Condensed Average Balance Sheets and Annualized Yields
6
Reconciliation from Reported to Managed Basis
7
Segment Results - Managed Basis
8
Capital and Other Selected Balance Sheet Items
9
Earnings Per Share and Related Information
10
Business Segment Results
Consumer & Community Banking (“CCB”)
11–14
Corporate & Investment Bank (“CIB”)
15–17
Commercial Banking (“CB”)
18–19
Asset & Wealth Management (“AWM”)
20–22
Corporate
23
Credit-Related Information
24–27
Non-GAAP Financial Measures
28
Glossary of Terms and Acronyms (a)
(a) Refer to the Glossary of Terms and Acronyms on pages 305–311 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”) and
the Glossary of Terms and Acronyms and Line of Business Metrics on pages 166-171 and pages 172-174, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31,
2022.
JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share and ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
SELECTED INCOME STATEMENT DATA
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
Reported Basis
Total net revenue
$
30,715
$
30,717
$
29,257
$
29,647
$
30,479
—
%
1
%
$
61,432
$
62,745
(2)
%
Total noninterest expense
18,749
19,191
17,888
17,063
17,667
(2)
6
37,940
36,392
4
Pre-provision profit (a)
11,966
11,526
11,369
12,584
12,812
4
(7)
23,492
26,353
(11)
Provision for credit losses
1,101
1,463
(1,288)
(1,527)
(2,285)
(25)
NM
2,564
(6,441)
NM
NET INCOME
8,649
8,282
10,399
11,687
11,948
4
(28)
16,931
26,248
(35)
Managed Basis (b)
Total net revenue
31,630
31,590
30,349
30,441
31,395
—
1
63,220
64,514
(2)
Total noninterest expense
18,749
19,191
17,888
17,063
17,667
(2)
6
37,940
36,392
4
Pre-provision profit (a)
12,881
12,399
12,461
13,378
13,728
4
(6)
25,280
28,122
(10)
Provision for credit losses
1,101
1,463
(1,288)
(1,527)
(2,285)
(25)
NM
2,564
(6,441)
NM
NET INCOME
8,649
8,282
10,399
11,687
11,948
4
(28)
16,931
26,248
(35)
EARNINGS PER SHARE DATA
Net income: Basic
$
2.77
$
2.64
$
3.33
$
3.74
$
3.79
5
(27)
$
5.40
$
8.30
(35)
Diluted
2.76
2.63
3.33
3.74
3.78
5
(27)
5.39
8.28
(35)
Average shares: Basic
2,962.2
2,977.0
2,977.3
2,999.9
3,036.6
—
(2)
2,969.6
3,054.9
(3)
Diluted
2,966.3
2,981.0
2,981.8
3,005.1
3,041.9
—
(2)
2,973.7
3,060.3
(3)
MARKET AND PER COMMON SHARE DATA
Market capitalization
$
330,237
$
400,379
$
466,206
$
483,748
$
464,778
(18)
(29)
$
330,237
$
464,778
(29)
Common shares at period-end
2,932.6
2,937.1
2,944.1
2,955.3
2,988.2
—
(2)
2,932.6
2,988.2
(2)
Book value per share
86.38
86.16
88.07
86.36
84.85
—
2
86.38
84.85
2
Tangible book value per share (“TBVPS”) (a)
69.53
69.58
71.53
69.87
68.91
—
1
69.53
68.91
1
Cash dividends declared per share
1.00
1.00
1.00
1.00
(f)
0.90
—
11
2.00
1.80
11
FINANCIAL RATIOS (c)
Return on common equity (“ROE”)
13
%
13
%
16
%
18
%
18
%
13
%
21
%
Return on tangible common equity (“ROTCE”) (a)
17
16
19
22
23
16
26
Return on assets
0.89
0.86
1.08
1.24
1.29
0.87
1.44
CAPITAL RATIOS (d)
Common equity Tier 1 (“CET1”) capital ratio
12.2
%
(e)
11.9
%
13.1
%
12.9
%
13.0
%
12.2
%
(e)
13.0
%
Tier 1 capital ratio
14.0
(e)
13.7
15.0
15.0
15.1
14.0
(e)
15.1
Total capital ratio
15.7
(e)
15.4
16.8
16.9
17.1
15.7
(e)
17.1
Tier 1 leverage ratio
6.2
(e)
6.2
6.5
6.6
6.6
6.2
(e)
6.6
Supplementary leverage ratio (“SLR”)
5.3
(e)
5.2
5.4
5.5
5.4
5.3
(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 for a reconciliation of common stockholders’ equity to TCE. Refer to page 28 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 relief provided by the Federal Reserve Board (the “Federal Reserve”) in response to the COVID-19 pandemic, including the Current Expected Credit Losses ("CECL") capital transition provisions. 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 June 30, 2022 and March 31, 2022, CET1 capital reflected the remaining $2.2 billion CECL benefit. For the periods ended December 31, 2021, September 30, 2021 and June 30, 2021, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $2.9 billion, $3.3 billion and $3.8 billion, respectively. Refer to Capital Risk Management on pages 35-40 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 and pages 86-96 of the Firm’s 2021 Form 10-K for additional information.
(e)Estimated.
(f)On September 21, 2021, the Board of Directors declared a quarterly common stock dividend of $1.00 per share.
Page 2
JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
3,841,314
$
3,954,687
$
3,743,567
$
3,757,576
$
3,684,256
(3)
%
4
%
$
3,841,314
$
3,684,256
4
%
Loans:
Consumer, excluding credit card loans
317,212
312,489
323,306
328,164
329,685
2
(4)
317,212
329,685
(4)
Credit card loans
165,494
152,283
154,296
143,166
141,802
9
17
165,494
141,802
17
Wholesale loans
621,449
608,513
600,112
573,285
569,467
2
9
621,449
569,467
9
Total Loans
1,104,155
1,073,285
1,077,714
1,044,615
1,040,954
3
6
1,104,155
1,040,954
6
Deposits:
U.S. offices:
Noninterest-bearing
714,478
721,401
711,525
(d)
686,457
(d)
639,114
(1)
12
714,478
639,114
12
Interest-bearing
1,343,802
1,412,589
1,359,932
(d)
1,314,073
(d)
1,281,432
(5)
5
1,343,802
1,281,432
5
Non-U.S. offices:
Noninterest-bearing
26,983
27,542
26,229
28,589
24,723
(2)
9
26,983
24,723
9
Interest-bearing
386,281
399,675
364,617
373,234
359,948
(3)
7
386,281
359,948
7
Total deposits
2,471,544
2,561,207
2,462,303
2,402,353
2,305,217
(4)
7
2,471,544
2,305,217
7
Long-term debt
288,212
293,239
301,005
298,465
299,926
(2)
(4)
288,212
299,926
(4)
Common stockholders’ equity
253,305
253,061
259,289
255,203
253,548
—
—
253,305
253,548
—
Total stockholders’ equity
286,143
285,899
294,127
290,041
286,386
—
—
286,143
286,386
—
Loans-to-deposits ratio
45
%
42
%
44
%
43
%
45
%
45
%
45
%
Headcount
278,494
273,948
271,025
265,790
260,110
2
7
278,494
260,110
7
95% CONFIDENCE LEVEL - TOTAL VaR
Average VaR
$
54
$
63
(c)
$
37
$
36
(d)
$
43
(14)
26
LINE OF BUSINESS NET REVENUE (a)
Consumer & Community Banking
$
12,614
$
12,229
$
12,275
$
12,521
$
12,760
3
(1)
$
24,843
$
25,277
(2)
Corporate & Investment Bank
11,947
13,529
11,534
12,396
13,214
(12)
(10)
25,476
27,819
(8)
Commercial Banking
2,683
2,398
2,612
2,520
2,483
12
8
5,081
4,876
4
Asset & Wealth Management
4,306
4,315
4,473
4,300
4,107
—
5
8,621
8,184
5
Corporate
80
(881)
(545)
(1,296)
(1,169)
NM
NM
(801)
(1,642)
51
TOTAL NET REVENUE
$
31,630
$
31,590
$
30,349
$
30,441
$
31,395
—
1
$
63,220
$
64,514
(2)
LINE OF BUSINESS NET INCOME/(LOSS)
Consumer & Community Banking (b)
$
3,100
$
2,895
$
4,147
$
4,351
$
5,645
7
(45)
$
5,995
$
12,432
(52)
Corporate & Investment Bank (b)
3,725
4,385
4,543
5,647
5,020
(15)
(26)
8,110
10,944
(26)
Commercial Banking (b)
994
850
1,234
1,409
1,422
17
(30)
1,844
2,603
(29)
Asset & Wealth Management (b)
1,004
1,008
1,125
1,196
1,156
—
(13)
2,012
2,416
(17)
Corporate (b)
(174)
(856)
(650)
(916)
(1,295)
80
87
(1,030)
(2,147)
52
NET INCOME
$
8,649
$
8,282
$
10,399
$
11,687
$
11,948
4
(28)
$
16,931
$
26,248
(35)
(a)Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.
(b)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.
(c)Refer to Corporate & Investment Bank credit portfolio VaR on page 17 for a further discussion of VaR.
(d)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,
2Q22 Change
2022 Change
REVENUE
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
Investment banking fees
$
1,586
$
2,008
$
3,494
$
3,282
$
3,470
(21)
%
(54)
%
$
3,594
$
6,440
(44)
%
Principal transactions
4,990
5,105
2,182
3,546
4,076
(2)
22
10,095
10,576
(5)
Lending- and deposit-related fees
1,873
1,839
1,784
1,801
1,760
2
6
3,712
3,447
8
Asset management, administration and commissions
5,240
5,362
5,549
5,257
5,194
(2)
1
10,602
10,223
4
Investment securities gains/(losses)
(153)
(394)
52
(256)
(155)
61
1
(547)
(141)
(288)
Mortgage fees and related income
378
460
315
600
551
(18)
(31)
838
1,255
(33)
Card income
1,133
975
1,100
1,005
1,647
16
(31)
2,108
2,997
(30)
Other income
540
1,490
1,180
1,332
1,195
(64)
(55)
2,030
2,318
(12)
Noninterest revenue
15,587
16,845
15,656
16,567
17,738
(7)
(12)
32,432
37,115
(13)
Interest income
18,646
15,496
15,019
14,480
14,094
20
32
34,142
28,365
20
Interest expense
3,518
1,624
1,418
1,400
1,353
117
160
5,142
2,735
88
Net interest income
15,128
13,872
13,601
13,080
12,741
9
19
29,000
25,630
13
TOTAL NET REVENUE
30,715
30,717
29,257
29,647
30,479
—
1
61,432
62,745
(2)
Provision for credit losses
1,101
1,463
(1,288)
(1,527)
(2,285)
(25)
NM
2,564
(6,441)
NM
NONINTEREST EXPENSE
Compensation expense
10,301
10,787
9,065
9,087
9,814
(5)
5
21,088
20,415
3
Occupancy expense
1,129
1,134
1,202
1,109
1,090
—
4
2,263
2,205
3
Technology, communications and equipment expense
2,376
2,360
2,461
2,473
2,488
1
(5)
4,736
5,007
(5)
Professional and outside services
2,469
2,572
2,703
2,523
2,385
(4)
4
5,041
4,588
10
Marketing
881
920
947
712
626
(4)
41
1,801
1,377
31
Other expense (a)
1,593
1,418
1,510
1,159
1,264
12
26
3,011
2,800
8
TOTAL NONINTEREST EXPENSE
18,749
19,191
17,888
17,063
17,667
(2)
6
37,940
36,392
4
Income before income tax expense
10,865
10,063
12,657
14,111
15,097
8
(28)
20,928
32,794
(36)
Income tax expense
2,216
1,781
2,258
2,424
3,149
24
(30)
3,997
6,546
(39)
NET INCOME
$
8,649
$
8,282
$
10,399
$
11,687
$
11,948
4
(28)
$
16,931
$
26,248
(35)
NET INCOME PER COMMON SHARE DATA
Basic earnings per share
$
2.77
$
2.64
$
3.33
$
3.74
$
3.79
5
(27)
$
5.40
$
8.30
(35)
Diluted earnings per share
2.76
2.63
3.33
3.74
3.78
5
(27)
5.39
8.28
(35)
FINANCIAL RATIOS
Return on common equity (b)
13
%
13
%
16
%
18
%
18
%
13
%
21
%
Return on tangible common equity (b)(c)
17
16
19
22
23
16
26
Return on assets (b)
0.89
0.86
1.08
1.24
1.29
0.87
1.44
Effective income tax rate
20.4
17.7
17.8
17.2
20.9
19.1
20.0
Overhead ratio
61
62
61
58
58
62
58
(a)Included Firmwide legal expense of $73 million, $119 million, $137 million, $76 million and $185 million for the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively, and $192 million and $213 million for the six months ended June 30, 2022 and June 30, 2021 respectively.
(b)Quarterly ratios are based upon annualized amounts.
(c)Refer to page 28 for further discussion of ROTCE.
Page 4
JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
Jun 30, 2022
Change
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Jun 30,
2022
2022
2021
2021
2021
2022
2021
ASSETS
Cash and due from banks
$
27,215
$
26,165
$
26,438
$
25,857
$
26,592
4
%
2
%
Deposits with banks
642,045
728,367
714,396
734,012
678,829
(12)
(5)
Federal funds sold and securities purchased under
resale agreements
322,156
301,875
261,698
282,161
260,987
7
23
Securities borrowed
202,393
224,852
206,071
202,987
186,376
(10)
9
Trading assets:
Debt and equity instruments
384,260
437,892
376,494
447,993
454,268
(a)
(12)
(15)
Derivative receivables
81,317
73,636
57,081
67,908
66,320
(a)
10
23
Available-for-sale (“AFS”) securities
222,069
312,875
308,525
251,590
232,161
(29)
(4)
Held-to-maturity (”HTM”) securities, net of allowance for credit losses
441,649
366,585
363,707
343,542
341,476
20
29
Investment securities, net of allowance for credit losses
663,718
679,460
672,232
595,132
573,637
(2)
16
Loans
1,104,155
1,073,285
1,077,714
1,044,615
1,040,954
3
6
Less: Allowance for loan losses
17,750
17,192
16,386
18,150
19,500
3
(9)
Loans, net of allowance for loan losses
1,086,405
1,056,093
1,061,328
1,026,465
1,021,454
3
6
Accrued interest and accounts receivable
145,442
152,207
102,570
116,395
125,253
(4)
16
Premises and equipment
26,770
26,916
27,070
26,996
26,631
(1)
1
Goodwill, MSRs and other intangible assets
59,360
58,485
56,691
56,566
54,655
1
9
Other assets
200,233
188,739
181,498
175,104
209,254
6
(4)
TOTAL ASSETS
$
3,841,314
$
3,954,687
$
3,743,567
$
3,757,576
$
3,684,256
(3)
4
LIABILITIES
Deposits
$
2,471,544
$
2,561,207
$
2,462,303
$
2,402,353
$
2,305,217
(4)
7
Federal funds purchased and securities loaned or sold
under repurchase agreements
222,719
223,858
194,340
254,920
245,437
(1)
(9)
Short-term borrowings
58,422
57,586
53,594
50,393
51,938
1
12
Trading liabilities:
Debt and equity instruments
137,891
144,280
114,577
126,058
127,822
(4)
8
Derivative payables
52,417
57,803
50,116
53,485
56,045
(9)
(6)
Accounts payable and other liabilities
313,326
320,671
262,755
268,604
297,082
(2)
5
Beneficial interests issued by consolidated VIEs
10,640
10,144
10,750
13,257
14,403
5
(26)
Long-term debt
288,212
293,239
301,005
298,465
299,926
(2)
(4)
TOTAL LIABILITIES
3,555,171
3,668,788
3,449,440
3,467,535
3,397,870
(3)
5
STOCKHOLDERS’ EQUITY
Preferred stock
32,838
32,838
34,838
34,838
32,838
—
—
Common stock
4,105
4,105
4,105
4,105
4,105
—
—
Additional paid-in capital
88,614
88,260
88,415
88,357
88,194
—
—
Retained earnings
282,445
277,177
272,268
265,276
256,983
2
10
Accumulated other comprehensive income/(loss)
(14,369)
(9,567)
(84)
963
2,570
(50)
NM
Treasury stock, at cost
(107,490)
(106,914)
(105,415)
(103,498)
(98,304)
(1)
(9)
TOTAL STOCKHOLDERS’ EQUITY
286,143
285,899
294,127
290,041
286,386
—
—
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
3,841,314
$
3,954,687
$
3,743,567
$
3,757,576
$
3,684,256
(3)
4
(a)Prior-period amounts have been revised to conform with the current presentation.
Page 5
JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
AVERAGE BALANCES
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
ASSETS
Deposits with banks
$
694,644
$
742,311
$
767,713
$
756,653
$
721,214
(6)
%
(4)
%
$
718,346
$
676,658
6
%
Federal funds sold and securities purchased under resale agreements
305,132
294,951
268,953
262,679
255,831
3
19
300,070
272,704
10
Securities borrowed
207,437
218,030
207,059
189,418
190,785
(5)
9
212,704
182,945
16
Trading assets - debt instruments
273,736
272,116
260,555
275,860
277,024
1
(1)
272,931
299,710
(9)
Investment securities
672,799
671,165
642,675
565,344
585,084
—
15
671,987
583,779
15
Loans
1,093,106
1,068,637
1,060,254
1,042,591
1,024,633
2
7
1,080,939
1,019,109
6
All other interest-earning assets (a)
139,040
134,741
130,646
127,241
122,624
3
13
136,902
117,117
17
Total interest-earning assets
3,385,894
3,401,951
3,337,855
3,219,786
3,177,195
—
7
3,393,879
3,152,022
8
Trading assets - equity and other instruments
151,309
156,908
150,770
177,315
199,288
(g)
(4)
(24)
154,093
181,746
(15)
Trading assets - derivative receivables
84,483
67,334
66,024
65,574
70,212
(g)
25
20
75,956
72,459
5
All other noninterest-earning assets
289,957
280,595
277,006
262,544
281,992
3
3
285,301
264,857
8
TOTAL ASSETS
$
3,911,643
$
3,906,788
$
3,831,655
$
3,725,219
$
3,728,687
—
5
$
3,909,229
$
3,671,084
6
LIABILITIES
Interest-bearing deposits
$
1,790,421
$
1,781,320
$
1,731,609
(g)
$
1,677,837
(g)
$
1,669,376
1
7
$
1,785,896
$
1,640,085
9
Federal funds purchased and securities loaned or
sold under repurchase agreements
233,376
250,215
234,504
240,912
261,343
(7)
(11)
241,749
281,254
(14)
Short-term borrowings (b)
50,833
47,871
46,456
43,759
46,185
6
10
49,360
44,120
12
Trading liabilities - debt and all other interest-bearing liabilities (c)
274,435
263,025
246,675
241,297
246,666
4
11
268,762
238,836
13
Beneficial interests issued by consolidated VIEs
10,577
10,891
11,906
14,232
15,117
(3)
(30)
10,733
16,145
(34)
Long-term debt
246,195
254,180
255,710
257,593
248,552
(3)
(1)
250,165
244,000
3
Total interest-bearing liabilities
2,605,837
2,607,502
2,526,860
2,475,630
2,487,239
—
5
2,606,665
2,464,440
6
Noninterest-bearing deposits
741,891
734,233
736,203
(g)
691,622
(g)
654,419
1
13
738,083
634,403
16
Trading liabilities - equity and other instruments
40,937
43,394
40,645
35,505
35,397
(6)
16
42,159
35,214
20
Trading liabilities - derivative payables
61,026
54,522
55,063
55,907
62,533
12
(2)
57,792
65,231
(11)
All other noninterest-bearing liabilities
181,128
181,105
184,241
178,770
205,584
—
(12)
181,116
192,091
(6)
TOTAL LIABILITIES
3,630,819
3,620,756
3,543,012
3,437,434
3,445,172
—
5
3,625,815
3,391,379
7
Preferred stock
32,838
33,526
34,838
34,229
32,666
(2)
1
33,180
31,496
5
Common stockholders’ equity
247,986
252,506
253,805
253,556
250,849
(2)
(1)
250,234
248,209
1
TOTAL STOCKHOLDERS’ EQUITY
280,824
286,032
288,643
287,785
283,515
(2)
(1)
283,414
279,705
1
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
3,911,643
$
3,906,788
$
3,831,655
$
3,725,219
$
3,728,687
—
5
$
3,909,229
$
3,671,084
6
AVERAGE RATES (d)
INTEREST-EARNING ASSETS
Deposits with banks
0.62
%
0.13
%
0.09
%
0.09
%
0.06
%
0.37
%
0.05
%
Federal funds sold and securities purchased under resale agreements
0.71
0.55
0.47
0.35
0.27
0.63
0.30
Securities borrowed (e)
0.33
(0.16)
(0.28)
(0.15)
(0.19)
0.08
(0.18)
Trading assets - debt instruments
3.02
2.65
2.52
2.43
2.49
2.83
2.36
Investment securities
1.55
1.38
1.26
1.32
1.31
1.47
1.34
Loans
4.28
4.05
4.04
3.99
3.98
4.16
4.04
All other interest-earning assets (a)
1.85
0.97
0.87
0.64
0.66
1.42
0.69
Total interest-earning assets
2.22
1.86
1.80
1.80
1.79
2.04
1.83
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
0.20
0.04
0.03
0.03
0.03
0.12
0.03
Federal funds purchased and securities loaned or
sold under repurchase agreements
0.80
0.19
0.13
0.20
0.09
0.49
0.05
Short-term borrowings (b)
0.73
0.32
0.26
0.26
0.30
0.53
0.31
Trading liabilities - debt and all other interest-bearing liabilities (c)(e)
0.69
0.30
0.20
0.09
0.08
0.50
0.07
Beneficial interests issued by consolidated VIEs
1.11
0.69
0.56
0.50
0.55
0.90
0.60
Long-term debt
2.54
1.72
1.61
1.62
1.70
2.13
1.81
Total interest-bearing liabilities
0.54
0.25
0.22
0.22
0.22
0.40
0.22
INTEREST RATE SPREAD
1.68
1.61
1.58
1.58
1.57
1.64
1.61
NET YIELD ON INTEREST-EARNING ASSETS
1.80
1.67
1.63
1.62
1.62
1.74
1.65
Memo: Net yield on interest-earning assets excluding Markets (f)
2.26
1.95
1.90
1.91
1.90
2.11
1.92
(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 income and yields are related to the impact of interest rates combined with the fees paid on client-driven securities borrowed balances. The negative interest expense related to prime brokerage customer payables is recognized in interest expense and reported within trading liabilities - debt and all other liabilities.
(f) Net yield on interest-earning assets excluding Markets is a non-GAAP financial measure. Refer to page 28 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 28 for additional information on managed basis.
The following summary table provides a reconciliation from reported U.S. GAAP results to managed basis.
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
OTHER INCOME
Other income - reported
$
540
$
1,490
$
1,180
$
1,332
$
1,195
(64)
%
(55)
%
$
2,030
$
2,318
(12)
%
Fully taxable-equivalent adjustments (a)
812
775
984
690
807
5
1
1,587
1,551
2
Other income - managed
$
1,352
$
2,265
$
2,164
$
2,022
$
2,002
(40)
(32)
$
3,617
$
3,869
(7)
TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported
$
15,587
$
16,845
$
15,656
$
16,567
$
17,738
(7)
(12)
$
32,432
$
37,115
(13)
Fully taxable-equivalent adjustments
812
775
984
690
807
5
1
1,587
1,551
2
Total noninterest revenue - managed
$
16,399
$
17,620
$
16,640
$
17,257
$
18,545
(7)
(12)
$
34,019
$
38,666
(12)
NET INTEREST INCOME
Net interest income - reported
$
15,128
$
13,872
$
13,601
$
13,080
$
12,741
9
19
$
29,000
$
25,630
13
Fully taxable-equivalent adjustments (a)
103
98
108
104
109
5
(6)
201
218
(8)
Net interest income - managed
$
15,231
$
13,970
$
13,709
$
13,184
$
12,850
9
19
$
29,201
$
25,848
13
TOTAL NET REVENUE
Total net revenue - reported
$
30,715
$
30,717
$
29,257
$
29,647
$
30,479
—
1
$
61,432
$
62,745
(2)
Fully taxable-equivalent adjustments
915
873
1,092
794
916
5
—
1,788
1,769
1
Total net revenue - managed
$
31,630
$
31,590
$
30,349
$
30,441
$
31,395
—
1
$
63,220
$
64,514
(2)
PRE-PROVISION PROFIT
Pre-provision profit - reported
$
11,966
$
11,526
$
11,369
$
12,584
$
12,812
4
(7)
$
23,492
$
26,353
(11)
Fully taxable-equivalent adjustments
915
873
1,092
794
916
5
—
1,788
1,769
1
Pre-provision profit - managed
$
12,881
$
12,399
$
12,461
$
13,378
$
13,728
4
(6)
$
25,280
$
28,122
(10)
INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported
$
10,865
$
10,063
$
12,657
$
14,111
$
15,097
8
(28)
$
20,928
$
32,794
(36)
Fully taxable-equivalent adjustments
915
873
1,092
794
916
5
—
1,788
1,769
1
Income before income tax expense - managed
$
11,780
$
10,936
$
13,749
$
14,905
$
16,013
8
(26)
$
22,716
$
34,563
(34)
INCOME TAX EXPENSE
Income tax expense - reported
$
2,216
$
1,781
$
2,258
$
2,424
$
3,149
24
(30)
$
3,997
$
6,546
(39)
Fully taxable-equivalent adjustments
915
873
1,092
794
916
5
—
1,788
1,769
1
Income tax expense - managed
$
3,131
$
2,654
$
3,350
$
3,218
$
4,065
18
(23)
$
5,785
$
8,315
(30)
OVERHEAD RATIO
Overhead ratio - reported
61
%
62
%
61
%
58
%
58
%
62
%
58
%
Overhead ratio - managed
59
61
59
56
56
60
56
(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,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking
$
12,614
$
12,229
$
12,275
$
12,521
$
12,760
3
%
(1)
%
$
24,843
$
25,277
(2)
%
Corporate & Investment Bank
11,947
13,529
11,534
12,396
13,214
(12)
(10)
25,476
27,819
(8)
Commercial Banking
2,683
2,398
2,612
2,520
2,483
12
8
5,081
4,876
4
Asset & Wealth Management
4,306
4,315
4,473
4,300
4,107
—
5
8,621
8,184
5
Corporate
80
(881)
(545)
(1,296)
(1,169)
NM
NM
(801)
(1,642)
51
TOTAL NET REVENUE
$
31,630
$
31,590
$
30,349
$
30,441
$
31,395
—
1
$
63,220
$
64,514
(2)
TOTAL NONINTEREST EXPENSE
Consumer & Community Banking
$
7,723
$
7,720
$
7,754
$
7,238
$
7,062
—
9
$
15,443
$
14,264
8
Corporate & Investment Bank
6,745
7,298
5,827
5,871
6,523
(8)
3
14,043
13,627
3
Commercial Banking
1,156
1,129
1,059
1,032
981
2
18
2,285
1,950
17
Asset & Wealth Management
2,919
2,860
2,997
2,762
2,586
2
13
5,779
5,160
12
Corporate
206
184
251
160
515
12
(60)
390
1,391
(72)
TOTAL NONINTEREST EXPENSE
$
18,749
$
19,191
$
17,888
$
17,063
$
17,667
(2)
6
$
37,940
$
36,392
4
PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking
$
4,891
$
4,509
$
4,521
$
5,283
$
5,698
8
(14)
$
9,400
$
11,013
(15)
Corporate & Investment Bank
5,202
6,231
5,707
6,525
6,691
(17)
(22)
11,433
14,192
(19)
Commercial Banking
1,527
1,269
1,553
1,488
1,502
20
2
2,796
2,926
(4)
Asset & Wealth Management
1,387
1,455
1,476
1,538
1,521
(5)
(9)
2,842
3,024
(6)
Corporate
(126)
(1,065)
(796)
(1,456)
(1,684)
88
93
(1,191)
(3,033)
61
PRE-PROVISION PROFIT
$
12,881
$
12,399
$
12,461
$
13,378
$
13,728
4
(6)
$
25,280
$
28,122
(10)
PROVISION FOR CREDIT LOSSES
Consumer & Community Banking
$
761
$
678
$
(1,060)
$
(459)
$
(1,868)
12
NM
$
1,439
$
(5,470)
NM
Corporate & Investment Bank
59
445
(126)
(638)
(79)
(87)
NM
504
(410)
NM
Commercial Banking
209
157
(89)
(363)
(377)
33
NM
366
(495)
NM
Asset & Wealth Management
44
154
(36)
(60)
(10)
(71)
NM
198
(131)
NM
Corporate
28
29
23
(7)
49
(3)
(43)
57
65
(12)
PROVISION FOR CREDIT LOSSES
$
1,101
$
1,463
$
(1,288)
$
(1,527)
$
(2,285)
(25)
NM
$
2,564
$
(6,441)
NM
NET INCOME/(LOSS)
Consumer & Community Banking (a)
$
3,100
$
2,895
$
4,147
$
4,351
$
5,645
7
(45)
$
5,995
$
12,432
(52)
Corporate & Investment Bank (a)
3,725
4,385
4,543
5,647
5,020
(15)
(26)
8,110
10,944
(26)
Commercial Banking (a)
994
850
1,234
1,409
1,422
17
(30)
1,844
2,603
(29)
Asset & Wealth Management (a)
1,004
1,008
1,125
1,196
1,156
—
(13)
2,012
2,416
(17)
Corporate (a)
(174)
(856)
(650)
(916)
(1,295)
80
87
(1,030)
(2,147)
52
TOTAL NET INCOME
$
8,649
$
8,282
$
10,399
$
11,687
$
11,948
4
(28)
$
16,931
$
26,248
(35)
(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 8
JPMORGAN CHASE & CO.
CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS
(in millions, except ratio data)
Jun 30, 2022
Change
SIX MONTHS ENDED JUNE 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Jun 30,
2022 Change
2022
2022
2021
2021
2021
2022
2021
2022
2021
2021
CAPITAL (a)
Risk-based capital metrics
Standardized
CET1 capital
$
207,449
(e)
$
207,903
$
213,942
$
209,917
$
209,010
—
%
(1)
%
Tier 1 capital
239,725
(e)
240,076
246,162
244,207
241,356
—
(1)
Total capital
268,379
(e)
269,536
274,900
274,994
274,443
—
(2)
Risk-weighted assets
1,707,090
(e)
1,750,678
1,638,900
1,628,406
1,601,631
(2)
7
CET1 capital ratio
12.2
%
(e)
11.9
%
13.1
%
12.9
%
13.0
%
Tier 1 capital ratio
14.0
(e)
13.7
15.0
15.0
15.1
Total capital ratio
15.7
(e)
15.4
16.8
16.9
17.1
Advanced
CET1 capital
$
207,449
(e)
$
207,903
$
213,942
$
209,917
$
209,010
—
(1)
Tier 1 capital
239,725
(e)
240,076
246,162
244,207
241,356
—
(1)
Total capital
257,386
(e)
258,989
265,796
264,469
262,364
(1)
(2)
Risk-weighted assets
1,617,545
(e)
1,643,453
1,547,920
1,544,512
1,514,386
(2)
7
CET1 capital ratio
12.8
%
(e)
12.7
%
13.8
%
13.6
%
13.8
%
Tier 1 capital ratio
14.8
(e)
14.6
15.9
15.8
15.9
Total capital ratio
15.9
(e)
15.8
17.2
17.1
17.3
Leverage-based capital metrics
Adjusted average assets (b)
$
3,861,951
(e)
$
3,857,783
$
3,782,035
$
3,675,803
$
3,680,830
—
5
Tier 1 leverage ratio
6.2
%
(e)
6.2
%
6.5
%
6.6
%
6.6
%
Total leverage exposure
$
4,562,790
(e)
$
4,586,537
$
4,571,789
$
4,463,904
$
4,456,557
(1)
2
SLR
5.3
%
(e)
5.2
%
5.4
%
5.5
%
5.4
%
TANGIBLE COMMON EQUITY (period-end) (c)
Common stockholders’ equity
$
253,305
$
253,061
$
259,289
$
255,203
$
253,548
—
—
Less: Goodwill
50,697
50,298
50,315
50,313
49,256
1
3
Less: Other intangible assets
1,224
893
882
902
850
37
44
Add: Certain deferred tax liabilities (d)
2,509
2,496
2,499
2,500
2,461
1
2
Total tangible common equity
$
203,893
$
204,366
$
210,591
$
206,488
$
205,903
—
(1)
TANGIBLE COMMON EQUITY (average) (c)
Common stockholders’ equity
$
247,986
$
252,506
$
253,805
$
253,556
$
250,849
(2)
(1)
$
250,234
$
248,209
1
%
Less: Goodwill
50,575
50,307
50,362
49,457
49,260
1
3
50,442
49,254
2
Less: Other intangible assets
1,119
896
896
849
864
25
30
1,007
877
15
Add: Certain deferred tax liabilities (d)
2,503
2,498
2,502
2,480
2,459
—
2
2,500
2,457
2
Total tangible common equity
$
198,795
$
203,801
$
205,049
$
205,730
$
203,184
(2)
(2)
$
201,285
$
200,535
—
INTANGIBLE ASSETS (period-end)
Goodwill
$
50,697
$
50,298
$
50,315
$
50,313
$
49,256
1
3
Mortgage servicing rights
7,439
7,294
5,494
5,351
4,549
2
64
Other intangible assets
1,224
893
882
902
850
37
44
Total intangible assets
$
59,360
$
58,485
$
56,691
$
56,566
$
54,655
1
9
(a)The capital metrics reflect the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including the CECL capital transition provisions. 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 June 30, 2022 and March 31, 2022, CET1 capital reflected the remaining $2.2 billion CECL benefit. For the periods ended December 31, 2021, September 30, 2021 and June 30, 2021, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $2.9 billion, $3.3 billion and $3.8 billion, respectively. Refer to Capital Risk Management on pages 35-40 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 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)Refer to page 28 for further discussion of TCE.
(d)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating TCE.
(e)Estimated.
Page 9
JPMORGAN CHASE & CO.
EARNINGS PER SHARE AND RELATED INFORMATION
(in millions, except per share and ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
EARNINGS PER SHARE
Basic earnings per share
Net income
$
8,649
$
8,282
$
10,399
$
11,687
$
11,948
4
%
(28)
%
$
16,931
$
26,248
(35)
%
Less: Preferred stock dividends
410
397
426
402
393
3
4
807
772
5
Net income applicable to common equity
8,239
7,885
9,973
11,285
11,555
4
(29)
16,124
25,476
(37)
Less: Dividends and undistributed earnings allocated to
participating securities
44
40
46
56
59
10
(25)
85
130
(35)
Net income applicable to common stockholders
$
8,195
$
7,845
$
9,927
$
11,229
$
11,496
4
(29)
$
16,039
$
25,346
(37)
Total weighted-average basic shares outstanding
2,962.2
2,977.0
2,977.3
2,999.9
3,036.6
—
(2)
2,969.6
3,054.9
(3)
Net income per share
$
2.77
$
2.64
$
3.33
$
3.74
$
3.79
5
(27)
$
5.40
$
8.30
(35)
Diluted earnings per share
Net income applicable to common stockholders
$
8,195
$
7,845
$
9,927
$
11,229
$
11,496
4
(29)
$
16,039
$
25,346
(37)
Total weighted-average basic shares outstanding
2,962.2
2,977.0
2,977.3
2,999.9
3,036.6
—
(2)
2,969.6
3,054.9
(3)
Add: Dilutive impact of stock appreciation rights (“SARs”) and employee stock options, unvested performance share units (“PSUs”) and nondividend-earning restricted stock units (“RSUs”)
4.1
4.0
4.5
5.2
5.3
2
(23)
4.1
5.4
(24)
Total weighted-average diluted shares outstanding
2,966.3
2,981.0
2,981.8
3,005.1
3,041.9
—
(2)
2,973.7
3,060.3
(3)
Net income per share
$
2.76
$
2.63
$
3.33
$
3.74
$
3.78
5
(27)
$
5.39
$
8.28
(35)
COMMON DIVIDENDS
Cash dividends declared per share
$
1.00
$
1.00
$
1.00
$
1.00
(c)
$
0.90
—
11
$
2.00
$
1.80
11
Dividend payout ratio
36
%
38
%
30
%
27
%
24
%
37
%
22
%
COMMON SHARE REPURCHASE PROGRAM (a)
Total shares of common stock repurchased
5.0
18.1
12.1
33.4
39.5
(72)
(87)
23.1
74.2
(69)
Average price paid per share of common stock
$
124.88
$
138.04
$
165.47
$
156.87
$
156.83
(10)
(20)
$
135.20
$
150.95
(10)
Aggregate repurchases of common stock
622
2,500
2,008
5,240
6,201
(75)
(90)
3,122
11,200
(72)
EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans
0.5
11.0
1.1
0.5
0.6
(95)
(17)
11.5
12.9
(11)
Net impact of employee issuances on stockholders’ equity (b)
$
398
$
843
$
147
$
271
$
276
(53)
44
$
1,241
$
943
32
(a)Effective May 1, 2022, the Firm replaced its previously approved program and is authorized to purchase up to $30 billion of common shares under a new equity repurchase program. As a result of the recent stress test results and anticipated increases in regulatory capital requirements, share repurchases have been temporarily suspended.
(b)The net impact of employee issuances on stockholders’ equity is driven by the cost of equity compensation awards that is recognized over the applicable vesting periods. The cost is partially offset by tax impacts related to the distribution of shares and the exercise of employee stock options and SARs.
(c)On September 21, 2021, the Board of Directors declared a quarterly common stock dividend of $1.00 per share.
Page 10
JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees
$
855
$
805
$
753
$
786
$
753
6
%
14
%
$
1,660
$
1,495
11
%
Asset management, administration and commissions
947
929
950
893
866
2
9
1,876
1,671
12
Mortgage fees and related income
377
456
312
596
548
(17)
(31)
833
1,251
(33)
Card income
678
590
675
651
1,238
15
(45)
1,268
2,237
(43)
All other income
1,049
1,122
1,144
1,212
1,321
(7)
(21)
2,171
2,660
(18)
Noninterest revenue
3,906
3,902
3,834
4,138
4,726
—
(17)
7,808
9,314
(16)
Net interest income
8,708
8,327
8,441
8,383
8,034
5
8
17,035
15,963
7
TOTAL NET REVENUE
12,614
12,229
12,275
12,521
12,760
3
(1)
24,843
25,277
(2)
Provision for credit losses
761
678
(1,060)
(459)
(1,868)
12
NM
1,439
(5,470)
NM
NONINTEREST EXPENSE
Compensation expense
3,237
3,171
3,177
3,012
2,977
2
9
6,408
5,953
8
Noncompensation expense (a)
4,486
4,549
4,577
4,226
4,085
(1)
10
9,035
8,311
9
TOTAL NONINTEREST EXPENSE
7,723
7,720
7,754
7,238
7,062
—
9
15,443
14,264
8
Income/(loss) before income tax expense/(benefit)
4,130
3,831
5,581
5,742
7,566
8
(45)
7,961
16,483
(52)
Income tax expense/(benefit) (b)
1,030
936
1,434
1,391
1,921
10
(46)
1,966
4,051
(51)
NET INCOME/(LOSS) (b)
$
3,100
$
2,895
$
4,147
$
4,351
$
5,645
7
(45)
$
5,995
$
12,432
(52)
REVENUE BY LINE OF BUSINESS
Consumer & Business Banking
$
6,558
$
6,062
$
6,172
$
6,157
$
6,016
8
9
$
12,620
$
11,651
8
Home Lending
1,001
1,169
1,084
1,400
1,349
(14)
(26)
2,170
2,807
(23)
Card & Auto
5,055
4,998
5,019
4,964
5,395
1
(6)
10,053
10,819
(7)
MORTGAGE FEES AND RELATED INCOME DETAILS
Production revenue
150
211
327
614
517
(29)
(71)
361
1,274
(72)
Net mortgage servicing revenue (c)
227
245
(15)
(18)
31
(7)
NM
472
(23)
NM
Mortgage fees and related income
$
377
$
456
$
312
$
596
$
548
(17)
(31)
$
833
$
1,251
(33)
FINANCIAL RATIOS
ROE
24
%
23
%
32
%
(b)
34
%
44
%
23
%
49
%
Overhead ratio
61
63
63
58
55
62
56
(a)Included depreciation expense on leased assets of $652 million, $694 million, $767 million, $769 million and $856 million for the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively, and $1.3 billion and $1.8 billion for the six months ended June 30, 2022 and 2021, respectively.
(b)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.
(c)Included MSR risk management results of $28 million, $109 million, $(162) million, $(145) million and $(103) million for the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively, and $137 million and $(218) million for the six months ended June 30, 2022 and 2021, respectively.
Page 11
JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
500,219
$
486,183
$
500,370
$
493,169
$
494,305
3
%
1
%
$
500,219
$
494,305
1
%
Loans:
Consumer & Business Banking (a)
31,494
32,772
35,095
40,659
46,228
(4)
(32)
31,494
46,228
(32)
Home Lending (b)
176,939
172,025
180,529
179,489
179,371
3
(1)
176,939
179,371
(1)
Card
165,494
152,283
154,296
143,166
141,802
9
17
165,494
141,802
17
Auto
67,842
69,251
69,138
68,391
67,598
(2)
—
67,842
67,598
—
Total loans
441,769
426,331
439,058
431,705
434,999
4
2
441,769
434,999
2
Deposits
1,178,825
1,189,308
1,148,110
1,093,852
1,056,507
(1)
12
1,178,825
1,056,507
12
Equity
50,000
50,000
50,000
50,000
50,000
—
—
50,000
50,000
—
SELECTED BALANCE SHEET DATA (average)
Total assets
$
496,177
$
488,967
$
497,675
$
491,512
$
485,209
1
2
$
492,592
$
484,868
2
Loans:
Consumer & Business Banking
32,294
33,742
37,299
43,256
49,356
(4)
(35)
33,014
49,611
(33)
Home Lending (c)
177,330
176,488
183,343
181,150
177,444
—
—
176,911
179,832
(2)
Card
158,434
149,398
148,471
141,950
136,149
6
16
153,941
135,520
14
Auto
68,569
69,250
68,549
67,785
67,183
(1)
2
68,908
67,072
3
Total loans
436,627
428,878
437,662
434,141
430,132
2
2
432,774
432,035
—
Deposits
1,180,453
1,153,513
1,114,329
1,076,323
1,047,771
2
13
1,167,057
1,013,917
15
Equity
50,000
50,000
50,000
50,000
50,000
—
—
50,000
50,000
—
Headcount
130,907
129,268
128,863
126,586
125,300
1
4
130,907
125,300
4
(a)At June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021 included $1.5 billion, $2.9 billion, $5.4 billion, $11.1 billion and $16.7 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 June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, Home Lending loans held-for-sale and loans at fair value were $5.2 billion, $5.8 billion, $14.9 billion, $14.5 billion and $16.5 billion, respectively.
(c)Average Home Lending loans held-for sale and loans at fair value were $8.1 billion, $10.8 billion, $17.8 billion, $17.1 billion and $14.2 billion for the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively, and $9.5 billion and $13.3 billion for the six months ended June 30, 2022 and 2021, respectively.
Page 12
JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a)(b)(c)
$
4,217
$
4,531
$
4,875
$
5,000
$
5,256
(7)
%
(20)
%
$
4,217
$
5,256
(20)
%
Net charge-offs/(recoveries)
Consumer & Business Banking
81
89
86
66
72
(9)
13
170
137
24
Home Lending
(68)
(69)
(71)
(74)
(79)
1
14
(137)
(130)
(5)
Card
580
506
479
495
755
15
(23)
1,086
1,738
(38)
Auto
18
27
21
4
(16)
(33)
NM
45
10
350
Total net charge-offs/(recoveries)
$
611
$
553
$
515
$
491
$
732
10
(17)
$
1,164
$
1,755
(34)
Net charge-off/(recovery) rate
Consumer & Business Banking (d)
1.01
%
1.07
%
0.91
%
0.61
%
0.59
%
1.04
%
0.56
%
Home Lending
(0.16)
(0.17)
(0.17)
(0.18)
(0.19)
(0.16)
(0.16)
Card
1.47
1.37
1.28
1.39
2.24
1.42
2.60
Auto
0.11
0.16
0.12
0.02
(0.10)
0.13
0.03
Total net charge-off/(recovery) rate
0.57
0.54
0.49
0.47
0.71
0.55
0.85
30+ day delinquency rate
Home Lending (e)(f)
0.85
%
1.03
%
1.25
%
1.06
%
1.08
%
0.85
%
1.08
%
Card
1.05
1.09
1.04
1.00
1.01
1.05
1.01
Auto
0.69
0.57
0.64
0.46
0.42
0.69
0.42
90+ day delinquency rate - Card
0.51
0.54
0.50
0.49
0.54
0.51
0.54
Allowance for loan losses
Consumer & Business Banking
$
697
$
697
$
697
$
797
$
897
—
(22)
$
697
$
897
(22)
Home Lending
785
785
660
630
630
—
25
785
630
25
Card
10,400
10,250
10,250
11,650
12,500
1
(17)
10,400
12,500
(17)
Auto
740
738
733
813
817
—
(9)
740
817
(9)
Total allowance for loan losses
$
12,622
$
12,470
$
12,340
$
13,890
$
14,844
1
(15)
$
12,622
$
14,844
(15)
(a)At June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $257 million, $315 million, $342 million, $355 million and $397 million, respectively. These amounts have been excluded based upon the government guarantee. The amount of mortgage loans 90 or more days past due and insured by U.S. government agencies excluded at June 30, 2021 has been revised to conform with the current presentation. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.
(b)At June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021, nonaccrual loans excluded $86 million, $179 million, $506 million and $5 million of PPP loans 90 or more days past due and guaranteed by the SBA, respectively. There were no PPP loans 90 or more days past due at June 30, 2021.
(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 June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021 included $1.5 billion, $2.9 billion, $5.4 billion, $11.1 billion and $16.7 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 June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, the principal balance of loans under payment deferral programs offered in response to the COVID-19 pandemic was $513 million, $728 million, $1.1 billion, $3.1 billion and $5.2 billion in Home Lending, respectively. Loans that are performing according to their modified terms are generally not considered delinquent.
(f)At June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, excluded mortgage loans 30 or more days past due and insured by U.S. government agencies of $315 million, $370 million, $405 million, $432 million and $483 million, respectively. These amounts have been excluded based upon the government guarantee. The amount of mortgage loans 30 or more days past due and insured by U.S. government agencies excluded at June 30, 2021 has been revised to conform with the current presentation.
Page 13
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,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
BUSINESS METRICS
Number of:
Branches
4,822
4,810
4,790
4,854
4,869
—
%
(1)
%
4,822
4,869
(1)
%
Active digital customers (in thousands) (a)
60,735
60,286
58,857
57,961
56,915
1
7
60,735
56,915
7
Active mobile customers (in thousands) (b)
47,436
46,527
45,452
44,333
42,896
2
11
47,436
42,896
11
Debit and credit card sales volume (in billions)
$
397.0
$
351.5
$
376.2
$
349.9
$
344.3
13
15
$
748.5
$
634.6
18
Consumer & Business Banking
Average deposits
$
1,163,423
$
1,136,115
$
1,094,442
$
1,056,254
$
1,028,459
2
13
$
1,149,844
$
994,748
16
Deposit margin
1.31
%
1.22
%
1.22
%
1.29
%
1.28
%
1.27
%
1.29
%
Business banking origination volume
$
1,196
$
1,028
$
866
$
835
$
2,180
(g)
16
(45)
$
2,224
$
12,215
(g)
(82)
Client investment assets (c)
628,479
696,316
718,051
681,491
673,675
(10)
(7)
628,479
673,675
(7)
Number of client advisors
4,890
4,816
4,725
4,689
4,571
2
7
4,890
4,571
7
Home Lending (in billions)
Mortgage origination volume by channel
Retail
$
11.0
$
15.1
$
22.4
$
23.7
$
22.7
(27)
(52)
$
26.1
$
45.7
(43)
Correspondent
10.9
9.6
19.8
17.9
16.9
14
(36)
20.5
33.2
(38)
Total mortgage origination volume (d)
$
21.9
$
24.7
$
42.2
$
41.6
$
39.6
(11)
(45)
$
46.6
$
78.9
(41)
Third-party mortgage loans serviced (period-end)
575.6
575.4
519.2
(f)
509.3
463.9
—
24
575.6
463.9
24
MSR carrying value (period-end)
7.4
7.3
5.5
5.3
4.5
1
64
7.4
4.5
64
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)
1.29
%
1.27
%
1.06
%
(f)
1.04
%
0.97
%
1.29
%
0.97
%
MSR revenue multiple (e)
4.45
x
4.70
x
3.79
x
(f)
3.85
x
3.59
x
4.61
x
3.59
x
Credit Card
Credit card sales volume, excluding Commercial Card (in billions)
$
271.2
$
236.4
$
254.1
$
232.0
$
223.7
15
21
507.6
407.4
25
Net revenue rate
9.59
%
9.87
%
9.61
%
9.74
%
11.32
%
9.72
%
11.43
%
Auto
Loan and lease origination volume (in billions)
$
7.0
$
8.4
$
8.5
$
11.5
$
12.4
(17)
(44)
$
15.4
$
23.6
(35)
Average auto operating lease assets
14,866
16,423
17,629
18,753
19,608
(9)
(24)
15,640
19,952
(22)
(a)Users of all web and/or mobile platforms who have logged in within the past 90 days.
(b)Users of all mobile platforms who have logged in within the past 90 days.
(c)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 20-22 for additional information.
(d)Firmwide mortgage origination volume was $27.9 billion, $30.2 billion, $48.2 billion, $46.1 billion and $44.9 billion for the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively, and $58.1 billion and $88.1 billion for the six months ended June 30, 2022 and 2021, respectively.
(e)Represents the ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) divided by the ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average).
(f)Prior-period amounts have been revised to conform with the current presentation.
(g)Included $1.3 billion and $10.6 billion of origination volume under the PPP for the three and six months ended June 30, 2021, respectively. The program ended on May 31, 2021 for new applications.
Page 14
JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
INCOME STATEMENT
REVENUE
Investment banking fees
$
1,650
$
2,050
$
3,502
$
3,297
$
3,572
(20)
%
(54)
%
$
3,700
$
6,560
(44)
%
Principal transactions
5,048
5,223
2,116
3,577
4,026
(3)
25
10,271
10,071
2
Lending- and deposit-related fees
641
641
654
634
633
—
1
1,282
1,226
5
Asset management, administration and commissions
1,330
1,339
1,252
1,240
1,246
(1)
7
2,669
2,532
5
All other income
80
704
624
313
435
(89)
(82)
784
611
28
Noninterest revenue
8,749
9,957
8,148
9,061
9,912
(12)
(12)
18,706
21,000
(11)
Net interest income
3,198
3,572
3,386
3,335
3,302
(10)
(3)
6,770
6,819
(1)
TOTAL NET REVENUE (a)
11,947
13,529
11,534
12,396
13,214
(12)
(10)
25,476
27,819
(8)
Provision for credit losses
59
445
(126)
(638)
(79)
(87)
NM
504
(410)
NM
NONINTEREST EXPENSE
Compensation expense
3,510
4,006
2,358
2,827
3,582
(12)
(2)
7,516
7,911
(5)
Noncompensation expense
3,235
3,292
3,469
3,044
2,941
(2)
10
6,527
5,716
14
TOTAL NONINTEREST EXPENSE
6,745
7,298
5,827
5,871
6,523
(8)
3
14,043
13,627
3
Income before income tax expense
5,143
5,786
5,833
7,163
6,770
(11)
(24)
10,929
14,602
(25)
Income tax expense (b)
1,418
1,401
1,290
1,516
1,750
1
(19)
2,819
3,658
(23)
NET INCOME (b)
$
3,725
$
4,385
$
4,543
$
5,647
$
5,020
(15)
(26)
$
8,110
$
10,944
(26)
FINANCIAL RATIOS
ROE
14
%
17
%
21
%
(b)
26
%
23
%
15
%
26
%
(b)
Overhead ratio
56
54
51
47
49
55
49
Compensation expense as percentage of total net revenue
29
30
20
23
27
30
28
REVENUE BY BUSINESS
Investment Banking
$
1,351
$
2,057
$
3,206
$
3,025
$
3,424
(34)
(61)
$
3,408
$
6,275
(46)
Payments
1,463
1,854
1,801
1,624
1,453
(21)
1
3,317
2,845
17
Lending
410
321
263
244
229
28
79
731
494
48
Total Banking
3,224
4,232
5,270
4,893
5,106
(24)
(37)
7,456
9,614
(22)
Fixed Income Markets
4,711
5,698
3,334
3,672
4,098
(17)
15
10,409
9,859
6
Equity Markets
3,079
3,055
1,954
2,597
2,689
1
15
6,134
5,978
3
Securities Services
1,151
1,068
1,064
1,126
1,088
8
6
2,219
2,138
4
Credit Adjustments & Other (c)
(218)
(524)
(88)
108
233
58
NM
(742)
230
NM
Total Markets & Securities Services
8,723
9,297
6,264
7,503
8,108
(6)
8
18,020
18,205
(1)
TOTAL NET REVENUE
$
11,947
$
13,529
$
11,534
$
12,396
$
13,214
(12)
(10)
$
25,476
$
27,819
(8)
(a)Includes tax-equivalent adjustments, predominantly due to income tax credits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; as well as tax-exempt income from municipal bonds of $772 million, $737 million, $923 million, $641 million and $763 million for the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively, and $1.5 billion for both the six months ended June 30, 2022 and 2021.
(b)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.
(c)Consists primarily of centrally managed credit valuation adjustments (“CVA”), funding valuation adjustments (“FVA”) on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.
Page 15
JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
1,403,558
$
1,460,463
$
1,259,896
$
1,355,752
$
1,363,992
(4)
%
3
%
$
1,403,558
$
1,363,992
3
%
Loans:
Loans retained (a)
171,219
167,791
159,786
151,211
144,764
2
18
171,219
144,764
18
Loans held-for-sale and loans at fair value (b)
46,032
47,260
50,386
52,436
56,668
(3)
(19)
46,032
56,668
(19)
Total loans
217,251
215,051
210,172
203,647
201,432
1
8
217,251
201,432
8
Equity
103,000
103,000
83,000
83,000
83,000
—
24
103,000
83,000
24
SELECTED BALANCE SHEET DATA (average)
Total assets
$
1,429,953
$
1,407,835
$
1,341,267
$
1,331,240
$
1,371,218
2
4
1,418,955
$
1,332,755
6
Trading assets - debt and equity instruments
411,079
419,346
407,656
442,623
473,875
(g)
(2)
(13)
415,190
471,439
(g)
(12)
Trading assets - derivative receivables
83,582
66,692
65,365
64,730
69,392
(g)
25
20
75,184
71,411
(g)
5
Loans:
Loans retained (a)
169,909
160,976
153,595
149,826
140,096
6
21
165,467
138,454
20
Loans held-for-sale and loans at fair value (b)
48,048
51,398
52,429
53,712
52,376
(7)
(8)
49,714
49,042
1
Total loans
217,957
212,374
206,024
203,538
192,472
3
13
215,181
187,496
15
Equity
103,000
103,000
83,000
83,000
83,000
—
24
103,000
83,000
24
Headcount
69,447
68,292
67,546
66,267
64,261
2
8
69,447
64,261
8
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
38
$
20
$
23
$
2
$
(12)
90
NM
$
58
$
(19)
NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (c)
697
871
584
547
783
(20)
(11)
697
783
(11)
Nonaccrual loans held-for-sale and loans at fair value (d)
840
949
844
1,234
1,187
(11)
(29)
840
1,187
(29)
Total nonaccrual loans
1,537
1,820
1,428
1,781
1,970
(16)
(22)
1,537
1,970
(22)
Derivative receivables
447
597
316
393
481
(25)
(7)
447
481
(7)
Assets acquired in loan satisfactions
84
91
91
95
95
(8)
(12)
84
95
(12)
Total nonperforming assets
2,068
2,508
1,835
2,269
2,546
(18)
(19)
2,068
2,546
(19)
Allowance for credit losses:
Allowance for loan losses
1,809
1,687
1,348
1,442
1,607
7
13
1,809
1,607
13
Allowance for lending-related commitments
1,358
1,459
1,372
1,426
1,902
(7)
(29)
1,358
1,902
(29)
Total allowance for credit losses
3,167
3,146
2,720
2,868
3,509
1
(10)
3,167
3,509
(10)
Net charge-off/(recovery) rate (a)(e)
0.09
%
0.05
%
0.06
%
0.01
%
(0.03)
%
0.07
%
(0.03)
%
Allowance for loan losses to period-end loans retained (a)
1.06
1.01
0.84
0.95
1.11
1.06
1.11
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (f)
1.38
1.31
1.12
1.29
1.53
1.38
1.53
Allowance for loan losses to nonaccrual loans retained (a)(c)
260
194
231
264
205
260
205
Nonaccrual loans to total period-end loans
0.71
0.85
0.68
0.87
0.98
0.71
0.98
(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 $130 million, $226 million, $58 million, $138 million and $180 million were held against nonaccrual loans at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively.
(d)At June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $196 million, $283 million, $281 million, $289 million and $316 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.
(g)Prior-period amounts have been revised to conform with the current presentation.
Page 16
JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
BUSINESS METRICS
Advisory
$
664
$
801
$
1,557
$
1,228
$
916
(17)
%
(28)
%
$
1,465
$
1,596
(8)
%
Equity underwriting
245
249
802
1,032
1,063
(2)
(77)
494
2,119
(77)
Debt underwriting
741
1,000
1,143
1,037
1,593
(26)
(53)
1,741
2,845
(39)
Total investment banking fees
$
1,650
$
2,050
$
3,502
$
3,297
$
3,572
(20)
(54)
$
3,700
$
6,560
(44)
Client deposits and other third-party liabilities (average) (a)
722,388
709,121
717,496
714,376
721,882
2
—
715,791
713,868
—
Merchant processing volume (in billions) (b)
539.6
490.2
514.9
470.9
475.2
10
14
$
1,029.8
$
900.9
14
Assets under custody (“AUC”) (period-end) (in billions)
$
28,579
$
31,571
$
33,221
$
31,962
$
32,122
(9)
(11)
28,579
$
32,122
(11)
95% Confidence Level - Total CIB VaR (average)
CIB trading VaR by risk type: (c)
Fixed income
$
60
$
47
$
39
$
38
$
39
28
54
Foreign exchange
8
4
4
5
6
100
33
Equities
11
12
12
11
18
(8)
(39)
Commodities and other
14
15
12
11
22
(7)
(36)
Diversification benefit to CIB trading VaR (d)
(43)
(33)
(31)
(33)
(44)
(30)
2
CIB trading VaR (c)
50
45
36
32
41
11
22
Credit Portfolio VaR (e)
17
29
5
5
6
(41)
183
Diversification benefit to CIB VaR (d)
(15)
(10)
(4)
(4)
(6)
(50)
(150)
CIB VaR
$
52
$
64
$
37
$
33
$
41
(19)
27
(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 67–69 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021 for further information.
(d)Diversification benefit represents the difference between the portfolio VaR and the sum of its individual components. This reflects the non-additive nature of VaR due to imperfect correlation across CIB risks.
(e)Credit portfolio VaR includes the derivative CVA, hedges of the CVA and hedges of the retained loan portfolio, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value. 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 17
JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees
$
348
$
364
$
356
$
355
$
350
(4)
%
(1)
%
$
712
$
681
5
%
All other income
556
503
718
633
600
11
(7)
1,059
1,186
(11)
Noninterest revenue
904
867
1,074
988
950
4
(5)
1,771
1,867
(5)
Net interest income
1,779
1,531
1,538
1,532
1,533
16
16
3,310
3,009
10
TOTAL NET REVENUE (a)
2,683
2,398
2,612
2,520
2,483
12
8
5,081
4,876
4
Provision for credit losses
209
157
(89)
(363)
(377)
33
NM
366
(495)
NM
NONINTEREST EXPENSE
Compensation expense
559
553
496
511
484
1
15
1,112
966
15
Noncompensation expense
597
576
563
521
497
4
20
1,173
984
19
TOTAL NONINTEREST EXPENSE
1,156
1,129
1,059
1,032
981
2
18
2,285
1,950
17
Income/(loss) before income tax expense/(benefit)
1,318
1,112
1,642
1,851
1,879
19
(30)
2,430
3,421
(29)
Income tax expense/(benefit) (b)
324
262
408
442
457
24
(29)
586
818
(28)
NET INCOME (b)
$
994
$
850
$
1,234
$
1,409
$
1,422
17
(30)
$
1,844
$
2,603
(29)
REVENUE BY PRODUCT
Lending
$
1,058
$
1,105
$
1,151
$
1,138
$
1,172
(4)
(10)
$
2,163
$
2,340
(8)
Payments
1,205
981
949
947
914
23
32
2,186
1,757
24
Investment banking (c)
282
260
475
416
370
8
(24)
542
720
(25)
Other
138
52
37
19
27
165
411
190
59
222
TOTAL NET REVENUE (a)
$
2,683
$
2,398
$
2,612
$
2,520
$
2,483
12
8
$
5,081
$
4,876
4
Investment banking revenue, gross (d)
$
788
$
729
$
1,456
$
1,343
$
1,164
8
(32)
$
1,517
$
2,293
(34)
REVENUE BY CLIENT SEGMENT
Middle Market Banking
$
1,169
$
980
$
1,062
$
1,017
$
1,009
19
16
$
2,149
$
1,925
12
Corporate Client Banking
927
830
928
878
851
12
9
1,757
1,702
3
Commercial Real Estate Banking
590
581
614
602
599
2
(2)
1,171
1,203
(3)
Other
(3)
7
8
23
24
NM
NM
4
46
(91)
TOTAL NET REVENUE (a)
$
2,683
$
2,398
$
2,612
$
2,520
$
2,483
12
8
$
5,081
$
4,876
4
FINANCIAL RATIOS
ROE
15
%
13
%
19
%
(b)
22
%
23
%
14
%
21
%
Overhead ratio
43
47
41
41
40
45
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 $73 million, $69 million, $99 million, $80 million and $78 million for the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively, and $142 million and $151 million for the six months ended June 30, 2022 and 2021, respectively.
(b)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.
(c)Includes CB’s share of revenue from investment banking products sold to CB clients through the CIB.
(d)Refer to page 61 of the Firm’s 2021 Form 10-K for discussion of revenue sharing.
Page 18
JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
242,456
$
235,127
$
230,776
$
227,670
$
226,022
3
%
7
%
$
242,456
$
226,022
7
%
Loans:
Loans retained
223,541
213,073
206,220
201,283
200,929
5
11
223,541
200,929
11
Loans held-for-sale and loans at fair value
566
1,743
2,223
3,412
3,381
(68)
(83)
566
3,381
(83)
Total loans
$
224,107
$
214,816
$
208,443
$
204,695
$
204,310
4
10
$
224,107
$
204,310
10
Equity
25,000
25,000
24,000
24,000
24,000
—
4
25,000
24,000
4
Period-end loans by client segment
Middle Market Banking (a)
$
68,535
$
64,306
$
61,159
$
58,918
$
59,314
7
16
$
68,535
$
59,314
16
Corporate Client Banking
49,503
46,720
45,315
45,107
44,866
6
10
49,503
44,866
10
Commercial Real Estate Banking
105,982
103,685
101,751
100,458
99,858
2
6
105,982
99,858
6
Other
87
105
218
212
272
(17)
(68)
87
272
(68)
Total loans (a)
$
224,107
$
214,816
$
208,443
$
204,695
$
204,310
4
10
$
224,107
$
204,310
10
SELECTED BALANCE SHEET DATA (average)
Total assets
$
239,381
$
233,474
$
227,308
$
222,760
$
226,562
3
6
$
236,444
$
226,071
5
Loans:
Loans retained
218,478
208,540
201,676
199,789
202,102
5
8
213,536
203,127
5
Loans held-for-sale and loans at fair value
1,004
2,147
3,958
2,790
3,150
(53)
(68)
1,572
2,866
(45)
Total loans
$
219,482
$
210,687
$
205,634
$
202,579
$
205,252
4
7
$
215,108
$
205,993
4
Client deposits and other third-party liabilities
300,425
316,921
323,821
300,595
290,250
(5)
4
308,627
290,619
6
Equity
25,000
25,000
24,000
24,000
24,000
—
4
25,000
24,000
4
Average loans by client segment
Middle Market Banking
$
66,640
$
62,437
$
59,784
$
59,032
$
61,698
7
8
$
64,550
$
60,859
6
Corporate Client Banking
47,832
45,595
44,976
43,330
43,440
5
10
46,720
44,573
5
Commercial Real Estate Banking
104,890
102,498
100,682
100,120
99,864
2
5
103,701
100,260
3
Other
120
157
192
97
250
(24)
(52)
137
301
(54)
Total loans
$
219,482
$
210,687
$
205,634
$
202,579
$
205,252
4
7
$
215,108
$
205,993
4
Headcount
13,811
13,220
12,902
12,584
12,163
4
14
13,811
12,163
14
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
1
$
6
$
8
$
31
$
3
(83)
(67)
$
7
$
32
(78)
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (b)(c)
761
751
740
735
1,006
1
(24)
761
1,006
(24)
Nonaccrual loans held-for-sale and loans
at fair value
—
—
—
—
2
—
NM
—
2
NM
Total nonaccrual loans
761
751
740
735
1,008
1
(25)
761
1,008
(25)
Assets acquired in loan satisfactions
8
17
17
16
17
(53)
(53)
8
17
(53)
Total nonperforming assets
769
768
757
751
1,025
—
(25)
769
1,025
(25)
Allowance for credit losses:
Allowance for loan losses
2,602
2,357
2,219
2,354
2,589
10
1
2,602
2,589
1
Allowance for lending-related commitments
725
762
749
711
870
(5)
(17)
725
870
(17)
Total allowance for credit losses
3,327
3,119
2,968
3,065
3,459
7
(4)
3,327
3,459
(4)
Net charge-off/(recovery) rate (d)
—
%
0.01
%
0.02
%
0.06
%
0.01
%
0.01
%
0.03
%
Allowance for loan losses to period-end loans retained
1.16
1.11
1.08
1.17
1.29
1.16
1.29
Allowance for loan losses to nonaccrual loans retained (b)
342
314
300
320
257
342
257
Nonaccrual loans to period-end total loans
0.34
0.35
0.36
0.36
0.49
0.34
0.49
(a)At June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, total loans included $335 million, $640 million, $1.2 billion, $2.0 billion and $5.0 billion of loans, respectively, under the PPP, of which $306 million, $604 million, $1.1 billion, $1.9 billion and $4.9 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 $74 million, $104 million, $124 million, $123 million and $188 million was held against nonaccrual loans retained at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively.
(c)At 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 $32 million, $50 million and $114 million, respectively. These amounts have been excluded based upon the SBA guarantee. There were no PPP loans 90 or more days past due in all other periods presented.
(d)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
Page 19
JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
INCOME STATEMENT
REVENUE
Asset management, administration and commissions
$
3,037
$
3,115
$
3,330
$
3,096
$
3,019
(3)
%
1
%
$
6,152
$
5,907
4
%
All other income
47
124
118
216
146
(62)
(68)
171
404
(58)
Noninterest revenue
3,084
3,239
3,448
3,312
3,165
(5)
(3)
6,323
6,311
—
Net interest income
1,222
1,076
1,025
988
942
14
30
2,298
1,873
23
TOTAL NET REVENUE
4,306
4,315
4,473
4,300
4,107
—
5
8,621
8,184
5
Provision for credit losses
44
154
(36)
(60)
(10)
(71)
NM
198
(131)
NM
NONINTEREST EXPENSE
Compensation expense
1,508
1,530
1,560
1,387
1,356
(1)
11
3,038
2,745
11
Noncompensation expense
1,411
1,330
1,437
1,375
1,230
6
15
2,741
2,415
13
TOTAL NONINTEREST EXPENSE
2,919
2,860
2,997
2,762
2,586
2
13
5,779
5,160
12
Income before income tax expense
1,343
1,301
1,512
1,598
1,531
3
(12)
2,644
3,155
(16)
Income tax expense (a)
339
293
387
402
375
16
(10)
632
739
(14)
NET INCOME (a)
$
1,004
$
1,008
$
1,125
$
1,196
$
1,156
—
(13)
$
2,012
$
2,416
(17)
REVENUE BY LINE OF BUSINESS
Asset Management
$
2,137
$
2,314
$
2,488
$
2,337
$
2,236
(8)
(4)
$
4,451
$
4,421
1
Global Private Bank
2,169
2,001
1,985
1,963
1,871
8
16
4,170
3,763
11
TOTAL NET REVENUE
$
4,306
$
4,315
$
4,473
$
4,300
$
4,107
—
5
$
8,621
$
8,184
5
FINANCIAL RATIOS
ROE
23
%
23
%
31
% (a)
33
%
32
%
23
%
34
%
Overhead ratio
68
66
67
64
63
67
63
Pretax margin ratio:
Asset Management
29
33
32
36
37
31
36
Global Private Bank
33
27
36
38
38
30
41
Asset & Wealth Management
31
30
34
37
37
31
39
Headcount
23,981
23,366
22,762
22,051
20,866
3
15
23,981
20,866
15
Number of Global Private Bank client advisors
2,866
2,798
2,738
2,646
2,435
2
18
2,866
2,435
18
(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 20
JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
235,553
$
233,070
$
234,425
$
221,702
$
217,284
1
%
8
%
$
235,553
$
217,284
8
%
Loans
218,841
215,130
218,271
202,871
198,683
2
10
218,841
198,683
10
Deposits
257,437
287,293
282,052
242,309
217,488
(10)
18
257,437
217,488
18
Equity
17,000
17,000
14,000
14,000
14,000
—
21
17,000
14,000
21
SELECTED BALANCE SHEET DATA (average)
Total assets
$
234,565
$
232,310
$
227,597
$
219,022
$
214,384
1
9
$
233,444
$
210,963
11
Loans
216,846
214,611
209,169
200,635
195,171
1
11
215,735
191,966
12
Deposits
268,861
287,756
264,580
229,710
219,699
(7)
22
278,256
213,167
31
Equity
17,000
17,000
14,000
14,000
14,000
—
21
17,000
14,000
21
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
9
$
(1)
$
4
$
(1)
$
12
NM
(25)
$
8
$
23
(65)
Nonaccrual loans
620
626
708
686
792
(1)
(22)
620
792
(22)
Allowance for credit losses:
Allowance for loan losses
547
516
365
402
458
6
19
547
458
19
Allowance for lending-related commitments
22
19
18
20
25
16
(12)
22
25
(12)
Total allowance for credit losses
569
535
383
422
483
6
18
569
483
18
Net charge-off/(recovery) rate
0.02
%
—
%
0.01
%
—
%
0.02
%
0.01
%
0.02
%
Allowance for loan losses to period-end loans
0.25
0.24
0.17
0.20
0.23
0.25
0.23
Allowance for loan losses to nonaccrual loans
88
82
52
59
58
88
58
Nonaccrual loans to period-end loans
0.28
0.29
0.32
0.34
0.40
0.28
0.40
Page 21
JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)
Jun 30, 2022
Change
SIX MONTHS ENDED JUNE 30,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Jun 30,
2022 Change
CLIENT ASSETS
2022
2022
2021
2021
2021
2022
2021
2022
2021
2021
Assets by asset class
Liquidity
$
654
$
657
$
708
$
685
$
698
—
%
(6)
%
$
654
$
698
(6)
%
Fixed income
624
657
693
695
688
(5)
(9)
624
688
(9)
Equity
641
739
779
725
725
(13)
(12)
641
725
(12)
Multi-asset
615
699
732
702
702
(12)
(12)
615
702
(12)
Alternatives
209
208
201
189
174
—
20
209
174
20
TOTAL ASSETS UNDER MANAGEMENT
2,743
2,960
3,113
2,996
2,987
(7)
(8)
2,743
2,987
(8)
Custody/brokerage/administration/deposits
1,055
1,156
1,182
1,100
1,057
(9)
—
1,055
1,057
—
TOTAL CLIENT ASSETS (a)
$
3,798
$
4,116
$
4,295
$
4,096
$
4,044
(8)
(6)
$
3,798
$
4,044
(6)
Assets by client segment
Private Banking
$
712
$
777
$
805
$
773
$
752
(8)
(5)
$
712
$
752
(5)
Global Institutional
1,294
1,355
1,430
1,375
1,383
(5)
(6)
1,294
1,383
(6)
Global Funds
737
828
878
848
852
(11)
(13)
737
852
(13)
TOTAL ASSETS UNDER MANAGEMENT
$
2,743
$
2,960
$
3,113
$
2,996
$
2,987
(7)
(8)
$
2,743
$
2,987
(8)
Private Banking
$
1,715
$
1,880
$
1,931
$
1,817
$
1,755
(9)
(2)
$
1,715
$
1,755
(2)
Global Institutional
1,339
1,402
1,479
1,425
1,430
(4)
(6)
1,339
1,430
(6)
Global Funds
744
834
885
854
859
(11)
(13)
744
859
(13)
TOTAL CLIENT ASSETS (a)
$
3,798
$
4,116
$
4,295
$
4,096
$
4,044
(8)
(6)
$
3,798
$
4,044
(6)
Assets under management rollforward
Beginning balance
$
2,960
$
3,113
$
2,996
$
2,987
$
2,833
$
3,113
$
2,716
Net asset flows:
Liquidity
—
(52)
20
(11)
15
(52)
59
Fixed income
(1)
(3)
—
11
17
(4)
25
Equity
9
11
18
16
20
20
51
Multi-asset
(3)
6
6
3
2
3
8
Alternatives
1
5
10
3
10
6
13
Market/performance/other impacts
(223)
(120)
63
(13)
90
(343)
115
Ending balance
$
2,743
$
2,960
$
3,113
$
2,996
$
2,987
$
2,743
$
2,987
Client assets rollforward
Beginning balance
$
4,116
$
4,295
$
4,096
$
4,044
$
3,828
$
4,295
$
3,652
Net asset flows
(1)
(5)
109
75
75
(6)
205
Market/performance/other impacts
(317)
(174)
90
(23)
141
(491)
187
Ending balance
$
3,798
$
4,116
$
4,295
$
4,096
$
4,044
$
3,798
$
4,044
(a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager.
Page 22
JPMORGAN CHASE & CO.
CORPORATE
FINANCIAL HIGHLIGHTS
(in millions, except headcount data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
INCOME STATEMENT
REVENUE
Principal transactions
$
17
$
(161)
$
26
$
(103)
$
(8)
NM
NM
$
(144)
$
264
NM
Investment securities gains/(losses)
(153)
(394)
52
(256)
(155)
61
%
1
%
(547)
(141)
(288)
%
All other income
(108)
210
58
117
(45)
NM
(140)
102
51
100
Noninterest revenue
(244)
(345)
136
(242)
(208)
29
(17)
(589)
174
NM
Net interest income
324
(536)
(681)
(1,054)
(961)
NM
NM
(212)
(1,816)
88
TOTAL NET REVENUE (a)
80
(881)
(545)
(1,296)
(1,169)
NM
NM
(801)
(1,642)
51
Provision for credit losses
28
29
23
(7)
49
(3)
(43)
57
65
(12)
NONINTEREST EXPENSE
206
184
251
160
515
12
(60)
390
1,391
(72)
Income/(loss) before income tax expense/(benefit)
(154)
(1,094)
(819)
(1,449)
(1,733)
86
91
(1,248)
(3,098)
60
Income tax expense/(benefit) (b)
20
(238)
(169)
(533)
(438)
NM
NM
(218)
(951)
77
NET INCOME/(LOSS) (b)
$
(174)
$
(856)
$
(650)
$
(916)
$
(1,295)
80
87
$
(1,030)
$
(2,147)
52
MEMO:
TOTAL NET REVENUE
Treasury and Chief Investment Office (“CIO”)
82
(944)
(480)
(1,198)
(1,081)
NM
NM
(862)
(1,786)
52
Other Corporate
(2)
63
(65)
(98)
(88)
NM
98
61
144
(58)
TOTAL NET REVENUE
$
80
$
(881)
$
(545)
$
(1,296)
$
(1,169)
NM
NM
$
(801)
$
(1,642)
51
NET INCOME/(LOSS)
Treasury and CIO
88
(748)
(428)
(998)
(956)
NM
NM
(660)
(1,631)
60
Other Corporate (b)
(262)
(108)
(222)
82
(339)
(143)
23
(370)
(516)
28
TOTAL NET INCOME/(LOSS) (b)
$
(174)
$
(856)
$
(650)
$
(916)
$
(1,295)
80
87
$
(1,030)
$
(2,147)
52
SELECTED BALANCE SHEET DATA (period-end)
Total assets
$
1,459,528
$
1,539,844
$
1,518,100
$
1,459,283
$
1,382,653
(5)
6
$
1,459,528
$
1,382,653
6
Loans
2,187
1,957
1,770
1,697
1,530
12
43
2,187
1,530
43
Deposits
13,191
(e)
1,434
396
546
372
NM
NM
13,191
(e)
372
NM
Headcount
40,348
39,802
38,952
38,302
37,520
1
8
40,348
37,520
8
SUPPLEMENTAL INFORMATION
TREASURY and CIO
Investment securities gains/(losses)
$
(153)
$
(394)
$
52
$
(256)
$
(155)
61
1
$
(547)
$
(141)
(288)
Available-for-sale securities (average)
252,121
304,314
290,590
223,747
342,338
(17)
(26)
278,073
357,307
(22)
Held-to-maturity securities (average) (c)
418,843
364,814
349,989
339,544
240,696
15
74
391,978
224,417
75
Investment securities portfolio (average)
$
670,964
$
669,128
$
640,579
$
563,291
$
583,034
—
15
$
670,051
$
581,724
15
Available-for-sale securities (period-end)
220,213
310,909
306,352
249,484
230,127
(29)
(4)
220,213
230,127
(4)
Held-to-maturity securities, net of allowance for credit losses (period-end) (c)
441,649
366,585
363,707
343,542
341,476
20
29
441,649
341,476
29
Investment securities portfolio, net of allowance for credit losses (period-end) (d)
$
661,862
$
677,494
$
670,059
$
593,026
$
571,603
(2)
16
$
661,862
$
571,603
16
(a)Included tax-equivalent adjustments, driven by tax-exempt income from municipal bonds, of $60 million, $58 million, $60 million, $64 million and $66 million for the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively, and $118 million and $133 million for the six months ended June 30, 2022 and 2021, respectively.
(b)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.
(c)During 2022 and 2021, the Firm transferred $73.2 billion and $104.5 billion of investment securities, respectively, from AFS to HTM for capital management purposes.
(d)At June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, the allowance for credit losses on investment securities was $47 million, $41 million, $42 million, $73 million and $87 million, respectively.
(e)Predominantly relates to international consumer growth initiatives.
Page 23
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
Jun 30, 2022
Change
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Jun 30,
2022
2022
2021
2021
2021
2022
2021
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained
$
302,631
$
296,161
$
295,556
$
298,308
$
297,731
2
%
2
%
Loans held-for-sale and loans at fair value
14,581
16,328
27,750
29,856
31,954
(11)
(54)
Total consumer, excluding credit card loans
317,212
312,489
323,306
328,164
329,685
2
(4)
Credit card loans
Loans retained
165,494
152,283
154,296
143,166
141,079
9
17
Loans held-for-sale
—
—
—
—
723
—
NM
Total credit card loans
165,494
152,283
154,296
143,166
141,802
9
17
Total consumer loans
482,706
464,772
477,602
471,330
471,487
4
2
Wholesale loans (b)
Loans retained
584,265
569,953
560,354
532,786
524,855
3
11
Loans held-for-sale and loans at fair value
37,184
38,560
39,758
40,499
44,612
(4)
(17)
Total wholesale loans
621,449
608,513
600,112
573,285
569,467
2
9
Total loans
1,104,155
1,073,285
1,077,714
1,044,615
1,040,954
3
6
Derivative receivables
81,317
73,636
57,081
67,908
66,320
(g)
10
23
Receivables from customers (c)
58,349
68,473
59,645
58,752
59,609
(15)
(2)
Total credit-related assets
1,243,821
1,215,394
1,194,440
1,171,275
1,166,883
2
7
Lending-related commitments
Consumer, excluding credit card
40,484
47,103
45,334
56,684
56,875
(14)
(29)
Credit card (d)
774,021
757,283
730,534
710,610
682,531
2
13
Wholesale
487,500
497,232
486,445
(g)
499,236
(g)
502,616
(2)
(3)
Total lending-related commitments
1,302,005
1,301,618
1,262,313
1,266,530
1,242,022
—
5
Total credit exposure
$
2,545,826
$
2,517,012
$
2,456,753
$
2,437,805
$
2,408,905
1
6
Memo: Total by category
Consumer exposure (e)
$
1,297,211
$
1,269,158
$
1,253,470
$
1,238,624
$
1,210,893
2
7
Wholesale exposure (f)
1,248,615
1,247,854
1,203,283
1,199,181
1,198,012
—
4
Total credit exposure
$
2,545,826
$
2,517,012
$
2,456,753
$
2,437,805
$
2,408,905
1
6
(a)Includes scored loans held in CCB, scored mortgage and home equity loans held in AWM, and scored mortgage loans held in CIB and Corporate.
(b)Includes loans held in CIB, CB, AWM, Corporate as well as risk-rated loans held in CCB, including business banking and auto dealer loans for which the wholesale methodology is applied when determining the allowance for loan losses.
(c)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.
(d)Also includes commercial card lending-related commitments primarily in CB and CIB.
(e)Represents total consumer loans and lending-related commitments.
(f)Represents total wholesale loans, lending-related commitments, derivative receivables, and receivables from customers.
(g)Prior-period amounts have been revised to conform with the current presentation.
Page 24
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
Jun 30, 2022
Change
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Jun 30,
2022
2022
2021
2021
2021
2022
2021
NONPERFORMING ASSETS (a)(b)
Consumer nonaccrual loans
Loans retained
$
4,186
$
4,485
$
4,878
$
4,911
$
5,183
(7)
%
(19)
%
Loans held-for-sale and loans at fair value
486
525
472
440
475
(7)
2
Total consumer nonaccrual loans
4,672
5,010
5,350
5,351
5,658
(7)
(17)
Wholesale nonaccrual loans
Loans retained
2,083
2,289
2,054
2,084
2,698
(9)
(23)
Loans held-for-sale and loans at fair value
407
459
391
808
716
(11)
(43)
Total wholesale nonaccrual loans
2,490
2,748
2,445
2,892
3,414
(9)
(27)
Total nonaccrual loans (c)
7,162
7,758
7,795
8,243
9,072
(8)
(21)
Derivative receivables
447
597
316
393
481
(25)
(7)
Assets acquired in loan satisfactions
236
250
235
246
249
(6)
(5)
Total nonperforming assets
7,845
8,605
8,346
8,882
9,802
(9)
(20)
Wholesale lending-related commitments (d)
397
767
764
641
851
(48)
(53)
Total nonperforming exposure
$
8,242
$
9,372
$
9,110
$
9,523
$
10,653
(12)
(23)
NONACCRUAL LOAN-RELATED RATIOS (b)
Total nonaccrual loans to total loans
0.65
%
0.72
%
0.72
%
0.79
%
0.87
%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans
1.47
1.60
1.65
1.63
1.72
Total wholesale nonaccrual loans to total
wholesale loans
0.40
0.45
0.41
0.50
0.60
(a)At June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, nonperforming assets excluded: (1) mortgage loans 90 or more days past due and insured by U.S. government agencies of $453 million, $598 million, $623 million, $644 million and $713 million, respectively; and (2) real estate owned (“REO”) insured by U.S. government agencies of $8 million, $6 million, $5 million, $5 million and $7 million, respectively. The amount of mortgage loans 90 or more days past due and insured by U.S. government agencies excluded at June 30, 2021 has been revised to conform with the current presentation. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. Refer to Note 12 of the Firm’s 2021 Form 10-K for additional information on the Firm’s credit card nonaccrual and charge-off policies.
(b)At June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021, nonperforming assets excluded PPP loans 90 or more days past due and insured by the SBA of $119 million, $236 million, $633 million and $5 million, respectively. These amounts have been excluded based upon the SBA guarantee. There were no PPP loans 90 or more days past due at June 30, 2021.
(c)Generally excludes loans that were under payment deferral or other assistance, including amendments or waivers of financial covenants, in response to the COVID-19 pandemic.
(d)Represents commitments that are risk rated as nonaccrual.
Page 25
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDS
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance
$
17,192
$
16,386
$
18,150
$
19,500
$
23,001
5
%
(25)
%
$
16,386
$
28,328
(42)
%
Net charge-offs:
Gross charge-offs
1,036
976
968
940
1,188
6
(13)
2,012
2,656
(24)
Gross recoveries collected
(379)
(394)
(418)
(416)
(454)
4
17
(773)
(865)
11
Net charge-offs
657
582
550
524
734
13
(10)
1,239
1,791
(31)
Provision for loan losses
1,230
1,368
(1,214)
(819)
(2,759)
(10)
NM
2,598
(7,038)
NM
Other
(15)
20
—
(7)
(8)
NM
(88)
5
1
400
Ending balance
$
17,750
$
17,192
$
16,386
$
18,150
$
19,500
3
(9)
$
17,750
$
19,500
(9)
ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance
$
2,358
$
2,261
$
2,305
$
2,998
$
2,516
4
(6)
$
2,261
$
2,409
(6)
Provision for lending-related commitments
(135)
96
(43)
(694)
481
NM
NM
(39)
588
NM
Other
(1)
1
(1)
1
1
NM
NM
—
1
NM
Ending balance
$
2,222
$
2,358
$
2,261
$
2,305
$
2,998
(6)
(26)
$
2,222
$
2,998
(26)
ALLOWANCE FOR INVESTMENT SECURITIES
$
47
$
41
$
42
$
73
$
87
15
(46)
$
47
$
87
(46)
Total allowance for credit losses
$
20,019
$
19,591
$
18,689
$
20,528
$
22,585
2
(11)
$
20,019
$
22,585
(11)
NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans
0.04
%
0.06
%
0.04
%
(0.01)
%
(0.04)
%
0.05
%
(0.01)
%
Credit card retained loans
1.47
1.37
1.28
1.39
2.24
1.42
2.60
Total consumer retained loans
0.53
0.50
0.45
0.44
0.67
0.52
0.80
Wholesale retained loans
0.03
0.02
0.03
0.03
0.01
0.03
0.02
Total retained loans
0.25
0.24
0.22
0.21
0.31
0.24
0.38
Memo: Average retained loans
Consumer retained, excluding credit card loans
$
299,649
$
295,460
$
296,423
$
298,019
$
298,823
1
—
$
297,566
$
300,430
(1)
Credit card retained loans
158,434
149,398
148,471
141,371
135,430
6
17
153,941
134,796
14
Total average retained consumer loans
458,083
444,858
444,894
439,390
434,253
3
5
451,507
435,226
4
Wholesale retained loans
577,850
559,395
541,183
528,979
519,902
3
11
568,673
517,892
10
Total average retained loans
$
1,035,933
$
1,004,253
$
986,077
$
968,369
$
954,155
3
9
$
1,020,180
$
953,118
7
Page 26
JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
Jun 30, 2022
Change
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Jun 30,
2022
2022
2021
2021
2021
2022
2021
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)
$
(676)
$
(644)
$
(665)
$
(571)
$
(557)
(5)
%
(21)
%
Portfolio-based
2,605
2,538
2,430
2,445
2,455
3
6
Total consumer, excluding credit card
1,929
1,894
1,765
1,874
1,898
2
2
Credit card
Asset-specific (b)
227
262
313
383
443
(13)
(49)
Portfolio-based
10,173
9,988
9,937
11,267
12,057
2
(16)
Total credit card
10,400
10,250
10,250
11,650
12,500
1
(17)
Total consumer
12,329
12,144
12,015
13,524
14,398
2
(14)
Wholesale
Asset-specific (c)
332
485
263
357
488
(32)
(32)
Portfolio-based
5,089
4,563
4,108
4,269
4,614
12
10
Total wholesale
5,421
5,048
4,371
4,626
5,102
7
6
Total allowance for loan losses
17,750
17,192
16,386
18,150
19,500
3
(9)
Allowance for lending-related commitments
2,222
2,358
2,261
2,305
2,998
(6)
(26)
Allowance for investment securities
47
41
42
73
87
15
(46)
Total allowance for credit losses
$
20,019
$
19,591
$
18,689
$
20,528
$
22,585
2
(11)
CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans
0.64
%
0.64
%
0.60
%
0.63
%
0.64
%
Credit card allowance to total credit card retained loans
6.28
6.73
6.64
8.14
8.86
Wholesale allowance to total wholesale retained loans
0.93
0.89
0.78
0.87
0.97
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (d)
0.99
0.95
0.84
0.93
1.05
Total allowance to total retained loans
1.69
1.69
1.62
1.86
2.02
Consumer, excluding credit card allowance, to consumer,
Wholesale allowance to wholesale retained nonaccrual loans
260
221
213
222
189
Total allowance to total retained nonaccrual loans
283
254
236
259
247
(a)Includes collateral-dependent loans, including those considered troubled debt restructurings (“TDRs”) and those for which foreclosure is deemed probable, modified PCD loans, and non-collateral dependent loans that have been modified or are reasonably expected to be modified in a TDR.
(b)The asset-specific credit card allowance for loan losses relates to loans that have been modified or are reasonably expected to be modified in a TDR; the Firm calculates this allowance based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
(c)Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified or are reasonably expected to be modified in a TDR.
(d)Management uses allowance for loan losses to period-end loans retained, excluding CIB’s trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of the wholesale allowance coverage ratio.
(e)Refer to footnote (a) on page 25 for information on the Firm’s nonaccrual policy for credit card loans.
Page 27
JPMORGAN CHASE & CO.
NON-GAAP FINANCIAL MEASURES
Non-GAAP Financial Measures
(a)In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. The Firm’s definition of managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm and each of the reportable business segments on an FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. These financial measures allow management to assess the comparability of revenue from year-to-year arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business.
(b)Pre-provision profit is a non-GAAP financial measure which represents total net revenue less total noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.
(c)TCE, ROTCE, and TBVPS are each non-GAAP financial measures. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. TCE, ROTCE, and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.
(d)The ratio of the wholesale and CIB’s allowance for loan losses to period-end loans retained, excluding trade finance and conduits, is calculated excluding loans accounted for at fair value, loans held-for-sale, CIB’s trade finance loans and consolidated Firm-administered multi-seller conduits, as well as their related allowances, to provide a more meaningful assessment of the respective allowance coverage ratio.
(e)In addition to reviewing net interest income (“NII”), net yield, and noninterest revenue (“NIR”) on a managed basis, management also reviews these metrics excluding CIB Markets (“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
SIX MONTHS ENDED JUNE 30,
2Q22 Change
2022 Change
(in millions, except rates)
2Q22
1Q22
4Q21
3Q21
2Q21
1Q22
2Q21
2022
2021
2021
Net interest income - reported
$
15,128
$
13,872
$
13,601
$
13,080
$
12,741
9
%
19
%
$
29,000
$
25,630
13
%
Fully taxable-equivalent adjustments
103
98
108
104
109
5
(6)
201
218
(8)
Net interest income - managed basis (a)
$
15,231
$
13,970
$
13,709
$
13,184
$
12,850
9
19
$
29,201
$
25,848
13
Less: Markets net interest income
1,549
2,218
2,066
1,967
1,987
(30)
(22)
3,767
4,210
(11)
Net interest income excluding Markets (a)
$
13,682
$
11,752
$
11,643
$
11,217
$
10,863
16
26
$
25,434
$
21,638
18
Average interest-earning assets
$
3,385,894
$
3,401,951
$
3,337,855
$
3,219,786
$
3,177,195
—
7
$
3,393,879
$
3,152,022
8
Less: Average Markets interest-earning assets
957,304
963,845
908,093
894,892
882,848
(1)
8
960,556
874,764
10
Average interest-earning assets excluding Markets
$
2,428,590
$
2,438,106
$
2,429,762
$
2,324,894
$
2,294,347
—
6
$
2,433,323
$
2,277,258
7
Net yield on average interest-earning assets - managed basis
1.80
%
1.67
%
1.63
%
1.62
%
1.62
%
1.74
%
1.65
%
Net yield on average Markets interest-earning assets
0.65
0.93
0.90
0.87
0.90
0.79
0.97
Net yield on average interest-earning assets excluding Markets
2.26
1.95
1.90
1.91
1.90
2.11
1.92
Noninterest revenue - reported
$
15,587
$
16,845
$
15,656
$
16,567
$
17,738
(7)
(12)
$
32,432
$
37,115
(13)
Fully taxable-equivalent adjustments
812
775
984
690
807
5
1
1,587
1,551
2
Noninterest revenue - managed basis
$
16,399
$
17,620
$
16,640
$
17,257
$
18,545
(7)
(12)
$
34,019
$
38,666
(12)
Less: Markets noninterest revenue
6,241
6,535
3,222
4,302
4,800
(4)
30
12,776
11,627
10
Noninterest revenue excluding Markets
$
10,158
$
11,085
$
13,418
$
12,955
$
13,745
(8)
(26)
$
21,243
$
27,039
(21)
Memo: Markets total net revenue
$
7,790
$
8,753
$
5,288
$
6,269
$
6,787
(11)
15
$
16,543
$
15,837
4
(a) Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
