Interest Income and Interest Expense

6 Months Ended

Jun. 30, 2011

Interest Income (Expense), Net [Abstract]

INTEREST INCOME AND INTEREST EXPENSE

INTEREST INCOME AND INTEREST EXPENSE

For a description of JPMorgan Chase’s accounting policies regarding interest income and interest expense, see Note 8 on page 200 of JPMorgan Chase’s 2010Annual Report.

Details of interest income and interest expense were as follows.

	Three months ended June 30,				Six months ended June 30,
(in millions)	2011		2010		2011		2010
Interest income
Loans	$	9,140	$	9,969	$	18,647	$	20,526
Securities	2,590		2,517		4,806		5,421
Trading assets	2,966		2,574		5,851		5,334
Federal funds sold and securities purchased under resale agreements	604		398		1,147		805
Securities borrowed	30		32		77		61
Deposits with banks	144		92		245		187
Other assets(a)	158		137		306		230
Total interest income	15,632		15,719		31,079		32,564
Interest expense
Interest-bearing deposits	1,123		883		2,045		1,727
Short-term and other liabilities(b)(c)	890		496		1,708		1,058
Long-term debt(c)	1,581		1,347		3,169		2,746
Beneficial interests issued by consolidated VIEs	202		306		416		636
Total interest expense	3,796		3,032		7,338		6,167
Net interest income	11,836		12,687		23,741		26,397
Provision for credit losses	1,810		3,363		2,979		10,373
Net interest income after provision for credit losses	$	10,026	$	9,324	$	20,762	$	16,024

(a) Predominantly margin loans.

(b) Includes brokerage customer payables.

(c) Effective January 1, 2011, the long-term portion of advances from FHLBs was reclassified from other borrowed funds to long-term debt. The related interest expense for the prior-year period has also been reclassified to conform with the current presentation.