jpm-20201013
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): October 13, 2020
JPMorgan Chase & Co.
(Exact name of registrant as specified in its charter)
Delaware1-580513-2624428
(State or other jurisdiction of
incorporation or organization)
(Commission File Number)(I.R.S. employer
identification no.)
383 Madison Avenue,
New York,New York10179
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (212270-6000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stockJPMThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.10% Non-Cumulative Preferred Stock, Series AA
JPM PR GThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.15% Non-Cumulative Preferred Stock, Series BB
JPM PR HThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 5.75% Non-Cumulative Preferred Stock, Series DD
JPM PR DThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-Cumulative Preferred Stock, Series EE
JPM PR CThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.75% Non-Cumulative Preferred Stock, Series GG
JPM PR JThe New York Stock Exchange
Alerian MLP Index ETNs due May 24, 2024AMJNYSE Arca, Inc.
Guarantee of Callable Step-Up Fixed Rate Notes due April 26, 2028 of JPMorgan Chase Financial Company LLC
JPM/28The New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 2.02 Results of Operations and Financial Condition
On October 13, 2020, JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) reported 2020 third quarter net income of $9.4 billion, or $2.92 per share, compared with net income of $9.1 billion, or $2.68 per share, in the third quarter of 2019. A copy of the 2020 third quarter earnings release is attached hereto as Exhibit 99.1, and a copy of the earnings release financial supplement is attached hereto as Exhibit 99.2.
Each of the Exhibits provided with this Form 8-K shall be deemed to be “filed” for purposes of the Securities Exchange Act of 1934.
This Current Report on Form 8-K (including the Exhibits hereto) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase’s actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 2019, and Quarterly Report on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020, which have been filed with the Securities and Exchange Commission and are available on JPMorgan Chase’s website (https://jpmorganchaseco.gcs-web.com/financial-information/sec-filings) and on the Securities and Exchange Commission’s website (www.sec.gov). JPMorgan Chase does not undertake to update any forward-looking statements.











Item 9.01 Financial Statements and Exhibits

(d)    Exhibits
Exhibit No. Description of Exhibit
   
99.1
99.2
101Pursuant to Rule 406 of Regulation S-T, the cover page is formatted in Inline XBRL (Inline eXtensible Business Reporting Language).
104Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).

2



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
JPMorgan Chase & Co.
(Registrant)

By:/s/ Nicole Giles
Nicole Giles
Managing Director and Firmwide Controller
(Principal Accounting Officer)

Dated:October 13, 2020



3
Document
Exhibit 99.1
JPMorgan Chase & Co.
383 Madison Avenue, New York, NY 10179-0001
NYSE symbol: JPM
www.jpmorganchase.com
https://cdn.kscope.io/573ea315161f20b2729cdc0b68bb2427-jpmclogoa181.gif
JPMORGAN CHASE REPORTS THIRD-QUARTER 2020 NET INCOME OF $9.4 BILLION, OR $2.92 PER SHARE
THIRD-QUARTER 2020 RESULTS1
ROE 15%
ROTCE2 19%
CET1 Capital Ratios3
Std. 13.0%; Adv. 13.8%
Net payout LTM4,5
97%
Firmwide Metricsn
Reported revenue of $29.1 billion; managed revenue of $29.9 billion2
nCredit costs of $611 million included $569 million of net reserve releases
n
Average loans6 up 1%; average deposits up 30%
n
$1.3 trillion liquidity sources, including HQLA and unencumbered marketable securities7
CCB

ROE 29%


nAverage deposits up 28%; client investment assets up 11%
n
Average loans6 down 7%; credit card sales volume8 down 8%
nActive mobile customers up 10%
CIB

ROE 21%
 
n$2.2 billion of Global Investment Banking fees, up 9%
n#1 ranking for Global Investment Banking fees with 9.4% wallet share year-to-date
nTotal Markets revenue of $6.6 billion, up 30%, with Fixed Income Markets up 29% and Equity Markets up 32%
CB

ROE 19%

nGross Investment Banking revenue of $840 million, up 20%
nAverage loans up 5%; average deposits up 44%
AWM

ROE 32%
nAssets under management (AUM) of $2.6 trillion, up 16%
nAverage loans up 13%; average deposits up 23%
Jamie Dimon, Chairman and CEO, commented on the financial results: “JPMorgan Chase earned $9.4 billion of net income on nearly $30 billion of revenue and we maintained our credit reserves at $34 billion given significant economic uncertainty and a broad range of potential outcomes. We further strengthened our capital and liquidity position, increasing CET1 capital to $198 billion (13.0% CET1 ratio, up 60 basis points after paying the dividend) and liquidity sources to $1.3 trillion. The Corporate & Investment Bank continues to be a big driver of Firm performance with Markets revenue up 30% and Global IB fees up 9%. CIB and Commercial Banking continue to attract and retain deposits given our strong client franchise as our clients remain liquid. Asset & Wealth Management generated record revenue and net income and saw strong net inflows into long-term products.”

Dimon added: “In Consumer & Community Banking, we continue to add deposits, up 28% versus last year – and based on the most recent FDIC data we ranked #1 in U.S. retail deposits for the first time ever as we are investing in the business to better serve our customers’ needs. The Firm recently received approval to open branches in 10 additional states which would allow us to operate branches in all of the lower 48 U.S. states. Home Lending benefited from strong production margins, and combined debit and credit card spend showed positive year-over-year growth in September for the first time since the widespread shutdowns.”

Dimon concluded: “I want to thank our employees around the world for their tireless work in helping our clients and communities impacted by the COVID-19 pandemic over the past several months. Despite significant uncertainty in the environment, the Firm is unwavering in its commitment to drive an inclusive economic recovery, advance sustainable solutions to address climate change and improve the lives of our customers, especially those in underserved communities.”
SIGNIFICANT ITEMS
n    3Q20 results included $524 million of firmwide legal expense ($0.17 decrease in earnings per share (EPS))
OPERATING LEVERAGE
n    3Q20 reported expense of $16.9 billion; reported overhead ratio of 58%; managed overhead ratio2 of 56%
CAPITAL DISTRIBUTED
n    Common dividend of $2.8 billion, or $0.90 per share
n    Extended suspension of repurchases at least through the end of 4Q209
FORTRESS PRINCIPLES
n    Book value per share of $79.08, up 5%; tangible book value per share2 of $63.93, up 6%
n    Basel III common equity Tier 1 capital3 of $198 billion and Standardized ratio3 of 13.0%; Advanced ratio3 of 13.8%
n    Firm supplementary leverage ratio of 7.0%3

SUPPORTED CONSUMERS, BUSINESSES & COMMUNITIES
n    $1.8 trillion of credit and capital10 raised YTD
n    $164 billion of credit for consumers
n    $14 billion of credit for U.S. small businesses
n    $611 billion of credit for corporations
n    $885 billion of capital raised for corporate clients and non-U.S. government entities
n    $82 billion of credit and capital raised for nonprofit and U.S. government entities, including states, municipalities, hospitals and universities
n    $28 billion of loans under the Small Business Administration’s Paycheck Protection Program
Investor Contact: Jason Scott (212) 270-2479
1Percentage comparisons noted in the bullet points are for the third quarter of 2020 versus the prior-year third quarter, unless otherwise specified. 2For notes on non-GAAP financial measures, including managed basis reporting, see page 6.
 For additional notes see page 7.
Media Contact: Joseph Evangelisti (212) 270-7438

JPMorgan Chase & Co.
News Release
In the discussion below of Firmwide results of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”), information is presented on a managed basis, which is a non-GAAP financial measure, unless otherwise specified. The discussion below of the Firm’s business segments is also presented on a managed basis. For more information about managed basis, and non-GAAP financial measures used by management to evaluate the performance of each line of business, refer to page 6.
Comparisons noted in the sections below are for the third quarter of 2020 versus the prior-year third quarter, unless otherwise specified.
JPMORGAN CHASE (JPM)
Net revenue on a reported basis was $29.1 billion, $33.0 billion, and $29.3 billion for the third quarter of 2020, second quarter of 2020, and third quarter of 2019, respectively.
Results for JPM2Q203Q19
($ millions, except per share data)3Q202Q203Q19$ O/(U)O/(U) %$ O/(U)O/(U) %
Net revenue - managed$29,941 $33,817 $30,014 $(3,876)(11)%$(73)— %
Noninterest expense16,875 16,942 16,372 (67)— 503 
Provision for credit losses611 10,473 1,514 (9,862)(94)(903)(60)
Net income$9,443 $4,687 $9,080 $4,756 101 %$363 %
Earnings per share$2.92 $1.38 $2.68 $1.54 112 %$0.24 %
Return on common equity
15 %%15 %
Return on tangible common equity
19 18 
Discussion of Results11:
Net income was $9.4 billion, up 4%.
Net revenue of $29.9 billion was flat. Net interest income was $13.1 billion, down 9%, predominantly driven by the impact of lower rates largely offset by higher net interest income in CIB Markets as well as balance sheet growth. Noninterest revenue was $16.8 billion, up 7%, predominantly driven by higher Investment Banking fees, Markets revenue, and Credit Adjustments & Other in the Corporate & Investment Bank, and higher net investment securities gains in Corporate.
Noninterest expense of $16.9 billion, up 3%, driven by higher legal expense.
The provision for credit losses was $611 million, down $903 million from the prior year. Net charge-offs of $1.2 billion were down $191 million from the prior year, predominantly driven by Card. The current quarter included a net reserve release that was largely driven by the run-off in the Home Lending portfolio and changes in wholesale loan balances, partially offset by a build in the investment securities portfolio due to the transfer of certain securities from available-for-sale to held-to-maturity. The prior year included net reserve builds across both the Consumer and Wholesale portfolios.
2

JPMorgan Chase & Co.
News Release
CONSUMER & COMMUNITY BANKING (CCB)
Results for CCB2Q203Q19
($ millions)3Q202Q203Q19$ O/(U)O/(U) %$ O/(U)O/(U) %
Net revenue$12,755 $12,217 $13,958 $538 %$(1,203)(9)%
Consumer & Business Banking5,557 5,107 6,782 450 (1,225)(18)
Home Lending1,714 1,687 1,465 27 249 17 
Card & Auto5,484 5,423 5,711 61 (227)(4)
Noninterest expense6,770 6,626 7,025 144 (255)(4)
Provision for credit losses794 5,828 1,311 (5,034)(86)(517)(39)
Net income/(loss)$3,873 $(176)$4,245 $4,049 NM$(372)(9)%
Discussion of Results11,12:
Net income was $3.9 billion, down 9%. Net revenue was $12.8 billion, down 9%.
Consumer & Business Banking net revenue was $5.6 billion, down 18%, predominantly driven by the impact of deposit margin compression, partially offset by growth in deposit balances. Home Lending net revenue was $1.7 billion, up 17%, driven by higher production margins. Card & Auto net revenue was $5.5 billion, down 4%, driven by lower Card net interest income on lower balances, partially offset by lower Card acquisition costs and higher Card annual fees.
Noninterest expense was $6.8 billion, down 4%, predominantly driven by lower marketing investments.
The provision for credit losses was $794 million, down $517 million and included a $300 million reserve release in Home Lending due to portfolio run-off, compared to a net reserve build for CCB of $50 million in the prior year. Net charge-offs were $1.1 billion, down $167 million versus the prior year, predominantly driven by Card.
3

JPMorgan Chase & Co.
News Release
CORPORATE & INVESTMENT BANK (CIB)
Results for CIB2Q203Q19
($ millions)3Q202Q203Q19$ O/(U)O/(U) %$ O/(U)O/(U) %
Net revenue$11,503 $16,352 $9,522 $(4,849)(30)%$1,981 21 %
Banking3,709 5,027 3,485 (1,318)(26)224 
Markets & Securities Services7,794 11,325 6,037 (3,531)(31)1,757 29 
Noninterest expense5,797 6,764 5,504 (967)(14)293 
Provision for credit losses(81)1,987 92 (2,068)NM(173)NM
Net income$4,304 $5,464 $2,831 $(1,160)(21)%$1,473 52 %
Discussion of Results12:
Net income was $4.3 billion, up 52%. Net revenue was $11.5 billion, up 21%.
Banking revenue was $3.7 billion, up 6%. Investment Banking revenue was $2.1 billion, up 12%, predominantly driven by higher Investment Banking fees, up 9%, reflecting higher equity and debt underwriting fees which were partially offset by lower advisory fees. Wholesale Payments revenue was $1.3 billion, down 5%, predominantly driven by deposit margin compression and a reporting re-classification in Merchant Services12, largely offset by the impact of higher deposit balances. Lending revenue was $333 million, up 32%, predominantly driven by higher net interest income reflecting overall spread widening and higher loan balances.
Markets & Securities Services revenue was $7.8 billion, up 29%. Markets revenue was $6.6 billion, up 30%. Fixed Income Markets revenue was $4.6 billion, up 29%, driven by strong performance across products, particularly in Commodities, Credit and Securitized Products. Equity Markets revenue was $2.0 billion, up 32%, driven by strong performance across products. Securities Services revenue was $1.0 billion, flat to the prior year, as deposit margin compression was offset by balance growth. Credit Adjustments & Other was a gain of $169 million largely driven by funding and credit spread tightening on derivatives.
Noninterest expense was $5.8 billion, up 5%, predominantly driven by higher legal expense, partially offset by lower structural expense as well as lower volume- and revenue-related expense.
The provision for credit losses was a net benefit of $81 million, driven by reserve releases across multiple sectors. Net charge-offs were $23 million.
COMMERCIAL BANKING (CB)
Results for CB2Q203Q19
($ millions)3Q202Q203Q19$ O/(U)O/(U) %$ O/(U)O/(U) %
Net revenue$2,285 $2,392 $2,274 $(107)(4)%$11 — %
Noninterest expense966 899 940 67 26 
Provision for credit losses(147)2,431 67 (2,578)NM(214)NM
Net income/(loss)$1,088 $(691)$943 $1,779 NM$145 15 %
Discussion of Results12:
Net income was $1.1 billion, up 15%.
Net revenue of $2.3 billion was flat, with lower deposit margin offset by higher deposit balances and fees, higher lending revenue due to increased portfolio spreads and balances, and higher investment banking revenue.
Noninterest expense was $966 million, up 3%, driven by higher compensation.
The provision for credit losses was a net benefit of $147 million, driven by reserve releases across multiple sectors. Net charge-offs were $60 million.
4

JPMorgan Chase & Co.
News Release
ASSET & WEALTH MANAGEMENT (AWM)
Results for AWM2Q203Q19
($ millions)3Q202Q203Q19$ O/(U)O/(U) %$ O/(U)O/(U) %
Net revenue$3,737 $3,610 $3,568 $127 %$169 %
Noninterest expense2,623 2,506 2,622 117 — 
Provision for credit losses(51)223 44 (274)NM(95)NM
Net income$877 $658 $668 $219 33 %$209 31 %
Discussion of Results:     
Net income was $877 million, up 31%.
Net revenue was $3.7 billion, up 5%, predominantly driven by higher deposit and loan balances, along with higher management fees and brokerage activity, largely offset by deposit margin compression.
Noninterest expense of $2.6 billion was flat to the prior year.
The provision for credit losses was a net benefit of $51 million, driven by reserve releases.
Assets under management were $2.6 trillion, up 16%, driven by cumulative net inflows into liquidity and long-term products as well as higher market levels.
CORPORATE
Results for Corporate2Q203Q19
($ millions)3Q202Q203Q19$ O/(U)O/(U) %$ O/(U)O/(U) %
Net revenue$(339)$(754)$692 $415 55 %$(1,031)NM
Noninterest expense719 147 281 572 389 438 156 
Provision for credit losses96 — 92 NM96 NM
Net income/(loss)$(699)$(568)$393 $(131)(23)%$(1,092)NM
Discussion of Results:
Net loss was $699 million, compared with net income of $393 million in the prior year.
Net revenue was a loss of $339 million, compared with net revenue of $692 million in the prior year. Net revenue was down $1.0 billion, driven by lower net interest income, largely on lower rates, including the impact of faster prepayments on mortgage-backed securities. The current quarter included net investment securities gains of $466 million. The prior year included approximately $330 million of income related to loan sales in Home Lending.
Noninterest expense was $719 million, up $438 million predominantly driven by an impairment on a legacy investment.
The provision for credit losses was $96 million, driven by a build in the investment securities portfolio due to the transfer of certain securities from available-for-sale to held-to-maturity.








5

JPMorgan Chase & Co.
News Release
2. Notes on non-GAAP financial measures:

a.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. 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 a fully taxable-equivalent (“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 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. For a reconciliation of the Firm’s results from a reported to managed basis, see page 7 of the Earnings Release Financial Supplement.

b.Tangible common equity (“TCE”), return on tangible common equity (“ROTCE”) and tangible book value per share (“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 mortgage servicing rights), net of related deferred tax liabilities. For a reconciliation from common stockholders’ equity to TCE, see page 9 of the Earnings Release Financial Supplement. 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. Book value per share was $79.08, $76.91 and $75.24 at September 30, 2020, June 30, 2020, and September 30, 2019, respectively. TCE, ROTCE, and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.

6

JPMorgan Chase & Co.
News Release
Additional notes:

3.Reflects the relief provided by the Federal Reserve Board (the “Federal Reserve”) in response to the COVID-19 pandemic, including the CECL capital transition provisions that became effective in the first quarter of 2020. For the period ended September 30, 2020, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $6.4 billion. The SLR reflects the temporary exclusions of U.S. Treasury securities and deposits at Federal Reserve Banks. Refer to Regulatory Developments Relating to the COVID-19 Pandemic on pages 11-12 and Capital Risk Management on pages 49-54 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020 for additional information. Refer to Capital Risk Management on pages 85-92 of the Firm’s 2019 Form 10-K for additional information on the Firm’s capital metrics.
4.Last twelve months (“LTM”).
5.Net of stock issued to employees.
6.In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised to conform with the current presentation.
7.High-quality liquid assets (“HQLA”) represent the average amount of unencumbered liquid assets that qualify for inclusion in the liquidity coverage ratio (“LCR”), and excludes excess HQLA at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. Unencumbered marketable securities, such as equity securities and fixed income debt securities, include HQLA-eligible securities which are included as part of the excess liquidity at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. Does not include borrowing capacity at Federal Home Loan Banks (“FHLB”) and the discount window at the Federal Reserve Bank. Refer to Liquidity Risk Management on pages 55-59 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020 for additional information.
8.Excludes Commercial Card.
9.On September 30, 2020, the Federal Reserve extended its requirement for large banks to suspend net share repurchases through the end of the fourth quarter of 2020. For further information, see page 10 of the Earnings Release Financial Supplement.
10.Credit provided to clients represents new and renewed credit, including loans and commitments.
11.In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation.
12.In the first quarter of 2020, the Firm began reporting a Wholesale Payments business unit within CIB following a realignment of the Firm’s wholesale payments businesses. The Wholesale Payments business comprises:
Merchant Services, which was realigned from CCB to CIB
Treasury Services and Trade Finance in CIB. Trade Finance was previously reported in Lending in CIB.
In connection with the alignment of Wholesale Payments, the assets, liabilities and headcount associated with the Merchant Services business were realigned to CIB from CCB, and the revenue and expenses of the Merchant Services business is reported across CCB, CIB and CB based primarily on client relationships. Prior periods have been revised to reflect this realignment and revised allocation methodology.




7

JPMorgan Chase & Co.
News Release

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $3.2 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

JPMorgan Chase & Co. will host a conference call today, October 13, 2020, at 8:30 a.m. (Eastern) to present third quarter 2020 financial results. The general public can access the call by dialing (866) 541-2724 in the U.S. and Canada, or (706) 634-7246 for international participants. Please dial in 10 minutes prior to the start of the call. The live audio webcast and presentation slides will be available on the Firm’s website, www.jpmorganchase.com, under Investor Relations, Events & Presentations.

A replay of the conference call will be available beginning at approximately 12:30 p.m. on October 13, 2020, through midnight, October 27, 2020, by telephone at (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (international); use Conference ID # 5852509. The replay will also be available via webcast on www.jpmorganchase.com under Investor Relations, Events & Presentations. Additional detailed financial, statistical and business-related information is included in a financial supplement. The earnings release and the financial supplement are available at www.jpmorganchase.com.

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase & Co.’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase & Co.’s actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan Chase & Co.’s Annual Report on Form 10-K for the year ended December 31, 2019, and Quarterly Report on Form 10-Q for the quarterly periods ended June 30, 2020 and March 31, 2020, which have been filed with the Securities and Exchange Commission and are available on JPMorgan Chase & Co.’s website (https://jpmorganchaseco.gcs-web.com/financial-information/sec-filings), and on the Securities and Exchange Commission’s website (www.sec.gov). JPMorgan Chase & Co. does not undertake to update any forward-looking statements.


8
Document
                                                                    
Exhibit 99.2





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EARNINGS RELEASE FINANCIAL SUPPLEMENT

THIRD QUARTER 2020















                                                                    
JPMORGAN CHASE & CO.
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TABLE OF CONTENTS
Page(s)
Consolidated Results
Consolidated Financial Highlights2–3
Consolidated Statements of Income4
Consolidated Balance Sheets5
Condensed Average Balance Sheets and Annualized Yields6
Reconciliation from Reported to Managed Basis7
Segment Results - Managed Basis8
Capital and Other Selected Balance Sheet Items9
Earnings Per Share and Related Information10
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
Corporate23
Credit-Related Information24–27
Non-GAAP Financial Measures28
Glossary of Terms and Acronyms (a)
(a)    Refer to the Glossary of Terms and Acronyms on pages 293–299 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”) and the Glossary of Terms and Acronyms and Line of Business Metrics on pages 191-196 and pages 197-199, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020.


                                                                    

JPMORGAN CHASE & CO.
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CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share and ratio data)
QUARTERLY TRENDSNINE MONTHS ENDED SEPTEMBER 30,
3Q20 Change2020 Change
SELECTED INCOME STATEMENT DATA 3Q202Q201Q204Q193Q192Q203Q19202020192019
Reported Basis
Total net revenue (a)$29,147 $32,980 $28,192 $28,285 $29,291 (12)%— %$90,319 $87,114 %
Total noninterest expense (a)16,875 16,942 16,791 16,293 16,372 — 50,608 48,976 
Pre-provision profit (b)12,272 16,038 11,401 11,992 12,919 (23)(5)39,711 38,138 
Provision for credit losses611 10,473 8,285 1,427 1,514 (94)(60)19,369 4,158 366 
NET INCOME9,443 4,687 2,865 8,520 9,080 101 16,995 27,911 (39)
Managed Basis (c)
Total net revenue (a)29,941 33,817 29,010 29,165 30,014 (11)— 92,768 89,299 
Total noninterest expense (a)16,875 16,942 16,791 16,293 16,372 — 50,608 48,976 
Pre-provision profit (b)13,066 16,875 12,219 12,872 13,642 (23)(4)42,160 40,323 
Provision for credit losses611 10,473 8,285 1,427 1,514 (94)(60)19,369 4,158 366 
NET INCOME9,443 4,687 2,865 8,520 9,080 101 16,995 27,911 (39)
EARNINGS PER SHARE DATA
Net income: Basic$2.93 $1.39 $0.79 $2.58 $2.69 111 $5.10 $8.17 (38)
Diluted2.92 1.38 0.78 2.57 2.68 112 5.09 8.15 (38)
Average shares: Basic3,077.8 3,076.3 3,095.8 3,140.7 3,198.5 — (4)3,083.3 3,248.7 (5)
Diluted3,082.8 3,081.0 3,100.7 3,148.5 3,207.2 — (4)3,088.1 3,258.0 (5)
MARKET AND PER COMMON SHARE DATA
Market capitalization$293,451 $286,658 $274,323 $429,913 $369,133 (21)$293,451 $369,133 (21)
Common shares at period-end3,048.2 3,047.6 3,047.0 3,084.0 3,136.5 — (3)3,048.2 3,136.5 (3)
Book value per share79.08 76.91 75.88 75.98 75.24 79.08 75.24 
Tangible book value per share (“TBVPS”) (b)63.93 61.76 60.71 60.98 60.48 63.93 60.48 
Cash dividends declared per share0.90 0.90 0.90 0.90 0.90 — — 2.70 2.50 
FINANCIAL RATIOS (d)
Return on common equity (“ROE”)15 %%%14 %15 %%15 %
Return on tangible common equity (“ROTCE”) (b)19 17 18 11 19 
Return on assets1.14 0.58 0.40 1.22 1.30 0.72 1.37 
CAPITAL RATIOS (e)
Common equity Tier 1 (“CET1”) capital ratio13.0 %(f)12.4 %11.5 %12.4 %12.3 %13.0 %(f)12.3 %
Tier 1 capital ratio15.0 (f)14.3 13.3 14.1 14.1 15.0 (f)14.1 
Total capital ratio17.3 (f)16.7 15.5 16.0 15.9 17.3 (f)15.9 
Tier 1 leverage ratio7.0 (f)6.9 7.5 7.9 7.9 7.0 (f)7.9 
Supplementary leverage ratio (“SLR”)7.0 (f)6.8 6.0 6.3 6.3 7.0 (f)6.3 
 
Effective January 1, 2020, the Firm adopted the Financial Instruments – Credit Losses (“CECL”) accounting guidance, which resulted in a net increase to the allowance for credit losses of $4.3 billion and a decrease to retained earnings of $2.7 billion. Refer to Note 1 – Basis of Presentation on pages 85-86 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.
(a)In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation.
(b)Pre-provision profit, TBVPS and ROTCE are each non-GAAP financial measures. Tangible common equity (“TCE”) is also a non-GAAP financial measure; refer to page 9 for a reconciliation of common stockholders’ equity to TCE. Refer to page 28 for a further discussion of these measures.
(c)Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.
(d)Quarterly ratios are based upon annualized amounts.
(e)Reflects the relief provided by the Federal Reserve Board (the “Federal Reserve”) in response to the COVID-19 pandemic, including the CECL capital transition provisions that became effective in the first quarter of 2020. For the periods ended September 30, 2020, June 30, 2020 and March 31, 2020, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $6.4 billion, $6.5 billion and $4.3 billion, respectively. Effective June 30, 2020, the SLR reflects the temporary exclusions of U.S. Treasury securities and deposits at Federal Reserve Banks. Refer to Regulatory Developments Relating to the COVID-19 Pandemic on pages 11-12 and Capital Risk Management on pages 49-54 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020 for additional information. Refer to Capital Risk Management on pages 85-92 of the Firm’s 2019 Form 10-K for additional information on the Firm’s capital metrics.
(f)Estimated.
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JPMORGAN CHASE & CO.
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CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
QUARTERLY TRENDSNINE MONTHS ENDED SEPTEMBER 30,
3Q20 Change2020 Change
3Q202Q201Q204Q193Q192Q203Q19202020192019
SELECTED BALANCE SHEET DATA (period-end)
Total assets$3,246,076 $3,213,616 (f)$3,139,431 $2,687,379 $2,764,661 %17 %$3,246,076 $2,764,661 17 %
Loans:
Consumer, excluding credit card loans (a)(b)322,098 323,198 311,508 317,817 316,473 — 322,098 316,473 
Credit card loans140,377 141,656 154,021 168,924 159,571 (1)(12)140,377 159,571 (12)
Wholesale loans (a)(b)527,265 544,528 584,081 510,879 503,975 (3)527,265 503,975 
Total Loans989,740 1,009,382 1,049,610 997,620 980,019 (2)989,740 980,019 
Deposits:
U.S. offices:
Noninterest-bearing540,116 529,729 448,195 395,667 393,522 37 540,116 393,522 37 
Interest-bearing1,117,149 1,061,093 1,026,603 876,156 844,137 32 1,117,149 844,137 32 
Non-U.S. offices:
Noninterest-bearing21,406 22,752 22,192 20,087 21,455 (6)— 21,406 21,455 — 
Interest-bearing322,745 317,455 339,019 270,521 266,147 21 322,745 266,147 21 
Total deposits2,001,416 1,931,029 1,836,009 1,562,431 1,525,261 31 2,001,416 1,525,261 31 
Long-term debt 279,175 317,003 299,344 291,498 296,472 (12)(6)279,175 296,472 (6)
Common stockholders’ equity241,050 234,403 231,199 234,337 235,985 241,050 235,985 
Total stockholders’ equity271,113 264,466 261,262 261,330 264,348 271,113 264,348 
Loans-to-deposits ratio (b)49 %52 %57 %64 %64 %49 %64 %
Headcount256,358 256,710 256,720 256,981 257,444 — — 256,358 257,444 — 
95% CONFIDENCE LEVEL - TOTAL VaR (c)
Average VaR$90 $130 $59 $37 $39 (31)131 
LINE OF BUSINESS NET REVENUE (d)
Consumer & Community Banking (e)$12,755 $12,217 $13,112 $13,749 $13,958 (9)$38,084 $40,885 (7)
Corporate & Investment Bank11,503 16,352 9,948 9,647 9,522 (30)21 37,803 29,387 29 
Commercial Banking2,285 2,392 2,178 2,297 2,274 (4)— 6,855 6,972 (2)
Asset & Wealth Management 3,737 3,610 3,606 3,700 3,568 10,953 10,616 
Corporate(339)(754)166 (228)692 55 NM(927)1,439 NM
TOTAL NET REVENUE$29,941 $33,817 $29,010 $29,165 $30,014 (11)— $92,768 $89,299 
LINE OF BUSINESS NET INCOME/(LOSS)
Consumer & Community Banking$3,873 $(176)$191 $4,214 $4,245 NM(9)$3,888 $12,349 (69)
Corporate & Investment Bank4,304 5,464 1,988 2,938 2,831 (21)52 11,756 9,037 30 
Commercial Banking1,088 (691)147 944 943 NM15 544 3,005 (82)
Asset & Wealth Management877 658 664 785 668 33 31 2,199 2,048 
Corporate(699)(568)(125)(361)393 (23)NM(1,392)1,472 NM
NET INCOME$9,443 $4,687 $2,865 $8,520 $9,080 101 $16,995 $27,911 (39)
In the first quarter of 2020, the Merchant Services business was realigned from CCB to CIB as part of the Firm’s Wholesale Payments business. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 21 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.
(a)In conjunction with the adoption of CECL on January 1, 2020, the Firm reclassified risk-rated business banking and auto dealer loans held in CCB from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment. Prior periods have been revised to conform with the current presentation.
(b)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised to conform with the current presentation.
(c)Effective January 1, 2020, the Firm refined the scope of VaR to exclude positions related to the risk management of interest rate exposure from changes in the Firm’s own credit spread on fair value option elected liabilities, and included these positions in other sensitivity-based measures. Additionally, effective July 1, 2020, the Firm refined the scope of VaR to exclude certain asset-backed fair value option elected loans, and included them in other sensitivity-based measures to more effectively measure the risk from these loans. In the absence of these refinements, the average Total VaR for the three months ended September 30, 2020, June 30, 2020 and March 31, 2020 would have been different by $11 million, $(8) million and $6 million, respectively.
(d)Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.
(e)In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation.
(f)Prior-period amounts have been revised to conform with the current presentation.

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JPMORGAN CHASE & CO.
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CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share and ratio data)
QUARTERLY TRENDSNINE MONTHS ENDED SEPTEMBER 30,
3Q20 Change2020 Change
REVENUE3Q202Q201Q204Q193Q192Q203Q19202020192019
Investment banking fees $2,187 $2,850 $1,866 $1,843 $1,967 (23)%11 %$6,903 $5,658 22 %
Principal transactions4,142 7,621 2,937 2,779 3,449 (46)20 14,700 11,239 31 
Lending- and deposit-related fees (a)1,647 1,431 1,706 1,772 1,671 15 (1)4,784 4,854 (1)
Asset management, administration and commissions (a)4,470 4,266 4,540 4,301 4,306 13,276 12,607 
Investment securities gains473 26 233 123 78 NMNM732 135 442 
Mortgage fees and related income1,087 917 320 474 887 19 23 2,324 1,562 49 
Card income (b)1,169 974 995 1,335 1,233 20 (5)3,138 3,741 (16)
Other income 959 1,042 1,156 1,492 1,472 (8)(35)3,157 4,239 (26)
Noninterest revenue16,134