Condensed Average Balance Sheets and Annualized Yields
6
Reconciliation from Reported to Managed Basis
7
Segment Results - Managed Basis
8
Capital and Other Selected Balance Sheet Items
9
Earnings Per Share and Related Information
10
Business Segment Results
Consumer & Community Banking (“CCB”)
11–14
Corporate & Investment Bank (“CIB”)
15–17
Commercial Banking (“CB”)
18–19
Asset & Wealth Management (“AWM”)
20–22
Corporate
23
Credit-Related Information
24–27
Non-GAAP Financial Measures
28
Glossary of Terms and Acronyms (a)
(a) Refer to the Glossary of Terms and Acronyms on pages 305–311 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”) and
the Glossary of Terms and Acronyms and Line of Business Metrics on pages 185-190 and pages 191-193, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30,
2021.
JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share and ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
SELECTED INCOME STATEMENT DATA
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
Reported Basis
Total net revenue (a)
$
29,257
$
29,647
$
30,479
$
32,266
$
29,335
(1)
%
—
%
$
121,649
$
119,951
1
%
Total noninterest expense
17,888
17,063
17,667
18,725
16,048
5
11
71,343
66,656
7
Pre-provision profit (b)
11,369
12,584
12,812
13,541
13,287
(10)
(14)
50,306
53,295
(6)
Provision for credit losses
(1,288)
(1,527)
(2,285)
(4,156)
(1,889)
16
32
(9,256)
17,480
NM
NET INCOME
10,399
11,687
11,948
14,300
12,136
(11)
(14)
48,334
29,131
66
Managed Basis (c)
Total net revenue
30,349
30,441
31,395
33,119
30,161
—
1
125,304
122,929
2
Total noninterest expense
17,888
17,063
17,667
18,725
16,048
5
11
71,343
66,656
7
Pre-provision profit (b)
12,461
13,378
13,728
14,394
14,113
(7)
(12)
53,961
56,273
(4)
Provision for credit losses
(1,288)
(1,527)
(2,285)
(4,156)
(1,889)
16
32
(9,256)
17,480
NM
NET INCOME
10,399
11,687
11,948
14,300
12,136
(11)
(14)
48,334
29,131
66
EARNINGS PER SHARE DATA
Net income: Basic
$
3.33
$
3.74
$
3.79
$
4.51
$
3.80
(11)
(12)
$
15.39
$
8.89
73
Diluted
3.33
3.74
3.78
4.50
3.79
(11)
(12)
15.36
8.88
73
Average shares: Basic
2,977.3
2,999.9
3,036.6
3,073.5
3,079.7
(1)
(3)
3,021.5
3,082.4
(2)
Diluted
2,981.8
3,005.1
3,041.9
3,078.9
3,085.1
(1)
(3)
3,026.6
3,087.4
(2)
MARKET AND PER COMMON SHARE DATA
Market capitalization
$
466,206
$
483,748
$
464,778
$
460,820
$
387,492
(4)
20
$
466,206
$
387,492
20
Common shares at period-end
2,944.1
2,955.3
2,988.2
3,027.1
3,049.4
—
(3)
2,944.1
3,049.4
(3)
Book value per share
88.07
86.36
84.85
82.31
81.75
2
8
88.07
81.75
8
Tangible book value per share (“TBVPS”) (b)
71.53
69.87
68.91
66.56
66.11
2
8
71.53
66.11
8
Cash dividends declared per share
1.00
1.00
(f)
0.90
0.90
0.90
—
11
3.80
3.60
6
FINANCIAL RATIOS (d)
Return on common equity (“ROE”)
16
%
18
%
18
%
23
%
19
%
19
%
12
%
Return on tangible common equity (“ROTCE”) (b)
19
22
23
29
24
23
14
Return on assets
1.08
1.24
1.29
1.61
1.42
1.30
0.91
CAPITAL RATIOS (e)
Common equity Tier 1 (“CET1”) capital ratio
13.0
%
(g)
12.9
%
13.0
%
13.1
%
13.1
%
13.0
%
(g)
13.1
%
Tier 1 capital ratio
15.0
(g)
15.0
15.1
15.0
15.0
15.0
(g)
15.0
Total capital ratio
16.8
(g)
16.9
17.1
17.2
17.3
16.8
(g)
17.3
Tier 1 leverage ratio
6.5
(g)
6.6
6.6
6.7
7.0
6.5
(g)
7.0
Supplementary leverage ratio (“SLR”)
5.4
(g)
5.5
5.4
6.7
6.9
5.4
(g)
6.9
(a)In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits from accounts payable and other liabilities to other assets to be a reduction to the carrying value of certain tax-oriented investments. The reclassification also resulted in an increase in income tax expense and a corresponding increase in other income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation, including the Firm’s effective income tax rate. The reclassification did not change the Firm’s results of operations on a managed basis.
(b)Pre-provision profit, TBVPS and ROTCE are each non-GAAP financial measures. Tangible common equity (“TCE”) is also a non-GAAP financial measure; refer to page 9 for a reconciliation of common stockholders’ equity to TCE. Refer to page 28 for a further discussion of these measures.
(c)Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.
(d)Quarterly ratios are based upon annualized amounts.
(e)The capital metrics reflect the relief provided by the Federal Reserve Board (the “Federal Reserve”) in response to the COVID-19 pandemic, including the Current Expected Credit Losses ("CECL") capital transition provisions that became effective in the first quarter of 2020 and expired on December 31, 2021. For the periods ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $2.9 billion, $3.3 billion, $3.8 billion, $4.5 billion and $5.7 billion, respectively. The cumulative impact of $2.9 billion not recognized in CET1 capital at December 31, 2021 will be phased in at 25% per year beginning January 1, 2022. For the periods ended March 31, 2021 and December 31, 2020, the SLR reflected the temporary exclusions of U.S. Treasury securities and deposits at Federal Reserve Banks, which became effective April 1, 2020 and remained in effect through March 31, 2021. Refer to Capital Risk Management on pages 48-53 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021 for additional information on the Firm’s capital metrics. Refer to Regulatory Developments Relating to the COVID-19 Pandemic on pages 52-53 and Capital Risk Management on pages 91-101 of the Firm’s 2020 Form 10-K for additional information.
(f)On September 21, 2021, the Board of Directors declared a quarterly common stock dividend of $1.00 per share.
(g)Estimated.
Page 2
JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
SELECTED BALANCE SHEET DATA (period-end)
Total assets (a)
$
3,743,567
$
3,757,576
$
3,684,256
$
3,689,336
$
3,384,757
—
%
11
%
$
3,743,567
$
3,384,757
11
%
Loans:
Consumer, excluding credit card loans
323,306
328,164
329,685
324,908
318,579
(1)
1
323,306
318,579
1
Credit card loans
154,296
143,166
141,802
132,493
144,216
8
7
154,296
144,216
7
Wholesale loans
600,112
573,285
569,467
553,906
550,058
5
9
600,112
550,058
9
Total Loans
1,077,714
1,044,615
1,040,954
1,011,307
1,012,853
3
6
1,077,714
1,012,853
6
Deposits:
U.S. offices:
Noninterest-bearing
638,879
656,438
639,114
629,139
572,711
(3)
12
638,879
572,711
12
Interest-bearing
1,432,578
1,344,092
1,281,432
1,266,856
1,197,032
7
20
1,432,578
1,197,032
20
Non-U.S. offices:
Noninterest-bearing
26,229
28,589
24,723
22,661
23,435
(8)
12
26,229
23,435
12
Interest-bearing
364,617
373,234
359,948
359,456
351,079
(2)
4
364,617
351,079
4
Total deposits
2,462,303
2,402,353
2,305,217
2,278,112
2,144,257
2
15
2,462,303
2,144,257
15
Long-term debt
301,005
298,465
299,926
279,427
281,685
1
7
301,005
281,685
7
Common stockholders’ equity
259,289
255,203
253,548
249,151
249,291
2
4
259,289
249,291
4
Total stockholders’ equity
294,127
290,041
286,386
280,714
279,354
1
5
294,127
279,354
5
Loans-to-deposits ratio
44
%
43
%
45
%
44
%
47
%
44
%
47
%
Headcount
271,025
265,790
260,110
259,350
255,351
2
6
271,025
255,351
6
95% CONFIDENCE LEVEL - TOTAL VaR
Average VaR
$
37
$
36
(c)
$
43
$
106
$
96
3
(61)
LINE OF BUSINESS NET REVENUE (b)
Consumer & Community Banking
$
12,275
$
12,521
$
12,760
$
12,517
$
12,728
(2)
(4)
$
50,073
$
51,268
(2)
Corporate & Investment Bank
11,534
12,396
13,214
14,605
11,352
(7)
2
51,749
49,284
5
Commercial Banking
2,612
2,520
2,483
2,393
2,463
4
6
10,008
9,313
7
Asset & Wealth Management
4,473
4,300
4,107
4,077
3,867
4
16
16,957
14,240
19
Corporate
(545)
(1,296)
(1,169)
(473)
(249)
58
(119)
(3,483)
(1,176)
(196)
TOTAL NET REVENUE
$
30,349
$
30,441
$
31,395
$
33,119
$
30,161
—
1
$
125,304
$
122,929
2
LINE OF BUSINESS NET INCOME/(LOSS)
Consumer & Community Banking
$
4,227
$
4,341
$
5,634
$
6,728
$
4,325
(3)
(2)
$
20,930
$
8,217
155
Corporate & Investment Bank
4,847
5,562
4,985
5,740
5,349
(13)
(9)
21,134
17,094
24
Commercial Banking
1,251
1,407
1,420
1,168
2,034
(11)
(38)
5,246
2,578
103
Asset & Wealth Management
1,146
1,194
1,153
1,244
786
(4)
46
4,737
2,992
58
Corporate
(1,072)
(817)
(1,244)
(580)
(358)
(31)
(199)
(3,713)
(1,750)
(112)
NET INCOME
$
10,399
$
11,687
$
11,948
$
14,300
$
12,136
(11)
(14)
$
48,334
$
29,131
66
(a)In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.
(c)Prior-period amount has been revised to conform with the current presentation.
Page 3
JPMORGAN CHASE & CO.
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share and ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
REVENUE
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
Investment banking fees
$
3,494
$
3,282
$
3,470
$
2,970
$
2,583
6
%
35
%
$
13,216
$
9,486
39
%
Principal transactions
2,182
3,546
4,076
6,500
3,321
(38)
(34)
16,304
18,021
(10)
Lending- and deposit-related fees
1,784
1,801
1,760
1,687
1,727
(1)
3
7,032
6,511
8
Asset management, administration and commissions
5,549
5,257
5,194
5,029
4,901
6
13
21,029
18,177
16
Investment securities gains/(losses)
52
(256)
(155)
14
70
NM
(26)
(345)
802
NM
Mortgage fees and related income
315
600
551
704
767
(48)
(59)
2,170
3,091
(30)
Card income
1,100
1,005
1,647
1,350
1,297
9
(15)
5,102
4,435
15
Other income (a)
1,180
1,332
1,195
1,123
1,411
(11)
(16)
4,830
4,865
(1)
Noninterest revenue
15,656
16,567
17,738
19,377
16,077
(5)
(3)
69,338
65,388
6
Interest income
15,019
14,480
14,094
14,271
14,550
4
3
57,864
64,523
(10)
Interest expense
1,418
1,400
1,353
1,382
1,292
1
10
5,553
9,960
(44)
Net interest income
13,601
13,080
12,741
12,889
13,258
4
3
52,311
54,563
(4)
TOTAL NET REVENUE
29,257
29,647
30,479
32,266
29,335
(1)
—
121,649
119,951
1
Provision for credit losses
(1,288)
(1,527)
(2,285)
(4,156)
(1,889)
16
32
(9,256)
17,480
NM
NONINTEREST EXPENSE
Compensation expense
9,065
9,087
9,814
10,601
7,954
—
14
38,567
34,988
10
Occupancy expense
1,202
1,109
1,090
1,115
1,161
8
4
4,516
4,449
2
Technology, communications and equipment expense
2,461
2,473
2,488
2,519
2,606
—
(6)
9,941
10,338
(4)
Professional and outside services
2,703
2,523
2,385
2,203
2,259
7
20
9,814
8,464
16
Marketing
947
712
626
751
725
33
31
3,036
2,476
23
Other expense (b)
1,510
1,159
1,264
1,536
1,343
30
12
5,469
5,941
(8)
TOTAL NONINTEREST EXPENSE
17,888
17,063
17,667
18,725
16,048
5
11
71,343
66,656
7
Income before income tax expense
12,657
14,111
15,097
17,697
15,176
(10)
(17)
59,562
35,815
66
Income tax expense (a)
2,258
2,424
3,149
3,397
3,040
(7)
(26)
11,228
6,684
68
NET INCOME
$
10,399
$
11,687
$
11,948
$
14,300
$
12,136
(11)
(14)
$
48,334
$
29,131
66
NET INCOME PER COMMON SHARE DATA
Basic earnings per share
$
3.33
$
3.74
$
3.79
$
4.51
$
3.80
(11)
(12)
$
15.39
$
8.89
73
Diluted earnings per share
3.33
3.74
3.78
4.50
3.79
(11)
(12)
15.36
8.88
73
FINANCIAL RATIOS
Return on common equity (c)
16
%
18
%
18
%
23
%
19
%
19
%
12
%
Return on tangible common equity (c)(d)
19
22
23
29
24
23
14
Return on assets (c)
1.08
1.24
1.29
1.61
1.42
1.30
0.91
Effective income tax rate (a)
17.8
17.2
20.9
19.2
20.0
18.9
18.7
Overhead ratio
61
58
58
58
55
59
56
(a)In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)Included Firmwide legal expense of $137 million, $76 million, $185 million, $28 million and $276 million for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively, and $426 million and $1.1 billion for the full year 2021 and 2020 respectively.
(c)Quarterly ratios are based upon annualized amounts.
(d)Refer to page 28 for further discussion of ROTCE.
Page 4
JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
Dec 31, 2021
Change
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Dec 31,
2021
2021
2021
2021
2020
2021
2020
ASSETS
Cash and due from banks
$
26,438
$
25,857
$
26,592
$
25,397
$
24,874
2
%
6
%
Deposits with banks
714,396
734,012
678,829
685,675
502,735
(3)
42
Federal funds sold and securities purchased under
resale agreements
261,698
282,161
260,987
272,481
296,284
(7)
(12)
Securities borrowed
206,071
202,987
186,376
179,516
160,635
2
28
Trading assets:
Debt and equity instruments
376,494
447,993
454,268
(b)
475,156
(b)
427,682
(b)
(16)
(12)
Derivative receivables
57,081
67,908
66,320
(b)
68,896
(b)
75,444
(b)
(16)
(24)
Available-for-sale (“AFS”) securities
308,525
251,590
232,161
379,942
388,178
23
(21)
Held-to-maturity (”HTM”) securities, net of allowance for credit losses
363,707
343,542
341,476
217,452
201,821
6
80
Investment securities, net of allowance for credit losses
672,232
595,132
573,637
597,394
589,999
13
14
Loans
1,077,714
1,044,615
1,040,954
1,011,307
1,012,853
3
6
Less: Allowance for loan losses
16,386
18,150
19,500
23,001
28,328
(10)
(42)
Loans, net of allowance for loan losses
1,061,328
1,026,465
1,021,454
988,306
984,525
3
8
Accrued interest and accounts receivable
102,570
116,395
125,253
114,754
90,503
(12)
13
Premises and equipment
27,070
26,996
26,631
26,926
27,109
—
—
Goodwill, MSRs and other intangible assets
56,691
56,566
54,655
54,588
53,428
—
6
Other assets (a)
181,498
175,104
209,254
200,247
151,539
4
20
TOTAL ASSETS
$
3,743,567
$
3,757,576
$
3,684,256
$
3,689,336
$
3,384,757
—
11
LIABILITIES
Deposits
$
2,462,303
$
2,402,353
$
2,305,217
$
2,278,112
$
2,144,257
2
15
Federal funds purchased and securities loaned or sold
under repurchase agreements
194,340
254,920
245,437
304,019
215,209
(24)
(10)
Short-term borrowings
53,594
50,393
51,938
54,978
45,208
6
19
Trading liabilities:
Debt and equity instruments
114,577
126,058
127,822
130,909
99,558
(9)
15
Derivative payables
50,116
53,485
56,045
60,440
70,623
(6)
(29)
Accounts payable and other liabilities (a)
262,755
268,604
297,082
285,066
231,285
(2)
14
Beneficial interests issued by consolidated VIEs
10,750
13,257
14,403
15,671
17,578
(19)
(39)
Long-term debt
301,005
298,465
299,926
279,427
281,685
1
7
TOTAL LIABILITIES
3,449,440
3,467,535
3,397,870
3,408,622
3,105,403
(1)
11
STOCKHOLDERS’ EQUITY
Preferred stock
34,838
34,838
32,838
31,563
30,063
—
16
Common stock
4,105
4,105
4,105
4,105
4,105
—
—
Additional paid-in capital
88,415
88,357
88,194
88,005
88,394
—
—
Retained earnings
272,268
265,276
256,983
248,151
236,990
3
15
Accumulated other comprehensive income/(loss)
(84)
963
2,570
1,041
7,986
NM
NM
Shares held in RSU Trust, at cost
—
—
—
—
—
—
—
Treasury stock, at cost
(105,415)
(103,498)
(98,304)
(92,151)
(88,184)
(2)
(20)
TOTAL STOCKHOLDERS’ EQUITY
294,127
290,041
286,386
280,714
279,354
1
5
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
3,743,567
$
3,757,576
$
3,684,256
$
3,689,336
$
3,384,757
—
11
(a)In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)Prior-period amounts have been revised to conform with the current presentation.
Page 5
JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
AVERAGE BALANCES
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
ASSETS
Deposits with banks
$
767,713
$
756,653
$
721,214
$
631,606
$
507,194
1
%
51
%
$
719,772
$
444,058
62
%
Federal funds sold and securities purchased under resale agreements
268,953
262,679
255,831
289,763
327,504
2
(18)
269,231
275,926
(2)
Securities borrowed
207,059
189,418
190,785
175,019
149,146
9
39
190,655
143,472
33
Trading assets - debt instruments
260,555
275,860
277,024
322,648
319,585
(6)
(18)
283,829
322,936
(12)
Investment securities
642,675
565,344
585,084
582,460
568,354
14
13
593,977
509,937
16
Loans
1,060,254
1,042,591
1,024,633
1,013,524
996,367
2
6
1,035,399
1,004,597
3
All other interest-earning assets (a)
130,646
127,241
122,624
111,549
87,496
3
49
123,079
78,784
56
Total interest-earning assets
3,337,855
3,219,786
3,177,195
3,126,569
2,955,646
4
13
3,215,942
2,779,710
16
Trading assets - equity and other instruments
150,770
177,315
199,288
(h)
164,010
(h)
143,056
(h)
(15)
5
172,822
120,878
(h)
43
Trading assets - derivative receivables
66,024
65,574
70,212
(h)
74,730
(h)
74,721
(h)
1
(12)
69,101
73,749
(h)
(6)
All other noninterest-earning assets (b)
277,006
262,544
281,992
247,532
225,290
6
23
267,337
227,813
17
TOTAL ASSETS
$
3,831,655
$
3,725,219
$
3,728,687
$
3,612,841
$
3,398,713
3
13
$
3,725,202
$
3,202,150
16
LIABILITIES
Interest-bearing deposits
$
1,800,654
$
1,696,850
$
1,669,376
$
1,610,467
$
1,529,066
6
18
$
1,694,865
$
1,389,224
22
Federal funds purchased and securities loaned or
sold under repurchase agreements
234,504
240,912
261,343
301,386
247,276
(3)
(5)
259,302
255,421
2
Short-term borrowings (c)
46,456
43,759
46,185
42,031
36,183
6
28
44,618
38,853
15
Trading liabilities - debt and all other interest-bearing liabilities (d)
246,675
241,297
246,666
230,922
213,989
2
15
241,431
205,255
18
Beneficial interests issued by consolidated VIEs
11,906
14,232
15,117
17,185
18,647
(16)
(36)
14,595
19,216
(24)
Long-term debt
255,710
257,593
248,552
239,398
237,144
(1)
8
250,378
254,400
(2)
Total interest-bearing liabilities
2,595,905
2,494,643
2,487,239
2,441,389
2,282,305
4
14
2,505,189
2,162,369
16
Noninterest-bearing deposits
667,158
672,609
654,419
614,165
582,517
(1)
15
652,289
517,527
26
Trading liabilities - equity and other instruments
40,645
35,505
35,397
35,029
33,732
14
20
36,656
32,628
12
Trading liabilities - derivative payables
55,063
55,907
62,533
67,960
63,551
(2)
(13)
60,318
61,593
(2)
All other noninterest-bearing liabilities (b)
184,241
178,770
205,584
178,444
164,873
3
12
186,755
161,269
16
TOTAL LIABILITIES
3,543,012
3,437,434
3,445,172
3,336,987
3,126,978
3
13
3,441,207
2,935,386
17
Preferred stock
34,838
34,229
32,666
30,312
30,063
2
16
33,027
29,899
10
Common stockholders’ equity
253,805
253,556
250,849
245,542
241,672
—
5
250,968
236,865
6
TOTAL STOCKHOLDERS’ EQUITY
288,643
287,785
283,515
275,854
271,735
—
6
283,995
266,764
6
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
3,831,655
$
3,725,219
$
3,728,687
$
3,612,841
$
3,398,713
3
13
$
3,725,202
$
3,202,150
16
AVERAGE RATES (e)
INTEREST-EARNING ASSETS
Deposits with banks
0.09
%
0.09
%
0.06
%
0.04
%
0.03
%
0.07
%
0.17
%
Federal funds sold and securities purchased under resale agreements
0.47
0.35
0.27
0.33
0.41
0.36
0.88
Securities borrowed (f)
(0.28)
(0.15)
(0.19)
(0.18)
(0.40)
(0.20)
(0.21)
Trading assets - debt instruments
2.52
2.43
2.49
2.25
2.32
2.42
2.44
Investment securities
1.26
1.32
1.31
1.36
1.39
1.31
1.82
Loans
4.04
3.99
3.98
4.09
4.14
4.02
4.37
All other interest-earning assets (a)
0.87
0.64
0.66
0.72
0.89
0.73
1.30
Total interest-earning assets
1.80
1.80
1.79
1.87
1.97
1.81
2.34
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
0.03
0.03
0.03
0.04
0.05
0.03
0.17
Federal funds purchased and securities loaned or
sold under repurchase agreements
0.13
0.20
0.09
0.02
0.06
0.11
0.41
Short-term borrowings (c)
0.26
0.26
0.30
0.31
0.40
0.28
0.96
Trading liabilities - debt and all other interest-bearing liabilities (d)(f)
0.20
0.09
0.08
0.05
(0.15)
0.11
0.10
Beneficial interests issued by consolidated VIEs
0.56
0.50
0.55
0.64
0.65
0.57
1.12
Long-term debt
1.61
1.62
1.70
1.92
1.82
1.71
2.27
Total interest-bearing liabilities
0.22
0.22
0.22
0.23
0.23
0.22
0.46
INTEREST RATE SPREAD
1.58
%
1.58
%
1.57
%
1.64
%
1.74
%
1.59
%
1.88
%
NET YIELD ON INTEREST-EARNING ASSETS
1.63
%
1.62
%
1.62
%
1.69
%
1.80
%
1.64
%
1.98
%
Memo: Net yield on interest-earning assets excluding CIB Markets (g)
1.90
%
1.91
%
1.90
%
1.93
%
2.01
%
1.91
%
2.30
%
(a) Includes brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated Balance Sheets.
(b) In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(c) Includes commercial paper.
(d) All other interest-bearing liabilities include brokerage-related customer payables.
(e) Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(f) Negative interest income and yields are related to the impact of current interest rates combined with the fees paid on client-driven securities borrowed balances. The negative interest expense related to prime brokerage customer payables is recognized in interest expense and reported within trading liabilities - debt and all other liabilities.
(g) Net yield on interest-earning assets excluding CIB Markets is a non-GAAP financial measure. Refer to page 28 for a further discussion of this measure.
(h) Prior-period amounts have been revised to conform with the current presentation.
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 Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. Refer to the notes on Non-GAAP Financial Measures on page 28 for additional information on managed basis.
The following summary table provides a reconciliation from reported U.S. GAAP results to managed basis.
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
OTHER INCOME
Other income - reported (a)
$
1,180
$
1,332
$
1,195
$
1,123
$
1,411
(11)
%
(16)
%
$
4,830
$
4,865
(1)
%
Fully taxable-equivalent adjustments (a)(b)
984
690
807
744
729
43
35
3,225
2,560
26
Other income - managed
$
2,164
$
2,022
$
2,002
$
1,867
$
2,140
7
1
$
8,055
$
7,425
8
TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported
$
15,656
$
16,567
$
17,738
$
19,377
$
16,077
(5)
(3)
$
69,338
$
65,388
6
Fully taxable-equivalent adjustments
984
690
807
744
729
43
35
3,225
2,560
26
Total noninterest revenue - managed
$
16,640
$
17,257
$
18,545
$
20,121
$
16,806
(4)
(1)
$
72,563
$
67,948
7
NET INTEREST INCOME
Net interest income - reported
$
13,601
$
13,080
$
12,741
$
12,889
$
13,258
4
3
$
52,311
$
54,563
(4)
Fully taxable-equivalent adjustments (b)
108
104
109
109
97
4
11
430
418
3
Net interest income - managed
$
13,709
$
13,184
$
12,850
$
12,998
$
13,355
4
3
$
52,741
$
54,981
(4)
TOTAL NET REVENUE
Total net revenue - reported
$
29,257
$
29,647
$
30,479
$
32,266
$
29,335
(1)
—
$
121,649
$
119,951
1
Fully taxable-equivalent adjustments
1,092
794
916
853
826
38
32
3,655
2,978
23
Total net revenue - managed
$
30,349
$
30,441
$
31,395
$
33,119
$
30,161
—
1
$
125,304
$
122,929
2
PRE-PROVISION PROFIT
Pre-provision profit - reported
$
11,369
$
12,584
$
12,812
$
13,541
$
13,287
(10)
(14)
$
50,306
$
53,295
(6)
Fully taxable-equivalent adjustments
1,092
794
916
853
826
38
32
3,655
2,978
23
Pre-provision profit - managed
$
12,461
$
13,378
$
13,728
$
14,394
$
14,113
(7)
(12)
$
53,961
$
56,273
(4)
INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported
$
12,657
$
14,111
$
15,097
$
17,697
$
15,176
(10)
(17)
$
59,562
$
35,815
66
Fully taxable-equivalent adjustments
1,092
794
916
853
826
38
32
3,655
2,978
23
Income before income tax expense - managed
$
13,749
$
14,905
$
16,013
$
18,550
$
16,002
(8)
(14)
$
63,217
$
38,793
63
INCOME TAX EXPENSE
Income tax expense - reported (a)
$
2,258
$
2,424
$
3,149
$
3,397
$
3,040
(7)
(26)
$
11,228
$
6,684
68
Fully taxable-equivalent adjustments (a)(b)
1,092
794
916
853
826
38
32
3,655
2,978
23
Income tax expense - managed
$
3,350
$
3,218
$
4,065
$
4,250
$
3,866
4
(13)
$
14,883
$
9,662
54
OVERHEAD RATIO
Overhead ratio - reported
61
%
58
%
58
%
58
%
55
%
59
%
56
%
Overhead ratio - managed
59
56
56
57
53
57
54
(a)In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)Predominantly recognized in CIB, CB and Corporate.
Page 7
JPMORGAN CHASE & CO.
SEGMENT RESULTS - MANAGED BASIS
(in millions)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking
$
12,275
$
12,521
$
12,760
$
12,517
$
12,728
(2)
%
(4)
%
$
50,073
$
51,268
(2)
%
Corporate & Investment Bank
11,534
12,396
13,214
14,605
11,352
(7)
2
51,749
49,284
5
Commercial Banking
2,612
2,520
2,483
2,393
2,463
4
6
10,008
9,313
7
Asset & Wealth Management
4,473
4,300
4,107
4,077
3,867
4
16
16,957
14,240
19
Corporate
(545)
(1,296)
(1,169)
(473)
(249)
58
(119)
(3,483)
(1,176)
(196)
TOTAL NET REVENUE
$
30,349
$
30,441
$
31,395
$
33,119
$
30,161
—
1
$
125,304
$
122,929
2
TOTAL NONINTEREST EXPENSE
Consumer & Community Banking
$
7,754
$
7,238
$
7,062
$
7,202
$
7,042
7
10
$
29,256
$
27,990
5
Corporate & Investment Bank
5,827
5,871
6,523
7,104
4,939
(1)
18
25,325
23,538
8
Commercial Banking
1,059
1,032
981
969
950
3
11
4,041
3,798
6
Asset & Wealth Management
2,997
2,762
2,586
2,574
2,756
9
9
10,919
9,957
10
Corporate
251
160
515
876
361
57
(30)
1,802
1,373
31
TOTAL NONINTEREST EXPENSE
$
17,888
$
17,063
$
17,667
$
18,725
$
16,048
5
11
$
71,343
$
66,656
7
PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking
$
4,521
$
5,283
$
5,698
$
5,315
$
5,686
(14)
(20)
$
20,817
$
23,278
(11)
Corporate & Investment Bank
5,707
6,525
6,691
7,501
6,413
(13)
(11)
26,424
25,746
3
Commercial Banking
1,553
1,488
1,502
1,424
1,513
4
3
5,967
5,515
8
Asset & Wealth Management
1,476
1,538
1,521
1,503
1,111
(4)
33
6,038
4,283
41
Corporate
(796)
(1,456)
(1,684)
(1,349)
(610)
45
(30)
(5,285)
(2,549)
(107)
PRE-PROVISION PROFIT
$
12,461
$
13,378
$
13,728
$
14,394
$
14,113
(7)
(12)
$
53,961
$
56,273
(4)
PROVISION FOR CREDIT LOSSES
Consumer & Community Banking
$
(1,060)
$
(459)
$
(1,868)
$
(3,602)
$
(83)
(131)
NM
$
(6,989)
$
12,312
NM
Corporate & Investment Bank
(126)
(638)
(79)
(331)
(581)
80
78
(1,174)
2,726
NM
Commercial Banking
(89)
(363)
(377)
(118)
(1,181)
75
92
(947)
2,113
NM
Asset & Wealth Management
(36)
(60)
(10)
(121)
(2)
40
NM
(227)
263
NM
Corporate
23
(7)
49
16
(42)
NM
NM
81
66
23
PROVISION FOR CREDIT LOSSES
$
(1,288)
$
(1,527)
$
(2,285)
$
(4,156)
$
(1,889)
16
32
$
(9,256)
$
17,480
NM
NET INCOME/(LOSS)
Consumer & Community Banking
$
4,227
$
4,341
$
5,634
$
6,728
$
4,325
(3)
(2)
$
20,930
$
8,217
155
Corporate & Investment Bank
4,847
5,562
4,985
5,740
5,349
(13)
(9)
21,134
17,094
24
Commercial Banking
1,251
1,407
1,420
1,168
2,034
(11)
(38)
5,246
2,578
103
Asset & Wealth Management
1,146
1,194
1,153
1,244
786
(4)
46
4,737
2,992
58
Corporate
(1,072)
(817)
(1,244)
(580)
(358)
(31)
(199)
(3,713)
(1,750)
(112)
TOTAL NET INCOME
$
10,399
$
11,687
$
11,948
$
14,300
$
12,136
(11)
(14)
$
48,334
$
29,131
66
Page 8
JPMORGAN CHASE & CO.
CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS
(in millions, except ratio data)
Dec 31, 2021
Change
FULL YEAR
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Dec 31,
2021 Change
2021
2021
2021
2021
2020
2021
2020
2021
2020
2020
CAPITAL (a)
Risk-based capital metrics
Standardized
CET1 capital
$
213,949
(e)
$
209,917
$
209,010
$
206,078
$
205,078
2
%
4
%
Tier 1 capital
246,201
(e)
244,207
241,356
237,333
234,844
1
5
Total capital
274,939
(e)
274,994
274,443
271,407
269,923
—
2
Risk-weighted assets
1,641,394
(e)
1,628,406
1,601,631
1,577,007
1,560,609
1
5
CET1 capital ratio
13.0
%
(e)
12.9
%
13.0
%
13.1
%
13.1
%
Tier 1 capital ratio
15.0
(e)
15.0
15.1
15.0
15.0
Total capital ratio
16.8
(e)
16.9
17.1
17.2
17.3
Advanced
CET1 capital
$
213,949
(e)
$
209,917
$
209,010
$
206,078
$
205,078
2
4
Tier 1 capital
246,201
(e)
244,207
241,356
237,333
234,844
1
5
Total capital
265,846
(e)
264,469
262,364
258,635
257,228
1
3
Risk-weighted assets
1,549,168
(e)
1,544,512
1,514,386
1,503,828
1,484,431
—
4
CET1 capital ratio
13.8
%
(e)
13.6
%
13.8
%
13.7
%
13.8
%
Tier 1 capital ratio
15.9
(e)
15.8
15.9
15.8
15.8
Total capital ratio
17.2
(e)
17.1
17.3
17.2
17.3
Leverage-based capital metrics
Adjusted average assets (b)
$
3,782,074
(e)
$
3,675,803
$
3,680,830
$
3,565,545
$
3,353,319
3
13
Tier 1 leverage ratio
6.5
%
(e)
6.6
%
6.6
%
6.7
%
7.0
%
Total leverage exposure
4,571,985
(e)
4,463,904
4,456,557
3,522,629
3,401,542
2
34
SLR
5.4
%
(e)
5.5
%
5.4
%
6.7
%
6.9
%
TANGIBLE COMMON EQUITY (period-end) (c)
Common stockholders’ equity
$
259,289
$
255,203
$
253,548
$
249,151
$
249,291
2
4
Less: Goodwill
50,315
50,313
49,256
49,243
49,248
—
2
Less: Other intangible assets
882
902
850
875
904
(2)
(2)
Add: Certain deferred tax liabilities (d)
2,499
2,500
2,461
2,457
2,453
—
2
Total tangible common equity
$
210,591
$
206,488
$
205,903
$
201,490
$
201,592
2
4
TANGIBLE COMMON EQUITY (average) (c)
Common stockholders’ equity
$
253,805
$
253,556
$
250,849
$
245,542
$
241,672
—
5
$
250,968
$
236,865
6
%
Less: Goodwill
50,362
49,457
49,260
49,249
47,842
2
5
49,584
47,820
4
Less: Other intangible assets
896
849
864
891
752
6
19
876
781
12
Add: Certain deferred tax liabilities (d)
2,502
2,480
2,459
2,455
2,416
1
4
2,474
2,399
3
Total tangible common equity
$
205,049
$
205,730
$
203,184
$
197,857
$
195,494
—
5
$
202,982
$
190,663
6
INTANGIBLE ASSETS (period-end)
Goodwill
$
50,315
$
50,313
$
49,256
$
49,243
$
49,248
—
2
Mortgage servicing rights
5,494
5,351
4,549
4,470
3,276
3
68
Other intangible assets
882
902
850
875
904
(2)
(2)
Total intangible assets
$
56,691
$
56,566
$
54,655
$
54,588
$
53,428
—
6
(a)The capital metrics reflect the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including the CECL capital transition provisions that became effective in the first quarter of 2020 and expired on December 31, 2021. For the periods ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $2.9 billion, $3.3 billion, $3.8 billion, $4.5 billion and $5.7 billion, respectively. The cumulative impact of $2.9 billion not recognized in CET1 capital at December 31, 2021 will be phased in at 25% per year beginning January 1, 2022. For the periods ended March 31, 2021 and December 31, 2020, the SLR reflected the temporary exclusions of U.S. Treasury securities and deposits at Federal Reserve Banks, which became effective April 1, 2020 and remained in effect through March 31, 2021. Refer to Capital Risk Management on pages 48-53 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021 for additional information on the Firm’s capital metrics. Refer to Regulatory Developments Relating to the COVID-19 Pandemic on pages 52-53 and Capital Risk Management on pages 91-101 of the Firm’s 2020 Form 10-K for additional information.
(b)Adjusted average assets, for purposes of calculating the leverage ratios, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill and other intangible assets.
(c)Refer to page 28 for further discussion of TCE.
(d)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating TCE.
(e)Estimated.
Page 9
JPMORGAN CHASE & CO.
EARNINGS PER SHARE AND RELATED INFORMATION
(in millions, except per share and ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
EARNINGS PER SHARE
Basic earnings per share
Net income
$
10,399
$
11,687
$
11,948
$
14,300
$
12,136
(11)
%
(14)
%
$
48,334
$
29,131
66
%
Less: Preferred stock dividends
426
402
393
379
380
6
12
1,600
1,583
1
Net income applicable to common equity
9,973
11,285
11,555
13,921
11,756
(12)
(15)
46,734
27,548
70
Less: Dividends and undistributed earnings allocated to
participating securities
46
56
59
70
57
(18)
(19)
231
138
67
Net income applicable to common stockholders
$
9,927
$
11,229
$
11,496
$
13,851
$
11,699
(12)
(15)
$
46,503
$
27,410
70
Total weighted-average basic shares outstanding
2,977.3
2,999.9
3,036.6
3,073.5
3,079.7
(1)
(3)
3,021.5
3,082.4
(2)
Net income per share
$
3.33
$
3.74
$
3.79
$
4.51
$
3.80
(11)
(12)
$
15.39
$
8.89
73
Diluted earnings per share
Net income applicable to common stockholders
$
9,927
$
11,229
$
11,496
$
13,851
$
11,699
(12)
(15)
$
46,503
$
27,410
70
Total weighted-average basic shares outstanding
2,977.3
2,999.9
3,036.6
3,073.5
3,079.7
(1)
(3)
3,021.5
3,082.4
(2)
Add: Dilutive impact of stock appreciation rights (“SARs”) and employee stock options, unvested performance share units (“PSUs”) and nondividend-earning restricted stock units (“RSUs”)
4.5
5.2
5.3
5.4
5.4
(13)
(17)
5.1
5.0
2
Total weighted-average diluted shares outstanding
2,981.8
3,005.1
3,041.9
3,078.9
3,085.1
(1)
(3)
3,026.6
3,087.4
(2)
Net income per share
$
3.33
$
3.74
$
3.78
$
4.50
$
3.79
(11)
(12)
$
15.36
$
8.88
73
COMMON DIVIDENDS
Cash dividends declared per share
$
1.00
$
1.00
(c)
$
0.90
$
0.90
$
0.90
—
11
$
3.80
$
3.60
6
Dividend payout ratio
30
%
27
%
24
%
20
%
24
%
25
%
40
%
COMMON SHARE REPURCHASE PROGRAM (a)
Total shares of common stock repurchased
12.1
33.4
39.5
34.7
—
(64)
NM
119.7
50.0
139
Average price paid per share of common stock
$
165.47
$
156.87
$
156.83
$
144.25
$
—
5
NM
$
154.08
$
127.92
20
Aggregate repurchases of common stock
2,008
5,240
6,201
4,999
—
(62)
NM
18,448
6,397
188
EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans
1.1
0.5
0.6
12.3
1.5
120
(27)
14.5
15.9
(9)
Net impact of employee issuances on stockholders’ equity (b)
$
147
$
271
$
276
$
667
$
217
(46)
(32)
$
1,361
$
1,203
13
(a)On March 15, 2020, in response to the economic disruptions caused by the COVID-19 pandemic, the Firm temporarily suspended repurchases of its common stock. Subsequently, the Federal Reserve directed all large banks, including the Firm, to discontinue net share repurchases through the end of 2020. On December 18, 2020, the Federal Reserve announced that all large banks, including the Firm, could resume share repurchases commencing in the first quarter of 2021, subject to certain restrictions; the restrictions were extended and expired at the end of the second quarter of 2021. The Firm is authorized to purchase up to $30 billion of common shares under the current repurchase program.
(b)The net impact of employee issuances on stockholders’ equity is driven by the cost of equity compensation awards that is recognized over the applicable vesting periods. The cost is partially offset by tax impacts related to the distribution of shares and the exercise of employee stock options and SARs.
(c)On September 21, 2021, the Board of Directors declared a quarterly common stock dividend of $1.00 per share.
Page 10
JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees
$
753
$
786
$
753
$
742
$
806
(4)
%
(7)
%
$
3,034
$
3,166
(4)
%
Asset management, administration and commissions
950
893
866
805
735
6
29
3,514
2,780
26
Mortgage fees and related income
312
596
548
703
766
(48)
(59)
2,159
3,079
(30)
Card income
675
651
1,238
999
923
4
(27)
3,563
3,068
16
All other income
1,144
1,212
1,321
1,339
1,328
(6)
(14)
5,016
5,647
(11)
Noninterest revenue
3,834
4,138
4,726
4,588
4,558
(7)
(16)
17,286
17,740
(3)
Net interest income
8,441
8,383
8,034
7,929
8,170
1
3
32,787
33,528
(2)
TOTAL NET REVENUE
12,275
12,521
12,760
12,517
12,728
(2)
(4)
50,073
51,268
(2)
Provision for credit losses
(1,060)
(459)
(1,868)
(3,602)
(83)
(131)
NM
(6,989)
12,312
NM
NONINTEREST EXPENSE
Compensation expense
3,177
3,012
2,977
2,976
2,734
5
16
12,142
11,014
10
Noncompensation expense (a)
4,577
4,226
4,085
4,226
4,308
8
6
17,114
16,976
1
TOTAL NONINTEREST EXPENSE
7,754
7,238
7,062
7,202
7,042
7
10
29,256
27,990
5
Income/(loss) before income tax expense/(benefit)
5,581
5,742
7,566
8,917
5,769
(3)
(3)
27,806
10,966
154
Income tax expense/(benefit)
1,354
1,401
1,932
2,189
1,444
(3)
(6)
6,876
2,749
150
NET INCOME/(LOSS)
$
4,227
$
4,341
$
5,634
$
6,728
$
4,325
(3)
(2)
$
20,930
$
8,217
155
REVENUE BY LINE OF BUSINESS
Consumer & Business Banking
$
6,172
$
6,157
$
6,016
$
5,635
$
5,744
—
7
$
23,980
$
22,955
4
Home Lending
1,084
1,400
1,349
1,458
1,456
(23)
(26)
5,291
6,018
(12)
Card & Auto
5,019
4,964
5,395
5,424
5,528
1
(9)
20,802
22,295
(7)
MORTGAGE FEES AND RELATED INCOME DETAILS
Production revenue
327
614
517
757
803
(47)
(59)
2,215
2,629
(16)
Net mortgage servicing revenue (b)
(15)
(18)
31
(54)
(37)
17
59
(56)
450
NM
Mortgage fees and related income
$
312
$
596
$
548
$
703
$
766
(48)
(59)
$
2,159
$
3,079
(30)
FINANCIAL RATIOS
ROE
33
%
34
%
44
%
54
%
32
%
41
%
15
%
Overhead ratio
63
58
55
58
55
58
55
(a)Included depreciation expense on leased assets of $767 million, $769 million, $856 million, $916 million and $975 million for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively, and $3.3 billion and $4.2 billion for the full year 2021 and 2020, respectively.
(b)Included MSR risk management results of $(162) million, $(145) million, $(103) million, $(115) million and $(152) million for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively, and $(525) million and $(18) million for the full year 2021 and 2020, respectively.
Page 11
JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount data)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
500,370
$
493,169
$
494,305
$
487,978
$
496,705
(d)
1
%
1
%
$
500,370
$
496,705
(d)
1
%
Loans:
Consumer & Business Banking (a)
35,095
40,659
46,228
52,654
48,810
(14)
(28)
35,095
48,810
(28)
Home Lending (b)
180,529
179,489
179,371
178,776
182,121
1
(1)
180,529
182,121
(1)
Card
154,296
143,166
141,802
132,493
144,216
8
7
154,296
144,216
7
Auto
69,138
68,391
67,598
67,662
66,432
1
4
69,138
66,432
4
Total loans
439,058
431,705
434,999
431,585
441,579
2
(1)
439,058
441,579
(1)
Deposits
1,148,110
1,093,852
1,056,507
1,037,903
958,706
5
20
1,148,110
958,706
20
Equity
50,000
50,000
50,000
50,000
52,000
—
(4)
50,000
52,000
(4)
SELECTED BALANCE SHEET DATA (average)
Total assets
$
497,675
$
491,512
$
485,209
$
484,524
$
486,272
(d)
1
2
$
489,771
$
501,584
(d)
(2)
Loans:
Consumer & Business Banking
37,299
43,256
49,356
49,868
49,506
(14)
(25)
44,906
43,064
4
Home Lending (c)
183,343
181,150
177,444
182,247
185,733
1
(1)
181,049
197,148
(8)
Card
148,471
141,950
136,149
134,884
141,236
5
5
140,405
146,633
(4)
Auto
68,549
67,785
67,183
66,960
64,342
1
7
67,624
61,476
10
Total loans
437,662
434,141
430,132
433,959
440,817
1
(1)
433,984
448,321
(3)
Deposits
1,114,329
1,076,323
1,047,771
979,686
928,518
4
20
1,054,956
851,390
24
Equity
50,000
50,000
50,000
50,000
52,000
—
(4)
50,000
52,000
(4)
Headcount
128,863
126,586
125,300
126,084
122,894
2
5
128,863
122,894
5
(a)At December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020 included $5.4 billion, $11.1 billion, $16.7 billion, $23.4 billion and $19.2 billion of loans, respectively, in Business Banking under the Paycheck Protection Program (“PPP”). Refer to page 113 of the Firm’s 2020 Form 10-K for further information on the PPP.
(b)At December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, Home Lending loans held-for-sale and loans at fair value were $14.9 billion, $14.5 billion, $16.5 billion, $13.2 billion and $9.7 billion, respectively.
(c)Average Home Lending loans held-for sale and loans at fair value were $17.8 billion, $17.1 billion, $14.2 billion, $12.5 billion and $10.7 billion for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively, and $15.4 billion and $11.1 billion for the full year 2021 and 2020, respectively.
(d)Prior-period amounts have been revised to conform with the current presentation.
Page 12
JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a)(b)(c)
$
4,875
$
5,000
$
5,256
$
5,507
(g)
$
5,492
(g)
(3)
%
(11)
%
$
4,875
$
5,492
(g)
(11)
%
Net charge-offs/(recoveries)
Consumer & Business Banking
86
66
72
65
75
30
15
289
263
10
Home Lending
(71)
(74)
(79)
(51)
(50)
4
(42)
(275)
(169)
(63)
Card
479
495
755
983
767
(3)
(38)
2,712
4,286
(37)
Auto
21
4
(16)
26
25
425
(16)
35
123
(72)
Total net charge-offs/(recoveries)
$
515
$
491
$
732
$
1,023
$
817
5
(37)
$
2,761
$
4,503
(39)
Net charge-off/(recovery) rate
Consumer & Business Banking (d)
0.91
%
0.61
%
0.59
%
0.53
%
0.60
%
0.64
%
0.61
%
Home Lending
(0.17)
(0.18)
(0.19)
(0.12)
(0.11)
(0.17)
(0.09)
Card
1.28
1.39
2.24
2.97
2.17
1.94
2.93
Auto
0.12
0.02
(0.10)
0.16
0.15
0.05
0.20
Total net charge-off/(recovery) rate
0.49
0.47
0.71
0.99
0.76
0.66
1.03
30+ day delinquency rate (e)
Home Lending (f)
1.25
%
1.06
%
1.08
%
1.07
%
1.15
%
1.25
%
1.15
%
Card
1.04
1.00
1.01
1.40
1.68
1.04
1.68
Auto
0.64
0.46
0.42
0.42
0.69
0.64
0.69
90+ day delinquency rate - Card (e)
0.50
0.49
0.54
0.80
0.92
0.50
0.92
Allowance for loan losses
Consumer & Business Banking
$
697
$
797
$
897
$
1,022
$
1,372
(13)
(49)
$
697
$
1,372
(49)
Home Lending
660
630
630
1,238
1,813
5
(64)
660
1,813
(64)
Card
10,250
11,650
12,500
14,300
17,800
(12)
(42)
10,250
17,800
(42)
Auto
733
813
817
892
1,042
(10)
(30)
733
1,042
(30)
Total allowance for loan losses
$
12,340
$
13,890
$
14,844
$
17,452
$
22,027
(11)
(44)
$
12,340
$
22,027
(44)
(a)At December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $342 million, $355 million, $397 million, $458 million and $558 million, respectively. These amounts have been excluded based upon the government guarantee. The amount of mortgage loans 90 or more days past due and insured by U.S. government agencies excluded at June 30, 2021 has been revised to conform with the current presentation. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.
(b)At December 31, 2021 and September 30, 2021, nonaccrual loans excluded PPP loans 90 or more days past due and insured by the SBA of $506 million and $5 million, respectively. These amounts have been excluded based upon the SBA guarantee. There were no PPP loans 90 or more days past due in all other periods presented.
(c)Generally excludes loans that were under payment deferral programs offered in response to the COVID-19 pandemic. Includes loans to customers that have exited COVID-19 payment deferral programs and are 90 or more days past due, predominantly all of which were considered collateral-dependent at time of exit.
(d)At December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020 included $5.4 billion, $11.1 billion, $16.7 billion, $23.4 billion and $19.2 billion of loans, respectively, under the PPP. Given that PPP loans are guaranteed by the SBA, the Firm does not expect to realize material credit losses on these loans. Refer to page 113 of the Firm’s 2020 Form 10-K for further information on the PPP.
(e)At December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, the principal balance of loans under payment deferral programs offered in response to the COVID-19 pandemic were as follows: (1) $1.1 billion, $3.1 billion, $5.2 billion, $8.1 billion and $9.1 billion in Home Lending, respectively; (2) $46 million, $53 million, $55 million, $105 million and $264 million in Card, respectively; and (3) $115 million, $112 million, $89 million, $127 million and $376 million in Auto, respectively. Loans that are performing according to their modified terms are generally not considered delinquent.
(f)At December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, excluded mortgage loans 30 or more days past due and insured by U.S. government agencies of $405 million, $432 million, $483 million, $557 million and $744 million, respectively. These amounts have been excluded based upon the government guarantee. The amount of mortgage loans 30 or more days past due and insured by U.S. government agencies excluded at June 30, 2021 has been revised to conform with the current presentation.
(g)Prior-period amounts have been revised to conform with the current presentation.
Page 13
JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
BUSINESS METRICS
Number of:
Branches
4,790
4,854
4,869
4,872
4,908
(1)
%
(2)
%
4,790
4,908
(2)
%
Active digital customers (in thousands) (a)
58,857
57,961
56,915
56,671
55,274
2
6
58,857
55,274
6
Active mobile customers (in thousands) (b)
45,452
44,333
42,896
41,872
40,899
3
11
45,452
40,899
11
Debit and credit card sales volume (in billions)
$
376.2
$
349.9
$
344.3
$
290.3
$
299.4
8
26
$
1,360.7
$
1,081.2
26
Consumer & Business Banking
Average deposits
$
1,094,442
$
1,056,254
$
1,028,459
$
960,662
$
907,884
4
21
$
1,035,379
$
832,523
24
Deposit margin
1.22
%
1.29
%
1.28
%
1.29
%
1.41
%
1.27
%
1.58
%
Business banking origination volume
$
866
$
835
$
2,180
(f)
$
10,035
(f)
$
722
4
20
$
13,916
(f)
$
26,607
(f)
(48)
Client investment assets (c)
718,051
681,491
673,675
636,962
590,206
(g)
5
22
718,051
590,206
(g)
22
Number of client advisors
4,725
4,689
4,571
4,500
4,417
1
7
4,725
4,417
7
Home Lending (in billions)
Mortgage origination volume by channel
Retail
$
22.4
$
23.7
$
22.7
$
23.0
$
20.1
(5)
11
$
91.8
$
72.9
26
Correspondent
19.8
17.9
16.9
16.3
12.4
11
60
70.9
40.9
73
Total mortgage origination volume (d)
$
42.2
$
41.6
$
39.6
$
39.3
$
32.5
1
30
$
162.7
$
113.8
43
Third-party mortgage loans serviced (period-end)
534.2
509.3
463.9
443.2
447.3
5
19
534.2
447.3
19
MSR carrying value (period-end)
5.5
5.3
4.5
4.5
3.3
4
67
5.5
3.3
67
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)
1.03
%
1.04
%
0.97
%
1.02
%
0.74
%
1.03
%
0.74
%
MSR revenue multiple (e)
3.68
x
3.85
x
3.59
x
3.78
x
2.64
x
3.81
x
2.55
x
Credit Card
Credit card sales volume, excluding Commercial Card (in billions)
$
254.1
$
232.0
$
223.7
$
183.7
$
197.0
10
29
893.5
702.7
27
Net revenue rate
9.61
%
9.74
%
11.32
%
11.53
%
11.22
%
10.51
%
10.92
%
Auto
Loan and lease origination volume (in billions)
$
8.5
$
11.5
$
12.4
$
11.2
$
11.0
(26)
(23)
$
43.6
$
38.4
14
Average auto operating lease assets
17,629
18,753
19,608
20,300
20,810
(6)
(15)
19,064
22,034
(13)
(a)Users of all web and/or mobile platforms who have logged in within the past 90 days.
(b)Users of all mobile platforms who have logged in within the past 90 days.
(c)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 20-22 for additional information.
(d)Firmwide mortgage origination volume was $48.2 billion, $46.1 billion, $44.9 billion, $43.2 billion and $37.0 billion for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively, and $182.4 billion and $133.4 billion for the full year 2021 and 2020, respectively.
(e)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).
(f)Included $1.3 billion and $9.3 billion of origination volume under the PPP for the three months ended June 30, 2021 and March 31, 2021, respectively, and $10.6 billion and $21.9 billion for the full year 2021 and 2020, respectively. There were no originations under the PPP for the three months ended December 31, 2021, September 30, 2021, and December 31, 2020. The PPP ended on May 31, 2021 for new applications. Refer to page 113 of the Firm’s 2020 Form 10-K for further information on the PPP.
(g)Prior-period amount has been revised to conform with the current presentation.
Page 14
JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
INCOME STATEMENT
REVENUE
Investment banking fees
$
3,502
$
3,297
$
3,572
$
2,988
$
2,558
6
%
37
%
$
13,359
$
9,477
41
%
Principal transactions
2,116
3,577
4,026
6,045
2,982
(41)
(29)
15,764
17,560
(10)
Lending- and deposit-related fees
654
634
633
593
574
3
14
2,514
2,070
21
Asset management, administration and commissions
1,252
1,240
1,246
1,286
1,226
1
2
5,024
4,721
6
All other income
624
313
435
176
462
99
35
1,548
1,292
20
Noninterest revenue
8,148
9,061
9,912
11,088
7,802
(10)
4
38,209
35,120
9
Net interest income
3,386
3,335
3,302
3,517
3,550
2
(5)
13,540
14,164
(4)
TOTAL NET REVENUE (a)
11,534
12,396
13,214
14,605
11,352
(7)
2
51,749
49,284
5
Provision for credit losses
(126)
(638)
(79)
(331)
(581)
80
78
(1,174)
2,726
NM
NONINTEREST EXPENSE
Compensation expense
2,358
2,827
3,582
4,329
1,958
(17)
20
13,096
11,612
13
Noncompensation expense
3,469
3,044
2,941
2,775
2,981
14
16
12,229
11,926
3
TOTAL NONINTEREST EXPENSE
5,827
5,871
6,523
7,104
4,939
(1)
18
25,325
23,538
8
Income before income tax expense
5,833
7,163
6,770
7,832
6,994
(19)
(17)
27,598
23,020
20
Income tax expense
986
1,601
1,785
2,092
1,645
(38)
(40)
6,464
5,926
9
NET INCOME
$
4,847
$
5,562
$
4,985
$
5,740
$
5,349
(13)
(9)
$
21,134
$
17,094
24
FINANCIAL RATIOS
ROE
22
%
26
%
23
%
27
%
26
%
25
%
20
%
Overhead ratio
51
47
49
49
44
49
48
Compensation expense as percentage of total net revenue
20
23
27
30
17
25
24
REVENUE BY BUSINESS
Investment Banking
$
3,206
$
3,025
$
3,424
$
2,851
$
2,497
6
28
$
12,506
$
8,871
41
Payments (b)
1,801
1,624
1,453
1,392
1,427
11
26
6,270
5,560
13
Lending
263
244
229
265
193
8
36
1,001
1,146
(13)
Total Banking
5,270
4,893
5,106
4,508
4,117
8
28
19,777
15,577
27
Fixed Income Markets
3,334
3,672
4,098
5,761
3,950
(9)
(16)
16,865
20,878
(19)
Equity Markets
1,954
2,597
2,689
3,289
1,989
(25)
(2)
10,529
8,605
22
Securities Services
1,064
1,126
1,088
1,050
1,053
(6)
1
4,328
4,253
2
Credit Adjustments & Other (c)
(88)
108
233
(3)
243
NM
NM
250
(29)
NM
Total Markets & Securities Services
6,264
7,503
8,108
10,097
7,235
(17)
(13)
31,972
33,707
(5)
TOTAL NET REVENUE
$
11,534
$
12,396
$
13,214
$
14,605
$
11,352
(7)
2
$
51,749
$
49,284
5
(a)Includes tax-equivalent adjustments, predominantly due to income tax credits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; as well as tax-exempt income from municipal bonds of $923 million, $641 million, $763 million, $703 million and $655 million for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively, and $3.0 billion and $2.4 billion for the full year 2021 and 2020, respectively. In the first quarter of 2021, in relation to the reclassification of certain deferred investment tax credits, prior-period tax-equivalent adjustment amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)In the fourth quarter of 2021, the Wholesale Payments business was renamed Payments.
(c)Consists primarily of centrally managed credit valuation adjustments (“CVA”), funding valuation adjustments (“FVA”) on derivatives, other valuation adjustments, and certain components of 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.
Page 15
JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
SELECTED BALANCE SHEET DATA (period-end)
Total assets (a)
$
1,259,896
$
1,355,752
$
1,363,992
$
1,355,123
$
1,095,926
(7)
%
15
%
$
1,259,896
$
1,095,926
15
%
Loans:
Loans retained (b)
159,786
151,211
144,764
134,134
133,296
6
20
159,786
133,296
20
Loans held-for-sale and loans at fair value (c)
50,386
52,436
56,668
45,846
39,588
(4)
27
50,386
39,588
27
Total loans
210,172
203,647
201,432
179,980
172,884
3
22
210,172
172,884
22
Equity
83,000
83,000
83,000
83,000
80,000
—
4
83,000
80,000
4
SELECTED BALANCE SHEET DATA (average)
Total assets (a)
$
1,341,267
$
1,331,240
$
1,371,218
$
1,293,864
$
1,139,424
1
18
1,334,518
$
1,121,942
19
Trading assets - debt and equity instruments
407,656
442,623
473,875
(i)
468,976
(i)
447,022
(i)
(8)
(9)
448,099
425,060
(i)
5
Trading assets - derivative receivables
65,365
64,730
69,392
(i)
73,452
(i)
73,366
(i)
1
(11)
68,203
69,243
(i)
(2)
Loans:
Loans retained (b)
153,595
149,826
140,096
136,794
128,765
3
19
145,137
135,676
7
Loans held-for-sale and loans at fair value (c)
52,429
53,712
52,376
45,670.9
36,228
(2)
45
51,072
33,792
51
Total loans
206,024
203,538
192,472
182,464.9
164,993
1
25
196,209
169,468
16
Equity
83,000
83,000
83,000
83,000
80,000
—
4
83,000
80,000
4
Headcount (d)
67,546
66,267
64,261
62,772
61,733
2
9
67,546
61,733
9
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
23
$
2
$
(12)
$
(7)
$
88
NM
(74)
$
6
$
370
(98)
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (e)
584
547
783
842
1,008
7
(42)
584
1,008
(42)
Nonaccrual loans held-for-sale and loans at fair value (f)
844
1,234
1,187
1,266
1,662
(32)
(49)
844
1,662
(49)
Total nonaccrual loans
1,428
1,781
1,970
2,108
2,670
(20)
(47)
1,428
2,670
(47)
Derivative receivables
316
393
481
284
56
(20)
464
316
56
464
Assets acquired in loan satisfactions
91
95
95
97
85
(4)
7
91
85
7
Total nonperforming assets
1,835
2,269
2,546
2,489
2,811
(19)
(35)
1,835
2,811
(35)
Allowance for credit losses:
Allowance for loan losses
1,348
1,442
1,607
1,982
2,366
(7)
(43)
1,348
2,366
(43)
Allowance for lending-related commitments
1,372
1,426
1,902
1,602
1,534
(4)
(11)
1,372
1,534
(11)
Total allowance for credit losses
2,720
2,868
3,509
3,584
3,900
(5)
(30)
2,720
3,900
(30)
Net charge-off/(recovery) rate (b)(g)
0.06
%
0.01
%
(0.03)
%
(0.02)
%
0.27
%
—
%
0.27
%
Allowance for loan losses to period-end loans retained (b)
0.84
0.95
1.11
1.48
1.77
0.84
1.77
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (h)
1.12
1.29
1.53
2.06
2.54
1.12
2.54
Allowance for loan losses to nonaccrual loans retained (b)(e)
231
264
205
235
235
231
235
Nonaccrual loans to total period-end loans
0.68
0.87
0.98
1.17
1.54
0.68
1.54
(a)In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)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.
(c)Loans held-for-sale and loans at fair value primarily reflect lending related positions originated and purchased in CIB Markets, including loans held for securitization.
(d)During the six months ended June 30, 2021, 1,155 technology and risk management employees transferred from Corporate to CIB.
(e)Allowance for loan losses of $58 million, $138 million, $180 million, $174 million and $278 million were held against nonaccrual loans at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively.
(f)At December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $281 million, $289 million, $316 million, $340 million and $316 million, respectively. These amounts have been excluded based upon the government guarantee.
(g)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
(h)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.
(i)Prior-period amounts have been revised to conform with the current presentation.
Page 16
JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
BUSINESS METRICS
Advisory
$
1,557
$
1,228
$
916
$
680
$
835
27
%
86
%
$
4,381
$
2,368
85
%
Equity underwriting
802
1,032
1,063
1,056
718
(22)
12
3,953
2,758
43
Debt underwriting
1,143
1,037
1,593
1,252
1,005
10
14
5,025
4,351
15
Total investment banking fees
$
3,502
$
3,297
$
3,572
$
2,988
$
2,558
6
37
$
13,359
$
9,477
41
Client deposits and other third-party liabilities (average) (a)
717,496
714,376
721,882
705,764
683,818
—
5
714,910
610,555
17
Merchant processing volume (in billions) (b)
514.9
470.9
475.2
425.7
444.5
9
16
$
1,886.7
$
1,597.3
18
Assets under custody (“AUC”) (period-end) (in billions)
33,221
$
31,962
$
32,122
$
31,251
$
30,980
4
7
33,221
$
30,980
7
95% Confidence Level - Total CIB VaR (average)
CIB trading VaR by risk type: (c)
Fixed income
$
39
$
38
$
39
$
125
$
106
3
(63)
Foreign exchange
4
5
6
11
12
(20)
(67)
Equities
12
11
18
22
23
9
(48)
Commodities and other
12
11
22
33
36
9
(67)
Diversification benefit to CIB trading VaR (d)
(31)
(33)
(44)
(90)
(85)
6
64
CIB trading VaR (c)
36
32
41
101
92
13
(61)
Credit portfolio VaR (e)
5
5
6
8
12
—
(58)
Diversification benefit to CIB VaR (d)
(4)
(4)
(6)
(10)
(13)
—
69
CIB VaR
$
37
$
33
$
41
$
99
$
91
12
(59)
(a)Client deposits and other third-party liabilities pertain to the Payments and Securities Services businesses.
(b)Represents total merchant processing volume across CIB, CCB and CB.
(c)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. Refer to VaR measurement on pages 137–139 of the Firm’s 2020 Form 10-K, and pages 78–80 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021 for further information.
(d)Diversification benefit represents the difference between the portfolio VaR and the sum of its individual components. This reflects the non-additive nature of VaR due to imperfect correlation across CIB risks.
(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
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees
$
356
$
355
$
350
$
331
$
325
—
%
10
%
$
1,392
$
1,187
17
%
All other income
718
633
600
586
550
13
31
2,537
1,880
35
Noninterest revenue
1,074
988
950
917
875
9
23
3,929
3,067
28
Net interest income
1,538
1,532
1,533
1,476
1,588
—
(3)
6,079
6,246
(3)
TOTAL NET REVENUE (a)
2,612
2,520
2,483
2,393
2,463
4
6
10,008
9,313
7
Provision for credit losses
(89)
(363)
(377)
(118)
(1,181)
75
92
(947)
2,113
NM
NONINTEREST EXPENSE
Compensation expense
496
511
484
482
460
(3)
8
1,973
1,854
6
Noncompensation expense
563
521
497
487
490
8
15
2,068
1,944
6
TOTAL NONINTEREST EXPENSE
1,059
1,032
981
969
950
3
11
4,041
3,798
6
Income/(loss) before income tax expense/(benefit)
1,642
1,851
1,879
1,542
2,694
(11)
(39)
6,914
3,402
103
Income tax expense/(benefit)
391
444
459
374
660
(12)
(41)
1,668
824
102
NET INCOME
$
1,251
$
1,407
$
1,420
$
1,168
$
2,034
(11)
(38)
$
5,246
$
2,578
103
REVENUE BY PRODUCT
Lending
$
1,151
$
1,138
$
1,172
$
1,168
$
1,177
1
(2)
$
4,629
$
4,396
5
Payments
949
947
914
843
945
—
—
3,653
3,715
(2)
Investment banking (b)
475
416
370
350
318
14
49
1,611
1,069
51
Other
37
19
27
32
23
95
61
115
133
(14)
TOTAL NET REVENUE (a)
$
2,612
$
2,520
$
2,483
$
2,393
$
2,463
4
6
$
10,008
$
9,313
7
Investment banking revenue, gross (c)
$
1,456
$
1,343
$
1,164
$
1,129
$
971
8
50
$
5,092
$
3,348
52
REVENUE BY CLIENT SEGMENT
Middle Market Banking
$
1,062
$
1,017
$
1,009
$
916
$
947
4
12
$
4,004
$
3,640
10
Corporate Client Banking
928
878
851
851
856
6
8
3,508
3,203
10
Commercial Real Estate Banking
614
602
599
604
630
2
(3)
2,419
2,313
5
Other
8
23
24
22
30
(65)
(73)
77
157
(51)
TOTAL NET REVENUE (a)
$
2,612
$
2,520
$
2,483
$
2,393
$
2,463
4
6
$
10,008
$
9,313
7
FINANCIAL RATIOS
ROE
20
%
22
%
23
%
19
%
36
%
21
%
11
%
Overhead ratio
41
41
40
40
39
40
41
(a)Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities and in entities established for rehabilitation of historic properties, as well as tax-exempt income related to municipal financing activities of $99 million, $80 million, $78 million, $73 million and $107 million for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively, and $330 million and $350 million for the full year 2021 and 2020, respectively. In the first quarter of 2021, in relation to the reclassification of certain deferred investment tax credits, prior-period tax-equivalent adjustment amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)Includes CB’s share of revenue from investment banking products sold to CB clients through the CIB.
(c)Refer to page 65 of the Firm’s 2020 Form 10-K for discussion of revenue sharing.
Page 18
JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
SELECTED BALANCE SHEET DATA (period-end)
Total assets (a)
$
230,776
$
227,670
$
226,022
$
223,583
$
228,911
1
%
1
%
$
230,776
$
228,911
1
%
Loans:
Loans retained
206,220
201,283
200,929
202,975
207,880
2
(1)
206,220
207,880
(1)
Loans held-for-sale and loans at fair value
2,223
3,412
3,381
2,884
2,245
(35)
(1)
2,223
2,245
(1)
Total loans
$
208,443
$
204,695
$
204,310
$
205,859
$
210,125
2
(1)
$
208,443
$
210,125
(1)
Equity
24,000
24,000
24,000
24,000
22,000
—
9
24,000
22,000
9
Period-end loans by client segment
Middle Market Banking (b)
$
61,159
$
58,918
$
59,314
$
59,983
$
61,115
4
—
$
61,159
$
61,115
—
Corporate Client Banking
45,315
45,107
44,866
45,540
47,420
—
(4)
45,315
47,420
(4)
Commercial Real Estate Banking
101,751
100,458
99,858
100,035
101,146
1
1
101,751
101,146
1
Other
218
212
272
301
444
3
(51)
218
444
(51)
Total loans (b)
$
208,443
$
204,695
$
204,310
$
205,859
$
210,125
2
(1)
$
208,443
$
210,125
(1)
SELECTED BALANCE SHEET DATA (average)
Total assets (a)
$
227,308
$
222,760
$
226,562
$
225,574
$
227,431
2
—
$
225,548
$
233,156
(3)
Loans:
Loans retained
201,676
199,789
202,102
204,164
210,621
1
(4)
201,920
217,767
(7)
Loans held-for-sale and loans at fair value
3,958
2,790
3,150
2,578
1,554
42
155
3,122
1,129
177
Total loans
$
205,634
$
202,579
$
205,252
$
206,742
$
212,175
2
(3)
$
205,042
$
218,896
(6)
Client deposits and other third-party liabilities
323,821
300,595
290,250
290,992
276,694
8
17
301,502
237,825
27
Equity
24,000
24,000
24,000
24,000
22,000
—
9
24,000
22,000
9
Average loans by client segment
Middle Market Banking
$
59,784
$
59,032
$
61,698
$
60,011
$
60,869
1
(2)
$
60,128
$
61,558
(2)
Corporate Client Banking
44,976
43,330
43,440
45,719
48,825
4
(8)
44,361
54,172
(18)
Commercial Real Estate Banking
100,682
100,120
99,864
100,661
101,969
1
(1)
100,331
102,479
(2)
Other
192
97
250
351
512
98
(63)
222
687
(68)
Total loans
$
205,634
$
202,579
$
205,252
$
206,742
$
212,175
2
(3)
$
205,042
$
218,896
(6)
Headcount
12,902
12,584
12,163
11,748
11,675
3
11
12,902
11,675
11
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
8
$
31
$
3
$
29
$
162
(74)
(95)
$
71
$
401
(82)
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (c)(d)
740
735
1,006
1,134
1,286
1
(42)
740
1,286
(42)
Nonaccrual loans held-for-sale and loans
at fair value
—
—
2
—
120
—
NM
—
120
NM
Total nonaccrual loans
740
735
1,008
1,134
1,406
1
(47)
740
1,406
(47)
Assets acquired in loan satisfactions
17
16
17
24
24
6
(29)
17
24
(29)
Total nonperforming assets
757
751
1,025
1,158
1,430
1
(47)
757
1,430
(47)
Allowance for credit losses:
Allowance for loan losses
2,219
2,354
2,589
3,086
3,335
(6)
(33)
2,219
3,335
(33)
Allowance for lending-related commitments
749
711
870
753
651
5
15
749
651
15
Total allowance for credit losses
2,968
3,065
3,459
3,839
3,986
(3)
(26)
2,968
3,986
(26)
Net charge-off/(recovery) rate (e)
0.02
%
0.06
%
0.01
%
0.06
%
0.31
%
0.04
%
0.18
%
Allowance for loan losses to period-end loans retained
1.08
1.17
1.29
1.52
1.60
1.08
1.60
Allowance for loan losses to nonaccrual loans retained (c)
300
320
257
272
259
300
259
Nonaccrual loans to period-end total loans
0.36
0.36
0.49
0.55
0.67
0.36
0.67
(a)In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)At December 31, 2021, September 30,2021, June 30, 2021, March 31, 2021 and December 31, 2020 , total loans included $1.2 billion, $2.0 billion, $5.0 billion, $7.4 billion and $6.6 billion of loans, respectively, under the PPP, of which $1.1 billion, $1.9 billion, $4.9 billion, $7.2 billion and $6.4 billion were in Middle Market Banking. Refer to page 113 of the Firm’s 2020 Form 10-K for further information on the PPP.
(c)Allowance for loan losses of $124 million, $123 million, $188 million, $227 million and $273 million was held against nonaccrual loans retained at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively.
(d)At December 31, 2021, nonaccrual loans excluded PPP loans 90 or more days past due and insured by the SBA of $114 million. These amounts have been excluded based upon the SBA guarantee. There were no PPP loans 90 or more days past due in all other periods presented.
(e)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 & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
INCOME STATEMENT
REVENUE
Asset management, administration and commissions
$
3,330
$
3,096
$
3,019
$
2,888
$
2,892
8
%
15
%
$
12,333
$
10,610
16
%
All other income
118
216
146
258
87
(45)
36
738
212
248
Noninterest revenue
3,448
3,312
3,165
3,146
2,979
4
16
13,071
10,822
21
Net interest income
1,025
988
942
931
888
4
15
3,886
3,418
14
TOTAL NET REVENUE
4,473
4,300
4,107
4,077
3,867
4
16
16,957
14,240
19
Provision for credit losses
(36)
(60)
(10)
(121)
(2)
40
NM
(227)
263
NM
NONINTEREST EXPENSE
Compensation expense
1,560
1,387
1,356
1,389
1,323
12
18
5,692
4,959
15
Noncompensation expense
1,437
1,375
1,230
1,185
1,433
5
—
5,227
4,998
5
TOTAL NONINTEREST EXPENSE
2,997
2,762
2,586
2,574
2,756
9
9
10,919
9,957
10
Income before income tax expense
1,512
1,598
1,531
1,624
1,113
(5)
36
6,265
4,020
56
Income tax expense
366
404
378
380
327
(9)
12
1,528
1,028
49
NET INCOME
$
1,146
$
1,194
$
1,153
$
1,244
$
786
(4)
46
$
4,737
$
2,992
58
REVENUE BY LINE OF BUSINESS
Asset Management
$
2,488
$
2,337
$
2,236
$
2,185
$
2,210
6
13
$
9,246
$
7,654
21
Global Private Bank (a)
1,985
1,963
1,871
1,892
1,657
1
20
7,711
6,586
17
TOTAL NET REVENUE
$
4,473
$
4,300
$
4,107
$
4,077
$
3,867
4
16
$
16,957
$
14,240
19
FINANCIAL RATIOS
ROE
32
%
33
%
32
%
35
%
29
%
33
%
28
%
Overhead ratio
67
64
63
63
71
64
70
Pretax margin ratio:
Asset Management
32
36
37
35
31
35
29
Global Private Bank (a)
36
38
38
45
26
39
27
Asset & Wealth Management
34
37
37
40
29
37
28
Headcount
22,762
22,051
20,866
20,578
20,683
3
10
22,762
20,683
10
Number of Global Private Bank client advisors (a)
2,738
2,646
2,435
2,462
2,462
3
11
2,738
2,462
11
(a)In the first quarter of 2021, the Wealth Management business was renamed Global Private Bank.
Page 20
JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
234,425
$
221,702
$
217,284
$
213,088
$
203,384
(a)
6
%
15
%
$
234,425
$
203,384
(a)
15
%
Loans
218,271
202,871
198,683
192,256
186,608
8
17
218,271
186,608
17
Deposits
282,052
242,309
217,488
217,460
198,755
16
42
282,052
198,755
42
Equity
14,000
14,000
14,000
14,000
10,500
—
33
14,000
10,500
33
SELECTED BALANCE SHEET DATA (average)
Total assets
$
227,597
$
219,022
$
214,384
$
207,505
$
193,026
(a)
4
18
$
217,187
$
181,432
(a)
20
Loans
209,169
200,635
195,171
188,726
176,758
4
18
198,487
166,311
19
Deposits
264,580
229,710
219,699
206,562
180,348
15
47
230,296
161,955
42
Equity
14,000
14,000
14,000
14,000
10,500
—
33
14,000
10,500
33
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
4
$
(1)
$
12
$
11
$
(16)
NM
NM
$
26
$
(14)
NM
Nonaccrual loans
708
686
792
917
(a)
964
(a)
3
(27)
708
964
(a)
(27)
Allowance for credit losses:
Allowance for loan losses
365
402
458
479
598
(9)
(39)
365
598
(39)
Allowance for lending-related commitments
18
20
25
25
38
(10)
(53)
18
38
(53)
Total allowance for credit losses
383
422
483
504
636
(9)
(40)
383
636
(40)
Net charge-off/(recovery) rate
0.01
%
—
%
0.02
%
0.02
%
(0.04)
%
0.01
%
(0.01)
%
Allowance for loan losses to period-end loans
0.17
0.20
0.23
0.25
0.32
0.17
0.32
Allowance for loan losses to nonaccrual loans
52
59
58
52
(a)
62
(a)
52
62
(a)
Nonaccrual loans to period-end loans
0.32
0.34
0.40
0.48
(a)
0.52
(a)
0.32
0.52
(a)
(a)Prior-period amounts have been revised to conform with the current presentation.
Page 21
JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)
Dec 31, 2021
Change
FULL YEAR
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Dec 31,
2021 Change
CLIENT ASSETS
2021
2021
2021
2021
2020
2021
2020
2021
2020
2020
Assets by asset class
Liquidity
$
708
$
685
$
698
$
686
$
641
3
%
10
%
$
708
$
641
10
%
Fixed income
693
695
688
662
671
—
3
693
671
3
Equity
779
725
725
661
595
7
31
779
595
31
Multi-asset
732
702
702
669
656
4
12
732
656
12
Alternatives
201
189
174
155
153
6
31
201
153
31
TOTAL ASSETS UNDER MANAGEMENT
3,113
2,996
2,987
2,833
2,716
4
15
3,113
2,716
15
Custody/brokerage/administration/deposits
1,182
1,100
1,057
995
936
7
26
1,182
936
26
TOTAL CLIENT ASSETS (a)
$
4,295
$
4,096
$
4,044
$
3,828
$
3,652
5
18
$
4,295
$
3,652
18
Assets by client segment
Private Banking
$
805
$
773
$
752
$
718
$
689
4
17
$
805
$
689
17
Global Institutional (b)
1,430
1,375
1,383
1,320
1,273
4
12
1,430
1,273
12
Global Funds (b)
878
848
852
795
754
4
16
878
754
16
TOTAL ASSETS UNDER MANAGEMENT
$
3,113
$
2,996
$
2,987
$
2,833
$
2,716
4
15
$
3,113
$
2,716
15
Private Banking
$
1,931
$
1,817
$
1,755
$
1,664
$
1,581
6
22
$
1,931
$
1,581
22
Global Institutional (b)
1,479
1,425
1,430
1,362
1,311
4
13
1,479
1,311
13
Global Funds (b)
885
854
859
802
760
4
16
885
760
16
TOTAL CLIENT ASSETS (a)
$
4,295
$
4,096
$
4,044
$
3,828
$
3,652
5
18
$
4,295
$
3,652
18
Assets under management rollforward
Beginning balance
$
2,996
$
2,987
$
2,833
$
2,716
$
2,560
$
2,716
$
2,328
Net asset flows:
Liquidity
20
(11)
15
44
(36)
68
104
Fixed income
—
11
17
8
8
36
48
Equity
18
16
20
31
14
85
33
Multi-asset
6
3
2
6
10
17
5
Alternatives
10
3
10
3
1
26
6
Market/performance/other impacts
63
(13)
90
25
159
165
192
Ending balance
$
3,113
$
2,996
$
2,987
$
2,833
$
2,716
$
3,113
$
2,716
Client assets rollforward
Beginning balance
$
4,096
$
4,044
$
3,828
$
3,652
$
3,370
$
3,652
$
3,089
Net asset flows
109
75
75
130
39
389
276
Market/performance/other impacts
90
(23)
141
46
243
254
287
Ending balance
$
4,295
$
4,096
$
4,044
$
3,828
$
3,652
$
4,295
$
3,652
(a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager.
(b)In the first quarter of 2021, Institutional and Retail client segments were renamed to Global Institutional and Global Funds, respectively. This did not result in a change to the clients within either client segment.
Page 22
JPMORGAN CHASE & CO.
CORPORATE
FINANCIAL HIGHLIGHTS
(in millions, except headcount data)
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
INCOME STATEMENT
REVENUE
Principal transactions
$
26
$
(103)
$
(8)
$
272
$
273
NM
(90)
%
$
187
$
245
(24)
%
Investment securities gains/(losses)
52
(256)
(155)
14
70
NM
(26)
%
(345)
795
NM
All other income
58
117
(45)
96
249
(50)
(77)
226
159
42
Noninterest revenue
136
(242)
(208)
382
592
NM
(77)
68
1,199
(94)
Net interest income
(681)
(1,054)
(961)
(855)
(841)
35
19
(3,551)
(2,375)
(50)
TOTAL NET REVENUE (a)
(545)
(1,296)
(1,169)
(473)
(249)
58
(119)
(3,483)
(1,176)
(196)
Provision for credit losses
23
(7)
49
16
(42)
NM
NM
81
66
23
NONINTEREST EXPENSE
251
160
515
876
361
57
(30)
1,802
1,373
31
Income/(loss) before income tax expense/(benefit)
(819)
(1,449)
(1,733)
(1,365)
(568)
43
(44)
(5,366)
(2,615)
(105)
Income tax expense/(benefit)
253
(632)
(489)
(785)
(210)
NM
NM
(1,653)
(865)
(91)
NET INCOME/(LOSS)
$
(1,072)
$
(817)
$
(1,244)
$
(580)
$
(358)
(31)
(199)
$
(3,713)
$
(1,750)
(112)
MEMO:
TOTAL NET REVENUE
Treasury and Chief Investment Office (“CIO”)
(480)
(1,198)
(1,081)
(705)
(623)
60
23
(3,464)
(1,368)
(153)
Other Corporate
(65)
(98)
(88)
232
374
34
NM
(19)
192
NM
TOTAL NET REVENUE
$
(545)
$
(1,296)
$
(1,169)
$
(473)
$
(249)
58
(119)
$
(3,483)
$
(1,176)
(196)
NET INCOME/(LOSS)
Treasury and CIO
(428)
(998)
(956)
(675)
(587)
57
27
(3,057)
(1,403)
(118)
Other Corporate
(644)
181
(288)
95
229
NM
NM
(656)
(347)
(89)
TOTAL NET INCOME/(LOSS)
$
(1,072)
$
(817)
$
(1,244)
$
(580)
$
(358)
(31)
(199)
$
(3,713)
$
(1,750)
(112)
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
1,518,100
$
1,459,283
$
1,382,653
$
1,409,564
$
1,359,831
4
12
$
1,518,100
$
1,359,831
12
Loans
1,770
1,697
1,530
1,627
1,657
4
7
1,770
1,657
7
Headcount (b)
38,952
38,302
37,520
38,168
38,366
2
2
38,952
38,366
2
SUPPLEMENTAL INFORMATION
TREASURY and CIO
Investment securities gains/(losses)
$
52
$
(256)
$
(155)
$
14
$
70
NM
(26)
$
(345)
$
795
NM
Available-for-sale securities (average)
290,590
223,747
342,338
372,443
410,803
30
(29)
306,827
413,367
(26)
Held-to-maturity securities (average) (c)
349,989
339,544
240,696
207,957
155,525
3
125
285,086
94,569
201
Investment securities portfolio (average)
$
640,579
$
563,291
$
583,034
$
580,400
$
566,328
14
13
$
591,913
$
507,936
17
Available-for-sale securities (period-end)
306,352
249,484
230,127
377,911
386,065
23
(21)
306,352
386,065
(21)
Held-to-maturity securities, net of allowance for credit losses (period-end) (c)
363,707
343,542
341,476
217,452
201,821
6
80
363,707
201,821
80
Investment securities portfolio, net of allowance for credit losses (period-end) (d)
$
670,059
$
593,026
$
571,603
$
595,363
$
587,886
13
14
$
670,059
$
587,886
14
(a)Included tax-equivalent adjustments, driven by tax-exempt income from municipal bonds, of $60 million, $64 million, $66 million, $67 million and $55 million for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively, and $257 million and $241 million for the full year 2021 and 2020, respectively.
(b)During the six months ended June 30, 2021, 1,155 technology and risk management employees were transferred from Corporate to CIB.
(c)During 2021 and 2020, the Firm transferred $104.5 billion and $164.2 billion of investment securities, respectively, from AFS to HTM for capital management purposes.
(d)At December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, the allowance for credit losses on investment securities was $42 million, $73 million, $87 million, $94 million and $78 million, respectively.
Page 23
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
Dec 31, 2021
Change
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Dec 31,
2021
2021
2021
2021
2020
2021
2020
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained
$
295,556
$
298,308
$
297,731
$
302,392
$
302,127
(1)
%
(2)
%
Loans held-for-sale and loans at fair value
27,750
29,856
31,954
22,516
16,452
(7)
69
Total consumer, excluding credit card loans
323,306
328,164
329,685
324,908
318,579
(1)
1
Credit card loans
Loans retained
154,296
143,166
141,079
131,772
143,432
8
8
Loans held-for-sale
—
—
723
721
784
—
NM
Total credit card loans
154,296
143,166
141,802
132,493
144,216
8
7
Total consumer loans
477,602
471,330
471,487
457,401
462,795
1
3
Wholesale loans (b)
Loans retained
560,354
532,786
524,855
514,478
514,947
5
9
Loans held-for-sale and loans at fair value
39,758
40,499
44,612
39,428
35,111
(2)
13
Total wholesale loans
600,112
573,285
569,467
553,906
550,058
5
9
Total loans
1,077,714
1,044,615
1,040,954
1,011,307
1,012,853
3
6
Derivative receivables
57,081
67,908
66,320
(g)
68,896
(g)
75,444
(g)
(16)
(24)
Receivables from customers (c)
59,645
58,752
59,609
58,180
47,710
2
25
Total credit-related assets
1,194,440
1,171,275
1,166,883
1,138,383
1,136,007
2
5
Lending-related commitments
Consumer, excluding credit card
45,334
56,684
56,875
56,245
57,319
(g)
(20)
(21)
Credit card (d)
730,534
710,610
682,531
674,367
658,506
3
11
Wholesale
486,454
499,236
(g)
502,616
481,244
449,863
(3)
8
Total lending-related commitments
1,262,322
1,266,530
1,242,022
1,211,856
1,165,688
—
8
Total credit exposure
$
2,456,762
$
2,437,805
$
2,408,905
$
2,350,239
$
2,301,695
1
7
Memo: Total by category
Consumer exposure (e)
$
1,253,470
$
1,238,624
$
1,210,893
$
1,188,013
$
1,178,620
1
6
Wholesale exposure (f)
1,203,292
1,199,181
1,198,012
1,162,226
1,123,075
—
7
Total credit exposure
$
2,456,762
$
2,437,805
$
2,408,905
$
2,350,239
$
2,301,695
1
7
(a)Includes scored loans held in CCB, scored mortgage and home equity loans held in AWM, and scored mortgage loans held in CIB and Corporate.
(b)Includes loans held in CIB, CB, AWM, Corporate as well as risk-rated loans held in CCB, including business banking and auto dealer loans for which the wholesale methodology is applied when determining the allowance for loan losses.
(c)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.
(d)Also includes commercial card lending-related commitments primarily in CB and CIB.
(e)Represents total consumer loans and lending-related commitments.
(f)Represents total wholesale loans, lending-related commitments, derivative receivables, and receivables from customers.
(g)Prior-period amounts have been revised to conform with the current presentation.
Page 24
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
Dec 31, 2021
Change
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Dec 31,
2021
2021
2021
2021
2020
2021
2020
NONPERFORMING ASSETS (a)(b)
Consumer nonaccrual loans
Loans retained
$
4,878
$
4,911
$
5,183
$
5,382
$
5,464
(1)
%
(11)
%
Loans held-for-sale and loans at fair value
472
440
475
608
1,003
7
(53)
Total consumer nonaccrual loans
5,350
5,351
5,658
5,990
6,467
—
(17)
Wholesale nonaccrual loans
Loans retained
2,054
2,084
2,698
3,015
3,318
(1)
(38)
Loans held-for-sale and loans at fair value
391
808
716
701
788
(52)
(50)
Total wholesale nonaccrual loans
2,445
2,892
3,414
3,716
4,106
(15)
(40)
Total nonaccrual loans (c)
7,795
8,243
9,072
9,706
10,573
(5)
(26)
Derivative receivables
316
393
481
284
56
(20)
464
Assets acquired in loan satisfactions
235
246
249
267
277
(4)
(15)
Total nonperforming assets
8,346
8,882
9,802
10,257
10,906
(6)
(23)
Wholesale lending-related commitments (d)
764
641
851
800
577
19
32
Total nonperforming exposure
$
9,110
$
9,523
$
10,653
$
11,057
$
11,483
(4)
(21)
NONACCRUAL LOAN-RELATED RATIOS (b)
Total nonaccrual loans to total loans
0.72
%
0.79
%
0.87
%
0.96
%
1.04
%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans
1.65
1.63
1.72
1.84
2.03
Total wholesale nonaccrual loans to total
wholesale loans
0.41
0.50
0.60
0.67
0.75
(a)At December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, nonperforming assets excluded: (1) mortgage loans 90 or more days past due and insured by U.S. government agencies of $623 million, $644 million, $713 million, $798 million and $874 million, respectively; and (2) real estate owned (“REO”) insured by U.S. government agencies of $5 million, $5 million, $7 million, $8 million and $9 million, respectively. The amount of mortgage loans 90 or more days past due and insured by U.S. government agencies excluded at June 30, 2021 has been revised to conform with the current presentation. 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. Refer to Note 12 of the Firm’s 2020 Form 10-K for additional information on the Firm’s credit card nonaccrual and charge-off policies.
(b)At December 31, 2021 and September 30, 2021, nonperforming assets excluded PPP loans 90 or more days past due and insured by the SBA of $633 million and $5 million, respectively. These amounts have been excluded based upon the SBA guarantee. There were no PPP loans 90 or more days past due in all other periods presented.
(c)Generally excludes loans that were under payment deferral or other assistance, including amendments or waivers of financial covenants, in response to the COVID-19 pandemic.
(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
FULL YEAR
4Q21 Change
2021 Change
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance
$
18,150
$
19,500
$
23,001
$
28,328
$
30,814
(7)
%
(41)
%
$
28,328
$
17,295
64
%
Net charge-offs:
Gross charge-offs
968
940
1,188
1,468
1,471
3
(34)
4,564
6,836
(33)
Gross recoveries collected
(418)
(416)
(454)
(411)
(421)
—
1
(1,699)
(1,577)
(8)
Net charge-offs
550
524
734
1,057
1,050
5
(48)
2,865
5,259
(46)
Provision for loan losses
(1,214)
(819)
(2,759)
(4,279)
(1,433)
(48)
15
(9,071)
16,291
NM
Other
—
(7)
(8)
9
(3)
NM
NM
(6)
1
NM
Ending balance
$
16,386
$
18,150
$
19,500
$
23,001
$
28,328
(10)
(42)
$
16,386
$
28,328
(42)
ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance
$
2,305
$
2,998
$
2,516
$
2,409
$
2,823
(23)
(18)
$
2,409
$
1,289
87
Provision for lending-related commitments
(43)
(694)
481
107
(414)
94
90
(149)
1,121
NM
Other
(1)
1
1
—
—
NM
NM
1
(1)
NM
Ending balance
$
2,261
$
2,305
$
2,998
$
2,516
$
2,409
(2)
(6)
$
2,261
$
2,409
(6)
ALLOWANCE FOR INVESTMENT SECURITIES
$
42
$
73
$
87
$
94
$
78
(42)
(46)
$
42
$
78
(46)
Total allowance for credit losses
$
18,689
$
20,528
$
22,585
$
25,611
$
30,815
(9)
(39)
$
18,689
$
30,815
(39)
NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans
0.04
%
(0.01)
%
(0.04)
%
0.03
%
0.05
%
—
%
0.06
%
Credit card retained loans
1.28
1.39
2.24
2.97
2.17
1.94
2.93
Total consumer retained loans
0.45
0.44
0.67
0.93
0.72
0.62
0.99
Wholesale retained loans
0.03
0.03
0.01
0.04
0.19
0.03
0.16
Total retained loans
0.22
0.21
0.31
0.45
0.44
0.30
0.55
Memo: Average retained loans
Consumer retained, excluding credit card loans
$
296,423
$
298,019
$
298,823
$
302,055
$
303,421
(1)
(2)
$
298,814
$
302,005
(1)
Credit card retained loans
148,471
141,371
135,430
134,155
140,459
5
6
139,900
146,391
(4)
Total average retained consumer loans
444,894
439,390
434,253
436,210
443,880
1
—
438,714
448,396
(2)
Wholesale retained loans
541,183
528,979
519,902
515,858
503,249
2
8
526,557
509,907
3
Total average retained loans
$
986,077
$
968,369
$
954,155
$
952,068
$
947,129
2
4
$
965,271
$
958,303
1
Page 26
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
Dec 31, 2021
Change
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Dec 31,
2021
2021
2021
2021
2020
2021
2020
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)
$
(665)
$
(571)
$
(557)
$
(348)
$
(7)
(16)
%
NM
Portfolio-based
2,430
2,445
2,455
3,030
3,643
(1)
(33)
%
Total consumer, excluding credit card
1,765
1,874
1,898
2,682
3,636
(6)
(51)
Credit card
Asset-specific (b)
313
383
443
522
633
(18)
(51)
Portfolio-based
9,937
11,267
12,057
13,778
17,167
(12)
(42)
Total credit card
10,250
11,650
12,500
14,300
17,800
(12)
(42)
Total consumer
12,015
13,524
14,398
16,982
21,436
(11)
(44)
Wholesale
Asset-specific (c)
263
357
488
529
682
(26)
(61)
Portfolio-based
4,108
4,269
4,614
5,490
6,210
(4)
(34)
Total wholesale
4,371
4,626
5,102
6,019
6,892
(6)
(37)
Total allowance for loan losses
16,386
18,150
19,500
23,001
28,328
(10)
(42)
Allowance for lending-related commitments
2,261
2,305
2,998
2,516
2,409
(2)
(6)
Allowance for investment securities
42
73
87
94
78
(42)
(46)
Total allowance for credit losses
$
18,689
$
20,528
$
22,585
$
25,611
$
30,815
(9)
(39)
CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans
0.60
%
0.63
%
0.64
%
0.89
%
1.20
%
Credit card allowance to total credit card retained loans
6.64
8.14
8.86
10.85
12.41
Wholesale allowance to total wholesale retained loans
0.78
0.87
0.97
1.17
1.34
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (d)
0.84
0.93
1.05
1.26
1.45
Total allowance to total retained loans
1.62
1.86
2.02
2.42
2.95
Consumer, excluding credit card allowance, to consumer,
Wholesale allowance to wholesale retained nonaccrual loans
213
222
189
200
208
Total allowance to total retained nonaccrual loans
236
259
247
274
323
(a)Includes collateral-dependent loans, including those considered troubled debt restructurings (“TDRs”) and those for which foreclosure is deemed probable, modified PCD loans, and non-collateral dependent loans that have been modified or are reasonably expected to be modified in a TDR.
(b)The asset-specific credit card allowance for loan losses relates to loans that have been modified or are reasonably expected to be modified in a TDR; the Firm calculates this allowance based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
(c)Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified or are reasonably expected to be modified in a TDR.
(d)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.
(e)Refer to footnote (a) on page 25 for information on the Firm’s nonaccrual policy for credit card loans.
Page 27
JPMORGAN CHASE & CO.
NON-GAAP FINANCIAL MEASURES
Non-GAAP Financial Measures
(a)In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. The Firm’s definition of managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the reportable business segments) on an FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. These financial measures allow management to assess the comparability of revenue from year-to-year 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)Pre-provision profit is a non-GAAP financial measure which represents total net revenue less total noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.
(c)TCE, ROTCE, and TBVPS are each non-GAAP financial measures. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. TCE, ROTCE, and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.
(d)The ratio of the wholesale and CIB’s allowance for loan losses to period-end loans retained, excluding trade finance and conduits, is calculated excluding loans accounted for at fair value, loans held-for-sale, CIB’s trade finance loans and consolidated Firm-administered multi-seller conduits, as well as their related allowances, to provide a more meaningful assessment of the respective allowance coverage ratio.
(e)In addition to reviewing net interest income (“NII”), net yield, and noninterest revenue (“NIR”) on a managed basis, management also reviews these metrics excluding CIB Markets, as shown below. CIB Markets consists of Fixed Income Markets and Equity Markets. These metrics, which exclude CIB Markets, are non-GAAP financial measures. Management reviews these metrics to assess the performance of the Firm’s lending, investing (including asset-liability management) and deposit-raising activities, without the volatility arising from CIB Markets. In addition, management also assesses CIB Markets business performance on a total revenue basis as offsets may occur across revenue lines. Management believes that disclosure of these measures provides investors and analysts with other measures by which to analyze the revenue trends of the Firm.
QUARTERLY TRENDS
FULL YEAR
4Q21 Change
2021 Change
(in millions, except rates)
4Q21
3Q21
2Q21
1Q21
4Q20
3Q21
4Q20
2021
2020
2020
Net interest income - reported
$
13,601
$
13,080
$
12,741
$
12,889
$
13,258
4
%
3
%
$
52,311
$
54,563
(4)
%
Fully taxable-equivalent adjustments
108
104
109
109
97
4
11
430
418
3
Net interest income - managed basis (a)
$
13,709
$
13,184
$
12,850
$
12,998
$
13,355
4
3
$
52,741
$
54,981
(4)
Less: CIB Markets net interest income
2,066
1,967
1,987
2,223
2,166
5
(5)
8,243
8,374
(2)
Net interest income excluding CIB Markets (a)
$
11,643
$
11,217
$
10,863
$
10,775
$
11,189
4
4
$
44,498
$
46,607
(5)
Average interest-earning assets
$
3,337,855
$
3,219,786
$
3,177,195
$
3,126,569
$
2,955,646
4
13
$
3,215,942
$
2,779,710
16
Less: Average CIB Markets interest-earning assets
908,093
894,892
882,848
866,591
743,337
1
22
888,238
751,131
18
Average interest-earning assets excluding CIB Markets
$
2,429,762
$
2,324,894
$
2,294,347
$
2,259,978
$
2,212,309
5
10
$
2,327,704
$
2,028,579
15
Net yield on average interest-earning assets - managed basis
1.63
%
1.62
%
1.62
%
1.69
%
1.80
%
1.64
%
1.98
%
Net yield on average CIB Markets interest-earning assets
0.90
0.87
0.90
1.04
1.16
0.93
1.11
Net yield on average interest-earning assets excluding CIB Markets
1.90
1.91
1.90
1.93
2.01
1.91
2.30
Noninterest revenue - reported
$
15,656
$
16,567
$
17,738
$
19,377
$
16,077
(5)
(3)
$
69,338
$
65,388
6
Fully taxable-equivalent adjustments
984
690
807
744
729
43
35
3,225
2,560
26
Noninterest revenue - managed basis
$
16,640
$
17,257
$
18,545
$
20,121
$
16,806
(4)
(1)
$
72,563
$
67,948
7
Less: CIB Markets noninterest revenue
3,222
4,302
4,800
6,827
3,773
(25)
(15)
19,151
21,109
(9)
Noninterest revenue excluding CIB Markets
$
13,418
$
12,955
$
13,745
$
13,294
$
13,033
4
3
$
53,412
$
46,839
14
Memo: CIB Markets total net revenue
$
5,288
$
6,269
$
6,787
$
9,050
$
5,939
(16)
(11)
$
27,394
$
29,483
(7)
(a) Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
