|
7,214
|
|
|
217
|
|
262
|
|
280
|
|
|
46
|
|
54
|
|
59
|
|
|||||||||
Subprime
|
2,300
|
|
3,444
|
|
3,798
|
|
|
131
|
|
182
|
|
200
|
|
|
41
|
|
51
|
|
55
|
|
|||||||||
Total residential real estate – excluding PCI
|
$
|
10,066
|
|
$
|
12,609
|
|
$
|
13,460
|
|
|
$
|
476
|
|
$
|
581
|
|
$
|
621
|
|
|
$
|
172
|
|
$
|
195
|
|
$
|
209
|
|
(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.
|
Year ended December 31,
(in millions) |
2015
|
2014
|
2013
|
||||||
Home equity:
|
|
|
|
||||||
Senior lien
|
$
|
108
|
|
$
|
110
|
|
$
|
210
|
|
Junior lien
|
293
|
|
211
|
|
388
|
|
|||
Mortgages:
|
|
|
|
||||||
Prime, including option ARMs
|
209
|
|
287
|
|
770
|
|
|||
Subprime
|
58
|
|
124
|
|
319
|
|
|||
Total residential real estate – excluding PCI
|
$
|
668
|
|
$
|
732
|
|
$
|
1,687
|
|
250
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Year ended Dec. 31,
|
Home equity
|
|
Mortgages
|
|
Total residential real estate
– excluding PCI
|
|||||||||||||||||||||||||||||
Senior lien
|
|
Junior lien
|
|
Prime, including
option ARMs
|
|
Subprime
|
|
|||||||||||||||||||||||||||
2015
|
2014
|
2013
|
|
2015
|
2014
|
2013
|
|
2015
|
2014
|
2013
|
|
2015
|
2014
|
2013
|
|
2015
|
2014
|
2013
|
||||||||||||||||
Number of loans approved for a trial modification
|
1,345
|
|
939
|
|
1,719
|
|
|
2,588
|
|
626
|
|
884
|
|
|
1,103
|
|
1,052
|
|
2,846
|
|
|
1,608
|
|
2,056
|
|
4,233
|
|
|
6,644
|
|
4,673
|
|
9,682
|
|
Number of loans permanently modified
|
1,096
|
|
1,171
|
|
1,765
|
|
|
3,200
|
|
2,813
|
|
5,040
|
|
|
1,495
|
|
2,507
|
|
4,356
|
|
|
1,650
|
|
3,141
|
|
5,364
|
|
|
7,441
|
|
9,632
|
|
16,525
|
|
Concession granted:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest rate reduction
|
75
|
%
|
53
|
%
|
70
|
%
|
|
63
|
%
|
84
|
%
|
88
|
%
|
|
72
|
%
|
43
|
%
|
73
|
%
|
|
71
|
%
|
47
|
%
|
72
|
%
|
|
68
|
%
|
58
|
%
|
77
|
%
|
Term or payment extension
|
86
|
|
67
|
|
76
|
|
|
90
|
|
83
|
|
80
|
|
|
80
|
|
51
|
|
73
|
|
|
82
|
|
53
|
|
56
|
|
|
86
|
|
63
|
|
70
|
|
Principal and/or interest deferred
|
32
|
|
16
|
|
12
|
|
|
19
|
|
23
|
|
24
|
|
|
34
|
|
19
|
|
30
|
|
|
21
|
|
12
|
|
13
|
|
|
24
|
|
18
|
|
21
|
|
Principal forgiveness
|
4
|
|
36
|
|
38
|
|
|
8
|
|
22
|
|
32
|
|
|
24
|
|
51
|
|
38
|
|
|
31
|
|
53
|
|
48
|
|
|
16
|
|
41
|
|
39
|
|
Other
(b)
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
9
|
|
10
|
|
23
|
|
|
13
|
|
10
|
|
14
|
|
|
5
|
|
6
|
|
11
|
|
(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.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
251
|
Year ended
December 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
|
2013
|
|
2015
|
2014
|
2013
|
|
2015
|
2014
|
2013
|
|
2015
|
2014
|
2013
|
|
2015
|
2014
|
2013
|
|||||||||||||||||||||||||||||||
Weighted-average interest rate of loans with interest rate reductions – before TDR
|
5.69
|
%
|
6.38
|
%
|
6.35
|
%
|
|
4.93
|
%
|
4.81
|
%
|
5.05
|
%
|
|
5.03
|
%
|
4.82
|
%
|
5.28
|
%
|
|
6.67
|
%
|
7.16
|
%
|
7.33
|
%
|
|
5.51
|
%
|
5.61
|
%
|
5.88
|
%
|
|||||||||||||||
Weighted-average interest rate of loans with interest rate reductions – after TDR
|
2.70
|
|
3.03
|
|
3.23
|
|
|
2.17
|
|
2.00
|
|
2.14
|
|
|
2.55
|
|
2.69
|
|
2.77
|
|
|
3.15
|
|
3.37
|
|
3.52
|
|
|
2.64
|
|
2.78
|
|
2.92
|
|
|||||||||||||||
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR
|
17
|
|
17
|
|
19
|
|
|
18
|
|
19
|
|
20
|
|
|
25
|
|
25
|
|
25
|
|
|
24
|
|
24
|
|
24
|
|
|
22
|
|
23
|
|
23
|
|
|||||||||||||||
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR
|
32
|
|
30
|
|
31
|
|
|
36
|
|
35
|
|
34
|
|
|
37
|
|
37
|
|
37
|
|
|
36
|
|
36
|
|
35
|
|
|
36
|
|
36
|
|
36
|
|
|||||||||||||||
Charge-offs recognized upon permanent modification
|
$
|
1
|
|
$
|
2
|
|
$
|
7
|
|
|
$
|
3
|
|
$
|
25
|
|
$
|
70
|
|
|
$
|
9
|
|
$
|
9
|
|
$
|
16
|
|
|
$
|
2
|
|
$
|
3
|
|
$
|
5
|
|
|
$
|
15
|
|
$
|
39
|
|
$
|
98
|
|
Principal deferred
|
13
|
|
5
|
|
7
|
|
|
14
|
|
11
|
|
24
|
|
|
41
|
|
39
|
|
129
|
|
|
17
|
|
19
|
|
43
|
|
|
85
|
|
74
|
|
203
|
|
|||||||||||||||
Principal forgiven
|
2
|
|
14
|
|
30
|
|
|
4
|
|
21
|
|
51
|
|
|
34
|
|
83
|
|
206
|
|
|
32
|
|
89
|
|
218
|
|
|
72
|
|
207
|
|
505
|
|
|||||||||||||||
Balance of loans that redefaulted within one year of permanent modification
(a)
|
$
|
14
|
|
$
|
19
|
|
$
|
26
|
|
|
$
|
7
|
|
$
|
10
|
|
$
|
20
|
|
|
$
|
75
|
|
$
|
121
|
|
$
|
164
|
|
|
$
|
58
|
|
$
|
93
|
|
$
|
106
|
|
|
$
|
154
|
|
$
|
243
|
|
$
|
316
|
|
(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.
|
252
|
|
JPMorgan Chase & Co./2015 Annual Report
|
December 31,
(in millions, except ratios)
|
Auto
|
|
Business banking
|
|
Student and other
|
|
Total other consumer
|
|
|||||||||||||||||||||||
2015
|
|
2014
|
|
2015
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|||||||||||||||||
Loan delinquency
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Current
|
$
|
59,442
|
|
|
$
|
53,866
|
|
|
$
|
20,887
|
|
$
|
19,710
|
|
|
$
|
9,405
|
|
|
$
|
10,080
|
|
|
$
|
89,734
|
|
|
$
|
83,656
|
|
|
30–119 days past due
|
804
|
|
|
663
|
|
|
215
|
|
208
|
|
|
445
|
|
|
576
|
|
|
1,464
|
|
|
1,447
|
|
|
||||||||
120 or more days past due
|
9
|
|
|
7
|
|
|
106
|
|
140
|
|
|
246
|
|
|
314
|
|
|
361
|
|
|
461
|
|
|
||||||||
Total retained loans
|
$
|
60,255
|
|
|
$
|
54,536
|
|
|
$
|
21,208
|
|
$
|
20,058
|
|
|
$
|
10,096
|
|
|
$
|
10,970
|
|
|
$
|
91,559
|
|
|
$
|
85,564
|
|
|
% of 30+ days past due to total retained loans
|
1.35
|
%
|
|
1.23
|
%
|
|
1.51
|
%
|
1.73
|
%
|
|
1.63
|
%
|
(d)
|
2.15
|
%
|
(d)
|
1.42
|
%
|
(d)
|
1.47
|
%
|
(d)
|
||||||||
90 or more days past due and still accruing
(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
290
|
|
|
$
|
367
|
|
|
$
|
290
|
|
|
$
|
367
|
|
|
Nonaccrual loans
|
116
|
|
|
115
|
|
|
263
|
|
279
|
|
|
242
|
|
|
270
|
|
|
621
|
|
|
664
|
|
|
||||||||
Geographic region
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
California
|
$
|
7,186
|
|
|
$
|
6,294
|
|
|
$
|
3,530
|
|
$
|
3,008
|
|
|
$
|
1,051
|
|
|
$
|
1,143
|
|
|
$
|
11,767
|
|
|
$
|
10,445
|
|
|
New York
|
3,874
|
|
|
3,662
|
|
|
3,359
|
|
3,187
|
|
|
1,224
|
|
|
1,259
|
|
|
8,457
|
|
|
8,108
|
|
|
||||||||
Illinois
|
3,678
|
|
|
3,175
|
|
|
1,459
|
|
1,373
|
|
|
679
|
|
|
729
|
|
|
5,816
|
|
|
5,277
|
|
|
||||||||
Texas
|
6,457
|
|
|
5,608
|
|
|
2,622
|
|
2,626
|
|
|
839
|
|
|
868
|
|
|
9,918
|
|
|
9,102
|
|
|
||||||||
Florida
|
2,843
|
|
|
2,301
|
|
|
941
|
|
827
|
|
|
516
|
|
|
521
|
|
|
4,300
|
|
|
3,649
|
|
|
||||||||
New Jersey
|
1,998
|
|
|
1,945
|
|
|
500
|
|
451
|
|
|
366
|
|
|
378
|
|
|
2,864
|
|
|
2,774
|
|
|
||||||||
Washington
|
1,135
|
|
|
1,019
|
|
|
264
|
|
258
|
|
|
212
|
|
|
235
|
|
|
1,611
|
|
|
1,512
|
|
|
||||||||
Arizona
|
2,033
|
|
|
2,003
|
|
|
1,205
|
|
1,083
|
|
|
236
|
|
|
239
|
|
|
3,474
|
|
|
3,325
|
|
|
||||||||
Michigan
|
1,550
|
|
|
1,633
|
|
|
1,361
|
|
1,375
|
|
|
415
|
|
|
466
|
|
|
3,326
|
|
|
3,474
|
|
|
||||||||
Ohio
|
2,340
|
|
|
2,157
|
|
|
1,363
|
|
1,354
|
|
|
559
|
|
|
629
|
|
|
4,262
|
|
|
4,140
|
|
|
||||||||
All other
|
27,161
|
|
|
24,739
|
|
|
4,604
|
|
4,516
|
|
|
3,999
|
|
|
4,503
|
|
|
35,764
|
|
|
33,758
|
|
|
||||||||
Total retained loans
|
$
|
60,255
|
|
|
$
|
54,536
|
|
|
$
|
21,208
|
|
$
|
20,058
|
|
|
$
|
10,096
|
|
|
$
|
10,970
|
|
|
$
|
91,559
|
|
|
$
|
85,564
|
|
|
Loans by risk ratings
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Noncriticized
|
$
|
11,277
|
|
|
$
|
9,822
|
|
|
$
|
15,505
|
|
$
|
14,619
|
|
|
NA
|
|
|
NA
|
|
|
$
|
26,782
|
|
|
$
|
24,441
|
|
|
||
Criticized performing
|
76
|
|
|
35
|
|
|
815
|
|
708
|
|
|
NA
|
|
|
NA
|
|
|
891
|
|
|
743
|
|
|
||||||||
Criticized nonaccrual
|
—
|
|
|
—
|
|
|
210
|
|
213
|
|
|
NA
|
|
|
NA
|
|
|
210
|
|
|
213
|
|
|
(a)
|
Student loan delinquency classifications included loans
insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) as follows: current included
$3.8 billion
and
$4.3 billion
;
30
-
119 days
past due included
$299 million
and
$364 million
; and
120
or more days past due included
$227 million
and
$290 million
at
December 31, 2015
and
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)
|
December 31, 2015
and
2014
, excluded loans
30 days
or more past due and still accruing, which are insured by U.S. government agencies under the FFELP, of
$526 million
and
$654 million
, respectively. These amounts were excluded as reimbursement of insured amounts is proceeding normally.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
253
|
December 31, (in millions)
|
2015
|
2014
|
||||
Impaired loans
|
|
|
||||
With an allowance
|
$
|
527
|
|
$
|
557
|
|
Without an allowance
(a)
|
31
|
|
35
|
|
||
Total impaired loans
(b)(c)
|
$
|
558
|
|
$
|
592
|
|
Allowance for loan losses related to impaired loans
|
$
|
118
|
|
$
|
117
|
|
Unpaid principal balance of impaired loans
(d)
|
668
|
|
719
|
|
||
Impaired loans on nonaccrual status
|
449
|
|
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
$566 million
,
$599 million
and
$648 million
for the years ended
December 31, 2015
,
2014
and
2013
, respectively. The related interest income on impaired loans, including those on a cash basis, was not material for the years ended
December 31, 2015
,
2014
and
2013
.
|
(d)
|
Represents the contractual amount of principal owed at
December 31, 2015
and
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.
|
December 31, (in millions)
|
2015
|
2014
|
||||
Loans modified in TDRs
(a)(b)
|
$
|
384
|
|
$
|
442
|
|
TDRs on nonaccrual status
|
275
|
|
306
|
|
(a)
|
The impact of these modifications was not material to the Firm for the years ended
December 31, 2015
and
2014
.
|
(b)
|
Additional commitments to lend to borrowers whose loans have been modified in TDRs as of
December 31, 2015
and
2014
were immaterial.
|
254
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
255
|
December 31,
(in millions, except ratios)
|
Home equity
|
|
Prime mortgage
|
|
Subprime mortgage
|
|
Option ARMs
|
|
Total PCI
|
|||||||||||||||||||||||||
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|||||||||||||||||||||
Carrying value
(a)
|
$
|
14,989
|
|
$
|
17,095
|
|
|
$
|
8,893
|
|
$
|
10,220
|
|
|
$
|
3,263
|
|
$
|
3,673
|
|
|
$
|
13,853
|
|
$
|
15,708
|
|
|
$
|
40,998
|
|
$
|
46,696
|
|
Related allowance for loan losses
(b)
|
1,708
|
|
1,758
|
|
|
985
|
|
1,193
|
|
|
—
|
|
180
|
|
|
49
|
|
194
|
|
|
2,742
|
|
3,325
|
|
||||||||||
Loan delinquency (based on unpaid principal balance)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Current
|
$
|
14,387
|
|
$
|
16,295
|
|
|
$
|
7,894
|
|
$
|
8,912
|
|
|
$
|
3,232
|
|
$
|
3,565
|
|
|
$
|
12,370
|
|
$
|
13,814
|
|
|
$
|
37,883
|
|
$
|
42,586
|
|
30–149 days past due
|
322
|
|
445
|
|
|
424
|
|
500
|
|
|
439
|
|
536
|
|
|
711
|
|
858
|
|
|
1,896
|
|
2,339
|
|
||||||||||
150 or more days past due
|
633
|
|
1,000
|
|
|
601
|
|
837
|
|
|
380
|
|
551
|
|
|
1,272
|
|
1,824
|
|
|
2,886
|
|
4,212
|
|
||||||||||
Total loans
|
$
|
15,342
|
|
$
|
17,740
|
|
|
$
|
8,919
|
|
$
|
10,249
|
|
|
$
|
4,051
|
|
$
|
4,652
|
|
|
$
|
14,353
|
|
$
|
16,496
|
|
|
$
|
42,665
|
|
$
|
49,137
|
|
% of 30+ days past due to total loans
|
6.22
|
%
|
8.15
|
%
|
|
11.49
|
%
|
13.05
|
%
|
|
20.22
|
%
|
23.37
|
%
|
|
13.82
|
%
|
16.26
|
%
|
|
11.21
|
%
|
13.33
|
%
|
||||||||||
Current estimated LTV ratios (based on unpaid principal balance)
(c)(d)(e)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Greater than 125% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
$
|
153
|
|
$
|
301
|
|
|
$
|
10
|
|
$
|
22
|
|
|
$
|
10
|
|
$
|
22
|
|
|
$
|
19
|
|
$
|
50
|
|
|
$
|
192
|
|
$
|
395
|
|
Less than 660
|
80
|
|
159
|
|
|
28
|
|
52
|
|
|
55
|
|
106
|
|
|
36
|
|
84
|
|
|
199
|
|
401
|
|
||||||||||
101% to 125% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
942
|
|
1,448
|
|
|
120
|
|
268
|
|
|
77
|
|
144
|
|
|
166
|
|
330
|
|
|
1,305
|
|
2,190
|
|
||||||||||
Less than 660
|
444
|
|
728
|
|
|
152
|
|
284
|
|
|
220
|
|
390
|
|
|
239
|
|
448
|
|
|
1,055
|
|
1,850
|
|
||||||||||
80% to 100% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
2,709
|
|
3,591
|
|
|
816
|
|
1,405
|
|
|
331
|
|
451
|
|
|
977
|
|
1,695
|
|
|
4,833
|
|
7,142
|
|
||||||||||
Less than 660
|
1,136
|
|
1,485
|
|
|
614
|
|
969
|
|
|
643
|
|
911
|
|
|
1,050
|
|
1,610
|
|
|
3,443
|
|
4,975
|
|
||||||||||
Lower than 80% and refreshed FICO scores:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equal to or greater than 660
|
6,724
|
|
6,626
|
|
|
4,243
|
|
4,211
|
|
|
863
|
|
787
|
|
|
7,073
|
|
7,053
|
|
|
18,903
|
|
18,677
|
|
||||||||||
Less than 660
|
2,265
|
|
2,308
|
|
|
2,438
|
|
2,427
|
|
|
1,642
|
|
1,585
|
|
|
4,065
|
|
4,291
|
|
|
10,410
|
|
10,611
|
|
||||||||||
No FICO/LTV available
|
889
|
|
1,094
|
|
|
498
|
|
611
|
|
|
210
|
|
256
|
|
|
728
|
|
935
|
|
|
2,325
|
|
2,896
|
|
||||||||||
Total unpaid principal balance
|
$
|
15,342
|
|
$
|
17,740
|
|
|
$
|
8,919
|
|
$
|
10,249
|
|
|
$
|
4,051
|
|
$
|
4,652
|
|
|
$
|
14,353
|
|
$
|
16,496
|
|
|
$
|
42,665
|
|
$
|
49,137
|
|
Geographic region (based on unpaid principal balance)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
California
|
$
|
9,205
|
|
$
|
10,671
|
|
|
$
|
5,172
|
|
$
|
5,965
|
|
|
$
|
1,005
|
|
$
|
1,138
|
|
|
$
|
8,108
|
|
$
|
9,190
|
|
|
$
|
23,490
|
|
$
|
26,964
|
|
New York
|
788
|
|
876
|
|
|
580
|
|
672
|
|
|
400
|
|
463
|
|
|
813
|
|
933
|
|
|
2,581
|
|
2,944
|
|
||||||||||
Illinois
|
358
|
|
405
|
|
|
263
|
|
301
|
|
|
196
|
|
229
|
|
|
333
|
|
397
|
|
|
1,150
|
|
1,332
|
|
||||||||||
Texas
|
224
|
|
273
|
|
|
94
|
|
92
|
|
|
243
|
|
281
|
|
|
75
|
|
85
|
|
|
636
|
|
731
|
|
||||||||||
Florida
|
1,479
|
|
1,696
|
|
|
586
|
|
689
|
|
|
373
|
|
432
|
|
|
1,183
|
|
1,440
|
|
|
3,621
|
|
4,257
|
|
||||||||||
New Jersey
|
310
|
|
348
|
|
|
238
|
|
279
|
|
|
139
|
|
165
|
|
|
470
|
|
553
|
|
|
1,157
|
|
1,345
|
|
||||||||||
Washington
|
819
|
|
959
|
|
|
194
|
|
225
|
|
|
81
|
|
95
|
|
|
339
|
|
395
|
|
|
1,433
|
|
1,674
|
|
||||||||||
Arizona
|
281
|
|
323
|
|
|
143
|
|
167
|
|
|
76
|
|
85
|
|
|
203
|
|
227
|
|
|
703
|
|
802
|
|
||||||||||
Michigan
|
44
|
|
53
|
|
|
141
|
|
166
|
|
|
113
|
|
130
|
|
|
150
|
|
182
|
|
|
448
|
|
531
|
|
||||||||||
Ohio
|
17
|
|
20
|
|
|
45
|
|
48
|
|
|
62
|
|
72
|
|
|
61
|
|
69
|
|
|
185
|
|
209
|
|
||||||||||
All other
|
1,817
|
|
2,116
|
|
|
1,463
|
|
1,645
|
|
|
1,363
|
|
1,562
|
|
|
2,618
|
|
3,025
|
|
|
7,261
|
|
8,348
|
|
||||||||||
Total unpaid principal balance
|
$
|
15,342
|
|
$
|
17,740
|
|
|
$
|
8,919
|
|
$
|
10,249
|
|
|
$
|
4,051
|
|
$
|
4,652
|
|
|
$
|
14,353
|
|
$
|
16,496
|
|
|
$
|
42,665
|
|
$
|
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. Effective December 31, 2015, the current estimated LTV ratios reflect updates to the nationally recognized home price index valuation estimates incorporated into the Firm’s home valuation models. The prior period ratios have been revised to conform with these updates in the home price index.
|
(d)
|
Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
|
(e)
|
The current period current estimated LTV ratios disclosures have been updated to reflect where either the FICO score or estimated property value is unavailable. The prior period amounts have been revised to conform with the current presentation.
|
256
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
|
Total loans
|
|
Total 30+ day delinquency rate
|
||||||||
December 31,
|
|
2015
|
2014
|
|
2015
|
2014
|
||||||
(in millions, except ratios)
|
|
|
||||||||||
HELOCs:
(a)
|
|
|
|
|
|
|
||||||
Within the revolving period
(b)
|
|
$
|
5,000
|
|
$
|
8,972
|
|
|
4.10
|
%
|
6.42
|
%
|
Beyond the revolving period
(c)
|
|
6,252
|
|
4,143
|
|
|
4.46
|
|
6.42
|
|
||
HELOANs
|
|
582
|
|
736
|
|
|
5.33
|
|
8.83
|
|
||
Total
|
|
$
|
11,834
|
|
$
|
13,851
|
|
|
4.35
|
%
|
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.
|
Year ended December 31,
(in millions, except ratios) |
Total PCI
|
||||||||||
2015
|
|
2014
|
|
2013
|
|||||||
Beginning balance
|
$
|
14,592
|
|
|
$
|
16,167
|
|
|
$
|
18,457
|
|
Accretion into interest income
|
(1,700
|
)
|
|
(1,934
|
)
|
|
(2,201
|
)
|
|||
Changes in interest rates on variable-rate loans
|
279
|
|
|
(174
|
)
|
|
(287
|
)
|
|||
Other changes in expected cash flows
(a)
|
230
|
|
|
533
|
|
|
198
|
|
|||
Reclassification from nonaccretable difference
(b)
|
90
|
|
|
—
|
|
|
—
|
|
|||
Balance at December 31
|
$
|
13,491
|
|
|
$
|
14,592
|
|
|
$
|
16,167
|
|
Accretable yield percentage
|
4.20
|
%
|
|
4.19
|
%
|
|
4.31
|
%
|
(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 years ended
December 31, 2015
and
December 31, 2014
, other changes in expected cash flows were driven by changes in prepayment assumptions. For the year ended
December 31, 2013
, other changes in expected cash flows were due to refining the expected interest cash flows on HELOCs with balloon payments, partially offset by changes in prepayment assumptions.
|
(b)
|
Reclassifications from the nonaccretable difference in the year ended
December 31, 2015
were driven by continued improvement in home prices and delinquencies, as well as increased granularity in the impairment estimates.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
257
|
As of or for the year
ended December 31,
(in millions, except ratios)
|
2015
|
2014
|
||||
Net charge-offs
|
$
|
3,122
|
|
$
|
3,429
|
|
% of net charge-offs to retained loans
|
2.51
|
%
|
2.75
|
%
|
||
Loan delinquency
|
|
|
||||
Current and less than 30 days past due
and still accruing |
$
|
129,502
|
|
$
|
126,189
|
|
30–89 days past due and still accruing
|
941
|
|
943
|
|
||
90 or more days past due and still accruing
|
944
|
|
895
|
|
||
Total retained credit card loans
|
$
|
131,387
|
|
$
|
128,027
|
|
Loan delinquency ratios
|
|
|
||||
% of 30+ days past due to total retained loans
|
1.43
|
%
|
1.44
|
%
|
||
% of 90+ days past due to total retained loans
|
0.72
|
|
0.70
|
|
||
Credit card loans by geographic region
|
|
|
||||
California
|
$
|
18,802
|
|
$
|
17,940
|
|
Texas
|
11,847
|
|
11,088
|
|
||
New York
|
11,360
|
|
10,940
|
|
||
Florida
|
7,806
|
|
7,398
|
|
||
Illinois
|
7,655
|
|
7,497
|
|
||
New Jersey
|
5,879
|
|
5,750
|
|
||
Ohio
|
4,700
|
|
4,707
|
|
||
Pennsylvania
|
4,533
|
|
4,489
|
|
||
Michigan
|
3,562
|
|
3,552
|
|
||
Colorado
|
3,399
|
|
3,226
|
|
||
All other
|
51,844
|
|
51,440
|
|
||
Total retained credit card loans
|
$
|
131,387
|
|
$
|
128,027
|
|
Percentage of portfolio based on carrying value with estimated refreshed FICO scores
|
|
|
||||
Equal to or greater than 660
|
84.4
|
%
|
85.7
|
%
|
||
Less than 660
|
15.6
|
|
14.3
|
|
258
|
|
JPMorgan Chase & Co./2015 Annual Report
|
December 31, (in millions)
|
2015
|
2014
|
||||
Impaired credit card loans with an allowance
(a)(b)
|
|
|
||||
Credit card loans with modified payment terms
(c)
|
$
|
1,286
|
|
$
|
1,775
|
|
Modified credit card loans that have reverted to pre-modification payment terms
(d)
|
179
|
|
254
|
|
||
Total impaired credit card loans
(e)
|
$
|
1,465
|
|
$
|
2,029
|
|
Allowance for loan losses related to impaired credit card loans
|
$
|
460
|
|
$
|
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. At
December 31, 2015
and
2014
,
$113 million
and
$159 million
, respectively, of loans have reverted back to the pre-modification payment terms of the loans due to noncompliance with the terms of the modified loans. The remaining
$66 million
and
$95 million
at
December 31, 2015
and
2014
, respectively, of these loans are to borrowers who have successfully completed a short-term modification program. The Firm continues to report these loans as TDRs since the borrowers’ credit lines remain closed.
|
(e)
|
Predominantly all impaired credit card loans are in the U.S.
|
Year ended December 31,
(in millions)
|
|
2015
|
2014
|
2013
|
||||||
Average impaired credit card loans
|
|
$
|
1,710
|
|
$
|
2,503
|
|
$
|
3,882
|
|
Interest income on
impaired credit card loans
|
|
82
|
|
123
|
|
198
|
|
Year ended December 31,
(in millions, except
weighted-average data)
|
|
2015
|
2014
|
2013
|
||||||
Weighted-average interest rate of loans – before TDR
|
|
15.08
|
%
|
14.96
|
%
|
15.37
|
%
|
|||
Weighted-average interest rate of loans – after TDR
|
|
4.40
|
|
4.40
|
|
4.38
|
|
|||
Loans that redefaulted within one year of modification
(a)
|
|
$
|
85
|
|
$
|
119
|
|
$
|
167
|
|
(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.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
259
|
As of or for the year ended December 31,
(in millions, except ratios)
|
Commercial
and industrial
|
|
Real estate
|
|
Financial
institutions |
|
Government agencies
|
|
Other
(e)
|
|
Total
retained loans |
||||||||||||||||||||||||||||||
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|||||||||||||||||||||||||
Loans by risk ratings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Investment grade
|
$
|
62,150
|
|
$
|
63,069
|
|
|
$
|
74,330
|
|
$
|
61,006
|
|
|
$
|
21,786
|
|
$
|
27,111
|
|
|
$
|
11,363
|
|
$
|
8,393
|
|
|
$
|
98,107
|
|
$
|
82,087
|
|
|
$
|
267,736
|
|
$
|
241,666
|
|
Noninvestment
grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Noncriticized
|
45,632
|
|
44,117
|
|
|
17,008
|
|
16,541
|
|
|
7,667
|
|
7,093
|
|
(d)
|
256
|
|
300
|
|
|
11,390
|
|
10,067
|
|
(d)
|
81,953
|
|
78,118
|
|
||||||||||||
Criticized performing
|
4,542
|
|
2,251
|
|
|
1,251
|
|
1,313
|
|
|
320
|
|
316
|
|
|
7
|
|
3
|
|
|
253
|
|
236
|
|
|
6,373
|
|
4,119
|
|
||||||||||||
Criticized nonaccrual
|
608
|
|
188
|
|
|
231
|
|
253
|
|
|
10
|
|
18
|
|
|
—
|
|
—
|
|
|
139
|
|
140
|
|
|
988
|
|
599
|
|
||||||||||||
Total noninvestment grade
|
50,782
|
|
46,556
|
|
|
18,490
|
|
18,107
|
|
|
7,997
|
|
7,427
|
|
(d)
|
263
|
|
303
|
|
|
11,782
|
|
10,443
|
|
(d)
|
89,314
|
|
82,836
|
|
||||||||||||
Total retained loans
|
$
|
112,932
|
|
$
|
109,625
|
|
|
$
|
92,820
|
|
$
|
79,113
|
|
|
$
|
29,783
|
|
$
|
34,538
|
|
(d)
|
$
|
11,626
|
|
$
|
8,696
|
|
|
$
|
109,889
|
|
$
|
92,530
|
|
(d)
|
$
|
357,050
|
|
$
|
324,502
|
|
% of total criticized to total retained loans
|
4.56
|
%
|
2.22
|
%
|
|
1.60
|
%
|
1.98
|
%
|
|
1.11
|
%
|
0.97
|
|
%
|
0.06
|
%
|
0.03
|
%
|
|
0.36
|
%
|
0.41
|
|
%
|
2.06
|
%
|
1.45
|
%
|
||||||||||||
% of nonaccrual loans to total retained loans
|
0.54
|
|
0.17
|
|
|
0.25
|
|
0.32
|
|
|
0.03
|
|
0.05
|
|
|
—
|
|
—
|
|
|
0.13
|
|
0.15
|
|
|
0.28
|
|
0.18
|
|
||||||||||||
Loans by geographic distribution
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total non-U.S.
|
$
|
30,063
|
|
$
|
33,739
|
|
|
$
|
3,003
|
|
$
|
2,099
|
|
|
$
|
17,166
|
|
$
|
20,944
|
|
|
$
|
1,788
|
|
$
|
1,122
|
|
|
$
|
42,031
|
|
$
|
42,961
|
|
|
$
|
94,051
|
|
$
|
100,865
|
|
Total U.S.
|
82,869
|
|
75,886
|
|
|
89,817
|
|
77,014
|
|
|
12,617
|
|
13,594
|
|
(d)
|
9,838
|
|
7,574
|
|
|
67,858
|
|
49,569
|
|
(d)
|
262,999
|
|
223,637
|
|
||||||||||||
Total retained loans
|
$
|
112,932
|
|
$
|
109,625
|
|
|
$
|
92,820
|
|
$
|
79,113
|
|
|
$
|
29,783
|
|
$
|
34,538
|
|
(d)
|
$
|
11,626
|
|
$
|
8,696
|
|
|
$
|
109,889
|
|
$
|
92,530
|
|
(d)
|
$
|
357,050
|
|
$
|
324,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Net charge-offs/(recoveries)
|
$
|
26
|
|
$
|
22
|
|
|
$
|
(14
|
)
|
$
|
(9
|
)
|
|
$
|
(5
|
)
|
$
|
(12
|
)
|
|
$
|
(8
|
)
|
$
|
25
|
|
|
$
|
11
|
|
$
|
(14
|
)
|
|
$
|
10
|
|
$
|
12
|
|
% of net
charge-offs/(recoveries) to end-of-period retained loans
|
0.02
|
%
|
0.02
|
%
|
|
(0.02
|
)%
|
(0.01
|
)%
|
|
(0.02
|
)%
|
(0.04
|
)
|
%
|
(0.07
|
)%
|
0.29
|
%
|
|
0.01
|
%
|
(0.02
|
)
|
%
|
—
|
%
|
—
|
%
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Loan
delinquency
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Current and less than 30 days past due and still accruing
|
$
|
112,058
|
|
$
|
108,857
|
|
|
$
|
92,381
|
|
$
|
78,552
|
|
|
$
|
29,713
|
|
$
|
34,416
|
|
(d)
|
$
|
11,565
|
|
$
|
8,627
|
|
|
$
|
108,734
|
|
$
|
91,160
|
|
(d)
|
$
|
354,451
|
|
$
|
321,612
|
|
30–89 days past due and still accruing
|
259
|
|
566
|
|
|
193
|
|
275
|
|
|
49
|
|
104
|
|
|
55
|
|
69
|
|
|
988
|
|
1,201
|
|
|
1,544
|
|
2,215
|
|
||||||||||||
90 or more days past due and still accruing
(c)
|
7
|
|
14
|
|
|
15
|
|
33
|
|
|
11
|
|
—
|
|
|
6
|
|
—
|
|
|
28
|
|
29
|
|
|
67
|
|
76
|
|
||||||||||||
Criticized nonaccrual
|
608
|
|
188
|
|
|
231
|
|
253
|
|
|
10
|
|
18
|
|
|
—
|
|
—
|
|
|
139
|
|
140
|
|
|
988
|
|
599
|
|
||||||||||||
Total retained loans
|
$
|
112,932
|
|
$
|
109,625
|
|
|
$
|
92,820
|
|
$
|
79,113
|
|
|
$
|
29,783
|
|
$
|
34,538
|
|
(d)
|
$
|
11,626
|
|
$
|
8,696
|
|
|
$
|
109,889
|
|
$
|
92,530
|
|
(d)
|
$
|
357,050
|
|
$
|
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.
|
(c)
|
Represents loans that are considered well-collateralized and therefore still accruing interest.
|
(d)
|
Effective in the fourth quarter 2015, the Firm realigned its wholesale industry divisions in order to better monitor and manage industry concentrations. Prior period amounts have been revised to conform with current period presentation. For additional information, see Wholesale credit portfolio on
pages 122–129
.
|
(e)
|
Other includes: individuals; SPEs; holding companies; and private education and civic organizations. For more information on exposures to SPEs, see Note 16.
|
260
|
|
JPMorgan Chase & Co./2015 Annual Report
|
December 31,
(in millions, except ratios)
|
Multifamily
|
|
Commercial lessors
|
|
Commercial construction and development
|
|
Other
|
|
Total real estate loans
|
|||||||||||||||||||||||||
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|||||||||||||||||||||
Real estate retained loans
|
$
|
60,290
|
|
$
|
51,049
|
|
|
$
|
20,062
|
|
$
|
17,438
|
|
|
$
|
4,920
|
|
$
|
4,264
|
|
|
$
|
7,548
|
|
$
|
6,362
|
|
|
$
|
92,820
|
|
$
|
79,113
|
|
Criticized
|
520
|
|
652
|
|
|
844
|
|
841
|
|
|
43
|
|
42
|
|
|
75
|
|
31
|
|
|
1,482
|
|
1,566
|
|
||||||||||
% of criticized to total real estate retained loans
|
0.86
|
%
|
1.28
|
%
|
|
4.21
|
%
|
4.82
|
%
|
|
0.87
|
%
|
0.98
|
%
|
|
0.99
|
%
|
0.49
|
%
|
|
1.60
|
%
|
1.98
|
%
|
||||||||||
Criticized nonaccrual
|
$
|
85
|
|
$
|
126
|
|
|
$
|
100
|
|
$
|
110
|
|
|
$
|
1
|
|
$
|
—
|
|
|
$
|
45
|
|
$
|
17
|
|
|
$
|
231
|
|
$
|
253
|
|
% of criticized nonaccrual to total real estate retained loans
|
0.14
|
%
|
0.25
|
%
|
|
0.50
|
%
|
0.63
|
%
|
|
0.02
|
%
|
—
|
%
|
|
0.60
|
%
|
0.27
|
%
|
|
0.25
|
%
|
0.32
|
%
|
December 31,
(in millions)
|
Commercial
and industrial
|
|
Real estate
|
|
Financial
institutions
|
|
Government
agencies
|
|
Other
|
|
Total
retained loans
|
|
|||||||||||||||||||||||||||||||
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
|
2014
|
|
|||||||||||||||||||||||||
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
With an allowance
|
$
|
522
|
|
$
|
174
|
|
|
$
|
148
|
|
$
|
193
|
|
|
$
|
10
|
|
$
|
15
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
46
|
|
$
|
89
|
|
|
$
|
726
|
|
|
$
|
471
|
|
|
Without an allowance
(a)
|
98
|
|
24
|
|
|
106
|
|
87
|
|
|
—
|
|
3
|
|
|
—
|
|
—
|
|
|
94
|
|
52
|
|
|
298
|
|
|
166
|
|
|
||||||||||||
Total
impaired loans
|
$
|
620
|
|
$
|
198
|
|
|
$
|
254
|
|
$
|
280
|
|
|
$
|
10
|
|
$
|
18
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
140
|
|
$
|
141
|
|
|
$
|
1,024
|
|
(c)
|
$
|
637
|
|
(c)
|
Allowance for loan losses related to impaired loans
|
$
|
220
|
|
$
|
34
|
|
|
$
|
27
|
|
$
|
36
|
|
|
$
|
3
|
|
$
|
4
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
24
|
|
$
|
13
|
|
|
$
|
274
|
|
|
$
|
87
|
|
|
Unpaid principal balance of impaired loans
(b)
|
669
|
|
266
|
|
|
363
|
|
345
|
|
|
13
|
|
22
|
|
|
—
|
|
—
|
|
|
164
|
|
202
|
|
|
1,209
|
|
|
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
December 31, 2015
and
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, largely consists of loans in the U.S.
|
(a)
|
The related interest income on accruing impaired loans and interest income recognized on a cash basis were not material for the years ended
December 31, 2015
,
2014
and
2013
.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
261
|
262
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
263
|
|
2015
|
||||||||||||||
Year ended December 31,
(in millions)
|
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
|
|
Gross charge-offs
|
1,658
|
|
|
3,488
|
|
|
95
|
|
|
5,241
|
|
||||
Gross recoveries
|
(704
|
)
|
|
(366
|
)
|
|
(85
|
)
|
|
(1,155
|
)
|
||||
Net charge-offs/(recoveries)
|
954
|
|
|
3,122
|
|
|
10
|
|
|
4,086
|
|
||||
Write-offs of PCI loans
(a)
|
208
|
|
|
—
|
|
|
—
|
|
|
208
|
|
||||
Provision for loan losses
|
(82
|
)
|
|
3,122
|
|
|
623
|
|
|
3,663
|
|
||||
Other
|
—
|
|
|
(5
|
)
|
|
6
|
|
|
1
|
|
||||
Ending balance at December 31,
|
$
|
5,806
|
|
|
$
|
3,434
|
|
|
$
|
4,315
|
|
|
$
|
13,555
|
|
|
|
|
|
|
|
|
|
||||||||
Allowance for loan losses by impairment methodology
|
|
|
|
|
|
|
|
||||||||
Asset-specific
(b)
|
$
|
364
|
|
|
$
|
460
|
|
(c)
|
$
|
274
|
|
|
$
|
1,098
|
|
Formula-based
|
2,700
|
|
|
2,974
|
|
|
4,041
|
|
|
9,715
|
|
||||
PCI
|
2,742
|
|
|
—
|
|
|
—
|
|
|
2,742
|
|
||||
Total allowance for loan losses
|
$
|
5,806
|
|
|
$
|
3,434
|
|
|
$
|
4,315
|
|
|
$
|
13,555
|
|
|
|
|
|
|
|
|
|
||||||||
Loans by impairment methodology
|
|
|
|
|
|
|
|
||||||||
Asset-specific
|
$
|
9,606
|
|
|
$
|
1,465
|
|
|
$
|
1,024
|
|
|
$
|
12,095
|
|
Formula-based
|
293,751
|
|
|
129,922
|
|
|
356,022
|
|
|
779,695
|
|
||||
PCI
|
40,998
|
|
|
—
|
|
|
4
|
|
|
41,002
|
|
||||
Total retained loans
|
$
|
344,355
|
|
|
$
|
131,387
|
|
|
$
|
357,050
|
|
|
$
|
832,792
|
|
|
|
|
|
|
|
|
|
||||||||
Impaired collateral-dependent loans
|
|
|
|
|
|
|
|
||||||||
Net charge-offs
|
$
|
104
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
120
|
|
Loans measured at fair value of collateral less cost to sell
|
2,566
|
|
|
—
|
|
|
283
|
|
|
2,849
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Allowance for lending-related commitments
|
|
|
|
|
|
|
|
||||||||
Beginning balance at January 1,
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
609
|
|
|
$
|
622
|
|
Provision for lending-related commitments
|
1
|
|
|
—
|
|
|
163
|
|
|
164
|
|
||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Ending balance at December 31,
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
772
|
|
|
$
|
786
|
|
|
|
|
|
|
|
|
|
||||||||
Allowance for lending-related commitments by impairment methodology
|
|
|
|
|
|
|
|
||||||||
Asset-specific
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
73
|
|
|
$
|
73
|
|
Formula-based
|
14
|
|
|
—
|
|
|
699
|
|
|
713
|
|
||||
Total allowance for lending-related commitments
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
772
|
|
|
$
|
786
|
|
|
|
|
|
|
|
|
|
||||||||
Lending-related commitments by impairment methodology
|
|
|
|
|
|
|
|
||||||||
Asset-specific
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
193
|
|
|
$
|
193
|
|
Formula-based
|
58,478
|
|
|
515,518
|
|
|
366,206
|
|
|
940,202
|
|
||||
Total lending-related commitments
|
$
|
58,478
|
|
|
$
|
515,518
|
|
|
$
|
366,399
|
|
|
$
|
940,395
|
|
(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). During the fourth quarter of 2014, the Firm recorded a
$291 million
adjustment to reduce the PCI allowance and the recorded investment in the Firm’s PCI loan portfolio, primarily reflecting the cumulative effect of interest forgiveness modifications. This adjustment had no impact to the Firm’s Consolidated statements of income.
|
(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.
|
(d)
|
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.
|
264
|
|
JPMorgan Chase & Co./2015 Annual Report
|
(table continued from previous page)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2014
|
|
2013
|
||||||||||||||||||||||||||||
Consumer,
excluding
credit card
|
|
|
Credit card
|
|
Wholesale
|
|
Total
|
|
Consumer,
excluding
credit card
|
|
|
Credit card
|
|
Wholesale
|
|
Total
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
$
|
8,456
|
|
|
$
|
3,795
|
|
|
$
|
4,013
|
|
|
$
|
16,264
|
|
|
$
|
12,292
|
|
|
$
|
5,501
|
|
|
$
|
4,143
|
|
|
$
|
21,936
|
|
2,132
|
|
|
3,831
|
|
|
151
|
|
|
6,114
|
|
|
2,754
|
|
|
4,472
|
|
|
241
|
|
|
7,467
|
|
||||||||
(814
|
)
|
|
(402
|
)
|
|
(139
|
)
|
|
(1,355
|
)
|
|
(847
|
)
|
|
(593
|
)
|
|
(225
|
)
|
|
(1,665
|
)
|
||||||||
1,318
|
|
|
3,429
|
|
|
12
|
|
|
4,759
|
|
|
1,907
|
|
|
3,879
|
|
|
16
|
|
|
5,802
|
|
||||||||
533
|
|
|
—
|
|
|
—
|
|
|
533
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
53
|
|
||||||||
414
|
|
|
3,079
|
|
|
(269
|
)
|
|
3,224
|
|
|
(1,872
|
)
|
|
2,179
|
|
|
(119
|
)
|
|
188
|
|
||||||||
31
|
|
|
(6
|
)
|
|
(36
|
)
|
|
(11
|
)
|
|
(4
|
)
|
|
(6
|
)
|
|
5
|
|
|
(5
|
)
|
||||||||
$
|
7,050
|
|
|
$
|
3,439
|
|
|
$
|
3,696
|
|
|
$
|
14,185
|
|
|
$
|
8,456
|
|
|
$
|
3,795
|
|
|
$
|
4,013
|
|
|
$
|
16,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
$
|
539
|
|
|
$
|
500
|
|
(c)
|
$
|
87
|
|
|
$
|
1,126
|
|
|
$
|
601
|
|
|
$
|
971
|
|
(c)
|
$
|
181
|
|
|
$
|
1,753
|
|
3,186
|
|
|
2,939
|
|
|
3,609
|
|
|
9,734
|
|
|
3,697
|
|
|
2,824
|
|
|
3,832
|
|
|
10,353
|
|
||||||||
3,325
|
|
|
—
|
|
|
—
|
|
|
3,325
|
|
|
4,158
|
|
|
—
|
|
|
—
|
|
|
4,158
|
|
||||||||
$
|
7,050
|
|
|
$
|
3,439
|
|
|
$
|
3,696
|
|
|
$
|
14,185
|
|
|
$
|
8,456
|
|
|
$
|
3,795
|
|
|
$
|
4,013
|
|
|
$
|
16,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
$
|
12,020
|
|
|
$
|
2,029
|
|
|
$
|
637
|
|
|
$
|
14,686
|
|
|
$
|
13,785
|
|
|
$
|
3,115
|
|
|
$
|
845
|
|
|
$
|
17,745
|
|
236,263
|
|
|
125,998
|
|
|
323,861
|
|
|
686,122
|
|
|
221,609
|
|
|
124,350
|
|
|
307,412
|
|
|
653,371
|
|
||||||||
46,696
|
|
|
—
|
|
|
4
|
|
|
46,700
|
|
|
53,055
|
|
|
—
|
|
|
6
|
|
|
53,061
|
|
||||||||
$
|
294,979
|
|
|
$
|
128,027
|
|
|
$
|
324,502
|
|
|
$
|
747,508
|
|
|
$
|
288,449
|
|
|
$
|
127,465
|
|
|
$
|
308,263
|
|
|
$
|
724,177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
$
|
133
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
154
|
|
|
$
|
235
|
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
272
|
|
3,025
|
|
|
—
|
|
|
326
|
|
|
3,351
|
|
|
3,105
|
|
|
—
|
|
|
362
|
|
|
3,467
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
$
|
8
|
|
|
$
|
—
|
|
|
$
|
697
|
|
|
$
|
705
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
661
|
|
|
$
|
668
|
|
5
|
|
|
—
|
|
|
(90
|
)
|
|
(85
|
)
|
|
1
|
|
|
—
|
|
|
36
|
|
|
37
|
|
||||||||
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
$
|
13
|
|
|
$
|
—
|
|
|
$
|
609
|
|
|
$
|
622
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
697
|
|
|
$
|
705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
$
|
—
|
|
|
$
|
—
|
|
|
$
|
60
|
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
60
|
|
|
$
|
60
|
|
13
|
|
|
—
|
|
|
549
|
|
|
562
|
|
|
8
|
|
|
—
|
|
|
637
|
|
|
645
|
|
||||||||
$
|
13
|
|
|
$
|
—
|
|
|
$
|
609
|
|
|
$
|
622
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
697
|
|
|
$
|
705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
$
|
—
|
|
|
$
|
—
|
|
|
$
|
103
|
|
|
$
|
103
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
206
|
|
|
$
|
206
|
|
58,153
|
|
|
525,963
|
|
|
366,778
|
|
(d)
|
950,894
|
|
|
56,057
|
|
|
529,383
|
|
|
344,032
|
|
(d)
|
929,472
|
|
||||||||
$
|
58,153
|
|
|
$
|
525,963
|
|
|
$
|
366,881
|
|
|
$
|
950,997
|
|
|
$
|
56,057
|
|
|
$
|
529,383
|
|
|
$
|
344,238
|
|
|
$
|
929,678
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
265
|
Line-of-Business
|
Transaction Type
|
Activity
|
Annual Report
page references
|
CCB
|
Credit card securitization trusts
|
Securitization of both originated and purchased credit card receivables
|
266
|
|
Mortgage securitization trusts
|
Servicing and securitization of both originated and purchased residential mortgages
|
267–269
|
CIB
|
Mortgage and other securitization trusts
|
Securitization of both originated and purchased residential and commercial mortgages and student loans
|
267–269
|
|
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
|
269–271
|
|
Municipal bond vehicles
|
|
269–270
|
•
|
Asset Management: AM sponsors and manages certain funds that are deemed VIEs. As asset manager of the funds, AM earns a fee based on assets managed; the fee varies with each fund’s investment objective and is competitively priced. For fund entities that qualify as VIEs, AM’s interests are, in certain cases, considered to be significant variable interests that result in consolidation of the financial results of these entities.
|
•
|
Commercial Banking: CB
makes investments in and provides lending to community development entities that may meet the definition of a VIE. In addition,
CB
provides financing and lending-related services to certain client-sponsored VIEs. In general,
CB
does not control the activities of these entities
and does not consolidate these entities.
|
•
|
Corporate
:
The Private Equity business, within Corporate, is involved with entities that may meet the definition of VIEs. However, the Firm’s Private Equity business is generally subject to specialized investment company accounting, which does not require the consolidation of investments, including VIEs.
|
266
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
Principal amount outstanding
|
|
JPMorgan Chase interest in securitized assets in nonconsolidated VIEs
(c)(d)(e)
|
||||||||||||||||
December 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
|
$
|
85.7
|
|
$
|
1.4
|
|
$
|
66.7
|
|
|
$
|
0.4
|
|
$
|
1.6
|
|
$
|
2.0
|
|
Subprime
|
24.4
|
|
0.1
|
|
22.6
|
|
|
0.1
|
|
—
|
|
0.1
|
|
||||||
Commercial and other
(b)
|
123.5
|
|
0.1
|
|
80.3
|
|
|
0.4
|
|
3.5
|
|
3.9
|
|
||||||
Total
|
$
|
233.6
|
|
$
|
1.6
|
|
$
|
169.6
|
|
|
$
|
0.9
|
|
$
|
5.1
|
|
$
|
6.0
|
|
|
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
pages 272–273
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 17 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 6 for further information on derivatives); senior and subordinated securities of
$163 million
and
$73 million
, respectively, at
December 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
December 31, 2015
and
2014
,
76%
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
$1.9 billion
and
$1.1 billion
of investment-grade and
$93 million
and
$185 million
of noninvestment-grade retained interests at
December 31, 2015
and 2014, respectively. The retained interests in commercial and other securitizations trusts consisted of
$3.7 billion
and
$3.7 billion
of investment-grade and
$198 million
and
$194 million
of noninvestment-grade retained interests at
December 31, 2015
and
2014
, respectively.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
267
|
268
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
269
|
December 31,
(in billions)
|
Fair value of assets held by VIEs
|
Liquidity facilities
|
Excess
(a)
|
Maximum exposure
|
||||||||
Nonconsolidated municipal bond vehicles
|
|
|
|
|
||||||||
2015
|
$
|
6.9
|
|
$
|
3.8
|
|
$
|
3.1
|
|
$
|
3.8
|
|
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
|
|||||||||||||||||
December 31,
(in billions, except where otherwise noted)
|
AAA to AAA-
|
AA+ to AA-
|
A+ to A-
|
BBB+ to BBB-
|
|
BB+ and below
|
||||||||||||||
2015
|
$
|
1.7
|
|
$
|
4.6
|
|
$
|
0.5
|
|
$
|
—
|
|
|
$
|
0.1
|
|
$
|
6.9
|
|
4.0
|
2014
|
2.7
|
|
8.4
|
|
0.4
|
|
—
|
|
|
—
|
|
$
|
11.5
|
|
4.9
|
(a)
|
Represents the excess 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.
|
270
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
Assets
|
|
Liabilities
|
|||||||||||||||||||
December 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
|
$
|
—
|
|
$
|
47.4
|
|
$
|
0.7
|
|
$
|
48.1
|
|
|
$
|
27.9
|
|
$
|
—
|
|
$
|
27.9
|
|
Firm-administered multi-seller conduits
|
—
|
|
24.4
|
|
—
|
|
24.4
|
|
|
8.7
|
|
—
|
|
8.7
|
|
|||||||
Municipal bond vehicles
|
2.7
|
|
—
|
|
—
|
|
2.7
|
|
|
2.6
|
|
—
|
|
2.6
|
|
|||||||
Mortgage securitization entities
(b)
|
0.8
|
|
1.4
|
|
—
|
|
2.2
|
|
|
0.8
|
|
0.7
|
|
1.5
|
|
|||||||
Student loan securitization entities
|
—
|
|
1.9
|
|
0.1
|
|
2.0
|
|
|
1.8
|
|
—
|
|
1.8
|
|
|||||||
Other
|
0.2
|
|
—
|
|
2.0
|
|
2.2
|
|
|
0.1
|
|
0.1
|
|
0.2
|
|
|||||||
Total
|
$
|
3.7
|
|
$
|
75.1
|
|
$
|
2.8
|
|
$
|
81.6
|
|
|
$
|
41.9
|
|
$
|
0.8
|
|
$
|
42.7
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
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
|
|
|
—
|
|
0.2
|
|
0.2
|
|
|||||||
Total
|
$
|
9.1
|
|
$
|
68.9
|
|
$
|
1.8
|
|
$
|
79.8
|
|
|
$
|
52.3
|
|
$
|
1.0
|
|
$
|
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
$30.6 billion
and
$35.4 billion
at
December 31, 2015
and
2014
, respectively. The maturities of the long-term beneficial interests as of
December 31, 2015
, were as follows:
$5.1 billion
under one year,
$21.6 billion
between one and five years, and
$3.9 billion
over five years, all respectively.
|
(f)
|
Includes liabilities classified as accounts payable and other liabilities in the Consolidated balance sheets.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
271
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||
Year ended December 31,
(in millions, except rates)
(a)
|
Residential mortgage
(d)(e)
|
Commercial and other
(e)(f)
|
|
Residential mortgage
(d)(e)
|
Commercial and other
(e)(f)
|
|
Residential mortgage
(d)(e)
|
Commercial and other
(e)(f)
|
|
||||||||||||
Principal securitized
|
$
|
3,008
|
|
$
|
11,933
|
|
|
$
|
2,558
|
|
$
|
11,911
|
|
|
$
|
1,404
|
|
$
|
11,318
|
|
|
All cash flows during the period:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proceeds from new securitizations
(b)
|
$
|
3,022
|
|
$
|
12,011
|
|
|
$
|
2,569
|
|
$
|
12,079
|
|
|
$
|
1,410
|
|
$
|
11,507
|
|
|
Servicing fees collected
|
528
|
|
3
|
|
|
557
|
|
4
|
|
|
576
|
|
5
|
|
|
||||||
Purchases of previously transferred financial assets (or the underlying collateral)
(c)
|
3
|
|
—
|
|
|
121
|
|
—
|
|
|
294
|
|
—
|
|
|
||||||
Cash flows received on interests
|
407
|
|
597
|
|
|
179
|
|
578
|
|
|
156
|
|
325
|
|
|
(a)
|
Excludes re-securitization transactions.
|
(b)
|
Proceeds from residential mortgage securitizations were received in the form of securities. During 2015,
$3.0 billion
of residential mortgage securitizations were received as securities and classified in level 2, and
$59 million
were classified in level 3 of the fair value hierarchy. During 2014,
$2.4 billion
of residential mortgage securitizations were received as securities and classified in level 2, and
$185 million
were classified in level 3 of the fair value hierarchy. During 2013,
$1.4 billion
of residential mortgage securitizations were received as securities and classified in level 2. Proceeds from commercial mortgage securitizations were received as securities and cash. During 2015,
$12.0 billion
of proceeds from commercial mortgage securitizations were received as securities and classified in level 2, and
$43 million
of proceeds were classified in level 3 of the fair value hierarchy; and
zero
of proceeds from commercial mortgage securitizations were received as cash. During 2014,
$11.4 billion
of proceeds from commercial mortgage securitizations were received as securities and classified in level 2, and
$130 million
of proceeds were classified in level 3 of the fair value hierarchy: and
$568 million
of proceeds from commercial mortgage securitizations were received as cash. During 2013,
$11.3 billion
of commercial mortgage securitizations were classified in level 2 of the fair value hierarchy, and
$207 million
of proceeds from commercial mortgage securitizations were received as cash.
|
(c)
|
Includes cash paid by the Firm to reacquire assets from off–balance sheet, nonconsolidated entities – for example, loan repurchases due to representation and warranties and servicer clean-up calls.
|
(d)
|
Includes prime, Alt-A, subprime, and option ARMs. Excludes certain loan securitization transactions entered into with Ginnie Mae, Fannie Mae and Freddie Mac.
|
(e)
|
Key assumptions used to measure residential mortgage retained interests originated during the year included weighted-average life (in years) of
4.2
,
5.9
and
3.9
for the years ended December 31, 2015, 2014 and 2013, respectively, and weighted-average discount rate of
2.9%
,
3.4%
and
2.5%
for the years ended December 31, 2015, 2014 and 2013, respectively. Key assumptions used to measure commercial and other retained interests originated during the year included weighted-average life (in years) of
6.2
,
6.5
and
8.3
for the years ended December 31, 2015, 2014, and 2013, respectively, and weighted-average discount rate of
4.1%
,
4.8%
and
3.2%
for the years ended December 31, 2015, 2014 and 2013, respectively.
|
(f)
|
Includes commercial and student loan securitizations.
|
272
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Year ended December 31,
(in millions)
|
2015
|
2014
|
2013
|
||||||
Carrying value of loans sold
|
$
|
42,161
|
|
$
|
55,802
|
|
$
|
166,028
|
|
Proceeds received from loan sales as cash
|
$
|
313
|
|
$
|
260
|
|
$
|
782
|
|
Proceeds from loans sales as securities
(a)
|
41,615
|
|
55,117
|
|
163,373
|
|
|||
Total proceeds received from loan sales
(b)
|
$
|
41,928
|
|
$
|
55,377
|
|
$
|
164,155
|
|
Gains on loan sales
(c)
|
$
|
299
|
|
$
|
316
|
|
$
|
302
|
|
(a)
|
Predominantly includes securities from U.S. GSEs and Ginnie Mae that are generally sold shortly after receipt.
|
(b)
|
Excludes the value of MSRs retained upon the sale of loans. Gains on loan sales include the value of MSRs.
|
(c)
|
The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale.
|
|
Securitized assets
|
|
90 days past due
|
|
Liquidation losses
|
|||||||||||||||
As of or for the year ended December 31, (in millions)
|
2015
|
2014
|
|
2015
|
2014
|
|
2015
|
2014
|
||||||||||||
Securitized loans
(a)
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
||||||||||||
Prime/ Alt-A & option ARMs
|
$
|
66,708
|
|
$
|
78,294
|
|
|
$
|
8,325
|
|
$
|
11,363
|
|
|
$
|
1,946
|
|
$
|
2,166
|
|
Subprime
|
22,549
|
|
25,659
|
|
|
5,448
|
|
6,473
|
|
|
1,431
|
|
1,931
|
|
||||||
Commercial and other
|
80,319
|
|
94,438
|
|
|
1,808
|
|
1,522
|
|
|
375
|
|
1,267
|
|
||||||
Total loans securitized
(b)
|
$
|
169,576
|
|
$
|
198,391
|
|
|
$
|
15,581
|
|
$
|
19,358
|
|
|
$
|
3,752
|
|
$
|
5,364
|
|
(a)
|
Total assets held in securitization-related SPEs were
$233.6 billion
and
$254.3 billion
, respectively, at
December 31, 2015
and
2014
. The
$169.6 billion
and
$198.4 billion
, respectively, of loans securitized at
December 31, 2015
and
2014
, excludes:
$62.4 billion
and
$52.2 billion
, respectively, of securitized loans in which the Firm has no continuing involvement, and
$1.6 billion
and
$3.7 billion
, respectively, of loan securitizations consolidated on the Firm’s Consolidated balance sheets at
December 31, 2015
and
2014
.
|
(b)
|
Includes securitized loans that were previously recorded at fair value and classified as trading assets.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
273
|
December 31, (in millions)
|
2015
|
2014
|
2013
|
||||||
Consumer & Community Banking
|
$
|
30,769
|
|
$
|
30,941
|
|
$
|
30,985
|
|
Corporate & Investment Bank
|
6,772
|
|
6,780
|
|
6,888
|
|
|||
Commercial Banking
|
2,861
|
|
2,861
|
|
2,862
|
|
|||
Asset Management
|
6,923
|
|
6,964
|
|
6,969
|
|
|||
Corporate
|
—
|
|
101
|
|
377
|
|
|||
Total goodwill
|
$
|
47,325
|
|
$
|
47,647
|
|
$
|
48,081
|
|
Year ended December 31,
(in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Balance at beginning of period
|
$
|
47,647
|
|
|
$
|
48,081
|
|
|
$
|
48,175
|
|
Changes during the period from:
|
|
|
|
|
|
||||||
Business combinations
|
28
|
|
|
43
|
|
|
64
|
|
|||
Dispositions
|
(160
|
)
|
(b)
|
(80
|
)
|
|
(5
|
)
|
|||
Other
(a)
|
(190
|
)
|
|
(397
|
)
|
|
(153
|
)
|
|||
Balance at December 31,
|
$
|
47,325
|
|
|
$
|
47,647
|
|
|
$
|
48,081
|
|
(a)
|
Includes foreign currency translation adjustments, other tax-related adjustments, and, during 2014, goodwill impairment associated with the Firm’s Private Equity business of
$276 million
.
|
(b)
|
Includes
$101 million
of Private Equity goodwill, which was disposed of as part of the Private Equity sale completed in January 2015.
|
274
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
275
|
As of or for the year ended December 31, (in millions, except where otherwise noted)
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Fair value at beginning of period
|
$
|
7,436
|
|
|
$
|
9,614
|
|
|
$
|
7,614
|
|
MSR activity:
|
|
|
|
|
|
||||||
Originations of MSRs
|
550
|
|
|
757
|
|
|
2,214
|
|
|||
Purchase of MSRs
|
435
|
|
|
11
|
|
|
1
|
|
|||
Disposition of MSRs
(a)
|
(486
|
)
|
|
(209
|
)
|
|
(725
|
)
|
|||
Net additions
|
499
|
|
|
559
|
|
|
1,490
|
|
|||
|
|
|
|
|
|
||||||
Changes due to collection/realization of expected cash flows
|
(922
|
)
|
|
(911
|
)
|
|
(1,102
|
)
|
|||
|
|
|
|
|
|
||||||
Changes in valuation due to inputs and assumptions:
|
|
|
|
|
|
||||||
Changes due to market interest rates and other
(b)
|
(160
|
)
|
|
(1,608
|
)
|
|
2,122
|
|
|||
Changes in valuation due to other inputs and assumptions:
|
|
|
|
|
|
||||||
Projected cash flows (e.g., cost to service)
|
(112
|
)
|
|
133
|
|
|
109
|
|
|||
Discount rates
|
(10
|
)
|
|
(459
|
)
|
(e)
|
(78
|
)
|
|||
Prepayment model changes and other
(c)
|
(123
|
)
|
|
108
|
|
|
(541
|
)
|
|||
Total changes in valuation due to other inputs and assumptions
|
(245
|
)
|
|
(218
|
)
|
|
(510
|
)
|
|||
Total changes in valuation due to inputs and assumptions
|
$
|
(405
|
)
|
|
$
|
(1,826
|
)
|
|
$
|
1,612
|
|
Fair value at December 31,
|
$
|
6,608
|
|
|
$
|
7,436
|
|
|
$
|
9,614
|
|
Change in unrealized gains/(losses) included in income related to MSRs
held at December 31, |
$
|
(405
|
)
|
|
$
|
(1,826
|
)
|
|
$
|
1,612
|
|
Contractual service fees, late fees and other ancillary fees included in income
|
$
|
2,533
|
|
|
$
|
2,884
|
|
|
$
|
3,309
|
|
Third-party mortgage loans serviced at December 31, (in billions)
|
$
|
677
|
|
|
$
|
756
|
|
|
$
|
822
|
|
Servicer advances, net of an allowance
for uncollectible amounts, at December 31, (in billions)
(d)
|
$
|
6.5
|
|
|
$
|
8.5
|
|
|
$
|
9.6
|
|
(a)
|
For 2014 and 2013, 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.
|
(b)
|
Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.
|
(c)
|
Represents changes in prepayments other than those attributable to changes in market interest rates.
|
(d)
|
Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest, 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.
|
(e)
|
For the year ending December 31, 2014, the negative impact was primarily related to higher capital allocated to the Mortgage Servicing business, which, in turn, resulted in an increase in the OAS. The resulting OAS assumption was consistent with capital and return requirements the Firm believed a market participant would consider, taking into account factors such as the operating risk environment and regulatory and economic capital requirements.
|
276
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Year ended December 31,
(in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
CCB mortgage fees and related income
|
|
|
|
|
|
||||||
Net production revenue
|
$
|
769
|
|
|
$
|
1,190
|
|
|
$
|
3,004
|
|
|
|
|
|
|
|
||||||
Net mortgage servicing revenue:
|
|
|
|
|
|
|
|||||
Operating revenue:
|
|
|
|
|
|
|
|||||
Loan servicing revenue
|
2,776
|
|
|
3,303
|
|
|
3,552
|
|
|||
Changes in MSR asset fair value due to collection/realization of expected cash flows
|
(917
|
)
|
|
(905
|
)
|
|
(1,094
|
)
|
|||
Total operating revenue
|
1,859
|
|
|
2,398
|
|
|
2,458
|
|
|||
Risk management:
|
|
|
|
|
|
|
|||||
Changes in MSR asset fair value
due to market interest rates and other
(a)
|
(160
|
)
|
|
(1,606
|
)
|
|
2,119
|
|
|||
Other changes in MSR asset fair value due to other inputs and assumptions in model
(b)
|
(245
|
)
|
|
(218
|
)
|
|
(511
|
)
|
|||
Change in derivative fair value and other
|
288
|
|
|
1,796
|
|
|
(1,875
|
)
|
|||
Total risk management
|
(117
|
)
|
|
(28
|
)
|
|
(267
|
)
|
|||
Total net mortgage servicing revenue
|
1,742
|
|
|
2,370
|
|
|
2,191
|
|
|||
|
|
|
|
|
|
||||||
Total CCB mortgage fees and related income
|
2,511
|
|
|
3,560
|
|
|
5,195
|
|
|||
|
|
|
|
|
|
||||||
All other
|
2
|
|
|
3
|
|
|
10
|
|
|||
Mortgage fees and related income
|
$
|
2,513
|
|
|
$
|
3,563
|
|
|
$
|
5,205
|
|
(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).
|
December 31,
(in millions, except rates)
|
2015
|
|
2014
|
||||
Weighted-average prepayment speed assumption (“CPR”)
|
9.81
|
%
|
|
9.80
|
%
|
||
Impact on fair value of 10% adverse change
|
$
|
(275
|
)
|
|
$
|
(337
|
)
|
Impact on fair value of 20% adverse change
|
(529
|
)
|
|
(652
|
)
|
||
Weighted-average option adjusted spread
|
9.02
|
%
|
|
9.43
|
%
|
||
Impact on fair value of 100 basis points adverse change
|
$
|
(258
|
)
|
|
$
|
(300
|
)
|
Impact on fair value of 200 basis points adverse change
|
(498
|
)
|
|
(578
|
)
|
JPMorgan Chase & Co./2015 Annual Report
|
|
277
|
December 31, (in millions)
|
2015
|
|
|
2014
|
|
||
U.S. offices
|
|
|
|
||||
Noninterest-bearing
|
$
|
392,721
|
|
|
$
|
437,558
|
|
Interest-bearing
|
|
|
|
||||
Demand
(a)
|
84,088
|
|
|
90,319
|
|
||
Savings
(b)
|
486,043
|
|
|
466,730
|
|
||
Time (included
$10,916
and $7,501 at fair value)
(c)
|
92,873
|
|
|
86,301
|
|
||
Total interest-bearing deposits
|
663,004
|
|
|
643,350
|
|
||
Total deposits in U.S. offices
|
1,055,725
|
|
|
1,080,908
|
|
||
Non-U.S. offices
|
|
|
|
||||
Noninterest-bearing
|
18,921
|
|
|
19,078
|
|
||
Interest-bearing
|
|
|
|
||||
Demand
|
154,773
|
|
|
217,011
|
|
||
Savings
|
2,157
|
|
|
2,673
|
|
||
Time (included
$1,600
and $1,306 at fair value)
(c)
|
48,139
|
|
|
43,757
|
|
||
Total interest-bearing deposits
|
205,069
|
|
|
263,441
|
|
||
Total deposits in non-U.S. offices
|
223,990
|
|
|
282,519
|
|
||
Total deposits
|
$
|
1,279,715
|
|
|
$
|
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.
|
December 31, (in millions)
|
|
2015
|
|
|
2014
|
|
|
||
U.S. offices
|
|
$
|
64,519
|
|
|
$
|
56,983
|
|
|
Non-U.S. offices
|
|
48,091
|
|
|
43,719
|
|
|
||
Total
|
|
$
|
112,610
|
|
|
$
|
100,702
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|||
(in millions)
|
|
U.S.
|
|
Non-U.S.
|
|
Total
|
||||||
2016
|
|
78,246
|
|
|
47,791
|
|
|
126,037
|
|
|||
2017
|
|
2,940
|
|
|
145
|
|
|
3,085
|
|
|||
2018
|
|
2,172
|
|
|
39
|
|
|
2,211
|
|
|||
2019
|
|
1,564
|
|
|
47
|
|
|
1,611
|
|
|||
2020
|
|
1,615
|
|
|
117
|
|
|
1,732
|
|
|||
After 5 years
|
|
6,336
|
|
|
—
|
|
|
6,336
|
|
|||
Total
|
|
$
|
92,873
|
|
|
$
|
48,139
|
|
|
$
|
141,012
|
|
278
|
|
JPMorgan Chase & Co./2015 Annual Report
|
December 31, (in millions)
|
|
2015
|
|
|
2014
|
|
||
Brokerage payables
(a)
|
|
$
|
107,632
|
|
|
$
|
134,467
|
|
Accounts payable and other liabilities
|
|
70,006
|
|
|
72,472
|
|
||
Total
|
|
$
|
177,638
|
|
|
$
|
206,939
|
|
(a)
|
Includes payables to customers, brokers, dealers and clearing organizations, and payables from security purchases that did not settle.
|
By remaining maturity at
December 31,
|
|
2015
|
|
2014
|
||||||||||||||||
(in millions, except rates)
|
|
Under 1 year
|
|
|
1-5 years
|
|
|
After 5 years
|
|
|
Total
|
|
Total
|
|||||||
Parent company
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Senior debt:
|
Fixed rate
|
$
|
12,014
|
|
|
$
|
54,200
|
|
|
$
|
51,544
|
|
|
$
|
117,758
|
|
|
$
|
108,529
|
|
|
Variable rate
|
15,158
|
|
|
23,254
|
|
|
5,766
|
|
|
44,178
|
|
|
42,201
|
|
|||||
|
Interest rates
(a)
|
0.16-7.00%
|
|
0.24-7.25%
|
|
0.31-6.40%
|
|
|
0.16-7.25%
|
|
|
0.18-7.25%
|
|
|||||||
Subordinated debt:
|
Fixed rate
|
$
|
—
|
|
|
$
|
2,292
|
|
|
$
|
13,958
|
|
|
$
|
16,250
|
|
|
$
|
16,645
|
|
|
Variable rate
|
—
|
|
|
1,038
|
|
|
9
|
|
|
1,047
|
|
|
3,452
|
|
|||||
|
Interest rates
(a)
|
—
|
%
|
|
1.06-8.53%
|
|
3.38-8.00%
|
|
|
1.06-8.53%
|
|
|
0.48-8.53%
|
|||||||
|
Subtotal
|
$
|
27,172
|
|
|
$
|
80,784
|
|
|
$
|
71,277
|
|
|
$
|
179,233
|
|
|
$
|
170,827
|
|
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal Home Loan Banks (“FHLB”) advances:
|
Fixed rate
|
$
|
5
|
|
|
$
|
30
|
|
|
$
|
156
|
|
|
$
|
191
|
|
|
$
|
2,204
|
|
|
Variable rate
|
9,700
|
|
|
56,690
|
|
|
5,000
|
|
|
71,390
|
|
|
62,790
|
|
|||||
|
Interest rates
(a)
|
0.37-0.65%
|
|
0.17-0.72%
|
|
0.50-0.70%
|
|
|
0.17-0.72%
|
|
0.11-2.04%
|
|
||||||||
Senior debt:
|
Fixed rate
|
$
|
631
|
|
|
$
|
1,288
|
|
|
$
|
3,631
|
|
|
$
|
5,550
|
|
|
$
|
5,751
|
|
|
Variable rate
|
10,493
|
|
|
7,456
|
|
|
2,639
|
|
|
20,588
|
|
|
20,082
|
|
|||||
|
Interest rates
(a)
|
0.47-1.00%
|
|
0.53-4.61%
|
|
1.30-7.28%
|
|
|
0.47-7.28%
|
|
|
0.26-8.00%
|
||||||||
Subordinated debt:
|
Fixed rate
|
$
|
1,472
|
|
|
$
|
3,647
|
|
|
$
|
1,461
|
|
|
$
|
6,580
|
|
|
$
|
6,928
|
|
|
Variable rate
|
1,150
|
|
|
—
|
|
|
—
|
|
|
1,150
|
|
|
2,362
|
|
|||||
|
Interest rates
(a)
|
0.83-5.88%
|
|
6.00
|
%
|
|
4.38-8.25%
|
|
|
0.83-8.25%
|
|
|
0.57-8.25%
|
|
||||||
|
Subtotal
|
$
|
23,451
|
|
|
$
|
69,111
|
|
|
$
|
12,887
|
|
|
$
|
105,449
|
|
|
$
|
100,117
|
|
Junior subordinated debt:
|
Fixed rate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
717
|
|
|
$
|
717
|
|
|
$
|
2,185
|
|
|
Variable rate
|
—
|
|
|
—
|
|
|
3,252
|
|
|
3,252
|
|
|
3,250
|
|
|||||
|
Interest rates
(a)
|
—
|
%
|
|
—
|
%
|
|
0.83-8.75%
|
|
|
0.83-8.75%
|
|
|
0.73-8.75%
|
|
|||||
|
Subtotal
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,969
|
|
|
$
|
3,969
|
|
|
$
|
5,435
|
|
Total long-term debt
(b)(c)(d)
|
|
$
|
50,623
|
|
|
$
|
149,895
|
|
|
$
|
88,133
|
|
|
$
|
288,651
|
|
(f)(g)
|
$
|
276,379
|
|
Long-term beneficial interests:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Fixed rate
|
$
|
1,674
|
|
|
$
|
10,931
|
|
|
$
|
1,594
|
|
|
$
|
14,199
|
|
|
$
|
13,949
|
|
|
Variable rate
|
3,393
|
|
|
10,642
|
|
|
2,323
|
|
|
16,358
|
|
|
21,418
|
|
|||||
|
Interest rates
|
0.45-5.16%
|
|
0.37-5.23%
|
|
0.00-15.94%
|
|
|
0.00-15.94%
|
|
0.05-15.93%
|
|||||||||
Total long-term beneficial interests
(e)
|
|
$
|
5,067
|
|
|
$
|
21,573
|
|
|
$
|
3,917
|
|
|
$
|
30,557
|
|
|
$
|
35,367
|
|
(a)
|
The interest rates shown are the range of contractual rates in effect at year-end, including non-U.S. dollar fixed- and variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The use of these derivative instruments modifies the Firm’s exposure to the contractual interest rates disclosed in the table above. Including the effects of the hedge accounting derivatives, the range of modified rates in effect at
December 31, 2015
, for total long-term debt was
(0.19)%
to
8.88%
, versus the contractual range of
0.16%
to
8.75%
presented in the table above. The interest rate ranges shown exclude structured notes accounted for at fair value.
|
(b)
|
Included long-term debt of
$76.6 billion
and
$69.2 billion
secured by assets totaling
$171.6 billion
and
$156.7 billion
at
December 31, 2015
and
2014
, respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
279
|
(c)
|
Included
$33.1 billion
and
$30.2 billion
of long-term debt accounted for at fair value at
December 31, 2015
and
2014
, respectively.
|
(d)
|
Included
$5.5 billion
and
$2.9 billion
of outstanding zero-coupon notes at
December 31, 2015
and
2014
, respectively. The aggregate principal amount of these notes at their respective maturities is
$16.2 billion
and
$7.5 billion
, respectively. The aggregate principal amount reflects the contractual principal payment at maturity, which may exceed the contractual principal payment at the Firm’s next call date, if applicable.
|
(e)
|
Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included
$787 million
and
$2.2 billion
accounted for at fair value at
December 31, 2015
and
2014
, respectively. Excluded short-term commercial paper and other short-term beneficial interests of
$11.3 billion
and
$17.0 billion
at
December 31, 2015
and
2014
, respectively.
|
(f)
|
At
December 31, 2015
, long-term debt in the aggregate of
$39.1 billion
was redeemable at the option of JPMorgan Chase, in whole or in part, prior to maturity, based on the terms specified in the respective instruments.
|
(g)
|
The aggregate carrying values of debt that matures in each of the five years subsequent to 2015 is
$50.6 billion
in 2016,
$49.5 billion
in 2017,
$39.2 billion
in 2018,
$30.4 billion
in 2019 and
$30.7 billion
in 2020.
|
280
|
|
JPMorgan Chase & Co./2015 Annual Report
|
December 31, 2015
(in millions)
|
|
Amount of trust preferred securities issued by trust
(a)
|
|
Principal amount of debenture issued to trust
(b)
|
|
Issue date
|
|
Stated maturity of trust preferred securities and debentures
|
|
Earliest redemption date
|
|
Interest rate of trust preferred securities and debentures
|
|
Interest payment/distribution dates
|
||||
BANK ONE Capital III
|
|
$
|
474
|
|
|
$
|
717
|
|
|
2000
|
|
2030
|
|
Any time
|
|
8.75%
|
|
Semiannually
|
Chase Capital II
|
|
483
|
|
|
496
|
|
|
1997
|
|
2027
|
|
Any time
|
|
LIBOR + 0.50%
|
|
Quarterly
|
||
Chase Capital III
|
|
296
|
|
|
304
|
|
|
1997
|
|
2027
|
|
Any time
|
|
LIBOR + 0.55%
|
|
Quarterly
|
||
Chase Capital VI
|
|
242
|
|
|
248
|
|
|
1998
|
|
2028
|
|
Any time
|
|
LIBOR + 0.625%
|
|
Quarterly
|
||
First Chicago NBD Capital I
|
|
249
|
|
|
256
|
|
|
1997
|
|
2027
|
|
Any time
|
|
LIBOR + 0.55%
|
|
Quarterly
|
||
J.P. Morgan Chase Capital XIII
|
|
466
|
|
|
477
|
|
|
2004
|
|
2034
|
|
Any time
|
|
LIBOR + 0.95%
|
|
Quarterly
|
||
JPMorgan Chase Capital XXI
|
|
836
|
|
|
832
|
|
|
2007
|
|
2037
|
|
Any time
|
|
LIBOR + 0.95%
|
|
Quarterly
|
||
JPMorgan Chase Capital XXIII
|
|
644
|
|
|
639
|
|
|
2007
|
|
2047
|
|
Any time
|
|
LIBOR + 1.00%
|
|
Quarterly
|
||
Total
|
|
$
|
3,690
|
|
|
$
|
3,969
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Represents the amount of trust preferred securities issued to the public by each trust, including unamortized original-issue discount.
|
(b)
|
Represents the principal amount of JPMorgan Chase debentures issued to each trust, including unamortized original-issue discount. The principal amount of debentures issued to the trusts includes the impact of hedging and purchase accounting fair value adjustments that were recorded on the Firm’s Consolidated Financial Statements.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
281
|
|
Shares at December 31,
(a)
|
|
Carrying value
(in millions) at December 31, |
|
Issue date
|
Contractual rate
in effect at December 31, 2015 |
Earliest redemption date
|
Date at which dividend rate becomes floating
|
Floating annual
rate of three-month LIBOR plus: |
|||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||||||
Fixed-rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Series O
|
125,750
|
|
125,750
|
|
|
$
|
1,258
|
|
$
|
1,258
|
|
|
8/27/2012
|
5.500
|
%
|
9/1/2017
|
NA
|
NA
|
|
|
Series P
|
90,000
|
|
90,000
|
|
|
900
|
|
900
|
|
|
2/5/2013
|
5.450
|
|
3/1/2018
|
NA
|
NA
|
|
|||
Series T
|
92,500
|
|
92,500
|
|
|
925
|
|
925
|
|
|
1/30/2014
|
6.700
|
|
3/1/2019
|
NA
|
NA
|
|
|||
Series W
|
88,000
|
|
88,000
|
|
|
880
|
|
880
|
|
|
6/23/2014
|
6.300
|
|
9/1/2019
|
NA
|
NA
|
|
|||
Series Y
|
143,000
|
|
—
|
|
|
1,430
|
|
—
|
|
|
2/12/2015
|
6.125
|
|
3/1/2020
|
NA
|
NA
|
|
|||
Series AA
|
142,500
|
|
—
|
|
|
1,425
|
|
—
|
|
|
6/4/2015
|
6.100
|
|
9/1/2020
|
NA
|
NA
|
|
|||
Series BB
|
115,000
|
|
—
|
|
|
1,150
|
|
—
|
|
|
7/29/2015
|
6.150
|
|
9/1/2020
|
NA
|
NA
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed-to-floating-rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Series I
|
600,000
|
|
600,000
|
|
|
6,000
|
|
6,000
|
|
|
4/23/2008
|
7.900
|
%
|
4/30/2018
|
4/30/2018
|
LIBOR + 3.47
|
%
|
|||
Series Q
|
150,000
|
|
150,000
|
|
|
1,500
|
|
1,500
|
|
|
4/23/2013
|
5.150
|
|
5/1/2023
|
5/1/2023
|
LIBOR + 3.25
|
|
|||
Series R
|
150,000
|
|
150,000
|
|
|
1,500
|
|
1,500
|
|
|
7/29/2013
|
6.000
|
|
8/1/2023
|
8/1/2023
|
LIBOR + 3.30
|
|
|||
Series S
|
200,000
|
|
200,000
|
|
|
2,000
|
|
2,000
|
|
|
1/22/2014
|
6.750
|
|
2/1/2024
|
2/1/2024
|
LIBOR + 3.78
|
|
|||
Series U
|
100,000
|
|
100,000
|
|
|
1,000
|
|
1,000
|
|
|
3/10/2014
|
6.125
|
|
4/30/2024
|
4/30/2024
|
LIBOR + 3.33
|
|
|||
Series V
|
250,000
|
|
250,000
|
|
|
2,500
|
|
2,500
|
|
|
6/9/2014
|
5.000
|
|
7/1/2019
|
7/1/2019
|
LIBOR + 3.32
|
|
|||
Series X
|
160,000
|
|
160,000
|
|
|
1,600
|
|
1,600
|
|
|
9/23/2014
|
6.100
|
|
10/1/2024
|
10/1/2024
|
LIBOR + 3.33
|
|
|||
Series Z
|
200,000
|
|
—
|
|
|
2,000
|
|
—
|
|
|
4/21/2015
|
5.300
|
|
5/1/2020
|
5/1/2020
|
LIBOR + 3.80
|
|
|||
Total preferred stock
|
2,606,750
|
|
2,006,250
|
|
|
$
|
26,068
|
|
$
|
20,063
|
|
|
|
|
|
|
|
|
(a)
|
Represented by depositary shares.
|
Year ended December 31,
(in millions)
|
2015
|
|
2014
|
|
2013
|
|
Total issued – balance at January 1 and December 31
|
4,104.9
|
|
4,104.9
|
|
4,104.9
|
|
Treasury – balance at January 1
|
(390.1
|
)
|
(348.8
|
)
|
(300.9
|
)
|
Purchase of treasury stock
|
(89.8
|
)
|
(82.3
|
)
|
(96.1
|
)
|
Issued from treasury:
|
|
|
|
|||
Employee benefits and compensation plans
|
32.8
|
|
39.8
|
|
47.1
|
|
Issuance of shares for warrant exercise
|
4.7
|
|
—
|
|
—
|
|
Employee stock purchase plans
|
1.0
|
|
1.2
|
|
1.1
|
|
Total issued from treasury
|
38.5
|
|
41.0
|
|
48.2
|
|
Total treasury – balance at December 31
|
(441.4
|
)
|
(390.1
|
)
|
(348.8
|
)
|
Outstanding at December 31
|
3,663.5
|
|
3,714.8
|
|
3,756.1
|
|
282
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Year ended December 31, (in millions)
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Total number of shares of common stock repurchased
|
|
89.8
|
|
|
82.3
|
|
|
96.1
|
|
|||
Aggregate purchase price of common stock repurchases
|
|
$
|
5,616
|
|
|
$
|
4,760
|
|
|
$
|
4,789
|
|
Year ended December 31,
(in millions,
except per share amounts)
|
2015
|
2014
|
2013
|
||||||
Basic earnings per share
|
|
|
|
||||||
Net income
|
$
|
24,442
|
|
$
|
21,745
|
|
$
|
17,886
|
|
Less: Preferred stock dividends
|
1,515
|
|
1,125
|
|
805
|
|
|||
Net income applicable to common equity
|
22,927
|
|
20,620
|
|
17,081
|
|
|||
Less: Dividends and undistributed earnings allocated to participating securities
|
521
|
|
543
|
|
524
|
|
|||
Net income applicable to common stockholders
|
$
|
22,406
|
|
$
|
20,077
|
|
$
|
16,557
|
|
|
|
|
|
||||||
Total weighted-average basic shares outstanding
|
3,700.4
|
|
3,763.5
|
|
3,782.4
|
|
|||
Net income per share
|
$
|
6.05
|
|
$
|
5.33
|
|
$
|
4.38
|
|
|
|
|
|
||||||
Diluted earnings per share
|
|
|
|
||||||
Net income applicable to common stockholders
|
$
|
22,406
|
|
$
|
20,077
|
|
$
|
16,557
|
|
|
|
|
|
||||||
Total weighted-average basic shares outstanding
|
3,700.4
|
|
3,763.5
|
|
3,782.4
|
|
|||
Add: Employee stock options, SARs and warrants
(a)
|
32.4
|
|
34.0
|
|
32.5
|
|
|||
Total weighted-average diluted shares outstanding
(b)
|
3,732.8
|
|
3,797.5
|
|
3,814.9
|
|
|||
Net income per share
|
$
|
6.00
|
|
$
|
5.29
|
|
$
|
4.34
|
|
(a)
|
Excluded from the computation of diluted EPS (due to the antidilutive effect) were certain options issued under employee benefit plans. The aggregate number of shares issuable upon the exercise of such options was not material for the year ended
December 31, 2015
, and
1 million
and
6 million
for the years ended
December 31, 2014
and
2013
, respectively.
|
(b)
|
Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
283
|
Year ended December 31,
|
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 December 31, 2012
|
|
$
|
6,868
|
|
|
|
|
$
|
(95
|
)
|
|
|
|
$
|
120
|
|
|
|
|
$
|
(2,791
|
)
|
|
|
|
$
|
4,102
|
|
|
Net change
|
|
(4,070
|
)
|
|
|
|
(41
|
)
|
|
|
|
(259
|
)
|
|
|
|
1,467
|
|
|
|
|
(2,903
|
)
|
|
|||||
Balance at December 31, 2013
|
|
$
|
2,798
|
|
|
|
|
$
|
(136
|
)
|
|
|
|
$
|
(139
|
)
|
|
|
|
$
|
(1,324
|
)
|
|
|
|
$
|
1,199
|
|
|
Net change
|
|
1,975
|
|
|
|
|
(11
|
)
|
|
|
|
44
|
|
|
|
|
(1,018
|
)
|
|
|
|
990
|
|
|
|||||
Balance at December 31, 2014
|
|
$
|
4,773
|
|
|
|
|
$
|
(147
|
)
|
|
|
|
$
|
(95
|
)
|
|
|
|
$
|
(2,342
|
)
|
|
|
|
$
|
2,189
|
|
|
Net change
|
|
(2,144
|
)
|
|
|
|
(15
|
)
|
|
|
|
51
|
|
|
|
|
111
|
|
|
|
|
(1,997
|
)
|
|
|||||
Balance at December 31, 2015
|
|
$
|
2,629
|
|
|
|
|
$
|
(162
|
)
|
|
|
|
$
|
(44
|
)
|
|
|
|
$
|
(2,231
|
)
|
|
|
|
$
|
192
|
|
|
(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 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
|
|
2013
|
||||||||||||||||||||||||||||||
Year ended December 31, (in millions)
|
Pretax
|
|
Tax effect
|
|
After-tax
|
|
Pretax
|
|
Tax effect
|
|
After-tax
|
|
Pretax
|
|
Tax effect
|
|
After-tax
|
||||||||||||||||||
Unrealized gains/(losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net unrealized gains/(losses) arising during the period
|
$
|
(3,315
|
)
|
|
$
|
1,297
|
|
|
$
|
(2,018
|
)
|
|
$
|
3,193
|
|
|
$
|
(1,170
|
)
|
|
$
|
2,023
|
|
|
$
|
(5,987
|
)
|
|
$
|
2,323
|
|
|
$
|
(3,664
|
)
|
Reclassification adjustment for realized (gains)/losses included in net income
(a)
|
(202
|
)
|
|
76
|
|
|
(126
|
)
|
|
(77
|
)
|
|
29
|
|
|
(48
|
)
|
|
(667
|
)
|
|
261
|
|
|
(406
|
)
|
|||||||||
Net change
|
(3,517
|
)
|
|
1,373
|
|
|
(2,144
|
)
|
|
3,116
|
|
|
(1,141
|
)
|
|
1,975
|
|
|
(6,654
|
)
|
|
2,584
|
|
|
(4,070
|
)
|
|||||||||
Translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Translation
(b)
|
(1,876
|
)
|
|
682
|
|
|
(1,194
|
)
|
|
(1,638
|
)
|
|
588
|
|
|
(1,050
|
)
|
|
(807
|
)
|
|
295
|
|
|
(512
|
)
|
|||||||||
Hedges
(b)
|
1,885
|
|
|
(706
|
)
|
|
1,179
|
|
|
1,698
|
|
|
(659
|
)
|
|
1,039
|
|
|
773
|
|
|
(302
|
)
|
|
471
|
|
|||||||||
Net change
|
9
|
|
|
(24
|
)
|
|
(15
|
)
|
|
60
|
|
|
(71
|
)
|
|
(11
|
)
|
|
(34
|
)
|
|
(7
|
)
|
|
(41
|
)
|
|||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net unrealized gains/(losses) arising during the period
|
(97
|
)
|
|
35
|
|
|
(62
|
)
|
|
98
|
|
|
(39
|
)
|
|
59
|
|
|
(525
|
)
|
|
206
|
|
|
(319
|
)
|
|||||||||
Reclassification adjustment for realized (gains)/losses included in net income
(c)(e)
|
180
|
|
|
(67
|
)
|
|
113
|
|
|
(24
|
)
|
|
9
|
|
|
(15
|
)
|
|
101
|
|
|
(41
|
)
|
|
60
|
|
|||||||||
Net change
|
83
|
|
|
(32
|
)
|
|
51
|
|
|
74
|
|
|
(30
|
)
|
|
44
|
|
|
(424
|
)
|
|
165
|
|
|
(259
|
)
|
|||||||||
Defined benefit pension and OPEB plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Prior service credits arising during the period
|
—
|
|
|
—
|
|
|
—
|
|
|
(53
|
)
|
|
21
|
|
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net gains/(losses) arising during the period
|
29
|
|
|
(47
|
)
|
|
(18
|
)
|
|
(1,697
|
)
|
|
688
|
|
|
(1,009
|
)
|
|
2,055
|
|
|
(750
|
)
|
|
1,305
|
|
|||||||||
Reclassification adjustments included in
net income
(d)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Amortization of net loss
|
282
|
|
|
(106
|
)
|
|
176
|
|
|
72
|
|
|
(29
|
)
|
|
43
|
|
|
321
|
|
|
(124
|
)
|
|
197
|
|
|||||||||
Prior service costs/(credits)
|
(36
|
)
|
|
14
|
|
|
(22
|
)
|
|
(44
|
)
|
|
17
|
|
|
(27
|
)
|
|
(43
|
)
|
|
17
|
|
|
(26
|
)
|
|||||||||
Foreign exchange and other
|
33
|
|
|
(58
|
)
|
|
(25
|
)
|
|
39
|
|
|
(32
|
)
|
|
7
|
|
|
(14
|
)
|
|
5
|
|
|
(9
|
)
|
|||||||||
Net change
|
308
|
|
|
(197
|
)
|
|
111
|
|
|
(1,683
|
)
|
|
665
|
|
|
(1,018
|
)
|
|
2,319
|
|
|
(852
|
)
|
|
1,467
|
|
|||||||||
Total other comprehensive income/(loss)
|
$
|
(3,117
|
)
|
|
$
|
1,120
|
|
|
$
|
(1,997
|
)
|
|
$
|
1,567
|
|
|
$
|
(577
|
)
|
|
$
|
990
|
|
|
$
|
(4,793
|
)
|
|
$
|
1,890
|
|
|
$
|
(2,903
|
)
|
(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.
|
(d)
|
The pretax amount is reported in compensation expense in the Consolidated statements of income.
|
(e)
|
In 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 6.
|
284
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Effective tax rate
|
|
|
|
|
|
|
|||
Year ended December 31,
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
Statutory U.S. federal tax rate
|
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Increase/(decrease) in tax rate resulting from:
|
|
|
|
|
|
|
|||
U.S. state and local income taxes, net of U.S. federal income tax benefit
|
|
1.5
|
|
|
2.7
|
|
|
2.2
|
|
Tax-exempt income
|
|
(3.3
|
)
|
|
(3.1
|
)
|
|
(3.0
|
)
|
Non-U.S. subsidiary earnings
(a)
|
|
(3.9
|
)
|
|
(2.0
|
)
|
|
(4.8
|
)
|
Business tax credits
|
|
(3.7
|
)
|
|
(3.3
|
)
|
|
(3.4
|
)
|
Nondeductible legal expense
|
|
0.8
|
|
|
2.3
|
|
|
7.8
|
|
Tax audit resolutions
|
|
(5.7
|
)
|
|
(1.4
|
)
|
|
(0.6
|
)
|
Other, net
|
|
(0.3
|
)
|
|
(1.0
|
)
|
|
(0.3
|
)
|
Effective tax rate
|
|
20.4
|
%
|
|
29.2
|
%
|
|
32.9
|
%
|
(a)
|
Predominantly includes earnings of U.K. subsidiaries that are deemed to be reinvested indefinitely.
|
Income tax expense/(benefit)
|
||||||||||||
Year ended December 31,
(in millions)
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Current income tax expense/(benefit)
|
|
|
|
|
|
|
||||||
U.S. federal
|
|
$
|
3,160
|
|
|
$
|
2,382
|
|
|
$
|
(654
|
)
|
Non-U.S.
|
|
1,220
|
|
|
1,353
|
|
|
1,308
|
|
|||
U.S. state and local
|
|
547
|
|
|
857
|
|
|
(4
|
)
|
|||
Total current income tax expense/(benefit)
|
|
4,927
|
|
|
4,592
|
|
|
650
|
|
|||
Deferred income tax expense/(benefit)
|
|
|
|
|
|
|
||||||
U.S. federal
|
|
1,213
|
|
|
3,890
|
|
|
7,216
|
|
|||
Non-U.S.
|
|
(95
|
)
|
|
71
|
|
|
10
|
|
|||
U.S. state and local
|
|
215
|
|
|
401
|
|
|
913
|
|
|||
Total deferred income tax
expense/(benefit)
|
|
1,333
|
|
|
4,362
|
|
|
8,139
|
|
|||
Total income tax expense
|
|
$
|
6,260
|
|
|
$
|
8,954
|
|
|
$
|
8,789
|
|
Year ended December 31,
(in millions)
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
U.S.
|
|
$
|
23,191
|
|
|
$
|
23,422
|
|
|
$
|
17,990
|
|
Non-U.S.
(a)
|
|
7,511
|
|
|
7,277
|
|
|
8,685
|
|
|||
Income before income tax expense
|
|
$
|
30,702
|
|
|
$
|
30,699
|
|
|
$
|
26,675
|
|
(a)
|
For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
285
|
December 31, (in millions)
|
|
2015
|
|
|
2014
|
|
||
Deferred tax assets
|
|
|
|
|
||||
Allowance for loan losses
|
|
$
|
5,343
|
|
|
$
|
5,756
|
|
Employee benefits
|
|
2,972
|
|
|
3,378
|
|
||
Accrued expenses and other
|
|
7,299
|
|
|
8,637
|
|
||
Non-U.S. operations
|
|
5,365
|
|
|
5,106
|
|
||
Tax attribute carryforwards
|
|
2,602
|
|
|
570
|
|
||
Gross deferred tax assets
|
|
23,581
|
|
|
23,447
|
|
||
Valuation allowance
|
|
(735
|
)
|
|
(820
|
)
|
||
Deferred tax assets, net of valuation allowance
|
|
$
|
22,846
|
|
|
$
|
22,627
|
|
Deferred tax liabilities
|
|
|
|
|
||||
Depreciation and amortization
|
|
$
|
3,167
|
|
|
$
|
3,073
|
|
Mortgage servicing rights, net of hedges
|
|
4,968
|
|
|
5,533
|
|
||
Leasing transactions
|
|
3,042
|
|
|
2,495
|
|
||
Non-U.S. operations
|
|
4,285
|
|
|
4,444
|
|
||
Other, net
|
|
4,419
|
|
|
5,392
|
|
||
Gross deferred tax liabilities
|
|
19,881
|
|
|
20,937
|
|
||
Net deferred tax assets
|
|
$
|
2,965
|
|
|
$
|
1,690
|
|
286
|
|
JPMorgan Chase & Co./2015 Annual Report
|
Year ended December 31,
(in millions)
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Balance at January 1,
|
|
$
|
4,911
|
|
|
$
|
5,535
|
|
|
$
|
7,158
|
|
Increases based on tax positions related to the current period
|
|
408
|
|
|
810
|
|
|
542
|
|
|||
Increases based on tax positions related to prior periods
|
|
1,028
|
|
|
477
|
|
|
88
|
|
|||
Decreases based on tax positions related to prior periods
|
|
(2,646
|
)
|
|
(1,902
|
)
|
|
(2,200
|
)
|
|||
Decreases related to cash settlements with taxing authorities
|
|
(204
|
)
|
|
(9
|
)
|
|
(53
|
)
|
|||
Balance at December 31,
|
|
$
|
3,497
|
|
|
$
|
4,911
|
|
|
$
|
5,535
|
|
December 31, 2015
|
|
Periods under examination
|
|
Status
|
JPMorgan Chase – U.S.
|
|
2003 – 2005
|
|
Field examination completed; at Appellate level
|
JPMorgan Chase – U.S.
|
|
2006 – 2010
|
|
Field examination completed, JPMorgan Chase filed amended returns and intends to appeal
|
JPMorgan Chase – U.S.
|
|
2011 – 2013
|
|
Field Examination
|
JPMorgan Chase – New York State
|
|
2008 – 2011
|
|
Field Examination
|
JPMorgan Chase – California
|
|
2011 – 2012
|
|
Field Examination
|
JPMorgan Chase – U.K.
|
|
2006 – 2012
|
|
Field examination of certain select entities
|
JPMorgan Chase & Co./2015 Annual Report
|
|
287
|
288
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
JPMorgan Chase & Co.
(f)
|
||||||||||||||
|
Basel III Standardized Transitional
|
|
Basel III Advanced Transitional
|
||||||||||||
(in millions,
except ratios)
|
Dec 31,
2015 |
|
Dec 31,
2014 |
|
Dec 31,
2015 |
|
Dec 31,
2014 |
||||||||
Regulatory capital
|
|
|
|
|
|
|
|
|
|
|
|||||
CET1 capital
|
$
|
175,398
|
|
|
$
|
164,426
|
|
|
$
|
175,398
|
|
|
$
|
164,426
|
|
Tier 1 capital
(a)
|
200,482
|
|
|
186,263
|
|
|
200,482
|
|
|
186,263
|
|
||||
Total capital
|
234,413
|
|
|
221,117
|
|
|
224,616
|
|
|
210,576
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Risk-weighted
(b)
|
1,465,262
|
|
|
1,472,602
|
|
|
1,485,336
|
|
|
1,608,240
|
|
||||
Adjusted average
(c)
|
2,361,177
|
|
|
2,464,915
|
|
|
2,361,177
|
|
|
2,464,915
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Capital ratios
(d)
|
|
|
|
|
|
|
|
|
|
|
|
||||
CET1
|
12.0
|
%
|
|
11.2
|
%
|
|
11.8
|
%
|
|
10.2
|
%
|
||||
Tier 1
(a)
|
13.7
|
|
|
12.6
|
|
|
13.5
|
|
|
11.6
|
|
||||
Total
|
16.0
|
|
|
15.0
|
|
|
15.1
|
|
|
13.1
|
|
||||
Tier 1 leverage
(e)
|
8.5
|
|
|
7.6
|
|
|
8.5
|
|
|
7.6
|
|
|
JPMorgan Chase Bank, N.A.
(f)
|
||||||||||||||
|
Basel III Standardized Transitional
|
|
Basel III Advanced Transitional
|
||||||||||||
(in millions,
except ratios)
|
Dec 31,
2015 |
|
Dec 31,
2014 |
|
Dec 31,
2015 |
|
Dec 31,
2014 |
||||||||
Regulatory capital
|
|
|
|
|
|
|
|
|
|
|
|||||
CET1 capital
|
$
|
168,857
|
|
|
$
|
156,567
|
|
|
$
|
168,857
|
|
|
$
|
156,567
|
|
Tier 1 capital
(a)
|
169,222
|
|
|
156,891
|
|
|
169,222
|
|
|
156,891
|
|
||||
Total capital
|
183,262
|
|
|
173,322
|
|
|
176,423
|
|
|
166,326
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|||||
Risk-weighted
(b)
|
1,264,056
|
|
|
1,230,358
|
|
|
1,249,607
|
|
|
1,330,175
|
|
||||
Adjusted average
(c)
|
1,913,448
|
|
|
1,968,131
|
|
|
1,913,448
|
|
|
1,968,131
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||
Capital ratios
(d)
|
|
|
|
|
|
|
|
|
|
|
|||||
CET1
|
13.4
|
%
|
|
12.7
|
%
|
|
13.5
|
%
|
|
11.8
|
%
|
||||
Tier 1
(a)
|
13.4
|
|
|
12.8
|
|
|
13.5
|
|
|
11.8
|
|
||||
Total
|
14.5
|
|
|
14.1
|
|
|
14.1
|
|
|
12.5
|
|
||||
Tier 1 leverage
(e)
|
8.8
|
|
|
8.0
|
|
|
8.8
|
|
|
8.0
|
|
|
Chase Bank USA, N.A.
(f)
|
||||||||||||||
|
Basel III Standardized Transitional
|
|
Basel III Advanced Transitional
|
||||||||||||
(in millions,
except ratios)
|
Dec 31,
2015 |
|
Dec 31,
2014 |
|
Dec 31,
2015 |
|
Dec 31,
2014 |
||||||||
Regulatory capital
|
|
|
|
|
|
|
|
||||||||
CET1 capital
|
$
|
15,419
|
|
|
$
|
14,556
|
|
|
$
|
15,419
|
|
|
$
|
14,556
|
|
Tier 1 capital
(a)
|
15,419
|
|
|
14,556
|
|
|
15,419
|
|
|
14,556
|
|
||||
Total capital
|
21,418
|
|
|
20,517
|
|
|
20,069
|
|
|
19,206
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Risk-weighted
(b)
|
105,807
|
|
|
103,468
|
|
|
181,775
|
|
|
157,565
|
|
||||
Adjusted average
(c)
|
134,152
|
|
|
128,111
|
|
|
134,152
|
|
|
128,111
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Capital ratios
(d)
|
|
|
|
|
|
|
|
||||||||
CET1
|
14.6
|
%
|
|
14.1
|
%
|
|
8.5
|
%
|
|
9.2
|
%
|
||||
Tier 1
(a)
|
14.6
|
|
|
14.1
|
|
|
8.5
|
|
|
9.2
|
|
||||
Total
|
20.2
|
|
|
19.8
|
|
|
11.0
|
|
|
12.2
|
|
||||
Tier 1 leverage
(e)
|
11.5
|
|
|
11.4
|
|
|
11.5
|
|
|
11.4
|
|
(a)
|
At
December 31, 2015
, trust preferred securities included in Basel III Tier 1 capital were
$992 million
and
$420 million
for
JPMorgan Chase
and
JPMorgan Chase Bank, N.A., respectively. At
December 31, 2015
Chase Bank USA, N.A. had
no
trust preferred securities.
|
(b)
|
Effective January 1, 2015, the Basel III Standardized RWA is calculated under the Basel III definition of the Standardized approach. Prior periods were based on Basel I (inclusive of Basel 2.5).
|
(c)
|
Adjusted average assets, for purposes of calculating the Tier 1 leverage ratio, includes total quarterly average assets adjusted for unrealized gains/(losses) on securities, less deductions for goodwill and other intangible assets, defined benefit pension plan assets, and deferred tax assets related to net operating loss carryforwards.
|
(d)
|
For each of the risk-based capital ratios, 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 (the “Collins Floor”), as required by the Collins Amendment of the Dodd-Frank Act.
|
(e)
|
The Tier 1 leverage ratio is not a risk-based measure of capital. This ratio is calculated by dividing Tier 1 capital by adjusted average assets.
|
(f)
|
Asset and capital amounts for
JPMorgan Chase
’s banking subsidiaries reflect intercompany transactions; whereas the respective amounts for
JPMorgan Chase
reflect the elimination of intercompany transactions.
|
Note:
|
Rating agencies allow measures of capital to be adjusted upward for deferred tax liabilities, which have resulted from both non-taxable business combinations and from tax-deductible goodwill. The Firm had deferred tax liabilities resulting from non-taxable business combinations of
$105 million
and
$130 million
at
December 31, 2015
, and 2014, respectively; and deferred tax liabilities resulting from tax-deductible goodwill of
$3.0 billion
and
$2.7 billion
at
December 31, 2015
, and 2014, respectively.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
289
|
|
Minimum capital ratios
(a)
|
|
Well-capitalized ratios
|
|||||
|
|
BHC
(b)
|
|
IDI
(c)
|
||||
Capital ratios
|
|
|
|
|
|
|||
CET1
|
4.5
|
%
|
|
—
|
%
|
|
6.5
|
%
|
Tier 1
|
6.0
|
|
|
6.0
|
|
|
8.0
|
|
Total
|
8.0
|
|
|
10.0
|
|
|
10.0
|
|
Tier 1 leverage
|
4.0
|
|
|
—
|
|
|
5.0
|
|
(a)
|
As defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and its national bank subsidiaries are subject.
|
(b)
|
Represents requirements for bank holding companies pursuant to regulations issued by the Federal Reserve.
|
(c)
|
Represents requirements for bank subsidiaries pursuant to regulations issued under the FDIC Improvement Act.
|
290
|
|
JPMorgan Chase & Co./2015 Annual Report
|
(a)
|
Includes certain commitments to purchase loans from correspondents.
|
(b)
|
Predominantly all consumer lending-related commitments are in the U.S.
|
(c)
|
At
December 31, 2015
and
2014
, reflects the contractual amount net of risk participations totaling
$385 million
and
$243 million
, respectively, for other unfunded commitments to extend credit;
$11.2 billion
and
$13.0 billion
, respectively, for standby letters of credit and other financial guarantees; and
$341 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
December 31, 2015
and
2014
, included credit enhancements and bond and commercial paper liquidity commitments to U.S. states and municipalities, hospitals and other nonprofit entities of
$12.3 billion
and
$14.8 billion
, respectively, within other unfunded commitments to extend credit; and
$9.6 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; see Note 16.
|
(e)
|
Effective in 2015, commitments to issue standby letters of credit, including those that could be issued under multipurpose facilities, are presented as other unfunded commitments to extend credit. Previously, such commitments were presented as standby letters of credit and other financial guarantees. At December 31, 2014, these commitments were
$45.6 billion
. Prior period amounts have been revised to conform with current period presentation.
|
(f)
|
At
December 31, 2015
and
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
December 31, 2015
and
2014
, collateral held by the Firm in support of securities lending indemnification agreements was
$190.6 billion
and
$177.1 billion
, respectively. Securities lending collateral consist of 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
December 31, 2015
and
2014
, included unfunded commitments of
$50 million
and
$147 million
, respectively, to third-party private equity funds; and
$871 million
and
$961 million
, respectively, to other equity investments. These commitments included
$73 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
December 31, 2015
and
2014
, included letters of credit hedged by derivative transactions and managed on a market risk basis of
$4.6 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.
|
JPMorgan Chase & Co./2015 Annual Report
|
|
291
|
|
2015
|
|
2014
|
||||||||||||
December 31,
(in millions)
|
Standby letters of
credit and other financial guarantees (b) |
|
Other letters
of credit
|
|
Standby letters of
credit and other financial guarantees (b) |
|
Other letters
of credit
|
||||||||
Investment-grade
(a)
|
$
|
31,751
|
|
|
$
|
3,290
|
|
|
$
|
37,709
|
|
|
$
|
3,476
|
|
Noninvestment-grade
(a)
|
7,382
|
|
|
651
|
|
|
6,563
|
|
|
855
|
|
||||
Total contractual amount
|
$
|
39,133
|
|
|
$
|
3,941
|
|
|
$
|
44,272
|
|
|
$
|
4,331
|
|
Allowance for lending-related commitments
|
$
|
121
|
|
|
$
|
2
|
|
|
$
|
117
|
|
|
$
|
1
|
|
Commitments with collateral
|
18,825
|
|
|
996
|
|
|
20,750
|
|
|
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.
|
(b)
|
Effective in 2015, commitments to issue standby letters of credit, including those that could be issued under multipurpose facilities, are presented as other unfunded commitments to extend credit. Previously, such commitments were presented as standby letters of credit and other financial guarantees. At December 31, 2014, these commitments were
$45.6 billion
. Prior period amounts have been revised to conform with current period presentation.
|
292
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
293
|
294
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
295
|
Year ended December 31, (in millions)
|
|
||
2016
|
$
|
1,668
|
|
2017
|
1,647
|
|
|
2018
|
1,447
|
|
|
2019
|
1,263
|
|
|
2020
|
1,125
|
|
|
After 2020
|
4,679
|
|
|
Total minimum payments required
|
11,829
|
|
|
Less: Sublease rentals under noncancelable subleases
|
(1,889
|
)
|
|
Net minimum payment required
|
$
|
9,940
|
|
Year ended December 31,
|
|
|
|
|
|
|
||||||
(in millions)
|
|
2015
|
|
2014
|
|
2013
|
||||||
Gross rental expense
|
|
$
|
2,015
|
|
|
$
|
2,255
|
|
|
$
|
2,187
|
|
Sublease rental income
|
|
(411
|
)
|
|
(383
|
)
|
|
(341
|
)
|
|||
Net rental expense
|
|
$
|
1,604
|
|
|
$
|
1,872
|
|
|
$
|
1,846
|
|
December 31, (in billions)
|
|
2015
|
|
2014
|
||||
Securities
|
|
$
|
124.3
|
|
|
$
|
118.7
|
|
Loans
|
|
298.6
|
|
|
248.2
|
|
||
Trading assets and other
|
|
144.9
|
|
|
169.0
|
|
||
Total assets pledged
|
|
$
|
567.8
|
|
|
$
|
535.9
|
|
296
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
297
|
298
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
299
|
300
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
301
|
302
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
303
|
As of or for the year ended December 31, (in millions)
|
|
Revenue
(b)
|
|
Expense
(c)
|
|
Income before income tax
expense
|
|
Net income
|
|
Total assets
|
|
|
|||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Europe/Middle East and Africa
|
|
$
|
14,206
|
|
|
$
|
8,871
|
|
|
$
|
5,335
|
|
|
$
|
4,158
|
|
|
$
|
347,647
|
|
(d)
|
Asia and Pacific
|
|
6,151
|
|
|
4,241
|
|
|
1,910
|
|
|
1,285
|
|
|
138,747
|
|
|
|||||
Latin America and the Caribbean
|
|
1,923
|
|
|
1,508
|
|
|
415
|
|
|
253
|
|
|
48,185
|
|
|
|||||
Total international
|
|
22,280
|
|
|
14,620
|
|
|
7,660
|
|
|
5,696
|
|
|
534,579
|
|
|
|||||
North America
(a)
|
|
71,263
|
|
|
48,221
|
|
|
23,042
|
|
|
18,746
|
|
|
1,817,119
|
|
|
|||||
Total
|
|
$
|
93,543
|
|
|
$
|
62,841
|
|
|
$
|
30,702
|
|
|
$
|
24,442
|
|
|
$
|
2,351,698
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Europe/Middle East and Africa
|
|
$
|
16,013
|
|
|
$
|
10,123
|
|
|
$
|
5,890
|
|
|
$
|
3,935
|
|
|
$
|
481,328
|
|
(d)
|
Asia and Pacific
|
|
6,083
|
|
|
4,478
|
|
|
1,605
|
|
|
1,051
|
|
|
147,357
|
|
|
|||||
Latin America and the Caribbean
|
|
2,047
|
|
|
1,626
|
|
|
421
|
|
|
269
|
|
|
44,567
|
|
|
|||||
Total international
|
|
24,143
|
|
|
16,227
|
|
|
7,916
|
|
|
5,255
|
|
|
673,252
|
|
|
|||||
North America
(a)
|
|
70,969
|
|
|
48,186
|
|
|
22,783
|
|
|
16,490
|
|
|
1,899,022
|
|
|
|||||
Total
|
|
$
|
95,112
|
|
|
$
|
64,413
|
|
|
$
|
30,699
|
|
|
$
|
21,745
|
|
|
$
|
2,572,274
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Europe/Middle East and Africa
|
|
$
|
15,585
|
|
|
$
|
9,069
|
|
|
$
|
6,516
|
|
|
$
|
4,842
|
|
|
$
|
514,747
|
|
(d)
|
Asia and Pacific
|
|
6,168
|
|
|
4,248
|
|
|
1,920
|
|
|
1,254
|
|
|
145,999
|
|
|
|||||
Latin America and the Caribbean
|
|
2,251
|
|
|
1,626
|
|
|
625
|
|
|
381
|
|
|
41,473
|
|
|
|||||
Total international
|
|
24,004
|
|
|
14,943
|
|
|
9,061
|
|
|
6,477
|
|
|
702,219
|
|
|
|||||
North America
(a)
|
|
73,363
|
|
|
55,749
|
|
|
17,614
|
|
|
11,409
|
|
|
1,712,660
|
|
|
|||||
Total
|
|
$
|
97,367
|
|
|
$
|
70,692
|
|
|
$
|
26,675
|
|
|
$
|
17,886
|
|
|
$
|
2,414,879
|
|
|
(a)
|
Substantially reflects the U.S.
|
(b)
|
Revenue is composed of net interest income and noninterest revenue.
|
(c)
|
Expense is composed of noninterest expense and the provision for credit losses.
|
(d)
|
Total assets for the U.K. were approximately
$306 billion
,
$434 billion
, and
$451 billion
at
December 31, 2015
,
2014
and
2013
, respectively.
|
304
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
305
|
As of or for the year ended
December 31,
(in millions, except ratios)
|
Consumer & Community Banking
|
|
Corporate & Investment Bank
|
|
Commercial Banking
|
||||||||||||||||||||||||
2015
|
2014
|
2013
|
|
2015
|
2014
|
2013
|
|
2015
|
2014
|
2013
|
|||||||||||||||||||
Noninterest revenue
|
$
|
15,592
|
|
$
|
15,937
|
|
$
|
17,552
|
|
|
$
|
23,693
|
|
$
|
23,420
|
|
$
|
23,736
|
|
|
$
|
2,365
|
|
$
|
2,349
|
|
$
|
2,298
|
|
Net interest income
|
28,228
|
|
28,431
|
|
28,985
|
|
|
9,849
|
|
11,175
|
|
10,976
|
|
|
4,520
|
|
4,533
|
|
4,794
|
|
|||||||||
Total net revenue
|
43,820
|
|
44,368
|
|
46,537
|
|
|
33,542
|
|
34,595
|
|
34,712
|
|
|
6,885
|
|
6,882
|
|
7,092
|
|
|||||||||
Provision for credit losses
|
3,059
|
|
3,520
|
|
335
|
|
|
332
|
|
(161
|
)
|
(232
|
)
|
|
442
|
|
(189
|
)
|
85
|
|
|||||||||
Noninterest expense
|
24,909
|
|
25,609
|
|
27,842
|
|
|
21,361
|
|
23,273
|
|
21,744
|
|
|
2,881
|
|
2,695
|
|
2,610
|
|
|||||||||
Income/(loss) before income tax expense/(benefit)
|
15,852
|
|
15,239
|
|
18,360
|
|
|
11,849
|
|
11,483
|
|
13,200
|
|
|
3,562
|
|
4,376
|
|
4,397
|
|
|||||||||
Income tax expense/(benefit)
|
6,063
|
|
6,054
|
|
7,299
|
|
|
3,759
|
|
4,575
|
|
4,350
|
|
|
1,371
|
|
1,741
|
|
1,749
|
|
|||||||||
Net income/(loss)
|
$
|
9,789
|
|
$
|
9,185
|
|
$
|
11,061
|
|
|
$
|
8,090
|
|
$
|
6,908
|
|
$
|
8,850
|
|
|
$
|
2,191
|
|
$
|
2,635
|
|
$
|
2,648
|
|
Average common equity
|
$
|
51,000
|
|
$
|
51,000
|
|
$
|
46,000
|
|
|
$
|
62,000
|
|
$
|
61,000
|
|
$
|
56,500
|
|
|
$
|
14,000
|
|
$
|
14,000
|
|
$
|
13,500
|
|
Total assets
|
502,652
|
|
455,634
|
|
452,929
|
|
|
748,691
|
|
861,466
|
|
843,248
|
|
|
200,700
|
|
195,267
|
|
190,782
|
|
|||||||||
Return on common equity
|
18
|
%
|
18
|
%
|
23
|
%
|
|
12
|
%
|
10
|
%
|
15
|
%
|
|
15
|
%
|
18
|
%
|
19
|
%
|
|||||||||
Overhead ratio
|
57
|
|
58
|
|
60
|
|
|
64
|
|
67
|
|
63
|
|
|
42
|
|
39
|
|
37
|
|
(a)
|
Segment managed results reflect revenue on a FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results.
|
306
|
|
JPMorgan Chase & Co./2015 Annual Report
|
(table continued from previous page)
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Asset Management
|
|
Corporate
|
|
Reconciling Items
(a)
|
|
Total
|
||||||||||||||||||||||||||||||||
2015
|
2014
|
2013
|
|
2015
|
2014
|
2013
|
|
2015
|
2014
|
2013
|
|
2015
|
2014
|
2013
|
||||||||||||||||||||||||
$
|
9,563
|
|
$
|
9,588
|
|
$
|
9,029
|
|
|
$
|
800
|
|
$
|
1,972
|
|
$
|
3,093
|
|
|
$
|
(1,980
|
)
|
$
|
(1,788
|
)
|
$
|
(1,660
|
)
|
|
$
|
50,033
|
|
$
|
51,478
|
|
$
|
54,048
|
|
2,556
|
|
2,440
|
|
2,376
|
|
|
(533
|
)
|
(1,960
|
)
|
(3,115
|
)
|
|
(1,110
|
)
|
(985
|
)
|
(697
|
)
|
|
43,510
|
|
43,634
|
|
43,319
|
|
||||||||||||
12,119
|
|
12,028
|
|
11,405
|
|
|
267
|
|
12
|
|
(22
|
)
|
|
(3,090
|
)
|
(2,773
|
)
|
(2,357
|
)
|
|
93,543
|
|
95,112
|
|
97,367
|
|
||||||||||||
4
|
|
4
|
|
65
|
|
|
(10
|
)
|
(35
|
)
|
(28
|
)
|
|
—
|
|
—
|
|
—
|
|
|
3,827
|
|
3,139
|
|
225
|
|
||||||||||||
8,886
|
|
8,538
|
|
8,016
|
|
|
977
|
|
1,159
|
|
10,255
|
|
|
—
|
|
—
|
|
—
|
|
|
59,014
|
|
61,274
|
|
70,467
|
|
||||||||||||
3,229
|
|
3,486
|
|
3,324
|
|
|
(700
|
)
|
(1,112
|
)
|
(10,249
|
)
|
|
(3,090
|
)
|
(2,773
|
)
|
(2,357
|
)
|
|
30,702
|
|
30,699
|
|
26,675
|
|
||||||||||||
1,294
|
|
1,333
|
|
1,241
|
|
|
(3,137
|
)
|
(1,976
|
)
|
(3,493
|
)
|
|
(3,090
|
)
|
(2,773
|
)
|
(2,357
|
)
|
|
6,260
|
|
8,954
|
|
8,789
|
|
||||||||||||
$
|
1,935
|
|
$
|
2,153
|
|
$
|
2,083
|
|
|
$
|
2,437
|
|
$
|
864
|
|
$
|
(6,756
|
)
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
24,442
|
|
$
|
21,745
|
|
$
|
17,886
|
|
$
|
9,000
|
|
$
|
9,000
|
|
$
|
9,000
|
|
|
$
|
79,690
|
|
$
|
72,400
|
|
$
|
71,409
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
215,690
|
|
$
|
207,400
|
|
$
|
196,409
|
|
131,451
|
|
128,701
|
|
122,414
|
|
|
768,204
|
|
931,206
|
|
805,506
|
|
|
NA
|
|
NA
|
|
NA
|
|
|
2,351,698
|
|
2,572,274
|
|
2,414,879
|
|
||||||||||||
21
|
%
|
23
|
%
|
23
|
%
|
|
NM
|
|
NM
|
|
NM
|
|
|
NM
|
|
NM
|
|
NM
|
|
|
11
|
%
|
10
|
%
|
9
|
%
|
||||||||||||
73
|
|
71
|
|
70
|
|
|
NM
|
|
NM
|
|
NM
|
|
|
NM
|
|
NM
|
|
NM
|
|
|
63
|
|
64
|
|
72
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
307
|
Parent company – Statements of income and comprehensive income
|
||||||||||||
Year ended December 31,
(in millions)
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Income
|
|
|
|
|
|
|
||||||
Dividends from subsidiaries and affiliates:
|
|
|
|
|
|
|
||||||
Bank and bank holding company
|
|
$
|
10,653
|
|
|
$
|
—
|
|
|
$
|
1,175
|
|
Nonbank
(a)
|
|
8,172
|
|
|
14,716
|
|
|
876
|
|
|||
Interest income from subsidiaries
|
|
443
|
|
|
378
|
|
|
757
|
|
|||
Other interest income
|
|
234
|
|
|
284
|
|
|
303
|
|
|||
Other income from subsidiaries,
primarily fees:
|
|
|
|
|
|
|
||||||
Bank and bank holding company
|
|
1,438
|
|
|
779
|
|
|
318
|
|
|||
Nonbank
|
|
(2,945
|
)
|
|
52
|
|
|
2,065
|
|
|||
Other income/(loss)
|
|
3,316
|
|
|
508
|
|
|
(1,380
|
)
|
|||
Total income
|
|
21,311
|
|
|
16,717
|
|
|
4,114
|
|
|||
Expense
|
|
|
|
|
|
|
||||||
Interest expense to subsidiaries and affiliates
(a)
|
|
98
|
|
|
169
|
|
|
309
|
|
|||
Other interest expense
|
|
3,720
|
|
|
3,645
|
|
|
4,031
|
|
|||
Other noninterest expense
|
|
2,611
|
|
|
827
|
|
|
9,597
|
|
|||
Total expense
|
|
6,429
|
|
|
4,641
|
|
|
13,937
|
|
|||
Income (loss) before income tax benefit and undistributed net income of subsidiaries
|
|
14,882
|
|
|
12,076
|
|
|
(9,823
|
)
|
|||
Income tax benefit
|
|
1,640
|
|
|
1,430
|
|
|
4,301
|
|
|||
Equity in undistributed net income of subsidiaries
|
|
7,920
|
|
|
8,239
|
|
|
23,408
|
|
|||
Net income
|
|
$
|
24,442
|
|
|
$
|
21,745
|
|
|
$
|
17,886
|
|
Other comprehensive income, net
|
|
(1,997
|
)
|
|
990
|
|
|
(2,903
|
)
|
|||
Comprehensive income
|
|
$
|
22,445
|
|
|
$
|
22,735
|
|
|
$
|
14,983
|
|
Parent company – Balance sheets
|
|
|
|
|
||||
December 31, (in millions)
|
|
2015
|
|
|
2014
|
|
||
Assets
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
74
|
|
|
$
|
211
|
|
Deposits with banking subsidiaries
|
|
65,799
|
|
|
95,884
|
|
||
Trading assets
|
|
13,830
|
|
|
18,222
|
|
||
Available-for-sale securities
|
|
3,154
|
|
|
3,321
|
|
||
Loans
|
|
1,887
|
|
|
2,260
|
|
||
Advances to, and receivables from, subsidiaries:
|
|
|
|
|
||||
Bank and bank holding company
|
|
32,454
|
|
|
33,810
|
|
||
Nonbank
|
|
58,674
|
|
|
52,626
|
|
||
Investments (at equity) in subsidiaries and affiliates:
|
|
|
|
|
||||
Bank and bank holding company
|
|
225,613
|
|
|
215,732
|
|
||
Nonbank
(a)
|
|
34,205
|
|
|
41,173
|
|
||
Other assets
|
|
18,088
|
|
|
18,200
|
|
||
Total assets
|
|
$
|
453,778
|
|
|
$
|
481,439
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
||||
Borrowings from, and payables to, subsidiaries and affiliates
(a)
|
|
$
|
11,310
|
|
|
$
|
17,381
|
|
Other borrowed funds, primarily commercial paper
|
|
3,722
|
|
|
49,586
|
|
||
Other liabilities
|
|
11,940
|
|
|
11,918
|
|
||
Long-term debt
(b)(c)
|
|
179,233
|
|
|
170,827
|
|
||
Total liabilities
(c)
|
|
206,205
|
|
|
249,712
|
|
||
Total stockholders’ equity
|
|
247,573
|
|
|
231,727
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
453,778
|
|
|
$
|
481,439
|
|
Parent company – Statements of cash flows
|
|
|
||||||||||
Year ended December 31,
(in millions)
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
Operating activities
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
24,442
|
|
|
$
|
21,745
|
|
|
$
|
17,886
|
|
Less: Net income of subsidiaries and affiliates
(a)
|
|
26,745
|
|
|
22,972
|
|
|
25,496
|
|
|||
Parent company net loss
|
|
(2,303
|
)
|
|
(1,227
|
)
|
|
(7,610
|
)
|
|||
Cash dividends from subsidiaries and affiliates
(a)
|
|
17,023
|
|
|
14,714
|
|
|
1,917
|
|
|||
Other operating adjustments
|
|
2,483
|
|
|
(1,681
|
)
|
|
3,217
|
|
|||
Net cash provided by/(used in) operating activities
|
|
17,203
|
|
|
11,806
|
|
|
(2,476
|
)
|
|||
Investing activities
|
|
|
|
|
|
|
||||||
Net change in:
|
|
|
|
|
|
|
||||||
Deposits with banking subsidiaries
|
|
30,085
|
|
|
(31,040
|
)
|
|
10,679
|
|
|||
Available-for-sale securities:
|
|
|
|
|
|
|
||||||
Proceeds from paydowns and maturities
|
|
120
|
|
|
12,076
|
|
|
61
|
|
|||
Purchases
|
|
—
|
|
|
—
|
|
|
(12,009
|
)
|
|||
Other changes in loans, net
|
|
321
|
|
|
(319
|
)
|
|
(713
|
)
|
|||
Advances to and investments in subsidiaries and affiliates, net
|
|
(81
|
)
|
|
3,306
|
|
|
14,469
|
|
|||
All other investing activities, net
|
|
153
|
|
|
32
|
|
|
22
|
|
|||
Net cash provided by/(used in) investing activities
|
|
30,598
|
|
|
(15,945
|
)
|
|
12,509
|
|
|||
Financing activities
|
|
|
|
|
|
|
||||||
Net change in:
|
|
|
|
|
|
|
||||||
Borrowings from subsidiaries and affiliates
(a)
|
|
(4,062
|
)
|
|
4,454
|
|
|
(2,715
|
)
|
|||
Other borrowed funds
|
|
(47,483
|
)
|
|
(5,778
|
)
|
|
(7,297
|
)
|
|||
Proceeds from the issuance of long-term debt
|
|
42,121
|
|
|
40,284
|
|
|
31,303
|
|
|||
Payments of long-term debt
|
|
(30,077
|
)
|
|
(31,050
|
)
|
|
(21,510
|
)
|
|||
Proceeds from issuance of preferred stock
|
|
5,893
|
|
|
8,847
|
|
|
3,873
|
|
|||
Redemption of preferred stock
|
|
—
|
|
|
—
|
|
|
(1,800
|
)
|
|||
Treasury stock and warrants repurchased
|
|
(5,616
|
)
|
|
(4,760
|
)
|
|
(4,789
|
)
|
|||
Dividends paid
|
|
(7,873
|
)
|
|
(6,990
|
)
|
|
(6,056
|
)
|
|||
All other financing activities, net
|
|
(840
|
)
|
|
(921
|
)
|
|
(994
|
)
|
|||
Net cash provided by/(used in) financing activities
|
|
(47,937
|
)
|
|
4,086
|
|
|
(9,985
|
)
|
|||
Net increase/(decrease) in cash and due from banks
|
|
(137
|
)
|
|
(53
|
)
|
|
48
|
|
|||
Cash and due from banks at the beginning of the year, primarily with bank subsidiaries
|
|
211
|
|
|
264
|
|
|
216
|
|
|||
Cash and due from banks at the end of the year, primarily with bank subsidiaries
|
|
$
|
74
|
|
|
$
|
211
|
|
|
$
|
264
|
|
Cash interest paid
|
|
$
|
3,873
|
|
|
$
|
3,921
|
|
|
$
|
4,409
|
|
Cash income taxes paid, net
|
|
8,251
|
|
|
200
|
|
|
2,390
|
|
(a)
|
Affiliates include trusts that issued guaranteed capital debt securities (“issuer trusts”). The Parent received dividends of
$2 million
,
$2 million
and
$5 million
from the issuer trusts in
2015
,
2014
and
2013
, respectively. For further discussion on these issuer trusts, see Note 21.
|
(b)
|
At
December 31, 2015
, long-term debt that contractually matures in 2016 through 2020 totaled
$27.2 billion
,
$26.0 billion
,
$21.1 billion
,
$11.5 billion
and
$22.2 billion
, respectively.
|
(c)
|
For information regarding the Parent’s guarantees of its subsidiaries’ obligations, see Notes 21 and 29.
|
308
|
|
JPMorgan Chase & Co./2015 Annual Report
|
(Table continued on next page)
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
As of or for the period ended
|
2015
|
|
2014
|
||||||||||||||||||||||
(in millions, except per share, ratio, headcount data and where otherwise noted)
|
4th quarter
|
3rd quarter
|
2nd quarter
|
1st quarter
|
|
4th quarter
|
3rd quarter
|
2nd quarter
|
1st quarter
|
||||||||||||||||
Selected income statement data
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total net revenue
|
$
|
22,885
|
|
$
|
22,780
|
|
$
|
23,812
|
|
$
|
24,066
|
|
|
$
|
22,750
|
|
$
|
24,469
|
|
$
|
24,678
|
|
$
|
23,215
|
|
Total noninterest expense
|
14,263
|
|
15,368
|
|
14,500
|
|
14,883
|
|
|
15,409
|
|
15,798
|
|
15,431
|
|
14,636
|
|
||||||||
Pre-provision profit
|
8,622
|
|
7,412
|
|
9,312
|
|
9,183
|
|
|
7,341
|
|
8,671
|
|
9,247
|
|
8,579
|
|
||||||||
Provision for credit losses
|
1,251
|
|
682
|
|
935
|
|
959
|
|
|
840
|
|
757
|
|
692
|
|
850
|
|
||||||||
Income before income tax expense
|
7,371
|
|
6,730
|
|
8,377
|
|
8,224
|
|
|
6,501
|
|
7,914
|
|
8,555
|
|
7,729
|
|
||||||||
Income tax expense
|
1,937
|
|
(74
|
)
|
2,087
|
|
2,310
|
|
|
1,570
|
|
2,349
|
|
2,575
|
|
2,460
|
|
||||||||
Net income
|
$
|
5,434
|
|
$
|
6,804
|
|
$
|
6,290
|
|
$
|
5,914
|
|
|
$
|
4,931
|
|
$
|
5,565
|
|
$
|
5,980
|
|
$
|
5,269
|
|
Per common share data
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income: Basic
|
$
|
1.34
|
|
$
|
1.70
|
|
$
|
1.56
|
|
$
|
1.46
|
|
|
$
|
1.20
|
|
$
|
1.37
|
|
$
|
1.47
|
|
$
|
1.29
|
|
Diluted
|
1.32
|
|
1.68
|
|
1.54
|
|
1.45
|
|
|
1.19
|
|
1.35
|
|
1.46
|
|
1.28
|
|
||||||||
Average shares: Basic
|
3,674.2
|
|
3,694.4
|
|
3,707.8
|
|
3,725.3
|
|
|
3,730.9
|
|
3,755.4
|
|
3,780.6
|
|
3,787.2
|
|
||||||||
Diluted
|
3,704.6
|
|
3,725.6
|
|
3,743.6
|
|
3,757.5
|
|
|
3,765.2
|
|
3,788.7
|
|
3,812.5
|
|
3,823.6
|
|
||||||||
Market and per common share data
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Market capitalization
|
$
|
241,899
|
|
$
|
224,438
|
|
$
|
250,581
|
|
$
|
224,818
|
|
|
$
|
232,472
|
|
$
|
225,188
|
|
$
|
216,725
|
|
$
|
229,770
|
|
Common shares at period-end
|
3,663.5
|
|
3,681.1
|
|
3,698.1
|
|
3,711.1
|
|
|
3,714.8
|
|
3,738.2
|
|
3,761.3
|
|
3,784.7
|
|
||||||||
Share price
(a)
:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
High
|
$
|
69.03
|
|
$
|
70.61
|
|
$
|
69.82
|
|
$
|
62.96
|
|
|
$
|
63.49
|
|
$
|
61.85
|
|
$
|
61.29
|
|
$
|
61.48
|
|
Low
|
58.53
|
|
50.07
|
|
59.65
|
|
54.27
|
|
|
54.26
|
|
54.96
|
|
52.97
|
|
54.20
|
|
||||||||
Close
|
66.03
|
|
60.97
|
|
67.76
|
|
60.58
|
|
|
62.58
|
|
60.24
|
|
57.62
|
|
60.71
|
|
||||||||
Book value per share
|
60.46
|
|
59.67
|
|
58.49
|
|
57.77
|
|
|
56.98
|
|
56.41
|
|
55.44
|
|
53.97
|
|
||||||||
Tangible book value per share (“TBVPS”)
(b)
|
48.13
|
|
47.36
|
|
46.13
|
|
45.45
|
|
|
44.60
|
|
44.04
|
|
43.08
|
|
41.65
|
|
||||||||
Cash dividends declared per share
|
0.44
|
|
0.44
|
|
0.44
|
|
0.40
|
|
|
0.40
|
|
0.40
|
|
0.40
|
|
0.38
|
|
||||||||
Selected ratios and metrics
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Return on common equity (“ROE”)
|
9
|
%
|
12
|
%
|
11
|
%
|
11
|
%
|
|
9
|
%
|
10
|
%
|
11
|
%
|
10
|
%
|
||||||||
Return on tangible common equity (“ROTCE”)
(b)
|
11
|
|
15
|
|
14
|
|
14
|
|
|
11
|
|
13
|
|
14
|
|
13
|
|
||||||||
Return on assets (“ROA”)
|
0.90
|
|
1.11
|
|
1.01
|
|
0.94
|
|
|
0.78
|
|
0.90
|
|
0.99
|
|
0.89
|
|
||||||||
Overhead ratio
|
62
|
|
67
|
|
61
|
|
62
|
|
|
68
|
|
65
|
|
63
|
|
63
|
|
||||||||
Loans-to-deposits ratio
|
65
|
|
64
|
|
61
|
|
56
|
|
|
56
|
|
56
|
|
57
|
|
57
|
|
||||||||
HQLA (in billions)
(c)
|
$
|
496
|
|
$
|
505
|
|
$
|
532
|
|
$
|
614
|
|
|
$
|
600
|
|
$
|
572
|
|
$
|
576
|
|
$
|
538
|
|
CET1 capital ratio
(d)
|
11.8
|
%
|
11.5
|
%
|
11.2
|
%
|
10.7
|
%
|
|
10.2
|
%
|
10.2
|
%
|
9.8
|
%
|
10.9
|
%
|
||||||||
Tier 1 capital ratio
(d)
|
13.5
|
|
13.3
|
|
12.8
|
|
12.1
|
|
|
11.6
|
|
11.5
|
|
11.0
|
|
12.0
|
|
||||||||
Total capital ratio
(d)
|
15.1
|
|
14.9
|
|
14.4
|
|
13.6
|
|
|
13.1
|
|
12.8
|
|
12.5
|
|
14.5
|
|
||||||||
Tier 1 leverage ratio
|
8.5
|
|
8.4
|
|
8.0
|
|
7.5
|
|
|
7.6
|
|
7.6
|
|
7.6
|
|
7.3
|
|
||||||||
Selected balance sheet data (period-end)
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trading assets
|
$
|
343,839
|
|
$
|
361,708
|
|
$
|
377,870
|
|
$
|
398,981
|
|
|
$
|
398,988
|
|
$
|
410,657
|
|
$
|
392,543
|
|
$
|
375,204
|
|
Securities
|
290,827
|
|
306,660
|
|
317,795
|
|
331,136
|
|
|
348,004
|
|
366,358
|
|
361,918
|
|
351,850
|
|
||||||||
Loans
|
837,299
|
|
809,457
|
|
791,247
|
|
764,185
|
|
|
757,336
|
|
743,257
|
|
746,983
|
|
730,971
|
|
||||||||
Core Loans
|
732,093
|
|
698,988
|
|
674,767
|
|
641,285
|
|
|
628,785
|
|
607,617
|
|
603,440
|
|
582,206
|
|
||||||||
Total assets
|
2,351,698
|
|
2,416,635
|
|
2,449,098
|
|
2,576,619
|
|
|
2,572,274
|
|
2,526,158
|
|
2,519,494
|
|
2,476,152
|
|
||||||||
Deposits
|
1,279,715
|
|
1,273,106
|
|
1,287,332
|
|
1,367,887
|
|
|
1,363,427
|
|
1,334,534
|
|
1,319,751
|
|
1,282,705
|
|
||||||||
Long-term debt
(e)
|
288,651
|
|
292,503
|
|
286,240
|
|
280,123
|
|
|
276,379
|
|
268,265
|
|
269,472
|
|
274,053
|
|
||||||||
Common stockholders’ equity
|
221,505
|
|
219,660
|
|
216,287
|
|
214,371
|
|
|
211,664
|
|
210,876
|
|
208,520
|
|
204,246
|
|
||||||||
Total stockholders’ equity
|
247,573
|
|
245,728
|
|
241,205
|
|
235,864
|
|
|
231,727
|
|
230,939
|
|
226,983
|
|
219,329
|
|
||||||||
Headcount
|
234,598
|
|
235,678
|
|
237,459
|
|
241,145
|
|
|
241,359
|
|
242,388
|
|
245,192
|
|
246,994
|
|
JPMorgan Chase & Co./2015 Annual Report
|
|
309
|
(Table continued from previous page)
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
As of or for the period ended
|
2015
|
|
2014
|
||||||||||||||||||||||
(in millions, except ratio data)
|
4th quarter
|
3rd quarter
|
2nd quarter
|
1st quarter
|
|
4th quarter
|
3rd quarter
|
2nd quarter
|
1st quarter
|
||||||||||||||||
Credit quality metrics
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for credit losses
|
$
|
14,341
|
|
$
|
14,201
|
|
$
|
14,535
|
|
$
|
14,658
|
|
|
$
|
14,807
|
|
$
|
15,526
|
|
$
|
15,974
|
|
$
|
16,485
|
|
Allowance for loan losses to total retained loans
|
1.63
|
%
|
1.67
|
%
|
1.78
|
%
|
1.86
|
%
|
|
1.90
|
%
|
2.02
|
%
|
2.08
|
%
|
2.20
|
%
|
||||||||
Allowance for loan losses to retained loans excluding purchased credit-impaired loans
(f)
|
1.37
|
|
1.40
|
|
1.45
|
|
1.52
|
|
|
1.55
|
|
1.63
|
|
1.69
|
|
1.75
|
|
||||||||
Nonperforming assets
|
$
|
7,034
|
|
$
|
7,294
|
|
$
|
7,588
|
|
$
|
7,714
|
|
|
$
|
7,967
|
|
$
|
8,390
|
|
$
|
9,017
|
|
$
|
9,473
|
|
Net charge-offs
|
1,064
|
|
963
|
|
1,007
|
|
1,052
|
|
|
1,218
|
|
1,114
|
|
1,158
|
|
1,269
|
|
||||||||
Net charge-off rate
|
0.52
|
%
|
0.49
|
%
|
0.53
|
%
|
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. For further discussion of these measures, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on
pages 80–82
.
|
(c)
|
HQLA represents the amount of assets that qualify for inclusion in the liquidity coverage ratio under the final U.S. rule (“U.S. LCR”) for 4Q15, 3Q15, 2Q15 and 1Q15 and the estimated amounts for 4Q14 and 3Q14 prior to the effective date of the final rule and under the Basel III liquidity coverage ratio (“Basel III LCR”) for 2Q14 and 1Q14. For additional information, see HQLA on
page 160
.
|
(d)
|
As of December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014, and June 30, 2014, the ratios presented are calculated under the U.S. Basel III transitional rules. As of March 31, 2015 the ratio presented is calculated under Basel III Standardized Transitional rules. All periods shown represent the Collins Floor. See Capital Management on
pages 149–158
for additional information on Basel III and non-GAAP financial measures of regulatory capital.
|
(e)
|
Included unsecured long-term debt of $211.8 billion, $214.6 billion, $209.1 billion, $209.0 billion, $207.0 billion, $204.2 billion, $205.1 billion and $205.6 respectively, for the periods presented.
|
(f)
|
Excludes the impact of residential real estate PCI loans, a non-GAAP financial measure. For further discussion of these measures, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on
pages 80–82
. For further discussion, see Allowance for credit losses on
pages 130–132
.
|
310
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
311
|
•
|
All wholesale nonaccrual loans
|
•
|
All TDRs (both wholesale and consumer), including ones that have returned to accrual status
|
312
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
313
|
314
|
|
JPMorgan Chase & Co./2015 Annual Report
|
JPMorgan Chase & Co./2015 Annual Report
|
|
315
|
(Table continued on next page)
|
2015
|
||||||||||
Year ended December 31,
(Taxable-equivalent interest and rates; in millions, except rates)
|
Average
balance
|
|
Interest
(e)
|
|
Average
rate
|
||||||
Assets
|
|
|
|
|
|
|
|||||
Deposits with banks
|
$
|
427,963
|
|
|
$
|
1,250
|
|
|
0.29
|
%
|
|
Federal funds sold and securities purchased under resale agreements
|
206,637
|
|
|
1,592
|
|
|
0.77
|
|
|
||
Securities borrowed
|
105,273
|
|
|
(532
|
)
|
(f)
|
(0.50
|
)
|
|
||
Trading assets
|
206,385
|
|
|
6,694
|
|
|
3.24
|
|
|
||
Taxable securities
|
273,730
|
|
|
6,550
|
|
|
2.39
|
|
|
||
Non-taxable securities
(a)
|
42,125
|
|
|
2,556
|
|
|
6.07
|
|
|
||
Total securities
|
315,855
|
|
|
9,106
|
|
|
2.88
|
|
(h)
|
||
Loans
|
787,318
|
|
|
33,321
|
|
(g)
|
4.23
|
|
|
||
Other assets
(b)
|
38,811
|
|
|
652
|
|
|
1.68
|
|
|
||
Total interest-earning assets
|
2,088,242
|
|
|
52,083
|
|
|
2.49
|
|
|
||
Allowance for loan losses
|
(13,885
|
)
|
|
|
|
|
|
||||
Cash and due from banks
|
22,042
|
|
|
|
|
|
|
||||
Trading assets – equity instruments
|
105,489
|
|
|
|
|
|
|
||||
Trading assets – derivative receivables
|
73,290
|
|
|
|
|
|
|
||||
Goodwill
|
47,445
|
|
|
|
|
|
|
||||
Mortgage servicing rights
|
6,902
|
|
|
|
|
|
|
||||
Other intangible assets:
|
|
|
|
|
|
|
|||||
Purchased credit card relationships
|
25
|
|
|
|
|
|
|
||||
Other intangibles
|
1,067
|
|
|
|
|
|
|
||||
Other assets
|
138,792
|
|
|
|
|
|
|
||||
Total assets
|
$
|
2,469,409
|
|
|
|
|
|
|
|||
Liabilities
|
|
|
|
|
|
|
|||||
Interest-bearing deposits
|
$
|
872,572
|
|
|
$
|
1,252
|
|
|
0.14
|
%
|
|
Federal funds purchased and securities loaned or sold under repurchase agreements
|
192,510
|
|
|
609
|
|
|
0.32
|
|
|
||
Commercial paper
|
38,140
|
|
|
110
|
|
|
0.29
|
|
|
||
Trading liabilities – debt, short-term and other liabilities
(c)
|
207,810
|
|
|
622
|
|
|
0.30
|
|
|
||
Beneficial interests issued by consolidated variable interest entities (“VIEs”)
|
49,200
|
|
|
435
|
|
|
0.88
|
|
|
||
Long-term debt
|
284,940
|
|
|
4,435
|
|
|
1.56
|
|
|
||
Total interest-bearing liabilities
|
1,645,172
|
|
|
7,463
|
|
|
0.45
|
|
|
||
Noninterest-bearing deposits
|
423,216
|
|
|
|
|
|
|
||||
Trading liabilities – equity instruments
|
17,282
|
|
|
|
|
|
|
||||
Trading liabilities – derivative payables
|
64,716
|
|
|
|
|
|
|
||||
All other liabilities, including the allowance for lending-related commitments
|
79,293
|
|
|
|
|
|
|
||||
Total liabilities
|
2,229,679
|
|
|
|
|
|
|
||||
Stockholders’ equity
|
|
|
|
|
|
|
|||||
Preferred stock
|
24,040
|
|
|
|
|
|
|
||||
Common stockholders’ equity
|
215,690
|
|
|
|
|
|
|
||||
Total stockholders’ equity
|
239,730
|
|
(d)
|
|
|
|
|
||||
Total liabilities and stockholders’ equity
|
$
|
2,469,409
|
|
|
|
|
|
|
|||
Interest rate spread
|
|
|
|
|
2.04
|
%
|
|
||||
Net interest income and net yield on interest-earning assets
|
|
|
$
|
44,620
|
|
|
2.14
|
|
|
(a)
|
Represents securities which are tax exempt for U.S. Federal Income Tax purposes.
|
(b)
|
Includes margin loans.
|
(c)
|
Includes brokerage customer payables.
|
(d)
|
The ratio of average stockholders’ equity to average assets was
9.7%
for
2015
,
9.2%
for 2014, and
8.7%
for
2013
. The return on average stockholders’ equity, based on net income, was
10.2%
for 2015,
9.7%
for
2014
, and
8.6%
for
2013
.
|
(e)
|
Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.
|
(f)
|
Negative interest income and yield for the years ended December 31, 2015, 2014 and 2013, is the result of increased client-driven demand for certain securities combined with the impact of low interest rates; the offset of this stock borrow activity is reflected as lower net interest expense reported within short-term and other liabilities.
|
(g)
|
Fees and commissions on loans included in loan interest amounted to
$936 million
in
2015
,
$1.1 billion
in
2014
, and
$1.3 billion
in
2013
.
|
(h)
|
The annualized rate for securities based on amortized cost was
2.94%
in
2015
,
2.82%
in
2014
, and
2.37%
in
2013
, and does not give effect to changes in fair value that are reflected in accumulated other comprehensive income/(loss).
|
(i)
|
Reflects a benefit from the favorable market environments for dollar-roll financings.
|
316
|
|
|
(Table continued from previous page)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2014
|
|
2013
|
|
|||||||||||||||||||
Average
balance
|
|
Interest
(e)
|
|
Average
rate
|
|
Average
balance
|
|
Interest
(e)
|
|
Average
rate
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
$
|
358,072
|
|
|
$
|
1,157
|
|
|
0.32
|
%
|
|
|
$
|
268,968
|
|
|
$
|
918
|
|
|
0.34
|
%
|
|
230,489
|
|
|
1,642
|
|
|
0.71
|
|
|
|
231,567
|
|
|
1,940
|
|
|
0.84
|
|
|
||||
116,540
|
|
|
(501
|
)
|
(f)
|
(0.43
|
)
|
|
|
118,300
|
|
|
(127
|
)
|
(f)
|
(0.11
|
)
|
|
||||
210,609
|
|
|
7,386
|
|
|
3.51
|
|
|
|
227,769
|
|
|
8,191
|
|
|
3.60
|
|
|
||||
318,970
|
|
|
7,617
|
|
|
2.39
|
|
|
|
333,285
|
|
|
6,916
|
|
|
2.07
|
|
|
||||
34,359
|
|
|
2,158
|
|
|
6.28
|
|
|
|
23,558
|
|
|
1,369
|
|
|
5.81
|
|
|
||||
353,329
|
|
|
9,775
|
|
|
2.77
|
|
(h)
|
|
356,843
|
|
|
8,285
|
|
|
2.32
|
|
(h)
|
||||
739,175
|
|
|
32,394
|
|
(g)
|
4.38
|
|
|
|
726,450
|
|
|
33,621
|
|
(g)
|
4.63
|
|
|
||||
40,879
|
|
|
663
|
|
|
1.62
|
|
|
|
40,334
|
|
|
538
|
|
|
1.33
|
|
|
||||
2,049,093
|
|
|
52,516
|
|
|
2.56
|
|
|
|
1,970,231
|
|
|
53,366
|
|
|
2.71
|
|
|
||||
(15,418
|
)
|
|
|
|
|
|
|
(19,819
|
)
|
|
|
|
|
|
||||||||
25,650
|
|
|
|
|
|
|
|
35,919
|
|
|
|
|
|
|
||||||||
116,650
|
|
|
|
|
|
|
|
112,680
|
|
|
|
|
|
|
||||||||
67,123
|
|
|
|
|
|
|
|
72,629
|
|
|
|
|
|
|
||||||||
48,029
|
|
|
|
|
|
|
|
48,102
|
|
|
|
|
|
|
||||||||
8,387
|
|
|
|
|
|
|
|
8,840
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
62
|
|
|
|
|
|
|
|
214
|
|
|
|
|
|
|
||||||||
1,316
|
|
|
|
|
|
|
|
1,736
|
|
|
|
|
|
|
||||||||
146,343
|
|
|
|
|
|
|
|
149,058
|
|
|
|
|
|
|
||||||||
$
|
2,447,235
|
|
|
|
|
|
|
|
$
|
2,379,590
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
$
|
868,838
|
|
|
$
|
1,633
|
|
|
0.19
|
%
|
|
|
$
|
822,781
|
|
|
$
|
2,067
|
|
|
0.25
|
%
|
|
208,560
|
|
|
604
|
|
(i)
|
0.29
|
|
(i)
|
|
238,551
|
|
|
582
|
|
(i)
|
0.24
|
|
(i)
|
||||
59,916
|
|
|
134
|
|
|
0.22
|
|
|
|
53,717
|
|
|
112
|
|
|
0.21
|
|
|
||||
220,137
|
|
|
712
|
|
|
0.32
|
|
|
|
202,894
|
|
|
1,104
|
|
|
0.54
|
|
|
||||
47,974
|
|
|
405
|
|
|
0.84
|
|
|
|
54,798
|
|
|
478
|
|
|
0.87
|
|
|
||||
269,814
|
|
|
4,409
|
|
|
1.63
|
|
|
|
263,603
|
|
|
5,007
|
|
|
1.90
|
|
|
||||
1,675,239
|
|
|
7,897
|
|
|
0.47
|
|
|
|
1,636,344
|
|
|
9,350
|
|
|
0.57
|
|
|
||||
395,463
|
|
|
|
|
|
|
|
366,361
|
|
|
|
|
|
|
||||||||
16,246
|
|
|
|
|
|
|
|
14,218
|
|
|
|
|
|
|
||||||||
54,758
|
|
|
|
|
|
|
|
64,553
|
|
|
|
|
|
|
||||||||
81,111
|
|
|
|
|
|
|
|
90,745
|
|
|
|
|
|
|
||||||||
2,222,817
|
|
|
|
|
|
|
|
2,172,221
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
17,018
|
|
|
|
|
|
|
|
10,960
|
|
|
|
|
|
|
||||||||
207,400
|
|
|
|
|
|
|
|
196,409
|
|
|
|
|
|
|
||||||||
224,418
|
|
(d)
|
|
|
|
|
|
207,369
|
|
(d)
|
|
|
|
|
||||||||
$
|
2,447,235
|
|
|
|
|
|
|
|
$
|
2,379,590
|
|
|
|
|
|
|
||||||
|
|
|
|
2.09
|
%
|
|
|
|
|
|
|
2.14
|
%
|
|
||||||||
|
|
$
|
44,619
|
|
|
2.18
|
|
|
|
|
|
$
|
44,016
|
|
|
2.23
|
|
|
|
|
317
|
(Table continued on next page)
|
|
|
|
|
|
|||||
|
2015
|
|||||||||
Year ended December 31,
(Taxable-equivalent interest and rates; in millions, except rates)
|
Average balance
|
Interest
|
|
Average rate
|
||||||
Interest-earning assets
|
|
|
|
|
|
|||||
Deposits with banks:
|
|
|
|
|
|
|||||
U.S.
|
$
|
388,833
|
|
$
|
1,021
|
|
|
0.26
|
%
|
|
Non-U.S.
|
39,130
|
|
229
|
|
|
0.59
|
|
|
||
Federal funds sold and securities purchased under resale agreements:
|
|
|
|
|
|
|||||
U.S.
|
118,945
|
|
900
|
|
|
0.76
|
|
|
||
Non-U.S.
|
87,692
|
|
692
|
|
|
0.79
|
|
|
||
Securities borrowed:
|
|
|
|
|
|
|||||
U.S.
|
78,815
|
|
(562
|
)
|
(b)
|
(0.71
|
)
|
|
||
Non-U.S.
|
26,458
|
|
30
|
|
|
0.11
|
|
|
||
Trading assets – debt instruments:
|
|
|
|
|
|
|||||
U.S.
|
106,465
|
|
3,572
|
|
|
3.35
|
|
|
||
Non-U.S.
|
99,920
|
|
3,122
|
|
|
3.12
|
|
|
||
Securities:
|
|
|
|
|
|
|||||
U.S.
|
200,240
|
|
6,676
|
|
|
3.33
|
|
|
||
Non-U.S.
|
115,615
|
|
2,430
|
|
|
2.10
|
|
|
||
Loans:
|
|
|
|
|
|
|||||
U.S.
|
699,664
|
|
31,468
|
|
|
4.50
|
|
|
||
Non-U.S.
|
87,654
|
|
1,853
|
|
|
2.11
|
|
|
||
Other assets, predominantly U.S.
|
38,811
|
|
652
|
|
|
1.68
|
|
|
||
Total interest-earning assets
|
2,088,242
|
|
52,083
|
|
|
2.49
|
|
|
||
Interest-bearing liabilities
|
|
|
|
|
|
|||||
Interest-bearing deposits:
|
|
|
|
|
|
|||||
U.S.
|
638,756
|
|
761
|
|
|
0.12
|
|
|
||
Non-U.S.
|
233,816
|
|
491
|
|
|
0.21
|
|
|
||
Federal funds purchased and securities loaned or sold under repurchase agreements:
|
|
|
|
|
|
|||||
U.S.
|
140,609
|
|
366
|
|
|
0.26
|
|
|
||
Non-U.S.
|
51,901
|
|
243
|
|
|
0.47
|
|
|
||
Trading liabilities – debt, short-term and other liabilities:
|
|
|
|
|
|
|||||
U.S.
|
166,838
|
|
(394
|
)
|
(b)
|
(0.24
|
)
|
|
||
Non-U.S.
|
79,112
|
|
1,126
|
|
|
1.42
|
|
|
||
Beneficial interests issued by consolidated VIEs, predominantly U.S.
|
49,200
|
|
435
|
|
|
0.88
|
|
|
||
Long-term debt:
|
|
|
|
|
|
|||||
U.S.
|
273,033
|
|
4,386
|
|
|
1.61
|
|
|
||
Non-U.S.
|
11,907
|
|
49
|
|
|
0.41
|
|
|
||
Intracompany funding:
|
|
|
|
|
|
|||||
U.S.
|
(50,517
|
)
|
7
|
|
|
—
|
|
|
||
Non-U.S.
|
50,517
|
|
(7
|
)
|
|
—
|
|
|
||
Total interest-bearing liabilities
|
1,645,172
|
|
7,463
|
|
|
0.45
|
|
|
||
Noninterest-bearing liabilities
(a)
|
443,070
|
|
|
|
|
|
||||
Total investable funds
|
$
|
2,088,242
|
|
$
|
7,463
|
|
|
0.36
|
%
|
|
Net interest income and net yield:
|
|
$
|
44,620
|
|
|
2.14
|
%
|
|
||
U.S.
|
|
38,033
|
|
|
2.34
|
|
|
|||
Non-U.S.
|
|
6,587
|
|
|
1.42
|
|
|
|||
Percentage of total assets and liabilities attributable to non-U.S. operations:
|
|
|
|
|
|
|||||
Assets
|
|
|
|
24.7
|
|
|
||||
Liabilities
|
|
|
|
21.1
|
|
|
(a)
|
Represents the amount of noninterest-bearing liabilities funding interest-earning assets.
|
(b)
|
Negative interest income and yield, for the years ended December 31, 2015, 2014 and 2013 is a result of increased client-driven demand for certain securities combined with the impact of low interest rates; the offset of this stock borrow activity is reflected as lower net interest expense reported within trading liabilities – debt, short-term and other liabilities.
|
(c)
|
Reflects a benefit from the favorable market environments for dollar-roll financings.
|
318
|
|
|
|
|
319
|
|
2015 versus 2014
|
|
2014 versus 2013
|
|
||||||||||||||||||||
|
Increase/(decrease) due to change in:
|
|
|
|
Increase/(decrease) due to change in:
|
|
|
|||||||||||||||||
Year ended December 31,
(On a taxable-equivalent basis: in millions)
|
Volume
|
|
Rate
|
|
Net
change
|
|
Volume
|
|
Rate
|
|
Net
change
|
|
||||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits with banks:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
$
|
163
|
|
|
$
|
33
|
|
|
$
|
196
|
|
|
$
|
230
|
|
|
$
|
23
|
|
|
$
|
253
|
|
|
Non-U.S.
|
53
|
|
|
(156
|
)
|
|
(103
|
)
|
|
(56
|
)
|
|
42
|
|
|
(14
|
)
|
|
||||||
Federal funds sold and securities purchased under resale agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
(58
|
)
|
|
239
|
|
|
181
|
|
|
(22
|
)
|
|
(52
|
)
|
|
(74
|
)
|
|
||||||
Non-U.S.
|
(137
|
)
|
|
(94
|
)
|
|
(231
|
)
|
|
31
|
|
|
(255
|
)
|
|
(224
|
)
|
|
||||||
Securities borrowed:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
(12
|
)
|
|
23
|
|
|
11
|
|
|
(58
|
)
|
|
(139
|
)
|
|
(197
|
)
|
|
||||||
Non-U.S.
|
(14
|
)
|
|
(28
|
)
|
|
(42
|
)
|
|
(16
|
)
|
|
(161
|
)
|
|
(177
|
)
|
|
||||||
Trading assets – debt instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
(100
|
)
|
|
(373
|
)
|
|
(473
|
)
|
|
(413
|
)
|
|
157
|
|
|
(256
|
)
|
|
||||||
Non-U.S.
|
(27
|
)
|
|
(192
|
)
|
|
(219
|
)
|
|
(197
|
)
|
|
(352
|
)
|
|
(549
|
)
|
|
||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
226
|
|
|
(136
|
)
|
|
90
|
|
|
785
|
|
|
1,006
|
|
|
1,791
|
|
|
||||||
Non-U.S.
|
(918
|
)
|
|
159
|
|
|
(759
|
)
|
|
(543
|
)
|
|
242
|
|
|
(301
|
)
|
|
||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
2,829
|
|
|
(1,526
|
)
|
|
1,303
|
|
|
905
|
|
|
(1,975
|
)
|
|
(1,070
|
)
|
|
||||||
Non-U.S.
|
(324
|
)
|
|
(52
|
)
|
|
(376
|
)
|
|
(135
|
)
|
|
(22
|
)
|
|
(157
|
)
|
|
||||||
Other assets, predominantly U.S.
|
(36
|
)
|
|
25
|
|
|
(11
|
)
|
|
8
|
|
|
117
|
|
|
125
|
|
|
||||||
Change in interest income
|
1,645
|
|
|
(2,078
|
)
|
|
(433
|
)
|
|
519
|
|
|
(1,369
|
)
|
|
(850
|
)
|
|
||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
10
|
|
|
(62
|
)
|
|
(52
|
)
|
|
37
|
|
|
(291
|
)
|
|
(254
|
)
|
|
||||||
Non-U.S.
|
(31
|
)
|
|
(298
|
)
|
|
(329
|
)
|
|
36
|
|
|
(216
|
)
|
|
(180
|
)
|
|
||||||
Federal funds purchased and securities loaned or sold under repurchase agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
(12
|
)
|
|
248
|
|
|
236
|
|
|
(21
|
)
|
|
48
|
|
|
27
|
|
|
||||||
Non-U.S.
|
(50
|
)
|
|
(181
|
)
|
|
(231
|
)
|
|
(113
|
)
|
|
108
|
|
|
(5
|
)
|
|
||||||
Trading liabilities – debt, short-term and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
66
|
|
|
(176
|
)
|
|
(110
|
)
|
|
(27
|
)
|
|
(262
|
)
|
|
(289
|
)
|
|
||||||
Non-U.S.
|
(81
|
)
|
|
77
|
|
|
(4
|
)
|
|
71
|
|
|
(152
|
)
|
|
(81
|
)
|
|
||||||
Beneficial interests issued by consolidated VIEs, predominantly U.S.
|
11
|
|
|
19
|
|
|
30
|
|
|
(57
|
)
|
|
(16
|
)
|
|
(73
|
)
|
|
||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S.
|
251
|
|
|
(231
|
)
|
|
20
|
|
|
118
|
|
|
(701
|
)
|
|
(583
|
)
|
|
||||||
Non-U.S.
|
(4
|
)
|
|
10
|
|
|
6
|
|
|
1
|
|
|
(16
|
)
|
|
(15
|
)
|
|
||||||
Intercompany funding:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
(1
|
)
|
|
184
|
|
|
183
|
|
|
72
|
|
|
91
|
|
|
163
|
|
|
||||||
Non-U.S.
|
1
|
|
|
(184
|
)
|
|
(183
|
)
|
|
(72
|
)
|
|
(91
|
)
|
|
(163
|
)
|
|
||||||
Change in interest expense
|
160
|
|
|
(594
|
)
|
|
(434
|
)
|
|
45
|
|
|
(1,498
|
)
|
|
(1,453
|
)
|
|
||||||
Change in net interest income
|
$
|
1,485
|
|
|
$
|
(1,484
|
)
|
|
$
|
1
|
|
|
$
|
474
|
|
|
$
|
129
|
|
|
$
|
603
|
|
|
320
|
|
|
|
|
321
|
December 31, (in millions)
|
2015
|
2014
|
2013
|
2012
|
2011
|
||||||||||
U.S. consumer, excluding credit card loans
|
|
|
|
|
|
||||||||||
Home equity
|
$
|
60,548
|
|
$
|
69,837
|
|
$
|
76,790
|
|
$
|
88,356
|
|
$
|
100,497
|
|
Mortgage
|
192,714
|
|
139,973
|
|
129,008
|
|
123,277
|
|
128,709
|
|
|||||
Auto
|
60,255
|
|
54,536
|
|
52,757
|
|
49,913
|
|
47,426
|
|
|||||
Other
|
31,304
|
|
31,028
|
|
30,508
|
|
31,074
|
|
31,795
|
|
|||||
Total U.S. consumer, excluding credit card loans
|
344,821
|
|
295,374
|
|
289,063
|
|
292,620
|
|
308,427
|
|
|||||
Credit card Loans
|
|
|
|
|
|
||||||||||
U.S. credit card loans
|
131,132
|
|
129,067
|
|
125,308
|
|
125,277
|
|
129,587
|
|
|||||
Non-U.S. credit card loans
|
331
|
|
1,981
|
|
2,483
|
|
2,716
|
|
2,690
|
|
|||||
Total credit card loans
|
131,463
|
|
131,048
|
|
127,791
|
|
127,993
|
|
132,277
|
|
|||||
Total consumer loans
|
476,284
|
|
426,422
|
|
416,854
|
|
420,613
|
|
440,704
|
|
|||||
U.S. wholesale loans
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
83,739
|
|
78,664
|
|
79,436
|
|
77,900
|
|
65,958
|
|
|||||
Real estate
|
90,836
|
|
77,022
|
|
67,815
|
|
59,369
|
|
53,230
|
|
|||||
Financial institutions
|
12,708
|
|
13,743
|
|
11,087
|
|
10,708
|
|
8,489
|
|
|||||
Government agencies
|
9,838
|
|
7,574
|
|
8,316
|
|
7,962
|
|
7,236
|
|
|||||
Other
|
67,925
|
|
49,838
|
|
48,158
|
|
50,948
|
|
52,126
|
|
|||||
Total U.S. wholesale loans
|
265,046
|
|
226,841
|
|
214,812
|
|
206,887
|
|
187,039
|
|
|||||
Non-U.S. wholesale loans
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
30,385
|
|
34,782
|
|
36,447
|
|
36,674
|
|
31,108
|
|
|||||
Real estate
|
4,577
|
|
2,224
|
|
1,621
|
|
1,757
|
|
1,748
|
|
|||||
Financial institutions
|
17,188
|
|
21,099
|
|
22,813
|
|
26,564
|
|
30,262
|
|
|||||
Government agencies
|
1,788
|
|
1,122
|
|
2,146
|
|
1,586
|
|
583
|
|
|||||
Other
|
42,031
|
|
44,846
|
|
43,725
|
|
39,715
|
|
32,276
|
|
|||||
Total non-U.S. wholesale loans
|
95,969
|
|
104,073
|
|
106,752
|
|
106,296
|
|
95,977
|
|
|||||
Total wholesale loans
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
114,124
|
|
113,446
|
|
115,883
|
|
114,574
|
|
97,066
|
|
|||||
Real estate
|
95,413
|
|
79,246
|
|
69,436
|
|
61,126
|
|
54,978
|
|
|||||
Financial institutions
|
29,896
|
|
34,842
|
|
33,900
|
|
37,272
|
|
38,751
|
|
|||||
Government agencies
|
11,626
|
|
8,696
|
|
10,462
|
|
9,548
|
|
7,819
|
|
|||||
Other
|
109,956
|
|
94,684
|
|
91,883
|
|
90,663
|
|
84,402
|
|
|||||
Total wholesale loans
|
361,015
|
|
330,914
|
|
321,564
|
|
313,183
|
|
283,016
|
|
|||||
Total loans
(a)
|
$
|
837,299
|
|
$
|
757,336
|
|
$
|
738,418
|
|
$
|
733,796
|
|
$
|
723,720
|
|
Memo:
|
|
|
|
|
|
||||||||||
Loans held-for-sale
|
$
|
1,646
|
|
$
|
7,217
|
|
$
|
12,230
|
|
$
|
4,406
|
|
$
|
2,626
|
|
Loans at fair value
|
2,861
|
|
2,611
|
|
2,011
|
|
2,555
|
|
2,097
|
|
|||||
Total loans held-for-sale and loans at fair value
|
$
|
4,507
|
|
$
|
9,828
|
|
$
|
14,241
|
|
$
|
6,961
|
|
$
|
4,723
|
|
(a)
|
Loans (other than purchased credit-impaired loans and those for which the fair value option have been elected) are presented net of unearned income, unamortized discounts and premiums, and net deferred loan costs. These amounts were not material as of
December 31, 2015
,
2014
,
2013
,
2012
and
2011
.
|
322
|
|
|
December 31, 2015 (in millions)
|
Within
1 year
(a)
|
1-5
years
|
After 5
years
|
Total
|
||||||||
U.S.
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
13,641
|
|
$
|
57,210
|
|
$
|
12,888
|
|
$
|
83,739
|
|
Real estate
|
7,173
|
|
19,823
|
|
63,840
|
|
90,836
|
|
||||
Financial institutions
|
8,093
|
|
4,044
|
|
571
|
|
12,708
|
|
||||
Government agencies
|
1,040
|
|
3,140
|
|
5,658
|
|
9,838
|
|
||||
Other
|
24,196
|
|
41,795
|
|
1,934
|
|
67,925
|
|
||||
Total U.S.
|
54,143
|
|
126,012
|
|
84,891
|
|
265,046
|
|
||||
Non-U.S.
|
|
|
|
|
||||||||
Commercial and industrial
|
9,061
|
|
15,913
|
|
5,411
|
|
30,385
|
|
||||
Real estate
|
1,895
|
|
2,626
|
|
56
|
|
4,577
|
|
||||
Financial institutions
|
13,114
|
|
4,072
|
|
2
|
|
17,188
|
|
||||
Government agencies
|
803
|
|
252
|
|
733
|
|
1,788
|
|
||||
Other
|
32,901
|
|
8,532
|
|
598
|
|
42,031
|
|
||||
Total non-U.S.
|
57,774
|
|
31,395
|
|
6,800
|
|
95,969
|
|
||||
Total wholesale loans
|
$
|
111,917
|
|
$
|
157,407
|
|
$
|
91,691
|
|
$
|
361,015
|
|
Loans at fixed interest rates
|
|
$
|
8,982
|
|
$
|
62,274
|
|
|
||||
Loans at variable interest rates
|
|
148,425
|
|
29,417
|
|
|
||||||
Total wholesale loans
|
|
$
|
157,407
|
|
$
|
91,691
|
|
|
(a)
|
Includes demand loans and overdrafts.
|
December 31, (in millions)
|
2015
|
2014
|
2013
|
2012
|
2011
|
||||||||||
Nonperforming assets
|
|
|
|
|
|
||||||||||
U.S. nonaccrual loans:
|
|
|
|
|
|
||||||||||
Consumer, excluding credit card loans
|
$
|
5,413
|
|
$
|
6,509
|
|
$
|
7,496
|
|
$
|
9,174
|
|
$
|
7,411
|
|
Credit card loans
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
|
|||||
Total U.S. nonaccrual consumer loans
|
5,413
|
|
6,509
|
|
7,496
|
|
9,175
|
|
7,412
|
|
|||||
Wholesale:
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
315
|
|
184
|
|
317
|
|
702
|
|
936
|
|
|||||
Real estate
|
175
|
|
237
|
|
338
|
|
520
|
|
886
|
|
|||||
Financial institutions
|
4
|
|
12
|
|
19
|
|
60
|
|
76
|
|
|||||
Government agencies
|
—
|
|
—
|
|
1
|
|
—
|
|
—
|
|
|||||
Other
|
86
|
|
59
|
|
97
|
|
153
|
|
234
|
|
|||||
Total U.S. wholesale nonaccrual loans
|
580
|
|
492
|
|
772
|
|
1,435
|
|
2,132
|
|
|||||
Total U.S. nonaccrual loans
|
5,993
|
|
7,001
|
|
8,268
|
|
10,610
|
|
9,544
|
|
|||||
Non-U.S. nonaccrual loans:
|
|
|
|
|
|
||||||||||
Consumer, excluding credit card loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Credit card loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total non-U.S. nonaccrual consumer loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Wholesale:
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
314
|
|
21
|
|
116
|
|
131
|
|
79
|
|
|||||
Real estate
|
63
|
|
23
|
|
88
|
|
89
|
|
—
|
|
|||||
Financial institutions
|
6
|
|
7
|
|
8
|
|
—
|
|
—
|
|
|||||
Government agencies
|
—
|
|
—
|
|
—
|
|
5
|
|
16
|
|
|||||
Other
|
53
|
|
81
|
|
60
|
|
57
|
|
354
|
|
|||||
Total non-U.S. wholesale nonaccrual loans
|
436
|
|
132
|
|
272
|
|
282
|
|
449
|
|
|||||
Total non-U.S. nonaccrual loans
|
436
|
|
132
|
|
272
|
|
282
|
|
449
|
|
|||||
Total nonaccrual loans
|
6,429
|
|
7,133
|
|
8,540
|
|
10,892
|
|
9,993
|
|
|||||
Derivative receivables
|
204
|
|
275
|
|
415
|
|
239
|
|
297
|
|
|||||
Assets acquired in loan satisfactions
|
401
|
|
559
|
|
751
|
|
775
|
|
1,025
|
|
|||||
Nonperforming assets
|
$
|
7,034
|
|
$
|
7,967
|
|
$
|
9,706
|
|
$
|
11,906
|
|
$
|
11,315
|
|
Memo:
|
|
|
|
|
|
||||||||||
Loans held-for-sale
|
$
|
101
|
|
$
|
95
|
|
$
|
26
|
|
$
|
18
|
|
$
|
110
|
|
Loans at fair value
|
25
|
|
21
|
|
197
|
|
265
|
|
73
|
|
|||||
Total loans held-for-sale and loans at fair value
|
$
|
126
|
|
$
|
116
|
|
$
|
223
|
|
$
|
283
|
|
$
|
183
|
|
|
|
323
|
December 31, (in millions)
|
2015
|
2014
|
2013
|
2012
|
2011
|
||||||||||
Contractually past-due loans
(a)
|
|
|
|
|
|
||||||||||
U.S. loans:
|
|
|
|
|
|
||||||||||
Consumer, excluding credit card loans
|
$
|
290
|
|
$
|
367
|
|
$
|
428
|
|
$
|
525
|
|
$
|
551
|
|
Credit card loans
|
944
|
|
893
|
|
997
|
|
1,268
|
|
1,867
|
|
|||||
Total U.S. consumer loans
|
1,234
|
|
1,260
|
|
1,425
|
|
1,793
|
|
2,418
|
|
|||||
Wholesale:
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
6
|
|
14
|
|
14
|
|
19
|
|
—
|
|
|||||
Real estate
|
15
|
|
33
|
|
14
|
|
69
|
|
84
|
|
|||||
Financial institutions
|
1
|
|
—
|
|
—
|
|
6
|
|
2
|
|
|||||
Government agencies
|
6
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Other
|
28
|
|
26
|
|
16
|
|
30
|
|
6
|
|
|||||
Total U.S. wholesale loans
|
56
|
|
73
|
|
44
|
|
124
|
|
92
|
|
|||||
Total U.S. loans
|
1,290
|
|
1,333
|
|
1,469
|
|
1,917
|
|
2,510
|
|
|||||
Non-U.S. loans:
|
|
|
|
|
|
||||||||||
Consumer, excluding credit card loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Credit card loans
|
—
|
|
2
|
|
25
|
|
34
|
|
36
|
|
|||||
Total non-U.S. consumer loans
|
—
|
|
2
|
|
25
|
|
34
|
|
36
|
|
|||||
Wholesale:
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Financial institutions
|
10
|
|
—
|
|
6
|
|
—
|
|
—
|
|
|||||
Government agencies
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Other
|
—
|
|
3
|
|
—
|
|
14
|
|
8
|
|
|||||
Total non-U.S. wholesale loans
|
11
|
|
3
|
|
6
|
|
14
|
|
8
|
|
|||||
Total non-U.S. loans
|
11
|
|
5
|
|
31
|
|
48
|
|
44
|
|
|||||
Total contractually past due loans
|
$
|
1,301
|
|
$
|
1,338
|
|
$
|
1,500
|
|
$
|
1,965
|
|
$
|
2,554
|
|
(a)
|
Represents accruing loans past-due 90 days or more as to principal and interest, which are not characterized as nonaccrual loans.
|
(a)
|
Represents performing loans modified in troubled debt restructurings in which an economic concession was granted by the Firm and the borrower has demonstrated its ability to repay the loans according to the terms of the restructuring. As defined in U.S. GAAP, concessions include the reduction of interest rates or the deferral of interest or principal payments, resulting from deterioration in the borrowers’ financial condition. Excludes nonaccrual assets and contractually past-due assets, which are included in the sections above.
|
(b)
|
Includes credit card loans that have been modified in a troubled debt restructuring.
|
324
|
|
|
|
|
325
|
326
|
|
|
(a)
|
Prior periods were revised to conform with the current presentation.
|
(b)
|
Consists primarily of commercial and industrial.
|
(c)
|
Outstandings include loans and accrued interest receivable, interest-bearing deposits with banks, acceptances, resale agreements, other monetary assets, cross-border trading debt and equity instruments, fair value of foreign exchange and derivative contracts, and local country assets, net of local country liabilities. The amounts associated with foreign exchange and derivative contracts are presented after taking into account the impact of legally enforceable master netting agreements.
|
(d)
|
Commitments include outstanding letters of credit, undrawn commitments to extend credit, and the gross notional value of credit derivatives where
JPMorgan Chase
is a protection seller.
|
|
|
327
|
(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). During the fourth quarter of 2014, the Firm recorded a $291 million adjustment to reduce the PCI allowance and the recorded investment in the Firm’s PCI loan portfolio, primarily reflecting the cumulative effect of interest forgiveness modifications. This adjustment had no impact to the Firm’s Consolidated statements of income.
|
328
|
|
|
Year ended December 31, (in millions)
|
2015
|
2014
|
2013
|
2012
|
2011
|
||||||||||
Balance at beginning of year
|
$
|
622
|
|
$
|
705
|
|
$
|
668
|
|
$
|
673
|
|
$
|
717
|
|
Provision for lending-related commitments
|
164
|
|
(85
|
)
|
37
|
|
(2
|
)
|
(38
|
)
|
|||||
Net charge-offs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Other
|
—
|
|
2
|
|
—
|
|
(3
|
)
|
(6
|
)
|
|||||
Balance at year-end
|
$
|
786
|
|
$
|
622
|
|
$
|
705
|
|
$
|
668
|
|
$
|
673
|
|
Loan loss analysis
|
|
|
|
|
|
||||||||||
As of or for the year ended December 31,
(in millions, except ratios)
|
2015
|
2014
|
2013
|
2012
|
2011
|
||||||||||
Balances
|
|
|
|
|
|
||||||||||
Loans – average
|
$
|
787,318
|
|
$
|
739,175
|
|
$
|
726,450
|
|
$
|
722,384
|
|
$
|
693,523
|
|
Loans – year-end
|
837,299
|
|
757,336
|
|
738,418
|
|
733,796
|
|
723,720
|
|
|||||
Net charge-offs
(a)
|
4,086
|
|
4,759
|
|
5,802
|
|
9,063
|
|
12,237
|
|
|||||
Allowance for loan losses:
|
|
|
|
|
|
||||||||||
U.S.
|
$
|
12,704
|
|
$
|
13,472
|
|
$
|
15,382
|
|
$
|
20,946
|
|
$
|
26,621
|
|
Non-U.S.
|
851
|
|
713
|
|
882
|
|
990
|
|
988
|
|
|||||
Total allowance for loan losses
|
$
|
13,555
|
|
$
|
14,185
|
|
$
|
16,264
|
|
$
|
21,936
|
|
$
|
27,609
|
|
Nonaccrual loans
|
$
|
6,429
|
|
$
|
7,133
|
|
$
|
8,540
|
|
$
|
10,892
|
|
$
|
9,993
|
|
Ratios
|
|
|
|
|
|
||||||||||
Net charge-offs to:
|
|
|
|
|
|
||||||||||
Loans retained – average
|
0.52
|
%
|
0.65
|
%
|
0.81
|
%
|
1.26
|
%
|
1.78
|
%
|
|||||
Allowance for loan losses
|
30.14
|
|
33.55
|
|
35.67
|
|
41.32
|
|
44.32
|
|
|||||
Allowance for loan losses to:
|
|
|
|
|
|
||||||||||
Loans retained – year-end
(b)
|
1.63
|
|
1.90
|
|
2.25
|
|
3.02
|
|
3.84
|
|
|||||
Nonaccrual loans retained
|
215
|
|
202
|
|
196
|
|
207
|
|
281
|
|
(a)
|
There were no net charge-offs/(recoveries) on lending-related commitments in
2015
,
2014
,
2013
,
2012
or
2011
.
|
(b)
|
The allowance for loan losses as a percentage of retained loans declined from
2011
to
2015
, due to an improvement in credit quality of the consumer and wholesale credit portfolios. For a more detailed discussion of the
2013
through
2015
provision for credit losses, see Provision for credit losses on
page 132
.
|
|
|
329
|
Year ended December 31,
|
Average balances
|
|
Average interest rates
|
|||||||||||||||||
(in millions, except interest rates)
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||
U.S. offices
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest-bearing
|
$
|
403,143
|
|
|
$
|
376,947
|
|
|
$
|
346,765
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Interest-bearing
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Demand
|
78,516
|
|
|
75,553
|
|
|
63,045
|
|
|
0.11
|
|
|
0.10
|
|
|
0.09
|
|
|||
Savings
|
475,142
|
|
|
459,186
|
|
|
429,289
|
|
|
0.07
|
|
|
0.10
|
|
|
0.13
|
|
|||
Time
|
85,098
|
|
|
86,007
|
|
|
89,948
|
|
|
0.38
|
|
|
0.35
|
|
|
0.51
|
|
|||
Total interest-bearing deposits
|
638,756
|
|
|
620,746
|
|
|
582,282
|
|
|
0.12
|
|
|
0.13
|
|
|
0.18
|
|
|||
Total deposits in U.S. offices
|
1,041,899
|
|
|
997,693
|
|
|
929,047
|
|
|
0.07
|
|
|
0.08
|
|
|
0.11
|
|
|||
Non-U.S. offices
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest-bearing
|
20,073
|
|
|
18,516
|
|
|
19,596
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Interest-bearing
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Demand
|
185,331
|
|
|
208,364
|
|
|
196,300
|
|
|
0.13
|
|
|
0.22
|
|
|
0.22
|
|
|||
Savings
|
2,418
|
|
|
2,179
|
|
|
1,374
|
|
|
0.11
|
|
|
0.13
|
|
|
0.11
|
|
|||
Time
|
46,067
|
|
|
37,549
|
|
|
42,825
|
|
|
0.54
|
|
|
0.97
|
|
|
1.32
|
|
|||
Total interest-bearing deposits
|
233,816
|
|
|
248,092
|
|
|
240,499
|
|
|
0.21
|
|
|
0.33
|
|
|
0.42
|
|
|||
Total deposits in non-U.S. offices
|
253,889
|
|
|
266,608
|
|
|
260,095
|
|
|
0.19
|
|
|
0.31
|
|
|
0.38
|
|
|||
Total deposits
|
$
|
1,295,788
|
|
|
$
|
1,264,301
|
|
|
$
|
1,189,142
|
|
|
0.10
|
%
|
|
0.13
|
%
|
|
0.17
|
%
|
By remaining maturity at
December 31, 2015 (in millions)
|
Three months
or less
|
|
Over three months
but within six months
|
|
Over six months
but within 12 months
|
|
Over 12 months
|
|
Total
|
||||||||||
U.S. time certificates of deposit ($100,000 or more)
|
$
|
7,520
|
|
|
$
|
1,537
|
|
|
$
|
1,770
|
|
|
$
|
1,745
|
|
|
$
|
12,572
|
|
330
|
|
|
As of or for the year ended December 31, (in millions, except rates)
|
2015
|
|
2014
|
|
2013
|
||||||
Federal funds purchased and securities loaned or sold under repurchase agreements:
|
|
|
|
|
|
||||||
Balance at year-end
|
$
|
152,678
|
|
|
$
|
192,101
|
|
|
$
|
181,163
|
|
Average daily balance during the year
|
192,510
|
|
|
208,560
|
|
|
238,551
|
|
|||
Maximum month-end balance
|
212,112
|
|
|
228,162
|
|
|
272,718
|
|
|||
Weighted-average rate at December 31
|
0.39
|
%
|
|
0.27
|
%
|
|
0.31
|
%
|
|||
Weighted-average rate during the year
|
0.32
|
|
|
0.29
|
|
|
0.24
|
|
|||
|
|
|
|
|
|
||||||
Commercial paper:
|
|
|
|
|
|
||||||
Balance at year-end
|
$
|
15,562
|
|
|
$
|
66,344
|
|
|
$
|
57,848
|
|
Average daily balance during the year
|
38,140
|
|
|
59,916
|
|
|
53,717
|
|
|||
Maximum month-end balance
|
64,012
|
|
|
66,344
|
|
|
58,835
|
|
|||
Weighted-average rate at December 31
|
0.55
|
%
|
|
0.22
|
%
|
|
0.22
|
%
|
|||
Weighted-average rate during the year
|
0.29
|
|
|
0.22
|
|
|
0.21
|
|
|||
|
|
|
|
|
|
||||||
Other borrowed funds:
(a)
|
|
|
|
|
|
||||||
Balance at year-end
|
$
|
80,126
|
|
|
$
|
96,455
|
|
|
$
|
92,774
|
|
Average daily balance during the year
|
93,001
|
|
|
100,189
|
|
|
93,937
|
|
|||
Maximum month-end balance
|
99,226
|
|
|
107,950
|
|
|
103,526
|
|
|||
Weighted-average rate at December 31
|
1.89
|
%
|
|
1.73
|
%
|
|
2.49
|
%
|
|||
Weighted-average rate during the year
|
1.84
|
|
|
1.89
|
|
|
2.27
|
|
|||
|
|
|
|
|
|
||||||
Short-term beneficial interests
:
(b)
|
|
|
|
|
|
||||||
Commercial paper and other borrowed funds:
|
|
|
|
|
|
||||||
Balance at year-end
|
$
|
11,322
|
|
|
$
|
16,953
|
|
|
$
|
17,786
|
|
Average daily balance during the year
|
15,608
|
|
|
14,073
|
|
|
22,245
|
|
|||
Maximum month-end balance
|
17,137
|
|
|
17,026
|
|
|
28,559
|
|
|||
Weighted-average rate at December 31
|
0.41
|
%
|
|
0.23
|
%
|
|
0.29
|
%
|
|||
Weighted-average rate during the year
|
0.32
|
|
|
0.30
|
|
|
0.26
|
|
(a)
|
Includes interest-bearing securities sold but not yet purchased.
|
(b)
|
Included on the Consolidated balance sheets in beneficial interests issued by consolidated variable interest entities.
|
|
|
331
|
|
JPMorgan Chase & Co.
(Registrant)
|
|
By: /s/ JAMES DIMON
|
|
(James Dimon
Chairman and Chief Executive Officer)
|
|
February 23, 2016
|
|
|
Capacity
|
|
Date
|
/s/ JAMES DIMON
|
|
Director, Chairman and Chief Executive Officer
(Principal Executive Officer)
|
|
|
(James Dimon)
|
|
|
|
|
|
|
|
|
|
/s/ LINDA B. BAMMANN
|
|
Director
|
|
|
(Linda B. Bammann)
|
|
|
|
|
|
|
|
|
|
/s/ JAMES A. BELL
|
|
Director
|
|
|
(James A. Bell)
|
|
|
|
|
|
|
|
|
|
/s/ CRANDALL C. BOWLES
|
|
Director
|
|
|
(Crandall C. Bowles)
|
|
|
|
|
|
|
|
|
|
/s/ STEPHEN B. BURKE
|
|
Director
|
|
|
(Stephen B. Burke)
|
|
|
|
|
|
|
|
|
|
/s/ JAMES S. CROWN
|
|
Director
|
|
February 23, 2016
|
(James S. Crown)
|
|
|
|
|
|
|
|
|
|
/s/ TIMOTHY P. FLYNN
|
|
Director
|
|
|
(Timothy P. Flynn)
|
|
|
|
|
|
|
|
|
|
/s/ LABAN P. JACKSON, JR.
|
|
Director
|
|
|
(Laban P. Jackson, Jr.)
|
|
|
|
|
|
|
|
|
|
/s/ MICHAEL A. NEAL
|
|
Director
|
|
|
(Michael A. Neal)
|
|
|
|
|
|
|
|
|
|
/s/ LEE R. RAYMOND
|
|
Director
|
|
|
(Lee R. Raymond)
|
|
|
|
|
|
|
|
|
|
/s/ WILLIAM C. WELDON
|
|
Director
|
|
|
(William C. Weldon)
|
|
|
|
|
|
|
|
|
|
/s/ MARIANNE LAKE
|
|
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
|
(Marianne Lake)
|
|
|
|
|
|
|
|
|
|
/s/ MARK W. O’DONOVAN
|
|
Managing Director and Corporate Controller
(Principal Accounting Officer)
|
|
|
(Mark W. O’Donovan)
|
|
|
|
332
|
|
|
|
|
1
|
2
|
|
|
|
|
3
|
Ø
Non-Solicitation of Employees and Customers
|
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.
|
||
Ø
Confidential Information
|
You will not, either during your employment with the Firm or thereafter, directly or indirectly (i) use or disclose to anyone any confidential information related to the Firm’s business, or (ii) communicate with the press or other media about matters related to the Firm, its customers or employees, including matters and activities relating to your employment, or the employment of others, by the Firm, in the case of either (i) or (ii), except as explicitly permitted by the JPMorgan Chase Code of Conduct and applicable policies or law or legal process. In addition, following your termination of employment, you will not, without prior written authorization, access the Firm’s private and internal information through telephonic, intranet or internet means. “Confidential information” shall have the same meaning for the Award Agreement as it has in the JPMorgan Chase Code of Conduct. Nothing in this award precludes you from reporting to the Firm’s management or directors or to the government, a regulator or self-regulatory agency conduct you believe to be in violation of the law or responding truthfully to questions or requests from the government, a regulator or in a court of law.
|
||
Ø
Non-Disparagement
|
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.
|
||
Ø
Cooperation
|
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.
|
||
Ø
Compliance with Award Agreement
|
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.
|
||
Ø
Notice Period
|
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.
|
||
|
|
4
|
|
|
Remedies
|
|
||
Ø
Cancellation
|
In addition to the cancellation provisions described under the sections captioned “
Protection-Based Vesting
,” “
Bonus Recoupment
,” “
Recapture Provisions
” and “
Termination of Employment,
” 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. JPMorgan Chase will not be responsible for any price fluctuations during any period of suspension and, if applicable, suspended units will be reinstated consistent with Plan administration procedures. See also subsection captioned, “--No Ownership Rights.”
|
||
Ø
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 of Common Stock distributed within the three year period
prior to a notice-of-recovery under this section, if the Firm in its sole discretion determines that:
○
you committed a fraudulent act, or engaged in knowing and willful misconduct related to your employment,
○
you violated any of the provisions as set forth above in the section captioned “
Your Obligations,
” or
○
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 the one year period 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.”
|
|
|
5
|
Administrative Provisions
|
Withholding Taxes:
The Firm, in its sole discretion, may (i) retain from each distribution the number of shares of Common Stock required to satisfy applicable tax obligations (including, to the extent legally permissible, recovery by the Firm of fringe benefit taxes) or (ii) implement any other desirable or necessary procedures, so that appropriate withholding and other taxes are paid to the competent authorities with respect to the vested shares, dividend equivalents and the award. This may include but is not limited to (i) a market sale of a number of such shares on your behalf substantially equal to the withholding or other taxes, (ii) to the extent required by law, withhold from cash compensation, an amount equal to any withholding obligation with respect to the award, vested shares, and/or dividend equivalents, and (iii) retaining vested shares or dividend equivalents until you pay any taxes associated with the award, vested shares and/or the dividend equivalents directly to the competent authorities.
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.
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 “
Protection-Based Vesting
,” “
Bonus Recoupment
,” “
Recapture Provisions,”
“
Termination of Employment
” and “
Remedies”
) apply, then you agree that any shares subject to such restrictions (notwithstanding the limitation 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.
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.
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.
|
6
|
|
|
|
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.
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 divestiture 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 process your personal data (including sensitive personal data) for purposes, including but not limited to(i) determining your compensation, (ii) payroll activities, including, but not limited to, tax withholding and regulatory reporting, which tax and regulatory reporting and withholding may include, but is not limited to, the United States, your work country (including countries to which you travel on Firm business) and country of residence, (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 and/or other bodies, including regulators, supervisory bodies, law enforcement and other government agencies. You are acknowledging and agreeing that your personal data will be transferred to, and processed in, countries and locations that do not have the same data privacy laws and statutory protection for personal data as your work country, country of residence, or country of nationality. If your personal data is subject to data privacy laws or statutory protection for personal data and they so provide for termination of the foregoing authorization, you may terminate the authorization at any time except with respect to tax and regulatory reporting and subject always to the Firm’s legal and regulatory obligations. In the event you terminate this authorization, 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.
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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7
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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, payment servicing or processing or merchant services,
• 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.
“
Firmwide Financial Threshold
” means a cumulative return on tangible common equity for 2016, 2017 and 2018 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 Lines of Business based on the Firm’s management reporting system:
|
Asset Management
|
Annual negative pre-provision net income
|
Card Services
|
Annual negative pre-tax, pre loan loss reserve income
|
Commercial banking
|
Annual negative pre-provision net income including loan charge-offs
|
Corporate Investment Bank
|
Annual negative pre-provision net income for CIB overall and/or annual negative allocated product revenues (excluding DVA) for:
• Macro Products:
• Currency and Emerging Markets
• Rates
• Commodities
• Spread Products
• Credit
• SPG
• Public Finance
• Equities
• Investor Services
• Global Banking
|
Consumer Banking Business
|
Annual negative pre-provision net income
|
Corporate Functions
(including Chief Investment Office)
|
Annual negative pre-provision net income at the Firm level
|
Mortgage Banking
|
Annual negative pre-provision net income excluding losses from liquidating portfolios and MSR Trading
|
8
|
|
|
|
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9
|
10
|
|
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11
|
|
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12
|
|
|
Ø
Non-Solicitation of Employees and Customers
|
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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Ø
Confidential Information
|
You will not, either during your employment with the Firm or thereafter, directly or indirectly (i) use or disclose to anyone any confidential information related to the Firm’s business, or (ii) communicate with the press or other media about matters related to the Firm, its customers or employees, including matters and activities relating to your employment, or the employment of others, by the Firm, in the case of either (i) or (ii), except as explicitly permitted by the JPMorgan Chase Code of Conduct and applicable policies or law or legal process. In addition, following your termination of employment, you will not, without prior written authorization, access the Firm’s private and internal information through telephonic, intranet or internet means. “Confidential information” shall have the same meaning for the Award Agreement as it has in the JPMorgan Chase Code of Conduct. Nothing in this award precludes you from reporting to the Firm’s management or directors or to the government, a regulator or self-regulatory agency conduct you believe to be in violation of the law or responding truthfully to questions or requests from the government, a regulator or in a court of law.
|
||
Ø
Non-Disparagement
|
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.
|
||
Ø
Cooperation
|
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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Ø
Compliance with Award Agreement
|
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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Ø
Notice Period
|
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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13
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Remedies
|
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Ø
Cancellation
|
In addition to the cancellation provisions described under the sections captioned “
Protection-Based Vesting
,” “
Bonus Recoupment
,” "
UK Clawback Policy for Identified Staff
," “
Recapture Provisions
” and “
Termination of Employment,
” 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. JPMorgan Chase will not be responsible for any price fluctuations during any period of suspension and, if applicable, suspended units will be reinstated consistent with Plan administration procedures. See also subsection captioned, “--No Ownership Rights.”
|
||
Ø
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 (or cash in lieu of shares) previously distributed under this award as follows:
• Payment may be required with respect to any shares of Common Stock or cash distributed within the three
year period prior to a notice-of-recovery under this section, if the Firm in its sole discretion determines that:
○
you committed a fraudulent act, or engaged in knowing and willful misconduct related to your employment,
○
you violated any of the provisions as set forth above in the section captioned “
Your Obligations
”, or
○
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 the one year period 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 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
."
|
14
|
|
|
Administrative Provisions
|
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, 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.
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 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.
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 “
Protection-Based Vesting
,” “
Bonus Recoupment
,” “
Recapture Provisions,”
“
Termination of Employment
” 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.
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.
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.
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15
|
|
|
|
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.
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 divestiture 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 process your personal data (including sensitive personal data) for purposes, including but not limited to(i) determining your compensation, (ii) payroll activities, including, but not limited to, tax withholding and regulatory reporting, which tax and regulatory reporting and withholding may include, but is not limited to, the United States, your work country (including countries to which you travel on Firm business) and country of residence, (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 and/or other bodies, including regulators, supervisory bodies, law enforcement and other government agencies. You are acknowledging and agreeing that your personal data will be transferred to, and processed in, countries and locations that do not have the same data privacy laws and statutory protection for personal data as your work country, country of residence, or country of nationality. If your personal data is subject to data privacy laws or statutory protection for personal data and they so provide for termination of the foregoing authorization, you may terminate the authorization at any time except with respect to tax and regulatory reporting and subject always to the Firm’s legal and regulatory obligations. In the event you terminate this authorization, 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.
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.
|
16
|
|
|
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, payment servicing or processing or merchant services,
• 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.
“
Firmwide Financial Threshold
” means a cumulative return on tangible common equity for 2016, 2017 and 2018 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 Lines of Business based on the Firm’s management reporting system:
|
Asset Management
|
Annual negative pre-provision net income
|
Card Services
|
Annual negative pre-tax, pre loan loss reserve income
|
Commercial banking
|
Annual negative pre-provision net income including loan charge-offs
|
Corporate Investment Bank
|
Annual negative pre-provision net income for CIB overall and/or annual negative allocated product revenues (excluding DVA) for:
• Macro Products:
• Currency and Emerging Markets
• Rates
• Commodities
• Spread Products
• Credit
• SPG
• Public Finance
• Equities
• Investor Services
• Global Banking
|
Consumer Banking Business
|
Annual negative pre-provision net income
|
Corporate Functions
(including Chief Investment Office)
|
Annual negative pre-provision net income at the Firm level
|
Mortgage Banking
|
Annual negative pre-provision net income excluding losses from liquidating portfolios and MSR Trading
|
17
|
|
|
18
|
|
|
|
|
353
|
354
|
|
|
|
|
355
|
356
|
|
|
Remedies
|
|
||||
Ø
Cancellation
|
In addition to the cancellation provisions described under the sections captioned “
Bonus Recoupment
,” “
Protection-Based Vesting
,” “
Termination of Employment
” and “
Recapture Provisions,
” your outstanding PSUs 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. The Firm will not be responsible for any price fluctuations during any period of suspension and, if applicable, suspended units will be reinstated consistent with Plan administration procedures. See also “
Administrative Provisions
-No Ownership Rights.”
|
||||
Ø
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 or acceleration date) of the gross number of shares of Common Stock previously distributed, including vested shares subject to the Holding Requirements, under this award as follows:
• Payment may be required with respect to any shares of Common Stock distributed within the three year period prior to a notice-of-recovery under this section, if the Firm in its sole discretion determines that:
○
you committed a fraudulent act, or engaged in knowing and willful misconduct related to your employment;
○
you violated any of the provisions as set forth above in the section captioned “
Your Obligations;
” or
○
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 the one year period 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.”
|
||||
Administrative Provisions
|
Withholding Taxes:
The Firm, in its sole discretion, may (i) retain from each distribution the number of shares of Common Stock required to satisfy applicable tax obligations (including, to the extent legally permissible, recovery by the Firm of fringe benefit taxes) or (ii) implement any other desirable or necessary procedures, so that appropriate withholding and other taxes are paid to the competent authorities with respect to the vested shares 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 and shares that vest under this award , and (iii) retaining vested shares under this award until you pay any taxes associated with the award and vested shares directly to the competent authorities.
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 shares of 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.
|
|
|
357
|
|
No Ownership Rights
: PSUs 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 number of PSUs have been determined, if any, and have vested and any applicable restrictions (other than Holding Requirement) 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 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.
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 vesting date set forth in your Award Agreement shall be a payment date for purposes of distributing the vested
portion of the award.
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 PSUs outstanding under this award for such corporate events.
Other Equitable Adjustments:
The Committee may make adjustments (up or down) to the award as it deems to be equitable, to maintain the intended economics of the award in light of changed circumstances, which may include unusual or non-recurring events affecting the Firm (or the Performance Companies) or its financial statements in each case resulting from changes in accounting methods, practices or policies, changes in capital structure by reason of legal or regulatory requirements and such other changed circumstances, as the Committee may deem appropriate.
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.
|
358
|
|
|
|
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 PSUs, the Firm may accelerate the distribution of all or part of your outstanding award, including Dividend Equivalent Shares, effective on or before the required divestiture date and waive the Holding Requirement; 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. Subject to the two foregoing sections, the number of shares of Common Stock to be received on acceleration shall be determined using the methodology set forth under the section captioned “
Death
.”
To the extent you have vested shares under this award subject to the Holding Requirement and become subject to divestiture requirement as forth herein, the Firm may waive the holding period to the extent required.
Notwithstanding an accelerated distribution or waiver of the Holding Requirement 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 the vesting date, including, but not limited to, repayment obligations set forth in “Remedies” and employment restrictions in the case of “Full Career Eligibility” or required government service period in the case of “Government Office.”
Use of Personal Data:
By accepting this award, you have acknowledged that the Firm may process your personal data (including sensitive personal data) for purposes, including but not limited to (i) determining your compensation, (ii) payroll activities, including, but not limited to, tax withholding and regulatory reporting, which tax and regulatory reporting and withholding may include, but is not limited to, the United States and its political subdivisions, (if not the United States) your work country and its political subdivisions (including countries to which you travel on Firm business) and your country of residence or nationality,(iii) registration of shares, (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 and/or other bodies, including regulators, supervisory bodies, law enforcement and other government agencies. You are acknowledging and agreeing that your personal data will be transferred to and processed in countries and locations that do not have the same data privacy laws and statutory protection for personal data as your work country, country of residence, or country of nationality. If your personal data is subject to data privacy laws or statutory protection for personal data and they so provide for termination of the foregoing authorization, you may terminate the authorization at any time except with respect to tax and regulatory reporting
and subject always to the Firm’s legal and regulatory obligations. In the event you terminate this authorization, 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.
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 or of performance based share 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.
|
|
|
|
359
|
Definitions
|
“Annual PSUs”
means the number of PSUs determined by multiplying the Target Award Number (after giving effect to any cancellation thereof, in whole or in part) by the Target Award Percentage corresponding to the Firm’s Relative Performance Ranking for each applicable performance year (both percentage and ranking, as set forth in the footnote to the Performance Table); provided that if the Firm Reported ROTCE for any completed calendar year in the Performance Period either equals or exceeds 14% or is less than 6%, one hundred fifty percent or zero, respectively as the case may be, shall be substituted for that year’s Target Award Percentage in calculating the number of Annual PSUs for that year. For avoidance of doubt, any cancellation of this award (in whole or in part) during the Performance Period will reduce the Target Award Number.
“Average Tangible Common Equity”
means annual average common stockholders' equity less annual average goodwill and annual average identifiable intangible assets. Annual averages of the components of Average Tangible Common Equity will be calculated using quarterly balances, as reported in publicly available financial disclosures. In the event that quarterly balances are not available, annual year end balances will be used. This calculation is used solely for purposes of the Relative Performance Ranking.
“Calculation Agent”
means a third party entity not owned or controlled by the Firm, such as an accounting or consulting firm, retained from time to time by the Director of Human Resources or his/her delegate.
“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, payment servicing or processing or merchant services,
• 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.
“Firmwide Financial Threshold”
means a cumulative return on tangible common equity for 2016, 2017 and 2018 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.
“Firm Reported ROTCE” means the Firm’s percentage return on tangible common equity for each year in the Performance Period (as calculated for use in its publicly available year-end financial disclosures without taking into account any rounding conventions used for financial reporting purposes).
“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.
|
|
360
|
|
|
Asset Management
|
Annual negative pre-provision net income
|
Card Services
|
Annual negative pre-tax, pre loan loss reserve income
|
Commercial Banking
|
Annual negative pre-provision net income including loan charge-offs
|
Corporate Investment Bank
|
Annual negative pre-provision net income for CIB overall and/or annual negative allocated product revenues (excluding DVA) for:
• Macro Products:
• Currency and Emerging Markets
• Rates
• Commodities
• Spread Products
• Credit
• SPG
• Public Finance
• Equities
• Investor Services
• Global Banking
|
Consumer Banking Business
|
Annual negative pre-provision net income
|
Corporate Functions
(including Chief Investment Office)
|
Annual negative pre-provision net income at the Firm level
|
Mortgage Banking
|
Annual negative pre-provision net income excluding losses from liquidating portfolios and MSR Trading
|
Firm Reported ROTCE
(annual performance)
|
|
Target Award
Percentage
|
|
Relative Performance Ranking
1
(annual performance)
|
|
Target Award
Percentage
1
|
≥
14%
|
|
150%
|
1
st
Quartile
|
|
150%
|
|
6% to <14%
|
|
Pay by relative
ROTCE scale
|
2
nd
Quartile
|
|
100% to 125%
|
|
<6%
|
|
0%
|
3
rd
Quartile
|
|
70% to 100%
|
|
|
|
|
4
th
Quartile
|
|
25% to 55%
|
|
|
361
|
•
|
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.
|
•
|
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.
|
•
|
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.
|
•
|
50% if you have at least 3 but less than 4 years of continuous service,
|
•
|
75% if you have at least 4 but less than 5 years of continuous service, or
|
•
|
100% if you have 5 or more years of continuous service.
|
•
|
You must remain in a non-elective Government Office for two or more years after your employment with the Firm terminates to be eligible to receive the CV Award; provided that if your non-elective Government Office is for a period less than two years, you will be eligible to receive the CV Award if it has a vesting date during your period of Government Service; or
|
362
|
|
|
Award Agreement
|
These terms and conditions are made part of the Award Agreement dated as of January 19, 2016 (“Grant Date”) awarding performance share units (“PSUs”) 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 and Plan.
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 PSU 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 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 further emphasize sustained long-term performance and to align your interests with those of the Firm and its shareholders.
|
||||
Protection-Based Vesting
|
This award is intended and expected to vest on the 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 and the number of PSUs that will vest are subject to these terms and conditions (including, but not limited to, sections captioned “
Recapture Provisions,
” “
Number to Vest on Vesting Date
” and “
Remedie
s” and the following protection-based vesting provision).
Up to a total of fifty percent of your award (including any associated Dividend Equivalent Shares) that would otherwise be distributable to you on the vesting date (“At Risk PSUs”) may be cancelled if 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 PSUs 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, total net revenue, 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 at the Firm level is negative.
• RSU 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.
• The Firm does not meet the Firmwide Financial Threshold.
For avoidance of doubt, cancellation of the At Risk PSUs, in whole or part, for one or more of the above factors may occur prior to the end of the Performance Period and the maximum number of At Risk PSUs subject to cancellation prior to the end of the Performance Period will be up to fifty percent of the Target Award Number.
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 above will continue to apply to your At Risk PSUs.
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.
|
|
|
363
|
364
|
|
|
|
|
365
|
366
|
|
|
Ø
Confidential Information
|
You will not, either during your employment with the Firm or thereafter, directly or indirectly (i) use or disclose to anyone any confidential information related to the Firm’s business, or (ii) communicate with the press or other media about matters related to the Firm, its customers or employees, including matters and activities relating to your employment, or the employment of others, by the Firm, in the case of either (i) or (ii), except as explicitly permitted by the JPMorgan Chase Code of Conduct and applicable policies or law or legal process. In addition, following your termination of employment, you will not, without prior written authorization, access the Firm’s private and internal information through telephonic, intranet or internet means. “Confidential information” shall have the same meaning for the Award Agreement as it has in the JPMorgan Chase Code of Conduct. Nothing in this award precludes you from reporting to the Firm’s management or directors or to the government, a regulator or self-regulatory agency conduct you believe to be in violation of the law or responding truthfully to questions or requests from the government, a regulator or in a court of law.
|
||||
Ø
Non-Disparagement
|
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.
|
||||
Ø
Cooperation
|
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.
|
||||
Ø
Compliance with Award Agreement
|
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.
|
||||
Ø
Notice Period
|
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.
|
||||
Remedies
|
|
||||
Ø
Cancellation
|
In addition to the cancellation provisions described under the sections captioned “
Bonus Recoupment
,” "
UK Clawback Policy for Identified Staff
," “
Protection-Based Vesting
,” “
Termination of Employment
” and “
Recapture Provisions,
” your outstanding PSUs 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. The Firm will not be responsible for any price fluctuations during any period of suspension and, if applicable, suspended units will be reinstated consistent with Plan administration procedures. See also “
Administrative Provisions
-No Ownership Rights.”
|
|
|
367
|
Ø
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 or acceleration date) of the gross number of shares of Common Stock (or cash in lieu of shares) previously distributed, including vested shares subject to the Holding Requirements, under this award as follows:
• Payment may be required with respect to any shares of Common Stock or cash distributed within the three year period prior to a notice-of-recovery under this section, if the Firm in its sole discretion determines that:
○
you committed a fraudulent act, or engaged in knowing and willful misconduct related to your employment;
○
you violated any of the provisions as set forth above in the section captioned “
Your Obligations
;” or
○
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 the one year period 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 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
."
|
||||
Administrative Provisions
|
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 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 and distribution that vest under this award , and (iii) retaining vested shares or cash under this award until you pay any taxes associated with the award and distribution directly to the competent authorities.
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 shares of 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.
|
368
|
|
|
|
No Ownership Rights
: PSUs 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 number of PSUs have been determined, if any, and have vested and any applicable restrictions (other than Holding Requirement) 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 “
Protection-Based Vesting
,” “
Bonus Recoupment
,” "
UK Clawback Policy for Identified Staff
," “
Termination of Employment
,” “
Recapture Provisions”
and “
Remedies”
) apply, then you agree that any shares subject to such restrictions (notwithstanding the limitation 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.
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 vesting date set forth in your Award Agreement shall be a payment date for purposes of distributing the vested
portion of the award.
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 PSUs outstanding under this award for such corporate events.
Other Equitable Adjustments:
The Committee may make adjustments (up or down) to the award as it deems to be equitable, to maintain the intended economics of the award in light of changed circumstances, which may include unusual or non-recurring events affecting the Firm (or the Performance Companies) or its financial statements in each case resulting from changes in accounting methods, practices or policies, changes in capital structure by reason of legal or regulatory requirements and such other changed circumstances, as the Committee may deem appropriate.
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.
|
|
|
369
|
|
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 PSUs, the Firm may accelerate the distribution of all or part of your outstanding award, including Dividend Equivalent Shares, effective on or before the required divestiture date and waive the Holding Requirement; 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. Subject to the two foregoing sections, the number of shares of Common Stock to be received on acceleration shall be determined using the methodology set forth under the section captioned “
Death
.”
To the extent you have vested shares under this award subject to the Holding Requirement and become subject to divestiture requirement as forth herein, the Firm may waive the holding period to the extent required.
Notwithstanding an accelerated distribution or waiver of the Holding Requirement 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 the vesting date, including, but not limited to, repayment obligations set forth in “Remedies” and employment restrictions in the case of “Full Career Eligibility” or required government service period in the case of “Government Office.”
Use of Personal Data:
By accepting this award, you have acknowledged that the Firm may process your personal data (including sensitive personal data) for purposes, including but not limited to (i) determining your compensation, (ii) payroll activities, including, but not limited to, tax withholding and regulatory reporting, which tax and regulatory reporting and withholding may include, but is not limited to, the United States and its political subdivisions, (if not the United States) your work country and its political subdivisions (including countries to which you travel on Firm business) and your country of residence or nationality,(iii) registration of shares, (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 and/or other bodies, including regulators, supervisory bodies, law enforcement and other government agencies. You are acknowledging and agreeing that your personal data will be transferred to and processed in countries and locations that do not have the same data privacy laws and statutory protection for personal data as your work country, country of residence, or country of nationality. If your personal data is subject to data privacy laws or statutory protection for personal data and they so provide for termination of the foregoing authorization, you may terminate the authorization at any time except with respect to tax and regulatory reporting
and subject always to the Firm’s legal and regulatory obligations. In the event you terminate this authorization, 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.
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 or of performance based share 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.
|
|
370
|
|
|
Definitions
|
“Annual PSUs”
means the number of PSUs determined by multiplying the Target Award Number (after giving effect to any cancellation thereof, in whole or in part) by the Target Award Percentage corresponding to the Firm’s Relative Performance Ranking for each applicable performance year (both percentage and ranking, as set forth in the footnote to the Performance Table); provided that if the Firm Reported ROTCE for any completed calendar year in the Performance Period either equals or exceeds 14% or is less than 6%, one hundred fifty percent or zero, respectively as the case may be, shall be substituted for that year’s Target Award Percentage in calculating the number of Annual PSUs for that year. For avoidance of doubt, any cancellation of this award (in whole or in part) during the Performance Period will reduce the Target Award Number.
“Average Tangible Common Equity”
means annual average common stockholders' equity less annual average goodwill and annual average identifiable intangible assets. Annual averages of the components of Average Tangible Common Equity will be calculated using quarterly balances, as reported in publicly available financial disclosures. In the event that quarterly balances are not available, annual year end balances will be used. This calculation is used solely for purposes of the Relative Performance Ranking.
“Calculation Agent”
means a third party entity not owned or controlled by the Firm, such as an accounting or consulting firm, retained from time to time by the Director of Human Resources or his/her delegate.
“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, payment servicing or processing or merchant services,
• 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.
“Firmwide Financial Threshold”
means a cumulative return on tangible common equity for 2016, 2017 and 2018 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.
“Firm Reported ROTCE” means the Firm’s percentage return on tangible common equity for each year in the Performance Period (as calculated for use in its publicly available year-end financial disclosures without taking into account any rounding conventions used for financial reporting purposes).
“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.
|
|
|
|
371
|
Asset Management
|
Annual negative pre-provision net income
|
Card Services
|
Annual negative pre-tax, pre loan loss reserve income
|
Commercial Banking
|
Annual negative pre-provision net income including loan charge-offs
|
Corporate Investment Bank
|
Annual negative pre-provision net income for CIB overall and/or annual negative allocated product revenues (excluding DVA) for:
• Macro Products:
• Currency and Emerging Markets
• Rates
• Commodities
• Spread Products
• Credit
• SPG
• Public Finance
• Equities
• Investor Services
• Global Banking
|
Consumer Banking Business
|
Annual negative pre-provision net income
|
Corporate Functions
(including Chief Investment Office)
|
Annual negative pre-provision net income at the Firm level
|
Mortgage Banking
|
Annual negative pre-provision net income excluding losses from liquidating portfolios and MSR Trading
|
Firm Reported ROTCE
(annual performance)
|
|
Target Award
Percentage
|
|
Relative Performance Ranking
1
(annual performance)
|
|
Target Award
Percentage
1
|
≥
14%
|
|
150%
|
1
st
Quartile
|
|
150%
|
|
6% to <14%
|
|
Pay by relative
ROTCE scale
|
2
nd
Quartile
|
|
100% to 125%
|
|
<6%
|
|
0%
|
3
rd
Quartile
|
|
70% to 100%
|
|
|
|
|
4
th
Quartile
|
|
25% to 55%
|
372
|
|
|
•
|
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.
|
•
|
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.
|
•
|
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.
|
•
|
50% if you have at least 3 but less than 4 years of continuous service,
|
•
|
75% if you have at least 4 but less than 5 years of continuous service, or
|
•
|
100% if you have 5 or more years of continuous service.
|
•
|
You must remain in a non-elective Government Office for two or more years after your employment with the Firm terminates to be eligible to receive the CV Award; provided that if your non-elective Government Office is for a period less than two years, you will be eligible to receive the CV Award if it has a vesting date during your period of Government Service; or
|
|
|
373
|
Year ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|||||
(in millions, except ratios)
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
|||||
Excluding interest on deposits
|
|
|
|
|
|
||||||||||
Income from continuing operations before income taxes
|
$
|
30,702
|
|
$
|
30,699
|
|
$
|
26,675
|
|
$
|
29,566
|
|
$
|
27,358
|
|
Fixed charges:
|
|
|
|
|
|
||||||||||
Interest expense
|
6,211
|
|
6,264
|
|
7,610
|
|
8,498
|
|
9,749
|
|
|||||
One-third of rents, net of income from subleases
(a)
|
535
|
|
624
|
|
616
|
|
554
|
|
562
|
|
|||||
Total fixed charges
|
6,746
|
|
6,888
|
|
8,226
|
|
9,052
|
|
10,311
|
|
|||||
Add: Equity in undistributed loss of affiliates/Less: Equity in undistributed income of affiliates
|
406
|
|
1,026
|
|
770
|
|
172
|
|
59
|
|
|||||
Income from continuing operations before income taxes and fixed charges, excluding capitalized interest
|
$
|
37,854
|
|
$
|
38,613
|
|
$
|
35,671
|
|
$
|
38,790
|
|
$
|
37,728
|
|
Fixed charges, as above
|
$
|
6,746
|
|
$
|
6,888
|
|
$
|
8,226
|
|
$
|
9,052
|
|
$
|
10,311
|
|
Ratio of earnings to fixed charges
|
5.61
|
|
5.61
|
|
4.34
|
|
4.29
|
|
3.66
|
|
|||||
Including interest on deposits
|
|
|
|
|
|
||||||||||
Fixed charges as above
|
$
|
6,746
|
|
$
|
6,888
|
|
$
|
8,226
|
|
$
|
9,052
|
|
$
|
10,311
|
|
Add: Interest on deposits
|
1,252
|
|
1,633
|
|
2,067
|
|
2,655
|
|
3,855
|
|
|||||
Total fixed charges and interest on deposits
|
$
|
7,998
|
|
$
|
8,521
|
|
$
|
10,293
|
|
$
|
11,707
|
|
$
|
14,166
|
|
Income from continuing operations before income taxes and fixed charges, excluding capitalized interest, as above
|
$
|
37,854
|
|
$
|
38,613
|
|
$
|
35,671
|
|
$
|
38,790
|
|
$
|
37,728
|
|
Add: Interest on deposits
|
1,252
|
|
1,633
|
|
2,067
|
|
2,655
|
|
3,855
|
|
|||||
Total income from continuing operations before income taxes, fixed charges and interest on deposits
|
$
|
39,106
|
|
$
|
40,246
|
|
$
|
37,738
|
|
$
|
41,445
|
|
$
|
41,583
|
|
Ratio of earnings to fixed charges
|
4.89
|
|
4.72
|
|
3.67
|
|
3.54
|
|
2.94
|
|
(a)
|
The proportion deemed representative of the interest factor.
|
Year ended December 31,
|
|
|
|
|
|
|
|
|
|||||||
(in millions, except ratios)
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
|||||
Excluding interest on deposits
|
|
|
|
|
|
||||||||||
Income from continuing operations before income taxes
|
$
|
30,702
|
|
$
|
30,699
|
|
$
|
26,675
|
|
$
|
29,566
|
|
$
|
27,358
|
|
Fixed charges:
|
|
|
|
|
|
||||||||||
Interest expense
|
6,211
|
|
6,264
|
|
7,610
|
|
8,498
|
|
9,749
|
|
|||||
One-third of rents, net of income from subleases
(a)
|
535
|
|
624
|
|
616
|
|
554
|
|
562
|
|
|||||
Total fixed charges
|
6,746
|
|
6,888
|
|
8,226
|
|
9,052
|
|
10,311
|
|
|||||
Add: Equity in undistributed loss of affiliates/Less: Equity in undistributed income of affiliates
|
406
|
|
1,026
|
|
770
|
|
172
|
|
59
|
|
|||||
Income from continuing operations before income taxes and fixed charges, excluding capitalized interest
|
$
|
37,854
|
|
$
|
38,613
|
|
$
|
35,671
|
|
$
|
38,790
|
|
$
|
37,728
|
|
Fixed charges, as above
|
$
|
6,746
|
|
$
|
6,888
|
|
$
|
8,226
|
|
$
|
9,052
|
|
$
|
10,311
|
|
Preferred stock dividends (pretax)
|
2,134
|
|
1,589
|
|
1,200
|
|
908
|
|
908
|
|
|||||
Fixed charges including preferred stock dividends
|
$
|
8,880
|
|
$
|
8,477
|
|
$
|
9,426
|
|
$
|
9,960
|
|
$
|
11,219
|
|
Ratio of earnings to fixed charges and preferred stock dividend requirements
|
4.26
|
|
4.56
|
|
3.78
|
|
3.89
|
|
3.36
|
|
|||||
Including interest on deposits
|
|
|
|
|
|
||||||||||
Fixed charges including preferred stock dividends, as above
|
$
|
8,880
|
|
$
|
8,477
|
|
$
|
9,426
|
|
$
|
9,960
|
|
$
|
11,219
|
|
Add: Interest on deposits
|
1,252
|
|
1,633
|
|
2,067
|
|
2,655
|
|
3,855
|
|
|||||
Total fixed charges including preferred stock dividends and interest on deposits
|
$
|
10,132
|
|
$
|
10,110
|
|
$
|
11,493
|
|
$
|
12,615
|
|
$
|
15,074
|
|
Income from continuing operations before income taxes and fixed charges, excluding capitalized interest, as above
|
$
|
37,854
|
|
$
|
38,613
|
|
$
|
35,671
|
|
$
|
38,790
|
|
$
|
37,728
|
|
Add: Interest on deposits
|
1,252
|
|
1,633
|
|
2,067
|
|
2,655
|
|
3,855
|
|
|||||
Total income from continuing operations before income taxes, fixed charges and interest on deposits
|
$
|
39,106
|
|
$
|
40,246
|
|
$
|
37,738
|
|
$
|
41,445
|
|
$
|
41,583
|
|
Ratio of earnings to fixed charges and preferred stock dividend requirements
|
3.86
|
|
3.98
|
|
3.28
|
|
3.29
|
|
2.76
|
|
(a)
|
The proportion deemed representative of the interest factor.
|
December 31, 2015
Name
|
Organized Under
The Laws Of
|
JPMorgan Chase Bank, National Association
|
United States
|
Paymentech, LLC
|
United States
|
Chase Mortgage Holdings, Inc
|
United States
|
J.P. Morgan Treasury Technologies Corporation
|
United States
|
J.P. Morgan International Inc
|
United States
|
Bank One International Holding Corporation
|
United States
|
J.P.Morgan International Finance Limited
|
United States
|
J.P. Morgan Overseas Capital Corporation
|
United States
|
J.P. Morgan Whitefriars Inc.
|
United States
|
JPMorgan Holdings (Japan) LLC
|
United States
|
JPMorgan Securities Japan Co., Ltd.
|
Japan
|
J.P. Morgan AG
|
Germany
|
Dearborn Merchant Services, Inc.
|
Canada
|
Chase Paymentech Solutions
|
Canada
|
Paymentech Salem Services, LLC
|
United States
|
Chase Paymentech Europe Limited
|
Ireland
|
J.P. Morgan Capital Holdings Limited
|
United Kingdom
|
J.P.Morgan Chase (UK) Holdings Limited
|
United Kingdom
|
J.P.Morgan Chase International Holdings
|
United Kingdom
|
J.P. Morgan Securities PLC
|
United Kingdom
|
J.P.Morgan Europe Limited
|
United Kingdom
|
J.P. Morgan International Bank Limited
|
United Kingdom
|
J.P. Morgan Broker-Dealer Holdings Inc.
|
United States
|
J.P.Morgan Securities LLC
|
United States
|
J.P. Morgan Clearing Corp.
|
United States
|
J.P.Morgan Equity Holdings, Inc
|
United States
|
Chase Bank USA, National Association
|
United States
|
Chase BankCard Services, Inc.
|
United States
|
Chase Issuance Trust
|
United States
|
J.P.Morgan Services Asia Holdings Inc
|
United States
|
J.P.Morgan Services Asia Holdings Limited
|
Mauritius
|
J.P.Morgan Services India Private Limited
|
India
|
JPMorgan Asset Management Holdings, Inc
|
United States
|
J.P.Morgan Investment Management, Inc
|
United States
|
JPMorgan Asset Management International Limited
|
United Kingdom
|
JPMorgan Asset Management Holdings (UK) Limited
|
United Kingdom
|
JPMorgan Asset Management (UK) Limited
|
United Kingdom
|
JPMorgan Asset Management Holdings (Luxembourg) S.à.r.l.
|
Luxembourg
|
JPMorgan Asset Management (Europe) S.à.r.l.
|
Luxembourg
|
JPMorgan Distribution Services, Inc.
|
United States
|
JPMorgan Funds Management, Inc.
|
United States
|
J.P. Morgan Ventures Energy Corporation
|
United States
|
1.
|
I have reviewed this Annual Report on Form 10-K of JPMorgan Chase & Co.;
|
2.
|
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;
|
3.
|
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;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
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;
|
(c)
|
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
|
(d)
|
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
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
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.
|
1.
|
I have reviewed this Annual Report on Form 10-K of JPMorgan Chase & Co.;
|
2.
|
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;
|
3.
|
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;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
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;
|
(c)
|
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
|
(d)
|
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
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
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.
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of JPMorgan Chase & Co.
|
Date:
|
February 23, 2016
|
|
By:
|
/s/
|
James Dimon
|
|
|
|
|
|
|
|
|
|
|
|
James Dimon
|
|
|
|
|
|
Chairman and Chief Executive Officer
|
Date:
|
February 23, 2016
|
|
By:
|
/s/
|
Marianne Lake
|
|
|
|
|
|
|
|
|
|
|
|
Marianne Lake
|
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|