SEC Filing | JPMorgan Chase & Co.

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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): January 14, 2020

JPMorgan Chase & Co.

(Exact name of registrant as specified in its charter)



Delaware		1-5805	13-2624428
(State or other jurisdiction of incorporation or organization)		(Commission File Number)	(I.R.S. employer identification no.)

383 Madison Avenue,
New York,	New York		10179
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (212) 270-6000

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 class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	JPM	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.125% Non-Cumulative Preferred Stock, Series Y	JPM PR F	The 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 G	The 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 H	The 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 D	The 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 C	The 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 J	The New York Stock Exchange
Alerian MLP Index ETNs due May 24, 2024	AMJ	NYSE Arca, Inc.
Guarantee of Callable Step-Up Fixed Rate Notes due April 26, 2028 of JPMorgan Chase Financial Company LLC	JPM/28	The New York Stock Exchange
Guarantee of Cushing 30 MLP Index ETNs due June 15, 2037 of JPMorgan Chase Financial Company LLC	PPLN	NYSE Arca, Inc.

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 January 14, 2020, JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) reported 2019 fourth quarter net income of $8.5 billion, or $2.57 per share, compared with net income of $7.1 billion, or $1.98 per share, in the fourth quarter of 2018. A copy of the 2019 fourth 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, 2018, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019, and September 30, 2019 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		JPMorgan Chase & Co. Earnings Release - Fourth Quarter 2019 Results
99.2		JPMorgan Chase & Co. Earnings Release Financial Supplement - Fourth Quarter 2019
101		Pursuant to Rule 406 of Regulation S-T, the cover page is formatted in Inline XBRL (Inline eXtensible Business Reporting Language).
104		Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).

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:	January 14, 2020

Exhibit



JPMorgan Chase & Co. 383 Madison Avenue, New York, NY 10179-0001 NYSE symbol: JPM www.jpmorganchase.com

JPMORGAN CHASE REPORTS RECORD FOURTH-QUARTER 2019 NET INCOME OF

$8.5 BILLION, OR $2.57 PER SHARE

RECORD FULL-YEAR 2019 NET INCOME OF $36.4 BILLION, OR $10.72 PER SHARE

FULL-YEAR 2019 RESULTS



ROE 15% ROTCE¹19%	Common equity Tier 1² 12.4%	Net payout LTM^3,4 98%

FOURTH-QUARTER 2019 RESULTS⁵



Firmwide Metrics	n	Reported revenue of $28.3 billion; managed revenue of $29.2 billion¹
	n	ROE of 14%; ROTCE¹of 17%
	n	Average total loans down 1%, or up 3% excluding the impact of loan sales in Home Lending

CCB 4Q19 ROE 31% 2019 ROE 31%	n	Average loans down 6%; Home Lending loans down 17% impacted by loan sales; credit card loans up 8%
	n	Client investment assets up 27%; average deposits up 5%
	n	Credit card sales volume⁶ up 10%; merchant processing volume up 7%

CIB 4Q19 ROE 14% 2019 ROE 14%	n	#1 Global Investment Banking fees with 9.0% wallet share for the year, up 40 bps
CIB 4Q19 ROE 14% 2019 ROE 14%	n	Total Markets revenue of $5.0 billion, up 56%

CB 4Q19 ROE 16% 2019 ROE 17%	n	Gross Investment Banking revenue of $634 million, up 5%
CB 4Q19 ROE 16% 2019 ROE 17%	n	Average loans up 1%; deposits up 8%

AWM 4Q19 ROE 29% 2019 ROE 26%	n	Assets under management (AUM) of $2.4 trillion, up 19%
AWM 4Q19 ROE 29% 2019 ROE 26%	n	Average loans up 8%; deposits up 8%

Jamie Dimon, Chairman and CEO, commented on the financial results: “JPMorgan Chase produced strong results in the fourth quarter of 2019, capping off a solid year for the Firm where we achieved many records, including record revenue and net income. While we face a continued high level of complex geopolitical issues, global growth stabilized, albeit at a lower level, and resolution of some trade issues helped support client and market activity towards the end of the year. The U.S. consumer continues to be in a strong position and we see the benefits of this across our consumer businesses. In Consumer & Community Banking, average deposits grew at 5%, somewhat aided by lower short-term rates, and we continued to add customers in new and existing markets, and deepen our customer relationships by offering great deposit, investment and lending products. The robust holiday season was reflected in our card sales volumes and loan balances, up 10% and 8%, respectively.”

Dimon added: “The Corporate & Investment Bank generated record fourth quarter revenue - including for the Markets business, which rebounded from a challenging prior year. For the quarter, Global Investment Banking fees were up slightly from a strong performance last year, and for the full year we grew our IB fee wallet share to its highest level in a decade, maintaining our #1 rank for the 11th consecutive year. Commercial Banking earned a record $2.7 billion of IB revenue in 2019 and continued to add new client relationships on the back of our investments in bankers and technology in the U.S. and abroad. In Asset & Wealth Management, we grew loans and deposits at a healthy pace, and for the full-year, we brought in record long-term net flows of $100 billion.”

Dimon concluded: “We continue to invest in and grow our businesses. For example, in 2019, we added over 70 new branches in 16 new markets, continued our Commercial Banking international expansion, and became the first U.S. bank to be approved for a majority-owned securities business in China. We continue to make large investments in technology, including AI, cloud, digital and payments, as well as other investments in innovation, talent, security and risk controls. These actions will help us continue to grow and serve our clients going forward. I am extremely proud of how we serve our customers, clients and communities globally - we stand by them in good times and in tough times, and work to earn their trust every single day.”

FORTRESS PRINCIPLES


n	Book value per share of $75.98, up 8%; tangible book value per share¹of $60.98, up 8%


n	Basel III common equity Tier 1 capital²of $188 billion and ratio² of 12.4%


n	Firm supplementary leverage ratio of 6.3%

OPERATING LEVERAGE


n	4Q19 reported expense of $16.3 billion; reported overhead ratio of 58%; managed overhead ratio¹of 56%

CAPITAL DISTRIBUTED


n	$9.5 billion⁴ distributed to shareholders in 4Q19

n $6.7 billion of net repurchases and common dividend of $0.90 per share

SUPPORTED CONSUMERS, BUSINESSES & COMMUNITIES


n	$2.3 trillion of credit and capital⁷ raised in 2019


n	$262 billion of credit for consumers


n	$33 billion of credit for U.S. small businesses


n	$863 billion of credit for corporations


n	$1.0 trillion of capital raised for corporate clients and non-U.S. government entities


n	$79 billion of credit and capital raised for nonprofit and U.S. government entities, including states, municipalities, hospitals and universities



Investor Contact: Jason Scott (212) 270-2479 ¹For 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 fourth quarter of 2019 versus the prior-year fourth quarter, unless otherwise specified.



JPMORGAN CHASE (JPM)

Net revenue on a reported basis was $28.3 billion, $29.3 billion, and $26.1 billion for the fourth quarter of 2019, third quarter of 2019, and fourth quarter of 2018, respectively.



Results for JPM										3Q19					4Q18
($ millions, except per share data)	4Q19			3Q19			4Q18			$ O/(U)			O/(U) %		$ O/(U)			O/(U) %
Net revenue - managed	$	29,211		$	30,064		$	26,804		$	(853	)	(3	)%	$	2,407		9	%
Noninterest expense	16,339			16,422			15,720			(83		)	(1	)	619			4
Provision for credit losses	1,427			1,514			1,548			(87		)	(6	)	(121		)	(8	)
Net income	$	8,520		$	9,080		$	7,066		$	(560	)	(6	)%	$	1,454		21	%
Earnings per share	$	2.57		$	2.68		$	1.98		$	(0.11	)	(4	)%	$	0.59		30	%
Return on common equity	14		%	15		%	12		%
Return on tangible common equity	17			18			14

Discussion of Results:

Net income was $8.5 billion, up 21%.

Net revenue was $29.2 billion, up 9%. Net interest income was $14.3 billion, down 2%, driven by the impact of lower rates largely offset by balance sheet growth and mix as well as higher net interest income in CIB Markets. Noninterest revenue was $14.9 billion, up 21%, predominantly driven by higher revenue in Fixed Income and Equity Markets, Asset & Wealth Management, Home Lending, and Auto.

Noninterest expense was $16.3 billion, up 4%, driven by higher volume- and revenue-related expense, including compensation and auto lease depreciation.

The provision for credit losses was $1.4 billion, down $121 million from the prior year.

JPMorgan Chase & Co.

News Release



CONSUMER & COMMUNITY BANKING (CCB)



Results for CCB							3Q19					4Q18
($ millions)	4Q19		3Q19		4Q18		$ O/(U)			O/(U) %		$ O/(U)			O/(U) %
Net revenue	$	14,040	$	14,259	$	13,695	$	(219	)	(2	)%	$	345		3	%
Consumer & Business Banking	6,442		6,688		6,567		(246		)	(4	)	(125		)	(2	)
Home Lending	1,250		1,465		1,322		(215		)	(15	)	(72		)	(5	)
Card, Merchant Services & Auto	6,348		6,106		5,806		242			4		542			9
Noninterest expense	7,233		7,290		7,065		(57		)	(1	)	168			2
Provision for credit losses	1,207		1,311		1,348		(104		)	(8	)	(141		)	(10	)
Net income	$	4,231	$	4,273	$	4,028	$	(42	)	(1	)%	$	203		5	%

Discussion of Results:

Net income was $4.2 billion, up 5%. Net revenue was $14.0 billion, up 3%.

Consumer & Business Banking net revenue was $6.4 billion, down 2%, driven by the impact of deposit margin compression, largely offset by growth in deposit balances, and noninterest revenue from higher client investment assets and account and transaction growth. Home Lending net revenue was $1.3 billion, down 5%, driven by lower net interest income on lower balances, and lower net servicing revenue, predominantly offset by higher net production revenue. Card, Merchant Services & Auto net revenue was $6.3 billion, up 9%, driven by higher Card net interest income on loan growth and margin expansion, as well as higher auto lease volumes.

Noninterest expense was $7.2 billion, up 2%, driven by higher volume- and revenue-related expense, as well as continued investments in the business, largely offset by expense efficiencies.

The provision for credit losses was $1.2 billion, down $141 million, and included a $150 million net reserve release. In Home Lending, the current period included a reserve release in the purchased credit-impaired portfolio of $250 million reflecting improvements in delinquencies and home prices. In Card, net charge-offs were higher, in line with expectations, and the current period included a reserve build of $100 million driven by growth, compared to a reserve build of $150 million in the prior year.

JPMorgan Chase & Co.

News Release



CORPORATE & INVESTMENT BANK (CIB)



Results for CIB							3Q19					4Q18
($ millions)	4Q19		3Q19		4Q18		$ O/(U)			O/(U) %		$ O/(U)		O/(U) %
Net revenue	$	9,471	$	9,338	$	7,237	$	133		1	%	$	2,234	31	%
Banking	3,330		3,301		3,281		29			1		49		1
Markets & Securities Services	6,141		6,037		3,956		104			2		2,185		55
Noninterest expense	5,231		5,348		4,681		(117		)	(2	)	550		12
Provision for credit losses	98		92		82		6			7		16		20
Net income	$	2,927	$	2,809	$	1,975	$	118		4	%	$	952	48	%

Discussion of Results:

Net income was $2.9 billion, up 48%. Net revenue was $9.5 billion, up 31%.

Banking revenue was $3.3 billion, up 1%. Investment Banking revenue was $1.8 billion, up 6% with overall share gains. Revenue growth was driven by higher debt and equity underwriting fees which were partially offset by lower advisory fees. Treasury Services revenue was $1.2 billion, down 3%, driven by deposit margin compression predominantly offset by higher balances and fee growth. Lending revenue was $325 million, down 6%, driven by mark-to-market losses on hedges.

Markets & Securities Services revenue was $6.1 billion, up 55%. Markets revenue was $5.0 billion, up 56%. Fixed Income Markets revenue was $3.4 billion, up 86%, benefiting from a favorable comparison against a weak prior year. The overall performance reflected strength across businesses, notably in Securitized Products and Rates, driven by strong client activity and monetizing flows. Equity Markets revenue was $1.5 billion, up 15%, driven by higher revenue in Prime and Cash Equities. Securities Services revenue was $1.1 billion, up 3%, driven by organic growth partially offset by deposit margin compression. Credit Adjustments & Other was a gain of $126 million reflecting lower funding spreads on derivatives, compared with a loss of $243 million in the prior year.

Noninterest expense was $5.2 billion, up 12%, driven by legal expense, volume- and revenue-related expense, as well as investments in the business.

The provision for credit losses was $98 million, predominantly driven by reserve builds on select client downgrades.



COMMERCIAL BANKING (CB)



Results for CB							3Q19				4Q18
($ millions)	4Q19		3Q19		4Q18		$ O/(U)		O/(U) %		$ O/(U)			O/(U) %
Net revenue	$	2,228	$	2,207	$	2,306	$	21	1	%	$	(78	)	(3	)%
Noninterest expense	882		881		845		1		—		37			4
Provision for credit losses	110		67		106		43		64		4			4
Net income	$	938	$	937	$	1,036	$	1	—		$	(98	)	(9	)%

Discussion of Results:

Net income was $938 million, down 9%.

Net revenue was $2.2 billion, down 3%, with lower net interest income driven by lower deposit margin, largely offset by higher deposit balances, and higher noninterest revenue from deposit fees and a gain on a strategic investment.

Noninterest expense was $882 million, up 4%, driven by investments in the business.

The provision for credit losses was $110 million, largely driven by reserve builds on select client downgrades.

JPMorgan Chase & Co.

News Release



ASSET & WEALTH MANAGEMENT (AWM)



Results for AWM							3Q19					4Q18
($ millions)	4Q19		3Q19		4Q18		$ O/(U)			O/(U) %		$ O/(U)		O/(U) %
Net revenue	$	3,700	$	3,568	$	3,439	$	132		4	%	$	261	8	%
Noninterest expense	2,650		2,622		2,621		28			1		29		1
Provision for credit losses	13		44		13		(31		)	(70	)	—		—
Net income	$	785	$	668	$	604	$	117		18	%	$	181	30	%

Discussion of Results:

Net income was $785 million, up 30%.

Net revenue was $3.7 billion, up 8%, predominantly driven by higher investment valuations and average market levels, as well as deposit and loan growth, partially offset by deposit margin compression.

Noninterest expense was $2.7 billion, up 1%, driven by volume- and revenue-related expense as well as investments in the business, predominantly offset by expense efficiencies.

Assets under management were $2.4 trillion, up 19%, driven by the impact of higher market levels and net inflows into both long-term and liquidity products.



CORPORATE



Results for Corporate									3Q19				4Q18
($ millions)	4Q19			3Q19		4Q18			$ O/(U)			O/(U) %	$ O/(U)			O/(U) %
Net revenue	$	(228	)	$	692	$	127		$	(920	)	NM	$	(355	)	NM
Noninterest expense	343			281		508			62			22	(165		)	(32	)
Provision for credit losses	(1		)	—		(1		)	(1		)	NM	—			—
Net income/(loss)	$	(361	)	$	393	$	(577	)	$	(754	)	NM	$	216		37	%

Discussion of Results:

Net loss was $361 million, compared with a net loss of $577 million in the prior year.

Net revenue was a loss of $228 million, reflecting approximately $190 million of net markdowns on certain legacy private equity investments in the quarter. Compared to the prior year, net revenue decreased $355 million, predominantly driven by lower net interest income on lower rates. Compared to the third quarter of 2019, net revenue decreased $920 million largely driven by lower net interest income on lower rates, as well as the private equity markdowns in the current quarter. The prior quarter also included a benefit from income related to loan sales in Home Lending.

Noninterest expense of $343 million was lower by $165 million driven by the timing of contributions to the JPMorgan Chase Foundation in the prior year.

JPMorgan Chase & Co.

News Release

1. Notes on non-GAAP financial measures:

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.

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 $75.98, $75.24 and $70.35 at December 31, 2019, September 30, 2019, and December 31, 2018, respectively. TCE, ROTCE, and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.

JPMorgan Chase & Co.

News Release

Additional notes:


2.	Estimated. The Basel III regulatory capital rules became fully phased-in effective January 1, 2019. Refer to Capital Risk Management on pages 85-94 of the Firm’s 2018 Form 10-K and pages 45-49 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 for additional information on these measures.


3.	Last twelve months (“LTM”).


4.	Net of stock issued to employees.


5.	Percentage comparison noted in the bullet points are for the fourth quarter of 2019 versus the prior year fourth quarter, unless otherwise specified.


6.	Excludes Commercial Card.

Credit provided to clients represents new and renewed credit, including loans and commitments. Credit provided to small businesses reflects loans and increased lines of credit provided by Consumer & Business Banking; Card, Merchant Services & Auto; and Commercial Banking. Credit provided to nonprofit and U.S. and non-U.S. government entities, including U.S. states, municipalities, hospitals and universities, represents credit provided by the Corporate & Investment Bank and Commercial Banking.

JPMorgan Chase & Co.

News Release

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.7 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, January 14, 2020, at 8:30 a.m. (Eastern) to present fourth quarter 2019 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 January 14, 2020, through midnight, January 28, 2020, by telephone at (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (international); use Conference ID # 4327419. 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, 2018, and Quarterly Reports on Form 10-Q for the quarterly periods ended September 30, 2019, June 30, 2019 and March 31, 2019, 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.

Exhibit

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FOURTH QUARTER 2019



JPMORGAN CHASE & CO.
TABLE OF CONTENTS

							Page(s)
Consolidated Results
Consolidated Financial Highlights							2–3
Consolidated Statements of Income							4
Consolidated Balance Sheets							5
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 and Key Performance Measures							28


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, 2018 (the “2018 Form 10-K”) and the Glossary of Terms and Acronyms and Line of Business Metrics on pages 168-172 and pages 173-175, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019.



JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share and ratio data)

	QUARTERLY TRENDS																				FULL YEAR
																	4Q19 Change											2019 Change
SELECTED INCOME STATEMENT DATA	4Q19				3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		2019				2018			2018
Reported Basis
Total net revenue	$	28,331			$	29,341		$	28,832		$	29,123		$	26,109		(3	)%	9	%	$	115,627			$	109,029		6	%
Total noninterest expense	16,339				16,422			16,341			16,395			15,720			(1	)	4		65,497				63,394			3
Pre-provision profit	11,992				12,919			12,491			12,728			10,389			(7	)	15		50,130				45,635			10
Provision for credit losses	1,427				1,514			1,149			1,495			1,548			(6	)	(8	)	5,585				4,871			15
NET INCOME	8,520				9,080			9,652			9,179			7,066			(6	)	21		36,431				32,474			12

Managed Basis (a)
Total net revenue	29,211				30,064			29,566			29,851			26,804			(3	)	9		118,692				111,534			6
Total noninterest expense	16,339				16,422			16,341			16,395			15,720			(1	)	4		65,497				63,394			3
Pre-provision profit	12,872				13,642			13,225			13,456			11,084			(6	)	16		53,195				48,140			11
Provision for credit losses	1,427				1,514			1,149			1,495			1,548			(6	)	(8	)	5,585				4,871			15
NET INCOME	8,520				9,080			9,652			9,179			7,066			(6	)	21		36,431				32,474			12

EARNINGS PER SHARE DATA
Net income: Basic	$	2.58			$	2.69		$	2.83		$	2.65		$	1.99		(4	)	30		$	10.75			$	9.04		19
Diluted	2.57				2.68			2.82			2.65			1.98			(4	)	30		10.72				9.00			19
Average shares: Basic	3,140.7				3,198.5			3,250.6			3,298.0			3,335.8			(2	)	(6	)	3,221.5				3,396.4			(5	)
Diluted	3,148.5				3,207.2			3,259.7			3,308.2			3,347.3			(2	)	(6	)	3,230.4				3,414.0			(5	)

MARKET AND PER COMMON SHARE DATA
Market capitalization	$	429,913			$	369,133		$	357,479		$	328,387		$	319,780		16		34		$	429,913			$	319,780		34
Common shares at period-end	3,084.0				3,136.5			3,197.5			3,244.0			3,275.8			(2	)	(6	)	3,084.0				3,275.8			(6	)
Book value per share	75.98				75.24			73.88			71.78			70.35			1		8		75.98				70.35			8
Tangible book value per share (“TBVPS”) (b)	60.98				60.48			59.52			57.62			56.33			1		8		60.98				56.33			8
Cash dividends declared per share	0.90				0.90			0.80			0.80			0.80			—		13		3.40				2.72			25

FINANCIAL RATIOS (c)
Return on common equity (“ROE”)	14		%		15		%	16		%	16		%	12		%					15		%		13		%
Return on tangible common equity (“ROTCE”) (b)	17				18			20			19			14							19				17
Return on assets	1.22				1.30			1.41			1.39			1.06							1.33				1.24

CAPITAL RATIOS
Common equity Tier 1 (“CET1”) capital ratio (d)	12.4		%	(e)	12.3		%	12.2		%	12.1		%	12.0		%					12.4		%	(e)	12.0		%
Tier 1 capital ratio (d)	14.1			(e)	14.1			14.0			13.8			13.7							14.1			(e)	13.7
Total capital ratio (d)	16.0			(e)	15.9			15.8			15.7			15.5							16.0			(e)	15.5
Tier 1 leverage ratio (d)	7.9			(e)	7.9			8.0			8.1			8.1							7.9			(e)	8.1
Supplementary leverage ratio (“SLR”)	6.3			(e)	6.3			6.4			6.4			6.4							6.3			(e)	6.4


(a)	Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.

(b)

TBVPS and ROTCE are each non-GAAP financial measures. TBVPS represents tangible common equity (“TCE”) divided by common shares at period-end. ROTCE measures the Firm’s net income applicable to common equity as a percentage of average TCE. 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)	Quarterly ratios are based upon annualized amounts.

(d)

The Basel III capital rules became fully phased-in effective January 1, 2019. Prior to this date, the required capital measures were subject to the transitional rules which, as of December 31, 2018, were the same on a fully phased-in and transitional basis. Refer to Capital Risk Management on pages 85-94 of the Firm’s 2018 Form 10-K and pages 45-49 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 for additional information on these measures.


(e)	Estimated.

Page 2



JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)

	QUARTERLY TRENDS																			FULL YEAR
																4Q19 Change										2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		2019			2018			2018
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,687,379		$	2,764,661		$	2,727,379		$	2,737,188		$	2,622,532		(3	)%	2	%	$	2,687,379		$	2,622,532		2	%
Loans:
Consumer, excluding credit card loans	335,040			336,630			352,722			363,914			373,732			—		(10	)	335,040			373,732			(10	)
Credit card loans	168,924			159,571			157,576			150,527			156,632			6		8		168,924			156,632			8
Wholesale loans	455,805			449,017			446,591			441,804			454,190			2		—		455,805			454,190			—
Total Loans	959,769			945,218			956,889			956,245			984,554			2		(3	)	959,769			984,554			(3	)
Core loans (a)	916,144			899,572			908,971			905,943			931,856			2		(2	)	916,144			931,856			(2	)
Core loans (average) (a)	903,707			900,567			905,786			916,567			907,271			—		—		906,606			885,221			2

Deposits:
U.S. offices:
Noninterest-bearing (b)	395,667			393,522			394,237			388,572			386,709			1		2		395,667			386,709			2
Interest-bearing (b)	876,156			844,137			841,397			826,723			813,881			4		8		876,156			813,881			8
Non-U.S. offices:
Noninterest-bearing (b)	20,087			21,455			20,419			21,090			21,459			(6	)	(6	)	20,087			21,459			(6	)
Interest-bearing (b)	270,521			266,147			268,308			257,056			248,617			2		9		270,521			248,617			9
Total deposits	1,562,431			1,525,261			1,524,361			1,493,441			1,470,666			2		6		1,562,431			1,470,666			6

Long-term debt	291,498			296,472			288,869			290,893			282,031			(2	)	3		291,498			282,031			3
Common stockholders’ equity	234,337			235,985			236,222			232,844			230,447			(1	)	2		234,337			230,447			2
Total stockholders’ equity	261,330			264,348			263,215			259,837			256,515			(1	)	2		261,330			256,515			2

Loans-to-deposits ratio	61		%	62		%	63		%	64		%	67		%					61		%	67		%

Headcount	256,981			257,444			254,983			255,998			256,105			—		—		256,981			256,105			—

95% CONFIDENCE LEVEL - TOTAL VaR
Average VaR	$	37		$	39		$	46		$	52		$	51		(5	)	(27	)

LINE OF BUSINESS NET REVENUE (c)
Consumer & Community Banking	$	14,040		$	14,259		$	13,833		$	13,751		$	13,695		(2	)	3		$	55,883		$	52,079		7
Corporate & Investment Bank	9,471			9,338			9,641			9,848			7,237			1		31		38,298			36,448			5
Commercial Banking	2,228			2,207			2,211			2,338			2,306			1		(3	)	8,984			9,059			(1	)
Asset & Wealth Management	3,700			3,568			3,559			3,489			3,439			4		8		14,316			14,076			2
Corporate	(228		)	692			322			425			127			NM		NM		1,211			(128		)	NM
TOTAL NET REVENUE	$	29,211		$	30,064		$	29,566		$	29,851		$	26,804		(3	)	9		$	118,692		$	111,534		6

LINE OF BUSINESS NET INCOME
Consumer & Community Banking	$	4,231		$	4,273		$	4,174		$	3,963		$	4,028		(1	)	5		$	16,641		$	14,852		12
Corporate & Investment Bank	2,927			2,809			2,935			3,251			1,975			4		48		11,922			11,773			1
Commercial Banking	938			937			996			1,053			1,036			—		(9	)	3,924			4,237			(7	)
Asset & Wealth Management	785			668			719			661			604			18		30		2,833			2,853			(1	)
Corporate	(361		)	393			828			251			(577		)	NM		37		1,111			(1,241		)	NM
NET INCOME	$	8,520		$	9,080		$	9,652		$	9,179		$	7,066		(6	)	21		$	36,431		$	32,474		12


(a)	Loans considered central to the Firm’s ongoing businesses. Refer to page 28 for further discussion of core loans.


(b)	In the second quarter of 2019, the Firm reclassified balances related to certain structured notes from interest-bearing to noninterest-bearing deposits as the associated returns are recorded in principal transactions revenue and not in net interest income. This change was applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.


(c)	Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.

Page 3



JPMORGAN CHASE & CO.
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share and ratio data)

	QUARTERLY TRENDS																				FULL YEAR
																	4Q19 Change											2019 Change
REVENUE	4Q19			3Q19			2Q19				1Q19			4Q18			3Q19		4Q18		2019				2018			2018
Investment banking fees	$	1,843		$	1,967		$	1,851			$	1,840		$	1,814		(6	)%	2	%	$	7,501			$	7,550		(1	)%
Principal transactions	2,779			3,449			3,714				4,076			1,361			(19	)	104		14,018				12,059			16
Lending- and deposit-related fees	1,726			1,626			1,535				1,482			1,538			6		12		6,369				6,052			5
Asset management, administration and commissions	4,347			4,351			4,353				4,114			4,195			—		4		17,165				17,118			—
Investment securities gains/(losses)	123			78			44				13			(24		)	58		NM		258				(395		)	NM
Mortgage fees and related income	474			887			279				396			203			(47	)	133		2,036				1,254			62
Card income	1,381			1,283			1,366				1,274			1,366			8		1		5,304				4,989			6
Other income	1,492			1,472			1,292				1,475			1,302			1		15		5,731				5,343			7
Noninterest revenue	14,165			15,113			14,434				14,670			11,755			(6	)	21		58,382				53,970			8
Interest income (a)	19,927			21,121			21,603				21,389			20,601			(6	)	(3	)	84,040				76,100			10
Interest expense (a)	5,761			6,893			7,205				6,936			6,247			(16	)	(8	)	26,795				21,041			27
Net interest income	14,166			14,228			14,398				14,453			14,354			—		(1	)	57,245				55,059			4
TOTAL NET REVENUE	28,331			29,341			28,832				29,123			26,109			(3	)	9		115,627				109,029			6

Provision for credit losses	1,427			1,514			1,149				1,495			1,548			(6	)	(8	)	5,585				4,871			15

NONINTEREST EXPENSE
Compensation expense	8,088			8,583			8,547				8,937			7,809			(6	)	4		34,155				33,117			3
Occupancy expense	1,084			1,110			1,060				1,068			1,069			(2	)	1		4,322				3,952			9
Technology, communications and equipment expense	2,585			2,494			2,378				2,364			2,361			4		9		9,821				8,802			12
Professional and outside services	2,226			2,056			2,212				2,039			2,169			8		3		8,533				8,502			—
Marketing	893			945			862				879			894			(6	)	—		3,579				3,290			9
Other expense (b)	1,463			1,234			1,282				1,108			1,418			19		3		5,087				5,731			(11	)
TOTAL NONINTEREST EXPENSE	16,339			16,422			16,341				16,395			15,720			(1	)	4		65,497				63,394			3
Income before income tax expense	10,565			11,405			11,342				11,233			8,841			(7	)	20		44,545				40,764			9
Income tax expense	2,045			2,325			1,690			(e)	2,054			1,775			(12	)	15		8,114			(e)	8,290			(2	)
NET INCOME	$	8,520		$	9,080		$	9,652			$	9,179		$	7,066		(6	)	21		$	36,431			$	32,474		12

NET INCOME PER COMMON SHARE DATA
Basic earnings per share	$	2.58		$	2.69		$	2.83			$	2.65		$	1.99		(4	)	30		$	10.75			$	9.04		19
Diluted earnings per share	2.57			2.68			2.82				2.65			1.98			(4	)	30		10.72				9.00			19

FINANCIAL RATIOS
Return on common equity (c)	14		%	15		%	16		%		16		%	12		%					15		%		13		%
Return on tangible common equity (c)(d)	17			18			20				19			14							19				17
Return on assets (c)	1.22			1.30			1.41				1.39			1.06							1.33				1.24
Effective income tax rate	19.4			20.4			14.9			(e)	18.3			20.1							18.2			(e)	20.3
Overhead ratio	58			56			57				56			60							57				58

(a)


(b)	Included Firmwide legal expense/(benefit) of $241 million, $10 million, $69 million, $(81) million and $(18) million for the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively; and $239 million and $72 million for the full year 2019 and 2018, respectively.


(c)	Quarterly ratios are based upon annualized amounts.


(d)	Refer to page 28 for further discussion of ROTCE.


(e)	The three months ended June 30, 2019 and the full year 2019 included income tax benefits of $768 million and $1.1 billion, respectively, due to the resolution of certain tax audits.

Page 4



JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
																		Dec 31, 2019
																		Change
	Dec 31,			Sep 30,				Jun 30,			Mar 31,				Dec 31,			Sep 30,		Dec 31,
	2019			2019				2019			2019				2018			2019		2018
ASSETS
Cash and due from banks	$	21,704		$	21,215			$	23,164		$	21,946			$	22,324		2	%	(3	)%
Deposits with banks	241,927			235,382				244,874			280,658				256,469			3		(6	)
Federal funds sold and securities purchased under
resale agreements	249,157			257,391				267,864			299,140				321,588			(3	)	(23	)
Securities borrowed	139,758			138,336				130,661			123,186				111,995			1		25
Trading assets:
Debt and equity instruments	361,337			440,298				470,495			483,069				359,501			(18	)	1
Derivative receivables	49,766			55,577				52,878			50,333				54,213			(10	)	(8	)
Investment securities	398,239			394,251				307,264			267,365				261,828			1		52
Loans	959,769			945,218				956,889			956,245				984,554			2		(3	)
Less: Allowance for loan losses	13,123			13,235				13,166			13,533				13,445			(1	)	(2	)
Loans, net of allowance for loan losses	946,646			931,983				943,723			942,712				971,109			2		(3	)
Accrued interest and accounts receivable	72,861			88,988				88,399			72,240				73,200			(18	)	—
Premises and equipment	25,813			25,117				24,665			24,160			(b)	14,934			3		73
Goodwill, MSRs and other intangible assets	53,341			53,078				53,302			54,168				54,349			—		(2	)
Other assets	126,830			123,045				120,090			118,211				121,022			3		5
TOTAL ASSETS	$	2,687,379		$	2,764,661			$	2,727,379		$	2,737,188			$	2,622,532		(3	)	2

LIABILITIES
Deposits	$	1,562,431		$	1,525,261			$	1,524,361		$	1,493,441			$	1,470,666		2		6
Federal funds purchased and securities loaned or sold
under repurchase agreements	183,675			247,766				201,683			222,677				182,320			(26	)	1
Short-term borrowings	40,920			48,893				59,890			71,305				69,276			(16	)	(41	)
Trading liabilities:
Debt and equity instruments	75,569			90,553				106,160			117,904				103,004			(17	)	(27	)
Derivative payables	43,708			47,790				41,479			39,003				41,769			(9	)	5
Accounts payable and other liabilities	210,407			225,063				216,137			216,173			(b)	196,710			(7	)	7
Beneficial interests issued by consolidated VIEs	17,841			18,515				25,585			25,955				20,241			(4	)	(12	)
Long-term debt	291,498			296,472				288,869			290,893				282,031			(2	)	3
TOTAL LIABILITIES	2,426,049			2,500,313				2,464,164			2,477,351				2,366,017			(3	)	3

STOCKHOLDERS’ EQUITY
Preferred stock	26,993			28,363			(a)	26,993			26,993				26,068			(5	)	4
Common stock	4,105			4,105				4,105			4,105				4,105			—		—
Additional paid-in capital	88,522			88,512				88,359			88,170				89,162			—		(1	)
Retained earnings	223,211			217,888				212,093			205,437				199,202			2		12
Accumulated other comprehensive income/(loss)	1,569			1,800				1,114			(558		)		(1,507		)	(13	)	NM
Shares held in RSU Trust, at cost	(21		)	(21		)		(21		)	(21		)		(21		)	—		—
Treasury stock, at cost	(83,049		)	(76,299		)		(69,428		)	(64,289		)		(60,494		)	(9	)	(37	)
TOTAL STOCKHOLDERS’ EQUITY	261,330			264,348				263,215			259,837				256,515			(1	)	2
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,687,379		$	2,764,661			$	2,727,379		$	2,737,188			$	2,622,532		(3	)	2


(a)	Included $1.4 billion, which was redeemed on October 30, 2019, as previously announced on September 26, 2019.

(b)

Effective January 1, 2019, the Firm adopted new accounting guidance that requires lessees to recognize on the Consolidated balance sheets all leases with lease terms greater than twelve months as a lease liability with a corresponding right-of-use (“ROU”) asset. Accordingly, the Firm recognized operating lease liabilities in Accounts payable and other liabilities and ROU assets in Premises and equipment of $8.2 billion and $8.1 billion, respectively, predominantly in Corporate and CCB.

Page 5



JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
	QUARTERLY TRENDS																			FULL YEAR
																4Q19 Change										2019 Change
AVERAGE BALANCES	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		2019			2018			2018
ASSETS
Deposits with banks	$	272,648		$	267,578		$	289,838		$	290,281		$	364,332		2	%	(25	)%	$	280,004		$	405,514		(31	)%
Federal funds sold and securities purchased under
resale agreements	248,170			276,721			288,781			288,478			256,258			(10	)	(3	)	275,429			217,150			27
Securities borrowed	135,374			139,939			126,157			123,467			120,930			(3	)	12		131,291			115,082			14
Trading assets - debt instruments (a)	323,554			339,198			351,716			322,541			257,733			(5	)	26		334,269			244,771			37
Investment securities	394,002			343,134			281,232			259,400			245,020			15		61		319,875			236,688			35
Loans	948,298			947,280			954,854			968,019			961,138			—		(1	)	954,539			944,885			1
All other interest-earning assets (b)	55,695			51,304			46,516			46,708			49,038			9		14		50,084			48,818			3
Total interest-earning assets (a)	2,377,741			2,365,154			2,339,094			2,298,894			2,254,449			1		5		2,345,491			2,212,908			6
Trading assets - equity and other instruments (a)	114,112			113,980			120,545			108,598			100,655			—		13		114,323			118,152			(3	)
Trading assets - derivative receivables	52,860			57,062			52,659			52,522			59,386			(7	)	(11	)	53,786			60,734			(11	)
All other noninterest-earning assets	232,557			228,856			226,757			224,700			222,015			2		5		228,241			217,104			5
TOTAL ASSETS	$	2,777,270		$	2,765,052		$	2,739,055		$	2,684,714		$	2,636,505		—		5		$	2,741,841		$	2,608,898		5
LIABILITIES
Interest-bearing deposits (a)	$	1,154,716		$	1,123,452		$	1,104,051		$	1,080,274		$	1,061,038		3		9		$	1,115,848		$	1,045,037		7
Federal funds purchased and securities loaned or
sold under repurchase agreements	235,481			239,698			227,313			209,065			184,684			(2	)	28		227,994			189,282			20
Short-term borrowings (a)(c)	39,936			44,814			58,262			67,074			65,804			(11	)	(39	)	52,426			54,993			(5	)
Trading liabilities - debt and other interest-bearing liabilities (a)(d)	170,049			183,369			191,655			183,478			182,784			(7	)	(7	)	182,105			177,788			2
Beneficial interests issued by consolidated VIEs	19,390			21,123			26,713			22,829			19,982			(8	)	(3	)	22,501			21,079			7
Long-term debt (a)	248,521			248,985			246,053			248,302			240,095			—		4		247,968			243,246			2
Total interest-bearing liabilities (a)	1,868,093			1,861,441			1,854,047			1,811,022			1,754,387			—		6		1,848,842			1,731,425			7
Noninterest-bearing deposits (a)	413,582			407,428			408,243			399,468			405,255			2		2		407,219			411,424			(1	)
Trading liabilities - equity and other instruments (a)	28,197			31,310			30,170			34,734			37,812			(10	)	(25	)	31,085			34,667			(10	)
Trading liabilities - derivative payables	44,361			45,987			40,233			39,567			43,538			(4	)	2		42,560			43,075			(1	)
All other noninterest-bearing liabilities (a)	162,490			155,032			146,343			142,746			139,015			5		17		151,717			132,836			14
TOTAL LIABILITIES	2,516,723			2,501,198			2,479,036			2,427,537			2,380,007			1		6		2,481,423			2,353,427			5
Preferred stock	27,669			28,241			26,993			27,126			26,602			(2	)	4		27,511			26,249			5
Common stockholders’ equity	232,878			235,613			233,026			230,051			229,896			(1	)	1		232,907			229,222			2
TOTAL STOCKHOLDERS’ EQUITY	260,547			263,854			260,019			257,177			256,498			(1	)	2		260,418			255,471			2
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,777,270		$	2,765,052		$	2,739,055		$	2,684,714		$	2,636,505		—		5		$	2,741,841		$	2,608,898		5

AVERAGE RATES (e)
INTEREST-EARNING ASSETS
Deposits with banks	1.00		%	1.33		%	1.57		%	1.64		%	1.59		%					1.39		%	1.46		%
Federal funds sold and securities purchased under
resale agreements	2.05			2.21			2.33			2.32			2.06							2.23			1.76
Securities borrowed (a)	0.81			1.23			1.48			1.30			1.19							1.20			0.79
Trading assets - debt instruments (a)	3.03			3.12			3.34			3.50			3.62							3.25			3.58
Investment securities	2.65			2.92			3.28			3.37			3.32							3.01			3.23
Loans	5.11			5.29			5.36			5.41			5.26							5.29			5.06
All other interest-earning assets (a)(b)	3.45			4.27			4.07			3.98			3.73							3.93			3.87
Total interest-earning assets (a)	3.35			3.56			3.73			3.80			3.65							3.61			3.47

INTEREST-BEARING LIABILITIES
Interest-bearing deposits (a)	0.67			0.85			0.88			0.82			0.73							0.80			0.57
Federal funds purchased and securities loaned or
sold under repurchase agreements	1.77			2.05			2.16			2.15			1.94							2.03			1.62
Short-term borrowings (a)(c)	1.97			2.31			2.49			2.59			2.34							2.38			2.08
Trading liabilities - debt and other interest-bearing liabilities (a)(d)	1.04			1.43			1.60			1.59			1.55							1.42			1.34
Beneficial interests issued by consolidated VIEs	2.22			2.53			2.63			2.66			2.53							2.52			2.34
Long-term debt (a)	3.21			3.49			3.69			3.82			3.58							3.55			3.28
Total interest-bearing liabilities (a)	1.22			1.47			1.56			1.55			1.41							1.45			1.22

INTEREST RATE SPREAD (a)	2.13		%	2.09		%	2.17		%	2.25		%	2.24		%					2.16		%	2.25		%
NET YIELD ON INTEREST-EARNING ASSETS (a)	2.38		%	2.41		%	2.49		%	2.57		%	2.55		%					2.46		%	2.52		%
Memo: Net yield on interest-earning assets excluding CIB Markets (f)	3.06		%	3.23		%	3.35		%	3.43		%	3.35		%					3.27		%	3.25		%

(a)

In the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income and interest expense, but had no effect on net interest income. These changes were made to align the accounting treatment between the balance sheet and the related interest income or expense, primarily by offsetting interest income and expense for certain prime brokerage-related held-for-investment customer receivables and payables that are currently presented as a single margin account on the balance sheet. In addition, the Firm reclassified balances related to certain instruments and structured notes from interest-earning/bearing to noninterest-earning/bearing assets and liabilities as the associated returns are recorded in principal transactions revenue and not in net interest income. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.


(b)	Includes prime 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.


(c)	Includes commercial paper.


(d)	Other interest-bearing liabilities include prime brokerage-related customer payables.


(e)	Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.


(f)	Net yield on interest-earning assets excluding CIB Markets is a non-GAAP financial measure. Refer to page 28 for further discussion of the net yield on interest-earning assets excluding CIB Markets.

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																			FULL YEAR
																4Q19 Change										2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		2019			2018			2018
OTHER INCOME
Other income - reported	$	1,492		$	1,472		$	1,292		$	1,475		$	1,302		1	%	15	%	$	5,731		$	5,343		7	%
Fully taxable-equivalent adjustments (a)	757			596			596			585			540			27		40		2,534			1,877			35
Other income - managed	$	2,249		$	2,068		$	1,888		$	2,060		$	1,842		9		22		$	8,265		$	7,220		14

TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported	$	14,165		$	15,113		$	14,434		$	14,670		$	11,755		(6	)	21		$	58,382		$	53,970		8
Fully taxable-equivalent adjustments (a)	757			596			596			585			540			27		40		2,534			1,877			35
Total noninterest revenue - managed	$	14,922		$	15,709		$	15,030		$	15,255		$	12,295		(5	)	21		$	60,916		$	55,847		9

NET INTEREST INCOME
Net interest income - reported	$	14,166		$	14,228		$	14,398		$	14,453		$	14,354		—		(1	)	$	57,245		$	55,059		4
Fully taxable-equivalent adjustments (a)	123			127			138			143			155			(3	)	(21	)	531			628			(15	)
Net interest income - managed	$	14,289		$	14,355		$	14,536		$	14,596		$	14,509		—		(2	)	$	57,776		$	55,687		4

TOTAL NET REVENUE
Total net revenue - reported	$	28,331		$	29,341		$	28,832		$	29,123		$	26,109		(3	)	9		$	115,627		$	109,029		6
Fully taxable-equivalent adjustments (a)	880			723			734			728			695			22		27		3,065			2,505			22
Total net revenue - managed	$	29,211		$	30,064		$	29,566		$	29,851		$	26,804		(3	)	9		$	118,692		$	111,534		6

PRE-PROVISION PROFIT
Pre-provision profit - reported	$	11,992		$	12,919		$	12,491		$	12,728		$	10,389		(7	)	15		$	50,130		$	45,635		10
Fully taxable-equivalent adjustments (a)	880			723			734			728			695			22		27		3,065			2,505			22
Pre-provision profit - managed	$	12,872		$	13,642		$	13,225		$	13,456		$	11,084		(6	)	16		$	53,195		$	48,140		11

INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported	$	10,565		$	11,405		$	11,342		$	11,233		$	8,841		(7	)	20		$	44,545		$	40,764		9
Fully taxable-equivalent adjustments (a)	880			723			734			728			695			22		27		3,065			2,505			22
Income before income tax expense - managed	$	11,445		$	12,128		$	12,076		$	11,961		$	9,536		(6	)	20		$	47,610		$	43,269		10

INCOME TAX EXPENSE
Income tax expense - reported	$	2,045		$	2,325		$	1,690		$	2,054		$	1,775		(12	)	15		$	8,114		$	8,290		(2	)
Fully taxable-equivalent adjustments (a)	880			723			734			728			695			22		27		3,065			2,505			22
Income tax expense - managed	$	2,925		$	3,048		$	2,424		$	2,782		$	2,470		(4	)	18		$	11,179		$	10,795		4

OVERHEAD RATIO
Overhead ratio - reported	58		%	56		%	57		%	56		%	60		%					57		%	58		%
Overhead ratio - managed	56			55			55			55			59							55			57

(a) Predominantly recognized in CIB, CB and Corporate.

Page 7



JPMORGAN CHASE & CO.
SEGMENT RESULTS - MANAGED BASIS
(in millions)


	QUARTERLY TRENDS																	FULL YEAR
														4Q19 Change										2019 Change
	4Q19			3Q19		2Q19			1Q19		4Q18			3Q19		4Q18		2019			2018			2018
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking	$	14,040		$	14,259	$	13,833		$	13,751	$	13,695		(2	)%	3	%	$	55,883		$	52,079		7	%
Corporate & Investment Bank	9,471			9,338		9,641			9,848		7,237			1		31		38,298			36,448			5
Commercial Banking	2,228			2,207		2,211			2,338		2,306			1		(3	)	8,984			9,059			(1	)
Asset & Wealth Management	3,700			3,568		3,559			3,489		3,439			4		8		14,316			14,076			2
Corporate	(228		)	692		322			425		127			NM		NM		1,211			(128		)	NM
TOTAL NET REVENUE	$	29,211		$	30,064	$	29,566		$	29,851	$	26,804		(3	)	9		$	118,692		$	111,534		6

TOTAL NONINTEREST EXPENSE
Consumer & Community Banking	$	7,233		$	7,290	$	7,162		$	7,211	$	7,065		(1	)	2		$	28,896		$	27,835		4
Corporate & Investment Bank	5,231			5,348		5,487			5,453		4,681			(2	)	12		21,519			20,918			3
Commercial Banking	882			881		864			873		845			—		4		3,500			3,386			3
Asset & Wealth Management	2,650			2,622		2,596			2,647		2,621			1		1		10,515			10,353			2
Corporate	343			281		232			211		508			22		(32	)	1,067			902			18
TOTAL NONINTEREST EXPENSE	$	16,339		$	16,422	$	16,341		$	16,395	$	15,720		(1	)	4		$	65,497		$	63,394		3

PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking	$	6,807		$	6,969	$	6,671		$	6,540	$	6,630		(2	)	3		$	26,987		$	24,244		11
Corporate & Investment Bank	4,240			3,990		4,154			4,395		2,556			6		66		16,779			15,530			8
Commercial Banking	1,346			1,326		1,347			1,465		1,461			2		(8	)	5,484			5,673			(3	)
Asset & Wealth Management	1,050			946		963			842		818			11		28		3,801			3,723			2
Corporate	(571		)	411		90			214		(381		)	NM		(50	)	144			(1,030		)	NM
PRE-PROVISION PROFIT	$	12,872		$	13,642	$	13,225		$	13,456	$	11,084		(6	)	16		$	53,195		$	48,140		11

PROVISION FOR CREDIT LOSSES
Consumer & Community Banking	$	1,207		$	1,311	$	1,120		$	1,314	$	1,348		(8	)	(10	)	$	4,952		$	4,753		4
Corporate & Investment Bank	98			92		—			87		82			7		20		277			(60		)	NM
Commercial Banking	110			67		29			90		106			64		4		296			129			129
Asset & Wealth Management	13			44		2			2		13			(70	)	—		61			53			15
Corporate	(1		)	—		(2		)	2		(1		)	NM		—		(1		)	(4		)	75
PROVISION FOR CREDIT LOSSES	$	1,427		$	1,514	$	1,149		$	1,495	$	1,548		(6	)	(8	)	$	5,585		$	4,871		15

NET INCOME/(LOSS)
Consumer & Community Banking	$	4,231		$	4,273	$	4,174		$	3,963	$	4,028		(1	)	5		$	16,641		$	14,852		12
Corporate & Investment Bank	2,927			2,809		2,935			3,251		1,975			4		48		11,922			11,773			1
Commercial Banking	938			937		996			1,053		1,036			—		(9	)	3,924			4,237			(7	)
Asset & Wealth Management	785			668		719			661		604			18		30		2,833			2,853			(1	)
Corporate	(361		)	393		828			251		(577		)	NM		37		1,111			(1,241		)	NM
TOTAL NET INCOME	$	8,520		$	9,080	$	9,652		$	9,179	$	7,066		(6	)	21		$	36,431		$	32,474		12

Page 8



JPMORGAN CHASE & CO.
CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS
(in millions, except ratio data)

																	Dec 31, 2019
																	Change				FULL YEAR
	Dec 31,				Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,		Dec 31,						2019 Change
	2019				2019			2019			2019			2018			2019		2018		2019		2018		2018
CAPITAL (a)
Risk-based capital metrics
Standardized
CET1 capital	$	187,692		(e)	$	188,151		$	189,169		$	186,116		$	183,474		—	%	2	%
Tier 1 capital	214,362			(e)	214,831			215,808			212,644			209,093			—		3
Total capital	242,485			(e)	243,500			244,490			241,483			237,511			—		2
Risk-weighted assets	1,517,601			(e)	1,527,762			1,545,101			1,542,903			1,528,916			(1	)	(1	)
CET1 capital ratio	12.4		%	(e)	12.3		%	12.2		%	12.1		%	12.0		%
Tier 1 capital ratio	14.1			(e)	14.1			14.0			13.8			13.7
Total capital ratio	16.0			(e)	15.9			15.8			15.7			15.5

Advanced
CET1 capital	$	187,692		(e)	$	188,151		$	189,169		$	186,116		$	183,474		—		2
Tier 1 capital	214,362			(e)	214,831			215,808			212,644			209,093			—		3
Total capital	232,481			(e)	233,203			234,507			231,454			227,435			—		2
Risk-weighted assets	1,400,148			(e)	1,435,693			1,449,211			1,432,526			1,421,205			(2	)	(1	)
CET1 capital ratio	13.4		%	(e)	13.1		%	13.1		%	13.0		%	12.9		%
Tier 1 capital ratio	15.3			(e)	15.0			14.9			14.8			14.7
Total capital ratio	16.6			(e)	16.2			16.2			16.2			16.0

Leverage-based capital metrics
Adjusted average assets (b)	$	2,730,170		(e)	$	2,717,852		$	2,692,225		$	2,637,741		$	2,589,887		—		5
Tier 1 leverage ratio	7.9		%	(e)	7.9		%	8.0		%	8.1		%	8.1		%

Total leverage exposure	3,423,235			(e)	3,404,535			3,367,154			3,309,501			3,269,988			1		5
SLR	6.3		%	(e)	6.3		%	6.4		%	6.4		%	6.4		%

TANGIBLE COMMON EQUITY (period-end) (c)
Common stockholders’ equity	$	234,337			$	235,985		$	236,222		$	232,844		$	230,447		(1	)	2
Less: Goodwill	47,823				47,818			47,477			47,474			47,471			—		1
Less: Other intangible assets	819				841			732			737			748			(3	)	9
Add: Deferred tax liabilities (d)	2,381				2,371			2,316			2,293			2,280			—		4
Total tangible common equity	$	188,076			$	189,697		$	190,329		$	186,926		$	184,508		(1	)	2

TANGIBLE COMMON EQUITY (average) (c)
Common stockholders’ equity	$	232,878			$	235,613		$	233,026		$	230,051		$	229,896		(1	)	1		$	232,907	$	229,222	2	%
Less: Goodwill	47,819				47,707			47,472			47,475			47,478			—		1		47,620		47,491		—
Less: Other intangible assets	831				842			741			744			765			(1	)	9		789		807		(2	)
Add: Deferred tax liabilities (d)	2,375				2,344			2,304			2,287			2,260			1		5		2,328		2,231		4
Total tangible common equity	$	186,603			$	189,408		$	187,117		$	184,119		$	183,913		(1	)	1		$	186,826	$	183,155	2

INTANGIBLE ASSETS (period-end)
Goodwill	$	47,823			$	47,818		$	47,477		$	47,474		$	47,471		—		1
Mortgage servicing rights	4,699				4,419			5,093			5,957			6,130			6		(23	)
Other intangible assets	819				841			732			737			748			(3	)	9
Total intangible assets	$	53,341			$	53,078		$	53,302		$	54,168		$	54,349		—		(2	)

(a)


(b)	Adjusted average assets, for purposes of calculating leverage ratios, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill and other intangible assets.


(c)	Refer to page 28 for further discussion of TCE.


(d)	Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable 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																			FULL YEAR
																4Q19 Change										2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		2019			2018			2018
EARNINGS PER SHARE
Basic earnings per share
Net income	$	8,520		$	9,080		$	9,652		$	9,179		$	7,066		(6	)%	21	%	$	36,431		$	32,474		12	%
Less: Preferred stock dividends	386			423			404			374			384			(9	)	1		1,587			1,551			2
Net income applicable to common equity	8,134			8,657			9,248			8,805			6,682			(6	)	22		34,844			30,923			13
Less: Dividends and undistributed earnings allocated to
participating securities	44			51			56			52			41			(14	)	7		202			214			(6	)
Net income applicable to common stockholders	$	8,090		$	8,606		$	9,192		$	8,753		$	6,641		(6	)	22		$	34,642		$	30,709		13

Total weighted-average basic shares outstanding	3,140.7			3,198.5			3,250.6			3,298.0			3,335.8			(2	)	(6	)	3,221.5			3,396.4			(5	)
Net income per share	$	2.58		$	2.69		$	2.83		$	2.65		$	1.99		(4	)	30		$	10.75		$	9.04		19

Diluted earnings per share
Net income applicable to common stockholders	$	8,090		$	8,606		$	9,192		$	8,753		$	6,641		(6	)	22		$	34,642		$	30,709		13
Total weighted-average basic shares outstanding	3,140.7			3,198.5			3,250.6			3,298.0			3,335.8			(2	)	(6	)	3,221.5			3,396.4			(5	)
Add: Employee stock options, stock appreciation rights (“SARs”), warrants and unvested performance share units (“PSUs”)	7.8			8.7			9.1			10.2			11.5			(10	)	(32	)	8.9			17.6			(49	)
Total weighted-average diluted shares outstanding	3,148.5			3,207.2			3,259.7			3,308.2			3,347.3			(2	)	(6	)	3,230.4			3,414.0			(5	)
Net income per share	$	2.57		$	2.68		$	2.82		$	2.65		$	1.98		(4	)	30		$	10.72		$	9.00		19

COMMON DIVIDENDS
Cash dividends declared per share	$	0.90		$	0.90		$	0.80		$	0.80		$	0.80		—		13		$	3.40		$	2.72		25
Dividend payout ratio	35		%	33		%	28		%	30		%	40		%					31		%	30		%

COMMON EQUITY REPURCHASE PROGRAM (a)
Total shares of common stock repurchased	54.0			62.0			47.5			49.5			55.5			(13	)	(3	)	213.0			181.5			17
Average price paid per share of common stock	$	127.24		$	112.07		$	109.83		$	102.78		$	106.80		14		19		$	113.26		$	110.09		3
Aggregate repurchases of common equity	6,871			6,949			5,210			5,091			5,928			(1	)	16		24,121			19,983			21

EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans	1.5			1.0			1.0			17.7			1.2			50		25		21.2			22.6			(6	)
Net impact of employee issuances on stockholders’ equity (b)	$	132		$	232		$	258		$	348		$	240		(43	)	(45	)	$	970		$	687		41


(a)	On June 27, 2019, the Firm announced that it is authorized to repurchase up to $29.4 billion of common equity between July 1, 2019 and June 30, 2020, under a new equity repurchase program.


(b)	The net impact of employee issuances on stockholders’ equity is driven by the cost of equity compensation awards that is recognized over the applicable vesting periods. The cost is partially offset by tax impacts related to the distribution of shares and the exercise of employee stock options and SARs.

Page 10



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)


	QUARTERLY TRENDS																					FULL YEAR
																		4Q19 Change										2019 Change
	4Q19			3Q19			2Q19				1Q19			4Q18				3Q19		4Q18		2019			2018			2018
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	1,032		$	1,026		$	928			$	873		$	956			1	%	8	%	$	3,859		$	3,624		6	%
Asset management, administration and commissions	609			608			664				618			610				—		—		2,499			2,402			4
Mortgage fees and related income (a)	474			886			279				396			203				(47	)	133		2,035			1,252			63
Card income	1,246			1,176			1,257				1,168			1,255				6		(1	)	4,847			4,554			6
All other income	1,413			1,399			1,312				1,278			1,173				1		20		5,402			4,428			22
Noninterest revenue	4,774			5,095			4,440				4,333			4,197				(6	)	14		18,642			16,260			15
Net interest income (a)	9,266			9,164			9,393				9,418			9,498				1		(2	)	37,241			35,819			4
TOTAL NET REVENUE	14,040			14,259			13,833				13,751			13,695				(2	)	3		55,883			52,079			7

Provision for credit losses	1,207			1,311			1,120				1,314			1,348				(8	)	(10	)	4,952			4,753			4

NONINTEREST EXPENSE
Compensation expense	2,637			2,683			2,672				2,708			2,618				(2	)	1		10,700			10,534			2
Noncompensation expense (b)	4,596			4,607			4,490				4,503			4,447				—		3		18,196			17,301			5
TOTAL NONINTEREST EXPENSE	7,233			7,290			7,162				7,211			7,065				(1	)	2		28,896			27,835			4

Income before income tax expense	5,600			5,658			5,551				5,226			5,282				(1	)	6		22,035			19,491			13
Income tax expense	1,369			1,385			1,377				1,263			1,254				(1	)	9		5,394			4,639			16
NET INCOME	$	4,231		$	4,273		$	4,174			$	3,963		$	4,028			(1	)	5		$	16,641		$	14,852		12

REVENUE BY LINE OF BUSINESS
Consumer & Business Banking	$	6,442		$	6,688		$	6,797			$	6,568		$	6,567			(4	)	(2	)	$	26,495		$	24,805		7
Home Lending (a)	1,250			1,465			1,118				1,346			1,322				(15	)	(5	)	5,179			5,484			(6	)
Card, Merchant Services & Auto	6,348			6,106			5,918				5,837			5,806				4		9		24,209			21,790			11

MORTGAGE FEES AND RELATED INCOME DETAILS:
Net production revenue (a)	327			738			353				200			(28		)		(56	)	NM		1,618			268			NM
Net mortgage servicing revenue (c)	147			148			(74		)		196			231				(1	)	(36	)	417			984			(58	)
Mortgage fees and related income	$	474		$	886		$	279			$	396		$	203			(47	)	133		$	2,035		$	1,252		63

FINANCIAL RATIOS
ROE	31		%	32		%	31			%	30		%	30			%					31		%	28		%
Overhead ratio	52			51			52				52			52								52			53

(a)

Net production revenue in the third quarter of 2019 included approximately $350 million of gains on the sale of certain mortgage loans that were predominantly offset by a charge in net interest income for the unwind of the related internal funding from Treasury and Chief Investment Office (“CIO”) associated with these loans. The charge reflects the net present value of that funding and is recognized as interest income in Treasury and CIO. Refer to footnote (a) in Corporate on page 23 and Funds Transfer Pricing (“FTP”) on page 60 of the Firm’s 2018 Form 10-K for further information.


(b)	Included depreciation expense on leased assets of $1.1 billion, $1.0 billion, $959 million, $969 million and $927 million for the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively, and $4.1 billion and $3.4 billion for the full year 2019 and 2018, respectively.


(c)	Included MSR risk management results of $35 million, $53 million, $(244) million, $(9) million and $(17) million for the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively, and $(165) million and $(111) million for the full year 2019 and 2018, respectively.

Page 11



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount data)

	QUARTERLY TRENDS														FULL YEAR
											4Q19 Change								2019 Change
	4Q19		3Q19		2Q19		1Q19		4Q18		3Q19		4Q18		2019		2018		2018
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	539,090	$	532,487	$	550,690	$	552,486	$	557,441	1	%	(3	)%	$	539,090	$	557,441	(3	)%

Loans:
Consumer & Business Banking	27,199		26,699		26,616		26,492		26,612		2		2		27,199		26,612		2
Home equity	30,163		31,552		32,958		34,417		36,013		(4	)	(16	)	30,163		36,013		(16	)
Residential mortgage	169,636		171,787		186,575		196,182		203,859		(1	)	(17	)	169,636		203,859		(17	)
Home Lending	199,799		203,339		219,533		230,599		239,872		(2	)	(17	)	199,799		239,872		(17	)
Card	168,924		159,571		157,576		150,527		156,632		6		8		168,924		156,632		8
Auto	61,522		61,410		62,073		62,786		63,573		—		(3	)	61,522		63,573		(3	)
Total loans	457,444		451,019		465,798		470,404		486,689		1		(6	)	457,444		486,689		(6	)
Core loans	414,107		405,662		418,177		420,417		434,466		2		(5	)	414,107		434,466		(5	)

Deposits	718,416		701,170		695,100		702,587		678,854		2		6		718,416		678,854		6
Equity	52,000		52,000		52,000		52,000		51,000		—		2		52,000		51,000		2

SELECTED BALANCE SHEET DATA (average)
Total assets	$	534,350	$	538,500	$	542,337	$	553,832	$	554,600	(1	)	(4	)	$	542,191	$	547,368	(1	)

Loans:
Consumer & Business Banking	26,820		26,550		26,570		26,488		26,474		1		1		26,608		26,197		2
Home equity	30,842		32,215		33,676		35,224		36,703		(4	)	(16	)	32,975		39,133		(16	)
Residential mortgage	170,757		181,157		191,009		203,725		205,471		(6	)	(17	)	186,557		202,624		(8	)
Home Lending	201,599		213,372		224,685		238,949		242,174		(6	)	(17	)	219,532		241,757		(9	)
Card	162,112		158,168		153,746		151,134		150,594		2		8		156,325		145,652		7
Auto	61,100		61,371		62,236		62,763		63,426		—		(4	)	61,862		64,675		(4	)
Total loans	451,631		459,461		467,237		479,334		482,668		(2	)	(6	)	464,327		478,281		(3	)
Core loans	407,325		413,036		418,470		428,215		429,167		(1	)	(5	)	416,694		419,066		(1	)

Deposits	708,015		693,980		690,892		681,013		673,782		2		5		693,550		670,388		3
Equity	52,000		52,000		52,000		52,000		51,000		—		2		52,000		51,000		2

Headcount	127,137		127,687		127,732		128,419		129,518		—		(2	)	127,137		129,518		(2	)

Page 12



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)	QUARTERLY TRENDS																								FULL YEAR
																					4Q19 Change												2019 Change
	4Q19				3Q19				2Q19				1Q19				4Q18				3Q19		4Q18		2019				2018				2018
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a)(b)	$	3,018			$	3,099			$	3,142			$	3,265			$	3,339			(3	)%	(10	)%	$	3,018			$	3,339			(10	)%
Net charge-offs/(recoveries) (c)
Consumer & Business Banking	92				79				66				59				65				16		42		296				236				25
Home equity	(7		)		(25		)		(16		)		—				(4		)		72		(75	)	(48		)		(7		)		NM
Residential mortgage	(16		)		(17		)		(12		)		(5		)		(35		)		6		54		(50		)		(287		)		83
Home Lending	(23		)		(42		)		(28		)		(5		)		(39		)		45		41		(98		)		(294		)		67
Card	1,231				1,175				1,240				1,202				1,111				5		11		4,848				4,518				7
Auto	57				49				42				58				61				16		(7	)	206				243				(15	)
Total net charge-offs/(recoveries)	$	1,357			$	1,261			$	1,320			$	1,314			$	1,198			8		13		$	5,252			$	4,703			12
Net charge-off/(recovery) rate (c)
Consumer & Business Banking	1.36			%	1.18			%	1.00			%	0.90			%	0.97			%					1.11			%	0.90			%
Home equity (d)	(0.12		)		(0.41		)		(0.25		)		—				(0.06		)						(0.19		)		(0.02		)
Residential mortgage (d)	(0.04		)		(0.04		)		(0.03		)		(0.01		)		(0.07		)						(0.03		)		(0.16		)
Home Lending (d)	(0.05		)		(0.09		)		(0.06		)		(0.01		)		(0.07		)						(0.05		)		(0.14		)
Card	3.01				2.95				3.24				3.23				2.93								3.10				3.10
Auto	0.37				0.32				0.27				0.37				0.38								0.33				0.38
Total net charge-off/(recovery) rate (d)	1.26				1.16				1.19				1.17				1.04								1.20				1.04

30+ day delinquency rate
Home Lending (e)(f)	0.76			%	0.78			%	0.71			%	0.77			%	0.77			%					0.76			%	0.77			%
Card	1.87				1.84				1.71				1.85				1.83								1.87				1.83
Auto	0.94				0.88				0.82				0.63				0.93								0.94				0.93

90+ day delinquency rate - Card	0.95				0.90				0.87				0.97				0.92								0.95				0.92

Allowance for loan losses
Consumer & Business Banking	$	746			$	746			$	796			$	796			$	796			—		(6	)	$	746			$	796			(6	)
Home Lending, excluding PCI loans	903				903				1,003				1,003				1,003				—		(10	)	903				1,003				(10	)
Home Lending - PCI loans (c)	987				1,256				1,299				1,738				1,788				(21	)	(45	)	987				1,788				(45	)
Card	5,683				5,583				5,383				5,183				5,184				2		10		5,683				5,184				10
Auto	465				465				465				465				464				—		—		465				464				—
Total allowance for loan losses (c)	$	8,784			$	8,953			$	8,946			$	9,185			$	9,235			(2	)	(5	)	$	8,784			$	9,235			(5	)

Note : CCB provides several non-GAAP financial measures which exclude the impact of PCI loans. Refer to page 28 for further discussion of these measures.


(a)	Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as each of the pools is performing.


(b)	At December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $961 million, $1.6 billion, $1.8 billion, $2.2 billion and $2.6 billion, respectively. These amounts have been excluded based upon the government guarantee.

(c)

Net charge-offs/(recoveries) and the net charge-off/(recovery) rates for the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, excluded write-offs in the PCI portfolio of $19 million, $43 million, $39 million, $50 million and $36 million, respectively, and for the full year 2019 and 2018 excluded $151 million and $187 million, respectively. These write-offs decreased the allowance for loan losses for PCI loans. Refer to Summary of Changes in the Allowances on page 26 for further information on PCI write-offs.

(d)

Excludes the impact of PCI loans. For the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of (0.09)%, (0.31)%, (0.19)%, –% and (0.04)%, respectively; (2) residential mortgage of (0.04)%, (0.04)%, (0.03)%, (0.01)% and (0.07)%, respectively; (3) Home Lending of (0.05)%, (0.08)%, (0.05)%, (0.01)% and (0.06)%, respectively; and (4) total CCB of 1.20%, 1.10%, 1.14%, 1.11% and 0.99%, respectively. For the full year 2019 and 2018, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of (0.15)% and (0.02)%, respectively; (2) residential mortgage of (0.03)% and (0.14)%, respectively; (3) Home Lending of (0.05)% and (0.12)%, respectively; and (4) total CCB of 1.14% and 0.98%, respectively.


(e)	At December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, excluded mortgage loans insured by U.S. government agencies of $1.7 billion, $2.7 billion, $2.9 billion, $3.2 billion and $4.1 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.


(f)	Excludes PCI loans. The 30+ day delinquency rate for PCI loans was 8.44%, 8.56%, 8.71%, 8.90% and 9.16% at December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, respectively.

Page 13



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)

	QUARTERLY TRENDS																								FULL YEAR
																					4Q19 Change												2019 Change
	4Q19				3Q19				2Q19				1Q19				4Q18				3Q19		4Q18		2019				2018				2018
BUSINESS METRICS
Number of:
Branches	4,976				4,949				4,970				5,028				5,036				1	%	(1	)%	4,976				5,036				(1	)%
Active digital customers (in thousands) (a)	52,421				51,843				51,032				50,651				49,254				1		6		52,421				49,254				6
Active mobile customers (in thousands) (b)	37,297				36,510				35,392				34,371				33,260				2		12		37,297				33,260				12

Debit and credit card sales volume (in billions)	$	295.6			$	282.2			$	281.5			$	255.1			$	270.5			5		9		$	1,114.4			$	1,016.9			10

Consumer & Business Banking
Average deposits	$	691,696			$	678,281			$	676,663			$	668,526			$	660,279			2		5		$	678,854			$	656,537			3
Deposit margin	2.28			%	2.47			%	2.60			%	2.62			%	2.55			%					2.49			%	2.38			%
Business banking origination volume	$	1,827			$	1,550			$	1,741			$	1,480			$	1,477			18		24		$	6,598			$	6,683			(1	)
Client investment assets	358,036				337,915				328,141				312,310				282,463				6		27		358,036				282,463				27

Home Lending (in billions)
Mortgage origination volume by channel
Retail	$	16.4			$	14.2			$	12.5			$	7.9			$	9.0			15		82		$	51.0			$	38.3			33
Correspondent	16.9				18.2				12.0				7.1				8.2				(7	)	106		54.2				41.1				32
Total mortgage origination volume (c)	$	33.3			$	32.4			$	24.5			$	15.0			$	17.2			3		94		$	105.2			$	79.4			32
Total loans serviced (period-end)	$	761.4			$	774.8			$	780.1			$	791.5			$	789.8			(2	)	(4	)	$	761.4			$	789.8			(4	)
Third-party mortgage loans serviced (period-end)	520.8				535.8				526.6				529.6				519.6				(3	)	—		520.8				519.6				—
MSR carrying value (period-end)	4.7				4.4				5.1				6.0				6.1				7		(23	)	4.7				6.1				(23	)
Ratio of MSR carrying value (period-end) to third-party
mortgage loans serviced (period-end)	0.90			%	0.82			%	0.97			%	1.13			%	1.17			%					0.90			%	1.17			%
MSR revenue multiple (d)	2.73		x		2.41		x		2.69		x		3.32		x		3.34		x						2.65		x		3.34		x

Card, excluding Commercial Card
Credit card sales volume (in billions)	$	204.2			$	193.6			$	192.5			$	172.5			$	185.3			5		10		$	762.8			$	692.4			10

Card Services
Net revenue rate	11.59			%	11.40			%	11.48			%	11.63			%	11.57			%					11.52			%	11.27			%

Merchant Services
Merchant processing volume (in billions)	$	402.9			$	380.5			$	371.6			$	356.5			$	375.2			6		7		$	1,511.5			$	1,366.1			11

Auto
Loan and lease origination volume (in billions)	$	8.5			$	9.1			$	8.5			$	7.9			$	7.0			(7	)	21		$	34.0			$	31.8			7
Average auto operating lease assets	22,427				21,765				21,314				20,831				20,041				3		12		21,589				18,809				15


(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)	Firmwide mortgage origination volume was $37.4 billion, $35.8 billion, $26.3 billion, $16.4 billion and $18.7 billion for the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, respectively, and $115.9 billion and $86.9 billion for the full year 2019 and 2018, respectively.


(d)	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).

Page 14



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
	QUARTERLY TRENDS																			FULL YEAR
																4Q19 Change											2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		2019			2018				2018
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,904		$	1,981		$	1,846		$	1,844		$	1,815		(4	)%	5	%	$	7,575		$	7,473			1	%
Principal transactions	2,930			3,418			3,885			4,163			1,485			(14	)	97		14,396			12,271				17
Lending- and deposit-related fees	423			360			374			361			361			18		17		1,518			1,497				1
Asset management, administration and commissions	1,098			1,197			1,149			1,101			1,072			(8	)	2		4,545			4,488				1
All other income	459			226			229			194			281			103		63		1,108			1,239			(c)	(11	)
Noninterest revenue	6,814			7,182			7,483			7,663			5,014			(5	)	36		29,142			26,968				8
Net interest income	2,657			2,156			2,158			2,185			2,223			23		20		9,156			9,480				(3	)
TOTAL NET REVENUE (a)	9,471			9,338			9,641			9,848			7,237			1		31		38,298			36,448				5

Provision for credit losses	98			92			—			87			82			7		20		277			(60		)		NM

NONINTEREST EXPENSE
Compensation expense	2,237			2,734			2,698			2,949			2,057			(18	)	9		10,618			10,215				4
Noncompensation expense	2,994			2,614			2,789			2,504			2,624			15		14		10,901			10,703				2
TOTAL NONINTEREST EXPENSE	5,231			5,348			5,487			5,453			4,681			(2	)	12		21,519			20,918				3

Income before income tax expense	4,142			3,898			4,154			4,308			2,474			6		67		16,502			15,590				6
Income tax expense	1,215			1,089			1,219			1,057			499			12		143		4,580			3,817				20
NET INCOME	$	2,927		$	2,809		$	2,935		$	3,251		$	1,975		4		48		$	11,922		$	11,773			1

FINANCIAL RATIOS
ROE	14		%	13		%	14		%	16		%	10		%					14		%	16		%
Overhead ratio	55			57			57			55			65							56			57
Compensation expense as percentage of total net revenue	24			29			28			30			28							28			28

REVENUE BY BUSINESS
Investment Banking	$	1,823		$	1,871		$	1,776		$	1,745		$	1,720		(3	)	6		$	7,215		$	6,987			3
Treasury Services	1,182			1,101			1,135			1,147			1,217			7		(3	)	4,565			4,697				(3	)
Lending	325			329			337			340			344			(1	)	(6	)	1,331			1,298				3
Total Banking	3,330			3,301			3,248			3,232			3,281			1		1		13,111			12,982				1
Fixed Income Markets	3,446			3,557			3,690			3,725			1,856			(3	)	86		14,418			12,706				13
Equity Markets	1,508			1,517			1,728			1,741			1,317			(1	)	15		6,494			6,888				(6	)
Securities Services	1,061			1,034			1,045			1,014			1,026			3		3		4,154			4,245				(2	)
Credit Adjustments & Other (b)	126			(71		)	(70		)	136			(243		)	NM		NM		121			(373		)		NM
Total Markets & Securities Services	6,141			6,037			6,393			6,616			3,956			2		55		25,187			23,466			(c)	7
TOTAL NET REVENUE	$	9,471		$	9,338		$	9,641		$	9,848		$	7,237		1		31		$	38,298		$	36,448			5

(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 $646 million, $527 million, $547 million, $539 million and $465 million for the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively and $2.3 billion and $1.7 billion for the full year 2019 and 2018, respectively.


(b)	Consists primarily of credit valuation adjustments (“CVA”) managed centrally within CIB and funding valuation adjustments (“FVA”) on derivatives. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.


(c)	Included $505 million of fair value gains related to the adoption of the recognition and measurement accounting guidance in the first quarter of 2018 for certain equity investments previously held at cost.

Page 15



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
	QUARTERLY TRENDS																			FULL YEAR
																4Q19 Change										2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		2019			2018			2018
SELECTED BALANCE SHEET DATA (period-end)
Assets	$	908,153		$	1,023,132		$	962,498		$	1,006,111		$	903,051		(11	)%	1	%	$	908,153		$	903,051		1	%
Loans:
Loans retained (a)	121,733			118,290			123,074			127,086			129,389			3		(6	)	121,733			129,389			(6	)
Loans held-for-sale and loans at fair value	10,112			8,324			6,838			7,783			13,050			21		(23	)	10,112			13,050			(23	)
Total loans	131,845			126,614			129,912			134,869			142,439			4		(7	)	131,845			142,439			(7	)
Core loans	131,672			126,445			129,747			134,692			142,122			4		(7	)	131,672			142,122			(7	)

Equity	80,000			80,000			80,000			80,000			70,000			—		14		80,000			70,000			14

SELECTED BALANCE SHEET DATA (average)
Assets	$	985,665		$	1,003,395		$	992,792		$	959,842		$	918,643		(2	)	7		985,544			$	922,758		7
Trading assets - debt and equity instruments	398,604			415,450			421,775			381,312			334,033			(4	)	19		404,363			349,169			16
Trading assets - derivative receivables	45,153			48,266			48,815			50,609			59,393			(6	)	(24	)	48,196			60,552			(20	)
Loans:
Loans retained (a)	119,412			119,007			124,194			126,990			118,857			—		—		122,371			114,417			7
Loans held-for-sale and loans at fair value	9,708			8,344			7,763			8,615			6,852			16		42		8,609			6,412			34
Total loans	129,120			127,351			131,957			135,605			125,709			1		3		130,980			120,829			8
Core loans	128,953			127,187			131,792			135,420			125,505			1		3		130,810			120,560			9

Equity	80,000			80,000			80,000			80,000			70,000			—		14		80,000			70,000			14

Headcount	55,991			55,873			54,959			54,697			54,480			—		3		55,991			54,480			3

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	43		$	38		$	72		$	30		$	(1	)	13		NM		$	183		$	93		97
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (b)	308			712			569			812			443			(57	)	(30	)	308			443			(30	)
Nonaccrual loans held-for-sale and loans at fair value	95			262			370			313			220			(64	)	(57	)	95			220			(57	)
Total nonaccrual loans	403			974			939			1,125			663			(59	)	(39	)	403			663			(39	)

Derivative receivables	30			26			39			44			60			15		(50	)	30			60			(50	)
Assets acquired in loan satisfactions	70			75			58			58			57			(7	)	23		70			57			23
Total nonperforming assets	503			1,075			1,036			1,227			780			(53	)	(36	)	503			780			(36	)
Allowance for credit losses:
Allowance for loan losses	1,202			1,171			1,131			1,252			1,199			3		—		1,202			1,199			—
Allowance for lending-related commitments	848			824			807			758			754			3		12		848			754			12
Total allowance for credit losses	2,050			1,995			1,938			2,010			1,953			3		5		2,050			1,953			5

Net charge-off/(recovery) rate (a)(c)	0.14		%	0.13		%	0.23		%	0.10		%	—		%					0.15		%	0.08		%
Allowance for loan losses to period-end loans retained (a)	0.99			0.99			0.92			0.99			0.93							0.99			0.93
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (d)	1.31			1.33			1.27			1.34			1.24							1.31			1.24
Allowance for loan losses to nonaccrual loans retained (a)(b)	390			164			199			154			271							390			271
Nonaccrual loans to total period-end loans	0.31			0.77			0.72			0.83			0.47							0.31			0.47


(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)	Allowance for loan losses of $110 million, $207 million, $147 million, $252 million and $174 million were held against nonaccrual loans at December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively.


(c)	Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.


(d)	Management uses allowance for loan losses to period-end loans retained, excluding trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of CIB’s allowance coverage ratio.

Page 16



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
	QUARTERLY TRENDS																			FULL YEAR
																4Q19 Change								2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		2019		2018		2018
BUSINESS METRICS
Advisory	$	702		$	506		$	525		$	644		$	727		39	%	(3	)%	$	2,377	$	2,509	(5	)%
Equity underwriting	382			514			505			265			348			(26	)	10		1,666		1,684		(1	)
Debt underwriting	820			961			816			935			740			(15	)	11		3,532		3,280		8
Total investment banking fees	$	1,904		$	1,981		$	1,846		$	1,844		$	1,815		(4	)	5		$	7,575	$	7,473	1

Assets under custody (“AUC”) (period-end) (in billions)	$	26,831		$	25,695		$	25,450		$	24,716		$	23,217		4		16		$	26,831	$	23,217	16

Client deposits and other third-party liabilities (average) (a)	484,975			471,291			458,237			444,055			445,642			3		9		464,770		434,422		7

95% Confidence Level - Total CIB VaR (average)
CIB trading VaR by risk type: (b)
Fixed income	$	39		$	37		$	39		$	44		$	37		5		5
Foreign exchange	5			6			7			9			6			(17	)	(17	)
Equities	18			22			25			16			20			(18	)	(10	)
Commodities and other	7			8			9			10			11			(13	)	(36	)
Diversification benefit to CIB trading VaR (c)	(32		)	(34		)	(36		)	(32		)	(25		)	6		(28	)
CIB trading VaR (b)	37			39			44			47			49			(5	)	(24	)
Credit portfolio VaR (d)	5			5			5			5			4			—		25
Diversification benefit to CIB VaR (c)	(5		)	(6		)	(5		)	(4		)	(4		)	17		(25	)
CIB VaR	$	37		$	38		$	44		$	48		$	49		(3	)	(24	)


(a)	Client deposits and other third-party liabilities pertain to the Treasury Services and Securities Services businesses.


(b)	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 126–128 of the Firm’s 2018 Form 10-K, and pages 70-72 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 for further information.


(c)	Average portfolio VaR was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated.


(d)	Credit portfolio VaR includes the derivative CVA, hedges of the CVA and hedges of the retained loan portfolio, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value.

Page 17



JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)


	QUARTERLY TRENDS																			FULL YEAR
																4Q19 Change										2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		2019			2018			2018
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	249		$	221		$	216		$	227		$	204		13	%	22	%	$	913		$	870		5	%
All other income (a)	375			378			333			431			381			(1	)	(2	)	1,517			1,473			3
Noninterest revenue	624			599			549			658			585			4		7		2,430			2,343			4
Net interest income	1,604			1,608			1,662			1,680			1,721			—		(7	)	6,554			6,716			(2	)
TOTAL NET REVENUE (b)	2,228			2,207			2,211			2,338			2,306			1		(3	)	8,984			9,059			(1	)

Provision for credit losses	110			67			29			90			106			64		4		296			129			129

NONINTEREST EXPENSE
Compensation expense	444			454			438			449			426			(2	)	4		1,785			1,694			5
Noncompensation expense	438			427			426			424			419			3		5		1,715			1,692			1
TOTAL NONINTEREST EXPENSE	882			881			864			873			845			—		4		3,500			3,386			3

Income before income tax expense	1,236			1,259			1,318			1,375			1,355			(2	)	(9	)	5,188			5,544			(6	)
Income tax expense	298			322			322			322			319			(7	)	(7	)	1,264			1,307			(3	)
NET INCOME	$	938		$	937		$	996		$	1,053		$	1,036		—		(9	)	$	3,924		$	4,237		(7	)

Revenue by product
Lending	$	1,027		$	1,006		$	1,012		$	1,012		$	997		2		3		$	4,057		$	4,049		—
Treasury services	952			950			989			1,029			1,055			—		(10	)	3,920			4,074			(4	)
Investment banking (c)	211			226			193			289			208			(7	)	1		919			852			8
Other	38			25			17			8			46			52		(17	)	88			84			5
Total Commercial Banking net revenue (b)	$	2,228		$	2,207		$	2,211		$	2,338		$	2,306		1		(3	)	$	8,984		$	9,059		(1	)

Investment banking revenue, gross (d)	$	634		$	700		$	592		$	818		$	602		(9	)	5		$	2,744		$	2,491		10

Revenue by client segment
Middle Market Banking	$	909		$	903		$	939		$	951		$	959		1		(5	)	$	3,702		$	3,708		—
Corporate Client Banking	730			739			709			816			741			(1	)	(1	)	2,994			2,984			—
Commercial Real Estate Banking (e)	537			547			538			547			568			(2	)	(5	)	2,169			2,249			(4	)
Other (e)	52			18			25			24			38			189		37		119			118			1
Total Commercial Banking net revenue (b)	$	2,228		$	2,207		$	2,211		$	2,338		$	2,306		1		(3	)	$	8,984		$	9,059		(1	)

FINANCIAL RATIOS
ROE	16		%	16		%	17		%	19		%	20		%					17		%	20		%
Overhead ratio	40			40			39			37			37							39			37


(a)	Effective in the first quarter of 2019, includes revenue from investment banking products, commercial card transactions and asset management fees. The prior period amounts have been revised to conform with the current period presentation.

(b)

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 $152 million, $114 million, $100 million, $94 million and $128 million for the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively and $460 million and $444 million for the full year 2019 and 2018, respectively


(c)	Includes CB’s share of revenue from investment banking products sold to CB clients through the CIB.


(d)	Refer to page 60 of the Firm’s 2018 Form 10-K for discussion of revenue sharing.


(e)	Effective in the first quarter of 2019, client segment data includes Commercial Real Estate Banking which comprises the former Commercial Term Lending and Real Estate Banking client segments, and Community Development Banking (previously part of Other). The prior period amounts have been revised to conform with the current period presentation.

Page 18



JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)	QUARTERLY TRENDS																			FULL YEAR
																4Q19 Change										2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		2019			2018			2018
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	220,514		$	222,483		$	220,712		$	216,111		$	220,229		(1	)%	—	%	$	220,514		$	220,229		—	%
Loans:
Loans retained	207,287			209,448			208,323			204,927			204,219			(1	)	2		207,287			204,219			2
Loans held-for-sale and loans at fair value	1,009			3,187			1,284			410			1,978			(68	)	(49	)	1,009			1,978			(49	)
Total loans	$	208,296		$	212,635		$	209,607		$	205,337		$	206,197		(2	)	1		$	208,296		$	206,197		1
Core loans	208,181			212,514			209,475			205,199			206,039			(2	)	1		208,181			206,039			1
Equity	22,000			22,000			22,000			22,000			20,000			—		10		22,000			20,000			10

Period-end loans by client segment
Middle Market Banking	$	54,188		$	54,298		$	56,346		$	56,846		$	56,656		—		(4	)	$	54,188		$	56,656		(4	)
Corporate Client Banking	51,165			55,976			51,500			46,897			48,343			(9	)	6		51,165			48,343			6
Commercial Real Estate Banking (a)	101,951			101,326			100,751			100,622			100,088			1		2		101,951			100,088			2
Other (a)	992			1,035			1,010			972			1,110			(4	)	(11	)	992			1,110			(11	)
Total Commercial Banking loans	$	208,296		$	212,635		$	209,607		$	205,337		$	206,197		(2	)	1		$	208,296		$	206,197		1

SELECTED BALANCE SHEET DATA (average)
Total assets	$	219,891		$	218,620		$	218,760		$	218,297		$	218,227		1		1		$	218,896		$	218,259		—
Loans:
Loans retained	208,776			207,286			206,771			204,462			205,113			1		2		206,837			204,243			1
Loans held-for-sale and loans at fair value	1,036			963			701			1,634			1,610			8		(36	)	1,082			1,258			(14	)
Total loans	$	209,812		$	208,249		$	207,472		$	206,096		$	206,723		1		1		$	207,919		$	205,501		1
Core loans	209,694			208,125			207,336			205,949			206,561			1		2		207,787			205,320			1
Client deposits and other third-party liabilities	182,546			172,714			168,247			167,260			169,174			6		8		172,734			170,901			1
Equity	22,000			22,000			22,000			22,000			20,000			—		10		22,000			20,000			10

Average loans by client segment
Middle Market Banking	$	54,114		$	54,806		$	57,155		$	56,723		$	57,004		(1	)	(5	)	$	55,690		$	57,092		(2	)
Corporate Client Banking	53,187			51,389			48,656			48,141			48,167			3		10		50,360			47,780			5
Commercial Real Estate Banking (a)	101,542			101,044			100,671			100,264			100,320			—		1		100,884			99,243			2
Other (a)	969			1,010			990			968			1,232			(4	)	(21	)	985			1,386			(29	)
Total Commercial Banking loans	$	209,812		$	208,249		$	207,472		$	206,096		$	206,723		1		1		$	207,919		$	205,501		1

Headcount	11,629			11,501			11,248			11,033			11,042			1		5		11,629			11,042			5

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	89		$	45		$	15		$	11		$	37		98		141		$	160		$	53		202
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (b)	498			659			614			544			511			(24	)	(3	)	498			511			(3	)
Nonaccrual loans held-for-sale and loans
at fair value	—			—			—			—			—			—		—		—			—			—
Total nonaccrual loans	498			659			614			544			511			(24	)	(3	)	498			511			(3	)

Assets acquired in loan satisfactions	25			19			20			—			2			32		NM		25			2			NM
Total nonperforming assets	523			678			634			544			513			(23	)	2		523			513			2
Allowance for credit losses:
Allowance for loan losses	2,780			2,759			2,756			2,766			2,682			1		4		2,780			2,682			4
Allowance for lending-related commitments	293			293			274			250			254			—		15		293			254			15
Total allowance for credit losses	3,073			3,052			3,030			3,016			2,936			1		5		3,073			2,936			5

Net charge-off/(recovery) rate (c)	0.17		%	0.09		%	0.03		%	0.02		%	0.07		%					0.08		%	0.03		%
Allowance for loan losses to period-end loans retained	1.34			1.32			1.32			1.35			1.31							1.34			1.31
Allowance for loan losses to nonaccrual loans retained (b)	558			419			449			508			525							558			525
Nonaccrual loans to period-end total loans	0.24			0.31			0.29			0.26			0.25							0.24			0.25


(a)	Effective in the first quarter of 2019, client segment data includes Commercial Real Estate Banking which comprises the former Commercial Term Lending and Real Estate Banking client segments, and Community Development Banking (previously part of Other). The prior period amounts have been revised to conform with the current period presentation.


(b)	Allowance for loan losses of $114 million, $119 million, $125 million, $132 million and $92 million was held against nonaccrual loans retained at December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively.


(c)	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																				FULL YEAR
																	4Q19 Change										2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18				3Q19		4Q18		2019			2018			2018
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	2,654		$	2,574		$	2,568		$	2,416		$	2,548			3	%	4	%	$	10,212		$	10,171		—	%
All other income	173			139			115			177			(6		)		24		NM		604			368			64
Noninterest revenue	2,827			2,713			2,683			2,593			2,542				4		11		10,816			10,539			3
Net interest income	873			855			876			896			897				2		(3	)	3,500			3,537			(1	)
TOTAL NET REVENUE	3,700			3,568			3,559			3,489			3,439				4		8		14,316			14,076			2

Provision for credit losses	13			44			2			2			13				(70	)	—		61			53			15

NONINTEREST EXPENSE
Compensation expense	1,446			1,391			1,406			1,462			1,383				4		5		5,705			5,495			4
Noncompensation expense	1,204			1,231			1,190			1,185			1,238				(2	)	(3	)	4,810			4,858			(1	)
TOTAL NONINTEREST EXPENSE	2,650			2,622			2,596			2,647			2,621				1		1		10,515			10,353			2

Income before income tax expense	1,037			902			961			840			805				15		29		3,740			3,670			2
Income tax expense	252			234			242			179			201				8		25		907			817			11
NET INCOME	$	785		$	668		$	719		$	661		$	604			18		30		$	2,833		$	2,853		(1	)

REVENUE BY LINE OF BUSINESS
Asset Management	$	1,892		$	1,816		$	1,785		$	1,761		$	1,723			4		10		$	7,254		$	7,163		1
Wealth Management	1,808			1,752			1,774			1,728			1,716				3		5		7,062			6,913			2
TOTAL NET REVENUE	$	3,700		$	3,568		$	3,559		$	3,489		$	3,439			4		8		$	14,316		$	14,076		2

FINANCIAL RATIOS
ROE	29		%	24		%	27		%	25		%	26			%					26		%	31		%
Overhead ratio	72			73			73			76			76								73			74
Pretax margin ratio:
Asset Management	30			25			25			23			25								26			26
Wealth Management	26			25			29			25			22								26			26
Asset & Wealth Management	28			25			27			24			23								26			26

Headcount	24,191			24,228			23,683			24,347			23,920				—		1		24,191			23,920			1

Number of Wealth Management client advisors	2,890			2,872			2,735			2,877			2,865				1		1		2,890			2,865			1

Page 20



JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)

	QUARTERLY TRENDS																				FULL YEAR
																	4Q19 Change										2019 Change
	4Q19			3Q19			2Q19				1Q19			4Q18			3Q19		4Q18		2019			2018			2018
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	182,004		$	174,226		$	172,149			$	165,865		$	170,024		4	%	7	%	$	182,004		$	170,024		7	%
Loans	160,535			153,245			149,877				143,750			147,632			5		9		160,535			147,632			9
Core loans	160,535			153,245			149,877				143,750			147,632			5		9		160,535			147,632			9
Deposits	147,804			138,439			136,225				143,348			138,546			7		7		147,804			138,546			7
Equity	10,500			10,500			10,500				10,500			9,000			—		17		10,500			9,000			17

SELECTED BALANCE SHEET DATA (average)
Total assets	$	176,925		$	171,121		$	167,544			$	167,358		$	166,353		3		6		$	170,764		$	160,269		7
Loans	156,106			150,486			146,494				145,406			144,434			4		8		149,655			138,622			8
Core loans	156,106			150,486			146,494				145,406			144,434			4		8		149,655			138,622			8
Deposits	143,059			138,822			140,317				138,235			132,486			3		8		140,118			137,272			2
Equity	10,500			10,500			10,500				10,500			9,000			—		17		10,500			9,000			17

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	4			$	26		$	(3	)		$	4		$	3		(85	)	33		$	31		$	10		210
Nonaccrual loans	116			176			127				285			263			(34	)	(56	)	116			263			(56	)
Allowance for credit losses:
Allowance for loan losses	354			350			331				325			326			1		9		354			326			9
Allowance for lending-related commitments	19			16			17				18			16			19		19		19			16			19
Total allowance for credit losses	373			366			348				343			342			2		9		373			342			9
Net charge-off/(recovery) rate	0.01		%	0.07		%	(0.01		)	%	0.01		%	0.01		%					0.02		%	0.01		%
Allowance for loan losses to period-end loans	0.22			0.23			0.22				0.23			0.22							0.22			0.22
Allowance for loan losses to nonaccrual loans	305			199			261				114			124							305			124
Nonaccrual loans to period-end loans	0.07			0.11			0.08				0.20			0.18							0.07			0.18

Page 21



JPMORGAN CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)


																Dec 31, 2019
																Change				FULL YEAR
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,		Dec 31,								2019 Change
CLIENT ASSETS	2019			2019			2019			2019			2018			2019		2018		2019			2018			2018
Assets by asset class
Liquidity	$	542		$	505		$	481		$	476		$	480		7	%	13	%	$	542		$	480		13	%
Fixed income	602			590			543			495			464			2		30		602			464			30
Equity	474			437			441			427			384			8		23		474			384			23
Multi-asset and alternatives	746			714			713			698			659			4		13		746			659			13
TOTAL ASSETS UNDER MANAGEMENT	2,364			2,246			2,178			2,096			1,987			5		19		2,364			1,987			19
Custody/brokerage/administration/deposits	862			815			820			801			746			6		16		862			746			16
TOTAL CLIENT ASSETS	$	3,226		$	3,061		$	2,998		$	2,897		$	2,733		5		18		$	3,226		$	2,733		18

Memo:
Alternatives client assets (a)	$	185		$	183		$	177		$	172		$	171		1		8		$	185		$	171		8

Assets by client segment
Private Banking	$	672		$	636		$	617		$	597		$	552		6		22		$	672		$	552		22
Institutional	1,074			1,029			991			943			926			4		16		1,074			926			16
Retail	618			581			570			556			509			6		21		618			509			21
TOTAL ASSETS UNDER MANAGEMENT	$	2,364		$	2,246		$	2,178		$	2,096		$	1,987		5		19		$	2,364		$	1,987		19

Private Banking	$	1,504		$	1,424		$	1,410		$	1,371		$	1,274		6		18		$	1,504		$	1,274		18
Institutional	1,099			1,051			1,013			965			946			5		16		1,099			946			16
Retail	623			586			575			561			513			6		21		623			513			21
TOTAL CLIENT ASSETS	$	3,226		$	3,061		$	2,998		$	2,897		$	2,733		5		18		$	3,226		$	2,733		18

Assets under management rollforward
Beginning balance	$	2,246		$	2,178		$	2,096		$	1,987		$	2,077						$	1,987		$	2,034
Net asset flows:
Liquidity	37			24			4			(5		)	21							60			31
Fixed income	9			41			37			19			8							106			(1		)
Equity	(1		)	(2		)	(1		)	(6		)	(6		)					(10		)	2
Multi-asset and alternatives	6			1			—			(3		)	(5		)					4			24
Market/performance/other impacts	67			4			42			104			(108		)					217			(103		)
Ending balance	$	2,364		$	2,246		$	2,178		$	2,096		$	1,987						$	2,364		$	1,987

Client assets rollforward
Beginning balance	$	3,061		$	2,998		$	2,897		$	2,733		$	2,867						$	2,733		$	2,789
Net asset flows	58			59			52			9			30							178			88
Market/performance/other impacts	107			4			49			155			(164		)					315			(144		)
Ending balance	$	3,226		$	3,061		$	2,998		$	2,897		$	2,733						$	3,226		$	2,733


(a)	Represents assets under management, as well as client balances in brokerage accounts.

Page 22



JPMORGAN CHASE & CO.
CORPORATE
FINANCIAL HIGHLIGHTS
(in millions, except headcount data)

	QUARTERLY TRENDS																				FULL YEAR
																	4Q19 Change											2019 Change
	4Q19			3Q19			2Q19				1Q19			4Q18			3Q19		4Q18		2019				2018			2018
INCOME STATEMENT
REVENUE
Principal transactions	$	(234	)	$	10		$	(175	)		$	(62	)	$	(204	)	NM		(15	)%	$	(461	)		$	(426	)	(8	)%
Investment securities gains/(losses)	123			78			44				13			(24		)	58		NM		258				(395		)	NM
All other income	(6		)	32			6				57			185			NM		NM		89				558			(84	)
Noninterest revenue	(117		)	120			(125		)		8			(43		)	NM		(172	)	(114		)		(263		)	57
Net interest income (a)	(111		)	572			447				417			170			NM		NM		1,325				135			NM
TOTAL NET REVENUE (b)	(228		)	692			322				425			127			NM		NM		1,211				(128		)	NM

Provision for credit losses	(1		)	—			(2		)		2			(1		)	NM		—		(1		)		(4		)	75

NONINTEREST EXPENSE (c)	343			281			232				211			508			22		(32	)	1,067				902			18
Income/(loss) before income tax expense/(benefit)	(570		)	411			92				212			(380		)	NM		(50	)	145				(1,026		)	NM
Income tax expense/(benefit)	(209		)	18			(736		)	(e)	(39		)	197			NM		NM		(966		)	(e)	215			NM
NET INCOME/(LOSS)	$	(361	)	$	393		$	828			$	251		$	(577	)	NM		37		$	1,111			$	(1,241	)	NM

MEMO:
TOTAL NET REVENUE
Treasury and Chief Investment Office (“CIO”) (a)	102			801			618				511			275			(87	)	(63	)	2,032				510			298
Other Corporate	(330		)	(109		)	(296		)		(86		)	(148		)	(203	)	(123	)	(821		)		(638		)	(29	)
TOTAL NET REVENUE	$	(228	)	$	692		$	322			$	425		$	127		NM		NM		$	1,211			$	(128	)	NM

NET INCOME/(LOSS)
Treasury and CIO	22			576			462				334			175			(96	)	(87	)	1,394				(69		)	NM
Other Corporate	(383		)	(183		)	366				(83		)	(752		)	(109	)	49		(283		)		(1,172		)	76
TOTAL NET INCOME/(LOSS)	$	(361	)	$	393		$	828			$	251		$	(577	)	NM		37		$	1,111			$	(1,241	)	NM

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	837,618		$	812,333		$	821,330			$	796,615		$	771,787		3		9		$	837,618			$	771,787		9
Loans	1,649			1,705			1,695				1,885			1,597			(3	)	3		1,649				1,597			3
Core loans (d)	1,649			1,706			1,695				1,885			1,597			(3	)	3		1,649				1,597			3

Headcount	38,033			38,155			37,361				37,502			37,145			—		2		38,033				37,145			2

SUPPLEMENTAL INFORMATION
TREASURY and CIO
Investment securities gains/(losses)	$	123		$	78		$	44			$	13		$	(24	)	58	%	NM		$	258			$	(395	)	NM
Available-for-sale (“AFS”) investment securities (average)	350,100			305,894			248,612				226,605			211,997			14		65		283,205				203,449			39
Held-to-maturity (“HTM”) investment securities (average)	42,125			35,494			30,929				31,082			31,466			19		34		34,939				31,747			10
Investment securities portfolio (average)	$	392,225		$	341,388		$	279,541			$	257,687		$	243,463		15		61		$	318,144			$	235,196		35
AFS investment securities (period-end)	348,876			351,599			274,533				234,832			228,681			(1	)	53		348,876				228,681			53
HTM investment securities (period-end)	47,540			40,830			30,907				30,849			31,434			16		51		47,540				31,434			51
Investment securities portfolio (period-end)	$	396,416		$	392,429		$	305,440			$	265,681		$	260,115		1		52		$	396,416			$	260,115		52


(a)	Net interest income in the third quarter of 2019 included income related to the unwind of the internal funding provided by Treasury and CIO to CCB upon the sale of certain mortgage loans. Refer to footnote (a) in CCB on page 11 for further information.


(b)	Included tax-equivalent adjustments, driven by tax-exempt income from municipal bonds, of $73 million, $74 million, $81 million, $86 million and $95 million for the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, respectively, and $314 million and $382 million for the full year 2019 and 2018, respectively.


(c)	Included legal expense/(benefit) of $(25) million, $(32) million, $(67) million, $(90) million and $(16) million for the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively, and $(214) million and $(241) million for the full year 2019 and 2018, respectively.


(d)	Average core loans were $1.6 billion, $1.7 billion, $1.7 billion, $1.6 billion and $1.6 billion for the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively, and $1.7 billion and $1.7 billion for the full year 2019 and 2018, respectively.


(e)	The three months ended June 30, 2019 and the full year 2019 included income tax benefits of $742 million and $1.1 billion, respectively, due to the resolution of certain tax audits.

Page 23



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
											Dec 31, 2019
											Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Dec 31,
	2019		2019		2019		2019		2018		2019		2018
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained, excluding PCI loans	$	311,675	$	310,519	$	329,450	$	336,508	$	349,603	—	%	(11	)%
Loans - PCI	20,363		21,290		22,242		23,207		24,034		(4	)	(15	)
Total loans retained	332,038		331,809		351,692		359,715		373,637		—		(11	)
Loans held-for-sale	3,002		4,821		1,030		4,199		95		(38	)	NM
Total consumer, excluding credit card loans	335,040		336,630		352,722		363,914		373,732		—		(10	)

Credit card loans
Loans retained	168,924		159,571		157,568		150,515		156,616		6		8
Loans held-for-sale	—		—		8		12		16		—		NM
Total credit card loans	168,924		159,571		157,576		150,527		156,632		6		8
Total consumer loans	503,964		496,201		510,298		514,441		530,364		2		(5	)

Wholesale loans (b)
Loans retained	444,639		437,507		438,468		433,611		439,162		2		1
Loans held-for-sale and loans at fair value	11,166		11,510		8,123		8,193		15,028		(3	)	(26	)
Total wholesale loans	455,805		449,017		446,591		441,804		454,190		2		—

Total loans	959,769		945,218		956,889		956,245		984,554		2		(3	)
Derivative receivables	49,766		55,577		52,878		50,333		54,213		(10	)	(8	)
Receivables from customers and other (c)	33,706		32,236		27,414		20,952		30,217		5		12
Total credit-related assets	1,043,241		1,033,031		1,037,181		1,027,530		1,068,984		1		(2	)

Lending-related commitments
Consumer, excluding credit card	51,412		53,591		51,491		48,922		46,066		(4	)	12
Credit card	650,720		645,880		633,970		626,922		605,379		1		7
Wholesale	408,298		395,619		394,301		384,957		387,813		3		5
Total lending-related commitments	1,110,430		1,095,090		1,079,762		1,060,801		1,039,258		1		7

Total credit exposure	$	2,153,671	$	2,128,121	$	2,116,943	$	2,088,331	$	2,108,242	1		2

Memo: Total by category
Consumer exposure (d)	$	1,206,096	$	1,195,690	$	1,195,780	$	1,190,305	$	1,181,963	1		2
Wholesale exposures (e)	947,575		932,431		921,163		898,026		926,279		2		2
Total credit exposure	$	2,153,671	$	2,128,121	$	2,116,943	$	2,088,331	$	2,108,242	1		2

Note: The Firm provides several non-GAAP financial measures which exclude the impact of PCI loans. Refer to page 28 for further discussion of these measures.


(a)	Includes loans reported in CCB, scored prime mortgage and scored home equity loans reported in AWM, and scored prime mortgage loans reported in Corporate.


(b)	Includes loans reported in CIB, CB and AWM business segments and Corporate. Excludes all exposure managed by CCB, scored prime mortgage and scored home equity loans held in AWM and scored prime mortgage loans held in Corporate.


(c)	Primarily represents prime brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable on the Consolidated balance sheets.


(d)	Represents total consumer loans, lending-related commitments, and receivables from customers and other.


(e)	Represents total wholesale loans, lending-related commitments, derivative receivables, and receivables from customers and other.

Page 24



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)

																Dec 31, 2019
																Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,		Dec 31,
	2019			2019			2019			2019			2018			2019		2018
NONPERFORMING ASSETS (a)
Consumer nonaccrual loans (b)(c)	$	3,142		$	3,219		$	3,262		$	3,389		$	3,461		(2	)%	(9	)%

Wholesale nonaccrual loans
Loans retained	843			1,470			1,238			1,570			1,150			(43	)	(27	)
Loans held-for-sale and loans at fair value	95			262			370			313			220			(64	)	(57	)
Total wholesale nonaccrual loans	938			1,732			1,608			1,883			1,370			(46	)	(32	)

Total nonaccrual loans	4,080			4,951			4,870			5,272			4,831			(18	)	(16	)

Derivative receivables	30			26			39			44			60			15		(50	)
Assets acquired in loan satisfactions	387			366			351			300			299			6		29
Total nonperforming assets	4,497			5,343			5,260			5,616			5,190			(16	)	(13	)
Wholesale lending-related commitments (d)	543			446			465			455			469			22		16
Total nonperforming exposure	$	5,040		$	5,789		$	5,725		$	6,071		$	5,659		(13	)	(11	)

NONACCRUAL LOAN-RELATED RATIOS
Total nonaccrual loans to total loans	0.43		%	0.52		%	0.51		%	0.55		%	0.49		%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans	0.94			0.96			0.92			0.93			0.93
Total wholesale nonaccrual loans to total
wholesale loans	0.21			0.39			0.36			0.43			0.30

(a)

At December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $961 million, $1.6 billion, $1.8 billion, $2.2 billion and $2.6 billion, respectively, that are 90 or more days past due; and (2) real estate owned (“REO”) insured by U.S. government agencies of $41 million, $50 million, $56 million, $69 million and $75 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”). Refer to Note 12 of the Firm’s 2018 Form 10-K for additional information on the Firm’s credit card nonaccrual and charge-off policies.


(b)	Included nonaccrual loans held-for-sale of $2 million, $2 million and $31 million, respectively, at December 31, 2019, September 30, 2019, and June 30, 2019, respectively. There were no nonaccrual loans held-for-sale in all other periods presented.


(c)	Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.


(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																			FULL YEAR
																4Q19 Change										2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		2019			2018			2018
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	13,235		$	13,166		$	13,533		$	13,445		$	13,128		1	%	1	%	$	13,445		$	13,604		(1	)%
Net charge-offs:
Gross charge-offs	1,788			1,676			1,704			1,642			1,532			7		17		6,810			6,349			7
Gross recoveries	(294		)	(305		)	(301		)	(281		)	(296		)	4		1		(1,181		)	(1,493		)	21
Net charge-offs	1,494			1,371			1,403			1,361			1,236			9		21		5,629			4,856			16
Write-offs of PCI loans (a)	19			43			39			50			36			(56	)	(47	)	151			187			(19	)
Provision for loan losses	1,401			1,479			1,077			1,492			1,591			(5	)	(12	)	5,449			4,885			12
Other	—			4			(2		)	7			(2		)	NM		NM		9			(1		)	NM
Ending balance	$	13,123		$	13,235		$	13,166		$	13,533		$	13,445		(1	)	(2	)	$	13,123		$	13,445		(2	)

ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	1,165		$	1,129		$	1,058		$	1,055		$	1,097		3		6		$	1,055		$	1,068		(1	)
Provision for lending-related commitments	26			35			72			3			(43		)	(26	)	NM		136			(14		)	NM
Other	—			1			(1		)	—			1			NM		NM		—			1			NM
Ending balance	$	1,191		$	1,165		$	1,129		$	1,058		$	1,055		2		13		$	1,191		$	1,055		13

Total allowance for credit losses	$	14,314		$	14,400		$	14,295		$	14,591		$	14,500		(1	)	(1	)	$	14,314		$	14,500		(1	)

NET CHARGE-OFF/(RECOVERY) RATES (b)
Consumer retained, excluding credit card loans	0.16		%	0.10		%	0.09		%	0.13		%	0.09		%					0.12		%	0.05		%
Credit card retained loans	3.01			2.95			3.24			3.23			2.93							3.10			3.10
Total consumer retained loans	1.09			1.00			1.04			1.02			0.91							1.04			0.90
Wholesale retained loans	0.12			0.10			0.08			0.04			0.03							0.08			0.04
Total retained loans	0.63			0.58			0.60			0.58			0.52							0.60			0.52
Consumer retained loans, excluding credit card and
PCI loans	0.17			0.11			0.09			0.13			0.10							0.13			0.05
Consumer retained loans, excluding PCI loans	1.14			1.05			1.09			1.07			0.95							1.09			0.95
Total retained, excluding PCI loans	0.65			0.60			0.61			0.59			0.53							0.61			0.53

Memo: Average retained loans
Consumer retained, excluding credit card loans	$	331,501		$	340,583		$	356,568		$	370,777		$	374,686		(3	)	(12	)	$	349,724		$	374,395		(7	)
Credit card retained loans	162,112			158,166			153,736			151,120			150,574			2		8		156,319			145,606			7
Total average retained consumer loans	493,613			498,749			510,304			521,897			525,260			(1	)	(6	)	506,043			520,001			(3	)
Wholesale retained loans	440,159			433,744			434,905			434,660			426,594			1		3		435,876			416,828			5
Total average retained loans	$	933,772		$	932,493		$	945,209		$	956,557		$	951,854		—		(2	)	$	941,919		$	936,829		1

Consumer retained, excluding credit card and
PCI loans	$	310,683		$	318,843		$	333,854		$	347,145		$	350,053		(3	)	(11	)	$	327,507		$	346,955		(6	)
Consumer retained, excluding PCI loans	472,795			477,009			487,590			498,265			500,627			(1	)	(6	)	483,826			492,561			(2	)
Total retained, excluding PCI loans	912,954			910,753			922,495			932,925			927,218			—		(2	)	919,702			909,386			1


(a)	Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan is recognized when the underlying loan is removed from a pool.


(b)	The net charge-off rates exclude the write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans.

Page 26



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)

																Dec 31, 2019
																Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,		Dec 31,
	2019			2019			2019			2019			2018			2019		2018
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)	$	136		$	145		$	145		$	151		$	196		(6	)%	(31	)%
Formula-based	2,076			2,066			2,215			2,208			2,162			—		(4	)
PCI	987			1,256			1,299			1,738			1,788			(21	)	(45	)
Total consumer, excluding credit card	3,199			3,467			3,659			4,097			4,146			(8	)	(23	)
Credit card
Asset-specific (b)	477			488			472			461			440			(2	)	8
Formula-based	5,206			5,095			4,911			4,722			4,744			2		10
Total credit card	5,683			5,583			5,383			5,183			5,184			2		10
Total consumer	8,882			9,050			9,042			9,280			9,330			(2	)	(5	)
Wholesale
Asset-specific (a)	234			342			288			417			297			(32	)	(21	)
Formula-based	4,007			3,843			3,836			3,836			3,818			4		5
Total wholesale	4,241			4,185			4,124			4,253			4,115			1		3
Total allowance for loan losses	13,123			13,235			13,166			13,533			13,445			(1	)	(2	)
Allowance for lending-related commitments	1,191			1,165			1,129			1,058			1,055			2		13
Total allowance for credit losses	$	14,314		$	14,400		$	14,295		$	14,591		$	14,500		(1	)	(1	)

CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	0.96		%	1.04		%	1.04		%	1.14		%	1.11		%
Credit card allowance to total credit card retained loans	3.36			3.50			3.42			3.44			3.31
Wholesale allowance to total wholesale retained loans	0.95			0.96			0.94			0.98			0.94
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (c)	1.02			1.02			1.02			1.06			1.01
Total allowance to total retained loans	1.39			1.42			1.39			1.43			1.39
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	102			108			113			121			120
Total allowance, excluding credit card allowance, to retained
nonaccrual loans, excluding credit card nonaccrual loans (d)	187			163			174			168			179
Wholesale allowance to wholesale retained nonaccrual loans	503			285			333			271			358
Total allowance to total retained nonaccrual loans	329			282			295			273			292

CREDIT RATIOS, excluding PCI loans
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	0.71			0.71			0.72			0.70			0.67
Total allowance to total retained loans	1.31			1.32			1.28			1.28			1.23
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	70			69			73			70			68
Allowance, excluding credit card allowance, to retained non-
accrual loans, excluding credit card nonaccrual loans (d)	162			136			145			133			140
Total allowance to total retained nonaccrual loans	305			256			266			238			253


(a)	Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a troubled debt restructuring (“TDR”).


(b)	The asset-specific credit card allowance for loan losses relates to loans that have been modified in a TDR; the Firm calculates such allowance based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.


(c)	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.


(d)	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 AND KEY PERFORMANCE 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 a 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.

(b)

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.

(c)

The ratios of the allowance for loan losses to period-end loans retained, the allowance for loan losses to nonaccrual loans retained, and nonaccrual loans to total period-end loans excluding credit card and PCI loans, exclude the following: loans accounted for at fair value and loans held-for-sale; PCI loans; and the allowance for loan losses related to PCI loans. Additionally, net charge-offs and net charge-off rates exclude the impact of PCI loans. 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.

(d)In addition to reviewing net interest income and the net interest yield on a managed basis, management also reviews these metrics excluding CIB’s Markets businesses to assess the performance of the Firm’s lending, investing (including asset-liability management) and deposit-raising activities. The resulting metrics are referred to as non-markets related net interest income and net yield. CIB’s Markets businesses are Fixed Income Markets and Equity Markets. Management believes that disclosure of non-markets related net interest income and net yield provide investors and analysts with other measures by which to analyze the non-markets-related business trends of the Firm and provides a comparable measure to other financial institutions that are primarily focused on lending, investing and deposit-raising activities.



	QUARTERLY TRENDS																			FULL YEAR
																4Q19 Change										2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		2019			2018			2018

Net interest income – reported	$	14,166		$	14,228		$	14,398		$	14,453		$	14,354		—	%	(1	)%	57,245			$	55,059		4	%
Fully taxable-equivalent adjustments	123			127			138			143			155			(3	)%	(21	)	531			628			(15	)
Net interest income - managed (a)	$	14,289		$	14,355		$	14,536		$	14,596		$	14,509		—		(2	)	$	57,776		$	55,687		4
Less: CIB Markets net interest income	1,149			723			624			624			599			59		92		3,120			3,087			1
Net interest income excluding CIB Markets (a)	$	13,140		$	13,632		$	13,912		$	13,972		$	13,910		(4	)	(6	)	$	54,656		$	52,600		4

Average interest-earning assets (b)	$	2,377,741		$	2,365,154		$	2,339,094		$	2,298,894		$	2,254,449		1		5		$	2,345,491		2,212,908			6
Less: Average CIB Markets interest-earning assets (b)	676,763			690,593			673,480			649,180			605,730			(2	)	12		672,629			$	593,355		13
Average interest-earning assets excluding CIB Markets	$	1,700,978		$	1,674,561		$	1,665,614		$	1,649,714		$	1,648,719		2		3		$	1,672,862		$	1,619,553		3

Net interest yield on average interest-earning assets - managed (b)	2.38		%	2.41		%	2.49		%	2.57		%	2.55		%					2.46		%	2.52		%
Net interest yield on average CIB Markets interest-earning assets (b)	0.67		%	0.42		%	0.37		%	0.39		%	0.39		%					0.46		%	0.52		%
Net interest yield on average interest-earning assets excluding CIB Markets	3.06		%	3.23		%	3.35		%	3.43		%	3.35		%					3.27		%	3.25		%

(a) Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.

(b) In the second quarter of 2019, the Firm reclassified balances related to certain instruments from interest-earning to noninterest-earning assets, as the associated returns are recorded in principal transactions revenue and not in net interest income. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.

Key Performance Measures


(a)	Core loans represent loans considered central to the Firm’s ongoing businesses; core loans exclude loans classified as trading assets, runoff portfolios, discontinued portfolios and portfolios the Firm has an intent to exit.

Page 28