UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): January 15, 2019
 
JPMorgan Chase & Co.
(Exact name of registrant as specified in its charter)
 
Delaware
1-5805
13-2624428
(State or other jurisdiction of
incorporation or organization)
(Commission File Number)
(I.R.S. employer
identification no.)
 
 
 
270 Park Avenue, New York, New York
 
10017
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (212) 270-6000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

1




Item 2.02 Results of Operations and Financial Condition
On January 15, 2019 , JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) reported 2018 fourth quarter net income of $7.1 billion , or $1.98 per share, compared with net income of $4.2 billion , or $1.07 per share, in the fourth quarter of 2017. A copy of the 2018 fourth quarter earnings release is attached hereto as Exhibit 99.1, and a copy of the earnings release financial supplement is attached hereto as Exhibit 99.2.
Each of the Exhibits provided with this Form 8-K shall be deemed to be “filed” for purposes of the Securities Exchange Act of 1934.
This Current Report on Form 8-K (including the Exhibits hereto) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase’s actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 2017 , and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2018, June 30, 2018, and September 30, 2018, which have been filed with the Securities and Exchange Commission and are available on JPMorgan Chase’s website ( https://jpmorganchaseco.gcs-web.com/financial-information/sec-filings ) and on the Securities and Exchange Commission’s website ( www.sec.gov ). JPMorgan Chase does not undertake to update any forward-looking statements.











Item 9.01 Financial Statements and Exhibits

(d)    Exhibits


2




SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
JPMorgan Chase & Co.
(Registrant)


By:
/s/ Nicole Giles
 
Nicole Giles
 
Managing Director and Corporate Controller
 
(Principal Accounting Officer)


Dated:
January 15, 2019







3
JPMorgan Chase & Co.
270 Park Avenue, New York, NY 10017-2070
NYSE symbol: JPM
www.jpmorganchase.com

JPMCLOGOA05.GIF

JPMORGAN CHASE REPORTS RECORD FOURTH-QUARTER 2018 NET INCOME OF
$7.1 BILLION, OR $1.98 PER SHARE
RECORD FULL-YEAR 2018 NET INCOME OF $32.5 BILLION, OR $9.00 PER SHARE
 
FULL-YEAR 2018 RESULTS
ROE 13%
ROTCE 1 17%
 
Common equity Tier 1 1
12.0%
 
Net payout LTM 2,3
92%
FOURTH-QUARTER 2018 RESULTS 4  
Firmwide Metrics
n
Reported revenue of $26.1 billion; managed revenue of $26.8 billion 1
n
ROE of 12%; ROTCE 1 of 14%
n
Average core loans 1 ex-CIB, up 6% YoY and 1% QoQ
 
 
 
CCB

4Q18 ROE 30% 2018 ROE 28%
n
Average core loans 1 up 5%; average deposits up 3%
n
Client investment assets of $282.5 billion, up 3%
n
Credit card sales volume 5  up 10%; debit sales volume up 11%; merchant processing volume up 17%
 
 
 
CIB

4Q18 ROE 10% 2018 ROE 16%
n
#1 Global Investment Banking fees with 8.7% wallet share for the year, up 60 bps
n
Total Markets revenue of $3.2 billion, down 6%; Equity Markets revenue of $1.3 billion, up 15%
n
Treasury Services revenue up 13% and Security Services revenue up 1%
 
 
 
CB

4Q18 ROE 20% 2018 ROE 20%
n
Average loan balances up 2%
n
Strong credit quality with net charge-offs of 7 bps
 
 
 
AWM

4Q18 ROE 26% 2018 ROE 31%
n
Average loan balances up 13%
n
Assets under management (“AUM”) of $2.0 trillion, down 2%
 
                                                                                                                                     Jamie Dimon, Chairman and CEO, commented on the financial results:  “2018 was another strong year for JPMorgan Chase, with the Firm generating record revenue and net income, even without the impact of tax reform. Each line of business grew revenue and net income for the year, while continuing to make significant investments in products, people and technology, demonstrating the power of the platform. We grew core loans 7%, in-line with our expectations, while maintaining credit discipline and a fortress balance sheet with significant capital and liquidity.”
                                                                                                                                              Dimon added:  “Our customer-centric business model has benefited from a healthy and engaged U.S. consumer that is spending, saving and investing. We continue to outpace the industry in consumer deposit growth, albeit slower, and client investment assets increased for the year on record net new money flows. Credit and debit sales volume, as well as merchant processing volume, were all up double digits. Despite a challenging quarter, we grew Markets revenue in the Investment Bank for the year with record performance in Equities and solid performance in Fixed Income. Investment Banking fees were a record for the year, driven by strength in both CIB and Commercial Banking. Asset & Wealth Management delivered strong banking results and continued its string of annual net long-term inflows, even as volatility and lower market levels impacted fourth quarter results.”
                                                                                                                                            Dimon concluded:  “In 2018 we accelerated investments in products, services and technology to help our employees, customers and communities. In the fourth quarter we opened Chase branches in new states for the first time in nearly a decade. While it is early days, we’re seeing terrific results so far – and this is only the start as we continue to open branches in several new markets in the months and years to come. Our AdvancingCities initiative is supporting job and wage growth in communities that need capital the most. We extended credit and raised capital of $2.5 trillion for U.S. consumers, businesses and institutional clients. As we head into 2019, we urge our country’s leaders to strike a collaborative, constructive tone, which would reinforce already-strong consumer and business sentiment. Businesses, government and communities need to work together to solve problems and help strengthen the economy for the benefit of everyone.”

                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                          
 
FORTRESS PRINCIPLES
n
Book value per share of $70.35, up 5%; tangible book value per share 1 of $56.33, up 5%
n
Basel III common equity Tier 1 capital 1 of $184 billion and ratio 1 of 12.0%
n
Firm SLR 1 of 6.4%
OPERATING LEVERAGE
n
4Q18 reported expense of $15.7 billion; reported overhead ratio of 60%; managed overhead ratio 1 of 59%
CAPITAL DISTRIBUTED
n
$8.3 billion 3 distributed to shareholders in 4Q18
n $5.7 billion of net repurchases and common dividend of $0.80 per share
 
SUPPORTED CONSUMERS, BUSINESSES & COMMUNITIES
n
$2.5 trillion of credit and capital 6 raised in 2018
n
$227 billion of credit for consumers
n
$24 billion of credit for U.S. small businesses
n
$937 billion of credit for corporations
n
$1.3 trillion of capital raised for corporate clients and non-U.S. government entities
n
$57 billion of credit and capital raised for nonprofit and U.S. government entities, including states, municipalities, hospitals and universities

Investor Contact: Jason Scott (212) 270-2479  
1 For notes on non-GAAP financial measures, including managed basis reporting, and key performance measures, see page 6.
For additional notes see page 7.
Media Contact: Joseph Evangelisti (212) 270-7438


JPMorgan Chase & Co.
News Release

In the discussion below of Firmwide results of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”), information is presented on a managed basis, which is a non-GAAP financial measure, unless otherwise specified. The discussion below of the Firm’s business segments is also presented on a managed basis. For more information about managed basis, and non-GAAP financial measures and key performance measures used by management to evaluate the performance of each line of business, refer to page 6.
Comparisons noted in the sections below are for the fourth quarter of 2018 versus the prior-year fourth quarter, unless otherwise specified.
JPMORGAN CHASE (JPM)
Net revenue on a reported basis was $26.1 billion, $27.3 billion, and $24.5 billion for the fourth quarter of 2018, third quarter of 2018, and fourth quarter of 2017, respectively.
Results for JPM
 
 
 
 
 
 
3Q18
 
4Q17
($ millions, except per share data)
4Q18
 
3Q18
 
4Q17
 
$ O/(U)
O/(U) %
 
$ O/(U)
O/(U) %
Net revenue - managed
$
26,804

 
$
27,822

 
$
25,754

 
$
(1,018
)
(4
)%
 
$
1,050

4
%
Noninterest expense
15,720

 
15,623

 
14,895

 
97

1

 
825

6

Provision for credit losses
1,548

 
948

 
1,308

 
600

63

 
240

18

Net income
$
7,066

 
$
8,380

 
$
4,232

 
$
(1,314
)
(16
)%
 
$
2,834

67
%
Earnings per share
$
1.98

 
$
2.34

 
$
1.07

 
$
(0.36
)
(15
)%
 
$
0.91

85
%
Return on common equity
12
%
 
14
%
 
7
%
 
 
 
 
 
 
Return on tangible common equity
14

 
17

 
8

 
 
 
 
 
 
Discussion of Results:
Net income was $7.1 billion, an increase of 67%. The prior year included a $2.4 billion reduction to net income as a result of the enactment of the Tax Cuts & Jobs Act (“TCJA”).
Net revenue was $26.8 billion, up 4%. Net interest income was $14.5 billion, up 9%, driven by the impact of higher rates as well as loan growth, partially offset by lower Markets net interest income. Noninterest revenue was $12.3 billion, down 1%, with no notable drivers on a Firmwide basis.
Noninterest expense was $15.7 billion, up 6%, predominantly driven by investments in the business, including technology, marketing, real estate and front office hires, as well as auto lease depreciation, partially offset by the absence of the prior-year FDIC surcharge.
The provision for credit losses was $1.5 billion, an increase of $240 million from the prior year. The increase was driven by higher net reserve builds in the current quarter in the Consumer and Wholesale portfolios. The Consumer reserve build included $150 million in the Card portfolio driven by loan growth. The Wholesale reserve build of $161 million was largely driven by select Commercial & Industrial (C&I) downgrades. Net charge-offs were approximately flat to the prior year.
 

2

JPMorgan Chase & Co.
News Release

CONSUMER & COMMUNITY BANKING (CCB)
Results for CCB
 
 
 
 
 
 
3Q18
 
4Q17
($ millions)
4Q18
 
3Q18
 
4Q17
 
$ O/(U)
O/(U) %
 
$ O/(U)
O/(U) %
Net revenue
$
13,695

 
$
13,290

 
$
12,070

 
$
405

3
 %
 
$
1,625

13
 %
Consumer & Business Banking
6,567

 
6,385

 
5,557

 
182

3

 
1,010

18

Home Lending
1,322

 
1,306

 
1,442

 
16

1

 
(120
)
(8
)
Card, Merchant Services & Auto
5,806

 
5,599

 
5,071

 
207

4

 
735

14

Noninterest expense
7,065

 
6,982

 
6,672

 
83

1

 
393

6

Provision for credit losses
1,348

 
980

 
1,231

 
368

38

 
117

10

Net income
$
4,028

 
$
4,086

 
$
2,631

 
$
(58
)
(1
)%
 
$
1,397

53
 %
Discussion of Results:
Net income was $4.0 billion, an increase of 53%. Net revenue was $13.7 billion, an increase of 13%.
Consumer & Business Banking net revenue was $6.6 billion, up 18%, predominantly driven by higher net interest income as a result of higher deposit margins and balance growth. Home Lending net revenue was $1.3 billion, down 8%, largely driven by lower net production revenue on margin compression and lower volumes. Card, Merchant Services & Auto net revenue was $5.8 billion, up 14%, driven by higher Card net interest income on loan growth and margin expansion, higher auto lease volumes, and lower Card net acquisition costs.
Noninterest expense was $7.1 billion, up 6%, driven by investments in technology and marketing, and higher auto lease depreciation, partially offset by the absence of the prior-year FDIC surcharge, and expense efficiencies.
The provision for credit losses was $1.3 billion, an increase of $117 million. The current quarter included a reserve build in Card of $150 million, compared with a build of $200 million in the prior year, both driven by loan growth. The prior year also included reserve releases of $150 million in Home Lending and $35 million in Auto. Net charge-offs were lower driven by Auto and Home Lending, predominantly offset by higher net charge-offs in Card, in line with expectations.

3

JPMorgan Chase & Co.
News Release

CORPORATE & INVESTMENT BANK (CIB)
Results for CIB
 
 
 
 
 
 
3Q18
 
4Q17
($ millions)
4Q18
 
3Q18
 
4Q17
 
$ O/(U)
O/(U) %
 
$ O/(U)
O/(U) %
Net revenue
$
7,237

 
$
8,805

 
$
7,518

 
$
(1,568
)
(18
)%
 
$
(281
)
(4
)%
Banking
3,281

 
3,245

 
3,091

 
36

1

 
190

6

Markets & Investor Services
3,956

 
5,560

 
4,427

 
(1,604
)
(29
)
 
(471
)
(11
)
Noninterest expense
4,681

 
5,175

 
4,553

 
(494
)
(10
)
 
128

3

Provision for credit losses
82

 
(42
)
 
130

 
124

NM

 
(48
)
(37
)
Net income
$
1,975

 
$
2,626

 
$
2,316

 
$
(651
)
(25
)%
 
$
(341
)
(15
)%
Discussion of Results:
Net income was $2.0 billion, a decrease of 15%. Net revenue was $7.2 billion, down 4%.
Banking revenue was $3.3 billion, up 6%. Investment Banking revenue was $1.7 billion, up 3%, with overall share gains, reflecting higher advisory fees predominantly offset by lower underwriting fees. Treasury Services revenue was $1.2 billion, up 13%, driven by growth in operating deposits and higher interest rates, as well as higher fees on increased payments volume. Lending revenue was $344 million, up 2%.
Markets & Investor Services revenue was $4.0 billion, down 11%. Markets revenue of $3.2 billion was down 6%, or down 11% 7,8 excluding the impact of the TCJA and a loss on a margin loan in the prior year. Fixed Income revenue of $1.9 billion was down 16%, or down 18% 7 excluding the impact of the TCJA. Challenging market conditions produced revenue declines in Credit Trading, Rates and Commodities, which were partially offset by strength in Emerging Markets. Equity Markets revenue was $1.3 billion, up 15%, or up 2% 8 excluding the margin loan loss in the prior year, with continued strength in Prime. Securities Services revenue was $1.0 billion, up 1%, largely driven by fee growth and higher interest rates, predominantly offset by the impact of lower market levels, and a business exit. Credit Adjustments & Other was a loss of $243 million, reflecting higher funding spreads on derivatives.
Noninterest expense was $4.7 billion, up 3% with investments in technology and bankers and higher volume-related transaction costs, which were largely offset by the absence of the prior-year FDIC surcharge, and lower performance-based compensation expense.
The provision for credit losses was $82 million, largely driven by reserve builds for select client downgrades, compared with $130 million in the prior year driven by a reserve build for a single name.
COMMERCIAL BANKING (CB)
Results for CB
 
 
 
 
 
 
3Q18
 
4Q17
($ millions)
4Q18
 
3Q18
 
4Q17
 
$ O/(U)
O/(U) %
 
$ O/(U)
O/(U) %
Net revenue
$
2,306

 
$
2,271

 
$
2,353

 
$
35

2
 %
 
$
(47
)
(2
)%
Noninterest expense
845

 
853

 
912

 
(8
)
(1
)
 
(67
)
(7
)
Provision for credit losses
106

 
(15
)
 
(62
)
 
121

NM

 
168

NM

Net income
$
1,036

 
$
1,089

 
$
957

 
$
(53
)
(5
)%
 
$
79

8
 %
Discussion of Results:
Net income was $1.0 billion, an increase of 8%.
Net revenue was $2.3 billion, down 2%, with lower noninterest revenue more than offsetting higher net interest income. Lower noninterest revenue was largely driven by the absence of a benefit in the prior year as a result of the enactment of the TCJA, while higher net interest income reflected higher deposit margins partially offset by lower loan spreads.
Noninterest expense was $845 million, down 7%, as continued investments in banker coverage and technology in the current period were more than offset by the absence of an impairment on certain leased equipment in the prior year.
The provision for credit losses was $106 million, including higher loan loss reserves largely due to select client downgrades. The prior year was a benefit of $62 million, largely driven by reserve releases in the Oil and Gas portfolio.

4

JPMorgan Chase & Co.
News Release

ASSET & WEALTH MANAGEMENT (AWM)
Results for AWM
 
 
 
 
 
 
3Q18
 
4Q17
($ millions)
4Q18
 
3Q18
 
4Q17
 
$ O/(U)
O/(U) %
 
$ O/(U)
O/(U) %
Net revenue
$
3,439

 
$
3,559

 
$
3,638

 
$
(120
)
(3
)%
 
$
(199
)
(5
)%
Noninterest expense
2,621

 
2,585

 
2,612

 
36

1

 
9


Provision for credit losses
13

 
23

 
9

 
(10
)
(43
)
 
4

44

Net income
$
604

 
$
724

 
$
654

 
$
(120
)
(17
)%
 
$
(50
)
(8
)%
Discussion of Results:     
Net income was $604 million, a decrease of 8%.
Net revenue was $3.4 billion, a decrease of 5%. The impact of lower market levels drove lower investment valuations, management fees and performance fees, partially offset by strong banking results and the impact of cumulative net long-term inflows.
Noninterest expense of $2.6 billion was flat, as continued investments in advisors and technology were offset by lower performance-based compensation and revenue-driven external fees.
Assets under management were $2.0 trillion, down 2%, driven by the impact of lower market levels, which were largely offset by net inflows into liquidity and long-term products.
CORPORATE
Results for Corporate
 
 
 
 
 
 
3Q18
 
4Q17
($ millions)
4Q18
 
3Q18
 
4Q17
 
$ O/(U)
O/(U) %
 
$ O/(U)
O/(U) %
Net revenue
$
127

 
$
(103
)
 
$
175

 
$
230

NM

 
$
(48
)
(27
)%
Noninterest expense
508

 
28

 
146

 
480

NM

 
362

248

Provision for credit losses
(1
)
 
2

 

 
(3
)
NM

 
(1
)
NM

Net income/(loss)
$
(577
)
 
$
(145
)
 
$
(2,326
)
 
$
(432
)
(298
)%
 
$
1,749

75
 %
Discussion of Results:
Net loss was $577 million, compared with a net loss of $2.3 billion in the prior year. The current quarter included certain tax-related items totaling approximately $300 million and the prior year included a $2.7 billion increase to income tax expense related to the impact of the TCJA.
Net revenue of $127 million included markdowns on certain legacy private equity investments totaling approximately $150 million.
Noninterest expense of $508 million included a contribution to the JPMorgan Chase Foundation of $200 million, as well as investments in technology and real estate.


5

JPMorgan Chase & Co.
News Release

1. Notes on non-GAAP financial measures and key performance measures:
Notes on non-GAAP financial measures

a.
In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. The Firm’s definition of managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm and each of the reportable business segments on a fully taxable-equivalent (“FTE”) basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. These financial measures allow management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business. For a reconciliation of the Firm’s results from a reported to managed basis, see page 7 of the Earnings Release Financial Supplement.

b.
Tangible common equity (“TCE”), return on tangible common equity (“ROTCE”) and tangible book value per share (“TBVPS”), are each non-GAAP financial measures. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. For a reconciliation from common stockholders’ equity to TCE, see page 9 of the Earnings Release Financial Supplement. ROTCE measures the Firm’s net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. Book value per share was $ 70.35 , $ 69.52 and $ 67.04 at December 31, 2018, September 30, 2018, and December 31, 2017, respectively. TCE, ROTCE, and TBVPS are meaningful to the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.

c.
Adjusted expense and adjusted overhead ratio are each non-GAAP financial measures. Adjusted expense excluded Firmwide legal expense of $(18) million , $20 million and $(207) million for the three months ended December 31, 2018 , September 30, 2018 and December 31, 2017 , respectively. The adjusted overhead ratio measures the Firm’s adjusted expense as a percentage of adjusted managed net revenue. Management believes this information helps investors understand the effect of these items on reported results and provides an alternate presentation of the Firm’s performance.


Notes on key performance measures

d.
Estimated as of December 31, 2018. The Basel III regulatory capital, risk-weighted assets and capital ratios (which became fully phased-in effective January 1, 2019), and the Basel III supplementary leverage ratio (“SLR”) (which was fully phased-in effective January 1, 2018), are all considered key regulatory capital measures. The capital adequacy of the Firm is evaluated against the Basel III approach (Standardized or Advanced) which, for each quarter, results in the lower ratio. These measures are used by management, bank regulators, investors and analysts to assess and monitor the Firm’s capital position. For additional information on these measures, see Capital Risk Management on pages 82-91 of the Firm’s Annual Report on Form 10-K for the year ended December 31, 2017, and pages 44-48 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018.

e.
Core loans represent loans considered central to the Firm’s ongoing businesses; core loans exclude loans classified as trading assets, runoff portfolios, discontinued portfolios and portfolios the Firm has an intent to exit.









6

JPMorgan Chase & Co.
News Release

Additional notes:

2. Last twelve months (“LTM”).
3.
Net of stock issued to employees.
4.
Percentage comparisons noted in the bullet points are for the fourth quarter of 2018 versus the prior-year fourth quarter, unless otherwise specified.
5.
Excludes Commercial Card.
6.
Credit provided to clients represents new and renewed credit, including loans and commitments. Credit provided to small businesses reflects loans and increased lines of credit provided by Consumer & Business Banking; Card, Merchant Services & Auto; and Commercial Banking. Credit provided to nonprofit and U.S. and non-U.S. government entities, including U.S. states, municipalities, hospitals and universities, represents credit provided by the Corporate & Investment Bank and Commercial Banking.
7.
As a result of the TCJA, the three months ended December 31, 2018 reflects a reduction of approximately $163 million in FTE adjustments compared with the prior year, which included the estimated impact of $259 million from the enactment of the TCJA.
8.
The three months ended December 31, 2017 included a loss of $143mm on a margin loan to a single client.




7

JPMorgan Chase & Co.
News Release


JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.6 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com .

JPMorgan Chase & Co. will host a conference call today, January 15, 2019, at 8:30 a.m. (Eastern) to present fourth-quarter 2018 financial results. The general public can access the call by dialing (866) 541-2724 in the U.S. and Canada, or (706) 634-7246 for international participants. Please dial in 10 minutes prior to the start of the call. The live audio webcast and presentation slides will be available on the Firm’s website, www.jpmorganchase.com , under Investor Relations, Events & Presentations.

A replay of the conference call will be available beginning at approximately 12:30 p.m. on January 15, 2019, through midnight, January 29, 2019, by telephone at (800) 585-8367 (U.S. and Canada) or (404) 537-3406 (international); use Conference ID # 2147608. The replay will also be available via webcast on www.jpmorganchase.com under Investor Relations, Events & Presentations. Additional detailed financial, statistical and business-related information is included in a financial supplement. The earnings release and the financial supplement are available at www.jpmorganchase.com .

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase & Co.’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase & Co.’s actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan Chase & Co.’s Annual Report on Form 10-K for the year ended December 31, 2017, and Quarterly Reports on Form 10-Q for the quarterly periods ended September 30, 2018, June 30, 2018 and March 31, 2018 which have been filed with the Securities and Exchange Commission and are available on JPMorgan Chase & Co.’s website ( https://jpmorganchaseco.gcs-web.com/financial-information/sec-filings ), and on the Securities and Exchange Commission’s website ( www.sec.gov ). JPMorgan Chase & Co. does not undertake to update any forward-looking statements.



8


                            
                            
                            


JPMCLOGOA05.GIF

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FOURTH QUARTER 2018

















JPMORGAN CHASE & CO.
 
JPMCLOGOA05.GIF
 
TABLE OF CONTENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page(s)
 
Consolidated Results
 
 
 
 
 
 
 
 
Consolidated Financial Highlights
 
 
 
 
 
 
2–3
 
Consolidated Statements of Income
 
 
 
 
 
 
4
 
Consolidated Balance Sheets
 
 
 
 
 
 
5
 
Condensed Average Balance Sheets and Annualized Yields
 
 
 
 
 
 
6
 
Reconciliation from Reported to Managed Basis
 
 
 
 
 
 
7
 
Segment Results - Managed Basis
 
 
 
 
 
 
8
 
Capital and Other Selected Balance Sheet Items
 
 
 
 
 
 
9
 
Earnings Per Share and Related Information
 
 
 
 
 
 
10
 
 
 
 
 
 
 
 
 
 
Business Segment Results
 
 
 
 
 
 
 
 
Consumer & Community Banking
 
 
 
 
 
 
11–14
 
Corporate & Investment Bank
 
 
 
 
 
 
15–17
 
Commercial Banking
 
 
 
 
 
 
18–19
 
Asset & Wealth Management
 
 
 
 
 
 
20–22
 
Corporate
 
 
 
 
 
 
23
 
 
 
 
 
 
 
 
 
 
Credit-Related Information
 
 
 
 
 
 
24–27
 
 
 
 
 
 
 
 
 
 
Notes Including Non-GAAP Financial Measures and Key Performance Measures
 
 
 
 
 
 
28–29
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Glossary of Terms and Acronyms (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Refer to the Glossary of Terms and Acronyms on pages 283–289 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Form 10-K”) and the Glossary of Terms and Acronyms and Line of Business Metrics on Pages 175–179 and pages 180–182, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018.





JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CONSOLIDATED FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except per share and ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
SELECTED INCOME STATEMENT DATA
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
Reported Basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
$
26,109

 
$
27,260

 
$
27,753

 
$
27,907

 
$
24,457

 
(4
)%

7
 %

 
$
109,029

 
$
100,705

 
8
 %

Total noninterest expense
15,720

 
15,623

 
15,971

 
16,080

 
14,895

 
1

 
6

 
 
63,394

 
59,515

 
7

 
Pre-provision profit
10,389

 
11,637

 
11,782

 
11,827

 
9,562

 
(11
)
 
9

 
 
45,635

 
41,190

 
11

 
Provision for credit losses
1,548

 
948

 
1,210

 
1,165

 
1,308

 
63

 
18

 
 
4,871

 
5,290

 
(8
)
 
NET INCOME
7,066

 
8,380

 
8,316

 
8,712

 
4,232

 
(16
)
 
67

 
 
32,474

 
24,441

 
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Managed Basis (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
26,804

 
27,822

 
28,388

 
28,520

 
25,754

 
(4
)
 
4

 
 
111,534

 
104,722

 
7

 
Total noninterest expense
15,720

 
15,623

 
15,971

 
16,080

 
14,895

 
1

 
6

 
 
63,394

 
59,515

 
7

 
Pre-provision profit
11,084

 
12,199

 
12,417

 
12,440

 
10,859

 
(9
)
 
2

 
 
48,140

 
45,207

 
6

 
Provision for credit losses
1,548

 
948

 
1,210

 
1,165

 
1,308

 
63

 
18

 
 
4,871

 
5,290

 
(8
)
 
NET INCOME
7,066

 
8,380

 
8,316

 
8,712

 
4,232

 
(16
)
 
67

 
 
32,474

 
24,441

 
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income: Basic
$
1.99

 
$
2.35

 
$
2.31

 
$
2.38

 
$
1.08

 
(15
)
 
84

 
 
$
9.04

 
$
6.35

 
42

 
Diluted
1.98

 
2.34

 
2.29

 
2.37

 
1.07

 
(15
)
 
85

 
 
9.00

 
6.31

 
43

 
Average shares: Basic
3,335.8

 
3,376.1

 
3,415.2

 
3,458.3

 
3,489.7

 
(1
)
 
(4
)
 
 
3,396.4

 
3,551.6

 
(4
)
 
Diluted
3,347.3

 
3,394.3

 
3,434.7

 
3,479.5

 
3,512.2

 
(1
)
 
(5
)
 
 
3,414.0

 
3,576.8

 
(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MARKET AND PER COMMON SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Market capitalization
$
319,780

 
$
375,239

 
$
350,204

 
$
374,423

 
$
366,301

 
(15
)
 
(13
)
 
 
$
319,780

 
$
366,301

 
(13
)
 
Common shares at period-end
3,275.8

 
3,325.4

 
3,360.9

 
3,404.8

 
3,425.3

 
(1
)
 
(4
)
 
 
3,275.8

 
3,425.3

 
(4
)
 
Book value per share
70.35

 
69.52

 
68.85

 
67.59

 
67.04

 
1

 
5

 
 
70.35

 
67.04

 
5

 
Tangible book value per share (“TBVPS”) (b)
56.33

 
55.68

 
55.14

 
54.05

 
53.56

 
1

 
5

 
 
56.33

 
53.56

 
5

 
Cash dividends declared per share
0.80

 
0.80

 
0.56

 
0.56

 
0.56

 

 
43

 
 
2.72

 
2.12

 
28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on common equity (“ROE”)
12
%

14
%

14
%

15
%
 
7
%
 
 
 
 
 
 
13
%

10
%

 
 
Return on tangible common equity (“ROTCE”) (b)
14

 
17

 
17

 
19

 
8

 
 
 
 
 
 
17

 
12

 
 
 
Return on assets
1.06

 
1.28

 
1.28

 
1.37

 
0.66

 
 
 
 
 
 
1.24

 
0.96

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 (“CET1”) capital ratio (d)
12.0
%
(f)
12.0
%
 
12.0
%
 
11.8
%
 
12.2
%
 
 
 
 
 
 
12.0
%
(f)
12.2
%
 
 
 
Tier 1 capital ratio (d)
13.7

(f)
13.6

 
13.6

 
13.5

 
13.9

 
 
 
 
 
 
13.7

(f)
13.9

 
 
 
Total capital ratio (d)
15.5

(f)
15.4

 
15.5

 
15.3

 
15.9

 
 
 
 
 
 
15.5

(f)
15.9

 
 
 
Tier 1 leverage ratio (d)
8.1

(f)
8.2

 
8.2

 
8.2

 
8.3

 
 
 
 
 
 
8.1

(f)
8.3

 
 
 
Supplementary leverage ratio (“SLR”) (e)
6.4
%
(f)
6.5

 
6.5

 
6.5

 
6.5

 
 
 
 
 
 
6.4

(f)
6.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. Refer to page 29 for a further discussion.

(a)
For a further discussion of managed basis, refer to Reconciliation from Reported to Managed Basis on page 7 .
(b)
TBVPS and ROTCE are each non-GAAP financial measures. TBVPS represents tangible common equity (“TCE”) divided by common shares at period-end. ROTCE measures the Firm’s annualized earnings as a percentage of average TCE. TCE is also a non-GAAP financial measure; for a reconciliation of common stockholders’ equity to TCE, refer to page 9 . For a further discussion of these measures, refer to pages 28–29 .
(c)
Quarterly ratios are based upon annualized amounts.
(d)
Ratios presented are calculated under the Basel III Transitional capital rules and for the capital ratios represent the lower of Standardized or Advanced approach. As of December 31, 2018, and September 30, 2018, the Firm’s capital ratios were equivalent whether calculated on a transitional basis or on a fully phased-in basis. Refer to footnote (a) on page 9 for additional information on Basel III.
(e)
Effective January 1, 2018, the SLR was fully phased-in under Basel III. The SLR is defined as Tier 1 capital divided by the Firm’s total leverage exposure. Ratios prior to March 31, 2018 were calculated under the Basel III Transitional rules.
(f)
Estimated.


Page 2



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
(in millions, except ratio and headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
2,622,532

 
$
2,615,183

 
$
2,590,050

 
$
2,609,785

 
$
2,533,600

 
 %
 
4
 %
 
 
$
2,622,532

 
$
2,533,600

 
4
 %
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card loans
373,732

 
376,062

 
374,697

 
373,395

 
372,681

 
(1
)
 

 
 
373,732

 
372,681

 

 
Credit card loans
156,632

 
147,881

 
145,255

 
140,414

 
149,511

 
6

 
5

 
 
156,632

 
149,511

 
5

 
Wholesale loans
454,190

 
430,375

 
428,462

 
420,615

 
408,505

 
6

 
11

 
 
454,190

 
408,505

 
11

 
Total Loans
984,554

 
954,318

 
948,414

 
934,424

 
930,697

 
3

 
6

 
 
984,554

 
930,697

 
6

 
Core loans (a)
931,856

 
899,006

 
889,433

 
870,536

 
863,683

 
4

 
8

 
 
931,856

 
863,683

 
8

 
Core loans (average) (a)
907,271

 
894,279

 
877,640

 
861,089

 
850,166

 
1

 
7

 
 
885,221

 
829,558

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. offices:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing
369,505

 
374,603

 
385,741

 
397,856

 
393,645

 
(1
)
 
(6
)
 
 
369,505

 
393,645

 
(6
)
 
Interest-bearing
831,085

 
814,988

 
819,454

 
825,223

 
793,618

 
2

 
5

 
 
831,085

 
793,618

 
5

 
Non-U.S. offices:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing
19,092

 
19,127

 
16,602

 
17,019

 
15,576

 

 
23

 
 
19,092

 
15,576

 
23

 
Interest-bearing
250,984

 
250,044

 
230,325

 
246,863

 
241,143

 

 
4

 
 
250,984

 
241,143

 
4

 
Total deposits
1,470,666

 
1,458,762

 
1,452,122

 
1,486,961

 
1,443,982

 
1

 
2

 
 
1,470,666

 
1,443,982

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
282,031

 
270,124

 
273,114

 
274,449

 
284,080

 
4

 
(1
)
 
 
282,031

 
284,080

 
(1
)
 
Common stockholders’ equity
230,447

 
231,192

 
231,390

 
230,133

 
229,625

 

 

 
 
230,447

 
229,625

 

 
Total stockholders’ equity
256,515

 
258,956

 
257,458

 
256,201

 
255,693

 
(1
)
 

 
 
256,515

 
255,693

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans-to-deposits ratio
67
%

65
%

65
%
 
63
%
 
64
%

 
 
 
 
 
67
%

64
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount
256,105

 
255,313

 
252,942

 
253,707

 
252,539

 

 
1

 
 
256,105

 
252,539

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
95% CONFIDENCE LEVEL - TOTAL VaR
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average VaR
$
51

 
$
35

 
$
35

 
$
43

 
$
34

 
46

 
50

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LINE OF BUSINESS NET REVENUE (b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
13,695

 
$
13,290

 
$
12,497

 
$
12,597

 
$
12,070

 
3

 
13

 
 
$
52,079

 
$
46,485

 
12

 
Corporate & Investment Bank
7,237

 
8,805

 
9,923

 
10,483

 
7,518

 
(18
)
 
(4
)
 
 
36,448

 
34,657

 
5

 
Commercial Banking
2,306

 
2,271

 
2,316

 
2,166

 
2,353

 
2

 
(2
)
 
 
9,059

 
8,605

 
5

 
Asset & Wealth Management
3,439

 
3,559

 
3,572

 
3,506

 
3,638

 
(3
)
 
(5
)
 
 
14,076

 
13,835

 
2

 
Corporate
127

 
(103
)
 
80

 
(232
)
 
175

 
NM

 
(27
)
 
 
(128
)
 
1,140

 
NM

 
TOTAL NET REVENUE
$
26,804

 
$
27,822

 
$
28,388

 
$
28,520

 
$
25,754

 
(4
)
 
4

 
 
$
111,534

 
$
104,722

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LINE OF BUSINESS NET INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
4,028

 
$
4,086

 
$
3,412

 
$
3,326

 
$
2,631

 
(1
)
 
53

 
 
$
14,852

 
$
9,395

 
58

 
Corporate & Investment Bank
1,975

 
2,626

 
3,198

 
3,974

 
2,316

 
(25
)
 
(15
)
 
 
11,773

 
10,813

 
9

 
Commercial Banking
1,036

 
1,089

 
1,087

 
1,025

 
957

 
(5
)
 
8

 
 
4,237

 
3,539

 
20

 
Asset & Wealth Management
604

 
724

 
755

 
770

 
654

 
(17
)
 
(8
)
 
 
2,853

 
2,337

 
22

 
Corporate
(577
)
 
(145
)
 
(136
)
 
(383
)
 
(2,326
)
 
(298
)
 
75

 
 
(1,241
)
 
(1,643
)
 
24

 
NET INCOME
$
7,066

 
$
8,380

 
$
8,316

 
$
8,712

 
$
4,232

 
(16
)
 
67

 
 
$
32,474

 
$
24,441

 
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. Refer to page 29 for a further discussion.

(a)
Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, refer to pages 28–29 .
(b)
For a further discussion of managed basis, refer to Reconciliation from Reported to Managed Basis on page 7 .





Page 3



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CONSOLIDATED STATEMENTS OF INCOME
 
 
 
 
(in millions, except per share and ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
REVENUE
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
Investment banking fees
$
1,814

 
$
1,832

 
$
2,168

 
$
1,736

 
$
1,818

 
(1
)%
 
 %
 
 
$
7,550

 
$
7,412

 
2
 %
 
Principal transactions
1,361

 
2,964

 
3,782

 
3,952

 
1,907

 
(54
)
 
(29
)
 
 
12,059

 
11,347

 
6

 
Lending- and deposit-related fees
1,538

 
1,542

 
1,495

 
1,477

 
1,506

 

 
2

 
 
6,052

 
5,933

 
2

 
Asset management, administration and commissions
4,195

 
4,310

 
4,304

 
4,309

 
4,291

 
(3
)
 
(2
)
 
 
17,118

 
16,287

 
5

 
Investment securities gains/(losses)
(24
)
 
(46
)
 
(80
)
 
(245
)
 
(28
)
 
48

 
14

 
 
(395
)
 
(66
)
 
(498
)
 
Mortgage fees and related income
203

 
262

 
324

 
465

 
377

 
(23
)
 
(46
)
 
 
1,254

 
1,616

 
(22
)
 
Card income
1,366

 
1,328

 
1,020

 
1,275

 
1,110

 
3

 
23

 
 
4,989

 
4,433

 
13

 
Other income
1,302

 
1,160

 
1,255

 
1,626

 
449

 
12

 
190

 
 
5,343

 
3,646

 
47

 
Noninterest revenue
11,755

 
13,352

 
14,268

 
14,595

 
11,430

 
(12
)
 
3

 
 
53,970

 
50,608

 
7

 
Interest income
21,038

 
19,840

 
18,869

 
17,695

 
16,993

 
6

 
24

 
 
77,442

 
64,372

 
20

 
Interest expense
6,684

 
5,932

 
5,384

 
4,383

 
3,966

 
13

 
69

 
 
22,383

 
14,275

 
57

 
Net interest income
14,354

 
13,908

 
13,485

 
13,312

 
13,027

 
3

 
10

 
 
55,059

 
50,097

 
10

 
TOTAL NET REVENUE
26,109

 
27,260

 
27,753

 
27,907

 
24,457

 
(4
)
 
7

 
 
109,029

 
100,705

 
8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
1,548

 
948

 
1,210

 
1,165

 
1,308

 
63

 
18

 
 
4,871

 
5,290

 
(8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense
7,809

 
8,108

 
8,338

 
8,862

 
7,498

 
(4
)
 
4

 
 
33,117

 
31,208

 
6

 
Occupancy expense
1,069

 
1,014

 
981

 
888

 
920

 
5

 
16

 
 
3,952

 
3,723

 
6

 
Technology, communications and equipment expense
2,361

 
2,219

 
2,168

 
2,054

 
2,038

 
6

 
16

 
 
8,802

 
7,715

 
14

 
Professional and outside services
2,169

 
2,086

 
2,126

 
2,121

 
2,244

 
4

 
(3
)
 
 
8,502

 
7,890

 
8

 
Marketing
894

 
798

 
798

 
800

 
721

 
12

 
24

 
 
3,290

 
2,900

 
13

 
Other expense (a)
1,418

 
1,398

 
1,560

 
1,355

 
1,474

 
1

 
(4
)
 
 
5,731

 
6,079

 
(6
)
 
TOTAL NONINTEREST EXPENSE
15,720

 
15,623

 
15,971

 
16,080

 
14,895

 
1

 
6

 
 
63,394

 
59,515

 
7

 
Income before income tax expense
8,841

 
10,689

 
10,572

 
10,662

 
8,254

 
(17
)
 
7

 
 
40,764

 
35,900

 
14

 
Income tax expense
1,775

 
2,309

 
2,256

 
1,950

 
4,022

(d)
(23
)
 
(56
)
 
 
8,290

 
11,459

(d)
(28
)
 
NET INCOME
$
7,066

 
$
8,380

 
$
8,316

 
$
8,712

 
$
4,232

 
(16
)
 
67

 
 
$
32,474

 
$
24,441

 
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME PER COMMON SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
$
1.99

 
$
2.35

 
$
2.31

 
$
2.38

 
$
1.08

 
(15
)
 
84

 
 
$
9.04

 
$
6.35

 
42

 
Diluted earnings per share
1.98

 
2.34

 
2.29

 
2.37

 
1.07

 
(15
)
 
85

 
 
9.00

 
6.31

 
43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on common equity (b)
12
%
 
14
%
 
14
%
 
15
%
 
7
%
 
 
 
 
 
 
13
%
 
10
%
 
 
 
Return on tangible common equity (b)(c)
14

 
17

 
17

 
19

 
8

 
 
 
 
 
 
17

 
12

 
 
 
Return on assets (b)
1.06

 
1.28

 
1.28

 
1.37

 
0.66

 
 
 
 
 
 
1.24

 
0.96

 
 
 
Effective income tax rate
20.1

 
21.6

 
21.3

 
18.3

 
48.7

(d)
 
 
 
 
 
20.3

 
31.9

(d)
 
 
Overhead ratio
60

 
57

 
58

 
58

 
61

 
 
 
 
 
 
58

 
59

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. Refer to page 29 for a further discussion.

(a)
Included Firmwide legal expense/(benefit) of $(18) million , $20 million , $0 million, $70 million and $(207) million for the three months ended December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 , and December 31, 2017 , respectively; and $72 million and $(35) million for the full year 2018 and 2017, respectively.
(b)
Quarterly ratios are based upon annualized amounts.
(c)
For further discussion of ROTCE, refer to pages 28–29 .
(d)
The three months and full year ended December 31, 2017 included a $1.9 billion tax expense as a result of the estimated impact of the enactment of the Tax Cuts & Jobs Act (“TCJA”).



Page 4



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CONSOLIDATED BALANCE SHEETS
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Dec 31,
 
 
2018
 
2018
 
2018
 
2018
 
2017
 
2018
 
2017
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
22,324

 
$
23,225

 
$
23,680

 
$
24,834

 
$
25,898

 
(4
)%
 
(14
)%
 
Deposits with banks
256,469

 
395,872

 
381,500

 
389,978

 
405,406

 
(35
)
 
(37
)
 
Federal funds sold and securities purchased under
 
 
 
 
 
 
 
 
 
 
 
 
 
 
resale agreements
321,588

 
217,632

 
226,505

 
247,608

 
198,422

 
48

 
62

 
Securities borrowed
111,995

 
122,434

 
108,246

 
116,132

 
105,112

 
(9
)
 
7

 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and equity instruments
359,501

 
359,765

 
360,289

 
355,368

 
325,321

 

 
11

 
Derivative receivables
54,213

 
60,062

 
58,510

 
56,914

 
56,523

 
(10
)
 
(4
)
 
Investment securities
261,828

 
231,398

 
233,015

 
238,188

 
249,958

 
13

 
5

 
Loans
984,554

 
954,318

 
948,414

 
934,424

 
930,697

 
3

 
6

 
Less: Allowance for loan losses
13,445

 
13,128

 
13,250

 
13,375

 
13,604

 
2

 
(1
)
 
Loans, net of allowance for loan losses
971,109

 
941,190

 
935,164

 
921,049

 
917,093

 
3

 
6

 
Accrued interest and accounts receivable
73,200

 
78,792

 
75,669

 
72,659

 
67,729

 
(7
)
 
8

 
Premises and equipment
14,934

 
14,180

 
14,132

 
14,382

 
14,159

 
5

 
5

 
Goodwill, MSRs and other intangible assets
54,349

 
54,697

 
54,535

 
54,533

 
54,392

 
(1
)
 

 
Other assets
121,022

 
115,936

 
118,805

 
118,140

 
113,587

 
4

 
7

 
TOTAL ASSETS
$
2,622,532

 
$
2,615,183

 
$
2,590,050

 
$
2,609,785

 
$
2,533,600

 

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
$
1,470,666

 
$
1,458,762

 
$
1,452,122

 
$
1,486,961

 
$
1,443,982

 
1

 
2

 
Federal funds purchased and securities loaned or sold
 
 
 
 
 
 
 
 
 
 
 
 
 
 
under repurchase agreements
182,320

 
181,608

 
175,293

 
179,091

 
158,916

 

 
15

 
Short-term borrowings
69,276

 
64,635

 
63,918

 
62,667

 
51,802

 
7

 
34

 
Trading liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and equity instruments
103,004

 
109,457

 
107,327

 
99,588

 
85,886

 
(6
)
 
20

 
Derivative payables
41,769

 
41,693

 
42,511

 
36,949

 
37,777

 

 
11

 
Accounts payable and other liabilities
196,710

 
209,707

 
196,984

 
192,295

 
189,383

 
(6
)
 
4

 
Beneficial interests issued by consolidated VIEs
20,241

 
20,241

 
21,323

 
21,584

 
26,081

 

 
(22
)
 
Long-term debt
282,031

 
270,124

 
273,114

 
274,449

 
284,080

 
4

 
(1
)
 
TOTAL LIABILITIES
2,366,017

 
2,356,227

 
2,332,592

 
2,353,584

 
2,277,907

 

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock
26,068

 
27,764

(a)
26,068

 
26,068

 
26,068

 
(6
)
 

 
Common stock
4,105

 
4,105

 
4,105

 
4,105

 
4,105

 

 

 
Additional paid-in capital
89,162

 
89,333

 
89,392

 
89,211

 
90,579

 

 
(2
)
 
Retained earnings
199,202

 
195,180

 
189,881

 
183,855

 
177,676

 
2

 
12

 
Accumulated other comprehensive income/(loss)
(1,507
)
 
(2,425
)
 
(1,138
)
 
(1,063
)
 
(119
)
 
38

 
NM

 
Shares held in RSU Trust, at cost
(21
)
 
(21
)
 
(21
)
 
(21
)
 
(21
)
 

 

 
Treasury stock, at cost
(60,494
)
 
(54,980
)
 
(50,829
)
 
(45,954
)
 
(42,595
)
 
(10
)
 
(42
)
 
TOTAL STOCKHOLDERS’ EQUITY
256,515

 
258,956

 
257,458

 
256,201

 
255,693

 
(1
)
 

 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
2,622,532

 
$
2,615,183

 
$
2,590,050

 
$
2,609,785

 
$
2,533,600

 

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. Refer to page 29 for a further discussion.

(a)
Included $1.7 billion, which was redeemed on October 30, 2018, as previously announced on September 17, 2018.







Page 5



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
 
(in millions, except rates)
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
AVERAGE BALANCES
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits with banks
$
364,332

 
$
408,595

 
$
425,942

 
$
423,807

 
$
438,740

 
(11
)%
 
(17
)%
 
 
$
405,514

 
$
439,663

 
(8
)%
 
Federal funds sold and securities purchased under
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
resale agreements
256,258

 
208,439

 
205,001

 
198,362

 
188,545

 
23

 
36

 
 
217,150

 
191,820

 
13

 
Securities borrowed
120,930

 
117,057

 
112,464

 
109,733

 
100,120

 
3

 
21

 
 
115,082

 
95,324

 
21

 
Trading assets - debt instruments
273,454

 
258,027

 
256,526

 
256,040

 
247,063

 
6

 
11

 
 
261,051

 
237,206

 
10

 
Investment securities
245,020

 
229,987

 
232,007

 
239,754

 
253,767

 
7

 
(3
)
 
 
236,688

 
268,678

 
(12
)
 
Loans
961,138

 
951,724

 
939,675

 
926,548

 
918,806

 
1

 
5

 
 
944,885

 
906,397

 
4

 
All other interest-earning assets (a)
49,038

 
46,429

 
50,662

 
49,169

 
42,666

 
6

 
15

 
 
48,818

 
41,504

 
18

 
Total interest-earning assets
2,270,170

 
2,220,258

 
2,222,277

 
2,203,413

 
2,189,707

 
2

 
4

 
 
2,229,188

 
2,180,592

 
2

 
Trading assets - equity instruments
84,934

 
102,962

 
112,142

 
107,688

 
102,874

 
(18
)
 
(17
)
 
 
101,872

 
115,913

 
(12
)
 
Trading assets - derivative receivables
59,386

 
62,075

 
60,978

 
60,492

 
58,890

 
(4
)
 
1

 
 
60,734

 
59,588

 
2

 
All other noninterest-earning assets
222,015

 
214,326

 
217,572

 
214,450

 
210,684

 
4

 
5

 
 
217,104

 
199,969

 
9

 
TOTAL ASSETS
$
2,636,505

 
$
2,599,621

 
$
2,612,969

 
$
2,586,043

 
$
2,562,155

 
1

 
3

 
 
$
2,608,898

 
$
2,556,062

 
2

 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits
$
1,078,959

 
$
1,057,262

 
$
1,059,357

 
$
1,046,521

 
$
1,030,660

 
2

 
5

 
 
$
1,060,605

 
$
1,013,221

 
5

 
Federal funds purchased and securities loaned or
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
sold under repurchase agreements
184,684

 
184,377

 
192,136

 
196,112

 
181,898

 

 
2

 
 
189,282

 
187,386

 
1

 
Short-term borrowings (b)
72,967

 
61,042

 
62,339

 
57,603

 
53,236

 
20

 
37

 
 
63,523

 
46,532

 
37

 
Trading liabilities - debt and other interest-bearing liabilities (c)
183,069

 
177,091

 
180,879

 
171,488

 
168,440

 
3

 
9

 
 
178,161

 
171,814

 
4

 
Beneficial interests issued by consolidated VIEs
19,982

 
19,921

 
20,906

 
23,561

 
27,295

 

 
(27
)
 
 
21,079

 
32,457

 
(35
)
 
Long-term debt
275,072

 
275,979

 
275,645

 
279,005

 
283,301

 

 
(3
)
 
 
276,414

 
291,489

 
(5
)
 
Total interest-bearing liabilities
1,814,733

 
1,775,672

 
1,791,262

 
1,774,290

 
1,744,830

 
2

 
4

 
 
1,789,064

 
1,742,899

 
3

 
Noninterest-bearing deposits
387,334

 
395,600

 
401,138

 
399,487

 
405,531

 
(2
)
 
(4
)
 
 
395,856

 
404,165

 
(2
)
 
Trading liabilities - equity instruments
37,527

 
36,309

 
34,593

 
28,631

 
22,747

 
3

 
65

 
 
34,295

 
21,022

 
63

 
Trading liabilities - derivative payables
43,538

 
44,810

 
42,168

 
41,745

 
38,845

 
(3
)
 
12

 
 
43,075

 
44,122

 
(2
)
 
All other noninterest-bearing liabilities
96,875

 
90,539

 
88,839

 
88,207

 
91,987

 
7

 
5

 
 
91,137

 
87,292

 
4

 
TOTAL LIABILITIES
2,380,007

 
2,342,930

 
2,358,000

 
2,332,360

 
2,303,940

 
2

 
3

 
 
2,353,427

 
2,299,500

 
2

 
Preferred stock
26,602

 
26,252

 
26,068

 
26,068

 
26,642

 
1

 

 
 
26,249

 
26,212

 

 
Common stockholders’ equity
229,896

 
230,439

 
228,901

 
227,615

 
231,573

 

 
(1
)
 
 
229,222

 
230,350

 

 
TOTAL STOCKHOLDERS’ EQUITY
256,498

 
256,691

 
254,969

 
253,683

 
258,215

 

 
(1
)
 
 
255,471

 
256,562

 

 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
2,636,505

 
$
2,599,621

 
$
2,612,969

 
$
2,586,043

 
$
2,562,155

 
1

 
3

 
 
$
2,608,898

 
$
2,556,062

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE RATES (d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INTEREST-EARNING ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits with banks
1.59

%
1.54

%
1.45

%
1.26

%
1.12

%
 
 
 
 
 
1.46

%
0.96

%
 
 
Federal funds sold and securities purchased under
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
resale agreements
2.06

 
1.81

 
1.58

 
1.49

 
1.37

 
 
 
 
 
 
1.76

 
1.21

 
 
 
Securities borrowed
1.04

 
0.68

 
0.53

 
0.23

 
0.11

 
 
 
 
 
 
0.63

 
(0.04
)
(f)
 
 
Trading assets - debt instruments
3.41

 
3.34

 
3.33

 
3.35

 
3.25

 
 
 
 
 
 
3.36

 
3.25

 
 
 
Investment securities
3.32

 
3.26

 
3.24

 
3.08

 
3.15

 
 
 
 
 
 
3.23

 
3.09

 
 
 
Loans
5.26

 
5.11

 
4.99

 
4.87

 
4.67

 
 
 
 
 
 
5.06

 
4.56

 
 
 
All other interest-earning assets (a)
7.63

 
8.07

 
6.72

 
5.61

 
5.11

 
 
 
 
 
 
7.00

 
4.44

 
 
 
Total interest-earning assets
3.70

 
3.57

 
3.43

 
3.29

 
3.14

 
 
 
 
 
 
3.50

 
3.01

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INTEREST-BEARING LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits
0.72

 
0.61

 
0.51

 
0.41

 
0.35

 
 
 
 
 
 
0.56

 
0.28

 
 
 
Federal funds purchased and securities loaned or
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
sold under repurchase agreements
1.94

 
1.78

 
1.58

 
1.20

 
1.05

 
 
 
 
 
 
1.62

 
0.86

 
 
 
Short-term borrowings (b)
2.11

 
1.87

 
1.67

 
1.47

 
1.21

 
 
 
 
 
 
1.80

 
1.03

 
 
 
Trading liabilities - debt and other interest-bearing liabilities (c)
2.49

 
2.28

 
2.00

 
1.56

 
1.37

 
 
 
 
 
 
2.09

 
1.21

 
 
 
Beneficial interests issued by consolidated VIEs
2.53

 
2.41

 
2.33

 
2.11

 
1.71

 
 
 
 
 
 
2.34

 
1.55

 
 
 
Long-term debt
3.12

 
2.96

 
2.91

 
2.55

 
2.41

 
 
 
 
 
 
2.89

 
2.32

 
 
 
Total interest-bearing liabilities
1.46

 
1.33

 
1.21

 
1.00

 
0.90

 
 
 
 
 
 
1.25

 
0.82

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INTEREST RATE SPREAD
2.24

%
2.24

%
2.22

%
2.29

%
2.24

%
 
 
 
 
 
2.25

%
2.19

%
 
 
NET YIELD ON INTEREST-EARNING ASSETS
2.54

%
2.51

%
2.46

%
2.48

%
2.42

%
 
 
 
 
 
2.50

%
2.36

%
 
 
Memo: Net yield on interest-earning assets excluding CIB Markets (e)
3.35

%
3.30

%
3.21

%
3.13

%
2.97

%
 
 
 
 
 
3.25

%
2.85

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. Refer to page 29 for a further discussion.
(a)
Includes held-for-investment margin loans, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated Balance Sheets.
(b)
Includes commercial paper.
(c)
Other interest-bearing liabilities include brokerage customer payables.
(d)
Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(e)
Net yield on interest-earning assets excluding CIB Markets is a non-GAAP financial measure. For further discussion of the net yield on interest-earning assets excluding CIB Markets, refer to page 28.
(f)
Negative yield is related to client-driven demand for certain securities combined with the impact of low interest rates; this is matched book activity and the negative interest expense on the corresponding securities loaned is recognized in interest expense and reported within trading liabilities – debt and other interest-bearing liabilities.

Page 6



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
RECONCILIATION FROM REPORTED TO MANAGED BASIS
 
(in millions, except ratios)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the U.S. (“U.S. GAAP”). That presentation, which is referred to as “reported” basis, provides the reader with an understanding of the Firm’s results that can be tracked consistently from year-to-year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. For additional information on managed basis, refer to the notes on Non-GAAP Financial Measures on pages 28–29 .

The following summary table provides a reconciliation from reported U.S. GAAP results to managed basis.
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
OTHER INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income - reported
$
1,302

 
$
1,160

 
$
1,255

 
$
1,626

 
$
449

 
12
 %
 
190
 %
 
 
$
5,343

 
$
3,646

 
47
 %
 
Fully taxable-equivalent adjustments (a)
540

 
408

 
474

 
455

 
971

 
32

 
(44
)
 
 
1,877

 
2,704

 
(31
)
 
Other income - managed
$
1,842

 
$
1,568

 
$
1,729

 
$
2,081

 
$
1,420

 
17

 
30

 
 
$
7,220

 
$
6,350

 
14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NONINTEREST REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total noninterest revenue - reported
$
11,755

 
$
13,352

 
$
14,268

 
$
14,595

 
$
11,430

 
(12
)
 
3

 
 
$
53,970

 
$
50,608

 
7

 
Fully taxable-equivalent adjustments (a)
540

 
408

 
474

 
455

 
971

 
32

 
(44
)
 
 
1,877

 
2,704

 
(31
)
 
Total noninterest revenue - managed
$
12,295

 
$
13,760

 
$
14,742

 
$
15,050

 
$
12,401

 
(11
)
 
(1
)
 
 
$
55,847

 
$
53,312

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INTEREST INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income - reported
$
14,354

 
$
13,908

 
$
13,485

 
$
13,312

 
$
13,027

 
3

 
10

 
 
$
55,059

 
$
50,097

 
10

 
Fully taxable-equivalent adjustments (a)
155

 
154

 
161

 
158

 
326

 
1

 
(52
)
 
 
628

 
1,313

 
(52
)
 
Net interest income - managed
$
14,509

 
$
14,062

 
$
13,646

 
$
13,470

 
$
13,353

 
3

 
9

 
 
$
55,687

 
$
51,410

 
8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NET REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue - reported
$
26,109

 
$
27,260

 
$
27,753

 
$
27,907

 
$
24,457

 
(4
)
 
7

 
 
$
109,029

 
$
100,705

 
8

 
Fully taxable-equivalent adjustments (a)
695

 
562

 
635

 
613

 
1,297

 
24

 
(46
)
 
 
2,505

 
4,017

 
(38
)
 
Total net revenue - managed
$
26,804

 
$
27,822

 
$
28,388

 
$
28,520

 
$
25,754

 
(4
)
 
4

 
 
$
111,534

 
$
104,722

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PRE-PROVISION PROFIT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-provision profit - reported
$
10,389

 
$
11,637

 
$
11,782

 
$
11,827

 
$
9,562

 
(11
)
 
9

 
 
$
45,635

 
$
41,190

 
11

 
Fully taxable-equivalent adjustments (a)
695

 
562

 
635

 
613

 
1,297

 
24

 
(46
)
 
 
2,505

 
4,017

 
(38
)
 
Pre-provision profit - managed
$
11,084

 
$
12,199

 
$
12,417

 
$
12,440

 
$
10,859

 
(9
)
 
2

 
 
$
48,140

 
$
45,207

 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAX EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense - reported
$
8,841

 
$
10,689

 
$
10,572

 
$
10,662

 
$
8,254

 
(17
)
 
7

 
 
$
40,764

 
$
35,900

 
14

 
Fully taxable-equivalent adjustments (a)
695

 
562

 
635

 
613

 
1,297

 
24

 
(46
)
 
 
2,505

 
4,017

 
(38
)
 
Income before income tax expense - managed
$
9,536

 
$
11,251

 
$
11,207

 
$
11,275

 
$
9,551

 
(15
)
 

 
 
$
43,269

 
$
39,917

 
8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INCOME TAX EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense - reported
$
1,775

 
$
2,309

 
$
2,256

 
$
1,950

 
$
4,022

 
(23
)
 
(56
)
 
 
$
8,290

 
$
11,459

 
(28
)
 
Fully taxable-equivalent adjustments (a)
695

 
562

 
635

 
613

 
1,297

 
24

 
(46
)
 
 
2,505

 
4,017

 
(38
)
 
Income tax expense - managed
$
2,470

 
$
2,871

 
$
2,891

 
$
2,563

 
$
5,319

 
(14
)
 
(54
)
 
 
$
10,795

 
$
15,476

 
(30
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OVERHEAD RATIO
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overhead ratio - reported
60

%
57

%
58

%
58

%
61

%
 
 
 
 
 
58

%
59

%
 
 
Overhead ratio - managed
59

 
56

 
56

 
56

 
58

 
 
 
 
 
 
57

 
57

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. Refer to page 29 for a further discussion.

(a) Predominantly recognized in the Corporate & Investment Bank (“CIB”) and Commercial Banking (“CB”) business segments and Corporate.

Page 7



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
SEGMENT RESULTS - MANAGED BASIS
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
13,695

 
$
13,290

 
$
12,497

 
$
12,597

 
$
12,070

 
3
 %

13
 %

 
$
52,079

 
$
46,485

 
12
 %

Corporate & Investment Bank
7,237

 
8,805

 
9,923

 
10,483

 
7,518

 
(18
)
 
(4
)
 
 
36,448

 
34,657

 
5

 
Commercial Banking
2,306

 
2,271

 
2,316

 
2,166

 
2,353

 
2

 
(2
)
 
 
9,059

 
8,605

 
5

 
Asset & Wealth Management
3,439

 
3,559

 
3,572

 
3,506

 
3,638

 
(3
)
 
(5
)
 
 
14,076

 
13,835

 
2

 
Corporate
127

 
(103
)
 
80

 
(232
)
 
175

 
NM

 
(27
)
 
 
(128
)
 
1,140

 
NM

 
TOTAL NET REVENUE
$
26,804

 
$
27,822

 
$
28,388

 
$
28,520

 
$
25,754

 
(4
)
 
4

 
 
$
111,534

 
$
104,722

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
7,065

 
$
6,982

 
$
6,879

 
$
6,909

 
$
6,672

 
1

 
6

 
 
$
27,835

 
$
26,062

 
7

 
Corporate & Investment Bank
4,681

 
5,175

 
5,403

 
5,659

 
4,553

 
(10
)
 
3

 
 
20,918

 
19,407

 
8

 
Commercial Banking
845

 
853

 
844

 
844

 
912

 
(1
)
 
(7
)
 
 
3,386

 
3,327

 
2

 
Asset & Wealth Management
2,621

 
2,585

 
2,566

 
2,581

 
2,612

 
1

 

 
 
10,353

 
10,218

 
1

 
Corporate
508

 
28

 
279

 
87

 
146

 
NM

 
248

 
 
902

 
501

 
80

 
TOTAL NONINTEREST EXPENSE
$
15,720

 
$
15,623

 
$
15,971

 
$
16,080

 
$
14,895

 
1

 
6

 
 
$
63,394

 
$
59,515

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PRE-PROVISION PROFIT/(LOSS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
6,630

 
$
6,308

 
$
5,618

 
$
5,688

 
$
5,398

 
5

 
23

 
 
$
24,244

 
$
20,423

 
19

 
Corporate & Investment Bank
2,556

 
3,630

 
4,520

 
4,824

 
2,965

 
(30
)
 
(14
)
 
 
15,530

 
15,250

 
2

 
Commercial Banking
1,461

 
1,418

 
1,472

 
1,322

 
1,441

 
3

 
1

 
 
5,673

 
5,278

 
7

 
Asset & Wealth Management
818

 
974

 
1,006

 
925

 
1,026

 
(16
)
 
(20
)
 
 
3,723

 
3,617

 
3

 
Corporate
(381
)
 
(131
)
 
(199
)
 
(319
)
 
29

 
(191
)
 
NM

 
 
(1,030
)
 
639

 
NM

 
PRE-PROVISION PROFIT
$
11,084

 
$
12,199

 
$
12,417

 
$
12,440

 
$
10,859

 
(9
)
 
2

 
 
$
48,140

 
$
45,207

 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PROVISION FOR CREDIT LOSSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
1,348

 
$
980

 
$
1,108

 
$
1,317

 
$
1,231

 
38

 
10

 
 
$
4,753

 
$
5,572

 
(15
)
 
Corporate & Investment Bank
82

 
(42
)
 
58

 
(158
)
 
130

 
NM

 
(37
)
 
 
(60
)
 
(45
)
 
(33
)
 
Commercial Banking
106

 
(15
)
 
43

 
(5
)
 
(62
)
 
NM

 
NM

 
 
129

 
(276
)
 
NM

 
Asset & Wealth Management
13

 
23

 
2

 
15

 
9

 
(43
)
 
44

 
 
53

 
39

 
36

 
Corporate
(1
)
 
2

 
(1
)
 
(4
)
 

 
NM

 
NM

 
 
(4
)
 

 
NM

 
PROVISION FOR CREDIT LOSSES
$
1,548

 
$
948

 
$
1,210

 
$
1,165

 
$
1,308

 
63

 
18

 
 
$
4,871

 
$
5,290

 
(8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME/(LOSS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
4,028

 
$
4,086

 
$
3,412

 
$
3,326

 
$
2,631

 
(1
)
 
53

 
 
$
14,852

 
$
9,395

 
58

 
Corporate & Investment Bank
1,975

 
2,626

 
3,198

 
3,974

 
2,316

 
(25
)
 
(15
)
 
 
11,773

 
10,813

 
9

 
Commercial Banking
1,036

 
1,089

 
1,087

 
1,025

 
957

 
(5
)
 
8

 
 
4,237

 
3,539

 
20

 
Asset & Wealth Management
604

 
724

 
755

 
770

 
654

 
(17
)
 
(8
)
 
 
2,853

 
2,337

 
22

 
Corporate
(577
)
 
(145
)
 
(136
)
 
(383
)
 
(2,326
)
 
(298
)
 
75

 
 
(1,241
)
 
(1,643
)
 
24

 
TOTAL NET INCOME
$
7,066

 
$
8,380

 
$
8,316

 
$
8,712

 
$
4,232

 
(16
)
 
67

 
 
$
32,474

 
$
24,441

 
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. Refer to page 29 for a further discussion.



Page 8



JPMORGAN CHASE & CO.
 
 
 
JPMCLOGOA05.GIF
CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
FULL YEAR
 
 
Dec 31,
 
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
 
Sep 30,
 
Dec 31,
 
 
 
 
 
 
 
2018 Change
 
 
2018
 
 
2018
 
2018
 
2018
 
2017
 
 
2018
 
2017
 
2018
 
 
2017
 
 
2017
 
CAPITAL (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Risk-based capital metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Standardized Transitional
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CET1 capital
$
183,517

(f)

$
184,972


$
184,708


$
183,655


$
183,300

 
 
(1
)%
 
 %
 
 
 
 
 
 
 
 
 
Tier 1 capital
209,129

(f)
 
210,589

 
210,321

 
209,296

 
208,644

 
 
(1
)
 

 
 
 
 
 
 
 
 
 
Total capital
237,550

(f)
 
238,303

 
238,630

 
238,326

 
238,395

 
 

 

 
 
 
 
 
 
 
 
 
Risk-weighted assets
1,528,930

(f)
 
1,545,326

 
1,543,370

 
1,552,952

 
1,499,506

 
 
(1
)
 
2

 
 
 
 
 
 
 
 
 
CET1 capital ratio
12.0
%
(f)
 
12.0
%
 
12.0
%
 
11.8
%
 
12.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 capital ratio
13.7

(f)
 
13.6

 
13.6

 
13.5

 
13.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total capital ratio
15.5

(f)
 
15.4

 
15.5

 
15.3

 
15.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advanced Transitional
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CET1 capital
$
183,517

(f)
 
$
184,972

 
$
184,708

 
$
183,655

 
$
183,300

 
 
(1
)
 

 
 
 
 
 
 
 
 
 
Tier 1 capital
209,129

(f)
 
210,589

 
210,321

 
209,296

 
208,644

 
 
(1
)
 

 
 
 
 
 
 
 
 
 
Total capital
226,976

(f)
 
228,574

 
229,027

 
228,320

 
227,933

 
 
(1
)
 

 
 
 
 
 
 
 
 
 
Risk-weighted assets
1,423,570

(f)
 
1,438,529

 
1,438,747

 
1,466,095

 
1,435,825

 
 
(1
)
 
(1
)
 
 
 
 
 
 
 
 
 
CET1 capital ratio
12.9
%
(f)
 
12.9
%
 
12.8
%
 
12.5
%
 
12.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 capital ratio
14.7

(f)
 
14.6

 
14.6

 
14.3

 
14.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total capital ratio
15.9

(f)
 
15.9

 
15.9

 
15.6

 
15.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage-based capital metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted average assets (b)
$
2,589,923

(f)
 
$
2,552,612

 
$
2,566,013

 
$
2,539,183

 
$
2,514,270

 
 
1

 
3

 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio
8.1
%
(f)
 
8.2
%
 
8.2
%
 
8.2
%
 
8.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total leverage exposure (c)
3,270,081

(f)
 
3,235,518

 
3,255,296

 
3,234,103

 
3,204,463

 
 
1

 
2

 
 
 
 
 
 
 
 
 
SLR (c)
6.4
%
(f)
 
6.5
%
 
6.5
%
 
6.5
%
 
6.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TANGIBLE COMMON EQUITY (period-end) (d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stockholders’ equity
$
230,447

 
 
$
231,192

 
$
231,390

 
$
230,133

 
$
229,625

 
 

 

 
 
 
 
 
 
 
 
 
Less: Goodwill
47,471

 
 
47,483

 
47,488

 
47,499

 
47,507

 
 

 

 
 
 
 
 
 
 
 
 
Less: Other intangible assets
748

 
 
781

 
806

 
832

 
855

 
 
(4
)
 
(13
)
 
 
 
 
 
 
 
 
 
Add: Deferred tax liabilities (e)
2,280

 
 
2,239

 
2,227

 
2,216

 
2,204

 
 
2

 
3

 
 
 
 
 
 
 
 
 
Total tangible common equity
$
184,508

 
 
$
185,167

 
$
185,323

 
$
184,018

 
$
183,467

 
 

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TANGIBLE COMMON EQUITY (average) (d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Common stockholders’ equity
$
229,896

 
 
$
230,439

 
$
228,901

 
$
227,615

 
$
231,573

 
 

 
(1
)
 
$
229,222

 
 
$
230,350

 
 
 %
 
Less: Goodwill
47,478

 
 
47,490

 
47,494

 
47,504

 
47,376

 
 

 

 
47,491

 
 
47,317

 
 

 
Less: Other intangible assets
765

 
 
795

 
822

 
845

 
820

 
 
(4
)
 
(7
)
 
807

 
 
832

 
 
(3
)
 
Add: Deferred tax liabilities (e)
2,260

 
 
2,233

 
2,221

 
2,210

 
2,738

 
 
1

 
(17
)
 
2,231

 
 
3,116

 
 
(28
)
 
Total tangible common equity
$
183,913

 
 
$
184,387

 
$
182,806

 
$
181,476

 
$
186,115

 
 

 
(1
)
 
$
183,155

 
 
$
185,317

 
 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INTANGIBLE ASSETS (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$
47,471

 
 
$
47,483

 
$
47,488

 
$
47,499

 
$
47,507

 
 

 

 
 
 
 
 
 
 
 
 
Mortgage servicing rights
6,130

 
 
6,433

 
6,241

 
6,202

 
6,030

 
 
(5
)
 
2

 
 
 
 
 
 
 
 
 
Other intangible assets
748

 
 
781

 
806

 
832

 
855

 
 
(4
)
 
(13
)
 
 
 
 
 
 
 
 
 
Total intangible assets
$
54,349

 
 
$
54,697

 
$
54,535

 
$
54,533

 
$
54,392

 
 
(1
)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Basel III sets forth two comprehensive approaches for calculating risk-weighted assets: a Standardized approach and an Advanced approach. The capital adequacy of the Firm is evaluated against the Basel III approach (Standardized or Advanced) which, for each quarter, results in the lower ratio. As of December 31, 2018, and September 30, 2018, the Firm’s capital ratios were equivalent whether calculated on a transitional basis or on a fully phased-in basis. For further discussion of the implementation of Basel III, refer to Capital Risk Management on pages 82-91 of the 2017 Form 10-K, and on pages 44-48 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018.
(b)
Adjusted average assets, for purposes of calculating leverage ratios, 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.
(c)
Effective January 1, 2018, the SLR was fully phased-in under Basel III. The SLR is defined as Tier 1 capital divided by the Firm’s total leverage exposure. Ratios prior to March 31, 2018 were calculated under the Basel III Transitional rules.
(d)
For further discussion of TCE, refer to pages 28–29 .
(e)
Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted against goodwill and other intangibles when calculating TCE.
(f)
Estimated.



Page 9



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
EARNINGS PER SHARE AND RELATED INFORMATION
 
(in millions, except per share and ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
EARNINGS PER SHARE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
7,066

 
$
8,380

 
$
8,316

 
$
8,712

 
$
4,232

 
(16
)%
 
67
 %
 
 
$
32,474

 
$
24,441

 
33
 %
 
Less: Preferred stock dividends
384

 
379

 
379

 
409

 
428

 
1

 
(10
)
 
 
1,551

 
1,663

 
(7
)
 
Net income applicable to common equity
6,682

 
8,001

 
7,937

 
8,303

 
3,804

 
(16
)
 
76

 
 
30,923

 
22,778

 
36

 
Less: Dividends and undistributed earnings allocated to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
participating securities
41

 
53

 
57

 
65

 
30

 
(23
)
 
37

 
 
214

 
211

 
1

 
Net income applicable to common stockholders
$
6,641

 
$
7,948

 
$
7,880

 
$
8,238

 
$
3,774

 
(16
)
 
76

 
 
$
30,709

 
$
22,567

 
36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total weighted-average basic shares outstanding
3,335.8

 
3,376.1

 
3,415.2

 
3,458.3

 
3,489.7

 
(1
)
 
(4
)
 
 
3,396.4

 
3,551.6

 
(4
)
 
Net income per share
$
1.99

 
$
2.35

 
$
2.31

 
$
2.38

 
$
1.08

 
(15
)
 
84

 
 
$
9.04

 
$
6.35

 
42

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income applicable to common stockholders
$
6,641

 
$
7,948

 
$
7,880

 
$
8,238

 
$
3,774

 
(16
)
 
76

 
 
$
30,709

 
$
22,567

 
36

 
Total weighted-average basic shares outstanding
3,335.8

 
3,376.1

 
3,415.2

 
3,458.3

 
3,489.7

 
(1
)
 
(4
)
 
 
3,396.4

 
3,551.6

 
(4
)
 
Add: Employee stock options, stock appreciation rights (“SARs”), warrants and unvested performance share units (“PSUs”)
11.5

 
18.2

 
19.5

 
21.2

 
22.5

 
(37
)
 
(49
)
 
 
17.6

 
25.2

 
(30
)
 
Total weighted-average diluted shares outstanding
3,347.3

 
3,394.3

 
3,434.7

 
3,479.5

 
3,512.2

 
(1
)
 
(5
)
 
 
3,414.0

 
3,576.8

 
(5
)
 
Net income per share
$
1.98

 
$
2.34

 
$
2.29

 
$
2.37

 
$
1.07

 
(15
)
 
85

 
 
$
9.00

 
$
6.31

 
43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMMON DIVIDENDS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends declared per share
$
0.80

 
$
0.80

 
$
0.56

 
$
0.56

 
$
0.56

 

 
43

 
 
$
2.72

 
$
2.12

 
28

 
Dividend payout ratio
40
%
 
34
%
 
24
%
 
23
%
 
51
%
 
 
 
 
 
 
30
%
 
33
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMMON EQUITY REPURCHASE PROGRAM (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total shares of common stock repurchased
55.5

 
39.3

 
45.3

 
41.4

 
47.8

 
41

 
16

 
 
181.5

 
166.6

 
9

 
Average price paid per share of common stock
$
106.80

 
$
112.41

 
$
109.67

 
$
112.78

 
$
100.74

 
(5
)
 
6

 
 
$
110.09

 
$
92.52

 
19

 
Aggregate repurchases of common equity
5,928

 
4,416

 
4,968

 
4,671

 
4,808

 
34

 
23

 
 
19,983

 
15,410

 
30

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EMPLOYEE ISSUANCE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares issued from treasury stock related to employee
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
stock-based compensation awards and employee stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
purchase plans
1.2

 
1.0

 
0.6

 
19.8

 
2.5

 
20

 
(52
)
 
 
22.6

 
25.3

 
(11
)
 
Net impact of employee issuances on stockholders’ equity (b)
$
240

 
$
244

 
$
272

 
$
(69
)
 
$
92

 
(2
)
 
161

 
 
$
687

 
$
629

 
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
On June 28, 2018, the Firm announced that it is authorized to repurchase up to $20.7 billion of common equity between July 1, 2018 and June 30, 2019, under a new equity repurchase program.
(b)
The net impact of employee issuances on stockholders’ equity is driven by the cost of equity compensation awards that is recognized over the applicable vesting periods. The cost is partially offset by tax impacts related to the distribution of shares and the exercise of employee stock options and SARs.

Page 10




JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CONSUMER & COMMUNITY BANKING
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lending- and deposit-related fees
$
956

 
$
936

 
$
875

 
$
857

 
$
884

 
2
 %
 
8
 %
 
 
$
3,624

 
$
3,431

 
6
 %
 
Asset management, administration and commissions
610

 
626

 
591

 
575

 
568

 
(3
)
 
7

 
 
2,402

 
2,212

 
9

 
Mortgage fees and related income
203

 
260

 
324

 
465

 
378

 
(22
)
 
(46
)
 
 
1,252

 
1,613

 
(22
)
 
Card income
1,255

 
1,219

 
910

 
1,170

 
1,005

 
3

 
25

 
 
4,554

 
4,024

 
13

 
All other income
1,173

 
1,135

 
1,048

 
1,072

 
976

 
3

 
20

 
 
4,428

 
3,430

 
29

 
Noninterest revenue
4,197

 
4,176

 
3,748

 
4,139

 
3,811

 
1

 
10

 
 
16,260

 
14,710

 
11

 
Net interest income
9,498

 
9,114

 
8,749

 
8,458

 
8,259

 
4

 
15

 
 
35,819

 
31,775

 
13

 
TOTAL NET REVENUE
13,695

 
13,290

 
12,497

 
12,597

 
12,070

 
3

 
13

 
 
52,079

 
46,485

 
12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
1,348

 
980

 
1,108

 
1,317

 
1,231

 
38

 
10

 
 
4,753

 
5,572

 
(15
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense (a)
2,618

 
2,635

 
2,621

 
2,660

 
2,555

 
(1
)
 
2

 
 
10,534

 
10,133

 
4

 
Noncompensation expense (a)(b)
4,447

 
4,347

 
4,258

 
4,249

 
4,117

 
2

 
8

 
 
17,301

 
15,929

 
9

 
TOTAL NONINTEREST EXPENSE
7,065

 
6,982

 
6,879

 
6,909

 
6,672

 
1

 
6

 
 
27,835

 
26,062

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
5,282

 
5,328

 
4,510

 
4,371

 
4,167

 
(1
)
 
27

 
 
19,491

 
14,851

 
31

 
Income tax expense
1,254

 
1,242

 
1,098

 
1,045

 
1,536

 
1

 
(18
)
 
 
4,639

 
5,456

 
(15
)
 
NET INCOME
$
4,028

 
$
4,086

 
$
3,412

 
$
3,326

 
$
2,631

 
(1
)
 
53

 
 
$
14,852

 
$
9,395

 
58

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE BY LINE OF BUSINESS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
$
6,567

 
$
6,385

 
$
6,131

 
$
5,722

 
$
5,557

 
3

 
18

 
 
$
24,805

 
$
21,104

 
18

 
Home Lending
1,322

 
1,306

 
1,347

 
1,509

 
1,442

 
1

 
(8
)
 
 
5,484

 
5,955

 
(8
)
 
Card, Merchant Services & Auto
5,806

 
5,599

 
5,019

 
5,366

 
5,071

 
4

 
14

 
 
21,790

 
19,426

 
12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MORTGAGE FEES AND RELATED INCOME DETAILS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net production revenue
(28
)
 
108

 
93

 
95

 
185

 
NM

 
NM

 
 
268


636

 
(58
)
 
Net mortgage servicing revenue (c)
231

 
152

 
231

 
370

 
193

 
52

 
20

 
 
984


977

 
1

 
Mortgage fees and related income
$
203

 
$
260

 
$
324

 
$
465

 
$
378

 
(22
)
 
(46
)
 
 
$
1,252

 
$
1,613

 
(22
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE
30

%
31

%
26

%
25

%
19

%
 
 
 
 
 
28

%
17

%
 
 
Overhead ratio
52

 
53

 
55

 
55

 
55

 
 
 
 
 
 
53

 
56

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Effective in the first quarter of 2018, certain operations staff were transferred from CCB to CB. The prior period amounts have been revised to conform with the current period presentation. For further discussion of this transfer, refer to page 18, footnote (c).
(b)
Included operating lease depreciation expense of $927 million , $862 million , $827 million , $777 million and $726 million for the three months ended December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 , and December 31, 2017 , respectively, and $3.4 billion and $2.7 billion for the full year 2018 and 2017, respectively .
(c)
Included MSR risk management results of $(17) million , $(88) million , $(23) million , $17 million and $(110) million for the three months ended December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 , and December 31, 2017 , respectively, and $(111) million and $(242) million for the full year 2018 and 2017, respectively .
  


Page 11



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CONSUMER & COMMUNITY BANKING
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
557,441

 
$
560,432

 
$
552,674

 
$
540,659

 
$
552,601

 
(1
)%
 
1
 %
 
 
$
557,441

 
$
552,601

 
1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
26,612

 
26,451

 
26,272

 
25,856

 
25,789

 
1

 
3

 
 
26,612

 
25,789

 
3

 
Home equity
36,013

 
37,461

 
39,033

 
40,777

 
42,751

 
(4
)
 
(16
)
 
 
36,013

 
42,751

 
(16
)
 
Residential mortgage
203,859

 
205,389

 
202,205

 
199,548

 
197,339

 
(1
)
 
3

 
 
203,859

 
197,339

 
3

 
Home Lending
239,872

 
242,850

 
241,238

 
240,325

 
240,090

 
(1
)
 

 
 
239,872

 
240,090

 

 
Card
156,632

 
147,881

 
145,255

 
140,414

 
149,511

 
6

 
5

 
 
156,632

 
149,511

 
5

 
Auto
63,573

 
63,619

 
65,014

 
66,042

 
66,242

 

 
(4
)
 
 
63,573

 
66,242

 
(4
)
 
Total loans
486,689

 
480,801

 
477,779

 
472,637

 
481,632

 
1

 
1

 
 
486,689

 
481,632

 
1

 
           Core loans
434,466

 
425,917

 
419,295

 
409,296

 
415,167

 
2

 
5

 
 
434,466

 
415,167

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
678,854

 
677,260

 
679,154

 
685,170

 
659,885

 

 
3

 
 
678,854


659,885

 
3

 
Equity
51,000

 
51,000

 
51,000

 
51,000

 
51,000

 

 

 
 
51,000


51,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
554,600

 
$
551,080

 
$
544,642

 
$
538,938

 
$
538,311

 
1

 
3

 
 
$
547,368

 
$
532,756

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
26,474

 
26,351

 
26,110

 
25,845

 
25,234

 

 
5

 
 
26,197

 
24,875

 
5

 
Home equity
36,703

 
38,211

 
39,898

 
41,786

 
43,624

 
(4
)
 
(16
)
 
 
39,133

 
46,398

 
(16
)
 
Residential mortgage
205,471

 
204,689

 
201,587

 
198,653

 
197,032

 

 
4

 
 
202,624

 
190,242

 
7

 
Home Lending
242,174

 
242,900

 
241,485

 
240,439

 
240,656

 

 
1

 
 
241,757

 
236,640

 
2

 
Card
150,594

 
146,272

 
142,724

 
142,927

 
143,500

 
3

 
5

 
 
145,652

 
140,024

 
4

 
Auto
63,426

 
64,060

 
65,383

 
65,863

 
65,616

 
(1
)
 
(3
)
 
 
64,675

 
65,395

 
(1
)
 
Student

 

 

 

 
12

 

 
NM

 
 

 
2,880

 
NM

 
Total loans
482,668

 
479,583

 
475,702

 
475,074

 
475,018

 
1

 
2

 
 
478,281

 
469,814

 
2

 
           Core loans
429,167

 
422,582

 
414,120

 
410,147

 
406,935

 
2

 
5

 
 
419,066

 
393,598

 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
673,782

 
674,211

 
673,761

 
659,599

 
651,976

 

 
3

 
 
670,388

 
640,219

 
5

 
Equity
51,000

 
51,000

 
51,000

 
51,000

 
51,000

 

 

 
 
51,000

 
51,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount (a)(b)
129,518

 
129,891

 
131,945

 
133,408

 
133,721

 

 
(3
)
 
 
129,518

 
133,721

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Effective in the first quarter of 2018, certain operations staff were transferred from CCB to CB. The prior period amounts have been revised to conform with the current period presentation. For further discussion of this transfer, refer to page 18, footnote (c).
(b)
During the third quarter of 2018 approximately 1,200 employees transferred from CCB to CIB as part of the reorganization of the Commercial Card business.

Page 12



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
 
 
CONSUMER & COMMUNITY BANKING
 
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
 
(in millions, except ratio data)
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
CREDIT DATA AND QUALITY STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans (a)(b)
$
3,339

 
$
3,520

 
$
3,854

 
$
4,104

 
$
4,084

 
(5
)%
 
(18
)%
 
 
$
3,339

 
$
4,084

 
(18
)%
 
Net charge-offs/(recoveries) (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
65

 
68

 
50

 
53

 
73

 
(4
)
 
(11
)
 
 
236

 
257

 
(8
)
 
Home equity
(4
)
 
(12
)
 
(7
)
 
16

 
(4
)
 
67

 

 
 
(7
)
 
63

 
NM

 
Residential mortgage
(35
)
 
(105
)
 
(149
)
 
2

 
(13
)
 
67

 
(169
)
 
 
(287
)
 
(16
)
 
NM

 
Home Lending
(39
)
 
(117
)
 
(156
)
 
18

 
(17
)
 
67

 
(129
)
 
 
(294
)
 
47

 
NM

 
Card
1,111

 
1,073

 
1,164

 
1,170

 
1,074

 
4

 
3

 
 
4,518


4,123

 
10

 
Auto
61

 
56

 
50

 
76

 
86

 
9

 
(29
)
 
 
243


331

 
(27
)
 
Student

 

 



 

 

 

 
 


498

(g)
NM

 
Total net charge-offs/(recoveries)
$
1,198

 
$
1,080

 
$
1,108


$
1,317

 
$
1,216

 
11

 
(1
)
 
 
$
4,703


$
5,256

(g)
(11
)
 
Net charge-off/(recovery) rate (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
0.97

%
1.02

%
0.77

%
0.83

%
1.15

%
 
 
 
 
 
0.90

%
1.03

%
 
 
Home equity (d)
(0.06
)
 
(0.17
)
 
(0.09
)
 
0.21

 
(0.05
)
 
 
 
 
 
 
(0.02
)
 
0.18

 
 
 
Residential mortgage (d)
(0.07
)
 
(0.22
)
 
(0.33
)
 

 
(0.03
)
 
 
 
 
 
 
(0.16
)
 
(0.01
)
 
 
 
Home Lending (d)
(0.07
)
 
(0.21
)
 
(0.29
)
 
0.03

 
(0.03
)
 
 
 
 
 
 
(0.14
)
 
0.02

 
 
 
Card
2.93

 
2.91

 
3.27

 
3.32

 
2.97

 
 
 
 
 
 
3.10

 
2.95

 
 
 
Auto
0.38

 
0.35

 
0.31

 
0.47

 
0.52

 
 
 
 
 
 
0.38

 
0.51

 
 
 
Student

 

 

 

 

 
 
 
 
 
 

 
NM

 
 
 
Total net charge-off/(recovery) rate (d)
1.04

 
0.95

 
1.00


1.20

 
1.09

 
 
 
 
 
 
1.04


1.21

(g)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30+ day delinquency rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Home Lending (e)(f)
0.77

%
0.81

%
0.86

%
0.98

%
1.19

%
 
 
 
 
 
0.77

%
1.19

%
 
 
Card
1.83

 
1.75

 
1.65

 
1.82

 
1.80

 
 
 
 
 
 
1.83

 
1.80

 
 
 
Auto
0.93

 
0.82

 
0.77

 
0.71

 
0.89

 
 
 
 
 
 
0.93

 
0.89

 
 
 
90+ day delinquency rate - Card
0.92

 
0.85

 
0.85

 
0.95

 
0.92

 
 
 
 
 
 
0.92

 
0.92

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
$
796

 
$
796

 
$
796

 
$
796

 
$
796

 

 

 
 
$
796

 
$
796

 

 
Home Lending, excluding PCI loans
1,003

 
1,003

 
1,003

 
1,003

 
1,003

 

 

 
 
1,003

 
1,003

 

 
Home Lending - PCI loans (c)
1,788

 
1,824

 
2,132

 
2,205

 
2,225

 
(2
)
 
(20
)
 
 
1,788

 
2,225

 
(20
)
 
Card
5,184

 
5,034

 
4,884

 
4,884

 
4,884

 
3

 
6

 
 
5,184

 
4,884

 
6

 
Auto
464

 
464

 
464

 
464

 
464

 

 

 
 
464

 
464

 

 
Total allowance for loan losses (c)
$
9,235

 
$
9,121

 
$
9,279

 
$
9,352

 
$
9,372

 
1

 
(1
)
 
 
$
9,235

 
$
9,372

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note : CCB provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, refer to pages 28–29 .
(a)
Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as each of the pools is performing.
(b)
At December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 and December 31, 2017 , nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $2.6 billion , $2.9 billion , $3.3 billion , $4.0 billion and $4.3 billion , respectively. These amounts have been excluded based upon the government guarantee.
(c)
Net charge-offs/(recoveries) and the net charge-off/(recovery) rates for the three months ended December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 and December 31, 2017 , excluded write-offs in the PCI portfolio of $36 million , $58 million , $73 million , $20 million and $20 million , respectively, and for the full year 2018 and 2017 excluded $187 million and $86 million , respectively. These write-offs decreased the allowance for loan losses for PCI loans. For further information on PCI write-offs, refer to Summary of Changes in the Allowances on page 26.
(d)
Excludes the impact of PCI loans. For the three months ended December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 and December 31, 2017 , the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of (0.04)% , (0.12)% , (0.07)% , 0.16% and (0.04)% , respectively; (2) residential mortgage of (0.07)% , (0.20)% , (0.30)% , –% and (0.03)% , respectively; (3) Home Lending of (0.06)% , (0.19)% , (0.26)% , 0.03% and (0.03)% , respectively; and (4) total CCB of 0.99% , 0.89% , 0.93% , 1.12% and 1.02% , respectively. For the full year 2018 and 2017, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of (0.02)% and 0.14% , respectively; (2) residential mortgage of (0.14)% and (0.01)% , respectively; (3) Home Lending of (0.12)% and 0.02% , respectively; and (4) total CCB of 0.98% and 1.12% , respectively.
(e)
At December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 and December 31, 2017 , excluded mortgage loans insured by U.S. government agencies of $4.1 billion , $4.5 billion , $5.0 billion , $5.7 billion and $6.2 billion , respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
(f)
Excludes PCI loans. The 30+ day delinquency rate for PCI loans was 9.16% , 9.39% , 9.40% , 9.49% and 10.13% at December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 and December 31, 2017 , respectively.
(g)
Excluding net charge-offs of $467 million related to the student loan portfolio sale, the total net charge-off rate for the full year 2017 would have been 1.10%.

Page 13



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
 
 
CONSUMER & COMMUNITY BANKING
 
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
 
(in millions, except ratio data and where otherwise noted)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
BUSINESS METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Branches
5,036

 
5,066

 
5,091

 
5,106

 
5,130

 
(1
)%
 
(2
)%
 
 
5,036

 
5,130

 
(2
)%
 
Active digital customers (in thousands) (a)
49,254

 
48,664

 
47,952

 
47,911

 
46,694

 
1

 
5

 
 
49,254

 
46,694

 
5

 
Active mobile customers (in thousands) (b)
33,260

 
32,538

 
31,651

 
30,924

 
30,056

 
2

 
11

 
 
33,260

 
30,056

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debit and credit card sales volume (in billions)
$
270.5

 
$
259.0

 
$
255.0

 
$
232.4

 
$
245.1

 
4

 
10

 
 
$
1,016.9

 
$
916.9

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average deposits
$
660,279

 
$
659,513

 
$
659,772

 
$
646,400

 
$
637,160

 

 
4

 
 
$
656,537

 
$
625,572

 
5

 
Deposit margin
2.55

%
2.43

%
2.36

%
2.20

%
2.06

%
 
 
 
 
 
2.38

%
1.98

%
 
 
Business banking origination volume
$
1,477

 
$
1,629

 
$
1,921

 
$
1,656

 
$
1,798

 
(9
)
 
(18
)
 
 
$
6,683

 
$
7,348

 
(9
)
 
Client investment assets
282,463

 
298,405

 
283,731

 
276,183

 
273,325

 
(5
)
 
3

 
 
282,463

 
273,325

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Home Lending (in billions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage origination volume by channel
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$
9.0

 
$
10.6

 
$
10.4

 
$
8.3

 
$
11.0

 
(15
)
 
(18
)
 
 
$
38.3

 
$
40.3

 
(5
)
 
Correspondent
8.2

 
11.9

 
11.1

 
9.9

 
13.4

 
(31
)
 
(39
)
 
 
41.1

 
57.3

 
(28
)
 
Total mortgage origination volume (c)
$
17.2

 
$
22.5

 
$
21.5

 
$
18.2

 
$
24.4

 
(24
)
 
(30
)
 
 
$
79.4

 
$
97.6

 
(19
)
 
Total loans serviced (period-end)
$
789.8

 
$
798.6

 
$
802.6

 
$
804.9

 
$
816.1

 
(1
)
 
(3
)
 
 
$
789.8

 
$
816.1

 
(3
)
 
Third-party mortgage loans serviced (period-end)
519.6

 
526.5

 
533.0

 
539.0

 
553.5

 
(1
)
 
(6
)
 
 
519.6

 
553.5

 
(6
)
 
MSR carrying value (period-end)
6.1

 
6.4

 
6.2

 
6.2

 
6.0

 
(5
)
 
2

 
 
6.1


6.0

 
2

 
Ratio of MSR carrying value (period-end) to third-party
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
mortgage loans serviced (period-end)
1.17

%
1.22

%
1.16

%
1.15

%
1.08

%
 
 
 
 
 
1.17

%
1.08

%
 
 
MSR revenue multiple (d)
3.34
x
 
3.49
x
 
3.31
x
 
3.19
x
 
3.09
x
 
 
 
 
 
 
3.34
x
 
3.09
x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Card, excluding Commercial Card
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit card sales volume (in billions)
$
185.3

 
$
176.0

 
$
174.0

 
$
157.1

 
$
168.0

 
5

 
10

 
 
$
692.4

 
$
622.2

 
11

 
New accounts opened
2.0

 
1.9

 
1.9

 
2.0

 
1.9

 
5

 
5

 
 
7.8

 
8.4

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Card Services
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenue rate
11.57

%
11.50

%
10.38

%
11.61

%
10.64

%
 
 
 
 
 
11.27

%
10.57

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchant Services
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchant processing volume (in billions)
$
375.2

 
$
343.8

 
$
330.8

 
$
316.3

 
$
321.4

 
9

 
17

 
 
$
1,366.1

 
$
1,191.7

 
15

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Auto
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan and lease origination volume (in billions)
$
7.0

 
$
8.1

 
$
8.3

 
$
8.4

 
$
8.2

 
(14
)
 
(15
)
 
 
$
31.8

 
$
33.3

 
(5
)
 
Average auto operating lease assets
20,041

 
19,176

 
18,407

 
17,582

 
16,630

 
5

 
21

 
 
18,809


15,198

 
24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Users of all web and/or mobile platforms who have logged in within the past 90 days.
(b)
Users of all mobile platforms who have logged in within the past 90 days.
(c)
Firmwide mortgage origination volume was $18.7 billion , $24.5 billion , $23.7 billion , $20.0 billion and $26.6 billion for the three months ended December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 and December 31, 2017 , respectively, and $86.9 billion and $107.6 billion for the full year 2018 and 2017, respectively .
(d)
Represents the ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) divided by the ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average).



Page 14



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CORPORATE & INVESTMENT BANK
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment banking fees
$
1,815

 
$
1,823

 
$
2,139

 
$
1,696

 
$
1,798

 
 %
 
1
 %
 
 
$
7,473

 
$
7,356

 
2
 %
 
Principal transactions
1,485

 
3,091

 
3,666

 
4,029

 
1,765

 
(52
)
 
(16
)
 
 
12,271

 
10,873

 
13

 
Lending- and deposit-related fees
361

 
373

 
382

 
381

 
382

 
(3
)
 
(5
)
 
 
1,497

 
1,531

 
(2
)
 
Asset management, administration and commissions
1,072

 
1,130

 
1,155

 
1,131

 
1,046

 
(5
)
 
2

 
 
4,488

 
4,207

 
7

 
All other income
281

 
88

 
190

 
680

(c)
(50
)
 
219

 
NM

 
 
1,239

 
572

 
117

 
Noninterest revenue
5,014

 
6,505

 
7,532

 
7,917

 
4,941

 
(23
)
 
1

 
 
26,968

 
24,539

 
10

 
Net interest income
2,223

 
2,300

 
2,391

 
2,566

 
2,577

 
(3
)
 
(14
)
 
 
9,480

 
10,118

 
(6
)
 
TOTAL NET REVENUE (a)
7,237

 
8,805

 
9,923

 
10,483

 
7,518

(d)
(18
)
 
(4
)
 
 
36,448

 
34,657

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
82

 
(42
)
 
58

 
(158
)
 
130

 
NM

 
(37
)
 
 
(60
)
 
(45
)
 
(33
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense
2,057

 
2,402

 
2,720

 
3,036

 
1,997

 
(14
)
 
3

 
 
10,215

 
9,531

 
7

 
Noncompensation expense
2,624

 
2,773

 
2,683

 
2,623

 
2,556

 
(5
)
 
3

 
 
10,703

 
9,876

 
8

 
TOTAL NONINTEREST EXPENSE
4,681

 
5,175

 
5,403

 
5,659

 
4,553

 
(10
)
 
3

 
 
20,918

 
19,407

 
8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
2,474

 
3,672

 
4,462

 
4,982

 
2,835

 
(33
)
 
(13
)
 
 
15,590

 
15,295

 
2

 
Income tax expense
499

 
1,046

 
1,264

 
1,008

 
519

 
(52
)
 
(4
)
 
 
3,817

 
4,482

 
(15
)
 
NET INCOME
$
1,975

 
$
2,626

 
$
3,198

 
$
3,974

 
$
2,316

(d)
(25
)
 
(15
)
 
 
$
11,773

 
$
10,813

(d)
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE
10
%
 
14
%
 
17
%
 
22
%
 
12
%
 
 
 
 
 
 
16
%
 
14
%
 
 
 
Overhead ratio
65

 
59

 
54

 
54

 
61

 
 
 
 
 
 
57

 
56

 
 
 
Compensation expense as percentage of total net revenue
28

 
27

 
27

 
29

 
27

 
 
 
 
 
 
28

 
28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE BY BUSINESS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Banking
$
1,720

 
$
1,731

 
$
1,949

 
$
1,587

 
$
1,677

 
(1
)
 
3

 
 
$
6,987

 
$
6,852

 
2

 
Treasury Services
1,217

 
1,183

 
1,181

 
1,116

 
1,078

 
3

 
13

 
 
4,697

 
4,172

 
13

 
Lending
344

 
331

 
321

 
302

 
336

 
4

 
2

 
 
1,298

 
1,429

 
(9
)
 
Total Banking
3,281

 
3,245

 
3,451

 
3,005

 
3,091

 
1

 
6

 
 
12,982

 
12,453

 
4

 
Fixed Income Markets
1,856

 
2,844

 
3,453

 
4,553

 
2,217

 
(35
)
 
(16
)
 
 
12,706

 
12,812

 
(1
)
 
Equity Markets
1,317

 
1,595

 
1,959

 
2,017

 
1,148

 
(17
)
 
15

 
 
6,888

 
5,703

 
21

 
Securities Services
1,026

 
1,057

 
1,103

 
1,059

 
1,012

 
(3
)
 
1

 
 
4,245

 
3,917

 
8

 
Credit Adjustments & Other (b)
(243
)
 
64

 
(43
)
 
(151
)
 
50

 
NM

 
NM

 
 
(373
)
 
(228
)
 
(64
)
 
Total Markets & Investor Services
3,956

 
5,560

 
6,472

 
7,478

(c)
4,427

 
(29
)
 
(11
)
 
 
23,466

 
22,204

 
6

 
TOTAL NET REVENUE
$
7,237

 
$
8,805

 
$
9,923

 
$
10,483

 
$
7,518

(d)
(18
)
 
(4
)
 
 
$
36,448

 
$
34,657

(d)
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. Refer to page 29 for a further discussion.

(a)
Included tax-equivalent adjustments, predominantly due to income tax credits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; as well as tax-exempt income from municipal bonds of $465 million , $354 million , $428 million , $405 million and $756 million for the three months ended December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 , and December 31, 2017 , respectively, and $1.7 billion and $2.4 billion for the full year 2018 and 2017, respectively .
(b)
Consists primarily of credit valuation adjustments (“CVA”) managed centrally within CIB and funding valuation adjustments (“FVA”) on derivatives. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.
(c)
The three months ended March 31, 2018 included $505 million of fair value gains related to the adoption of the recognition and measurement accounting guidance for certain equity investments previously held at cost.
(d)
The three months and full year ended December 31, 2017 results reflect the estimated impact of the enactment of the TCJA including a decrease to net revenue of $259 million and a benefit to net income of $141 million.

Page 15



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CORPORATE & INVESTMENT BANK
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except ratio and headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
$
903,051

 
$
928,148

 
$
908,954

 
$
909,845

 
$
826,384

 
(3
)%
 
9
 %
 
 
$
903,051

 
$
826,384

 
9
 %
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained (a)
129,389

 
117,084

 
116,645

 
112,626

 
108,765

 
11

 
19

 
 
129,389

 
108,765

 
19

 
Loans held-for-sale and loans at fair value
13,050

 
6,133

 
6,254

 
6,122

 
4,321

 
113

 
202

 
 
13,050

 
4,321

 
202

 
Total loans
142,439

 
123,217

 
122,899

 
118,748

 
113,086

 
16

 
26

 
 
142,439

 
113,086

 
26

 
           Core loans
142,122

 
122,953

 
122,574

 
118,434

 
112,754

 
16

 
26

 
 
142,122

 
112,754

 
26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
70,000

 
70,000

 
70,000

 
70,000

 
70,000

 

 

 
 
70,000

 
70,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
$
918,643

 
$
924,909

 
$
937,217

 
$
910,146

 
$
866,293

 
(1
)
 
6

 
 
922,758

 
$
857,060

 
8

 
Trading assets - debt and equity instruments
334,033

 
349,390

 
358,611

 
354,869

 
338,836

 
(4
)
 
(1
)
 
 
349,169

 
342,124

 
2

 
Trading assets - derivative receivables
59,393

 
62,025

 
60,623

 
60,161

 
56,140

 
(4
)
 
6

 
 
60,552

 
56,466

 
7

 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained (a)
118,857

 
115,390

 
113,950

 
109,355

 
107,263

 
3

 
11

 
 
114,417

 
108,368

 
6

 
Loans held-for-sale and loans at fair value
6,852

 
7,328

 
5,961

 
5,480

 
4,224

 
(6
)
 
62

 
 
6,412

 
4,995

 
28

 
Total loans
125,709

 
122,718

 
119,911

 
114,835

 
111,487

 
2

 
13

 
 
120,829

 
113,363

 
7

 
Core loans
125,505

 
122,442

 
119,637

 
114,514

 
111,152

 
3

 
13

 
 
120,560

 
113,006

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
70,000

 
70,000

 
70,000

 
70,000

 
70,000

 

 

 
 
70,000

 
70,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount (b)
54,480

 
54,052

 
51,400

 
51,291

 
51,181

 
1

 
6

 
 
54,480

 
51,181

 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT DATA AND QUALITY STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs/(recoveries)
$
(1
)
 
$
(40
)
 
$
114

 
$
20

 
$
22

 
98

 
NM

 
 
$
93

 
$
71

 
31

 
Nonperforming assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans retained (c)
443

 
318

 
352

 
668

 
812

 
39

 
(45
)
 
 
443

 
812

 
(45
)
 
Nonaccrual loans held-for-sale and loans at fair value
220

 
9

 
175

 
29

 

 
NM

 
NM

 
 
220

 

 
NM

 
Total nonaccrual loans
663

 
327

 
527

 
697

 
812

 
103

 
(18
)
 
 
663

 
812

 
(18
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative receivables
60

 
90

 
112

 
132

 
130

 
(33
)
 
(54
)
 
 
60

 
130

 
(54
)
 
Assets acquired in loan satisfactions
57

 
61

 
104

 
91

 
85

 
(7
)
 
(33
)
 
 
57

 
85

 
(33
)
 
Total nonperforming assets
780

 
478

 
743

 
920

 
1,027

 
63

 
(24
)
 
 
780

 
1,027

 
(24
)
 
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
1,199

 
1,068

 
1,043

 
1,128

 
1,379

 
12

 
(13
)
 
 
1,199

 
1,379

 
(13
)
 
Allowance for lending-related commitments
754

 
802

 
828

 
800

 
727

 
(6
)
 
4

 
 
754

 
727

 
4

 
Total allowance for credit losses
1,953

 
1,870

 
1,871

 
1,928

 
2,106

 
4

 
(7
)
 
 
1,953

 
2,106

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-off/(recovery) rate (a)(d)
 %
 
(0.14
)%
 
0.40
%
 
0.07
%
 
0.08
%
 
 
 
 
 
 
0.08
%
 
0.07
%
 
 
 
Allowance for loan losses to period-end loans retained (a)
0.93

 
0.91

 
0.89

 
1.00

 
1.27

 
 
 
 
 
 
0.93

 
1.27

 
 
 
Allowance for loan losses to period-end loans retained,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
excluding trade finance and conduits (e)
1.24

 
1.27

 
1.27

 
1.46

 
1.92

 
 
 
 
 
 
1.24

 
1.92

 
 
 
Allowance for loan losses to nonaccrual loans retained (a)(c)
271

 
336

 
296

 
169

 
170

 
 
 
 
 
 
271

 
170

 
 
 
Nonaccrual loans to total period-end loans
0.47

 
0.27

 
0.43

 
0.59

 
0.72

 
 
 
 
 
 
0.47

 
0.72

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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)
During the third quarter of 2018 approximately 1,200 employees transferred from CCB to CIB as part of the reorganization of the commercial card business.
(c)
Allowance for loan losses of $174 million , $145 million , $141 million , $298 million and $316 million were held against nonaccrual loans at December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 , and December 31, 2017 , respectively.
(d)
Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
(e)
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.

Page 16



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CORPORATE & INVESTMENT BANK
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except where otherwise noted)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
BUSINESS METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory
$
727

 
$
581

 
$
626

 
$
575

 
$
526

 
25
 %
 
38
 %
 
 
$
2,509

 
$
2,150

 
17
 %
 
Equity underwriting
348

 
420

 
570

 
346

 
361

 
(17
)
 
(4
)
 
 
1,684

 
1,468

 
15

 
Debt underwriting
740

 
822

 
943

 
775

 
911

 
(10
)
 
(19
)
 
 
3,280

 
3,738

 
(12
)
 
Total investment banking fees
$
1,815

 
$
1,823

 
$
2,139

 
$
1,696

 
$
1,798

 

 
1

 
 
$
7,473

 
$
7,356

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets under custody (“AUC”) (period-end) (in billions)
$
23,217

 
$
24,403

 
$
24,184

 
$
24,026

 
$
23,469

 
(5
)
 
(1
)
 
 
$
23,217

 
$
23,469

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Client deposits and other third-party liabilities (average) (a)
445,642

 
434,847

 
433,646

 
423,301

 
417,003

 
2

 
7

 
 
434,422

 
408,911

 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
95% Confidence Level - Total CIB VaR (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CIB trading VaR by risk type: (b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income
$
37

 
$
30

 
$
31

 
$
34

 
$
28

 
23

 
32

 
 
 
 
 
 
 
 
Foreign exchange
6

 
5

 
6

 
9

 
7

 
20

 
(14
)
 
 
 
 
 
 
 
 
Equities
20

 
16

 
15

 
17

 
14

 
25

 
43

 
 
 
 
 
 
 
 
Commodities and other
11

 
9

 
7

 
5

 
6

 
22

 
83

 
 
 
 
 
 
 
 
Diversification benefit to CIB trading VaR (c)
(25
)
 
(27
)
 
(27
)
 
(25
)
 
(24
)
 
7

 
(4
)
 
 
 
 
 
 
 
 
CIB trading VaR (b)
49

 
33

 
32

 
40

 
31

 
48

 
58

 
 
 
 
 
 
 
 
Credit portfolio VaR (d)
4

 
3

 
4

 
3

 
4

 
33

 

 
 
 
 
 
 
 
 
Diversification benefit to CIB VaR (c)
(4
)
 
(3
)
 
(3
)
 
(3
)
 
(3
)
 
(33
)
 
(33
)
 
 
 
 
 
 
 
 
CIB VaR
$
49

 
$
33

 
$
33

 
$
40

 
$
32

 
48

 
53

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. Refer to page 29 for a further discussion.

(a)
Client deposits and other third-party liabilities pertain to the Treasury Services and Securities Services businesses.
(b)
CIB trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in CIB, including credit spread sensitivity to CVA. For further information, refer to VaR measurement on pages 123–125 of the 2017 Form 10-K, and pages 73-75 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018.
(c)
Average portfolio VaR was 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 the risks were not perfectly correlated.
(d)
Credit portfolio VaR includes the derivative CVA, hedges of the CVA and hedges of the retained loan portfolio, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value.


Page 17




JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
COMMERCIAL BANKING
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lending- and deposit-related fees
$
204

 
$
216

 
$
224

 
$
226

 
$
229

 
(6
)%
 
(11
)%
 
 
$
870

 
$
919

 
(5
)%
 
Asset management, administration and commissions
21

 
18

 
16

 
18

 
18

 
17

 
17

 
 
73

 
68

 
7

 
All other income (a)
360

 
342

 
393

 
305

 
501

 
5

 
(28
)
 
 
1,400

 
1,535

 
(9
)
 
Noninterest revenue
585

 
576

 
633

 
549

 
748

 
2

 
(22
)
 
 
2,343

 
2,522

 
(7
)
 
Net interest income
1,721

 
1,695

 
1,683

 
1,617

 
1,605

 
2

 
7

 
 
6,716

 
6,083

 
10

 
TOTAL NET REVENUE (b)
2,306

 
2,271

 
2,316

 
2,166

 
2,353

 
2

 
(2
)
 
 
9,059

 
8,605

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
106

 
(15
)
 
43

 
(5
)
 
(62
)
 
NM

 
NM

 
 
129

 
(276
)
 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense (c)
426

 
432

 
415

 
421

 
378

 
(1
)
 
13

 
 
1,694

 
1,534

 
10

 
Noncompensation expense (c)
419

 
421

 
429

 
423

 
534

 

 
(22
)
 
 
1,692

 
1,793

 
(6
)
 
TOTAL NONINTEREST EXPENSE
845

 
853

 
844

 
844

 
912

 
(1
)
 
(7
)
 
 
3,386

 
3,327

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
1,355

 
1,433

 
1,429

 
1,327

 
1,503

 
(5
)
 
(10
)
 
 
5,544

 
5,554

 

 
Income tax expense
319

 
344

 
342

 
302

 
546

 
(7
)
 
(42
)
 
 
1,307

 
2,015

 
(35
)
 
NET INCOME
$
1,036

 
$
1,089

 
$
1,087

 
$
1,025

 
$
957

 
(5
)
 
8

 
 
$
4,237

 
$
3,539

 
20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by product
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lending
$
997

 
$
1,027

 
$
1,026

 
$
999

 
$
1,049

 
(3
)
 
(5
)
 
 
$
4,049

 
$
4,094

 
(1
)
 
Treasury services
1,055

 
1,021

 
1,026

 
972

 
921

 
3

 
15

 
 
4,074

 
3,444

 
18

 
Investment banking (d)
208

 
206

 
254

 
184

 
204

 
1

 
2

 
 
852

 
805

 
6

 
Other
46

 
17

 
10

 
11

 
179

 
171

 
(74
)
 
 
84

 
262

 
(68
)
 
Total Commercial Banking net revenue (b)
$
2,306

 
$
2,271

 
$
2,316

 
$
2,166

 
$
2,353

 
2

 
(2
)
 
 
$
9,059

 
$
8,605

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment banking revenue, gross (e)
$
602

 
$
581

 
$
739

 
$
569

 
$
608

 
4

 
(1
)
 
 
$
2,491

 
$
2,385

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by client segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Middle Market Banking
$
959

 
$
935

 
$
919

 
$
895

 
$
870

 
3

 
10

 
 
$
3,708

 
$
3,341

 
11

 
Corporate Client Banking
741

 
749

 
807

 
687

 
711

 
(1
)
 
4

 
 
2,984

 
2,727

 
9

 
Commercial Term Lending
331

 
339

 
344

 
352

 
356

 
(2
)
 
(7
)
 
 
1,366

 
1,454

 
(6
)
 
Real Estate Banking
172

 
175

 
170

 
164

 
166

 
(2
)
 
4

 
 
681

 
604

 
13

 
Other
103

 
73

 
76

 
68

 
250

 
41

 
(59
)
 
 
320

 
479

 
(33
)
 
Total Commercial Banking net revenue (b)
$
2,306

 
$
2,271

 
$
2,316

 
$
2,166

 
$
2,353

 
2

 
(2
)
 
 
$
9,059

 
$
8,605

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE
20

%
21

%
21

%
20

%
18

%
 
 
 
 
 
20

%
17

%
 
 
Overhead ratio
37

 
38

 
36

 
39

 
39

 
 
 
 
 
 
37

 
39

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 related to municipal financing activities of $128 million , $107 million , $106 million , $103 million and $304 million for the three months ended December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 , and December 31, 2017 , respectively, and $444 million and $699 million for the full year 2018 and 2017, respectively . The three months ended December 31, 2017 results reflect the estimated impact of the enactment of the TCJA including a benefit to other revenue of $115 million on certain investments in the Community Development Banking business.
(c)
Effective in the first quarter of 2018, certain operations and compliance staff were transferred from CCB and Corporate, respectively, to CB. As a result, expense for this staff is now reflected in CB’s compensation expense with a corresponding adjustment for expense allocations reflected in noncompensation expense. CB’s, Corporate’s and CCB’s previously reported headcount, compensation expense and noncompensation expense have been revised to reflect this transfer.
(d)
Includes total Firm revenue from investment banking products sold to CB clients, net of revenue sharing with the CIB.
(e)
Represents total Firm revenue from investment banking products sold to CB clients. As a result of the adoption of the revenue recognition guidance prior period amounts have been revised to conform with the current period presentation.


Page 18



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
COMMERCIAL BANKING
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except headcount and ratio data)
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
220,229

 
$
217,194

 
$
220,232

 
$
220,880

 
$
221,228

 
1
 %
 
 %
 
 
$
220,229

 
$
221,228

 
 %
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained
204,219

 
205,177

 
205,834

 
202,812

 
202,400

 

 
1

 
 
204,219

 
202,400

 
1

 
Loans held-for-sale and loans at fair value
1,978

 
405

 
1,576

 
2,473

 
1,286

 
388

 
54

 
 
1,978

 
1,286

 
54

 
Total loans
$
206,197

 
$
205,582

 
$
207,410

 
$
205,285

 
$
203,686

 

 
1

 
 
$
206,197

 
$
203,686

 
1

 
           Core loans
206,039

 
205,418

 
207,238

 
205,087

 
203,469

 

 
1

 
 
206,039

 
203,469

 
1

 
Equity
20,000

 
20,000

 
20,000

 
20,000

 
20,000

 

 

 
 
20,000

 
20,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period-end loans by client segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Middle Market Banking
$
56,656

 
$
57,324

 
$
58,301

 
$
57,835

 
$
56,965

 
(1
)
 
(1
)
 
 
$
56,656

 
$
56,965

 
(1
)
 
Corporate Client Banking
48,343

 
46,890

 
48,885

 
47,562

 
46,963

 
3

 
3

 
 
48,343

 
46,963

 
3

 
Commercial Term Lending
76,720

 
76,201

 
75,621

 
75,052

 
74,901

 
1

 
2

 
 
76,720

 
74,901

 
2

 
Real Estate Banking
17,563

 
18,013

 
17,458

 
17,709

 
17,796

 
(2
)
 
(1
)
 
 
17,563

 
17,796

 
(1
)
 
Other
6,915

 
7,154

 
7,145

 
7,127

 
7,061

 
(3
)
 
(2
)
 
 
6,915

 
7,061

 
(2
)
 
Total Commercial Banking loans
$
206,197

 
$
205,582

 
$
207,410

 
$
205,285

 
$
203,686

 

 
1

 
 
$
206,197

 
$
203,686

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
218,227

 
$
219,232

 
$
218,396

 
$
217,159

 
$
218,452

 

 

 
 
$
218,259

 
$
217,047

 
1

 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained
205,113

 
205,603

 
204,239

 
201,966

 
201,948

 

 
2

 
 
$
204,243

 
197,203

 
4

 
Loans held-for-sale and loans at fair value
1,610

 
1,617

 
1,381

 
406

 
844

 

 
91

 
 
1,258

 
909

 
38

 
Total loans
$
206,723

 
$
207,220

 
$
205,620

 
$
202,372

 
$
202,792

 

 
2

 
 
$
205,501

 
$
198,112

 
4

 
Core loans
206,561

 
207,052

 
205,440

 
202,161

 
202,569

 

 
2

 
 
205,320

 
197,846

 
4

 
Client deposits and other third-party liabilities
169,174

 
168,169

 
170,745

 
175,618

 
181,815

 
1

 
(7
)
 
 
170,901

 
177,018

 
(3
)
 
Equity
20,000

 
20,000

 
20,000

 
20,000

 
20,000

 

 

 
 
20,000

 
20,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average loans by client segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Middle Market Banking
$
57,004

 
$
57,258

 
$
57,346

 
$
56,754

 
$
56,170

 

 
1

 
 
$
57,092

 
$
55,474

 
3

 
Corporate Client Banking
48,167

 
49,004

 
48,150

 
45,760

 
47,585

 
(2
)
 
1

 
 
47,780

 
46,037

 
4

 
Commercial Term Lending
76,586

 
75,919

 
75,307

 
74,942

 
74,577

 
1

 
3

 
 
75,694

 
73,428

 
3

 
Real Estate Banking
17,910

 
17,861

 
17,614

 
17,845

 
17,474

 

 
2

 
 
17,808

 
16,525

 
8

 
Other
7,056

 
7,178

 
7,203

 
7,071

 
6,986

 
(2
)
 
1

 
 
7,127

 
6,648

 
7

 
Total Commercial Banking loans
$
206,723

 
$
207,220

 
$
205,620

 
$
202,372

 
$
202,792

 

 
2

 
 
$
205,501

 
$
198,112

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount (a)
11,042

 
10,937

 
10,579

 
10,372

 
10,061

 
1

 
10

 
 
11,042

 
10,061

 
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT DATA AND QUALITY STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs/(recoveries)
$
37

 
$
(18
)
 
$
34

 
$

 
$
22

 
NM

 
68

 
 
$
53

 
$
39

 
36

 
Nonperforming assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans retained (b)
511

 
452

 
546

 
666

 
617

 
13

 
(17
)
 
 
511

 
617

 
(17
)
 
Nonaccrual loans held-for-sale and loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
at fair value

 
5

 

 

 

 
NM

 

 
 

 

 

 
Total nonaccrual loans
511

 
457

 
546

 
666

 
617

 
12

 
(17
)
 
 
511

 
617

 
(17
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets acquired in loan satisfactions
2

 
2

 
2

 
1

 
3

 

 
(33
)
 
 
2

 
3

 
(33
)
 
Total nonperforming assets
513

 
459

 
548

 
667

 
620

 
12

 
(17
)
 
 
513

 
620

 
(17
)
 
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
2,682

 
2,619

 
2,622

 
2,591

 
2,558

 
2

 
5

 
 
2,682

 
2,558

 
5

 
Allowance for lending-related commitments
254

 
249

 
243

 
263

 
300

 
2

 
(15
)
 
 
254

 
300

 
(15
)
 
Total allowance for credit losses
2,936

 
2,868

 
2,865

 
2,854

 
2,858

 
2

 
3

 
 
2,936

 
2,858

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-off/(recovery) rate (c)
0.07

%
(0.03
)
%
0.07

%

%
0.04

%
 
 
 
 
 
0.03

%
0.02

%
 
 
Allowance for loan losses to period-end loans retained
1.31

 
1.28

 
1.27

 
1.28

 
1.26

 
 
 
 
 
 
1.31

 
1.26

 
 
 
Allowance for loan losses to nonaccrual loans retained (b)
525

 
579

 
480

 
389

 
415

 
 
 
 
 
 
525

 
415

 
 
 
Nonaccrual loans to period-end total loans
0.25

 
0.22

 
0.26

 
0.32

 
0.30

 
 
 
 
 
 
0.25

 
0.30

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Effective in the first quarter of 2018, certain operations and compliance staff were transferred from CCB and Corporate, respectively, to CB. The prior period amounts have been revised to conform with the current period presentation. For further discussion of this transfer, refer to page 18, footnote (c).
(b)
Allowance for loan losses of $92 million , $105 million , $126 million , $116 million and $92 million was held against nonaccrual loans retained at December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 , and December 31, 2017 , respectively.
(c)
Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.

Page 19



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
ASSET & WEALTH MANAGEMENT
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except ratio and headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset management, administration and commissions
$
2,548

 
$
2,563

 
$
2,532

 
$
2,528

 
$
2,651

 
(1
)%
 
(4
)%
 
 
$
10,171

 
$
9,856

 
3
 %
 
All other income
(6
)
 
117

 
155

 
102

 
128

 
NM

 
NM

 
 
368

 
600

 
(39
)
 
Noninterest revenue
2,542

 
2,680

 
2,687

 
2,630

 
2,779

 
(5
)
 
(9
)
 
 
10,539

 
10,456

 
1

 
Net interest income
897

 
879

 
885

 
876

 
859

 
2

 
4

 
 
3,537

 
3,379

 
5

 
TOTAL NET REVENUE
3,439

 
3,559

 
3,572

 
3,506

 
3,638

 
(3
)
 
(5
)
 
 
14,076

 
13,835

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
13

 
23

 
2

 
15

 
9

 
(43
)
 
44

 
 
53

 
39

 
36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense
1,383

 
1,391

 
1,329

 
1,392

 
1,389

 
(1
)
 

 
 
5,495

 
5,317

 
3

 
Noncompensation expense
1,238

 
1,194

 
1,237

 
1,189

 
1,223

 
4

 
1

 
 
4,858

 
4,901

 
(1
)
 
TOTAL NONINTEREST EXPENSE
2,621

 
2,585

 
2,566

 
2,581

 
2,612

 
1

 

 
 
10,353

 
10,218

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
805

 
951

 
1,004

 
910

 
1,017

 
(15
)
 
(21
)
 
 
3,670

 
3,578

 
3

 
Income tax expense
201

 
227

 
249

 
140

 
363

 
(11
)
 
(45
)
 
 
817

 
1,241

 
(34
)
 
NET INCOME
$
604

 
$
724

 
$
755

 
$
770

 
$
654

 
(17
)
 
(8
)
 
 
$
2,853

 
$
2,337

 
22

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE BY LINE OF BUSINESS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Management
$
1,723

 
$
1,827

 
$
1,826

 
$
1,787

 
$
1,969

 
(6
)
 
(12
)
 
 
$
7,163

 
$
7,257

 
(1
)
 
Wealth Management
1,716

 
1,732

 
1,746

 
1,719

 
1,669

 
(1
)
 
3

 
 
6,913

 
6,578

 
5

 
TOTAL NET REVENUE
$
3,439

 
$
3,559

 
$
3,572

 
$
3,506

 
$
3,638

 
(3
)
 
(5
)
 
 
$
14,076

 
$
13,835

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE
26

%
31

%
33

%
34

%
28

%
 
 
 
 
 
31

%
25

%
 
 
Overhead ratio
76

 
73

 
72

 
74

 
72

 
 
 
 
 
 
74

 
74

 
 
 
Pretax margin ratio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Management
25

 
27

 
28

 
26

 
29

 
 
 
 
 
 
26

 
22

 
 
 
Wealth Management
22

 
26

 
28

 
26

 
27

 
 
 
 
 
 
26

 
30

 
 
 
Asset & Wealth Management
23

 
27

 
28

 
26

 
28

 
 
 
 
 
 
26

 
26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount
23,920

 
23,747

 
23,141

 
23,268

 
22,975

 
1

 
4

 
 
23,920

 
22,975

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Wealth Management client advisors
2,865

 
2,808

 
2,644

 
2,640

 
2,605

 
2

 
10

 
 
2,865

 
2,605

 
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. Refer to page 29 for a further discussion.








Page 20



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
ASSET & WEALTH MANAGEMENT
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
170,024

 
$
166,716

 
$
161,474

 
$
158,439

 
$
151,909

 
2
 %
 
12
 %
 
 
$
170,024

 
$
151,909

 
12
 %
 
Loans
147,632

 
143,162

 
138,606

 
136,030

 
130,640

 
3

 
13

 
 
147,632

 
130,640

 
13

 
    Core loans
147,632

 
143,162

 
138,606

 
136,030

 
130,640

 
3

 
13

 
 
147,632

 
130,640

 
13

 
Deposits
138,546

 
130,497

 
131,511

 
147,238

 
146,407

 
6

 
(5
)
 
 
138,546

 
146,407

 
(5
)
 
Equity
9,000

 
9,000

 
9,000

 
9,000

 
9,000

 

 

 
 
9,000

 
9,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
166,353

 
$
161,982

 
$
158,244

 
$
154,345

 
$
149,147

 
3

 
12

 
 
$
160,269

 
$
144,206

 
11

 
Loans
144,434

 
140,558

 
136,710

 
132,634

 
127,802

 
3

 
13

 
 
138,622

 
123,464

 
12

 
    Core loans
144,434

 
140,558

 
136,710

 
132,634

 
127,802

 
3

 
13

 
 
138,622

 
123,464

 
12

 
Deposits
132,486

 
133,021

 
139,557

 
144,199

 
142,069

 

 
(7
)
 
 
137,272

 
148,982

 
(8
)
 
Equity
9,000

 
9,000

 
9,000

 
9,000

 
9,000

 

 

 
 
9,000

 
9,000

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT DATA AND QUALITY STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs
$
3

 
$
11

 
$
(5
)
 
$
1

 
$
4

 
(73
)
 
(25
)
 
 
$
10

 
$
14

 
(29
)
 
Nonaccrual loans
263

 
285

 
323

 
359

 
375

 
(8
)
 
(30
)
 
 
263

 
375

 
(30
)
 
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
326

 
317

 
304

 
301

 
290

 
3

 
12

 
 
326

 
290

 
12

 
Allowance for lending-related commitments
16

 
15

 
15

 
13

 
10

 
7

 
60

 
 
16

 
10

 
60

 
Total allowance for credit losses
342

 
332

 
319

 
314

 
300

 
3

 
14

 
 
342

 
300

 
14

 
Net charge-off/(recovery) rate
0.01

%
0.03

%
(0.01
)
%

%
0.01

%
 
 
 
 
 
0.01

%
0.01

%
 
 
Allowance for loan losses to period-end loans
0.22

 
0.22

 
0.22

 
0.22

 
0.22

 
 
 
 
 
 
0.22

 
0.22

 
 
 
Allowance for loan losses to nonaccrual loans
124

 
111

 
94

 
84

 
77

 
 
 
 
 
 
124

 
77

 
 
 
Nonaccrual loans to period-end loans
0.18

 
0.20

 
0.23

 
0.26

 
0.29

 
 
 
 
 
 
0.18

 
0.29

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 21



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
ASSET & WEALTH MANAGEMENT
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in billions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
FULL YEAR
 
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Dec 31,
 
 
 
 
 
 
2018 Change
 
CLIENT ASSETS
2018
 
2018
 
2018
 
2018
 
2017
 
2018
 
2017
 
 
2018
 
2017
 
2017
 
Assets by asset class
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquidity
$
480

 
$
463

 
$
448

 
$
432

 
$
459

 
4
 %
 
5
 %
 
 
$
480

 
$
459

 
5
 %
 
Fixed income
464

 
457

 
452

 
467

 
474

 
2

 
(2
)
 
 
464

 
474

 
(2
)
 
Equity
384

 
452

 
435

 
432

 
428

 
(15
)
 
(10
)
 
 
384

 
428

 
(10
)
 
Multi-asset and alternatives
659

 
705

 
693

 
685

 
673

 
(7
)
 
(2
)
 
 
659

 
673

 
(2
)
 
TOTAL ASSETS UNDER MANAGEMENT
1,987

 
2,077

 
2,028

 
2,016

 
2,034

 
(4
)
 
(2
)
 
 
1,987

 
2,034

 
(2
)
 
Custody/brokerage/administration/deposits
746

 
790

 
771

 
772

 
755

 
(6
)
 
(1
)
 
 
746

 
755

 
(1
)
 
TOTAL CLIENT ASSETS
$
2,733

 
$
2,867

 
$
2,799

 
$
2,788

 
$
2,789

 
(5
)
 
(2
)
 
 
$
2,733

 
$
2,789

 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Memo:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alternatives client assets (a)
$
171

 
$
172

 
$
172

 
$
169

 
$
166

 
(1
)
 
3

 
 
$
171

 
$
166

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets by client segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private Banking
$
552

 
$
576

 
$
551

 
$
537

 
$
526

 
(4
)
 
5

 
 
$
552

 
$
526

 
5

 
Institutional
926

 
945

 
934

 
937

 
968

 
(2
)
 
(4
)
 
 
926

 
968

 
(4
)
 
Retail
509

 
556

 
543

 
542

 
540

 
(8
)
 
(6
)
 
 
509

 
540

 
(6
)
 
TOTAL ASSETS UNDER MANAGEMENT
$
1,987

 
$
2,077

 
$
2,028

 
$
2,016

 
$
2,034

 
(4
)
 
(2
)
 
 
$
1,987

 
$
2,034

 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private Banking
$
1,274

 
$
1,339

 
$
1,298

 
$
1,285

 
$
1,256

 
(5
)
 
1

 
 
$
1,274

 
$
1,256

 
1

 
Institutional
946

 
967

 
956

 
958

 
990

 
(2
)
 
(4
)
 
 
946

 
990

 
(4
)
 
Retail
513

 
561

 
545

 
545

 
543

 
(9
)
 
(6
)
 
 
513

 
543

 
(6
)
 
TOTAL CLIENT ASSETS
$
2,733

 
$
2,867

 
$
2,799

 
$
2,788

 
$
2,789

 
(5
)
 
(2
)
 
 
$
2,733

 
$
2,789

 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets under management rollforward
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
2,077

 
$
2,028

 
$
2,016

 
$
2,034

 
$
1,945

 
 
 
 
 
 
$
2,034

 
$
1,771

 
 
 
Net asset flows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquidity
21

 
14

 
17

 
(21
)
 
10

 
 
 
 
 
 
31

 
9

 
 
 
Fixed income
8

 
3

 
(7
)
 
(5
)
 
12

 
 
 
 
 
 
(1
)
 
36

 
 
 
Equity
(6
)
 
1

 
2

 
5

 
1

 
 
 
 
 
 
2

 
(11
)
 
 
 
Multi-asset and alternatives
(5
)
 
4

 
9

 
16

 
17

 
 
 
 
 
 
24

 
43

 
 
 
Market/performance/other impacts
(108
)
 
27

 
(9
)
 
(13
)
 
49

 
 
 
 
 
 
(103
)
 
186

 
 
 
Ending balance
$
1,987

 
$
2,077

 
$
2,028

 
$
2,016

 
$
2,034

 
 
 
 
 
 
$
1,987

 
$
2,034

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Client assets rollforward
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
2,867

 
$
2,799

 
$
2,788

 
$
2,789

 
$
2,678

 
 
 
 
 
 
$
2,789

 
$
2,453

 
 
 
Net asset flows
30

 
33

 
11

 
14

 
56

 
 
 
 
 
 
88

 
93

 
 
 
Market/performance/other impacts
(164
)
 
35

 

 
(15
)
 
55

 
 
 
 
 
 
(144
)
 
243

 
 
 
Ending balance
$
2,733

 
$
2,867

 
$
2,799

 
$
2,788

 
$
2,789

 
 
 
 
 
 
$
2,733

 
$
2,789

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Represents assets under management, as well as client balances in brokerage accounts.


Page 22



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CORPORATE
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal transactions
$
(204
)
 
$
(161
)
 
$
83

 
$
(144
)
 
$
123

 
(27
)%
 
NM

 
 
$
(426
)
 
$
284

 
NM

 
Securities gains/(losses)
(24
)
 
(46
)
 
(80
)
 
(245
)
 
(29
)
 
48

 
17

 
 
(395
)
 
(66
)
 
(498
)
 
All other income
185

 
30

 
139

 
204

 
28

 
NM

 
NM

 
 
558

 
867

(g)
(36
)
 
Noninterest revenue
(43
)
 
(177
)
 
142

 
(185
)
 
122

 
76

 
NM

 
 
(263
)
 
1,085

 
NM

 
Net interest income
170

 
74

 
(62
)
 
(47
)
 
53

 
130

 
221

 
 
135

 
55

 
145

 
TOTAL NET REVENUE (a)
127

 
(103
)
 
80

 
(232
)
 
175

 
NM

 
(27
)
 
 
(128
)
 
1,140

 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
(1
)
 
2

 
(1
)
 
(4
)
 

 
NM

 
NM

 
 
(4
)
 

 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE (b)
508

 
28

 
279

 
87

 
146

 
NM

 
248

 
 
902

 
501

 
80

 
Income/(loss) before income tax expense/(benefit)
(380
)
 
(133
)
 
(198
)
 
(315
)
 
29

 
(186
)
 
NM

 
 
(1,026
)
 
639

 
NM

 
Income tax expense/(benefit)
197

 
12

 
(62
)
 
68

 
2,355

(f)
NM

 
(92
)
 
 
215

 
2,282

(f)
(91
)
 
NET INCOME/(LOSS)
$
(577
)
 
$
(145
)
 
$
(136
)
 
$
(383
)
 
$
(2,326
)
 
(298
)
 
75

 
 
$
(1,241
)
 
$
(1,643
)
 
24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MEMO:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NET REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Treasury and Chief Investment Office (“CIO”)
275

 
186

 
87

 
(38
)
 
222

 
48

 
24

 
 
510

 
566

 
(10
)
 
Other Corporate
(148
)
 
(289
)
 
(7
)
 
(194
)
 
(47
)
 
49

 
(215
)
 
 
(638
)
 
574

 
NM

 
TOTAL NET REVENUE
$
127

 
$
(103
)
 
$
80

 
$
(232
)
 
$
175

 
NM

 
(27
)
 
 
$
(128
)
 
$
1,140

 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME/(LOSS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Treasury and CIO
175

 
96

 
(153
)
 
(187
)
 
66

 
82

 
165

 
 
(69
)
 
60

 
NM

 
Other Corporate
(752
)
 
(241
)
 
17

 
(196
)
 
(2,392
)
 
(212
)
 
69

 
 
(1,172
)
 
(1,703
)
 
31

 
TOTAL NET INCOME/(LOSS)
$
(577
)
 
$
(145
)
 
$
(136
)
 
$
(383
)
 
$
(2,326
)
 
(298
)
 
75

 
 
$
(1,241
)
 
$
(1,643
)
 
24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
771,787

 
$
742,693

 
$
746,716

 
$
779,962

 
$
781,478

 
4

 
(1
)
 
 
$
771,787

 
$
781,478

 
(1
)
 
Loans
1,597

 
1,556

 
1,720

 
1,724

 
1,653

 
3

 
(3
)
 
 
1,597

 
1,653

 
(3
)
 
Core loans (c)
1,597

 
1,556

 
1,720

 
1,689

 
1,653

 
3

 
(3
)
 
 
1,597

 
1,653

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount (d)
37,145

 
36,686

 
35,877

 
35,368

 
34,601

 
1

 
7

 
 
37,145

 
34,601

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SUPPLEMENTAL INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TREASURY and CIO
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities gains/(losses)
$
(24
)
 
$
(46
)
 
$
(80
)
 
$
(245
)
 
$
(29
)
 
48
 %
 
17
 %
 
 
$
(395
)
 
$
(78
)
 
(406
)%
 
Available-for-sale (“AFS”) investment securities (average)
211,997

 
197,230

 
200,232

 
204,323

(e)
205,252

 
7

 
3

 
 
203,449

 
219,345

 
(7
)
 
Held-to-maturity (“HTM”) investment securities (average)
31,466

 
31,232

 
30,304

 
34,020

(e)
47,115

 
1

 
(33
)
 
 
31,747

 
47,927

 
(34
)
 
Investment securities portfolio (average)
$
243,463

 
$
228,462

 
$
230,536

 
$
238,343

 
$
252,367

 
7

 
(4
)
 
 
$
235,197

 
$
267,272

 
(12
)
 
AFS investment securities (period-end)
228,681

 
198,523

 
200,434

 
207,703

(e)
200,247

 
15

 
14

 
 
228,681

 
200,247

 
14

 
HTM investment securities (period-end)
31,434

 
31,368

 
31,006

 
29,042

(e)
47,733

 

 
(34
)
 
 
31,434

 
47,733

 
(34
)
 
Investment securities portfolio (period-end)
$
260,115

 
$
229,891

 
$
231,440

 
$
236,745

 
$
247,980

 
13

 
5

 
 
$
260,115

 
$
247,980

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Included tax-equivalent adjustments, driven by tax-exempt income from municipal bond investments, of $95 million , $94 million , $95 million , $98 million and $224 million for the three months ended December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 and December 31, 2017 , respectively, and $382 million and $905 million for the full year 2018 and 2017, respectively .
(b)
Included legal expense/(benefit) of $(16) million , $(175) million , $(8) million , $(42) million and $(233) million for the three months ended December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 , and December 31, 2017 , respectively, and $(241) million and $(593) million for the full year 2018 and 2017, respectively .
(c)
Average core loans were $1.6 billion , $1.6 billion , $1.7 billion , $1.6 billion and $1.7 billion for the three months ended December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 , and December 31, 2017 , respectively, and $1.7 billion and $1.6 billion for the full year 2018 and 2017, respectively .
(d)
Effective in the first quarter of 2018, certain compliance staff were transferred from Corporate to CB. The prior period amounts have been revised to conform with the current period presentation. For further discussion of this transfer, refer to page 18, footnote (c).
(e)
In accordance with the hedge accounting guidance adopted, the Firm elected to transfer certain securities from HTM to AFS during the first quarter of 2018. Refer to note on page 29 for additional information.
(f)
The three months and full year ended December 31, 2017 included a $2.7 billion increase to income tax expense reflecting the estimated impact of the enactment of the TCJA.
(g)
Included revenue related to a legal settlement of $645 million for the full year 2017.


Page 23



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CREDIT-RELATED INFORMATION
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Dec 31,
 
 
2018
 
2018
 
2018
 
2018
 
2017
 
2018
 
2017
 
CREDIT EXPOSURE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card loans (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained, excluding PCI loans
$
349,603

 
$
350,749

 
$
347,610

 
$
343,738

 
$
341,977

 
 %
 
2
 %
 
Loans - PCI
24,034

 
25,209

 
26,977

 
29,505

 
30,576

 
(5
)
 
(21
)
 
Total loans retained
373,637

 
375,958

 
374,587

 
373,243

 
372,553

 
(1
)
 

 
Loans held-for-sale
95

 
104

 
110

 
152

 
128

 
(9
)
 
(26
)
 
Total consumer, excluding credit card loans
373,732

 
376,062

 
374,697

 
373,395

 
372,681

 
(1
)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit card loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained
156,616

 
147,856

 
145,221

 
140,348

 
149,387

 
6

 
5

 
Loans held-for-sale
16

 
25

 
34

 
66

 
124

 
(36
)
 
(87
)
 
Total credit card loans
156,632

 
147,881

 
145,255

 
140,414

 
149,511

 
6

 
5

 
Total consumer loans
530,364

 
523,943

 
519,952

 
513,809

 
522,192

 
1

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wholesale loans (b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained
439,162

 
423,837

 
420,632

 
412,020

 
402,898

 
4

 
9

 
Loans held-for-sale and loans at fair value
15,028

 
6,538

 
7,830

 
8,595

 
5,607

 
130

 
168

 
Total wholesale loans
454,190

 
430,375

 
428,462

 
420,615

 
408,505

 
6

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans
984,554

 
954,318

 
948,414

 
934,424

 
930,697

 
3

 
6

 
Derivative receivables
54,213

 
60,062

 
58,510

 
56,914

 
56,523

 
(10
)
 
(4
)
 
Receivables from customers and other (c)
30,217

 
26,137

 
27,607

 
27,996

 
26,272

 
16

 
15

 
Total credit-related assets
1,068,984

 
1,040,517

 
1,034,531

 
1,019,334

 
1,013,492

 
3

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lending-related commitments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card
46,066

 
50,630

 
51,784

 
49,516

 
48,553

(f)
(9
)
 
(5
)
 
Credit card
605,379

 
600,728

 
592,452

 
588,232

 
572,831

 
1

 
6

 
Wholesale
387,813

 
397,316

(f)

401,757

 
384,275

 
370,098

 
(2
)
 
5

 
Total lending-related commitments
1,039,258

 
1,048,674

 
1,045,993

 
1,022,023

 
991,482

 
(1
)
 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total credit exposure
$
2,108,242

 
$
2,089,191

 
$
2,080,524

 
$
2,041,357

 
$
2,004,974

 
1

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Memo: Total by category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer exposure (d)
$
1,181,963

 
$
1,175,456

 
$
1,164,341

 
$
1,151,698

 
$
1,143,709

 
1

 
3

 
Wholesale exposures (e)
926,279

 
913,735

 
916,183

 
889,659

 
861,265

 
1

 
8

 
Total credit exposure
$
2,108,242

 
$
2,089,191

 
$
2,080,524

 
$
2,041,357

 
$
2,004,974

 
1

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: The Firm provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, refer to pages 28–29 .

(a)
Includes loans reported in CCB, prime mortgage and home equity loans reported in AWM, and prime mortgage loans reported in Corporate.
(b)
Includes loans reported in CIB, CB and AWM business segments and Corporate.
(c)
Predominantly includes receivables from customers, which represent held-for-investment margin loans to prime and retail brokerage customers; these are classified in accrued interest and accounts receivable on the Consolidated balance sheets.
(d)
Represents total consumer loans, lending-related commitments, and receivables from customers and other.
(e)
Represents total wholesale loans, lending-related commitments, derivative receivables, and receivables from customers and other.
(f)
The prior period amounts have been revised to conform with the current period presentation.

Page 24



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CREDIT-RELATED INFORMATION, CONTINUED
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Dec 31,
 
 
2018
 
2018
 
2018
 
2018
 
2017
 
2018
 
2017
 
NONPERFORMING ASSETS (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer nonaccrual loans (b)(c)
$
3,461

 
$
3,636

 
$
3,979

 
$
4,260

 
$
4,209

 
(5
)
 
(18
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wholesale nonaccrual loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained
1,150

 
994

 
1,156

 
1,594

 
1,734

 
16

 
(34
)
 
Loans held-for-sale and loans at fair value
220

 
14

 
175

 
29

 

 
NM

 
NM

 
Total wholesale nonaccrual loans
1,370

 
1,008

 
1,331

 
1,623

 
1,734

 
36

 
(21
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total nonaccrual loans
4,831

 
4,644

 
5,310

 
5,883

 
5,943

 
4

 
(19
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative receivables
60

 
90

 
112

 
132

 
130

 
(33
)
 
(54
)
 
Assets acquired in loan satisfactions
299

 
300

 
345

 
349

 
353

 

 
(15
)
 
Total nonperforming assets
5,190

 
5,034

 
5,767

 
6,364

 
6,426

 
3

 
(19
)
 
Wholesale lending-related commitments (d)
469

 
252

 
712

 
746

 
731

 
86

 
(36
)
 
Total nonperforming exposure
$
5,659

 
$
5,286

 
$
6,479

 
$
7,110

 
$
7,157

 
7

 
(21
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONACCRUAL LOAN-RELATED RATIOS
 
 
 
 
 
 
 
 
 
 
 
Total nonaccrual loans to total loans
0.49
%
 
0.49
%
 
0.56
%
 
0.63
%
 
0.64
%
 
 
 
 
 
Total consumer, excluding credit card nonaccrual loans to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
total consumer, excluding credit card loans
0.93

 
0.97

 
1.06

 
1.14

 
1.13

 
 
 
 
 
Total wholesale nonaccrual loans to total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wholesale loans
0.30

 
0.23

 
0.31

 
0.39

 
0.42

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
At December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 , and December 31, 2017 , nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $2.6 billion , $2.9 billion , $3.3 billion , $4.0 billion and $4.3 billion , respectively, that are 90 or more days past due; and (2) real estate owned (“REO”) insured by U.S. government agencies of $75 million , $78 million , $84 million , $94 million and $95 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”). Under this guidance, non-modified credit card loans are charged off by the end of the month in which the account becomes 180 days past due, while modified credit card loans are charged off when the account becomes 120 days past due. Moreover, all credit card loans must be charged off within 60 days of receiving notification about certain specified events (e.g., bankruptcy of the borrower).
(b)
Included nonaccrual loans held-for-sale of $0 million , $0 million , $0 million , $34 million and $0 million at December 31, 2018 , September 30, 2018 , June 30, 2018 , March 31, 2018 and December 31, 2017 , respectively.
(c)
Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.
(d)
Represents commitments that are risk rated as nonaccrual.

Page 25



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CREDIT-RELATED INFORMATION, CONTINUED
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
SUMMARY OF CHANGES IN THE ALLOWANCES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
13,128

 
$
13,250

 
$
13,375

 
$
13,604

 
$
13,539

 
(1
)%
 
(3
)%
 
 
$
13,604

 
$
13,776

 
(1
)%
 
Net charge-offs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross charge-offs
1,532

 
1,459

 
1,718

 
1,640

 
1,535

 
5

 

 
 
6,349

 
6,512

 
(3
)
 
Gross recoveries
(296
)
 
(426
)
 
(466
)
 
(305
)
 
(271
)
 
31

 
(9
)
 
 
(1,493
)
 
(1,125
)
 
(33
)
 
Net charge-offs
1,236

 
1,033

 
1,252

 
1,335

 
1,264

 
20

 
(2
)
 
 
4,856

 
5,387

 
(10
)
 
Write-offs of PCI loans (a)
36

 
58

 
73

 
20

 
20

 
(38
)
 
80

 
 
187

 
86

 
117

 
Provision for loan losses
1,591

 
968

 
1,199

 
1,127

 
1,349

 
64

 
18

 
 
4,885

 
5,300

 
(8
)
 
Other
(2
)
 
1

 
1

 
(1
)
 

 
NM

 
NM

 
 
(1
)
 
1

 
NM

 
Ending balance
$
13,445

 
$
13,128

 
$
13,250

 
$
13,375

 
$
13,604

 
2

 
(1
)
 
 
$
13,445

 
$
13,604

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LENDING-RELATED COMMITMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
1,097

 
$
1,117

 
$
1,107

 
$
1,068

 
$
1,109

 
(2
)
 
(1
)
 
 
$
1,068

 
$
1,078

 
(1
)
 
Provision for lending-related commitments
(43
)
 
(20
)
 
11

 
38

 
(41
)
 
(115
)
 
(5
)
 
 
(14
)
 
(10
)
 
(40
)
 
Other
1

 

 
(1
)
 
1

 

 
NM

 
NM

 
 
1

 

 
NM

 
Ending balance
$
1,055

 
$
1,097

 
$
1,117

 
$
1,107

 
$
1,068

 
(4
)
 
(1
)
 
 
$
1,055

 
$
1,068

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total allowance for credit losses
$
14,500

 
$
14,225

 
$
14,367

 
$
14,482

 
$
14,672

 
2

 
(1
)
 
 
$
14,500

 
$
14,672

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET CHARGE-OFF/(RECOVERY) RATES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer retained, excluding credit card loans (b)
0.09
%
 
0.01
 %
 
(0.06
)%
 
0.16
%
 
0.15
%
 
 
 
 
 
 
0.05
%
 
0.31
%
(c)
 
 
Credit card retained loans
2.93

 
2.91

 
3.27

 
3.32

 
2.97

 
 
 
 
 
 
3.10

 
2.95

 
 
 
Total consumer retained loans
0.91

 
0.82

 
0.86

 
1.04

 
0.94

 
 
 
 
 
 
0.90

 
1.04

(c)
 
 
Wholesale retained loans
0.03

 
(0.04
)
 
0.14

 
0.02

 
0.05

 
 
 
 
 
 
0.04

 
0.03

 
 
 
Total retained loans
0.52

 
0.43

 
0.54

 
0.59

 
0.55

 
 
 
 
 
 
0.52

 
0.60

(c)
 
 
Consumer retained loans, excluding credit card and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PCI loans
0.10

 
0.01

 
(0.07
)
 
0.17

 
0.17

 
 
 
 
 
 
0.05

 
0.34

(c)
 
 
Consumer retained loans, excluding PCI loans
0.95

 
0.86

 
0.91

 
1.10

 
1.00

 
 
 
 
 
 
0.95

 
1.11

(c)
 
 
Total retained, excluding PCI loans
0.53

 
0.45

 
0.56

 
0.61

 
0.57

 
 
 
 
 
 
0.53

 
0.62

(c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Memo: Average retained loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer retained, excluding credit card loans
$
374,686

 
$
375,742

 
$
374,377

 
$
372,739

 
$
371,068

 

 
1

 
 
$
374,395

 
$
366,798

 
2

 
Credit card retained loans
150,574

 
146,244

 
142,685

 
142,830

 
143,388

 
3

 
5

 
 
145,606

 
139,918

 
4

 
Total average retained consumer loans
525,260

 
521,986

 
517,062

 
515,569

 
514,456

 
1

 
2

 
 
520,001

 
506,716

 
3

 
Wholesale retained loans
426,594

 
420,597

 
414,980

 
404,859

 
398,795

 
1

 
7

 
 
416,828

 
392,263

 
6

 
Total average retained loans
$
951,854

 
$
942,583

 
$
932,042

 
$
920,428

 
$
913,251

 
1

 
4

 
 
$
936,829

 
$
898,979

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer retained, excluding credit card and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PCI loans
$
350,053

 
$
349,367

 
$
345,601

 
$
342,690

 
$
339,860

 

 
3

 
 
$
346,955

 
$
333,709

 
4

 
Consumer retained, excluding PCI loans
500,627

 
495,611

 
488,286

 
485,520

 
483,248

 
1

 
4

 
 
492,561

 
473,627

 
4

 
Total retained, excluding PCI loans
927,218

 
916,205

 
903,263

 
890,376

 
882,040

 
1

 
5

 
 
909,386

 
865,887

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan is recognized when the underlying loan is removed from a pool (e.g., upon liquidation).
(b)
The net charge-off rates exclude the write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans.
(c)
During the first quarter of 2017, the Firm transferred the student loan portfolio to held-for-sale, resulting in a write-down of the portfolio to the estimated fair value at the time of the transfer. For the year ended December 31, 2017, excluding net charge-offs of $467 million related to the transfer, the net charge-off rate for Consumer retained, excluding credit card loans, would have been 0.18%; Total consumer retained loans would have been 0.95%; Total retained loans would have been 0.55%; Consumer retained, excluding credit card loans and PCI loans would have been 0.20%; Total consumer retained loans excluding PCI loans would have been 1.01%; and Total retained, excluding PCI loans would have been 0.57%.

Page 26



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
CREDIT-RELATED INFORMATION, CONTINUED
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Dec 31,
 
 
2018
 
2018
 
2018
 
2018
 
2017
 
2018
 
2017
 
ALLOWANCE COMPONENTS AND RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-specific (a)
$
196

 
$
204

 
$
226

 
$
266

 
$
246

 
(4
)%
 
(20
)%
 
Formula-based
2,162

 
2,154

 
2,130

 
2,089

 
2,108

 

 
3

 
PCI
1,788

 
1,824

 
2,132

 
2,205

 
2,225

 
(2
)
 
(20
)
 
Total consumer, excluding credit card
4,146

 
4,182

 
4,488

 
4,560

 
4,579

 
(1
)
 
(9
)
 
Credit card
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-specific (b)
440

 
421

 
402

 
393

 
383

 
5

 
15

 
Formula-based
4,744

 
4,613

 
4,482

 
4,491

 
4,501

 
3

 
5

 
Total credit card
5,184

 
5,034

 
4,884

 
4,884

 
4,884

 
3

 
6

 
Total consumer
9,330

 
9,216

 
9,372

 
9,444

 
9,463

 
1

 
(1
)
 
Wholesale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-specific (a)
297

 
280

 
318

 
474

 
461

 
6

 
(36
)
 
Formula-based
3,818

 
3,632

 
3,560

 
3,457

 
3,680

 
5

 
4

 
Total wholesale
4,115

 
3,912

 
3,878

 
3,931

 
4,141

 
5

 
(1
)
 
Total allowance for loan losses
13,445

 
13,128

 
13,250

 
13,375

 
13,604

 
2

 
(1
)
 
Allowance for lending-related commitments
1,055

 
1,097

 
1,117

 
1,107

 
1,068

 
(4
)
 
(1
)
 
Total allowance for credit losses
$
14,500

 
$
14,225

 
$
14,367

 
$
14,482

 
$
14,672

 
2

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card allowance, to total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
consumer, excluding credit card retained loans
1.11
%

1.11
%

1.20
%

1.22
%

1.23
%

 
 
 
 
Credit card allowance to total credit card retained loans
3.31

 
3.40

 
3.36

 
3.48

 
3.27

 
 
 
 
 
Wholesale allowance to total wholesale retained loans
0.94

 
0.92

 
0.92

 
0.95

 
1.03

 
 
 
 
 
Wholesale allowance to total wholesale retained loans,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
excluding trade finance and conduits (c)
1.01

 
0.99

 
1.00

 
1.04

 
1.12

 
 
 
 
 
Total allowance to total retained loans
1.39

 
1.39

 
1.41

 
1.44

 
1.47

 
 
 
 
 
Consumer, excluding credit card allowance, to consumer,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
excluding credit card retained nonaccrual loans (d)
120

 
115

 
113

 
108

 
109

 
 
 
 
 
Total allowance, excluding credit card allowance, to retained
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 nonaccrual loans, excluding credit card nonaccrual loans (d)
179

 
175

 
163

 
146

 
147

 
 
 
 
 
Wholesale allowance to wholesale retained nonaccrual loans
358

 
394

 
335

 
247

 
239

 
 
 
 
 
Total allowance to total retained nonaccrual loans
292

 
284

 
258

 
230

 
229

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT RATIOS, excluding PCI loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card allowance, to total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
consumer, excluding credit card retained loans
0.67

 
0.67

 
0.68

 
0.69

 
0.69

 
 
 
 
 
Total allowance to total retained loans
1.23

 
1.23

 
1.22

 
1.25

 
1.27

 
 
 
 
 
Consumer, excluding credit card allowance, to consumer,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
excluding credit card retained nonaccrual loans (d)
68

 
65

 
59

 
56

 
56

 
 
 
 
 
Allowance, excluding credit card allowance, to retained non-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
accrual loans, excluding credit card nonaccrual loans (d)
140

 
135

 
121

 
108

 
109

 
 
 
 
 
Total allowance to total retained nonaccrual loans
253

 
244

 
217

 
192

 
191

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a troubled debt restructuring (“TDR”).
(b)
The asset-specific credit card allowance for loan losses relates to loans that have been modified in a TDR; the Firm calculates such allowance based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
(c)
Management uses allowance for loan losses to period-end loans retained, excluding CIB’s trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of the wholesale allowance coverage ratio.
(d)
For information on the Firm’s nonaccrual policy for credit card loans, refer to footnote (a) on page 25.





Page 27



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
NOTES INCLUDING NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES  
 
 
 
 
 
 

Non-GAAP Financial Measures

(a)
In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis ; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. The Firm’s definition of managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm and each of the reportable business segments on a FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. These financial measures allow management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business.

(b)
TCE, ROTCE, and TBVPS are each non-GAAP financial measures. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. TCE, ROTCE, and TBVPS are meaningful to the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.

(c)
The ratios of the allowance for loan losses to period-end loans retained, the allowance for loan losses to nonaccrual loans retained , and nonaccrual loans to total period-end loans excluding credit card and PCI loans , exclude the following: loans accounted for at fair value and loans held-for-sale; PCI loans; and the allowance for loan losses related to PCI loans. Additionally, net charge-offs and net charge-off rates exclude the impact of PCI loans. The ratio of the wholesale and CIB’s allowance for loan losses to period-end loans retained, excluding trade finance and conduits , is calculated excluding loans accounted for at fair value, loans held-for-sale, CIB’s trade finance loans and consolidated Firm-administered multi-seller conduits, as well as their related allowances, to provide a more meaningful assessment of the respective allowance coverage ratio.

(d) In addition to reviewing net interest income and the net interest yield on a managed basis, management also reviews these metrics excluding CIB’s Markets businesses to assess the performance of the Firm’s lending, investing (including asset-liability management) and deposit-raising activities. The resulting metrics are referred to as non-markets related net interest income and net yield. CIB’s Markets businesses are Fixed Income Markets and Equity Markets. Management believes that disclosure of non-markets related net interest income and net yield provide investors and analysts with other measures by which to analyze the non-markets-related business trends of the Firm and provides a comparable measure to other financial institutions that are primarily focused on lending, investing and deposit-raising activities.
 
QUARTERLY TRENDS
 
 
FULL YEAR
 
 
 
 
 
 
 
 
 
 
 
 
4Q18 Change
 
 
 
 
 
 
2018 Change
 
 
4Q18
 
3Q18
 
2Q18
 
1Q18
 
4Q17
 
3Q18
 
4Q17
 
 
2018
 
2017
 
2017
 
NET INTEREST INCOME EXCLUDING CIB’s MARKETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income - managed basis (a)(b)
$
14,509

 
$
14,062

 
$
13,646

 
$
13,470

 
$
13,353

 
3
 %
 
9
 %
 
 
$
55,687

 
$
51,410

 
8
 %
 
Less: CIB Markets net interest income
599

 
704

 
754

 
1,030

 
1,121

 
(15
)
 
(47
)
 
 
3,087

 
4,630

 
(33
)
 
Net interest income excluding CIB Markets (a)
$
13,910

 
$
13,358

 
$
12,892

 
$
12,440

 
$
12,232

 
4

 
14

 
 
$
52,600

 
$
46,780

 
12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average interest-earning assets
$
2,270,170

 
$
2,220,258

 
$
2,222,277

 
$
2,203,413

 
$
2,189,707

 
2
 %
 
4
 %
 
 
$
2,229,188

 
2,180,592

 
2
 %
 
Less: Average CIB Markets interest-earning assets
621,451

 
613,737

 
611,432

 
591,547

 
558,021

 
1

 
11

 
 
609,635

 
$
540,835

 
13

 
Average interest-earning assets excluding CIB Markets
$
1,648,719

 
$
1,606,521

 
$
1,610,845

 
$
1,611,866

 
$
1,631,686

 
3

 
1

 
 
$
1,619,553

 
$
1,639,757

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest yield on average interest-earning assets - managed basis
2.54
%
 
2.51
%
 
2.46
%
 
2.48
%
 
2.42
%
 
 
 
 
 
 
2.50
%
 
2.36
%
 
 
 
Net interest yield on average CIB Markets interest-earning assets
0.38
%
 
0.46
%
 
0.49
%
 
0.71
%
 
0.80
%
 
 
 
 
 
 
0.51
%
 
0.86
%
 
 
 
Net interest yield on average interest-earning assets excluding CIB Markets
3.35
%
 
3.30
%
 
3.21
%
 
3.13
%
 
2.97
%
 
 
 
 
 
 
3.25
%
 
2.85
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a) Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
(b) For a reconciliation of net interest income on a reported and managed basis, refer to reconciliation from reported U.S. GAAP results to managed basis on page 7 .




Page 28



JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA05.GIF
NOTES INCLUDING NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES  
 
 
 
 
 
 

Key Performance Measures

(a)
Core loans represent loans considered central to the Firm’s ongoing businesses; core loans exclude loans classified as trading assets, runoff portfolios, discontinued portfolios and portfolios the Firm has an intent to exit.

Financial Accounting Standards Board (“FASB”) Standards Adopted January 1, 2018
(a)
Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and prior period amounts were revised accordingly; the most significant of which was revenue recognition. The revenue recognition guidance requires gross presentation of certain costs that were previously offset against revenue. This change was applied retrospectively and resulted in both noninterest revenue and noninterest expense increasing by $304 million for the three months ended December 31, 2017, and $1,081 million for the full year ended December 31, 2017, with no impact to net income. For additional information, including the impacts of each of the new accounting standards, refer to pages 29-30 of the Firm’s Earnings Release Financial Supplement for the quarterly period ended March 31, 2018.




Page 29