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
Glossary of Terms and Acronyms (a)
(a) Refer to the Glossary of Terms and Acronyms on pages 305–311 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”) and the Glossary of Terms and Acronyms and Line of Business Metrics on pages 184-189 and pages 190-192 respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30,
2022.
JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share and ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q22 Change
2022 Change
SELECTED INCOME STATEMENT DATA
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
Reported Basis
Total net revenue
$
34,547
$
32,716
$
30,715
$
30,717
$
29,257
6
%
18
%
$
128,695
$
121,649
6
%
Total noninterest expense
19,022
19,178
18,749
19,191
17,888
(1)
6
76,140
71,343
7
Pre-provision profit (a)
15,525
13,538
11,966
11,526
11,369
15
37
52,555
50,306
4
Provision for credit losses
2,288
1,537
1,101
1,463
(1,288)
49
NM
6,389
(9,256)
NM
NET INCOME
11,008
9,737
8,649
8,282
10,399
13
6
37,676
48,334
(22)
Managed Basis (b)
Total net revenue
35,566
33,491
31,630
31,590
30,349
6
17
132,277
125,304
6
Total noninterest expense
19,022
19,178
18,749
19,191
17,888
(1)
6
76,140
71,343
7
Pre-provision profit (a)
16,544
14,313
12,881
12,399
12,461
16
33
56,137
53,961
4
Provision for credit losses
2,288
1,537
1,101
1,463
(1,288)
49
NM
6,389
(9,256)
NM
NET INCOME
11,008
9,737
8,649
8,282
10,399
13
6
37,676
48,334
(22)
EARNINGS PER SHARE DATA
Net income: Basic
$
3.58
$
3.13
$
2.77
$
2.64
$
3.33
14
8
$
12.10
$
15.39
(21)
Diluted
3.57
3.12
2.76
2.63
3.33
14
7
12.09
15.36
(21)
Average shares: Basic
2,962.9
2,961.2
2,962.2
2,977.0
2,977.3
—
—
2,965.8
3,021.5
(2)
Diluted
2,967.1
2,965.4
2,966.3
2,981.0
2,981.8
—
—
2,970.0
3,026.6
(2)
MARKET AND PER COMMON SHARE DATA
Market capitalization
$
393,484
$
306,520
$
330,237
$
400,379
$
466,206
28
(16)
$
393,484
$
466,206
(16)
Common shares at period-end
2,934.3
2,933.2
2,932.6
2,937.1
2,944.1
—
—
2,934.3
2,944.1
—
Book value per share
90.29
87.00
86.38
86.16
88.07
4
3
90.29
88.07
3
Tangible book value per share (“TBVPS”) (a)
73.12
69.90
69.53
69.58
71.53
5
2
73.12
71.53
2
Cash dividends declared per share
1.00
1.00
1.00
1.00
1.00
—
—
4.00
3.80
5
FINANCIAL RATIOS (c)
Return on common equity (“ROE”)
16
%
15
%
13
%
13
%
16
%
14
%
19
%
Return on tangible common equity (“ROTCE”) (a)
20
18
17
16
19
18
23
Return on assets
1.16
1.01
0.89
0.86
1.08
0.98
1.30
CAPITAL RATIOS (d)
Common equity Tier 1 (“CET1”) capital ratio
13.2
%
(e)
12.5
%
12.2
%
11.9
%
13.1
%
13.2
%
(e)
13.1
%
Tier 1 capital ratio
14.8
(e)
14.1
14.1
13.7
15.0
14.8
(e)
15.0
Total capital ratio
16.8
(e)
16.0
15.7
15.4
16.8
16.8
(e)
16.8
Tier 1 leverage ratio
6.6
(e)
6.2
6.2
6.2
6.5
6.6
(e)
6.5
Supplementary leverage ratio (“SLR”)
5.6
(e)
5.3
5.3
5.2
5.4
5.6
(e)
5.4
(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 9–10 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 recognized as of December 31, 2021, is being phased out at 25% per year over a three-year period. As of December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, CET1 capital reflected the remaining $2.2 billion CECL benefit. For the period ended December 31, 2021, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $2.9 billion. Refer to Capital Risk Management on pages 45-50 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022, and pages 86-96 of the Firm’s 2021 Form 10-K for additional information.
(e)Estimated.
Page 2
JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratios, headcount and where otherwise noted)
QUARTERLY TRENDS
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
3,665,743
$
3,773,884
$
3,841,314
$
3,954,687
$
3,743,567
(3)
%
(2)
%
$
3,665,743
$
3,743,567
(2)
%
Loans:
Consumer, excluding credit card loans
311,375
313,796
317,212
312,489
323,306
(1)
(4)
311,375
323,306
(4)
Credit card loans
185,175
170,462
165,494
152,283
154,296
9
20
185,175
154,296
20
Wholesale loans
639,097
628,375
621,449
608,513
600,112
2
6
639,097
600,112
6
Total Loans
1,135,647
1,112,633
1,104,155
1,073,285
1,077,714
2
5
1,135,647
1,077,714
5
Deposits:
U.S. offices:
Noninterest-bearing
644,902
688,292
714,478
721,401
711,525
(f)
(6)
(9)
644,902
711,525
(f)
(9)
Interest-bearing
1,276,346
1,304,012
1,343,802
1,412,589
1,359,932
(f)
(2)
(6)
1,276,346
1,359,932
(f)
(6)
Non-U.S. offices:
Noninterest-bearing
27,005
26,629
26,983
27,542
26,229
1
3
27,005
26,229
3
Interest-bearing
391,926
389,682
386,281
399,675
364,617
1
7
391,926
364,617
7
Total deposits
2,340,179
2,408,615
2,471,544
2,561,207
2,462,303
(3)
(5)
2,340,179
2,462,303
(5)
Long-term debt
295,865
287,473
288,212
293,239
301,005
3
(2)
295,865
301,005
(2)
Common stockholders’ equity
264,928
255,180
253,305
253,061
259,289
4
2
264,928
259,289
2
Total stockholders’ equity
292,332
288,018
286,143
285,899
294,127
1
(1)
292,332
294,127
(1)
Loans-to-deposits ratio
49
%
46
%
45
%
42
%
44
%
49
%
44
%
Headcount
293,723
288,474
278,494
273,948
271,025
2
8
293,723
271,025
8
95% CONFIDENCE LEVEL - TOTAL VaR
Average VaR (a)
$
61
$
54
$
54
$
63
$
37
13
65
LINE OF BUSINESS NET REVENUE (b)
Consumer & Community Banking
$
15,843
$
14,331
$
12,614
$
12,229
$
12,275
11
29
$
55,017
$
50,073
10
Corporate & Investment Bank
10,548
11,875
11,947
13,529
11,534
(11)
(9)
47,899
51,749
(7)
Commercial Banking
3,404
3,048
2,683
2,398
2,612
12
30
11,533
10,008
15
Asset & Wealth Management
4,588
4,539
4,306
4,315
4,473
1
3
17,748
16,957
5
Corporate
1,183
(302)
80
(881)
(545)
NM
NM
80
(3,483)
NM
TOTAL NET REVENUE
$
35,566
$
33,491
$
31,630
$
31,590
$
30,349
6
17
$
132,277
$
125,304
6
LINE OF BUSINESS NET INCOME/(LOSS)
Consumer & Community Banking (c)
$
4,542
$
4,334
$
3,100
$
2,895
$
4,147
5
10
$
14,871
$
20,930
(29)
Corporate & Investment Bank (c)
3,328
3,532
3,725
4,385
4,543
(6)
(27)
14,970
21,134
(29)
Commercial Banking (c)
1,423
946
994
850
1,234
50
15
4,213
5,246
(20)
Asset & Wealth Management (c)
1,134
1,219
1,004
1,008
1,125
(7)
1
4,365
4,737
(8)
Corporate (c)
581
(294)
(174)
(856)
(650)
NM
NM
(743)
(3,713)
80
NET INCOME
$
11,008
$
9,737
$
8,649
$
8,282
$
10,399
13
6
$
37,676
$
48,334
(22)
MEMO: SELECTED FIRMWIDE METRICS
Wealth Management (d)
Client assets (in billions)
$
2,438
$
2,302
$
2,177
$
2,389
$
2,456
6
(1)
$
2,438
$
2,456
(1)
Number of client advisors
8,166
8,127
7,756
7,614
7,463
—
9
8,166
7,463
9
J.P.Morgan Payments (e)
Total net revenue
4,423
3,762
3,130
2,595
2,579
18
72
13,909
9,861
41
Merchant processing volume (in billions)
583.2
545.4
539.6
490.2
514.9
7
13
2,158.4
1,886.7
14
Average deposits (in billions)
732
748
816
821
832
(2)
(12)
779
800
(3)
(a)Refer to Corporate & Investment Bank VaR on page 17 for a further information.
(b)Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.
(c)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation.
(d)Consists of Global Private Bank in AWM and client investment assets in J.P.Morgan Wealth Management in CCB.
(e)Predominantly in CIB and CB.
(f)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
FULL YEAR
4Q22 Change
2022 Change
REVENUE
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
Investment banking fees
$
1,418
$
1,674
$
1,586
$
2,008
$
3,494
(15)
%
(59)
%
$
6,686
$
13,216
(49)
%
Principal transactions
4,434
5,383
4,990
5,105
2,182
(18)
103
19,912
16,304
22
Lending- and deposit-related fees
1,655
1,731
1,873
1,839
1,784
(4)
(7)
7,098
7,032
1
Asset management, administration and commissions
5,006
5,069
5,240
5,362
5,549
(1)
(10)
20,677
21,029
(2)
Investment securities gains/(losses)
(874)
(959)
(153)
(394)
52
9
NM
(2,380)
(345)
NM
Mortgage fees and related income
98
314
378
460
315
(69)
(69)
1,250
2,170
(42)
Card income
1,226
1,086
1,133
975
1,100
13
11
4,420
5,102
(13)
Other income
1,392
900
540
1,490
1,180
55
18
4,322
4,830
(11)
Noninterest revenue
14,355
15,198
15,587
16,845
15,656
(6)
(8)
61,985
69,338
(11)
Interest income
33,054
25,611
18,646
15,496
15,019
29
120
92,807
57,864
60
Interest expense
12,862
8,093
3,518
1,624
1,418
59
NM
26,097
5,553
370
Net interest income
20,192
17,518
15,128
13,872
13,601
15
48
66,710
52,311
28
TOTAL NET REVENUE
34,547
32,716
30,715
30,717
29,257
6
18
128,695
121,649
6
Provision for credit losses
2,288
1,537
1,101
1,463
(1,288)
49
NM
6,389
(9,256)
NM
NONINTEREST EXPENSE
Compensation expense
10,009
10,539
10,301
10,787
9,065
(5)
10
41,636
38,567
8
Occupancy expense
1,271
1,162
1,129
1,134
1,202
9
6
4,696
4,516
4
Technology, communications and equipment expense
2,256
2,366
2,376
2,360
2,461
(5)
(8)
9,358
9,941
(6)
Professional and outside services
2,652
2,481
2,469
2,572
2,703
7
(2)
10,174
9,814
4
Marketing
1,093
1,017
881
920
947
7
15
3,911
3,036
29
Other expense (a)
1,741
1,613
1,593
1,418
1,510
8
15
6,365
5,469
16
TOTAL NONINTEREST EXPENSE
19,022
19,178
18,749
19,191
17,888
(1)
6
76,140
71,343
7
Income before income tax expense
13,237
12,001
10,865
10,063
12,657
10
5
46,166
59,562
(22)
Income tax expense
2,229
2,264
2,216
1,781
2,258
(2)
(1)
8,490
11,228
(24)
NET INCOME
$
11,008
$
9,737
$
8,649
$
8,282
$
10,399
13
6
$
37,676
$
48,334
(22)
NET INCOME PER COMMON SHARE DATA
Basic earnings per share
$
3.58
$
3.13
$
2.77
$
2.64
$
3.33
14
8
$
12.10
$
15.39
(21)
Diluted earnings per share
3.57
3.12
2.76
2.63
3.33
14
7
12.09
15.36
(21)
FINANCIAL RATIOS
Return on common equity (b)
16
%
15
%
13
%
13
%
16
%
14
%
19
%
Return on tangible common equity (b)(c)
20
18
17
16
19
18
23
Return on assets (b)
1.16
1.01
0.89
0.86
1.08
0.98
1.30
Effective income tax rate
16.8
18.9
20.4
17.7
17.8
18.4
18.9
Overhead ratio
55
59
61
62
61
59
59
(a)Included Firmwide legal expense of $27 million, $47 million, $73 million, $119 million and $137 million for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively, and $266 million and $426 million for the full year 2022 and 2021, respectively.
(b)Quarterly ratios are based upon annualized amounts.
(c)Refer to page 29 for further discussion of ROTCE.
Page 4
JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
Dec 31, 2022
Change
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Dec 31,
2022
2022
2022
2022
2021
2022
2021
ASSETS
Cash and due from banks
$
27,697
$
24,654
$
27,215
$
26,165
$
26,438
12
%
5
%
Deposits with banks
539,537
619,533
642,045
728,367
714,396
(13)
(24)
Federal funds sold and securities purchased under
resale agreements
315,592
301,878
322,156
301,875
261,698
5
21
Securities borrowed
185,369
193,216
202,393
224,852
206,071
(4)
(10)
Trading assets:
Debt and equity instruments
382,919
413,953
384,260
437,892
376,494
(7)
2
Derivative receivables
70,880
92,534
81,317
73,636
57,081
(23)
24
Available-for-sale (“AFS”) securities
205,857
188,140
222,069
312,875
308,525
9
(33)
Held-to-maturity (”HTM”) securities
425,305
430,106
441,649
366,585
363,707
(1)
17
Investment securities, net of allowance for credit losses
631,162
618,246
663,718
679,460
672,232
2
(6)
Loans
1,135,647
1,112,633
1,104,155
1,073,285
1,077,714
2
5
Less: Allowance for loan losses
19,726
18,185
17,750
17,192
16,386
8
20
Loans, net of allowance for loan losses
1,115,921
1,094,448
1,086,405
1,056,093
1,061,328
2
5
Accrued interest and accounts receivable
125,189
143,905
145,442
152,207
102,570
(13)
22
Premises and equipment
27,734
27,199
26,770
26,916
27,070
2
2
Goodwill, MSRs and other intangible assets
60,859
60,806
59,360
58,485
56,691
—
7
Other assets
182,884
183,512
200,233
188,739
181,498
—
1
TOTAL ASSETS
$
3,665,743
$
3,773,884
$
3,841,314
$
3,954,687
$
3,743,567
(3)
(2)
LIABILITIES
Deposits
$
2,340,179
$
2,408,615
$
2,471,544
$
2,561,207
$
2,462,303
(3)
(5)
Federal funds purchased and securities loaned or sold
under repurchase agreements
202,613
239,939
222,719
223,858
194,340
(16)
4
Short-term borrowings
44,027
47,866
58,422
57,586
53,594
(8)
(18)
Trading liabilities:
Debt and equity instruments
126,835
133,175
137,891
144,280
114,577
(5)
11
Derivative payables
51,141
56,703
52,417
57,803
50,116
(10)
2
Accounts payable and other liabilities
300,141
300,016
313,326
320,671
262,755
—
14
Beneficial interests issued by consolidated VIEs
12,610
12,079
10,640
10,144
10,750
4
17
Long-term debt
295,865
287,473
288,212
293,239
301,005
3
(2)
TOTAL LIABILITIES
3,373,411
3,485,866
3,555,171
3,668,788
3,449,440
(3)
(2)
STOCKHOLDERS’ EQUITY
Preferred stock
27,404
32,838
32,838
32,838
34,838
(17)
(21)
Common stock
4,105
4,105
4,105
4,105
4,105
—
—
Additional paid-in capital
89,044
88,865
88,614
88,260
88,415
—
1
Retained earnings
296,456
288,776
282,445
277,177
272,268
3
9
Accumulated other comprehensive income/(loss) (“AOCI”)
(17,341)
(19,134)
(14,369)
(9,567)
(84)
9
NM
Treasury stock, at cost
(107,336)
(107,432)
(107,490)
(106,914)
(105,415)
—
(2)
TOTAL STOCKHOLDERS’ EQUITY
292,332
288,018
286,143
285,899
294,127
1
(1)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
3,665,743
$
3,773,884
$
3,841,314
$
3,954,687
$
3,743,567
(3)
(2)
Page 5
JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
QUARTERLY TRENDS
FULL YEAR
4Q22 Change
2022 Change
AVERAGE BALANCES
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
ASSETS
Deposits with banks
$
595,631
$
652,321
$
694,644
$
742,311
$
767,713
(9)
%
(22)
%
$
670,773
$
719,772
(7)
%
Federal funds sold and securities purchased under resale agreements
306,173
322,053
305,132
294,951
268,953
(5)
14
307,150
269,231
14
Securities borrowed
192,412
204,479
207,437
218,030
207,059
(6)
(7)
205,516
190,655
8
Trading assets - debt instruments
302,825
283,414
273,736
272,116
260,555
7
16
283,108
283,829
—
Investment securities
625,388
647,165
672,799
671,165
642,675
(3)
(3)
653,985
593,977
10
Loans
1,126,002
1,112,761
1,093,106
1,068,637
1,060,254
1
6
1,100,318
1,035,399
6
All other interest-earning assets (a)
116,640
122,756
139,040
134,741
130,646
(5)
(11)
128,229
123,079
4
Total interest-earning assets
3,265,071
3,344,949
3,385,894
3,401,951
3,337,855
(2)
(2)
3,349,079
3,215,942
4
Trading assets - equity and other instruments
126,138
129,221
151,309
156,908
150,770
(2)
(16)
140,778
172,822
(19)
Trading assets - derivative receivables
78,476
83,950
84,483
67,334
66,024
(7)
19
78,606
69,101
14
All other noninterest-earning assets
285,586
284,127
289,957
280,595
277,006
1
3
285,077
267,337
7
TOTAL ASSETS
$
3,755,271
$
3,842,247
$
3,911,643
$
3,906,788
$
3,831,655
(2)
(2)
$
3,853,540
$
3,725,202
3
LIABILITIES
Interest-bearing deposits
$
1,695,233
$
1,728,852
$
1,790,421
$
1,781,320
$
1,731,609
(g)
(2)
(2)
$
1,748,666
$
1,672,669
(g)
5
Federal funds purchased and securities loaned or
sold under repurchase agreements
247,934
239,582
233,376
250,215
234,504
3
6
242,762
259,302
(6)
Short-term borrowings (b)
39,843
45,797
50,833
47,871
46,456
(13)
(14)
46,063
44,618
3
Trading liabilities - debt and all other interest-bearing liabilities (c)
256,533
278,049
274,435
263,025
246,675
(8)
4
268,019
241,431
11
Beneficial interests issued by consolidated VIEs
12,312
11,039
10,577
10,891
11,906
12
3
11,208
14,595
(23)
Long-term debt
246,978
253,012
246,195
254,180
255,710
(2)
(3)
250,080
250,378
—
Total interest-bearing liabilities
2,498,833
2,556,331
2,605,837
2,607,502
2,526,860
(2)
(1)
2,566,798
2,482,993
3
Noninterest-bearing deposits
684,921
716,518
741,891
734,233
736,203
(g)
(4)
(7)
719,249
674,485
(g)
7
Trading liabilities - equity and other instruments
35,415
36,985
40,937
43,394
40,645
(4)
(13)
39,155
36,656
7
Trading liabilities - derivative payables
56,988
56,994
61,026
54,522
55,063
—
3
57,388
60,318
(5)
All other noninterest-bearing liabilities
191,929
189,637
181,128
181,105
184,241
1
4
185,989
186,755
—
TOTAL LIABILITIES
3,468,086
3,556,465
3,630,819
3,620,756
3,543,012
(2)
(2)
3,568,579
3,441,207
4
Preferred stock
28,415
32,838
32,838
33,526
34,838
(13)
(18)
31,893
33,027
(3)
Common stockholders’ equity
258,770
252,944
247,986
252,506
253,805
2
2
253,068
250,968
1
TOTAL STOCKHOLDERS’ EQUITY
287,185
285,782
280,824
286,032
288,643
—
(1)
284,961
283,995
—
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
3,755,271
$
3,842,247
$
3,911,643
$
3,906,788
$
3,831,655
(2)
(2)
$
3,853,540
$
3,725,202
3
AVERAGE RATES (d)
INTEREST-EARNING ASSETS
Deposits with banks
3.14
%
1.83
%
0.62
%
0.13
%
0.09
%
1.35
%
0.07
%
Federal funds sold and securities purchased under resale agreements
2.95
1.74
0.71
0.55
0.47
1.51
0.36
Securities borrowed (e)
2.84
1.50
0.33
(0.16)
(0.28)
1.09
(0.20)
Trading assets - debt instruments
3.75
3.36
3.02
2.65
2.52
3.21
2.42
Investment securities
2.36
1.84
1.55
1.38
1.26
1.77
1.31
Loans
5.83
5.00
4.28
4.05
4.04
4.81
4.02
All other interest-earning assets (a)
5.76
3.57
1.85
0.97
0.87
2.93
0.73
Total interest-earning assets
4.03
3.05
2.22
1.86
1.80
2.78
1.81
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
1.37
0.73
0.20
0.04
0.03
0.58
0.03
Federal funds purchased and securities loaned or
sold under repurchase agreements
3.33
2.10
0.80
0.19
0.13
1.62
0.11
Short-term borrowings (b)
2.47
1.35
0.73
0.32
0.26
1.16
0.28
Trading liabilities - debt and all other interest-bearing liabilities (c)(e)
2.38
1.49
0.69
0.30
0.20
1.21
0.11
Beneficial interests issued by consolidated VIEs
3.74
2.24
1.11
0.69
0.56
2.02
0.57
Long-term debt
4.87
3.77
2.54
1.72
1.61
3.23
1.71
Total interest-bearing liabilities
2.04
1.26
0.54
0.25
0.22
1.02
0.22
INTEREST RATE SPREAD
1.99
1.79
1.68
1.61
1.58
1.76
1.59
NET YIELD ON INTEREST-EARNING ASSETS
2.47
2.09
1.80
1.67
1.63
2.00
1.64
Memo: Net yield on interest-earning assets excluding Markets (f)
3.41
2.81
2.26
1.95
1.90
2.60
1.91
(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) Negative interest and rates reflect the net impact of interest earned offset by fees paid on client-driven prime brokerage securities borrowed transactions.
(f) 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.
(g) Prior-period amounts have been revised to conform with the current presentation.
Page 6
JPMORGAN CHASE & CO.
RECONCILIATION FROM REPORTED TO MANAGED BASIS
(in millions, except ratios)
The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the U.S. (“U.S. GAAP”). That presentation, which is referred to as “reported” basis, provides the reader with an understanding of the Firm’s results that can be tracked consistently from year-to-year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. Refer to the notes on Non-GAAP Financial Measures on page 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
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
OTHER INCOME
Other income - reported
$
1,392
$
900
$
540
$
1,490
$
1,180
55
%
18
%
$
4,322
$
4,830
(11)
%
Fully taxable-equivalent adjustments (a)
898
663
812
775
984
35
(9)
3,148
3,225
(2)
Other income - managed
$
2,290
$
1,563
$
1,352
$
2,265
$
2,164
47
6
$
7,470
$
8,055
(7)
TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported
$
14,355
$
15,198
$
15,587
$
16,845
$
15,656
(6)
(8)
$
61,985
$
69,338
(11)
Fully taxable-equivalent adjustments
898
663
812
775
984
35
(9)
3,148
3,225
(2)
Total noninterest revenue - managed
$
15,253
$
15,861
$
16,399
$
17,620
$
16,640
(4)
(8)
$
65,133
$
72,563
(10)
NET INTEREST INCOME
Net interest income - reported
$
20,192
$
17,518
$
15,128
$
13,872
$
13,601
15
48
$
66,710
$
52,311
28
Fully taxable-equivalent adjustments (a)
121
112
103
98
108
8
12
434
430
1
Net interest income - managed
$
20,313
$
17,630
$
15,231
$
13,970
$
13,709
15
48
$
67,144
$
52,741
27
TOTAL NET REVENUE
Total net revenue - reported
$
34,547
$
32,716
$
30,715
$
30,717
$
29,257
6
18
$
128,695
$
121,649
6
Fully taxable-equivalent adjustments
1,019
775
915
873
1,092
31
(7)
3,582
3,655
(2)
Total net revenue - managed
$
35,566
$
33,491
$
31,630
$
31,590
$
30,349
6
17
$
132,277
$
125,304
6
PRE-PROVISION PROFIT
Pre-provision profit - reported
$
15,525
$
13,538
$
11,966
$
11,526
$
11,369
15
37
$
52,555
$
50,306
4
Fully taxable-equivalent adjustments
1,019
775
915
873
1,092
31
(7)
3,582
3,655
(2)
Pre-provision profit - managed
$
16,544
$
14,313
$
12,881
$
12,399
$
12,461
16
33
$
56,137
$
53,961
4
INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported
$
13,237
$
12,001
$
10,865
$
10,063
$
12,657
10
5
$
46,166
$
59,562
(22)
Fully taxable-equivalent adjustments
1,019
775
915
873
1,092
31
(7)
3,582
3,655
(2)
Income before income tax expense - managed
$
14,256
$
12,776
$
11,780
$
10,936
$
13,749
12
4
$
49,748
$
63,217
(21)
INCOME TAX EXPENSE
Income tax expense - reported
$
2,229
$
2,264
$
2,216
$
1,781
$
2,258
(2)
(1)
$
8,490
$
11,228
(24)
Fully taxable-equivalent adjustments
1,019
775
915
873
1,092
31
(7)
3,582
3,655
(2)
Income tax expense - managed
$
3,248
$
3,039
$
3,131
$
2,654
$
3,350
7
(3)
$
12,072
$
14,883
(19)
OVERHEAD RATIO
Overhead ratio - reported
55
%
59
%
61
%
62
%
61
%
59
%
59
%
Overhead ratio - managed
53
57
59
61
59
58
57
(a)Predominantly recognized in CIB, CB and Corporate.
Page 7
JPMORGAN CHASE & CO.
SEGMENT RESULTS - MANAGED BASIS
(in millions)
QUARTERLY TRENDS
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking
$
15,843
$
14,331
$
12,614
$
12,229
$
12,275
11
%
29
%
$
55,017
$
50,073
10
%
Corporate & Investment Bank
10,548
11,875
11,947
13,529
11,534
(11)
(9)
47,899
51,749
(7)
Commercial Banking
3,404
3,048
2,683
2,398
2,612
12
30
11,533
10,008
15
Asset & Wealth Management
4,588
4,539
4,306
4,315
4,473
1
3
17,748
16,957
5
Corporate
1,183
(302)
80
(881)
(545)
NM
NM
80
(3,483)
NM
TOTAL NET REVENUE
$
35,566
$
33,491
$
31,630
$
31,590
$
30,349
6
17
$
132,277
$
125,304
6
TOTAL NONINTEREST EXPENSE
Consumer & Community Banking
$
7,981
$
8,047
$
7,723
$
7,720
$
7,754
(1)
3
$
31,471
$
29,256
8
Corporate & Investment Bank
6,426
6,618
6,745
7,298
5,827
(3)
10
27,087
25,325
7
Commercial Banking
1,254
1,180
1,156
1,129
1,059
6
18
4,719
4,041
17
Asset & Wealth Management
3,022
3,028
2,919
2,860
2,997
—
1
11,829
10,919
8
Corporate
339
305
206
184
251
11
35
1,034
1,802
(43)
TOTAL NONINTEREST EXPENSE
$
19,022
$
19,178
$
18,749
$
19,191
$
17,888
(1)
6
$
76,140
$
71,343
7
PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking
$
7,862
$
6,284
$
4,891
$
4,509
$
4,521
25
74
$
23,546
$
20,817
13
Corporate & Investment Bank
4,122
5,257
5,202
6,231
5,707
(22)
(28)
20,812
26,424
(21)
Commercial Banking
2,150
1,868
1,527
1,269
1,553
15
38
6,814
5,967
14
Asset & Wealth Management
1,566
1,511
1,387
1,455
1,476
4
6
5,919
6,038
(2)
Corporate
844
(607)
(126)
(1,065)
(796)
NM
NM
(954)
(5,285)
82
PRE-PROVISION PROFIT
$
16,544
$
14,313
$
12,881
$
12,399
$
12,461
16
33
$
56,137
$
53,961
4
PROVISION FOR CREDIT LOSSES
Consumer & Community Banking
$
1,845
$
529
$
761
$
678
$
(1,060)
249
NM
$
3,813
$
(6,989)
NM
Corporate & Investment Bank
141
513
59
445
(126)
(73)
NM
1,158
(1,174)
NM
Commercial Banking
284
618
209
157
(89)
(54)
NM
1,268
(947)
NM
Asset & Wealth Management
32
(102)
44
154
(36)
NM
NM
128
(227)
NM
Corporate
(14)
(21)
28
29
23
33
NM
22
81
(73)
PROVISION FOR CREDIT LOSSES
$
2,288
$
1,537
$
1,101
$
1,463
$
(1,288)
49
NM
$
6,389
$
(9,256)
NM
NET INCOME/(LOSS)
Consumer & Community Banking
$
4,542
$
4,334
$
3,100
$
2,895
$
4,147
(a)
5
10
$
14,871
$
20,930
(29)
Corporate & Investment Bank
3,328
3,532
3,725
4,385
4,543
(a)
(6)
(27)
14,970
21,134
(29)
Commercial Banking
1,423
946
994
850
1,234
(a)
50
15
4,213
5,246
(20)
Asset & Wealth Management
1,134
1,219
1,004
1,008
1,125
(a)
(7)
1
4,365
4,737
(8)
Corporate
581
(294)
(174)
(856)
(650)
(a)
NM
NM
(743)
(3,713)
80
TOTAL NET INCOME
$
11,008
$
9,737
$
8,649
$
8,282
$
10,399
13
6
$
37,676
$
48,334
(22)
(a)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. 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 recognized as of December 31, 2021, is being phased out at 25% per year over a three-year period. As of December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, CET1 capital reflected the remaining $2.2 billion CECL benefit. For the period ended December 31, 2021, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $2.9 billion. Refer to Capital Risk Management on pages 45-50 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022, and pages 86-96 of the Firm’s 2021 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)
Dec 31, 2022
Change
FULL YEAR
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Dec 31,
2022 Change
2022
2022
2022
2022
2021
2022
2021
2022
2021
2021
TANGIBLE COMMON EQUITY (period-end) (a)
Common stockholders’ equity
$
264,928
$
255,180
$
253,305
$
253,061
$
259,289
4
2
Less: Goodwill
51,662
51,461
50,697
50,298
50,315
—
3
Less: Other intangible assets
1,224
1,205
1,224
893
882
2
39
Add: Certain deferred tax liabilities (b)
2,510
2,509
2,509
2,496
2,499
—
—
Total tangible common equity
$
214,552
$
205,023
$
203,893
$
204,366
$
210,591
5
2
TANGIBLE COMMON EQUITY (average) (a)
Common stockholders’ equity
$
258,770
$
252,944
$
247,986
$
252,506
$
253,805
2
2
$
253,068
$
250,968
1
%
Less: Goodwill
51,586
51,323
50,575
50,307
50,362
1
2
50,952
49,584
3
Less: Other intangible assets
1,217
1,208
1,119
896
896
1
36
1,112
876
27
Add: Certain deferred tax liabilities (b)
2,508
2,512
2,503
2,498
2,502
—
—
2,505
2,474
1
Total tangible common equity
$
208,475
$
202,925
$
198,795
$
203,801
$
205,049
3
2
$
203,509
$
202,982
—
INTANGIBLE ASSETS (period-end)
Goodwill
$
51,662
$
51,461
$
50,697
$
50,298
$
50,315
—
3
Mortgage servicing rights
7,973
8,140
7,439
7,294
5,494
(2)
45
Other intangible assets
1,224
1,205
1,224
893
882
2
39
Total intangible assets
$
60,859
$
60,806
$
59,360
$
58,485
$
56,691
—
7
(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
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
EARNINGS PER SHARE
Basic earnings per share
Net income
$
11,008
$
9,737
$
8,649
$
8,282
$
10,399
13
%
6
%
$
37,676
$
48,334
(22)
%
Less: Preferred stock dividends
356
432
410
397
426
(18)
(16)
1,595
1,600
—
Net income applicable to common equity
10,652
9,305
8,239
7,885
9,973
14
7
36,081
46,734
(23)
Less: Dividends and undistributed earnings allocated to
participating securities
54
50
44
40
46
8
17
189
231
(18)
Net income applicable to common stockholders
$
10,598
$
9,255
$
8,195
$
7,845
$
9,927
15
7
$
35,892
$
46,503
(23)
Total weighted-average basic shares outstanding
2,962.9
2,961.2
2,962.2
2,977.0
2,977.3
—
—
2,965.8
3,021.5
(2)
Net income per share
$
3.58
$
3.13
$
2.77
$
2.64
$
3.33
14
8
$
12.10
$
15.39
(21)
Diluted earnings per share
Net income applicable to common stockholders
$
10,598
$
9,255
$
8,195
$
7,845
$
9,927
15
7
$
35,892
$
46,503
(23)
Total weighted-average basic shares outstanding
2,962.9
2,961.2
2,962.2
2,977.0
2,977.3
—
—
2,965.8
3,021.5
(2)
Add: Dilutive impact of stock appreciation rights (“SARs”) and employee stock options, unvested performance share units (“PSUs”) and nondividend-earning restricted stock units (“RSUs”)
4.2
4.2
4.1
4.0
4.5
—
(7)
4.2
5.1
(18)
Total weighted-average diluted shares outstanding
2,967.1
2,965.4
2,966.3
2,981.0
2,981.8
—
—
2,970.0
3,026.6
(2)
Net income per share
$
3.57
$
3.12
$
2.76
$
2.63
$
3.33
14
7
$
12.09
$
15.36
(21)
COMMON DIVIDENDS
Cash dividends declared per share
$
1.00
$
1.00
$
1.00
$
1.00
$
1.00
—
—
$
4.00
$
3.80
5
Dividend payout ratio
28
%
32
%
36
%
38
%
30
%
33
%
25
%
COMMON SHARE REPURCHASE PROGRAM (a)
Total shares of common stock repurchased
—
—
5.0
18.1
12.1
—
NM
23.1
119.7
(81)
Average price paid per share of common stock
$
—
$
—
$
124.88
$
138.04
$
165.47
—
NM
$
135.20
$
154.08
(12)
Aggregate repurchases of common stock
—
—
622
2,500
2,008
—
NM
3,122
18,448
(83)
EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans
1.2
0.6
0.5
11.0
1.1
100
9
13.3
14.5
(8)
Net impact of employee issuances on stockholders’ equity (b)
$
273
$
304
$
398
$
843
$
147
(10)
86
$
1,818
$
1,361
34
(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.
(b)The net impact of employee issuances on stockholders’ equity is driven by the cost of equity compensation awards that is recognized over the applicable vesting periods. The cost is partially offset by tax impacts related to the distribution of shares and the exercise of employee stock options and SARs.
Page 11
JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees
$
834
$
822
$
855
$
805
$
753
1
%
11
%
$
3,316
$
3,034
9
%
Asset management, administration and commissions
939
939
947
929
950
—
(1)
3,754
3,514
7
Mortgage fees and related income
90
313
377
456
312
(71)
(71)
1,236
2,159
(43)
Card income
746
665
678
590
675
12
11
2,679
3,563
(25)
All other income (a)
910
1,023
1,049
1,122
1,144
(11)
(20)
4,104
5,016
(18)
Noninterest revenue
3,519
3,762
3,906
3,902
3,834
(6)
(8)
15,089
17,286
(13)
Net interest income
12,324
10,569
8,708
8,327
8,441
17
46
39,928
32,787
22
TOTAL NET REVENUE
15,843
14,331
12,614
12,229
12,275
11
29
55,017
50,073
10
Provision for credit losses
1,845
529
761
678
(1,060)
249
NM
3,813
(6,989)
NM
NONINTEREST EXPENSE
Compensation expense
3,339
3,345
3,237
3,171
3,177
—
5
13,092
12,142
8
Noncompensation expense (b)
4,642
4,702
4,486
4,549
4,577
(1)
1
18,379
17,114
7
TOTAL NONINTEREST EXPENSE
7,981
8,047
7,723
7,720
7,754
(1)
3
31,471
29,256
8
Income before income tax expense
6,017
5,755
4,130
3,831
5,581
5
8
19,733
27,806
(29)
Income tax expense
1,475
1,421
1,030
936
1,434
(f)
4
3
4,862
6,876
(29)
NET INCOME
$
4,542
$
4,334
$
3,100
$
2,895
$
4,147
(f)
5
10
$
14,871
$
20,930
(29)
REVENUE BY LINE OF BUSINESS
Banking & Wealth Management (c)
$
9,632
$
8,010
$
6,558
$
6,062
$
6,172
20
56
$
30,262
$
23,980
26
Home Lending
584
920
1,001
1,169
1,084
(37)
(46)
3,674
5,291
(31)
Card Services & Auto (d)
5,627
5,401
5,055
4,998
5,019
4
12
21,081
20,802
1
MORTGAGE FEES AND RELATED INCOME DETAILS
Production revenue
43
93
150
211
327
(54)
(87)
497
2,215
(78)
Net mortgage servicing revenue (e)
47
220
227
245
(15)
(79)
NM
739
(56)
NM
Mortgage fees and related income
$
90
$
313
$
377
$
456
$
312
(71)
(71)
$
1,236
$
2,159
(43)
FINANCIAL RATIOS
ROE
35
%
33
%
24
%
23
%
32
%
(f)
29
%
41
%
Overhead ratio
50
56
61
63
63
57
58
(a)Included operating lease income of $777 million, $854 million, $929 million, $1.0 billion and $1.1 billion for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively, and $3.6 billion and $4.8 billion for the full year 2022 and 2021, respectively.
(b)Included depreciation expense on leased assets of $463 million, $605 million, $652 million, $694 million and $767 million for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively, and $2.4 billion and $3.3 billion for the full year 2022 and 2021, respectively.
(c)In the fourth quarter of 2022, Consumer & Business Banking was renamed Banking & Wealth Management.
(d)In the fourth quarter of 2022, Card & Auto was renamed Card Services & Auto.
(e)Included MSR risk management results of $(98) million, $54 million, $28 million, $109 million and $(162) million for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively, and $93 million and $(525) million for the full year 2022 and 2021, respectively.
(f)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. 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
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
514,085
$
500,752
$
500,219
$
486,183
$
500,370
3
%
3
%
$
514,085
$
500,370
3
%
Loans:
Banking & Wealth Management (a)
29,008
30,230
31,494
32,772
35,095
(4)
(17)
29,008
35,095
(17)
Home Lending (b)
172,554
174,618
176,939
172,025
180,529
(1)
(4)
172,554
180,529
(4)
Card Services
185,175
170,462
165,494
152,283
154,296
9
20
185,175
154,296
20
Auto
68,191
67,201
67,842
69,251
69,138
1
(1)
68,191
69,138
(1)
Total loans
454,928
442,511
441,769
426,331
439,058
3
4
454,928
439,058
4
Deposits
1,131,611
1,173,241
1,178,825
1,189,308
1,148,110
(4)
(1)
1,131,611
1,148,110
(1)
Equity
50,000
50,000
50,000
50,000
50,000
—
—
50,000
50,000
—
SELECTED BALANCE SHEET DATA (average)
Total assets
$
504,859
$
498,858
$
496,177
$
488,967
$
497,675
1
1
$
497,263
$
489,771
2
Loans:
Banking & Wealth Management
29,412
30,788
32,294
33,742
37,299
(4)
(21)
31,545
44,906
(30)
Home Lending (c)
174,487
176,852
177,330
176,488
183,343
(1)
(5)
176,285
181,049
(3)
Card Services
177,026
168,125
158,434
149,398
148,471
5
19
163,335
140,405
16
Auto
67,623
66,979
68,569
69,250
68,549
1
(1)
68,098
67,624
1
Total loans
448,548
442,744
436,627
428,878
437,662
1
2
439,263
433,984
1
Deposits
1,142,523
1,174,227
1,180,453
1,153,513
1,114,329
(3)
3
1,162,680
1,054,956
10
Equity
50,000
50,000
50,000
50,000
50,000
—
—
50,000
50,000
—
Headcount
135,347
133,803
130,907
129,268
128,863
1
5
135,347
128,863
5
(a)At December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021 included $350 million, $791 million, $1.5 billion, $2.9 billion and $5.4 billion of loans, respectively, in Business Banking under the Paycheck Protection Program (“PPP”). Refer to page 109 of the Firm’s 2021 Form 10-K for further information on the PPP.
(b)At December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, Home Lending loans held-for-sale and loans at fair value were $3.0 billion, $4.1 billion, $5.2 billion, $5.8 billion and $14.9 billion, respectively.
(c)Average Home Lending loans held-for sale and loans at fair value were $4.5 billion, $5.9 billion, $8.1 billion, $10.8 billion and $17.8 billion for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively, and $7.3 billion and $15.4 billion for the full year 2022 and 2021, respectively.
Page 13
JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a)(b)(c)
$
3,899
$
3,936
$
4,217
$
4,531
$
4,875
(1)
%
(20)
%
$
3,899
$
4,875
(20)
%
Net charge-offs/(recoveries)
Banking & Wealth Management
95
105
81
89
86
(10)
10
370
289
28
Home Lending
(33)
(59)
(68)
(69)
(71)
44
54
(229)
(275)
17
Card Services
725
592
580
506
479
22
51
2,403
2,712
(11)
Auto
58
41
18
27
21
41
176
144
35
311
Total net charge-offs/(recoveries)
$
845
$
679
$
611
$
553
$
515
24
64
$
2,688
$
2,761
(3)
Net charge-off/(recovery) rate
Banking & Wealth Management (d)
1.28
%
1.35
%
1.01
%
1.07
%
0.91
%
1.17
%
0.64
%
Home Lending
(0.08)
(0.14)
(0.16)
(0.17)
(0.17)
(0.14)
(0.17)
Card Services
1.62
1.40
1.47
1.37
1.28
1.47
1.94
Auto
0.34
0.24
0.11
0.16
0.12
0.21
0.05
Total net charge-off/(recovery) rate
0.75
0.62
0.57
0.54
0.49
0.62
0.66
30+ day delinquency rate
Home Lending (e)(f)
0.83
%
0.78
%
0.85
%
1.03
%
1.25
%
0.83
%
1.25
%
Card Services
1.45
1.23
1.05
1.09
1.04
1.45
1.04
Auto
1.01
0.75
0.69
0.57
0.64
1.01
0.64
90+ day delinquency rate - Card Services
0.68
0.57
0.51
0.54
0.50
0.68
0.50
Allowance for loan losses
Banking & Wealth Management
$
722
$
722
$
697
$
697
$
697
—
4
$
722
$
697
4
Home Lending
867
667
785
785
660
30
31
867
660
31
Card Services
11,200
10,400
10,400
10,250
10,250
8
9
11,200
10,250
9
Auto
715
715
740
738
733
—
(2)
715
733
(2)
Total allowance for loan losses
$
13,504
$
12,504
$
12,622
$
12,470
$
12,340
8
9
$
13,504
$
12,340
9
(a)At December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $187 million, $219 million, $257 million, $315 million and $342 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)At December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, nonaccrual loans excluded $101 million, $57 million, $86 million, $179 million and $506 million of PPP loans 90 or more days past due and guaranteed by the SBA, respectively.
(c)Generally excludes loans that were under payment deferral programs offered in response to the COVID-19 pandemic. Includes loans to customers that have exited COVID-19 payment deferral programs and are 90 or more days past due, predominantly all of which were considered collateral-dependent at time of exit.
(d)At December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021 included $350 million, $791 million, $1.5 billion, $2.9 billion and $5.4 billion of loans, respectively, under the PPP. Given that PPP loans are guaranteed by the SBA, the Firm does not expect to realize material credit losses on these loans. Refer to page 109 of the Firm’s 2021 Form 10-K for further information on the PPP.
(e)At December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, the principal balance of loans under payment deferral programs offered in response to the COVID-19 pandemic was $449 million, $454 million, $513 million, $728 million and $1.1 billion in Home Lending, respectively. Loans that are performing according to their modified terms are generally not considered delinquent.
(f)At December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, excluded mortgage loans 30 or more days past due and insured by U.S. government agencies of $258 million, $284 million, $315 million, $370 million and $405 million, respectively. These amounts have been excluded based upon the government guarantee.
Page 14
JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
QUARTERLY TRENDS
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
BUSINESS METRICS
Number of:
Branches
4,787
4,802
4,822
4,810
4,790
—
%
—
%
4,787
4,790
—
%
Active digital customers (in thousands) (a)
63,136
61,985
60,735
60,286
58,857
2
7
63,136
58,857
7
Active mobile customers (in thousands) (b)
49,710
48,904
47,436
46,527
45,452
2
9
49,710
45,452
9
Debit and credit card sales volume (in billions)
$
411.1
$
395.8
$
397.0
$
351.5
$
376.2
4
9
$
1,555.4
$
1,360.7
14
Total payments transaction volume (in trillions) (c)
1.4
1.4
1.5
1.3
1.4
—
—
5.6
5.0
12
Banking & Wealth Management
Average deposits
$
1,126,420
$
1,156,933
$
1,163,423
$
1,136,115
$
1,094,442
(3)
3
$
1,145,727
$
1,035,379
11
Deposit margin
2.48
%
1.83
%
1.31
%
1.22
%
1.22
%
1.71
%
1.27
%
Business Banking average loans
$
20,467
$
21,263
$
22,769
$
24,816
$
28,919
(4)
(29)
$
22,314
$
37,548
(41)
Business Banking origination volume
1,081
977
1,196
1,028
866
11
25
4,282
13,916
(g)
(69)
Client investment assets (d)
647,120
615,048
628,479
696,316
718,051
5
(10)
647,120
718,051
(10)
Number of client advisors
5,029
5,017
4,890
4,816
4,725
—
6
5,029
4,725
6
Home Lending (in billions)
Mortgage origination volume by channel
Retail
$
4.6
$
7.8
$
11.0
$
15.1
$
22.4
(41)
(79)
$
38.5
$
91.8
(58)
Correspondent
2.1
4.3
10.9
9.6
19.8
(51)
(89)
26.9
70.9
(62)
Total mortgage origination volume (e)
$
6.7
$
12.1
$
21.9
$
24.7
$
42.2
(45)
(84)
$
65.4
$
162.7
(60)
Third-party mortgage loans serviced (period-end)
584.3
586.7
575.6
575.4
519.2
(f)
—
13
584.3
519.2
(f)
13
MSR carrying value (period-end)
8.0
8.1
7.4
7.3
5.5
(1)
45
8.0
5.5
45
Card Services
Sales volume, excluding Commercial Card (in billions)
$
284.8
$
272.3
$
271.2
$
236.4
$
254.1
5
12
1,064.7
893.5
19
Net revenue rate
10.06
%
9.92
%
9.59
%
9.87
%
9.61
%
9.87
%
10.51
%
Net yield on average loans
9.78
9.81
9.50
9.99
9.67
9.77
9.88
Auto
Loan and lease origination volume (in billions)
$
7.5
$
7.5
$
7.0
$
8.4
$
8.5
—
(12)
$
30.4
$
43.6
(30)
Average auto operating lease assets
12,333
13,466
14,866
16,423
17,629
(8)
(30)
14,259
19,064
(25)
(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 ACH, ATM, teller, wires, BillPay, PayChase, Zelle, person-to-person, cash 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 20-22 for additional information.
(e)Firmwide mortgage origination volume was $8.5 billion, $15.2 billion, $27.9 billion, $30.2 billion and $48.2 billion for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively, and $81.8 billion and $182.4 billion for the full year 2022 and 2021, respectively.
(f)Prior-period amount has been revised to conform with the current presentation.
(g)Included $10.6 billion of origination volume under the PPP for the full year 2021. The program ended on May 31, 2021 for new applications.
Page 15
JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
INCOME STATEMENT
REVENUE
Investment banking fees
$
1,467
$
1,762
$
1,650
$
2,050
$
3,502
(17)
%
(58)
%
$
6,929
$
13,359
(48)
%
Principal transactions
4,397
5,258
5,048
5,223
2,116
(16)
108
19,926
15,764
26
Lending- and deposit-related fees
548
589
641
641
654
(7)
(16)
2,419
2,514
(4)
Asset management, administration and commissions
1,198
1,198
1,330
1,339
1,252
—
(4)
5,065
5,024
1
All other income
452
424
80
704
624
7
(28)
1,660
1,548
7
Noninterest revenue
8,062
9,231
8,749
9,957
8,148
(13)
(1)
35,999
38,209
(6)
Net interest income
2,486
2,644
3,198
3,572
3,386
(6)
(27)
11,900
13,540
(12)
TOTAL NET REVENUE (a)
10,548
11,875
11,947
13,529
11,534
(11)
(9)
47,899
51,749
(7)
Provision for credit losses
141
513
59
445
(126)
(73)
NM
1,158
(1,174)
NM
NONINTEREST EXPENSE
Compensation expense
3,091
3,311
3,510
4,006
2,358
(7)
31
13,918
13,096
6
Noncompensation expense
3,335
3,307
3,235
3,292
3,469
1
(4)
13,169
12,229
8
TOTAL NONINTEREST EXPENSE
6,426
6,618
6,745
7,298
5,827
(3)
10
27,087
25,325
7
Income before income tax expense
3,981
4,744
5,143
5,786
5,833
(16)
(32)
19,654
27,598
(29)
Income tax expense
653
1,212
1,418
1,401
1,290
(c)
(46)
(49)
4,684
6,464
(28)
NET INCOME
$
3,328
$
3,532
$
3,725
$
4,385
$
4,543
(c)
(6)
(27)
$
14,970
$
21,134
(29)
FINANCIAL RATIOS
ROE
12
%
13
%
14
%
17
%
21
%
(c)
14
%
25
%
Overhead ratio
61
56
56
54
51
57
49
Compensation expense as percentage of total net revenue
29
28
29
30
20
29
25
REVENUE BY BUSINESS
Investment Banking
$
1,389
$
1,713
$
1,351
$
2,057
$
3,206
(19)
(57)
$
6,510
$
12,506
(48)
Payments
2,070
1,989
1,463
1,854
1,801
4
15
7,376
6,270
18
Lending
323
323
410
321
263
—
23
1,377
1,001
38
Total Banking
3,782
4,025
3,224
4,232
5,270
(6)
(28)
15,263
19,777
(23)
Fixed Income Markets
3,739
4,469
4,711
5,698
3,334
(16)
12
18,617
16,865
10
Equity Markets
1,931
2,302
3,079
3,055
1,954
(16)
(1)
10,367
10,529
(2)
Securities Services
1,159
1,110
1,151
1,068
1,064
4
9
4,488
4,328
4
Credit Adjustments & Other (b)
(63)
(31)
(218)
(524)
(88)
(103)
28
(836)
250
NM
Total Markets & Securities Services
6,766
7,850
8,723
9,297
6,264
(14)
8
32,636
31,972
2
TOTAL NET REVENUE
$
10,548
$
11,875
$
11,947
$
13,529
$
11,534
(11)
(9)
$
47,899
$
51,749
(7)
(a)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 $854 million, $626 million, $772 million, $737 million and $923 million for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively, and $3.0 billion for both the full year 2022 and 2021.
(b)Consists primarily of centrally managed credit valuation adjustments (“CVA”), funding valuation adjustments (“FVA”) on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, 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.
(c)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. 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
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
1,334,296
$
1,384,618
$
1,403,558
$
1,460,463
$
1,259,896
(4)
%
6
%
$
1,334,296
$
1,259,896
6
%
Loans:
Loans retained (a)
187,642
180,604
171,219
167,791
159,786
4
17
187,642
159,786
17
Loans held-for-sale and loans at fair value (b)
42,304
40,357
46,032
47,260
50,386
5
(16)
42,304
50,386
(16)
Total loans
229,946
220,961
217,251
215,051
210,172
4
9
229,946
210,172
9
Equity
103,000
103,000
103,000
103,000
83,000
—
24
103,000
83,000
24
SELECTED BALANCE SHEET DATA (average)
Total assets
$
1,384,255
$
1,403,247
$
1,429,953
$
1,407,835
$
1,341,267
(1)
3
$
1,406,250
$
1,334,518
5
Trading assets - debt and equity instruments
406,692
386,895
411,079
419,346
407,656
5
—
405,916
448,099
(9)
Trading assets - derivative receivables
77,669
83,084
83,582
66,692
65,365
(7)
19
77,802
68,203
14
Loans:
Loans retained (a)
182,873
176,469
169,909
160,976
153,595
4
19
172,627
145,137
19
Loans held-for-sale and loans at fair value (b)
42,895
45,150
48,048
51,398
52,429
(5)
(18)
46,846
51,072
(8)
Total loans
225,768
221,619
217,957
212,374
206,024
2
10
219,473
196,209
12
Equity
103,000
103,000
103,000
103,000
83,000
—
24
103,000
83,000
24
Headcount
73,452
71,797
69,447
68,292
67,546
2
9
73,452
67,546
9
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
7
$
17
$
38
$
20
$
23
(59)
(70)
$
82
$
6
NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (c)
718
583
697
871
584
23
23
718
584
23
Nonaccrual loans held-for-sale and loans at fair value (d)
848
824
840
949
844
3
—
848
844
—
Total nonaccrual loans
1,566
1,407
1,537
1,820
1,428
11
10
1,566
1,428
10
Derivative receivables
296
339
447
597
316
(13)
(6)
296
316
(6)
Assets acquired in loan satisfactions
87
85
84
91
91
2
(4)
87
91
(4)
Total nonperforming assets
1,949
1,831
2,068
2,508
1,835
6
6
1,949
1,835
6
Allowance for credit losses:
Allowance for loan losses
2,292
2,032
1,809
1,687
1,348
13
70
2,292
1,348
70
Allowance for lending-related commitments
1,448
1,582
1,358
1,459
1,372
(8)
6
1,448
1,372
6
Total allowance for credit losses
3,740
3,614
3,167
3,146
2,720
3
38
3,740
2,720
38
Net charge-off/(recovery) rate (a)(e)
0.02
%
0.04
%
0.09
%
0.05
%
0.06
%
0.05
%
—
%
Allowance for loan losses to period-end loans retained (a)
1.22
1.13
1.06
1.01
0.84
1.22
0.84
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (f)
1.67
1.49
1.38
1.31
1.12
1.67
1.12
Allowance for loan losses to nonaccrual loans retained (a)(c)
319
349
260
194
231
319
231
Nonaccrual loans to total period-end loans
0.68
0.64
0.71
0.85
0.68
0.68
0.68
(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 $104 million, $111 million, $130 million, $226 million and $58 million were held against these nonaccrual loans at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively.
(d)At December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $115 million, $143 million, $196 million, $283 million and $281 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
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
BUSINESS METRICS
Advisory
$
738
$
848
$
664
$
801
$
1,557
(13)
%
(53)
%
$
3,051
$
4,381
(30)
%
Equity underwriting
250
290
245
249
802
(14)
(69)
1,034
3,953
(74)
Debt underwriting
479
624
741
1,000
1,143
(23)
(58)
2,844
5,025
(43)
Total investment banking fees
$
1,467
$
1,762
$
1,650
$
2,050
$
3,502
(17)
(58)
$
6,929
$
13,359
(48)
Client deposits and other third-party liabilities (average) (a)
649,694
669,215
722,388
709,121
717,496
(3)
(9)
687,391
714,910
(4)
Merchant processing volume (in billions) (b)
583.2
545.4
539.6
490.2
514.9
7
13
2,158.4
1,886.7
14
Assets under custody (“AUC”) (period-end) (in billions)
$
28,635
$
27,157
$
28,579
$
31,571
$
33,221
5
(14)
$
28,635
$
33,221
(14)
95% Confidence Level - Total CIB VaR (average)
CIB trading VaR by risk type: (c)
Fixed income
$
66
$
64
$
60
$
47
$
39
3
69
Foreign exchange
11
9
8
4
4
22
175
Equities
13
11
11
12
12
18
8
Commodities and other
18
14
14
15
12
29
50
Diversification benefit to CIB trading VaR (d)
(50)
(47)
(43)
(33)
(31)
(6)
(61)
CIB trading VaR (c)
58
51
50
45
36
14
61
Credit Portfolio VaR (e)
10
10
17
29
5
—
100
Diversification benefit to CIB VaR (d)
(8)
(8)
(15)
(10)
(4)
—
(100)
CIB VaR
$
60
$
53
$
52
$
64
$
37
13
62
(a)Client deposits and other third-party liabilities pertain to the Payments and Securities Services businesses.
(b)Represents total merchant processing volume across CIB, CCB and CB.
(c)CIB trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in CIB, including credit spread sensitivity to CVA. Refer to VaR measurement on pages 135–137 of the Firm’s 2021 Form 10-K, and pages 77–79 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022 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
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees
$
243
$
288
$
348
$
364
$
356
(16)
%
(32)
%
$
1,243
$
1,392
(11)
%
All other income
486
548
556
503
718
(11)
(32)
2,093
2,537
(18)
Noninterest revenue
729
836
904
867
1,074
(13)
(32)
3,336
3,929
(15)
Net interest income
2,675
2,212
1,779
1,531
1,538
21
74
8,197
6,079
35
TOTAL NET REVENUE (a)
3,404
3,048
2,683
2,398
2,612
12
30
11,533
10,008
15
Provision for credit losses
284
618
209
157
(89)
(54)
NM
1,268
(947)
NM
NONINTEREST EXPENSE
Compensation expense
607
577
559
553
496
5
22
2,296
1,973
16
Noncompensation expense
647
603
597
576
563
7
15
2,423
2,068
17
TOTAL NONINTEREST EXPENSE
1,254
1,180
1,156
1,129
1,059
6
18
4,719
4,041
17
Income before income tax expense
1,866
1,250
1,318
1,112
1,642
49
14
5,546
6,914
(20)
Income tax expense
443
304
324
262
408
(e)
46
9
1,333
1,668
(20)
NET INCOME
$
1,423
$
946
$
994
$
850
$
1,234
(e)
50
15
$
4,213
$
5,246
(20)
REVENUE BY PRODUCT
Lending
$
1,185
$
1,176
$
1,058
$
1,105
$
1,151
1
3
$
4,524
$
4,629
(2)
Payments (b)
1,989
1,618
1,253
1,022
989
23
101
5,882
3,791
55
Investment banking (b)(c)
196
224
234
219
435
(13)
(55)
873
1,473
(41)
Other
34
30
138
52
37
13
(8)
254
115
121
TOTAL NET REVENUE (a)
$
3,404
$
3,048
$
2,683
$
2,398
$
2,612
12
30
$
11,533
$
10,008
15
Investment banking revenue, gross (d)
$
700
$
761
$
788
$
729
$
1,456
(8)
(52)
$
2,978
$
5,092
(42)
REVENUE BY CLIENT SEGMENT
Middle Market Banking
$
1,619
$
1,366
$
1,169
$
980
$
1,062
19
52
$
5,134
$
4,004
28
Corporate Client Banking
1,109
1,052
927
830
928
5
20
3,918
3,508
12
Commercial Real Estate Banking
666
624
590
581
614
7
8
2,461
2,419
2
Other
10
6
(3)
7
8
67
25
20
77
(74)
TOTAL NET REVENUE (a)
$
3,404
$
3,048
$
2,683
$
2,398
$
2,612
12
30
$
11,533
$
10,008
15
FINANCIAL RATIOS
ROE
22
%
14
%
15
%
13
%
19
%
(e)
16
%
21
%
Overhead ratio
37
39
43
47
41
41
40
(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 $100 million, $80 million, $73 million, $69 million and $99 million for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively, and $322 million and $330 million for the full year 2022 and 2021, 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.
(d)Includes gross revenues earned by the Firm, for investment banking and payments products sold to CB clients, that are subject to a revenue sharing arrangement with the CIB. Refer to page 61 of the Firm’s 2021 Form 10-K for discussion of revenue sharing.
(e)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation.
Page 19
JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
257,106
$
247,485
$
242,456
$
235,127
$
230,776
4
%
11
%
$
257,106
$
230,776
11
%
Loans:
Loans retained
233,879
231,829
223,541
213,073
206,220
1
13
233,879
206,220
13
Loans held-for-sale and loans at fair value
707
137
566
1,743
2,223
416
(68)
707
2,223
(68)
Total loans
$
234,586
$
231,966
$
224,107
$
214,816
$
208,443
1
13
$
234,586
$
208,443
13
Equity
25,000
25,000
25,000
25,000
24,000
—
4
25,000
24,000
4
Period-end loans by client segment
Middle Market Banking (a)
$
72,625
$
71,707
$
68,535
$
64,306
$
61,159
1
19
$
72,625
$
61,159
19
Corporate Client Banking
53,840
52,940
49,503
46,720
45,315
2
19
53,840
45,315
19
Commercial Real Estate Banking
107,999
107,241
105,982
103,685
101,751
1
6
107,999
101,751
6
Other
122
78
87
105
218
56
(44)
122
218
(44)
Total loans (a)
$
234,586
$
231,966
$
224,107
$
214,816
$
208,443
1
13
$
234,586
$
208,443
13
SELECTED BALANCE SHEET DATA (average)
Total assets
$
253,007
$
246,318
$
239,381
$
233,474
$
227,308
3
11
$
243,108
$
225,548
8
Loans:
Loans retained
234,654
227,539
218,478
208,540
201,676
3
16
222,388
201,920
10
Loans held-for-sale and loans at fair value
673
1,589
1,004
2,147
3,958
(58)
(83)
1,350
3,122
(57)
Total loans
$
235,327
$
229,128
$
219,482
$
210,687
$
205,634
3
14
$
223,738
$
205,042
9
Client deposits and other third-party liabilities
278,924
281,336
300,425
316,921
323,821
(1)
(14)
294,261
301,502
(2)
Equity
25,000
25,000
25,000
25,000
24,000
—
4
25,000
24,000
4
Average loans by client segment
Middle Market Banking
$
72,109
$
70,002
$
66,640
$
62,437
$
59,784
3
21
$
67,830
$
60,128
13
Corporate Client Banking
55,137
52,432
47,832
45,595
44,976
5
23
50,281
44,361
13
Commercial Real Estate Banking
107,831
106,546
104,890
102,498
100,682
1
7
105,459
100,331
5
Other
250
148
120
157
192
69
30
168
222
(24)
Total loans
$
235,327
$
229,128
$
219,482
$
210,687
$
205,634
3
14
$
223,738
$
205,042
9
Headcount
14,687
14,299
13,811
13,220
12,902
3
14
14,687
12,902
14
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
35
$
42
$
1
$
6
$
8
(17)
338
$
84
$
71
18
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (b)(c)
766
836
761
751
740
(8)
4
766
740
4
Nonaccrual loans held-for-sale and loans
at fair value
—
—
—
—
—
—
—
—
—
—
Total nonaccrual loans
766
836
761
751
740
(8)
4
766
740
4
Assets acquired in loan satisfactions
—
7
8
17
17
NM
NM
—
17
NM
Total nonperforming assets
766
843
769
768
757
(9)
1
766
757
1
Allowance for credit losses:
Allowance for loan losses
3,324
3,050
2,602
2,357
2,219
9
50
3,324
2,219
50
Allowance for lending-related commitments
830
864
725
762
749
(4)
11
830
749
11
Total allowance for credit losses
4,154
3,914
3,327
3,119
2,968
6
40
4,154
2,968
40
Net charge-off/(recovery) rate (d)
0.06
%
0.07
%
—
%
0.01
%
0.02
%
0.04
%
0.04
%
Allowance for loan losses to period-end loans retained
1.42
1.32
1.16
1.11
1.08
1.42
1.08
Allowance for loan losses to nonaccrual loans retained (b)
434
365
342
314
300
434
300
Nonaccrual loans to period-end total loans
0.33
0.36
0.34
0.35
0.36
0.33
0.36
(a)At December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, total loans included $132 million, $205 million, $335 million, $640 million, and $1.2 billion of loans, respectively, under the PPP, of which $123 million, $187 million, $306 million, $604 million, and $1.1 billion, were in Middle Market Banking. Refer to page 109 of the Firm’s 2021 Form 10-K for further information on the PPP.
(b)Allowance for loan losses of $153 million, $150 million, $74 million, $104 million and $124 million was held against nonaccrual loans retained at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively.
(c)At December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, nonaccrual loans excluded PPP loans 90 or more days past due and insured by the SBA of $18 million, $27 million, $32 million, $50 million and $114 million, respectively. These amounts have been excluded based upon the SBA guarantee.
(d)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
Page 20
JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)
QUARTERLY TRENDS
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
INCOME STATEMENT
REVENUE
Asset management, administration and commissions
$
2,976
$
3,044
$
3,037
$
3,115
$
3,330
(2)
%
(11)
%
$
12,172
$
12,333
(1)
%
All other income
82
82
47
124
118
—
(31)
335
738
(55)
Noninterest revenue
3,058
3,126
3,084
3,239
3,448
(2)
(11)
12,507
13,071
(4)
Net interest income
1,530
1,413
1,222
1,076
1,025
8
49
5,241
3,886
35
TOTAL NET REVENUE
4,588
4,539
4,306
4,315
4,473
1
3
17,748
16,957
5
Provision for credit losses
32
(102)
44
154
(36)
NM
NM
128
(227)
NM
NONINTEREST EXPENSE
Compensation expense
1,649
1,649
1,508
1,530
1,560
—
6
6,336
5,692
11
Noncompensation expense
1,373
1,379
1,411
1,330
1,437
—
(4)
5,493
5,227
5
TOTAL NONINTEREST EXPENSE
3,022
3,028
2,919
2,860
2,997
—
1
11,829
10,919
8
Income before income tax expense
1,534
1,613
1,343
1,301
1,512
(5)
1
5,791
6,265
(8)
Income tax expense
400
394
339
293
387
(a)
2
3
1,426
1,528
(7)
NET INCOME
$
1,134
$
1,219
$
1,004
$
1,008
$
1,125
(a)
(7)
1
$
4,365
$
4,737
(8)
REVENUE BY LINE OF BUSINESS
Asset Management
$
2,158
$
2,209
$
2,137
$
2,314
$
2,488
(2)
(13)
$
8,818
$
9,246
(5)
Global Private Bank
2,430
2,330
2,169
2,001
1,985
4
22
8,930
7,711
16
TOTAL NET REVENUE
$
4,588
$
4,539
$
4,306
$
4,315
$
4,473
1
3
$
17,748
$
16,957
5
FINANCIAL RATIOS
ROE
26
%
28
%
23
%
23
%
31
% (a)
25
%
33
%
Overhead ratio
66
67
68
66
67
67
64
Pretax margin ratio:
Asset Management
27
31
29
33
32
30
35
Global Private Bank
39
40
33
27
36
35
39
Asset & Wealth Management
33
36
31
30
34
33
37
Headcount
26,041
25,769
23,981
23,366
22,762
1
14
26,041
22,762
14
Number of Global Private Bank client advisors
3,137
3,110
2,866
2,798
2,738
1
15
3,137
2,738
15
(a)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation.
Page 21
Page 22
JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
232,037
$
232,303
$
235,553
$
233,070
$
234,425
—
%
(1)
%
$
232,037
$
234,425
-1
%
Loans
214,006
214,989
218,841
215,130
218,271
—
(2)
214,006
218,271
(2)
Deposits
233,130
242,315
257,437
287,293
282,052
(4)
(17)
233,130
282,052
(17)
Equity
17,000
17,000
17,000
17,000
14,000
—
21
17,000
14,000
21
SELECTED BALANCE SHEET DATA (average)
Total assets
$
230,149
$
232,748
$
234,565
$
232,310
$
227,597
(1)
1
$
232,438
$
217,187
7
Loans
214,150
216,714
216,846
214,611
209,169
(1)
2
215,582
198,487
9
Deposits
236,965
253,026
268,861
287,756
264,580
(6)
(10)
261,489
230,296
14
Equity
17,000
17,000
17,000
17,000
14,000
—
21
17,000
14,000
21
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
(2)
$
(13)
$
9
$
(1)
$
4
85
NM
$
(7)
$
26
NM
Nonaccrual loans
459
467
620
626
708
(2)
(35)
459
708
(35)
Allowance for credit losses:
Allowance for loan losses
494
461
547
516
365
7
35
494
365
35
Allowance for lending-related commitments
20
21
22
19
18
(5)
11
20
18
11
Total allowance for credit losses
514
482
569
535
383
7
34
514
383
34
Net charge-off/(recovery) rate
—
%
(0.02)
%
0.02
%
—
%
0.01
%
—
%
0.01
%
Allowance for loan losses to period-end loans
0.23
0.21
0.25
0.24
0.17
0.23
0.17
Allowance for loan losses to nonaccrual loans
108
99
88
82
52
108
52
Nonaccrual loans to period-end loans
0.21
0.22
0.28
0.29
0.32
0.21
0.32
Page 23
JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)
Dec 31, 2022
Change
FULL YEAR
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Dec 31,
2022 Change
CLIENT ASSETS
2022
2022
2022
2022
2021
2022
2021
2022
2021
2021
Assets by asset class
Liquidity
$
654
$
615
$
654
$
657
$
708
6
%
(8)
%
$
654
$
708
(8)
%
Fixed income
638
612
624
657
693
4
(8)
638
693
(8)
Equity
670
609
641
739
779
10
(14)
670
779
(14)
Multi-asset
603
577
615
699
732
5
(18)
603
732
(18)
Alternatives
201
203
209
208
201
(1)
—
201
201
—
TOTAL ASSETS UNDER MANAGEMENT
2,766
2,616
2,743
2,960
3,113
6
(11)
2,766
3,113
(11)
Custody/brokerage/administration/deposits
1,282
1,207
1,055
1,156
1,182
6
8
1,282
1,182
8
TOTAL CLIENT ASSETS (a)
$
4,048
$
3,823
$
3,798
$
4,116
$
4,295
6
(6)
$
4,048
$
4,295
(6)
Assets by client segment
Private Banking
$
751
$
698
$
712
$
777
$
805
8
(7)
$
751
$
805
(7)
Global Institutional
1,252
1,209
1,294
1,355
1,430
4
(12)
1,252
1,430
(12)
Global Funds
763
709
737
828
878
8
(13)
763
878
(13)
TOTAL ASSETS UNDER MANAGEMENT
$
2,766
$
2,616
$
2,743
$
2,960
$
3,113
6
(11)
$
2,766
$
3,113
(11)
Private Banking
$
1,964
$
1,848
$
1,715
$
1,880
$
1,931
6
2
$
1,964
$
1,931
2
Global Institutional
1,314
1,261
1,339
1,402
1,479
4
(11)
1,314
1,479
(11)
Global Funds
770
714
744
834
885
8
(13)
770
885
(13)
TOTAL CLIENT ASSETS (a)
$
4,048
$
3,823
$
3,798
$
4,116
$
4,295
6
(6)
$
4,048
$
4,295
(6)
Assets under management rollforward
Beginning balance
$
2,616
$
2,743
$
2,960
$
3,113
$
2,996
$
3,113
$
2,716
Net asset flows:
Liquidity
33
(36)
—
(52)
20
(55)
68
Fixed income
8
9
(1)
(3)
—
13
36
Equity
9
6
9
11
18
35
85
Multi-asset
(7)
(5)
(3)
6
6
(9)
17
Alternatives
—
2
1
5
10
8
26
Market/performance/other impacts
107
(103)
(223)
(120)
63
(339)
165
Ending balance
$
2,766
$
2,616
$
2,743
$
2,960
$
3,113
$
2,766
$
3,113
Client assets rollforward
Beginning balance
$
3,823
$
3,798
$
4,116
$
4,295
$
4,096
$
4,295
$
3,652
Net asset flows
70
(15)
(1)
(5)
109
49
389
Market/performance/other impacts
155
40
(317)
(174)
90
(296)
254
Ending balance
$
4,048
$
3,823
$
3,798
$
4,116
$
4,295
$
4,048
$
4,295
(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
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
INCOME STATEMENT
REVENUE
Principal transactions
$
(7)
$
(76)
$
17
$
(161)
$
26
91
%
NM
$
(227)
$
187
NM
Investment securities gains/(losses)
(874)
(959)
(153)
(394)
52
9
NM
(2,380)
(345)
NM
All other income
766
(d)
(59)
(108)
210
58
NM
NM
809
226
258
%
Noninterest revenue
(115)
(1,094)
(244)
(345)
136
89
NM
(1,798)
68
NM
Net interest income
1,298
792
324
(536)
(681)
64
NM
1,878
(3,551)
NM
TOTAL NET REVENUE (a)
1,183
(302)
80
(881)
(545)
NM
NM
80
(3,483)
NM
Provision for credit losses
(14)
(21)
28
29
23
33
NM
22
81
(73)
NONINTEREST EXPENSE
339
305
206
184
251
11
35
1,034
1,802
(43)
Income/(loss) before income tax expense/(benefit)
858
(586)
(154)
(1,094)
(819)
NM
NM
(976)
(5,366)
82
Income tax expense/(benefit)
277
(292)
20
(238)
(169)
(e)
NM
NM
(233)
(1,653)
86
NET INCOME/(LOSS)
$
581
$
(294)
$
(174)
$
(856)
$
(650)
(e)
NM
NM
$
(743)
$
(3,713)
80
MEMO:
TOTAL NET REVENUE
Treasury and Chief Investment Office (“CIO”)
603
(180)
82
(944)
(480)
NM
NM
(439)
(3,464)
87
Other Corporate
580
(122)
(2)
63
(65)
NM
NM
519
(19)
NM
TOTAL NET REVENUE
$
1,183
$
(302)
$
80
$
(881)
$
(545)
NM
NM
$
80
$
(3,483)
NM
NET INCOME/(LOSS)
Treasury and CIO
531
(68)
88
(748)
(428)
NM
NM
(197)
(3,057)
94
Other Corporate
50
(226)
(262)
(108)
(222)
(e)
NM
NM
(546)
(656)
17
TOTAL NET INCOME/(LOSS)
$
581
$
(294)
$
(174)
$
(856)
$
(650)
(e)
NM
NM
$
(743)
$
(3,713)
80
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
1,328,219
$
1,408,726
$
1,459,528
$
1,539,844
$
1,518,100
(6)
(13)
$
1,328,219
$
1,518,100
(13)
Loans
2,181
2,206
2,187
1,957
1,770
(1)
23
2,181
1,770
23
Deposits
14,203
(f)
14,449
(f)
13,191
(f)
1,434
396
(2)
NM
14,203
(f)
396
NM
Headcount
44,196
42,806
40,348
39,802
38,952
3
13
44,196
38,952
13
SUPPLEMENTAL INFORMATION
TREASURY and CIO
Investment securities gains/(losses)
$
(874)
$
(959)
$
(153)
$
(394)
$
52
9
NM
$
(2,380)
$
(345)
NM
Available-for-sale securities (average)
195,788
209,008
252,121
304,314
290,590
(6)
(33)
239,924
306,827
(22)
Held-to-maturity securities (average) (b)
427,802
436,302
418,843
364,814
349,989
(2)
22
412,180
285,086
45
Investment securities portfolio (average)
$
623,590
$
645,310
$
670,964
$
669,128
$
640,579
(3)
(3)
$
652,104
$
591,913
10
Available-for-sale securities (period-end)
203,981
186,441
220,213
310,909
306,352
9
(33)
203,981
306,352
(33)
Held-to-maturity securities (period-end) (b)
425,305
430,106
441,649
366,585
363,707
(1)
17
425,305
363,707
17
Investment securities portfolio, net of allowance for credit losses (period-end) (c)
$
629,286
$
616,547
$
661,862
$
677,494
$
670,059
2
(6)
$
629,286
$
670,059
(6)
(a)Included tax-equivalent adjustments, driven by tax-exempt income from municipal bonds, of $58 million, $59 million, $60 million, $58 million and $60 million for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively, and $235 million and $257 million for the full year 2022 and 2021, respectively.
(b)During 2022 and 2021, the Firm transferred $78.3 billion and $104.5 billion of investment securities, respectively, from AFS to HTM for capital management purposes.
(c)At December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, the allowance for credit losses on investment securities was $67 million, $52 million, $47 million, $41 million and $42 million, respectively.
(d)Included a $914 million gain on sale of Visa B shares.
(e)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation.
(f)Predominantly relates to international consumer growth initiatives.
Page 25
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
Dec 31, 2022
Change
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Dec 31,
2022
2022
2022
2022
2021
2022
2021
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained
$
300,753
$
301,403
$
302,631
$
296,161
$
295,556
—
%
2
%
Loans held-for-sale and loans at fair value
10,622
12,393
14,581
16,328
27,750
(14)
(62)
Total consumer, excluding credit card loans
311,375
313,796
317,212
312,489
323,306
(1)
(4)
Credit card loans
Loans retained
185,175
170,462
165,494
152,283
154,296
9
20
Total credit card loans
185,175
170,462
165,494
152,283
154,296
9
20
Total consumer loans
496,550
484,258
482,706
464,772
477,602
3
4
Wholesale loans (b)
Loans retained
603,670
596,208
584,265
569,953
560,354
1
8
Loans held-for-sale and loans at fair value
35,427
32,167
37,184
38,560
39,758
10
(11)
Total wholesale loans
639,097
628,375
621,449
608,513
600,112
2
6
Total loans
1,135,647
1,112,633
1,104,155
1,073,285
1,077,714
2
5
Derivative receivables
70,880
92,534
81,317
73,636
57,081
(23)
24
Receivables from customers (c)
49,257
54,921
58,349
68,473
59,645
(10)
(17)
Total credit-related assets
1,255,784
1,260,088
1,243,821
1,215,394
1,194,440
—
5
Lending-related commitments
Consumer, excluding credit card
33,518
34,868
40,484
47,103
45,334
(4)
(26)
Credit card (d)
821,284
798,855
774,021
757,283
730,534
3
12
Wholesale
472,264
472,950
487,500
497,232
486,445
(g)
—
(3)
Total lending-related commitments
1,327,066
1,306,673
1,302,005
1,301,618
1,262,313
2
5
Total credit exposure
$
2,582,850
$
2,566,761
$
2,545,826
$
2,517,012
$
2,456,753
1
5
Memo: Total by category
Consumer exposure (e)
$
1,351,352
$
1,317,981
$
1,297,211
$
1,269,158
$
1,253,470
3
8
Wholesale exposure (f)
1,231,498
1,248,780
1,248,615
1,247,854
1,203,283
(1)
2
Total credit exposure
$
2,582,850
$
2,566,761
$
2,545,826
$
2,517,012
$
2,456,753
1
5
(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)Prior-period amounts have been revised to conform with the current presentation.
Page 26
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
Dec 31, 2022
Change
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Dec 31,
2022
2022
2022
2022
2021
2022
2021
NONPERFORMING ASSETS (a)(b)
Consumer nonaccrual loans
Loans retained
$
3,874
$
3,917
$
4,186
$
4,485
$
4,878
(1)
%
(21)
%
Loans held-for-sale and loans at fair value
451
461
486
525
472
(2)
(4)
Total consumer nonaccrual loans
4,325
4,378
4,672
5,010
5,350
(1)
(19)
Wholesale nonaccrual loans
Loans retained
1,963
1,882
2,083
2,289
2,054
4
(4)
Loans held-for-sale and loans at fair value
432
414
407
459
391
4
10
Total wholesale nonaccrual loans
2,395
2,296
2,490
2,748
2,445
4
(2)
Total nonaccrual loans (c)
6,720
6,674
7,162
7,758
7,795
1
(14)
Derivative receivables
296
339
447
597
316
(13)
(6)
Assets acquired in loan satisfactions
231
230
236
250
235
—
(2)
Total nonperforming assets
7,247
7,243
7,845
8,605
8,346
—
(13)
Wholesale lending-related commitments (d)
455
470
397
767
764
(3)
(40)
Total nonperforming exposure
$
7,702
$
7,713
$
8,242
$
9,372
$
9,110
—
(15)
NONACCRUAL LOAN-RELATED RATIOS
Total nonaccrual loans to total loans
0.59
%
0.60
%
0.65
%
0.72
%
0.72
%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans
1.39
1.40
1.47
1.60
1.65
Total wholesale nonaccrual loans to total
wholesale loans
0.37
0.37
0.40
0.45
0.41
(a)At December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, nonperforming assets excluded: (1) mortgage loans 90 or more days past due and insured by U.S. government agencies of $302 million, $362 million, $453 million, $598 million and $623 million, respectively; and (2) real estate owned (“REO”) insured by U.S. government agencies of $10 million, $9 million, $8 million, $6 million and $5 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)At December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, nonperforming assets excluded PPP loans 90 or more days past due and insured by the SBA of $119 million, $85 million, $119 million, $236 million and $633 million respectively. These amounts have been excluded based upon the SBA guarantee.
(c)Generally excludes loans that were under payment deferral or other assistance, including amendments or waivers of financial covenants, in response to the COVID-19 pandemic.
(d)Represents commitments that are risk rated as nonaccrual.
Page 27
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q22 Change
2022 Change
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance
$
18,185
$
17,750
$
17,192
$
16,386
$
18,150
2
%
—
%
$
16,386
$
28,328
(42)
%
Net charge-offs:
Gross charge-offs
1,210
1,104
1,036
976
968
10
25
4,326
4,564
(5)
Gross recoveries collected
(323)
(377)
(379)
(394)
(418)
14
23
(1,473)
(1,699)
13
Net charge-offs
887
727
657
582
550
22
61
2,853
2,865
—
Provision for loan losses
2,426
1,165
1,230
1,368
(1,214)
108
NM
6,189
(9,071)
NM
Other
2
(3)
(15)
20
—
NM
NM
4
(6)
NM
Ending balance
$
19,726
$
18,185
$
17,750
$
17,192
$
16,386
8
20
$
19,726
$
16,386
20
ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance
$
2,551
$
2,222
$
2,358
$
2,261
$
2,305
15
11
$
2,261
$
2,409
(6)
Provision for lending-related commitments
(169)
328
(135)
96
(43)
NM
(293)
120
(149)
NM
Other
—
1
(1)
1
(1)
NM
NM
1
1
—
Ending balance
$
2,382
$
2,551
$
2,222
$
2,358
$
2,261
(7)
5
$
2,382
$
2,261
5
ALLOWANCE FOR INVESTMENT SECURITIES
$
96
$
61
$
47
$
41
$
42
57
129
$
96
$
42
129
Total allowance for credit losses (a)
$
22,204
$
20,797
$
20,019
$
19,591
$
18,689
7
19
$
22,204
$
18,689
19
NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans
0.16
%
0.10
%
0.04
%
0.06
%
0.04
%
0.09
%
—
%
Credit card retained loans
1.62
1.40
1.47
1.37
1.28
1.47
1.94
Total consumer retained loans
0.70
0.56
0.53
0.50
0.45
0.58
0.62
Wholesale retained loans
0.03
0.04
0.03
0.02
0.03
0.03
0.03
Total retained loans
0.33
0.27
0.25
0.24
0.22
0.27
0.30
Memo: Average retained loans
Consumer retained, excluding credit card loans
$
301,093
$
301,347
$
299,649
$
295,460
$
296,423
—
2
$
299,409
$
298,814
—
Credit card retained loans
177,026
168,125
158,434
149,398
148,471
5
19
163,335
139,900
17
Total average retained consumer loans
478,119
469,472
458,083
444,858
444,894
2
7
462,744
438,714
5
Wholesale retained loans
599,817
590,490
577,850
559,395
541,183
2
11
582,021
526,557
11
Total average retained loans
$
1,077,936
$
1,059,962
$
1,035,933
$
1,004,253
$
986,077
2
9
$
1,044,765
$
965,271
8
(a)At December 31, 2022, September 30, 2022 excludes an allowance for credit losses associated with certain accounts receivable in CIB of $21 million and $30 million, respectively.
Page 28
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
Dec 31, 2022
Change
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Dec 31,
2022
2022
2022
2022
2021
2022
2021
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)
$
(674)
$
(702)
$
(676)
$
(644)
$
(665)
4
%
(1)
%
Portfolio-based
2,714
2,521
2,605
2,538
2,430
8
12
Total consumer, excluding credit card
2,040
1,819
1,929
1,894
1,765
12
16
Credit card
Asset-specific (b)
223
218
227
262
313
2
(29)
Portfolio-based
10,977
10,182
10,173
9,988
9,937
8
10
Total credit card
11,200
10,400
10,400
10,250
10,250
8
9
Total consumer
13,240
12,219
12,329
12,144
12,015
8
10
Wholesale
Asset-specific (c)
467
450
332
485
263
4
78
Portfolio-based
6,019
5,516
5,089
4,563
4,108
9
47
Total wholesale
6,486
5,966
5,421
5,048
4,371
9
48
Total allowance for loan losses
19,726
18,185
17,750
17,192
16,386
8
20
Allowance for lending-related commitments
2,382
2,551
2,222
2,358
2,261
(7)
5
Allowance for investment securities
96
61
47
41
42
57
129
Total allowance for credit losses
$
22,204
$
20,797
$
20,019
$
19,591
$
18,689
7
19
CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans
0.68
%
0.60
%
0.64
%
0.64
%
0.60
%
Credit card allowance to total credit card retained loans
6.05
6.10
6.28
6.73
6.64
Wholesale allowance to total wholesale retained loans
1.07
1.00
0.93
0.89
0.78
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (d)
1.17
1.08
0.99
0.95
0.84
Total allowance to total retained loans
1.81
1.70
1.69
1.69
1.62
Consumer, excluding credit card allowance, to consumer,
Wholesale allowance to wholesale retained nonaccrual loans
330
317
260
221
213
Total allowance to total retained nonaccrual loans
338
314
283
254
236
(a)Includes collateral-dependent loans, including those considered troubled debt restructurings (“TDRs”) and those for which foreclosure is deemed probable, modified PCD loans, and non-collateral dependent loans that have been modified or are reasonably expected to be modified in a TDR.
(b)The asset-specific credit card allowance for loan losses relates to loans that have been modified or are reasonably expected to be modified in a TDR; the Firm calculates this allowance based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
(c)Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified or are reasonably expected to be modified in a TDR.
(d)Management uses allowance for loan losses to period-end loans retained, excluding CIB’s trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of the wholesale allowance coverage ratio.
(e)Refer to footnote (a) on page 26 for information on the Firm’s nonaccrual policy for credit card loans.
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 2021 Form 10-K.
QUARTERLY TRENDS
FULL YEAR
4Q22 Change
2022 Change
(in millions, except rates)
4Q22
3Q22
2Q22
1Q22
4Q21
3Q22
4Q21
2022
2021
2021
Net interest income - reported
$
20,192
$
17,518
$
15,128
$
13,872
$
13,601
15
%
48
%
$
66,710
$
52,311
28
%
Fully taxable-equivalent adjustments
121
112
103
98
108
8
12
434
430
1
Net interest income - managed basis (a)
$
20,313
$
17,630
$
15,231
$
13,970
$
13,709
15
48
$
67,144
$
52,741
27
Less: Markets net interest income
315
707
1,549
2,218
2,066
(55)
(85)
4,789
8,243
(42)
Net interest income excluding Markets (a)
$
19,998
$
16,923
$
13,682
$
11,752
$
11,643
18
72
$
62,355
$
44,498
40
Average interest-earning assets
$
3,265,071
$
3,344,949
$
3,385,894
$
3,401,951
$
3,337,855
(2)
(2)
$
3,349,079
$
3,215,942
4
Less: Average Markets interest-earning assets
939,420
952,488
957,304
963,845
908,093
(1)
3
953,195
888,238
7
Average interest-earning assets excluding Markets
$
2,325,651
$
2,392,461
$
2,428,590
$
2,438,106
$
2,429,762
(3)
(4)
$
2,395,884
$
2,327,704
3
Net yield on average interest-earning assets - managed basis
2.47
%
2.09
%
1.80
%
1.67
%
1.63
%
2.00
%
1.64
%
Net yield on average Markets interest-earning assets
0.13
0.29
0.65
0.93
0.90
0.50
0.93
Net yield on average interest-earning assets excluding Markets
3.41
2.81
2.26
1.95
1.90
2.60
1.91
Noninterest revenue - reported
$
14,355
$
15,198
$
15,587
$
16,845
$
15,656
(6)
(8)
$
61,985
$
69,338
(11)
Fully taxable-equivalent adjustments
898
663
812
775
984
35
(9)
3,148
3,225
(2)
Noninterest revenue - managed basis
$
15,253
$
15,861
$
16,399
$
17,620
$
16,640
(4)
(8)
$
65,133
$
72,563
(10)
Less: Markets noninterest revenue
5,355
6,064
6,241
6,535
3,222
(12)
66
24,195
19,151
26
Noninterest revenue excluding Markets
$
9,898
$
9,797
$
10,158
$
11,085
$
13,418
1
(26)
$
40,938
$
53,412
(23)
Memo: Markets total net revenue
$
5,670
$
6,771
$
7,790
$
8,753
$
5,288
(16)
7
$
28,984
$
27,394
6
(a) Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
