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
9–10
Earnings Per Share and Related Information
11
Business Segment Results
Consumer & Community Banking (“CCB”)
12–15
Corporate & Investment Bank (“CIB”)
16–18
Commercial Banking (“CB”)
19–20
Asset & Wealth Management (“AWM”)
21–23
Corporate
24
Credit-Related Information
25–28
Non-GAAP Financial Measures
29
Supplemental Information Related to the First Republic Acquisition
30
Glossary of Terms and Acronyms (a)
(a) Refer to the Glossary of Terms and Acronyms on pages 297–303 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”).
JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share and ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
SELECTED INCOME STATEMENT DATA
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
Reported Basis
Total net revenue
$
41,307
(e)
$
38,349
$
34,547
$
32,716
$
30,715
8
%
34
%
$
79,656
(e)
$
61,432
30
%
Total noninterest expense
20,822
(e)
20,107
19,022
19,178
18,749
4
11
40,929
(e)
37,940
8
Pre-provision profit (a)
20,485
18,242
15,525
13,538
11,966
12
71
38,727
23,492
65
Provision for credit losses
2,899
(e)
2,275
2,288
1,537
1,101
27
163
5,174
(e)
2,564
102
NET INCOME
14,472
12,622
11,008
9,737
8,649
15
67
27,094
16,931
60
Managed Basis (b)
Total net revenue
42,401
(e)
39,336
35,566
33,491
31,630
8
34
81,737
(e)
63,220
29
Total noninterest expense
20,822
(e)
20,107
19,022
19,178
18,749
4
11
40,929
(e)
37,940
8
Pre-provision profit (a)
21,579
19,229
16,544
14,313
12,881
12
68
40,808
25,280
61
Provision for credit losses
2,899
(e)
2,275
2,288
1,537
1,101
27
163
5,174
(e)
2,564
102
NET INCOME
14,472
12,622
11,008
9,737
8,649
15
67
27,094
16,931
60
EARNINGS PER SHARE DATA
Net income: Basic
$
4.76
$
4.11
$
3.58
$
3.13
$
2.77
16
72
$
8.86
$
5.40
64
Diluted
4.75
4.10
3.57
3.12
2.76
16
72
8.85
5.39
64
Average shares: Basic
2,943.8
2,968.5
2,962.9
2,961.2
2,962.2
(1)
(1)
2,956.1
2,969.6
—
Diluted
2,948.3
2,972.7
2,967.1
2,965.4
2,966.3
(1)
(1)
2,960.5
2,973.7
—
MARKET AND PER COMMON SHARE DATA
Market capitalization
$
422,661
$
380,803
$
393,484
$
306,520
$
330,237
11
28
$
422,661
$
330,237
28
Common shares at period-end
2,906.1
2,922.3
2,934.3
2,933.2
2,932.6
(1)
(1)
2,906.1
2,932.6
(1)
Book value per share
98.11
94.34
90.29
87.00
86.38
4
14
98.11
86.38
14
Tangible book value per share (“TBVPS”) (a)
79.90
76.69
73.12
69.90
69.53
4
15
79.90
69.53
15
Cash dividends declared per share
1.00
1.00
1.00
1.00
1.00
—
—
2.00
2.00
—
FINANCIAL RATIOS (c)
Return on common equity (“ROE”)
20
%
18
%
16
%
15
%
13
%
19
%
13
%
Return on tangible common equity (“ROTCE”) (a)
25
23
20
18
17
24
16
Return on assets
1.51
1.38
1.16
1.01
0.89
1.45
0.87
CAPITAL RATIOS (d)
Common equity Tier 1 (“CET1”) capital ratio
13.8
%
(f)
13.8
%
13.2
%
12.5
%
12.2
%
13.8
%
(f)
12.2
%
Tier 1 capital ratio
15.3
(f)
15.4
14.9
14.1
14.1
15.3
(f)
14.1
Total capital ratio
17.3
(f)
17.4
16.8
16.0
15.7
17.3
(f)
15.7
Tier 1 leverage ratio
6.9
(f)
6.9
6.6
6.2
6.2
6.9
(f)
6.2
Supplementary leverage ratio (“SLR”)
5.8
(f)
5.9
5.6
5.3
5.3
5.8
(f)
5.3
(a)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 10 for a reconciliation of common stockholders’ equity to TCE. Refer to page 29 for a further discussion of these measures.
(b)Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.
(c)Quarterly ratios are based upon annualized amounts.
(d)The capital metrics reflect the Current Expected Credit Losses ("CECL") capital transition provisions. Beginning January 1, 2022, the $2.9 billion CECL capital benefit is being phased out at 25% per year over a three-year period. As of June 30, 2023 and March 31, 2023, CET1 capital reflected the remaining $1.4 billion CECL benefit; as of December 31, 2022, September 30, 2022 and June 30, 2022, CET1 capital reflected a $2.2 billion benefit. Refer to Capital Risk Management on pages 36-41 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023, and pages 86-96 of the Firm’s 2022 Form 10-K for additional information.
(e)On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the “First Republic acquisition") from the Federal Deposit Insurance Corporation (“FDIC”). Refer to page 30 for additional information.
(f)Estimated.
Page 2
JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratios, headcount and where otherwise noted)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
3,868,240
$
3,744,305
$
3,665,743
$
3,773,884
$
3,841,314
3
%
1
%
$
3,868,240
$
3,841,314
1
%
Loans:
Consumer, excluding credit card loans
408,204
311,433
311,375
313,796
317,212
31
29
408,204
317,212
29
Credit card loans
191,348
180,079
185,175
170,462
165,494
6
16
191,348
165,494
16
Wholesale loans
700,517
637,384
639,097
628,375
621,449
10
13
700,517
621,449
13
Total loans
1,300,069
(e)
1,128,896
1,135,647
1,112,633
1,104,155
15
18
1,300,069
(e)
1,104,155
18
Deposits:
U.S. offices:
Noninterest-bearing
656,778
663,772
644,902
688,292
714,478
(1)
(8)
656,778
714,478
(8)
Interest-bearing
1,311,893
1,290,614
1,276,346
1,304,012
1,343,802
2
(2)
1,311,893
1,343,802
(2)
Non-U.S. offices:
Noninterest-bearing
24,268
25,071
27,005
26,629
26,983
(3)
(10)
24,268
26,983
(10)
Interest-bearing
406,023
397,796
391,926
389,682
386,281
2
5
406,023
386,281
5
Total deposits
2,398,962
(e)
2,377,253
2,340,179
2,408,615
2,471,544
1
(3)
2,398,962
(e)
2,471,544
(3)
Long-term debt
364,078
(f)
295,489
295,865
287,473
288,212
23
26
364,078
(f)
288,212
26
Common stockholders’ equity
285,112
275,678
264,928
255,180
253,305
3
13
285,112
253,305
13
Total stockholders’ equity
312,516
303,082
292,332
288,018
286,143
3
9
312,516
286,143
9
Loans-to-deposits ratio
54
%
47
%
49
%
46
%
45
%
54
%
45
%
Headcount
300,066
(g)
296,877
293,723
288,474
278,494
1
8
300,066
(g)
278,494
8
95% CONFIDENCE LEVEL - TOTAL VaR
Average VaR (a)
$
47
$
47
$
61
$
54
$
54
—
(13)
LINE OF BUSINESS NET REVENUE (b)
Consumer & Community Banking
$
17,233
$
16,456
$
15,793
(j)
$
14,281
(j)
$
12,558
(j)
5
37
$
33,689
$
24,740
(j)
36
Corporate & Investment Bank
12,519
13,600
10,598
(j)
11,925
(j)
12,003
(j)
(8)
4
26,119
25,579
(j)
2
Commercial Banking
3,988
3,511
3,404
3,048
2,683
14
49
7,499
5,081
48
Asset & Wealth Management
4,943
4,784
4,588
4,539
4,306
3
15
9,727
8,621
13
Corporate
3,718
985
1,183
(302)
80
277
NM
4,703
(801)
NM
TOTAL NET REVENUE
$
42,401
(h)
$
39,336
$
35,566
$
33,491
$
31,630
8
34
$
81,737
(h)
$
63,220
29
LINE OF BUSINESS NET INCOME/(LOSS)
Consumer & Community Banking
$
5,306
$
5,243
$
4,556
$
4,344
$
3,108
1
71
$
10,549
$
6,016
75
Corporate & Investment Bank
4,092
4,421
3,314
3,522
3,717
(7)
10
8,513
8,089
5
Commercial Banking
1,208
1,347
1,423
946
994
(10)
22
2,555
1,844
39
Asset & Wealth Management
1,226
1,367
1,134
1,219
1,004
(10)
22
2,593
2,012
29
Corporate
2,640
244
581
(294)
(174)
NM
NM
2,884
(1,030)
NM
NET INCOME
$
14,472
$
12,622
$
11,008
$
9,737
$
8,649
15
67
$
27,094
$
16,931
60
MEMO: SELECTED FIRMWIDE METRICS
Wealth Management (c)
Client assets (in billions)
$
2,862
(i)
$
2,594
$
2,438
$
2,302
$
2,177
10
31
$
2,862
(i)
$
2,177
31
Number of client advisors
8,367
8,314
8,166
8,127
7,756
1
8
8,367
7,756
8
J.P.Morgan Payments (d)
Total net revenue
4,729
4,458
4,423
3,762
3,130
6
51
9,187
5,725
60
Merchant processing volume (in billions)
600.1
558.8
583.2
545.4
539.6
7
11
1,158.9
1,029.8
13
Average deposits (in billions)
720
707
732
748
816
2
(12)
714
819
(13)
(a)Refer to Corporate & Investment Bank VaR on page 18 for a further information.
(b)Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.
(c)Consists of Global Private Bank in AWM and client investment assets in J.P.Morgan Wealth Management in CCB.
(d)Predominantly in CIB and CB; total net revenue excludes the net impact of equity investments.
(e)At June 30, 2023, includes $150 billion of loans and $68 billion of deposits associated with the First Republic acquisition. Refer to page 30 for additional information.
(f)Includes a five year $50 billion notional, secured note payable to the FDIC and $25 billion of assumed FHLB advances associated with the First Republic acquisition.
(g)Excludes 5,132 individuals associated with the First Republic acquisition who became employees effective July 2, 2023.
(h)Includes the impact of the First Republic acquisition. Refer to page 30 for additional information.
(i)As of June 30, 2023, includes $150.9 billion of client investment assets associated with the First Republic acquisition.
(j)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.
Page 3
JPMORGAN CHASE & CO.
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share and ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
REVENUE
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
Investment banking fees
$
1,513
$
1,649
$
1,418
$
1,674
$
1,586
(8)
%
(5)
%
$
3,162
$
3,594
(12)
%
Principal transactions
6,910
7,615
4,434
5,383
4,990
(9)
38
14,525
10,095
44
Lending- and deposit-related fees
1,828
1,620
1,655
1,731
1,873
13
(2)
3,448
3,712
(7)
Asset management fees
3,774
3,465
3,432
3,495
3,517
9
7
7,239
7,169
1
Commissions and other fees
1,739
1,695
1,574
1,574
1,723
3
1
3,434
3,433
—
Investment securities losses
(900)
(868)
(874)
(959)
(153)
(4)
(488)
(1,768)
(547)
(223)
Mortgage fees and related income
278
221
98
314
378
26
(26)
499
838
(40)
Card income
1,094
1,234
1,226
1,086
1,133
(11)
(3)
2,328
2,108
10
Other income
3,292
(d)
1,007
1,392
900
540
227
NM
4,299
(d)
2,030
112
Noninterest revenue
19,528
17,638
14,355
15,198
15,587
11
25
37,166
32,432
15
Interest income
41,644
37,004
33,054
25,611
18,646
13
123
78,648
34,142
130
Interest expense
19,865
16,293
12,862
8,093
3,518
22
465
36,158
5,142
NM
Net interest income
21,779
20,711
20,192
17,518
15,128
5
44
42,490
29,000
47
TOTAL NET REVENUE
41,307
38,349
34,547
32,716
30,715
8
34
79,656
61,432
30
Provision for credit losses
2,899
(d)
2,275
2,288
1,537
1,101
27
163
5,174
(d)
2,564
102
NONINTEREST EXPENSE
Compensation expense
11,216
11,676
10,009
10,539
10,301
(4)
9
22,892
21,088
9
Occupancy expense
1,070
1,115
1,271
1,162
1,129
(4)
(5)
2,185
2,263
(3)
Technology, communications and equipment expense
2,267
2,184
2,256
2,366
2,376
4
(5)
4,451
4,736
(6)
Professional and outside services
2,561
2,448
2,652
2,481
2,469
5
4
5,009
5,041
(1)
Marketing
1,122
1,045
1,093
1,017
881
7
27
2,167
1,801
20
Other expense (a)
2,586
(d)
1,639
1,741
1,613
1,593
58
62
4,225
(d)
3,011
40
TOTAL NONINTEREST EXPENSE
20,822
20,107
19,022
19,178
18,749
4
11
40,929
37,940
8
Income before income tax expense
17,586
15,967
13,237
12,001
10,865
10
62
33,553
20,928
60
Income tax expense
3,114
(e)
3,345
2,229
2,264
2,216
(7)
41
6,459
(e)
3,997
62
NET INCOME
$
14,472
$
12,622
$
11,008
$
9,737
$
8,649
15
67
$
27,094
$
16,931
60
NET INCOME PER COMMON SHARE DATA
Basic earnings per share
$
4.76
$
4.11
$
3.58
$
3.13
$
2.77
16
72
$
8.86
$
5.40
64
Diluted earnings per share
4.75
4.10
3.57
3.12
2.76
16
72
8.85
5.39
64
FINANCIAL RATIOS
Return on common equity (b)
20
%
18
%
16
%
15
%
13
%
19
%
13
%
Return on tangible common equity (b)(c)
25
23
20
18
17
24
16
Return on assets (b)
1.51
1.38
1.16
1.01
0.89
1.45
0.87
Effective income tax rate
17.7
(e)
20.9
16.8
18.9
20.4
19.3
19.1
Overhead ratio
50
52
55
59
61
51
62
(a)Included Firmwide legal expense of $420 million, $176 million, $27 million, $47 million and $73 million for the three months ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, respectively, and $596 million and $192 million for the six months ended June 30, 2023 and June 30, 2022 respectively.
(b)Quarterly ratios are based upon annualized amounts.
(c)Refer to page 29 for further discussion of ROTCE.
(d)As a result of the First Republic acquisition on May 1, 2023, includes the estimated bargain purchase gain of $2.7 billion recorded in other income, an increase to the provision for credit losses of $1.2 billion, and other expense of $599 million. Refer to page 30 for additional information.
(e)Income taxes associated with the First Republic acquisition are reflected in the bargain purchase gain, resulting in a reduction in the Firm’s effective tax rate of 3.4 percentage points.
Page 4
JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
Jun 30, 2023
Change
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Jun 30,
2023
2023
2022
2022
2022
2023
2022
ASSETS
Cash and due from banks
$
26,064
$
25,098
$
27,697
$
24,654
$
27,215
4
%
(4)
%
Deposits with banks
469,059
520,902
539,537
619,533
642,045
(10)
(27)
Federal funds sold and securities purchased under
resale agreements
325,628
317,111
315,592
301,878
322,156
3
1
Securities borrowed
163,563
195,917
185,369
193,216
202,393
(17)
(19)
Trading assets:
Debt and equity instruments
572,779
519,618
382,919
413,953
384,260
10
49
Derivative receivables
64,217
59,274
70,880
92,534
81,317
8
(21)
Available-for-sale (“AFS”) securities
203,262
(a)
197,248
205,857
188,140
222,069
3
(8)
Held-to-maturity (”HTM”) securities
408,941
412,827
425,305
430,106
441,649
(1)
(7)
Investment securities, net of allowance for credit losses
612,203
610,075
631,162
618,246
663,718
—
(8)
Loans
1,300,069
(a)
1,128,896
1,135,647
1,112,633
1,104,155
15
18
Less: Allowance for loan losses
21,980
(b)
20,053
19,726
18,185
17,750
10
24
Loans, net of allowance for loan losses
1,278,089
1,108,843
1,115,921
1,094,448
1,086,405
15
18
Accrued interest and accounts receivable
111,561
115,316
125,189
143,905
145,442
(3)
(23)
Premises and equipment
29,493
28,266
27,734
27,199
26,770
4
10
Goodwill, MSRs and other intangible assets
64,238
62,090
60,859
60,806
59,360
3
8
Other assets
151,346
181,795
182,884
183,512
200,233
(17)
(24)
TOTAL ASSETS
$
3,868,240
$
3,744,305
$
3,665,743
$
3,773,884
$
3,841,314
3
1
LIABILITIES
Deposits
$
2,398,962
(a)
$
2,377,253
$
2,340,179
$
2,408,615
$
2,471,544
1
(3)
Federal funds purchased and securities loaned or sold
under repurchase agreements
266,272
246,396
202,613
239,939
222,719
8
20
Short-term borrowings
41,022
42,241
44,027
47,866
58,422
(3)
(30)
Trading liabilities:
Debt and equity instruments
132,264
145,153
126,835
133,175
137,891
(9)
(4)
Derivative payables
46,545
44,711
51,141
56,703
52,417
4
(11)
Accounts payable and other liabilities
286,934
275,077
300,141
300,016
313,326
4
(8)
Beneficial interests issued by consolidated VIEs
19,647
14,903
12,610
12,079
10,640
32
85
Long-term debt
364,078
(c)
295,489
295,865
287,473
288,212
23
26
TOTAL LIABILITIES
3,555,724
3,441,223
3,373,411
3,485,866
3,555,171
3
—
STOCKHOLDERS’ EQUITY
Preferred stock
27,404
27,404
27,404
32,838
32,838
—
(17)
Common stock
4,105
4,105
4,105
4,105
4,105
—
—
Additional paid-in capital
89,578
89,155
89,044
88,865
88,614
—
1
Retained earnings
317,359
306,208
296,456
288,776
282,445
4
12
Accumulated other comprehensive income/(loss) (“AOCI”)
(14,290)
(14,418)
(17,341)
(19,134)
(14,369)
1
1
Treasury stock, at cost
(111,640)
(109,372)
(107,336)
(107,432)
(107,490)
(2)
(4)
TOTAL STOCKHOLDERS’ EQUITY
312,516
303,082
292,332
288,018
286,143
3
9
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
3,868,240
$
3,744,305
$
3,665,743
$
3,773,884
$
3,841,314
3
1
(a)Includes the impacts of the First Republic acquisition. Refer to page 30 for additional information.
(b)At June 30, 2023, includes an addition to the allowance for loan losses of $1.1 billion associated with the First Republic acquisition.
(c)At June 30, 2023, includes a five-year $50 billion notional, secured note payable to the FDIC and $25 billion of assumed FHLB advances associated with the First Republic acquisition.
Page 5
JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
AVERAGE BALANCES
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
ASSETS
Deposits with banks
$
495,018
$
505,662
$
595,631
$
652,321
$
694,644
(2)
%
(29)
%
$
500,311
$
718,346
(30)
%
Federal funds sold and securities purchased under resale agreements
326,563
313,187
306,173
322,053
305,132
4
7
319,911
300,070
7
Securities borrowed
191,393
192,843
192,412
204,479
207,437
(1)
(8)
192,114
212,704
(10)
Trading assets - debt instruments
391,945
357,682
302,825
283,414
273,736
10
43
374,908
272,931
37
Investment securities
611,552
622,050
625,388
647,165
672,799
(2)
(9)
616,772
671,987
(8)
Loans
1,238,237
1,129,624
1,126,002
1,112,761
1,093,106
10
13
1,184,231
1,080,939
10
All other interest-earning assets (a)
89,072
95,709
116,640
122,756
139,040
(7)
(36)
92,372
136,902
(33)
Total interest-earning assets
3,343,780
3,216,757
3,265,071
3,344,949
3,385,894
4
(1)
3,280,619
3,393,879
(3)
Trading assets - equity and other instruments
169,558
152,081
126,138
129,221
151,309
11
12
160,868
154,093
4
Trading assets - derivative receivables
63,339
64,526
78,476
83,950
84,483
(2)
(25)
63,929
75,956
(16)
All other noninterest-earning assets
274,711
276,613
285,586
284,127
289,957
(1)
(5)
275,657
285,301
(3)
TOTAL ASSETS
$
3,851,388
$
3,709,977
$
3,755,271
$
3,842,247
$
3,911,643
4
(2)
$
3,781,073
$
3,909,229
(3)
LIABILITIES
Interest-bearing deposits
$
1,715,699
$
1,670,036
$
1,695,233
$
1,728,852
$
1,790,421
3
(4)
$
1,692,993
$
1,785,896
(5)
Federal funds purchased and securities loaned or
sold under repurchase agreements
263,718
252,310
247,934
239,582
233,376
5
13
258,045
241,749
7
Short-term borrowings (b)
35,335
38,763
39,843
45,797
50,833
(9)
(30)
37,039
49,360
(25)
Trading liabilities - debt and all other interest-bearing liabilities (c)
293,269
277,576
256,533
278,049
274,435
6
7
285,467
268,762
6
Beneficial interests issued by consolidated VIEs
15,947
13,483
12,312
11,039
10,577
18
51
14,722
10,733
37
Long-term debt
294,239
249,336
246,978
253,012
246,195
18
20
271,912
250,165
9
Total interest-bearing liabilities
2,618,207
2,501,504
2,498,833
2,556,331
2,605,837
5
—
2,560,178
2,606,665
(2)
Noninterest-bearing deposits
671,715
650,443
684,921
716,518
741,891
3
(9)
661,138
738,083
(10)
Trading liabilities - equity and other instruments
28,513
29,769
35,415
36,985
40,937
(4)
(30)
29,137
42,159
(31)
Trading liabilities - derivative payables
46,934
49,357
56,988
56,994
61,026
(5)
(23)
48,139
57,792
(17)
All other noninterest-bearing liabilities
180,730
180,303
191,929
189,637
181,128
—
—
180,517
181,116
—
TOTAL LIABILITIES
3,546,099
3,411,376
3,468,086
3,556,465
3,630,819
4
(2)
3,479,109
3,625,815
(4)
Preferred stock
27,404
27,404
28,415
32,838
32,838
—
(17)
27,404
33,180
(17)
Common stockholders’ equity
277,885
271,197
258,770
252,944
247,986
2
12
274,560
250,234
10
TOTAL STOCKHOLDERS’ EQUITY
305,289
298,601
287,185
285,782
280,824
2
9
301,964
283,414
7
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
3,851,388
$
3,709,977
$
3,755,271
$
3,842,247
$
3,911,643
4
(2)
$
3,781,073
$
3,909,229
(3)
AVERAGE RATES (d)
INTEREST-EARNING ASSETS
Deposits with banks
4.20
%
3.87
%
3.14
%
1.83
%
0.62
%
4.03
%
0.37
%
Federal funds sold and securities purchased under resale agreements
4.63
4.06
2.95
1.74
0.71
4.35
0.63
Securities borrowed
3.91
3.61
2.84
1.50
0.33
3.76
0.08
Trading assets - debt instruments
4.12
4.15
3.75
3.36
3.02
4.13
2.83
Investment securities
3.01
2.79
2.36
1.84
1.55
2.90
1.47
Loans
6.59
6.37
5.83
5.00
4.28
6.49
4.16
All other interest-earning assets (a)
8.85
7.50
5.76
3.57
1.85
8.15
1.42
Total interest-earning assets
5.01
4.68
4.03
3.05
2.22
4.85
2.04
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
2.24
1.85
1.37
0.73
0.20
2.05
0.12
Federal funds purchased and securities loaned or
sold under repurchase agreements
5.17
4.51
3.15
1.98
0.76
4.85
0.47
Short-term borrowings (b)
4.87
4.40
3.60
1.98
0.91
4.63
0.64
Trading liabilities - debt and all other interest-bearing liabilities (c)
3.25
2.88
2.38
1.49
0.69
3.07
0.50
Beneficial interests issued by consolidated VIEs
4.95
4.43
3.74
2.24
1.11
4.71
0.90
Long-term debt
5.28
5.39
4.87
3.77
2.54
5.33
2.13
Total interest-bearing liabilities
3.04
2.64
2.04
1.26
0.54
2.85
0.40
INTEREST RATE SPREAD
1.97
2.04
1.99
1.79
1.68
2.00
1.64
NET YIELD ON INTEREST-EARNING ASSETS
2.62
2.63
2.47
2.09
1.80
2.63
1.74
Memo: Net yield on interest-earning assets excluding Markets (e)
3.83
3.80
3.41
2.81
2.26
3.82
2.11
(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) Includes commercial paper.
(c) All other interest-bearing liabilities include brokerage-related customer payables.
(d) Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(e) Net yield on interest-earning assets excluding Markets is a non-GAAP financial measure. Refer to page 29 for a further discussion of this measure.
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 29 for additional information on managed basis.
The following summary table provides a reconciliation from reported U.S. GAAP results to managed basis.
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
OTHER INCOME
Other income - reported
$
3,292
$
1,007
$
1,392
$
900
$
540
227
%
NM
$
4,299
$
2,030
112
%
Fully taxable-equivalent adjustments (a)
990
867
898
663
812
14
22
1,857
1,587
17
Other income - managed
$
4,282
$
1,874
$
2,290
$
1,563
$
1,352
128
217
$
6,156
$
3,617
70
TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported
$
19,528
$
17,638
$
14,355
$
15,198
$
15,587
11
25
$
37,166
$
32,432
15
Fully taxable-equivalent adjustments
990
867
898
663
812
14
22
1,857
1,587
17
Total noninterest revenue - managed
$
20,518
$
18,505
$
15,253
$
15,861
$
16,399
11
25
$
39,023
$
34,019
15
NET INTEREST INCOME
Net interest income - reported
$
21,779
$
20,711
$
20,192
$
17,518
$
15,128
5
44
$
42,490
$
29,000
47
Fully taxable-equivalent adjustments (a)
104
120
121
112
103
(13)
1
224
201
11
Net interest income - managed
$
21,883
$
20,831
$
20,313
$
17,630
$
15,231
5
44
$
42,714
$
29,201
46
TOTAL NET REVENUE
Total net revenue - reported
$
41,307
$
38,349
$
34,547
$
32,716
$
30,715
8
34
$
79,656
$
61,432
30
Fully taxable-equivalent adjustments
1,094
987
1,019
775
915
11
20
2,081
1,788
16
Total net revenue - managed
$
42,401
$
39,336
$
35,566
$
33,491
$
31,630
8
34
$
81,737
$
63,220
29
PRE-PROVISION PROFIT
Pre-provision profit - reported
$
20,485
$
18,242
$
15,525
$
13,538
$
11,966
12
71
$
38,727
$
23,492
65
Fully taxable-equivalent adjustments
1,094
987
1,019
775
915
11
20
2,081
1,788
16
Pre-provision profit - managed
$
21,579
$
19,229
$
16,544
$
14,313
$
12,881
12
68
$
40,808
$
25,280
61
INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported
$
17,586
$
15,967
$
13,237
$
12,001
$
10,865
10
62
$
33,553
$
20,928
60
Fully taxable-equivalent adjustments
1,094
987
1,019
775
915
11
20
2,081
1,788
16
Income before income tax expense - managed
$
18,680
$
16,954
$
14,256
$
12,776
$
11,780
10
59
$
35,634
$
22,716
57
INCOME TAX EXPENSE
Income tax expense - reported
$
3,114
$
3,345
$
2,229
$
2,264
$
2,216
(7)
41
$
6,459
$
3,997
62
Fully taxable-equivalent adjustments
1,094
987
1,019
775
915
11
20
2,081
1,788
16
Income tax expense - managed
$
4,208
$
4,332
$
3,248
$
3,039
$
3,131
(3)
34
$
8,540
$
5,785
48
OVERHEAD RATIO
Overhead ratio - reported
50
%
52
%
55
%
59
%
61
%
51
%
62
%
Overhead ratio - managed
49
51
53
57
59
50
60
(a)Predominantly recognized in CIB, CB and Corporate.
Page 7
JPMORGAN CHASE & CO.
SEGMENT RESULTS - MANAGED BASIS
(in millions)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking
$
17,233
$
16,456
$
15,793
(a)
$
14,281
(a)
$
12,558
(a)
5
%
37
%
$
33,689
$
24,740
(a)
36
%
Corporate & Investment Bank
12,519
13,600
10,598
(a)
11,925
(a)
12,003
(a)
(8)
4
26,119
25,579
(a)
2
Commercial Banking
3,988
3,511
3,404
3,048
2,683
14
49
7,499
5,081
48
Asset & Wealth Management
4,943
4,784
4,588
4,539
4,306
3
15
9,727
8,621
13
Corporate
3,718
985
1,183
(302)
80
277
NM
4,703
(801)
NM
TOTAL NET REVENUE
$
42,401
$
39,336
$
35,566
$
33,491
$
31,630
8
34
$
81,737
$
63,220
29
TOTAL NONINTEREST EXPENSE
Consumer & Community Banking
$
8,313
$
8,065
$
7,912
(a)
$
7,983
(a)
$
7,658
(a)
3
9
$
16,378
$
15,313
(a)
7
Corporate & Investment Bank
6,894
7,483
6,495
(a)
6,682
(a)
6,810
(a)
(8)
1
14,377
14,173
(a)
1
Commercial Banking
1,300
1,308
1,254
1,180
1,156
(1)
12
2,608
2,285
14
Asset & Wealth Management
3,163
3,091
3,022
3,028
2,919
2
8
6,254
5,779
8
Corporate
1,152
160
339
305
206
NM
459
1,312
390
236
TOTAL NONINTEREST EXPENSE
$
20,822
$
20,107
$
19,022
$
19,178
$
18,749
4
11
$
40,929
$
37,940
8
PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking
$
8,920
$
8,391
$
7,881
$
6,298
$
4,900
6
82
$
17,311
$
9,427
84
Corporate & Investment Bank
5,625
6,117
4,103
5,243
5,193
(8)
8
11,742
11,406
3
Commercial Banking
2,688
2,203
2,150
1,868
1,527
22
76
4,891
2,796
75
Asset & Wealth Management
1,780
1,693
1,566
1,511
1,387
5
28
3,473
2,842
22
Corporate
2,566
825
844
(607)
(126)
211
NM
3,391
(1,191)
NM
PRE-PROVISION PROFIT
$
21,579
$
19,229
$
16,544
$
14,313
$
12,881
12
68
$
40,808
$
25,280
61
PROVISION FOR CREDIT LOSSES
Consumer & Community Banking
$
1,862
$
1,402
$
1,845
$
529
$
761
33
145
$
3,264
$
1,439
127
Corporate & Investment Bank
38
58
141
513
59
(34)
(36)
96
504
(81)
Commercial Banking
1,097
417
284
618
209
163
425
1,514
366
314
Asset & Wealth Management
145
28
32
(102)
44
418
230
173
198
(13)
Corporate
(243)
370
(14)
(21)
28
NM
NM
127
57
123
PROVISION FOR CREDIT LOSSES
$
2,899
$
2,275
$
2,288
$
1,537
$
1,101
27
163
$
5,174
$
2,564
102
NET INCOME/(LOSS)
Consumer & Community Banking
$
5,306
$
5,243
$
4,556
$
4,344
$
3,108
1
71
$
10,549
$
6,016
75
Corporate & Investment Bank
4,092
4,421
3,314
3,522
3,717
(7)
10
8,513
8,089
5
Commercial Banking
1,208
1,347
1,423
946
994
(10)
22
2,555
1,844
39
Asset & Wealth Management
1,226
1,367
1,134
1,219
1,004
(10)
22
2,593
2,012
29
Corporate
2,640
244
581
(294)
(174)
NM
NM
2,884
(1,030)
NM
TOTAL NET INCOME
$
14,472
$
12,622
$
11,008
$
9,737
$
8,649
15
67
$
27,094
$
16,931
60
(a) In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.
(a)The capital metrics reflect the CECL capital transition provisions. Beginning January 1, 2022, the $2.9 billion CECL capital benefit is being phased out at 25% per year over a three-year period. As of June 30, 2023 and March 31, 2023, CET1 capital reflected the remaining $1.4 billion CECL benefit; as of December 31, 2022, September 30, 2022 and June 30, 2022, CET1 capital reflected a $2.2 billion benefit. Refer to Capital Risk Management on pages 36-41 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 and pages 86-96 of the Firm’s 2022 Form 10-K for additional information.
(b)Adjusted average assets, for purposes of calculating the leverage ratios, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, and other intangible assets.
(c)Estimated.
Page 9
JPMORGAN CHASE & CO.
CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS, CONTINUED
(in millions, except ratio data)
Jun 30, 2023
Change
SIX MONTHS ENDED JUNE 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Jun 30,
2023 Change
2023
2023
2022
2022
2022
2023
2022
2023
2022
2022
TANGIBLE COMMON EQUITY (period-end) (a)
Common stockholders’ equity
$
285,112
$
275,678
$
264,928
$
255,180
$
253,305
3
13
Less: Goodwill
52,380
52,144
51,662
51,461
50,697
—
3
Less: Other intangible assets
3,629
2,191
1,224
1,205
1,224
66
196
Add: Certain deferred tax liabilities (b)
3,097
2,754
2,510
2,509
2,509
12
23
Total tangible common equity
$
232,200
$
224,097
$
214,552
$
205,023
$
203,893
4
14
TANGIBLE COMMON EQUITY (average) (a)
Common stockholders’ equity
$
277,885
$
271,197
$
258,770
$
252,944
$
247,986
2
12
$
274,560
$
250,234
10
%
Less: Goodwill
52,342
51,716
51,586
51,323
50,575
1
3
52,031
50,442
3
Less: Other intangible assets
2,191
1,296
1,217
1,208
1,119
69
96
1,746
1,007
73
Add: Certain deferred tax liabilities (b)
2,902
2,549
2,508
2,512
2,503
14
16
2,727
2,500
9
Total tangible common equity
$
226,254
$
220,734
$
208,475
$
202,925
$
198,795
3
14
$
223,510
$
201,285
11
INTANGIBLE ASSETS (period-end)
Goodwill
$
52,380
$
52,144
$
51,662
$
51,461
$
50,697
—
3
Mortgage servicing rights
8,229
7,755
7,973
8,140
7,439
6
11
Other intangible assets
3,629
2,191
1,224
1,205
1,224
66
196
Total intangible assets
$
64,238
$
62,090
$
60,859
$
60,806
$
59,360
3
8
(a)Refer to page 29 for further discussion of TCE.
(b)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.
Page 10
JPMORGAN CHASE & CO.
EARNINGS PER SHARE AND RELATED INFORMATION
(in millions, except per share and ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
EARNINGS PER SHARE
Basic earnings per share
Net income
$
14,472
$
12,622
$
11,008
$
9,737
$
8,649
15
%
67
%
$
27,094
$
16,931
60
%
Less: Preferred stock dividends
373
356
356
432
410
5
(9)
729
807
(10)
Net income applicable to common equity
14,099
12,266
10,652
9,305
8,239
15
71
26,365
16,124
64
Less: Dividends and undistributed earnings allocated to
participating securities
88
73
54
50
44
21
100
161
85
89
Net income applicable to common stockholders
$
14,011
$
12,193
$
10,598
$
9,255
$
8,195
15
71
$
26,204
$
16,039
63
Total weighted-average basic shares outstanding
2,943.8
2,968.5
2,962.9
2,961.2
2,962.2
(1)
(1)
2,956.1
2,969.6
—
Net income per share
$
4.76
$
4.11
$
3.58
$
3.13
$
2.77
16
72
$
8.86
$
5.40
64
Diluted earnings per share
Net income applicable to common stockholders
$
14,011
$
12,193
$
10,598
$
9,255
$
8,195
15
71
$
26,204
$
16,039
63
Total weighted-average basic shares outstanding
2,943.8
2,968.5
2,962.9
2,961.2
2,962.2
(1)
(1)
2,956.1
2,969.6
—
Add: Dilutive impact of unvested performance share units (“PSUs”), nondividend-earning restricted stock units (“RSUs”) and stock appreciation rights (“SARs”)
4.5
4.2
4.2
4.2
4.1
7
10
4.4
4.1
7
Total weighted-average diluted shares outstanding
2,948.3
2,972.7
2,967.1
2,965.4
2,966.3
(1)
(1)
2,960.5
2,973.7
—
Net income per share
$
4.75
$
4.10
$
3.57
$
3.12
$
2.76
16
72
$
8.85
$
5.39
64
COMMON DIVIDENDS
Cash dividends declared per share
$
1.00
$
1.00
$
1.00
$
1.00
$
1.00
—
—
$
2.00
$
2.00
—
Dividend payout ratio
21
%
24
%
28
%
32
%
36
%
22
%
37
%
COMMON SHARE REPURCHASE PROGRAM (a)
Total shares of common stock repurchased
16.7
22.0
—
—
5.0
(24)
234
38.7
23.1
68
Average price paid per share of common stock
$
137.20
$
133.67
$
—
$
—
$
124.88
3
10
$
135.19
$
135.20
—
Aggregate repurchases of common stock
2,293
2,940
—
—
622
(22)
269
5,233
3,122
68
EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans
0.5
10.0
1.2
0.6
0.5
(95)
—
10.5
11.5
(9)
Net impact of employee issuances on stockholders’ equity (b)
$
467
$
1,028
$
273
$
304
$
398
(55)
17
$
1,495
$
1,241
20
(a)The Firm is authorized to purchase up to $30 billion of common shares under its current repurchase program. In the second half of 2022, as a result of the expected increases in regulatory capital requirements, the Firm temporarily suspended share repurchases. In the first quarter of 2023, the Firm resumed repurchasing shares under its common share 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 SARs.
Page 11
JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees
$
841
$
823
$
834
$
822
$
855
2
%
(2)
%
$
1,664
$
1,660
—
%
Asset management fees
816
(d)
676
662
662
684
21
19
1,492
(d)
1,410
6
Mortgage fees and related income
274
223
90
313
377
23
(27)
497
833
(40)
Card income
483
739
694
(f)
613
(f)
621
(f)
(35)
(22)
1,222
1,162
(f)
5
All other income (a)
1,129
(d)
1,162
1,189
(f)
1,302
(f)
1,313
(f)
(3)
(14)
2,291
(d)
2,640
(f)
(13)
Noninterest revenue
3,543
3,623
3,469
3,712
3,850
(2)
(8)
7,166
7,705
(7)
Net interest income
13,690
(d)
12,833
12,324
10,569
8,708
7
57
26,523
(d)
17,035
56
TOTAL NET REVENUE
17,233
16,456
15,793
14,281
12,558
5
37
33,689
24,740
36
Provision for credit losses
1,862
(d)
1,402
1,845
529
761
33
145
3,264
(d)
1,439
127
NONINTEREST EXPENSE
Compensation expense
3,628
3,545
3,339
3,345
3,237
2
12
7,173
6,408
12
Noncompensation expense (b)
4,685
(d)
4,520
4,573
(f)
4,638
(f)
4,421
(f)
4
6
9,205
(d)
8,905
(f)
3
TOTAL NONINTEREST EXPENSE
8,313
8,065
7,912
7,983
7,658
3
9
16,378
15,313
7
Income before income tax expense
7,058
6,989
6,036
5,769
4,139
1
71
14,047
7,988
76
Income tax expense
1,752
1,746
1,480
(f)
1,425
(f)
1,031
(f)
—
70
3,498
1,972
(f)
77
NET INCOME
$
5,306
$
5,243
$
4,556
$
4,344
$
3,108
1
71
$
10,549
$
6,016
75
REVENUE BY LINE OF BUSINESS
Banking & Wealth Management
$
10,936
(e)
$
10,041
$
9,582
(f)
$
7,960
(f)
$
6,502
(f)
9
68
$
20,977
(e)
$
12,517
(f)
68
Home Lending
1,007
(e)
720
584
920
1,001
40
1
1,727
(e)
2,170
(20)
Card Services & Auto
5,290
5,695
5,627
5,401
5,055
(7)
5
10,985
10,053
9
MORTGAGE FEES AND RELATED INCOME DETAILS
Production revenue
102
75
43
93
150
36
(32)
177
361
(51)
Net mortgage servicing revenue (c)
172
148
47
220
227
16
(24)
320
472
(32)
Mortgage fees and related income
$
274
$
223
$
90
$
313
$
377
23
(27)
$
497
$
833
(40)
FINANCIAL RATIOS
ROE
38
%
40
%
35
%
34
%
(f)
24
%
39
%
23
%
Overhead ratio
48
49
50
56
61
49
62
(a)Primarily includes operating lease income and commissions and other fees. For the three months ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, operating lease income was $704 million, $741 million, $777 million, $854 million and $929 million, respectively, and $1.4 billion and $2.0 billion for the six months ended June 30, 2023 and 2022 , respectively.
(b)Included depreciation expense on leased assets of $445 million, $407 million, $463 million, $605 million and $652 million for the three months ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, respectively, and $852 million and $1.3 billion for the six months ended June 30, 2023 and 2022 , respectively.
(c)Included MSR risk management results of $25 million, $(12) million, $(98) million, $54 million and $28 million for the three months ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, respectively, and $13 million and $137 million for the six months ended June 30, 2023 and 2022 , respectively.
(d)Includes the impacts of the First Republic acquisition. Refer to page 30 for additional information.
(e)For the three and six months ended June 30, 2023, includes $596 million and $235 million for Banking & Wealth Management and Home Lending, respectively, associated with the First Republic acquisition.
(f)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. 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 headcount data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
620,193
$
506,382
$
514,085
$
500,752
$
500,219
22
%
24
%
$
620,193
$
500,219
24
%
Loans:
Banking & Wealth Management (a)
30,959
(d)
28,038
29,008
30,230
31,494
10
(2)
30,959
(d)
31,494
(2)
Home Lending (b)
262,432
(d)
172,058
172,554
174,618
176,939
53
48
262,432
(d)
176,939
48
Card Services
191,353
180,079
185,175
170,462
165,494
6
16
191,353
165,494
16
Auto
73,587
69,556
68,191
67,201
67,842
6
8
73,587
67,842
8
Total loans
558,331
449,731
454,928
442,511
441,769
24
26
558,331
441,769
26
Deposits
1,173,514
(e)
1,147,474
1,131,611
1,173,241
1,178,825
2
—
1,173,514
(e)
1,178,825
—
Equity
55,500
52,000
50,000
50,000
50,000
7
11
55,500
50,000
11
SELECTED BALANCE SHEET DATA (average)
Total assets
$
576,417
$
506,775
$
504,859
$
498,858
$
496,177
14
16
$
541,788
$
492,592
10
Loans:
Banking & Wealth Management
30,628
(f)
28,504
29,412
30,788
32,294
7
(5)
29,572
(f)
33,014
(10)
Home Lending (c)
229,569
(f)
172,124
174,487
176,852
177,330
33
29
201,005
(f)
176,911
14
Card Services
187,028
180,451
177,026
168,125
158,434
4
18
183,758
153,941
19
Auto
71,083
68,744
67,623
66,979
68,569
3
4
69,920
68,908
1
Total loans
518,308
449,823
448,548
442,744
436,627
15
19
484,255
432,774
12
Deposits
1,157,309
1,112,967
1,142,523
1,174,227
1,180,453
4
(2)
1,135,261
1,167,057
(3)
Equity
54,346
52,000
50,000
50,000
50,000
5
9
53,180
50,000
6
Headcount
137,087
135,983
135,347
133,803
130,907
1
5
137,087
130,907
5
(a)At June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022 included $163 million, $205 million, $350 million, $791 million and $1.5 billion of loans, respectively, in Business Banking under the Paycheck Protection Program (“PPP”). Refer to pages 108-109 of the Firm’s 2022 Form 10-K for further information on the PPP.
(b)At June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, Home Lending loans held-for-sale and loans at fair value were $3.9 billion, $4.2 billion, $3.0 billion, $4.1 billion and $5.2 billion, respectively.
(c)Average Home Lending loans held-for sale and loans at fair value were $5.3 billion, $3.5 billion, $4.5 billion, $5.9 billion and $8.1 billion for the three months ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, respectively, and $4.4 billion and $9.5 billion for the six months ended June 30, 2023 and 2022 , respectively.
(d)As of June 30, 2023, includes $3.4 billion and $91.3 billion for Banking & Wealth Management and Home Lending, respectively, associated with the First Republic acquisition.
(e)Includes the impacts of the First Republic acquisition. Refer to page 30 for additional information.
(f)For the three months ended June 30, 2023, includes $2.7 billion and $57.2 billion for Banking & Wealth Management and Home Lending, respectively, and for the six months ended June 30, 2023, includes $1.4 billion and $28.7 billion for Banking & Wealth Management and Home Lending, respectively, associated with the First Republic acquisition.
Page 13
JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a)(b)
$
3,823
$
3,835
$
3,899
$
3,936
$
4,217
—
%
(9)
%
$
3,823
$
4,217
(9)
%
Net charge-offs/(recoveries)
Banking & Wealth Management
92
79
95
105
81
16
14
171
170
1
Home Lending
(28)
(18)
(33)
(59)
(68)
(56)
59
(46)
(137)
66
Card Services
1,124
922
725
592
580
22
94
2,046
1,086
88
Auto
63
69
58
41
18
(9)
250
132
45
193
Total net charge-offs/(recoveries)
$
1,251
$
1,052
$
845
$
679
$
611
19
105
$
2,303
$
1,164
98
Net charge-off/(recovery) rate
Banking & Wealth Management (c)
1.20
%
1.12
%
1.28
%
1.35
%
1.01
%
1.17
%
1.04
%
Home Lending
(0.05)
(0.04)
(0.08)
(0.14)
(0.16)
(0.05)
(0.16)
Card Services
2.41
2.07
1.62
1.40
1.47
2.25
1.42
Auto
0.36
0.41
0.34
0.24
0.11
0.38
0.13
Total net charge-off/(recovery) rate
0.98
0.96
0.75
0.62
0.57
0.97
0.55
30+ day delinquency rate
Home Lending (d)(e)
0.58
%
0.81
%
0.83
%
0.78
%
0.85
%
0.58
%
0.85
%
Card Services
1.70
1.68
1.45
1.23
1.05
1.70
1.05
Auto
0.92
0.90
1.01
0.75
0.69
0.92
0.69
90+ day delinquency rate - Card Services
0.84
0.83
0.68
0.57
0.51
0.84
0.51
Allowance for loan losses
Banking & Wealth Management
$
731
$
720
$
722
$
722
$
697
2
5
$
731
$
697
5
Home Lending
777
(g)
427
867
667
785
82
(1)
777
(g)
785
(1)
Card Services
11,600
11,400
11,200
10,400
10,400
2
12
11,600
10,400
12
Auto
717
716
715
715
740
—
(3)
717
740
(3)
Total allowance for loan losses
$
13,825
$
13,263
(f)
$
13,504
$
12,504
$
12,622
4
10
$
13,825
$
12,622
10
(a)At June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $139 million, $164 million, $187 million, $219 million and $257 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.
(b)Generally excludes loans that were under payment deferral programs offered in response to the COVID-19 pandemic.
(c)At June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022 included $163 million, $205 million, $350 million, $791 million and $1.5 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 pages 108-109 of the Firm’s 2022 Form 10-K for further information on the PPP.
(d)At June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, the principal balance of loans under payment deferral programs offered in response to the COVID-19 pandemic was $177 million, $353 million, $449 million, $454 million and $513 million in Home Lending, respectively. Loans that are performing according to their modified terms are generally not considered delinquent.
(e)At June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, excluded mortgage loans 30 or more days past due and insured by U.S. government agencies of $195 million, $219 million, $258 million, $284 million and $315 million, respectively. These amounts have been excluded based upon the government guarantee.
(f)On January 1, 2023, the Firm adopted the Financial Instruments - Credit Losses: Troubled Debt Restructurings accounting guidance. The adoption of this guidance resulted in a net decrease in the allowance for loan losses of $591 million, driven by residential real estate and credit card. Refer to Credit-related information on pages 27-28, and Note 1 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 for further information.
(g)As of June 30, 2023, includes $377 million associated with the First Republic acquisition.
Page 14
JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
BUSINESS METRICS
Number of:
Branches
4,874
4,784
4,787
4,802
4,822
2
%
1
%
4,874
4,822
1
%
Active digital customers (in thousands) (a)
65,559
(f)
64,998
63,136
61,985
60,735
1
8
65,559
(f)
60,735
8
Active mobile customers (in thousands) (b)
51,963
(f)
50,933
49,710
48,904
47,436
2
10
51,963
(f)
47,436
10
Debit and credit card sales volume (in billions)
$
424.0
$
387.3
$
411.1
$
395.8
$
397.0
9
7
$
811.3
$
748.5
8
Total payments transaction volume (in trillions) (c)
1.5
(f)
1.4
1.4
1.4
1.5
7
—
2.9
(f)
2.8
4
Banking & Wealth Management
Average deposits
$
1,142,755
(g)
$
1,098,494
$
1,126,420
$
1,156,933
$
1,163,423
4
(2)
$
1,120,746
(g)
$
1,149,844
(3)
Deposit margin
2.83
%
2.78
%
2.48
%
1.83
%
1.31
%
2.81
%
1.27
%
Business Banking average loans
$
19,628
$
19,884
$
20,467
$
21,263
$
22,769
(1)
(14)
$
19,755
$
23,787
(17)
Business Banking origination volume
1,275
1,027
1,081
977
1,196
24
7
2,302
2,224
4
Client investment assets (d)
892,897
690,819
647,120
615,048
628,479
29
42
892,897
628,479
42
Number of client advisors
5,153
5,125
5,029
5,017
4,890
1
5
5,153
4,890
5
Home Lending (in billions)
Mortgage origination volume by channel
Retail
$
7.3
(h)
$
3.6
$
4.6
$
7.8
$
11.0
103
(34)
$
10.9
(h)
$
26.1
(58)
Correspondent
3.9
2.1
2.1
4.3
10.9
86
(64)
6.0
20.5
(71)
Total mortgage origination volume (e)
$
11.2
$
5.7
$
6.7
$
12.1
$
21.9
96
(49)
$
16.9
$
46.6
(64)
Third-party mortgage loans serviced (period-end)
604.5
575.9
584.3
586.7
575.6
5
5
604.5
575.6
5
MSR carrying value (period-end)
8.2
7.7
8.0
8.1
7.4
6
11
8.2
7.4
11
Card Services
Sales volume, excluding commercial card (in billions)
$
294.0
$
266.2
$
284.8
$
272.3
$
271.2
10
8
560.2
507.6
10
Net revenue rate
9.11
%
10.38
%
10.06
%
9.92
%
9.59
%
9.73
%
9.72
%
Net yield on average loans
9.31
9.89
9.78
9.81
9.50
9.60
9.73
Auto
Loan and lease origination volume (in billions)
$
12.0
$
9.2
$
7.5
$
7.5
$
7.0
30
71
$
21.2
$
15.4
38
Average auto operating lease assets
11,015
11,538
12,333
13,466
14,866
(5)
(26)
11,275
15,640
(28)
(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)Total payments transaction volume includes debit and credit card sales volume and gross outflows of ACH, ATM, teller, wires, BillPay, PayChase, Zelle, person-to-person and checks.
(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 21-23 for additional information. As of June 30, 2023, includes $150.9 billion of client investment assets associated with the First Republic acquisition.
(e)Firmwide mortgage origination volume was $13.0 billion, $6.8 billion, $8.5 billion, $15.2 billion and $27.9 billion for the three months ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, respectively, and $19.8 billion and $58.1 billion for the six months ended June 30, 2023 and 2022 , respectively.
(f)Excludes the impact of the First Republic acquisition.
(g)For the three and six months ended June 30, 2023, includes $47.2 billion and $23.7 billion, respectively, associated with the First Republic acquisition.
(h)For the three and six months ended June 30, 2023, includes $1.1 billion associated with the First Republic acquisition.
Page 15
JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
INCOME STATEMENT
REVENUE
Investment banking fees (a)
$
1,557
$
1,654
$
1,467
$
1,762
$
1,650
(6)
%
(6)
%
$
3,211
$
3,700
(13)
%
Principal transactions
6,697
7,408
4,397
5,258
5,048
(10)
33
14,105
10,271
37
Lending- and deposit-related fees
533
539
548
589
641
(1)
(17)
1,072
1,282
(16)
Commissions and other fees
1,219
1,234
1,200
1,198
1,328
(1)
(8)
2,453
2,660
(8)
Card income
400
315
353
(d)
293
(d)
337
(d)
27
19
715
603
(d)
19
All other income
396
373
147
(d)
181
(d)
(199)
(d)
6
NM
769
293
(d)
162
Noninterest revenue
10,802
11,523
8,112
9,281
8,805
(6)
23
22,325
18,809
19
Net interest income
1,717
2,077
2,486
2,644
3,198
(17)
(46)
3,794
6,770
(44)
TOTAL NET REVENUE (b)
12,519
13,600
10,598
11,925
12,003
(8)
4
26,119
25,579
2
Provision for credit losses
38
58
141
513
59
(34)
(36)
96
504
(81)
NONINTEREST EXPENSE
Compensation expense
3,461
4,085
3,091
3,311
3,510
(15)
(1)
7,546
7,516
—
Noncompensation expense
3,433
3,398
3,404
(d)
3,371
(d)
3,300
(d)
1
4
6,831
6,657
(d)
3
TOTAL NONINTEREST EXPENSE
6,894
7,483
6,495
6,682
6,810
(8)
1
14,377
14,173
1
Income before income tax expense
5,587
6,059
3,962
4,730
5,134
(8)
9
11,646
10,902
7
Income tax expense
1,495
1,638
648
(d)
1,208
(d)
1,417
(d)
(9)
6
3,133
2,813
(d)
11
NET INCOME
$
4,092
$
4,421
$
3,314
$
3,522
$
3,717
(7)
10
$
8,513
$
8,089
5
FINANCIAL RATIOS
ROE
15
%
16
%
12
%
13
%
14
%
15
%
15
%
Overhead ratio
55
55
61
56
57
(d)
55
55
Compensation expense as percentage of total net revenue
28
30
29
28
29
29
29
(d)
REVENUE BY BUSINESS
Investment Banking
$
1,494
$
1,560
$
1,389
$
1,713
$
1,351
(4)
11
$
3,054
$
3,408
(10)
Payments
2,451
2,396
2,120
(d)
2,039
(d)
1,519
(d)
2
61
4,847
3,420
(d)
42
Lending
299
267
323
323
410
12
(27)
566
731
(23)
Total Banking
4,244
4,223
3,832
4,075
3,280
—
29
8,467
7,559
12
Fixed Income Markets
4,567
5,699
3,739
4,469
4,711
(20)
(3)
10,266
10,409
(1)
Equity Markets
2,451
2,683
1,931
2,302
3,079
(9)
(20)
5,134
6,134
(16)
Securities Services
1,221
1,148
1,159
1,110
1,151
6
6
2,369
2,219
7
Credit Adjustments & Other (c)
36
(153)
(63)
(31)
(218)
NM
NM
(117)
(742)
84
Total Markets & Securities Services
8,275
9,377
6,766
7,850
8,723
(12)
(5)
17,652
18,020
(2)
TOTAL NET REVENUE
$
12,519
$
13,600
$
10,598
$
11,925
$
12,003
(8)
4
$
26,119
$
25,579
2
(a)Includes CB's share of revenue from investment banking products sold to CB clients through the CIB that is subject to a revenue sharing arrangement which is reported as a reduction in All other income.
(b)Includes tax-equivalent adjustments, predominantly due to income tax credits and other tax benefits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; and tax-exempt income from municipal bonds of $953 million, $839 million, $854 million, $626 million and $772 million for the three months ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, respectively, and $1.8 billion and $1.5 billion for the six months ended June 30, 2023 and 2022, respectively.
(c)Consists primarily of centrally managed credit valuation adjustments (“CVA”), funding valuation adjustments (“FVA”) on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.
(d)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. 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 ratio and headcount data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
1,432,054
$
1,436,237
$
1,334,296
$
1,384,618
$
1,403,558
—
%
2
%
$
1,432,054
$
1,403,558
2
%
Loans:
Loans retained (a)
194,450
187,133
187,642
180,604
171,219
4
14
194,450
171,219
14
Loans held-for-sale and loans at fair value (b)
38,959
38,335
42,304
40,357
46,032
2
(15)
38,959
46,032
(15)
Total loans
233,409
225,468
229,946
220,961
217,251
4
7
233,409
217,251
7
Equity
108,000
108,000
103,000
103,000
103,000
—
5
108,000
103,000
5
SELECTED BALANCE SHEET DATA (average)
Total assets
$
1,461,857
$
1,429,662
$
1,384,255
$
1,403,247
$
1,429,953
2
2
$
1,445,848
$
1,418,955
2
Trading assets - debt and equity instruments
533,082
488,767
406,692
386,895
411,079
9
30
511,047
415,190
23
Trading assets - derivative receivables
63,094
64,016
77,669
83,084
83,582
(1)
(25)
63,553
75,184
(15)
Loans:
Loans retained (a)
189,153
185,572
182,873
176,469
169,909
2
11
187,372
165,467
13
Loans held-for-sale and loans at fair value (b)
38,132
42,569
42,895
45,150
48,048
(10)
(21)
40,339
49,714
(19)
Total loans
227,285
228,141
225,768
221,619
217,957
—
4
227,711
215,181
6
Equity
108,000
108,000
103,000
103,000
103,000
—
5
108,000
103,000
5
Headcount
74,822
74,352
73,452
71,797
69,447
1
8
74,822
69,447
8
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
56
$
50
$
7
$
17
$
38
12
47
$
106
$
58
83
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (c)
924
832
718
583
697
11
33
924
697
33
Nonaccrual loans held-for-sale and loans at fair value (d)
818
808
848
824
840
1
(3)
818
840
(3)
Total nonaccrual loans
1,742
1,640
1,566
1,407
1,537
6
13
1,742
1,537
13
Derivative receivables
286
291
296
339
447
(2)
(36)
286
447
(36)
Assets acquired in loan satisfactions
133
86
87
85
84
55
58
133
84
58
Total nonperforming assets
2,161
2,017
1,949
1,831
2,068
7
4
2,161
2,068
4
Allowance for credit losses:
Allowance for loan losses
2,531
2,454
2,292
2,032
1,809
3
40
2,531
1,809
40
Allowance for lending-related commitments
1,207
1,301
1,448
1,582
1,358
(7)
(11)
1,207
1,358
(11)
Total allowance for credit losses
3,738
3,755
3,740
3,614
3,167
—
18
3,738
3,167
18
Net charge-off/(recovery) rate (a)(e)
0.12
%
0.11
%
0.02
%
0.04
%
0.09
%
0.11
%
0.07
%
Allowance for loan losses to period-end loans retained (a)
1.30
1.31
1.22
1.13
1.06
1.30
1.06
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (f)
1.86
1.81
1.67
1.49
1.38
1.86
1.38
Allowance for loan losses to nonaccrual loans retained (a)(c)
274
295
319
349
260
274
260
Nonaccrual loans to total period-end loans
0.75
0.73
0.68
0.64
0.71
0.75
0.71
(a)Loans retained includes credit portfolio loans, loans held by consolidated Firm-administered multi-seller conduits, trade finance loans, other held-for-investment loans and overdrafts.
(b)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.
(c)Allowance for loan losses of $145 million, $153 million, $104 million, $111 million and $130 million were held against these nonaccrual loans at June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, respectively.
(d)At June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $76 million, $99 million, $115 million, $143 million and $196 million, respectively. These amounts have been excluded based upon the government guarantee.
(e)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
(f)Management uses allowance for loan losses to period-end loans retained, excluding trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of CIB’s allowance coverage ratio.
Page 17
JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
BUSINESS METRICS
Advisory
$
540
$
756
$
738
$
848
$
664
(29)
%
(19)
%
$
1,296
$
1,465
(12)
%
Equity underwriting
318
235
250
290
245
35
30
553
494
12
Debt underwriting
699
663
479
624
741
5
(6)
1,362
1,741
(22)
Total investment banking fees
$
1,557
$
1,654
$
1,467
$
1,762
$
1,650
(6)
(6)
$
3,211
$
3,700
(13)
Client deposits and other third-party liabilities (average) (a)
647,479
633,729
649,694
669,215
722,388
2
(10)
640,642
715,791
(10)
Merchant processing volume (in billions) (b)
600.1
558.8
583.2
545.4
539.6
7
11
1,158.9
1,029.8
13
Assets under custody (“AUC”) (period-end) (in billions)
$
30,424
$
29,725
$
28,635
$
27,157
$
28,579
2
6
$
30,424
$
28,579
6
95% Confidence Level - Total CIB VaR (average)
CIB trading VaR by risk type: (c)
Fixed income
$
57
$
56
$
66
$
64
$
60
2
(5)
Foreign exchange
12
10
11
9
8
20
50
Equities
8
7
13
11
11
14
(27)
Commodities and other
12
15
18
14
14
(20)
(14)
Diversification benefit to CIB trading VaR (d)
(48)
(44)
(50)
(47)
(43)
(9)
(12)
CIB trading VaR (c)
41
44
58
51
50
(7)
(18)
Credit Portfolio VaR (e)
14
11
10
10
17
27
(18)
Diversification benefit to CIB VaR (d)
(11)
(10)
(8)
(8)
(15)
(10)
27
CIB VaR
$
44
$
45
$
60
$
53
$
52
(2)
(15)
(a)Client deposits and other third-party liabilities pertain to the Payments and Securities Services businesses.
(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 133–135 of the Firm’s 2022 Form 10-K for further information, and pages 67–69 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 for further information.
(d)Diversification benefit represents the difference between the portfolio VaR and the sum of its individual components. This reflects the non-additive nature of VaR due to imperfect correlation across CIB risks.
(e)Credit Portfolio VaR includes the derivative CVA, hedges of the CVA and hedges of the retained loan portfolio, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value. In the first quarter of 2022, in line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties was removed from Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related hedges were also removed to maintain consistency. This exposure is now reflected in other sensitivity-based measures.
Page 18
JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees
$
249
$
227
$
243
$
288
$
348
10
%
(28)
%
$
476
$
712
(33)
%
Card income
201
173
171
177
170
16
18
374
337
All other income
385
381
315
371
386
1
—
766
722
6
Noninterest revenue
835
781
729
836
904
7
(8)
1,616
1,771
(9)
Net interest income
3,153
(e)
2,730
2,675
2,212
1,779
15
77
5,883
(e)
3,310
78
TOTAL NET REVENUE (a)
3,988
3,511
3,404
3,048
2,683
14
49
7,499
5,081
48
Provision for credit losses
1,097
(e)
417
284
618
209
163
425
1,514
(e)
366
314
NONINTEREST EXPENSE
Compensation expense
656
641
607
577
559
2
17
1,297
1,112
17
Noncompensation expense
644
667
647
603
597
(3)
8
1,311
1,173
12
TOTAL NONINTEREST EXPENSE
1,300
1,308
1,254
1,180
1,156
(1)
12
2,608
2,285
14
Income before income tax expense
1,591
1,786
1,866
1,250
1,318
(11)
21
3,377
2,430
39
Income tax expense
383
439
443
304
324
(13)
18
822
586
40
NET INCOME
$
1,208
$
1,347
$
1,423
$
946
$
994
(10)
22
$
2,555
$
1,844
39
REVENUE BY PRODUCT
Lending
$
1,480
(e)
$
1,222
$
1,185
$
1,176
$
1,058
21
40
$
2,702
(e)
$
2,163
25
Payments (b)
2,248
2,028
1,989
1,618
1,253
11
79
4,276
2,275
88
Investment banking (b)(c)
213
250
196
224
234
(15)
(9)
463
453
2
Other
47
11
34
30
138
327
(66)
58
190
(69)
TOTAL NET REVENUE (a)
$
3,988
$
3,511
$
3,404
$
3,048
$
2,683
14
49
$
7,499
$
5,081
48
Investment Banking and Markets revenue, gross (d)
$
767
$
881
$
700
$
761
$
788
(13)
(3)
$
1,648
$
1,517
9
REVENUE BY CLIENT SEGMENT
Middle Market Banking
$
1,916
(f)
$
1,681
$
1,619
$
1,366
$
1,169
14
64
$
3,597
(f)
$
2,149
67
Corporate Client Banking
1,229
1,176
1,109
1,052
927
5
33
2,405
1,757
37
Commercial Real Estate Banking
806
(f)
642
666
624
590
26
37
1,448
(f)
1,171
24
Other
37
12
10
6
(3)
208
NM
49
4
NM
TOTAL NET REVENUE (a)
$
3,988
$
3,511
$
3,404
$
3,048
$
2,683
14
49
$
7,499
$
5,081
48
FINANCIAL RATIOS
ROE
16
%
18
%
22
%
14
%
15
%
17
%
14
%
Overhead ratio
33
37
37
39
43
35
45
(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 $89 million, $82 million, $100 million, $80 million and $73 million for the three months ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, respectively, and $171 million and $142 million for the six months ended June 30, 2023 and 2022, respectively.
(b)In the fourth quarter of 2022, certain revenue from CIB Markets products was reclassified from investment banking to payments. Prior-period amounts have been revised to conform with the current presentation.
(c)Includes CB’s share of revenue from investment banking products sold to CB clients through the CIB which is reported in All other income.
(d)Includes gross revenues earned by the Firm, that are subject to a revenue sharing arrangement with the CIB, for Investment Banking and Markets’ products sold to CB clients. This includes revenues related to fixed income and equity markets products. Refer to page 61 of the Firm’s 2022 Form 10-K for discussion of revenue sharing.
(e)Includes the impacts of the First Republic acquisition. Refer to page 30 for additional information.
(f)For the three and six months ended June 30, 2023, includes $48 million and $130 million for Middle Market Banking and Commercial Real Estate Banking, respectively, associated with the First Republic acquisition.
Page 19
JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
305,280
$
261,181
$
257,106
$
247,485
$
242,456
17
%
26
%
$
305,280
$
242,456
26
%
Loans:
Loans retained
282,124
(d)
238,752
233,879
231,829
223,541
18
26
282,124
(d)
223,541
26
Loans held-for-sale and loans at fair value
1,540
1,538
707
137
566
—
172
1,540
566
172
Total loans
$
283,664
$
240,290
$
234,586
$
231,966
$
224,107
18
27
$
283,664
$
224,107
27
Equity
30,000
28,500
25,000
25,000
25,000
5
20
30,000
25,000
20
Period-end loans by client segment
Middle Market Banking (a)
$
79,885
(e)
$
73,329
$
72,625
$
71,707
$
68,535
9
17
$
79,885
(e)
$
68,535
17
Corporate Client Banking
60,511
58,256
53,840
52,940
49,503
4
22
60,511
49,503
22
Commercial Real Estate Banking
142,897
(e)
108,582
107,999
107,241
105,982
32
35
142,897
(e)
105,982
35
Other
371
123
122
78
87
202
326
371
87
326
Total loans (a)
$
283,664
$
240,290
$
234,586
$
231,966
$
224,107
18
27
$
283,664
$
224,107
27
SELECTED BALANCE SHEET DATA (average)
Total assets
$
290,875
$
255,468
$
253,007
$
246,318
$
239,381
14
22
$
273,269
$
236,444
16
Loans:
Loans retained
270,091
(d)
236,808
234,654
227,539
218,478
14
24
253,542
(d)
213,536
19
Loans held-for-sale and loans at fair value
726
1,155
673
1,589
1,004
(37)
(28)
939
1,572
(40)
Total loans
$
270,817
$
237,963
$
235,327
$
229,128
$
219,482
14
23
$
254,481
$
215,108
18
Client deposits and other third-party liabilities
275,223
265,971
278,924
281,336
300,425
3
(8)
270,622
308,627
(12)
Equity
29,505
28,500
25,000
25,000
25,000
4
18
29,005
25,000
16
Average loans by client segment
Middle Market Banking
$
78,037
(f)
$
73,030
$
72,109
$
70,002
$
66,640
7
17
$
75,547
(f)
$
64,550
17
Corporate Client Banking
59,159
56,581
55,137
52,432
47,832
5
24
57,877
46,720
24
Commercial Real Estate Banking
133,394
(f)
108,143
107,831
106,546
104,890
23
27
120,838
(f)
103,701
17
Other
227
209
250
148
120
9
89
219
137
60
Total loans
$
270,817
$
237,963
$
235,327
$
229,128
$
219,482
14
23
$
254,481
$
215,108
18
Headcount
15,991
15,026
14,687
14,299
13,811
6
16
15,991
13,811
16
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
100
$
37
$
35
$
42
$
1
170
NM
$
137
$
7
NM
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (b)
1,068
918
766
836
761
16
40
1,068
761
40
Nonaccrual loans held-for-sale and loans
at fair value
—
—
—
—
—
—
—
—
—
—
Total nonaccrual loans
1,068
918
766
836
761
16
40
1,068
761
40
Assets acquired in loan satisfactions
—
—
—
7
8
—
NM
—
8
NM
Total nonperforming assets
1,068
918
766
843
769
16
39
1,068
769
39
Allowance for credit losses:
Allowance for loan losses
4,729
3,566
3,324
3,050
2,602
33
82
4,729
2,602
82
Allowance for lending-related commitments
801
966
830
864
725
(17)
10
801
725
10
Total allowance for credit losses
5,530
(d)
4,532
4,154
3,914
3,327
22
66
5,530
(d)
3,327
66
Net charge-off/(recovery) rate (c)
0.15
%
0.06
%
0.06
%
0.07
%
—
%
0.11
%
0.01
%
Allowance for loan losses to period-end loans retained
1.68
1.49
1.42
1.32
1.16
1.68
1.16
Allowance for loan losses to nonaccrual loans retained (b)
443
388
434
365
342
443
342
Nonaccrual loans to period-end total loans
0.38
0.38
0.33
0.36
0.34
0.38
0.34
(a)At June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, total loans included $65 million, $88 million, $132 million, $205 million, and $335 million of loans, respectively, under the PPP, of which $60 million, $80 million, $123 million, $187 million and $306 million, were in Middle Market Banking. Refer to pages 108-109 of the Firm’s 2022 Form 10-K for further information on the PPP.
(b)Allowance for loan losses of $205 million, $170 million, $153 million, $150 million and $74 million was held against nonaccrual loans retained at June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, respectively.
(c)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
(d)Includes the impacts of the First Republic acquisition. Refer to page 30 for additional information.
(e)At June 30, 2023, includes $6.2 billion and $33.3 billion for Middle Market Banking and Commercial Real Estate Banking, respectively, associated with the First Republic acquisition.
(f)For the three months ended June 30, 2023, includes $4.4 billion and $24.2 billion for Middle Market Banking and Commercial Real Estate Banking, respectively, and for the six months ended June 30, 2023, includes $2.2 billion and $12.2 billion for Middle Market Banking and Commercial Real Estate Banking, respectively, associated with the First Republic acquisition.
Page 20
JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
INCOME STATEMENT
REVENUE
Asset management fees
$
2,930
$
2,761
$
2,742
$
2,803
$
2,797
6
%
5
%
$
5,691
$
5,696
—
%
Commissions and other fees
196
181
234
241
240
8
(18)
377
456
(17)
All other income
232
(a)
391
82
82
47
(41)
394
623
(a)
171
264
Noninterest revenue
3,358
3,333
3,058
3,126
3,084
1
9
6,691
6,323
6
Net interest income
1,585
(a)
1,451
1,530
1,413
1,222
9
30
3,036
(a)
2,298
32
TOTAL NET REVENUE
4,943
4,784
4,588
4,539
4,306
3
15
9,727
8,621
13
Provision for credit losses
145
(a)
28
32
(102)
44
418
230
173
(a)
198
(13)
NONINTEREST EXPENSE
Compensation expense
1,746
1,735
1,649
1,649
1,508
1
16
3,481
3,038
15
Noncompensation expense
1,417
1,356
1,373
1,379
1,411
4
—
2,773
2,741
1
TOTAL NONINTEREST EXPENSE
3,163
3,091
3,022
3,028
2,919
2
8
6,254
5,779
8
Income before income tax expense
1,635
1,665
1,534
1,613
1,343
(2)
22
3,300
2,644
25
Income tax expense
409
298
400
394
339
37
21
707
632
12
NET INCOME
$
1,226
$
1,367
$
1,134
$
1,219
$
1,004
(10)
22
$
2,593
$
2,012
29
REVENUE BY LINE OF BUSINESS
Asset Management
$
2,128
$
2,434
$
2,158
$
2,209
$
2,137
(13)
—
$
4,562
$
4,451
2
Global Private Bank
2,815
(a)
2,350
2,430
2,330
2,169
20
30
5,165
(a)
4,170
24
TOTAL NET REVENUE
$
4,943
$
4,784
$
4,588
$
4,539
$
4,306
3
15
$
9,727
$
8,621
13
FINANCIAL RATIOS
ROE
29
%
34
%
26
%
28
%
23
%
31
%
23
%
Overhead ratio
64
65
66
67
68
64
67
Pretax margin ratio:
Asset Management
27
37
27
31
29
32
31
Global Private Bank
37
33
39
40
33
35
30
Asset & Wealth Management
33
35
33
36
31
34
31
Headcount
26,931
26,773
26,041
25,769
23,981
1
12
26,931
23,981
12
Number of Global Private Bank client advisors
3,214
3,189
3,137
3,110
2,866
1
12
3,214
2,866
12
(a) Includes the impacts of the First Republic acquisition. Refer to page 30 for additional information.
Page 21
Page 22
JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
247,118
$
232,516
$
232,037
$
232,303
$
235,553
6
%
5
%
$
247,118
$
235,553
5
%
Loans
222,493
(a)
211,140
214,006
214,989
218,841
5
2
222,493
(a)
218,841
2
Deposits
199,763
225,831
233,130
242,315
257,437
(12)
(22)
199,763
257,437
(22)
Equity
17,000
16,000
17,000
17,000
17,000
6
—
17,000
17,000
—
SELECTED BALANCE SHEET DATA (average)
Total assets
$
238,987
$
228,823
$
230,149
$
232,748
$
234,565
4
2
$
233,933
$
233,444
—
Loans
219,469
(b)
211,469
214,150
216,714
216,846
4
1
215,491
(b)
215,735
—
Deposits
211,872
224,354
236,965
253,026
268,861
(6)
(21)
218,078
278,256
(22)
Equity
16,670
16,000
17,000
17,000
17,000
4
(2)
16,337
17,000
(4)
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
2
$
(2)
$
(2)
$
(13)
$
9
NM
(78)
$
—
$
8
NM
Nonaccrual loans
615
477
459
467
620
29
(1)
615
620
(1)
Allowance for credit losses:
Allowance for loan losses
649
526
494
461
547
23
19
649
547
19
Allowance for lending-related commitments
39
19
20
21
22
105
77
39
22
77
Total allowance for credit losses
688
545
514
482
569
26
21
688
569
21
Net charge-off/(recovery) rate
—
%
—
%
—
%
(0.02)
%
0.02
%
—
%
0.01
%
Allowance for loan losses to period-end loans
0.29
0.25
0.23
0.21
0.25
0.29
0.25
Allowance for loan losses to nonaccrual loans
106
110
108
99
88
106
88
Nonaccrual loans to period-end loans
0.28
0.23
0.21
0.22
0.28
0.28
0.28
(a)Includes the impacts of the First Republic acquisition. Refer to page 30 for additional information.
(b)For the three and six months ended June 30, 2023, includes $9.7 billion and $4.9 billion, respectively, associated with the First Republic acquisition.
Page 23
JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)
Jun 30, 2023
Change
SIX MONTHS ENDED JUNE 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Jun 30,
2023 Change
CLIENT ASSETS
2023
2023
2022
2022
2022
2023
2022
2023
2022
2022
Assets by asset class
Liquidity
$
826
$
761
$
654
$
615
$
654
9
%
26
%
$
826
$
654
26
%
Fixed income
718
682
638
612
624
5
15
718
624
15
Equity
792
733
670
609
641
8
24
792
641
24
Multi-asset
647
627
603
577
615
3
5
647
615
5
Alternatives
205
203
201
203
209
1
(2)
205
209
(2)
TOTAL ASSETS UNDER MANAGEMENT
3,188
3,006
2,766
2,616
2,743
6
16
3,188
2,743
16
Custody/brokerage/administration/deposits
1,370
1,341
1,282
1,207
1,055
2
30
1,370
1,055
30
TOTAL CLIENT ASSETS (a)
$
4,558
$
4,347
$
4,048
$
3,823
$
3,798
5
20
$
4,558
$
3,798
20
Assets by client segment
Private Banking
$
881
$
826
$
751
$
698
$
712
7
24
$
881
$
712
24
Global Institutional
1,423
1,347
1,252
1,209
1,294
6
10
1,423
1,294
10
Global Funds
884
833
763
709
737
6
20
884
737
20
TOTAL ASSETS UNDER MANAGEMENT
$
3,188
$
3,006
$
2,766
$
2,616
$
2,743
6
16
$
3,188
$
2,743
16
Private Banking
$
2,170
$
2,090
$
1,964
$
1,848
$
1,715
4
27
$
2,170
$
1,715
27
Global Institutional
1,497
1,417
1,314
1,261
1,339
6
12
1,497
1,339
12
Global Funds
891
840
770
714
744
6
20
891
744
20
TOTAL CLIENT ASSETS (a)
$
4,558
$
4,347
$
4,048
$
3,823
$
3,798
5
20
$
4,558
$
3,798
20
Assets under management rollforward
Beginning balance
$
3,006
$
2,766
$
2,616
$
2,743
$
2,960
$
2,766
$
3,113
Net asset flows:
Liquidity
60
93
33
(36)
—
153
(52)
Fixed income
37
26
8
9
(1)
63
(4)
Equity
20
22
9
6
9
42
20
Multi-asset
3
(2)
(7)
(5)
(3)
1
3
Alternatives
1
1
—
2
1
2
6
Market/performance/other impacts
61
100
107
(103)
(223)
161
(343)
Ending balance
$
3,188
$
3,006
$
2,766
$
2,616
$
2,743
$
3,188
$
2,743
Client assets rollforward
Beginning balance
$
4,347
$
4,048
$
3,823
$
3,798
$
4,116
$
4,048
$
4,295
Net asset flows
112
152
70
(15)
(1)
264
(6)
Market/performance/other impacts
99
147
155
40
(317)
246
(491)
Ending balance
$
4,558
$
4,347
$
4,048
$
3,823
$
3,798
$
4,558
$
3,798
(a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager.
Page 24
JPMORGAN CHASE & CO.
CORPORATE
FINANCIAL HIGHLIGHTS
(in millions, except headcount data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
INCOME STATEMENT
REVENUE
Principal transactions
$
113
$
82
$
(7)
$
(76)
$
17
38
%
NM
$
195
$
(144)
NM
Investment securities losses
(900)
(868)
(874)
(959)
(153)
(4)
(488)
%
(1,768)
(547)
(223)
%
All other income
2,767
(e)
31
766
(h)
(59)
(108)
NM
NM
2,798
(e)
102
NM
Noninterest revenue
1,980
(755)
(115)
(1,094)
(244)
NM
NM
1,225
(589)
NM
Net interest income
1,738
(e)
1,740
1,298
792
324
—
436
3,478
(e)
(212)
NM
TOTAL NET REVENUE (a)
3,718
985
1,183
(302)
80
277
NM
4,703
(801)
NM
Provision for credit losses
(243)
370
(14)
(21)
28
NM
NM
127
57
123
NONINTEREST EXPENSE
1,152
(e)
160
339
305
206
NM
459
1,312
(e)
390
236
Income/(loss) before income tax expense/(benefit)
2,809
455
858
(586)
(154)
NM
NM
3,264
(1,248)
NM
Income tax expense/(benefit)
169
(f)
211
277
(292)
20
(20)
NM
380
(f)
(218)
NM
NET INCOME/(LOSS)
$
2,640
$
244
$
581
$
(294)
$
(174)
NM
NM
$
2,884
$
(1,030)
NM
MEMO:
TOTAL NET REVENUE
Treasury and Chief Investment Office (“CIO”)
1,261
1,106
603
(180)
82
14
NM
2,367
(862)
NM
Other Corporate
2,457
(e)
(121)
580
(122)
(2)
NM
NM
2,336
(e)
61
NM
TOTAL NET REVENUE
$
3,718
$
985
$
1,183
$
(302)
$
80
277
NM
$
4,703
$
(801)
NM
NET INCOME/(LOSS)
Treasury and CIO
1,057
624
531
(68)
88
69
NM
1,681
(660)
NM
Other Corporate
1,583
(e)
(380)
50
(226)
(262)
NM
NM
1,203
(e)
(370)
NM
TOTAL NET INCOME/(LOSS)
$
2,640
$
244
$
581
$
(294)
$
(174)
NM
NM
$
2,884
$
(1,030)
NM
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
1,263,595
$
1,307,989
$
1,328,219
$
1,408,726
$
1,459,528
(3)
(13)
$
1,263,595
$
1,459,528
(13)
Loans
2,172
2,267
2,181
2,206
2,187
(4)
(1)
2,172
2,187
(1)
Deposits (b)
21,083
19,458
14,203
14,449
13,191
8
60
21,083
13,191
60
Headcount
45,235
44,743
44,196
42,806
40,348
1
12
45,235
40,348
12
SUPPLEMENTAL INFORMATION
TREASURY and CIO
Investment securities losses
$
(900)
$
(868)
$
(874)
$
(959)
$
(153)
(4)
(488)
$
(1,768)
$
(547)
(223)
Available-for-sale securities (average)
198,620
202,776
195,788
209,008
252,121
(2)
(21)
200,687
278,073
(28)
Held-to-maturity securities (average) (c)
410,594
417,350
427,802
436,302
418,843
(2)
(2)
413,953
391,978
6
Investment securities portfolio (average)
$
609,214
$
620,126
$
623,590
$
645,310
$
670,964
(2)
(9)
$
614,640
$
670,051
(8)
Available-for-sale securities (period-end)
201,211
(g)
195,228
203,981
186,441
220,213
3
(9)
201,211
(g)
220,213
(9)
Held-to-maturity securities (period-end) (c)
408,941
412,827
425,305
430,106
441,649
(1)
(7)
408,941
441,649
(7)
Investment securities portfolio, net of allowance for credit losses (period-end) (d)
$
610,152
$
608,055
$
629,286
$
616,547
$
661,862
—
(8)
$
610,152
$
661,862
(8)
(a)Included tax-equivalent adjustments, predominantly driven by tax-exempt income from municipal bonds, of $45 million, $56 million, $58 million, $59 million and $60 million for the three months ended June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, respectively, and $101 million and $118 million for the six months ended June 30, 2023 and 2022 respectively.
(b)Predominantly relates to the Firm's international consumer initiatives.
(c)In January 2023, upon adoption of the Derivatives and Hedging: Fair Value Hedging - Portfolio Layer Method accounting guidance, the Firm elected to transfer $7.1 billion of HTM securities to AFS. The transferred securities were placed in a closed AFS securities portfolio as part of a portfolio layer method hedge. During 2022, the Firm transferred $78.3 billion of investment securities from AFS to HTM for capital management purposes. At June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, the estimated fair value of the HTM securities portfolio was $375.3 billion, $382.0 billion, $388.6 billion, $389.8 billion and $415.6 billion, respectively. Refer to Note 1 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 for additional information on the portfolio layer method.
(d)At June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, the allowance for credit losses on investment securities was $74 million, $61 million, $67 million, $52 million and $47 million, respectively.
(e)Includes the impacts of the First Republic acquisition. Refer to page 30 for additional information.
(f)Income taxes associated with the First Republic acquisition are reflected in the bargain purchase gain.
(g)At June 30, 2023, includes AFS securities of $25.8 billion associated with the First Republic acquisition.
(h)Included a $914 million gain on sale of Visa B shares.
Page 25
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
Jun 30, 2023
Change
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Jun 30,
2023
2023
2022
2022
2022
2023
2022
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained
$
396,195
$
300,447
$
300,753
$
301,403
$
302,631
32
%
31
%
Loans held-for-sale and loans at fair value
12,009
10,986
10,622
12,393
14,581
9
(18)
Total consumer, excluding credit card loans
408,204
311,433
311,375
313,796
317,212
31
29
Credit card loans
Loans retained
191,348
180,079
185,175
170,462
165,494
6
16
Total credit card loans
191,348
180,079
185,175
170,462
165,494
6
16
Total consumer loans
599,552
491,512
496,550
484,258
482,706
22
24
Wholesale loans (b)
Loans retained
668,145
604,324
603,670
596,208
584,265
11
14
Loans held-for-sale and loans at fair value
32,372
33,060
35,427
32,167
37,184
(2)
(13)
Total wholesale loans
700,517
637,384
639,097
628,375
621,449
10
13
Total loans
1,300,069
1,128,896
1,135,647
1,112,633
1,104,155
15
18
Derivative receivables
64,217
59,274
70,880
92,534
81,317
8
(21)
Receivables from customers (c)
42,741
43,943
49,257
54,921
58,349
(3)
(27)
Total credit-related assets
1,407,027
1,232,113
1,255,784
1,260,088
1,243,821
14
13
Lending-related commitments
Consumer, excluding credit card
50,846
37,568
33,518
34,868
40,484
35
26
Credit card (d)
881,485
861,218
821,284
798,855
774,021
2
14
Wholesale
541,089
484,539
471,980
(h)
472,950
487,500
12
11
Total lending-related commitments
1,473,420
1,383,325
1,326,782
1,306,673
1,302,005
7
13
Total credit exposure
$
2,880,447
(g)
$
2,615,438
$
2,582,566
$
2,566,761
$
2,545,826
10
13
Memo: Total by category
Consumer exposure (e)
$
1,531,883
$
1,390,298
$
1,351,352
$
1,317,981
$
1,297,211
10
18
Wholesale exposure (f)
1,348,564
1,225,140
1,231,214
1,248,780
1,248,615
10
8
Total credit exposure
$
2,880,447
$
2,615,438
$
2,582,566
$
2,566,761
$
2,545,826
10
13
(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 J.P. Morgan Wealth Management loans held in Banking & Wealth Management, 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)Includes credit exposure associated with the First Republic acquisition consisting of $104.6 billion in the Consumer credit portfolio and $98.2 billion in the Wholesale credit portfolio.
(h)Prior-period amount has been revised to conform with the current presentation.
Page 26
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
Jun 30, 2023
Change
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Jun 30,
2023
2023
2022
2022
2022
2023
2022
NONPERFORMING ASSETS (a)
Consumer nonaccrual loans
Loans retained
$
3,784
$
3,843
$
3,874
$
3,917
$
4,186
(2)
%
(10)
%
Loans held-for-sale and loans at fair value
481
452
451
461
486
6
(1)
Total consumer nonaccrual loans
4,265
4,295
4,325
4,378
4,672
(1)
(9)
Wholesale nonaccrual loans
Loans retained
2,593
2,211
1,963
1,882
2,083
17
24
Loans held-for-sale and loans at fair value
415
389
432
414
407
7
2
Total wholesale nonaccrual loans
3,008
2,600
2,395
2,296
2,490
16
21
Total nonaccrual loans (b)
7,273
6,895
6,720
6,674
7,162
5
2
Derivative receivables
286
291
296
339
447
(2)
(36)
Assets acquired in loan satisfactions
279
232
231
230
236
20
18
Total nonperforming assets
7,838
7,418
7,247
7,243
7,845
6
—
Wholesale lending-related commitments (c)
332
401
455
470
397
(17)
(16)
Total nonperforming exposure
$
8,170
$
7,819
$
7,702
$
7,713
$
8,242
4
(1)
NONACCRUAL LOAN-RELATED RATIOS
Total nonaccrual loans to total loans
0.56
%
0.61
%
0.59
%
0.60
%
0.65
%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans
1.04
1.38
1.39
1.40
1.47
Total wholesale nonaccrual loans to total
wholesale loans
0.43
0.41
0.37
0.37
0.40
(a)At June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, nonperforming assets excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $215 million, $263 million, $302 million, $362 million and $453 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. Refer to Note 12 of the Firm’s 2022 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.
Page 27
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance
$
20,053
$
19,139
(c)
$
18,185
$
17,750
$
17,192
5
%
17
%
$
19,139
$
16,386
17
%
Net charge-offs:
Gross charge-offs
1,776
1,451
1,210
1,104
1,036
22
71
3,227
2,012
60
Gross recoveries collected
(365)
(314)
(323)
(377)
(379)
(16)
4
(679)
(773)
12
Net charge-offs
1,411
1,137
887
727
657
24
115
2,548
1,239
106
Provision for loan losses
3,317
(b)
2,047
2,426
1,165
1,230
62
170
5,364
(b)
2,598
106
Other
21
4
2
(3)
(15)
425
NM
25
5
400
Ending balance
$
21,980
$
20,053
$
19,726
$
18,185
$
17,750
10
24
$
21,980
$
17,750
24
ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance
$
2,370
$
2,382
$
2,551
$
2,222
$
2,358
(1)
1
$
2,382
$
2,261
5
Provision for lending-related commitments
(188)
(b)
(13)
(169)
328
(135)
NM
(39)
(201)
(b)
(39)
(415)
Other
4
1
—
1
(1)
300
NM
5
—
NM
Ending balance
$
2,186
$
2,370
$
2,382
$
2,551
$
2,222
(8)
(2)
$
2,186
$
2,222
(2)
ALLOWANCE FOR INVESTMENT SECURITIES
$
104
$
90
$
96
$
61
$
47
16
121
$
104
$
47
121
Total allowance for credit losses (a)
$
24,270
$
22,513
$
22,204
$
20,797
$
20,019
8
21
$
24,270
$
20,019
21
NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans
0.14
%
0.18
%
0.16
%
0.10
%
0.04
%
0.16
%
0.05
%
Credit card retained loans
2.41
2.07
1.62
1.40
1.47
2.25
1.42
Total consumer retained loans
0.91
0.89
0.70
0.56
0.53
0.90
0.52
Wholesale retained loans
0.10
0.06
0.03
0.04
0.03
0.08
0.03
Total retained loans
0.47
0.43
0.33
0.27
0.25
0.45
0.24
Memo: Average retained loans
Consumer retained, excluding credit card loans
$
359,543
$
300,585
$
301,093
$
301,347
$
299,649
20
20
$
330,227
$
297,566
11
Credit card retained loans
187,027
180,451
177,026
168,125
158,434
4
18
183,757
153,941
19
Total average retained consumer loans
546,570
481,036
478,119
469,472
458,083
14
19
513,984
451,507
14
Wholesale retained loans
647,474
601,401
599,817
590,490
577,850
8
12
624,566
568,673
10
Total average retained loans
$
1,194,044
$
1,082,437
$
1,077,936
$
1,059,962
$
1,035,933
10
15
$
1,138,550
$
1,020,180
12
(a)At June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022 excludes an allowance for credit losses associated with certain accounts receivable in CIB of $17 million, $20 million, $21 million, and $30 million, respectively, and at March 31, 2023, excludes an allowance for credit losses associated with certain other assets in Corporate of $241 million.
(b)Includes $1.2 billion of provision for credit losses associated with the First Republic acquisition.
(c)On January 1, 2023, the Firm adopted the Financial Instruments - Credit Losses: Troubled Debt Restructurings accounting guidance. The adoption of this guidance eliminated the existing accounting and disclosure requirements for trouble debt restructurings (“TDRs”), including the requirement to measure the allowance using a discounted cash flow (“DCF”) methodology. The Firm elected to apply its portfolio-based allowance approach to substantially all its non-collateral dependent modified loans to troubled borrowers, resulting in a net decrease in the beginning balance of the allowance for loan losses of $587 million, predominantly driven by residential real estate and credit card. Refer to Note 1 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 for further information.
Page 28
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
Jun 30, 2023
Change
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Jun 30,
2023
2023
2022
2022
2022
2023
2022
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)
$
(971)
$
(1,030)
$
(624)
(e)
$
(702)
$
(676)
6
%
(44)
%
Portfolio-based
3,019
2,696
2,664
(e)
2,521
2,605
12
16
Total consumer, excluding credit card
2,048
(d)
1,666
2,040
1,819
1,929
23
6
Credit card
Asset-specific (a)
—
—
223
218
227
—
NM
Portfolio-based
11,600
11,400
10,977
10,182
10,173
2
14
Total credit card
11,600
11,400
11,200
10,400
10,400
2
12
Total consumer
13,648
13,066
13,240
12,219
12,329
4
11
Wholesale
Asset-specific (a)
478
437
467
450
332
9
44
Portfolio-based
7,854
6,550
6,019
5,516
5,089
20
54
Total wholesale
8,332
(d)
6,987
6,486
5,966
5,421
19
54
Total allowance for loan losses
21,980
20,053
19,726
18,185
17,750
10
24
Allowance for lending-related commitments
2,186
2,370
2,382
2,551
2,222
(8)
(2)
Allowance for investment securities
104
90
96
61
47
16
121
Total allowance for credit losses
$
24,270
$
22,513
$
22,204
$
20,797
$
20,019
8
21
CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans
0.52
%
0.55
%
0.68
%
0.60
%
0.64
%
Credit card allowance to total credit card retained loans
6.06
6.33
6.05
6.10
6.28
Wholesale allowance to total wholesale retained loans
1.25
1.16
1.07
1.00
0.93
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (b)
1.36
1.26
1.17
1.08
0.99
Total allowance to total retained loans
1.75
1.85
1.81
1.70
1.69
Consumer, excluding credit card allowance, to consumer,
Wholesale allowance to wholesale retained nonaccrual loans
321
316
330
317
260
Total allowance to total retained nonaccrual loans
345
331
338
314
283
(a)On January 1, 2023, the Firm adopted the Financial Instruments – Credit Losses: Troubled Debt Restructurings accounting guidance under which it elected to change from an asset-specific allowance approach to its non-DCF, portfolio-based allowance approach for modified loans to troubled borrowers for all portfolios except collateral-dependent loans and nonaccrual risk-rated loans, for which the asset-specific allowance approach will continue to apply.
(b)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.
(c)Refer to footnote (a) on page 26 for information on the Firm’s nonaccrual policy for credit card loans.
(d)Includes $377 million and $695 million of Consumer and Wholesale portfolio-based allowance, respectively, associated with the First Republic acquisition.
(e)Prior-period amounts have been revised to conform with the current presentation.
Page 29
JPMORGAN CHASE & CO.
NON-GAAP FINANCIAL MEASURES
Non-GAAP Financial Measures
(a)In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. The Firm’s definition of managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm and each of the reportable business segments on an FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. These financial measures allow management to assess the comparability of revenue from year-to-year arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business.
(b)Pre-provision profit is a non-GAAP financial measure which represents total net revenue less total noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.
(c)TCE, ROTCE, and TBVPS are each non-GAAP financial measures. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. TCE, ROTCE, and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.
(d)The ratio of the wholesale and CIB’s allowance for loan losses to period-end loans retained, excluding trade finance and conduits, is calculated excluding loans accounted for at fair value, loans held-for-sale, CIB’s trade finance loans and consolidated Firm-administered multi-seller conduits, as well as their related allowances, to provide a more meaningful assessment of the respective allowance coverage ratio.
(e)In addition to reviewing net interest income (“NII”), net yield, and noninterest revenue (“NIR”) on a managed basis, management also reviews these metrics excluding CIB Markets (“Markets”, which is composed of Fixed Income Markets and Equity Markets), as shown below. Markets revenue consists of principal transactions, fees, commissions and other income, as well as net interest income.These metrics, which exclude 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, apart from any volatility associated with Markets activities. In addition, management also assesses Markets business performance on a total revenue basis as offsets may occur across revenue lines. For example, securities that generate net interest income may be risk-managed by derivatives that are reflected at fair value in principal transactions revenue. Management believes these measures provide investors and analysts with alternative measures to analyze the revenue trends of the Firm. For additional information on Markets revenue, refer to page 70 of the Firm’s 2022 Form 10-K.
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q23 Change
2023 Change
(in millions, except rates)
2Q23
1Q23
4Q22
3Q22
2Q22
1Q23
2Q22
2023
2022
2022
Net interest income - reported
$
21,779
$
20,711
$
20,192
$
17,518
$
15,128
5
%
44
%
$
42,490
$
29,000
47
%
Fully taxable-equivalent adjustments
104
120
121
112
103
(13)
1
224
201
11
Net interest income - managed basis (a)
$
21,883
$
20,831
$
20,313
$
17,630
$
15,231
5
44
$
42,714
$
29,201
46
Less: Markets net interest income
(487)
(105)
315
707
1,549
(364)
NM
(592)
3,767
NM
Net interest income excluding Markets (a)
$
22,370
$
20,936
$
19,998
$
16,923
$
13,682
7
63
$
43,306
$
25,434
70
Average interest-earning assets
$
3,343,780
$
3,216,757
$
3,265,071
$
3,344,949
$
3,385,894
4
(1)
$
3,280,619
$
3,393,879
(3)
Less: Average Markets interest-earning assets
1,003,877
982,572
939,420
952,488
957,304
2
5
993,283
960,556
3
Average interest-earning assets excluding Markets
$
2,339,903
$
2,234,185
$
2,325,651
$
2,392,461
$
2,428,590
5
(4)
$
2,287,336
$
2,433,323
(6)
Net yield on average interest-earning assets - managed basis
2.62
%
2.63
%
2.47
%
2.09
%
1.80
%
2.63
%
1.74
%
Net yield on average Markets interest-earning assets
(0.19)
(0.04)
0.13
0.29
0.65
(0.12)
0.79
Net yield on average interest-earning assets excluding Markets
3.83
3.80
3.41
2.81
2.26
3.82
2.11
Noninterest revenue - reported
$
19,528
$
17,638
$
14,355
$
15,198
$
15,587
11
25
$
37,166
$
32,432
15
Fully taxable-equivalent adjustments
990
867
898
663
812
14
22
1,857
1,587
17
Noninterest revenue - managed basis
$
20,518
$
18,505
$
15,253
$
15,861
$
16,399
11
25
$
39,023
$
34,019
15
Less: Markets noninterest revenue
7,505
8,487
5,355
6,064
6,241
(12)
20
15,992
12,776
25
Noninterest revenue excluding Markets
$
13,013
$
10,018
$
9,898
$
9,797
$
10,158
30
28
$
23,031
$
21,243
8
Memo: Markets total net revenue
$
7,018
$
8,382
$
5,670
$
6,771
$
7,790
(16)
(10)
$
15,400
$
16,543
(7)
(a) Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
Page 30
JPMORGAN CHASE & CO.
SUPPLEMENTAL INFORMATION RELATED TO THE FIRST REPUBLIC ACQUISITION
(in millions)
THREE AND SIX MONTHS ENDED JUNE 30, 2023
CCB
CB
AWM
CORP
Total
SELECTED INCOME STATEMENT DATA
REVENUE
Asset management fees
$
107
$
—
$
—
$
—
$
107
All other income
105
—
174
2,762
(a)
3,041
Noninterest revenue
212
—
174
2,762
3,148
Net interest income
619
178
129
(29)
897
TOTAL NET REVENUE
831
178
303
2,733
4,045
Provision for credit losses
408
608
146
—
1,162
Noninterest expense
37
—
—
562
599
NET INCOME
293
(327)
119
2,301
2,386
SELECTED BALANCE SHEET DATA (period-end)
Loans
$
94,721
$
39,500
$
13,696
$
—
$
147,917
(b)
Deposits
68,351
—
—
—
68,351
(a)On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the “First Republic acquisition") from the Federal Deposit Insurance Corporation (“FDIC”) resulting in an estimated bargain purchase gain of $2.7 billion recorded in other income. The bargain purchase gain generally represents the excess of the estimated fair value of the net assets acquired over the purchase price. This estimate is preliminary and subject to change for up to one year from the acquisition date, as permitted by U.S. GAAP, and as the settlement with the FDIC is finalized.
(b)Excludes $1.9 billion of loans transferred to the CIB.
