EX-99.2 5 a1q16erfexhibit992suppleme.htm EARNINGS RELEASE FINANCIAL SUPPLEMENT - 1Q16 Exhibit











EARNINGS RELEASE FINANCIAL SUPPLEMENT

FIRST QUARTER 2016

 




JPMORGAN CHASE & CO.
 
 
 
 
 
TABLE OF CONTENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page(s)
 
Consolidated Results
 
 
 
 
 
 
 
 
 
 
 
Consolidated Financial Highlights
 
 
 
 
 
 
 
 
 
2–3
 
Consolidated Statements of Income
 
 
 
 
 
 
 
 
 
4
 
Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
5
 
Condensed Average Balance Sheets and Annualized Yields
 
 
 
 
 
 
 
 
 
6
 
Reconciliation from Reported to Managed Basis
 
 
 
 
 
 
 
 
 
7
 
Segment Results - Managed Basis
 
 
 
 
 
 
 
 
 
8
 
Capital and Other Selected Balance Sheet Items
 
 
 
 
 
 
 
 
 
9
 
Earnings Per Share and Related Information
 
 
 
 
 
 
 
 
 
10
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Segment Results
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
 
 
 
 
 
 
 
 
 
11–14
 
Corporate & Investment Bank
 
 
 
 
 
 
 
 
 
15–17
 
Commercial Banking
 
 
 
 
 
 
 
 
 
18–19
 
Asset Management
 
 
 
 
 
 
 
 
 
20–22
 
Corporate
 
 
 
 
 
 
 
 
 
23
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit-Related Information
 
 
 
 
 
 
 
 
 
24–27
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Financial Measures and Other Notes
 
 
 
 
 
 
 
 
 
28
 
Glossary of Terms (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Refer to the Glossary of Terms on pages 311–315 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Annual Report”).






JPMORGAN CHASE & CO.
 
 
 
 
CONSOLIDATED FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except per share and ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
 
SELECTED INCOME STATEMENT DATA
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
 
 
Reported Basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
$
23,239

 
$
22,885

 
$
22,780

 
$
23,812

 
$
24,066

 
2
 %

(3
)%

 

Total noninterest expense
13,837

 
14,263

 
15,368

 
14,500

 
14,883

 
(3
)
 
(7
)
 
 
 
Pre-provision profit
9,402

 
8,622

 
7,412

 
9,312

 
9,183

 
9

 
2

 
 
 
Provision for credit losses
1,824

 
1,251

 
682

 
935

 
959

 
46

 
90

 
 
 
NET INCOME
5,520

 
5,434

 
6,804

 
6,290

 
5,914

 
2

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Managed Basis (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
24,083

 
23,747

 
23,535

 
24,531

 
24,820

 
1

 
(3
)
 
 
 
Total noninterest expense
13,837

 
14,263

 
15,368

 
14,500

 
14,883

 
(3
)
 
(7
)
 
 
 
Pre-provision profit
10,246

 
9,484

 
8,167

 
10,031

 
9,937

 
8

 
3

 
 
 
Provision for credit losses
1,824

 
1,251

 
682

 
935

 
959

 
46

 
90

 
 
 
NET INCOME
5,520

 
5,434

 
6,804

 
6,290

 
5,914

 
2

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income: Basic
$
1.36

 
$
1.34

 
$
1.70

 
$
1.56

 
$
1.46

 
1

 
(7
)
 
 
 
 Diluted
1.35

 
1.32

 
1.68

 
1.54

 
1.45

 
2

 
(7
)
 
 
 
Average shares: Basic
3,669.9

 
3,674.2

 
3,694.4

 
3,707.8

 
3,725.3

 

 
(1
)
 
 
 
 Diluted
3,696.9

 
3,704.6

 
3,725.6

 
3,743.6

 
3,757.5

 

 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MARKET AND PER COMMON SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Market capitalization
$
216,547

 
$
241,899

 
$
224,438

 
$
250,581

 
$
224,818

 
(10
)
 
(4
)
 
 
 
Common shares at period-end
3,656.7

 
3,663.5

 
3,681.1

 
3,698.1

 
3,711.1

 

 
(1
)
 
 
 
Closing share price (b)
$
59.22

 
$
66.03

 
$
60.97

 
$
67.76

 
$
60.58

 
(10
)
 
(2
)
 
 
 
Book value per share
61.28

 
60.46

 
59.67

 
58.49

 
57.77

 
1

 
6

 
 
 
Tangible book value per share (c)
48.96

 
48.13

 
47.36

 
46.13

 
45.45

 
2

 
8

 
 
 
Cash dividends declared per share
0.44

 
0.44

 
0.44

 
0.44

(h)
0.40

 

 
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS (d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on common equity (“ROE”)
9
%

9
%

12
%

11
%
 
11
%
 
 
 
 
 
 
 
Return on tangible common equity (“ROTCE”) (c)
12

 
11

 
15

 
14

 
14

 
 
 
 
 
 
 
Return on assets
0.93

 
0.90

 
1.11

 
1.01

 
0.94

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
High quality liquid assets (“HQLA”) (in billions) (e)
$
505

(g)
$
496

 
$
505

 
$
532

 
$
614

 
2

 
(18
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL RATIOS (f)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 (“CET1”) capital ratio
11.8
%
(g)
11.8
%
 
11.5
%
 
11.2
%
 
10.7
%
 
 
 
 
 
 
 
Tier 1 capital ratio
13.5

(g)
13.5

 
13.3

 
12.8

 
12.1

 
 
 
 
 
 
 
Total capital ratio
15.1

(g)
15.1

 
14.9

 
14.4

 
13.6

 
 
 
 
 
 
 
Tier 1 leverage ratio
8.6

(g)
8.5

 
8.4

 
8.0

 
7.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Effective January 1, 2016, the Firm adopted new accounting guidance related to (1) the recognition and measurement of debit valuation adjustments ("DVA") on financial liabilities where the fair value option has been elected, and (2) the accounting for share-based payments. For additional information, see Notes 1 and 2 on page 28.

(a)
For a further discussion of managed basis, see Reconciliation from Reported to Managed Basis on page 7.
(b)
Share price shown is from the New York Stock Exchange.
(c)
Tangible book value per share and ROTCE are non-GAAP financial measures. Tangible book value per share represents tangible common equity (“TCE”) divided by common shares at period-end. ROTCE measures the Firm’s annualized earnings as a percentage of average TCE. For further discussion of these measures, see page 28.
(d)
Quarterly ratios are based upon annualized amounts.
(e)
HQLA represents the amount of assets that qualify for inclusion in the liquidity coverage ratio under the final U.S. rule (“U.S. LCR”). For additional information on HQLA and LCR, see page 160 of the 2015 Annual Report.
(f)
Ratios presented are calculated under the Basel III Transitional capital rules and represent the Collins Floor. See footnote (a) on page 9 for additional information on Basel III and the Collins Floor.
(g)
Estimated.
(h)
On May 19, 2015, the Board of Directors increased the quarterly common stock dividend from $0.40 to $0.44 per share.

Page 2



JPMORGAN CHASE & CO.
 
 
 
 
CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
(in millions, except ratio and headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
 
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
2,423,808

 
$
2,351,698

 
$
2,416,635

 
$
2,449,098

 
$
2,576,619

 
3
 %
 
(6
)%
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card loans
354,192

 
344,821

 
331,969

 
318,286

 
305,215

 
3

 
16

 
 
 
Credit card loans
126,090

 
131,463

 
126,979

 
126,025

 
123,257

 
(4
)
 
2

 
 
 
Wholesale loans
367,031

 
361,015

 
350,509

 
346,936

 
335,713

 
2

 
9

 
 
 
Total Loans
847,313

 
837,299

 
809,457

 
791,247

 
764,185

 
1

 
11

 
 
 
           Core loans (a)
746,196

 
732,093

 
698,988

 
674,767

 
641,285

 
2

 
16

 
 
 
Core loans (average) (a)
737,297

 
715,282

 
680,224

 
654,551

 
631,955

 
3

 
17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. offices:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing
383,282

 
392,721

 
404,984

 
432,052

 
441,245

 
(2
)
 
(13
)
 
 
 
Interest-bearing
695,667

 
663,004

 
624,014

 
611,438

 
644,228

 
5

 
8

 
 
 
Non-U.S. offices:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing
20,913

 
18,921

 
20,174

 
21,777

 
18,484

 
11

 
13

 
 
 
Interest-bearing
221,954

 
205,069

 
223,934

 
222,065

 
263,930

 
8

 
(16
)
 
 
 
Total deposits
1,321,816

 
1,279,715

 
1,273,106

 
1,287,332

 
1,367,887

 
3

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt (b)
290,754

 
288,651

 
292,503

 
286,240

 
280,123

 
1

 
4

 
 
 
Common stockholders’ equity
224,089

 
221,505

 
219,660

 
216,287

 
214,371

 
1

 
5

 
 
 
Total stockholders’ equity
250,157

 
247,573

 
245,728

 
241,205

 
235,864

 
1

 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans-to-deposits ratio
64

%
65

%
64

%
61

%
56

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount
237,420

 
234,598

 
235,678

 
237,459

 
241,145

 
1

 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
95% CONFIDENCE LEVEL- TOTAL VaR (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average VaR
$
54

 
$
49

 
$
54

 
$
42

 
$
43

 
10

 
26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LINE OF BUSINESS NET REVENUE (d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
11,117

 
$
11,222

 
$
10,879

 
$
11,015

 
$
10,704

 
(1
)
 
4

 
 
 
Corporate & Investment Bank
8,135

 
7,069

 
8,168

 
8,723

 
9,582

 
15

 
(15
)
 
 
 
Commercial Banking
1,803

 
1,760

 
1,644

 
1,739

 
1,742

 
2

 
4

 
 
 
Asset Management
2,972

 
3,045

 
2,894

 
3,175

 
3,005

 
(2
)
 
(1
)
 
 
 
Corporate
56

 
651

 
(50
)
 
(121
)
 
(213
)
 
(91
)
 
NM

 
 
 
TOTAL NET REVENUE
$
24,083

 
$
23,747

 
$
23,535

 
$
24,531

 
$
24,820

 
1

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LINE OF BUSINESS NET INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
2,490

 
$
2,407

 
$
2,630

 
$
2,533

 
$
2,219

 
3

 
12

 
 
 
Corporate & Investment Bank
1,979

 
1,748

 
1,464

 
2,341

 
2,537

 
13

 
(22
)
 
 
 
Commercial Banking
496

 
550

 
518

 
525

 
598

 
(10
)
 
(17
)
 
 
 
Asset Management
587

 
507

 
475

 
451

 
502

 
16

 
17

 
 
 
Corporate
(32
)
 
222

 
1,717

 
440

 
58

 
NM

 
NM

 
 
 
NET INCOME
$
5,520

 
$
5,434

 
$
6,804

 
$
6,290

 
$
5,914

 
2

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
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.
(b)
Included unsecured long-term debt of $216.1 billion, $211.8 billion, $214.6 billion, $209.1 billion and $209.0 billion for the periods ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively.
(c)
As part of the Firm’s continuous evaluation and periodic enhancement of its VaR model calculations, during the second quarter of 2015 the Firm refined the historical proxy time series inputs to certain VaR models to more appropriately reflect the risk exposure from certain asset-backed products. Had these new time series been used as inputs into these VaR models in the first quarter of 2015, the Firm estimates they would have resulted in a reduction to average total VaR of $3 million. For information regarding CIB VaR, see Corporate & Investment Bank on page 17.
(d)
For a further discussion of managed basis, see Reconciliation from Reported to Managed Basis on page 7.

Page 3



JPMORGAN CHASE & CO.
 
 
 
 
CONSOLIDATED STATEMENTS OF INCOME
 
 
 
 
(in millions, except per share and ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
 
REVENUE
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
 
 
Investment banking fees
$
1,333

 
$
1,520

 
$
1,604

 
$
1,833

 
$
1,794

 
(12
)%
 
(26
)%
 
 
 
Principal transactions
2,679

 
1,552

 
2,367

 
2,834

 
3,655

 
73

 
(27
)
 
 
 
Lending- and deposit-related fees
1,403

 
1,450

 
1,463

 
1,418

 
1,363

 
(3
)
 
3

 
 
 
Asset management, administration and commissions
3,624

 
3,842

 
3,845

 
4,015

 
3,807

 
(6
)
 
(5
)
 
 
 
Securities gains
51

 
73

 
33

 
44

 
52

 
(30
)
 
(2
)
 
 
 
Mortgage fees and related income
667

 
556

 
469

 
783

 
705

 
20

 
(5
)
 
 
 
Card income
1,301

 
1,431

 
1,447

 
1,615

 
1,431

 
(9
)
 
(9
)
 
 
 
Other income
801

 
1,236

 
628

 
586

 
582

 
(35
)
 
38

 
 
 
Noninterest revenue
11,859

 
11,660

 
11,856

 
13,128

 
13,389

 
2

 
(11
)
 
 
 
Interest income
13,552

 
13,155

 
12,739

 
12,514

 
12,565

 
3

 
8

 
 
 
Interest expense
2,172

 
1,930

 
1,815

 
1,830

 
1,888

 
13

 
15

 
 
 
Net interest income
11,380

 
11,225

 
10,924

 
10,684

 
10,677

 
1

 
7

 
 
 
TOTAL NET REVENUE
23,239

 
22,885

 
22,780

 
23,812

 
24,066

 
2

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
1,824

 
1,251

 
682

 
935

 
959

 
46

 
90

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense
7,660

 
6,693

 
7,320

 
7,694

 
8,043

 
14

 
(5
)
 
 
 
Occupancy expense
883

 
947

 
965

 
923

 
933

 
(7
)
 
(5
)
 
 
 
Technology, communications and equipment expense
1,618

 
1,657

 
1,546

 
1,499

 
1,491

 
(2
)
 
9

 
 
 
Professional and outside services
1,548

 
1,824

 
1,776

 
1,768

 
1,634

 
(15
)
 
(5
)
 
 
 
Marketing
703

 
771

 
704

 
642

 
591

 
(9
)
 
19

 
 
 
Other expense (a)
1,425

 
2,371

 
3,057

 
1,974

 
2,191

 
(40
)
 
(35
)
 
 
 
TOTAL NONINTEREST EXPENSE
13,837

 
14,263

 
15,368

 
14,500

 
14,883

 
(3
)
 
(7
)
 
 
 
Income before income tax expense
7,578

 
7,371

 
6,730

 
8,377

 
8,224

 
3

 
(8
)
 
 
 
Income tax expense/(benefit) (b)
2,058

 
1,937

 
(74
)
 
2,087

 
2,310

 
6

 
(11
)
 
 
 
NET INCOME
$
5,520

 
$
5,434

 
$
6,804

 
$
6,290

 
$
5,914

 
2

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME PER COMMON SHARE DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
$
1.36

 
$
1.34

 
$
1.70

 
$
1.56

 
$
1.46

 
1

 
(7
)
 
 
 
Diluted earnings per share
1.35

 
1.32

 
1.68

 
1.54

 
1.45

 
2

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on common equity (c)
9
%
 
9
%
 
12
 %
 
11
%
 
11
%
 
 
 
 
 
 
 
Return on tangible common equity (c)(d)
12

 
11

 
15

 
14

 
14

 
 
 
 
 
 
 
Return on assets (c)
0.93

 
0.90

 
1.11

 
1.01

 
0.94

 
 
 
 
 
 
 
Effective income tax rate (b)
27.2

 
26.3

 
(1.1
)
 
24.9

 
28.1

 
 
 
 
 
 
 
Overhead ratio
60

 
62

 
67

 
61

 
62

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See notes 1 and 2 on page 28.

(a)
Included Firmwide legal expense of $644 million, $1.3 billion, $291 million and $687 million for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively; legal expense for the three months ended March 31, 2016 was not material.
(b)
The three months ended September 30, 2015 reflected tax benefits of $2.2 billion, which reduced the Firm’s effective tax rate by 32.0%. The recognition of tax benefits in 2015 resulted from the resolution of various tax audits, as well as the release of U.S. deferred taxes associated with the restructuring of certain non-U.S. entities.
(c)
Quarterly ratios are based upon annualized amounts.
(d)
For further discussion of ROTCE see pages 2 and 28.

Page 4



JPMORGAN CHASE & CO.
 
 
 
 
CONSOLIDATED BALANCE SHEETS
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mar 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Mar 31,
 
 
2016
 
2015
 
2015
 
2015
 
2015
 
2015
 
2015
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
18,212

 
$
20,490

 
$
21,258

 
$
24,095

 
$
22,821

 
(11
)%
 
(20
)%
 
Deposits with banks
360,196

 
340,015

 
376,196

 
398,807

 
506,383

 
6

 
(29
)
 
Federal funds sold and securities purchased under
 
 
 
 
 
 
 
 
 
 
 
 
 
 
resale agreements
223,220

 
212,575

 
218,467

 
212,850

 
219,344

 
5

 
2

 
Securities borrowed
102,937

 
98,721

 
105,668

 
98,528

 
108,376

 
4

 
(5
)
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and equity instruments
295,944

 
284,162

 
293,040

 
310,419

 
317,407

 
4

 
(7
)
 
Derivative receivables
70,209

 
59,677

 
68,668

 
67,451

 
81,574

 
18

 
(14
)
 
Securities
285,323

 
290,827

 
306,660

 
317,795

 
331,136

 
(2
)
 
(14
)
 
Loans
847,313

 
837,299

 
809,457

 
791,247

 
764,185

 
1

 
11

 
Less: Allowance for loan losses
13,994

 
13,555

 
13,466

 
13,915

 
14,065

 
3

 
(1
)
 
Loans, net of allowance for loan losses
833,319

 
823,744

 
795,991

 
777,332

 
750,120

 
1

 
11

 
Accrued interest and accounts receivable
57,649

 
46,605

 
57,926

 
69,642

 
70,006

 
24

 
(18
)
 
Premises and equipment
14,195

 
14,362

 
14,709

 
15,073

 
14,963

 
(1
)
 
(5
)
 
Goodwill
47,310

 
47,325

 
47,405

 
47,476

 
47,453

 

 

 
Mortgage servicing rights
5,658

 
6,608

 
6,716

 
7,571

 
6,641

 
(14
)
 
(15
)
 
Other intangible assets
940

 
1,015

 
1,036

 
1,091

 
1,128

 
(7
)
 
(17
)
 
Other assets
108,696

 
105,572

 
102,895

 
100,968

 
99,267

 
3

 
9

 
TOTAL ASSETS
$
2,423,808

 
$
2,351,698

 
$
2,416,635

 
$
2,449,098

 
$
2,576,619

 
3

 
(6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
$
1,321,816

 
$
1,279,715

 
$
1,273,106

 
$
1,287,332

 
$
1,367,887

 
3

 
(3
)
 
Federal funds purchased and securities loaned or sold
 
 
 
 
 
 
 
 
 
 
 
 
 
 
under repurchase agreements
160,999

 
152,678

 
180,319

 
180,897

 
196,578

 
5

 
(18
)
 
Commercial paper
17,490

 
15,562

 
19,656

 
42,238

 
55,655

 
12

 
(69
)
 
Other borrowed funds
19,703

 
21,105

 
27,174

 
30,061

 
29,035

 
(7
)
 
(32
)
 
Trading liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and equity instruments
87,963

 
74,107

 
84,334

 
80,396

 
84,437

 
19

 
4

 
Derivative payables
59,319

 
52,790

 
57,140

 
59,026

 
73,836

 
12

 
(20
)
 
Accounts payable and other liabilities
176,934

 
177,638

 
187,986

 
191,749

 
202,157

 

 
(12
)
 
Beneficial interests issued by consolidated VIEs
38,673

 
41,879

 
48,689

 
49,954

 
51,047

 
(8
)
 
(24
)
 
Long-term debt
290,754

 
288,651

 
292,503

 
286,240

 
280,123

 
1

 
4

 
TOTAL LIABILITIES
2,173,651

 
2,104,125

 
2,170,907

 
2,207,893

 
2,340,755

 
3

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock
26,068

 
26,068

 
26,068

 
24,918

 
21,493

 

 
21

 
Common stock
4,105

 
4,105

 
4,105

 
4,105

 
4,105

 

 

 
Additional paid-in capital
91,782

 
92,500

 
92,316

 
92,204

 
92,245

 
(1
)
 
(1
)
 
Retained earnings
149,730

 
146,420

 
143,050

 
138,294

 
134,048

 
2

 
12

 
Accumulated other comprehensive income
782

 
192

 
751

 
1,102

 
2,430

 
307

 
(68
)
 
Shares held in RSU Trust, at cost
(21
)
 
(21
)
 
(21
)
 
(21
)
 
(21
)
 

 

 
Treasury stock, at cost
(22,289
)
 
(21,691
)
 
(20,541
)
 
(19,397
)
 
(18,436
)
 
(3
)
 
(21
)
 
TOTAL STOCKHOLDERS’ EQUITY
250,157

 
247,573

 
245,728

 
241,205

 
235,864

 
1

 
6

 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
2,423,808

 
$
2,351,698

 
$
2,416,635

 
$
2,449,098

 
$
2,576,619

 
3

 
(6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See notes 1 and 2 on page 28.


Page 5



JPMORGAN CHASE & CO.
 
 
 
 
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
 
(in millions, except rates)
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
 
AVERAGE BALANCES
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits with banks
$
364,200

 
$
382,098

 
$
413,038

 
$
437,776

 
$
480,182

 
(5
)%
 
(24
)%
 
 
 
Federal funds sold and securities purchased under
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
resale agreements
204,992

 
202,205

 
201,673

 
205,352

 
217,546

 
1

 
(6
)
 
 
 
Securities borrowed
103,461

 
104,672

 
98,193

 
107,178

 
111,197

 
(1
)
 
(7
)
 
 
 
Trading assets - debt instruments
208,315

 
204,365

 
202,388

 
208,823

 
210,069

 
2

 
(1
)
 
 
 
Securities
284,488

 
297,648

 
307,364

 
323,941

 
334,967

 
(4
)
 
(15
)
 
 
 
Loans
840,526

 
823,057

 
793,584

 
774,205

 
757,638

 
2

 
11

 
 
 
Other assets (a)
38,001

 
37,012

 
40,650

 
40,362

 
37,202

 
3

 
2

 
 
 
Total interest-earning assets
2,043,983

 
2,051,057

 
2,056,890

 
2,097,637

 
2,148,801

 

 
(5
)
 
 
 
Trading assets - equity instruments
85,280

 
95,609

 
96,868

 
117,638

 
112,118

 
(11
)
 
(24
)
 
 
 
Trading assets - derivative receivables
70,651

 
66,043

 
69,646

 
73,805

 
83,901

 
7

 
(16
)
 
 
 
All other noninterest-earning assets
195,007

 
195,544

 
197,812

 
204,753

 
211,671

 

 
(8
)
 
 
 
TOTAL ASSETS
$
2,394,921

 
$
2,408,253

 
$
2,421,216

 
$
2,493,833

 
$
2,556,491

 
(1
)
 
(6
)
 
 
 
LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits
$
884,082

 
$
864,878

 
$
852,219

 
$
869,523

 
$
904,325

 
2

 
(2
)
 
 
 
Federal funds purchased and securities loaned or
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
sold under repurchase agreements
171,246

 
181,995

 
188,006

 
200,054

 
200,236

 
(6
)
 
(14
)
 
 
 
Commercial paper
17,537

 
17,952

 
26,167

 
49,020

 
60,013

 
(2
)
 
(71
)
 
 
 
Trading liabilities - debt, short-term and other liabilities (b)
196,233

 
196,154

 
198,876

 
213,246

 
223,361

 

 
(12
)
 
 
 
Beneficial interests issued by consolidated VIEs
39,839

 
44,774

 
49,808

 
51,600

 
50,677

 
(11
)
 
(21
)
 
 
 
Long-term debt
288,160

 
290,083

 
288,413

 
282,262

 
278,840

 
(1
)
 
3

 
 
 
Total interest-bearing liabilities
1,597,097

 
1,595,836

 
1,603,489

 
1,665,705

 
1,717,452

 

 
(7
)
 
 
 
Noninterest-bearing deposits
399,186

 
412,575

 
418,742

 
429,622

 
432,188

 
(3
)
 
(8
)
 
 
 
Trading liabilities - equity instruments
18,504

 
16,806

 
17,595

 
16,528

 
18,210

 
10

 
2

 
 
 
Trading liabilities - derivative payables
60,591

 
57,053

 
61,754

 
64,249

 
76,049

 
6

 
(20
)
 
 
 
All other noninterest-bearing liabilities
71,914

 
80,366

 
76,895

 
80,515

 
79,415

 
(11
)
 
(9
)
 
 
 
TOTAL LIABILITIES
2,147,292

 
2,162,636

 
2,178,475

 
2,256,619

 
2,323,314

 
(1
)
 
(8
)
 
 
 
Preferred stock
26,068

 
26,068

 
25,718

 
23,476

 
20,825

 

 
25

 
 
 
Common stockholders’ equity
221,561

 
219,549

 
217,023

 
213,738

 
212,352

 
1

 
4

 
 
 
TOTAL STOCKHOLDERS’ EQUITY
247,629

 
245,617

 
242,741

 
237,214

 
233,177

 
1

 
6

 
 
 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
2,394,921

 
$
2,408,253

 
$
2,421,216

 
$
2,493,833

 
$
2,556,491

 
(1
)
 
(6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE RATES (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INTEREST-EARNING ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits with banks
0.51

%
0.32

%
0.28

%
0.29

%
0.29

%
 
 
 
 
 
 
Federal funds sold and securities purchased under
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
resale agreements
1.09

 
0.83

 
0.85

 
0.66

 
0.74

 
 
 
 
 
 
 
Securities borrowed (d)
(0.36
)
 
(0.51
)
 
(0.48
)
 
(0.59
)
 
(0.44
)
 
 
 
 
 
 
 
Trading assets - debt instruments
3.31

 
3.16

 
3.04

 
3.37

 
3.39

 
 
 
 
 
 
 
Securities
2.98

 
3.11

 
2.85

 
2.77

 
2.82

 
 
 
 
 
 
 
Loans
4.26

 
4.20

 
4.24

 
4.21

 
4.28

 
 
 
 
 
 
 
Other assets (a)
2.04

 
1.71

 
1.67

 
1.74

 
1.59

 
 
 
 
 
 
 
Total interest-earning assets
2.72

 
2.60

 
2.51

 
2.44

 
2.42

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INTEREST-BEARING LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits
0.15

 
0.13

 
0.14

 
0.14

 
0.16

 
 
 
 
 
 
 
Federal funds purchased and securities loaned or
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
sold under repurchase agreements
0.61

 
0.36

 
0.34

 
0.29

 
0.29

 
 
 
 
 
 
 
Commercial paper
0.75

 
0.49

 
0.35

 
0.25

 
0.23

 
 
 
 
 
 
 
Trading liabilities - debt, short-term and other liabilities (b)
0.47

 
0.33

 
0.26

 
0.32

 
0.28

 
 
 
 
 
 
 
Beneficial interests issued by consolidated VIEs
1.14

 
0.99

 
0.92

 
0.85

 
0.79

 
 
 
 
 
 
 
Long-term debt
1.70

 
1.62

 
1.50

 
1.52

 
1.59

 
 
 
 
 
 
 
Total interest-bearing liabilities
0.55

 
0.48

 
0.45

 
0.44

 
0.45

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INTEREST RATE SPREAD
2.17

%
2.12

%
2.06

%
2.00

%
1.97

%
 
 
 
 
 
 
NET YIELD ON INTEREST-EARNING ASSETS
2.30

%
2.23

%
2.16

%
2.09

%
2.07

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Includes margin loans.
(b)
Includes brokerage customer payables.
(c)
Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(d)
Negative yield is a result of increased client-driven demand for certain securities combined with the impact of low interest rates; this is matched book activity and the negative interest expense on the corresponding securities loaned is recognized in interest expense and reported within trading liabilities - debt, short-term and other liabilities.

Page 6



JPMORGAN CHASE & CO.
 
 
 
 
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 the Firm’s results and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. 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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
 
 
OTHER INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income - reported
$
801

 
$
1,236

 
$
628

 
$
586

 
$
582

 
(35
)%
 
38
 %
 
 
 
Fully taxable-equivalent adjustments (a)
551

 
575

 
477

 
447

 
481

 
(4
)
 
15

 
 
 
Other income - managed
$
1,352

 
$
1,811

 
$
1,105

 
$
1,033

 
$
1,063

 
(25
)
 
27

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NONINTEREST REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total noninterest revenue - reported
$
11,859

 
$
11,660

 
$
11,856

 
$
13,128

 
$
13,389

 
2

 
(11
)
 
 
 
Fully taxable-equivalent adjustments (a)
551

 
575

 
477

 
447

 
481

 
(4
)
 
15

 
 
 
Total noninterest revenue - managed
$
12,410

 
$
12,235

 
$
12,333

 
$
13,575

 
$
13,870

 
1

 
(11
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INTEREST INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income - reported
$
11,380

 
$
11,225

 
$
10,924

 
$
10,684

 
$
10,677

 
1

 
7

 
 
 
Fully taxable-equivalent adjustments (a)
293

 
287

 
278

 
272

 
273

 
2

 
7

 
 
 
Net interest income - managed
$
11,673

 
$
11,512

 
$
11,202

 
$
10,956

 
$
10,950

 
1

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NET REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue - reported
$
23,239

 
$
22,885

 
$
22,780

 
$
23,812

 
$
24,066

 
2

 
(3
)
 
 
 
Fully taxable-equivalent adjustments (a)
844

 
862

 
755

 
719

 
754

 
(2
)
 
12

 
 
 
Total net revenue - managed
$
24,083

 
$
23,747

 
$
23,535

 
$
24,531

 
$
24,820

 
1

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PRE-PROVISION PROFIT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-provision profit - reported
$
9,402

 
$
8,622

 
$
7,412

 
$
9,312

 
$
9,183

 
9

 
2

 
 
 
Fully taxable-equivalent adjustments (a)
844

 
862

 
755

 
719

 
754

 
(2
)
 
12

 
 
 
Pre-provision profit - managed
$
10,246

 
$
9,484

 
$
8,167

 
$
10,031

 
$
9,937

 
8

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAX EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense - reported
$
7,578

 
$
7,371

 
$
6,730

 
$
8,377

 
$
8,224

 
3

 
(8
)
 
 
 
Fully taxable-equivalent adjustments (a)
844

 
862

 
755

 
719

 
754

 
(2
)
 
12

 
 
 
Income before income tax expense - managed
$
8,422

 
$
8,233

 
$
7,485

 
$
9,096

 
$
8,978

 
2

 
(6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INCOME TAX EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense/(benefit) - reported
$
2,058

 
$
1,937

 
$
(74
)
 
$
2,087

 
$
2,310

 
6

 
(11
)
 
 
 
Fully taxable-equivalent adjustments (a)
844

 
862

 
755

 
719

 
754

 
(2
)
 
12

 
 
 
Income tax expense - managed
$
2,902

 
$
2,799

 
$
681

 
$
2,806

 
$
3,064

 
4

 
(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OVERHEAD RATIO
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overhead ratio - reported
60

%
62

%
67

%
61

%
62

%
 
 
 
 
 
 
Overhead ratio - managed
57

 
60

 
65

 
59

 
60

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See notes 1 and 2 on page 28.

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


Page 7



JPMORGAN CHASE & CO.
 
 
 
 
SEGMENT RESULTS - MANAGED BASIS
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
 
 
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
11,117

 
$
11,222

 
$
10,879

 
$
11,015

 
$
10,704

 
(1
)%

4
 %

 

Corporate & Investment Bank
8,135

 
7,069

 
8,168

 
8,723

 
9,582

 
15

 
(15
)
 
 
 
Commercial Banking
1,803

 
1,760

 
1,644

 
1,739

 
1,742

 
2

 
4

 
 
 
Asset Management
2,972

 
3,045

 
2,894

 
3,175

 
3,005

 
(2
)
 
(1
)
 
 
 
Corporate
56

 
651

 
(50
)
 
(121
)
 
(213
)
 
(91
)
 
NM

 
 
 
TOTAL NET REVENUE
$
24,083

 
$
23,747

 
$
23,535

 
$
24,531

 
$
24,820

 
1

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
6,088

 
$
6,272

 
$
6,237

 
$
6,210

 
$
6,190

 
(3
)
 
(2
)
 
 
 
Corporate & Investment Bank
4,808

 
4,436

 
6,131

 
5,137

 
5,657

 
8

 
(15
)
 
 
 
Commercial Banking
713

 
750

 
719

 
703

 
709

 
(5
)
 
1

 
 
 
Asset Management
2,075

 
2,196

 
2,109

 
2,406

 
2,175

 
(6
)
 
(5
)
 
 
 
Corporate
153

 
609

 
172

 
44

 
152

 
(75
)
 
1

 
 
 
TOTAL NONINTEREST EXPENSE
$
13,837

 
$
14,263

 
$
15,368

 
$
14,500

 
$
14,883

 
(3
)
 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PRE-PROVISION PROFIT/(LOSS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
5,029

 
$
4,950

 
$
4,642

 
$
4,805

 
$
4,514

 
2

 
11

 
 
 
Corporate & Investment Bank
3,327

 
2,633

 
2,037

 
3,586

 
3,925

 
26

 
(15
)
 
 
 
Commercial Banking
1,090

 
1,010

 
925

 
1,036

 
1,033

 
8

 
6

 
 
 
Asset Management
897

 
849

 
785

 
769

 
830

 
6

 
8

 
 
 
Corporate
(97
)
 
42

 
(222
)
 
(165
)
 
(365
)
 
NM

 
73

 
 
 
PRE-PROVISION PROFIT
$
10,246

 
$
9,484

 
$
8,167

 
$
10,031

 
$
9,937

 
8

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PROVISION FOR CREDIT LOSSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
1,050

 
$
1,038

 
$
389

 
$
702

 
$
930

 
1

 
13

 
 
 
Corporate & Investment Bank
459

 
81

 
232

 
50

 
(31
)
 
467

 
NM

 
 
 
Commercial Banking
304

 
117

 
82

 
182

 
61

 
160

 
398

 
 
 
Asset Management
13

 
17

 
(17
)
 

 
4

 
(24
)
 
225

 
 
 
Corporate
(2
)
 
(2
)
 
(4
)
 
1

 
(5
)
 

 
60

 
 
 
PROVISION FOR CREDIT LOSSES
$
1,824

 
$
1,251

 
$
682

 
$
935

 
$
959

 
46

 
90

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Community Banking
$
2,490

 
$
2,407

 
$
2,630

 
$
2,533

 
$
2,219

 
3

 
12

 
 
 
Corporate & Investment Bank
1,979

 
1,748

 
1,464

 
2,341

 
2,537

 
13

 
(22
)
 
 
 
Commercial Banking
496

 
550

 
518

 
525

 
598

 
(10
)
 
(17
)
 
 
 
Asset Management
587

 
507

 
475

 
451

 
502

 
16

 
17

 
 
 
Corporate
(32
)
 
222

 
1,717

 
440

 
58

 
NM

 
NM

 
 
 
TOTAL NET INCOME
$
5,520

 
$
5,434

 
$
6,804

 
$
6,290

 
$
5,914

 
2

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See notes 1 and 2 on page 28.


Page 8



JPMORGAN CHASE & CO.
 
 
 
CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mar 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Mar 31,
 
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
 
Dec 31,
 
Mar 31,
 
 
2016
 
 
2015
 
2015
 
2015
 
2015
 
 
2015
 
2015
 
CAPITAL (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Risk-based capital metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Standardized Transitional
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CET1 capital
$
177,531

(f)
 
$
175,398

 
$
173,577

 
$
169,769

 
$
167,142

 
 
1
 %
 
6
 %
 
Tier 1 capital
202,399

(f)
 
200,482

 
199,211

 
194,714

 
188,760

 
 
1

 
7

 
Total capital
236,954

(f)
 
234,413

 
234,377

 
228,303

 
223,159

 
 
1

 
6

 
Risk-weighted assets
1,473,316

(f)
 
1,465,262

 
1,503,370

 
1,499,638

 
1,536,688

 
 
1

 
(4
)
 
CET1 capital ratio
12.0
%
(f)
 
12.0
%
 
11.5
%
 
11.3
%
 
10.9
%
 
 
 
 
 
 
Tier 1 capital ratio
13.7

(f)
 
13.7

 
13.3

 
13.0

 
12.3

 
 
 
 
 
 
Total capital ratio
16.1

(f)
 
16.0

 
15.6

 
15.2

 
14.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advanced Transitional
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CET1 capital
$
177,531

(f)
 
175,398

 
173,577

 
169,769

 
167,142

 
 
1

 
6

 
Tier 1 capital
202,399

(f)
 
200,482

 
199,211

 
194,714

 
188,760

 
 
1

 
7

 
Total capital
226,659

(f)
 
224,616

 
223,877

 
218,724

 
213,270

 
 
1

 
6

 
Risk-weighted assets
1,502,333

(f)
 
1,485,336

 
1,502,685

 
1,520,140

 
1,562,570

 
 
1

 
(4
)
 
CET1 capital ratio
11.8
%
(f)
 
11.8
%
 
11.6
%
 
11.2
%
 
10.7
%
 
 
 
 
 
 
Tier 1 capital ratio
13.5

(f)
 
13.5

 
13.3

 
12.8

 
12.1

 
 
 
 
 
 
Total capital ratio
15.1

(f)
 
15.1

 
14.9

 
14.4

 
13.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage-based capital metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted average assets (b)
$
2,345,926

(f)
 
$
2,361,177

 
$
2,375,317

 
$
2,447,864

 
$
2,510,378

 
 
(1
)
 
(7
)
 
Tier 1 leverage ratio
8.6
%
(f)
 
8.5
%
 
8.4
%
 
8.0
%
 
7.5
%
 
 
 
 
 
 
SLR leverage exposure (c)
$
3,047,453

(f)
 
$
3,079,797

 
3,116,633

 
3,223,351

 
3,300,300

 
 
(1
)
 
(8
)
 
SLR (c)
6.6
%
(f)
 
6.5
%
 
6.4
%
 
6.0
%
 
5.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TANGIBLE COMMON EQUITY (period-end) (d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stockholders’ equity
$
224,089

 
 
$
221,505

 
$
219,660

 
$
216,287

 
$
214,371

 
 
1

 
5

 
Less: Goodwill
47,310

 
 
47,325

 
47,405

 
47,476

 
47,453

 
 

 

 
Less: Other intangible assets
940

 
 
1,015

 
1,036

 
1,091

 
1,128

 
 
(7
)
 
(17
)
 
Add: Deferred tax liabilities (e)
3,205

 
 
3,148

 
3,105

 
2,876

 
2,870

 
 
2

 
12

 
Total tangible common equity
$
179,044

 
 
$
176,313

 
$
174,324

 
$
170,596

 
$
168,660

 
 
2

 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TANGIBLE COMMON EQUITY (average) (d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stockholders’ equity
$
221,561

 
 
$
219,549

 
$
217,023

 
$
213,738

 
$
212,352

 
 
1

 
4

 
Less: Goodwill
47,332

 
 
47,377

 
47,428

 
47,485

 
47,491

 
 

 

 
Less: Other intangible assets
985

 
 
1,030

 
1,064

 
1,113

 
1,162

 
 
(4
)
 
(15
)
 
Add: Deferred tax liabilities (e)
3,177

 
 
3,127

 
2,991

 
2,873

 
2,862

 
 
2

 
11

 
Total tangible common equity
$
176,421

 
 
$
174,269

 
$
171,522

 
$
168,013

 
$
166,561

 
 
1

 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INTANGIBLE ASSETS (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$
47,310

 
 
$
47,325

 
$
47,405

 
$
47,476

 
$
47,453

 
 

 

 
Mortgage servicing rights
5,658

 
 
6,608

 
6,716

 
7,571

 
6,641

 
 
(14
)
 
(15
)
 
Other intangible assets
940

 
 
1,015

 
1,036

 
1,091

 
1,128

 
 
(7
)
 
(17
)
 
Total intangible assets
$
53,908

 
 
$
54,948

 
$
55,157

 
$
56,138

 
$
55,222

 
 
(2
)
 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See notes 1 and 2 on page 28.

(a)
Basel III presents two comprehensive methodologies for calculating risk-weighted assets: a Standardized approach and an Advanced approach. As required by the Collins Amendment of the Wall Street Reform and Consumer Protection Act, the capital adequacy of the Firm is evaluated against the Basel III approach (Standardized or Advanced) that results, for each quarter, in the lower ratio (the “Collins Floor”). For further discussion of the implementation of Basel III, see Capital Management on pages 149-158 of JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 2015.
(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, predominately goodwill and other intangible assets.
(c)
The Firm is required to calculate a supplementary leverage ratio (“SLR”). The SLR is defined as Tier 1 capital divided by the Firm’s total leverage exposure. Total leverage exposure is calculated by taking the Firm’s adjusted average assets as calculated for the Tier 1 leverage ratio, and adding certain off-balance sheet exposures, such as undrawn commitments and derivatives potential future exposure.
(d)
For further discussion of TCE, see page 28.
(e)
Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted against goodwill and other intangibles when calculating TCE.
(f)
Estimated.


Page 9



JPMORGAN CHASE & CO.
 
 
 
 
EARNINGS PER SHARE AND RELATED INFORMATION
 
 
 
(in millions, except per share and ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
EARNINGS PER SHARE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
5,520

 
$
5,434

 
$
6,804

 
$
6,290

 
$
5,914

 
2
 %
 
(7
)%
 
Less: Preferred stock dividends
412

 
418

 
393

 
380

 
324

 
(1
)
 
27

 
Net income applicable to common equity
5,108

 
5,016

 
6,411

 
5,910

 
5,590

 
2

 
(9
)
 
Less: Dividends and undistributed earnings allocated to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
participating securities
117

 
108

 
141

 
134

 
138

 
8

 
(15
)
 
Net income applicable to common stockholders
$
4,991

 
$
4,908

 
$
6,270

 
$
5,776

 
$
5,452

 
2

 
(8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total weighted-average basic shares outstanding
3,669.9

 
3,674.2

 
3,694.4

 
3,707.8

 
3,725.3

 

 
(1
)
 
Net income per share
$
1.36

 
$
1.34

 
$
1.70

 
$
1.56

 
$
1.46

 
1

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income applicable to common stockholders
$
4,991

 
$
4,908

 
$
6,270

 
$
5,776

 
$
5,452

 
2

 
(8
)
 
Total weighted-average basic shares outstanding
3,669.9

 
3,674.2

 
3,694.4

 
3,707.8

 
3,725.3

 

 
(1
)
 
Add: Employee stock options, stock appreciation rights (“SARs”), warrants and performance share units (“PSUs”) (a)
27.0

 
30.4

 
31.2

 
35.8

 
32.2

 
(11
)
 
(16
)
 
Total weighted-average diluted shares outstanding
3,696.9

 
3,704.6

 
3,725.6

 
3,743.6

 
3,757.5

 

 
(2
)
 
Net income per share
$
1.35

 
$
1.32

 
$
1.68

 
$
1.54

 
$
1.45

 
2

 
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMMON DIVIDENDS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends declared per share
$
0.44

 
$
0.44

 
$
0.44

 
$
0.44

(d)
$
0.40

 

 
10

 
Dividend payout ratio
32
%
 
33
%
 
26
%
 
28
%
 
27
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMMON EQUITY REPURCHASE PROGRAM (b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total shares of common stock repurchased
29.2

 
19.0

 
19.1

 
19.2

 
32.5

 
54

 
(10
)
 
Average price paid per share of common stock
$
58.17

 
$
63.92

 
$
65.30

 
$
65.32

 
$
58.40

 
(9
)
 

 
Aggregate repurchases of common equity
1,696

 
1,219

 
1,248

 
1,249

 
1,900

 
39

 
(11
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EMPLOYEE ISSUANCE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares issued from treasury stock related to employee
 
 
 
 
 
 
 
 
 
 
 
 
 
 
stock-based compensation awards and employee stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
purchase plans
22.3

 
1.1

 
1.9

 
2.0

 
28.8

 
NM

 
(23
)
 
Net impact of employee issuances on stockholders’ equity (c)
$
366

 
$
252

 
$
248

 
$
290

 
$
333

 
45

 
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See notes 1 and 2 on page 28.

(a)
Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans. The aggregate number of shares issuable upon the exercise of such options was not material for each of the three months ended March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015, respectively, and 1 million for the three months ended March 31, 2015.
(b)
On March 16, 2016, the Firm announced that its Board of Directors had authorized the repurchase of up to an additional $1.9 billion of common equity through June 30, 2016 under its current equity repurchase program. This amount is in addition to the $6.4 billion of common equity that was previously authorized for repurchase between April 1, 2015, and June 30, 2016.
(c)
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.
(d)
On May 19, 2015, the Board of Directors increased the quarterly common stock dividend from $0.40 to $0.44 per share.


Page 10




JPMORGAN CHASE & CO.
 
 
 
 
CONSUMER & COMMUNITY BANKING
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except ratio and headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lending- and deposit-related fees
$
769

 
$
817

 
$
836

 
$
766

 
$
718

 
(6
)%
 
7
 %
 
 
Asset management, administration and commissions
530

 
524

 
565

 
553

 
530

 
1

 

 
 
Mortgage fees and related income
667

 
556

 
469

 
782

 
704

 
20

 
(5
)
 
 
Card income
1,191

 
1,326

 
1,335

 
1,506

 
1,324

 
(10
)
 
(10
)
 
 
All other income
649

 
815

 
524

 
482

 
460

 
(20
)
 
41

 
 
Noninterest revenue
3,806

 
4,038

 
3,729

 
4,089

 
3,736

 
(6
)
 
2

 
 
Net interest income
7,311

 
7,184

 
7,150

 
6,926

 
6,968

 
2

 
5

 
 
TOTAL NET REVENUE
11,117

 
11,222

 
10,879

 
11,015

 
10,704

 
(1
)
 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
1,050

 
1,038

 
389

 
702

 
930

 
1

 
13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense
2,382

 
2,349

 
2,413

 
2,478

 
2,530

 
1

 
(6
)
 
 
Noncompensation expense (a)
3,706

 
3,923

 
3,824

 
3,732

 
3,660

 
(6
)
 
1

 
 
TOTAL NONINTEREST EXPENSE
6,088

 
6,272

 
6,237

 
6,210

 
6,190

 
(3
)
 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
3,979

 
3,912

 
4,253

 
4,103

 
3,584

 
2

 
11

 
 
Income tax expense
1,489

 
1,505

 
1,623

 
1,570

 
1,365

 
(1
)
 
9

 
 
NET INCOME
$
2,490

 
$
2,407

 
$
2,630

 
$
2,533

 
$
2,219

 
3

 
12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE BY LINE OF BUSINESS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
$
4,550

 
$
4,587

 
$
4,555

 
$
4,483

 
$
4,358

 
(1
)
 
4

 
 
Mortgage Banking
1,876

 
1,680

 
1,555

 
1,833

 
1,749

 
12

 
7

 
 
Card, Commerce Solutions & Auto
4,691

 
4,955

 
4,769

 
4,699

 
4,597

 
(5
)
 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE
19

%
18

%
20

%
19

%
17

%
 
 
 
 
 
Overhead ratio
55

 
56

 
57

 
56

 
58

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount
129,925

 
127,094

 
128,601

 
132,302

 
135,908

 
2

 
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Included operating lease depreciation expense of $432 million, $401 million, $372 million, $348 million and $326 million for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively.

Page 11



JPMORGAN CHASE & CO.
 
 
 
 
CONSUMER & COMMUNITY BANKING
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
505,071

 
$
502,652

 
$
484,253

 
$
472,181

 
$
455,624

 
 %
 
11
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
22,889

 
22,730

 
22,346

 
21,940

 
21,608

 
1

 
6

 
 
Home equity
56,627

 
58,734

 
60,849

 
63,316

 
65,705

 
(4
)
 
(14
)
 
 
Residential mortgage and other
172,413

 
164,500

 
153,730

 
139,814

 
125,956

 
5

 
37

 
 
Mortgage Banking
229,040

 
223,234

 
214,579

 
203,130

 
191,661

 
3

 
20

 
 
Credit Card
126,090

 
131,463

 
126,979

 
126,025

 
123,257

 
(4
)
 
2

 
 
Auto
62,937

 
60,255

 
57,174

 
56,330

 
55,455

 
4

 
13

 
 
Student
7,890

 
8,176

 
8,462

 
8,763

 
9,053

 
(3
)
 
(13
)
 
 
Total loans
448,846

 
445,858

 
429,540

 
416,188

 
401,034

 
1

 
12

 
 
           Core loans
348,802

 
341,881

 
320,415

 
301,154

 
280,252

 
2

 
24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
582,026

 
557,645

 
539,182

 
530,767

 
531,027

 
4

 
10

 
 
Equity
51,000

 
51,000

 
51,000

 
51,000

 
51,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
503,231

 
$
494,306

 
$
478,914

 
$
463,404

 
$
454,763

 
2

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
22,775

 
22,445

 
22,069

 
21,732

 
21,317

 
1

 
7

 
 
Home equity
57,717

 
59,757

 
62,025

 
64,502

 
66,854

 
(3
)
 
(14
)
 
 
Residential mortgage and other
168,694

 
160,925

 
146,432

 
132,649

 
120,658

 
5

 
40

 
 
Mortgage Banking
226,411

 
220,682

 
208,457

 
197,151

 
187,512

 
3

 
21

 
 
Credit Card
127,299

 
127,620

 
126,305

 
124,539

 
125,025

 

 
2

 
 
Auto
61,252

 
58,692

 
56,412

 
55,800

 
55,005

 
4

 
11

 
 
Student
8,034

 
8,326

 
8,622

 
8,907

 
9,209

 
(4
)
 
(13
)
 
 
Total loans
445,771

 
437,765

 
421,865

 
408,129

 
398,068

 
2

 
12

 
 
           Core loans
343,705

 
331,296

 
309,888

 
290,330

 
274,578

 
4

 
25

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
562,284

 
545,734

 
535,987

 
529,448

 
512,157

 
3

 
10

 
 
Equity
51,000

 
51,000

 
51,000

 
51,000

 
51,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Page 12



JPMORGAN CHASE & CO.
 
 
 
 
CONSUMER & COMMUNITY BANKING
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
 
CREDIT DATA AND QUALITY STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans (a)(b)
$
5,117

 
$
5,313

 
$
5,433

 
$
5,876

 
$
6,143

 
(4
)%
 
(17
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs/(recoveries) (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
56

 
76

 
50

 
68

 
59

 
(26
)
 
(5
)
 
 
Home equity
59

 
45

 
82

 
69

 
87

 
31

 
(32
)
 
 
Residential mortgage and other
1

 
14

 
(41
)
 
12

 
17

 
(93
)
 
(94
)
 
 
Mortgage Banking
60

 
59

 
41

 
81

 
104

 
2

 
(42
)
 
 
Credit Card
830

 
774

 
759

 
800

 
789

 
7

 
5

 
 
Auto
67

 
74

 
57

 
32

 
51

 
(9
)
 
31

 
 
Student
37

 
55

 
58

 
46

 
51

 
(33
)
 
(27
)
 
 
Total net charge-offs/(recoveries)
$
1,050

 
$
1,038

 
$
965

 
$
1,027

 
$
1,054

 
1

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-off/(recovery) rate (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
0.99

%
1.34

%
0.90

%
1.26

%
1.12

%
 
 
 
 
 
Home equity (d)
0.55

 
0.40

 
0.70

 
0.57

 
0.71

 
 
 
 
 
 
Residential mortgage and other (d)

 
0.04

 
(0.14
)
 
0.05

 
0.08

 
 
 
 
 
 
Mortgage Banking (d)
0.13

 
0.13

 
0.10

 
0.21

 
0.30

 
 
 
 
 
 
Credit Card (e)
2.62

 
2.42

 
2.41

 
2.61

 
2.62

 
 
 
 
 
 
Auto
0.44

 
0.50

 
0.40

 
0.23

 
0.38

 
 
 
 
 
 
Student
1.85

 
2.62

 
2.67

 
2.07

 
2.25

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

 
1.04

 
1.02

 
1.14

 
1.22

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30+ day delinquency rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Banking (f)(g)
1.41

%
1.57

%
1.74

%
1.95

%
2.30

%
 
 
 
 
 
Credit Card (h)
1.45

 
1.43

 
1.38

 
1.29

 
1.41

 
 
 
 
 
 
Auto
0.94

 
1.35

 
1.06

 
0.95

 
0.90

 
 
 
 
 
 
Student (i)
1.41

 
1.81

 
1.99

 
2.00

 
1.77

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
90+ day delinquency rate - Credit Card (h)
0.75

 
0.72

 
0.66

 
0.63

 
0.73

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
$
703

 
$
703

 
$
703

 
$
703

 
$
703

 

 

 
 
Mortgage Banking, excluding PCI loans
1,588

 
1,588

 
1,588

 
1,788

 
2,088

 

 
(24
)
 
 
Mortgage Banking - PCI loans (c)
2,695

 
2,742

 
2,788

 
3,215

 
3,270

 
(2
)
 
(18
)
 
 
Credit Card
3,434

 
3,434

 
3,434

 
3,434

 
3,434

 

 

 
 
Auto
399

 
399

 
374

 
349

 
350

 

 
14

 
 
Student
299

 
299

 
324

 
349

 
374

 

 
(20
)
 
 
Total allowance for loan losses (c)
$
9,118

 
$
9,165

 
$
9,211

 
$
9,838

 
$
10,219

 
(1
)
 
(11
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.
(b)
At March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, nonaccrual loans excluded: (1) mortgage loans insured by U.S. government agencies of $5.7 billion, $6.3 billion, $6.6 billion, $7.0 billion and $7.5 billion, respectively, that are 90 or more days past due; (2) student loans insured by U.S. government agencies under the Federal Family Education Loan Program ("FFELP") of $269 million, $290 million, $289 million, $282 million and $346 million, respectively, that are 90 or more days past due. These amounts have been excluded based upon the government guarantee.
(c)
Net charge-offs and the net charge-off rates for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, excluded $47 million, $46 million, $52 million, $55 million and $55 million, respectively, of write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans. For further information on PCI write-offs, see Summary of Changes in the Allowances on page 26.
(d)
Excludes the impact of PCI loans. For the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of 0.41%, 0.30%, 0.52%, 0.43%, and 0.53%, respectively; (2) residential mortgage and other of -%, 0.03%, (0.11%), 0.04%, and 0.06%, respectively; (3) Mortgage Banking of 0.11%, 0.11%, 0.08%, 0.17%, and 0.23%, respectively; and (4) total CCB of 0.95%, 0.94%, 0.91%, 1.01%, and 1.08%, respectively.
(e)
Average credit card loans included loans held-for-sale of $72 million, $717 million, $1.3 billion, $1.8 billion and $2.7 billion for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively. These amounts are excluded when calculating the net-charge-off rate.
(f)
At March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, excluded mortgage loans insured by U.S. government agencies of $7.6 billion, $8.4 billion, $8.5 billion, $8.8 billion and $9.2 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
(g)
Excludes PCI loans. The 30+ day delinquency rate for PCI loans was 10.47%, 11.21%, 11.29%, 11.65% and 12.25% at March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively.
(h)
Period-end credit card loans included loans held-for-sale of $78 million, $76 million, $1.3 billion, $1.3 billion and $2.4 billion at March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively. These amounts are excluded when calculating delinquency rates.
(i)
Excluded student loans insured by U.S government agencies under FFELP of $471 million, $526 million, $507 million, $546 million, and $596 million at March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.

Page 13



JPMORGAN CHASE & CO.
 
 
 
 
CONSUMER & COMMUNITY BANKING
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except ratio data and where otherwise noted)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
 
BUSINESS METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Active mobile customers (in thousands) (a)
23,821

 
22,810

 
22,232

 
21,001

 
19,962

 
4
 %
 
19
 %
 
 
Active online customers, excluding mobile (in thousands)
18,637

 
16,432

 
16,279

 
16,877

 
17,734

 
13

 
5

 
 
Active online customer (in thousands)
42,458

 
39,242

 
38,511

 
37,878

 
37,696

 
8

 
13

 
 
 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer & Business Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average deposits
$
548,447

 
$
530,611

 
$
519,414

 
$
512,844

 
$
497,610

 
3

 
10

 
 
Deposit margin
1.86

%
1.83

%
1.86

%
1.92

%
1.99

%
 
 


 
 
Business banking origination volume
$
1,688

 
$
1,609

 
$
1,715

 
$
1,911

 
$
1,540

 
5

 
10

 
 
Client investment assets
220,004

 
218,551

 
213,263

 
221,490

 
219,192

 
1

 

 
 
 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Banking (in billions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage origination volume by channel
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$
8.7

 
$
8.7

 
$
9.5

 
$
9.8

 
$
8.1

 

 
7

 
 
Correspondent
13.7

 
13.8

 
20.4

 
19.5

 
16.6

 
(1
)
 
(17
)
 
 
Total mortgage origination volume (b)
$
22.4

 
$
22.5

 
$
29.9

 
$
29.3

 
$
24.7

 

 
(9
)
 
 
Total loans serviced (period-end)
$
898.7

 
$
910.1

 
$
929.0

 
$
917.0

 
$
924.3

 
(1
)
 
(3
)
 
 
Third-party mortgage loans serviced (period-end)
655.4

 
674.0

 
702.6

 
723.4

 
723.5

 
(3
)
 
(9
)
 
 
MSR carrying value (period-end)
5.7

 
6.6

 
6.7

 
7.6

 
6.6

 
(14
)
 
(14
)
 
 
Ratio of MSR carrying value (period-end) to third-party mortgage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
loans serviced (period-end)
0.87

%
0.98

%
0.95

%
1.05

%
0.91

%
 
 
 
 
 
MSR revenue multiple (c)
2.49
x
 
2.97
x
 
2.79
x
 
3.00
x
 
2.53
x
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Card, excluding Commercial Card
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volume (in billions)
$
121.7

 
$
130.8

 
$
126.6

 
$
125.7

 
$
112.8

 
(7
)
 
8

 
 
New accounts opened
2.3

 
2.5

 
2.0

 
2.1

 
2.1

 
(8
)
 
10

 
 
Net revenue rate
11.81
 
12.54

 
12.22

 
12.35

 
12.19

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commerce Solutions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchant processing volume (in billions)
$
247.5

 
$
258.2

 
$
235.8

 
$
234.1

 
$
221.2

 
(4
)
 
12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Auto
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan and lease origination volume (in billions)
$
9.6

 
$
9.2

 
$
8.1

 
$
7.8

 
$
7.3

 
4

 
32

 
 
Average Auto operating lease assets
9,615

 
8,794

 
8,073

 
7,437

 
6,899

 
9

 
39

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Users of all internet browsers and mobile platforms (mobile smartphone, tablet and SMS) who have logged in within the past 90 days.
(b)
Firmwide mortgage origination volume was $24.4 billion, $24.7 billion, $32.2 billion, $31.7 billion and $26.6 billion for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively.
(c)
Represents the ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) divided by the ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average).


Page 14



JPMORGAN CHASE & CO.
 
 
 
 
CORPORATE & INVESTMENT BANK
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment banking fees
$
1,321

 
$
1,538

 
$
1,612

 
$
1,825

 
$
1,761

 
(14
)%
 
(25
)%
 
Principal transactions
2,470

 
1,396

 
2,370

 
2,657

 
3,482

 
77

 
(29
)
 
Lending- and deposit-related fees
394

 
387

 
389

 
400

 
397

 
2

 
(1
)
 
Asset management, administration and commissions
1,069

 
1,049

 
1,083

 
1,181

 
1,154

 
2

 
(7
)
 
All other income
280

 
268

 
294

 
170

 
280

 
4

 

 
Noninterest revenue
5,534

 
4,638

 
5,748

 
6,233

 
7,074

 
19

 
(22
)
 
Net interest income
2,601

 
2,431

 
2,420

 
2,490

 
2,508

 
7

 
4

 
TOTAL NET REVENUE (a)
8,135

 
7,069

 
8,168

 
8,723

 
9,582

 
15

 
(15
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
459

 
81

 
232

 
50

 
(31
)
 
467

 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense
2,600

 
1,860

 
2,434

 
2,656

 
3,023

 
40

 
(14
)
 
Noncompensation expense
2,208

 
2,576

 
3,697

 
2,481

 
2,634

 
(14
)
 
(16
)
 
TOTAL NONINTEREST EXPENSE
4,808

 
4,436

 
6,131

 
5,137

 
5,657

 
8

 
(15
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
2,868

 
2,552

 
1,805

 
3,536

 
3,956

 
12

 
(28
)
 
Income tax expense
889

 
804

 
341

 
1,195

 
1,419

 
11

 
(37
)
 
NET INCOME
$
1,979

 
$
1,748

 
$
1,464

 
$
2,341

 
$
2,537

 
13

 
(22
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE
11
%
 
10
%
 
8
%
 
14
%
 
16
%
 
 
 
 
 
Overhead ratio
59

 
63

 
75

 
59

 
59

 
 
 
 
 
Compensation expense as a percent of total net revenue
32

 
26

 
30

 
30

 
32

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE BY BUSINESS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment banking revenue
$
1,231

 
$
1,470

 
$
1,530

 
$
1,746

 
$
1,630

 
(16
)
 
(24
)
 
Treasury Services
884

 
901

 
899

 
901

 
930

 
(2
)
 
(5
)
 
Lending
302

 
390

 
334

 
302

 
435

 
(23
)
 
(31
)
 
Total Banking
2,417

 
2,761

 
2,763

 
2,949

 
2,995

 
(12
)
 
(19
)
 
Fixed Income Markets
3,597

 
2,574

 
2,933

 
2,931

 
4,154

 
40

 
(13
)
 
Equity Markets
1,576

 
1,064

 
1,403

 
1,576

 
1,651

 
48

 
(5
)
 
Securities Services
881

 
933

 
915

 
995

 
934

 
(6
)
 
(6
)
 
Credit Adjustments & Other (b)
(336
)
 
(263
)
 
154

 
272

 
(152
)
 
(28
)
 
(121
)
 
Total Markets & Investor Services
5,718

 
4,308

 
5,405

 
5,774

 
6,587

 
33

 
(13
)
 
TOTAL NET REVENUE
$
8,135

 
$
7,069

 
$
8,168

 
$
8,723

 
$
9,582

 
15

 
(15
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Included tax-equivalent adjustments, predominantly due to income tax credits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; as well as tax-exempt income from municipal bond investments of $498 million, $486 million, $417 million, $396 million and $432 million for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively.
(b)
Effective January 1, 2016, consists primarily of credit valuation adjustments (“CVA”) managed by the credit portfolio group, funding valuation adjustments (“FVA”) and debit valuation adjustments (“DVA”) on derivatives. Prior periods also include DVA on fair value option elected liabilities. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets. Effective January 1, 2016, changes in DVA on fair value option elected liabilities is recognized in other comprehensive income. For additional information, see Note 1 on page 28.

Page 15



JPMORGAN CHASE & CO.
 
 
 
 
CORPORATE & INVESTMENT BANK
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except ratio and headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
$
801,053

 
$
748,691

 
$
801,133

 
$
819,745

 
$
854,275

 
7
 %
 
(6
)%
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained (a)
109,132

 
106,908

 
101,420

 
96,579

 
98,625

 
2

 
11

 
Loans held-for-sale and loans at fair value
2,381

 
3,698

 
3,369

 
7,211

 
3,987

 
(36
)
 
(40
)
 
Total loans
111,513

 
110,606

 
104,789

 
103,790

 
102,612

 
1

 
9

 
           Core loans
111,050

 
110,084

 
104,270

 
103,235

 
101,537

 
1

 
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
64,000

 
62,000

 
62,000

 
62,000

 
62,000

 
3

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
$
797,548

 
$
797,427

 
$
789,975

 
$
845,225

 
$
865,327

 

 
(8
)
 
Trading assets - debt and equity instruments
285,122

 
291,958

 
288,828

 
317,385

 
312,260

 
(2
)
 
(9
)
 
Trading assets - derivative receivables
62,557

 
59,425

 
63,561

 
68,949

 
77,353

 
5

 
(19
)
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained (a)
108,712

 
101,959

 
97,518

 
94,711

 
99,113

 
7

 
10

 
Loans held-for-sale and loans at fair value
3,204

 
4,897

 
3,827

 
5,504

 
4,061

 
(35
)
 
(21
)
 
Total loans
111,916

 
106,856

 
101,345

 
100,215

 
103,174

 
5

 
8

 
Core loans
111,417

 
106,331

 
100,809

 
99,343

 
102,052

 
5

 
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
64,000

 
62,000

 
62,000

 
62,000

 
62,000

 
3

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount
49,067

 
49,067

 
49,384

 
49,367

 
50,634

 

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT DATA AND QUALITY STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs/(recoveries)
$
46

 
$
5

 
$
2

 
$
(15
)
 
$
(11
)
 
NM

 
NM

 
Nonperforming assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans retained (a)(b)
650

 
428

 
464

 
324

 
251

 
52

 
159

 
Nonaccrual loans held-for-sale and loans at fair value
7

 
10

 
12

 
12

 
12

 
(30
)
 
(42
)
 
Total nonaccrual loans
657

 
438

 
476

 
336

 
263

 
50

 
150

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative receivables
212

 
204

 
235

 
256

 
249

 
4

 
(15
)
 
Assets acquired in loan satisfactions
62

 
62

 
56

 
60

 
63

 

 
(2
)
 
Total nonperforming assets
931

 
704

 
767

 
652

 
575

 
32

 
62

 
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
1,497

 
1,258

 
1,205

 
1,086

 
1,047

 
19

 
43

 
Allowance for lending-related commitments
744

 
569

 
547

 
437

 
411

 
31

 
81

 
Total allowance for credit losses
2,241

 
1,827

 
1,752

 
1,523

 
1,458

 
23

 
54

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-off/(recovery) rate (a)
0.17
%
 
0.02
%
 
0.01
%
 
(0.06
)%
 
(0.05
)%
 
 
 
 
 
Allowance for loan losses to period-end loans retained (a)
1.37

 
1.18

 
1.19

 
1.12

 
1.06

 
 
 
 
 
Allowance for loan losses to period-end loans retained,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
excluding trade finance and conduits (c)
2.11

 
1.88

 
1.85

 
1.73

 
1.64

 
 
 
 
 
Allowance for loan losses to nonaccrual loans retained (a)(b)
230

 
294

 
260

 
335

 
417

 
 
 
 
 
Nonaccrual loans to total period-end loans
0.59

 
0.40

 
0.45

 
0.32

 
0.26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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)
Allowance for loan losses of $233 million, $177 million, $160 million, $64 million and $51 million were held against these nonaccrual loans at March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively.
(c)
Management uses allowance for loan losses to period-end loans retained, excluding trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of CIB’s allowance coverage ratio.

Page 16



JPMORGAN CHASE & CO.
 
 
 
 
CORPORATE & INVESTMENT BANK
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except where otherwise noted)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
BUSINESS METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory
$
585

 
$
622

 
$
503

 
$
466

 
$
542

 
(6
)%
 
8
 %
 
Equity underwriting
205

 
314

 
269

 
452

 
399

 
(35
)
 
(49
)
 
Debt underwriting
531

 
602

 
840

 
907

 
820

 
(12
)
 
(35
)
 
Total investment banking fees
$
1,321

 
$
1,538

 
$
1,612

 
$
1,825

 
$
1,761

 
(14
)
 
(25
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets under custody (“AUC”) (period-end) (in billions)
$
20,283

 
$
19,943

 
$
19,691

 
$
20,497

 
$
20,561

 
2

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Client deposits and other third-party liabilities (average) (a)
358,926

 
364,794

 
372,070

 
401,280

 
444,171

 
(2
)
 
(19
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade finance loans (period-end)
18,078

 
19,255

 
21,138

 
21,195

 
22,853

 
(6
)
 
(21
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
95% Confidence Level - Total CIB VaR (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CIB trading VaR by risk type: (b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed income (c)
$
46

 
$
42

 
$
50

 
$
41

 
$
35

 
10

 
31

 
Foreign exchange
9

 
10

 
9

 
9

 
9

 
(10
)
 

 
Equities
22

 
18

 
20

 
16

 
18

 
22

 
22

 
Commodities and other
9

 
11

 
10

 
9

 
8

 
(18
)
 
13

 
Diversification benefit to CIB trading VaR (d)
(32
)
 
(31
)
 
(35
)
 
(37
)
 
(36
)
 
(3
)
 
11

 
CIB trading VaR (b)
54

 
50

 
54

 
38

 
34

 
8

 
59

 
Credit portfolio VaR (e)
12

 
11

 
13

 
15

 
18

 
9

 
(33
)
 
Diversification benefit to CIB VaR (d)
(11
)
 
(9
)
 
(10
)
 
(10
)
 
(9
)
 
(22
)
 
(22
)
 
CIB VaR (b)(c)
$
55

 
$
52

 
$
57

 
$
43

 
$
43

 
6

 
28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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, see VaR measurement on pages 135–137 of the 2015 Annual Report.
(c)
As part of the Firm’s continuous evaluation and periodic enhancement of its VaR model calculations, during the second quarter of 2015 the Firm refined the historical proxy time series inputs to certain VaR models to more appropriately reflect the risk exposure from certain asset-backed products. Had these new time series been used as inputs into these VaR models in the first quarter of 2015, the Firm estimates they would have resulted in a reduction to average Fixed income VaR of $3 million and average CIB VaR of $2 million.
(d)
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.
(e)
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.
 
 
 
 
COMMERCIAL BANKING
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lending- and deposit-related fees
$
232

 
$
236

 
$
229

 
$
242

 
$
237

 
(2
)%
 
(2
)%
 
Asset management, administration and commissions
22

 
20

 
22

 
22

 
24

 
10

 
(8
)
 
All other income (a)
302

 
342

 
271

 
345

 
375

 
(12
)
 
(19
)
 
Noninterest revenue
556

 
598

 
522

 
609

 
636

 
(7
)
 
(13
)
 
Net interest income
1,247

 
1,162

 
1,122

 
1,130

 
1,106

 
7

 
13

 
TOTAL NET REVENUE (b)
1,803

 
1,760

 
1,644

 
1,739

 
1,742

 
2

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
304

 
117

 
82

 
182

 
61

 
160

 
398
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense
334

 
310

 
311

 
308

 
309

 
8

 
8

 
Noncompensation expense
379

 
440

 
408

 
395

 
400

 
(14
)
 
(5
)
 
TOTAL NONINTEREST EXPENSE
713

 
750

 
719

 
703

 
709

 
(5
)
 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
786

 
893

 
843

 
854

 
972

 
(12
)
 
(19
)
 
Income tax expense
290

 
343

 
325

 
329

 
374

 
(15
)
 
(22
)
 
NET INCOME
$
496

 
$
550

 
$
518

 
$
525

 
$
598

 
(10
)
 
(17
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by product
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lending
$
928

 
$
887

 
$
850

 
$
867

 
$
825

 
5

 
12

 
Treasury services
694

 
655

 
633

 
646

 
647

 
6

 
7

 
Investment banking
155

 
156

 
130

 
196

 
248

 
(1
)
 
(38
)
 
Other
26

 
62

 
31

 
30

 
22

 
(58
)
 
18

 
Total Commercial Banking net revenue
$
1,803

 
$
1,760

 
$
1,644

 
$
1,739

 
$
1,742

 
2

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment banking revenue, gross (c)
$
483

 
$
455

 
$
382

 
$
589

 
$
753

 
6

 
(36
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by client segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Middle Market Banking
$
717

 
$
702

 
$
675

 
$
688

 
$
677

 
2

 
6

 
Corporate Client Banking
501

 
470

 
446

 
532

 
564

 
7

 
(11
)
 
Commercial Term Lending
361

 
331

 
318

 
318

 
308

 
9

 
17

 
Real Estate Banking
140

 
138

 
123

 
117

 
116

 
1

 
21

 
Other
84

 
119

 
82

 
84

 
77

 
(29
)
 
9

 
Total Commercial Banking net revenue
$
1,803

 
$
1,760

 
$
1,644

 
$
1,739

 
$
1,742

 
2

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE
11

%
15

%
14

%
14

%
17

%
 
 
 
 
Overhead ratio
40

 
43

 
44

 
40

 
41

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Includes revenue from investment banking products and commercial card transactions.
(b)
Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities, as well as tax-exempt income from municipal bond activity of $120 million, $149 million, $116 million, $115 million and $113 million for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively.
(c)
Represents the total revenue from investment banking products sold to CB clients.

Page 18



JPMORGAN CHASE & CO.
 
 
 
 
COMMERCIAL BANKING
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except headcount and ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
204,602

 
$
200,700

 
$
201,157

 
$
201,377

 
$
197,931

 
2
 %
 
3
 %
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained
173,583

 
167,374

 
162,269

 
157,947

 
153,173

 
4

 
13

 
Loans held-for-sale and loans at fair value
338

 
267

 
213

 
1,506

 
507

 
27

 
(33
)
 
Total loans
$
173,921

 
$
167,641

 
$
162,482

 
$
159,453

 
$
153,680

 
4

 
13

 
           Core loans
173,316

 
166,939

 
161,662

 
158,568

 
152,659

 
4

 
14

 
Equity
16,000

 
14,000

 
14,000

 
14,000

 
14,000

 
14

 
14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period-end loans by client segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Middle Market Banking
$
52,532

 
$
51,362

 
$
51,985

 
$
51,713

 
$
51,071

 
2

 
3

 
Corporate Client Banking
33,761

 
31,871

 
29,634

 
30,171

 
28,379

 
6

 
19

 
Commercial Term Lending
64,292

 
62,860

 
60,684

 
58,314

 
55,824

 
2

 
15

 
Real Estate Banking
17,719

 
16,211

 
15,068

 
14,231

 
13,537

 
9

 
31

 
Other
5,617

 
5,337

 
5,111

 
5,024

 
4,869

 
5

 
15

 
Total Commercial Banking loans
$
173,921

 
$
167,641

 
$
162,482

 
$
159,453

 
$
153,680

 
4

 
13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
202,492

 
$
200,325

 
$
197,274

 
$
198,740

 
$
195,927

 
1

 
3

 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained
169,837

 
165,679

 
158,845

 
155,110

 
149,731

 
3

 
13

 
Loans held-for-sale and loans at fair value
448

 
188

 
359

 
870

 
557

 
138

 
(20
)
 
Total loans
$
170,285

 
$
165,867

 
$
159,204

 
$
155,980

 
$
150,288

 
3

 
13

 
Core loans
169,626

 
165,091

 
158,364

 
155,016

 
149,239

 
3

 
14

 
Client deposits and other third-party liabilities
173,079

 
178,637

 
180,892

 
197,004

 
210,046

 
(3
)
 
(18
)
 
Equity
16,000

 
14,000

 
14,000

 
14,000

 
14,000

 
14

 
14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average loans by client segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Middle Market Banking
$
51,419

 
$
51,844

 
$
51,373

 
$
51,440

 
$
50,538

 
(1
)
 
2

 
Corporate Client Banking
32,929

 
31,840

 
28,964

 
28,986

 
26,653

 
3

 
24

 
Commercial Term Lending
63,475

 
61,574

 
59,323

 
56,814

 
54,754

 
3

 
16

 
Real Estate Banking
17,021

 
15,565

 
14,487

 
13,732

 
13,472

 
9

 
26

 
Other
5,441

 
5,044

 
5,057

 
5,008

 
4,871

 
8

 
12

 
Total Commercial Banking loans
$
170,285

 
$
165,867

 
$
159,204

 
$
155,980

 
$
150,288

 
3

 
13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount
7,971

 
7,845

 
7,735

 
7,568

 
7,489

 
2

 
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT DATA AND QUALITY STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs/(recoveries)
$
6

 
$
16

 
$
(2
)
 
$
(4
)
 
$
11

 
(63
)
 
(45
)
 
Nonperforming assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans retained (a)
1,257

 
375

 
423

 
384

 
304

 
235

 
313

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

 
18

 
16

 
14

 
12

 
(100
)
 
(100
)
 
Total nonaccrual loans
1,257

 
393

 
439

 
398

 
316

 
220

 
298

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets acquired in loan satisfactions
1

 
8

 
4

 
5

 
5

 
(88
)
 
(80
)
 
Total nonperforming assets
1,258

 
401

 
443

 
403

 
321

 
214

 
292

 
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
3,099

 
2,855

 
2,782

 
2,705

 
2,519

 
9

 
23

 
Allowance for lending-related commitments
252

 
198

 
170

 
163

 
162

 
27

 
56

 
Total allowance for credit losses
3,351

 
3,053

 
2,952

 
2,868

 
2,681

 
10

 
25

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

%
0.04

%

%
(0.01
)
%
0.03

%
 
 
 
 
Allowance for loan losses to period-end loans retained
1.79

 
1.71

 
1.71

 
1.71

 
1.64

 
 
 
 
 
Allowance for loan losses to nonaccrual loans retained (a)
247

 
761

 
658

 
704

 
829

 
 
 
 
 
Nonaccrual loans to period-end total loans
0.72

 
0.23

 
0.27

 
0.25

 
0.21

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Allowance for loan losses of $278 million, $64 million, $80 million, $42 million, and $29 million was held against nonaccrual loans retained at March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively.
(b)
Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.

Page 19



JPMORGAN CHASE & CO.
 
 
 
 
ASSET MANAGEMENT
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except ratio and headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset management, administration and commissions
$
2,016

 
$
2,328

 
$
2,237

 
$
2,381

 
$
2,229

 
(13
)%
 
(10
)%
 
All other income
229

 
46

 
24

 
163

 
155

 
398

 
48

 
Noninterest revenue
2,245

 
2,374

 
2,261

 
2,544

 
2,384

 
(5
)
 
(6
)
 
Net interest income
727

 
671

 
633

 
631

 
621

 
8

 
17

 
TOTAL NET REVENUE
2,972

 
3,045

 
2,894

 
3,175

 
3,005

 
(2
)
 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
13

 
17

 
(17
)
 

 
4

 
(24
)
 
225

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense
1,241

 
1,307

 
1,218

 
1,299

 
1,289

 
(5
)
 
(4
)
 
Noncompensation expense
834

 
889

 
891

 
1,107

 
886

 
(6
)
 
(6
)
 
TOTAL NONINTEREST EXPENSE
2,075

 
2,196

 
2,109

 
2,406

 
2,175

 
(6
)
 
(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income tax expense
884

 
832

 
802

 
769

 
826

 
6

 
7

 
Income tax expense
297

 
325

 
327

 
318

 
324

 
(9
)
 
(8
)
 
NET INCOME
$
587

 
$
507

 
$
475

 
$
451

 
$
502

 
16

 
17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE BY LINE OF BUSINESS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Investment Management
$
1,499

 
$
1,615

 
$
1,483

 
$
1,670

 
$
1,533

 
(7
)
 
(2
)
 
Global Wealth Management
1,473

 
1,430

 
1,411

 
1,505

 
1,472

 
3

 

 
TOTAL NET REVENUE
$
2,972

 
$
3,045

 
$
2,894

 
$
3,175

 
$
3,005

 
(2
)
 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE
25

%
21

%
20

%
19

%
22

%
 
 
 
 
Overhead ratio
70

 
72

 
73

 
76

 
72

 
 
 
 
 
Pretax margin ratio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Investment Management
33

 
36

 
31

 
26

 
30

 
 
 
 
 
Global Wealth Management
26

 
17

 
24

 
22

 
25

 
 
 
 
 
Asset Management
30

 
27

 
28

 
24

 
27

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount
20,885

 
20,975

 
20,651

 
20,237

 
20,095

 

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of client advisors
2,750

 
2,778

 
2,796

 
2,746

 
2,803

 
(1
)
 
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Page 20



JPMORGAN CHASE & CO.
 
 
 
 
ASSET MANAGEMENT
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
131,276

 
$
131,451

 
$
131,412

 
$
134,059

 
$
126,233

 
 %
 
4
 %
 
Loans (a)
111,050

 
111,007

 
110,314

 
109,336

 
104,165

 

 
7

 
    Core loans
111,050

 
111,007

 
110,314

 
109,336

 
104,165

 

 
7

 
Deposits
152,908

 
146,766

 
140,121

 
141,179

 
155,347

 
4

 
(2
)
 
Equity
9,000

 
9,000

 
9,000

 
9,000

 
9,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (average)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
129,790

 
$
130,980

 
$
131,100

 
$
130,548

 
$
126,276

 
(1
)
 
3

 
Loans
110,497

 
110,305

 
108,741

 
107,250

 
103,286

 

 
7

 
    Core loans
110,497

 
110,305

 
108,741

 
107,250

 
103,286

 

 
7

 
Deposits
150,616

 
145,623

 
141,896

 
152,563

 
158,240

 
3

 
(5
)
 
Equity
9,000

 
9,000

 
9,000

 
9,000

 
9,000

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT DATA AND QUALITY STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs
$
9

 
$
8

 
$
2

 
$
(1
)
 
$
3

 
13
 %
 
200

 
Nonaccrual loans
335

 
218

 
229

 
209

 
175

 
54

 
91

 
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
270

 
266

 
258

 
273

 
271

 
2

 

 
Allowance for lending-related commitments
4

 
5

 
4

 
5

 
5

 
(20
)
 
(20
)
 
Total allowance for credit losses
274

 
271

 
262

 
278

 
276

 
1

 
(1
)
 
Net charge-off/(recovery) rate
0.03

%
0.03

%
0.01

%

%
0.01

%
 
 
 
 
Allowance for loan losses to period-end loans
0.24

 
0.24

 
0.23

 
0.25

 
0.26

 
 
 
 
 
Allowance for loan losses to nonaccrual loans
81

 
122

 
113

 
131

 
155

 
 
 
 
 
Nonaccrual loans to period-end loans
0.30

 
0.20

 
0.21

 
0.19

 
0.17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Included $27.7 billion, $26.6 billion, $25.4 billion, $24.0 billion, and $23.0 billion of prime mortgage loans reported in the Consumer, excluding credit card, loan portfolio at March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively.

Page 21



JPMORGAN CHASE & CO.
 
 
 
 
ASSET MANAGEMENT
 
 
 
 
FINANCIAL HIGHLIGHTS, CONTINUED
 
 
 
 
(in billions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mar 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Mar 31,
 
CLIENT ASSETS
2016
 
2015
 
2015
 
2015
 
2015
 
2015
 
2015
 
Assets by asset class
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquidity
$
424

 
$
464

 
$
463

 
$
466

 
$
454

 
(9
)%
 
(7
)%
 
Fixed income
365

 
342

 
351

 
357

 
359

 
7

 
2

 
Equity
346

 
353

 
336

 
380

 
380

 
(2
)
 
(9
)
 
Multi-asset and alternatives
541

 
564

 
561

 
578

 
566

 
(4
)
 
(4
)
 
TOTAL ASSETS UNDER MANAGEMENT
1,676

 
1,723

 
1,711

 
1,781

 
1,759

 
(3
)
 
(5
)
 
Custody/brokerage/administration/deposits
647

 
627

 
612

 
642

 
646

 
3

 

 
TOTAL CLIENT ASSETS
$
2,323

 
$
2,350

 
$
2,323

 
$
2,423

 
$
2,405

 
(1
)
 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MEMO:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alternatives client assets (a)
$
151

 
$
172

 
$
172

 
$
173

 
$
168

 
(12
)
 
(10
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets by client segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private Banking
$
428

 
$
437

 
$
438

 
$
452

 
$
440

 
(2
)
 
(3
)
 
Institutional
798

 
816

 
816

 
830

 
825

 
(2
)
 
(3
)
 
Retail
450

 
470

 
457

 
499

 
494

 
(4
)
 
(9
)
 
TOTAL ASSETS UNDER MANAGEMENT
$
1,676

 
$
1,723

 
$
1,711

 
$
1,781

 
$
1,759

 
(3
)
 
(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private Banking
$
1,057

 
$
1,050

 
$
1,037

 
$
1,080

 
$
1,073

 
1

 
(1
)
 
Institutional
814

 
824

 
823

 
838

 
833

 
(1
)
 
(2
)
 
Retail
452

 
476

 
463

 
505

 
499

 
(5
)
 
(9
)
 
TOTAL CLIENT ASSETS
$
2,323

 
$
2,350

 
$
2,323

 
$
2,423

 
$
2,405

 
(1
)
 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets under management rollforward
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
1,723

 
$
1,711

 
$
1,781

 
$
1,759

 
$
1,744

 
 
 
 
 
Net asset flows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquidity
(27
)
 
(1
)
 
(5
)
 
6

 
(1
)
 
 
 
 
 
Fixed income
11

 
(7
)
 
(5
)
 
3

 
2

 
 
 
 
 
Equity
(5
)
 
3

 
(5
)
 
(1
)
 
4

 
 
 
 
 
Multi-asset and alternatives
6

 
(5
)
 
6

 
11

 
10

 
 
 
 
 
Market/performance/other impacts
(32
)
 
22

 
(61
)
 
3

 

 
 
 
 
 
Ending balance
$
1,676

 
$
1,723

 
$
1,711

 
$
1,781

 
$
1,759

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Client assets rollforward
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
2,350

 
$
2,323

 
$
2,423

 
$
2,405

 
$
2,387

 
 
 
 
 
Net asset flows
(7
)
 
1

 
(7
)
 
16

 
17

 
 
 
 
 
Market/performance/other impacts
(20
)
 
26

 
(93
)
 
2

 
1

 
 
 
 
 
Ending balance
$
2,323

 
$
2,350

 
$
2,323

 
$
2,423

 
$
2,405

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


Page 22



JPMORGAN CHASE & CO.
 
 
 
 
CORPORATE
 
 
 
 
FINANCIAL HIGHLIGHTS
 
 
 
 
(in millions, except headcount data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
 
 
INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal transactions
$
97

 
$
(56
)
 
$
(70
)
 
$
67

 
$
100

 
NM

 
(3
)%
 
 
 
Securities gains
51

 
72

 
25

 
40

 
53

 
(29
)
 
(4
)
 
 
 
All other income (a)
121

 
571

 
118

 
(7
)
 
(113
)
 
(79
)
 
NM

 
 
 
Noninterest revenue
269

 
587

 
73

 
100

 
40

 
(54
)
 
NM

 
 
 
Net interest income
(213
)
 
64

 
(123
)
 
(221
)
 
(253
)
 
NM

 
16

 
 
 
TOTAL NET REVENUE (b)
56

 
651

 
(50
)
 
(121
)
 
(213
)
 
(91
)
 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
(2
)
 
(2
)
 
(4
)
 
1

 
(5
)
 

 
60

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE (c)
153

 
609

 
172

 
44

 
152

 
(75
)
 
1

 
 
 
Income/(loss) before income tax expense/(benefit)
(95
)
 
44

 
(218
)
 
(166
)
 
(360
)
 
NM

 
74

 
 
 
Income tax benefit (d)
(63
)
 
(178
)
 
(1,935
)
 
(606
)
 
(418
)
 
65

 
85

 
 
 
NET INCOME/(LOSS)
$
(32
)
 
$
222

 
$
1,717

 
$
440

 
$
58

 
NM

 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MEMO:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL NET REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Treasury and Chief Investment Office (“CIO”)
(94
)
 
137

 
(89
)
 
(163
)
 
(378
)
 
NM

 
75

 
 
 
Other Corporate
150

 
514

 
39

 
42

 
165

 
(71
)
 
(9
)
 
 
 
TOTAL NET REVENUE
$
56

 
$
651

 
$
(50
)
 
$
(121
)
 
$
(213
)
 
(91
)
 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME/(LOSS)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Treasury and CIO
(111
)
 
138

 
(40
)
 
(112
)
 
(221
)
 
NM

 
50

 
 
 
Other Corporate
79

 
84

 
1,757

 
552

 
279

 
(6
)
 
(72
)
 
 
 
TOTAL NET INCOME/(LOSS)
$
(32
)
 
$
222

 
$
1,717

 
$
440

 
$
58

 
NM

 
NM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET DATA (period-end)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
781,806

 
$
768,204

 
$
798,680

 
$
821,736

 
$
942,556

 
2

 
(17
)
 
 
 
Loans
1,983

 
2,187

 
2,332

 
2,480

 
2,694

 
(9
)
 
(26
)
 
 
 
Core loans (e)
1,978

 
2,182

 
2,327

 
2,474

 
2,672

 
(9
)
 
(26
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Headcount
29,572

 
29,617

 
29,307

 
27,985

 
27,019

 

 
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SUPPLEMENTAL INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TREASURY and CHIEF INVESTMENT OFFICE (“CIO”)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities gains
$
51

 
$
72

 
$
25

 
$
40

 
$
53

 
(29
)%
 
(4
)%
 
 
 
Investment securities portfolio (average) (f)
283,443

 
296,693

 
306,370

 
322,954

 
333,692

 
(4
)
 
(15
)
 
 
 
Investment securities portfolio (period-end) (g)
282,424

 
287,777

 
303,057

 
314,048

 
327,859

 
(2
)
 
(14
)
 
 
 
Mortgage loans (average)
2,005

 
2,221

 
2,400

 
2,599

 
2,790

 
(10
)
 
(28
)
 
 
 
Mortgage loans (period-end)
1,927

 
2,136

 
2,293

 
2,455

 
2,664

 
(10
)
 
(28
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private equity portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carrying value
$
2,004

 
$
2,103

 
$
2,192

 
$
2,718

 
$
3,064

 
(5
)
 
(35
)
 
 
 
Cost
3,512

 
3,798

 
3,832

 
4,252

 
4,485

 
(8
)
 
(22
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Included revenue related to a legal settlement of $514 million for the three months ended December 31, 2015.
(b)
Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $218 million, $219 million, $215 million, $202 million, and $203 million for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively.
(c)
Included legal expense of $407 million, $102 million, and $305 million for the three months ended December 31, 2015, September 30, 2015, and March 31, 2015, respectively; legal expense for the three months ended March 31, 2016 and June 30, 2015 was not material.
(d)
The three months ended September 30, 2015 reflected tax benefits of $1.9 billion, due to the resolution of various tax audits.
(e)
Average core loans were $2.1 billion, $2.3 billion, $2.4 billion $2.6 billion, and $2.8 billion for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively.
(f)
Average investment securities included held-to-maturity balances of $48.3 billion, $49.5 billion, $50.7 billion, $50.7 billion, and $49.3 billion for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively.
(g)
Period-end investment securities included held-to-maturity balances of $47.9 billion, $49.1 billion, $50.2 billion, $51.6 billion, and $49.3 billion at March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, respectively.

Page 23



JPMORGAN CHASE & CO.
 
 
 
 
CREDIT-RELATED INFORMATION
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mar 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Mar 31,
 
 
2016
 
2015
 
2015
 
2015
 
2015
 
2015
 
2015
 
CREDIT EXPOSURE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card loans (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained, excluding PCI loans
$
314,128

 
$
303,357

 
$
289,496

 
$
272,975

 
$
259,561

 
4
 %
 
21
 %
 
Loans - PCI
39,743

 
40,998

 
42,236

 
43,806

 
45,356

 
(3
)
 
(12
)
 
Total loans retained
353,871

 
344,355

 
331,732

 
316,781

 
304,917

 
3

 
16

 
Loans held-for-sale
321

 
466

 
237

 
1,505

 
298

 
(31
)
 
8

 
Total consumer, excluding credit card loans
354,192

 
344,821

 
331,969

 
318,286

 
305,215

 
3

 
16

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit card loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained (b)
126,012

 
131,387

 
125,634

 
124,705

 
120,835

 
(4
)
 
4

 
Loans held-for-sale
78

 
76

 
1,345

 
1,320

 
2,422

 
3

 
(97
)
 
Total credit card loans
126,090

 
131,463

 
126,979

 
126,025

 
123,257

 
(4
)
 
2

 
Total consumer loans
480,282

 
476,284

 
458,948

 
444,311

 
428,472

 
1

 
12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wholesale loans (c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained
364,312

 
357,050

 
346,927

 
338,219

 
331,219

 
2

 
10

 
Loans held-for-sale and loans at fair value
2,719

 
3,965

 
3,582

 
8,717

 
4,494

 
(31
)
 
(39
)
 
Total wholesale loans
367,031

 
361,015

 
350,509

 
346,936

 
335,713

 
2

 
9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans
847,313

 
837,299

 
809,457

 
791,247

 
764,185

 
1

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative receivables
70,209

 
59,677

 
68,668

 
67,451

 
81,574

 
18

 
(14
)
 
Receivables from customers and other (d)
16,294

 
13,497

 
17,016

 
22,591

 
22,777

 
21

 
(28
)
 
Total credit-related assets
86,503

 
73,174

 
85,684

 
90,042

 
104,351

 
18

 
(17
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lending-related commitments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card
60,744

 
58,478

 
60,005

 
59,817

 
60,151

 
4

 
1

 
Credit card
532,224

 
515,518

 
526,433

 
523,717

 
533,511

 
3

 

 
Wholesale
367,466

 
366,399

 
354,348

 
352,048

 
355,504

 

 
3

 
Total lending-related commitments
960,434

 
940,395

 
940,786

 
935,582

 
949,166

 
2

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total credit exposure
$
1,894,250

 
$
1,850,868

 
$
1,835,927

 
$
1,816,871

 
$
1,817,702

 
2

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Memo: Total by category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer exposure (e)
$
1,073,377

 
$
1,050,405

 
$
1,045,505

 
$
1,027,958

 
$
1,022,239

 
2

 
5

 
Wholesale exposures (f)
820,873

 
800,463

 
790,422

 
788,913

 
795,463

 
3

 
3

 
Total credit exposure
$
1,894,250

 
$
1,850,868

 
$
1,835,927

 
$
1,816,871

 
$
1,817,702

 
2

 
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: The Firm provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, see page 28.

(a)
Includes loans reported in CCB, prime mortgage and home equity loans reported in AM, and prime mortgage loans reported in Corporate.
(b)
Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income.
(c)
Includes loans reported in CIB, CB and AM business segments and Corporate.
(d)
Predominantly includes receivables from customers, which represent margin loans to prime and retail brokerage customers; these are classified in accrued interest and accounts receivable on the Consolidated balance sheets.
(e)
Represents total consumer loans and lending-related commitments.
(f)
Represents total wholesale loans and lending-related commitments, derivative receivables and receivables from customers.

Page 24



JPMORGAN CHASE & CO.
 
 
 
 
CREDIT-RELATED INFORMATION, CONTINUED
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mar 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Mar 31,
 
 
2016
 
2015
 
2015
 
2015
 
2015
 
2015
 
2015
 
NONPERFORMING ASSETS (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer nonaccrual loans (b)(c)
$
5,225

 
$
5,413

 
$
5,530

 
$
5,984

 
$
6,241

 
(3
)
 
(16
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wholesale nonaccrual loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans retained
2,203

 
988

 
1,086

 
873

 
696

 
123

 
217

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

 
28

 
28

 
26

 
24

 
(75
)
 
(71
)
 
Total wholesale nonaccrual loans
2,210

 
1,016

 
1,114

 
899

 
720

 
118

 
207

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total nonaccrual loans
7,435

 
6,429

 
6,644

 
6,883

 
6,961

 
16

 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative receivables
212

 
204

 
235

 
256

 
249

 
4

 
(15
)
 
Assets acquired in loan satisfactions
376

 
401

 
415

 
449

 
504

 
(6
)
 
(25
)
 
Total nonperforming assets
8,023

 
7,034

 
7,294

 
7,588

 
7,714

 
14

 
4

 
Wholesale lending-related commitments (d)
722

 
193

 
176

 
133

 
131

 
274

 
451

 
Total nonperforming exposure
$
8,745

 
$
7,227

 
$
7,470

 
$
7,721

 
$
7,845

 
21

 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONACCRUAL LOAN-RELATED RATIOS
 
 
 
 
 
 
 
 
 
 
 
Total nonaccrual loans to total loans
0.88
%
 
0.77
%
 
0.82
%
 
0.87
%
 
0.91
%
 
 
 
 
 
Total consumer, excluding credit card nonaccrual loans to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
total consumer, excluding credit card loans
1.48

 
1.57

 
1.67

 
1.88

 
2.04

 
 
 
 
 
Total wholesale nonaccrual loans to total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
wholesale loans
0.60

 
0.28

 
0.32

 
0.26

 
0.21

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
At March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $5.7 billion, $6.3 billion, $6.6 billion, $7.0 billion and $7.5 billion, respectively, that are 90 or more days past due; (2) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $269 million, $290 million, $289 million, $282 million and $346 million, respectively, that are 90 or more days past due; (3) real estate owned (“REO”) insured by U.S. government agencies of $360 million, $343 million, $327 million, $384 million and $469 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”). Under this guidance, non modified credit card loans are charged off by the end of the month in which the account becomes 180 days past due, while modified credit card loans are charged off when the account becomes 120 days past due. Moreover, all credit card loans must be charged off within 60 days of receiving notification about certain specified events (e.g., bankruptcy of the borrower).
(b)
Includes nonaccrual loans held-for-sale of $61 million, $98 million, $212 million and $16 million at March 31, 2016, December 31, 2015, June 30, 2015, and March 31, 2015, respectively. There were no nonaccrual loans held-for-sale at September 30, 2015.
(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.
 
 
 
 
CREDIT-RELATED INFORMATION, CONTINUED
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUARTERLY TRENDS
 
 
 
 
 
 
 
 
 
 
 
 
1Q16 Change
 
 
1Q16
 
4Q15
 
3Q15
 
2Q15
 
1Q15
 
4Q15
 
1Q15
 
SUMMARY OF CHANGES IN THE ALLOWANCES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
13,555

 
$
13,466

 
$
13,915

 
$
14,065

 
$
14,185

 
1
 %
 
(4
)%
 
Net charge-offs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross charge-offs
1,357

 
1,300

 
1,305

 
1,284

 
1,352

 
4

 

 
Gross recoveries
(247
)
 
(236
)
 
(342
)
 
(277
)
 
(300
)
 
(5
)
 
18

 
Net charge-offs
1,110

 
1,064

 
963

 
1,007

 
1,052

 
4

 
6

 
Write-offs of PCI loans and other (a)
47

 
46

 
52

 
55

 
55

 
2

 
(15
)
 
Provision for loan losses
1,596

 
1,200

 
567

 
908

 
988

 
33

 
62

 
Other

 
(1
)
 
(1
)
 
4

 
(1
)
 
100

 
100

 
Ending balance
$
13,994

 
$
13,555

 
$
13,466

 
$
13,915

 
$
14,065

 
3

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LENDING-RELATED COMMITMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
786

 
$
735

 
$
620

 
$
593

 
$
622

 
7

 
26

 
Provision for lending-related commitments
228

 
51

 
115

 
27

 
(29
)
 
347

 
NM

 
Ending balance
$
1,014

 
$
786

 
$
735

 
$
620

 
$
593

 
29

 
71

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total allowance for credit losses
$
15,008

 
$
14,341

 
$
14,201

 
$
14,535

 
$
14,658

 
5

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET CHARGE-OFF/(RECOVERY) RATES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer retained, excluding credit card loans (b)
0.25
%
 
0.31
%
 
0.25
%
 
0.29
 %
 
0.36
%
 
 
 
 
 
Credit card retained loans
2.62

 
2.42

 
2.41

 
2.61

 
2.62

 
 
 
 
 
Total consumer retained loans
0.89

 
0.88

 
0.85

 
0.95

 
1.01

 
 
 
 
 
Wholesale retained loans
0.07

 
0.03

 

 
(0.02
)
 

 
 
 
 
 
Total retained loans
0.53

 
0.52

 
0.49

 
0.53

 
0.57

 
 
 
 
 
Consumer retained loans, excluding credit card and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PCI loans
0.29

 
0.35

 
0.29

 
0.34

 
0.42

 
 
 
 
 
Consumer retained loans, excluding PCI loans
0.97

 
0.97

 
0.94

 
1.06

 
1.14

 
 
 
 
 
Total retained, excluding PCI loans
0.56

 
0.54

 
0.51

 
0.56

 
0.61

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Memo: Average retained loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer retained, excluding credit card loans
$
348,916

 
$
339,637

 
$
323,458

 
$
311,074

 
$
299,789

 
3

 
16

 
Credit card retained loans
127,227

 
126,903

 
125,048

 
122,732

 
122,352

 

 
4

 
Total average retained consumer loans
476,143

 
466,540

 
448,506

 
433,806

 
422,141

 
2

 
13

 
Wholesale retained loans
360,306

 
350,370

 
339,172

 
331,924

 
327,895

 
3

 
10

 
Total average retained loans
$
836,449

 
$
816,910

 
$
787,678

 
$
765,730

 
$
750,036

 
2

 
12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer retained, excluding credit card and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PCI loans
$
308,526

 
$
298,047

 
$
280,475

 
$
266,567

 
$
253,829

 
4

 
22

 
Consumer retained, excluding PCI loans
435,753

 
424,950

 
405,524

 
389,299

 
376,181

 
3

 
16

 
Total retained, excluding PCI loans
796,055

 
775,316

 
744,692

 
721,219

 
704,072

 
3

 
13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan is recognized when the underlying loan is removed from a pool (e.g., upon liquidation).
(b)
The net charge-off rates exclude the write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans.

Page 26



JPMORGAN CHASE & CO.
 
 
 
 
CREDIT-RELATED INFORMATION, CONTINUED
 
 
 
(in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mar 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
Mar 31,
 
Dec 31,
 
Sep 30,
 
Jun 30,
 
Mar 31,
 
Dec 31,
 
Mar 31,
 
 
2016
 
2015
 
2015
 
2015
 
2015
 
2015
 
2015
 
ALLOWANCE COMPONENTS AND RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-specific (a)
$
371

 
$
364

 
$
359

 
$
436

 
$
537

 
2
 %
 
(31
)%
 
Formula-based
2,694

 
2,700

 
2,702

 
2,841

 
3,065

 

 
(12
)
 
PCI
2,695

 
2,742

 
2,788

 
3,215

 
3,270

 
(2
)
 
(18
)
 
Total consumer, excluding credit card
5,760

 
5,806

 
5,849

 
6,492

 
6,872

 
(1
)
 
(16
)
 
Credit card
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-specific (a)(b)
427

 
460

 
485

 
518

 
458

 
(7
)
 
(7
)
 
Formula-based
3,007

 
2,974

 
2,949

 
2,916

 
2,976

 
1

 
1

 
Total credit card
3,434

 
3,434

 
3,434

 
3,434

 
3,434

 

 

 
Total consumer
9,194

 
9,240

 
9,283

 
9,926

 
10,306

 

 
(11
)
 
Wholesale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-specific (a)
565

 
274

 
281

 
147

 
115

 
106

 
391

 
Formula-based
4,235

 
4,041

 
3,902

 
3,842

 
3,644

 
5

 
16

 
Total wholesale
4,800

 
4,315

 
4,183

 
3,989

 
3,759

 
11

 
28

 
Total allowance for loan losses
13,994

 
13,555

 
13,466

 
13,915

 
14,065

 
3

 
(1
)
 
Allowance for lending-related commitments
1,014

 
786

 
735

 
620

 
593

 
29

 
71

 
Total allowance for credit losses
$
15,008

 
$
14,341

 
$
14,201

 
$
14,535

 
$
14,658

 
5

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card allowance, to total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
consumer, excluding credit card retained loans
1.63
%

1.69
%

1.76
%

2.05
%

2.25
%

 
 
 
 
Credit card allowance to total credit card retained loans
2.73

 
2.61

 
2.73

 
2.75

 
2.84

 
 
 
 
 
Wholesale allowance to total wholesale retained loans
1.32

 
1.21

 
1.21

 
1.18

 
1.13

 
 
 
 
 
Wholesale allowance to total wholesale retained loans,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
excluding trade finance and conduits (c)
1.47

 
1.35

 
1.34

 
1.30

 
1.26

 
 
 
 
 
Total allowance to total retained loans
1.66

 
1.63

 
1.67

 
1.78

 
1.86

 
 
 
 
 
Consumer, excluding credit card allowance, to consumer,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
excluding credit card retained nonaccrual loans (d)
112

 
109

 
106

 
112

 
110

 
 
 
 
 
Total allowance, excluding credit card allowance, to retained
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 nonaccrual loans, excluding credit card nonaccrual loans (d)
143

 
161

 
152

 
158

 
154

 
 
 
 
 
Wholesale allowance to wholesale retained nonaccrual loans
218

 
437

 
385

 
457

 
540

 
 
 
 
 
Total allowance to total retained nonaccrual loans
190

 
215

 
204

 
209

 
203

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT RATIOS, excluding PCI loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, excluding credit card allowance, to total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
consumer, excluding credit card retained loans
0.98

 
1.01

 
1.06

 
1.20

 
1.39

 
 
 
 
 
Total allowance to total retained loans
1.40

 
1.37

 
1.40

 
1.45

 
1.52

 
 
 
 
 
Consumer, excluding credit card allowance, to consumer,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
excluding credit card retained nonaccrual loans (d)
59

 
58

 
55

 
57

 
58

 
 
 
 
 
Allowance, excluding credit card allowance, to retained non-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
accrual loans, excluding credit card nonaccrual loans (d)
107

 
117

 
109

 
109

 
106

 
 
 
 
 
Total allowance to total retained nonaccrual loans
153

 
172

 
161

 
161

 
156

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 is related to loans that have been modified in a TDR; such allowance is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
(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, see footnote (a) on page 25.


Page 27



JPMORGAN CHASE & CO.
 
 
 
NON-GAAP FINANCIAL MEASURES AND OTHER NOTES
 
 
 
 
 
 
 
Non-GAAP Financial Measures

The following are several of the non-GAAP financial measures that the Firm uses:

(a)
In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of the lines of business on a “managed” basis. The Firm’s definition of managed basis starts 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. This non-GAAP financial measure allows 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)
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 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 wholesale allowance coverage ratio.

(c)
Tangible common equity (“TCE”), Return on tangible common equity (“ROTCE”), and Tangible book value per share (“TBVPS”). 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.

(d)
Corporate & Investment Bank calculates the ratio of the allowance for loan losses to end-of-period loans excluding the impact of consolidated Firm-administered multi-seller conduits and trade finance loans, to provide a more meaningful assessment of CIB’s allowance coverage ratio.



Other Notes

(1) Effective January 1, 2016, the Firm adopted new accounting guidance related to the recognition and measurement of financial liabilities where the fair value option has been elected. This guidance requires the portion of the total change in fair value caused by changes in the Firm’s own credit risk (DVA) to be presented separately in other comprehensive income; previously these amounts were recognized in net income. The guidance was required to be applied as of the beginning of the fiscal year of adoption by means of a cumulative effect adjustment to the Consolidated balance sheet, which resulted in a reclassification from retained earnings to accumulated other comprehensive income. The adoption of this guidance had no material impact on the Firm’s Consolidated Financial Statements.

(2) Effective January 1, 2016, the Firm adopted new accounting guidance related to share-based payments, including the accounting for income taxes and classification in the statement of cash flows. The guidance requires that all excess tax benefits and tax deficiencies that pertain to share-based payment arrangements be recognized within income tax expense in the Consolidated statements of income; previously such amounts were recognized within additional paid-in capital. The adoption of this guidance had no material impact on the Firm’s Consolidated Financial Statements.


Page 28