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 181-186 and pages 187-189, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 30,
2021.
JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share and ratio data)
QUARTERLY TRENDS
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
SELECTED INCOME STATEMENT DATA
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
Reported Basis
Total net revenue (a)
$
29,647
$
30,479
$
32,266
$
29,335
$
29,255
(3)
%
1
%
$
92,392
$
90,616
2
%
Total noninterest expense
17,063
17,667
18,725
16,048
16,875
(3)
1
53,455
50,608
6
Pre-provision profit (b)
12,584
12,812
13,541
13,287
12,380
(2)
2
38,937
40,008
(3)
Provision for credit losses
(1,527)
(2,285)
(4,156)
(1,889)
611
33
NM
(7,968)
19,369
NM
NET INCOME
11,687
11,948
14,300
12,136
9,443
(2)
24
37,935
16,995
123
Managed Basis (c)
Total net revenue
30,441
31,395
33,119
30,161
29,941
(3)
2
94,955
92,768
2
Total noninterest expense
17,063
17,667
18,725
16,048
16,875
(3)
1
53,455
50,608
6
Pre-provision profit (b)
13,378
13,728
14,394
14,113
13,066
(3)
2
41,500
42,160
(2)
Provision for credit losses
(1,527)
(2,285)
(4,156)
(1,889)
611
33
NM
(7,968)
19,369
NM
NET INCOME
11,687
11,948
14,300
12,136
9,443
(2)
24
37,935
16,995
123
EARNINGS PER SHARE DATA
Net income: Basic
$
3.74
$
3.79
$
4.51
$
3.80
$
2.93
(1)
28
$
12.05
$
5.10
136
Diluted
3.74
3.78
4.50
3.79
2.92
(1)
28
12.02
5.09
136
Average shares: Basic
2,999.9
3,036.6
3,073.5
3,079.7
3,077.8
(1)
(3)
3,036.4
3,083.3
(2)
Diluted
3,005.1
3,041.9
3,078.9
3,085.1
3,082.8
(1)
(3)
3,041.7
3,088.1
(2)
MARKET AND PER COMMON SHARE DATA
Market capitalization
$
483,748
$
464,778
$
460,820
$
387,492
$
293,451
4
65
$
483,748
$
293,451
65
Common shares at period-end
2,955.3
2,988.2
3,027.1
3,049.4
3,048.2
(1)
(3)
2,955.3
3,048.2
(3)
Book value per share
86.36
84.85
82.31
81.75
79.08
2
9
86.36
79.08
9
Tangible book value per share (“TBVPS”) (b)
69.87
68.91
66.56
66.11
63.93
1
9
69.87
63.93
9
Cash dividends declared per share
1.00
(f)
0.90
0.90
0.90
0.90
11
11
2.80
2.70
4
FINANCIAL RATIOS (d)
Return on common equity (“ROE”)
18
%
18
%
23
%
19
%
15
%
20
%
9
%
Return on tangible common equity (“ROTCE”) (b)
22
23
29
24
19
24
11
Return on assets
1.24
1.29
1.61
1.42
1.14
1.37
0.72
CAPITAL RATIOS (e)
Common equity Tier 1 (“CET1”) capital ratio
12.9
%
(g)
13.0
%
13.1
%
13.1
%
13.1
%
12.9
%
(g)
13.1
%
Tier 1 capital ratio
15.0
(g)
15.1
15.0
15.0
15.0
15.0
(g)
15.0
Total capital ratio
16.9
(g)
17.1
17.2
17.3
17.3
16.9
(g)
17.3
Tier 1 leverage ratio
6.6
(g)
6.6
6.7
7.0
7.0
6.6
(g)
7.0
Supplementary leverage ratio (“SLR”)
5.5
(g)
5.4
6.7
6.9
7.0
5.5
(g)
7.0
(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. For the periods ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $3.3 billion, $3.8 billion, $4.5 billion, $5.7 billion and $6.4 billion, respectively. The SLR prior to the periods ended June 30, 2021 reflects 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 45-50 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
SELECTED BALANCE SHEET DATA (period-end)
Total assets (a)
$
3,757,576
$
3,684,256
$
3,689,336
$
3,384,757
$
3,245,061
2
%
16
%
$
3,757,576
$
3,245,061
16
%
Loans:
Consumer, excluding credit card loans
328,164
329,685
324,908
318,579
322,098
—
2
328,164
322,098
2
Credit card loans
143,166
141,802
132,493
144,216
140,377
1
2
143,166
140,377
2
Wholesale loans
573,285
569,467
553,906
550,058
527,265
1
9
573,285
527,265
9
Total Loans
1,044,615
1,040,954
1,011,307
1,012,853
989,740
—
6
1,044,615
989,740
6
Deposits:
U.S. offices:
Noninterest-bearing
656,438
639,114
629,139
572,711
540,116
3
22
656,438
540,116
22
Interest-bearing
1,344,092
1,281,432
1,266,856
1,197,032
1,117,149
5
20
1,344,092
1,117,149
20
Non-U.S. offices:
Noninterest-bearing
28,589
24,723
22,661
23,435
21,406
16
34
28,589
21,406
34
Interest-bearing
373,234
359,948
359,456
351,079
322,745
4
16
373,234
322,745
16
Total deposits
2,402,353
2,305,217
2,278,112
2,144,257
2,001,416
4
20
2,402,353
2,001,416
20
Long-term debt
298,465
299,926
279,427
281,685
279,175
—
7
298,465
279,175
7
Common stockholders’ equity
255,203
253,548
249,151
249,291
241,050
1
6
255,203
241,050
6
Total stockholders’ equity
290,041
286,386
280,714
279,354
271,113
1
7
290,041
271,113
7
Loans-to-deposits ratio
43
%
45
%
44
%
47
%
49
%
43
%
49
%
Headcount
265,790
260,110
259,350
255,351
256,358
2
4
265,790
256,358
4
95% CONFIDENCE LEVEL - TOTAL VaR
Average VaR
$
35
$
43
$
106
$
96
$
90
(19)
(61)
LINE OF BUSINESS NET REVENUE (b)
Consumer & Community Banking
$
12,521
$
12,760
$
12,517
$
12,728
$
12,895
(2)
(3)
$
37,798
$
38,540
(2)
Corporate & Investment Bank
12,396
13,214
14,605
11,352
11,546
(6)
7
40,215
37,932
6
Commercial Banking
2,520
2,483
2,393
2,463
2,285
1
10
7,396
6,850
8
Asset & Wealth Management
4,300
4,107
4,077
3,867
3,554
5
21
12,484
10,373
20
Corporate
(1,296)
(1,169)
(473)
(249)
(339)
(11)
(282)
(2,938)
(927)
(217)
TOTAL NET REVENUE
$
30,441
$
31,395
$
33,119
$
30,161
$
29,941
(3)
2
$
94,955
$
92,768
2
LINE OF BUSINESS NET INCOME/(LOSS)
Consumer & Community Banking
$
4,341
$
5,634
$
6,728
$
4,325
$
3,871
(23)
12
$
16,703
$
3,892
329
Corporate & Investment Bank
5,562
4,985
5,740
5,349
4,309
12
29
16,287
11,745
39
Commercial Banking
1,407
1,420
1,168
2,034
1,086
(1)
30
3,995
544
NM
Asset & Wealth Management
1,194
1,153
1,244
786
876
4
36
3,591
2,206
63
Corporate
(817)
(1,244)
(580)
(358)
(699)
34
(17)
(2,641)
(1,392)
(90)
NET INCOME
$
11,687
$
11,948
$
14,300
$
12,136
$
9,443
(2)
24
$
37,935
$
16,995
123
In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(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.
Page 3
JPMORGAN CHASE & CO.
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share and ratio data)
QUARTERLY TRENDS
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
REVENUE
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
Investment banking fees
$
3,282
$
3,470
$
2,970
$
2,583
$
2,187
(5)
%
50
%
$
9,722
$
6,903
41
%
Principal transactions
3,546
4,076
6,500
3,321
4,142
(13)
(14)
14,122
14,700
(4)
Lending- and deposit-related fees
1,801
1,760
1,687
1,727
1,647
2
9
5,248
4,784
10
Asset management, administration and commissions
5,257
5,194
5,029
4,901
4,470
1
18
15,480
13,276
17
Investment securities gains/(losses)
(256)
(155)
14
70
473
(65)
NM
(397)
732
NM
Mortgage fees and related income
600
551
704
767
1,087
9
(45)
1,855
2,324
(20)
Card income
1,005
1,647
1,350
1,297
1,169
(39)
(14)
4,002
3,138
28
Other income (a)
1,332
1,195
1,123
1,411
1,067
11
25
3,650
3,454
6
Noninterest revenue
16,567
17,738
19,377
16,077
16,242
(7)
2
53,682
49,311
9
Interest income
14,480
14,094
14,271
14,550
14,700
3
(1)
42,845
49,973
(14)
Interest expense
1,400
1,353
1,382
1,292
1,687
3
(17)
4,135
8,668
(52)
Net interest income
13,080
12,741
12,889
13,258
13,013
3
1
38,710
41,305
(6)
TOTAL NET REVENUE
29,647
30,479
32,266
29,335
29,255
(3)
1
92,392
90,616
2
Provision for credit losses
(1,527)
(2,285)
(4,156)
(1,889)
611
33
NM
(7,968)
19,369
NM
NONINTEREST EXPENSE
Compensation expense
9,087
9,814
10,601
7,954
8,630
(7)
5
29,502
27,034
9
Occupancy expense
1,109
1,090
1,115
1,161
1,142
2
(3)
3,314
3,288
1
Technology, communications and equipment expense
2,473
2,488
2,519
2,606
2,564
(1)
(4)
7,480
7,732
(3)
Professional and outside services
2,523
2,385
2,203
2,259
2,178
6
16
7,111
6,205
15
Marketing
712
626
751
725
470
14
51
2,089
1,751
19
Other expense (b)
1,159
1,264
1,536
1,343
1,891
(8)
(39)
3,959
4,598
(14)
TOTAL NONINTEREST EXPENSE
17,063
17,667
18,725
16,048
16,875
(3)
1
53,455
50,608
6
Income before income tax expense
14,111
15,097
17,697
15,176
11,769
(7)
20
46,905
20,639
127
Income tax expense (a)
2,424
3,149
3,397
3,040
2,326
(23)
4
8,970
3,644
146
NET INCOME
$
11,687
$
11,948
$
14,300
$
12,136
$
9,443
(2)
24
$
37,935
$
16,995
123
NET INCOME PER COMMON SHARE DATA
Basic earnings per share
$
3.74
$
3.79
$
4.51
$
3.80
$
2.93
(1)
28
$
12.05
$
5.10
136
Diluted earnings per share
3.74
3.78
4.50
3.79
2.92
(1)
28
12.02
5.09
136
FINANCIAL RATIOS
Return on common equity (c)
18
%
18
%
23
%
19
%
15
%
20
%
9
%
Return on tangible common equity (c)(d)
22
23
29
24
19
24
11
Return on assets (c)
1.24
1.29
1.61
1.42
1.14
1.37
0.72
Effective income tax rate (a)
17.2
20.9
19.2
20.0
19.8
19.1
17.7
Overhead ratio
58
58
58
55
58
58
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 $76 million, $185 million, $28 million, $276 million and $524 million for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively, and $289 million and $839 million for the nine months ended September 30, 2021 and September 30, 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)
Sep 30, 2021
Change
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Sep 30,
2021
2021
2021
2020
2020
2021
2020
ASSETS
Cash and due from banks
$
25,857
$
26,592
$
25,397
$
24,874
$
20,816
(3)
%
24
%
Deposits with banks
734,012
678,829
685,675
502,735
466,706
8
57
Federal funds sold and securities purchased under
resale agreements
282,161
260,987
272,481
296,284
319,849
8
(12)
Securities borrowed
202,987
186,376
179,516
160,635
142,441
9
43
Trading assets:
Debt and equity instruments
447,993
454,268
(b)
475,156
(b)
427,682
(b)
433,893
(b)
(1)
3
Derivative receivables
67,908
66,320
(b)
68,896
(b)
75,444
(b)
71,929
(b)
2
(6)
Available-for-sale (“AFS”) securities
251,590
232,161
379,942
388,178
389,583
8
(35)
Held-to-maturity (”HTM”) securities, net of allowance for credit losses
343,542
341,476
217,452
201,821
141,553
1
143
Investment securities, net of allowance for credit losses
595,132
573,637
597,394
589,999
531,136
4
12
Loans
1,044,615
1,040,954
1,011,307
1,012,853
989,740
—
6
Less: Allowance for loan losses
18,150
19,500
23,001
28,328
30,814
(7)
(41)
Loans, net of allowance for loan losses
1,026,465
1,021,454
988,306
984,525
958,926
—
7
Accrued interest and accounts receivable
116,395
125,253
114,754
90,503
76,945
(7)
51
Premises and equipment
26,996
26,631
26,926
27,109
26,672
1
1
Goodwill, MSRs and other intangible assets
56,566
54,655
54,588
53,428
51,594
3
10
Other assets (a)
175,104
209,254
200,247
151,539
144,154
(16)
21
TOTAL ASSETS
$
3,757,576
$
3,684,256
$
3,689,336
$
3,384,757
$
3,245,061
2
16
LIABILITIES
Deposits
$
2,402,353
$
2,305,217
$
2,278,112
$
2,144,257
$
2,001,416
4
20
Federal funds purchased and securities loaned or sold
under repurchase agreements
254,920
245,437
304,019
215,209
236,440
4
8
Short-term borrowings
50,393
51,938
54,978
45,208
41,992
(3)
20
Trading liabilities:
Debt and equity instruments
126,058
127,822
130,909
99,558
104,835
(1)
20
Derivative payables
53,485
56,045
60,440
70,623
57,658
(5)
(7)
Accounts payable and other liabilities (a)
268,604
297,082
285,066
231,285
233,241
(10)
15
Beneficial interests issued by consolidated VIEs
13,257
14,403
15,671
17,578
19,191
(8)
(31)
Long-term debt
298,465
299,926
279,427
281,685
279,175
—
7
TOTAL LIABILITIES
3,467,535
3,397,870
3,408,622
3,105,403
2,973,948
2
17
STOCKHOLDERS’ EQUITY
Preferred stock
34,838
32,838
31,563
30,063
30,063
6
16
Common stock
4,105
4,105
4,105
4,105
4,105
—
—
Additional paid-in capital
88,357
88,194
88,005
88,394
88,289
—
—
Retained earnings
265,276
256,983
248,151
236,990
228,014
3
16
Accumulated other comprehensive income/(loss)
963
2,570
1,041
7,986
8,940
(63)
(89)
Shares held in RSU Trust, at cost
—
—
—
—
(11)
—
NM
Treasury stock, at cost
(103,498)
(98,304)
(92,151)
(88,184)
(88,287)
(5)
(17)
TOTAL STOCKHOLDERS’ EQUITY
290,041
286,386
280,714
279,354
271,113
1
7
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
3,757,576
$
3,684,256
$
3,689,336
$
3,384,757
$
3,245,061
2
16
(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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
AVERAGE BALANCES
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
ASSETS
Deposits with banks
$
756,653
$
721,214
$
631,606
$
507,194
$
509,979
5
%
48
%
$
703,616
$
422,860
66
%
Federal funds sold and securities purchased under resale agreements
262,679
255,831
289,763
327,504
277,899
3
(5)
269,324
258,607
4
Securities borrowed
189,418
190,785
175,019
149,146
147,184
(1)
29
185,127
141,567
31
Trading assets - debt instruments
275,860
277,024
322,648
319,585
322,321
—
(14)
291,673
324,061
(10)
Investment securities
565,344
585,084
582,460
568,354
548,544
(3)
3
577,566
490,322
18
Loans
1,042,591
1,024,633
1,013,524
996,367
991,241
2
5
1,027,023
1,007,360
2
All other interest-earning assets (a)
127,241
122,624
111,549
87,496
77,806
4
64
120,529
75,859
59
Total interest-earning assets
3,219,786
3,177,195
3,126,569
2,955,646
2,874,974
1
12
3,174,858
2,720,636
17
Trading assets - equity and other instruments
177,315
199,288
(h)
164,010
(h)
143,056
(h)
124,266
(h)
(11)
43
180,253
113,431
(h)
59
Trading assets - derivative receivables
65,574
70,212
(h)
74,730
(h)
74,721
(h)
76,939
(h)
(7)
(15)
70,139
73,423
(h)
(4)
All other noninterest-earning assets (b)
262,544
281,992
247,532
225,290
212,939
(7)
23
264,077
228,660
15
TOTAL ASSETS
$
3,725,219
$
3,728,687
$
3,612,841
$
3,398,713
$
3,289,118
—
13
$
3,689,327
$
3,136,150
18
LIABILITIES
Interest-bearing deposits
$
1,696,850
$
1,669,376
$
1,610,467
$
1,529,066
$
1,434,034
2
18
$
1,659,214
$
1,342,270
24
Federal funds purchased and securities loaned or
sold under repurchase agreements
240,912
261,343
301,386
247,276
253,779
(8)
(5)
267,659
258,156
4
Short-term borrowings (c)
43,759
46,185
42,031
36,183
36,697
(5)
19
43,998
39,749
11
Trading liabilities - debt and all other interest-bearing liabilities (d)
241,297
246,666
230,922
213,989
206,643
(2)
17
239,666
202,322
18
Beneficial interests issued by consolidated VIEs
14,232
15,117
17,185
18,647
19,838
(6)
(28)
15,501
19,407
(20)
Long-term debt
257,593
248,552
239,398
237,144
267,175
4
(4)
248,581
260,194
(4)
Total interest-bearing liabilities
2,494,643
2,487,239
2,441,389
2,282,305
2,218,166
—
12
2,474,619
2,122,098
17
Noninterest-bearing deposits
672,609
654,419
614,165
582,517
551,565
3
22
647,278
495,704
31
Trading liabilities - equity and other instruments
35,505
35,397
35,029
33,732
32,256
—
10
35,312
32,258
9
Trading liabilities - derivative payables
55,907
62,533
67,960
63,551
64,599
(11)
(13)
62,089
60,936
2
All other noninterest-bearing liabilities (b)
178,770
205,584
178,444
164,873
155,672
(13)
15
187,601
160,059
17
TOTAL LIABILITIES
3,437,434
3,445,172
3,336,987
3,126,978
3,022,258
—
14
3,406,899
2,871,055
19
Preferred stock
34,229
32,666
30,312
30,063
30,063
5
14
32,417
29,844
9
Common stockholders’ equity
253,556
250,849
245,542
241,672
236,797
1
7
250,011
235,251
6
TOTAL STOCKHOLDERS’ EQUITY
287,785
283,515
275,854
271,735
266,860
2
8
282,428
265,095
7
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
3,725,219
$
3,728,687
$
3,612,841
$
3,398,713
$
3,289,118
—
13
$
3,689,327
$
3,136,150
18
AVERAGE RATES (e)
INTEREST-EARNING ASSETS
Deposits with banks
0.09
%
0.06
%
0.04
%
0.03
%
0.05
%
0.06
%
0.22
%
Federal funds sold and securities purchased under resale agreements
0.35
0.27
0.33
0.41
0.57
0.32
1.08
Securities borrowed (f)
(0.15)
(0.19)
(0.18)
(0.40)
(0.35)
(0.17)
(0.14)
Trading assets - debt instruments
2.43
2.49
2.25
2.32
2.29
2.38
2.48
Investment securities
1.32
1.31
1.36
1.39
1.58
1.33
1.99
Loans
3.99
3.98
4.09
4.14
4.11
4.02
4.44
All other interest-earning assets (a)
0.64
0.66
0.72
0.89
0.94
0.67
1.46
Total interest-earning assets
1.80
1.79
1.87
1.97
2.05
1.82
2.47
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
0.03
0.03
0.04
0.05
0.07
0.03
0.22
Federal funds purchased and securities loaned or
sold under repurchase agreements
0.20
0.09
0.02
0.06
0.17
0.10
0.53
Short-term borrowings (c)
0.26
0.30
0.31
0.40
0.65
0.29
1.13
Trading liabilities - debt and all other interest-bearing liabilities (d)(f)
0.09
0.08
0.05
(0.15)
(0.10)
0.07
0.18
Beneficial interests issued by consolidated VIEs
0.50
0.55
0.64
0.65
0.71
0.57
1.27
Long-term debt
1.62
1.70
1.92
1.82
1.93
1.74
2.40
Total interest-bearing liabilities
0.22
0.22
0.23
0.23
0.30
0.22
0.55
INTEREST RATE SPREAD
1.58
%
1.57
%
1.64
%
1.74
%
1.75
%
1.60
%
1.92
%
NET YIELD ON INTEREST-EARNING ASSETS
1.62
%
1.62
%
1.69
%
1.80
%
1.82
%
1.64
%
2.04
%
Memo: Net yield on interest-earning assets excluding CIB Markets (g)
1.91
%
1.90
%
1.93
%
2.01
%
2.05
%
1.92
%
2.41
%
(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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
OTHER INCOME
Other income - reported (a)
$
1,332
$
1,195
$
1,123
$
1,411
$
1,067
11
%
25
%
$
3,650
$
3,454
6
%
Fully taxable-equivalent adjustments (a)(b)
690
807
744
729
582
(14)
19
2,241
1,831
22
Other income - managed
$
2,022
$
2,002
$
1,867
$
2,140
$
1,649
1
23
$
5,891
$
5,285
11
TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported
$
16,567
$
17,738
$
19,377
$
16,077
$
16,242
(7)
2
$
53,682
$
49,311
9
Fully taxable-equivalent adjustments
690
807
744
729
582
(14)
19
2,241
1,831
22
Total noninterest revenue - managed
$
17,257
$
18,545
$
20,121
$
16,806
$
16,824
(7)
3
$
55,923
$
51,142
9
NET INTEREST INCOME
Net interest income - reported
$
13,080
$
12,741
$
12,889
$
13,258
$
13,013
3
1
$
38,710
$
41,305
(6)
Fully taxable-equivalent adjustments (b)
104
109
109
97
104
(5)
—
322
321
—
Net interest income - managed
$
13,184
$
12,850
$
12,998
$
13,355
$
13,117
3
1
$
39,032
$
41,626
(6)
TOTAL NET REVENUE
Total net revenue - reported
$
29,647
$
30,479
$
32,266
$
29,335
$
29,255
(3)
1
$
92,392
$
90,616
2
Fully taxable-equivalent adjustments
794
916
853
826
686
(13)
16
2,563
2,152
19
Total net revenue - managed
$
30,441
$
31,395
$
33,119
$
30,161
$
29,941
(3)
2
$
94,955
$
92,768
2
PRE-PROVISION PROFIT
Pre-provision profit - reported
$
12,584
$
12,812
$
13,541
$
13,287
$
12,380
(2)
2
$
38,937
$
40,008
(3)
Fully taxable-equivalent adjustments
794
916
853
826
686
(13)
16
2,563
2,152
19
Pre-provision profit - managed
$
13,378
$
13,728
$
14,394
$
14,113
$
13,066
(3)
2
$
41,500
$
42,160
(2)
INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported
$
14,111
$
15,097
$
17,697
$
15,176
$
11,769
(7)
20
$
46,905
$
20,639
127
Fully taxable-equivalent adjustments
794
916
853
826
686
(13)
16
2,563
2,152
19
Income before income tax expense - managed
$
14,905
$
16,013
$
18,550
$
16,002
$
12,455
(7)
20
$
49,468
$
22,791
117
INCOME TAX EXPENSE
Income tax expense - reported (a)
$
2,424
$
3,149
$
3,397
$
3,040
$
2,326
(23)
4
$
8,970
$
3,644
146
Fully taxable-equivalent adjustments (a)(b)
794
916
853
826
686
(13)
16
2,563
2,152
19
Income tax expense - managed
$
3,218
$
4,065
$
4,250
$
3,866
$
3,012
(21)
7
$
11,533
$
5,796
99
OVERHEAD RATIO
Overhead ratio - reported
58
%
58
%
58
%
55
%
58
%
58
%
56
%
Overhead ratio - managed
56
56
57
53
56
56
55
(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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking
$
12,521
$
12,760
$
12,517
$
12,728
$
12,895
(2)
%
(3)
%
$
37,798
$
38,540
(2)
%
Corporate & Investment Bank
12,396
13,214
14,605
11,352
11,546
(6)
7
40,215
37,932
6
Commercial Banking
2,520
2,483
2,393
2,463
2,285
1
10
7,396
6,850
8
Asset & Wealth Management
4,300
4,107
4,077
3,867
3,554
5
21
12,484
10,373
20
Corporate
(1,296)
(1,169)
(473)
(249)
(339)
(11)
(282)
(2,938)
(927)
(217)
TOTAL NET REVENUE
$
30,441
$
31,395
$
33,119
$
30,161
$
29,941
(3)
2
$
94,955
$
92,768
2
TOTAL NONINTEREST EXPENSE
Consumer & Community Banking
$
7,238
$
7,062
$
7,202
$
7,042
$
6,912
2
5
$
21,502
$
20,948
3
Corporate & Investment Bank
5,871
6,523
7,104
4,939
5,832
(10)
1
19,498
18,599
5
Commercial Banking
1,032
981
969
950
969
5
7
2,982
2,848
5
Asset & Wealth Management
2,762
2,586
2,574
2,756
2,443
7
13
7,922
7,201
10
Corporate
160
515
876
361
719
(69)
(78)
1,551
1,012
53
TOTAL NONINTEREST EXPENSE
$
17,063
$
17,667
$
18,725
$
16,048
$
16,875
(3)
1
$
53,455
$
50,608
6
PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking
$
5,283
$
5,698
$
5,315
$
5,686
$
5,983
(7)
(12)
$
16,296
$
17,592
(7)
Corporate & Investment Bank
6,525
6,691
7,501
6,413
5,714
(2)
14
20,717
19,333
7
Commercial Banking
1,488
1,502
1,424
1,513
1,316
(1)
13
4,414
4,002
10
Asset & Wealth Management
1,538
1,521
1,503
1,111
1,111
1
38
4,562
3,172
44
Corporate
(1,456)
(1,684)
(1,349)
(610)
(1,058)
14
(38)
(4,489)
(1,939)
(132)
PRE-PROVISION PROFIT
$
13,378
$
13,728
$
14,394
$
14,113
$
13,066
(3)
2
$
41,500
$
42,160
(2)
PROVISION FOR CREDIT LOSSES
Consumer & Community Banking
$
(459)
$
(1,868)
$
(3,602)
$
(83)
$
795
75
NM
$
(5,929)
$
12,395
NM
Corporate & Investment Bank
(638)
(79)
(331)
(581)
(81)
NM
NM
(1,048)
3,307
NM
Commercial Banking
(363)
(377)
(118)
(1,181)
(147)
4
(147)
(858)
3,294
NM
Asset & Wealth Management
(60)
(10)
(121)
(2)
(52)
(500)
(15)
(191)
265
NM
Corporate
(7)
49
16
(42)
96
NM
NM
58
108
(46)
PROVISION FOR CREDIT LOSSES
$
(1,527)
$
(2,285)
$
(4,156)
$
(1,889)
$
611
33
NM
$
(7,968)
$
19,369
NM
NET INCOME/(LOSS)
Consumer & Community Banking
$
4,341
$
5,634
$
6,728
$
4,325
$
3,871
(23)
12
$
16,703
$
3,892
329
Corporate & Investment Bank
5,562
4,985
5,740
5,349
4,309
12
29
16,287
11,745
39
Commercial Banking
1,407
1,420
1,168
2,034
1,086
(1)
30
3,995
544
NM
Asset & Wealth Management
1,194
1,153
1,244
786
876
4
36
3,591
2,206
63
Corporate
(817)
(1,244)
(580)
(358)
(699)
34
(17)
(2,641)
(1,392)
(90)
TOTAL NET INCOME
$
11,687
$
11,948
$
14,300
$
12,136
$
9,443
(2)
24
$
37,935
$
16,995
123
In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
Page 8
JPMORGAN CHASE & CO.
CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS
(in millions, except ratio data)
Sep 30, 2021
Change
NINE MONTHS ENDED SEPTEMBER 30,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Sep 30,
2021 Change
2021
2021
2021
2020
2020
2021
2020
2021
2020
2020
CAPITAL (a)
Risk-based capital metrics
Standardized
CET1 capital
$
209,933
(e)
$
209,010
$
206,078
$
205,078
$
197,719
—
%
6
%
Tier 1 capital
244,240
(e)
241,356
237,333
234,844
227,486
1
7
Total capital
275,027
(e)
274,443
271,407
269,923
262,397
—
5
Risk-weighted assets
1,627,726
(e)
1,601,631
1,577,007
1,560,609
1,514,509
2
7
CET1 capital ratio
12.9
%
(e)
13.0
%
13.1
%
13.1
%
13.1
%
Tier 1 capital ratio
15.0
(e)
15.1
15.0
15.0
15.0
Total capital ratio
16.9
(e)
17.1
17.2
17.3
17.3
Advanced
CET1 capital
$
209,933
(e)
$
209,010
$
206,078
$
205,078
$
197,719
—
6
Tier 1 capital
244,240
(e)
241,356
237,333
234,844
227,486
1
7
Total capital
264,510
(e)
262,364
258,635
257,228
249,947
1
6
Risk-weighted assets
1,547,554
(e)
1,514,386
1,503,828
1,484,431
1,429,334
2
8
CET1 capital ratio
13.6
%
(e)
13.8
%
13.7
%
13.8
%
13.8
%
Tier 1 capital ratio
15.8
(e)
15.9
15.8
15.8
15.9
Total capital ratio
17.1
(e)
17.3
17.2
17.3
17.5
Leverage-based capital metrics
Adjusted average assets (b)
$
3,675,837
(e)
$
3,680,830
$
3,565,545
$
3,353,319
$
3,243,290
—
13
Tier 1 leverage ratio
6.6
%
(e)
6.6
%
6.7
%
7.0
%
7.0
%
Total leverage exposure
4,464,358
(e)
4,456,557
3,522,629
3,401,542
3,247,392
—
37
SLR
5.5
%
(e)
5.4
%
6.7
%
6.9
%
7.0
%
TANGIBLE COMMON EQUITY (period-end) (c)
Common stockholders’ equity
$
255,203
$
253,548
$
249,151
$
249,291
$
241,050
1
6
Less: Goodwill
50,313
49,256
49,243
49,248
47,819
2
5
Less: Other intangible assets
902
850
875
904
759
6
19
Add: Certain deferred tax liabilities (d)
2,500
2,461
2,457
2,453
2,405
2
4
Total tangible common equity
$
206,488
$
205,903
$
201,490
$
201,592
$
194,877
—
6
TANGIBLE COMMON EQUITY (average) (c)
Common stockholders’ equity
$
253,556
$
250,849
$
245,542
$
241,672
$
236,797
1
7
$
250,011
$
235,251
6
%
Less: Goodwill
49,457
49,260
49,249
47,842
47,820
—
3
49,323
47,812
3
Less: Other intangible assets
849
864
891
752
769
(2)
10
868
791
10
Add: Certain deferred tax liabilities (d)
2,480
2,459
2,455
2,416
2,401
1
3
2,465
2,393
3
Total tangible common equity
$
205,730
$
203,184
$
197,857
$
195,494
$
190,609
1
8
$
202,285
$
189,041
7
INTANGIBLE ASSETS (period-end)
Goodwill
$
50,313
$
49,256
$
49,243
$
49,248
$
47,819
2
5
Mortgage servicing rights
5,351
4,549
4,470
3,276
3,016
18
77
Other intangible assets
902
850
875
904
759
6
19
Total intangible assets
$
56,566
$
54,655
$
54,588
$
53,428
$
51,594
3
10
(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. For the periods ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $3.3 billion, $3.8 billion, $4.5 billion, $5.7 billion and $6.4 billion, respectively. The SLR prior to the periods ended June 30, 2021 reflects 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 45-50 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
EARNINGS PER SHARE
Basic earnings per share
Net income
$
11,687
$
11,948
$
14,300
$
12,136
$
9,443
(2)
%
24
%
$
37,935
$
16,995
123
%
Less: Preferred stock dividends
402
393
379
380
381
2
6
1,174
1,203
(2)
Net income applicable to common equity
11,285
11,555
13,921
11,756
9,062
(2)
25
36,761
15,792
133
Less: Dividends and undistributed earnings allocated to
participating securities
56
59
70
57
47
(5)
19
185
80
131
Net income applicable to common stockholders
$
11,229
$
11,496
$
13,851
$
11,699
$
9,015
(2)
25
$
36,576
$
15,712
133
Total weighted-average basic shares outstanding
2,999.9
3,036.6
3,073.5
3,079.7
3,077.8
(1)
(3)
3,036.4
3,083.3
(2)
Net income per share
$
3.74
$
3.79
$
4.51
$
3.80
$
2.93
(1)
28
$
12.05
$
5.10
136
Diluted earnings per share
Net income applicable to common stockholders
$
11,229
$
11,496
$
13,851
$
11,699
$
9,015
(2)
25
$
36,576
$
15,712
133
Total weighted-average basic shares outstanding
2,999.9
3,036.6
3,073.5
3,079.7
3,077.8
(1)
(3)
3,036.4
3,083.3
(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”)
5.2
5.3
5.4
5.4
5.0
(2)
4
5.3
4.8
10
Total weighted-average diluted shares outstanding
3,005.1
3,041.9
3,078.9
3,085.1
3,082.8
(1)
(3)
3,041.7
3,088.1
(2)
Net income per share
$
3.74
$
3.78
$
4.50
$
3.79
$
2.92
(1)
28
$
12.02
$
5.09
136
COMMON DIVIDENDS
Cash dividends declared per share
$
1.00
(c)
$
0.90
$
0.90
$
0.90
$
0.90
11
11
$
2.80
$
2.70
4
Dividend payout ratio
27
%
24
%
20
%
24
%
31
%
23
%
53
%
COMMON SHARE REPURCHASE PROGRAM (a)
Total shares of common stock repurchased
33.4
39.5
34.7
—
—
(15)
NM
107.6
50.0
115
Average price paid per share of common stock
$
156.87
$
156.83
$
144.25
$
—
$
—
—
NM
$
152.79
$
127.92
19
Aggregate repurchases of common stock
5,240
6,201
4,999
—
—
(15)
NM
16,440
6,397
157
EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans
0.5
0.6
12.3
1.5
0.6
(17)
(17)
13.4
14.4
(7)
Net impact of employee issuances on stockholders’ equity (b)
$
271
$
276
$
667
$
217
$
263
(2)
3
$
1,214
$
986
23
(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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees
$
786
$
753
$
742
$
806
$
771
4
%
2
%
$
2,281
$
2,360
(3)
%
Asset management, administration and commissions
893
866
805
735
703
3
27
2,564
2,045
25
Mortgage fees and related income
596
548
703
766
1,076
9
(45)
1,847
2,313
(20)
Card income
651
1,238
999
923
826
(47)
(21)
2,888
2,145
35
All other income
1,212
1,321
1,339
1,328
1,487
(8)
(18)
3,872
4,319
(10)
Noninterest revenue
4,138
4,726
4,588
4,558
4,863
(12)
(15)
13,452
13,182
2
Net interest income
8,383
8,034
7,929
8,170
8,032
4
4
24,346
25,358
(4)
TOTAL NET REVENUE
12,521
12,760
12,517
12,728
12,895
(2)
(3)
37,798
38,540
(2)
Provision for credit losses
(459)
(1,868)
(3,602)
(83)
795
75
NM
(5,929)
12,395
NM
NONINTEREST EXPENSE
Compensation expense
3,012
2,977
2,976
2,734
2,804
1
7
8,965
8,280
8
Noncompensation expense (a)
4,226
4,085
4,226
4,308
4,108
3
3
12,537
12,668
(1)
TOTAL NONINTEREST EXPENSE
7,238
7,062
7,202
7,042
6,912
2
5
21,502
20,948
3
Income/(loss) before income tax expense/(benefit)
5,742
7,566
8,917
5,769
5,188
(24)
11
22,225
5,197
328
Income tax expense/(benefit)
1,401
1,932
2,189
1,444
1,317
(27)
6
5,522
1,305
323
NET INCOME/(LOSS)
$
4,341
$
5,634
$
6,728
$
4,325
$
3,871
(23)
12
$
16,703
$
3,892
329
REVENUE BY LINE OF BUSINESS
Consumer & Business Banking
$
6,157
$
6,016
$
5,635
$
5,744
$
5,697
2
8
$
17,808
$
17,211
3
Home Lending
1,400
1,349
1,458
1,456
1,714
4
(18)
4,207
4,562
(8)
Card & Auto
4,964
5,395
5,424
5,528
5,484
(8)
(9)
15,783
16,767
(6)
MORTGAGE FEES AND RELATED INCOME DETAILS
Production revenue
614
517
757
803
765
19
(20)
1,888
1,826
3
Net mortgage servicing revenue (b)
(18)
31
(54)
(37)
311
NM
NM
(41)
487
NM
Mortgage fees and related income
$
596
$
548
$
703
$
766
$
1,076
9
(45)
$
1,847
$
2,313
(20)
FINANCIAL RATIOS
ROE
34
%
44
%
54
%
32
%
29
%
44
%
9
%
Overhead ratio
58
55
58
55
54
57
54
In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(a)Included depreciation expense on leased assets of $769 million, $856 million, $916 million, $975 million and $1.0 billion for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively, and $2.5 billion and $3.2 billion for the nine months ended September 30, 2021 and 2020, respectively.
(b)Included MSR risk management results of $(145) million, $(103) million, $(115) million, $(152) million and $145 million for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively, and $(363) million and $134 million for the nine months ended September 30, 2021 and 2020, respectively.
Page 11
JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount data)
QUARTERLY TRENDS
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
493,169
$
494,305
$
487,978
$
496,705
(d)
$
487,063
(d)
—
%
1
%
$
493,169
$
487,063
(d)
1
%
Loans:
Consumer & Business Banking (a)
40,659
46,228
52,654
48,810
49,646
(12)
(18)
40,659
49,646
(18)
Home Lending (b)
179,489
179,371
178,776
182,121
188,561
—
(5)
179,489
188,561
(5)
Card
143,166
141,802
132,493
144,216
140,377
1
2
143,166
140,377
2
Auto
68,391
67,598
67,662
66,432
62,304
1
10
68,391
62,304
10
Total loans
431,705
434,999
431,585
441,579
440,888
(1)
(2)
431,705
440,888
(2)
Deposits
1,093,852
1,056,507
1,037,903
958,706
909,198
4
20
1,093,852
909,198
20
Equity
50,000
50,000
50,000
52,000
52,000
—
(4)
50,000
52,000
(4)
SELECTED BALANCE SHEET DATA (average)
Total assets
$
491,512
$
485,209
$
484,524
$
486,272
(d)
$
490,094
(d)
1
—
$
487,107
$
506,726
(d)
(4)
Loans:
Consumer & Business Banking
43,256
49,356
49,868
49,506
49,596
(12)
(13)
47,469
40,901
16
Home Lending (c)
181,150
177,444
182,247
185,733
192,172
2
(6)
180,276
200,980
(10)
Card
141,950
136,149
134,884
141,236
140,386
4
1
137,687
148,445
(7)
Auto
67,785
67,183
66,960
64,342
60,345
1
12
67,313
60,514
11
Total loans
434,141
430,132
433,959
440,817
442,499
1
(2)
432,745
450,840
(4)
Deposits
1,076,323
1,047,771
979,686
928,518
895,535
3
20
1,034,947
825,493
25
Equity
50,000
50,000
50,000
52,000
52,000
—
(4)
50,000
52,000
(4)
Headcount
126,586
125,300
126,084
122,894
122,905
1
3
126,586
122,905
3
In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(a)At September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020 included $11.1 billion, $16.7 billion, $23.4 billion, $19.2 billion and $20.3 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 September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, Home Lending loans held-for-sale and loans at fair value were $14.5 billion, $16.5 billion, $13.2 billion, $9.7 billion and $10.0 billion, respectively.
(c)Average Home Lending loans held-for sale and loans at fair value were $17.1 billion, $14.2 billion, $12.5 billion, $10.7 billion and $9.2 billion for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively, and $14.6 billion and $11.2 billion for the nine months ended September 30, 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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a) (b)
$
5,000
$
5,256
$
5,507
(f)
$
5,492
(f)
$
5,144
(f)
(5)
%
(3)
%
$
5,000
$
5,144
(f)
(3)
%
Net charge-offs/(recoveries)
Consumer & Business Banking
66
72
65
75
54
(8)
22
203
188
8
Home Lending
(74)
(79)
(51)
(50)
8
6
NM
(204)
(119)
(71)
Card
495
755
983
767
1,028
(34)
(52)
2,233
3,519
(37)
Auto
4
(16)
26
25
5
NM
(20)
14
98
(86)
Total net charge-offs/(recoveries)
$
491
$
732
$
1,023
$
817
$
1,095
(33)
(55)
$
2,246
$
3,686
(39)
Net charge-off/(recovery) rate
Consumer & Business Banking (c)
0.61
%
0.59
%
0.53
%
0.60
%
0.43
%
0.57
%
0.61
%
Home Lending
(0.18)
(0.19)
(0.12)
(0.11)
0.02
(0.16)
(0.08)
Card
1.39
2.24
2.97
2.17
2.92
2.18
3.17
Auto
0.02
(0.10)
0.16
0.15
0.03
0.03
0.22
Total net charge-off/(recovery) rate
0.47
0.71
0.99
0.76
1.01
0.72
1.12
30+ day delinquency rate (d)
Home Lending (e)
1.06
%
1.08
%
1.07
%
1.15
%
1.62
%
1.06
%
1.62
%
Card
1.00
1.01
1.40
1.68
1.57
1.00
1.57
Auto
0.46
0.42
0.42
0.69
0.54
0.46
0.54
90+ day delinquency rate - Card (d)
0.49
0.54
0.80
0.92
0.69
0.49
0.69
Allowance for loan losses
Consumer & Business Banking
$
797
$
897
$
1,022
$
1,372
$
1,372
(11)
(42)
$
797
$
1,372
(42)
Home Lending
630
630
1,238
1,813
2,685
—
(77)
630
2,685
(77)
Card
11,650
12,500
14,300
17,800
17,800
(7)
(35)
11,650
17,800
(35)
Auto
813
817
892
1,042
1,044
—
(22)
813
1,044
(22)
Total allowance for loan losses
$
13,890
$
14,844
$
17,452
$
22,027
$
22,901
(6)
(39)
$
13,890
$
22,901
(39)
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(a)At September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $355 million, $397 million, $458 million, $558 million and $851 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.
(b)Generally excludes loans that were under payment deferral programs offered in response to the COVID-19 pandemic. Beginning in the third quarter of 2020, 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.
(c)At September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020 included $11.1 billion, $16.7 billion, $23.4 billion, $19.2 billion and $20.3 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.
(d)At September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, the principal balance of loans under payment deferral programs offered in response to the COVID-19 pandemic were as follows: (1) $3.1 billion, $5.2 billion, $8.1 billion, $9.1 billion and $10.2 billion in Home Lending, respectively; (2) $53 million, $55 million, $105 million, $264 million and $368 million in Card, respectively; and (3) $112 million, $89 million, $127 million, $376 million and $411 million in Auto, respectively. Loans that are performing according to their modified terms are generally not considered delinquent.
(e)At September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, excluded mortgage loans 30 or more days past due and insured by U.S. government agencies of $432 million, $483 million, $557 million, $744 million and $1.1 billion, 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.
(f)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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
BUSINESS METRICS
Number of:
Branches
4,854
4,869
4,872
4,908
4,960
—
%
(2)
%
4,854
4,960
(2)
%
Active digital customers (in thousands) (a)
57,961
56,915
56,671
55,274
54,779
2
6
57,961
54,779
6
Active mobile customers (in thousands) (b)
44,333
42,896
41,872
40,899
40,164
3
10
44,333
40,164
10
Debit and credit card sales volume (in billions)
$
349.9
$
344.3
$
290.3
$
299.4
$
278.2
2
26
$
984.5
$
781.8
26
Consumer & Business Banking
Average deposits
$
1,056,254
$
1,028,459
$
960,662
$
907,884
$
874,325
3
21
$
1,015,475
$
807,218
26
Deposit margin
1.29
%
1.28
%
1.29
%
1.41
%
1.43
%
1.29
%
1.64
%
Business banking origination volume (c)
$
835
$
2,180
$
10,035
$
722
$
1,352
(62)
(38)
$
13,050
$
25,885
(50)
Client investment assets (d)
681,491
673,675
636,962
590,206
(g)
529,196
1
29
681,491
529,196
29
Number of client advisors
4,689
4,571
4,500
4,417
4,290
3
9
4,689
4,290
9
Home Lending (in billions)
Mortgage origination volume by channel
Retail
$
23.7
$
22.7
$
23.0
$
20.1
$
20.7
4
14
$
69.4
$
52.8
31
Correspondent
17.9
16.9
16.3
12.4
8.3
6
116
51.1
28.5
79
Total mortgage origination volume (e)
$
41.6
$
39.6
$
39.3
$
32.5
$
29.0
5
43
$
120.5
$
81.3
48
Third-party mortgage loans serviced (period-end)
509.3
463.9
443.2
447.3
454.8
10
12
509.3
454.8
12
MSR carrying value (period-end)
5.3
4.5
4.5
3.3
3.0
18
77
5.3
3.0
77
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)
1.04
%
0.97
%
1.02
%
0.74
%
0.66
%
1.04
%
0.66
%
MSR revenue multiple (f)
3.85
x
3.59
x
3.78
x
2.64
x
2.28
x
3.85
x
2.28
x
Credit Card
Credit card sales volume, excluding Commercial Card (in billions)
$
232.0
$
223.7
$
183.7
$
197.0
$
178.1
4
30
639.4
505.7
26
Net revenue rate
9.74
%
11.32
%
11.53
%
11.22
%
10.96
%
10.84
%
10.82
%
Auto
Loan and lease origination volume (in billions)
$
11.5
$
12.4
$
11.2
$
11.0
$
11.4
(7)
1
$
35.1
$
27.4
28
Average auto operating lease assets
18,753
19,608
20,300
20,810
21,684
(4)
(14)
19,548
22,445
(13)
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(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)Included $1.3 billion, $9.3 billion and $396 million of origination volume under the PPP for the three months ended June 30, 2021, March 31, 2021 and September 30, 2020, respectively, and $10.6 billion and $21.9 billion for the nine months ended September 30, 2021 and 2020, respectively. There were no originations under the PPP for the three months ended 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.
(d)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.
(e)Firmwide mortgage origination volume was $46.1 billion, $44.9 billion, $43.2 billion, $37.0 billion and $36.2 billion for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively, and $134.2 billion and $96.4 billion for the nine months ended September 30, 2021 and 2020, respectively.
(f)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).
(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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
INCOME STATEMENT
REVENUE
Investment banking fees
$
3,297
$
3,572
$
2,988
$
2,558
$
2,165
(8)
%
52
%
$
9,857
$
6,919
42
%
Principal transactions
3,577
4,026
6,045
2,982
3,990
(11)
(10)
13,648
14,578
(6)
Lending- and deposit-related fees
634
633
593
574
546
—
16
1,860
1,496
24
Asset management, administration and commissions
1,240
1,246
1,286
1,226
1,086
—
14
3,772
3,495
8
All other income
313
435
176
462
331
(28)
(5)
924
830
11
Noninterest revenue
9,061
9,912
11,088
7,802
8,118
(9)
12
30,061
27,318
10
Net interest income
3,335
3,302
3,517
3,550
3,428
1
(3)
10,154
10,614
(4)
TOTAL NET REVENUE (a)
12,396
13,214
14,605
11,352
11,546
(6)
7
40,215
37,932
6
Provision for credit losses
(638)
(79)
(331)
(581)
(81)
NM
NM
(1,048)
3,307
NM
NONINTEREST EXPENSE
Compensation expense
2,827
3,582
4,329
1,958
2,651
(21)
7
10,738
9,654
11
Noncompensation expense
3,044
2,941
2,775
2,981
3,181
4
(4)
8,760
8,945
(2)
TOTAL NONINTEREST EXPENSE
5,871
6,523
7,104
4,939
5,832
(10)
1
19,498
18,599
5
Income before income tax expense
7,163
6,770
7,832
6,994
5,795
6
24
21,765
16,026
36
Income tax expense
1,601
1,785
2,092
1,645
1,486
(10)
8
5,478
4,281
28
NET INCOME
$
5,562
$
4,985
$
5,740
$
5,349
$
4,309
12
29
$
16,287
$
11,745
39
FINANCIAL RATIOS
ROE
26
%
23
%
27
%
26
%
21
%
25
%
19
%
Overhead ratio
47
49
49
44
51
48
49
Compensation expense as percentage of total net revenue
23
27
30
17
23
27
25
REVENUE BY BUSINESS
Investment Banking
$
3,025
$
3,424
$
2,851
$
2,497
$
2,087
(12)
45
$
9,300
$
6,374
46
Wholesale Payments
1,624
1,453
1,392
1,427
1,332
12
22
4,469
4,133
8
Lending
244
229
265
193
333
7
(27)
738
953
(23)
Total Banking
4,893
5,106
4,508
4,117
3,752
(4)
30
14,507
11,460
27
Fixed Income Markets
3,672
4,098
5,761
3,950
4,597
(10)
(20)
13,531
16,928
(20)
Equity Markets
2,597
2,689
3,289
1,989
1,999
(3)
30
8,575
6,616
30
Securities Services
1,126
1,088
1,050
1,053
1,029
3
9
3,264
3,200
2
Credit Adjustments & Other (b)
108
233
(3)
243
169
(54)
(36)
338
(272)
NM
Total Markets & Securities Services
7,503
8,108
10,097
7,235
7,794
(7)
(4)
25,708
26,472
(3)
TOTAL NET REVENUE
$
12,396
$
13,214
$
14,605
$
11,352
$
11,546
(6)
7
$
40,215
$
37,932
6
In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(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 $641 million, $763 million, $703 million, $655 million and $533 million for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively, and $2.1 billion and $1.7 billion for the nine months ended September 30, 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)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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
SELECTED BALANCE SHEET DATA (period-end)
Total assets (a)
$
1,355,752
$
1,363,992
$
1,355,123
$
1,095,926
$
1,088,282
(1)
%
25
%
$
1,355,752
$
1,088,282
25
%
Loans:
Loans retained (b)
151,211
144,764
134,134
133,296
126,841
4
19
151,211
126,841
19
Loans held-for-sale and loans at fair value (c)
52,436
56,668
45,846
39,588
33,046
(7)
59
52,436
33,046
59
Total loans
203,647
201,432
179,980
172,884
159,887
1
27
203,647
159,887
27
Equity
83,000
83,000
83,000
80,000
80,000
—
4
83,000
80,000
4
SELECTED BALANCE SHEET DATA (average)
Total assets (a)
$
1,331,240
$
1,371,218
$
1,293,864
$
1,139,424
$
1,099,618
(3)
21
1,332,244
$
1,116,072
19
Trading assets - debt and equity instruments
442,623
473,875
(i)
468,976
(i)
447,022
(i)
430,149
(i)
(7)
3
461,728
417,686
(i)
11
Trading assets - derivative receivables
64,730
69,392
(i)
73,452
(i)
73,366
(i)
73,978
(i)
(7)
(13)
69,159
67,858
(i)
2
Loans:
Loans retained (b)
149,826
140,096
136,794
128,765
131,187
7
14
142,286
137,996
3
Loans held-for-sale and loans at fair value (c)
53,712
52,376
45,671
36,228
30,205
3
78
50,616
32,974
54
Total loans
203,538
192,472
182,465
164,993
161,392
6
26
192,902
170,970
13
Equity
83,000
83,000
83,000
80,000
80,000
—
4
83,000
80,000
4
Headcount (d)
66,267
64,261
62,772
61,733
61,830
3
7
66,267
61,830
7
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
2
$
(12)
$
(7)
$
88
$
23
NM
(91)
$
(17)
$
282
NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (e)
547
783
842
1,008
1,178
(30)
(54)
547
1,178
(54)
Nonaccrual loans held-for-sale and loans at fair value (f)
1,234
1,187
1,266
1,662
2,111
4
(42)
1,234
2,111
(42)
Total nonaccrual loans
1,781
1,970
2,108
2,670
3,289
(10)
(46)
1,781
3,289
(46)
Derivative receivables
393
481
284
56
140
(18)
181
393
140
181
Assets acquired in loan satisfactions
95
95
97
85
88
—
8
95
88
8
Total nonperforming assets
2,269
2,546
2,489
2,811
3,517
(11)
(35)
2,269
3,517
(35)
Allowance for credit losses:
Allowance for loan losses
1,442
1,607
1,982
2,366
2,863
(10)
(50)
1,442
2,863
(50)
Allowance for lending-related commitments
1,426
1,902
1,602
1,534
1,706
(25)
(16)
1,426
1,706
(16)
Total allowance for credit losses
2,868
3,509
3,584
3,900
4,569
(18)
(37)
2,868
4,569
(37)
Net charge-off/(recovery) rate (b)(g)
0.01
%
(0.03)
%
(0.02)
%
0.27
%
0.07
%
(0.02)
%
0.27
%
Allowance for loan losses to period-end loans retained (b)
0.95
1.11
1.48
1.77
2.26
0.95
2.26
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (h)
1.29
1.53
2.06
2.54
3.15
1.29
3.15
Allowance for loan losses to nonaccrual loans retained (b)(e)
264
205
235
235
243
264
243
Nonaccrual loans to total period-end loans
0.87
0.98
1.17
1.54
2.06
0.87
2.06
In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(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 $138 million, $180 million, $174 million, $278 million and $320 million were held against nonaccrual loans at September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively.
(f)At September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $289 million, $316 million, $340 million, $316 million and $297 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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
BUSINESS METRICS
Advisory
$
1,228
$
916
$
680
$
835
$
428
34
%
187
%
$
2,824
$
1,533
84
%
Equity underwriting
1,032
1,063
1,056
718
732
(3)
41
3,151
2,040
54
Debt underwriting
1,037
1,593
1,252
1,005
1,005
(35)
3
3,882
3,346
16
Total investment banking fees
$
3,297
$
3,572
$
2,988
$
2,558
$
2,165
(8)
52
$
9,857
$
6,919
42
Client deposits and other third-party liabilities (average) (a)
714,376
721,882
705,764
683,818
634,961
(1)
13
714,039
585,955
22
Merchant processing volume (in billions) (b)
470.9
475.2
425.7
444.5
406.1
(1)
16
$
1,371.8
$
1,152.8
19
Assets under custody (“AUC”) (period-end) (in billions)
31,962
$
32,122
$
31,251
$
30,980
$
28,628
—
12
31,962
$
28,628
12
95% Confidence Level - Total CIB VaR (average)
CIB trading VaR by risk type: (c)
Fixed income
$
38
$
39
$
125
$
106
$
93
(3)
(59)
Foreign exchange
5
6
11
12
13
(17)
(62)
Equities
11
18
22
23
26
(39)
(58)
Commodities and other
11
22
33
36
33
(50)
(67)
Diversification benefit to CIB trading VaR (d)
(33)
(44)
(90)
(85)
(76)
25
57
CIB trading VaR (c)
32
41
101
92
89
(22)
(64)
Credit portfolio VaR (e)
5
6
8
12
15
(17)
(67)
Diversification benefit to CIB VaR (d)
(4)
(6)
(10)
(13)
(14)
33
71
CIB VaR
$
33
$
41
$
99
$
91
$
90
(20)
(63)
(a)Client deposits and other third-party liabilities pertain to the Wholesale 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 76–78 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021 for further information.
(d)Average portfolio VaR was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated.
(e)Credit portfolio VaR includes the derivative CVA, hedges of the CVA and hedges of the retained loan portfolio, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value.
Page 17
JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY TRENDS
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees
$
355
$
350
$
331
$
325
$
304
1
%
17
%
$
1,036
$
862
20
%
All other income
633
600
586
550
457
5
39
1,819
1,330
37
Noninterest revenue
988
950
917
875
761
4
30
2,855
2,192
30
Net interest income
1,532
1,533
1,476
1,588
1,524
—
1
4,541
4,658
(3)
TOTAL NET REVENUE (a)
2,520
2,483
2,393
2,463
2,285
1
10
7,396
6,850
8
Provision for credit losses
(363)
(377)
(118)
(1,181)
(147)
4
(147)
(858)
3,294
NM
NONINTEREST EXPENSE
Compensation expense
511
484
482
460
492
6
4
1,477
1,394
6
Noncompensation expense
521
497
487
490
477
5
9
1,505
1,454
4
TOTAL NONINTEREST EXPENSE
1,032
981
969
950
969
5
7
2,982
2,848
5
Income/(loss) before income tax expense/(benefit)
1,851
1,879
1,542
2,694
1,463
(1)
27
5,272
708
NM
Income tax expense/(benefit)
444
459
374
660
377
(3)
18
1,277
164
NM
NET INCOME
$
1,407
$
1,420
$
1,168
$
2,034
$
1,086
(1)
30
$
3,995
$
544
NM
REVENUE BY PRODUCT
Lending
$
1,138
$
1,172
$
1,168
$
1,177
$
1,138
(3)
—
$
3,478
$
3,219
8
Wholesale payments
947
914
843
945
867
4
9
2,704
2,770
(2)
Investment banking (b)
416
370
350
318
260
12
60
1,136
751
51
Other
19
27
32
23
20
(30)
(5)
78
110
(29)
TOTAL NET REVENUE (a)
$
2,520
$
2,483
$
2,393
$
2,463
$
2,285
1
10
$
7,396
$
6,850
8
Investment banking revenue, gross (c)
$
1,343
$
1,164
$
1,129
$
971
$
840
15
60
$
3,636
$
2,377
53
REVENUE BY CLIENT SEGMENT
Middle Market Banking
$
1,017
$
1,009
$
916
$
947
$
880
1
16
$
2,942
$
2,693
9
Corporate Client Banking
878
851
851
856
808
3
9
2,580
2,347
10
Commercial Real Estate Banking
602
599
604
630
576
1
5
1,805
1,683
7
Other
23
24
22
30
21
(4)
10
69
127
(46)
TOTAL NET REVENUE (a)
$
2,520
$
2,483
$
2,393
$
2,463
$
2,285
1
10
$
7,396
$
6,850
8
FINANCIAL RATIOS
ROE
22
%
23
%
19
%
36
%
19
%
21
%
2
%
Overhead ratio
41
40
40
39
42
40
42
In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(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 $80 million, $78 million, $73 million, $107 million and $82 million for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively, and $231 million and $243 million for the nine months ended September 30, 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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
SELECTED BALANCE SHEET DATA (period-end)
Total assets (a)
$
227,670
$
226,022
$
223,583
$
228,911
$
228,583
1
%
—
%
$
227,670
$
228,583
—
%
Loans:
Loans retained
201,283
200,929
202,975
207,880
214,352
—
(6)
201,283
214,352
(6)
Loans held-for-sale and loans at fair value
3,412
3,381
2,884
2,245
349
1
NM
3,412
349
NM
Total loans
$
204,695
$
204,310
$
205,859
$
210,125
$
214,701
—
(5)
$
204,695
$
214,701
(5)
Equity
24,000
24,000
24,000
22,000
22,000
—
9
24,000
22,000
9
Period-end loans by client segment
Middle Market Banking (b)
$
58,918
$
59,314
$
59,983
$
61,115
$
61,812
(1)
(5)
$
58,918
$
61,812
(5)
Corporate Client Banking
45,107
44,866
45,540
47,420
49,857
1
(10)
45,107
49,857
(10)
Commercial Real Estate Banking
100,458
99,858
100,035
101,146
102,484
1
(2)
100,458
102,484
(2)
Other
212
272
301
444
548
(22)
(61)
212
548
(61)
Total loans (b)
$
204,695
$
204,310
$
205,859
$
210,125
$
214,701
—
(5)
$
204,695
$
214,701
(5)
SELECTED BALANCE SHEET DATA (average)
Total assets (a)
$
222,760
$
226,562
$
225,574
$
227,431
$
231,691
(2)
(4)
$
224,955
$
235,079
(4)
Loans:
Loans retained
199,789
202,102
204,164
210,621
217,498
(1)
(8)
202,002
220,167
(8)
Loans held-for-sale and loans at fair value
2,790
3,150
2,578
1,554
629
(11)
344
2,840
986
188
Total loans
$
202,579
$
205,252
$
206,742
$
212,175
$
218,127
(1)
(7)
$
204,842
$
221,153
(7)
Client deposits and other third-party liabilities
300,595
290,250
290,992
276,694
248,289
4
21
293,981
224,774
31
Equity
24,000
24,000
24,000
22,000
22,000
—
9
24,000
22,000
9
Average loans by client segment
Middle Market Banking
$
59,032
$
61,698
$
60,011
$
60,869
$
63,029
(4)
(6)
$
60,243
$
61,789
(3)
Corporate Client Banking
43,330
43,440
45,719
48,825
51,608
—
(16)
44,154
55,967
(21)
Commercial Real Estate Banking
100,120
99,864
100,661
101,969
102,905
—
(3)
100,213
102,650
(2)
Other
97
250
351
512
585
(61)
(83)
232
747
(69)
Total loans
$
202,579
$
205,252
$
206,742
$
212,175
$
218,127
(1)
(7)
$
204,842
$
221,153
(7)
Headcount
12,584
12,163
11,748
11,675
11,704
3
8
12,584
11,704
8
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
31
$
3
$
29
$
162
$
60
NM
(48)
$
63
$
239
(74)
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (c)
735
1,006
1,134
1,286
1,468
(27)
(50)
735
1,468
(50)
Nonaccrual loans held-for-sale and loans
at fair value
—
2
—
120
85
NM
NM
—
85
NM
Total nonaccrual loans
735
1,008
1,134
1,406
1,553
(27)
(53)
735
1,553
(53)
Assets acquired in loan satisfactions
16
17
24
24
24
(6)
(33)
16
24
(33)
Total nonperforming assets
751
1,025
1,158
1,430
1,577
(27)
(52)
751
1,577
(52)
Allowance for credit losses:
Allowance for loan losses
2,354
2,589
3,086
3,335
4,466
(9)
(47)
2,354
4,466
(47)
Allowance for lending-related commitments
711
870
753
651
864
(18)
(18)
711
864
(18)
Total allowance for credit losses
3,065
3,459
3,839
3,986
5,330
(11)
(42)
3,065
5,330
(42)
Net charge-off/(recovery) rate (d)
0.06
%
0.01
%
0.06
%
0.31
%
0.11
%
0.04
%
0.15
%
Allowance for loan losses to period-end loans retained
1.17
1.29
1.52
1.60
2.08
1.17
2.08
Allowance for loan losses to nonaccrual loans retained (c)
320
257
272
259
304
320
304
Nonaccrual loans to period-end total loans
0.36
0.49
0.55
0.67
0.72
0.36
0.72
(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 September 30,2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, total loans included $2.0 billion, $5.0 billion, $7.4 billion, $6.6 billion and $6.6 billion of loans, respectively, under the PPP, of which $1.9 billion, $4.9 billion, $7.2 billion, $6.4 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 $123 million, $188 million, $227 million, $273 million and $367 million was held against nonaccrual loans retained at September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively.
(d)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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
INCOME STATEMENT
REVENUE
Asset management, administration and commissions
$
3,096
$
3,019
$
2,888
$
2,892
$
2,646
3
%
17
%
$
9,003
$
7,718
17
%
All other income
216
146
258
87
93
48
132
620
125
396
Noninterest revenue
3,312
3,165
3,146
2,979
2,739
5
21
9,623
7,843
23
Net interest income
988
942
931
888
815
5
21
2,861
2,530
13
TOTAL NET REVENUE
4,300
4,107
4,077
3,867
3,554
5
21
12,484
10,373
20
Provision for credit losses
(60)
(10)
(121)
(2)
(52)
(500)
(15)
(191)
265
NM
NONINTEREST EXPENSE
Compensation expense
1,387
1,356
1,389
1,323
1,232
2
13
4,132
3,636
14
Noncompensation expense
1,375
1,230
1,185
1,433
1,211
12
14
3,790
3,565
6
TOTAL NONINTEREST EXPENSE
2,762
2,586
2,574
2,756
2,443
7
13
7,922
7,201
10
Income before income tax expense
1,598
1,531
1,624
1,113
1,163
4
37
4,753
2,907
64
Income tax expense
404
378
380
327
287
7
41
1,162
701
66
NET INCOME
$
1,194
$
1,153
$
1,244
$
786
$
876
4
36
$
3,591
$
2,206
63
REVENUE BY LINE OF BUSINESS
Asset Management
$
2,337
$
2,236
$
2,185
$
2,210
$
1,924
5
21
$
6,758
$
5,444
24
Global Private Bank (a)
1,963
1,871
1,892
1,657
1,630
5
20
5,726
4,929
16
TOTAL NET REVENUE
$
4,300
$
4,107
$
4,077
$
3,867
$
3,554
5
21
$
12,484
$
10,373
20
FINANCIAL RATIOS
ROE
33
%
32
%
35
%
29
%
32
%
33
%
27
%
Overhead ratio
64
63
63
71
69
63
69
Pretax margin ratio:
Asset Management
36
37
35
31
30
36
27
Global Private Bank (a)
38
38
45
26
35
40
28
Asset & Wealth Management
37
37
40
29
33
38
28
Headcount
22,051
20,866
20,578
20,683
21,058
6
5
22,051
21,058
5
Number of Global Private Bank client advisors (a)
2,646
2,435
2,462
2,462
2,520
9
5
2,646
2,520
5
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
221,702
$
217,284
$
213,088
$
203,384
(a)
$
187,858
(a)
2
%
18
%
$
221,702
$
187,858
(a)
18
%
Loans
202,871
198,683
192,256
186,608
172,695
2
17
202,871
172,695
17
Deposits
242,309
217,488
217,460
198,755
166,049
11
46
242,309
166,049
46
Equity
14,000
14,000
14,000
10,500
10,500
—
33
14,000
10,500
33
SELECTED BALANCE SHEET DATA (average)
Total assets
$
219,022
$
214,384
$
207,505
$
193,026
(a)
$
181,850
(a)
2
20
$
213,679
$
177,539
(a)
20
Loans
200,635
195,171
188,726
176,758
167,645
3
20
194,888
162,803
20
Deposits
229,710
219,699
206,562
180,348
162,589
5
41
218,742
155,779
40
Equity
14,000
14,000
14,000
10,500
10,500
—
33
14,000
10,500
33
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
(1)
$
12
$
11
$
(16)
$
2
NM
NM
$
22
$
2
NM
Nonaccrual loans
686
792
917
(a)
964
(a)
970
(a)
(13)
(29)
686
970
(29)
Allowance for credit losses:
Allowance for loan losses
402
458
479
598
580
(12)
(31)
402
580
(31)
Allowance for lending-related commitments
20
25
25
38
41
(20)
(51)
20
41
(51)
Total allowance for credit losses
422
483
504
636
621
(13)
(32)
422
621
(32)
Net charge-off/(recovery) rate
—
%
0.02
%
0.02
%
(0.04)
%
—
%
0.02
%
—
%
Allowance for loan losses to period-end loans
0.20
0.23
0.25
0.32
0.34
0.20
0.34
Allowance for loan losses to nonaccrual loans
59
58
52
(a)
62
(a)
60
(a)
59
60
Nonaccrual loans to period-end loans
0.34
0.40
0.48
(a)
0.52
(a)
0.56
(a)
0.34
0.56
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(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)
Sep 30, 2021
Change
NINE MONTHS ENDED SEPTEMBER 30,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Sep 30,
2021 Change
CLIENT ASSETS
2021
2021
2021
2020
2020
2021
2020
2021
2020
2020
Assets by asset class
Liquidity
$
685
$
698
$
686
$
641
$
674
(2)
%
2
%
$
685
$
674
2
%
Fixed income
695
688
662
671
650
1
7
695
650
7
Equity
725
725
661
595
499
—
45
725
499
45
Multi-asset
702
702
669
656
593
—
18
702
593
18
Alternatives
189
174
155
153
144
9
31
189
144
31
TOTAL ASSETS UNDER MANAGEMENT
2,996
2,987
2,833
2,716
2,560
—
17
2,996
2,560
17
Custody/brokerage/administration/deposits
1,100
1,057
995
936
810
4
36
1,100
810
36
TOTAL CLIENT ASSETS (a)
$
4,096
$
4,044
$
3,828
$
3,652
$
3,370
1
22
$
4,096
$
3,370
22
Assets by client segment
Private Banking
$
773
$
752
$
718
$
689
$
650
3
19
$
773
$
650
19
Global Institutional (b)
1,375
1,383
1,320
1,273
1,245
(1)
10
1,375
1,245
10
Global Funds (b)
848
852
795
754
665
—
28
848
665
28
TOTAL ASSETS UNDER MANAGEMENT
$
2,996
$
2,987
$
2,833
$
2,716
$
2,560
—
17
$
2,996
$
2,560
17
Private Banking
$
1,817
$
1,755
$
1,664
$
1,581
$
1,422
4
28
$
1,817
$
1,422
28
Global Institutional (b)
1,425
1,430
1,362
1,311
1,278
—
12
1,425
1,278
12
Global Funds (b)
854
859
802
760
670
(1)
27
854
670
27
TOTAL CLIENT ASSETS (a)
$
4,096
$
4,044
$
3,828
$
3,652
$
3,370
1
22
$
4,096
$
3,370
22
Assets under management rollforward
Beginning balance
$
2,987
$
2,833
$
2,716
$
2,560
$
2,476
$
2,716
$
2,328
Net asset flows:
Liquidity
(11)
15
44
(36)
(30)
48
140
Fixed income
11
17
8
8
22
36
40
Equity
16
20
31
14
9
67
19
Multi-asset
3
2
6
10
(1)
11
(5)
Alternatives
3
10
3
1
2
16
5
Market/performance/other impacts
(13)
90
25
159
82
102
33
Ending balance
$
2,996
$
2,987
$
2,833
$
2,716
$
2,560
$
2,996
$
2,560
Client assets rollforward
Beginning balance
$
4,044
$
3,828
$
3,652
$
3,370
$
3,241
$
3,652
$
3,089
Net asset flows
75
75
130
39
11
280
237
Market/performance/other impacts
(23)
141
46
243
118
164
44
Ending balance
$
4,096
$
4,044
$
3,828
$
3,652
$
3,370
$
4,096
$
3,370
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(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
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
INCOME STATEMENT
REVENUE
Principal transactions
$
(103)
$
(8)
$
272
$
273
$
87
NM
NM
$
161
$
(28)
NM
Investment securities gains/(losses)
(256)
(155)
14
70
466
(65)
NM
(397)
725
NM
All other income
117
(45)
96
249
(210)
NM
NM
168
(90)
NM
Noninterest revenue
(242)
(208)
382
592
343
(16)
NM
(68)
607
NM
Net interest income
(1,054)
(961)
(855)
(841)
(682)
(10)
(55)
(2,870)
(1,534)
(87)
TOTAL NET REVENUE (a)
(1,296)
(1,169)
(473)
(249)
(339)
(11)
(282)
(2,938)
(927)
(217)
Provision for credit losses
(7)
49
16
(42)
96
NM
NM
58
108
(46)
NONINTEREST EXPENSE
160
515
876
361
719
(69)
(78)
1,551
1,012
53
Income/(loss) before income tax expense/(benefit)
(1,449)
(1,733)
(1,365)
(568)
(1,154)
16
(26)
(4,547)
(2,047)
(122)
Income tax expense/(benefit)
(632)
(489)
(785)
(210)
(455)
(29)
(39)
(1,906)
(655)
(191)
NET INCOME/(LOSS)
$
(817)
$
(1,244)
$
(580)
$
(358)
$
(699)
34
(17)
$
(2,641)
$
(1,392)
(90)
MEMO:
TOTAL NET REVENUE
Treasury and Chief Investment Office (“CIO”)
(1,198)
(1,081)
(705)
(623)
(243)
(11)
(393)
(2,984)
(745)
(301)
Other Corporate
(98)
(88)
232
374
(96)
(11)
(2)
46
(182)
NM
TOTAL NET REVENUE
$
(1,296)
$
(1,169)
$
(473)
$
(249)
$
(339)
(11)
(282)
$
(2,938)
$
(927)
(217)
NET INCOME/(LOSS)
Treasury and CIO
(998)
(956)
(675)
(587)
(349)
(4)
(186)
(2,629)
(816)
(222)
Other Corporate
181
(288)
95
229
(350)
NM
NM
(12)
(576)
98
TOTAL NET INCOME/(LOSS)
$
(817)
$
(1,244)
$
(580)
$
(358)
$
(699)
34
(17)
$
(2,641)
$
(1,392)
(90)
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
1,459,283
$
1,382,653
$
1,409,564
$
1,359,831
$
1,253,275
6
16
$
1,459,283
$
1,253,275
16
Loans
1,697
1,530
1,627
1,657
1,569
11
8
1,697
1,569
8
Headcount (b)
38,302
37,520
38,168
38,366
38,861
2
(1)
38,302
38,861
(1)
SUPPLEMENTAL INFORMATION
TREASURY and CIO
Investment securities gains/(losses)
$
(256)
$
(155)
$
14
$
70
$
466
(65)
NM
$
(397)
$
725
NM
Available-for-sale securities (average)
223,747
342,338
372,443
410,803
442,943
(35)
(49)
312,298
414,228
(25)
Held-to-maturity securities (average) (c)
339,544
240,696
207,957
155,525
103,596
41
228
263,214
74,102
255
Investment securities portfolio (average)
$
563,291
$
583,034
$
580,400
$
566,328
$
546,539
(3)
3
$
575,512
$
488,330
18
Available-for-sale securities (period-end)
249,484
230,127
377,911
386,065
387,663
8
(36)
249,484
387,663
(36)
Held-to-maturity securities, net of allowance for credit losses (period-end) (c)
343,542
341,476
217,452
201,821
141,553
1
143
343,542
141,553
143
Investment securities portfolio, net of allowance for credit losses (period-end) (d)
$
593,026
$
571,603
$
595,363
$
587,886
$
529,216
4
12
$
593,026
$
529,216
12
(a)Included tax-equivalent adjustments, driven by tax-exempt income from municipal bonds, of $64 million, $66 million, $67 million, $55 million and $62 million for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively, and $197 million and $186 million for the nine months ended September 30, 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 September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, the allowance for credit losses on investment securities was $73 million, $87 million, $94 million, $78 million and $120 million, respectively.
Page 23
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
Sep 30, 2021
Change
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Sep 30,
2021
2021
2021
2020
2020
2021
2020
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained
$
298,308
$
297,731
$
302,392
$
302,127
$
305,106
—
%
(2)
%
Loans held-for-sale and loans at fair value
29,856
31,954
22,516
16,452
16,992
(7)
76
Total consumer, excluding credit card loans
328,164
329,685
324,908
318,579
322,098
—
2
Credit card loans
Loans retained
143,166
141,079
131,772
143,432
139,590
1
3
Loans held-for-sale
—
723
721
784
787
NM
NM
Total credit card loans
143,166
141,802
132,493
144,216
140,377
1
2
Total consumer loans
471,330
471,487
457,401
462,795
462,475
—
2
Wholesale loans (b)
Loans retained
532,786
524,855
514,478
514,947
500,841
2
6
Loans held-for-sale and loans at fair value
40,499
44,612
39,428
35,111
26,424
(9)
53
Total wholesale loans
573,285
569,467
553,906
550,058
527,265
1
9
Total loans
1,044,615
1,040,954
1,011,307
1,012,853
989,740
—
6
Derivative receivables
67,908
66,320
(g)
68,896
(g)
75,444
(g)
71,929
(g)
2
(6)
Receivables from customers (c)
58,752
59,609
58,180
47,710
30,847
(1)
90
Total credit-related assets
1,171,275
1,166,883
1,138,383
1,136,007
1,092,516
—
7
Lending-related commitments
Consumer, excluding credit card
56,684
56,875
56,245
57,319
(g)
46,425
—
22
Credit card (d)
710,610
682,531
674,367
658,506
662,860
4
7
Wholesale
498,896
502,616
481,244
449,863
441,235
(1)
13
Total lending-related commitments
1,266,190
1,242,022
1,211,856
1,165,688
1,150,520
2
10
Total credit exposure
$
2,437,465
$
2,408,905
$
2,350,239
$
2,301,695
$
2,243,036
1
9
Memo: Total by category
Consumer exposure (e)
$
1,238,624
$
1,210,893
$
1,188,013
$
1,178,620
$
1,171,760
2
6
Wholesale exposures (f)
1,198,841
1,198,012
1,162,226
1,123,075
1,071,276
—
12
Total credit exposure
$
2,437,465
$
2,408,905
$
2,350,239
$
2,301,695
$
2,243,036
1
9
(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)
Sep 30, 2021
Change
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Sep 30,
2021
2021
2021
2020
2020
2021
2020
NONPERFORMING ASSETS (a)
Consumer nonaccrual loans
Loans retained
$
4,911
$
5,183
$
5,382
$
5,464
$
5,047
(d)
(5)
%
(3)
%
Loans held-for-sale and loans at fair value
440
475
608
1,003
1,358
(7)
(68)
Total consumer nonaccrual loans
5,351
5,658
5,990
6,467
6,405
(5)
(16)
Wholesale nonaccrual loans
Loans retained
2,084
2,698
3,015
3,318
3,745
(23)
(44)
Loans held-for-sale and loans at fair value
808
716
701
788
852
13
(5)
Total wholesale nonaccrual loans
2,892
3,414
3,716
4,106
4,597
(15)
(37)
Total nonaccrual loans (b)
8,243
9,072
9,706
10,573
11,002
(9)
(25)
Derivative receivables
393
481
284
56
140
(18)
181
Assets acquired in loan satisfactions
246
249
267
277
320
(1)
(23)
Total nonperforming assets
8,882
9,802
10,257
10,906
11,462
(9)
(23)
Wholesale lending-related commitments (c)
641
851
800
577
607
(25)
6
Total nonperforming exposure
$
9,523
$
10,653
$
11,057
$
11,483
$
12,069
(11)
(21)
NONACCRUAL LOAN-RELATED RATIOS (b)
Total nonaccrual loans to total loans
0.79
%
0.87
%
0.96
%
1.04
%
1.11
%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans
1.63
1.72
1.84
2.03
1.99
(d)
Total wholesale nonaccrual loans to total
wholesale loans
0.50
0.60
0.67
0.75
0.87
(a)At September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, nonperforming assets excluded: (1) mortgage loans 90 or more days past due and insured by U.S. government agencies of $644 million, $713 million, $798 million, $874 million and $1.1 billion, respectively; and (2) real estate owned (“REO”) insured by U.S. government agencies of $5 million, $7 million, $8 million, $9 million and $10 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)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.
(c)Represents commitments that are risk rated as nonaccrual.
(d)Prior-period amounts have been revised to conform with the current presentation.
Page 25
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDS
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance
$
19,500
$
23,001
$
28,328
$
30,814
$
31,591
(15)
%
(38)
%
$
28,328
$
17,295
64
%
Net charge-offs:
Gross charge-offs
940
1,188
1,468
1,471
1,586
(21)
(41)
3,596
5,365
(33)
Gross recoveries collected
(416)
(454)
(411)
(421)
(406)
8
(2)
(1,281)
(1,156)
(11)
Net charge-offs
524
734
1,057
1,050
1,180
(29)
(56)
2,315
4,209
(45)
Provision for loan losses
(819)
(2,759)
(4,279)
(1,433)
400
70
NM
(7,857)
17,724
NM
Other
(7)
(8)
9
(3)
3
13
NM
(6)
4
NM
Ending balance
$
18,150
$
19,500
$
23,001
$
28,328
$
30,814
(7)
(41)
$
18,150
$
30,814
(41)
ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance
$
2,998
$
2,516
$
2,409
$
2,823
$
2,710
19
11
$
2,409
$
1,289
87
Provision for lending-related commitments
(694)
481
107
(414)
114
NM
NM
(106)
1,535
NM
Other
1
1
—
—
(1)
—
NM
2
(1)
NM
Ending balance
$
2,305
$
2,998
$
2,516
$
2,409
$
2,823
(23)
(18)
$
2,305
$
2,823
(18)
Total allowance for credit losses (a)
$
20,455
$
22,498
$
25,517
$
30,737
$
33,637
(9)
(39)
$
20,455
$
33,637
(39)
NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans
(0.01)
%
(0.04)
%
0.03
%
0.05
%
0.08
%
(0.01)
%
0.06
%
Credit card retained loans
1.39
2.24
2.97
2.17
2.92
2.18
3.17
Total consumer retained loans
0.44
0.67
0.93
0.72
0.97
0.68
1.09
Wholesale retained loans
0.03
0.01
0.04
0.19
0.07
0.03
0.14
Total retained loans
0.21
0.31
0.45
0.44
0.49
0.32
0.58
Memo: Average retained loans
Consumer retained, excluding credit card loans
$
298,019
$
298,823
$
302,055
$
303,421
$
306,201
—
(3)
$
299,620
$
301,535
(1)
Credit card retained loans
141,371
135,430
134,155
140,459
140,200
4
1
137,012
148,382
(8)
Total average retained consumer loans
439,390
434,253
436,210
443,880
446,401
1
(2)
436,632
449,917
(3)
Wholesale retained loans
528,979
519,902
515,858
503,249
504,449
2
5
521,628
512,137
2
Total average retained loans
$
968,369
$
954,155
$
952,068
$
947,129
$
950,850
1
2
$
958,260
$
962,054
—
(a)At September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020 excludes allowance for credit losses on investment securities of $73 million, $87 million, $94 million, $78 million and $120 million, respectively.
Page 26
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
Sep 30, 2021
Change
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Sep 30,
2021
2021
2021
2020
2020
2021
2020
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)
$
(571)
$
(557)
$
(348)
$
(7)
$
228
(3)
%
NM
Portfolio-based
2,445
2,455
3,030
3,643
4,274
—
(43)
%
Total consumer, excluding credit card
1,874
1,898
2,682
3,636
4,502
(1)
(58)
Credit card
Asset-specific (b)
383
443
522
633
652
(14)
(41)
Portfolio-based
11,267
12,057
13,778
17,167
17,148
(7)
(34)
Total credit card
11,650
12,500
14,300
17,800
17,800
(7)
(35)
Total consumer
13,524
14,398
16,982
21,436
22,302
(6)
(39)
Wholesale
Asset-specific (c)
357
488
529
682
792
(27)
(55)
Portfolio-based
4,269
4,614
5,490
6,210
7,720
(7)
(45)
Total wholesale
4,626
5,102
6,019
6,892
8,512
(9)
(46)
Total allowance for loan losses
18,150
19,500
23,001
28,328
30,814
(7)
(41)
Allowance for lending-related commitments
2,305
2,998
2,516
2,409
2,823
(23)
(18)
Total allowance for credit losses (d)
$
20,455
$
22,498
$
25,517
$
30,737
$
33,637
(9)
(39)
CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans
0.63
%
0.64
%
0.89
%
1.20
%
1.48
%
Credit card allowance to total credit card retained loans
8.14
8.86
10.85
12.41
12.75
Wholesale allowance to total wholesale retained loans
0.87
0.97
1.17
1.34
1.70
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (e)
0.93
1.05
1.26
1.45
1.83
Total allowance to total retained loans
1.86
2.02
2.42
2.95
3.26
Consumer, excluding credit card allowance, to consumer,
Wholesale allowance to wholesale retained nonaccrual loans
222
189
200
208
227
Total allowance to total retained nonaccrual loans
259
247
274
323
350
(g)
(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)At September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020 excludes allowance for credit losses on investment securities of $73 million, $87 million, $94 million, $78 million and $120 million, respectively.
(e)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.
(f)Refer to footnote (a) on page 25 for information on the Firm’s nonaccrual policy for credit card loans.
(g)Prior-period amounts have been revised to conform with the current presentation.
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 and the net yield on a managed basis, management also reviews these metrics excluding CIB Markets, as shown below; 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. The resulting metrics that exclude CIB Markets are referred to as non-markets-related net interest income and net yield. CIB Markets consists of Fixed Income Markets and Equity Markets. Management believes that disclosure of non-markets-related net interest income and net yield provides investors and analysts with other measures by which to analyze the non-markets-related business trends of the Firm and provides a comparable measure to other financial institutions that are primarily focused on lending, investing and deposit-raising activities.
QUARTERLY TRENDS
NINE MONTHS ENDED SEPTEMBER 30,
3Q21 Change
2021 Change
(in millions, except rates)
3Q21
2Q21
1Q21
4Q20
3Q20
2Q21
3Q20
2021
2020
2020
Net interest income - reported
$
13,080
$
12,741
$
12,889
$
13,258
$
13,013
3
%
1
%
$
38,710
$
41,305
(6)
%
Fully taxable-equivalent adjustments
104
109
109
97
104
(5)
—
322
321
—
Net interest income - managed basis (a)
$
13,184
$
12,850
$
12,998
$
13,355
$
13,117
3
1
$
39,032
$
41,626
(6)
Less: CIB Markets net interest income
1,967
1,987
2,223
2,166
2,076
(1)
(5)
6,177
6,208
—
Net interest income excluding CIB Markets (a)
$
11,217
$
10,863
$
10,775
$
11,189
$
11,041
3
2
$
32,855
$
35,418
(7)
Average interest-earning assets
$
3,219,786
$
3,177,195
$
3,126,569
$
2,955,646
$
2,874,974
1
12
$
3,174,858
$
2,720,636
17
Less: Average CIB Markets interest-earning assets
894,892
882,848
866,591
743,337
730,141
1
23
881,547
753,748
17
Average interest-earning assets excluding CIB Markets
$
2,324,894
$
2,294,347
$
2,259,978
$
2,212,309
$
2,144,833
1
8
$
2,293,311
$
1,966,888
17
Net yield on average interest-earning assets - managed basis
1.62
%
1.62
%
1.69
%
1.80
%
1.82
%
1.64
%
2.04
%
Net yield on average CIB Markets interest-earning assets
0.87
0.90
1.04
1.16
1.13
0.94
1.10
Net yield on average interest-earning assets excluding CIB Markets
1.91
1.90
1.93
2.01
2.05
1.92
2.41
(a) Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
