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): July 16, 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.)
 
 
 
383 Madison Avenue, New York, New York
 
10179
(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))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock
JPM
The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 5.45% Non-Cumulative Preferred Stock, Series P
JPM PR A
The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.30% Non-Cumulative Preferred Stock, Series W
JPM PR E
The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.125% Non-Cumulative Preferred Stock, Series Y
JPM PR F
The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.10% Non-Cumulative Preferred Stock, Series AA
JPM PR G
The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.15% Non-Cumulative Preferred Stock, Series BB
JPM PR H
The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 5.75% Non-Cumulative Preferred Stock, Series DD
JPM PR D
The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-Cumulative Preferred Stock, Series EE
JPM PR C
The New York Stock Exchange
Alerian MLP Index ETNs due May 24, 2024
AMJ
NYSE Arca, Inc.
Guarantee of Callable Step-Up Fixed Rate Notes due April 26, 2028 of JPMorgan Chase Financial Company LLC
JPM/28
The New York Stock Exchange
Guarantee of Cushing 30 MLP Index ETNs due June 15, 2037 of JPMorgan Chase Financial Company LLC
PPLN
NYSE Arca, Inc.
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 July 16, 2019 , JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) reported 2019 second quarter net income of $9.7 billion , or $2.82 per share, compared with net income of $8.3 billion , or $2.29 per share, in the second quarter of 2018. A copy of the 2019 second 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, 2018 , and Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, 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 Firmwide Controller
 
(Principal Accounting Officer)


Dated:
July 16, 2019




3
JPMorgan Chase & Co.
383 Madison Avenue, New York, NY 10179-0001
NYSE symbol: JPM
www.jpmorganchase.com

JPMCLOGOA10.GIF

JPMORGAN CHASE REPORTS RECORD NET INCOME OF
$9.7 BILLION, OR $2.82 PER SHARE, FOR THE SECOND QUARTER OF 2019
 
SECOND QUARTER 2019 RESULTS 1  
ROE 16%
ROTCE 2 20%
 
Common equity Tier 1 3
12.2%
 
Net payout LTM 4,5
92%
Firmwide Metrics
n
Reported revenue of $28.8 billion; managed revenue of $29.6 billion 2
n
Average total loans   up 2% YoY and down 1% QoQ
 
 
 
CCB

ROE 31%
n
Average loans down 2%; Home Lending loans down 7% impacted by loan sales; credit card loans up 8%
n
Client investment assets up 16%; average deposits up 3%
n
Credit card sales volume 6  up 11%; merchant processing volume up 12%
 
 
 
CIB

ROE 14%
n
Maintained #1 ranking for Global Investment Banking fees with 9.2% wallet share YTD
n
Total Markets revenue of $5.4 billion was flat, or down 6% adjusted 7
 
 
 
 
CB

ROE 17%
n
Gross Investment Banking revenue of $592 million
n
Strong credit performance with net charge-offs of
3 bps
 
 
 
AWM

ROE 27%
n
Average loan balances up 7%
n
Assets under management (AUM) of $2.2 trillion, up 7%
 
Jamie Dimon, Chairman and CEO, commented on the financial results:  “We had a strong second quarter and first half of 2019, benefitting from our diversified global business model. We continue to see positive momentum with the U.S. consumer – healthy confidence levels, solid job creation and rising wages – which are reflected in our Consumer & Community Banking results. Double-digit growth in credit card sales and merchant processing volumes reflected healthy consumer spending and drove 8% growth in credit card loans, while mortgage and auto originations showed solid improvement, and we continued to attract new deposits, up 3%. Client investment assets were up 16%, driven by both physical and digital channels, including You Invest.”
 
Dimon added:  “In the Corporate & Investment Bank, Markets performance was relatively steady on slightly lower client volume, probably due to slightly higher global macroeconomic and geopolitical uncertainties. Treasury Services and Securities Services demonstrated good organic growth despite headwinds from rates. Although the global wallet was down, year-to-date the Firm ranked #1 in Global IB fees and gained share across products and regions, with particular strength from Commercial Banking, where gross IB revenue was up 8% for the first half of the year. And in Asset & Wealth Management, AUM and client assets grew 7%, both due to higher asset values and net inflows into long-term and liquidity products.”
 
Dimon concluded:  “We were pleased to announce a meaningful increase to our dividend and repurchases. While we always prefer to invest capital back into the business, our capital plan provides us with the capacity and flexibility to return excess capital to our shareholders. We have opened new branches, announced strategic acquisitions like InstaMed, and invested in digital products to deepen our engagement with our customers, who have now opened over 2 million accounts digitally and activated over 60 million Chase Offers. We also continued our investments in local communities – for example, we expanded our long-term commitment to Detroit from $150 million to $200 million as we continue to learn how to drive inclusive growth in the communities around the world that need the most support.”



 
SIGNIFICANT ITEMS
n
2Q19 results include $768 million of firmwide income tax benefits ($0.23 increase in earnings per share)
FORTRESS PRINCIPLES
n
Book value per share of $73.77, up 7%; tangible book value per share 2 of $59.42, up 8%
n
Basel III common equity Tier 1 capital 3 of $189 billion and ratio 3 of 12.2%
n
Firm supplementary leverage ratio of 6.4%
OPERATING LEVERAGE
n
2Q19 reported expense of $16.3 billion; reported overhead ratio of 57%; managed overhead ratio 2 of 55%
CAPITAL DISTRIBUTED
n
$7.5 billion 5 distributed to shareholders in 2Q19
n $5.0 billion of net repurchases and common dividend of $0.80 per share

 
SUPPORTED CONSUMERS, BUSINESSES & COMMUNITIES
n
$1.1 trillion of credit and capital 8 raised YTD
n
$119 billion of credit for consumers
n
$14 billion of credit for U.S. small businesses
n
$435 billion of credit for corporations
n
$547 billion of capital raised for corporate clients and non-U.S. government entities
n
$34 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 Percentage comparisons noted in the bullet points are for the second quarter of 2019 versus the prior-year second quarter, unless otherwise specified.
2 For notes on non-GAAP financial measures, including managed basis reporting, 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 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 second quarter of 2019 versus the prior-year second quarter, unless otherwise specified.
JPMORGAN CHASE (JPM)
Net revenue on a reported basis was $28.8 billion, $29.1 billion, and $27.8 billion for the second quarter of 2019, first quarter of 2019, and second quarter of 2018, respectively.
Results for JPM
 
 
 
 
 
 
1Q19
 
2Q18
($ millions, except per share data)
2Q19
 
1Q19
 
2Q18
 
$ O/(U)
O/(U) %
 
$ O/(U)
O/(U) %
Net revenue - managed
$
29,566

 
$
29,851

 
$
28,388

 
$
(285
)
(1
)%
 
$
1,178

4
 %
Noninterest expense
16,341

 
16,395

 
15,971

 
(54
)
—

 
370

2

Provision for credit losses
1,149

 
1,495

 
1,210

 
(346
)
(23
)
 
(61
)
(5
)
Net income
$
9,652

 
$
9,179

 
$
8,316

 
$
473

5
 %
 
$
1,336

16
 %
Earnings per share
$
2.82

 
$
2.65

 
$
2.29

 
$
0.17

6
 %
 
$
0.53

23
 %
Return on common equity
16
%
 
16
%
 
14
%
 
 
 
 
 
 
Return on tangible common equity
20

 
19

 
17

 
 
 
 
 
 
Discussion of Results:
Net income was a record $9.7 billion, up 16%, which included income tax benefits of $768 million related to the resolution of certain tax audits.
Net revenue was $29.6 billion, up 4%. Net interest income was $14.5 billion, up 7%, driven by balance sheet growth and mix, as well as the impact of higher rates. Noninterest revenue was $15.0 billion, up approximately $300 million, or 2%, driven by several notable items. Excluding these items, noninterest revenue was relatively flat, with strength in Consumer and Community Banking, offset by lower investment banking fees in the Corporate & Investment Bank and Commercial Banking, as well as lower Markets noninterest revenue.
Noninterest expense was $16.3 billion, up 2%, driven by continued investments in the business and higher auto lease depreciation, partially offset by lower FDIC charges.
The provision for firmwide credit losses was $1.1 billion, down 5% as the consumer provision of $1.1 billion was relatively flat to prior year and the wholesale provision of $27 million decreased by $75 million.
 

2
JPMorgan Chase & Co.
News Release

CONSUMER & COMMUNITY BANKING (CCB)
Results for CCB
 
 
 
 
 
 
1Q19
 
2Q18
($ millions)
2Q19
 
1Q19
 
2Q18
 
$ O/(U)
O/(U) %
 
$ O/(U)
O/(U) %
Net revenue
$
13,833

 
$
13,751

 
$
12,497

 
$
82

1
 %
 
$
1,336

11
 %
Consumer & Business Banking
6,797

 
6,568

 
6,131

 
229

3

 
666

11

Home Lending
1,118

 
1,346

 
1,347

 
(228
)
(17
)
 
(229
)
(17
)
Card, Merchant Services & Auto
5,918

 
5,837

 
5,019

 
81

1

 
899

18

Noninterest expense
7,162

 
7,211

 
6,879

 
(49
)
(1
)
 
283

4

Provision for credit losses
1,120

 
1,314

 
1,108

 
(194
)
(15
)
 
12

1

Net income
$
4,174

 
$
3,963

 
$
3,412

 
$
211

5
 %
 
$
762

22
 %
Discussion of Results:
Net income was $4.2 billion, an increase of 22%. Net revenue was $13.8 billion, an increase of 11%.
Consumer & Business Banking net revenue was $6.8 billion, up 11%, predominantly driven by higher net interest income as a result of higher deposit margins and balance growth. Home Lending net revenue was $1.1 billion, down 17%, driven by mortgage servicing rights (MSR) adjustments, reflecting updates to model inputs. Excluding this adjustment, revenue would have been up 4%, driven by higher net production revenue, largely offset by lower net interest income due to the impact of spread compression and lower balances. Card, Merchant Services & Auto net revenue was $5.9 billion, up 18%, including the impact of a rewards liability adjustment of approximately $330 million in the prior year. Excluding this adjustment, revenue would have been up 11%, driven by higher Card net interest income on loan growth and margin expansion, and higher auto lease volumes.
Noninterest expense was $7.2 billion, up 4%, largely driven by technology, marketing and other investments in the business, as well as higher auto lease depreciation, partially offset by expense efficiencies and lower FDIC charges.
The provision for credit losses was $1.1 billion, relatively flat compared with the prior year, as higher net charge-offs were offset by a net reserve release. The increase in net charge-offs was driven by Home Lending, which included a recovery from a loan sale in the prior year, as well as by higher net charge-offs in Card on loan growth. The current quarter included a reserve release of $400 million in the Home Lending purchased credit-impaired portfolio, reflecting continued improvement in home prices and delinquencies, partially offset by a reserve build of $200 million in Card driven by loan growth and mix.

3
JPMorgan Chase & Co.
News Release

CORPORATE & INVESTMENT BANK (CIB)
Results for CIB
 
 
 
 
 
 
1Q19
 
2Q18
($ millions)
2Q19
 
1Q19
 
2Q18
 
$ O/(U)
O/(U) %
 
$ O/(U)
O/(U) %
Net revenue
$
9,641

 
$
9,848

 
$
9,923

 
$
(207
)
(2
)%
 
$
(282
)
(3
)%
Banking
3,248

 
3,232

 
3,451

 
16

—

 
(203
)
(6
)
Markets & Securities Services 9
6,393

 
6,616

 
6,472

 
(223
)
(3
)
 
(79
)
(1
)
Noninterest expense
5,487

 
5,453

 
5,403

 
34

1

 
84

2

Provision for credit losses
—

 
87

 
58

 
(87
)
NM

 
(58
)
NM

Net income
$
2,935

 
$
3,251

 
$
3,198

 
$
(316
)
(10
)%
 
$
(263
)
(8
)%
Discussion of Results:
Net income was $2.9 billion, a decrease of 8%. Net revenue was $9.6 billion, a decrease of 3%.
Banking revenue was $3.2 billion, down 6%. Investment Banking revenue was $1.8 billion, down 9%, reflecting lower fees across products. Treasury Services revenue was $1.1 billion, down 4%, predominantly driven by deposit margin compression, largely offset by growth in balances and fees. Lending revenue was $337 million, up 5%, predominantly driven by higher net interest income reflecting growth in loan balances.
Markets & Securities Services 9 revenue was $6.4 billion, down 1%. Markets revenue of $5.4 billion was flat to the prior year, and included a gain from the initial public offering (IPO) of a strategic investment in Tradeweb. Excluding this gain, total Markets revenue was down 6%, and Fixed Income Markets revenue was down 3%. Fixed Income Markets revenue reflected relative weakness in EMEA across products, largely offset by increased client activity in North America Rates and agency mortgage trading due to the changing rate environment. Equity Markets revenue was $1.7 billion, down 12%, predominantly driven by lower client activity in derivatives as well as a strong prior year comparison. Securities Services revenue was $1.0 billion, down 5%, driven by deposit margin compression and the impact of a business exit, partially offset by increased client activity.
Noninterest expense was $5.5 billion, up 2% reflecting higher legal expense, largely offset by lower performance-based compensation.
The provision for credit losses was zero, compared with $58 million in the prior year.
COMMERCIAL BANKING (CB)
Results for CB
 
 
 
 
 
 
1Q19
 
2Q18
($ millions)
2Q19
 
1Q19
 
2Q18
 
$ O/(U)
O/(U) %
 
$ O/(U)
O/(U) %
Net revenue
$
2,211

 
$
2,338

 
$
2,316

 
$
(127
)
(5
)%
 
$
(105
)
(5
)%
Noninterest expense
864

 
873

 
844

 
(9
)
(1
)
 
20

2

Provision for credit losses
29

 
90

 
43

 
(61
)
(68
)
 
(14
)
(33
)
Net income
$
996

 
$
1,053

 
$
1,087

 
$
(57
)
(5
)%
 
$
(91
)
(8
)%
Discussion of Results:
Net income was $1.0 billion, a decrease of 8%.
Net revenue was $2.2 billion, down 5%, predominantly driven by lower investment banking revenue, compared to a strong prior year, and lower net interest income on lower deposit balances.
Noninterest expense was $864 million, up 2%, driven by investments in banker coverage and technology.
The provision for credit losses was $29 million, compared with $43 million in the prior year.

4
JPMorgan Chase & Co.
News Release

ASSET & WEALTH MANAGEMENT (AWM)
Results for AWM
 
 
 
 
 
 
1Q19
 
2Q18
($ millions)
2Q19
 
1Q19
 
2Q18
 
$ O/(U)
O/(U) %
 
$ O/(U)
O/(U) %
Net revenue
$
3,559

 
$
3,489

 
$
3,572

 
$
70

2
 %
 
$
(13
)
—
 %
Noninterest expense
2,596

 
2,647

 
2,566

 
(51
)
(2
)
 
30

1

Provision for credit losses
2

 
2

 
2

 
—

—

 
—

—

Net income
$
719

 
$
661

 
$
755

 
$
58

9
 %
 
$
(36
)
(5
)%
Discussion of Results:     
Net income was $719 million, a decrease of 5%.
Net revenue of $3.6 billion was relatively flat, as the impact of higher average market levels was offset by lower investment valuation gains.
Noninterest expense was $2.6 billion, an increase of 1%, driven by continued investments in advisors and technology, partially offset by lower distribution fees.
Assets under management were $2.2 trillion, up 7%, driven by inflows into both long-term and liquidity products and the impact of higher market levels.
CORPORATE
Results for Corporate
 
 
 
 
 
 
1Q19
 
2Q18
($ millions)
2Q19
 
1Q19
 
2Q18
 
$ O/(U)
O/(U) %
 
$ O/(U)
O/(U) %
Net revenue
$
322

 
$
425

 
$
80

 
$
(103
)
(24
)%
 
$
242

303
 %
Noninterest expense
232

 
211

 
279

 
21

10

 
(47
)
(17
)
Provision for credit losses
(2
)
 
2

 
(1
)
 
(4
)
NM

 
(1
)
(100
)
Net income/(loss)
$
828

 
$
251

 
$
(136
)
 
$
577

230
 %
 
$
964

NM

Discussion of Results:
Net income was $828 million, compared with a net loss of $136 million in the prior year.
Net revenue of $322 million compared with revenue of $80 million in the prior year. This increase was driven by higher net interest income on higher rates and balance sheet mix. The current quarter also included net valuation losses of approximately $100 million on certain legacy private equity investments.
Noninterest expense of $232 million was down $47 million.
The current quarter included income tax benefits of $742 million related to the resolution of certain tax audits.




5
JPMorgan Chase & Co.
News Release

2. 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 mortgage servicing rights), 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 $ 73.77 , $ 71.78 and $ 68.85 at June 30, 2019 , March 31, 2019 , and June 30, 2018 , respectively. TCE, ROTCE, and TBVPS are meaningful to the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.


6
JPMorgan Chase & Co.
News Release

Additional notes:

3.
Estimated. The Basel III regulatory capital, risk-weighted assets and capital ratios became fully phased-in effective January 1, 2019. The capital adequacy of the Firm is evaluated against the fully phased-in measures under Basel III and represents the lower of the Standardized or Advanced approaches. For additional information on these measures, see Capital Risk Management on pages 85-94 of the Firm’s Annual Report on Form 10-K for the year ended December 31, 2018, and pages 32-36 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019.
4.
Last twelve months (“LTM”).
5.
Net of stock issued to employees.
6.
Excludes Commercial Card.
7.
Adjusted Markets revenue excludes a gain from the IPO of a strategic investment in Tradeweb (an electronic trading platform).
8.
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.
9.
Formerly Markets & Investor Services.



7
JPMorgan Chase & Co.
News Release


JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.7 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, July 16, 2019, at 8:30 a.m. (Eastern) to present second quarter 2019 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 July 16, 2019, through midnight, July 30, 2019, by telephone at (800) 585-8367 (U.S. and Canada) or (404) 537-3406 (international); use Conference ID # 6756869. 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, 2018, and Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019, 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




                            

                            
JPMCLOGOA10.GIF

EARNINGS RELEASE FINANCIAL SUPPLEMENT

SECOND QUARTER 2019


















JPMORGAN CHASE & CO.
 
JPMCLOGOA10.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 (“CCB”)
 
 
 
 
 
 
11–14
 
Corporate & Investment Bank (“CIB”)
 
 
 
 
 
 
15–17
 
Commercial Banking (“CB”)
 
 
 
 
 
 
18–19
 
Asset & Wealth Management (“AWM”)
 
 
 
 
 
 
20–22
 
Corporate
 
 
 
 
 
 
23
 
 
 
 
 
 
 
 
 
 
Credit-Related Information
 
 
 
 
 
 
24–27
 
 
 
 
 
 
 
 
 
 
Non-GAAP Financial Measures and Key Performance Measures
 
 
 
 
 
 
28
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Glossary of Terms and Acronyms (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Refer to the Glossary of Terms and Acronyms on pages 293–299 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Form 10-K”) and the Glossary of Terms and Acronyms and Line of Business Metrics on pages 151-155 and pages 156-158, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019.




JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
CONSOLIDATED FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except per share and ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
SELECTED INCOME STATEMENT DATA
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
Reported Basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
$
28,832

 
$
29,123

 
$
26,109

 
$
27,260

 
$
27,753

 
(1
)%

4
 %

 
$
57,955

 
$
55,660

 
4
 %

Total noninterest expense
16,341

 
16,395

 
15,720

 
15,623

 
15,971

 
—

 
2

 
 
32,736

 
32,051

 
2

 
Pre-provision profit
12,491

 
12,728

 
10,389

 
11,637

 
11,782

 
(2
)
 
6

 
 
25,219

 
23,609

 
7

 
Provision for credit losses
1,149

 
1,495

 
1,548

 
948

 
1,210

 
(23
)
 
(5
)
 
 
2,644

 
2,375

 
11

 
NET INCOME
9,652

 
9,179

 
7,066

 
8,380

 
8,316

 
5

 
16

 
 
18,831

 
17,028

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Managed Basis (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
29,566

 
29,851

 
26,804

 
27,822

 
28,388

 
(1
)
 
4

 
 
59,417

 
56,908

 
4

 
Total noninterest expense
16,341

 
16,395

 
15,720

 
15,623

 
15,971

 
—

 
2

 
 
32,736

 
32,051

 
2

 
Pre-provision profit
13,225

 
13,456

 
11,084

 
12,199

 
12,417

 
(2
)
 
7

 
 
26,681

 
24,857

 
7

 
Provision for credit losses
1,149

 
1,495

 
1,548

 
948

 
1,210

 
(23
)
 
(5
)
 
 
2,644

 
2,375

 
11

 
NET INCOME
9,652

 
9,179

 
7,066

 
8,380

 
8,316

 
5

 
16

 
 
18,831

 
17,028

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income: Basic
$
2.83

 
$
2.65

 
$
1.99

 
$
2.35

 
$
2.31

 
7

 
23

 
 
$
5.48

 
$
4.69

 
17

 
Diluted
2.82

 
2.65

 
1.98

 
2.34

 
2.29

 
6

 
23

 
 
5.46

 
4.66

 
17

 
Average shares: Basic
3,250.6

 
3,298.0

 
3,335.8

 
3,376.1

 
3,415.2

 
(1
)
 
(5
)
 
 
3,274.3

 
3,436.7

 
(5
)
 
Diluted
3,259.7

 
3,308.2

 
3,347.3

 
3,394.3

 
3,434.7

 
(1
)
 
(5
)
 
 
3,283.9

 
3,457.1

 
(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MARKET AND PER COMMON SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Market capitalization
$
357,479

 
$
328,387

 
$
319,780

 
$
375,239

 
$
350,204

 
9

 
2

 
 
$
357,479

 
$
350,204

 
2

 
Common shares at period-end
3,197.5

 
3,244.0

 
3,275.8

 
3,325.4

 
3,360.9

 
(1
)
 
(5
)
 
 
3,197.5

 
3,360.9

 
(5
)
 
Book value per share
73.77

 
71.78

 
70.35

 
69.52

 
68.85

 
3

 
7

 
 
73.77

 
68.85

 
7

 
Tangible book value per share (“TBVPS”) (b)
59.42

 
57.62

 
56.33

 
55.68

 
55.14

 
3

 
8

 
 
59.42

 
55.14

 
8

 
Cash dividends declared per share
0.80

 
0.80

 
0.80

 
0.80

 
0.56

 
—

 
43

 
 
1.60

 
1.12

 
43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on common equity (“ROE”)
16
%

16
%

12
%

14
%
 
14
%
 
 
 
 
 
 
16
%

14
%

 
 
Return on tangible common equity (“ROTCE”) (b)
20

 
19

 
14

 
17

 
17

 
 
 
 
 
 
20

 
18

 
 
 
Return on assets
1.41

 
1.39

 
1.06

 
1.28

 
1.28

 
 
 
 
 
 
1.40

 
1.32

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 (“CET1”) capital ratio (d)
12.2
%
(e)
12.1
%
 
12.0
%
 
12.0
%
 
12.0
%
 
 
 
 
 
 
12.2
%
(e)
12.0
%
 
 
 
Tier 1 capital ratio (d)
13.9

(e)
13.8

 
13.7

 
13.6

 
13.6

 
 
 
 
 
 
13.9

(e)
13.6

 
 
 
Total capital ratio (d)
15.8

(e)
15.7

 
15.5

 
15.4

 
15.5

 
 
 
 
 
 
15.8

(e)
15.5

 
 
 
Tier 1 leverage ratio (d)
8.0

(e)
8.1

 
8.1

 
8.2

 
8.2

 
 
 
 
 
 
8.0

(e)
8.2

 
 
 
Supplementary leverage ratio (“SLR”)
6.4

(e)
6.4

 
6.4

 
6.5

 
6.5

 
 
 
 
 
 
6.4

(e)
6.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 net income applicable to common equity 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 page 28 .
(c)
Quarterly ratios are based upon annualized amounts.
(d)
The Basel III capital rules became fully phased-in effective January 1, 2019. The capital adequacy of the Firm is evaluated against the fully phased-in measures under Basel III and represents the lower of the Standardized or Advanced approaches. During 2018 the required capital measures were subject to the transitional rules and as of December 31, 2018 and September 30, 2018, were the same on a fully phased-in and on a transitional basis. For additional information on these measures, refer to Capital Risk Management on pages 85-94 of the Firm’s 2018 Form 10-K and pages 32-36 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019 .
(e)
Estimated.


Page 2


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
(in millions, except ratio and headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
2,727,379

 
$
2,737,188

 
$
2,622,532

 
$
2,615,183

 
$
2,590,050

 
—
 %
 
5
 %
 
 
$
2,727,379

 
$
2,590,050

 
5
 %
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card loans
352,722

 
363,914

 
373,732

 
376,062

 
374,697

 
(3
)
 
(6
)
 
 
352,722

 
374,697

 
(6
)
 
Credit card loans
157,576

 
150,527

 
156,632

 
147,881

 
145,255

 
5

 
8

 
 
157,576

 
145,255

 
8

 
Wholesale loans
446,591

 
441,804

 
454,190

 
430,375

 
428,462

 
1

 
4

 
 
446,591

 
428,462

 
4

 
Total Loans
956,889

 
956,245

 
984,554

 
954,318

 
948,414

 
—

 
1

 
 
956,889

 
948,414

 
1

 
Core loans (a)
908,971

 
905,943

 
931,856

 
899,006

 
889,433

 
—

 
2

 
 
908,971

 
889,433

 
2

 
Core loans (average) (a)
905,786

 
916,567

 
907,271

 
894,279

 
877,640

 
(1
)
 
3

 
 
911,146

 
869,410

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. offices:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing (b)
394,237

 
388,572

 
386,709

 
388,686

 
398,921

 
1

 
(1
)
 
 
394,237

 
398,921

 
(1
)
 
Interest-bearing (b)
841,397

 
826,723

 
813,881

 
800,905

 
806,274

 
2

 
4

 
 
841,397

 
806,274

 
4

 
Non-U.S. offices:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing (b)
20,419

 
21,090

 
21,459

 
21,438

 
18,562

 
(3
)
 
10

 
 
20,419

 
18,562

 
10

 
Interest-bearing (b)
268,308

 
257,056

 
248,617

 
247,733

 
228,365

 
4

 
17

 
 
268,308

 
228,365

 
17

 
Total deposits
1,524,361

 
1,493,441

 
1,470,666

 
1,458,762

 
1,452,122

 
2

 
5

 
 
1,524,361

 
1,452,122

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
288,869

 
290,893

 
282,031

 
270,124

 
273,114

 
(1
)
 
6

 
 
288,869

 
273,114

 
6

 
Common stockholders’ equity
235,894

 
232,844

 
230,447

 
231,192

 
231,390

 
1

 
2

 
 
235,894

 
231,390

 
2

 
Total stockholders’ equity
262,887

 
259,837

 
256,515

 
258,956

 
257,458

 
1

 
2

 
 
262,887

 
257,458

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans-to-deposits ratio
63
%

64
%

67
%
 
65
%
 
65
%

 
 
 
 
 
63
%

65
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount
254,983

 
255,998

 
256,105

 
255,313

 
252,942

 
—

 
1

 
 
254,983

 
252,942

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
95% CONFIDENCE LEVEL - TOTAL VaR
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average VaR
$
46

 
$
52

 
$
51

 
$
35

 
$
35

 
(12
)
 
31

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LINE OF BUSINESS NET REVENUE (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
13,833

 
$
13,751

 
$
13,695

 
$
13,290

 
$
12,497

 
1

 
11

 
 
$
27,584

 
$
25,094

 
10

 
Corporate & Investment Bank
9,641

 
9,848

 
7,237

 
8,805

 
9,923

 
(2
)
 
(3
)
 
 
19,489

 
20,406

 
(4
)
 
Commercial Banking
2,211

 
2,338

 
2,306

 
2,271

 
2,316

 
(5
)
 
(5
)
 
 
4,549

 
4,482

 
1

 
Asset & Wealth Management
3,559

 
3,489

 
3,439

 
3,559

 
3,572

 
2

 
—

 
 
7,048

 
7,078

 
—

 
Corporate
322

 
425

 
127

 
(103
)
 
80

 
(24
)
 
303

 
 
747

 
(152
)
 
NM

 
TOTAL NET REVENUE
$
29,566

 
$
29,851

 
$
26,804

 
$
27,822

 
$
28,388

 
(1
)
 
4

 
 
$
59,417

 
$
56,908

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LINE OF BUSINESS NET INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
4,174

 
$
3,963

 
$
4,028

 
$
4,086

 
$
3,412

 
5

 
22

 
 
$
8,137

 
$
6,738

 
21

 
Corporate & Investment Bank
2,935

 
3,251

 
1,975

 
2,626

 
3,198

 
(10
)
 
(8
)
 
 
6,186

 
7,172

 
(14
)
 
Commercial Banking
996

 
1,053

 
1,036

 
1,089

 
1,087

 
(5
)
 
(8
)
 
 
2,049

 
2,112

 
(3
)
 
Asset & Wealth Management
719

 
661

 
604

 
724

 
755

 
9

 
(5
)
 
 
1,380

 
1,525

 
(10
)
 
Corporate
828

 
251

 
(577
)
 
(145
)
 
(136
)
 
230

 
NM

 
 
1,079

 
(519
)
 
NM

 
NET INCOME
$
9,652

 
$
9,179

 
$
7,066

 
$
8,380

 
$
8,316

 
5

 
16

 
 
$
18,831

 
$
17,028

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(a)
Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, refer to page 28 .
(b)
In the second quarter of 2019, the Firm reclassified balances related to certain structured notes from interest-bearing to noninterest-bearing deposits as the associated returns are recorded in principal transactions revenue and not in net interest income. This change was applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.
(c)
For a further discussion of managed basis, refer to Reconciliation from Reported to Managed Basis on page 7 .





Page 3


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
CONSOLIDATED STATEMENTS OF INCOME
 
 
 
 
(in millions, except per share and ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
REVENUE
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
Investment banking fees
$
1,851

 
$
1,840

 
$
1,814

 
$
1,832

 
$
2,168

 
1
 %
 
(15
)%
 
 
$
3,691

 
$
3,904

 
(5
)%
 
Principal transactions
3,714

 
4,076

 
1,361

 
2,964

 
3,782

 
(9
)
 
(2
)
 
 
7,790

 
7,734

 
1

 
Lending- and deposit-related fees
1,535

 
1,482

 
1,538

 
1,542

 
1,495

 
4

 
3

 
 
3,017

 
2,972

 
2

 
Asset management, administration and commissions
4,353

 
4,114

 
4,195

 
4,310

 
4,304

 
6

 
1

 
 
8,467

 
8,613

 
(2
)
 
Investment securities gains/(losses)
44

 
13

 
(24
)
 
(46
)
 
(80
)
 
238

 
NM

 
 
57

 
(325
)
 
NM

 
Mortgage fees and related income
279

 
396

 
203

 
262

 
324

 
(30
)
 
(14
)
 
 
675

 
789

 
(14
)
 
Card income
1,366

 
1,274

 
1,366

 
1,328

 
1,020

 
7

 
34

 
 
2,640

 
2,295

 
15

 
Other income
1,292

 
1,475

 
1,302

 
1,160

 
1,255

 
(12
)
 
3

 
 
2,767

 
2,881

 
(4
)
 
Noninterest revenue
14,434

 
14,670

 
11,755

 
13,352

 
14,268

 
(2
)
 
1

 
 
29,104

 
28,863

 
1

 
Interest income (a)
21,603

 
21,389

 
20,601

 
19,439

 
18,566

 
1

 
16

 
 
42,992

 
36,060

 
19

 
Interest expense (a)
7,205

 
6,936

 
6,247

 
5,531

 
5,081

 
4

 
42

 
 
14,141

 
9,263

 
53

 
Net interest income
14,398

 
14,453

 
14,354

 
13,908

 
13,485

 
—

 
7

 
 
28,851

 
26,797

 
8

 
TOTAL NET REVENUE
28,832

 
29,123

 
26,109

 
27,260

 
27,753

 
(1
)
 
4

 
 
57,955

 
55,660

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
1,149

 
1,495

 
1,548

 
948

 
1,210

 
(23
)
 
(5
)
 
 
2,644

 
2,375

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense
8,547

 
8,937

 
7,809

 
8,108

 
8,338

 
(4
)
 
3

 
 
17,484

 
17,200

 
2

 
Occupancy expense
1,060

 
1,068

 
1,069

 
1,014

 
981

 
(1
)
 
8

 
 
2,128

 
1,869

 
14

 
Technology, communications and equipment expense
2,378

 
2,364

 
2,361

 
2,219

 
2,168

 
1

 
10

 
 
4,742

 
4,222

 
12

 
Professional and outside services
2,212

 
2,039

 
2,169

 
2,086

 
2,126

 
8

 
4

 
 
4,251

 
4,247

 
—

 
Marketing
862

 
879

 
894

 
798

 
798

 
(2
)
 
8

 
 
1,741

 
1,598

 
9

 
Other expense (b)
1,282

 
1,108

 
1,418

 
1,398

 
1,560

 
16

 
(18
)
 
 
2,390

 
2,915

 
(18
)
 
TOTAL NONINTEREST EXPENSE
16,341

 
16,395

 
15,720

 
15,623

 
15,971

 
—

 
2

 
 
32,736

 
32,051

 
2

 
Income before income tax expense
11,342

 
11,233

 
8,841

 
10,689

 
10,572

 
1

 
7

 
 
22,575

 
21,234

 
6

 
Income tax expense/(benefit) (c)
1,690

 
2,054

 
1,775

 
2,309

 
2,256

 
(18
)
 
(25
)
 
 
3,744

 
4,206

 
(11
)
 
NET INCOME
$
9,652

 
$
9,179

 
$
7,066

 
$
8,380

 
$
8,316

 
5

 
16

 
 
$
18,831

 
$
17,028

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME PER COMMON SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
$
2.83

 
$
2.65

 
$
1.99

 
$
2.35

 
$
2.31

 
7

 
23

 
 
$
5.48

 
$
4.69

 
17

 
Diluted earnings per share
2.82

 
2.65

 
1.98

 
2.34

 
2.29

 
6

 
23

 
 
5.46

 
4.66

 
17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on common equity (d)
16
%
 
16
%
 
12
%
 
14
%
 
14
%
 
 
 
 
 
 
16
%
 
14
%
 
 
 
Return on tangible common equity (d)(e)
20

 
19

 
14

 
17

 
17

 
 
 
 
 
 
20

 
18

 
 
 
Return on assets (d)
1.41

 
1.39

 
1.06

 
1.28

 
1.28

 
 
 
 
 
 
1.40

 
1.32

 
 
 
Effective income tax rate (c)
14.9

 
18.3

 
20.1

 
21.6

 
21.3

 
 
 
 
 
 
16.6

 
19.8

 
 
 
Overhead ratio
57

 
56

 
60

 
57

 
58

 
 
 
 
 
 
56

 
58

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(a)
In the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income and interest expense, but had no effect on net interest income. These changes were made to align the accounting treatment between the balance sheet and the related interest income or expense, primarily by offsetting interest income and expense for certain prime brokerage-related held-for-investment customer receivables and payables that are currently presented as a single margin account on the balance sheet. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.
(b)
Included Firmwide legal expense/(benefit) of $69 million , $(81) million , $(18) million, $20 million and $0 million for the three months ended June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 , and June 30, 2018 , respectively; and $(12) million and $70 million for the six months ended June 30, 2019 and 2018 , respectively.
(c)
The three and six months ended June 30, 2019 reflected income tax benefits of $768 million and $874 million, respectively, due to the resolution of certain tax audits.
(d)
Quarterly ratios are based upon annualized amounts.
(e)
For further discussion of ROTCE, refer to page 28 .



Page 4


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
CONSOLIDATED BALANCE SHEETS
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Jun 30,
 
 
2019
 
2019
 
2018
 
2018
 
2018
 
2019
 
2018
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
23,164

 
$
21,946

 
$
22,324

 
$
23,225

 
$
23,680

 
6
 %
 
(2
)%
 
Deposits with banks
244,874

 
280,658

 
256,469

 
395,872

 
381,500

 
(13
)
 
(36
)
 
Federal funds sold and securities purchased under
 
 
 
 
 
 
 
 
 
 
 
 
 
 
resale agreements
267,864

 
299,140

 
321,588

 
217,632

 
226,505

 
(10
)
 
18

 
Securities borrowed
130,661

 
123,186

 
111,995

 
122,434

 
108,246

 
6

 
21

 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and equity instruments
470,495

 
483,069

 
359,501

 
359,765

 
360,289

 
(3
)
 
31

 
Derivative receivables
52,878

 
50,333

 
54,213

 
60,062

 
58,510

 
5

 
(10
)
 
Investment securities
307,264

 
267,365

 
261,828

 
231,398

 
233,015

 
15

 
32

 
Loans
956,889

 
956,245

 
984,554

 
954,318

 
948,414

 
—

 
1

 
Less: Allowance for loan losses
13,166

 
13,533

 
13,445

 
13,128

 
13,250

 
(3
)
 
(1
)
 
Loans, net of allowance for loan losses
943,723

 
942,712

 
971,109

 
941,190

 
935,164

 
—

 
1

 
Accrued interest and accounts receivable
88,399

 
72,240

 
73,200

 
78,792

 
75,669

 
22

 
17

 
Premises and equipment
24,665

 
24,160

(a)
14,934

 
14,180

 
14,132

 
2

 
75

 
Goodwill, MSRs and other intangible assets
53,302

 
54,168

 
54,349

 
54,697

 
54,535

 
(2
)
 
(2
)
 
Other assets
120,090

 
118,211

 
121,022

 
115,936

 
118,805

 
2

 
1

 
TOTAL ASSETS
$
2,727,379

 
$
2,737,188

 
$
2,622,532

 
$
2,615,183

 
$
2,590,050

 
—

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
$
1,524,361

 
$
1,493,441

 
$
1,470,666

 
$
1,458,762

 
$
1,452,122

 
2

 
5

 
Federal funds purchased and securities loaned or sold
 
 
 
 
 
 
 
 
 
 
 
 
 
 
under repurchase agreements
201,683

 
222,677

 
182,320

 
181,608

 
175,293

 
(9
)
 
15

 
Short-term borrowings
59,890

 
71,305

 
69,276

 
64,635

 
63,918

 
(16
)
 
(6
)
 
Trading liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and equity instruments
106,160

 
117,904

 
103,004

 
109,457

 
107,327

 
(10
)
 
(1
)
 
Derivative payables
41,479

 
39,003

 
41,769

 
41,693

 
42,511

 
6

 
(2
)
 
Accounts payable and other liabilities
216,465

 
216,173

(a)
196,710

 
209,707

 
196,984

 
—

 
10

 
Beneficial interests issued by consolidated VIEs
25,585

 
25,955

 
20,241

 
20,241

 
21,323

 
(1
)
 
20

 
Long-term debt
288,869

 
290,893

 
282,031

 
270,124

 
273,114

 
(1
)
 
6

 
TOTAL LIABILITIES
2,464,492

 
2,477,351

 
2,366,017

 
2,356,227

 
2,332,592

 
(1
)
 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock
26,993

 
26,993

 
26,068

 
27,764

(b)
26,068

 
—

 
4

 
Common stock
4,105

 
4,105

 
4,105

 
4,105

 
4,105

 
—

 
—

 
Additional paid-in capital
88,359

 
88,170

 
89,162

 
89,333

 
89,392

 
—

 
(1
)
 
Retained earnings
212,093

 
205,437

 
199,202

 
195,180

 
189,881

 
3

 
12

 
Accumulated other comprehensive income/(loss)
786

 
(558
)
 
(1,507
)
 
(2,425
)
 
(1,138
)
 
NM

 
NM

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

 
—

 
Treasury stock, at cost
(69,428
)
 
(64,289
)
 
(60,494
)
 
(54,980
)
 
(50,829
)
 
(8
)
 
(37
)
 
TOTAL STOCKHOLDERS’ EQUITY
262,887

 
259,837

 
256,515

 
258,956

 
257,458

 
1

 
2

 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
2,727,379

 
$
2,737,188

 
$
2,622,532

 
$
2,615,183

 
$
2,590,050

 
—

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(a)
Effective January 1, 2019, the Firm adopted new accounting guidance that requires lessees to recognize on the Consolidated balance sheets all leases with lease terms greater than twelve months as a lease liability with a corresponding right-of-use (“ROU”) asset. Accordingly, the Firm recognized operating lease liabilities in Accounts payable and other liabilities and ROU assets in Premises and equipment of $8.2 billion and $8.1 billion, respectively, predominantly in Corporate and CCB.
(b)
Included $1.7 billion, which was redeemed on October 30, 2018.







Page 5


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
 
(in millions, except rates)
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
AVERAGE BALANCES
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits with banks
$
289,838

 
$
290,281

 
$
364,332

 
$
408,595

 
$
425,942

 
—
 %
 
(32
)%
 
 
$
290,058

 
$
424,880

 
(32
)%
 
Federal funds sold and securities purchased under
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
resale agreements
288,781

 
288,478

 
256,258

 
208,439

 
205,001

 
—

 
41

 
 
288,631

 
201,700

 
43

 
Securities borrowed
126,157

 
123,467

 
120,930

 
117,057

 
112,464

 
2

 
12

 
 
124,820

 
111,106

 
12

 
Trading assets - debt instruments (a)
351,716

 
322,541

 
257,733

 
241,074

 
240,254

 
9

 
46

 
 
337,209

 
240,062

 
40

 
Investment securities
281,232

 
259,400

 
245,020

 
229,987

 
232,007

 
8

 
21

 
 
270,376

 
235,859

 
15

 
Loans
954,854

 
968,019

 
961,138

 
951,724

 
939,675

 
(1
)
 
2

 
 
961,400

 
933,148

 
3

 
All other interest-earning assets (b)
46,516

 
46,708

 
49,038

 
46,429

 
50,662

 
—

 
(8
)
 
 
46,611

 
49,920

 
(7
)
 
Total interest-earning assets (a)
2,339,094

 
2,298,894

 
2,254,449

 
2,203,305

 
2,206,005

 
2

 
6

 
 
2,319,105

 
2,196,675

 
6

 
Trading assets - equity and other instruments (a)
120,545

 
108,598

 
100,655

 
119,915

 
128,414

 
11

 
(6
)
 
 
114,605

 
126,149

 
(9
)
 
Trading assets - derivative receivables
52,659

 
52,522

 
59,386

 
62,075

 
60,978

 
—

 
(14
)
 
 
52,591

 
60,737

 
(13
)
 
All other noninterest-earning assets
226,757

 
224,700

 
222,015

 
214,326

 
217,572

 
1

 
4

 
 
225,734

 
216,020

 
4

 
TOTAL ASSETS
$
2,739,055

 
$
2,684,714

 
$
2,636,505

 
$
2,599,621

 
$
2,612,969

 
2

 
5

 
 
$
2,712,035

 
$
2,599,581

 
4

 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits (a)
$
1,104,051

 
$
1,080,274

 
$
1,061,038

 
$
1,041,896

 
$
1,044,738

 
2

 
6

 
 
$
1,092,228

 
$
1,038,502

 
5

 
Federal funds purchased and securities loaned or
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
sold under repurchase agreements
227,313

 
209,065

 
184,684

 
184,377

 
192,136

 
9

 
18

 
 
218,240

 
194,113

 
12

 
Short-term borrowings (a)(c)
58,262

 
67,074

 
65,804

 
52,779

 
53,016

 
(13
)
 
10

 
 
62,643

 
50,622

 
24

 
Trading liabilities - debt and other interest-bearing liabilities (a)(d)
191,655

 
183,478

 
182,784

 
176,795

 
180,541

 
4

 
6

 
 
187,590

 
175,754

 
7

 
Beneficial interests issued by consolidated VIEs
26,713

 
22,829

 
19,982

 
19,921

 
20,906

 
17

 
28

 
 
24,782

 
22,226

 
12

 
Long-term debt (a)
246,053

 
248,302

 
240,095

 
241,878

 
242,913

 
(1
)
 
1

 
 
247,171

 
245,541

 
1

 
Total interest-bearing liabilities (a)
1,854,047

 
1,811,022

 
1,754,387

 
1,717,646

 
1,734,250

 
2

 
7

 
 
1,832,654

 
1,726,758

 
6

 
Noninterest-bearing deposits (a)
408,243

 
399,468

 
405,255

 
410,966

 
415,757

 
2

 
(2
)
 
 
403,880

 
414,790

 
(3
)
 
Trading liabilities - equity and other instruments (a)
30,170

 
34,734

 
37,812

 
36,605

 
34,931

 
(13
)
 
(14
)
 
 
32,440

 
32,084

 
1

 
Trading liabilities - derivative payables
40,233

 
39,567

 
43,538

 
44,810

 
42,168

 
2

 
(5
)
 
 
39,902

 
41,958

 
(5
)
 
All other noninterest-bearing liabilities (a)
146,343

 
142,746

 
139,015

 
132,903

 
130,894

 
3

 
12

 
 
144,553

 
129,662

 
11

 
TOTAL LIABILITIES
2,479,036

 
2,427,537

 
2,380,007

 
2,342,930

 
2,358,000

 
2

 
5

 
 
2,453,429

 
2,345,252

 
5

 
Preferred stock
26,993

 
27,126

 
26,602

 
26,252

 
26,068

 
—

 
4

 
 
27,059

 
26,068

 
4

 
Common stockholders’ equity
233,026

 
230,051

 
229,896

 
230,439

 
228,901

 
1

 
2

 
 
231,547

 
228,261

 
1

 
TOTAL STOCKHOLDERS’ EQUITY
260,019

 
257,177

 
256,498

 
256,691

 
254,969

 
1

 
2

 
 
258,606

 
254,329

 
2

 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
2,739,055

 
$
2,684,714

 
$
2,636,505

 
$
2,599,621

 
$
2,612,969

 
2

 
5

 
 
$
2,712,035

 
$
2,599,581

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE RATES (e)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INTEREST-EARNING ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits with banks
1.57

%
1.64

%
1.59

%
1.54

%
1.45

%
 
 
 
 
 
1.60

%
1.36

%
 
 
Federal funds sold and securities purchased under
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
resale agreements
2.33

 
2.32

 
2.06

 
1.81

 
1.58

 
 
 
 
 
 
2.32

 
1.54

 
 
 
Securities borrowed (a)
1.48

 
1.30

 
1.19

 
0.84

 
0.68

 
 
 
 
 
 
1.40

 
0.55

 
 
 
Trading assets - debt instruments (a)
3.34

 
3.50

 
3.62

 
3.57

 
3.55

 
 
 
 
 
 
3.41

 
3.57

 
 
 
Investment securities
3.28

 
3.37

 
3.32

 
3.26

 
3.24

 
 
 
 
 
 
3.32

 
3.16

 
 
 
Loans
5.36

 
5.41

 
5.26

 
5.11

 
4.99

 
 
 
 
 
 
5.39

 
4.93

 
 
 
All other interest-earning assets (a)(b)
4.07

 
3.98

 
3.73

 
4.23

 
3.99

 
 
 
 
 
 
4.03

 
3.77

 
 
 
Total interest-earning assets (a)
3.73

 
3.80

 
3.65

 
3.53

 
3.40

 
 
 
 
 
 
3.76

 
3.34

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INTEREST-BEARING LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits (a)
0.88

 
0.82

 
0.73

 
0.62

 
0.51

 
 
 
 
 
 
0.85

 
0.47

 
 
 
Federal funds purchased and securities loaned or
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
sold under repurchase agreements
2.16

 
2.15

 
1.94

 
1.78

 
1.58

 
 
 
 
 
 
2.16

 
1.39

 
 
 
Short-term borrowings (a)(c)
2.49

 
2.59

 
2.34

 
2.17

 
1.97

 
 
 
 
 
 
2.54

 
1.87

 
 
 
Trading liabilities - debt and other interest-bearing liabilities (a)(d)
1.60

 
1.59

 
1.55

 
1.39

 
1.33

 
 
 
 
 
 
1.59

 
1.21

 
 
 
Beneficial interests issued by consolidated VIEs
2.63

 
2.66

 
2.53

 
2.41

 
2.33

 
 
 
 
 
 
2.64

 
2.22

 
 
 
Long-term debt (a)
3.69

 
3.82

 
3.58

 
3.37

 
3.31

 
 
 
 
 
 
3.76

 
3.08

 
 
 
Total interest-bearing liabilities (a)
1.56

 
1.55

 
1.41

 
1.28

 
1.17

 
 
 
 
 
 
1.56

 
1.08

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INTEREST RATE SPREAD (a)
2.17

%
2.25

%
2.24

%
2.25

%
2.23

%
 
 
 
 
 
2.20

%
2.26

%
 
 
NET YIELD ON INTEREST-EARNING ASSETS (a)
2.49

%
2.57

%
2.55

%
2.53

%
2.48

%
 
 
 
 
 
2.53

%
2.49

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

%
3.43

%
3.35

%
3.30

%
3.21

%
 
 
 
 
 
3.39

%
3.17

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
In the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income and interest expense, but had no effect on net interest income. These changes were made to align the accounting treatment between the balance sheet and the related interest income or expense, primarily by offsetting interest income and expense for certain prime brokerage-related held-for-investment customer receivables and payables that are currently presented as a single margin account on the balance sheet. In addition, the Firm reclassified balances related to certain instruments and structured notes from interest-earning/bearing to noninterest-earning/bearing assets and liabilities as the associated returns are recorded in principal transactions revenue and not in net interest income. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.
(b)
Includes prime brokerage-related held-for-investment customer receivables, 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.
(c)
Includes commercial paper.
(d)
Other interest-bearing liabilities include prime brokerage-related customer payables.
(e)
Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(f)
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.

Page 6


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.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 page 28 .

The following summary table provides a reconciliation from reported U.S. GAAP results to managed basis.
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
OTHER INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income - reported
$
1,292

 
$
1,475

 
$
1,302

 
$
1,160

 
$
1,255

 
(12
)%
 
3
 %
 
 
$
2,767

 
$
2,881

 
(4
)%
 
Fully taxable-equivalent adjustments (a)
596

 
585

 
540

 
408

 
474

 
2

 
26

 
 
1,181

 
929

 
27

 
Other income - managed
$
1,888

 
$
2,060

 
$
1,842

 
$
1,568

 
$
1,729

 
(8
)
 
9

 
 
$
3,948

 
$
3,810

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NONINTEREST REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total noninterest revenue - reported
$
14,434

 
$
14,670

 
$
11,755

 
$
13,352

 
$
14,268

 
(2
)
 
1

 
 
$
29,104

 
$
28,863

 
1

 
Fully taxable-equivalent adjustments (a)
596

 
585

 
540

 
408

 
474

 
2

 
26

 
 
1,181

 
929

 
27

 
Total noninterest revenue - managed
$
15,030

 
$
15,255

 
$
12,295

 
$
13,760

 
$
14,742

 
(1
)
 
2

 
 
$
30,285

 
$
29,792

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INTEREST INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income - reported
$
14,398

 
$
14,453

 
$
14,354

 
$
13,908

 
$
13,485

 
—

 
7

 
 
$
28,851

 
$
26,797

 
8

 
Fully taxable-equivalent adjustments (a)
138

 
143

 
155

 
154

 
161

 
(3
)
 
(14
)
 
 
281

 
319

 
(12
)
 
Net interest income - managed
$
14,536

 
$
14,596

 
$
14,509

 
$
14,062

 
$
13,646

 
—

 
7

 
 
$
29,132

 
$
27,116

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NET REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue - reported
$
28,832

 
$
29,123

 
$
26,109

 
$
27,260

 
$
27,753

 
(1
)
 
4

 
 
$
57,955

 
$
55,660

 
4

 
Fully taxable-equivalent adjustments (a)
734

 
728

 
695

 
562

 
635

 
1

 
16

 
 
1,462

 
1,248

 
17

 
Total net revenue - managed
$
29,566

 
$
29,851

 
$
26,804

 
$
27,822

 
$
28,388

 
(1
)
 
4

 
 
$
59,417

 
$
56,908

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PRE-PROVISION PROFIT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-provision profit - reported
$
12,491

 
$
12,728

 
$
10,389

 
$
11,637

 
$
11,782

 
(2
)
 
6

 
 
$
25,219

 
$
23,609

 
7

 
Fully taxable-equivalent adjustments (a)
734

 
728

 
695

 
562

 
635

 
1

 
16

 
 
1,462

 
1,248

 
17

 
Pre-provision profit - managed
$
13,225

 
$
13,456

 
$
11,084

 
$
12,199

 
$
12,417

 
(2
)
 
7

 
 
$
26,681

 
$
24,857

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAX EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense - reported
$
11,342

 
$
11,233

 
$
8,841

 
$
10,689

 
$
10,572

 
1

 
7

 
 
$
22,575

 
$
21,234

 
6

 
Fully taxable-equivalent adjustments (a)
734

 
728

 
695

 
562

 
635

 
1

 
16

 
 
1,462

 
1,248

 
17

 
Income before income tax expense - managed
$
12,076

 
$
11,961

 
$
9,536

 
$
11,251

 
$
11,207

 
1

 
8

 
 
$
24,037

 
$
22,482

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INCOME TAX EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense - reported
$
1,690

 
$
2,054

 
$
1,775

 
$
2,309

 
$
2,256

 
(18
)
 
(25
)
 
 
$
3,744

 
$
4,206

 
(11
)
 
Fully taxable-equivalent adjustments (a)
734

 
728

 
695

 
562

 
635

 
1

 
16

 
 
1,462

 
1,248

 
17

 
Income tax expense - managed
$
2,424

 
$
2,782

 
$
2,470

 
$
2,871

 
$
2,891

 
(13
)
 
(16
)
 
 
$
5,206

 
$
5,454

 
(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OVERHEAD RATIO
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overhead ratio - reported
57

%
56

%
60

%
57

%
58

%
 
 
 
 
 
56

%
58

%
 
 
Overhead ratio - managed
55

 
55

 
59

 
56

 
56

 
 
 
 
 
 
55

 
56

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a) Predominantly recognized in CIB, CB and Corporate.

Page 7


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
SEGMENT RESULTS - MANAGED BASIS
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
13,833

 
$
13,751

 
$
13,695

 
$
13,290

 
$
12,497

 
1
 %

11
 %

 
$
27,584

 
$
25,094

 
10
 %

Corporate & Investment Bank
9,641

 
9,848

 
7,237

 
8,805

 
9,923

 
(2
)
 
(3
)
 
 
19,489

 
20,406

 
(4
)
 
Commercial Banking
2,211

 
2,338

 
2,306

 
2,271

 
2,316

 
(5
)
 
(5
)
 
 
4,549

 
4,482

 
1

 
Asset & Wealth Management
3,559

 
3,489

 
3,439

 
3,559

 
3,572

 
2

 
—

 
 
7,048

 
7,078

 
—

 
Corporate
322

 
425

 
127

 
(103
)
 
80

 
(24
)
 
303

 
 
747

 
(152
)
 
NM

 
TOTAL NET REVENUE
$
29,566

 
$
29,851

 
$
26,804

 
$
27,822

 
$
28,388

 
(1
)
 
4

 
 
$
59,417

 
$
56,908

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
7,162

 
$
7,211

 
$
7,065

 
$
6,982

 
$
6,879

 
(1
)
 
4

 
 
$
14,373

 
$
13,788

 
4

 
Corporate & Investment Bank
5,487

 
5,453

 
4,681

 
5,175

 
5,403

 
1

 
2

 
 
10,940

 
11,062

 
(1
)
 
Commercial Banking
864

 
873

 
845

 
853

 
844

 
(1
)
 
2

 
 
1,737

 
1,688

 
3

 
Asset & Wealth Management
2,596

 
2,647

 
2,621

 
2,585

 
2,566

 
(2
)
 
1

 
 
5,243

 
5,147

 
2

 
Corporate
232

 
211

 
508

 
28

 
279

 
10

 
(17
)
 
 
443

 
366

 
21

 
TOTAL NONINTEREST EXPENSE
$
16,341

 
$
16,395

 
$
15,720

 
$
15,623

 
$
15,971

 
—

 
2

 
 
$
32,736

 
$
32,051

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PRE-PROVISION PROFIT/(LOSS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
6,671

 
$
6,540

 
$
6,630

 
$
6,308

 
$
5,618

 
2

 
19

 
 
$
13,211

 
$
11,306

 
17

 
Corporate & Investment Bank
4,154

 
4,395

 
2,556

 
3,630

 
4,520

 
(5
)
 
(8
)
 
 
8,549

 
9,344

 
(9
)
 
Commercial Banking
1,347

 
1,465

 
1,461

 
1,418

 
1,472

 
(8
)
 
(8
)
 
 
2,812

 
2,794

 
1

 
Asset & Wealth Management
963

 
842

 
818

 
974

 
1,006

 
14

 
(4
)
 
 
1,805

 
1,931

 
(7
)
 
Corporate
90

 
214

 
(381
)
 
(131
)
 
(199
)
 
(58
)
 
NM

 
 
304

 
(518
)
 
NM

 
PRE-PROVISION PROFIT
$
13,225

 
$
13,456

 
$
11,084

 
$
12,199

 
$
12,417

 
(2
)
 
7

 
 
$
26,681

 
$
24,857

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PROVISION FOR CREDIT LOSSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
1,120

 
$
1,314

 
$
1,348

 
$
980

 
$
1,108

 
(15
)
 
1

 
 
$
2,434

 
$
2,425

 
—

 
Corporate & Investment Bank
—

 
87

 
82

 
(42
)
 
58

 
NM

 
NM

 
 
87

 
(100
)
 
NM

 
Commercial Banking
29

 
90

 
106

 
(15
)
 
43

 
(68
)
 
(33
)
 
 
119

 
38

 
213

 
Asset & Wealth Management
2

 
2

 
13

 
23

 
2

 
—

 
—

 
 
4

 
17

 
(76
)
 
Corporate
(2
)
 
2

 
(1
)
 
2

 
(1
)
 
NM

 
(100
)
 
 
—

 
(5
)
 
NM

 
PROVISION FOR CREDIT LOSSES
$
1,149

 
$
1,495

 
$
1,548

 
$
948

 
$
1,210

 
(23
)
 
(5
)
 
 
$
2,644

 
$
2,375

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME/(LOSS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
4,174

 
$
3,963

 
$
4,028

 
$
4,086

 
$
3,412

 
5

 
22

 
 
$
8,137

 
$
6,738

 
21

 
Corporate & Investment Bank
2,935

 
3,251

 
1,975

 
2,626

 
3,198

 
(10
)
 
(8
)
 
 
6,186

 
7,172

 
(14
)
 
Commercial Banking
996

 
1,053

 
1,036

 
1,089

 
1,087

 
(5
)
 
(8
)
 
 
2,049

 
2,112

 
(3
)
 
Asset & Wealth Management
719

 
661

 
604

 
724

 
755

 
9

 
(5
)
 
 
1,380

 
1,525

 
(10
)
 
Corporate
828

 
251

 
(577
)
 
(145
)
 
(136
)
 
230

 
NM

 
 
1,079

 
(519
)
 
NM

 
TOTAL NET INCOME
$
9,652

 
$
9,179

 
$
7,066

 
$
8,380

 
$
8,316

 
5

 
16

 
 
$
18,831

 
$
17,028

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Page 8


JPMORGAN CHASE & CO.
 
 
 
JPMCLOGOA10.GIF
CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
SIX MONTHS ENDED JUNE 30,
 
 
Jun 30,
 
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
 
Mar 31,
 
Jun 30,
 
 
 
 
 
 
 
2019 Change
 
 
2019
 
 
2019
 
2018
 
2018
 
2018
 
 
2019
 
2018
 
2019
 
 
2018
 
 
2018
 
CAPITAL (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Risk-based capital metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Standardized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CET1 capital
$
188,851

(e)

$
186,116


$
183,474


$
184,972


$
184,708

 
 
1
 %
 
2
 %
 
 
 
 
 
 
 
 
 
Tier 1 capital
215,487

(e)
 
212,644

 
209,093

 
210,589

 
210,321

 
 
1

 
2

 
 
 
 
 
 
 
 
 
Total capital
244,155

(e)
 
241,483

 
237,511

 
238,303

 
238,630

 
 
1

 
2

 
 
 
 
 
 
 
 
 
Risk-weighted assets
1,544,906

(e)
 
1,542,903

 
1,528,916

 
1,545,326

 
1,543,370

 
 
—

 
—

 
 
 
 
 
 
 
 
 
CET1 capital ratio
12.2
%
(e)
 
12.1
%
 
12.0
%
 
12.0
%
 
12.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 capital ratio
13.9

(e)
 
13.8

 
13.7

 
13.6

 
13.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total capital ratio
15.8

(e)
 
15.7

 
15.5

 
15.4

 
15.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advanced
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CET1 capital
$
188,851

(e)
 
$
186,116

 
$
183,474

 
$
184,972

 
$
184,708

 
 
1

 
2

 
 
 
 
 
 
 
 
 
Tier 1 capital
215,487

(e)
 
212,644

 
209,093

 
210,589

 
210,321

 
 
1

 
2

 
 
 
 
 
 
 
 
 
Total capital
234,318

(e)
 
231,454

 
227,435

 
228,574

 
229,027

 
 
1

 
2

 
 
 
 
 
 
 
 
 
Risk-weighted assets
1,449,754

(e)
 
1,432,526

 
1,421,205

 
1,438,529

 
1,438,747

 
 
1

 
1

 
 
 
 
 
 
 
 
 
CET1 capital ratio
13.0
%
(e)
 
13.0
%
 
12.9
%
 
12.9
%
 
12.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 capital ratio
14.9

(e)
 
14.8

 
14.7

 
14.6

 
14.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total capital ratio
16.2

(e)
 
16.2

 
16.0

 
15.9

 
15.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage-based capital metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted average assets (b)
$
2,692,232

(e)
 
$
2,637,741

 
$
2,589,887

 
$
2,552,612

 
$
2,566,013

 
 
2

 
5

 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio
8.0
%
(e)
 
8.1
%
 
8.1
%
 
8.2
%
 
8.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total leverage exposure
3,367,220

(e)
 
3,309,501

 
3,269,988

 
3,235,518

 
3,255,296

 
 
2

 
3

 
 
 
 
 
 
 
 
 
SLR
6.4
%
(e)
 
6.4
%
 
6.4
%
 
6.5
%
 
6.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TANGIBLE COMMON EQUITY (period-end) (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stockholders’ equity
$
235,894

 
 
$
232,844

 
$
230,447

 
$
231,192

 
$
231,390

 
 
1

 
2

 
 
 
 
 
 
 
 
 
Less: Goodwill
47,477

 
 
47,474

 
47,471

 
47,483

 
47,488

 
 
—

 
—

 
 
 
 
 
 
 
 
 
Less: Other intangible assets
732

 
 
737

 
748

 
781

 
806

 
 
(1
)
 
(9
)
 
 
 
 
 
 
 
 
 
Add: Deferred tax liabilities (d)
2,316

 
 
2,293

 
2,280

 
2,239

 
2,227

 
 
1

 
4

 
 
 
 
 
 
 
 
 
Total tangible common equity
$
190,001

 
 
$
186,926

 
$
184,508

 
$
185,167

 
$
185,323

 
 
2

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TANGIBLE COMMON EQUITY (average) (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Common stockholders’ equity
$
233,026

 
 
$
230,051

 
$
229,896

 
$
230,439

 
$
228,901

 
 
1

 
2

 
$
231,547

 
 
$
228,261

 
 
1
 %
 
Less: Goodwill
47,472

 
 
47,475

 
47,478

 
47,490

 
47,494

 
 
—

 
—

 
47,474

 
 
47,499

 
 
—

 
Less: Other intangible assets
741

 
 
744

 
765

 
795

 
822

 
 
—

 
(10
)
 
741

 
 
833

 
 
(11
)
 
Add: Deferred tax liabilities (d)
2,304

 
 
2,287

 
2,260

 
2,233

 
2,221

 
 
1

 
4

 
2,296

 
 
2,216

 
 
4

 
Total tangible common equity
$
187,117

 
 
$
184,119

 
$
183,913

 
$
184,387

 
$
182,806

 
 
2

 
2

 
$
185,628

 
 
$
182,145

 
 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INTANGIBLE ASSETS (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$
47,477

 
 
$
47,474

 
$
47,471

 
$
47,483

 
$
47,488

 
 
—

 
—

 
 
 
 
 
 
 
 
 
Mortgage servicing rights
5,093

 
 
5,957

 
6,130

 
6,433

 
6,241

 
 
(15
)
 
(18
)
 
 
 
 
 
 
 
 
 
Other intangible assets
732

 
 
737

 
748

 
781

 
806

 
 
(1
)
 
(9
)
 
 
 
 
 
 
 
 
 
Total intangible assets
$
53,302

 
 
$
54,168

 
$
54,349

 
$
54,697

 
$
54,535

 
 
(2
)
 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
The Basel III capital rules became fully phased-in effective January 1, 2019. The capital adequacy of the Firm is evaluated against the fully phased-in measures under Basel III and represents the lower of the Standardized or Advanced approach. During 2018 the required capital measures were subject to the transitional rules and as of December 31, 2018 and September 30, 2018, were the same on a fully phased-in and on a transitional basis. For additional information on these measures, refer to Capital Risk Management on pages 85-94 of the Firm’s 2018 Form 10-K and pages 32-36 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019 .
(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)
For further discussion of TCE, refer to page 28 .
(d)
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.
(e)
Estimated.



Page 9


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
EARNINGS PER SHARE AND RELATED INFORMATION
 
(in millions, except per share and ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
EARNINGS PER SHARE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
9,652

 
$
9,179

 
$
7,066

 
$
8,380

 
$
8,316

 
5
 %
 
16
 %
 
 
$
18,831

 
$
17,028

 
11
 %
 
Less: Preferred stock dividends
404

 
374

 
384

 
379

 
379

 
8

 
7

 
 
778

 
788

 
(1
)
 
Net income applicable to common equity
9,248

 
8,805

 
6,682

 
8,001

 
7,937

 
5

 
17

 
 
18,053

 
16,240

 
11

 
Less: Dividends and undistributed earnings allocated to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
participating securities
56

 
52

 
41

 
53

 
57

 
8

 
(2
)
 
 
108

 
121

 
(11
)
 
Net income applicable to common stockholders
$
9,192

 
$
8,753

 
$
6,641

 
$
7,948

 
$
7,880

 
5

 
17

 
 
$
17,945

 
$
16,119

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total weighted-average basic shares outstanding
3,250.6

 
3,298.0

 
3,335.8

 
3,376.1

 
3,415.2

 
(1
)
 
(5
)
 
 
3,274.3

 
3,436.7

 
(5
)
 
Net income per share
$
2.83

 
$
2.65

 
$
1.99

 
$
2.35

 
$
2.31

 
7

 
23

 
 
$
5.48

 
$
4.69

 
17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income applicable to common stockholders
$
9,192

 
$
8,753

 
$
6,641

 
$
7,948

 
$
7,880

 
5

 
17

 
 
$
17,945

 
$
16,119

 
11

 
Total weighted-average basic shares outstanding
3,250.6

 
3,298.0

 
3,335.8

 
3,376.1

 
3,415.2

 
(1
)
 
(5
)
 
 
3,274.3

 
3,436.7

 
(5
)
 
Add: Employee stock options, stock appreciation rights (“SARs”), warrants and unvested performance share units (“PSUs”)
9.1

 
10.2

 
11.5

 
18.2

 
19.5

 
(11
)
 
(53
)
 
 
9.6

 
20.4

 
(53
)
 
Total weighted-average diluted shares outstanding
3,259.7

 
3,308.2

 
3,347.3

 
3,394.3

 
3,434.7

 
(1
)
 
(5
)
 
 
3,283.9

 
3,457.1

 
(5
)
 
Net income per share
$
2.82

 
$
2.65

 
$
1.98

 
$
2.34

 
$
2.29

 
6

 
23

 
 
$
5.46

 
$
4.66

 
17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMMON DIVIDENDS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends declared per share
$
0.80

 
$
0.80

 
$
0.80

 
$
0.80

 
$
0.56

 
—

 
43

 
 
$
1.60

 
$
1.12

 
43

 
Dividend payout ratio
28
%
 
30
%
 
40
%
 
34
%
 
24
%
 
 
 
 
 
 
29
%
 
24
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMMON EQUITY REPURCHASE PROGRAM (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total shares of common stock repurchased
47.5

 
49.5

 
55.5

 
39.3

 
45.3

 
(4
)
 
5

 
 
97.0

 
86.7

 
12

 
Average price paid per share of common stock
$
109.83

 
$
102.78

 
$
106.80

 
$
112.41

 
$
109.67

 
7

 
—

 
 
$
106.23

 
$
111.15

 
(4
)
 
Aggregate repurchases of common equity
5,210

 
5,091

 
5,928

 
4,416

 
4,968

 
2

 
5

 
 
10,301

 
9,639

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EMPLOYEE ISSUANCE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares issued from treasury stock related to employee
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
stock-based compensation awards and employee stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
purchase plans
1.0

 
17.7

 
1.2

 
1.0

 
0.6

 
(94
)
 
67

 
 
18.7

 
20.4

 
(8
)
 
Net impact of employee issuances on stockholders’ equity (b)
$
258

 
$
348

 
$
240

 
$
244

 
$
272

 
(26
)
 
(5
)
 
 
$
606

 
$
203

 
199

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
On June 27, 2019, the Firm announced that it is authorized to repurchase up to $29.4 billion of common equity between July 1, 2019 and June 30, 2020, 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.
 
 
 
 
JPMCLOGOA10.GIF
CONSUMER & COMMUNITY BANKING
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lending- and deposit-related fees
$
928

 
$
873

 
$
956

 
$
936

 
$
875

 
6
 %
 
6
 %
 
 
$
1,801

 
$
1,732

 
4
 %
 
Asset management, administration and commissions
664

 
618

 
610

 
626

 
591

 
7

 
12

 
 
1,282

 
1,166

 
10

 
Mortgage fees and related income
279

 
396

 
203

 
260

 
324

 
(30
)
 
(14
)
 
 
675

 
789

 
(14
)
 
Card income
1,257

 
1,168

 
1,255

 
1,219

 
910

 
8

 
38

 
 
2,425

 
2,080

 
17

 
All other income
1,312

 
1,278

 
1,173

 
1,135

 
1,048

 
3

 
25

 
 
2,590

 
2,120

 
22

 
Noninterest revenue
4,440

 
4,333

 
4,197

 
4,176

 
3,748

 
2

 
18

 
 
8,773

 
7,887

 
11

 
Net interest income
9,393

 
9,418

 
9,498

 
9,114

 
8,749

 
—

 
7

 
 
18,811

 
17,207

 
9

 
TOTAL NET REVENUE
13,833

 
13,751

 
13,695

 
13,290

 
12,497

 
1

 
11

 
 
27,584

 
25,094

 
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
1,120

 
1,314

 
1,348

 
980

 
1,108

 
(15
)
 
1

 
 
2,434

 
2,425

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense
2,672

 
2,708

 
2,618

 
2,635

 
2,621

 
(1
)
 
2

 
 
5,380

 
5,281

 
2

 
Noncompensation expense (a)
4,490

 
4,503

 
4,447

 
4,347

 
4,258

 
—

 
5

 
 
8,993

 
8,507

 
6

 
TOTAL NONINTEREST EXPENSE
7,162

 
7,211

 
7,065

 
6,982

 
6,879

 
(1
)
 
4

 
 
14,373

 
13,788

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
5,551

 
5,226

 
5,282

 
5,328

 
4,510

 
6

 
23

 
 
10,777

 
8,881

 
21

 
Income tax expense
1,377

 
1,263

 
1,254

 
1,242

 
1,098

 
9

 
25

 
 
2,640

 
2,143

 
23

 
NET INCOME
$
4,174

 
$
3,963

 
$
4,028

 
$
4,086

 
$
3,412

 
5

 
22

 
 
$
8,137

 
$
6,738

 
21

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE BY LINE OF BUSINESS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
$
6,797

 
$
6,568

 
$
6,567

 
$
6,385

 
$
6,131

 
3

 
11

 
 
$
13,365

 
$
11,853

 
13

 
Home Lending
1,118

 
1,346

 
1,322

 
1,306

 
1,347

 
(17
)
 
(17
)
 
 
2,464

 
2,856

 
(14
)
 
Card, Merchant Services & Auto
5,918

 
5,837

 
5,806

 
5,599

 
5,019

 
1

 
18

 
 
11,755

 
10,385

 
13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MORTGAGE FEES AND RELATED INCOME DETAILS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net production revenue
353

 
200

 
(28
)
 
108

 
93

 
77

 
280

 
 
553


188

 
194

 
Net mortgage servicing revenue (b)
(74
)
 
196

 
231

 
152

 
231

 
NM

 
NM

 
 
122


601

 
(80
)
 
Mortgage fees and related income
$
279

 
$
396

 
$
203

 
$
260

 
$
324

 
(30
)
 
(14
)
 
 
$
675

 
$
789

 
(14
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE
31

%
30

%
30

%
31

%
26

%
 
 
 
 
 
31

%
26

%
 
 
Overhead ratio
52

 
52

 
52

 
53

 
55

 
 
 
 
 
 
52

 
55

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Included operating lease depreciation expense of $959 million , $969 million , $927 million , $862 million and $827 million for the three months ended June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 , and June 30, 2018 , respectively, and $1.9 billion and $1.6 billion for the six months ended June 30, 2019 and 2018 , respectively.
(b)
Included MSR risk management results of $(244) million , $(9) million , $(17) million , $(88) million and $(23) million for the three months ended June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 , and June 30, 2018 , respectively, and $(253) million and $(6) million for the six months ended June 30, 2019 and 2018 , respectively.


Page 11


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
CONSUMER & COMMUNITY BANKING
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
550,690

 
$
552,486

 
$
557,441

 
$
560,432

 
$
552,674

 
—
 %
 
—
 %
 
 
$
550,690

 
$
552,674

 
—
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
26,616

 
26,492

 
26,612

 
26,451

 
26,272

 
—

 
1

 
 
26,616

 
26,272

 
1

 
Home equity
32,958

 
34,417

 
36,013

 
37,461

 
39,033

 
(4
)
 
(16
)
 
 
32,958

 
39,033

 
(16
)
 
Residential mortgage
186,575

 
196,182

 
203,859

 
205,389

 
202,205

 
(5
)
 
(8
)
 
 
186,575

 
202,205

 
(8
)
 
Home Lending
219,533

 
230,599

 
239,872

 
242,850

 
241,238

 
(5
)
 
(9
)
 
 
219,533

 
241,238

 
(9
)
 
Card
157,576

 
150,527

 
156,632

 
147,881

 
145,255

 
5

 
8

 
 
157,576

 
145,255

 
8

 
Auto
62,073

 
62,786

 
63,573

 
63,619

 
65,014

 
(1
)
 
(5
)
 
 
62,073

 
65,014

 
(5
)
 
Total loans
465,798

 
470,404

 
486,689

 
480,801

 
477,779

 
(1
)
 
(3
)
 
 
465,798

 
477,779

 
(3
)
 
           Core loans
418,177

 
420,417

 
434,466

 
425,917

 
419,295

 
(1
)
 
—

 
 
418,177

 
419,295

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
695,100

 
702,587

 
678,854

 
677,260

 
679,154

 
(1
)
 
2

 
 
695,100


679,154

 
2

 
Equity
52,000

 
52,000

 
51,000

 
51,000

 
51,000

 
—

 
2

 
 
52,000


51,000

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
542,337

 
$
553,832

 
$
554,600

 
$
551,080

 
$
544,642

 
(2
)
 
—

 
 
$
548,053

 
$
541,806

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
26,570

 
26,488

 
26,474

 
26,351

 
26,110

 
—

 
2

 
 
26,529

 
25,978

 
2

 
Home equity
33,676

 
35,224

 
36,703

 
38,211

 
39,898

 
(4
)
 
(16
)
 
 
34,446

 
40,836

 
(16
)
 
Residential mortgage
191,009

 
203,725

 
205,471

 
204,689

 
201,587

 
(6
)
 
(5
)
 
 
197,332

 
200,129

 
(1
)
 
Home Lending
224,685

 
238,949

 
242,174

 
242,900

 
241,485

 
(6
)
 
(7
)
 
 
231,778

 
240,965

 
(4
)
 
Card
153,746

 
151,134

 
150,594

 
146,272

 
142,724

 
2

 
8

 
 
152,447

 
142,825

 
7

 
Auto
62,236

 
62,763

 
63,426

 
64,060

 
65,383

 
(1
)
 
(5
)
 
 
62,498

 
65,622

 
(5
)
 
Total loans
467,237

 
479,334

 
482,668

 
479,583

 
475,702

 
(3
)
 
(2
)
 
 
473,252

 
475,390

 
—

 
           Core loans
418,470

 
428,215

 
429,167

 
422,582

 
414,120

 
(2
)
 
1

 
 
423,315

 
412,145

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
690,892

 
681,013

 
673,782

 
674,211

 
673,761

 
1

 
3

 
 
685,980

 
666,719

 
3

 
Equity
52,000

 
52,000

 
51,000

 
51,000

 
51,000

 
—

 
2

 
 
52,000

 
51,000

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount (a)
127,732

 
128,419

 
129,518

 
129,891

 
131,945

 
(1
)
 
(3
)
 
 
127,732

 
131,945

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
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.
 
 
 
 
JPMCLOGOA10.GIF
 
 
CONSUMER & COMMUNITY BANKING
 
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
 
(in millions, except ratio data)
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
CREDIT DATA AND QUALITY STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans (a)(b)
$
3,142

 
$
3,265

 
$
3,339

 
$
3,520

 
$
3,854

 
(4
)%
 
(18
)%
 
 
$
3,142

 
$
3,854

 
(18
)%
 
Net charge-offs/(recoveries) (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
66

 
59

 
65

 
68

 
50

 
12

 
32

 
 
125

 
103

 
21

 
Home equity
(16
)
 
—

 
(4
)
 
(12
)
 
(7
)
 
NM

 
(129
)
 
 
(16
)
 
9

 
NM

 
Residential mortgage
(12
)
 
(5
)
 
(35
)
 
(105
)
 
(149
)
 
(140
)
 
92

 
 
(17
)
 
(147
)
 
88

 
Home Lending
(28
)
 
(5
)
 
(39
)
 
(117
)
 
(156
)
 
(460
)
 
82

 
 
(33
)
 
(138
)
 
76

 
Card
1,240

 
1,202

 
1,111

 
1,073

 
1,164

 
3

 
7

 
 
2,442


2,334

 
5

 
Auto
42

 
58

 
61

 
56

 
50

 
(28
)
 
(16
)
 
 
100


126

 
(21
)
 
Total net charge-offs/(recoveries)
$
1,320

 
$
1,314

 
$
1,198


$
1,080

 
$
1,108

 
—

 
19

 
 
$
2,634


$
2,425

 
9

 
Net charge-off/(recovery) rate (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
1.00

%
0.90

%
0.97

%
1.02

%
0.77

%
 
 
 
 
 
0.95

%
0.80

%
 
 
Home equity (d)
(0.25
)
 
—

 
(0.06
)
 
(0.17
)
 
(0.09
)
 
 
 
 
 
 
(0.12
)
 
0.06

 
 
 
Residential mortgage (d)
(0.03
)
 
(0.01
)
 
(0.07
)
 
(0.22
)
 
(0.33
)
 
 
 
 
 
 
(0.02
)
 
(0.16
)
 
 
 
Home Lending (d)
(0.06
)
 
(0.01
)
 
(0.07
)
 
(0.21
)
 
(0.29
)
 
 
 
 
 
 
(0.03
)
 
(0.13
)
 
 
 
Card
3.24

 
3.23

 
2.93

 
2.91

 
3.27

 
 
 
 
 
 
3.23

 
3.30

 
 
 
Auto
0.27

 
0.37

 
0.38

 
0.35

 
0.31

 
 
 
 
 
 
0.32

 
0.39

 
 
 
Total net charge-off/(recovery) rate (d)
1.19

 
1.17

 
1.04


0.95

 
1.00

 
 
 
 
 
 
1.18


1.10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30+ day delinquency rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Home Lending (e)(f)
0.71

%
0.77

%
0.77

%
0.81

%
0.86

%
 
 
 
 
 
0.71

%
0.86

%
 
 
Card
1.71

 
1.85

 
1.83

 
1.75

 
1.65

 
 
 
 
 
 
1.71

 
1.65

 
 
 
Auto
0.82

 
0.63

 
0.93

 
0.82

 
0.77

 
 
 
 
 
 
0.82

 
0.77

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
90+ day delinquency rate - Card
0.87

 
0.97

 
0.92

 
0.85

 
0.85

 
 
 
 
 
 
0.87

 
0.85

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
1,299

 
1,738

 
1,788

 
1,824

 
2,132

 
(25
)
 
(39
)
 
 
1,299

 
2,132

 
(39
)
 
Card
5,383

 
5,183

 
5,184

 
5,034

 
4,884

 
4

 
10

 
 
5,383

 
4,884

 
10

 
Auto
465

 
465

 
464

 
464

 
464

 
—

 
—

 
 
465

 
464

 
—

 
Total allowance for loan losses (c)
$
8,946

 
$
9,185

 
$
9,235

 
$
9,121

 
$
9,279

 
(3
)
 
(4
)
 
 
$
8,946

 
$
9,279

 
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note : CCB provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, refer to page 28 .
(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 June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 and June 30, 2018 , nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $1.8 billion , $2.2 billion , $2.6 billion , $2.9 billion and $3.3 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 June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 and June 30, 2018 , excluded write-offs in the PCI portfolio of $39 million , $50 million , $36 million , $58 million and $73 million , respectively, and for the six months ended June 30, 2019 and 2018 excluded $89 million and $93 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 June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 and June 30, 2018 , the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of (0.19)% , –%, (0.04)% , (0.12)% and (0.07)% , respectively; (2) residential mortgage of (0.03)% , (0.01)% , (0.07)% , (0.20)% and (0.30)% , respectively; (3) Home Lending of (0.05)% , (0.01)% , (0.06)% , (0.19)% and (0.26)% , respectively; and (4) total CCB of 1.14% , 1.11% , 0.99% , 0.89% and 0.93% , respectively. For the six months ended June 30, 2019 and 2018, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of (0.09)% and 0.04% , respectively; (2) residential mortgage of (0.02)% and (0.15)% , respectively; (3) Home Lending of (0.03)% and (0.12)% , respectively; and (4) total CCB of 1.13% and 1.03% , respectively.
(e)
At June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 and June 30, 2018 , excluded mortgage loans insured by U.S. government agencies of $2.9 billion , $3.2 billion , $4.1 billion , $4.5 billion and $5.0 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 8.71% , 8.90% , 9.16% , 9.39% and 9.40% at June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 and June 30, 2018 , respectively.

Page 13


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
 
 
CONSUMER & COMMUNITY BANKING
 
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
 
(in millions, except ratio data and where otherwise noted)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
BUSINESS METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Branches
4,970

 
5,028

 
5,036

 
5,066

 
5,091

 
(1
)%
 
(2
)%
 
 
4,970

 
5,091

 
(2
)%
 
Active digital customers (in thousands) (a)
51,032

 
50,651

 
49,254

 
48,664

 
47,952

 
1

 
6

 
 
51,032

 
47,952

 
6

 
Active mobile customers (in thousands) (b)
35,392

 
34,371

 
33,260

 
32,538

 
31,651

 
3

 
12

 
 
35,392

 
31,651

 
12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debit and credit card sales volume (in billions)
$
281.5

 
$
255.1

 
$
270.5

 
$
259.0

 
$
255.0

 
10

 
10

 
 
$
536.6

 
$
487.4

 
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average deposits
$
676,663

 
$
668,526

 
$
660,279

 
$
659,513

 
$
659,772

 
1

 
3

 
 
$
672,617

 
$
653,123

 
3

 
Deposit margin
2.60

%
2.62

%
2.55

%
2.43

%
2.36

%
 
 
 
 
 
2.61

%
2.28

%
 
 
Business banking origination volume
$
1,741

 
$
1,480

 
$
1,477

 
$
1,629

 
$
1,921

 
18

 
(9
)
 
 
$
3,221

 
$
3,577

 
(10
)
 
Client investment assets
328,141

 
312,310

 
282,463

 
298,405

 
283,731

 
5

 
16

 
 
328,141

 
283,731

 
16

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Home Lending (in billions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage origination volume by channel
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$
12.5

 
$
7.9

 
$
9.0

 
$
10.6

 
$
10.4

 
58

 
20

 
 
$
20.4

 
$
18.7

 
9

 
Correspondent
12.0

 
7.1

 
8.2

 
11.9

 
11.1

 
69

 
8

 
 
19.1

 
21.0

 
(9
)
 
Total mortgage origination volume (c)
$
24.5

 
$
15.0

 
$
17.2

 
$
22.5

 
$
21.5

 
63

 
14

 
 
$
39.5

 
$
39.7

 
(1
)
 
Total loans serviced (period-end)
$
780.1

 
$
791.5

 
$
789.8

 
$
798.6

 
$
802.6

 
(1
)
 
(3
)
 
 
$
780.1

 
$
802.6

 
(3
)
 
Third-party mortgage loans serviced (period-end)
526.6

 
529.6

 
519.6

 
526.5

 
533.0

 
(1
)
 
(1
)
 
 
526.6

 
533.0

 
(1
)
 
MSR carrying value (period-end)
5.1

 
6.0

 
6.1

 
6.4

 
6.2

 
(15
)
 
(18
)
 
 
5.1


6.2

 
(18
)
 
Ratio of MSR carrying value (period-end) to third-party
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
mortgage loans serviced (period-end)
0.97

%
1.13

%
1.17

%
1.22

%
1.16

%
 
 
 
 
 
0.97

%
1.16

%
 
 
MSR revenue multiple (d)
2.69
x
 
3.32
x
 
3.34
x
 
3.49
x
 
3.31
x
 
 
 
 
 
 
2.77
x
 
3.22
x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Card, excluding Commercial Card
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit card sales volume (in billions)
$
192.5

 
$
172.5

 
$
185.3

 
$
176.0

 
$
174.0

 
12

 
11

 
 
$
365.0

 
$
331.1

 
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Card Services
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenue rate
11.48

%
11.63

%
11.57

%
11.50

%
10.38

%
 
 
 
 
 
11.55

%
11.00

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchant Services
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchant processing volume (in billions)
$
371.6

 
$
356.5

 
$
375.2

 
$
343.8

 
$
330.8

 
4

 
12

 
 
$
728.1

 
$
647.1

 
13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Auto
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan and lease origination volume (in billions)
$
8.5

 
$
7.9

 
$
7.0

 
$
8.1

 
$
8.3

 
8

 
2

 
 
$
16.4

 
$
16.7

 
(2
)
 
Average auto operating lease assets
21,314

 
20,831

 
20,041

 
19,176

 
18,407

 
2

 
16

 
 
21,074


17,996

 
17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 $26.3 billion , $16.4 billion , $18.7 billion , $24.5 billion and $23.7 billion for the three months ended June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 and June 30, 2018 , respectively, and $42.7 billion and $43.7 billion for the six months ended June 30, 2019 and 2018 , 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.
 
 
 
 
JPMCLOGOA10.GIF
CORPORATE & INVESTMENT BANK
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment banking fees
$
1,846

 
$
1,844

 
$
1,815

 
$
1,823

 
$
2,139

 
—
 %
 
(14
)%
 
 
$
3,690

 
$
3,835

 
(4
)%
 
Principal transactions
3,885

 
4,163

 
1,485

 
3,091

 
3,666

 
(7
)
 
6

 
 
8,048

 
7,695

 
5

 
Lending- and deposit-related fees
374

 
361

 
361

 
373

 
382

 
4

 
(2
)
 
 
735

 
763

 
(4
)
 
Asset management, administration and commissions
1,149

 
1,101

 
1,072

 
1,130

 
1,155

 
4

 
(1
)
 
 
2,250

 
2,286

 
(2
)
 
All other income
229

 
194

 
281

 
88

 
190

 
18

 
21

 
 
423

 
870

(d)
(51
)
 
Noninterest revenue
7,483

 
7,663

 
5,014

 
6,505

 
7,532

 
(2
)
 
(1
)
 
 
15,146

 
15,449

 
(2
)
 
Net interest income
2,158

 
2,185

 
2,223

 
2,300

 
2,391

 
(1
)
 
(10
)
 
 
4,343

 
4,957

 
(12
)
 
TOTAL NET REVENUE (a)
9,641

 
9,848

 
7,237

 
8,805

 
9,923

 
(2
)
 
(3
)
 
 
19,489

 
20,406

 
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
—

 
87

 
82

 
(42
)
 
58

 
NM

 
NM

 
 
87

 
(100
)
 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense
2,698

 
2,949

 
2,057

 
2,402

 
2,720

 
(9
)
 
(1
)
 
 
5,647

 
5,756

 
(2
)
 
Noncompensation expense
2,789

 
2,504

 
2,624

 
2,773

 
2,683

 
11

 
4

 
 
5,293

 
5,306

 
—

 
TOTAL NONINTEREST EXPENSE
5,487

 
5,453

 
4,681

 
5,175

 
5,403

 
1

 
2

 
 
10,940

 
11,062

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
4,154

 
4,308

 
2,474

 
3,672

 
4,462

 
(4
)
 
(7
)
 
 
8,462

 
9,444

 
(10
)
 
Income tax expense
1,219

 
1,057

 
499

 
1,046

 
1,264

 
15

 
(4
)
 
 
2,276

 
2,272

 
—

 
NET INCOME
$
2,935

 
$
3,251

 
$
1,975

 
$
2,626

 
$
3,198

 
(10
)
 
(8
)
 
 
$
6,186

 
$
7,172

 
(14
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE
14
%
 
16
%
 
10
%
 
14
%
 
17
%
 
 
 
 
 
 
15
%
 
20
%
 
 
 
Overhead ratio
57

 
55

 
65

 
59

 
54

 
 
 
 
 
 
56

 
54

 
 
 
Compensation expense as percentage of total net revenue
28

 
30

 
28

 
27

 
27

 
 
 
 
 
 
29

 
28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE BY BUSINESS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Banking
$
1,776

 
$
1,745

 
$
1,720

 
$
1,731

 
$
1,949

 
2

 
(9
)
 
 
$
3,521

 
$
3,536

 
—

 
Treasury Services
1,135

 
1,147

 
1,217

 
1,183

 
1,181

 
(1
)
 
(4
)
 
 
2,282

 
2,297

 
(1
)
 
Lending
337

 
340

 
344

 
331

 
321

 
(1
)
 
5

 
 
677

 
623

 
9

 
Total Banking
3,248

 
3,232

 
3,281

 
3,245

 
3,451

 
—

 
(6
)
 
 
6,480

 
6,456

 
—

 
Fixed Income Markets
3,690

 
3,725

 
1,856

 
2,844

 
3,453

 
(1
)
 
7

 
 
7,415

 
8,006

 
(7
)
 
Equity Markets
1,728

 
1,741

 
1,317

 
1,595

 
1,959

 
(1
)
 
(12
)
 
 
3,469

 
3,976

 
(13
)
 
Securities Services
1,045

 
1,014

 
1,026

 
1,057

 
1,103

 
3

 
(5
)
 
 
2,059

 
2,162

 
(5
)
 
Credit Adjustments & Other (b)
(70
)
 
136

 
(243
)
 
64

 
(43
)
 
NM

 
(63
)
 
 
66

 
(194
)
 
NM

 
Total Markets & Securities Services (c)
6,393

 
6,616

 
3,956

 
5,560

 
6,472

 
(3
)
 
(1
)
 
 
13,009

 
13,950

(d)
(7
)
 
TOTAL NET REVENUE
$
9,641

 
$
9,848

 
$
7,237

 
$
8,805

 
$
9,923

 
(2
)
 
(3
)
 
 
$
19,489

 
$
20,406

 
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Includes 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 $547 million , $539 million , $465 million , $354 million and $428 million for the three months ended June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 , and June 30, 2018 , respectively and $1.1 billion and $833 million for the six months ended June 30, 2019 and 2018, 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)
Formerly Markets & Investor Services.
(d)
Included $505 million of fair value gains related to the adoption of the recognition and measurement accounting guidance in the first quarter of 2018 for certain equity investments previously held at cost.

Page 15


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
CORPORATE & INVESTMENT BANK
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except ratio and headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
$
962,498

 
$
1,006,111

 
$
903,051

 
$
928,148

 
$
908,954

 
(4
)%
 
6
 %
 
 
$
962,498

 
$
908,954

 
6
 %
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained (a)
123,074

 
127,086

 
129,389

 
117,084

 
116,645

 
(3
)
 
6

 
 
123,074

 
116,645

 
6

 
Loans held-for-sale and loans at fair value
6,838

 
7,783

 
13,050

 
6,133

 
6,254

 
(12
)
 
9

 
 
6,838

 
6,254

 
9

 
Total loans
129,912

 
134,869

 
142,439

 
123,217

 
122,899

 
(4
)
 
6

 
 
129,912

 
122,899

 
6

 
           Core loans
129,747

 
134,692

 
142,122

 
122,953

 
122,574

 
(4
)
 
6

 
 
129,747

 
122,574

 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
80,000

 
80,000

 
70,000

 
70,000

 
70,000

 
—

 
14

 
 
80,000

 
70,000

 
14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
$
992,792

 
$
959,842

 
$
918,643

 
$
924,909

 
$
937,217

 
3

 
6

 
 
976,408

 
$
923,756

 
6

 
Trading assets - debt and equity instruments
421,775

 
381,312

 
334,033

 
349,390

 
358,611

 
11

 
18

 
 
401,656

 
356,750

 
13

 
Trading assets - derivative receivables
48,815

 
50,609

 
59,393

 
62,025

 
60,623

 
(4
)
 
(19
)
 
 
49,707

 
60,393

 
(18
)
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained (a)
124,194

 
126,990

 
118,857

 
115,390

 
113,950

 
(2
)
 
9

 
 
125,585

 
111,665

 
12

 
Loans held-for-sale and loans at fair value
7,763

 
8,615

 
6,852

 
7,328

 
5,961

 
(10
)
 
30

 
 
8,186

 
5,722

 
43

 
Total loans
131,957

 
135,605

 
125,709

 
122,718

 
119,911

 
(3
)
 
10

 
 
133,771

 
117,387

 
14

 
Core loans
131,792

 
135,420

 
125,505

 
122,442

 
119,637

 
(3
)
 
10

 
 
133,596

 
117,090

 
14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
80,000

 
80,000

 
70,000

 
70,000

 
70,000

 
—

 
14

 
 
80,000

 
70,000

 
14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount (b)
54,959

 
54,697

 
54,480

 
54,052

 
51,400

 
—

 
7

 
 
54,959

 
51,400

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT DATA AND QUALITY STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs/(recoveries)
$
72

 
$
30

 
$
(1
)
 
$
(40
)
 
$
114

 
140

 
(37
)
 
 
$
102

 
$
134

 
(24
)
 
Nonperforming assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans retained (c)
569

 
812

 
443

 
318

 
352

 
(30
)
 
62

 
 
569

 
352

 
62

 
Nonaccrual loans held-for-sale and loans at fair value
370

 
313

 
220

 
9

 
175

 
18

 
111

 
 
370

 
175

 
111

 
Total nonaccrual loans
939

 
1,125

 
663

 
327

 
527

 
(17
)
 
78

 
 
939

 
527

 
78

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative receivables
39

 
44

 
60

 
90

 
112

 
(11
)
 
(65
)
 
 
39

 
112

 
(65
)
 
Assets acquired in loan satisfactions
58

 
58

 
57

 
61

 
104

 
—

 
(44
)
 
 
58

 
104

 
(44
)
 
Total nonperforming assets
1,036

 
1,227

 
780

 
478

 
743

 
(16
)
 
39

 
 
1,036

 
743

 
39

 
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
1,131

 
1,252

 
1,199

 
1,068

 
1,043

 
(10
)
 
8

 
 
1,131

 
1,043

 
8

 
Allowance for lending-related commitments
807

 
758

 
754

 
802

 
828

 
6

 
(3
)
 
 
807

 
828

 
(3
)
 
Total allowance for credit losses
1,938

 
2,010

 
1,953

 
1,870

 
1,871

 
(4
)
 
4

 
 
1,938

 
1,871

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-off/(recovery) rate (a)(d)
0.23
%
 
0.10
%
 
—
 %
 
(0.14
)%
 
0.40
%
 
 
 
 
 
 
0.16
%
 
0.24
%
 
 
 
Allowance for loan losses to period-end loans retained (a)
0.92

 
0.99

 
0.93

 
0.91

 
0.89

 
 
 
 
 
 
0.92

 
0.89

 
 
 
Allowance for loan losses to period-end loans retained,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
excluding trade finance and conduits (e)
1.27

 
1.34

 
1.24

 
1.27

 
1.27

 
 
 
 
 
 
1.27

 
1.27

 
 
 
Allowance for loan losses to nonaccrual loans retained (a)(c)
199

 
154

 
271

 
336

 
296

 
 
 
 
 
 
199

 
296

 
 
 
Nonaccrual loans to total period-end loans
0.72

 
0.83

 
0.47

 
0.27

 
0.43

 
 
 
 
 
 
0.72

 
0.43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 $147 million , $252 million , $174 million , $145 million and $141 million were held against nonaccrual loans at June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 , and June 30, 2018 , 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.
 
 
 
 
JPMCLOGOA10.GIF
CORPORATE & INVESTMENT BANK
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except where otherwise noted)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
BUSINESS METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory
$
525

 
$
644

 
$
727

 
$
581

 
$
626

 
(18
)%
 
(16
)%
 
 
$
1,169

 
$
1,201

 
(3
)%
 
Equity underwriting
505

 
265

 
348

 
420

 
570

 
91

 
(11
)
 
 
770

 
916

 
(16
)
 
Debt underwriting
816

 
935

 
740

 
822

 
943

 
(13
)
 
(13
)
 
 
1,751

 
1,718

 
2

 
Total investment banking fees
$
1,846

 
$
1,844

 
$
1,815

 
$
1,823

 
$
2,139

 
—

 
(14
)
 
 
$
3,690

 
$
3,835

 
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets under custody (“AUC”) (period-end) (in billions)
$
25,450

 
$
24,716

 
$
23,217

 
$
24,403

 
$
24,184

 
3

 
5

 
 
$
25,450

 
$
24,184

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Client deposits and other third-party liabilities (average) (a)
458,237

 
444,055

 
445,642

 
434,847

 
433,646

 
3

 
6

 
 
451,185

 
428,502

 
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
95% Confidence Level - Total CIB VaR (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CIB trading VaR by risk type: (b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income
$
39

 
$
44

 
$
37

 
$
30

 
$
31

 
(11
)
 
26

 
 
 
 
 
 
 
 
Foreign exchange
7

 
9

 
6

 
5

 
6

 
(22
)
 
17

 
 
 
 
 
 
 
 
Equities
25

 
16

 
20

 
16

 
15

 
56

 
67

 
 
 
 
 
 
 
 
Commodities and other
9

 
10

 
11

 
9

 
7

 
(10
)
 
29

 
 
 
 
 
 
 
 
Diversification benefit to CIB trading VaR (c)
(36
)
 
(32
)
 
(25
)
 
(27
)
 
(27
)
 
(13
)
 
(33
)
 
 
 
 
 
 
 
 
CIB trading VaR (b)
44

 
47

 
49

 
33

 
32

 
(6
)
 
38

 
 
 
 
 
 
 
 
Credit portfolio VaR (d)
5

 
5

 
4

 
3

 
4

 
—

 
25

 
 
 
 
 
 
 
 
Diversification benefit to CIB VaR (c)
(5
)
 
(4
)
 
(4
)
 
(3
)
 
(3
)
 
(25
)
 
(67
)
 
 
 
 
 
 
 
 
CIB VaR
$
44

 
$
48

 
$
49

 
$
33

 
$
33

 
(8
)
 
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 126–128 of the Firm’s 2018 Form 10-K, and pages 58-60 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019.
(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.
 
 
 
 
JPMCLOGOA10.GIF
COMMERCIAL BANKING
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lending- and deposit-related fees
$
216

 
$
227

 
$
204

 
$
216

 
$
224

 
(5
)%
 
(4
)%
 
 
$
443

 
$
450

 
(2
)%
 
All other income (a)
333

 
431

 
381

 
360

 
409

 
(23
)
 
(19
)
 
 
764

 
732

 
4

 
Noninterest revenue
549

 
658

 
585

 
576

 
633

 
(17
)
 
(13
)
 
 
1,207

 
1,182

 
2

 
Net interest income
1,662

 
1,680

 
1,721

 
1,695

 
1,683

 
(1
)
 
(1
)
 
 
3,342

 
3,300

 
1

 
TOTAL NET REVENUE (b)
2,211

 
2,338

 
2,306

 
2,271

 
2,316

 
(5
)
 
(5
)
 
 
4,549

 
4,482

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
29

 
90

 
106

 
(15
)
 
43

 
(68
)
 
(33
)
 
 
119

 
38

 
213

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense
438

 
449

 
426

 
432

 
415

 
(2
)
 
6

 
 
887

 
836

 
6

 
Noncompensation expense
426

 
424

 
419

 
421

 
429

 
—

 
(1
)
 
 
850

 
852

 
—

 
TOTAL NONINTEREST EXPENSE
864

 
873

 
845

 
853

 
844

 
(1
)
 
2

 
 
1,737

 
1,688

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
1,318

 
1,375

 
1,355

 
1,433

 
1,429

 
(4
)
 
(8
)
 
 
2,693

 
2,756

 
(2
)
 
Income tax expense
322

 
322

 
319

 
344

 
342

 
—

 
(6
)
 
 
644

 
644

 
—

 
NET INCOME
$
996

 
$
1,053

 
$
1,036

 
$
1,089

 
$
1,087

 
(5
)
 
(8
)
 
 
$
2,049

 
$
2,112

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by product
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lending
$
1,012

 
$
1,012

 
$
997

 
$
1,027

 
$
1,026

 
—

 
(1
)
 
 
$
2,024

 
$
2,025

 
—

 
Treasury services
989

 
1,029

 
1,055

 
1,021

 
1,026

 
(4
)
 
(4
)
 
 
2,018

 
1,998

 
1

 
Investment banking (c)
193

 
289

 
208

 
206

 
254

 
(33
)
 
(24
)
 
 
482

 
438

 
10

 
Other
17

 
8

 
46

 
17

 
10

 
113

 
70

 
 
25

 
21

 
19

 
Total Commercial Banking net revenue (b)
$
2,211

 
$
2,338

 
$
2,306

 
$
2,271

 
$
2,316

 
(5
)
 
(5
)
 
 
$
4,549

 
$
4,482

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment banking revenue, gross (d)
$
592

 
$
818

 
$
602

 
$
581

 
$
739

 
(28
)
 
(20
)
 
 
$
1,410

 
$
1,308

 
8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by client segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Middle Market Banking
$
939

 
$
951

 
$
959

 
$
935

 
$
919

 
(1
)
 
2

 
 
$
1,890

 
$
1,814

 
4

 
Corporate Client Banking
709

 
816

 
741

 
749

 
807

 
(13
)
 
(12
)
 
 
1,525

 
1,494

 
2

 
Commercial Real Estate Banking (e)
538

 
547

 
568

 
562

 
559

 
(2
)
 
(4
)
 
 
1,085

 
1,119

 
(3
)
 
Other (e)
25

 
24

 
38

 
25

 
31

 
4

 
(19
)
 
 
49

 
55

 
(11
)
 
Total Commercial Banking net revenue (b)
$
2,211

 
$
2,338

 
$
2,306

 
$
2,271

 
$
2,316

 
(5
)
 
(5
)
 
 
$
4,549

 
$
4,482

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE
17

%
19

%
20

%
21

%
21

%
 
 
 
 
 
18

%
20

%
 
 
Overhead ratio
39

 
37

 
37

 
38

 
36

 
 
 
 
 
 
38

 
38

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Effective in the first quarter of 2019, includes revenue from investment banking products, commercial card transactions and asset management fees. The prior period amounts have been revised to conform with the current period presentation.
(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 $100 million , $94 million , $128 million , $107 million and $106 million for the three months ended June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 , and June 30, 2018 , respectively and $194 million and $209 million for the six months ended June 30, 2019 and 2018, respectively
(c)
Includes CB’s share of revenue from investment banking products sold to CB clients through the CIB.
(d)
For discussion of revenue sharing, refer to page 60 of the Firm’s 2018 Form 10-K.
(e)
Effective in the first quarter of 2019, client segment data includes Commercial Real Estate Banking which comprises the former Commercial Term Lending and Real Estate Banking client segments, and Community Development Banking (previously part of Other). The prior period amounts have been revised to conform with the current period presentation.


Page 18


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
COMMERCIAL BANKING
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except headcount and ratio data)
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
220,712

 
$
216,111

 
$
220,229

 
$
217,194

 
$
220,232

 
2
 %
 
—
 %
 
 
$
220,712

 
$
220,232

 
—
 %
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained
208,323

 
204,927

 
204,219

 
205,177

 
205,834

 
2

 
1

 
 
208,323

 
205,834

 
1

 
Loans held-for-sale and loans at fair value
1,284

 
410

 
1,978

 
405

 
1,576

 
213

 
(19
)
 
 
1,284

 
1,576

 
(19
)
 
Total loans
$
209,607

 
$
205,337

 
$
206,197

 
$
205,582

 
$
207,410

 
2

 
1

 
 
$
209,607

 
$
207,410

 
1

 
           Core loans
209,475

 
205,199

 
206,039

 
205,418

 
207,238

 
2

 
1

 
 
209,475

 
207,238

 
1

 
Equity
22,000

 
22,000

 
20,000

 
20,000

 
20,000

 
—

 
10

 
 
22,000

 
20,000

 
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period-end loans by client segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Middle Market Banking
$
56,346

 
$
56,846

 
$
56,656

 
$
57,324

 
$
58,301

 
(1
)
 
(3
)
 
 
$
56,346

 
$
58,301

 
(3
)
 
Corporate Client Banking
51,500

 
46,897

 
48,343

 
46,890

 
48,885

 
10

 
5

 
 
51,500

 
48,885

 
5

 
Commercial Real Estate Banking (a)
100,751

 
100,622

 
100,088

 
100,072

 
98,808

 
—

 
2

 
 
100,751

 
98,808

 
2

 
Other (a)
1,010

 
972

 
1,110

 
1,296

 
1,416

 
4

 
(29
)
 
 
1,010

 
1,416

 
(29
)
 
Total Commercial Banking loans
$
209,607

 
$
205,337

 
$
206,197

 
$
205,582

 
$
207,410

 
2

 
1

 
 
$
209,607

 
$
207,410

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
218,760

 
$
218,297

 
$
218,227

 
$
219,232

 
$
218,396

 
—

 
—

 
 
$
218,530

 
$
217,781

 
—

 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained
206,771

 
204,462

 
205,113

 
205,603

 
204,239

 
1

 
1

 
 
$
205,623

 
203,109

 
1

 
Loans held-for-sale and loans at fair value
701

 
1,634

 
1,610

 
1,617

 
1,381

 
(57
)
 
(49
)
 
 
1,165

 
896

 
30

 
Total loans
$
207,472

 
$
206,096

 
$
206,723

 
$
207,220

 
$
205,620

 
1

 
1

 
 
$
206,788

 
$
204,005

 
1

 
Core loans
207,336

 
205,949

 
206,561

 
207,052

 
205,440

 
1

 
1

 
 
206,646

 
203,809

 
1

 
Client deposits and other third-party liabilities
168,247

 
167,260

 
169,174

 
168,169

 
170,745

 
1

 
(1
)
 
 
167,756

 
173,168

 
(3
)
 
Equity
22,000

 
22,000

 
20,000

 
20,000

 
20,000

 
—

 
10

 
 
22,000

 
20,000

 
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average loans by client segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Middle Market Banking
$
57,155

 
$
56,723

 
$
57,004

 
$
57,258

 
$
57,346

 
1

 
—

 
 
$
56,940

 
$
57,052

 
—

 
Corporate Client Banking
48,656

 
48,141

 
48,167

 
49,004

 
48,150

 
1

 
1

 
 
48,400

 
46,962

 
3

 
Commercial Real Estate Banking (a)
100,671

 
100,264

 
100,320

 
99,627

 
98,601

 
—

 
2

 
 
100,469

 
98,500

 
2

 
Other (a)
990

 
968

 
1,232

 
1,331

 
1,523

 
2

 
(35
)
 
 
979

 
1,491

 
(34
)
 
Total Commercial Banking loans
$
207,472

 
$
206,096

 
$
206,723

 
$
207,220

 
$
205,620

 
1

 
1

 
 
$
206,788

 
$
204,005

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount
11,248

 
11,033

 
11,042

 
10,937

 
10,579

 
2

 
6

 
 
11,248

 
10,579

 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT DATA AND QUALITY STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs/(recoveries)
$
15

 
$
11

 
$
37

 
$
(18
)
 
$
34

 
36

 
(56
)
 
 
$
26

 
$
34

 
(24
)
 
Nonperforming assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans retained (b)
614

 
544

 
511

 
452

 
546

 
13

 
12

 
 
614

 
546

 
12

 
Nonaccrual loans held-for-sale and loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
at fair value
—

 
—

 
—

 
5

 
—

 
—

 
—

 
 
—

 
—

 
—

 
Total nonaccrual loans
614

 
544

 
511

 
457

 
546

 
13

 
12

 
 
614

 
546

 
12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets acquired in loan satisfactions
20

 
—

 
2

 
2

 
2

 
NM

 
NM

 
 
20

 
2

 
NM

 
Total nonperforming assets
634

 
544

 
513

 
459

 
548

 
17

 
16

 
 
634

 
548

 
16

 
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
2,756

 
2,766

 
2,682

 
2,619

 
2,622

 
—

 
5

 
 
2,756

 
2,622

 
5

 
Allowance for lending-related commitments
274

 
250

 
254

 
249

 
243

 
10

 
13

 
 
274

 
243

 
13

 
Total allowance for credit losses
3,030

 
3,016

 
2,936

 
2,868

 
2,865

 
—

 
6

 
 
3,030

 
2,865

 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-off/(recovery) rate (c)
0.03

%
0.02

%
0.07

%
(0.03
)
%
0.07

%
 
 
 
 
 
0.03

%
0.03

%
 
 
Allowance for loan losses to period-end loans retained
1.32

 
1.35

 
1.31

 
1.28

 
1.27

 
 
 
 
 
 
1.32

 
1.27

 
 
 
Allowance for loan losses to nonaccrual loans retained (b)
449

 
508

 
525

 
579

 
480

 
 
 
 
 
 
449

 
480

 
 
 
Nonaccrual loans to period-end total loans
0.29

 
0.26

 
0.25

 
0.22

 
0.26

 
 
 
 
 
 
0.29

 
0.26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Effective in the first quarter of 2019, client segment data includes Commercial Real Estate Banking which comprises the former Commercial Term Lending and Real Estate Banking client segments, and Community Development Banking (previously part of Other). The prior period amounts have been revised to conform with the current period presentation.
(b)
Allowance for loan losses of $125 million , $132 million , $92 million , $105 million and $126 million was held against nonaccrual loans retained at June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 , and June 30, 2018 , 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.
 
 
 
 
JPMCLOGOA10.GIF
ASSET & WEALTH MANAGEMENT
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except ratio and headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset management, administration and commissions
$
2,568

 
$
2,416

 
$
2,548

 
$
2,563

 
$
2,532

 
6
 %
 
1
 %
 
 
$
4,984

 
$
5,060

 
(2
)%
 
All other income
115

 
177

 
(6
)
 
117

 
155

 
(35
)
 
(26
)
 
 
292

 
257

 
14

 
Noninterest revenue
2,683

 
2,593

 
2,542

 
2,680

 
2,687

 
3

 
—

 
 
5,276

 
5,317

 
(1
)
 
Net interest income
876

 
896

 
897

 
879

 
885

 
(2
)
 
(1
)
 
 
1,772

 
1,761

 
1

 
TOTAL NET REVENUE
3,559

 
3,489

 
3,439

 
3,559

 
3,572

 
2

 
—

 
 
7,048

 
7,078

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
2

 
2

 
13

 
23

 
2

 
—

 
—

 
 
4

 
17

 
(76
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense
1,406

 
1,462

 
1,383

 
1,391

 
1,329

 
(4
)
 
6

 
 
2,868

 
2,721

 
5

 
Noncompensation expense
1,190

 
1,185

 
1,238

 
1,194

 
1,237

 
—

 
(4
)
 
 
2,375

 
2,426

 
(2
)
 
TOTAL NONINTEREST EXPENSE
2,596

 
2,647

 
2,621

 
2,585

 
2,566

 
(2
)
 
1

 
 
5,243

 
5,147

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
961

 
840

 
805

 
951

 
1,004

 
14

 
(4
)
 
 
1,801

 
1,914

 
(6
)
 
Income tax expense
242

 
179

 
201

 
227

 
249

 
35

 
(3
)
 
 
421

 
389

 
8

 
NET INCOME
$
719

 
$
661

 
$
604

 
$
724

 
$
755

 
9

 
(5
)
 
 
$
1,380

 
$
1,525

 
(10
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE BY LINE OF BUSINESS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Management
$
1,785

 
$
1,761

 
$
1,723

 
$
1,827

 
$
1,826

 
1

 
(2
)
 
 
$
3,546

 
$
3,613

 
(2
)
 
Wealth Management
1,774

 
1,728

 
1,716

 
1,732

 
1,746

 
3

 
2

 
 
3,502

 
3,465

 
1

 
TOTAL NET REVENUE
$
3,559

 
$
3,489

 
$
3,439

 
$
3,559

 
$
3,572

 
2

 
—

 
 
$
7,048

 
$
7,078

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE
27

%
25

%
26

%
31

%
33

%
 
 
 
 
 
26

%
33

%
 
 
Overhead ratio
73

 
76

 
76

 
73

 
72

 
 
 
 
 
 
74

 
73

 
 
 
Pretax margin ratio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Management
25

 
23

 
25

 
27

 
28

 
 
 
 
 
 
24

 
27

 
 
 
Wealth Management
29

 
25

 
22

 
26

 
28

 
 
 
 
 
 
27

 
27

 
 
 
Asset & Wealth Management
27

 
24

 
23

 
27

 
28

 
 
 
 
 
 
26

 
27

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount
23,683

 
24,347

 
23,920

 
23,747

 
23,141

 
(3
)
 
2

 
 
23,683

 
23,141

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Wealth Management client advisors
2,735

 
2,877

 
2,865

 
2,808

 
2,644

 
(5
)
 
3

 
 
2,735

 
2,644

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 









Page 20


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
ASSET & WEALTH MANAGEMENT
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
172,149

 
$
165,865

 
$
170,024

 
$
166,716

 
$
161,474

 
4
 %
 
7
 %
 
 
$
172,149

 
$
161,474

 
7
 %
 
Loans
149,877

 
143,750

 
147,632

 
143,162

 
138,606

 
4

 
8

 
 
149,877

 
138,606

 
8

 
    Core loans
149,877

 
143,750

 
147,632

 
143,162

 
138,606

 
4

 
8

 
 
149,877

 
138,606

 
8

 
Deposits
136,225

 
143,348

 
138,546

 
130,497

 
131,511

 
(5
)
 
4

 
 
136,225

 
131,511

 
4

 
Equity
10,500

 
10,500

 
9,000

 
9,000

 
9,000

 
—

 
17

 
 
10,500

 
9,000

 
17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
167,544

 
$
167,358

 
$
166,353

 
$
161,982

 
$
158,244

 
—

 
6

 
 
$
167,452

 
$
156,305

 
7

 
Loans
146,494

 
145,406

 
144,434

 
140,558

 
136,710

 
1

 
7

 
 
145,953

 
134,683

 
8

 
    Core loans
146,494

 
145,406

 
144,434

 
140,558

 
136,710

 
1

 
7

 
 
145,953

 
134,683

 
8

 
Deposits
140,317

 
138,235

 
132,486

 
133,021

 
139,557

 
2

 
1

 
 
139,282

 
141,865

 
(2
)
 
Equity
10,500

 
10,500

 
9,000

 
9,000

 
9,000

 
—

 
17

 
 
10,500

 
9,000

 
17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT DATA AND QUALITY STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs
(3
)
 
$
4

 
$
3

 
$
11

 
$
(5
)
 
NM

 
40

 
 
$
1

 
$
(4
)
 
NM

 
Nonaccrual loans
127

 
285

 
263

 
285

 
323

 
(55
)
 
(61
)
 
 
127

 
323

 
(61
)
 
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
331

 
325

 
326

 
317

 
304

 
2

 
9

 
 
331

 
304

 
9

 
Allowance for lending-related commitments
17

 
18

 
16

 
15

 
15

 
(6
)
 
13

 
 
17

 
15

 
13

 
Total allowance for credit losses
348

 
343

 
342

 
332

 
319

 
1

 
9

 
 
348

 
319

 
9

 
Net charge-off/(recovery) rate
(0.01
)
%
0.01

%
0.01

%
0.03

%
(0.01
)
%
 
 
 
 
 
—

%
(0.01
)
%
 
 
Allowance for loan losses to period-end loans
0.22

 
0.23

 
0.22

 
0.22

 
0.22

 
 
 
 
 
 
0.22

 
0.22

 
 
 
Allowance for loan losses to nonaccrual loans
261

 
114

 
124

 
111

 
94

 
 
 
 
 
 
261

 
94

 
 
 
Nonaccrual loans to period-end loans
0.08

 
0.20

 
0.18

 
0.20

 
0.23

 
 
 
 
 
 
0.08

 
0.23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 21


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
ASSET & WEALTH MANAGEMENT
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in billions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
SIX MONTHS ENDED JUNE 30,
 
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Jun 30,
 
 
 
 
 
 
2019 Change
 
CLIENT ASSETS
2019
 
2019
 
2018
 
2018
 
2018
 
2019
 
2018
 
 
2019
 
2018
 
2018
 
Assets by asset class
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquidity
$
481

 
$
476

 
$
480

 
$
463

 
$
448

 
1
%
 
7
%
 
 
$
481

 
$
448

 
7
%
 
Fixed income
543

 
495

 
464

 
457

 
452

 
10

 
20

 
 
543

 
452

 
20

 
Equity
441

 
427

 
384

 
452

 
435

 
3

 
1

 
 
441

 
435

 
1

 
Multi-asset and alternatives
713

 
698

 
659

 
705

 
693

 
2

 
3

 
 
713

 
693

 
3

 
TOTAL ASSETS UNDER MANAGEMENT
2,178

 
2,096

 
1,987

 
2,077

 
2,028

 
4

 
7

 
 
2,178

 
2,028

 
7

 
Custody/brokerage/administration/deposits
820

 
801

 
746

 
790

 
771

 
2

 
6

 
 
820

 
771

 
6

 
TOTAL CLIENT ASSETS
$
2,998

 
$
2,897

 
$
2,733

 
$
2,867

 
$
2,799

 
3

 
7

 
 
$
2,998

 
$
2,799

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Memo:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alternatives client assets (a)
$
177

 
$
172

 
$
171

 
$
172

 
$
172

 
3

 
3

 
 
$
177

 
$
172

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets by client segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private Banking
$
617

 
$
597

 
$
552

 
$
576

 
$
551

 
3

 
12

 
 
$
617

 
$
551

 
12

 
Institutional
991

 
943

 
926

 
945

 
934

 
5

 
6

 
 
991

 
934

 
6

 
Retail
570

 
556

 
509

 
556

 
543

 
3

 
5

 
 
570

 
543

 
5

 
TOTAL ASSETS UNDER MANAGEMENT
$
2,178

 
$
2,096

 
$
1,987

 
$
2,077

 
$
2,028

 
4

 
7

 
 
$
2,178

 
$
2,028

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private Banking
$
1,410

 
$
1,371

 
$
1,274

 
$
1,339

 
$
1,298

 
3

 
9

 
 
$
1,410

 
$
1,298

 
9

 
Institutional
1,013

 
965

 
946

 
967

 
956

 
5

 
6

 
 
1,013

 
956

 
6

 
Retail
575

 
561

 
513

 
561

 
545

 
2

 
6

 
 
575

 
545

 
6

 
TOTAL CLIENT ASSETS
$
2,998

 
$
2,897

 
$
2,733

 
$
2,867

 
$
2,799

 
3

 
7

 
 
$
2,998

 
$
2,799

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets under management rollforward
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
2,096

 
$
1,987

 
$
2,077

 
$
2,028

 
$
2,016

 
 
 
 
 
 
$
1,987

 
$
2,034

 
 
 
Net asset flows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquidity
4

 
(5
)
 
21

 
14

 
17

 
 
 
 
 
 
(1
)
 
(4
)
 
 
 
Fixed income
37

 
19

 
8

 
3

 
(7
)
 
 
 
 
 
 
56

 
(12
)
 
 
 
Equity
(1
)
 
(6
)
 
(6
)
 
1

 
2

 
 
 
 
 
 
(7
)
 
7

 
 
 
Multi-asset and alternatives
—

 
(3
)
 
(5
)
 
4

 
9

 
 
 
 
 
 
(3
)
 
25

 
 
 
Market/performance/other impacts
42

 
104

 
(108
)
 
27

 
(9
)
 
 
 
 
 
 
146

 
(22
)
 
 
 
Ending balance
$
2,178

 
$
2,096

 
$
1,987

 
$
2,077

 
$
2,028

 
 
 
 
 
 
$
2,178

 
$
2,028

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Client assets rollforward
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
2,897

 
$
2,733

 
$
2,867

 
$
2,799

 
$
2,788

 
 
 
 
 
 
$
2,733

 
$
2,789

 
 
 
Net asset flows
52

 
9

 
30

 
33

 
11

 
 
 
 
 
 
61

 
25

 
 
 
Market/performance/other impacts
49

 
155

 
(164
)
 
35

 
—

 
 
 
 
 
 
204

 
(15
)
 
 
 
Ending balance
$
2,998

 
$
2,897

 
$
2,733

 
$
2,867

 
$
2,799

 
 
 
 
 
 
$
2,998

 
$
2,799

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

Page 22


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
CORPORATE
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal transactions
$
(175
)
 
$
(62
)
 
$
(204
)
 
$
(161
)
 
$
83

 
(182
)%
 
NM

 
 
$
(237
)
 
$
(61
)
 
(289
)%
 
Investment securities gains/(losses)
44

 
13

 
(24
)
 
(46
)
 
(80
)
 
238

 
NM

 
 
57

 
(325
)
 
NM

 
All other income
6

 
57

 
185

 
30

 
139

 
(89
)
 
(96
)
 
 
63

 
343

 
(82
)
 
Noninterest revenue
(125
)
 
8

 
(43
)
 
(177
)
 
142

 
NM

 
NM

 
 
(117
)
 
(43
)
 
(172
)
 
Net interest income
447

 
417

 
170

 
74

 
(62
)
 
7

 
NM

 
 
864

 
(109
)
 
NM

 
TOTAL NET REVENUE (a)
322

 
425

 
127

 
(103
)
 
80

 
(24
)
 
303

 
 
747

 
(152
)
 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
(2
)
 
2

 
(1
)
 
2

 
(1
)
 
NM

 
(100
)
 
 
—

 
(5
)
 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE (b)
232

 
211

 
508

 
28

 
279

 
10

 
(17
)
 
 
443

 
366

 
21

 
Income/(loss) before income tax expense/(benefit)
92

 
212

 
(380
)
 
(133
)
 
(198
)
 
(57
)
 
NM

 
 
304

 
(513
)
 
NM

 
Income tax expense/(benefit) (c)
(736
)
 
(39
)
 
197

 
12

 
(62
)
 
NM

 
NM

 
 
(775
)
 
6

 
NM

 
NET INCOME/(LOSS)
$
828

 
$
251

 
$
(577
)
 
$
(145
)
 
$
(136
)
 
230

 
NM

 
 
$
1,079

 
$
(519
)
 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MEMO:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NET REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Treasury and Chief Investment Office (“CIO”)
618

 
511

 
275

 
186

 
87

 
21

 
NM

 
 
1,129

 
49

 
NM

 
Other Corporate
(296
)
 
(86
)
 
(148
)
 
(289
)
 
(7
)
 
(244
)
 
NM

 
 
(382
)
 
(201
)
 
(90
)
 
TOTAL NET REVENUE
$
322

 
$
425

 
$
127

 
$
(103
)
 
$
80

 
(24
)
 
303

 
 
$
747

 
$
(152
)
 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME/(LOSS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Treasury and CIO
462

 
334

 
175

 
96

 
(153
)
 
38

 
NM

 
 
796

 
(340
)
 
NM

 
Other Corporate
366

 
(83
)
 
(752
)
 
(241
)
 
17

 
NM

 
NM

 
 
283

 
(179
)
 
NM

 
TOTAL NET INCOME/(LOSS)
$
828

 
$
251

 
$
(577
)
 
$
(145
)
 
$
(136
)
 
230

 
NM

 
 
$
1,079

 
$
(519
)
 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
821,330

 
$
796,615

 
$
771,787

 
$
742,693

 
$
746,716

 
3

 
10

 
 
$
821,330

 
$
746,716

 
10

 
Loans
1,695

 
1,885

 
1,597

 
1,556

 
1,720

 
(10
)
 
(1
)
 
 
1,695

 
1,720

 
(1
)
 
Core loans (d)
1,695

 
1,885

 
1,597

 
1,556

 
1,720

 
(10
)
 
(1
)
 
 
1,695

 
1,720

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount
37,361

 
37,502

 
37,145

 
36,686

 
35,877

 
—

 
4

 
 
37,361

 
35,877

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SUPPLEMENTAL INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TREASURY and CIO
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities gains/(losses)
$
44

 
$
13

 
$
(24
)
 
$
(46
)
 
$
(80
)
 
238
 %
 
NM

 
 
$
57

 
$
(325
)
 
NM

 
Available-for-sale (“AFS”) investment securities (average)
248,612

 
226,605

 
211,997

 
197,230

 
200,232

 
10

 
24

 
 
237,669

 
202,266

 
18

 
Held-to-maturity (“HTM”) investment securities (average)
30,929

 
31,082

 
31,466

 
31,232

 
30,304

 
—

 
2

 
 
31,005

 
32,152

 
(4
)
 
Investment securities portfolio (average)
$
279,541

 
$
257,687

 
$
243,463

 
$
228,462

 
$
230,536

 
8

 
21

 
 
$
268,674

 
$
234,418

 
15

 
AFS investment securities (period-end)
274,533

 
234,832

 
228,681

 
198,523

 
200,434

 
17

 
37

 
 
274,533

 
200,434

 
37

 
HTM investment securities (period-end)
30,907

 
30,849

 
31,434

 
31,368

 
31,006

 
—

 
—

 
 
30,907

 
31,006

 
—

 
Investment securities portfolio (period-end)
$
305,440

 
$
265,681

 
$
260,115

 
$
229,891

 
$
231,440

 
15

 
32

 
 
$
305,440

 
$
231,440

 
32

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(a)
Included tax-equivalent adjustments, driven by tax-exempt income from municipal bond investments, of $81 million , $86 million , $95 million , $94 million and $95 million for the three months ended June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 and June 30, 2018 , respectively, and $167 million and $193 million for the six months ended June 30, 2019 and 2018 , respectively.
(b)
Included legal expense/(benefit) of $(67) million , $(90) million , $(16) million , $(175) million and $(8) million for the three months ended June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 , and June 30, 2018 , respectively, and $(157) million and $(50) million for the six months ended June 30, 2019 and 2018 , respectively.
(c)
The three and six months ended June 30, 2019 reflected income tax benefits of $742 million and $825 million, respectively, due to the resolution of certain tax audits.
(d)
Average core loans were $1.7 billion for the three months ended June 30, 2019 , $1.6 billion for the three months ended March 31, 2019 , December 31, 2018 , September 30, 2018 , respectively, and $1.7 billion for the three months ended June 30, 2018 , and $1.6 billion and $1.7 billion for the six months ended June 30, 2019 and 2018, respectively.





Page 23


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
CREDIT-RELATED INFORMATION
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Jun 30,
 
 
2019
 
2019
 
2018
 
2018
 
2018
 
2019
 
2018
 
CREDIT EXPOSURE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card loans (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained, excluding PCI loans
$
329,450

 
$
336,508

 
$
349,603

 
$
350,749

 
$
347,610

 
(2
)%
 
(5
)%
 
Loans - PCI
22,242

 
23,207

 
24,034

 
25,209

 
26,977

 
(4
)
 
(18
)
 
Total loans retained
351,692

 
359,715

 
373,637

 
375,958

 
374,587

 
(2
)
 
(6
)
 
Loans held-for-sale
1,030

 
4,199

 
95

 
104

 
110

 
(75
)
 
NM

 
Total consumer, excluding credit card loans
352,722

 
363,914

 
373,732

 
376,062

 
374,697

 
(3
)
 
(6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit card loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained
157,568

 
150,515

 
156,616

 
147,856

 
145,221

 
5

 
9

 
Loans held-for-sale
8

 
12

 
16

 
25

 
34

 
(33
)
 
(76
)
 
Total credit card loans
157,576

 
150,527

 
156,632

 
147,881

 
145,255

 
5

 
8

 
Total consumer loans
510,298

 
514,441

 
530,364

 
523,943

 
519,952

 
(1
)
 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wholesale loans (b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained
438,468

 
433,611

 
439,162

 
423,837

 
420,632

 
1

 
4

 
Loans held-for-sale and loans at fair value
8,123

 
8,193

 
15,028

 
6,538

 
7,830

 
(1
)
 
4

 
Total wholesale loans
446,591

 
441,804

 
454,190

 
430,375

 
428,462

 
1

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans
956,889

 
956,245

 
984,554

 
954,318

 
948,414

 
—

 
1

 
Derivative receivables
52,878

 
50,333

 
54,213

 
60,062

 
58,510

 
5

 
(10
)
 
Receivables from customers and other (c)
27,414

 
20,952

 
30,217

 
26,137

 
27,607

 
31

 
(1
)
 
Total credit-related assets
1,037,181

 
1,027,530

 
1,068,984

 
1,040,517

 
1,034,531

 
1

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lending-related commitments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card
51,491

 
48,922

 
46,066

 
50,630

 
51,784

 
5

 
(1
)
 
Credit card
633,970

 
626,922

 
605,379

 
600,728

 
592,452

 
1

 
7

 
Wholesale
394,301

 
384,957

 
387,813

 
397,316

(f)
401,757

 
2

 
(2
)
 
Total lending-related commitments
1,079,762

 
1,060,801

 
1,039,258

 
1,048,674

 
1,045,993

 
2

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total credit exposure
$
2,116,943

 
$
2,088,331

 
$
2,108,242

 
$
2,089,191

 
$
2,080,524

 
1

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Memo: Total by category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer exposure (d)
$
1,195,780

 
$
1,190,305

 
$
1,181,963

 
$
1,175,456

 
$
1,164,341

 
—

 
3

 
Wholesale exposures (e)
921,163

 
898,026

 
926,279

 
913,735

 
916,183

 
3

 
1

 
Total credit exposure
$
2,116,943

 
$
2,088,331

 
$
2,108,242

 
$
2,089,191

 
$
2,080,524

 
1

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: The Firm provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, refer to page 28 .
(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)
Primarily represents prime brokerage-related held-for-investment customer receivables, which 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 amount has been revised to conform with the current period presentation.

Page 24


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
CREDIT-RELATED INFORMATION, CONTINUED
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Jun 30,
 
 
2019
 
2019
 
2018
 
2018
 
2018
 
2019
 
2018
 
NONPERFORMING ASSETS (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer nonaccrual loans (b)(c)
$
3,262

 
$
3,389

 
$
3,461

 
$
3,636

 
$
3,979

 
(4
)%
 
(18
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wholesale nonaccrual loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained
1,238

 
1,570

 
1,150

 
994

 
1,156

 
(21
)
 
7

 
Loans held-for-sale and loans at fair value
370

 
313

 
220

 
14

 
175

 
18

 
111

 
Total wholesale nonaccrual loans
1,608

 
1,883

 
1,370

 
1,008

 
1,331

 
(15
)
 
21

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total nonaccrual loans
4,870

 
5,272

 
4,831

 
4,644

 
5,310

 
(8
)
 
(8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative receivables
39

 
44

 
60

 
90

 
112

 
(11
)
 
(65
)
 
Assets acquired in loan satisfactions
351

 
300

 
299

 
300

 
345

 
17

 
2

 
Total nonperforming assets
5,260

 
5,616

 
5,190

 
5,034

 
5,767

 
(6
)
 
(9
)
 
Wholesale lending-related commitments (d)
465

 
455

 
469

 
252

 
712

 
2

 
(35
)
 
Total nonperforming exposure
$
5,725

 
$
6,071

 
$
5,659

 
$
5,286

 
$
6,479

 
(6
)
 
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONACCRUAL LOAN-RELATED RATIOS
 
 
 
 
 
 
 
 
 
 
 
Total nonaccrual loans to total loans
0.51
%
 
0.55
%
 
0.49
%
 
0.49
%
 
0.56
%
 
 
 
 
 
Total consumer, excluding credit card nonaccrual loans to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
total consumer, excluding credit card loans
0.92

 
0.93

 
0.93

 
0.97

 
1.06

 
 
 
 
 
Total wholesale nonaccrual loans to total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wholesale loans
0.36

 
0.43

 
0.30

 
0.23

 
0.31

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
At June 30, 2019 , March 31, 2019 , December 31, 2018 , September 30, 2018 , and June 30, 2018 , nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $1.8 billion , $2.2 billion , $2.6 billion , $2.9 billion and $3.3 billion , respectively, that are 90 or more days past due; and (2) real estate owned (“REO”) insured by U.S. government agencies of $56 million , $69 million , $75 million , $78 million and $84 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”). For additional information on the Firm’s credit card nonaccrual and charge-off policies, refer to Note 12 of the Firm’s 2018 Form 10-K.
(b)
Included nonaccrual loans held-for-sale of $31 million at June 30, 2019. There were no nonaccrual loans held-for-sale in all other periods presented.
(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.
 
 
 
 
JPMCLOGOA10.GIF
CREDIT-RELATED INFORMATION, CONTINUED
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
SUMMARY OF CHANGES IN THE ALLOWANCES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
13,533

 
$
13,445

 
$
13,128

 
$
13,250

 
$
13,375

 
1
 %
 
1
 %
 
 
$
13,445

 
$
13,604

 
(1
)%
 
Net charge-offs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross charge-offs
1,704

 
1,642

 
1,532

 
1,459

 
1,718

 
4

 
(1
)
 
 
3,346

 
3,358

 
—

 
Gross recoveries
(301
)
 
(281
)
 
(296
)
 
(426
)
 
(466
)
 
(7
)
 
35

 
 
(582
)
 
(771
)
 
25

 
Net charge-offs
1,403

 
1,361

 
1,236

 
1,033

 
1,252

 
3

 
12

 
 
2,764

 
2,587

 
7

 
Write-offs of PCI loans (a)
39

 
50

 
36

 
58

 
73

 
(22
)
 
(47
)
 
 
89

 
93

 
(4
)
 
Provision for loan losses
1,077

 
1,492

 
1,591

 
968

 
1,199

 
(28
)
 
(10
)
 
 
2,569

 
2,326

 
10

 
Other
(2
)
 
7

 
(2
)
 
1

 
1

 
NM

 
NM

 
 
5

 
—

 
NM

 
Ending balance
$
13,166

 
$
13,533

 
$
13,445

 
$
13,128

 
$
13,250

 
(3
)
 
(1
)
 
 
$
13,166

 
$
13,250

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LENDING-RELATED COMMITMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
1,058

 
$
1,055

 
$
1,097

 
$
1,117

 
$
1,107

 
—

 
(4
)
 
 
$
1,055

 
$
1,068

 
(1
)
 
Provision for lending-related commitments
72

 
3

 
(43
)
 
(20
)
 
11

 
NM

 
NM

 
 
75

 
49

 
53

 
Other
(1
)
 
—

 
1

 
—

 
(1
)
 
NM

 
—

 
 
(1
)
 
—

 
NM

 
Ending balance
$
1,129

 
$
1,058

 
$
1,055

 
$
1,097

 
$
1,117

 
7

 
1

 
 
$
1,129

 
$
1,117

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total allowance for credit losses
$
14,295

 
$
14,591

 
$
14,500

 
$
14,225

 
$
14,367

 
(2
)
 
(1
)
 
 
$
14,295

 
$
14,367

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET CHARGE-OFF/(RECOVERY) RATES   (b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer retained, excluding credit card loans
0.09
%
 
0.13
%
 
0.09
%
 
0.01
 %
 
(0.06
)%
 
 
 
 
 
 
0.11
%
 
0.05
%
 
 
 
Credit card retained loans
3.24

 
3.23

 
2.93

 
2.91

 
3.27

 
 
 
 
 
 
3.23

 
3.30

 
 
 
Total consumer retained loans
1.04

 
1.02

 
0.91

 
0.82

 
0.86

 
 
 
 
 
 
1.03

 
0.95

 
 
 
Wholesale retained loans
0.08

 
0.04

 
0.03

 
(0.04
)
 
0.14

 
 
 
 
 
 
0.06

 
0.08

 
 
 
Total retained loans
0.60

 
0.58

 
0.52

 
0.43

 
0.54

 
 
 
 
 
 
0.59

 
0.56

 
 
 
Consumer retained loans, excluding credit card and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PCI loans
0.09

 
0.13

 
0.10

 
0.01

 
(0.07
)
 
 
 
 
 
 
0.11

 
0.05

 
 
 
Consumer retained loans, excluding PCI loans
1.09

 
1.07

 
0.95

 
0.86

 
0.91

 
 
 
 
 
 
1.08

 
1.00

 
 
 
Total retained, excluding PCI loans
0.61

 
0.59

 
0.53

 
0.45

 
0.56

 
 
 
 
 
 
0.60

 
0.58

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Memo: Average retained loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer retained, excluding credit card loans
$
356,568

 
$
370,777

 
$
374,686

 
$
375,742

 
$
374,377

 
(4
)
 
(5
)
 
 
$
363,634

 
$
373,562

 
(3
)
 
Credit card retained loans
153,736

 
151,120

 
150,574

 
146,244

 
142,685

 
2

 
8

 
 
152,435

 
142,757

 
7

 
Total average retained consumer loans
510,304

 
521,897

 
525,260

 
521,986

 
517,062

 
(2
)
 
(1
)
 
 
516,069

 
516,319

 
—

 
Wholesale retained loans
434,905

 
434,660

 
426,594

 
420,597

 
414,980

 
—

 
5

 
 
434,783

 
409,949

 
6

 
Total average retained loans
$
945,209

 
$
956,557

 
$
951,854

 
$
942,583

 
$
932,042

 
(1
)
 
1

 
 
$
950,852

 
$
926,268

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer retained, excluding credit card and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PCI loans
$
333,854

 
$
347,145

 
$
350,053

 
$
349,367

 
$
345,601

 
(4
)
 
(3
)
 
 
$
340,463

 
$
344,153

 
(1
)
 
Consumer retained, excluding PCI loans
487,590

 
498,265

 
500,627

 
495,611

 
488,286

 
(2
)
 
—

 
 
492,898

 
486,910

 
1

 
Total retained, excluding PCI loans
922,495

 
932,925

 
927,218

 
916,205

 
903,263

 
(1
)
 
2

 
 
927,681

 
896,856

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.
(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.

Page 26


JPMORGAN CHASE & CO.
 
 
 
 
JPMCLOGOA10.GIF
CREDIT-RELATED INFORMATION, CONTINUED
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Jun 30,
 
 
2019
 
2019
 
2018
 
2018
 
2018
 
2019
 
2018
 
ALLOWANCE COMPONENTS AND RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-specific (a)
$
145

 
$
151

 
$
196

 
$
204

 
$
226

 
(4
)%
 
(36
)%
 
Formula-based
2,215

 
2,208

 
2,162

 
2,154

 
2,130

 
—

 
4

 
PCI
1,299

 
1,738

 
1,788

 
1,824

 
2,132

 
(25
)
 
(39
)
 
Total consumer, excluding credit card
3,659

 
4,097

 
4,146

 
4,182

 
4,488

 
(11
)
 
(18
)
 
Credit card
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-specific (b)
472

 
461

 
440

 
421

 
402

 
2

 
17

 
Formula-based
4,911

 
4,722

 
4,744

 
4,613

 
4,482

 
4

 
10

 
Total credit card
5,383

 
5,183

 
5,184

 
5,034

 
4,884

 
4

 
10

 
Total consumer
9,042

 
9,280

 
9,330

 
9,216

 
9,372

 
(3
)
 
(4
)
 
Wholesale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-specific (a)
288

 
417

 
297

 
280

 
318

 
(31
)
 
(9
)
 
Formula-based
3,836

 
3,836

 
3,818

 
3,632

 
3,560

 
—

 
8

 
Total wholesale
4,124

 
4,253

 
4,115

 
3,912

 
3,878

 
(3
)
 
6

 
Total allowance for loan losses
13,166

 
13,533

 
13,445

 
13,128

 
13,250

 
(3
)
 
(1
)
 
Allowance for lending-related commitments
1,129

 
1,058

 
1,055

 
1,097

 
1,117

 
7

 
1

 
Total allowance for credit losses
$
14,295

 
$
14,591

 
$
14,500

 
$
14,225

 
$
14,367

 
(2
)
 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card allowance, to total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
consumer, excluding credit card retained loans
1.04
%

1.14
%

1.11
%

1.11
%

1.20
%

 
 
 
 
Credit card allowance to total credit card retained loans
3.42

 
3.44

 
3.31

 
3.40

 
3.36

 
 
 
 
 
Wholesale allowance to total wholesale retained loans
0.94

 
0.98

 
0.94

 
0.92

 
0.92

 
 
 
 
 
Wholesale allowance to total wholesale retained loans,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
excluding trade finance and conduits (c)
1.02

 
1.06

 
1.01

 
0.99

 
1.00

 
 
 
 
 
Total allowance to total retained loans
1.39

 
1.43

 
1.39

 
1.39

 
1.41

 
 
 
 
 
Consumer, excluding credit card allowance, to consumer,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
excluding credit card retained nonaccrual loans (d)
113

 
121

 
120

 
115

 
113

 
 
 
 
 
Total allowance, excluding credit card allowance, to retained
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 nonaccrual loans, excluding credit card nonaccrual loans (d)
174

 
168

 
179

 
175

 
163

 
 
 
 
 
Wholesale allowance to wholesale retained nonaccrual loans
333

 
271

 
358

 
394

 
335

 
 
 
 
 
Total allowance to total retained nonaccrual loans
295

 
273

 
292

 
284

 
258

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT RATIOS, excluding PCI loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card allowance, to total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
consumer, excluding credit card retained loans
0.72

 
0.70

 
0.67

 
0.67

 
0.68

 
 
 
 
 
Total allowance to total retained loans
1.28

 
1.28

 
1.23

 
1.23

 
1.22

 
 
 
 
 
Consumer, excluding credit card allowance, to consumer,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
excluding credit card retained nonaccrual loans (d)
73

 
70

 
68

 
65

 
59

 
 
 
 
 
Allowance, excluding credit card allowance, to retained non-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
accrual loans, excluding credit card nonaccrual loans (d)
145

 
133

 
140

 
135

 
121

 
 
 
 
 
Total allowance to total retained nonaccrual loans
266

 
238

 
253

 
244

 
217

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.
 
 
 
 
JPMCLOGOA10.GIF
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
 
 
SIX MONTHS ENDED JUNE 30,
 
 
 
 
 
 
 
 
 
 
 
 
2Q19 Change
 
 
 
 
 
 
2019 Change
 
 
2Q19
 
1Q19
 
4Q18
 
3Q18
 
2Q18
 
1Q19
 
2Q18
 
 
2019
 
2018
 
2018
 
NET INTEREST INCOME EXCLUDING CIB’s MARKETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income - managed basis (a)(b)
$
14,536

 
$
14,596

 
$
14,509

 
$
14,062

 
$
13,646

 
—
 %
 
7
 %
 
 
$
29,132

 
$
27,116

 
7
 %
 
Less: CIB Markets net interest income
624

 
624

 
599

 
704

 
754

 
—

 
(17
)
 
 
1,248

 
1,784

 
(30
)
 
Net interest income excluding CIB Markets (a)
$
13,912

 
$
13,972

 
$
13,910

 
$
13,358

 
$
12,892

 
—

 
8

 
 
$
27,884

 
$
25,332

 
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average interest-earning assets (c)
$
2,339,094

 
$
2,298,894

 
$
2,254,449

 
$
2,203,305

 
$
2,206,005

 
2
 %
 
6
 %
 
 
$
2,319,105

 
2,196,675

 
6
 %
 
Less: Average CIB Markets interest-earning assets (c)
673,480

 
649,180

 
605,730

 
596,784

 
595,160

 
4

 
13

 
 
661,397

 
$
585,322

 
13

 
Average interest-earning assets excluding CIB Markets
$
1,665,614

 
$
1,649,714

 
$
1,648,719

 
$
1,606,521

 
$
1,610,845

 
1

 
3

 
 
$
1,657,708

 
$
1,611,353

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest yield on average interest-earning assets
- managed basis (c)
2.49
%
 
2.57
%
 
2.55
%
 
2.53
%
 
2.48
%
 
 
 
 
 
 
2.53
%
 
2.49
%
 
 
 
Net interest yield on average CIB Markets interest-earning assets (c)
0.37
%
 
0.39
%
 
0.39
%
 
0.47
%
 
0.51
%
 
 
 
 
 
 
0.38
%
 
0.61
%
 
 
 
Net interest yield on average interest-earning assets excluding CIB Markets
3.35
%
 
3.43
%
 
3.35
%
 
3.30
%
 
3.21
%
 
 
 
 
 
 
3.39
%
 
3.17
%
 
 
 
(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 .
(c) In the second quarter of 2019, the Firm reclassified balances related to certain instruments from interest-earning to noninterest-earning assets, as the associated returns are recorded in principal transactions revenue and not in net interest income. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.
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.

Page 28